• What is E-commerce?
• Features, Advantages and Disadvantages.
• Business Models
• E-Commerce Process
• Payment Method
• Real Examples
WHAT IS E-COMMERCE?
• The purchasing and selling of products and services, or the sending of
money or data, through an electronic network, typically the internet, is
known as e-commerce.
• These commercial dealings can be either B2B (business-to-business),
B2C (business-to-consumer), C2C (consumer-to-consumer), or C2B.
• E-commerce is frequently interpreted as the online sale or purchase of
Physical goods. However, the sale and acquisition of services and digital
commodities are also included in the definition of e-commerce.
• The terms E-commerce and E-business are often used interchangeably.
• Non-Cash Payment - E-Commerce enables the use of credit cards, debit cards,
smart cards, electronic fund transfers via the bank's website and other modes of
• 24x7 Service availability- E-commerce automates the business of enterprises and
services provided by them to customers are available anytime, anywhere.
• Wide selection of available products- Compared to traditional stores, which can
only hold so much inventory in the space they occupy, e-commerce offers
customers a wider selection of products to choose from.
• Personalization and item suggestions - A visitor's browsing, search, and
purchase histories can be tracked by e-commerce websites. They can use this data
to provide targeted market insights and personalized product recommendations.
Traditional Commerce Vs E-Commerce
Traditional Commerce E-Commerce
Traditional commerce is buying or selling of
products and services physically.
E-Commerce carries out commercial
transactions electronically on the Internet.
Customer can face to face identify, authenticate
and talk to the merchant.
Neither customer nor merchant see the other.
Physical stores are not feasible to be open at all
It is always available on all time and all days of
Products can be inspected physically before
Products can't be inspected physically before
The scope of business is limited to a particular
Scope of business is global. Vendors can expand
their business Worldwide.
The advantages of e-commerce can be broadly divided into two main categories
Advantages for Organizations Advantages for Customers
With e-commerce, businesses can expand their
market to national and international markets
with little capital investment.
The customer can do transactions for the
product or inquiry about any product or service
provided by the company any time, anywhere
from any location.
E-Commerce helps to simplify business processes
and make them faster and more efficient.
E-Commerce application provides user more
to compare and select the cheaper and better
E-Commerce creates digital data with can be
used in other business aspects
A customer can read other people's reviews of a
product before deciding whether or not to buy it.
E-commerce improves the brand image of the
E-commerce is a competitive industry, and as a
result, many companies offer discounts to their
customers in order to stay ahead of their rivals.
E-Commerce disadvantages can be broadly classified into two major categories
Technical disadvantages Non-Technical disadvantages
Poorly implemented e-Commerce systems can
lead to system security, reliability and standards
Creating an E-Commerce application from scratch
can be expensive.
The software development industry is constantly
evolving and changing, which can be challenging
In some countries, this can be due to the limited
amount of Internet
The user may not trust the site, making it difficult
for them to switch to using an online/virtual store
instead of a physical one.
Some special types of web server software are
typically required by the ecommerce vendor
setting the environment apart from typical
The lack of touch or feel of products when
shopping online is still an issue that is being
rapidly updated and changed by ecommerce
Some software used for online shopping might
not work with other software or hardware in a
business, possibly because of incompatibilities.
Many potential customers find internet access
expensive and inconvenient to use, even though
it is available in many places.
The following categories typically apply to business models of e-commerce
• 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)
THE PROCESS OF E-COMMERCE
• The consumer connects to the merchant's home page on the internet using a
• The customer selects items to purchase after browsing the website's product
catalogue. The items that have been chosen are added to an electronic
• The website provides a bill and ship-to address for the purchase and delivery
of selected items when the customer is ready to complete the transaction.
• Purchasing a product initiates the system of physical distribution.
• Using a successful order fulfillment system, employees can track customer orders, locate products,
and resolve any problems that arise as items move from the warehouse to the shipping company to the
WAREHOUSING AND INVENTORY CONTROL
• Online businesses that deal in material goods still need to store and inventory their products.
• An e-commerce business needs a warehousing system that makes it easy to take and fill orders
• Goods that sell quickly should be placed near the dock doors.
• Products that are similar to each other should be kept together so they can be located easily
VARIOUS MODES OF PAYMENTS
• Credit cards
• Debit cards
• Net Banking
• Reward Points
What is e-commerce? E-commerce definition Mailchimp. Available at: https://mailchimp.com/en-
ca/marketing-glossary/e-commerce/ (Accessed: March 16, 2023).
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Online Courses. Earn College Credit. Research Schools, Degrees & Careers. Available at:
https://study.com/learn/lesson/e-business-types-examples-commerce.html (Accessed: March 17,
Research on e-commerce platform of online shopping consumers . Available at:
https://www.atlantis-press.com/article/125966172.pdf (Accessed: March 17, 2023).
E-commerce, e-business and Digital Business (2022) FutureLearn. Available at:
(Accessed: March 18, 2023).