E-commerce Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services

over electronic systems such as the Internet and other computer networks. Ecommerce refers to the buying and selling of products or services over electronic systems through Internet and other computer networks. The most popular medium in which e-Commerce is conducted is the internet. Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce. It combines a range of process such as:

y y y y y

Electronic Data Interchange (EDI) Electronic mail (E-mail) World Wide Web (WWW) Internet Applications Network Applications

On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce. Some common applications related to electronic commerce are the y y y y y y y y y Email Enterprise content management Instant messaging Newsgroups Online shopping and order tracking Online banking Online office suites Domestic and international payment systems Shopping cart software

y y

Teleconferencing Electronic tickets

History Originally, electronic commerce was identified as the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These were both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders or invoices electronically. The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. Another form of e-commerce was the airline reservation system typified by Sabre in the USA and Travicom in the UK. From the 1990s onwards, electronic commerce would additionally include enterprise resource planning systems (ERP), data mining and data warehousing. In 1990, Tim Berners-Lee invented the WorldWideWeb web browser and transformed an academic telecommunication network into a worldwide everyman everyday communication system called internet/www. Commercial enterprise on the Internet was strictly prohibited by NSF until 1995. Although the Internet became popular worldwide around 1994 with the adoption of Mosaic web browser, it took about five years to introduce security protocols and DSL allowing continual connection to the Internet. By the end of 2000, many European and American business companies offered their services through the World Wide Web. Since then people began to associate a word "ecommerce" with the ability of purchasing various goods through the Internet using secure protocols and electronic payment services. Dimensions of E-Commerce The three dimensions of e-commerce are:

y y y y

Business-to-Consumers (B2C) Business-to-Business (B2B) Business-to-Government (B2G) Consumer-to-consumer (C2C)

B2C e-commerce is unlikely to be of much use in the near future in Bangladesh because of low per capita income, a weak infrastructural and legal environment, lack of trust between business and consumers. B2C for cross border trade is also limited by the factors suggested for the domestic front. In addition, non-availability of international credit cards, foreign currency remittance restrictions, delays and informal payments at customs clearance even for small value and quantity items will discourage B2C.

Business to Consumer (B2C) Where enterprises sell directly to the customer, often cutting out wholesalers or retail outlets. B2C is the most commonly understood form of internet business www.muktobazaar.com most successful trading has been with standard products such as CDs, Books, Software, downloadable music etc.

Business to Business (B2B) It is larger, growing faster. This includes procurements of raw materials and supplies, liaison with contractors, sales channels, servicing customers, collaborating with partners, integrated management with data and knowledge.

Business to Government (B2G) Here business trade directly with government offices and agencies for public procurement (e.g. supplies for hospitals, school and other government contracts.

Consumer to consumer (C2C) Online transaction between private individuals. There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place every day since 1995.

Why e-Commerce for Bangladesh

With the increasing diffusion of ICTs, more specifically the Internet, the global business community is rapidly moving towards Business-to-Business (B2B) e-Commerce. The buyers/ importers gain a clear advantage when the Internet gives them access to the global market, by which they can compare prices across regions, find out whether prices vary by order fragmentation, get awareness about substitute/ alternative products. Consequently, the sellers/ exporters make sure that they are well portrayed in the cyber world through websites and portals. Like buyers, sellers also benefit from increased and more efficient access to the global market through the Internet.

Bangladesh is pursuing an economic policy of export-led growth. With the rising forces of globalization, it is becoming increasingly important that the private sector, particularly the export sectors are well prepared to meet the requirements and expectations of the importers and also stand out in the competition against exporters in other countries. In such a scenario, two issues are becoming particularly important for Bangladeshi export sectors one, whether businesses are automating their internal processes with the use of ICTs to become increasingly efficient and competitive in a global context, and two, whether businesses have effective presence and participation in the cyber world. International organizations such as UNCTAD (United Nations Center for Trade and Development) and WTO (World Trade Organization) have, over the last several years, put much emphasis on the importance of e-Commerce for developing countries. UNCTAD has special programs to facilitate developing countries to transition into e-Commerce. The WTO has also developed rules and guidelines for global e-Commerce transactions.

