WHAT IS E-COMMERCE

A free article on Ecommerce

By: Barry Johnson

E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet, especially the World Wide Web. In practice, this term and a newer term, e-business, are often used interchangeably. For online retail selling, the term e-tailing is sometimes used.

While e-commerce once required an expensive interface and personal security certificate, this is no longer the case. Virtual storefronts are offered by a variety of hosting services and large Internet presences such as eBay and Yahoo!, which offer turnkey solutions to vendors with little or no online experience. Tools for running successful e-commerce websites are built into the hosting servers, eliminating the need for the individual merchant to redesign the wheel. These tools include benefits like shopping carts, inventory and sales logs, and the ability to accept a variety of payment options including secure credit card transactions. Even personal services such as hair and nail salons can benefit from E-commerce by providing a website for the sale of related health and beauty products normally available to local customers exclusively.

E-commerce can be divided into:
1. E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall"

2. The gathering and use of demographic data through Web contacts

3. Electronic Data Interchange (EDI), the business-to-business exchange of data

4. e-mail and fax and their use as media for reaching prospects and established customers (for example, with newsletters)

5. Business-to-business buying and selling

6. The security of business transactions.

The growing popularity of E-commerce is understandable considering the time and hassle involved in running from store to store, searching for an item in the real world. It not only takes valuable time and encourages cities and high gas prices, shopping online wherever the mood strikers even in the night, has unarguable, uneatable advantages.

Benefits of E-Commerce:
E-commerce can provide the following benefits over non-electronic communication:
1. Reduced Costs: reduced labor, reduced paper work, reduced errors in keying in data, etc.

2. Reduced Time: shorter lead times, faster delivery of product.

3. Flexibility with Efficiency: the ability to handle complex situations, product ranges and customer profiles without the situation becoming unmanageable.

4. Enhanced Long-Term Trading Partner Relationships: improved communication between trading partners leads to enhanced long-term relationships.

5. Lock in Customers: the closer you are to your customer and the more you work with them to change from normal business practices to best practice e-commerce the harder it is for a competitor to upset your customer relationship.

6. New Markets: the Internet has the potential to expand your business into wider geographical locations. However, it is necessary to develop the appropriate production capacity and distribution channels to support market demands generated by promoting your business to a larger marketplace.

E-commerce provides many new ways for businesses and consumers to communicate and conduct business. There are a number of advantages of conducting business in this manner.1. 24/7 -online shops don’t close.2. Easy to 'shop around'.3. Speed. 4. Offers tangible advantages to perspective buyers.5. Help to reduce delivery time.6. Improve customer’s relationships.7. Reduce strain. 8. Secure payments.

Some of the disadvantages of e commerce are:
1. Time for delivery of physical products take time and cost money.

2. Unable to examine product personally.

3. Issue of security.

4. High marketing/ advertising expenses.

5. Limited and selected sensory information.

6. Limited market place.

7. Need trainee and maintenance for the facility of the company.

8. Website stickiness and customer’s loyalty.

Information about the Author:

Barry Johnson writes articles about the latest developments in technology, electronic commerce and many other topics. He'd like to inform you that he is ready to provide you the best web articles. For more information on Search Engine Optimization, please go to www.smartimeinc.com">www.smartimeinc.com

Ecommerce Articles: http://www.article-buzz.com

Print This Article
Add To Favorites
Email to Friends
Get Re-print Code