6. Easy to start and manage a business.7. Customers can easily select products from different providers without moving around physically.
CONTENTS--1. What is E-COMMERCE ?2. Objective of E-COMMERCE.3. Advantages & Disadvantagesof E-C.4. Forces Driving E-C.5. Traditional vs E-C.6. E-C opportunities forindustries.7. E-C Model
What is E-Commerce-Electronic commerce, commonlyknown as e-commerce, is a type ofindustry where buying and sellingof product or service overelectronic systems such as theInternet and other computernetworks. Electronic commercedraws on such technologiesas mobilecommerce, electronic fundstransfer, supply chainmanagement, Internetmarketing
Objectives of E-Commerce-- Company must first choose between paying a service provider to host thesite and selfhosting External hosting options Shared hosting, dedicatedhosting, and co-locationŠKey elements of electronic commerce softwareCatalogs, shopping carts, and transaction processing capabilitie Commerce service provider (CSP) Used by small enterprises just startingan electronic commerce initiative ŠIf a company already has computing equipment andstaff in placepurchasing a midrange electronic commerce software package providesmore control over a site ŠLarge enterprises with high transaction rates need toinvest in larger, more customizable systems
Disadvantages of E-Commerce--1. Any one, good or bad, can easily start a business.And there are many bad sites which eat upcustomers’ money.2. There is no guarantee of product quality.3. Mechanical failures can cause unpredictableeffects on the total processes.4. As there is minimum chance of direct customerto company interactions, customer loyalty isalways on a check.5. There are many hackers who look foropportunities, and thus an ecommerce site, service,payment gateways, all are always prone to attack.
Traditional Commerce-In addition to buying or selling, firms engage inmany other activities that keep them inbusiness. For example, the seller of a productmust identify demand, promote its products topotential buyers, accept orders, deliver itsproduct, bill and accept payment for its product,and support its customers use of its productafter the sale. In many cases, sellers willcustomize or create a product to a customersspecification. These include the buyer andseller.
E-Commerce--Firms have used various electronic communicationstools to conduct different kinds of businesstransactions. Banks have use used EFTs to movecustomers money around the world, all kinds ofbusinesses use EDI to place orders and sendinvoices, and retailers have used televisionadvertising to generate telephone orders from thegeneral public for various types of merchandise formany decades.
E-C Opportunities for industry--•Global Reach: The net being inherently global, reachingglobal customers is relatively easy on the net compared to theworld of bricks.•Cost of acquiring, serving and retaining customers. It isrelatively cheaper to acquire new customers over the net;thanks to 24 x 7 operations and its global reach.•Disintermediation: Using the internet, one can directlyapproach the customers and suppliers, cutting down on thenumber of levels an in the process, cutting down the costs.•A technology-based customer interface: In a brick-and-mortarbusiness, customers conduct transactions either face-to-faceor over the phone with store clerks, account managers.
E-Commerce Model--e-commerce model, which is a schema forbusiness, processesthat shows, in general terms, where thegoods and money flow.
Types Of E-Commerce model--Business to Business Ecommerce (B2B Ecommerce)In this type of ecommerce, both participants are businesses. As a result,the volume and value of B2B ecommerce can be huge. An example ofbusiness to business ecommerce could be a manufacturer of gadgetssourcing components online.Business to Consumer Ecommerce (B2C Ecommerce):When we hear the term ecommerce, most people think of B2Cecommerce. That is why a name like Amazon.com pops up in mostdiscussions about ecommerce. Elimination of the need for physicalstores is the biggest rationale for business to consumer ecommerce. Butthe complexity and cost of logistics can be a barrier to B2C ecommercegrowth.
Types Of E-Commerce model--Consumer to Business Ecommerce (C2B Ecommerce)On the face of it, C2B ecommerce seems lop-sided. But online commercehas empowered consumers to originate requirements that businessesfulfill. An example of this could be a job board where a consumer placesher requirements and multiple companies bid for winning the project.Another example would be a consumer posting his requirements of aholiday package, and various tour operators making offers.Consumer to Consumer Ecommerce (C2C Ecommerce)The moment you think of C2C ecommerce eBay.com comes to mind. Thatis because it is the most popular platform that enables consumers to sell toother consumers. Since eBay.com is a business, this form of ecommercecould also be called C2B2C ecommerce (consumer to business toconsumer ecommerce).