introduction to e commerce

During the 1980s, online shopping was also used extensively in the UK by auto manufacturers such as Ford, General Motors and Nissan. It’s suggested to start this process by identifying successful companies already working in this sphere. By using E-commerce importers can make enquiries about the products, their manufacturers, price, quality, other terms and conditions etc. 1. 4. (v) Lower Cost – On-line Marketers avoid the expense of maintaining a store and the costs of rent, insurance and utilities. 4. The following are the impacts of e-commerce on the global economy: i. 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. New technologies require new organizational approaches. 1. Introduction to E Commerce and Internet. The various objectives of the e-commerce can be laid down as follows: The business development can be done through the e-commerce being the primary and the basic object. 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. Types 7. 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). Introduction to e-Business . E-commerce will close the link between customers and distribution centres. The firewall prohibits hackers from entering corporate network via internet. Therefore, it is necessary that advocates, accountants and executives of the companies must understand legal, trade, cultural and monetary issues of the countries with which their company has to deal. In E-Commerce B2B, transactions are usually carried out through Electronic Data Interchange or EDI. By using e-commerce, companies can reduce costs, improve data accuracy, streamline business processes, accelerate business cycles, and enhance customer service. Now builders can use virtual reality technology on their website to demonstrate three dimensional floor plans to buyers. E-Commerce is Technology-Enabled: Traditional commerce is taking place since times immemorial but E-commerce is result of integration of digital technology with business processes and commercial transactions. E-Commerce – Advantages: Convenience, Information, Fewer Hassels, Lower Cost, Relatively Building, Audience Sizing, On-Line Marketing and a Few Others. … They can use software agents to search for and invite offers from multiple sellers. 3. For instance, the structure of the organizational unit dealing with E- commerce might have to be different from the conventional sales and marketing departments. E-advertising will only be published on the internet. The first recorded Business to consumer was Gateshead SIS/Tesco in 1984. is a collection of different ways of using technology that allows people to connect, explore interests, … But the personal information so collected must be used for stated business purposes. Introduction to E-Commerce 2. Faster Information- The information superhighway permits speedy exchange of data across the world, which also means new information, is available faster. 3. often used interchangeably but at its core e-commerce is much broader than this – it embodies a concept for doing business online The idea of extracting business intelligence from the website is called web framing. 3. E-commerce (electronic commerce) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. Email Marketing – Direct emails are being sent to potential customers describing benefits of the product or service. Japan is seen as a global leader in m-commerce. Vi­ruses cause unnecessary delays, file backups, storage problems, and other similar difficulties. Privacy Policy3. Unlike e-advertising, e- marketing is very subtle. These channels provide information, news, libraries, education, travel, sports and reference, entertainment, shopping services, dialogues opportunities and e-mail etc. Firewalls are another common way of implementing security measures. The meaning of electronic commerce has changed over the last 30 years. Already the world’s largest, China’s e-commerce market has grown by 50% per year since 2011, and is expected to be worth USD$1 trillion by 2019. One can easily see how those orders could be received by the impostor without arousing suspicion. 2. E-commerce operates digitally. Read more. (iv) Quick Adjustment to Market Conditions by Marketers – Companies can quickly add products to their offering and change prices and descriptions. E-commerce needs to be used as a strategic tool to gain and sustain competitive advantage in the industry. i. Electronic Commerce (e-Commerce) is a general concept covering any form of business transaction or information exchange executed using Information and Communication Technologies (ICTs). 9. The information will be used subject to terms and conditions, for advertising purposes. Besides this, understanding of consumer behaviour, marketing tools and financial aspects is as crucial as designing interactive E- Commerce websites. Managing Ethical, Cultural and Legal Issues: There exist big ethical and cultural differences between countries. For instance, a book retailer would be a B2C company such as E-commerce serves as the best channel of communication. They might have ques­tions about customization and accessories. CCM is a leading international tech website. They may also create and submit bills of lading, place a cargo order, analyse charges, submit a freight claim, and carry out many other functions. Everything you need to know about the E- Commerce. This course will give you an introduction to e-commerce and discuss the environmental challenges and strategic challenges that organizations face. 2. x. Markets- The physical market disappears as does the need to deliver the goods to the marketplace. Introduction to E-Commerce most of the information is still relevant. Something may be ethical in our country but unethical in another country. 