Electronic commerce involves performing commercial operations electronically through the use of information technology. This includes contact between buyers and sellers as well as the entire buying and selling process. E-commerce encompasses diverse online activities such as electronic fund transfers, online share trading, and commercial auctions. There are different models of e-commerce including business-to-business, business-to-consumer, business-to-government, and consumer-to-administration. E-commerce allows for speedy electronic transactions and information exchange between businesses and organizations.

1. ELECTRONIC COMMERCE
•This involves performing commercial operations electronically.
•In a usual commercial operation ,buyers and sellers come in contact
with each other either physically or through other means of
communication and rest of the buying/selling procedure is performed in
physical sense.
•However in e-commerce the entire process, including the contact
between buyers and sellers, is completed through the use of IT .

2. • E-Commerce refers to all the forms of transactions related to
commercial activities, including both organizations and individuals,
that are based upon the processing and transmission of digitized
data, including text, sound, and visual images.
• E-Commerce is about doing business electronically. It is based on
the electronic processing and transmission of data , including text,
sound and video. It encompasses diverse activities including
electronic fund transfers, electronic share trading, commercial
auctions etc.

3. E-Commerce applications
1. Business to business(B2B)
2. Business to consumer(B2C)
3. Business to government(B2G)
4. Consumer to administration(C2A)

4. Business to Business(B2B)
• It involves electronic transactions for business activity between two
or more business organization
• This type of e-commerce model is becoming increasingly important
as most business organizations are reengineering their business
processes in which other organizations may play a vital role.
• B2B enables business partners to exchange information among
themselves in an automated way without the human intervention

5. Business to consumer(B2C)
• Involves bringing business and consumers closer to each other and creating
a unique market place where products and services can be bought and sold.
• It is conducted by providing well-designed websites which offer information
about products/services to be sold, display these with description, price in
the same manner as conventional shops do.
• It not only provide source of trade but also acts as supporting activities that
that help to generate revenue to companies.
• Examples are shopping sites, home banking, entertainment services- video
on demand, movies, games etc

6. Business to government(B2G)
• Involves dealing with government agencies like customs, excise
duties etc, electronically
• Usually a lot of paper work is involved resulting into delay in paper
processing which hampers efficiency of business organizations.
• Instead of this lengthy and time consuming paper work , B2G e-commerce
application connects various government agencies and
business organizations electronically which helps in speedy
processing of business documents thereby enhancing productivity
of business organizations.

7. Consumer to administration(C2A)
• It involves providing relevant information to people by government
administrative agencies.
• Instead of visiting government offices for getting relevant
information, people can get this information through C2A websites.

8. E- product/service Trading
• E-commerce adopts the same process of trading as is involved in a
conventional trading but it adopts electronic media and therefore
various activities involved are performed differently.
ORDER ORDER ORDER
Producer wholesaler Retailer consumer
• PAYMENT PAYMENT PAYMENT

9. E-commerce cycle
Seller Seller
information
website Customer Shipment Payment
order

10. BENEFITS OF E-COMMERCE
• Wide market area
• Ease of operation
• Lower transaction costs
• Lower inventory requirement
• Shopping from home/workplace
• Increase seller-customer interaction

11. PROBLEMS OF E-COMMERCE
• Technological problems
• Lack of verification of product quality
• Legal problems

12. ELECTRONIC SHARE TRADING
Benefits
• Wide area coverage
• Speedy transactions and settlement
• Reduced transaction costs
• Transparent transactions
• Lower paper work
• Elimination of bad deliveries
Problems:
• Smaller towns and in some big towns too, do not have the facility of fund transfer

13. E-BANKING
• It involves providing banking services to customers electronically
and are classified into two categories
• On-line banking transactions
• Electronic funds transfer

14. E-GOVERNANCE
• It involves enhancing relationships between government to
government, government to citizens, citizens to government,
government to private sector, and non- government organizations to
government through the use of information, communication
technology.
• E-governance is not merely providing information about various
activities of government to its citizens and other organizations but it
also involves citizens to communicate with v and participate in v
decision-making process.

15. Electronic data interchange
• It is inter-company computer-computer communication of data in a
machine readable ,structured format.
• It is an information system that links a company with which it has
some kind of transaction relationships, such as customers,
suppliers, banks, etc
Benefits
• Reduced cost of operations
• Increased speed of information exchange and processing
• Shrinking of time period required to complete a business cycle
• Improve trading partner relationships
• Improved intra-company information flow