​​​​​​​ E-commerce


What is e-commerce?

Electronic commerce, commonly known as e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. (1)
Electronic commerce that is conducted between business is referred to as Business-to-business or B2B. (2)

Types of e-commerce

  • Business to business (B2B): Alibaba
  • Business to customer (B2C): Dell
  • Customer to customer (C2C): eBay
  • Customer to business (C2B): It's a new model. Buying for a group in the form, the user access to wholesale prices.


characteristics of e-commerce

  • Commodity trading virtualization
  • Transaction transparency, competition-oriented
  • Transaction cost reduction
  • Transacrion-based fast
  • Information is more "complete", to increase opportunities for cooperation


Classification​ of e-commerce

  • Item search
  • Item order/sales
  • Payment
  • Freight
  • Post-sales support services

Advantage of e-commerce

    1. E-commerce will be the traditional business processes electronic, digital, on the one hand instead of the electronic flow of real logistics, can be a significant reduction in manpower, material resources, reducing costs; the other hand, broke through the limitations of time and space, making trading activities can at any time, any place, thus greatly improving efficiency.
    2. E-commerce has the openness and global characteristics of the enterprises to create more trade opportunities.
    3. Interactivity: through the Internet, direct communication between businesses, negotiation, contract, consumers are able to bring its proposals reflect the feedback to the corporate or commercial websites, and businesses, or businesses will have to prompt investigation based on consumer feedback product range and service quality, so that positive interaction

Disadvantage of​ e-commerce

    1. Search function is inadequate. When online shopping, the user faces a big question is how many websites you want to find their own items and get the lowest price.
    2. The transaction can not be guaranteed safety. E-commerce security issues remain the main factors affecting e-commerce development. As the Internet's rapid popularity, e-commerce has attracted wide attention, was recognized as the future of IT industry's most promising new growth point. However, in an open network, processing transactions, how to ensure the security of data transfer can become a popular e-commerce the most important factor.
    3. Electronic contract legal issues. In e-commerce, traditional business transactions taken by a written contract no longer applies.
    4. Identification of electronic evidence. Information network of the information has not instability or volatility, which resulted in violations occur when the information network, lock infringement evidence or to obtain evidence of infringement is extremely difficult to solve infringement dispute brought greater obstacles.


The competitive advantage of e-commerce

E-Commerce provides businesses with a global trading environment, to create new business channel, has greatly enhanced the level of business activities and quality of service. In enhancing the competitiveness of enterprises in all sectors, it has an unparalleled role:

      1. E-commerce can improve the efficiency of business activities
        E-commerce to be more user-friendly production quotas in order to sell the enterprise through the network to display their products, services and payment terms, the customer what they need, issue orders, production department in accordance with the network ordering information or the adjustment time scale of production and varieties in order to achieve low-volume, multi-species, zero inventory, real-time manufacturing and delivery of the ideal model. At the same time can also reduce human negligence, to avoid possible loss and waste.
      2. E-commerce can improve the quality of work, to expand the market
        Increase in e-commerce customers and supplier links. Both spatial barriers have disappeared, the system network enables customers and suppliers are able to understand each other's latest data, strengthen market competitive position.​


Reference

(1) E-commerce. (n.d.). In wikipedia retrieved February 14, 2010, from http://en.wikipedia.org/wiki/Electronic_commerce
(2) E-commerce Journal. (2009, August 8). Electonic dommerce aka e-commerce history. Retrieved February 14, 2010, from http://www.ecommerce-journal.com/articles/electronic_commerce_aka_e_commerce_history
(3​) Kiddy. (2008, July, 29). Youtube sued! E-commerce [Video file]. Video posted to http://www.youtube.com/watch?v=F0G5TJEXMRQ