Ecommerce

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Ecommerce
A subset of E-business, is the purchasing, selling, and exchanging of goods and services over computer networks (such as the Internet) through which transactions or terms of sale are performed electronically.

Benefits of Ecommerce
Ecommerce allows people to carry out businesses without the barriers of time or distance. One can log on to the Internet at any point of time, be it day or night and purchase or sell anything one desires at a single click of the mouse. • he direct cost-of-sale for an order taken from a web site is lower than through traditional means (retail, paper based), as there is no human interaction during the on-line electronic purchase order process. Also, electronic selling virtually eliminates processing errors, as well as being faster and more convenient for the visitor. • Another important benefit of Ecommerce is that it is the cheapest means of doing business. From the buyer’s perspective also ecommerce offers a lot of tangible advantages. • • • • • • Reduction in buyer’s sorting out time. Better buyer decisions Less time is spent in resolving invoice and order discrepancies. Increased opportunities for buying alternative products. Reduced costs by reducing labor, reduced paper work, reduced errors in keying in data, reduce post costs New Markets. The Internet has the potential to expand your business into wider geographical locations. •

TRENDS
• • • • • • • B2B B2C C2C B2E C2B B2G M-COMMERCE

Business-to-Business (B2B)

Business-To-Consumer (B2C)
Stand for Business to Consumer.This model helps business to sell goods or services to the consumer by using online catalog and it’s also refers to online trading and online auction for computers and other goods. It’s also easier for retailer to put online catalog on internet. B2C e-commerce refers where companies and consumers interact electronically. This type of e-commerce application has grown especially after the widespread use of the internet and the improvement of the services offered over the internet. In can support effective promotion of products and services to all kinds of potential customers. For example: if you want to sell goods and services to customer so that any one can purchase any products directly from supplier’s website means through B2C consumer access the system of the supplier. And also allow their customers to better access the information about different product. 1. Amazon is a best example of the most successful B2C e-commerce companies. 2. EBay is another example of B2C.

Consumer-To-Consumer (C2C)
The introduction of the new economy has helped to create a very individualistic and independent society. Consumers are no longer totally reliant on corporations and are increasingly looking to conduct their own business transactions. This is evident in Western Australia where the number of small businesses has doubled from 1983 to 1999 (Australian Bureau of Statistics, 2001). At the forefront of this movement are Consumer-to-Consumer (C2C) applications within business. C2C applications are any transactions between and amongst consumers (QUT School of International Business, 2003, p. xv). They are often described as Peer-to-Peer (P2P) (QUT School of International Business, 2003, p. xv). When eCommerce was first introduced, it redefined the traditional structure of business by giving small firms and individuals the same opportunity as multi-national corporations. As a result, many individuals established online organizations that encouraged and assisted commerce between consumers. There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995. Companies using internal networks to offer their employees products and services online--not necessarily online on the Web--are engaging in B2E (Business-to-Employee) ecommerce.

Business-To-Employee (B2E)
Business-to-employee (B2E) electronic commerce uses an intra-business network which allows companies to provide products and/or services to their employees. B2E (Business to Employee) E-Commerce generally refers to the requisitioning of supplies by employees for use in their jobs, but this really has grown to encompass much more. For example, B2E makes it very easy for an employee to requisition a new toner cartridge and printer paper - the order is entirely electronic, and supervisors are asked to approved the requisition in the event that the total order exceeds preset limits for that particular employee. However, B2E has grown into technologies that allow the employee to access their employee records to update address information, shift investments in the 401K plan, or maintain their internal resume. Many companies have found that B2E technologies have dramatically reduced the administrative burdens with the human resources department. Admittedly, maintaining employee information

has little to do with commerce, but this term has grown to encapsulate this activity into the B2E definition.

Consumer-To-Business (C2B)
Consumer-to-business (C2B) is an electronic commerce business model in which consumers (individuals) offer products and services to companies and the companies pay them. This business model is a complete reversal of traditional business model where companies offer goods and services to consumers (business-to-consumer = B2C). We can see this example in blogs or internet forums where the author offers a link back to an online business facilitating the purchase of some product (like a book on Amazon.com), and the author might receive affiliate revenue from a successful sale. A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Enlace empowers consumers around the world by providing the meeting ground and platform for such transactions. C2B is a business model in which consumers (individuals) offer products and services to companies and the companies pay them. This business model is a complete reversal of traditional business model This kind of economic relationship is qualified as an inverted business model. The advent of the C2B scheme is due to major changes: Connecting a large group of people to a bidirectional network has made this sort of commercial relationship possible. The large traditional media outlets are one direction relationship whereas the internet is bidirectional one. Decreased cost of technology: Individuals now have access to technologies that were once only available to large companies ( digital printing and acquisition technology, high performance computer, powerful software) Where companies offer goods and services to consumers the increasing use of open-source applications by companies is also a concrete C2B example. Companies use more and more software originally created by individuals to manage their processes (CRM, CMS, Database, Server Application etc.) The new C2B business model is a revolution because it introduces a new collaborative trading scheme paving the way for new applications and new socio-economical behaviors

