Understanding The Background Of What Is E-commerce Industry

What is E-commerce

E-commerce or Electronics Commerce is a mode of modern business which addresses the requirements of business organizations. It can be largely defined as the process of buying or selling of goods or services using an electronic medium such as the Internet.

OVERVIEW

E-Commerce or Electronics Commerce is a mode of modern business, which addresses the need of business organizations, supplier and customers to reduce cost and improve the quality of goods and services while increasing the speed of delivery. E-commerce refers to the paperless transaction of business. people wants to know that what is e-commerce. they want to know understanding about what does ecommerce do how to gain business from ecommecre.

information using the following ways:

• Electronic Data Exchange (EDI)
• Electronic Mail (e-mail)
• Electronic Bulletin Boards
• Electronic Fund Transfer (EFT)
• Other Network-based technologies

Features

• E-Commerce provides the following features
• Cash payment not required: E-Commerce gives the facility to use of credit cards, debit cards, smart cards, electronic fund transfer via bank’s website, and other modes of payment.
• Service accessible for 24*7: E-commerce automates the business of enterprises and therefor the means they supply services to their customers. It is accessible anytime, anywhere.
• Promotions/Marketing: E-commerce increases the reach of advertising of products and services of businesses. It helps in good marketing management of products/services.
• Improvement In existing Sales: Using e-commerce, orders for the products can be generated anytime, anywhere without any human interference. It gives a big boost to current sales volumes.
• 24*7 Support: E-commerce provides various ways to provide pre-sales and post-sales assistance to provide better services to customers.
• Inventory/stock Management: E-commerce automates stock management. Reports get generated instantly when required. Product stock management becomes very efficient and easy to maintain.
• improvement in communication: E-commerce provides ways for faster, efficient, reliable communication with customers and partners.

ADVANTAGES

• The advantages of e-commerce can be commonly classified into three major categories:
• Advantages to Organizations
• Advantages to Consumers
• Advantages to Society

Advantages to Organizations

• E-commerce can expand organization’s market to national and international market with minimum capital investment. An organization can simply locate more customers, best suppliers, and suitable business partners across the world.
• E-commerce helps organizations to cut back the price to make method, distribute, retrieve and manage the paper primarily based data by digitizing the data.
• E-commerce increase the brand value of the company.
• E-commerce helps organizations to provide good customer service.
• E-commerce helps to smooth the business processes and makes them easer and efficient.
• E-commerce reduces the paper work.
• E-commerce will increase the productivity of organizations. It supports “pull” type supply management. In “pull” type supply management, a business method starts once letter of invitation comes from a customer and it uses just-in time manufacturing way.

Advantages to Customers

E-commerce provides 24×7 support. Customers can inquire to know about a product detail or service and place orders anytime, anywhere from any location.

• E-commerce application provides users with more options and quicker delivery of products.
• E-commerce application provides users with various options to compare and select the cheaper and better options.
• A customer can give their review comments about a product and can also see what others are buying, or see the review comments of other customers before placing a final purchase.
• E-commerce provides options of virtual auctions.
• It provides readily available information. A customer can see the relevant detailed information within seconds, rather than waiting for days or weeks.
• E-Commerce increases the competition among organizations and as a result, organizations provides substantial discounts to customers. Advantages to Society
• Customers need not travel to shop a product, thus less traffic on road and low air pollution.
• E-commerce helps in reducing the cost of products, so less affluent people can also afford the products.
• E-commerce has enabled rural areas to access services and products, which are otherwise not available to them.
• E-commerce helps the government to deliver public services such as healthcare, education, social services at a reduced cost and in an improved manner.

DISADVANTAGES

• The disadvantages of e-commerce can be classified into two major categories:
• Technical disadvantages
• Non-technical disadvantages

E-commerce business models

• E-commerce business models can be categorized into the following categories.
• Business – to – Business (B2B)
• Business – to – Consumer (B2C)
• Consumer – to – Consumer (C2C)
• Consumer – to – Business (C2B)
• Business – to – Government (B2G)
• Government – to – Business (G2B)
• Government – to – Citizen (G2C)

PAYMENT SYSTEMS

• E-commerce sites use electronic payment, where electronic payment refers to paperless money transactions. Electronic payment has revolutionized the business processing by reducing the paperwork, transaction costs, and labor cost. Being user friendly and less time-consuming than manual processing, it helps business organization to expand its market reach/expansion. Listed below are some of the modes of electronic payments:
• Credit Card
• Debit Card
• Smart Card
• E-Money
• Electronic Fund Transfer (EFT)

SECURITY SYSTEMS

• Security is an important part of any transaction that takes place over the internet. Customers will definitely lose his/her trust in e-business if its security is compromised. Following are the important requirements for safe epayments/transactions:
• Confidentiality – Information should not be accessible to an unauthorized person. It should not be intercepted during the transmission.
• Integrity – Information should not be altered during its transmission over the network.
• Availability – Information should be available wherever and whenever required within a time limit specified.
• Authenticity – There should be a mechanism to authenticate a user before giving him/her an access to the required information.
• Non-Repudiability – It is the protection against the denial of order or denial of payment. Once a sender sends a message, the sender should not be able to deny sending the message. Similarly, the recipient of message should not be able to deny the receipt.
• Encryption – Information should be encrypted and decrypted only by an authorized user.
• Auditability – Data should be recorded in such a way that it can be audited for integrity requirements.