INTRODUCTION

Advances in technology, computers, and telecommunications to support the development

of internet technology. With Internet, businesses no longer have difficulty in obtaining
any information to support its business activities, even now tend to be able to obtain
various kinds of information, so the information must be filtered to obtain accurate and
relevant information. Using Internet in business change from function as a tool to
exchange information electronically into a tool for the application of business strategies,
such as: marketing, sales, and customer service.
Since the invention of the internet technology in the 1990s, internet used widespreadly
because it is give a huge benefit for the process of business activities. Motivation and
benefits of e-commerce to improve customer service and increase the competitiveness of
companies. Given this reality, the application of e-commerce technology is one of the
important factors for the success of a product from a company. To accelerate and increase
sales faster then by looking at the development of information technology so that we can
rapidly utilize an on-line services in the form of e-commerce. During this time, the
system of sales from customers that used by the company in writing and are only
manually, which often tend to be misleading.
With the services of electronic commerce (e-commerce) is then the customer can access
and carry out orders from various places. With the era of advanced technology is
currently the customers who want to access e-commerce does not have to be somewhere,
it is because in big cities in Indonesia has many places that provide a facility only internet
access with a laptop / notebook or with Personal Digital Assistants (PDAs) using wifi
technology. Thus the present time is necessary and desirable companies that implement ecommerce services. The use of e-commerce in Indonesia is still very limited. Of the
existing background, the authors will discuss how the utilization of e-commerce in their
business interests.
E-commerce
Electronic Commerce (e-commerce) is the process of buying, selling or exchanging
products, services and information via computer networks. According Rahmati (2009) Ecommerce stands for Electronic Commerce, which means marketing system or by
electronic media. E-Commerce include distribution, sales, purchasing, marketing and
service of a product that is made in an electronic system such as the Internet or other
computer networks form. E-commerce is not a service or an item, but it is a combination
of services and goods. E-commerce and related activities through the Internet can be a
driving force to improve the domestic economy through liberalization of domestic
services and accelerate integration with global production activities. Because e-commerce
will integrate domestic trade in world trade, various forms of talks or negotiations will
not only be limited to the aspects of world trade, but how domestic policies on
supervision in a country, especially in the telecommunications, financial services, and
delivery and distribution.
In the development of e-commerce has 5 basic concepts include:

 Automation
Automation of business processes instead of manual processes (enterprise resource
planning)
Streamllining / integration
Integrated process to achieve efficient and effective (just in time)
Publishing
Ease of communication and promotion of products and services that are traded (electronic
cataloging)
Interaction
Exchange of information or data between businesses with minimum human error
(electronic data interchange)
Transaction
Agreement between the two businesses to transact with other institutions as a function
involving the payer (electronic payment)
First the user does not have any money then the user has a plan or planning to sell by
finding a buyer or consumer (point 1) And he's thinking about how to sell the product
into an effective and efficient process (point 2) Because when users go to the market will
spend a lot of money and power, then he decided to communicate and promote the
product to the buyer (point 3)
Users are also informed that he sells the product at home and provide information about
the products of its price and its type (point 4) Finally, if the agreement creates sold then
the buyer will receive the product (point 5)
The important thing is that there is a seller and a buyer in which the agreement will be
created between sellers and buyers through multiple media. Here also through the trust
between the seller and the buyer in terms of the transaction and delivery.
the main model of e-commerce :
Business-to-business (B2B)
Connecting B2B Business to Business is electronic transactions between entities or
business objects that one to the other business objects . Thus, it can be concluded
that B2B is also called inter-company transactions Example : Global Market
(globalmarket.com)
Business-to-Customer (B2C)
Transactions between sellers, manufacturers and consumers users of the product.
The business model is quite simple, which is an online store with a website address
(domain) alone where the seller has a stock of products and sell them on to the
buyer. Some examples of online stores in Indonesia is Unity, Lazada Indonesia,
BerryBenka, and Bilna 1. Tiket.com, which serves as a platform for online ticket
sales, can also be considered as an online store.
Customer-to-Customer (C2C)

