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Unit 10. E-COMMERCE
Electronic commerce, commonly written as e-commerce, is the trading or facilitation of 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), 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 may employ some or all of the following:
Online shopping web sites for retail sales direct to consumers
Providing or participating in online marketplaces, which process third-party business-to-consumer or consumer-to-consumer sales
Business-to-business buying and selling
Gathering and using demographic data through web contacts and social media
Business-to-business electronic data interchange
Marketing to prospective and established customers by e-mail or fax (for example, with newsletters)
Types of e-commerce
Business-to-business (B2B) refers to a situation where one business makes a commercial transaction with another. This typically occurs when:
A business is sourcing materials for their production process (e.g. a food manufacturer purchasing salt).
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A business needs the services of another for operational reasons (e.g. a food manufacturer employing an accountancy firm to audit their finances).
A business re-sells goods and services produced by others (e.g. a retailer buying the end product from the food manufacturer).
B2B is often contrasted against business-to-consumer (B2C). It is business or transactions conducted directly between a company and consumers who are the end-users of its products or services. Business to consumer as a business model differs significantly from the business to business model, which refers to commerce between two or more businesses. While most companies that sell directly to consumers can be referred to as B2C companies, the term became immensely popular during the dotcom boom of the late 1990s, when it was used mainly to refer to online retailers, as well as other companies that sold products and services to consumers through the Internet.
Consumer to consumer (C2C) is a business model that facilitates an environment where customers can trade with each other. It involves the electronically facilitated transactions between consumers through some third party. A common example is the online auction, in which a consumer posts an item for sale and other consumers bid to purchase it; the third party generally charges a flat fee or commission. The sites are only intermediaries, just there to match consumers. They do not have to check quality of the products being offered.
One of the most successful and famous e-commerce companies is eBay Inc. an American multinational corporation, providing consumer-to-consumer and business-to-consumer sales services via the internet. It is headquartered in San Jose, California. eBay was founded by Pierre Omidyar in 1995, and became a notable success story of the dot-com bubble. Today it is a multibillion-dollar business with operations localized in over 30 countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. The website is free to use for buyers, but sellers are charged fees for listing items and again when those items are sold.
