Welcome to EconomicsDiscussion.net! Understanding different fulfilment models, as well as the pros and cons of different platforms, is critical when evaluating potential e-commerce businesses for sale. Another form of E-commerce was the airline and railway reservation system. (v) Lower Cost – On-line Marketers avoid the expense of maintaining a store and the costs of rent, insurance and utilities. Customers need to be serviced pre-sales as well as post sales. E-commerce is a popular term for electronic commerce or even internet commerce. Something may be ethical in our country but unethical in another country. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. e-commerce requires large investment to build a brand image on internet which is estimated around us$ 100 million or around Rs. 8 Fastest Growing Financial Services Company in America - Financial Times 2020. An eCommerce website is an information technology method in which traders, businesses/distributors/marketers can sell products/services and the customer can purchase on that website electronically by using the internet on the mobile and computer. Having understood the benefits of running an e-commerce business, it’s time to turn attention towards the different types of e-commerce businesses available. On the World Wide Web, companies move beyond geographic limits to reach wider audience. It provides a competitive advantage as well as increases the overall demand for certain products and services. E-commerce will close the link between customers and distribution centres. These programmes restrict access to and from the system to pre-checked users/access points. A search engine can come up with the best music deals, for example, yet consumers continue to flock to trusted entities such as HMV. The danger of hackers accessing files and corrupting accounts adds more stress to an already complex operation. On top of eliminating the need for long lines at physical stores, e-commerce sites allow people who are not situated in major urban areas access to stores located remotely. Ecommerce is an umbrella term that covers everything there is to do with buying or selling online, and can sometimes be otherwise written as “E Commerce,” “e-commerce,” or “eCommerce.” E-commerce (electronic commerce) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. On one hand by using E- commerce firms can communicate with customers through E-commerce enabled websites. Buying wholesale is arguably closest to the traditional offline retail model. All rights reserved. E-commerce can help automate the receiving process by electronically transmitting a packing list ahead of the shipment. In this way the e-tailing shops lure the customers to make purchases on-line. 1. The availability of product details, catalogues, and other information about a business through its website makes it vulnerable to access by the competition. 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. For this purpose the business partners have to couple their business processes and their ICT systems. E-commerce has become one of the most popular methods of making money online and an attractive opportunity for investors. For instance, the structure of the organizational unit dealing with E- commerce might have to be different from the conventional sales and marketing departments. 3. Beside the sofa test, online furniture stores face costly returns which makes the product harder to sell online. It is easy to review the product before, actually, purchasing it. Handling Human Resource Management Related Issues: Electronic commerce is changing the manner in which staff is recruited, motivated, trained and educated. Ocean carriers and their trading partners can exchange bill of lading instructions, freight invoices, container status messages, motor carrier shipment instructions, and other documents with increased accuracy and efficiency by eliminating the need to re-key or reformat documents. There are various types of e-advertising: (a) Wallpaper Advertising – It changes the background of the web site to the chosen promotion. For example, Motorola gathers customer needs for a pager or a cellular phone, transmits them electronically to the manufacturing plant where they are manufactured, along with the customer’s specifications and then sends the product to the customer within a day. Therefore, it is necessary that advocates, accountants and executives of the companies must understand legal, trade, cultural and monetary issues of the countries with which their company has to deal. This attracts hackers, crackers and everyone with the knowledge of exploiting loopholes in a system. 4. ii. E-commerce means using the Internet and the web for business transactions and/or commercial transactions, which typically involve the exchange of value (e.g., money) across organizational or individual boundaries in return for products and services. Similarly network security measures like firewall needs to be installed so that intruders are not able to make authorized access to corporate network. Mobile Commerce, or m-Commerce, is about the explosion of applications and services that are becoming accessible from Internet-enabled mobile devices.It involves new technologies, services and business models. This means, the buyer and the seller do not often meet face to face. Threats to Present Day E-Commerce and Its Solution. When compared to the means of traditional marketing, e-marketing offers several advantages. Advantages: Convenience, Information, Fewer Hassels, Lower Cost, Relatively Building, Audience Sizing, On-Line Marketing and a Few Others, So far, success stories in e-commerce have forced large business with deep pockets and good funding to invest in creating on-line websites. Product Promotion – E-commerce enhances promotion of products and services through