this is a business model where the website is concerned not only help promote
merchandise only, but also facilitate online money transactions. Here is the main
indicator for a website marketplace: All online transactions should be facilitated by
the website in question can be used by individual sellers. In Indonesia, the type of
C2C business is very much, such as Tokopedia, Tokobagus, Kaskus, etc. Kaskus
and Tokopedia is like a marketplace because they provide a place for the sale and
purchase, while Tokobagus and trade it over to ad listings because they sell there is
an advertisement. One of the newcomers in the C2C Indonesia is sribu. Sribu is a
marketplace for designs where the designers given the competition to make a
specific design for the client. For those who win will get a number of prizes
including cash. Rumah.com also C2C marketplace because they are for the
property. Thus, the C2C e-commerce is not only selling goods, but also sell
services.

E-commerce technology

Aplications of E-Commerce
Electronic Markets (Ems)
EMS is a tool that uses information and communication technology to
perform / present offerings in a market segment, so shoppers can compare a wide
range of prices offered. In another sense, EMS is an inter-organizational
information system that provides facilities for buyers and sellers to exchange
information about prices and products offered. EMS facilities for customer
advantage are more obvious and efficient in terms of time. As for the seller, he
can distribute information about products and services offered by faster so as to
attract more customers.

Electronic Data Interchange (EDI)

EDI is a means to streamline the data exchange transactions that are
repeated regularly in a large number of commercial organizations. Formally EDI
defined by the International Data Exchange Association (IDEA) as "the transfer of
structured data with a standard format approved carried from one computer
system to another computer system using electronic media".
EDI is very widely used, usually used by large retail groups when doing
trading business with their suppliers. EDI has standardized coding commerce
transactions, so that the commercial organization can communicate directly from
one computer system to computer system one another without the need for
hardcopy, invoices, and to avoid delays, unintentional mistakes in the handling of
files and human intervention. The advantage of using EDI are booking a short
time, reduce costs, reduce errors, to obtain a quick response, fast delivery and
accurate invoicing and payment can be done electronically

Inernet Commerce
Internet commerce is the use of Internet that based on technologies of
Information and communication for trade. Example for these kind of commercial
activities is advertising in the sale of products and services. Transactions that can
be done on the Internet is booking / purchase of goods where the goods will be
sent by mail or other means after the money is transferred to the account of the
seller.
The use of the Internet as a medium for marketing and sales channels
proved to have the advantage, among others, for certain products more in line
offered through the internet; cheaper price considering creating a site on the
internet less costly compared to open retail outlets in various places; the internet
is a medium enterprise promotion and the most appropriate products at a
relatively cheaper price; and purchases over the Internet will be followed by the

delivery of goods to the service at the customer.

Well-known E-Commerce Applications:
E-mail and Messaging
Short for electronic mail, the transmission of messages over
communications networks. The messages can be notes entered from the keyboard
or electronic files stored on disk. Most mainframes, minicomputers, and computer
networks have an e-mail system. Some electronic-mail systems are confined to a
single computer system or network, but others have gateways to other computer
systems, enabling users to send electronic mail anywhere in the world. Companies
that are fully computerized make extensive use of e-mail because it is fast,
flexible, and reliable.
Most e-mail systems include a rudimentary text editor for composing
messages, but many allow you to edit your messages using any editor you want.
You then send the message to the recipient by specifying the recipient's address.
You can also send the same message to several users at once. This is called
broadcasting.
Sent messages are stored in electronic mailboxes until the recipient fetches
them. To see if you have any mail, you may have to check your electronic
mailbox periodically, although many systems alert you when mail is received.
After reading your mail, you can store it in a text file, forward it to other users, or
delete it. Copies of memos can be printed out on a printer if you want a paper
copy.

On-line Shopping
The act of purchasing products or services over the Internet. Online
shopping has grown in popularity over the years, mainly because people find it
convenient and easy to bargain shop from the comfort of their home or office.
One of the most enticing factor about online shopping, particularly during a
holiday season, is it alleviates the need to wait in long lines or search from store
to store for a particular item.

