E-Commerce

Introduction

E-Commerce is stand for Electronic Commerce. Now a day shopping is one of the most popular activities by internet. One can buy anything via internet.

What is E-commerce?

E-commerce stands for Electronic commerce, commonly known as e-shopping or e-Commerce, consists of the buying and selling of goods over Internet and other computer networks. Electronic commerce or ecommerce is a term for any type of business, or commercial transaction that involves the transfer of information across the Internet. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. Now a day amount is expanding of buying and selling goods by internet use. Ecommerce allows consumers to electronically exchange goods and services with no barriers of time or distance. E-commerce is a broad sense, it includes uses of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the WWW at least at some point in the transactions lifecycle, although it can encompass a wider range of technologies such as e-mail as well.

E-Commerce

History

E-Commerce starts as “sell and buy” electricity, cables, computers, modems. Ecommerce started in 1991. Then internet was used to commercial use. From that time thousands of business are running as ecommerce.

Various types of E-commerce:
E-Commerce is mainly two types

1. B2B
2. B2C

a.   E-commerce that is conducted between businesses is known as business-to-business or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). B2B businesses often deal with hundreds or even thousands of other businesses, either as customers or suppliers.

1. E-commerce that is conducted between businesses and consumers is known as B2C. This is the type of e-commerce conducted by companies such as Amazon.com. Online shopping is a form of B2C e-commerce via the internet. All  sale and purchase transaction is completed electronically and interactively in real-time such as Amazon.com for new books. If an intermediary is present, then the sale and purchase transaction is called electronic commerce such as eBay.com.

Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions.

commerce: Different Services

Email, Enterprise content management, Instant messaging, Instant messaging, Usenet Newsgroups, Online shopping and order tracking, Online banking, Online office suites, Shopping cart software, Teleconferencing , Electronic tickets,.

Risks

• Physical threats-this type of threats occur at IT infrastructure.
• Malicious attacks from inside or outside your business.
• Data threats-this threats is at to software, files, database by any virus.
• Infrastructure failures - eg server crashes.
• Errors by people- this type of error may occur by peoples involves to both parties as business site employees or buyer.
• Hoaxes- its non-existent viruses circulated by mail.
• Technical failure - eg software bugs.
• Credit card and payment fraud.

The benefits of Ecommerce

• People can carry out business by ecommerce without the barriers. It is independent of time and distance. Anyone can logon by internet and place order of any goods and services by a little of time.

• It enables a business concern or individual to reach the global market

• Visitors can visit may site.

• Cost-of-sale is lower than traditional means.

• Products could generate viable volumes.

• It is ideal for niche products.

• Can handle a vast market place.

• gives the customers the opportunity to look for cheaper and quality products

• Cheapest means of doing business.

• Opportunities for companies to invest in improving their competitive position.

• Price of goods and services can easily compare to all others.

• From the buyer’s perspective

1. Less time is needed.

2. Less time is spent in resolving invoice and order discrepancies.

3. Better descisions

4. Increased opportunities for buying alternative products.

• Operational benefits of e commerce include reducing both the time and personnel required to complete business processes, and reducing strain on other resources.

• The strategic benefit of making a business ‘ecommerce enabled’, is that it helps reduce the delivery time, labour cost and the cost incurred in the following areas:

1. Document preparation

2. Reconciliation

3. Reconciliation

4. Error detection and correction

5. Data entry

6. Mail preparation

7. Telephone calling

8. Overtime

9. Supervision expenses




Drawbacks

·         Hesitation to consumer to buy product.

·         Hiker risk to consumer is the first drawback.

·         Enjoy going to a store or a shopping mall with friends or family

·         Risk of credit card security