introduction of e commerce

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. Cost Efficiency- At the beginning of the internet age in the 1990s, creating websites was a costly undertaking. Electronic commerce is a relatively new concept that crept into the business vocabulary during the 1970s. 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. Electronic Completion of Business Processes: By using E- commerce we can perform business transactions like accounting and inventory through computers at global level. Thus, E-com­merce service providers have also turned to educating users about safe practices that make the entire operation trouble free. For instance, the structure of the organizational unit dealing with E- commerce might have to be different from the conventional sales and marketing departments. The major different types of E-Commerce are: 1. Business to Business or B2B refers to E-Commerce activities between businesses. Sometimes e-advertising will provide hyperlinks to the company’s web site. It means an e-commerce website is an online shop. "Introduction to E-Commerce, 2/e", by Rayport and Jaworksi, can be used as the principles book for e-commerce. Industries can purchase raw materials, components etc. Data security and network security are major issues. iii. By intercepting duplicate billings and incorrect charges, a significant percent of shipping costs will be recovered. and then you make the pay… Electronic marketing (e-marketing) is also known as internet marketing, web marketing and digital marketing on on-line marketing. Organizations are to be restructured and re-engineered in to a network based organization. M-commerce (mobile commerce) is the buying and selling of goods and services through wireless technology i.e., handheld devices such as cellular telephones and personal digital assistants. Content Guidelines 2. You don’t need to look far to see the potential of e-commerce businesses. 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. Moreover, web team needs to search related sites and contact them so that their pages provide link to their web pages. The first recorded Business to consumer was Gateshead SIS/Tesco in 1984. Moreover, URL can also be advertised at various trade fairs, exhibitions and business related events like seminars, conferences etc. In general, Internet users respond to messages aimed at selling, and receive information about products and services. EDI is composed of standards that enable businesses’ computers to conduct transactions with each other, without human intervention. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. There are various types of e-advertising: (a) Wallpaper Advertising – It changes the background of the web site to the chosen promotion. E-commerce will help companies deliver better services to their customers, accelerate the growth of the e-commerce initiatives that are critical to their business, and lower their operating costs. A customer’s transportation costs and performance can be analysed, thus helping the customer negotiate rates and improve service. e-commerce requires large investment to build a brand image on internet which is esti­mated around us$ 100 million or around Rs. In addition management needs to form security policy. Electronic commerce or e-commerce (sometimes written as eCommerce) is a business model that lets firms and individuals buy and sell things over the … WHAT IS COMMERCE According to Dictionary.com Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer It comprises the trading of something of economic value such as goods, services, information, or money between two or more entities. Required fields are marked *. In a market space, which is an electronic market, goods are delivered directly to buyers when purchasing is completed making markets much more efficient. Read this essay to learn about essay on e commerce, e-commerce essay topics, essay on ecommerce in india, e-commerce essays advantages and disadvantages, essay on e commerce and online shopping, e-commerce essay conclusion! Identity thefts Hackers often gain access to sensitive information like user accounts, user details, addresses, confidential personal information etc. This requires use of appropriate keywords in META tag. (xi) Internet newsgroups set up for commercial purposes help companies place on-line advertisements and thus save cost and time. It is a significant threat in view of the privileges one can avail with a false identity. (vi) Relatively Building – On-line marketers can dialogue with consumers and learn from them. A custom installation will mean acquiring your own hardware. Recent issues like phishing have been tackled to a good extent by informing genuine users of the perils of publishing their confidential information to unauthorized information seekers. Ecommerce is a shortened version of the phrase “electronic commerce” which essentially describes any type of exchange of currency for goods or services online. The business process re-engineering team has to ensure that they do not miss anything significant while building and implementing E- commerce system Manufacturers have to decide whether the whole manufacturing and distribution system is to be restructured to become committed to direct Internet based supply chain and marketing or to use e-commerce website as a simple channel of distribution. For instance, a book retailer would be a B2C company such as Amazon.com. The. According to a report, small retailers that go head-to-head with e-commerce giants are fighting losing battle. Your customers can make a purchase anywhere and anytime, especially more people are getting used to shopping on their mobile devices. Before publishing your Articles on this site, please read the following pages: 1. These new buyer capabilities mean that the exchange process in the age of information has become customer initiated and customer controlled. EDI is an automated format of exchanging information between businesses over private networks. By making more information available about the commercial side of companies, businesses will make their web site a place where customers will not only get detailed information about the services the company offers, but also where they can actually conduct business with the company. On the contrary there are the auctions sites like Quickr(dot)com and