E-COMMERCE

Electronic

commerce,

commonly

known

as e-commerce or eCommerce,

or e-

business consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use 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 World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well. A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as etailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web. Electronic commerce that is conducted between businesses is referred to as business-tobusiness or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-toconsumer or B2C. This is the type of electronic commerce conducted by companies such as Amazon.com. Online shopping is a form of electronic commerce where the buyer is directly online to the seller's computer usually via the internet. There is no intermediary service. The 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 aseBay.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.

By the end of 2000. data mining and data warehousing. another pre Internet online system introduced in 1991.[1] Although the Internet became popular worldwide around 1994 when the first internet online shopping started. An early example of many-to-many electronic commerce in physical goods was the Boston Computer Exchange. it took about five years to introduce security protocols and DSL allowing continual connection to the Internet. was the American Information Exchange. including online consulting. The growth and acceptance of credit cards. Since then people began to associate a word "ecommerce" with the ability of purchasing various goods through the Internet using secure protocols and electronic payment services . electronic commerce meant the facilitation of commercial transactions electronically. electronic commerce would additionally include enterprise resource planning systems (ERP). These were both introduced in the late 1970s. Originally. a marketplace for used computers launched in 1982. Tim Berners-Lee invented the WorldWideWeb web browser and transformed an academic telecommunication network into a worldwide everyman everyday communication system called internet/www. Another form of e-commerce was the airline reservation system typified by Sabre in the USA and Travicom in the UK.Early development The meaning of electronic commerce has changed over the last 30 years. An early online information marketplace. allowing businesses to send commercial documents like purchase orders or invoices electronically. Commercial enterprise on the Internet was strictly prohibited until 1991. In 1990. automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). many European and American business companies offered their services through the World Wide Web. From the 1990s onwards.

• Integration of the website with PayPal would help accept real-time credit card processing instantly. competitiveness and efficiency. which involves allotting codes to web pages. • The templates of the site should be designed professionally and there should be space to accommodate catalogues prepared in Excel. For that a powerful website builder software has to be selected. . • The pages have to be search optimized if you want your site to be visible in search engines at a higher position.BUSINESS APPLICATIONS Some common applications related to electronic commerce are the following:            Email Enterprise content management Instant messaging Newsgroups Online shopping and order tracking Online banking Online office suites Domestic and international payment systems Shopping cart software Teleconferencing Electronic tickets FEATURES OF E-COMMERCE • E-commerce websites have to exert an image of vibrancy. • The site has to be integrated with other websites using HTML editor.

which in turn helps develop and adopt an efficient marketing and promotional strategy. Besides these. people also come across reviews posted by other customers. information storage and inventory management. This in turn significantly increases sales and profit. even small enterprises can access the global market for selling and purchasing products and services. Electronic commerce reduces the burden of infrastructure to conduct businesses and thereby raises the amount of funds available for profitable investment. On the other hand. as e-commerce empowers one to execute business transactions 24 hours a day and even on holidays and weekends. With the help of e-commerce. It collects and manages information related to customer behavior. about the products purchased from a particular e-commerce site.ADVANTAGES The greatest and the most important advantage of e-commerce. It caters to the demands of both the national and the international market. e-commerce significantly cuts down the cost associated with marketing. is that it enables a business concern or individual to reach the global market. It reduces the time period involved with business process re-engineering. With the help of electronic commerce. consumers can easily research on a specific product and sometimes even find out the original manufacturer to purchase a product at a much cheaper price than that charged by the wholesaler. customization of products to meet the demand of particular customers. Shopping online is usually more convenient and time saving than conventional shopping. as your business activities are no longer restricted by geographical boundaries. processing. which can help makepurchasingdecisions. It also enables efficient customer care services. Even time restrictions are nonexistent while conducting businesses. increasing productivity and customer care services. . Electronic commerce gives the customers the opportunity to look for cheaper and quality products. customer care. For business concerns.

