INTRODUCTION

Electronic commerce, commonly known as E-commerceor e-Commerce, is trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail.

Types of e-

commerce

Business to Business

(B2B)

Consumer to

Consumer

(C2C)

Business to Consumer

(B2C)

Types of e-commerce

Business-to-Consumer (B2C)

In a Consumer-to-Consumer E-commerce

environment consumers sell their

online goods to other consumers. A well-known example

is eBay.

Business to Business(B2B)In a Business-to-Business E-

commerce environment, companies sell their online goods to other companies without being engaged in

sales to consumers. In most B2B E-commerce

environments entering the web shop will require a log in. B2B web shop usually

contains customer-specific pricing, customer-specific

assortments and customer-specific discounts.

Consumer-to-Consumer (C2C)

In a Business-to-Consumer E-commerce environment, companies sell their online goods to consumers who are the end users of their products or services. Usually, B2C E-commerce web shops have an open access for any visitor, meaning that there is no need for a person to login in order to make any product related inquiry.

E-Commerce Advantages

Advantages to Consumers

Advantages to Society

Advantages to

Organizations

Advantages to Society

• Customers need not to travel to shop a product thus less traffic on road and low air pollution.

• E-Commerce helps reducing cost of products so less affluent people can also afford the products.

• E-Commerce has enabled access to services and products to rural areas as well which are otherwise not available to them.

• E-Commerce helps government to deliver public services like health care, education, social services at reduced cost and in improved way.

Advantages to Organizations• Using E-Commerce, organization can expand their market to national and

international markets with minimum capital investment. An organization can easily locate more customers, best suppliers and suitable business partners across the globe.

• E-Commerce helps organization to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information.

• E-commerce improves the brand image of the company.• E-commerce helps organization to provide better customer services.• E-Commerce helps to simplify the business processes and make them faster

and efficient.• E-Commerce reduces paper work a lot.• E-Commerce increased the productivity of the organization. It supports

"pull" type supply management. In "pull" type supply management, a business process starts when a request comes from a customer and it uses just-in-time manufacturing way.

Advantages to Customers

• 24x7 support. Customer can do transactions for the product or enquiry about any product/services provided by a company any time, any where from any location. Here 24x7 refers to 24 hours of each seven days of a week.

• E-Commerce application provides user more options and quicker delivery of products.

• E-Commerce application provides user more options to compare and select the cheaper and better option.

• A customer can put review comments about a product and can see what others are buying or see the review comments of other customers before making a final buy.

• E-Commerce provides option of virtual auctions.• Readily available information. A customer can see the relevant detailed

information within seconds rather than waiting for days or weeks.• E-Commerce increases competition among the organizations and as result

organizations provides substantial discounts to customers.

E-Commerce Disadvantages

Technical disadvantages

Non-Technical disadvantages

Technical disadvantages

• There can be lack of system security, reliability or standards owing to poor implementation of e-Commerce.

• Software development industry is still evolving and keeps changing rapidly.

• In many countries, network bandwidth might cause an issue as there is insufficient telecommunication bandwidth available.

• Special types of web server or other software might be required by the vendor setting the e-commerce environment apart from network servers.

• Sometimes, it becomes difficult to integrate E-Commerce software or website with the existing application or databases.

• There could be software/hardware compatibility issue as some E-Commerce software may be incompatible with some operating system or any other component.

Non-Technical Disadvantages

• Initial cost: The cost of creating / building E-Commerce application in-house may be very high. There could be delay in launching the E-Commerce application due to mistakes, lack of experience.

• User resistance: User may not trust the site being unknown faceless seller. Such mistrust makes it difficult to make user switch from physical stores to online/virtual stores.

• Security/ Privacy: Difficult to ensure security or privacy on online transactions.

• Lack of touch or feel of products during online shopping.• E-Commerce applications are still evolving and changing rapidly.• Internet access is still not cheaper and is inconvenient to use for

many potential customers like one living in remote villages.

Electronic Banking

Electronic banking, also known as electronic fund transfer (EFT), uses computer and electronic technology in place of checks and other paper transactions. EFTs are initiated through devices like cards or codes that let you, or those you authorize, access your account. Many financial institutions use ATM or debit cards and Personal Identification Numbers (PINs) for this purpose. Some use other types of debit cards that require your signature or a scan. For example, some use radio frequency identification (RFID) or other forms of "contactless" technology that scan your information without direct contact with you. The federal Electronic Fund Transfer Act (EFT Act) covers some electronic consumer transactions.

The popular services covered under E-banking

Automated Teller

Machine

Electronic Funds

Transfer (EFT)

System

Telephone Banking

Mobile Banking

Internet Banking

Credit Cards

Debit Cards

Smart Cards

Advantages of E-Banking

• It's generally secure. But make sure that the website you're using has a valid security certificate. This let's you know that the site is protected from cyber-thieves looking to steal your personal and financial information.

• You have twenty-four-hour access. When your neighborhood bank closes, you can still access your account and make transactions online. It's a very convenient alternative for those that can't get to the bank during normal hours because of their work schedule, health or any other reason.

• You can access your account from virtually anywhere. If you're on a business trip or vacationing away from home, you can still keep a watchful on your money and financial transactions - regardless of your location.

• Conducting business online is generally faster than going to the bank. Long teller lines can be time-consuming, especially on a Pay Day. But online, there are no lines to contend with. You can access your account instantly and at your leisure.

• Many features and services are typically available online. For example, with just a few clicks you can apply for loans, check the progress of your investments, review interest rates and gather other important information that may be spread out over several different brochures in the local bank.

Security Precautions

E-commerce isn't just increasing, it's evolving. The exponential rate of e-commerce growth has far surpassed mainstream security measures set in place to properly regulate online commerce and prevent consumer identity fraud. Every time a new e-commerce innovation is released, a new security risk is posed for consumers.

Previously risky online activity such as banking is now considered safe and reliable, yet popular methods used to access sensitive information online present serious security risks. Most consumers too easily accept terms and conditions without a second thought, compromising online anonymity and privacy.

There will always be risks, but as the e-commerce world evolves, we should embrace this dynamic industry and keep the following five fundamental security tips in mind.

• Share With Caution • Verify All URLs• Question Before You Buy, Save Without Question• Keep Payment Methods Separate from Bank Accounts• You Only Have One Online Identity, So Protect It