E-Commerce

E-commerce and its types

E-Commerce: E-Commerce is the process of buying and selling goods, services, and information through the Internet. It refers to electronic transactions done over a communication network i.e. internet.

Note: E-mail, Fax, Online payment, Online Security, Web services, and Information sharing are some of the widely used technology in E-Commerce

Types of E-Commerce:

a) Business to Customer (B2C): The business relationship between the organization and the final customer. An E-Commerce website plays an intermediary role between the business organization and the final consumer. amazon performs B2C.

b) Business to Business (B2B): This type of e-commerce is conducted between companies. The individual consumer cannot buy from this type of e-commerce. For example, manufacturing companies sell goods to wholesalers. alibaba performs B2B.

c) Consumer to Consumer (C2C): This type of e-commerce is conducted between consumers. For example, second-hand or used products can also be brought online using sites like Amazon, and Flipkart. These platforms act as a third party where consumers can directly interact with each other and perform transactions between them.

Pros and Cons of E-Commerce

Advantages / Pros / Merits of E-Commerce

1. We can buy and sell goods and services anytime anywhere.
2. With no geographical limitations, we can expand our business globally.
3. Physical stores and shops are not required.
4. Low operation cost.
5. Customers will have a wide range of choices.
6. Customers can provide real-time feedback and suggestions.

Disadvantages / Cons/ De-merits / Limitations of E-Commerce

1. It works only on networks such as the Internet.
2. Chances of electronic frauds and scams.
3. Technical failure may hamper the whole business operation.
4. Technical skill and knowledge required to operate.
5. Goods and services may not be real as shown in e-commerce.
6. International laws may restrict performing business overseas.

Similarities and Differences between Traditional Commerce and E-commerce.

Some Important Terminologies

a) M-Commerce: It refers to Mobile-Commerce which is an extended version of e-commerce where buying and selling goods, services, and information are done through handheld devices such as mobile phones, tablets, PDAs, etc. M-commerce includes websites and most apps that provide features for performing transactions. Some examples of M-Commerce are purchasing airline tickets, movie tickets, hotel booking, top-up recharge, fund transfer, etc.

Importance of M-Commerce:

1. Widely used technology. Almost every people in these days used a mobile phone.
2. Portable enough to perform transactions anytime anywhere.

b) Online payment: Online payment is the process of performing transactions without using cash. It generally refers to paperless transactions using modern-day solutions i.e. payment gateway. through internet. Several modes of E-payments are credit cards, debit cards, electronic fund transfers (EFT), e-cheques, etc.

Advantages of Online payment:

1. Cashless/paperless transaction.
2. Great safety and security from physical theft.
3. Virtual fund transfer minimizes human interaction
4. Can be used to perform online shopping.

Disadvantages of Online Payments:

1. Security risks: Online payments involve the transfer of sensitive financial information over the Internet, which can be vulnerable to cyber threats such as hacking and phishing.
2. Privacy concerns: Some people may be concerned about sharing their personal and financial information online, particularly if they are not familiar with the security measures taken by the payment processor or merchant.
3. Limited payment options: Not all online payment systems accept all types of payment methods, and some may not be available in certain countries.
4. Potential for fraud: There is a risk of fraud when making online payments, as scammers may attempt to trick people into providing their financial information or making payments to fake websites or organizations.
5. Fees: Some online payment systems may charge fees for their services, which can add to the overall cost of a transaction.