ELECTRONIC

COMMERCE
 CONTEXT:
 Definition of E-Commerce.
 History of E-Commerce.
 Advantages and Disadvantages
 of E-Commerce.
 Difference between E-Commerce
and traditional commerce
 E-Commerce Examples.
 Definition of E-Business
 Difference between E-Commerce and E-
Business
WHAT IS E-COMMERCE?
• E-commerce consists of the buying
and selling of products or services
over electronic systems such as
the Internet and other computer
networks.
• Electronic commerce commonly
known as e-commerce or
eCommerce.
Definition…
• e-commerce is an abbreviation used for
electronic commerce. It is the process
through which the buying, selling,
dealing, ordering and paying for
the goods and services are done over
the internet is known as e-commerce. In
this type of online commercial
transaction, the seller can communicate
with the buyer without having face to
face interaction.
• Electronic commerce was identified
as the facilitation of commercial
transactions electronically, using
technology such as Electronic Data
Interchange (EDI) and Electronic
Funds Transfer (EFT).
• What is EDI?
• What is EFT?
Electronic Data Interchange:
Electronic Funds Transfer:
• EDI is the structured
transmission of data
between organizations
by electronic means. It
is used to transfer
electronic documents
or business data from
one computer system
to another computer
system.
• EFT is the electronic
exchange or transfer
of money from one
account to another.
History of E-Commerce
• The growth and acceptance of credit cards,
automated teller machines (ATM) and
telephone banking in the 1980s were also
forms of electronic commerce.
• Another form of E-Commerce was the
airline reservation system, for example
Sabre in the USA and Travicom in the UK.
• By the end of 2000, many
European and American business
companies offered their services
through the World Wide Web.
• Since then people began to
associate a word “E-Commerce"
with the ability of purchasing
various goods through the Internet
using secure protocols and
electronic payment services.
Period in the development of E-
Commerce
1995-2000 2001-2006 2007-PRESENT
INVENTION CONSOLIDATION RE-INVENTION

Technology driven Business driven Mobile technology

enables social, local
and mobile
commerce
ungoverned Stronger regulation Extensive
and governance government
surveillance

Low-complexity retail High-complexity Retail service and

product retail products and content
services
Advantages of E-commerce

• Faster buying/selling procedure, as well

as easy to find products.
• Buying/selling 24/7.
• Low operational costs and better quality
of services.
• Easy to start and manage a business.
• No need of physical company set-ups.
• Customers can easily select products
from different providers without moving
around physically.
Disadvantages of E-commerce

• There is no
guarantee of product
quality.
• There are many
hackers who look for
opportunities, and
thus an ecommerce
site, service,
payment gateways,
all are always prone
to attack.
E-COMMERCE EXAMPLES:
• An individual purchases a book on the
Internet.
• A customer reserves a hotel room over
the Internet.
• A business buys office supplies on-line
or through an electronic auction.
• A manufacturing plant orders electronic
components from another plant within
the company using the company's
intranet.
• Some examples of real world
application of e-commerce
• online banking,
• online shopping,
• online ticket booking,
• social networking etc.
E-Business
• Electronic Business, shortly known
as e-business, is the online
presence of a business. It can also
be defined as the business which is
done with the help of internet or
electronic data interchange i.e. is
known as E-business. E-commerce
is one of the important component
of e-business.
• Buying and Selling of goods and services
through the internet is known as e-commerce.
Unlike e-business, which is an electronic
presence of a business, by which all the
business activities are conducted through the
internet.
• e-commerce is a major component of e-
business.
• e-commerce includes transactions which are
related to money, but e-business, includes
monetary as well as allied activities.
• e-commerce covers customers, suppliers,
distributors, etc. On the other hand, e-business
covers internal as well as external processes.
• e-commerce requires a website that can
represent the business. Conversely, e-business
requires a website, Customer Relationship
Management and Enterprise Resource
Planning for running business over the internet.
• e-commerce uses the internet to connect with
the rest of the world. In contrast to e-business,
internet, intranet and extranet are used for
connecting with the parties .