CONTENTS:-

e-commerce

Definition

A brief history

Types of e-commerce

Advantages and Disadvantages

Conclusion

E-COMMERCEDEFINITION:-

E-commerce is the buying and selling of products over computer network through which transactions and terms of sale are performed electronically. It can also be defined as marketing and servicing of products, services and information over a variety of computer networks. Many businesses now use internets, intranets, extranets and other networks to support every step of the commercial process. This might include everything from advertising, sales and customer support on World Wide Web to internet security and payment processes.

A brief history of e-commerce:-

By all accounts, it is known that Electronic Data Interchange (EDI) was the precursor to what subsequently came to be practiced as Electronic Commerce (e-Commerce). EDI was first introduced in the 1960's and consisted of a set of rules that facilitated large business houses to conduct a method of electronic transaction. It also, in a way, helped business firms to exchange useful information.

The next crucial development phase was the advent of Mosaic web-browser in the year 1992. This web browser eventually assumed the role of a browser which was downloadable and called as Netscape. This was a giant step forward in the evolution of e-Commerce

Different types of e-commerce:-The prevailing e-commerce activities has been divided

into four major types. These are as follows:-

1. Business-to-consumer

2. Consumer-to- business

3. Business-to-business

4. Consumer-to-consumer

Business-to-consumer:-Here the seller is a business organization.

The buyer is a consumer.

This emulates the situation of physical retailing so it is commonly known as electronic retailing.

Consumer-to-business:-Here the consumer specifies his requirements and bid

on the project.

These requirements could be as simple as an acceptable price or could involve considerable customization of an existing standard product or creation of a new product.

The consumer reviews the bids and select the company that will complete the project.

Business-to-business:-Here the buyer and seller are business organization.

There are three types of systems, namely buyer-oriented systems, seller-oriented systems and virtual marketplace.

It is basically related to supply-chain management.

Consumer-to-consumer:- Here the buyer and the seller are the customers.

There are many sites offering free classified auctions and forums where individual can buy and sell thanks on online payment systems.

E-bay’s auction service is a great example where person-to-person auction takes place everyday since 1995.

Advantages:- 24 *7 operations i.e. this business can be done at

anytime.

Global reach

Cost of acquiring, serving and retaining customers.

Shopping online is convenient and time saving.

An extended enterprise is easy to build.

Improved customer service to your clients.

Power to provide ‘the best of both the worlds’.

The customer controls the interaction.

Knowledge of customer behaviour

Disadvantages:- People do not use internet for financial transactions.

It is not suitable for perishable commodities like food items.

Difficulty faced by business to calculate the return-on-business.

In addition to technology and software issues, many businesses face cultural and legal obstacles in conducting e-commerce.

Some business never lends to e-commerce.

Failure might occur in the system.

Network congestion in the internet.

Conclusion:

The high rate of business carried over internet has made it synonymous with the whole phenomena of e-commerce .Thus on evaluating the pros-and –cons of e-commerce , we can say that the advantages of e-commerce have the potential to out weigh the disadvantages. Proper strategy to address a technical issue and to build up customers trust on the system can change the present scenario which will help e-commerce adapt to the changing needs of the world and contribute to the world’s economy.

References:- www.google.com

Basandra Suresh, edition 2006,Computers Today,SGG Publications.Pvt.ltd,pg no-263 to 265

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