E-commerce is known as electronic commerce. E-commerce involves the conducting of commercial transactions through electronic media. In other term words, is e-commerce to is trade any and transactions commercial which is through any electronic means such as facsimile, telex and telephone. Today, the restricted transactions involving computer to computer communications. Electronic communications take place either through a ‘closed’ or ‘open’ network. A closed computer network system is one that is closed to the public with easily identifiable users. Examples include debit cards, credit cards and electronic data interchange (EDI). On the other hand, an open system is one that is open to the public with multiple users. An example is the internet. E-commerce history can be traced back to the birth of the

Internet in the 1960s. The Internet was originally developed as a way of sharing current results of military research sponsored by the US government which is described by J.C.R Licklider of MIT in 1962 and developed by DARPA (Defense Advanced Research Projects Agency) and for some time the technology was confined to the military. In the 1980s however, businesses learned about the new technology and started funding research into the hardware and software. This research developed systems that are used by industry, universities and eventually commerce.


business itself. Among the first of these entrepreneurs are Amazon and Yahoo. opened the Internet to anyone with basic computer experience and an online connection.The development of the World Wide Web during the early 1990s dramatically changed the use of the Internet. media corporations. and electric utilities—made aggressive Internet-related investments. software satellite system designers. firms. and along with it the Web browser. television broadcasters and cable companies. The expansion of the Web. rush products electronic realm. telecommunications hardware suppliers. 2 . representatives from numerous industries— including consumer electronics companies. in the US alone. into this companies there expanding quickly was a saw the to Internet's take and to marketing and redefine potential. Subsequently. the quantity is of e-commerce at some has $8 increased billion a thousand folds. That is however small compared to business-to-business transactions. Online companies and trading only gained momentum in the middle of the 1990s. In 1999. companies. As online activity services increased.3 trillion in 2003. To meet this demand. the value of business-toconsumer electronic commerce estimated and predicted to increase to 108 billion over the next five years. Internet service providers. which is estimated at $43 billion and expected to increase to $1. Over the past few years. mobile phone networks.

where consumers use to purchase product and services by credit card payment over a secured browse product and services which they prefer and also can make a selection and do purchasing by credit card payment with the assurance of delivery in the mail.CONTENT 1. These E-commerce is a way of doing business over large electronic networks such as internet and it also greatly facilitates transactions between companies and consumers (B2C). exchange happens between two parties over some electronic medium. An example of e-commerce between individuals or between two consumers would be online marketplace such as eBay. The different here is 3 . In e-commerce. Anyone with internet access also with credit card may access the website.Define e-commerce in business perspective and provide ONE example of e-commerce products or services. however can even include transactions between companies as well as between individuals as per discuss above. anyone with internet access and a credit or debit card can browse and purchase available products. Similar to the example given above. Electronic commerce or well known as e-commerce refers to a wide range online business activities involve of product and services. between one company and another (B2B) and between individual consumers (C2C). It is also consist to any form of business transaction in which those parties interact electronically rather than physical exchanges or direct physical contact. Those exchanges are very common transactions for example between companies and consumers. An example of business to consumer e-commerce would be an online store such as Amazon. typically through the internet services.

Any brick and mortar store can become an e-commerce business by adding a virtual storefront with an online catalog. 4 . including marketing. In order to be successful. In most cases.Brief the purpose or function of e-commerce business process with related example. e-commerce and e-businesses must have quality storefronts that are simple to navigate and peruse. but e-commerce does not cover all aspects of e-business. Ebusiness became an extension of e-commerce to encompass all aspects of businesses that function online. E-business includes all aspects of running a business that sells goods and services. Although selling of the terms and e-commerce on and the e-business Internet or are often used interchangeably.those products are being sold by individual seller (other consumers) rather than one large online store. e-business refers exclusively to Internet businesses. developing business partners and customer education. earning and retaining customers. 2. E-business involves e-commerce. but it may also refer to any business that uses Internet technology to improve productivity and profitability. E-commerce is the buying and goods services other computer network. Business transactions that involve the exchange of money are covered by the term e-commerce. with accurate and through catalog information. there are differences. procurement.

