This is particularly dangerous as the data extracted may be that of credit card numbers, security passwords, transaction details etc. These channels provide information, news, libraries, education, travel, sports and reference, entertainment, shopping services, dialogues opportunities and e-mail etc. It is not always a direct message of persuasion but rather it is something which will educate the customers and convince them to buy the product or service. vi. 4. If properly done, one can achieve mass customization. Hence E-commerce does not involve face to face contact. Advantages 15. Just a quick one, do you have any tips for using GA to improve customer shopping experience? 1. Here you interact with the seller (Amazon), exchange data in form of pictures, text, address for delivery etc. 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. In the interest of water safety, this series will sail in a smaller pond. This is another model of selling products online that would no doubt be of interest to you. As in the brick-and-mortar environment, they simply cannot compete on price or product offering. Brand loyalty is related to this issue, which is supposed to be less important for online firms. 2 They can initiate requests for advertising and information from manufacturers. So as of today, e-commerce has completely changed the way we purchase … Hence, it is also one of the primary objectives of the companies which supply impetus for the robust growth in sales and overall profit. Viruses cause unnecessary delays, file backups, storage problems, and other similar difficulties. 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. For some, owning an e-commerce business can be rewarding and highly lucrative experience. He/she can then have the order delivered to an address other than the one listed on the records. An eCommerce website is an information technology method in which traders, businesses/distributors/marketers can sell products/services and the customer can purchase on that website electronically by using the internet on the mobile and computer. To begin with, a decision needs to be made between a hosted or custom installation. In this way the e-tailing shops lure the customers to make purchases on-line. Your customers can make a purchase anywhere and anytime, especially more people are getting used to shopping on their mobile devices. vii. The book gives a sound introduction to the fascinating world of E-Commerce. For example, the numbers of consumer brand retail sites like Amazon(dot)com and Flipkart(dot)com which normally provides information about products and also allows monetary transactions to happen over the internet. Sometimes e-advertising will provide hyperlinks to the company’s web site. Few of them will have truly secure jobs in the traditional sense, and all of them will have to be willing and able to constantly learn, adapt, make decisions, and stand by them. On safeguard to be taken regarding E-advertising is that advertisement had to be consistently monitored and controlled because if it is done poorly, it can severely damage the image of the company. (x) Large and Medium – These companies have designed their own websites to automate corporate purchasing. The Internet is a global web of computer networks that has made instantaneous and decentralised global communication possible. It means an e-commerce website is an online shop. Thus an e-tailer is a B2C business that executes a transaction with the final consumer. Using the Internet for e-commerce will allow customers to access rate information, place delivery orders, track shipments and pay freight bills. Article Marketing – Writing articles about products and services often helps in the process of educating the customers. Introduction to e-commerce5 The development of intranetand extranetis part of e-business. Everything you need to know about the E- Commerce. Big e-tailing sites like Ebay(dot)com and Amazon(dot)com are making great business in this country. In this model, companies such as Shipwire are commissioned to handle the product side of the business, on behalf of the retailer. Broadly, promotional activities can be classified into two categories: Online promotion is concerned with submitting your site to search engine. Electronic payments are playing a great role in import and export business. The e-commerce division, formulates strategy in the light of corporate strengthens and weaknesses. So far, success stories in e-commerce have forced large business with deep pockets and good funding to invest in creating on-line websites. The users need to pay an Internet provider-to be hooked up to it through their computers. E-tailers can be pure play businesses like amazon(dot)com or businesses that have evolved from a legacy business, Tesco(dot)com. These were both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders or invoices electronically. Customers need to be serviced pre-sales as well as post sales. viii. Adopting Electronic Fund Transfer System: Company management has to make agreement with acquiring bank, Credit Card Company and payment gateway to ensure that it is able to receive and make payments electronically through modes like credit cards, smart cards, e-cash etc. E-commerce allows for new products to be created and existing products to be customized in innovative ways. Mobile phones impose very different constraints than desktop computers. Driven by increased competition in the global marketplace, firms are reducing the number of employees down to a core of essential staff and outsourcing whatever work they can to countries where wages are significantly less expensive. The broadest definition of e-commerce is "the conduct of transactions by electronic means." The primary goal of an e-commerce site is to sell goods and services online. This attracts hackers, crackers and everyone with the knowledge of exploiting loopholes in a system. 