E-commerce (electronic-commerce) denoted as a business over the Internet. Web sites like as Buy.com, Amazon.com, and eBay are all e-commerce sites. The two main forms of e-commerce are Business-to-Business B2B and Business-to-Consumer (B2C). Although companies such as Amazon.com cater widely to consumers, another company provides goods & services exclusively to other businesses. The terms "e-business” and “e-tailing" are frequent utilized synonymously along with e-commerce. They refer to the similar idea; they are used only to confuse people trying to study computer terms.

Some examples of e-commerce are following:

  • driving information by a company through its intranet
  • driving manufacturing & distribution by a value chain with partners on an extranet
  • selling to consumers on a pay-per-download basis, by a Web site
  • for commercial online sales accepting credit cards
  • producing online advertising revenue
  • trading stock within an online brokerage account

Advantages of E-Commerce:

Overcome Geographical Limitations:

If you have a physical store, you are limited through the geographical area which you can service. Having an ecommerce website, the overall world is your playground. In addition, the advent of mcommerce, that is, ecommerce on mobile devices, has dissolved each remaining limitation of geography.

Gain New Customers with Search Engine Visibility:

Physical retail is driven through branding and relationships. In addition to those two drivers, online retail is also driven through traffic from search engines. It is common for customers to follow a link in a search engine output, and land up on an ecommerce website which they have never heard of. This additional source of traffic could be the tipping point for some ecommerce businesses.

Lower Costs:

One of the major tangible positives of ecommerce is the lowered cost. An element of these lowered costs could be passed on to customers in the form of discounted prices. Here are a few of the ways that costs can be reduced along with ecommerce:

  • Real Estate
  • Advertising and Marketing
  • Personnel

Eliminate Travel Time and Cost:

Commonly it is not for customers to travel long distances to reach their preferred physical store. Ecommerce permits them to visit the similar store virtually along with a few mouse clicks.

Enable Deals, Coupons, Bargains and Group Buying:

Though there are physical equivalents to, coupons, deals, bargains and group buying, online shopping makes it much more suitable. For illustration if a customer has a deep discount coupon for turkey at one physical store and toilet paper at another, she might search it infeasible to avail of both discounts. But the customer could do in which online with a few mouse-clicks.

Provide Abundant Information:

There are limitations to the amount of information which can be displayed in a physical store. It is difficult to equip employees to respond to customers who need information across product lines. Ecommerce websites could make additional information easily available to customers. Mostly information is given through vendors, & does not cost anything to create or maintain.

Main Areas of E-Commerce:

1. Business to Business (B2B)
2. Business to Consumer (B2C)
3. Business to Government/Government to Business (B2G/G2B)

Risks in E-Commerce:

1) Business practice
2) Information protection
3) Transaction Integrity
4) Privacy and Trust
5) Global Efforts towards Retaining Privacy & Building Trust

  • Web Trus
  • TRUSTe
  • P3P (Privacy Preferences Project) either the Gauss-Siedel or Newton-Rapson Method.

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