Ebay(dot)com where the information about certain listed products and services are provided but the monetary transactions normally happen physically. vii. Title: Introduction to E-Commerce and E-Marketplaces 1 Introduction to E-Commerce and E-Marketplaces Sharif University of Technology, Ali A. Nazari Shirehjini shirehjini_at_sharif.edu Fall 1392 2 Learning Objectives. (viii) On-line Marketing – It is easy affordable by small firms, who otherwise would not have been able to advertise in the print or broad cost media. Commerce means business. D. … For instance, one can effortlessly login to an online shopping mart under a stolen identity and make purchases worth thousands of dollars. Introduction E-Commerce, also known as electronic commerce or internet commerce, is an activity of buying and selling goods or services over the internet or open networks. A Larger Market. E-commerce operates digitally. Major threats to present day e-commerce may be listed thus: i. Can include image, texts, and even animations within the advertisements. Brand loyalty is related to this issue, which is supposed to be less impor­tant for online firms. Unlike e-advertising, e- marketing is very subtle. Then e-commerce division communicates the vision of top management throughout the organization and annual objectives are identified. New technologies require new organizational approaches. Corporate Image – On the web, newcomers can establish corporate images very quickly. Mobile phones impose very different constraints than desktop computers. Marketers and their representatives are held at bay till customers invite them to participate in the exchange process, customers define the rules of engagement, and insulate themselves with the help of agents and intermediaries. (ii) Information – Customers can find reams of comparative information about companies, products, competitors and prices without leaving their office or home. 6. Its diversity and pluralism is perfectly suited to the internet. Video Marketing – In this kind of e-marketing, a video will be shared describing the usage and benefits of the product or a service. Introduction to E-Commerce 2. Managing Ethical, Cultural and Legal Issues: There exist big ethical and cultural differences between countries. The objective is to get your site registered with the search engine so that the site appears as a link in search results of certain keywords-typed by internet user at the search engine like Google. Following are the major business application areas where E-Commerce is used widely: By using E-Commerce, consumers can buy the various products and services from the different manufacturers. As all the information is furnished to the customer, it becomes easy to him to choose the best product among all other alternatives. So far, success stories in e-commerce have forced large business with deep pockets and good funding to invest in creating on-line web­sites. And such threats are in­creasing day by day in this digital, networked world. 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. The meaning of electronic commerce has changed over the last 30 years. New selling models such as shareware, freeware are emerging to maximize the potential of the internet. The digital age workers will have to become very flexible. Feature # 6. Platform choice will depend on the business in question and specific goals. It could change consumers’ financial lives and shake the foundations of financial systems and even governments. Marketers can download useful reports or a free demo of their softwares. (iv) Quick Adjustment to Market Conditions by Marketers – Companies can quickly add products to their offering and change prices and descriptions. 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. E-tailing involves business-to-business or business-to-customers transactions. James is an Executive Broker at FE International. Here we focus on digitally enabled commercial transactions among organizations and individuals. For example – tele workers and online auctions are C2B processes. Understanding exactly what they are can help you leverage them to your advantage: 1. On one hand by using E- commerce firms can communicate with customers through E-commerce enabled websites. To assure successful implementation of e- commerce, management of the organization has to deal with certain type of issues. vii. This involves the transaction of goods and services, the transfer of funds and the exchange of data. Undoubtedly, it will continue to influence how companies sell and market their products, as well as how people choose to make purchases for many years to come. It also changes the way people look at making purchases and spending money. Production cycle time is cut by 50 percent or more in many cases, especially when production is done in a different country from where the designers and engineers are located. Have you heard of FBA? Vi­ruses cause unnecessary delays, file backups, storage problems, and other similar difficulties. 2. The following precautionary steps might prove to be helpful: Most notable are the advances in identification and elimination of non-genuine users. Corporatized retail- brick-and-mortar. Advantages 15. One can easily see how those orders could be received by the impostor without arousing suspicion. All these intermediaries add to transaction costs. This site uses Akismet to reduce spam. It facilitates direct reach of customers and the bi-directional nature of communication. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. E-commerce will allow users to establish an account and obtain real-time information about cargo shipments. Similarly network security measures like firewall needs to be installed so that intruders are not able to make authorized access to corporate network. The term e-commerce was coined back in the 1960s, with the rise of electronic commerce – the buying and selling of goods through the transmission of data – which was made possible by the introduction of the electronic data interchange. 2. 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. 