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. E-commerce is a vital link in the support of logistics and transportation services for both internal and external customers. Parcel shipments can be tracked and proof of delivery quickly confirmed. On the World Wide Web, companies move beyond geographic limits to reach wider audience. 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. A search engine can come up with the best music deals, for example, yet consumers continue to flock to trusted entities such as HMV. Virtual Communities are online communities created by means such as chat rooms and specifically designed sites like, where people can interact with each other having common interest using the internet. The systems used the switched public telephone network in dial-up and leased line modes. Your email address will not be published. E-commerce service designers now use multi-level identification protocols like security questions, encrypted passwords (Encryption), biometrics and others to confirm the identity of their customers. As in the brick-and-mortar environment, they simply cannot compete on price or product offering. 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. FE International - No. Once a kink in the armor is discovered, they feed the system (and users) with numerous bits of dubious information to extract confidential data (phishing). Marketing, Business Transactions, Methods, E-Commerce. iv. E commerce ppt 1. In this sense, the merchant never sees or touches the products, which has some unique advantages over adopting a more traditional order fulfilment model. 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. Cleverly crafted strategies can sift a part or the entire amount being transferred from the user to the online vendor. The cost of website design, software, hardware, maintenance of website, online distribution cost and invested time, are also factored in, while deciding the cost of providing a service or a product online. Channels 10. You don’t need to look far to see the potential of e-commerce businesses. The customers also get benefited from the fact that he/she does not need to physically visit the shop for making the purchase. The nature of work and employment will be transformed in the digital age; it is already happening before our eyes. Here we focus on digitally enabled commercial transactions among organizations and individuals. E-marketing provides much better return on the investment made by the marketer. 3. 5. 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. E-commerce is a popular term for electronic commerce or even internet commerce. There are three main fulfillment models associated with e-commerce that dictate the role of the retailer as well as the way in which a product is stored and distributed to the end-user. Service Perspective. 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 danger of hackers accessing files and corrupting accounts adds more stress to an already complex operation. That said, wholesale offers the longer-term benefits of higher margins and allows greater scope for building a truly differentiated brand. But the personal information so collected must be used for stated business purposes. Enhanced Service- Development of E-Commerce equipped domestic providers to offer more services to clients. These business transactions occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer or consumer-to-business. The management needs to view electronic commerce potential in the light of the competition and not just as technological advancement. Internet Strategies for Business and Key Success Factors in E-Commerce: Internet users are better educated, better informed. Online Banking is also known as electronic banking, Net banking, virtual banking and internet banking online banking is defined as automated delivery of new and traditional banking products and services through electronic and interactive communication channels. New selling models such as shareware, freeware are emerging to maximize the potential of the internet. I’d start by looking at purchase pathways; identifying where your potential customers are dropping off the site. The production systems are integrated with finance, marketing, and other functional systems, as well as with business partners and customers. In addition, carrier comparison and assignment allows for instant access to a database containing the latest rates, discounts, and allowances for most of major carriers, thus eliminating the need for unwieldy charts and tables. Brand loyalty is related to this issue, which is supposed to be less important for online firms. E-commerce enables shippers, freight forwarders and trucking firms to streamline document handling without the monetary and time investment required by the traditional document delivery systems. Cost Efficiency- At the beginning of the internet age in the 1990s, creating websites was a costly undertaking. There is no guarantee of supplying an error-free product. Customer to Customer or C2C refers to E-Commerce activities, which uses an auction style model. After the sale, customers might have queries related to the usage, repair or enhancement of the products or services that they have already purchased. E-commerce serves as the best channel of communication. Advertisements- With direct marketing and customization comes as one-to-one or direct advertisement, which is much more effective than mass advertisement. Nowadays companies are transforming themselves into e-commerce enabled organizations. So, management needs to incorporate the impact of e-commerce on its human resource management practices. For example, France has certain language and cultural laws that must be obeyed. iii. In many ways, electronic cash, which can be backed by currency or other assets, represents the biggest revolution in currency since gold replaced cowry shells. Another form of E-commerce was the airline and railway reservation system. 