Ecommerce - An Overview


The term E-Commerce may be simply defined as: “All business activities such as business trading with other businesses & the internal processes that the companies support by using internet technologies”. The various types of E-Business that occur in the world are:
Business–to-business: transactions occur in Internet between businesses.
Business–to- consumer: A consumer shops in the Internet.
Business processes:Here various organizations, companies, & governments  undertake their selling & purchasing activities using Internet technologies.
Consumer- to- consumer: transactions between persons among themselves in the web.
Business- to- government: direct transactions with governments or their agencies of  various countries.

Business Process:

The business model may be defined as an integration of a group of business processes whose output is revenue. In many cases, it is seen that new E-Com companies always try to copy the business model of a reputed one. Hence one new E-Commerce company must identify its individual business elements & accordingly create its business model using web technologies, because duplicating the business model of another company would most possibly put the newbie in doldrums in some way or other. Here comes the question, how to identify the business elements that the newbie will integrate to form a genuine business model.
In the ever changing world of business, E-Commerce has a pivotal role, as the companies can adapt to the changes using internet technologies. Though the skills of direct selling can be very difficult to implement through E-Commerce, still companies upload the direct selling skills to their web sites & become successful in product specific cases. Products such as software, audio CDs, books, e-book, movies, mobiles, office supplies, computer & its accessories, travel services, investment, insurance & banking are excellent for E-Commerce, as the purchasers never ask to experience the product physically before purchasing. Many products are still not fully adaptable to E-Commerce. They require the combination of both E-Commerce & traditional business principles. A product is best suited for E-Commerce, depending on its easy packaging & forwarding, and also brand equity. Products like real estate, high value jewelry, perishable goods & automobiles require a combination of both traditional & e-commerce business processes.
During 21st Century, more & more companies are jumping into the E-Commerce fray, mainly because this system requires less investment with high profit margin. A very small company can promote its products throughout the world, although geographically scattered, simply adopting best Web Advertising. Internet creates business opportunities for newborn companies by promoting its products through sharing in virtual communities, which would have been very difficult & expensive in real world.
Like sellers, opportunities are also created for purchasers in the Internet through indentifying new companies, diversified product base & its availability, lower price tag by competitive bidding, lightning fast business exchange information, & finally reducing transactional costs. Finally, E-Commerce is clearly responsible for a step towards creating a Green Earth.
There are some products which cannot be included fully in the business processes of E-Commerce in the present scenario. Products such as highly perishable goods, & high value customized jewelry cannot be inspected from a remote place, & the purchasers of these products are always keen on inspecting the product before placing orders & further, they will need the product in as-is-where-is basis after clear delivery.
The technology required for implementation in E-Commerce projects are changing rapidly, & an E-Com company always need to keep pace with the new & advanced technology. The major investment of a new E-Com company is with the technology (Software + Database). Suppose a company is formed today using the latest technologies of 2012, but if the technology will change during 2013, the company must be able to revise or update or adopt the new technology without delay, in order to remain in the market. Here comes the question of return on investment. Another factor which limit the functions of E-Commerce is the mindset of different people in different geographically scattered areas. Many people have suffered & also suffering now in scams through the Internet. Hence they are reluctant enough to send their Credit/Debit card numbers to the E-Com companies. Specifically, in India, very few people do know about Cyber Law. Further, the implementation part of Cyber Law in the Indian scenario is very ridiculous.  

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