Biyani's Think Tank Concept based notes E-Commerce BCA Part-III Deepika Kumari MSc-IT, MCA Revised by: Ekta Sharma Lecturer Deptt. of Information Technology Biyani Girls College, Jaipur .
6 Chapter 1 E-commerce & Scope of E–commerce Q 1. What is e – commerce? What are its characteristic? Ans. The term commerce is define as trading of good & services or if ‗e‘ for ‗electronic‘ is added to this, the definition of e – commerce is defined as trading of goods, services, information or anything else of value between two entities over the internet. Following are some definitions of e – commerce:1. It is the ability to conduct business electronically over the internet. 2. It means managing transactions using networking and electronic means. 3. It is a platform for selling products & services via internet. Characteristics of e – commerce:1. Establishment of B to B relationship. 2. Electronic payment. 3. e – distribution of products & services. 4. Exchange of information. 5. Pre and post – sales support. 6. Customer relationship management. Q 2. What are advantage of e – commerce ? Ans. Advantage of e – commerce:1. Facilitates the globalization of business:-e – commerce facilitates the globalization of business by providing some economical access to distant markets and by supporting new opportunities for firms to increase economies by distributing their products internationally. 2. Provides increased purchasing opportunities for the buyer:-As e – commerce increases sales opportunities for the seller, it also increases purchasing opportunities for buyer. For free study notes log on: www.gurukpo.com
E-Commerce 7 3. Lowering staffing cost:- As in e – commerce, the selling & purchasing process is outline, the amount of interaction with staff is minimized 4. Market based expansion:- An e – commerce is open to entirely new group of users, which include employees, customers, suppliers & business partners. 5. Increased profits:-With e – commerce, companies reach more & more customers where physical commerce cannot reached, thus increasing profits. 6. Increased customer service & loyality:- e – commerce enables a company to be open for business wherever a customer needs it. 7. Increase speed & accuracy:- E – commerce see the speed and accuracy with which business can exchange information, which reduces cost on both sides of transactions. It is available 24 hours a day & 7 days a weak. 8. Reduction of paper storage. 9. Increased response times:- In e – commerce, the interaction with the system take place in real time & therefore allows customer or bidder to respond more Quickly & thus reduces the time of discussion between then as in traditional commerce. Q.3 What are the limitations of e-commerce? Ans. Limitations of e – commerce:1. Security:- the security risk in e – commerce can beclient / server risk data transfer and transaction risk virus risk 2. High start up cost:The various components of cost involved with e – commerce are:connection:- connection cost to the internet. hardware / software:- this includes cost of sophisticated computer, moduer, routers, etc. maintenance:- this include cost involve in training of employees and maintenance of web-pages. 3. Legal issues:- these issues arises when the customer data is fall in the hands of strangers. For free study notes log on: www.gurukpo.com
8 4. Lack of skilled personnel:- there is difficulty in finding skilled www developers and knowledgeable professionals to manage and a maintain customer on line. 5. Loss of contact with customers:-Sometimes customers feels that they does not have received sufficient personal attention. 6. Uncertainty and lack of information:- most of the companies has never used any electronic means of communication with its customers as the internet is an unknown mode for them. 7. Some business process may never be available to e – commerce:-Some items such as foods, high cost items such as jewelry may be impossible to be available on the internet. Q 4. What are the types of e – commerce ? Ans. Types of e – commerce:1. Business to customer (B to C):-It means the consumer is motivated by business. Customer identifies a need Searches for the product or services to satisfy the need Select a vendor and negotiates a price Receives the product or service Makes payment Gets service & warranty claims For free study notes log on: www.gurukpo.com