E COMMERCE

Historyy Originally, electronic commerce was

identified as the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These were both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders or invoices electronically. The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce.

What is E Commerce?y Electronic commerce commonly

known as ecommerce or e-comm.

e

commerce,

consists

of the buying and selling of products or services over electronic systems such as the Internet and other computer networks.

What is E Commerce? It is more than just buying and selling

products online. It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and services. E-Commerce can also help improve your

business processes and information flows by enabling you to communicate with other business.

Types of E Commerce

B2B (Business-to-Business)y Companies doing business with each other

such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable.

B2C (Business-to-Consumer)y Businesses

selling to the general public typically through catalogs utilizing shopping cart software. By dollar volume, B2B takes the prize, however B2C is really what the average has in mind with regards to ecommerce as a whole.

C2B (Consumer-to-Business)

y A consumer posts his project with a set budget

online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. It empowers consumers around the world by providing the meeting ground and platform for such transactions.

C2C (Consumer-to-Consumer)y There are many sites offering free classifieds,

auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995.

m-Commercey It deals with conducting the transactions

with the help of mobile. The mobile device consumers can interact each other and can lead the business. Mobile Commerce involves the change of ownership or rights to utilize goods and related services.

Advantages of E Commerce

Faster buying/selling procedure, as well as easy to

find products.

Buying/selling 24/7. More reach to customers, there is no theoretical

geographic limitations.

Low operational costs and better quality of services. No need of physical company set-ups. Easy to start and manage a business. Customers can easily select products from different

providers without moving around physically.

Disadvantages of E Commerce

y Any one, good or bad, can easily start a business.

And there are many bad sites which eat up customers money.

y There is no guarantee of product quality. y Mechanical failures can cause unpredictable effects

on the total processes.

y As there is minimum chance of direct customer to

company interactions, customer loyalty is always on a check. and thus an ecommerce site, service, payment gateways, all are always prone to attack.

y There are many hackers who look for opportunities,

Benefits Of Ecommerce

Ecommerce allows people to carry out businesses without the barriers of time or distance. The direct cost-of-sale for an order taken from a web site is lower than through traditional means (retail, paper based), as there is no human interaction during the online electronic purchase order process. Also, electronic selling virtually eliminates processing errors, as well as being faster and more convenient for the visitor.

Ecommerce is ideal for niche products. It is the cheapest means of doing business.

From the buyers perspective also ecommerce offers a lot of tangible advantages.y Reduction in buyers sorting out time. y Better buyer decisions y Less time is spent in resolving invoice and order

discrepancies. y Increased opportunities for buying alternative products.

The strategic benefit of making a business ecommerce enabled, is that it helps reduce the delivery time, labour cost and the cost incurred in the following areas:Document preparation Error detection and correction Reconciliation Mail preparation Telephone calling Credit card machines Data entry Overtime y Supervision expensesy y y y y y y y

SUMMARY Ecommerce (e-commerce)

or electronic commerce, a subset of ebusiness, is the purchasing, selling, and exchanging of goods and services over computer networks (such as the Internet) through which transactions or terms of sale are performed electronically. Lots of opportunities that you can choose from. It is a best and easy way of communicating on the best companies here and in the other countries.

Thank you !Reporters: Ailene Ponio Maria Cecilia Pagaran BSA 2a