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. Then e-commerce division communicates the vision of top management throughout the organization and annual objectives are identified. 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. Online real estate services are provided by websites that show listing of houses, shops and flats put up for sale and rent. There are several options through which the e-marketers can promote their product and services: 1. 1.3. It has some unique ways to put a business transaction in place. Latest update on Friday 22 June 2018 à 03:40 by Olivia Long. E-commerce requires special finance and accounting systems. Today, we can configure not only computers but also cars, jewellery, gifts, and hundreds of other products and services. The term electronic commerce or e-commerce refers to any sort of business transaction that involves the transfer of information through the internet. Devising a strong online marketing campaign involves spending money, the cost of which is ultimately borne by the customer. Data security and network security are major issues. Thus the book not only examines technologies … Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Step 1: Choose your e-commerce niche . These new buyer capabilities mean that the exchange process in the age of information has become customer initiated and customer controlled. In these days it becomes the mandate of the companies to double its customers, and this can be done by rendering the value add service and maintaining the quality. These include demand risk, innovation risk, and inefficiency risk. New forms of marketing will also emerge, such as web-based advertising, linked advertising, direct e-mail, and an increased emphasis on relationship marketing. Internet Strategies for Business and Key Success Factors in E-Commerce: Internet users are better educated, better informed. Introduction to E-Commerce, 2/E, by Rayport and Jaworksi, can be used as the principles book for e-commerce. If properly done, one can achieve mass customization. Before the sale, customers might have queries about product features that are not mentioned on the website. Customers have to feel confident about the integrity of the payment process before they commit to the purchase. So MNCs have to study culture of each country and develop corporate ethical code. In fact, small businesses can now build their own sites. The application uses encryption technology to secure business transactions. Organizations are to be restructured and re-engineered in to a network based organization. This attracts hackers, crackers and everyone with the knowledge of exploiting loopholes in a system. 3. A search engine can come up with the best music deals, for example, yet consumers continue to flock to trusted entities such as HMV. 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. Building customer loy­alty to a specific site is not an easy task. This helps real estate companies to attract buyers. Not many businesses realise that even e-business cannot survive over the long term without loyal customers. Customization – E-commerce provides for customization of products and services, in contrast to buying in a store or ordering from a television, which is usually limited to standard products. This evolution is mainly driven by forces in four categories: It refers to that part of e-commerce that entails the sale of product merchandise and does not include sale of services, namely railway tickets, airlines tickets and job portals. vi. Customers do not often get to check the actual dimensions of the products and the quality displayed there. As the years passed, building websites became less and less expensive. (c) Floating Advertising – The floating e-advertising is a kind of a floating banner on the web site, which tempts the visitor to click on it. 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. For example – tele workers and online auctions are C2B processes. Users can send e-mail, exchange views, shop for products, and access news and business information. As even the service can also be done through the net immediately, the customer service will be ballooned. The systems used the switched public telephone network in dial-up and leased line modes. Practical case studies offer a useful reference for dealing with various issues in E-commerce such as latest applications, management techniques, or psychological methods. Data protection and the integrity of the system that handles the data are serious concerns. Hence the area of the market can be increased. E-marketing provides much better return on the investment made by the marketer. There are no physical market places and the entire process of marketing and selling of goods, takes place on-line or electronically. As in the brick-and-mortar environment, they simply cannot compete on price or product offering. Wider Audience- The internet provides businesses, access to millions and millions of people. Benefits can be measured through economic indicators like return on investment or through indicators like numbers of online customers, customer satisfaction and business partner satisfaction. Company management has to take steps to promote the website. Nowadays companies are transforming themselves into e-commerce enabled organizations. E-commerce provides the following main advantages: (i) Convenience – Customers can order products or services 24 hours a day wherever they are. There is no guarantee of supplying an error-free product. As content delivery over wireless devices becomes faster, more secure and scalable, some believe that m-commerce will surpass wire line e-commerce as the method of choice for digital commerce transactions. Ultimately, web sites can provide a universal, self-service system for customers. Here we focus on digitally enabled commercial transactions among organizations and individuals. 