location.E-commerce serves as an equalizer. sound and now video and no space or time limitations as to information is posting an annual sales rate of approximately $1. To be fair. Leveling the Playing Field through E-commerce: The Case of Amazon. It enables start-up and small and medium-sized enterprises to reach the global market. the use of computerized information management for a huge and rapidly expanding globally distributed information base along with the availability of full color media including graphics. animation. 3. Amazon. It does not have a single square foot of bricks and mortar retail floor space. Due to the efficiencies of selling over the Web. a) benefits to end user Unlimited number of criteria such as description. subcategory. Amazon has yet to turn a profit but this does not obviate the point that in many industries doing business through e-commerce is cheaper than conducting business in a traditional brick-and-mortar company. size. 5 . equal to about 235 Barnes & Noble (B&N) superstores. while B&N has spent about $118 million for 235 Amazon. Full two-way in which 365 days for information access capability which allows for quick response and feedback concerning product/services and related information. Nonetheless.2 is a virtual bookstore. For an example. and price range are provided for users . color. Amazon has spent only $56 million on fixed assets.Explain the benefits of e-commerce towards end user and also for the organization. category.

b) benefits to the organization The suppliers could be able to reduce costs to manage their inventory of goods because they can automate the inventory management which the manual business processes has been replaced with their automated electronic equivalents to accelerate ordering. demographic and preferences of their customers with the customer’s permission and to use this information to build an ongoing 6 . leading to lowered transaction costs including marketing. at for and the digital music. E-commerce allows the suppliers to reach global market segment from local and regional markets to national and international markets with minimal capital outlay. delivery video. This method indirectly can save their operational costs. transaction processing. The suppliers can monitor the consumers’ buying habits and interests by which the internet technologies allow sellers to track the interests. This reducing costs to the end user. delivery and payment procedures. There are no operational cost and the user tend to get the products or services at a cheaper price than in the physical store. The elimination of the need for middlemen or disintermediation. and reduced inventory and labor costs. downloadable directly consumer's computer purchase. time of software. space. equipment. or staff.Full products processing such as of transactions to the including images. sales. text. It allows the suppliers to increase their sales meanwhile decrease the investment costs. reduced overhead.

cannot be advertising changed can easily be expensive so the papers printed and Furthermore. electricity and other costs. It is not necessary to build the physical store front because the products and services are sold online which is through downloading and shipment which the customers can view the products through online catalogue. CONCLUSION Nowadays e-commerce has been a trend for all business people around the world. and if the product or service can be downloaded then e-commerce firms have no distribution costs involved. because the automate their store Automated order tracking and billing systems cut additional labor costs. E-commerce can reduce advertising costs because its is easier to update because through and high flexibility. This is because online makes the process of buying and selling easier where the seller could be able to manage online customer because there are no specific services are to be provided for each and every customer.relationship with the customer by providing more options of products and services to meet the customer’s needs. the information and flexibility is low. Most of the businesses such as private universities. Printing advertisements need a specific design and plan which is a waste of time. A traditional business may have large overhead costs such as rental fee. The sellers labor can costs can be reduced online with e-commerce fronts. inks are advertising Print needed. 7 .

not everyone are using internet because their area or location would not support any internet connection. Ecommerce is an easy system and process which reduce almost all the cost but there are also many complaints about the delivering and shipment methods. People would not have to travel for a long distance to purchase things. and other service provider are using internet to promote the products and services. E-commerce has overcome the issue of geographical in which customers from various country would be able to purchase anything they wanted to have online. People also hardly believe the online companies because they afraid to expose their credit cards details which might be hacked by irresponsible user. Other than that. low literacy of computer skills people would not able to buy things online which they prefer to go to a physical and cosmetic business. Sometimes the system or process used by an organization is complicated. 8 . entertainment. Besides that. Sometimes the products are not reachable in the time required.

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