E-commerce is Electric Commerce which is a wide range of business activities through internet or other computer networks. It involves trading or selling of products and services from one entity to another. It follows the same basic principles as traditional commerce that is, buyers and sellers come together to swap commodities for money. This principle is used over networked computers rather than shopping stores, catalogs or telephone in conducting business. E-commerce allows people to exchange goods and services electronically without any barriers of time and distance. It was first introduced in the 1960s via electronic data interchange (EDI) through value-added networks (VANs). In the mid-1990s, e-commerce was transformed with the introduction of Amazon and eBay. Amazon started as a book shipping business, out of Jeff Bezos' garage, in 1995. EBay, which enabled consumers to sell things online, introduced online auctions in 1995 and exploded with the 1997 Beanie Babies frenzy. The online business focuses on business process. Buyers can visit the web sites of multiple vendors 24 hours a day and able to compare prices and make purchases, without having to leave their homes or offices from around the globe. In some cases, consumers can immediately obtain a product or service, such as an electronic book, a music file, or computer software, by downloading it over the Internet.
There are five different types of e-commerce. Firstly is business-to-business (B2B) e-commerce. It describes transactions occur between businesses. For example, transaction between manufacturer and wholesaler or wholesaler and retailer. The transaction used in the context of communication and collaboration. They use internet as a tools to connect with each other to trade products and services without having face to face conversation. Next is business-to-consumer e-commerce. It involves the transaction between businesses to the end users. Buyers search through the internet the desired products or services from the business and the company will serve them by deliver it. For example, a person buying clothes from retailer. Person will search the various types of clothes from the websites and compared the prices. Once he or she had made a purchase and the company delivers the items purchased, it will consider as business-to-consumer e-commerce. Third is the consumer-to-consumer e-commerce. It involves transaction between consumers through third party. It is usually a promotional strategy for consumers to share products or services with others based on the value of the products or services. The third party will be charged a flat fee or commission from the consumer. For example, a person who wants to sell his or her house and hired a property agency to handle the sales of the house to others. The agency will take some percent of commission when the house successfully being sold. There is also peer-to-peer e-commerce. Peers (members) communicate directly with one another to exchange information, distribute tasks, or execute transactions. Peers make a portion of their resources such as processing power, disk storage or network bandwidth, directly available to other network participants, without the need for central coordination by servers or stable house. Peers are both suppliers and consumers of resources. For example, YouTube website is popular sources for file sharing of music, videos and etc. Lastly is the mobile commerce (M-commerce). It is a transaction through wireless technology by using handheld devices such as cellular phone. Example of m-commerce is internet banking system.
Both businesses and customers are able to gain advantages of using e-commerce. In businesses scope, they are able to cut cost in expanding their markets. They do not have to pay or build infrastructure such as business store, land and etc. Besides that, e-commerce does not require a business to hire staffs in handling the business or distribute catalogs for...
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