direct, information-rich, and interactive contact with customers. The Internet could end up like EDI without the emergence of the World Wide Web in 1990s. So transactions normally can be initiated online but materialize offline in a face to face contact of parties. The major different types of E-Commerce are: 1. Business to Business or B2B refers to E-Commerce activities between businesses. For example, the computer software is directly downloaded by the software manufacturer on computer of the customer. As far as offline promotion is concerned, company can advertise the web address through visiting cards, letter pads, bill books etc. (vi) Relatively Building – On-line marketers can dialogue with consumers and learn from them. Can include image, texts, and even animations within the advertisements. The websites can be accessed from anywhere around the globe at any time therefore it possess the feature of universality. The meaning of electronic commerce has changed over the last 30 years. A supply chain is a set of relationships between a number of companies who have a symbiotic relationship with each other in that one company supplies commodities or services to other companies which, in turn, supply commodities or services to other companies, and so on. People now are not only just using internet for gathering information, leisure or socializing online but also at the same time they are seeking measures to conduct business. E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. This is another model of selling products online that would no doubt be of interest to you. Article Marketing – Writing articles about products and services often helps in the process of educating the customers. It also allows companies to record the relevant details of each pallet, parcel, and item being shipped. April 4, 2020 by James Morrish 7 Comments. Unless a sound virus-protection strategy is used by the ecommerce Solutions firm, these malicious agents can compromise the credibility of all ecommerce web solution services. An early online information marketplace, including online consulting, was the American Information Exchange, another pre Internet online system introduced-in 1991. So far, success stories in e-commerce have forced large business with deep pockets and good funding to invest in creating on-line websites. The following precautionary steps might prove to be helpful: Most notable are the advances in identification and elimination of non-genuine users. Copyright © 2010 - 2020. Nowadays companies are transforming themselves into e-commerce enabled organizations. "Introduction to E-Commerce, 2/e", by Rayport and Jaworksi, can be used as the principles book for e-commerce. Feature # 8. iii. With the use of E-commerce technology, the world is moving from mass-production to mass-customization. The. 4. Instagram – It is cost-effective because these platforms allow business to create profiles for free. Customer to Customer or C2C refers to E-Commerce activities, which uses an auction style model. Hence the area of the market can be increased. It has some unique ways to put a business transaction in place. Company management can also outsource this task to some third party, normally an experienced web development firm. In developing countries cost may exceed benefits in initial years of e-commerce initiatives. Google have a great guide that talks to this subject well. Virtual Communities are online communities created by means such as chat rooms and specifically designed sites like, where people can interact with each other having common interest using the internet. The COVID-19 outbreak saw e-commerce sales spike 25% in March 2020 alone. Company management has to take steps to promote the website. 5. Users can surf the Internet and experience fully integrated text, graphics, images and sound. vii. They can use software agents to search for and invite offers from multiple sellers. As in the brick-and-mortar environment, they simply cannot compete on price or product offering. Computer viruses are rampant, with new viruses discovered every day. Once customers make the payment, the e-commerce site must ensure the delivery of product in good condition on time. viii. An example of this is peer auction giant, E Bay. Having understood the main e-commerce models, it is important to spend some time considering the technology platform on which it operates. 5. On the other end, customers can also fill order forms, feedback forms and can communicate with business operating firms. As more and more people find their way onto the internet, the cyberspace population is becoming more mainstream and diverse. According to a report, small retailers that go head-to-head with e-commerce giants are fighting losing battle. In 1990 Tim Berners-Lee invented the World Wide Web and transformed an academic telecommunication network into a worldwide everyman everyday communication system called internet/www(dot)Commercial enterprise on the Internet was strictly prohibited until 1991. When taken electronically, orders can be quickly routed to the appropriate order-processing site. We will focus specifically on purchases of goods and services from online stores on the Web. A business develops an interactive interface with customers via a website. This site uses Akismet to reduce spam. I’d start by looking at purchase pathways; identifying where your potential customers are dropping off the site. By definition it covers a variety of business activities which use internet as a platform for either information exchange or monetary transaction or both at times. A. B2B. Imagine a website called furniture, com or living.com, where venture capitalists are investing millions in selling home furnishings online. So, management needs to incorporate the impact of e-commerce on its human resource management