E-Commerce

Advantages,
Disadvantage, Models
By

Dr.G.Syamala Rao, M.Com,M.B.A,M.Phil,Ph.D.,

Associate Professor, Department of Management Studies,
Gayatri Vidya Parishad College for Degree & P.G.Courses,
Rushikonda, Visakhapatnam
Introduction
● Electronic Commerce consists of all business
activities carried on with the use of electronic
media, i.e. computer network. It involves
conducting business with the help of the
electronic media, making use of the
information technology such as Electronic
Data Interchange. In simple words, electronic
commerce involves buying and selling of
goods and services over the internet.
● E-Commerce is the process of carrying out
business online and electronically. It may
include buying and selling stocks and bonds,
selling a tangible product, buying goods and
services for your company’s operations or
purchasing a dress. Ecommerce covers the
vast amount of business to consumer and
business to business transactions taking place
on the web with the help of internet.
Process
● Ecommerce is about setting your business on the
internet, allowing visitors to access your website,
and go through virtual catalog of your product and
services online.
● When the visitors want to buy something he or
she can add it to their virtual shopping basket.
● The items in the virtual shopping basket can be
added or deleted and finally customer can move to
the virtual checkout counter, which has complete
total and will ask customer for name, address etc
and methods or ways of payments such as Credit
Cards.
● Once all the information is entered, the buying
and selling procedure is complete then the
customer has to just wait for delivery.
History
● With the progress of internet technology and a highly
developed global internet community, a strong foundation
of prosperous electronic commerce continues to be built.

● During the 1990’s the internet was opened for commercial

use; it was also the period that users started to participate
in World Wide Web(WWW), and the phenomenon of rapid
personal computer(PCs) usage growth.

● Due to the rapid expansion of the WWW network; electronic

commerce software; and the peer business competitions,
large number of dot-coms and internet starts-ups
appeared.

● Integrated with the commercialisation of the internet, Web

invention, and PC networks these three important factors
made electronic commerce possible and successful.
E-Commerce Advantages for Customers

● Convenience. 
● Time saving. 
● Options, options, options! 
● Easy to compare. 
● Easy to find reviews. 
● Coupons and deals
E-Commerce Advantages for Businesses

● Increasing customer base. 
● Rise in sales. 
● 24/7, 365 days.
● Expand business reach.
● Recurring payments made easy. 
● Instant transactions. 
E-Commerce Disadvantages for Customers

● Privacy and security. 

● Quality. 
● Hidden costs. 
● Delay in receiving goods. 
● Need access to internet.
● Lack of personal interaction. 
E-Commerce Disadvantages for Businesses

● Security issues. 
● Credit card issues. 
● Extra expense and expertise for e-commerce
infrastructure. 
● Needs for expanded reverse logistics.
● Sufficient internet service. 
● Constant upkeep. 
Models of E-Commerce

● 1.Business to Consumer (B2C):

● 2. Business to Business (B2B)
● 3.Consumer to Business E-Commerce(C2B)
● 4. Government to Business (G2B)
● 5. Government to Citizen (G2C)
1.Business to Consumer (B2C):

● In this model, online businesses sell to individual

customers. The basic concept behind this type is that
the online retailers and marketers can sell their
products to the online consumers by using crystal clear
data which is made available via various online
marketing tools. Business to consumer covers those
E-Commerce websites and transactions, through
which business organisation sells goods to consumer
over the internet. B2C is also known as Internet
Retailing or just E-tailing. The most popular website
www.amazon.com falls under this category as it wells
books and other products online.
B2C
2. Business to Business (B2B)
● It is the largest form of E-Commerce involving business of
trillions of dollars. In this form buyers and sellers are both
business entities are do not involve an individual consumer.
It is like the manufacturer supplying goods to wholesaler or
retailer. For example Dell sells computers and other related
accessories online but it does not manufacture all those
products. So in order to sell all those products, it first
purchases them from different businesses i.e. the
manufacturers of those products. Therefore, Business to
Business refers to all E-Commerce transactions that occur
between business organisations like retailers, manufactures,
suppliers, distributers and electronic fund transfer
providers.
3.Consumer to Business E-
Commerce(C2B):
● In Consumer to Business E-Commerce a Consumer posts his
project with a set budget online and within hours companies
review the consumer’s requirements and bid on the project.
The consumer reviews the bids and selects the company
that will complete the project. In this Model, a consumer
approaches website showing multiple business
organisations 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 organisation that fulfils the consumer’s
requirement within specified budget approaches the
customer and provides its services.
4. Government to Business (G2B):

● Government to Business refers to services

delivered by government to business
organisations. With the invention of G2B,
governments have started providing
traditional services to business organisations
over the internet. Such websites support
auctions, tenders and application submission
functionalities.
5. Government to Citizen (G2C):

● Government uses G2C model website to

approach citizen in general. Such websites
support auctions of vehicles, machinery or any
other material. Such website also proides
services like registration for birth, marriage or
death certificates. Main objectives of G2C
website are to reduce average time for
fulfilling people requests for various
government services.