Electronic Commerce Environment and Opportunities (1. Background)

What is E-Commerce/Web Commerce?

E-Commerce:

E-Commerce stands for Electronic Commerce. “E-Commerce” is the buying and selling of goods add services on the Internet, especially the World Wide Web. In practice, this term and newer term Business often used interchangeably.

Explain the history of E-Commerce?

History of E-Commerce:-

E-Commerce activities started in the 1970s with innovations such as the electronic fund transfers (EFT). However such applications were limited to large corporations, financial institutions and very few small daring business. Then came EDI, which expanded the scope from financial transactions to other types of transactions and allowed manufacturers, retailers, services etc, to join the race. This further expanded to many applications ranging from stock trading to travel reservation system. Initially, both EFT and EDI were carried out through private networks or virtual private network (VPNs). However with the commercialization of the Internet in the early 1990s and it’s rapid growth to millions of potential customers, the term electronic commerce was coined and E-Commerce applications expanded rapidly. The main reason for the rapid application was the development of networks, protocols, software, and specifications for e-commerce activities. Another reason was the increase in competition and business pressure, Since then there have been many innovations such as an advertisement to online auction houses to virtual reality experience.

The basic web/e-commerce concepts? Or The different types of e-commerce?

The several types of e-commerce models in use today are classified based on the nature of the interaction with players are:

1. Business-to-Consumer (B2C):

In B2C, businesses sell directly a diverse group of product and services to customers. In these cases, e-commerce supplements the traditional commerce by offering products and services through electronic channels. Wal-Mart Stores and the Gap are the examples of companies that are very active in B2C e-commerce.

2. Business-to-Business (B2B):-

B2B e-commerce holds electronic transactions between businesses. The Internet and reliance on all business upon other companies for supplies, utilities and services have enhanced the popularity of B2B e-commerce and made B2B the fastest growing segment within the e-commerce environment. In a B2B environment, purchase orders, invoices, inventory status, shipping logistics and business contracts handed directly through the network result in increased speed, reduced errors and cost savings.

3. Consumer-to-Consumer (C2C) :-

Using C2C e-commerce that involves individuals sell directly to other consumers using the Internet and web technologies. Individuals sell a wide variety of services/products on the Web or through auction sites such as eBay.com and gittigidiyor.com through classified ads or by advertising.

4. Consumer-to-Business (C2B):-

C2B e-commerce that involves individuals selling to business may include a service/product that a consumer is willing to sell. Individuals offer certain prices for specific products/services. Companies such as pazaryerim.com and job shop. Com are examples of C2B.

5. Business-to-Government (B2G):-

The transactions between the business and government over the electronic network are termed as B2G. B2G e-commerce involves the use of the Internet for public procurement, licensing procedures, government-related formalities and filing of tax returns. For example, when Classic Shoes Ltd., submits the tax returns to the income tax department through the Internet, then it is B2G e-commerce.

the features of E-Commerce?

Features of E-Commerce:-

1. Ubiquity (Everywhere):-

E-Commerce is widespread, that is, it is available everywhere always. It widespread, that is, it is available everywhere always. It sets free market fr being restricted to a physical space and makes it possible to shop from the computer. The result is called a market space. For consumers, ubiquity cuts transaction costs for exploring products in the market. Consumers can acquire any information whenever they want, regardless of their location.

2. Global Reach:-

E-Commerce technologies enable a business to easily reach across geographic boundaries around the earth far more conveniently and effectively as compared to traditional commerce. Globally, companies with for e-commerce merchants is approximately equal to a size of the online population.

3. Universal Standards:-

Universal Standards are standards shared by all the nations around the world. These are technical standards of the Internet for conducting e-commerce. It gives all the ability to connect the Internet for conducting e-commerce. It gives all the ability to connect at the same level and it provides network externalities that will benefit everyone. Universal technical standards lower entry costs and minimal search costs.

4. Interactivity:-

E-Commerce technologies permit two-way communications between customer and sellers which makes it interactive. It proves as a significant feature of e-commerce technology over the commercial traditional technologies of the 20th century.

5. Information Density:-

Information density means total amount and quality of information available over the Internet to all market buyers and sellers. Internet vastly increases information density. Information density offers better quality information to consumer and merchants. E-commerce technologies increase the accuracy and timeliness of information. For example, flipkart.com store has a variety of products with prices.

6. Richness:-

Richness refers to be complexity and content of the message. Richness means all commercial activities and experience, conducted through a variety of messages. For example, text, pictures, videos, sound, links, SMS, etc.

7. Personalization:-

E-Commerce technology offers personalization. Personalization means designing marketing messages according to particular individuals by customizing it as per customer personal details like name, interests and past purchases record. Products or services can be modified or altered according to the user’s choice or past buying record.

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