What is E-Commerce? What are the Applications, Different types of E-Commerce and explain Advantages and Disadvantages of E-Commerce?
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E-commerce is the process of buying
and selling of products or services over electronic systems such as the
internet and other computer networks.
E-commerce in other words, is a
process by which goods and services are advertised, bought and sold electronically
over the internet E commerce is thus the paper less exchange using electronic
data interchange (EDI). The buyer select items from the outline catalog make
the purchase and pays by credit card and other electronic modes of payment.
Types of Ecommerce: -
There are 4 main categories of
E-commerce mainly B2B, B2C, C2B and
C2C.
1. Business to business
(B2B):- Here
companies sell their products for other business such as distributer and whole
sellers.
2. Business to consumer
(B2C): - Business selling
products or services to consumers are coming under this category.
3. Consumer to business
(C2B): - Here the
consumer posts his requirement to companies and companies in review the
requirement of consumers and bid on the project. The consumer studies the bid
and takes a decision.
3. Consumer to consumer
(C2C): - In this
category the consumer can buy or sell on free classified and auctions. The
goods are offered by the consumers and sold by the consumers. The stage is said
by big sites like E-bay where people transact the business themselves.
Applications of E-commerce:-
Some usual Applications related to Electronic
Commerce are given below:
1. Essential applications: - E-commerce facilities the online
purchase of products, auctions etc. The consumers can get finally advice about
their health and items essential products come under this category.
Ex: Online shopping options.
2. Financial applications: -These services are fast and accurate
for example we can withdraw money from ATM. These ATM’s provide accurate out
puts about various transactions. The following services come under this
category.
Ex: - Internet Baking, Online (bank)
trading financial views.
3. Educational applications: - These applications provide
information about different universities available throughout the word and also
provide different online study courses. These include the following services.
4. Entertainment applications:- Web is placed for entertainment, we
can chat, see movies, play games etc.. All these activities are possible with
the help of E-commerce.
Ex: - Chatting, multiuser, games news
groups.
Advantages and Limitations
of E-commerce:
The advantages of electronic commerce
result in many benefits to customer.
1. Word wide 24 hours a day: - Electronic commerce extends to all
places in the world at any time. The customer can find the best products or
services quickly in the world.
2. Home Shopping: - E-commerce enables the customer to
select the products at home quickly and conveniently so that the problem of
travelling querying and billing can be available.
3. Availability of latest items: - The internet is our best friend in
the world. Rare medicines, latest technology items, specialized products etc.are
available at original prices. Some people may enjoy some products which are not
available at their own towns.
4. Home delivery: - Goods will be delivered at home to
customers at their convenient time.
5. Virtual auctions: - The customer can participate in
virtual auctions and get the products or services at a discounted price.
6. Reduced costs: - As there are number of a few
intermediaries b/w the trading place, people can get the products directly from
manufactures or whole sellers. This results in reduction of cost of goods to
the customers.
7. Speedy process: - The movement when you place order it
will be immediately processed there is no need to wait weeks together for a
catalogue to arrive by post.
Limitations (Or)
Disadvantages: -
In spite of many advantages there are
some limitations of E-commerce.
1. No chance of inspecting goods: - The goods offered on net cannot
actually be seen and touched, i.e., customers cannot physically inspect the
good that is why many people are not interested in buying online goods.
2. Privacy and security: - There are concerns about privacy and
security of goods traded online. Many people felt that there is no privacy and
security to their online payments there are possibilities of credit card number
theft.
3. No social interaction: - People generally like to do shopping
with their friends or relatives. But this is not possible in online shopping.
4. Lack of trust: - Normally customers do not trust known
traders then how can they trust unknown traders on the net so shifting from
traditional stores to online stores is difficult to them.
5. Problem of return of goods: - Having to return defective goods take
a lot of embarrassment to customers. They may be no responsible online venture
for taking the goods returned by the customers.
6. Limited categories of goods: - Only a few types of goods are sold on
E-commerce. It is not suitable for all types of business.
7. Legal issues: - Many legal problems are still
involved in E-commerce. There is no govt frame work and regulations for many
online businesses.
8. Technical problems: - The internet is not accessible to all
people. Even it is accessible it is expensive and in convenient to same people.