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. Once the customer fills the cart with items that he or she has shopped, the site should take the customer towards the payment gateway, which collects money electronically. 2. 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. Industries can purchase raw materials, components etc. 1.2. Brand loyalty is related to this issue, which is supposed to be less impor­tant for online firms. Exporters can also make enquiries about suitable customers. Since then people began to associate a word “E-commerce” with the ability of purchasing various goods through the Internet using secure protocols and electronic payment services. Introduction to E-commerce discusses the foundations and key aspects of E-commerce while focusing on the latest developments in the E-commerce industry. By highlighting the customer service, the companies are trying to subjugate a lion-share in the market. This may well be true for the Asia-Pacific where there are more mobile phone users than there are Internet users. Logistics is a specialized function, so most sellers outsource it to third party logistics providers. New selling models such as shareware, freeware are emerging to maximize the potential of the internet. All these intermediaries add to transaction costs. This can force larger brick and mortar retailers to open an online division. Consumer Search is not Efficient or Cost-Effective: On the surface, the electronic marketplace seems to be a perfect market, where worldwide sellers and buyers share and trade without intermediaries. It is often similar to television commercials. It is a replica of a physical market place in the virtual world. As far as offline promotion is concerned, company can advertise the web address through visiting cards, letter pads, bill books etc. It can be regarded as the internet front of any traditional retailer. 2. For this purpose the business partners have to couple their business processes and their ICT systems. In general, Internet users respond to messages aimed at selling, and receive information about products and services. The ecommerce website of a company should put an easy process in place so that the customer browsing through the site can place an order. The customers are free to make their own decisions regarding the purchase, at their own leisure time. Reviewed in the United States on April 11, 2014. Moreover, web team needs to search related sites and contact them so that their pages provide link to their web pages. An e-business is a company that can adapt to constant and continual change. 2. iii. Order completion is smoother than that of physical shops. This type of corporate change must be planned and managed. 1. Customers may have trust issues before providing their personal details and credit card details. Digitally enabled transactions include all transactions mediated by digital technology and platform; that is, transactions that occur over the Internet and the web. You reserve the right to access and change your personal data, aswell as the right to request its deletion within the limits permitted by law. There are three types of destinations that cater to retail sales: ii. The term "e-Business", therefore refers to the integration within the company, of tools based on information and communication technologies (generally referred to as business software) to improve their functioning in order to create value for the business, its clients, and its partners. Need 8. Business Applications. The main purpose of e-advertising is to reach out to a wider range of customers. Electronic marketing (e-marketing) is also known as internet marketing, web marketing and digital marketing on on-line marketing. Customer to Customer or C2C refers to E-Commerce activities, which uses an auction style model. E-Advertising is the mechanism of promoting products or services on-line. The explosive growth of internet, commerce has captured the public’s imagination. So far, success stories in e-commerce have forced large business with deep pockets and good funding to invest in creating on-line web­sites. 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. 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. To stop this problem from happening, a website must be scalable, or upgradable on a regular basis. A customer’s transportation costs and performance can be analysed, thus helping the customer negotiate rates and improve service. (xii) New groups, Bulletins board systems (BBSs) and Web committees help also buyers, sellers and people in general to have access to valuable information on diverse topics including information of cultivation for farmers. E-business includes customer ser vice (e-service) and intra-business tasks. Share Your Word File Ordering Systems- Taking orders from customers can drastically be improved if it is done online. 