What do you mean by e-commerce?
‘Electronic Commerce is sharing business information, maintaining business relationships and conducting business transactions by means of telecommunications networks’.
There are several ways of looking at e-commerce:
1. From a communication perspective: It is the ability to deliver products, services, information or payments via networks like the internet
2. From an interface view: E-commerce means information and transaction exchange: business to business (B2B), business to consumer (B2C), consumer to consumer (C2C) and business to government (B2G).
3. From online perspective: Ecommerce is an electronic environment that allows sellers to buy and sell products, services and information on the internet. The products may be physical like cars or services like news or consulting.
4. As a structure: e-commerce deals with various media: text, data, web pages, Internet telephony and internet desktop video.
5. As a market: e-commerce is a worldwide network. A local store can open a web storefront and conduct business worldwide.
With the emergence of internet, the ecommerce should include:
1. Electronic trading of physical goods and of intangibles such as information.
2. All the steps involved in trade, such as on-line marketing, ordering, payment and support for delivery.
3. The electronic provision of services such as after sales support or on-line legal advice.
4. Electronic support for collaboration between companies such as collaborative on-line design and engineering or virtual business consultancy teams.
E-business
E-business is the conduct of business on the internet, in supply-chain planning, tracking, fulfillment, invoicing and payment. It includes buying and selling as well as servicing customers and collaborating with business partners. The major focus area of any organization in e-business is:
1. Reach new markets.
2. Create new products or services.
3. Build customer loyalty.
4. Enrich human capital
5. Make the best use of existing and emerging technologies.
6. Achieve market leadership and competitive advantage.
Difference between e-commerce and e-business
The differences between the two are as follows:
1. E-Commerce is the subset of E-Business that is e-business is very broad concept while the e-commerce is just a small part of it.
2. Those activities which essentially involve monetary transactions (or exchange of value) are termed as "e-commerce". However, e-business includes many other things besides selling including marketing, procurement of raw materials or goods, customer education, looking for suppliers etc.
3. To sell online is e-commerce but to bring and retain customers and educate them online about the product or service is e-business.
4. E-commerce has also been defined as a process covering outward processes that touch customers, suppliers and external partners while e-business covers internal processes such as production, inventory management, product development, risk management, finance etc.
Summary:
E-commerce can be described as the use of the Internet and the web to transact business. More formally, digitally enabled commercial transactions between and among organizations and individuals. On the other hand, e-business can be described as the digital enablement of transactions and process within a firm, involving information systems under the control of the firm. Moreover, e-business applications turn into e-commerce precisely when an exchange of value occurs.
Features of E-Commerce
The unique features of ecommerce are as follows:
1. Ubiquity: E-commerce technology is available everywhere. So it lower the transaction cost for consumer/buyer.
2. Global Reach: The technology reaches across national boundaries, around the earth. So the e-commerce technologies enable a business to easily reach across geographic boundaries.
3. Universal Standards: there is one set of technology standards, namely internet standard (TCP/IP and WWW).
4. Richness: Advertising and branding are an important part of commerce. E-commerce can deliver video, audio, animation and text marketing messages much better than other technology.
5. Interactivity: Consumer or user can interact with content through the e-commerce technology.
6. Information Density: The e-commerce technology reduces information costs raises the quality of information
7. Personalization/Customization: E-commerce technology allows personalized messages to be delivered to individuals as well as groups and customization of products and services.
Advantages of E-commerce
There are several advantages of the e-commerce they are:
1. 24*7 operations
Round clock operation is possible without worrying about jams and crowds. Means available anywhere, anytime and anyone can use it.
2. Economy
E-commerce is economical. There is no rental of physical store space, insurance or infrastructure investment. E-commerce only needs an idea, unique product and well designed web storefront. Thus e-commerce is more cost effective to the merchant.
3. Better customer service
E-commerce means better and quicker customer services. Web based customer service makes customer happy because they can get quick and direct access to what they want.
4. Global reach
The Internet being inherently global, it make customer easy to reach world-wide.
5. Information sharing
Electronic marketplaces improve information sharing between merchants and customers and promote quick, just-in-time deliveries. E-mail is one example of how people collaborate to exchange information and word on solutions.
6. Customization
Digital products are highly customizable. They are easy to recognize, revise or edit according to consumer taste and preferences.
7. Team work
People collaborate to exchange information and word on solution. Suppliers, vendors, business partners and customers work together.
