Electronic commerce, or e-commerce, is the
buying, selling, marketing, servicing, delivery,
and payment of goods and services over
computer networks such as the Internet.
E-commerce is made possible through the use
of Hypertext Markup Language (HTML),
Hypertext Transfer Protocol (HTTP), and
server applications that enable the purchase to
E-commerce improves market efficiency through:
First, it can eliminate the middleman, or the suppliers
and distributors. It enables consumers to purchase
products directly from the manufacturer, thus
eliminating added costs.
Second, it provides an easy and effective way to
acquire pricing information. Consumers can easily
search and compare prices on the Web.
Third, e-commerce provides sellers with price
elasticity information. This means that sellers can
gauge the demand for a product based on
fluctuations in price.
Four Basic Categories Of E-Commerce
1. Business-to-Consumer (B2C)
2. Business-to-Business (B2B)
3. Consumer-to-Consumer (C2C)
B2C is the sale of merchandise or services
between the supplier and the customer.
An electronic storefront is used for customers
to select, order, and pay for products over the
B2B refers to selling merchandise between
businesses. Raw material suppliers sell to
manufacturers. Manufacturers sell to distributors.
Distributors sell to retailers.
C2C refers to one individual selling a product or service
to another individual. This often occurs through online
auctions or clearing houses. Auctions match buyers and
sellers that engage in a competitive bidding processes
over the Internet.
Electronic government, or e-government, is the
use of the Internet and e-commerce to deliver
information and public services to citizens,
businesses, and suppliers. E-government is an
efficient and effective way to conduct transactions
with citizens and businesses.
Mobile commerce, or m-commerce, refers to e-commerce
conducted in a wireless environment over
the Internet. Buying, selling, marketing, servicing,
delivery and payment of goods and services, are all
completed over mobile technologies such as smart
phones, tablets, or other wireless devices.
There are a number of factors driving m-commerce.
These factors includes:
The widespread availability and popularity of wireless
devices like smart phones,
The declining cost of wireless technology, the convenience of
instant connectivity from any location,
Bandwidth improvements that increase the speed of data