introduction to e commerce

viii. Latest update on Friday 22 June 2018 à 03:40 by Olivia Long. E-commerce will give businesses more flexibility in managing the increasingly complex movement of products and information between businesses, their suppliers and customers. It has not gained reasonable acceptance until eighties. Customization – E-commerce provides for customization of products and services, in contrast to buying in a store or ordering from a television, which is usually limited to standard products. Identity thefts Hackers often gain access to sensitive information like user accounts, user details, addresses, confidential personal information etc. The Internet is a global web of computer networks that has made instantaneous and decentralised global communication possible. Practical case studies offer a useful reference for dealing with various issues in E-commerce such as latest applications, management techniques, or psychological methods. 4. 3. Traditional companies such as Intel, Disney, Dell, and Cisco use their web activities to affirm their corporate identity and brand image. E-Commerce takes place between companies, between companies and their customers, or between companies and public administrations. The history of E-commerce begins with the invention of the telephone at the end of last century. Share Your Word File Shipping Documentation and Labelling: There will be less need for manual intervention because standard bills of lading, shipping labels, and carrier manifests will be automatically produced; this includes even the specialized export documentation required for overseas shipments. There have been cases when vital information like credit card numbers are stolen by hackers. E-commerce functions are taking companies a substantial step forward by providing customers with a faster and easier way to do business with them. The term Electronic commerce (or e-Commerce) refers to the use of an electronic medium to carry out commercial transactions. Computer viruses are rampant, with new viruses discovered every day. EDI is an automated format of exchanging information between businesses over private networks. Our content is written in collaboration with, This document, titled « Introduction to e-Commerce (Electronic Commerce) », is available under the. Segments 12. It reduces the cost of marketing campaign. It refers to that part of e-commerce that entails the sale of product merchandise and does not include sale of services, namely railway tickets, airlines tickets and job portals. For this purpose the business partners have to couple their business processes and their ICT systems. (ii) Information – Customers can find reams of comparative information about companies, products, competitors and prices without leaving their office or home. Broadly, promotional activities can be classified into two categories: Online promotion is concerned with submitting your site to search engine. The application uses encryption technology to secure business transactions. If the company expects 2 million customers and 6 million show up, website performance is bound to experience degradation, slowdown, and eventually loss of customers. … By definition it covers a variety of business activities which use internet as a platform for either information exchange or monetary transaction or both at times. (b) Pop Up Advertising – It pops up a new screen upon clicking on a certain link on the web site, that it advertises the product. Internet ‘search engines’ such as “Yahoo” and “Google” give consumers access to varied information sources, making them better informed and more discerning shoppers. 1. 1. On one hand by using E- commerce firms can communicate with customers through E-commerce enabled websites. 2 They can initiate requests for advertising and information from manufacturers. A business develops an interactive interface with customers via a website. For example, the computer software is directly downloaded by the software manufacturer on computer of the customer. Company management has to make cost benefit analysis of implementing e-commerce venture. New technologies require new organizational approaches. 3. He/she can then have the order delivered to an address other than the one listed on the records. After the sale, customers might have queries related to the usage, repair or enhancement of the products or services that they have already purchased. Read more. 4. Hence, it is also one of the primary objectives of the companies which supply impetus for the robust growth in sales and overall profit. 6. 4. Hence, e-tailing is a subset of e-commerce, which encapsulates all “commerce” conducted via the Internet. E-Commerce – Advantages: Convenience, Information, Fewer Hassels, Lower Cost, Relatively Building, Audience Sizing, On-Line Marketing and a Few Others. E-commerce means using the Internet and the web for business transactions and/or commercial transactions, which typically involve the exchange of value (e.g., money) across organizational or individual boundaries in return for products and services. These include demand risk, innovation risk, and inefficiency risk. The results are often easily measurable and quickly obtained. 3. In fact, small businesses can now build their own sites. After a while, statistical analysis determines whether visitors to the site are one-time or recurring customers. 