What is e-commerce?
E-commerce or electronic commerce is the business through electronic media which is method of buying and selling products and services electrically. The process in e-commerce include enabling a customer to access product, select items to purchase (buy) security. It does not include commercial transactions.
In other words e-commerce is one of the most important aspect of internet which allow peoples to exchange goods and services immediately. At only time we can go online and buy almost everything we want.
History of e-commerce:-
- By definition e-commerce and electronic business is the buying and selling of the goods and services via internet. Now a days, the thought of living without e-commerce seem complicated and an inconvenience to many. It wasn’t until only a few decade age that the idea of e-commerce had even appeared.
- The history of e-commerce started 40 years ago. And to this day continue to grow with new technologies innovations and thousands of business entering the online market each year.
- In 1970s, Electronic data interchanges and tele-shopping gave the way for the modern day commerce.
- The history of e-commerce is closely related with history of internet.
- In 1991 online shopping only became possible when internet was opened to the public.
- Amazon.com was one of the first e-commerce sites in the USA to start selling product online and thousands of business have followed once.
Advantages of e-commerce:-
- Global Reach: If you have a physical store you are limited by geographical areas those can services with an e-commerce, you can extend your business to global.
- Labor cost: Many costumers are turning to e-commerce for their needs due to lower price for many everyday items. E-commerce reduces the cost of investment also for merchant because there is no need of physical store and does very transactions virtually.
- Provide comparison shopping: There are several online service that allows customer to browse multiple e-commerce merchant and find best product and price.
- Quick easy and convenient: E-commerce has enabled the customer to complete the transaction from home. It takes only few minutes or hours including physical getting to the store.
- 24*7 availability: It provides 24 hours in a day & 7 days in a week service to customer.
Disadvantage of e-Commerce:
- e-commerce delays goods: e-commerce website delivery takes a lot longer to get the goods in our hands. For example: If we want to buy a pen because we need to write something right now. We cannot buy it off an e-commerce website.
- Anyone can setup e-commerce website: We live in a era where we can easily setup an e-commerce store within a minute and if anybody is setting up a store show how do we know that the store we are purchasing from is genuine.
- Security: While making online purchase, we have to provide at least our credit card information and mailing address. It could lead to credit card fraud or identity thief.
- Break down of human interaction: e-commerce separates human from knowing and purchasing goods physically. There cannot be human interaction so that the customer might not know the quality of goods.
- Lack of reliability: Sometimes we may not reach the e-commerce website that we want to purchase from. It may not be reliable for all and every where.
Application of e-commerce:-
- Online marketing and purchasing
- Retail and wholesale
- Online auction
- online publishing
- online booking (Ticket, seat, etc)
Types of e-commerce:-
- Business to Business (B2B)
- Business to consumer (B2C)
- Consumer to Consumer (C2C)
- Consumer to business (C2B)
- Government to Government (G2G)
- Government to consumer (G2C)
- Personal to personal (P2P)
What is e-business?
It refers to the digital enabling of transactions and processes within a firm, involving information system under the control of the firm. Electronic business is the administration of conducting business via the internet. This includes the buying and selling of goods and services along with providing technical or consumer support through the internet. In e-business transaction are done between businesses not commercial transactions. E-business is a wider range of business & includes aspects such as supply chain management (SCM), electronic order processing and customer relationship management (CRM) to help the company to operate more efficiently and effectively. e-business uses the Internet, Intranet & extra-net network technologies to communicate with other business.
It is the application of Information and Communication Technology (ICT) in support of all the activities of business. E-business was established by IBM marketing and Internet team in 1996. e-business is not confined to buying and selling of only goods but it includes activities that also form part of business like providing services to the customer, communicating with employees, client or business partners. It is a super-set which means e-commerce is part of e-business.
Difference between Traditional commerce and e-commerce.
|i. Traditional commerce focus on the exchange of product and service through personal interaction.||i. E-commerce focus on the exchange of goods and services via the internet.|
|ii. Traditional Commerce is limited to several hours during the day.||ii. E-commerce can be accessed anytime 24/7.|
|iii. In traditional commerce customers interact with business face to face.||iii. In E-commerce customers use computing devices to access and interact with the business.|
|iv. It is geographically limited to business location.||iv. It has global business scope.|
|v. Delivery of goods is fast in Traditional commerce.||v. Delivery of goods is time consuming (not fast) in e-commerce.|
|vi. Physical inspection (touch) can be done before purchase.||vi. Physical inspection cannot be done before purchase.|
|vii. Business transaction is done manually.||vii. Business transaction is done automatic or in the system.|
|viii.There is no need of technical knowledge in traditional commerce.||viii. Skilled manpower is needed to operate the system.|