1. Electronic Commerce E-Commerce or Electronics Commerce is a methodology of modern business, which addresses the need of business organizations, vendors and customers to reduce cost and improve the quality of goods and services while increasing the speed of delivery. Ecommerce refers to the paperless exchange of business information using the following ways − • • • • • Electronic Data Exchange (EDI) Electronic Mail (e-mail) Electronic Bulletin Boards Electronic Fund Transfer (EFT) Other Network-based technologies 1.1 E-Commerce Categories: 1. Electronic Markets Present a range of offerings available in a market segment so that the purchaser can compare the prices of the offerings and make a purchase decision. Example: Airline Booking System 2. Electronic Data Interchange (EDI) • It provides a standardized system • Coding trade transactions • Communicated from one computer to another without the need for printed orders and invoices & delays & errors in paper handling • It is used by organizations that a make a large no. of regular transactions Example: EDI is used in the large market chains for transactions with their suppliers
3. Internet Commerce • It is use to advertise & make sales of wide range of goods & services. • This application is for both business to business & business to consumer transactions. 1.2. Traditional Commerce v/s E-Commerce Sr. No. Traditional Commerce E-Commerce 1 Heavy dependency on information exchange from person to person. Information sharing is made easy via electronic communication channels making little dependency on person to person information exchange. 2 Communication/ transaction are done in synchronous way. Manual intervention is required for each communication or transaction. Communication or transaction can be done in asynchronous way. Electronics system automatically handles when to pass communication to required person or do the transactions. 3 It is difficult to establish and maintain A uniform strategy can be easily established standard practices in traditional and maintain in e-commerce. commerce. 4 Communications of business depends In e-Commerce or Electronic Market, there is upon individual skills. no human intervention. 5 Unavailability of a uniform platform as traditional commerce depends heavily on personal communication. 6 No uniform platform for information E-Commerce provides a universal platform to sharing as it depends heavily on support commercial / business activities personal communication. across the globe. E-Commerce website provides user a platform where al l information is available at one place. 1.3. Advantages Of E-commerce: ➢ ➢ ➢ ➢ ➢ ➢ ➢ Buying/selling a variety of goods and services from one's home or business Anywhere, anytime transaction Can look for lowest cost for specific goods or service Businesses can reach out to worldwide clients - can establish business partnerships Order processing cost reduced Electronic funds transfer faster Supply chain management is simpler, faster, and cheaper using ecommerce - Can order from several vendors and monitor supplies.
- Production schedule and inventory of an organization can be inspected by cooperating supplier who can in-turn schedule their work 1.3.1. • • • • • • • Advantages to Organizations Using e-commerce, organizations can expand their market to national and international markets with minimum capital investment. An organization can easily locate more customers, best suppliers, and suitable business partners across the globe. E-commerce helps organizations to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information. E-commerce improves the brand image of the company. E-commerce helps organization to provide better customer services. E-commerce helps to simplify the business processes and makes them faster and efficient. E-commerce reduces the paper work. E-commerce increases the productivity of organizations. It supports "pull" type supply management. In "pull" type supply management, a business process starts when a request comes from a customer and it uses just-in-time manufacturing way. 1.3.2. • • • • • • • Advantages to Customers It provides 24x7 support. Customers can enquire about a product or service and place orders anytime, anywhere from any location. E-commerce application provides users with more options and quicker delivery of products. E-commerce application provides users with more options to compare and select the cheaper and better options. A customer can put review comments about a product and can see what others are buying, or see the review comments of other customers before making a final purchase. E-commerce provides options of virtual auctions. It provides readily available information. A customer can see the relevant detailed information within seconds, rather than waiting for days or weeks. E-Commerce increases the competition among organizations and as a result, organizations provides substantial discounts to customers. 1.3.3. Advantages to Society • • • Customers need not travel to shop a product, thus less traffic on road and low air pollution. E-commerce helps in reducing the cost of products, so less affluent people can also afford the products. E-commerce has enabled rural areas to access services and products, which are otherwise not available to them.
• E-commerce helps the government to deliver public services such as healthcare, education, social services at a reduced cost and in an improved manner. 1.4. Disadvantages Of E-commerce: ➢ Electronic data interchange using EDI is expensive for small businesses ➢ Security of internet is not very good - viruses, hacker attacks can paralise e-commerce ➢ Privacy of e-transactions is not guaranteed ➢ E-commerce de-personalises shopping 1.5. Threats of E-commerce: • • • • • • Hackers attempting to steal customer information or disrupt the site A server containing customer information is stolen. Imposters can mirror your ecommerce site to steal customer money Authorised administrators/users of an ecommerce website downloading hidden active content that attacks the ecommerce system. A disaffected employee disrupting the ecommerce system. It is also worth considering where potential threats to your ecommerce site might come from, as identifying potential threats will help you to protect your site. Consider: • • 1.6. Who may want to access your ecommerce site to cause disruption or steal data; for example competitors, ex-employees, etc. What level of expertise a potential hacker may possess; if you are a small company that would not be likely to be considered a target for hackers then expensive, complex security may not be needed. Features of E-Commerce: ➢ Ubiquity Internet/Web technology is The marketplace is extended beyond traditional available everywhere: at work, at home, and boundaries and is removed from a temporal and elsewhere via mobile devices, anytime. geographic location. ―Marketspace‖ is created; shopping can take place anywhere. Customer convenience is enhanced, and shopping costs are reduced. ➢ Global reach The technology reaches Commerce is enabled across cultural and across national boundaries, around the earth. national boundaries seamlessly and without modification.