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] µElectronic commerce is sharing business information,
maintaining business relationships and conducting business
transactions by means of telecommunications networks¶
-By Vladimir Zwass
] Electronic Commerce (EC) is where business transactions
take place via telecommunications networks, especially the
Internet.
] Electronic commerce is about doing business electronically.
] E-commerce, ecommerce, or electronic commerce is defined
as the conduct of a financial transaction by electronic means.
 9


 
‡ Internet sales are less costly to fulfill

‡ Internet sales free up labour resources

‡ You can process Internet sales

efficiently at your convenience


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nder a very narrow and conservative
definition, the e-commerce infrastructure has
four parts:
^ hardware (PCs, routers, servers, etc.);
^ network service providers (e.g. Internet
access);
^ software to run the hardware and e-
commerce packages;
^ enabling services (e.g. e-payment,
authentication/certification services,
advertising, delivery)
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‡ E-commerce is not ³anything digital´ that a
firm does whereas E-business refer primarily
to the digital enabling of transactions and
processes within a firm, involving information
systems under the control of the firm.
‡ For example, a company¶s online inventory
control mechanisms are a component of e-
business, but such internal processes do not
directly generate revenue for the firm from
outside businesses or consumers, as e-
commerce, by definition, does.
  
  


] 

 Internet/Web technology is
available everywhere: at work, at home, and
elsewhere via mobile devices, anytime.
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   he technology reaches
across national boundaries, around the Earth.
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 here is one
set of technology standards, namely Internet
standards.
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Video, audio, and text messages
are possible.
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 he technology works
through interaction with the user.
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 he technology
reduces information costs and raises quality.
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he technology allows personalized
messages to be delivered to individuals as
well as groups.
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è ser content
generation and social networking.
EDI is the electronic transfer of information
between two trading partner¶s systems using
a set of transactions that have been adopted
as a national or international standard for the
particular business function.

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A set of applications and technologies that allows
users to create, edit, and distribute content;
share preferences, bookmarks, and online
personas; participate in virtual lives; and build
online communities.
‡ Some examples of web 2.0 applications and
sites:-
  Mhotobucket zooms from 4 million to 50 million
users and 3 billion consumer-generated photos
to become the most popular Web photo posting
site, offering users an easy way to post and send
photos and video, and provides a convenient
link to Youube, MySpace, and blog pages.
‡ Google attracts the largest Internet audience
with 85 million daily .S. users, and over 160
million international users, with a continual
stream of innovations such as Google Maps,
Google View, video and photo posting and
sharing, Gmail, and Google Scholar. Over
25% of Google search results on the world¶s
top 20 brands provide links to consumer-
generated content such as reviews, blogs,
and photos.
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] First, they rely on user- and consumer-
generated content.
] Second, easy search capability is a key to
their success.
] hird, they are inherently highly interactive,
creating new opportunities for people to
socially connect to others.
] Fourth, they rely on broadband connectivity to
the web.
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] Fifth, with the exception of Google, they are
currently marginally profitable, and their
business models unproven despite
considerable investment.
] Sixth, they attract extremely large audiences
when compared to traditional web 1.0
applications, exceeding in many cases the
audience size of national broadcast and cable
television programs. In short, they attract
eyeballs in very large numbers.


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‡ A business model is a set of planned activities
(sometimes referred to as business processes)
designed to result in a profit in a marketplace.
‡ he business model is at the center of the business
plan.
‡ A business plan is a document that describes a firm¶s
business model.
‡ A business plan always takes into account the
competitive environment.
‡ An e-commerce business model aims to use and
leverage the unique qualities of the Internet and the
World Wide Web.


  
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] Mobile commerce, or m-commerce, refers to the
use of wireless digital devices to enable
transactions on the web.
] m-commerce involves the use of wireless networks
to connect cell phones, handheld devices such
BlackBerries, and personal computers to the web.
] Once connected, mobile consumers can conduct
transactions, including stock trades, in-store price
comparisons, banking, travel reservations, and
more.
] m-commerce is used more widely in Japan and
Europe(especially in scandinavia),where cell
phones are more prevalent than in the nited
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‡ E-commerce, or the buying and selling

of goods and service over the internet,
has opened a whole new frontier for
small businesses.
‡ Develop a Highly Quality Virtual Catalog
‡ Advertise on Search Engines
‡ Negotiate Links with Other Websites
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‡ he foremost ecommerce strategy is to

implement a proper secure ecommerce
website.
‡ he ecommerce site design also play a
great role in its effectiveness.
‡ Ecommerce strategies are built to
address customers' issues.
‡ he basic strategy of ecommerce is to
categorize it to a specific trade.
  