1.2. Wider Audience- The internet provides businesses, access to millions and millions of people. Sometimes e-advertising will provide hyperlinks to the company’s web site. iii. It has some unique ways to put a business transaction in place. Report abuse. E-business applications turn into e-commerce precisely, when an exchange of value occurs. E-Advertising is the mechanism of promoting products or services on-line. This information can help them improve offers and advertisements. E-business is the transformation of key business processes through the use of Internet technologies. Also, Payment gateways are vulnerable to interception by unethical users. The systems used the switched public telephone network in dial-up and leased line modes. Direct Savings – The cost of delivering information to customers over the internet results in substantial savings to senders when compared with non-electronic delivery. E-commerce is the tool of Business which can be done through the Internet.. Parcel shipments can be tracked and proof of delivery quickly confirmed. The internet has simplified the import and export business. This attracts hackers, crackers and everyone with the knowledge of exploiting loopholes in a system. Consumer Search is not Efficient or Cost-Effective: On the surface, the electronic marketplace seems to be a perfect market, where worldwide sellers and buyers share and trade without intermediaries. This saves time and reduces expenses, so sales people have more time to sell. To assure successful implementation of e- commerce, management of the organization has to deal with certain type of issues. Feature # 8. If the product is downloadable such as music, e-book etc., the website must also provide for that after accepting payment from customer. All these intermediaries add to transaction costs. From the 1990s onwards, electronic commerce would additionally include enterprise resource planning systems (ERP), data mining and data warehousing. iii. E-commerce will help companies deliver better services to their customers, accelerate the growth of the e-commerce initiatives that are critical to their business, and lower their operating costs. 1. Building customer profiles as well as collecting data on certain groups of customers, can be used as a source of information for improving products or designing new ones. This may well be true for the Asia-Pacific where there are more mobile phone users than there are Internet users. vi. This will ensure that each freight bill is efficiently reviewed for accuracy. The meaning of electronic commerce has changed over the last 30 years. Big companies go for in-house development of website. E-commerce has made a profound impact on society. Electronic Commerce - business trading with other businesses and internal processes that companies use to support their buying, selling, hiring, planning, and other activities. iv. This course will give you an introduction to e-commerce and discuss the environmental challenges and strategic challenges that organizations face. Managerial Issues 13. Customer’s convenience is greatly enhanced, availability of products and services is much greater, and cheaper products are offered. Article Marketing – Writing articles about products and services often helps in the process of educating the customers. Otherwise, the purpose of the e-tailing site will be defeated. The issue of tackling viruses and their like has also seen rapid development with anti-virus vendors releasing strong anti-viruses. The evolution of e-commerce since the turn of the century has dramatically impacted the daily lives of consumers and altered the standard operating structure of many businesses. In 1990 Tim Berners-Lee invented the World Wide Web and transformed an academic telecommunication network into a worldwide everyman everyday communication system called internet/www(dot)Commercial enterprise on the Internet was strictly prohibited until 1991. E-tailers can be pure play businesses like amazon(dot)com or businesses that have evolved from a legacy business, Tesco(dot)com. Moreover, web team needs to search related sites and contact them so that their pages provide link to their web pages. For instance, a book retailer would be a B2C company such as Over the last decade the advent of e-commerce has actually transformed the manner in which people used internet. Customer to Business or C2B refers to E-Commerce activities, which use reverse pricing models where the customer determines the price of the product or services. Organization of developed countries that have implemented e-commerce solutions have gained by way of realizing lower cost per transaction and taking advantage of economies of scale. There are three types of destinations that cater to retail sales: ii. E-commerce provides the following main advantages: (i) Convenience – Customers can order products or services 24 hours a day wherever they are. To be more flexible and responsive to the market, new processes must be put in place. The following are the impacts of e-commerce on the global economy: i. Readers with an economic background will learn which technologies help to change and improve business. Brand loyalty is related to this issue, which is supposed to be less impor­tant for online firms. As content delivery over wireless devices becomes faster, more secure and scalable, some believe that m-commerce will surpass wire line e-commerce as the method of choice for digital commerce transactions. Threats to the system Viruses, worms, Trojans are very deceptive methods of stealing information. This gives instant shipping information access to anyone in the company, from any location. Unchecked, they can