E-commerce (Electronic commerce)

E-commerce (Electronic commerce)

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Definition of E-Commerce

E-commerce is the buying and selling of goods & services on the Internet or transmitting of funds or data, over an electronic network. These business transactions occur either as Business-To-Business (B2B) or Business-To-Consumer (B2C) or Consumer-To-Consumer (C2C) or Consumer-To-Business (C2B). The term e-tail is used in reference to the transactional processes for online shopping.

In the last decade, use of e-commerce platforms have obtained substantial growth in online retail.  In 2007, e-commerce accounted for 5.1% of total retail sales and up to the end of 2019, e-commerce obtained up 16.0% share.  

History of e-commerce

The starting of the e-commerce can be traced to the 1960s; when businesses started using Electronic Data Interchange to share business documents with each other. In 1979, the American National Standards Institute developed ASC X12 as a universal standard for businesses to share documents through electronic networks.

Types of e-commerce

1)      Business-to-business (B2B): 

B2B type of e-commerce business refers to the electronic exchange of products, services or information between businesses rather than between businesses and consumers. Examples include online directories and product and supply exchange websites that allow businesses to search for products, services and information and to initiate transactions through e-procurement interfaces.

2)      Business-to-consumer (B2C): 

B2C is the retail part of e-commerce on the internet. It is when businesses sell products, services or information directly to consumers. The term was popular during late 1990s, when online retailers and sellers of goods were very new.

Today, there are innumerable virtual stores and malls on the internet selling all types of consumer goods. The recognized example of these sites are marketonline.co.in leggingsmegamall.com

3)      Consumer-to-consumer (C2C): 

C2C is a type of e-commerce in which consumers are trading products, services and information with each other online. These transactions are generally conducted through a third party that provides an online platform on which the transactions are carried out.

Online auctions and classified advertisements are two examples of C2C platforms, eBay is the most known and the most popular of these platforms. Because eBay is a business, this form of e-commerce could also be called C2B2C means consumer-to-business-to-consumer.

4)      Consumer-to-business (C2B):

C2B is a type of e-commerce in which consumers make their products and services available online for companies to bid on and purchase. This is the opposite of the traditional commerce model of B2C.

A popular example of a C2B platform is a market that sells royalty-free photographs, images, media and design elements, such as iStock. Another example would be a job board.

5)      Business-to-administration (B2A):

B2A refers to transactions conducted online between companies and public administration or government bodies. Many branches of government are dependent on e-services or products in one way or another, especially when it comes to legal documents, registers, social security, fiscals and employment. Businesses can supply these electronically. B2A services have grown considerably in recent years as investments have been made in e-government capabilities.

E-commerce applications

E-commerce is conducted using a variety of applications, such as email, online catalogues and shopping carts, EDI, the File Transfer Protocol, web services, and mobile devices. This includes business-to-business activities and outreach, such as using email for unsolicited ads, usually viewed as spam, to consumers and other business prospects, as well as sending out e-newsletters to subscribers and SMS texts to mobile devices. More companies now try to entice consumers directly online, using tools such as digital coupons, social media marketing and targeted advertisements.

The rise of e-commerce has forced IT personnel to move beyond infrastructure design and maintenance to consider numerous customer-facing aspects, such as consumer data privacy and security. When developing IT systems and applications to accommodate e-commerce activities, data governance-related regulatory compliance mandates, personally identifiable information privacy rules and information protection protocols must be considered.

·        Mobile e-commerce (m-commerce)

M-commerce is a type of e-commerce on the rise that features online sales transactions made via mobile devices, such as smartphones and tablets. M-commerce includes mobile shopping, mobile banking and mobile payments. Mobile chatbots also provide e-commerce opportunities to businesses, allowing consumers to complete transactions with companies via voice or text conversations.

 

Benefits of e-commerce

 

The benefits of e-commerce are so many including its around-the-clock availability, the speed of access, the wide availability of goods and services for the consumer, easy accessibility and international reach.

Availability:

Aside from outages or scheduled maintenance, e-commerce sites are available 24x7, allowing visitors to browse and shop at any time. Bricks and mortar businesses tend to open for a fixed amount of hours and may even close entirely on certain days.

Speed of access:

While shoppers in a physical store can be slowed by crowds, e-commerce sites run quickly, which is determined by compute and bandwidth considerations on both consumer device and e-commerce site. Product pages , https://www.gadgetworldusa.com, https://www.thehealthypet.shop and shopping cart pages load in a few seconds or less. An e-commerce transaction can comprise a few clicks and take less than five minutes.

Wide availability:

E-commerce site and not a physical store that had to stock each product on its shelves. E-commerce enables brands to make a wide array of products available, which are then shipped from a warehouse after a purchase is made.

Easy accessibility:

Customers shopping a physical store may have a hard time determining which aisle a particular product is in. In e-commerce, visitors can browse product category pages and use the site search feature the find the product immediately.

International reach:

Bricks and mortar businesses sell to customers who physically visit their stores. With e-commerce, businesses can sell to any customer who can access the web. E-commerce has the potential to extend a business’ customer base globally.

Lower cost:

Pure play e-commerce businesses avoid the cost associated with physical stores, such as rent, inventory and cashiers, although they may incur shipping and warehouse costs.

 

 

Disadvantages of e-commerce

 

The perceived downside of e-commerce include sometimes limited customer service, consumers not being able to see or touch a product prior to purchase and the wait time for product shipping.

Limited customer service:

If a customer has a question or issue in a physical store, he or she can see a clerk, cashier or store manager for help. In an e-commerce store, customer service may be limited: the site may only provide support during certain hours of the day, or a call to a customer service phone number may keep the customer on hold.

Not being able to touch or see:

While images on a web page can provide a good sense about a product, it’s different from experiencing it “directly,” such as playing music on speakers, assessing the picture quality of a television or trying on a shirt or dress. E-commerce can lead consumers to receive products that differ from their expectations, which leads to returns. In some scenarios, the customer bears the burden for the cost of shipping the returned item to the retailer.

Wait time:

If a customer sees an item that he or she likes in a store, the customer pays for it and then goes home with it. With e-commerce, there is a wait time for the product to be shipped to the customer’s address. Although shipping windows are decreasing as next day delivery is now quite common, it’s not instantaneous.

Security:

Skilled hackers can create authentic-looking websites that claim to sell well-known products. Instead, the site sends customers forfeit or imitation versions of those products or, simply collects customers’ credit card information. Bonafide e-commerce sites also carry risk, especially when customers store their credit card information with the retailer to make future purchases easier. If the retailer’s site is hacked, hackers may come into the possession of customers’ credit card information.

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