Chapter 1 - Introduction to E-commerce
1.1 Introduction:
Electronic trade, or e-business, alludes to financial movement that happens on the web. E-business incorporates numerous types of business action, for example, retail shopping, managing an account, contributing and rentals.
As per The Economist, e-business is and will be an all-inclusive splendid spot for retailers in impending years. Electronic business, additionally called e-trade, is expanding around the globe. E-business comprises of electronic business transactions identified with the buy and conveyance of products and administrations. E-trade incorporates retail exchange in the middle of business and shoppers (B2c) and business-to- business (B2b) exchange. Organizations utilize the Web, extranets, or electronic information trade (EDI) in completing e-business.
E-business is presently being utilized within various sorts of business,
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Purchasing/offering 24/7. More arrive at to clients; there are no hypothetical geographic confinements. Low operational expenses and better nature of administrations. No need of physical organization set-ups. Simple to begin and deal with a business. Clients can undoubtedly select items from distinctive suppliers without moving around physically.
DISADVANTAGES:
Anyone without much of a stretch begin a business. Furthermore there are a lot of people awful locales which consume up client's cash. There is no assurance of item quality. Mechanical disappointments can result in flighty consequences for the aggregate techniques. As there is least risk of immediate client to organization collaborations, client dependability is constantly on a check. There are numerous programmers, who search for circumstances, and hence an ecommerce site, administration, installment passages; every single are alway inclined to an
Sartorial limitation: the main disadvantage of E-Business is lack of growth in some sectors for example foods. Customer prefers to look the food products physically before buying. As the customer is concerning about the product quality and delivery of items could be different from what the customer might be expecting.
Despite having many advantages of the Internet, there are, unfortunately disadvantages as well in e-business. For example, Viruses are often spread over the Internet, which can normally be done via email. Even having a virus scanner does not protect your computer system at one hundred percent because they do not always recognize new virus, which it does not yet know about. Other disadvantages may include hackers being able to access your system and therefore, all of the company's files, which could ruin the company's business, may be at large. There is also one of the biggest complaints, which is the lack of physical contact because it prevents scrutiny of products and lacks face-to-face interaction; there may be difficulty in finding information;
E-business stands for electronic business. The role of E-business is conducting the business via the electronic by synchronizing all the supply chain to make the process more efficient and get to fulfill more customer demand. It could reduce the cost of production, expands the business by giving support from business to business. While, E-commerce is the process of transferring money which is different from e-business, so e-commerce is being considered as a part of e-business.
The continuous development of Internet leads to the growth of e-commerce. The electronic commerce is growing constantly due to the continuously increasing number of mobile and online users in the market, primarily the emerging markets. Besides that, the development of the Information Technology (IT), such as the advance of paying processes and the improvements of shipping method also the main reason to cause the growth of electronic commerce (John Ingham, 2015). Most consumers accept e-commerce as their feasible alternative in the purchase of goods and
The traditional method of doing business has always been face to face trading. It is a medium for both customers and businesses to negotiate and purchase and sell goods and services. However, with the progression of the technology age, businesses and customers alike are finding convenience and benefits through the use of e-commerce. Electronic commerce (e-commerce) involves online transactions and the trading of goods and services through the Internet, without time and geographical barriers (Network Solutions, 2014). This could include retail sites, large online music stores such as iTunes or business to business (B2B) transactions between companies. This is a new emerging technology and has brought many advantages (Network Solutions, 2014).
With the development of society, e-commerce, a new type of business in Marketing emerges. It stands for Electronic Commerce. Rayudu (2009), the author of E-Commerce: E-Business, states that “E-commerce is a selling and transfer process requiring several institutes. It is a systematic and organized network for the exchange of goods between producers and consumers. The Net embraces all those related activities which are indispensable for maintaining a continuous, free and uninterrupted distribution and transfer of goods.” However, both the advantages and disadvantages exist in this new business type. (p. 1)
With e-commerce there is no driving in circles while looking and digging in hopes of finding what you need. Allows you to apply filters and search directly for what you want. Stores online offer their full line as well as use warehouses instead of store fronts—products are easy to locate and can be delivered to your door in just a few days.
