Ecommerce Definition: Electronic commerce, commonly known as e-commerce, 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, mobile devices and telephones as well.
OBJECTIVE OF ECOMMERCE: Ecommerce allows people to carry out businesses without the barriers of time or distance. One can log on to the Internet at any point of time, be it day or night and purchase or sell anything one desires at a single click of the mouse.
The direct cost-of-sale for an order taken from a web site is lower than through traditional means (retail, paper based), as there is no human interaction during the on-line electronic purchase order process. Also, electronic selling virtually eliminates processing errors, as well as being faster and more convenient for the visitor. Ecommerce is ideal for niche products. Customers for such products are usually few. But in the vast market place i.e. the Internet, even niche products could generate viable volumes.
Scope of Electronic Commerce: An e-commerce website has a good scope in the present society. Now a large percentage of the people in the world depend on internet to satisfy their basic requirements. This has increased the demand of online marketing industry.Online marketing principles are to be followed while we perform it. The first step for this is to design a reliable e-commerce website. This is the window to the internet market. This business medium will give a global exposure to the business. We should always keep in mind that to compete with the international markets there will be a tight competition.Now the sales of the products will not determine the success of your internet marketing but the number of visitors. But the ultimate aim of this is to increase the sales of products. But we need to get better exposure in the search engine to get customers from all over the world. A product display in it can increase the profits. The profit of business will be acquiring with successful online business more than imagination. But one have to really work for the success of their marketing works in the internet.The market trends and demands should be given more importance in online marketing.
Limitation of Electronic Commerce: Credit Card security is a serious issue. People who are carrying out a transaction over the Internet are worried about the credit card security.
The companies or the businesses who are selling the products are not able to communicate with the customer face to face. Due to this they are not able to get the feedback about the products so that they may improvise on the products. The next one is a technological limitation that the cost involved with bandwidth and server is too high.