Overview of implementation stage of e-Commerce in Bangladesh Ministry of Commerce, Ministry of Information and Communication and Planning Commission jointly implementing the e-commerce in Bangladesh

y y

There is e-Commerce committee headed by commerce secretary. Ministry of Information and Communication is working for enacting a law regarding Electronic Transaction act.

y y y y y

Online order from foreign buyer has started. Online non-financial transaction has started by all bank from 31-7-2002. Intra-bank transaction started from 31-7-2003. Some bank already started credit card system in a limited way. Bangladesh Bank giving permission of Ecommerce in local currency through banks within the country.

Benefits of e-Commerce E-commerce can transform the way products and services are created, sold and delivered to the customers. It can also change the way in which the company works with its partners. The followings are well established benefits of e-commerce:

1. Any one, any time any where The most attractive feature of ecommerce is anyone can make a purchase, from anywhere at any time. What u need is just have to login into a website providing products for sell.

2. Cost savings The cost savings stem from efficient communication, quicker turnaround and closer access to market.

3. Streamlined business process Use of internet and with automation of business process making business more efficient. In Bangladesh internet is becoming popular day by day. Various service providers providing internet for its clients. With growth of internet, ecommerce is also becoming popular.

4. Better Customer service Customer can enjoy the convenience of shopping at any hour and anywhere in the world. So consumers and buyers from Bangladesh can have this facility more easily.

5. Opportunities for new business Business over the internet have global customer reach. There are endless possibilities for business to exploit and expand their customer base. Various Bangladeshi company and organizations started to sell their products online by their own web sites.

6. Economy providing information of goods on online is more economy then other Medias of advertising. A company can provide all its product detail for customers on online at a least cost. Several companies have their own website to provide consumer all the information about their product they sell.

7. Quick comparison shopping E-commerce opened the door for quick comparison shopping for consumers. A consumer is can compare between products of several companies in few minutes. So they have the wide spread access of choice. For this kind of service online buying is popular among all over the world. And Bangladesh is not out of the world.

8. Customization Another unique feature of ecommerce is customization. Easy to reorganize, edit and develop product information according to consumers choice at any time.

Disadvantages of e-commerce some disadvantages and constraints of e-commerce include the following. 1. Internet is not free The main ingredient of ecommerce is connection with internet. The cost is low, but it is not a free service.

2. Time for delivery of physical products It takes time to deliver product. After ordering and purchasing a product consumer wants to have the product as quick as possible. For poor infrastructure of Bangladesh, it might not be possible to deliver the product at right time.

3. Returning goods Returning goods online can be an area of difficulty. The uncertainties surrounding the initial payment and delivery of goods can be exacerbated in this process.

4. Security In Bangladesh security is the main obstacle to make online perches. Consumers are afraid to make online shopping due to poor maintenance of technology.

5. Corporate vulnerability The viability of products of product details, catalogs and other information about a business though its web site makes it vulnerable to access by the competition. This idea called web forming. There is lack of web forming in Bangladeshi websites.

Conclusion A key reason why e-commerce, especially the business-to-business segment, is growing so quickly is its significant impact on costs associated with inventories, sales execution, procurement, intangibles like banking, and distribution costs. If these reductions become pervasive, e-commerce has the potential to be the application that ushers in the large productivity gains. Achieving these gains is therefore contingent on a number of factors, including access to e-commerce systems and the needed skills.

Developing country like Bangladesh where people getting busy with their job day by day, ecommerce is like blessing for them. E-commerce provides the best product to consumers. Provide the best service 24/7 and give the opportunity to wide access choice. In Bangladesh ecommerce is a new concept. Although it getting popular day by day.

REFERENCES

1. WWW.WIKIPEDIA.COM 2. WWW.SCIPBID.COM 3. ELECTRONIC COMMERCE BY ELIAS M. AWAD