E-COMMERCE

Ecommerce Refers to the paperless exchange of business information using

network based technologies

Any form of business transactions in which the parties interact electronically rather than by physical exchange of document or direct meetings

Doing business online

Buying & selling products and services through web store fronts

Buying &selling products information's &services over internet

It encompasses the entire online process of developing, marketing ,selling, delivering

Servicing &paying for products & services

It uses Internet, intranet & extranet to accomplish online transaction with customers and business partners

Reasons for the growth of E commerce

Age of competition

Globalization of economy

Commercialization &privatization of internet

High labour cost and lesser available time

Higher volume of sales at lower profits

Shorter product lifecycles due to changes in technology

Faster communication of information over computer n/w

combination of telecommunication & computer science results in emergence of new field –Information technology

Features of EcommerceIt’s a business strategy to cut down costs while

improving quality and increasing the speed of delivery of goods & services

It has ability to sell and purchase products /services information on computer networks

it is a solution for office automation and quick business transaction

It is a tool to improve intra business functioning like business re-engineering

It is a tool to improve inter business communication through easy and accurate interaction and information interchange

Importance of Ecommerce

Low set up cost:

Any body can easily set up a website, many organizations and training institutes who help customers in developing and launching webs sites.

To market a product large retail showrooms are not required just a web site showing the characteristics of the product including cost details are sufficient

Global free market:

Nobody can dominate the global market as it is present on the internet, anybody who can afford a computer and a telephone can fully access the internet and gain the information required

Importance of Ecommerce

Global access:

Since more than 200 countries are hooked onto the internet not only the global giants but even small organizations can participate actively at low cost and compete with stiff competition

Availability of technology:

Same technology like web servers browsers engine internet etc is used through the world therefore business can be easily conducted

Multiple opportunities:

By using E –commerce multiple activities like selling ,renting & purchasing etc can be performed under one roof

Importance of Ecommerce

Others

Ecommerce systems are being established for automating and enhansing many aspects of communication publishing marketing sales and customer service such as Customer researchPre sale enquiriesInformation publishingSalesAdvertisingPromotionsPublic relationsPurchasingTransactionsFunds TransferProduction DeliveryAfter sales serviceOngoing relation ship managementCustomer support

Pillars of Ecommerce

Electronic Information

Electronic relationships

Electronic Transaction

Objective of E commerce Conduct of distant business

To acquire latest technologies and improvement in the field

To help expand horizon of business and service

To create new services and business

Streamline procurement processTo cut down procurement timeTo cut down procurement costTo simplify procurement process

Use of competitive processesTo decrease the length of production cycleTo create competitive edge in the

respective fieldsTo improve and Maintain production

quality

Types of E -commerce

Business to consumer(B2C) Business to Business(B2B)

Inter organizational Internal business Process

Intra organizational Consumer to consumer(C2C)

Business to consumerIts an application says that customer gives their

specification and the manufacturers try and supply it

It makes business come closer to the consumer or customer to offer product & service with help of an attractive electronic market

Business is done by providing well designed web sites like normal shops in the market with product & services to be sold displayed with price & description

Browsers, Multimedia Hypertext Hypermedia are used to develop these sites

E-g: Home banking,Vedio on demand,Movies,games virtual universities market research

Business to Business(Inter Organizational)

E-com for intergenerational relationship

Enabling of existing relationship between two companies

It enables supplier management, Inventory management ,Payment management, channel management financial management distribution management sales force management

Customer to customer:

E business resolves around two individual who plays a designated role as buyer/seller teacher/student manager/office, etc

E-g E-mailing, E greetings, payments ordering & sending gifts

Advantages of E-com Reduces the distance in carrying out trade

thereby helps companies to have cheap and effective way of communication with suppliers& customers

An online store works 24 hours a day, 7 days a week ,365 day a year

The cost of setting up an E-com website is very low can be established with very little overheads or outlay.

More flexible to add and remove a product or products in a catalogues or brouchers

Advantages of E-com Being online it potentially gives exposure to prevesiouly untapped market segment .

Error reduction takes place highly as order don’t have to be rekeyed into order entry system

Buying & selling of items from any place using one computer and a internet connection

Avail services like financial service legal services medical advise from appropriate portals.

Can access large variety of goods easily

Advantages of E-com

wider choice and no wastage of time

Website helps the business to reach worldwide customer at a very low cost

Fund transfer is made faster

Large number of potential business partners can be quickly found and contacted using appropriate search enquires and E-mail correspondence

Middlemen such as retailer eliminated as a manufacturer can reach out directly to a customer

Disadvantages of E-com: Inability to touch and feel products as selling is online .This is a Psychological barrier when customer become familiar with online shopping this barrier is removed

Computer system never be safe .Hackers intercept transaction and cause problem for both customer and companies that operate on the internet

The average internet users are usually young highly educated man, women and elderly persons will not be reached

Disadvantages of E-com:

Problem to sell products to a target group other than young &highly educated

Internet access is not widely available

It’s a depersonalize transaction as it lacks social contact touch feel the product

Disadvantages of E-com: Spies or hackers can steal and misuse credit card and other smart card numbers

Portal have to be protected from virus affects and other vandalism

Online stores do not exist very longer as a result of large group of annoyed and dissatisfied customers as there is no one to guide like a shopkeeper

Short comings of online Shopping:Visual effects only

Time lag

Internet connectivity

Slow web sites

Search methods

Shipping & handling costs