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Introduction to E-Commerce
Transacting or facilitating business on the Internet
is called E-Commerce. E-Commerce is short for
"electronic commerce."The process of buying and
selling goods and services over the internet .A type
of business model, or segment of a larger business
model, that enables a firm or individual to conduct
business over an electronic network, typically the
internet that doesn’t require any bargaining.
When it comes to E-Commerce,
most of the information you’ll be
able to find online is marketing
related because marketing is the
easy part. That’s why almost
everybody assumes that all it takes
to build an E-Commerce operation is
good marketing, a technological
sound shopping catalogue solution
and a lot of luck.
1) Management.
2) Warehouse
operations.
3) Shipping and
returns.
4) E-commerce
catalogue and
product display.
5) Promotions.
Components of E-Commerce Business
Different types of e-commerce
Business-to-business (B2B)
Business-to-Consumer (B2C)
Business-to-government (B2G)
Consumer-to-consumer (C2C)
Mobile commerce (M-commerce)
Facebook commerce (F-commerce)
We use the term e-business to refer
primarily to the digital enablement of
transactions and processes within a firm,
involving information systems under the
control of the firm.
E-Commerce include commercial
transactions involving an exchange of value
across organizational boundaries
E- Commerce v/s E-business:
E-Commerce is Like Any Other Business:
Developing a business over the Internet requires many
of the same major activities as starting any other business.
Not All Products Are Very Compatible to Sales Over the
Internet:
But there are some features unique to E-Commerce. Not
all products are real compatible to be sold over the Internet.
You Need an Online "Store":
Basically, you need an "online store" to be an "e-tailor".
Basics of E-Commerce
You need to design and promote a
Website. You'll need access to
expertise that can regularly design
and maintain this Website for you --
and it will require ongoing attention.
Fortunately, there is a great deal of
free information available to help you
with this design and promotion.
Obviously, You Need a Website
The Process Of Buying Products Online
Traditional Commerce E-Commerce
Cost Cost is greater due to taxes,
advertisement and employees.
Average cost is much lower than traditional type.
Market Product market is limited because of geo-graphical
constraints.
Product market is across the world because of non-
physical aspects.
Advertisement It requires product
advertisement on various mediums.
Developers of the websites also makes adds on
domains.
Time It requires more time to go
outside, to choose, compare and evaluate product.
It takes less time to choose and make comparison
between several products.
Accessibility Less accessible due to time
or geo-graphical constraints.
Products can be accessed at any time and from almost
anywhere.
Reliability People trust it more because of physical
transactions.
Due to lake of awareness this is less
popular among people.
Support Customers support
centers support their customers.
No physical support centres available.
Feedback Feedback from
customers takes a lot of time.
Feedback is immediate by certain website
features.
Interactivity
Fewer customers can be interacting with at a time because of less physical limitations.
Websites are especially designed for
multi-users.
1. Differentiate your
business.
2. Get your technology
right.
3. Don’t make
customers run
around in circles.
4. Secure your supply
chain.
5. Be cost effective.
Tips for Running a
Successful E-Commerce Business
7 Reasons to start an E-Commerce business
1) To get more independence.
2) Because you are passionate.
3) To make extra income, or Become financially
secure.
4) You want to.
5) Get tax benefits.
6) Pick who you work with.
7) Never get laid off.
Security threats arise either because of somebody's malicious
actions, or because of incorrect technical setup. As a result,
there cannot be an exhaustive listing of all E-Commerce
security issues. But here are the most common:
Malware.
Unauthorized Data Access.
Denial of Service.
Phishing.
Security Threats to E-Commerce Websites
1-Lack of sufficient system's security,
reliability, standards, and communication
protocols.
2-Insufficient telecommunication
bandwidth.
3-The software development tools are still
evolving and changing rapidly.
4-Difficulties in integrating the Internet and
electronic commerce software with some
existing applications and databases.
Limitations of E-Commerce
Cont…..
5-The need for special Web servers and
other infrastructures, in addition to the
network servers (additional cost).
6-Possible problems of interoperability,
meaning that some E-Commerce software
does not fit with some hardware, or is
incompatible with some operating
systems or other components.
ADVANTAGES OF E-COMMERCE
Faster buying/selling procedure, as well as easy to find
products.
Buying/selling 24/7.
More reach to customers, there is no theoretical
geographic limitations.
Low operational costs and better quality of services.
No need of physical company set-ups.
Easy to start and manage a business.
Customers can easily select products from different
providers without moving around physically.
1. Unable to examine products personally.
2. Everyone is connected to the Internet.
3. There is the possibility of credit card
number theft.
4. Mechanical failures can cause
unpredictable effects on the total
processes.
Disadvantages
In general, today’s businesses must always strive to create the next best thing that consumers will want because consumers continue to desire their products, services etc. to continuously be better, faster and cheaper. Hence, there are several factors and variables that need to be considered and decided upon when starting an E-Commerce business. Some of these include: types of E-Commerce, marketing strategies and countless more. If the correct methods and practices are followed, a business will prosper in an E-Commerce is set with much success and profitability.
Conclusion