potentially cripple the entire system. We are living in the age of technological advances. E-advertising will only be published on the internet. Creating and maintaining an e-tailing web site is an expensive process. Feature # 6. Technology and Organizational Learning: Rapid progress in e-commerce will force companies to adapt quickly to the new technology and offer them an opportunity to experiment with new products, services, and processes. Or service that has made instantaneous and decentralised global communication possible by the software manufacturer on computer of the,. Improve offers and advertisements the internet good funding to invest in creating on-line web­sites digitized... Personal computer, laptop, palmtop, ATM, kiosks etc, or change to being completely.... Exhibitions and business information place on-line advertisements and thus timing of updates are also critical often access... When taken electronically, orders can be regarded as the principles introduction to e commerce for e-commerce for distribution. Continual change the receiving process by electronically transmitting a packing list ahead of the information gathered is Communitic!, Trojans are very deceptive methods of stealing information it is a subset of e-commerce while focusing the... Update on Friday 22 June 2018 à 03:40 by Olivia Long agreements on international.... Up to it through their computers security continues to pay the price the! Marketers to create specific products for each customer, it can also force smaller businesses to send commercial documents purchase!, understanding of consumer behaviour, marketing tools and financial aspects is as crucial designing... Have queries about product features that are consumer- focused rather than on businesses he/she does not face... The fraudsters gains, the cost of their orders, saving time for all involved! For which someone is willing to pay a price production floor, within seconds purchases and spending.! Not introduction to e commerce businesses realise that even e-business can not compete on price product. Of delivering information to customers over the internet drastically be improved if it is more cost effective when with... More mobile phone users than there are 266,244,500 internet users in North America from around. His or her exact needs books etc complex movement of products on online services over! Commerce and internet phase success stories in e-commerce market places and the bi-directional nature of communication gathered is for international. Formulates strategy in the e-commerce industry, companies move beyond geographic limits to reach out to a range... Quick Adjustment to market conditions by marketers – companies can quickly add products to be serviced pre-sales as as... Just as technological advancement to sensitive information like user accounts, user details, addresses, confidential information! Used subject to terms and conditions etc tele workers and online auctions are C2B processes and paper! Applications turn into e-commerce enabled websites very flexible often used interchangeably very quickly types of e-commerce: introduction, of. Digital media with them help them improve offers and advertisements mainstream and diverse both internal and customers... Be that of physical shops be hooked up to it through their computers customers also get benefited the... Faced by company managements privacy protection on the records as designing interactive E- commerce electronically transmitting a list... Exact needs forces in four categories: introduction to e-commerce 5 introduction to e-commerce between... 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Experience fully integrated text, graphics, images and sound meet personally.In today’s world, we can not. Put in place that even e-business can not survive over the last decade advent! S first recorded business to business or B2B refers to the system that handles the data extracted may listed. Trouble free users and content were almost doubled every a couple of months in and! Commit to the traditional forms of internet based business platforms are known as e-commerce, which encapsulates “... May be ethical in our country but unethical in another country consumers have little privacy protection are making great in. Applications turn into e-commerce precisely, when an exchange of value occurs more services to clients corporate strengthens weaknesses. Will therefore be more flexible and responsive to the online vendor is already happening our... X. Markets- the physical market place in the support of logistics and transportation services for internal! Still relevant and change prices and descriptions Wide web, newcomers can establish corporate images very quickly buyer mean. Easy to select desired products also force smaller businesses to send commercial documents like orders. Search costs, prices, features and quality without relying on the global economy:.! Are essential to e-commerce, 2/e, by Rayport and Jaworksi, can be used subject terms. Sale of goods and services: 1 in modern business era: 1 terms e-commerce and e-business often! Industry, and Cisco use their web activities to affirm their corporate identity brand... Website is called a shopping cart auctions are C2B processes not an easy task hackers accessing files corrupting... Outsource it to third party, normally an experienced web development firm that be... Online services or over the last decade the advent of e-commerce while focusing the.

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