E commerce

By:

Priyanshu Nagori

Commerce..Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer.

It comprises the trading of something of economic value such as goods, services, information, or money between two or more entities.

Transacting or facilitating business on the Internet is called ecommerce. Ecommerce is short for “electronic commerce.“

E-commerce is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet.

Any form of business transaction conducted electronically is e-commerce.

Types of e - commerce

1. Business-to-Business (B2B)

2. Business-to-Consumer(B2C)

3. Consumer-to-Consumer (C2C)

4. Consumer-to-Business (C2B)

1. Business-to-Business (B2B)

Website following B2B business model sells its product to an intermediate buyer who then sells the product to the final customer. As an example, a wholesaler places an order from a company's website and after receiving the consignment, sells the end product to final customer who comes to buy the product at wholesaler's retail outlet.

2. Business-to-Consumer(B2C)

Website following B2C business model sells its product directly to a customer. A customer can view products shown on the website of business organization. The customer can choose a product and order the same. Website will send a notification to the business organization via email and organization will dispatch the product/goods to the customer.

3. Consumer-to-Consumer (C2C)

Website following C2C business model helps consumer to sell their assets like residential property, cars, motorcycles etc. or rent a room by publishing their information on the website. Website may or may not charge the consumer for its services. Another consumer may opt to buy the product of the first customer by viewing the post/advertisement on the website.

Consumer - to – Business(C2B)

In this model, a consumer approaches website showing multiple business organizations for a particular service. Consumer places an estimate of amount he/she wants to spend for a particular service. For example, comparison of interest rates of personal loan/ car loan provided by various banks via website. Business organization who fulfills the consumer's requirement within specified budget approaches the customer and provides its services.

The ProcessOf

E-Commerce

…....

A consumer uses Web browser to connect to the home page of a merchant's Web site on the Internet.

The consumer browses the catalog of products featured on the site and selects items to purchase. The selected items are placed in the electronic equivalent of a shopping cart.

When the consumer is ready to complete the purchase of selected items, she provides a bill-to and ship-to address for purchase and delivery

When the merchant's Web server receives this information, it computes the total cost of the order--including tax, shipping, and handling charges--and then displays the total to the customer.

The customer can now provide payment information, such as a credit card number, and then submit the order.

When the credit card number is validated and the order is completed at the Commerce Server site, the merchant's site displays a receipt confirming the customer's purchase.

The Commerce Server site then forwards the order to a Processing Network for payment processing and fulfillment.

…

M-commerce is the buying and

selling of goods and services

through wireless handheld

devices such as cellular

telephone and personal digital

assistants. Known as next-

generation e-commerce.

Examples: Mobile banking,

Mobile ticketing,

mobile purchase,

Mobile money

transfer, etc

M-commerce

In simple words:

M-commerce = E-commerce+wireless

web

PROS&

CONSOF 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.

PROS

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.

CONS

Any one, good or bad, can easily start a business. And there are many bad sites which eat up customers’ money.

There is no guarantee of product quality.

Mechanical failures can cause unpredictable effects on the total processes.

As there is minimum chance of direct customer to company interactions, customer loyalty is always on a check.

There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways, all are always prone to attack.

Future Of E-commerce In INDIA

"E-commerce in India is a $11 billion

market, and is estimated to reach $20

billion by 2015, growing at a

CAGR(compound annual growth rate) of

37% over 2013-15," Motilal Oswal

Securities said in its report on e-

commerce.

By the end of 2015 e-commerce

would be providing more or less sixty

thousand (60,000) jobs.