E- Commerce
E-Commerce is commonly known as
electronic marketing.
It consists of buying and selling goods
and services over an electronic
system such as the internet.
E-Commerce is the purchasing, selling
and exchanging goods and services
over computer network or internet
through which transactions or terms of
sale are performed electronically.
Steps involved in E-Commerce
Online store
Customer Internet
support marketing
Shipping Payment
solutions
Customer or
Order
management
system
Process of E-Commerce
Aconsumer uses web browser to connect to the
home page of a merchant’s website on the
Internet.
The consumer browses the catalogue of
products featured on the site and select items to
purchase. The selected items are placed in an
electronic shopping cart.
When the consumer is ready to complete the
purchase of selected items, he or she provides a
bill-to and ship- to address for purchase and
delivery.
When the credit or debit card number is
validated and the order is completed at the
commerce server site, the merchant’s site
displays a receipt confirming the customer’s
purchase.
The website then forwards the order to a
processing network for payment processing
and fulfilment.
Some common applications related
to e-commerce
Online shopping and Order tracking
Electronic Tickets
Social- networking
Newsgroups
Online Banking
Teleconferencing
Instant Messaging
Domestic and International Payment Services.
Online Banking
Online banking is defined as:
The automated delivery of new and traditional
banking products and services directly to
customers through electronic, interactive
communication channels.
Benefits:
Anytime and anywhere banking.
Pay bills online by saving postal services.
Online purchases
Service available: 24x7
Types of E-Commerce
Business to Business (B2B)
Business to Consumer (B2C)
Business to Employee (B2E)
Consumer to Consumer (C2C)
Business-To-Business (B2B)
B2B stands for Business to Business. It consist of
largest forms of Ecommerce. This model
defines that Buyers and sellers are 2 different
entities. It is similar to manufacturer issuing
goods to the retailer and wholesaler.
Example: Dell deals computers and other
associated accessories online but it does not
make up all these products. So, to govern to
deal with these products, first step is to
purchase them from the producers of those
products.
Business-To-Consumer(B2C)
The basic concept of this is to sell the
product online to the consumers.
B2C is the direct trade between the
company and consumers. It provides
direct selling through online.
Example: Dell selling me a laptop.
Business-To-Employee(B2E)
E-commerce uses a network which allows
companies to provide products and services to
their employees. Companies uses B2E networks
to automate employee-related corporate
processes.
Consumer-To-Consumer (C2C)
There are many sites offering free classifieds,
auctions and forums where individuals can buy
and sell through online payment systems like
PayPal where people can send and receive
money online with ease.
Example: e-Bay’s auction service is an example
where person to person transaction takes place
every day since 1995.
Another examples are Quikr, olx etc.
Social Impact
By using electronic technology through the
internet, it achieved:
More competitions, more marketplaces, faster
transactions and more advanced technologies.
It made activities between customers and
producers more active.
Limitations
Unable to examine products personally.
Not everyone is connected to internet.
There is the possibility of credit card number
theft.
Mechanical failures can cause unpredictable
effect on total processes.
