What is E-Commerce ?
E-Commerce is that the shopping for and commerce of products and services on the web, particularly the planet wide net. E-Commerce is the Paperless exchange of business Information Using Electronic Data interchange, e-mail and electronic Funds Transfer.
It refers to Internet Shopping, online Stock and bond transactions and business to business transactions.
Clearly, a key element of a e-commerce is information processing of all steps of commerce except for production, distribution and Delivery of physical goods. The information processing activity is usually in the form of business transaction.
Role of E-Commerce ?
The cutting edges for business today is electronic technology and electronic commerce uses it. we can’t deny the fact that the machine called “Computer” increases our capacity to store, search and retrieve information externally . Other media of communication might be considered like telephone, radio and television. Each of these technologies increased our capacity to communicate over great distances.
If we have access to personal Computer (PC) and can connect to the internet with a browser, we can do business on-line. No need to worry about programming. No more Searching for outdated Catalogs and For Phone Numbers, no need to pay more to connect long distance or keeping the store open late into the evening. Just get on the web, open an online store, and watch our business grow.
The back bone of this electronic commerce is the Internet let us loop closely at the change that have taken place during the last few decades, we find that computers, information technology and networking have combined to replace labour- intensive business activities across industries and in government.
E-Commerce Differs From E-Business ?
The term e-business refers primarily to the digital enablement of transaction and process within a firm, involving information system under the control of the firm. E-business does not include commercial transactions involving an exchange of value across organizational boundaries.
For Example, a company’s online inventory control mechanisms are a component of e-business, but such internal processes do not directly generate revenue for the firm from outside business or consumers, as e-commerce
A firm e-business infrastructure can also support e-commerce exchanges. And e-commerce and e-business systems can and do blur together at the business system link-up with suppliers. E-business Applications turn into e-commerce Precisely when an exchange of value occurs.
E-commerce primarily involves transaction that cross firm boundaries. E-business primarily Concern the application of digital technologies to business processes within the firm.
E-Commerce Helps in Business ?
Electronic commerce is a new way of conducting, managing, and executing business transactions using computer and telecommunication networks. E-commerce is expected to improve the productivity and competitiveness of participating businesses by providing unprecedented access to an online global market place with millions of customers and thousands of products and services. Another goal is to provide participating companies with new, less cost and time efficient means for working with customers, suppliers and development partners.
Network based e-commerce will enable companies to :-
- Shorten procurement cycles through online catalogs, ordering and payments.
- Cut costs on both stock and manufactured parts through efficient JIT.
- Shrink product development cycles and accelerate time to market through collaborative engineering and product Customization.
The emerging electronic market place is expected to supports all business services that normally depend on paper based transaction.
Buyers can browse multimedia catalogs, solicit bids and place orders. Sellers will respond to bids, schedule production and coordinate deliveries. A wide way of value added information devices will spring up and bring buyers and sellers together. These services will include specializes directories, broker and referral services, vendor certification and credit reporting, network notaries and repositories, and financial and transportation services. Although many of these transactions and services already occur electronically, they require dedicated lines or prior arrangements. The use of a network based infrastructure reduces the cost and levels the playing field for both small and large businesses.