2. They also provide discounts and offers to engage the customers. TOS4. Objectives 5. Internet usage has spread with recent development of the user-friendly World Wide Web (www) browser software such as Netscape Navigator and Microsoft Internet Explorer. A 2010 survey by Internet World Stats showed there are 266,244,500 internet users in North America. Essentials and Procedures 11. Electronic Business - the transformation of key business processes through the use of Internet technologies. 5. The production systems are integrated with finance, marketing, and other functional systems, as well as with business partners and customers. The marketer can easily monitor and track the results of the campaign. Product customization ensures that goods are tailor made as per the requirements and preferences of customers. Customers define what information they need, what products or services they are interested in and what prices they are willing to pay. Hence, e-tailing is a subset of e-commerce, which encapsulates all “commerce” conducted via the Internet. Big e-tailing sites like Ebay(dot)com and Amazon(dot)com are making great business in this country. Between email and databases, there's a lot of data that needs to be protected. Technology makes it possible for anyone to buy or sell practically anything online. If the company expects 2 million customers and 6 million show up, website performance is bound to experience degradation, slowdown, and eventually loss of customers. Advertisements- With direct marketing and customization comes as one-to-one or direct advertisement, which is much more effective than mass advertisement. E-Commerce also allows suppliers to gather personalized data on customers. 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. Using the Internet for e-commerce will allow customers to access rate information, place delivery orders, track shipments and pay freight bills. 1. If products get damaged or stop functioning after a while, or a wrong product is delivered—the ecommerce seller must ensure the flow of products in the reverse direction—known as reverse logistics—where goods flow from customer to the seller. 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. Simple Definitions 1.1. Customers might get addicted to on-line shopping, which in turn boost sales and increase revenue. 4. Managerial Issues 13. Threats to the system Viruses, worms, Trojans are very deceptive methods of stealing information. Introduction to E-commerce by Sean K 1. E-commerce makes it easier for customers to do business with companies: Anything that simplifies the process of arranging transportation services will help build companies’ business and enhance shareholder value. And such threats are in­creasing day by day in this digital, networked world. 2. Although the Internet became popular worldwide around 1994 when the first internet online shopping started, it took about five years to introduce security protocols and DSL allowing continual connection to the Internet. iv. Corporate image means trust, which is necessary for direct sales. The management needs to view electronic commerce potential in the light of the competition and not just as technological advancement. The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. INTRODUCTION TO E-COMMERCE. Sellers can sell their products by using E-commerce. It reduces the cost of marketing campaign. E-Commerce is the exchange of goods and services between (usually) independent organizations and/or persons supported by a comprehensive usage of powerful ICT systems and a globally standardized network infrastructure. In developing countries cost may exceed benefits in initial years of e-commerce initiatives. All of these forms of internet based business platforms are known as e-commerce. The websites can be accessed from anywhere around the globe at any time therefore it possess the feature of universality. In E-commerce buyers and sellers meet in cyber space rather than physical place. E-Tailing is the abbreviation of electronic retailing. Customers can manage the increasingly Complex movement of products and information through the supply chain. Verified Purchase. Feature # 6. Electronic payments are playing a great role in import and export business. (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. It is more cost effective when compared to the traditional forms of advertising. Electronic commerce, known as E-Commerce, occurs daily when sellers and buyers use the internet to conduct business transactions. Impact 14. 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.” Any variation of the spelling is correct, and it all describes the same act of performing business via the internet. This will ensure that each freight bill is efficiently reviewed for accuracy. Many websites are providing online real estate services. Products for each customer, based on his or her exact needs the website than cost. A great role in import and export business better educated, better informed through at! Of transactions by electronic means. and millions of people to check the actual dimensions of the is. Information systems today, we can perform business transactions that take place online the! 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