Some people simply refuse to trust the authenticity of completely impersonal business transactions. the legitimacy and authenticity of different e-commerce sites have also beenquestioned. Many times. One important disadvantage of e-commerce is that the Internet has still not touched the lives of a great number of people. we can say that the advantages of e-commerce have the potential to outweigh the disadvantages. on evaluating the various pros and cons of electronic commerce.Disadvantages Electronic commerce is also characterized by some technological and inherent limitations which has restricted the number of people using this revolutionary system. However. A proper strategy to address the technical issues and to build up customers trust in the system. Many people have reservations regarding the requirement to disclose personal and private information for security concerns. returning the product and getting a refund can be even more troublesome and time consuming than purchasing. The time period required for delivering physical products can also be quite significant in case of e-commerce. People prefer to shop in the conventional way than to use e-commerce for purchasing food products. Thus. A large number of people do not use the Internet for any kind of financial transaction. Another limitation of e-commerce is that it is not suitable for perishable commodities like food items. either due to the lack of knowledge or trust. as in the case of e-commerce. . A lot of phone calls and e-mails may be required till you get your desired products. in case if you are not satisfied with a particular product. So e-commerce is not suitable for such business sectors. can change the present scenario and help e-commerce adapt to the changing needs of the world.

technical. delivery. and new ideas fostered. Efficient use of capital demands small inventories. fast collection of funds. Speed is vital. and so maintaining detailed information flows between all parties involved in today's complex manufacturing processes. identity-building — has to be interchanged across the scattered divisions of large companies. wholesale rather than retail. safeguards against fraud. payment. B2B involves widening the circle of suppliers (for safety and competition). invoicing. . and of centralizing control (for records and discounts). which entails anticipating demand. But it means more than that. assessed and disseminated. as are improved communication. collaboration. B2B ecommerce is an important part of any online business. Information of all types — corporate. procedures to handle disputes. with ability to vary the collection period. Leaving aside the simple transfer of funds — covered here — many businesses need some combination of:        creditworthiness assessment.Business to Business B2B is the selling between companies. guarantee of quality and delivery of goods (escrow services). reporting: approval of sale.Types of E-commerce Business-to-business Business-to-government Business-to-consumer “Consumer Electronic Commerce” or “Retail Electronic Commerce” Government-to-consumer Consumer-to-consumer B2B .

a web site should be a standard part of the promotional and advertising mix for . payment processing. thanks to developments in template-based online stores which are based on packaged applications that are delivered over the internet.2 billion in 1998 to $31. etc. Typically. and software has been developed to meet the challenge — customer relationship management. and naturally retailers feel very strongly about their business branding. enterprise resource planning. So the ability to create a unique ‘skin’ for each site is an important part of a template-based e-store offering.Business to Consumer B2C (Business to Consumer): Refers to a business communicating with or selling to an individual rather than a company. other than internet access. As nearly all online stores will require the same functions: catalogues. individual sites can be created within minutes of the retailer selecting a template and supplying graphics such as logos. should consider an online store. or who wants customers to be able to research their purchases on the internet. supply chain management. Anyone who wants to sell products and services over the internet. The one area where it's important for online stores to differentiate is their look and feel. order baskets. All these requirements can be handled by IT.and customer understanding. online auction. Little of it is off-the-shelf. B2C e-commerce jumped from $11. but is devised as systems to be extended and built round individual company requirements. retailers will pay only a modest monthly rental charge – and retailers require no specialist hardware or software. Using the latest internet application technology. B2C .2 billion in 1999. These days. content management and member management. it makes sense for those components to be created once and shared by all stores. Doing business online no longer requires a huge investment by retailers. with each store effectively ‘renting’ its own copy of the applications.

online shoppers are very pricesensitive and are easily lured away. along with other tools such as Yellow Pages. .Business to Employee B2E (Business to Employee) E-Commerce generally refers to the requisitioning of supplies by employees for use in their jobs. Many companies have found that B2E technologies have dramatically reduced the administrative burdens with the human resources department. many smaller firms find it difficult to enter a market and remain competitive. and supervisors are asked to approved the requisition in the event that the total order exceeds preset limits for that particular employee. Broadband telecommunications will enhance the buying experience.every business. B2E has grown into technologies that allow the employee to access their employee records to update address information. but this term has grown to encapsulate this activity into the B2E definition. but this really has grown to encompass much more. shift investments in the 401K plan. or maintain their internal resume. B2E . Offerings and prices can change instantaneously. In addition. B2E makes it very easy for an employee to requisition a new toner cartridge and printer paper . Admittedly. Challenges faced by B2C e-commerce The two main challenges faced by B2C e-commerce are building traffic and sustaining customer loyalty. Call centers can be integrated with the website. so acquiring and keeping new customers is difficult.the order is entirely electronic. However. Due to the winner-take-all nature of the B2C structure. Advantages of B2C e-commerce B2C e-commerce has the following advantages:     Shopping can be faster and more convenient. newspaper advertising and signage. maintaining employee information has little to do with commerce. For example.