Online Banking
A system allowing individuals to perform banking activities at home, via
the Internet. Some online banks are traditional banks, which also offer online
banking, while others are online only and have no physical presence. Online
banking through traditional banks enable customers to perform all routine
transactions, such as account transfers, balance inquiries, bill payments, and stoppayment requests, and some even offer online loan and credit card applications.
Account information can be accessed anytime, day or night, and can be done from
anywhere. A few online banks update information in real-time, while others do it
daily. Once information has been entered, it doesn't need to be re-entered for
similar subsequent checks, and future payments can be scheduled to occur
automatically. Many banks allow for file transfer between their program and
popular accounting software packages, to simplify record keeping. Despite the
advantages, there are a few drawbacks. It does take some time to set up and get
used to an online account. Also, some banks only offer online banking in a limited
area. In addition, when an account holder pays online, he/she may have to put in a
check request as much as two weeks before the payment is due, but the bank may
withdraw the money from the account the day that request is received, meaning
the person has lost up to two weeks of interest on that payment. Online-only
banks have a few additional drawbacks: an account holder has to mail in deposits
(other than direct deposits), and some services that traditional banks offer are
difficult or impossible for online-only banks to offer, such as traveler's checks and

cashier's checks.

The Mechanism of E-commerce

Electronic transactions between e-merchants (parties who offer goods or services
over the Internet) with e-customers (those who buy goods or services over the Internet)
that occur in cyberspace or on the Internet generally take place in a paperless transaction,
while the documents used in the transaction is not a paper document, but an electronic
document (digital document).
The Contracts:
Chatting and Video Conference
Chat and Video Conference is a communication tool that is provided by
the Internet that can be used for interactive dialogue directly. With chatting, a
person can communicate directly with other people just like telephone, only by
written chat communication that can be read on each computer. As the name
implies, video conferencing is a tool to talk with some parties by see the picture
and hear the sound directly contacted with this tool. Thus the use of the services
contracted with chat and video conferencing can be done directly between the
parties by means of a computer or television monitor.

E-Mail

Web and Sites

Contract through the web can be done by for example, a supplier have a
web site (both located in the server suppliers pr placed on third-party servers) that
have a description of the product or service and a series of pages that are selfcontraction, which can be used to make the contract itself, which allows web
visitors to order products or services. The consumer must provide personal
information and must include credit card numbers.

Contract via e-mail is one of the most popular on-line contracts because of
the e-mail users at this time are very much and worldwide at the very low cost
and time efficient. To obtain e-mail addresses you have to registering to the e-mail
service provider for free or by registering as a subscriber on a server or a
particular ISP. Contracts e-mail can be sent to a person who offers or to many
people who are members of a mailing list, as well as acceptance and notification
of acceptance, which is entirely transmitted via e-mail. In addition, offering goods
provided through the web site that posted the offer, while acceptance is done via
e-mail can do the contract e-mail.

Furthermore, the mechanism is as follows:

For products on line in the form of software, buyers are allowed to download it;
For physical tangible product, delivery of goods made up in consumers' homes;
For the purchase of services, the supplier provides to serve consumers in
accordance with the time and place specified in the agreement.
The mechanism of electronic transactions with an e-commerce began with the
offering of a particular product by the seller (eg domiciled in the USA) at a site through a
server that is located in Indonesia (eg detik.com). If the Indonesian consumers make a
purchase, then the consumer will fill mail orders that have been provided by the seller
post its offer, while acceptance is done via e-mail.

conclusion
With the utilization and use of Internet technology are expected to provide great benefits
to the competitive business world. Companies that are able to compete in the competition
are company capable of implementing technology into the company. One type of
technology implementation in terms of increasing business competition and sale of
products are the use of electronic commerce (e-commerce) to market a wide variety of
products or services, either in physical or digital form. With this the services of electronic
commerce (e-commerce), the customer can access and carry out orders from various
places, also make it more effective and efficient. In these the era of advanced technology,
the customer who want to access e-commerce does not have to be somewhere that
provide internet, it is because in big cities in Indonesia has many places that provide a
facility internet access only with a laptop / notebook or with Personal Digital Assistants
(PDAs) using wifi technology.