practices. With the wide adoption of the Internet and the introduction of the World Wide Web in 1991 and of the first browser for accessing it in 1993, most e-commerce shifted to the Internet. The various objectives of the e-commerce can be laid down as follows: The business development can be done through the e-commerce being the primary and the basic object. Marketing, Business Transactions, Methods, E-Commerce. If a product is high-margin, an outsourced fulfilment route is possible, but should be fully evaluated. Like Dell Computers Website www(dot)dell(dot)com enables the consumers to mention configuration of a Computer and then the product is made available and delivered as per the configuration ordered by the customer. In addition, e-commerce allows customers to track shipments down to the individual product and perform other supply chain management and decision support functions. E-tailing refers to retailing over the internet. The power of e-commerce should not be underestimated as it continues to pervade everyday life and present significant opportunities for small, medium, and large businesses and online investors. The systems used the switched public telephone network in dial-up and leased line modes. Moreover, web team needs to search related sites and contact them so that their pages provide link to their web pages. Then e-commerce division communicates the vision of top management throughout the organization and annual objectives are identified. Brand loyalty is related to this issue, which is supposed to be less important for online firms. Some of the important issues before the organizational management are explained as follows: Management has to develop e-commerce strategy based on the analysis of industry and competition. So when you log into your Amazon and purchase a book, this is a classic example of an e-commerce transaction. These were both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders or invoices electronically. Features 6. This can force larger brick and mortar retailers to open an online division. Everything you need to know about the E- Commerce. Managing Ethical, Cultural and Legal Issues: There exist big ethical and cultural differences between countries. Company that have advertising budget can promote the site by placing banner ads at popular websites and portals. Combining more than ten years of experience, this free e-mail course contains all of the information you need to master the profitable world of buying an e-commerce business. These new buyer capabilities mean that the exchange process in the age of information has become customer initiated and customer controlled. Cost Efficiency- At the beginning of the internet age in the 1990s, creating websites was a costly undertaking. Already, small but powerful software packages are delivered over the internet. The e-commerce division, formulates strategy in the light of corporate strengthens and weaknesses. ‘E-commerce’ and ‘online shopping’ are often used interchangeably but at its core e-commerce is much broader than this – it embodies a concept for doing business online, incorporating a multitude of different services e.g. Paperwork is significantly reduced and the shipping department will therefore be more efficient. Mobile phones impose very different constraints than desktop computers. In the interest of water safety, this series will sail in a smaller pond. FE International - No. Two way interactions are now possible in video conferencing used for employee training and education. This is particularly dangerous as the data extracted may be that of credit card numbers, security passwords, transaction details etc. By the end of 2000, many European and American business companies offered their services through the World Wide Web. Hey James! Affiliate Marketing – It is a kind of referral marketing where reference of any product will be provided on the other websites and when the customer buy’s the product based on the recommendation this website owner with gets commission. Firewalls are another common way of implementing security measures. 2. They can get objective information for multiple brands, including costs, prices, features and quality without relying on the manufacturer or retailers. Next, we look at some of the reasons why businesses have been quick to race into the space. In on-line marketing through internet, the consumers, and not the marketer, gives permission and controls the interaction. Internet usage has spread with recent development of the user-friendly World Wide Web (www) browser software such as Netscape Navigator and Microsoft Internet Explorer. Parcel shipments can be tracked and proof of delivery quickly confirmed. Just a quick one, do you have any tips for using GA to improve customer shopping experience? Both have practical implications for the owner, we have detailed some considerations below. By highlighting the customer service, the companies are trying to subjugate a lion-share in the market. Naturally e-commerce has significant benefits for the consumer, but it has also been useful for businesses too. Money Thefts E-commerce services are about transactions, and transactions are very largely driven by money. For those interested in buying an e-commerce business, this article serves to provide an introduction to e-commerce, covering the reasons for its popularity, the main distribution models and a comparison of the major e-commerce platforms available. Ecommerce is a shortened version of the phrase “electronic commerce” which essentially describes any type of exchange of currency for goods or services online. E-commerce serves as the best channel of communication. Online real estate services are provided by websites that show listing of houses, shops and flats put up for sale and rent. The store owner does not keep products