E-COMMERCE AND ITS RELEVANCE IN THE MODERN WOLD (ONE LINE ASSIGNMENT)

KERALA UNIVERSITY COLLEGE OF

TEACHER EDUCATION

KARIAVATTOM

               ONE LINE ASSIGNMENT

“ROLE OF E-COMMERCE IN THE       MODERN WORLD”      

                       SUBMITTED BY

                                                                         ARIYA.S

INDEX

SL NO.	CONTENTS	PAGE NO.
1	INTRODUCTION	3
2	E-COMMERCE	4
3	E-COMMERCE PRACTICES	5
4	ADVANTAGES &DISADVANTAGES OF E-COMMERCE	6
5	MODELS OF E-COMMERCE	7
6	ROLE OF E-COMMERCE IN THE MODERN WORLD	8
7	E-COMMERCE WEBSITES	9
8	IMPORTANCE &USES OF E-COMMERCE	10-11
9	BENEFITS OFFERED BY E-COMMERCE TO THE MODERN WORLD	12-15
10	CONCLUSION	16
11	REFERENCES	16

INTRODUCTION

Commerce is the distribution of goods and services in a large scale. It is also trade and aids to trade. They make mass distribution of goods and service easy.Electronic commerce, commonly known as E-commerce , is trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail, mobile devices, social media, and telephone. E-Commerce known as electronic commerce that is use of World Wide Web for buying and selling of products or services. It encompass on different technologies such as internet marketing, mobile commerce, electronic data interchange, online transaction processing etc. E-Commerce website offers the products and services for online sales and purchase and enabling online transactions for such sales e-commerce services are equipped with domain name purchasing, secure hosting, and full integration with the payment gateway of your choice, web design, shopping cart system and marketing……..

E-COMMERCE

MEANING

E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet. E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet. These business transactions occur either business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business. The terms e-commerce and e-business are often used interchangeably. The term e-tail is also sometimes used in reference to transactional processes around online retail. E-commerce is conducted using a variety of applications, such as email, fax, online catalogs and shopping carts, Electronic Data Interchange (EDI), File Transfer Protocol, and Web services. Most of this is business-to-business, with some companies attempting to use email and fax for unsolicited ads (usually viewed as spam) to consumers and other business prospects, as well as to send out e-newsletters to subscribers

DEFINITION OF E-COMMERCE '

A type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet. Electronic commerce operates in all four of the major market segments: business to business, business to consumer, consumer to consumer and consumer to business. It can be thought of as a more advanced form of mail-order purchasing through a catalog. Almost any product or service can be offered via ecommerce, from books and music to financial services and plane tickets.
 

E-COMMERCE PRACTICES

—  Provide Etail or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall".

—  Buy or sell on websites or online marketplaces.

—  Gather and use demographic data through web contacts and social media.

—  Use electronic data interchange, the business-to-business exchange of data.

—  Reach prospective and established customers by E-mail or fax (for example, with newsletters).

—  Use business-to-business buying and selling.

—  Provide secure business transactions.

Advantages and Disadvantages of E-commerce

                                       The invention of faster internet connectivity and powerful online tools has resulted in  E-commerce. Ecommerce offered many advantages to companies and customers but it also caused many problems.

Advantages of E-commerce

·        Faster buying/selling procedure, as well as easy to find products.

·        Buying/selling 24/7.

·        More reach to customers, there is no theoretical geographic limitations.

·        Low operational costs and better quality of services.

·        No need of physical company set-ups.

·        Easy to start and manage a business.

·        Customers can easily select products from different providers without moving around physically.

Disadvantages of E-commerce

·        Any one, good or bad, can easily start a business. And there are many bad sites which eat up customers’ money.

·        There is no guarantee of product quality.

·        Mechanical failures can cause unpredictable effects on the total processes.

·        As there is minimum chance of direct customer to company interactions, customer loyalty is always on a check.

·        There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways; all are always prone to attack.

MODELS OF E-COMMERCE

There are multiple models of sales scenario in e-commerce.

Business-to-Consumer (B2C)

In a Business-to-Consumer E-commerce environment, companies sell their online goods to consumers who are the end users of their products or services. Usually, B2C E-commerce web shops have an open access for any visitor.