Business-To-Government (B2G)

B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. This kind of e-commerce has two features: first, the public sector assumes a pilot/leading role in establishing e-commerce; and second, it is assumed that the public sector has the greatest need for making its procurement system more effective. Web-based purchasing policies increase the transparency of the procurement process (and reduce the risk of irregularities). To date, however, the size of the B2G e-commerce market as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped. On the Internet, B2G is business-to-government (a variation of the term B2B or business-to-business), the concept that businesses and government agencies can use central Web sites to exchange information and do business with each other more efficiently than they usually can off the Web. For example, a Web site offering B2G services could provide businesses with a single place to locate applications and tax forms for one or more levels of government (city, state or province, country, and so forth); provide the ability to send in filled-out forms and payments; update corporate information; request answers to specific questions; and so forth. B2G may also include e-procurement services, in which businesses learn about the purchasing needs of agencies and agencies request proposal responses. B2G may also support the idea of a virtual workplace in which a business and an agency could coordinate the work on a contracted project by sharing a common site to coordinate online meetings, review plans, and manage progress. B2G may also include the rental of online applications and databases designed especially for use by government agencies. Government agencies typically have pre-negotiated standing contracts vetting the vendors/suppliers and their products and services for set prices. These can be state, local or federal contracts and some may be grandfathered in by other entities (ie. California's MAS Multiple Award Schedule will recognize the federal government contract holder's prices on a GSA General Services Administration Schedule). There are multiple social platforms dedicated to this vertical market and they have risen in popularity with the onset of the ARRA/Stimulus Program and increased government funds available to commercial entities for both grants and contracts.

Disadvantages of E–commerce
Security
Security continues to be a problem for online businesses. Customers have to feel confident about the integrity of the payment process before they commit to the purchase.

System And Data Integrity
Data protection and the integrity of the system that handles the data are serious concerns. Computer viruses are rampant, with new viruses discovered every day. Viruses cause unnecessary delays, file backups, storage problems, and other similar difficulties. The danger of hackers accessing files and corrupting accounts adds more stress to an already complex operation.

System Scalability
A business develops an interactive interface with customers via a website. After a while, statistical analysis determines whether visitors to the site are one–time or recurring customers. If the company expects 2 million customers and 6 million show up, website performance is bound to experience degradation, slowdown, and eventually loss of customers. To stop this problem from happening, a website must be scalable, or upgradable on a regular basis.

E–commerce Is Not Free
So far, success stories in e–commerce have forced large business with deep pockets and good funding. According to a report, small retailers that go head– to–head with e–commerce giants are fighting losing battle. As in the brick–and– mortar environment, they simply cannot compete on price or product offering. Brand loyalty is related to this issue, which is supposed to be less important for online firms. Brands are expected to lower search costs, build trust, and communicate quality. A search engine can come up with the best music deals, for example, yet consumers continue to flock to trusted entities such as HMV.

Consumer Search Is Not Efficient or Cost–effective
On the surface, the electronic marketplace seems to be a perfect market, where worldwide sellers and buyers share and trade without intermediaries. However, a closer look indicates that new types of intermediaries are essential to e– commerce. They include electronic malls that guarantee legitimacy of transactions. All these intermediaries add to transaction costs.

Customer Relations Problems
Not many businesses realise that even e–business cannot survive over the long term without loyal customers.

Products People won't buy online
Imagine a website called furniture.com or living.com, where venture capitalists are investing millions in selling home furnishings online. In the case of a sofa,

you would want to sit on it, feel the texture of the fabric etc. Beside the sofa test, online furniture sotres face costly returns which makes the product harder to sell online.

Corporate Vulnerability
The availability of product details, catalogs, and other information about a business through its website makes it vulnerable to access by the competition. The idea of extracting business intelligence from the website is called web framing.

High Risk Of Internet Start–up
Many stories unfolded in 1999 about successful executives in established firms leaving for Internet start–ups, only to find out that their get–rich dream with a dot.com was just that – a dream.

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