E-commerce is a modern business methodology addressing business organizations' requirements.
It involves buying and selling goods or services through electronic mediums like the Internet.
It is a digitally enabled commercial transaction between organizations and individuals.
Key Features of E-commerce
Non-Cash Payment: Enables payments via credit cards, debit cards, electronic fund transfers, etc.
24x7 Service Availability: Offers services anytime, anywhere.
Advertising/Marketing: Increases the reach of product and service advertising.
Improved Sales: Facilitates order generation anytime, anywhere.
Support: Provides pre- and post-sales assistance.
Inventory Management: Automates and improves efficiency.
Communication Improvement: Faster and more reliable communication with customers and partners.
Traditional Commerce vs. E-Commerce
Traditional commerce relies heavily on person-to-person information exchange, while e-commerce uses electronic channels.
Traditional commerce involves synchronous communication and manual intervention, whereas e-commerce uses asynchronous communication and automated systems.
E-commerce can easily establish and maintain uniform strategies, unlike traditional commerce.
E-commerce provides a universal platform for business activities, whereas traditional commerce lacks a uniform platform for information sharing.
E-commerce vs. E-business
E-business: Digital enabling of transactions and processes within a firm, involving information systems under the firm’s control; doesn't include commercial transactions across organizational boundaries.
Technological Building Blocks of E-commerce
Internet
World Wide Web
HTML
Mobile platform and apps
Methods of Selling
Conversational E-commerce: Selling via social media posts.
E-commerce Marketplaces: Selling products on platforms for a fee or revenue share.
Branded Online Shops: Online shops owned and managed by businesses.
Advantages of E-commerce
To Organizations:
Expanded market reach with minimal capital investment.
Reduced costs through digitized information.
Improved brand image and customer service.
Simplified and faster business processes.
Increased productivity.
To Customers:
24x7 support and convenience.
More options and quicker delivery.
Comparison and selection of better options.
Access to reviews and virtual auctions.
To Society:
Reduced traffic and pollution.
Access to products for less affluent people.
Access to services in rural areas.
Improved public service delivery.
Disadvantages of E-commerce
Technical:
Lack of system security and reliability.
Rapidly evolving software development.
Network bandwidth issues.
Compatibility issues with existing systems.
Non-Technical:
High initial costs.
User resistance and lack of trust.
Security and privacy concerns.
Lack of physical touch and feel of products.
Inconvenient internet access for some customers.
Sharing Economy
Leveraging idle assets, goods, and skills via digital platforms.