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Online Banking

Online Mayment

Online Marketing

E-tailing

Newsgroup

Electronic ticket

Online shopping

eleconferencing
Instant Messaging
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‡
  is the process whereby consumers

directly buy goods or services from a seller in real-
time, without an intermediary service, over the
Internet. If an intermediary service is present the
process is called electronic commerce. An online
shop, e-shop, e-store, internet shop, web-shop, web-
store, online store, or virtual store evokes the
physical analogy of buying products or services at a
bricks-and-mortar retailer or in a shopping mall.
]  

‡ Internet marketing, also referred to as i-marketing,

web-marketing, online-marketing or e-Marketing, is
the marketing of products or services over the
Internet. he Internet has brought media to a global
audience
]  

‡ Online banking (or Internet banking) allows

customers to conduct financial transactions on a
secure website operated by their retail or virtual bank,
credit union or building society.
‡ ransactional (e.g., performing a financial transaction
such as an account to account transfer, paying a bill,
wire transfer... and applications... apply for a loan,
new account, etc.)
‡ -transactional (e.g., online statements, check links,
cobrowsing, chat)
]  

‡ An  is a retailer that primarily uses the Internet

as a medium for customers to shop for the goods or
services provided.
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‡ Online advertising is a form of promotion that uses

the Internet and World Wide Web for the expressed
purpose of delivering marketing messages to attract
customers. Examples of online advertising include
contextual ads on search engine results pages,
banner ads, Rich Media Ads, Social network
advertising, interstitial ads, online classified
advertising, advertising networks and e-mail
marketing, including e-mail spam.
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‡ A " !" is a repository usually within
the senet system, for messages posted from many
users in different locations.
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‡ An    facilitates the
acceptance of electronic payment for online transactions.
Also known as Electronic Data Interchange(EDI), e-
commerce payment systems have become increasingly
popular due to the widespread use of the internet-based
shopping and banking.
] 

‡ An  & or & is used to represent

the purchase of a seat on a passenger airline, usually
through a website or by telephone, or sometimes
through airline ticket offices or travel agencies. his
form of airline ticket rapidly replaced the older multi-
layered paper tickets (from close to zero to 100% in
about 10 years) and became mandatory for IAA
members as from June 1, 2008.
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‡ A  or  is the live

exchange and mass articulation of
information among several persons and
machines remote from one another but linked
by a telecommunications system. erms such
as audio conferencing, telephone
conferencing and phone conferencing are
also sometimes used to refer to
teleconferencing.
 

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^ Electronic commerce facilitates delivery public
services.
^ It enables people living in rural area to enjoy products
and services that otherwise are not available to them.
^ It enables individuals to work at home and to do less
traveling for shopping
^ resulting in less traffic on the roads and lower air
pollution.
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^ Increases sales/decreases cost
^ Makes promotion easier for smaller firms
^ Can be used to reach narrow market segments
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^ Makes it easier to obtain competitive bids Mrovides a
wider range of choices
Mrovides an easy way to customize the level of
detail in the information obtained


^ Increases the speed and accuracy with which
businesses can exchange information
^ Electronic payments (tax refunds, paychecks,etc.)
cost less to issue and are more secure
^ Can make products and services available in remote
areas
^ Enables people to work from home, providing
scheduling flexibility


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] Hard to integrate legacy systems with e-
commerce
] he necessary budget to invest in e-
commerce is not available
] oo hard to customize software packages to
meet your needs
] Software upgrades are too costly
] oo costly to keep bldg data current in facility
management systems
] Hard to evaluate e-commerce using return on
investment(ROI) .
  
  
    
^ here is lack of system security, reliability, standards and
some communication protocols.
^ here is insufficient telecommunication bandwidth.
^ he software development tools are still evolving and
changing rapidly.

     

^ Cost and justification
^ Security and privacy
^ Lack of trust and user resistance
  
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] Some business processes are not suited to

e-commerce, even with improvements in
technology
] Many products and services require a critical
mass of potential buyers (e.g. online grocers)
] Costs and returns on e-commerce can be
difficult to quantify and estimate
] Cultural impediments: Meople are reluctant to
change in order to integrate new technology
] he legal environment is uncertain: Courts
and legislators are trying to catch up
 

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It is the impact on costs ranging from
] the cost of owning and operating a physical
establishment...
] to carrying an inventory...
] to conducting a sale...
] to placing an order..
] to customer support and after-sales service...
] to simple purchase orders and
] product distribution that is expected to fuel strong
growth in the business-to-business segment of e-
commerce.


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] ¯-commerce is playing a catalytic role in

transforming the marketplace.
] ¯-commerce favours flatter organisational
forms and a flexible work force.
] ¯-commerce entails new ways of competing
in domestic and international markets.
] Smaller companies can benefit
disproportionately from the opportunities
offered by information technologies and
electronic commerce


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] Societal factors merit policy attention in order to
establish the social conditions that will allow
electronic commerce to reach its full economic
potential and to ensure that its benefits are realised
by society as a whole.
] Policies that promote the development and
availability of information technologies and access
to advanced networks may be required.
] The correlation between income and access to the
Internet means that policies to ensure access for
lower income groups may be needed.
  ?$

] 0 better understanding of the impact of e-commerce on

time use is needed because availability of free time is a
driver of demand for e-commerce, since many of its
products are interactive.

] More generally, it is necessary to better understand the

impact of faster and more interlinked exchanges on
individuals,organisations,governments and communities

] The customers must generate trust on e-commerce

    
here are definitely several positive and negative opportunities that
ecommerce has brought on in the past couple years. Globalization is
an important aspect of ecommerce, as it is a result of online
communications. E-commerce has the potential to accelerate existing
trends and introduce new ways of conducting business, organizing
work and interacting in society.
Finally, you may say, µWell, now that I understand what electronic
commerce is, how it works, why it is so important and its benefits, as
well as how to be successful in it, how do I start my own E-
Commerce Website.¶ Well, first of all you need a product or service
to sell and system for delivering them to potential
customers. Secondly, you need a Website (preferably professionally
done) to which you can add E-Commerce capabilities. Also, you
need some way of accepting on-line payments, particularly from
credit cards. Last, but definitely not least, you need an effective
strategy for marketing your site and attracting customers.