E-commerce is defined as the use of electronic communication and digital information processing in business transactions. It involves the creation, movement, and interaction of information sources between producers, consumers, and sellers over global networks. The PEST factors that affect online commerce are political, economic, social, and technological. Political factors include government support for technology and regulations. Economic factors include economic growth, income levels, and infrastructure costs. Social factors involve literacy rates, internet users, and adoption of technologies. Technological factors are the status of telecom infrastructure, access to new technologies, and bandwidth availability.

1. PEST FACTORS AFFECTING
ONLINE COMMERCE
N.MAHALAKSHMI
2nd MBA
(RA1852001020079)

2. WHAT IS ONLINE COMMERCE
• E-Commerce is the use of electronic communication and digital
information processing technology in business transactions to create
transform and redefine relationships.
• E-Commerce is concerned with system and business processes that
support-
1. Creation of information sources
2. Movement of information over global networks
3. Effective and efficient interaction among producers ,consumers
,intermediaries and seller

3. PEST FACTORS AFFECTING E-COMMERCE
• PEST-Political , Economic , Social and Technological
POLITICAL FACTORS:
• Number and type of government initiatives to support use and
development of modern technology
• Discouraging rules and regulations of the government
• Ability of the government to adapt and plan for technological growth
and development

4. ECONOMIC FACTORS:
• Economic growth of the country
• Average income of the people
• Cost of hardware and software
• Cost of access to telecom infrastructure
SOCIAL FACTORS:
• Literacy level of the people and penetration rate .
• Number of internet users
• Willingness and ability of the people to adopt new technologies

5. TECHNOLOGICAL FACTORS:
• State of telecommunication infrastructure.
• Access to new technological developments
• Bandwidth availablility and internet rates

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