Electronic commerce, e-commerce or eCommerce by definition means the sale and purchase of goods and services over the Web and the Internet . It involves commercial transactions between organizations and individuals using digitally, Internet- enabled platforms or devices. There are 3 types of E-commerce; B2C, B2B and C2C. The following types will be discussed in detail further below.
Business-to-consumer targets retailing products/services to individual customers normally by using catalogue utilizing shopping cart software. Some examples of B2C sites are H&M.com, pixmania.com, Ellos.dk, and veromoda.com.
Business-to-business is where companies transact or do business with each other. Manufacturers selling to distributors, wholesalers selling to retailers are some of the possible sequences in B2B. Pricing is often negotiated and in terms of quantity. Examples of B2B sites are; ChemConnect, Dell, Microsoft, Oracle, SpaceWorks, Trade Compass and many others.
Consumer-to-consumer means online users can transact and do business with other online users of a particular site. Free classified ads, forums, auctions and links make it possible for users to transact with each other online. Due to the invention of security payment systems i.e. PayPal it became a lot easier and more secure to handle money transactions through the Internet. One popular example is eBay; an online auction site where users bid on products and consumers sell their products to other users.
Another concept concerning Internet-enabled devices is mobile commerce. Almost most of handheld, wireless mobile devices have Internet access. Considering this, one can transact and purchase products/services with the use of these devices. M-commerce will not be focused on .
7 unique features of E-commerceThere are 7 unique features of E-commerce namely; ubiquity, global reach, universal standards, richness, interactivity, information density and personalization or customization. The following features are to be discussed further below.
E-commerce is considered to be ubiquitous, meaning it can be used everywhere and is universal. You can do it at home, at work or even when you're on vacation as long as you have a digitally enable device such as a computer or a palm pilot where you can connect to the Internet. One important advantage is it lessens transaction costs where in traditional commerce you have to go to a physical retail place such as a shop to buy goods. This creates a "marketspace " for commercial transactions. Customer convenience is also enhanced.
Using technology like the Internet can be a big advantage. First it can be used globally, anywhere and by everyone so there are no specific boundaries. Potential customers are to be considered the worldwide population who uses online devices. That means it can be the entire world so it is a huge market.
There is one universal standard when dealing with E-commerce. It is usually done over the Internet so the technical standard applying is Internet standards. Internet standards are universal meaning it can be accessed anywhere in...