Introduction to E-Commerce
Transacting or facilitating business on the Internet is
called E-Commerce. E-Commerce is short for
"electronic commerce."The process of buying and
selling goods and services over the internet .A type of
business model, or segment of a larger business model,
that enables a firm or individual to conduct business
over an electronic network, typically the internet that
doesn’t require any bargaining.
When it comes to E-Commerce, most of the
information you’ll be able to find online is
marketing related because marketing is the
easy part. That’s why almost everybody
assumes that all it takes to build an E-
Commerce operation is good marketing, a
technological sound shopping catalogue
solution and a lot of luck.
2) Warehouse operations.
3) Shipping and returns.
4) E-commerce catalogue
and product display.
Components of E-Commerce Business
Different types of e-commerce
Mobile commerce (M-commerce)
Facebook commerce (F-commerce)
We use the term e-business to refer primarily to the
digital enablement of transactions and processes
within a firm, involving information systems under
the control of the firm.
E-Commerce include commercial transactions
involving an exchange of value across organizational
E- Commerce v/s E-business:
E-Commerce is Like Any Other Business:
Developing a business over the Internet requires many of the same
major activities as starting any other business.
Not All Products Are Very Compatible to Sales Over the Internet:
But there are some features unique to E-Commerce. Not all products
are real compatible to be sold over the Internet.
You Need an Online "Store":
Basically, you need an "online store" to be an "e-tailor".
Basics of E-Commerce
You need to design and promote a Website.
You'll need access to expertise that can
regularly design and maintain this Website for
you -- and it will require ongoing attention.
Fortunately, there is a great deal of free
information available to help you with this
design and promotion.
Obviously, You Need a Website
Traditional Commerce E-Commerce
Cost is greater due to taxes,
advertisement and employees.
Average cost is much lower
than traditional type.
Product market is limited
because of geo-graphical
Product market is across the
world because of non-physical
It requires product
advertisement on various
Developers of the websites
also makes adds on domains.
It requires more time to go
outside, to choose, compare
and evaluate product.
It takes less time to choose
and make comparison between
Less accessible due to time or
Products can be accessed at
any time and from almost
People trust it more
because of physical
Due to lake of
awareness this is less
popular among people.
centers support their
No physical support
customers takes a lot of
Feedback is immediate
by certain website
Fewer customers can be
interacting with at a
time because of less
Websites are especially
designed for multi-
1. Differentiate your
2. Get your technology right.
3. Don’t make customers
run around in circles.
4. Secure your supply chain.
5. Be cost effective.
Tips for Running a
7 Reasons to start an E-Commerce business
1) To get more independence.
2) Because you are passionate.
3) To make extra income, or Become financially secure.
4) You want to.
5) Get tax benefits.
6) Pick who you work with.
7) Never get laid off.
Security threats arise either because of somebody's malicious actions, or
because of incorrect technical setup. As a result, there cannot be an exhaustive
listing of all E-Commerce security issues. But here are the most common:
Unauthorized Data Access.
Denial of Service.
Security Threats to E-Commerce Websites
1-Lack of sufficient system's security, reliability,
standards, and communication protocols.
2-Insufficient telecommunication bandwidth.
3-The software development tools are still evolving
and changing rapidly.
4-Difficulties in integrating the Internet and
electronic commerce software with some existing
applications and databases.
Limitations of E-Commerce
5-The need for special Web servers and other
infrastructures, in addition to the network servers
6-Possible problems of interoperability, meaning
that some E-Commerce software does not fit with
some hardware, or is incompatible with some
operating systems or other components.
ADVANTAGES OF E-COMMERCE
Faster buying/selling procedure, as well as easy to find products.
More reach to customers, there is no theoretical geographic
Low operational costs and better quality of services.
No need of physical company set-ups.
Easy to start and manage a business.
Customers can easily select products from different providers
without moving around physically.
1. Unable to examine products personally.
2. Everyone is connected to the Internet.
3. There is the possibility of credit card number theft.
4. Mechanical failures can cause unpredictable effects
on the total processes.
In general, today’s businesses must always strive to create the
next best thing that consumers will want because consumers
continue to desire their products, services etc. to continuously be
better, faster and cheaper.
Hence, there are several factors and variables that need to be
considered and decided upon when starting an E-Commerce
business. Some of these include: types of E-Commerce, marketing
strategies and countless more. If the correct methods and
practices are followed, a business will prosper in an E-Commerce
is set with much success and profitability.