5. Learn how your comment data is processed. The result has been the emergence of new business-to business supply chains that are consumer- focused rather than product-focused. The book gives a sound introduction to the fascinating world of E-Commerce. Integrating information technology with existing business processes is a big task. E-commerce, as a result, opens new markets for your business, allowing you to develop a new business model geared toward your expanding consumer base, especially one that relies on good e-commerce Search Engine Optimization to drive more free traffic to the site through consumers' use of search engines. There is no guarantee of supplying an error-free product. From the 1990s onwards, electronic commerce would additionally include enterprise resource planning systems (ERP), data mining and data warehousing. In E-Commerce B2B, transactions are usually carried out through Electronic Data Interchange or EDI. Share Your Word File Therefore, building and integrating infrastructure is a big challenge faced by company managements. Organization of developed countries that have implemented e-commerce solutions have gained by way of realizing lower cost per transaction and taking advantage of economies of scale. E-tailers can be pure play businesses like amazon(dot)com or businesses that have evolved from a legacy business, Tesco(dot)com. For example, France has certain language and cultural laws that must be obeyed. These were both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders or invoices electronically. Online shopping is a form of electronic shopping store where the buyer is … E-commerce has made a profound impact on society. Buying and selling take place through websites in E-Commerce. E-Commerce has pertain key features which are explained as follows: Feature # 1. Save my name, email, and website in this browser for the next time I comment. Now builders can use virtual reality technology on their website to demonstrate three dimensional floor plans to buyers. This will ensure that each freight bill is efficiently reviewed for accuracy. The software that makes this happen is called a shopping cart. Digital marketing is not suitable for marketing of industrial goods and pharmaceutical products making it useful for only specific categories of products, namely consumer goods. 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. The application uses encryption technology to secure business transactions. Instead, orders are sent directly to the manufacturer, who is responsible for storing the items and shipping them to the customer. Define Electronic Commerce (EC) and describe its categories ; Discuss the content and framework of EC Payments can be made by electronic modes including digital means like internet payment or internet money transfer. Electronic commerce draws on technologies such as mobile commerce , electronic funds transfer , supply chain management , Internet marketing , online transaction processing , electronic data interchange (EDI), inventory management systems , and … Blogging – Publishing blogs about similar products is also a very subtle way of marketing some business. As far as offline promotion is concerned, company can advertise the web address through visiting cards, letter pads, bill books etc. Electronic commerce establishes good relations between companies, customers and suppliers (Manzoor, 2010) Online sales may be considered an activity of electronic commerce; it … Company management has to make decision regarding in sourcing or outsourcing. In this way the e-tailing shops lure the customers to make purchases on-line. The upheaval brought on by these changes is creating new opportunities and new risks and forcing us into new ways of thinking about jobs, careers, and salaries. Originally, electronic commerce meant the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). Enhanced Service- Development of E-Commerce equipped domestic providers to offer more services to clients. If the product is downloadable such as music, e-book etc., the website must also provide for that after accepting payment from customer. Sellers can sell their products by using E-commerce. Big e-tailing sites like Ebay(dot)com and Amazon(dot)com are making great business in this country. However, e-tailing shops need to have a strong distribution network in order to secure the delivery of the products. So MNCs have to study culture of each country and develop corporate ethical code. Customers can manage the increasingly Complex movement of products and information through the supply chain. Reduced Cycle Time – The delivery of digitized products and services can be reduced to seconds. These models have a significant impact on the operational characteristics of the business and its day-to-day running as well as the overall operating margin. The main purpose of e-advertising is to reach out to a wider range of customers. (d) Ad Sense Advertising – This refers to companies’ paying major search engines (such as Google) to promote their business within the first three links that appear when a search is entered. Article Marketing – Writing articles about products and services often helps in the process of educating the customers. Further, it is important to plan ahead and research when deciding on which route to take – hosted may make sense now, but as the business grows self-hosted could make more sense. 1. The pricing, in E-tailing shops, is generally lower than that of a traditional shop. Building customer profiles as well as collecting data on certain groups of customers, can be used as a source of information for improving products or designing new ones. The nature of work and employment will be transformed in the digital age; it is already happening before our eyes. With the use of E-commerce technology, the world is moving from mass-production to mass-customization. 3. Building customer loy­alty to a specific site is not an easy task. Threats to Present Day E-Commerce and Its Solution. I’d start by looking at purchase pathways; identifying where your potential customers are dropping off the site. Company that have advertising budget can promote the site by placing banner ads at popular websites and portals. The following are the impacts of e-commerce on the global economy: i. Railway reservation system and Cisco use their web pages – these companies have their. Identity and brand image to senders when compared to the manufacturer or retailers will! Considerably increase information density as well as with the use of e-commerce are internet, e-mail wireless. 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