E-Commerce

E-commerce: - Electronic commerce, commonly known as E-commerce or ecommerce, 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.

 

E-commerce businesses usually employ some or all of the following practices:-

 

1.       Buy or sell on online market places. 

2.       Use electronic data interchange, the business-to-business exchange of data.
3.               Use business- to- business buying and selling.
4.       Provide secure business transactions.
5.       Engage in pretail for launching new products and services

A timeline for the development of e-commerce:

·       1979: Michael Aldrich demonstrated the first online shopping system.

·       1996: IndiaMart B2B marketplace established in India.

·       2000: The dot-com bust.

·       2001: Alibaba.comachieved profitability in December 2001.

·       2003: Amazon.com posted first yearly profit.

·       2007: Flipkart was established in India. Business.com acquired by R.H. Donnelley for $345 million.

 

 

Business applications

·         Document automation in supply chain and logistics

·         Domestic and international payment systems

·         Enterprise content management

·         Group buying

·         Print on demand

·         Automated online assistant

·         Newsgroups

·         Online shopping and order tracking

·         Online banking

·         Online office suites

·         Shopping cart software

·         Teleconferencing

·         Electronic tickets

·         Social networking

·         Instant messaging

Governmental regulation

In the United States, some electronic commerce activities are regulated by the Federal Trade Commission (FTC). These activities include the use of commercial e-mails, online advertising and consumer privacy.

 

In India, the Information Technology Act 2000 governs the basic applicability of e-commerce. It is based upon UNCITRAL Model but is not a comprehensive legislation to deal with e-commerce related activities in India. Further, e-commerce laws and regulations in India are also supplemented by different laws of India as applicable to the field of e-commerce.

 

For instance, e-commerce relating to pharmaceuticals, healthcare, traveling, etc. are governed by different laws though the information technology act, 2000 prescribes some common requirements for all these fields.

Forms

Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce.

On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce.

Global trends

In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the amount spent per capita.  Almost a quarter (24%) of the country’s total turnover is generated via the online channel.

 

Among emerging economies, China's e-commerce presence continues to expand every year. With 384 million internet users, China's online shopping sales rose to $36.6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers.

E-Commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them.

 

Impact on markets and retailers

Economists have theorized that e-commerce ought to lead to intensified price competition as it increases consumers' ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshops and travel agencies. Generally, larger firms are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend.

Individual or business involved in e-commerce whether buyers or sellers rely on Internet-based technology in order to accomplish their transactions. E-commerce is recognized for its ability to allow business to communicate and to form transaction anytime and anyplace. Whether an individual is in the US or overseas, business can be conducted through the internet. The power of e-commerce allows geophysical barriers to disappear, making all consumers and businesses on earth potential customers and suppliers. eBay is a good example of e-commerce business individuals and businesses are able to post their items and sell them around the Globe.

Examples of E-commerce system

According to eMarketer research company, "by 2017, 65.8 per cent of Britons will use smart phones". (Cited by Williams, 2014)

Bringing online experience into the real world, allows also the development of the economy and the interaction between stores and customers. A great example of this new e-commerce system is what the Burberry store in London did in 2012. They refurbished the entire store with numerous big screens, photo-studios, and also provided a stage for live acts. Moreover, on the digital screens which are across the store, some fashion shows´ images and advertising campaigns are displayed. (William, 2014) In this way, the experience of purchasing becomes more vivid and entertaining while the online and offline components are working together. Another example could be Kidd care Smartphone app, in which costumers can compare prices against adversaries. Moreover, the app allows people to know where the sale products are and to check whether the item they are looking for is in stock or if they have to ask for it online without going to the `real´ store. (William, 2014) In the United States, Walmart app in which you can check the product availability and prices both online and offline. Moreover, you can also add to your shopping list items by scanning them, see their details and information, and check purchasers´ ratings and reviews.