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Electronic Commerce, E-commerce & E-Business features
What is E-Commerce?
- Electronic commerce, or E-commerce, is basically buying and selling things online.
- Instead of going to a physical store, you use the internet to browse products, make purchases, and sometimes even get them delivered right to your door.
- So, whenever you buy something from a website like Amazon or eBay, you're participating in e-commerce.
- In e-commerce, businesses use websites or online platforms to showcase their products or services.
- Customers can visit these websites, browse through the available items, and make purchases using their computers and smartphones.
Evolution of eCommerce
- It encompasses the transformation of online shopping from its early stages to its current state, including advancements in technology, changes in consumer behavior, and shifts in business strategies.
- Essentially, it's about how e-commerce has grown, adapted, and improved over time to meet the needs of businesses and consumers in an ever-changing digital landscape.
Invention of the Internet
- E-commerce began with the invention and widespread adoption of the Internet.
- This allowed businesses to connect with customers online and offer products and services through websites.
Emergence of Online Marketplaces
- Online marketplaces like eBay and Amazon emerged, providing platforms for businesses to sell their products to a wider audience.
- These marketplaces made it easier for small businesses to reach customers beyond their local area.
Advancement in Online Payment Systems
- The development of secure online payment systems, such as PayPal and credit card processing, enabled customers to make purchases safely and conveniently over the Internet.
- This increased consumer confidence in shopping online.
Expansion of Mobile Commerce
- The rise of smartphones and mobile devices led to the growth of mobile commerce (m-commerce).
- Consumers could now shop online anytime, anywhere, using their mobile phones, which further accelerated the growth of e-commerce.
Integration of Social Media and E-commerce
- Social Media platforms like Facebook, Instagram, and Pinterest integrated e-commerce features, allowing businesses to sell products directly through their social media profiles.
- This made it easier for businesses to reach and engage with customers, driving through growth in e-commerce.
eCommerce Vs eBusiness
Nature of Transaction
- E-commerce specifically refers to online buying and selling transactions.
- it involves the exchange of goods or services between businesses and consumers or between businesses themselves.
- E-business, on the other hand, encompasses a broader range of online activities beyond just buying and selling.
- It includes various aspects of business operations conducted electronically, such as online marketing and supply chain management.
Scope of Activities
- E-commerce primarily focuses on the online transactions involved in buying and selling goods or services.
- E-business encompasses a wider range of activities, including online transactions as well as other electronic business processes such as online marketing, customer services, and supply chain management.
Customer Interaction
- In e-commerce, customer interaction is primarily centered around buying and selling, such as browsing products, making purchases, and providing feedback or reviews.
- In e-business, customer interaction extends beyond transactions to include various forms of online engagement, communication, and support throughout the customer journey.
Business Model
- E-commerce typically follows a transaction-based business model, where revenue is generated by selling goods and services online.
- E-business may encompass multiple business models beyond just transactions, such as subscription-based models, advertising revenue models, or licensing and partnership arrangements.
Technological Integration
- E-commerce relies heavily on technology to facilitate online transactions, including secure payment gateways, shopping carts, etc.
- E-business involves the integration of technology across various aspects of business operations, such as enterprise resource planning (ERP) software and data analytics tools.
Features of eCommerce
Global Reach
- E-commerce enables businesses to access a worldwide audience without requiring physical brick-and-mortar stores.
- This means companies can sell their products or services to customers all around the world, expanding their market reach beyond geographical boundaries.
24/7 Availability
- Unlike traditional brick-and-mortar stores with fixed operating hours, e-commerce websites are accessible 24 hours a day, 7 days a week.
- This means customers can shop at their convenience, anytime, anytime, anywhere without being restricted by store hours.
Convenience
- E-commerce provides unmatched convenience for both businesses and customers.
Customers have the convenience of exploring products, comparing prices, and completing purchases from their own residences.
Personalization
- E-commerce platforms can use data analytics and customer information to tailor the shopping experience.
This involves suggesting products based on previous buying history.
- Preferences and browsing history, thereby enhancing customer satisfaction and loyalty.
Flexibility and Scability
- E-commerce provides businesses with the flexibility to adapt and scale their operations according to demand.
- Whether it's adding new product lines, expanding into new markets, or adjusting inventory levels, e-commerce platforms offer the stability needed to accommodate business growth and changes.
Conclusion
We have explored Electronic Commerce, Evolution of e-commerce, E-commerce & E-Business, Unique features of e-commerce.
