2. WHAT IS E-COMMERCE?
It is commonly known as Electronic Marketing.
“It consists of buying and selling goods and services over an electronic systems
such as internet and other computer networks”.
E-Commerce is purchasing, selling or exchanging goods and services over
computer networks (internet) through which transactions or terms of sale are
produced Electronically.
3. HISTORY
1970s
E- commerce meant the facilitation of commercial transactions electronically, using technology
such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT), allowing
businesses to send commercial documents like purchase orders or invoices electronically.
1980s
The growth and acceptance of credit cards
Automated teller machines (ATM)
Telephone banking
Airline reservation systems
4. HISTORY
1990s
The Internet commercialized and users flocked to participate in the form of dot-coms, or
Internet start-ups
Innovative applications ranging from online direct sales to e-learning experiences
2000s
Many European and American business companies offered their services through the
World Wide Web.
Since then, People began to associate a word “e- commerce” all over the world.
5. PROCESS OF E-COMMERCE
• A consumer uses web browser to connect to the home page of merchant’s
website on the internet.
• The consumer browses the catalogs of the products available on the site and
selects items to purchase. The selected items are placed in the electronic
equivalent of a shopping cart.
• When the consumer is ready to complete the purchase of selected items, he
provides a bill- to and ship- to address for purchase and delivery.
• When the merchant’s web page receives this information, it computes the total
cost of the order- including tax, shipping and handling charges and then displays
the total to the customer.
6. PROCESS OF E-COMMERCE
• The customer can now provide payment information, such as a credit card
number, and then submit the order.
• When the credit card number is validated and the order is completed at the
commerce server site, the merchant’s site displays a receipt confirming the
customer’s purchase.
• The Commerce Server site then forward the order to a Processing Network for
payment processing and fulfillment.
8. BUSINESS-TO-BUSINESS
B2B identifies both the seller as well as the buyer as business entities. B2B covers a
large number of applications, which enables business to form relationships with
their distributors, re-sellers, suppliers, etc. Following are the leading items in B2B
eCommerce.
• Electronics
• Shipping and Warehousing
• Paper
• Office products
• Food
• Agriculture
9. BUSINESS-TO-CONSUMER
In B2C model, a business website is a place where all the transactions take place
directly between a business organization and a consumer. In the B2C model, a
consumer goes to the website, selects a catalog, orders the catalog, and an email is
sent to the business organization. After receiving the order, goods are dispatched
to the customer. Following are the key features of the B2C model −
Heavy advertising required to attract customers.
High investments in terms of hardware/software.
Support or good customer care service.
11. CUSTOMER-TO-CUSTOMER
• Customer to customer (C2C) is a business model that enables customers to
trade with each other, frequently in an online environment. Online C2C
company site like eBay which sell products or services through a classified or
auction system.
• C2C businesses are a type of business model that emerged with e-commerce
technology and the sharing economy.
• Some C2C companies have problems, such as a lack of quality control and
payment guarantees.
12. CUSTOMER-TO-BUSINESS
Consumer-to-business (C2B) is a business model in which consumers
(individuals) create value and businesses consume that value. Another form
of C2B is the electronic commerce business model in which consumers can
offer products and services to companies, and the companies pay the
consumers.
The advent of the C2B scheme is due to:
The internet connecting large groups of people to a bidirectional
network; the large traditional media outlets are one-directional
relationships whereas the internet is bidirectional.
Decreasing costs of technology; individuals now have access to
technologies that were once only available to large companies (digital
printing and acquisition technology, high-performance computers, and
powerful software).
13. ADVANTAGES OF E-COMMERCE
Easy access 24 hours a day.
You can shop anywhere in the world.
Reduced prices.
Low operational costs and better quality of
services.
No need of physical company set-up.
Easy to start and manage a bussiness.
Faster buying/selling procedure, as well as
easy to find products.
14. DISADVANTAGES OF E-COMMERCE
Not everyone is connected to the internet.
Unable to examine products personally.
There is a possibility of credit-card number theft.
Mechanical failures can cause unpredictable effects on the total processes.
On average only 1/9th of stock is available on the internet.
15. SUMMARY AND CONCLUSION
The Internet has lead to the birth and evolution E- commerce.
E-commerce has now become a key component of many organizations in the
daily running of their business.
As the Internet and in turn E-commerce has developed, and continues to evolve
and grow, it is vital that any organization, in any particular industry, must base its
strategic planning around such a rapidly growing medium.
