Introduction to E-Commerce
- Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.
- An E-commerce website also allows customers to post their comments regarding products and services.
- Thus, the owner of the website gets a feedback. He can use this feedback to improve the services and make them better.
- Thus, ecommerce development is highly important in today’s competitive environment.
- In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development.
Meaning of E-Commerce
- E-Commerce is the environment in which the business activities such as buying selling, packing, transportation, banking, insurance and warehousing are carried on electronically. In E-Commerce, telecommunication facility is used, data processing is done quickly and there is increase in quality and standards.
- E-Commerce is the commercial activity carried out with the use of electronic media especially using computers, network and various digital devices. E-Commerce increases productivity, reduces cost, regulates business process, provides better consumer service and creates better and new opportunities for merging entrepreneurs.
- E-commerce is buying and selling goods and services over the Internet. E-commerce is part of e-business. E-business is a structure that includes not only those transactions that center on buying and selling goods and services to generate revenue, but also those transactions that support revenue generation. These activities include generating demand for goods and services, offering sales support and customer service, or facilitating communications between business partners.
- By the help of the flexibility offered by computer networks and the availability of the Internet, E-commerce develops on traditional commerce. E-commerce creates new opportunities for performing profitable activities online. It promotes easier cooperation between different groups: businesses sharing information to improve customer relations companies working together to design and build new products/services; or multinational company sharing information for a major marketing campaign.
- The followings are the business uses of the Internet. These services and capabilities are a core part of a successful e-commerce program.
They are either parts of a value chain or are included as supporting activities:
- Buying and selling products and services
- Providing customer service
- Communicating within organizations
- Collaborating with others
- Gathering information (on competitors, and so forth)
- Providing seller support
- Publishing and distributing information
- Providing software update and patches
Airline and travel tickets, banking services, books, clothing, computer hardware, software, and other electronics, flowers and gifts are some popular products and services that can be purchased online. Several successful e-businesses have established their business models around selling these products and services. E-commerce has the potential to generate revenue and reduce costs for businesses and entities. Marketing, retailers, banks, insurance, government, training, online publishing, travel industries are some of the main recipients of e-commerce. For instance, banks use the Web for diverse business practices and customer service.
Features of E-Commerce
The following are included in the E-commerce activities:
- Advertising and promotion of products.
- Tracking of orders and shipments.
- Pre-sale and post-sale services.
- Internet e-mail and messaging.
- Facilitating contact between traders.
- Inventory, distribution and warehousing management.
- Supply chain management.
- Logistic management and personnel management.
- Financial management and personnel management.
- On-line publication.
- Forms and designs, documents.