Disadvantages of E-commerce
1. Product may not be up to the quality
2. Lack of insurance.
3. Lack of security
‘Electronic Commerce is sharing business information, maintaining business relationships and conducting business transactions by means of telecommunications networks’.
There are several ways of looking at e-commerce:
1. From a communication perspective: It is the ability to deliver products, services, information or payments via networks like the internet
2. From an interface view: E-commerce means information and transaction exchange: business to business (B2B), business to consumer (B2C), consumer to consumer (C2C) and business to government (B2G).
3. From online perspective: Ecommerce is an electronic environment that allows sellers to buy and sell products, services and information on the internet. The products may be physical like cars or services like news or consulting.
4. As a structure: e-commerce deals with various media: text, data, web pages, Internet telephony and internet desktop video.
5. As a market: e-commerce is a worldwide network. A local store can open a web storefront and conduct business worldwide.
With the emergence of internet, the ecommerce should include:
1. Electronic trading of physical goods and of intangibles such as information.
2. All the steps involved in trade, such as on-line marketing, ordering, payment and support for delivery.
3. The electronic provision of services such as after sales support or on-line legal advice.
4. Electronic support for collaboration between companies such as collaborative on-line design and engineering or virtual business consultancy teams.
E-business
E-business is the conduct of business on the internet, in supply-chain planning, tracking, fulfillment, invoicing and payment. It includes buying and selling as well as servicing customers and collaborating with business partners. The major focus area of any organization in e-business is:
1. Reach new markets.
2. Create new products or services.
3. Build customer loyalty.
4. Enrich human capital
5. Make the best use of existing and emerging technologies.
6. Achieve market leadership and competitive advantage.
Difference between e-commerce and e-business
The differences between the two are as follows:
1. E-Commerce is the subset of E-Business that is e-business is very broad concept while the e-commerce is just a small part of it.
2. Those activities which essentially involve monetary transactions (or exchange of value) are termed as "e-commerce". However, e-business includes many other things besides selling including marketing, procurement of raw materials or goods, customer education, looking for suppliers etc.
3. To sell online is e-commerce but to bring and retain customers and educate them online about the product or service is e-business.
4. E-commerce has also been defined as a process covering outward processes that touch customers, suppliers and external partners while e-business covers internal processes such as production, inventory management, product development, risk management, finance etc.
Summary:
E-commerce can be described as the use of the Internet and the web to transact business. More formally, digitally enabled commercial transactions between and among organizations and individuals. On the other hand, e-business can be described as the digital enablement of transactions and process within a firm, involving information systems under the control of the firm. Moreover, e-business applications turn into e-commerce precisely when an exchange of value occurs.
Features of E-Commerce
The unique features of ecommerce are as follows:
1. Ubiquity: E-commerce technology is available everywhere. So it lower the transaction cost for consumer/buyer.
2. Global Reach: The technology reaches across national boundaries, around the earth. So the e-commerce technologies enable a business to easily reach across geographic boundaries.
3. Universal Standards: there is one set of technology standards, namely internet standard (TCP/IP and WWW).
4. Richness: Advertising and branding are an important part of commerce. E-commerce can deliver video, audio, animation and text marketing messages much better than other technology.
5. Interactivity: Consumer or user can interact with content through the e-commerce technology.
6. Information Density: The e-commerce technology reduces information costs raises the quality of information
7. Personalization/Customization: E-commerce technology allows personalized messages to be delivered to individuals as well as groups and customization of products and services.
Advantages of E-commerce
There are several advantages of the e-commerce they are:
1. 24*7 operations
Round clock operation is possible without worrying about jams and crowds. Means available anywhere, anytime and anyone can use it.
2. Economy
E-commerce is economical. There is no rental of physical store space, insurance or infrastructure investment. E-commerce only needs an idea, unique product and well designed web storefront. Thus e-commerce is more cost effective to the merchant.
3. Better customer service
E-commerce means better and quicker customer services. Web based customer service makes customer happy because they can get quick and direct access to what they want.
4. Global reach
The Internet being inherently global, it make customer easy to reach world-wide.
5. Information sharing
Electronic marketplaces improve information sharing between merchants and customers and promote quick, just-in-time deliveries. E-mail is one example of how people collaborate to exchange information and word on solutions.
6. Customization
Digital products are highly customizable. They are easy to recognize, revise or edit according to consumer taste and preferences.
7. Team work
People collaborate to exchange information and word on solution. Suppliers, vendors, business partners and customers work together.
Disadvantages of E-commerce
1. Product may not be up to the quality
2. Lack of insurance.
3. Lack of security
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