E COMMERCE
Chapter 1
Introduction
1.1 E-Commerce or E-Business:
Electronic commerce which is commonly known as E-commerce or E-business is a modern concept of doing business. In layman’s language, it is the buying and selling of products and services over electronic systems which mainly comprises of internet. In this form of business the payment for goods and services is also done electronically i.e. by using credit cards. This concept has reached its maturity in developed countries like the United States of America and United Kingdom, but it is still new for emerging economies of developing countries like Pakistan, India, and Egypt etc. E-commerce is mainly considered to be limited to the sales aspect of the business, but it also entails the exchange of data and payment aspect of the transaction.
1.2 Types of E-Commerce:
E-commerce is mainly divided into the following types:
1.2.1 Business-to-Business (B2B):
The B2B transactions are taking place between business concerns i.e. manufacturers, wholesalers, suppliers, distributors. Applications of e-commerce for B2B not only involve efficient trading but also encompasses myriad of activities like forecasting of customer demand, flow of the needed information among concerned parties, etc. Transactions with ultimate consumers by manufacturers, middlemen, etc. are however excluded from the area of B2B.
1.2.2 Business-to-Consumer (B2C):
B2C advert to a business transaction taking place between a manufacturer, or retailer on the one hand, and an ultimate consumer for non-business use, on the other hand. Opening an online store is not a big investment today for a SME. In developed countries retailers are selling wide range of products and services over the net. They consider web site as a major part of the promotional and advertising campaign along with the use of other tools such as advertising directories, newspaper advertising and signage. A number of advantages accrue to both the retailers and consumers, included
Introduction
1.1 E-Commerce or E-Business:
Electronic commerce which is commonly known as E-commerce or E-business is a modern concept of doing business. In layman’s language, it is the buying and selling of products and services over electronic systems which mainly comprises of internet. In this form of business the payment for goods and services is also done electronically i.e. by using credit cards. This concept has reached its maturity in developed countries like the United States of America and United Kingdom, but it is still new for emerging economies of developing countries like Pakistan, India, and Egypt etc. E-commerce is mainly considered to be limited to the sales aspect of the business, but it also entails the exchange of data and payment aspect of the transaction.
1.2 Types of E-Commerce:
E-commerce is mainly divided into the following types:
1.2.1 Business-to-Business (B2B):
The B2B transactions are taking place between business concerns i.e. manufacturers, wholesalers, suppliers, distributors. Applications of e-commerce for B2B not only involve efficient trading but also encompasses myriad of activities like forecasting of customer demand, flow of the needed information among concerned parties, etc. Transactions with ultimate consumers by manufacturers, middlemen, etc. are however excluded from the area of B2B.
1.2.2 Business-to-Consumer (B2C):
B2C advert to a business transaction taking place between a manufacturer, or retailer on the one hand, and an ultimate consumer for non-business use, on the other hand. Opening an online store is not a big investment today for a SME. In developed countries retailers are selling wide range of products and services over the net. They consider web site as a major part of the promotional and advertising campaign along with the use of other tools such as advertising directories, newspaper advertising and signage. A number of advantages accrue to both the retailers and consumers, included
References: Internet Statistics for the Year 2009 (2010,Jan 23), [online] Available from http://www.techreaders.com/2010/01/internet-statistics-for-the-year-2009/, [Accessed 13th October 2010]