in stock and there is no inventory held. Brands are expected to lower search costs, build trust, and communicate quality. Major threats to present day e-commerce may be listed thus: i. You don’t need to look far to see the potential of e-commerce businesses. Users can send e-mail, exchange views, shop for products, and access news and business information. The only tools needed to take advantage of this solution are a personal computer and an internet browser. Besides this, understanding of consumer behaviour, marketing tools and financial aspects is as crucial as designing interactive E- Commerce websites. The book gives a sound introduction to the fascinating world of E-Commerce. Originally, electronic commerce meant the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). EC is a tool that addresses the desire of firms, consumers, and management … 4. Introduction to E-Commerce 2. Also, the administrative work related to physical delivery, especially across international borders, can be reduced significantly, cutting the cycle time by more than 100 percent. E-business applications turn into e-commerce precisely, when an exchange of value occurs. By intercepting duplicate billings and incorrect charges, a significant percent of shipping costs will be recovered. Blogging – Publishing blogs about similar products is also a very subtle way of marketing some business. The evolution of e-commerce since the turn of the century has dramatically impacted the daily lives of consumers and altered the standard operating structure of many businesses. 3. Mass customization enables manufacturers to create specific products for each customer, based on his or her exact needs. 2. To begin with, a decision needs to be made between a hosted or custom installation. It is quite different from traditional e-Commerce. The Web users and content were almost doubled every a couple of months in 1995 and 1996. Electronic commerce or e-commerce (sometimes written as eCommerce) is a business model that lets firms and individuals buy and sell things over the … It can be regarded as the internet front of any traditional retailer. If properly done, one can achieve mass customization. 2. The firewall prohibits hackers from entering corporate network via internet. Your customers can make a purchase anywhere and anytime, especially more people are getting used to shopping on their mobile devices. Thus an e-tailer is a B2C business that executes a transaction with the final consumer. Therefore, building and integrating infrastructure is a big challenge faced by company managements. Once the customer fills the cart with items that he or she has shopped, the site should take the customer towards the payment gateway, which collects money electronically. 6. Salesforce acquires Slack for … Read More. Integrating information technology with existing business processes is a big task. It is the process of gaining attention of the customers, through the digital media. Share Your PPT File. E-tailers can be pure play businesses like amazon(dot)com or businesses that have evolved from a legacy business, Tesco(dot)com. E-commerce technologies ensure speedy delivery of information at very low cost and considerably increase information density as well. They may also create and submit bills of lading, place a cargo order, analyse charges, submit a freight claim, and carry out many other functions. Its diversity and pluralism is perfectly suited to the internet. Big e-tailing sites like Ebay(dot)com and Amazon(dot)com are making great business in this country. Generally, speaking, they are responsible for collecting products from the supplier, holding the product at their distribution centers, all packaging as well as onward order fulfilment (to the customer). Product customization ensures that goods are tailor made as per the requirements and preferences of customers. Therefore, company management has to set up advertising budget and decide the tools that it shall use to promote the e-commerce website. Technology makes it possible for anyone to buy or sell practically anything online. Customer’s convenience is greatly enhanced, availability of products and services is much greater, and cheaper products are offered. E-Commerce – Advantages: Convenience, Information, Fewer Hassels, Lower Cost, Relatively Building, Audience Sizing, On-Line Marketing and a Few Others. EDI is composed of standards that enable businesses’ computers to conduct transactions with each other, without human intervention. In fact, small businesses can now build their own sites. Disadvantages 16. History of E-Commerce 3. Much like there is a "Principles of Marketing" that is intended to be the first course in marketing, The text covers the entire landscape of e-commerce. The result has been the emergence of new business-to business supply chains that are consumer- focused rather than product-focused. Share Your PDF File Segments 12. Electronic marketing (e-marketing) is also known as internet marketing, web marketing and digital marketing on on-line marketing. 1. Data security and network security are major issues. 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. If the retailer wants to avoid end-to-end fulfilment (like the traditional model), then a hybrid approach can be adopted – using a ‘fulfilment house’. The pricing, in E-tailing shops, is generally lower than that of a traditional shop. Academia.edu is a platform for academics to share research papers. Building customer loyalty to a specific site is not an easy task. Essay on E-Commerce: Scope, Importance, Advantages and Limitations! In E-commerce buyers and sellers meet in cyber space rather than physical place. E-business is ever ything to do with back-end systems in an organisation. Traditional payment systems are ineffective or inefficient for electronic trade.