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Table of Contents• Introduction• Definition• Brief history of e-commerce• E-Commerce categories• Benefits of e-commerce• Company example• References

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The world largest computer network is the internet. With the astonishing growth of the Internet nowadays, many companies are finding new ways to expand their business opportunities. One can even say that there are almost all companies used computers in their everyday business. Thus, E-commerce is emerging as an increasingly important way for businesses to reach potential customers. Introduction What exactly is e-commerce? Most casual internet users think that e-commerce is just buying and selling online. Yet this is not the case. Simply put, e-commerce is the electronic exchange of business information between two or more organizations. There are e-commerce conducted between businesses and those that carried out between a business and its consumers. Business-to-business e-commerce take place in electronic data interchange over private networks. Companies that regularly do business together will setup an automated and fast info exchange such as stock deliver and receive confirmation

Introduction

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Definition :E-Commerce : is a process of buying,

selling, transferring, or exchanging products, services, and/or information via electronic networks and computers

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Brief history of e-commerce• 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 system

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• 1990s

The Internet commercialized and users flocked to participate in the form of dot-coms, or Internet start-upsInnovative 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”

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E-Commerce Categories

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Business-to-consumer (B2C) :

Online transactions are made between businesses and individual consumers. E.g.

Amazon.com, eBay.com.

Business-to-business (B2B):

Businesses make online transactions with other businesses.

Consumer-to-consumer (C2C): A form of e-commerce in which the participants areIndividuals , with one serving as the buyer and theOther as a seller

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Benefits of E-Commerce Benefits to organizations

Benefits to consumers

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Benefits to organizations

Global reachCost reductionSupply chain

improvementsExtended hours: 24/7/365CustomizationImproved customer

relations

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Benefits to consumersMore products and

servicesCheaper products and

servicesInstant deliveryInformation availabilityParticipation in auctions

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History of ecommerce is unthinkable without Amazon and Ebay which were among the first Internet companies to allow electronic transactions. Thanks to their founders we now have a handsome ecommerce sector and enjoy the buying and selling advantages of the Internet. Currently there are 5 largest and most famous worldwide Internet retailers: Amazon, Dell, Staples, Office Depot and Hewlett Packard. According to statistics, the most popular categories of products sold in the World Wide Web are music, books, computers, office supplies and other consumer electronics.

Example of e-commerce

Amazon.com, Inc. is one of the most famous ecommerce companies and is located in Seattle, Washington (USA). It was founded in 1994 by Jeff Bezos and was one of the first American ecommerce companies to sell products over the Internet. After the dot-com collapse Amazon lost its position as a successful business model, however, in 2003 the company made its first annual profit which was the first step to the further development.

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At the outset Amazon.com was considered as an online bookstore, but in time it extended a variety of goods by adding electronics, software, DVDs, video games, music CDs, MP3s, apparel, footwear, health products, etc. The original name of the company was Cadabra.com, but shortly after it become popular in the Internet Bezos decided to rename his business "Amazon" after the world's most voluminous river. In 1999 Jeff Bezos was entitled as the Person of the Year by Time Magazine in recognition of the company's success. Although the company's main headquarters is located in the USA, WA, Amazon has set up separate websites in other economically developed countries such as the United Kingdom, Canada, France, Germany, Japan, and China. The company supports and operates retail web sites for many famous businesses, including Marks & Spencer, Lacoste, the NBA, Bebe Stores, Target, etc.

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References

http://www.ecommerce-land.com/history_ecommerce.html#

Principles of information system 6edition

http://www.asaresearch.com/ecommerce/ecommerce_types.htm

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