Understanding E-Commerce and its role in modern business
E-Commerce is a methodology used in modern business to share business information conduct business transactions support those transactions and maintain business relationships using electronic media The Internet is the most reliable E-Commerce medium as it addresses the requirements of today’s technology-based business environment E-Commerce involves the sale of goods and services and exchange of information online through network-based technologies including Electronic Data Exchange (EDI) Electronic Fund Transfer (EFT) Electronic Bulletin Boards Electronic Mail (e-mail)
Features of E-Commerce
1 - 24/7 service availability Business of enterprises and the provision of services to customers are automated and available at any time
2 - Non-cash payment E-Commerce enables payment for transactions through various modes of electronic payment A customer can therefore make a payment from any part of the world
3 - Inventory management As already stated E-Commerce automates everything including inventory One can generate reports instantly and this makes it easy to maintain efficient inventory management
4 - Advertising: E-Commerce helps the marketing department to advertise products and services faster and more effectively As studies have shown about 3 billion people (about 42% of the world’s population) use the internet in their daily lives Using the internet to advertise is a sure way of reaching as many people as possible
5 - Improved communication and support E-Commerce improves communication with partners and customers thus reducing the dependency on person-to-person exchange of information It enables a business to provide quick and better pre-sale and post-sale assistance to its customers
Business Benefits of E-Commerce
An organization can access and utilize national and international markets without incurring heavy costs E-Commerce helps to locate more customers and suitable business partners from across the globe Since all information is digitalized a business is able to reduce paperwork and the cost of creating distributing retrieving and managing information Errors and time used in processing information are also reduced
E-Commerce supports “pull” type supply management which increases the productivity of a business Business processes start when a customer places a request thus just-in-time manufacturing
In today’s business world E-Commerce improves the brand of a company and enables it to be globally competitive
What is required for E-Commerce ?
Essential capabilities for E-Commerce include enabling buyers to enquire review product information place orders pay for the goods or service electronically and receive their orders in a timely manner Sellers should have the capability to advertise their products receive orders collect payments electronically deliver goods and provide all-time customer support Financial organizations act as intermediates in E-Commerce by accepting payment authorization and enabling sellers to notify logistics organization
1 - E-Commerce business models
Business models used in electronic commerce can be categorized into several groups These are:
1.Business-to-Business In this model a business uses its website to sell products to an intermediate buyer This buyer then sells the products to the consumer
2 - Business-to-Consumer B2C business model enables a business to sell products directly to the customers A customer goes to the business’ website views the product and can choose to order it The website sends information to the relevant people in the organization to dispatch the ordered product to the customer
3 - Consumer-to-Consumer Customers can sell their assets to other consumers using a C2C model Such assets include residential property machinery vehicles etc A customer publishes information about their asset on their website and another customer may view and opt to buy it
4 - Consumer-to-Business In this model the business process starts with the customer He/she approaches a website that shows many companies that provide a product/service and places an estimate of the amount that he/she wants to spend for the product or service If a business can fulfill the customer’s requirements it approaches the customer
Other E-Commerce business models include Business-to-Government (B2G) and Government-to Business (G2B) models used by governments to exchange information with businesses support tenders auctions and for application submission functionalities
E-Commerce is a methodology used in modern business to share business information conduct business transactions support those transactions and maintain business relationships using electronic media The Internet is the most reliable E-Commerce medium as it addresses the requirements of today’s technology-based business environment E-Commerce involves the sale of goods and services and exchange of information online through network-based technologies including Electronic Data Exchange (EDI) Electronic Fund Transfer (EFT) Electronic Bulletin Boards Electronic Mail (e-mail)
Features of E-Commerce
1 - 24/7 service availability Business of enterprises and the provision of services to customers are automated and available at any time
2 - Non-cash payment E-Commerce enables payment for transactions through various modes of electronic payment A customer can therefore make a payment from any part of the world
3 - Inventory management As already stated E-Commerce automates everything including inventory One can generate reports instantly and this makes it easy to maintain efficient inventory management
4 - Advertising: E-Commerce helps the marketing department to advertise products and services faster and more effectively As studies have shown about 3 billion people (about 42% of the world’s population) use the internet in their daily lives Using the internet to advertise is a sure way of reaching as many people as possible
5 - Improved communication and support E-Commerce improves communication with partners and customers thus reducing the dependency on person-to-person exchange of information It enables a business to provide quick and better pre-sale and post-sale assistance to its customers
Business Benefits of E-Commerce
An organization can access and utilize national and international markets without incurring heavy costs E-Commerce helps to locate more customers and suitable business partners from across the globe Since all information is digitalized a business is able to reduce paperwork and the cost of creating distributing retrieving and managing information Errors and time used in processing information are also reduced
E-Commerce supports “pull” type supply management which increases the productivity of a business Business processes start when a customer places a request thus just-in-time manufacturing
In today’s business world E-Commerce improves the brand of a company and enables it to be globally competitive
What is required for E-Commerce ?
Essential capabilities for E-Commerce include enabling buyers to enquire review product information place orders pay for the goods or service electronically and receive their orders in a timely manner Sellers should have the capability to advertise their products receive orders collect payments electronically deliver goods and provide all-time customer support Financial organizations act as intermediates in E-Commerce by accepting payment authorization and enabling sellers to notify logistics organization
1 - E-Commerce business models
Business models used in electronic commerce can be categorized into several groups These are:
1.Business-to-Business In this model a business uses its website to sell products to an intermediate buyer This buyer then sells the products to the consumer
2 - Business-to-Consumer B2C business model enables a business to sell products directly to the customers A customer goes to the business’ website views the product and can choose to order it The website sends information to the relevant people in the organization to dispatch the ordered product to the customer
3 - Consumer-to-Consumer Customers can sell their assets to other consumers using a C2C model Such assets include residential property machinery vehicles etc A customer publishes information about their asset on their website and another customer may view and opt to buy it
4 - Consumer-to-Business In this model the business process starts with the customer He/she approaches a website that shows many companies that provide a product/service and places an estimate of the amount that he/she wants to spend for the product or service If a business can fulfill the customer’s requirements it approaches the customer
Other E-Commerce business models include Business-to-Government (B2G) and Government-to Business (G2B) models used by governments to exchange information with businesses support tenders auctions and for application submission functionalities