E-commerce involves the buying and selling of goods and services over computer networks like the internet. There are several types of e-commerce including business to business (B2B), business to consumer (B2C), business to government (B2G), consumer to consumer (C2C), and mobile commerce (m-commerce). The internet enables e-commerce by allowing businesses to market and sell products online to customers worldwide. E-commerce benefits consumers by providing more choices at lower prices and enables companies to reach more customers.

1. E-Commerce
Electronic commerce, commonly known as E-commerce or ecommerce, is trading in
products or services using computer networks, such as the Internet. Electronic commerce
draws on technologies such as mobile commerce, transfer, supply, 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 for at least one part of the transaction's
life cycle, although it may also use other technologies such as e-mail.
Typesofe-commerce
The major different kinds of e-commerce are:
1) Business-to-Business (B2B)
2) Business-to-Consumer (B2C);
3) Business-to-Government (B2G);
4) Consumer-to-Consumer (C2C) and
5) Mobile Commerce (m-commerce).
B2Be-commerce
B2B e-commerce is simply defined as e-commerce between companies. This is the type
of e-commerce that deals with relationships between and among businesses. About 80%
of e-commerce is of this type, and most experts predict that B2B e-commerce will
continue to grow faster than the B2C segment. The B2B market has two primary
components: e-frastructure and e-markets. E-frastructure is the architecture of B2B.
B2Ce-commerce
Business-to-consumer e-commerce, or commerce between companies and consumers,
involves customers gathering information; purchasing physical goods (i.e., tangibles such

2. as books or consumer products) or information goods (or goods of electronic material or
digitized content, such as software, or e-books); and, for information goods, receiving
products over an electronic network.
B2Ge-commerce
Business-to-government e-commerce or B2G is generally defined as commerce between
companies and the public sector. It refers to the use of the Internet for public procurement,
licensing procedures, and other government-related operations. This kind of e-commerce
has two features: first, the public sector assumes a pilot/leading role in establishing e-
commerce; and second, it is assumed that the public sector has the greatest need for
making its procurement system more effective.15
Web-based purchasing policies increase the transparency of the procurement process
(and reduces the risk of irregularities). To date, however, the size of the B2G e-commerce
market as a component of total e-commerce is insignificant, as government e-
procurement systems remain undeveloped.
C2Ce-commerce
Consumer-to-consumer e-commerce or C2C is simply commerce between private
individuals or consumers. This type of e-commerce is characterized by the growth of
electronic marketplaces and online auctions, particularly in vertical industries where
firms/businesses can bid for what they want from among multiple suppliers.16 It perhaps
has the greatest potential for developing new markets.
M-commerce
M-commerce (mobile commerce) is the buying and selling of goods and services through
wireless technology-i.e., handheld devices such as cellular telephones and personal
digital assistants (PDAs). Japan is seen as a global leader in m-commerce.
As content delivery over wireless devices becomes faster, more secure, and scalable,
some believe that m-commerce will surpass wire line e-commerce as the method of
choice for digital commerce transactions. This may well be true for the Asia-Pacific
where there are more mobile phone users than there are Internet users.
Industries affected by m-commerce include:
 Financial services, including mobile banking (when customers use their handheld
devices to access their accounts and pay their bills), as well as brokerage services
(in which stock quotes can be displayed and trading conducted from the same
handheld device);

3.  Telecommunications, in which service changes, bill payment and account reviews
can all be conducted from the same handheld device;
 Service/retail, as consumers are given the ability to place and pay for orders on-
the-fly; and
 Information services, which include the delivery of entertainment, financial news,
sports figures and traffic updates to a single mobile device.
HowistheInternetrelevanttoe-commerce?
The Internet allows people from all over the world to get connected inexpensively and
reliably. As a technical infrastructure, it is a global collection of networks, connected to
share information using a common set of protocols. Also, as a vast network of people and
information, the Internet is an enabler for e-commerce as it allows businesses to showcase
and sell their products and services online and gives potential customers, prospects, and
business partners access to information about these businesses and their products and
services that would lead to purchase.
Before the Internet was utilized for commercial purposes, companies used private
networks-such as the EDI or Electronic Data Interchange-to transact business with each
other. That was the early form of e-commerce. However, installing and maintaining
private networks was very expensive. With the Internet, e-commerce spread rapidly
because of the lower costs involved and because the Internet is based on open standards.
Howise-commercehelpfultotheconsumer?
In C2B transactions, customers/consumers are given more influence over what and how
products are made and how services are delivered, thereby broadening consumer choices.
E-commerce allows for a faster and more open process, with customers having greater
control. E-commerce makes information on products and the market as a whole readily
available and accessible, and increases price transparency, which enable customers to
make more appropriate purchasing decisions.
Howarebusinessrelationshipstransformedthroughe-
commerce?

4. Transforms old economy relationships (vertical/linear relationships) to new economy
relationships characterized by end-to-end relationship management solutions (integrated
or extended relationships).
Howdoese-commercelinkcustomers,workers,suppliers,
distributorsandcompetitors?
E-commerce facilitates organization networks, wherein small firms depend on “partner”
firms for supplies and product distribution to address customer demands more effectively.
To manage the chain of networks linking customers, workers, suppliers, distributors, and
even competitors, an integrated or extended supply chain management solution is needed.
Supply chain management (SCM) is defined as the supervision of materials, information,
and finances as they move from supplier to manufacturer to wholesaler to retailer to
consumer. It involves the coordination and integration of these flows both within and
among companies. The goal of any effective supply chain management system is timely
provision of goods or services to the next link in the chain.
AdvantagesofEcommerce
1. Overcome Geographical Limitations
2. Gain New Customers with Search Engine Visibility
3. Lower Costs
4. Locate the Product Quicker
5. Eliminate Travel Time and Cost
6. Provide Comparison Shopping
7. Enable Deals, Bargains, Coupons, and Group Buying
8. Provide Abundant Information
9. Create Targeted Communication
10. Remain Open All the Time
11. Create Markets for Niche Products
DisadvantagesofEcommerce

5. 1. Pro: Stores Are Open All the Time
2. Con: Credit Card Fraud
3. Con: Security Issues
4. Pro: Ability to Buy and Sell to Other Consumers
5. Pro: Instantaneous Purchase of Digital Goods
6. Pro: Ability to Have Vendors Bid for Your Business
7. Con: Delay in Receiving Goods
8. Con: Inability to Identify Scams
9. Pro: Ability to Scale Up Rapidly