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What is Electronic Commerce?
E-commerce is the purchasing and selling of products and services over electronic networks such as the Internet, most frequently via marketplaces or online shopping. It is also a business model used to empower consumers with greater control in the products and services they purchase. A variety of electronic commerce techniques have emerged to meet this need.
The first electronic commerce system was introduced in 1971 by Arthur D. Little, Inc., using their ARPANet computer network to process orders between Virginia-based computer labs and a large data center in Boston. The first commercial transaction occurred on September 2, 1971, when Arthur D.
commerce transactions occur through a variety of mediums including computer screens, mobile devices and other electronic media. The two most common aspects of e-commerce transactions are payment processing and delivery.
Types Of e-Commerce
- B2B (Business to Business) Electronic commerce is often called “electronic business” or “e-business. To use electronic media for the buying and selling of goods, services or information between business.
- B2C (Business to Consumer) Electronic commerce can be used by consumers to buy goods and/or services from businesses as well as by businesses to sell goods and/or services directly to consumers.
- C2B (Consumer to Business)
Online shopping is when a company sells goods or services via the Internet, either directly from the seller to the buyer or through a third-party online retailer. Online shopping services may be classified as either comparison-shopping sites (also known as portals) or intermediaries, which present and sell products offered by multiple sellers.
- C2C (Consumer to Consumer) Online auction is the sale of goods and services by auction on the Internet. This includes auctions of traditional goods such as antiques and auctions of digital goods and services including software, music, videos, bitcoins etc.
Importance Of e-Commerce
- Increased shopping options – through the Internet one can buy from people in other countries, including those who live where you cannot find goods or services at all or at a reasonable price.
- Better customer service and better choice of goods – Internet shoppers can use discussion groups to exchange information about goods and services they have bought so they know whether they are likely to be satisfied by a given purchase
- More information – The Internet allows consumers to educate themselves about products and services on their own before making a purchase. It also enables companies to market their products internationally.
- No Credit cards needed – Online shoppers can save time by not having to visit brick-and-mortar stores, and also save money, as Internet shopping is almost always cheaper than going elsewhere (ex. If a product you want is $140 in the store you live in, but on the internet it is only $120, you can buy it from there).
- It is possible to avoid high taxes by shopping for cheaper products or by shipping the purchases abroad, as in most countries there are no sales taxes on goods shipped from another country.
- Easier to shop for special items and/or products that are not readily available locally – For example, if someone is looking for a certain part to a machine, they can find it easily on the Internet and have it shipped by mail.
- Provides consumers with information about the product – The Internet provides shoppers with more information than they would be able to obtain from a personal visit to their local retail store or shopping center
- It provides companies with more information on their customer – Through the Internet, companies can get in touch with their customers and interact with them in a very personal way.
- It allows customer to communicate directly with retailers – Retailers can communicate directly with consumers by adding information about their products and services to the site, or by using their own sites to allow customers to register, log-on and access their account information
- It lets companies maintain the highest level of control over their confidential information – Through Internet shopping, companies can maintain strong controls over their customer information.
- It allows retailers to be more competitive – Internet retailers are often able to provide a better selection of products and competitive prices, than retailers in local stores that may be in an area where there is little competition for that product or service
Topics Studied Under e-Commerce As a subject
- Payment methods and security
- Privacy and legal issues
- Consumer protection
- Electronic signatures
- Virtual communities/online social networks
- Digital divide
- Cyber law
- Intellectual Property
- E-Commerce law
- E-Commerce governance
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