BY : Avnish Verma ( E - Commerce)
E – COMMERCE
E-commerce (electronic
commerce)
E-commerce
(electronic commerce) is the buying and selling of goods and services, or the
transmitting of funds or data, over an electronic network, primarily the
internet. These business transactions occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer or
consumer-to-business. The terms e-commerce and e-business are often used
interchangeably. The term e-tail is also sometimes used in reference to
the transactional
processes for online shopping.
History of
e-commerce
The beginnings of e-commerce can
be traced to the 1960s, when businesses started using Electronic
Data Interchange (EDI) to share business documents with other
companies. In 1979, the American National Standards Institute developed ASC X12
as a universal standard for businesses to share documents through electronic
networks.
Types of
e-commerce
Business-to-business (B2B) e-commerce
refers to the electronic exchange of products, services or information between
businesses rather than between businesses and consumers. Examples include
online directories and product and supply exchange websites that allow
businesses to search for products, services and information and to initiate
transactions through e-procurement interfaces.
In 2017, Forrester Research
predicted that the B2B e-commerce market will top $1.1 trillion in the U.S. by
2021, accounting for 13% of all B2B sales in the nation.
Business-to-consumer (B2C) is
the retail part of e-commerce on the internet. It is when businesses sell
products, services or information directly to consumers. The term was popular
during the dot-com
boom of the late 1990s, when online retailers and sellers of
goods were a novelty.
Today, there are innumerable
virtual stores and malls on the internet selling all types of consumer goods.
The most recognized example of these sites is Amazon, which dominates the B2C market.
Consumer-to-consumer (C2C) is
a type of e-commerce in which consumers trade products, services and
information with each other online. These transactions are generally conducted
through a third party that provides an online platform on which the
transactions are carried out.
Online auctions and classified
advertisements are two examples of C2C platforms, with eBay and Craigslist
being two of the most popular of these platforms. Because eBay is a business,
this form of e-commerce could also be called C2B2C --
consumer-to-business-to-consumer.
Consumer-to-business (C2B) is a type
of e-commerce in which consumers make their products and services available
online for companies to bid on and purchase. This is the opposite of the
traditional commerce model of B2C.
A popular example of a C2B
platform is a market that sells royalty-free photographs, images, media and
design elements, such as iStock. Another example would be a job board.
Business-to-administration
(B2A) refers to transactions conducted online between companies and
public administration or government bodies. Many branches of government are
dependent on e-services or products in one way or another, especially when it
comes to legal documents, registers, social security, fiscals and employment.
Businesses can supply these electronically. B2A services have grown
considerably in recent years as investments have been made in e-government
capabilities.
Consumer-to-administration (C2A) refers
to transactions conducted online between individual consumers and public
administration or government bodies. The government rarely buys products or
services from citizens, but individuals frequently use electronic means in the
following areas:
·
Education: disseminating information, distance learning/online
lectures, etc.
·
Social security: distributing information, making payments, etc.
·
Taxes: filing tax returns, making payments, etc.
·
Health: making appointments, providing information about
illnesses, making health services payments, etc.
Benefits of e-commerce
The
benefits of e-commerce include its around-the-clock availability, the speed of
access, the wide availability of goods and services for the consumer, easy
accessibility and international reach.
Availability. Aside from outages or scheduled
maintenance, e-commerce sites are available 24x7, allowing visitors to browse and shop at any time. Bricks and
mortar businesses tend to open for a fixed amount of hours and may even close
entirely on certain days.
Speed
of access. While
shoppers in a physical store can be slowed by crowds, e-commerce sites run
quickly, which is determined by compute and bandwidthconsiderations on both consumer device and e-commerce site.
Product pages and shopping cart pages load in a few seconds or less. An e-commerce
transaction can comprise a few clicks and take less than five minutes.
Wide
availability. Amazon’s
first slogan was “Earth’s Biggest Bookstore.” They could make this claim
because they were an e-commerce site and not a physical store that had to stock
each book on its shelves. E-commerce enables brands to make a wide array of
products available, which are then shipped from a warehouse after a purchase is
made.
Easy
accessibility. Customers
shopping a physical store may have a hard time determining which aisle a
particular product is in. In e-commerce, visitors can browse product category
pages and use the site search feature the find the product immediately.
International
reach. Bricks
and mortar businesses sell to customers who physically visit their stores. With
e-commerce, businesses can sell to any customer who can access the web.
E-commerce has the potential to extend a business’ customer base globally.
Lower
cost. Pure play e-commerce businesses avoid the cost associated with
physical stores, such as rent, inventory and cashiers, although they may incur
shipping and warehouse costs.
Personalization
and product recommendations. E-commerce sites can track visitors’ browse, search and purchase
history. They can leverage this data to present useful and personalized product
recommendation. Examples include the sections of Amazon product pages labeled
“Frequently bought together” and “Customers who viewed this item also viewed.”
Disadvantages of e-commerce
The
perceived downside of e-commerce include sometimes limited customer service, consumers not being able to see or touch a product
prior to purchase and the wait time for product shipping.
Limited
customer service. If a customer has a question or issue in a physical store, he or
she can see a clerk, cashier or store manager for help. In an e-commerce store,
customer service may be limited: the site may only provide support during
certain hours of the day, or a call to a customer service phone number may keep
the customer on hold.