Business-to-Business (B2B)

In a Business-to-Business E-commerce environment, companies sell their online goods to other companies without being engaged in sales to consumers. The B2B market has two primary components: e-frastructure and e-markets. E-frastructure is the architecture of B2B, primarily consisting of the following:

• logistics - transportation, warehousing and distribution (e.g., Procter and   Gamble);

• application service providers - deployment, hosting and management of packaged software from a central facility (e.g., Oracle and Link share);

• outsourcing of functions in the process of e-commerce, such as Web-hosting, security and customer care solutions (e.g., outsourcing providers such as share, Net Sales, IXL Enterprises and Universal Access);

Consumer-to-Business (C2B)

In a Consumer-to-Business E-commerce environment, consumers usually post their products or services online on which companies can post their bids

Consumer-to-Consumer (C2C)

In a Consumer-to-Consumer E-commerce environment consumers sell their online goods to other consumers.

Role of e-commerce in modern  world

Electronic commerce, or Ecommerce, which literally means business trading through the Internet, has been around the globe since mid 90s. However, until the recent few years, Ecommerce is getting more and more attention from entrepreneur and consumers, both local and international. One of the main reasons is  the highly successful operations of some well known names on the Internet, such as eBay, Yahoo and Dell. From the business viewpoint, E-commerce is much more cost effective compared to traditional commerce method. This is due to the fact where through Ecommerce, the cost for the middleperson to sell their products can be saved and diverted to another aspect of their business.

E-COMMERCE WEBSITES

Numerous sites are created online every day. Individuals and companies are taking the opportunity to buy and sell online. Small businesses, entrepreneurs, and corporations are seeing the value in selling online and aren't letting it slip through their hands. With the rapid growth of the Internet, it is only a matter of time before every good and service can be found, bought, and delivered through the Internet. Businesses are able to get directly inside their potential consumers homes with the click of a mouse.

E-commerce is becoming more important in businesses as the Internet grows and competition becomes fiercer. It has multiple advantages for both consumers and businesses alike. From the business perspective, with less time spent during each transaction, more transactions can be achieved on the same day, more money is made. This time factor is also beneficial from a consumer standpoint. 

An e-commerce website will allow you to shop all of these categories, but in the comfort of your own home, behind a computer screen. An e-commerce website will allow you to shop all of these categories, but in the comfort of your own home, behind a computer screen. It will become essential for a company to have one to survive and stay competitive in the ever changing market.

IMPORTANCE AND USES OF E-COMMERCE IN THE MODERN WORLD

1.     Exploitation of New Business

Broadly speaking, electronic commerce emphasizes the generation and exploitation of new .business opportunities and to use popular phrases: “generate business value” or “do more with less”.

 3.     Improvement of Business Transaction

Electronic Commerce endeavors to improve the execution of business transaction over various networks.

4.     Effective Performance

It leads to more effective performance i.e. better quality, greater customer satisfaction and better corporate decision making.

5.     Greater Economic Efficiency

We may achieve greater economic efficiency (lower cost) and more rapid exchange (high speed, accelerated, or real-time interaction) with the help of electronic commerce.

6.     Execution of Information

It enables the execution of information-laden transactions between two or more parties using inter connected networks. These networks can be a combination of ‘plain old telephone system’ (POTS), Cable TV, leased lines and wireless.

7.     Incorporating Transaction

Electronic Commerce also incorporates transaction management, which organizes, routes, processes and tracks transactions. It also includes consumers making electronic payments and funds transfers.

8.     Increasing of Revenue

Firm use technology to either lower operating costs or increase revenue. Electronic Commerce has the Potential to increase revenue by creating new markets for old products, creating new information-based products, and establishing new service delivery channels to better serve and interact with customers.

9.   Facilitating of Network Form

                                          Electronic Commerce is also impacting business to business interactions. It facilitates the network form of organization where small flexible firms rely on other partner, companies for component supplies and product distribution to meet changing customer demand more effectively

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BENEFITS OFFERED BY E-COMMERCE TO THE MODERN WORLD

E Commerce is one of the most important facets of the Internet to have emerged in the recent times. Ecommerce or electronic commerce involves carrying out business over the Internet with the assistance of computers, which are linked to each other forming a network. To be specific ecommerce would be buying and selling of goods and services and transfer of funds through digital communications.

