2. WHAT IS E-COMMERCE?
E-commerce, which is short for electronic-commerce, is associated
with the buying and selling of information, products and services
via computer network today.
It’s aim is to cut cost while improving the quality of goods and
increasing the speed of services.
The beginnings of e-commerce can be traced to the 1960s, when
businesses started using Electronic Data Interchange (EDI) to share
business documents with other companies.
3. ARCHITECTURAL FRAMEWORK
Six layers of functionality or services: -
1. Application
2. Brokerage services, data or transaction management
3. Interface and support layers
4. Secure messaging and electronic document interchange
5. Middleware and structured document interchange
6. Network infrastructure and basic communication services
4. TYPES OF E-COMMERCE
Business to Business (B2B): B2B ecommerce transactions are those
where both the transacting parties are businesses, e.g., manufacturers,
traders, retailers and the like.
Business to Consumer (B2C): When businesses sell electronically to
end-consumers, it is called B2C ecommerce.
Consumer to Consumer (C2C): These involve customer to customer
selling and buying of goods. Auction sites are a good example of C2C
ecommerce.
Business to Government(B2G): This is defined as the commerce
carried out between companies and the public sector.
5. SPECIALISED FORMS OF E-COMMERCE
M-commerce: M-commerce is short for ‘mobile commerce’.
F-commerce: F-commerce is short for ‘Facebook commerce.’
6. COMMON APPLICATIONS OF E-COMMERCE
Essential applications i.e. buying & selling
Financial applications such as internet banking
Educational applications & teleconferencing
Entertainment applications
7. ADVANTAGES OF E-COMMERCE
TO ORGANISATIONS
Global reach
Cost reduction
Supply chain improvements
Customisation of business
Improved customer relations
TO CONSUMERS
More products and services
Cheaper products and services
Speedy delivery
24-hour availability
Information availability
Online auctions
8. DISADVANTAGES OF E-COMMERCE
TO ORGANISATIONS
Lack of face-to face
interaction with customer
Legal issues
Technical problems
Competition
TO CONSUMERS
No chance of inspecting
goods
Privacy and security
Problem of return of goods
Lack of trust
9. DISTRIBUTION CHANNELS
Pure-click or pure-play companies are those that have launched a
website without any previous existence as a firm (Myntra)
Bricks-and-clicks companies are those existing companies that
have added an online site for e-commerce (Westside)
Click-to-brick online retailers that later open physical locations to
supplement their online efforts (Lenskart)
10. E-COMMERCE FACTS - INDIA
India has an internet users base of about 450 million as of July 2017, 40% of
the population.
By 2020 India is expected to generate $100 billion online retail revenue out of
which $35 billion will be through fashion e-commerce.
Online travel accounts for 61% of the e-commerce market.
20% sales is done through online resources.
Newest sector to step into e-commerce is medicine.