Not
being able to touch or see. While images on a web page can provide a good sense about a
product, it’s different from experiencing it “directly,” such as playing music
on speakers, assessing the picture quality of a television or trying on a shirt
or dress. E-commerce can lead consumers to receive products that differ from
their expectations, which leads to returns. In some scenarios, the customer
bears the burden for the cost of shipping the returned item to the retailer.
Wait
time. If a
customer sees an item that he or she likes in a store, the customer pays for it
and then goes home with it. With e-commerce, there is a wait time for the
product to be shipped to the customer’s address. Although shipping windows are
decreasing as next day delivery is now quite common, it’s not instantaneous.
Security. Skilled hackers can create authentic-looking websites that claim to sell
well-known products. Instead, the site sends customers forfeit or imitation
versions of those products -- or, simply collects customers’ credit card
information. Bonafide e-commerce sites also carry risk, especially when
customers store their credit card information with the retailer to make future
purchases easier. If the retailer’s site is hacked, hackers may come into the
possession of customers’ credit card information.
E-commerce applications
E-commerce
is conducted using a variety of applications, such as email, online catalogs and shopping carts, EDI, the File Transfer Protocol, web services, and mobile devices.
This includes business-to-business activities and outreach, such as using email
for unsolicited ads, usually viewed as spam, to consumers and other business
prospects, as well as sending out e-newsletters to subscribers and SMS texts to mobile devices. More companies now try to entice
consumers directly online, using tools such as digital coupons, social media marketing and targeted advertisements.
Components
of an Ecommerce Business
1.
Suppliers and supply chain management
You
are or plan to be a retailer in an increasingly competitive market. It means a
lot to come up with a great idea, drive good traffic and convert it to sales
but you can’t do that without the right products, delivered at the right time,
with a price the market is willing to pay.
.2.
Client Relationship Management (CRM) – software and policies
Before
even considering selling – you need to think about how are you going to treat your customer
and keep him coming back. That’s where CRM comes in. While
the term is usually used to describe a type of software, it is actually the
term describing the whole policy on how are you going to handle interactions
between you and your customer.
3. Placement
Businees
most be highly visible and easy to access by all the users.
4. Payment Focus’
Payment
focus and payment processing system by
using different modes of payment.
5. Security
Business
transaction must be secure complete by various methods like authentication and
cryptography.
6. Fulfillment
Ensures
delivery of the product after purchase of the order has been generated and
payment has been paid.
E – Business :
E
– Business is the conducted automated business transaction using electronic
communicated network end to end
(internet private networking) . It includes not only E – Bcommerce But
other aspects like e-marketing, e-mailing, E-purchasing etc.
Difference between E-Business and E-Commerce
- Buying and Selling of goods and services
through the internet is known as e-commerce. Unlike e-business, which is
an electronic presence of business, by which all the business activities
are conducted through the internet.
- e-commerce is a major component of e-business.
- e-commerce includes transactions which are
related to money, but e-business includes monetary as well as allied
activities.
- e-commerce has an extroverted approach that
covers customers, suppliers, distributors, etc. On the other hand,
e-business has an ambivert approach that covers internal as well as
external processes.
- e-commerce requires a website that can
represent the business. Conversely, e-business requires a website,
Customer Relationship Management and Enterprise Resource Planning for
running the business over the internet.
- e-commerce uses the internet to connect with
the rest of the world. In contrast to e-business, the internet, intranet
and extranet are used for connecting with the parties.
Process of E-Business
1.
Production process
: Production
processes, which include procurement, ordering and replenishment of stocks;
processing of payments; electronic links with suppliers; and production control
processes, among others;
2.
Customer focused process
: Customer-focused
processes, which include promotional and marketing efforts, selling over the
Internet, processing of customers’ purchase orders and payments, and customer
support, among others; and
3.
Internal Management
: Internal
management processes, which include employee services, training, internal
information-sharing, video-conferencing, and recruiting. Electronic
applications enhance information flow between production and sales forces to
improve sales force productivity. Workgroup communications and electronic
publishing of internal business information are likewise made more efficient.
Application of E-Business
1.
E-trading
2.
E-Communication
3.
E-Procurement
4.
E-Delivery
Advantages of E-Business
Electronic data
interchange (EDI)
Electronic data interchange
is the concept of businesses electronically communicating information that was
traditionally communicated on paper, such as purchase orders and invoices.
Technical standards for EDI exist to facilitate parties transacting such
instruments without having to make special arrangements.
Features of
Online Business
Some
of the features of Online Business are as follows :
·
It is easy to set up
·
There are no geographical boundaries
·
Much cheaper than traditional business
·
There are flexible business hours
·
Online business receive subsidies from the
government
·
There are a few security and integrity issues
·
There is no personal touch
·
Buyer and seller don’t meet
·
There is a transaction risk
·
Anyone can buy anything from anywhere at anytime
·
The transaction risk is higher than traditional business
Process Of E-Business
- Both party are
involved business transaction.
- Commercials
transactions takes places between both the party parties involved o the
manufactures suppliers.
Eg. :
Ali baba , Ali express, india mart.
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