Ever since the emergence of the digital and internet era, the world has been revolutionized, not only in terms of communication and access to information, but almost everything else is doable now in a matter of few minutes. One example is, not only students can research for their school work, they can even get their essays and assignments done online through assignment writing services.
The internet has also revolutionized business and commerce worldwide. Of course, coupled with the dramatic improvements in transportation and freight industries. Today, the whole world – information, goods, and services are within reach from anywhere in the globe.
People no longer have to be constrained by geographical limitations in terms of purchasing products and even services. Using only mobile phones and laptops, a few clicks and credit card details, we can finally purchase anything from anywhere in the world.
How is this possible? One thing – E-commerce. Not only this has revolutionized how businesses are conducted globally, but it also allowed for the birth of E-commerce companies such as Amazon, Jingdong, Alibaba, e-Bay, and a lot more. In fact, thanks E-commerce, Amazon founder – Jeff Bezos is currently the richest man on earth.
Now, let’s get down to business – Here are 4 Major Things You Need to Know About E-commerce.
But first, what is E-Commerce, really?
Well E-commerce obviously stands for electronic commerce, which is basically a trading platform for goods and services that does not involve physical exchange or physical transaction. It’s basically the same concept for online auctions.
So what are the things you need to know about E-commerce, really?
First, according to Gupta (2014) there are 5 kinds of E-commerce.
E-commerce is not just any transaction that involves electronic trade – although this is the general definition, there are 5 different kinds of it.
1) Business-to-Business (B2B)
B2B is E-commerce through which transactions occur between business to business. B2B market consists of 2 major components: e-frastructure and e-markets.
2) Business-to-Consumer (B2C)
B2C is E-commerce through which transactions occur between companies and consumers. Under B2C, search costs are reduced on the consumer’s end.
3) Consumer-to-Business (C2B)
C2B is E-commerce through which transactions occur between private individuals or consumers. C2B involves electronic marketplaces and online auctions.
4) Business-to-Government (B2G)
B2G is E-commerce through which transactions occur between businesses and the public sector. This involves transactions such as public procurement, licensing procedures and any other business involving the government.
5) Mobile Commerce (M-Commerce)
M-Commerce is E-Commerce through which transaction is possible through the use of mobile devices such as cellphones. The acquisition or access to goods and services are done through mobile device. Example of M-commerce is mobile banking.
Second, who are the major participants in E-commerce? And what specific functions are involved?
As already hinted above, participants in E-commerce are suppliers, producers, intermediary, consumer and the government.
According to Molla (2001) the important functions of E-commerce are:
1) Production – The primary component of commerce, just like any other forms of businesses.
2) Communication – Which is an important component in conducting E-commerce. Given the internet and mobile devices such as cellphones, and portable devices such as laptops, make transactions easier as compared to personal communications.Â
3) Human Resource – Just like other forms of businesses, this is of course tasked to manage employees.
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4) Advertising – Unlike traditional ways such as billboards, posters, and newspapers, advertising in E-commerce mostly involves digital marketing.
5) Distribution, Selling, Buying, Delivery and Payment Processing – Are all functions made mobile and easier by E-commerce as compared to traditional methods of conducting business.
While the application solutions are as follows:
These are solutions involved in E-Commerce which separates it as one of the most efficient forms of conducting business:
E-Mail, World Wide Web, Customer Relationship Management, Supplier Relationship Management, Electronic Document Interchange, E-Wallet, Auction and Electronic Funds Transfer.
Third, how does supply and demand defer in E-commerce?
According to Liu and Ye (2001), this is where E-commerce differs greatly compared to other forms of conducting business.
Supply and Demand in E-commerce differs because of its complex nature. Through the internet, E-commerce has access to a wide varying market available online.
In dealing with supply and demand, and a wide varying market available on the internet, E-commerce uses an enterprise infrastructure involving networks, the internet, servers, database and other technologies such as business and marketing intelligence, for example: marketing algorithms which can assess consumer preferences.
Fourth, E-commerce seems to be the perfect option to conduct businesses and opens a wide range of opportunities for businesses, but what are the risks really of heavily relying on technology and digital solutions?
One obvious answer is: security issues.
According to Liu and Ye (2001), security issues in E-commerce lies in aspects such as:
1) Unreliable or poor methods of recognizing authorized users, which risks businesses and consumers.
2) Existence of malicious agents, which risks businesses and consumers.
3) Possible unstable secured communications, which can risk private information of both consumers and businesses.
4) Possible unsecured transactions, which can risk private information of both consumers and businesses.
In conclusion, the world is continually evolving as technology accordingly evolves. This opens to innovative opportunities and solutions for businesses worldwide.
E-commerce may be as advanced as it is, but who would’ve known 60 years ago that trading could take a great leap as it has in the previous years? We can only expect more of the future of business and commerce.
Sources:
Gupta, A. (2014). E-Commerce: Role of E-commerce in Today’s Business. International Journal of Computing and Corporate Research, 4(1), 1-8.
Liu, J., & Ye, Y. (2001). Introduction to E-Commerce Agents: Marketplace Marketplace Solutions, Security Issues, and Supply and Demand. In E-Commerce Agents (pp. 1-6). Springer, Berlin, Heidelberg.
Molla, A., & Licker, P. S. (2001). E-commerce systems success: An attempt to extend and respecify the Delone and MacLean model of IS success. J. Electron. Commerce Res., 2(4), 131-141.
