E-Commerce

MIBIT 20401

Session II: Definitions and Content of

EC field /Advantages and limitations of field
 Objectives
• What is E-Commerce?
• Definition
• Advantages and Disadvantages of
E-Commerce
• Why eCommerce
 WHAT IS E-COMMERCE?
• Electronic Presentation of Goods and
Services
• Automated Customer Account Inquiries
• Online Order Taking and Payments
• Online Transaction Handling
• Automated Supply Chain Management
Solutions
• Customer Care and management Service
 What is e-Commerce? contd.
• Electronic Commerce (e-commerce) can be viewed from several perspectives.
– From a communications perspective, e-commerce is the delivery of information,
products and services, and payments through telephone lines, computer networks, etc.

– From an interface perspective, e-commerce involves various information and

transformation exchanges: B2B, B2C, C2C

– From a business process perspective, e-commerce is the applications of technology

toward the automation of business transactions and workflows.

– From a service perspective, e-commerce is a tool that allows firms, consumers and
management the ability to cut service costs, while improving the quality of goods and
increasing the speed of delivery of service.

– As a market perspective, eCommerce is a world-wide network. A local store can open

a web store front and find the world at its doorstep.

– From a online perspective, e-commerce provides the capability of buying and selling
products and information on the Internet.

– From a structural perspective, e-commerce involves various media: data, text, web
pages, Internet telephony, and Internet Desktop video.
 Definition of E-Commerce
“The buying and selling of goods and services over the Internet.”
• “E-commerce, or electronic commerce is the conduct of a financial
transactions by electronic means.  With the huge success of commerce on
the Internet, ecommerce usually refers to shopping at online stores on the
World Wide Web, also known as ecommerce Web sites. Ecommerce can be
business to business (B to B) or business to consumer (B to C)”.

• “E-commerce (electronic commerce or EC) is the buying and

selling of goods and services on the Internet, especially the World
Wide Web. In practice, this term and a newer term, e-business, are
often used interchangeably. For online retail selling, the term e-
tailing is sometimes used. “
 ADVANTAGES OF E-COMMERCE
• Lower Transactional Costs
• Economical
• Higher Margins
• Saves time and efforts
• Convenience of shopping at home/Comparison
Shopping
• Wide variety / range of products and offers are
available
• Good discounts / lower prices
• Get detailed information of the product
• Better and Quicker Customer Service
Advantages of Ecommerce contd.
• Digital Convergence
• Anytime, Anywhere, Anyone
• Changes in Organization’s Make-up
• Widespread Access to IT
• Increasing Pressure on Operating Costs and
Profit Margins
• Demand for Customized Products and Services
• Speed or Time Reduction
 Disadvantages of Ecommerce
• Not sure of product quality
• Cannot bargain/Negotiate
• Not sure of security of transactions
Credit card misuse
• Need to touch and feel the product
• Significant discounts are not there
• Have to wait for delivery