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. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Dropshipping is a great option to have, particularly when starting out with an e-commerce business. Video Marketing – In this kind of e-marketing, a video will be shared describing the usage and benefits of the product or a service. Paperwork is significantly reduced and the shipping department will therefore be more efficient. By definition it covers a variety of business activities which use internet as a platform for either information exchange or monetary transaction or both at times. Electronic commerce establishes good relations between companies, customers and suppliers (Manzoor, 2010) Online sales may be considered an activity of electronic commerce; it … ii. For example – tele workers and online auctions are C2B processes. They include electronic malls that guarantee legitimacy of transactions. Two way interactions are now possible in video conferencing used for employee training and education. Sellers can sell their products by using E-commerce. Instagram – It is cost-effective because these platforms allow business to create profiles for free. They also provide customized products and services. E-Commerce also allows suppliers to gather personalized data on customers. Devising a strong online marketing campaign involves spending money, the cost of which is ultimately borne by the customer. Most of the time, it refers to the sale of products via Internet, but the term eCommerce also covers purchasing mechanisms via Internet (for B-To-B). A customer’s transportation costs and performance can be analysed, thus helping the customer negotiate rates and improve service. This involves the transaction of goods and services, the transfer of funds and the exchange of data. Electronic commerce and the internet are fundamentally changing the nature of supply chains, and redefining how consumers learn about, select, purchase, and use products and services. The major different types of E-Commerce are: 1. Business to Business or B2B refers to E-Commerce activities between businesses. In addition management needs to form security policy. Mass customization enables manufacturers to create specific products for each customer, based on his or her exact needs. Even popular social networking sites like Facebook(dot)com are allowing people to promote and sell products and services online and the introduction of computer and mobile based e-commerce application software like Shopify provides evidence of how e-commerce have boomed over the past 5 years. The internet has simplified the import and export business. Besides this, understanding of consumer behaviour, marketing tools and financial aspects is as crucial as designing interactive E- Commerce websites. It facilitates direct reach of customers and the bi-directional nature of communication. 3. Please Note: Other types of e-commerce also exist.For example; Business to Government E-commerce (B2G) : where the transaction takes place between a business enterprise and a government organization. E-commerce technology ensures two way communications between buyer and seller. Customers have to feel confident about the integrity of the payment process before they commit to the purchase. E-tailing refers to retailing over the internet. Modern information and communication technologies have revolutionized the commercial world. New forms of marketing will also emerge, such as web-based advertising, linked advertising, direct e-mail, and an increased emphasis on relationship marketing. For this purpose the business partners have to couple their business processes and their ICT systems. Welcome to EconomicsDiscussion.net! Hence the area of the market can be increased. Feature # 6. The power of e-commerce should not be underestimated as it continues to pervade everyday life and present significant opportunities for small, medium, and large businesses and online investors. The meaning of electronic commerce has changed over the last 30 years. The only tools needed to take advantage of this solution are a personal computer and an internet browser. Company management has to make decision regarding in sourcing or outsourcing. Owning an e-commerce business is the way forward! x. Markets- The physical market disappears as does the need to deliver the goods to the marketplace. The COVID-19 outbreak saw e-commerce sales spike 25% in March 2020 alone. Instead, orders are sent directly to the manufacturer, who is responsible for storing the items and shipping them to the customer. Major threats to present day e-commerce may be listed thus: i. Impact 14. As even the service can also be done through the net immediately, the customer service will be ballooned. Need 8. Business Applications. Ecommerce is an umbrella term that covers everything there is to do with buying or selling online, and can sometimes be otherwise written as “E Commerce,” “e-commerce,” or “eCommerce.” Creating and maintaining an e-tailing web site is an expensive process. E-business is ever ything to do with back-end systems in an organisation. 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