What is e-business? Electronic business or also known as e-business is any business that uses advanced technologies in their business processes, filing, and electronic commerce. Apart from that, these technologies also help the workforce in the organisation to communicate easily. Last but not least, e-business able to communicate with their shareholders, suppliers, stakeholders and customers without difficulty.
Ecommerce in India has many first time shoppers. This means that they have not yet ended up their cognizance about what to see from ecommerce websites. As a consequence, shoppers sometimes fall quarry to hard sell. But by the time the making is got, they reveal shame and return the goods. Still user remorse is a global problem, it is all the more well-known in a country like India, where greatly of the growing comes from new buyers. Revenues are classy for ecommerce actors, as back logistics presents unique challenges. This becomes all the more complex in cross-border ecommerce.
E-commerce a new term in the world economy emerged with the spread of the internal in the early nineties of the twentieth century , but some researchers have pointed to the existence of the seventies of the last century through the exchange of electronic information between industrial companies systems.E-commerce is considered one of modern idioms and taken to enter our daily lives until they became used in many life activities, which are of link information technology revolution and communications. E-commerce expression can divide it into two sections, with the first, a “trade”, which refers to the economic activity is through the trading of goods and services between the governments, institutions and individuals and is governed by a number of rules and regulations could be argued that an internationally.
Best thing comes with time, and although it is only the beginning in many countries for e-commerce businesses, they have already made their roots deep among the masses. The best thing for the consumers opting for e-commerce over conventional way of marketing is that they get quality products and that too at reasonable price along with lucrative offers. The experts firmly believe that e-commerce is here to stay, and it is one of the safest options, as even the recession will not have a great impact on this sector. In fact, no one can deny the fact that e-commerce touches every aspect of our life and in the near future, it will touch our life more and more.
Additionally, since the business doesn't have to have a physical store, it can cut down on overheads and thereby reduce on costs since they do not need to employ customer facing staff to assist the customers in a store because functions such as checkout, billing, payments and inventory management are automated.
One of the benefits enjoyed by organizations carrying out web based is potential customer’s base. Availability of internet has enabled individual and business to market or interact with customer globally. The organization carrying out web based business does not have to sale products locally but they can serve customer across the globe. Online business will enable IKEA to attract customer in different countries across the world. It is not necessary for the customer to visit the store in order to purchase, but they can shop online. The flexibility makes online business to attract more customers since it reaches more audience at the same time (Rich 2006, p. 11). Another advantage is the store remains opened all the time. Web based business are not closed and customer can purchase the product any day at any time. The customer can also purchase their products during night time while the physical stores are opened. When physical store close, customer can
Electronic Commerce, usually addressed as E-commerce can be described as a type of business used for commercial transactions which involves transfer of information across the internet. It helps people in electronically exchanging goods and services with ease as there is no time or distance barrier.
Electronic commerce (or e-commerce) consists of the repurchasing of different services and products, utilized by the internet. This includes business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer(C2C) transactions. These transferable activities include, but are not limited to, online retail sales, online bill paying, supplier purchases, and Web-based auctions. Electronic commerce implements and utilizes several different types of technologies including transactions of funds, electronic data interchange, credit cards, and e-mail (Reference for Business, Encyclopedia of Management, 2008). The term e-commerce is often used interchangeably with Electronic business (e-business). E-business refers to the use of digital technology and the Internet to execute the major business processes in the enterprise. E-business includes activities for the internal management of the firm and for coordination with suppliers and other business partners (Laudon, K., 12th ed., p. 55). E-commerce facilitates the growth of online business. It is categorized as follows; Online marketing, online advertising, online sales, product delivery, product