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Depth Study Of Electronic Commerce Business Nature

Depth Study Of Electronic Commerce Business Nature

Electronic commerce is defined as a conduction of business transaction and communication over computers and internet networks. In simple words, electronic commerce can be described as selling and buying or products and services and transfer of business related commercial documents and funds through digital communications.

Strategic Insights

Electronic commerce also includes use of the internet and the World Wide Web for manufacturing, marketing, financial negotiations through Teleconferencing, File Transfer, Video Conferencing, interaction via electronic mail (e-mail).

Electronic commerce can also be defined from the following viewpoints:
Communications– From a communication point of view, e-commerce is the supply of products, services, payments and information over computer networks or by any other electronic means.

Commercial (Trading) – From a commercial point of view, e-commerce offers the potential of buying and selling goods, services and information on the Internet and through other online services

Business Process – From a business process point of view, e-commerce is the medium of doing business electronically by completing various business processes over electronic networks

Service – From a service point of view, e-commerce is a component that addresses the desire of governments, companies, consumers, and management to reduce service costs while enhancing the quality of customer service and improving the speed of service delivery

Learning – From a learning point of view, e-commerce is an facilitator of online training and education in schools, universities and other business organizations . The University of Phoenix is one of the universities that offers online education with various of course options for eager students.

Collaborative – From a collaborative point of view, e-commerce is the framework of inter and intra organizational collaboration

Community – From a community point of view, e-commerce offers a gathering place for community members to learn transact and collaborate

Advantages and Disadvantages of Electronic Commerce:

There are several advantages and disadvantages of electronic commerce application for customers, business and non-profit organizations. Different levels of product information can be obtained online globally through the Internet, which makes very easy for customers to compare and evaluate the particular product or service.

Electronic commerce can offer wide range of choices to extend markets and opportunities to both consumers and business firms. Customers could save delivery time because of contribution of digital services and product.

On other hand, business firms could decrease operating and marketing cost and increase profit. The negative aspect of electronic commerce includes different anticipations of products such as clothes when the customers are purchasing online. Another disadvantage associated with electronic commerce includes issues related to security and privacy of customers’ credit card detail.

Effect of Electronic Commerce:

The invention of electronic commerce has changed the conventional means of online exchanges and transaction. It is generating a novel market place and opportunities for the restructure of economic processes in a more competent way.

The world wide structure of the Internet and the very low prize of using it, allows the interconnection of novel and present information and communication technologies. It provides business firms and consumers a pioneering and strong information system and another medium of communication.

This changes the way consumer search and purchase goods or services among the highly customized, distributed and exchanged different products or services.