BENEFITS OF E-COMMERCE

• Ecommerce allows people to carry out businesses without the barriers of time or distance. One can log on to the Internet at any point of time, be it day or night and purchase or sell anything one desires at a single click of the mouse.
• The direct cost-of-sale for an order taken from a web site is lower than through traditional means (retail, paper based), as there is no human interaction during the on-line electronic purchase order process.
• Ecommerce is ideal for niche products. Customers for such products are usually few. But in the vast market place i.e. the Internet, even niche products could generate viable volumes.
•  It is the cheapest means of doing business.
• The day-to-day pressures of the marketplace have played their part in reducing the opportunities for companies to invest in improving their competitive position. A mature market, increased competitions have all reduced the amount of money available to invest. From the buyer’s perspective also ecommerce offers a lot of tangible advantages.

1.     Reduction in buyer’s sorting out time.

2.     Better buyer decisions

3.     Less time is spent in resolving invoice and order discrepancies.

4.     Increased opportunities for buying alternative products.

• The strategic benefit of making a business ‘ecommerce enabled’, is that it helps reduce the delivery time, labour cost and the cost incurred in the following areas:

1.     Document preparation

2.     Error detection and correction

3.     Reconciliation

4.     Mail preparation

5.     Telephone calling

6.     Credit card machines

7.     Data entry

8.     Overtime

9.     Supervision expenses

• Operational benefits of e commerce include reducing both the time and personnel required to complete business processes, and reducing strain on other resources.

Benefits of e-commerce to customers

Workers, suppliers, DISTRIBUTORS AND COMPETITORS

                                                     E-commerce facilitates organization networks, wherein small firms depend on “partner” firms for supplies and product distribution to address customer demands more effectively. To manage the chain of networks linking customers, workers, suppliers, distributors, and even competitors, an integrated or extended supply chain management solution is needed. Supply chain management (SCM) is defined as the supervision of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer. It involves the coordination and integration of these flows both within and among companies. The goal of any effective supply chain management system is timely provision of goods or services to the next link in the chain (and ultimately, the reduction of inventory within each link).

There are three main flows in SCM, namely:

• The product flow, which includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs;

• The information flow, which involves the transmission of orders and the update of the status of delivery; and

• The finances flow, which consists of credit terms, payment schedules, and consignment and title ownership arrangements.

Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise, called the extended enterprise, and includes key suppliers, manufacturers, and end customers of a specific company. Shared data resides in diverse database systems, or data warehouses, at several different sites and companies. Sharing this data “upstream” (with a company’s suppliers) and “downstream” (with a company’s clients) allows SCM applications to improve the time-to-market of products and reduce costs. It also allows all parties in the supply chain to better manage current resources and plan for future needs.

 Old Economy Relationships vs. New Economy Relationships

BENEFITS OFFERED BY E-COMMERCE TO BUYERS:

• Quick shopping and no need to visit marketplaces.
• Amazing discounts and deals enabled through online platforms, good way to save money.
• People can buy products available internationally.
• Multiple payment modes make it easier to shop online.
• Online shopping alerts make is easier for the users to grab quality shopping ideas & shopping anywhere.

The above mentioned points explain the importance of E-Commerce in today’s world as an interactive, cost effective, interesting and easier way of buying and selling products. Development in modern web and software technologies are elevating excellence and expanded options in this field.

CONCLUSION

                           In global market sense, the appearance of Ecommerce as a pioneer has opened up various windows of opportunities for a variety of other companies and investors. For instance, due to the booming of Ecommerce, more and more resources are being directed into electronic securities, internet facilities, business plans and new technologies. In short, if without any major obstacles, Ecommerce will certainly continue to mature in the global market and eventually, it will become an essential business plan for a company in order to survive and stay competitive in the ever changing market. So anyone can easily say e-commerce plays an important role in the national development. From the inception or the internet and E-commerce the possibilities have become endless for both business and consumers…

REFERENC  

1. ELECTRONIC COMMERCE:A MANAGER   GUIDE,ADDISSON,WESLE

2 .INTERNET COMMERCE:DIGITAL MODELS BUSINESS,LAWRENCE,WILEY

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