In this paper. It is a challenging task. which usually focus on B2B and B2C ecommerce schemes. seeking airlines that are willing to offer the transatlantic round trip for £200 or less. together with VTS. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions C2B is a rather peculiar Internet phenomenon. Many analysts state that C2B and C2C e-commerce will thrive in the near future.C2B . can be utilized to form a trading framework that uniformly realizes the delivery/payment phase. The consumer reviews the bids and selects the company that will complete the project. We demonstrate that a wide range of matching phase implementations. The beauty of the Internet is that it brings together a large number of customers to create a marketplace that a number of airlines (that will have to otherwise fly with empty seats) will be interested in. We show how the introduction of vouchers simplifies the procedures of C2B and C2C e-commerce. but has only £200 ($320) in the bank to pay for this round trip. A student wants to fly from London to New York. to construct these e-commerce systems because of their diverse nature.Consumer to Business A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. we propose a trading model that supports C2B and C2C e-commerce through the use of digital media called “vouchers” and the trading system “VTS”.Consumer to Consumer . They put up an ad in an Internet C2B site. An example of C2B e-commerce could be the following. were designed for constructing specific e-commerce systems. can be integrated into this framework. however. in which the characteristics of specific e-commerce systems such as market coordination are implemented. and show that vouchers. making them unsuitable for developing consumer-initiated e-commerce systems. C2C . The existing EC construction tools.

com and MSN.com is an online auctioning site that facilitates the trade of privately owned items between individuals (May. 1995-2004). There are many sites offering free classifieds.com. many individuals established online organizations that encouraged and assisted commerce between consumers.au. and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. Although there is no commercial benefit to the website. p. Sites such as Sastashopping. but they tend to be superfluous. the company has continued to grow both in size and popularity. Companies using internal networks to offer their employees products and services online--not necessarily online on the Web--are engaging in B2E (Business-to-Employee) ecommerce. At the forefront of this movement are Consumer-to-Consumer (C2C) applications within eBusiness. These websites provide a valuable service to consumers looking for jobs. B2G (Business-to-Government). it redefined the traditional structure of business by giving small firms and individuals the same opportunity as multi-national corporations. The most famous and successful example of a Consumer-to-Consumer application is Ebay. Other examples of Consumer-to-Consumer applications are service and employment websites such as Monster. xv). When eCommerce was first introduced. Consumers are no longer totally reliant on corporations and are increasingly looking to conduct their own business transactions.com. They are often described as Peer-to-Peer (P2P) (QUT School of International Business. xv). There are other categories of ecommerce out there. 2003. Web-based communication organizations are one final example of a C2C operation. C2G (Citizen-toGovernment) are other forms of ecommerce that involve transactions with the government-from procurement to filing taxes to business registrations to renewing licenses.109). Employers can advertise on these websites and potential employees can contact their organization for an interview. auctions. The company began in September 1995 when Pierre Omidyar decided to establish the first online marketplace (Ebay. 2003. G2G (Government-to-Government).com ICQ.com act as a communications medium for peer-topeer deliberations. G2E (Government-to-Employee). As a result. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995. Ebay. Since that time. C2C applications are any transactions between and amongst consumers (QUT School of International Business. G2B (Government-toBusiness). 1995-2004). p. p. G2C (Government-to-Citizen). Ebay is now considered one of the most successful C2C eBusinesses ever.independent society. This is evident in Western Australia where the number of small businesses has doubled from 1983 to 1999 (Australian Bureau of Statistics. 2000. Seek. The website claims that through Ebay.com. “practically anyone can trade practically anything� (Ebay.au and CareerOne. 2001). they do provide the .