About e-commerce

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E-COMMERCE

CONCEPT OF E-COMMERCE

e-commerce(electronic commerce) is the process of carrying out of business activities through the internet.It involves buying and selling products, services and information via computer networks including the internet. in other words e-commerce involves electronic trading of goods, services and electronic material.
e-commerce helps in conducting commercial transactions through new ways of transferring and processing of information. It implies paperless exchange of business information using EDI(electronic data interchange), e-mail(electronic mail), electronic bulletin boards, electronic funds transfer and other network based technology.
 
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E-COMMERCE v/s TRADITIONAL COMMERCE

e-commerce differs from the traditional commercial methods because it uses information technology (IT) to carry out trading in goods and services. e-commerce has emerged as an important system of trading in goods and services both at the national and international levels. 
e-commerce involves three phases as follows:
  1.  there is an electronic advertising of goods and services over the internet;
  2. agreements are concluded over the internet by using servers;
  3. physical goods are transferred through various means of transport and in case of digitized products, delivery is made electronically.

BENEFITS OF E-COMMERCE

1.WIDER REACH:- e-commerce has increased the reach of business firms. They can make sales to customers spread over different parts of the world.
2.DIRECT CONTACT:- It helps the business firms to establish direct contacts with the customers' It allows the firm to focus on specific types of customers. Cost of intermediaries or middlemen are saved.
3.QUICK RESPONSE:-It allows quick response to the queries of customers and other business houses through the internet.
4.SALES PROMOTION:-It can be used as a tool of sales promotion . Catalogues and other business information (like launching of new product) can be transmitted to people and traders through the internet. 
5.SAVING OF TIME AND EFFORT:-There is paperless exchange of information. This saves lot of time, money and energy in receiving orders and executing the same under the traditional mode of commerce. Thus less clerical work is involved

OPPORTUNITIES OF E-COMMERCE

1.SALE AND PURCHASE OF GOODS:- Consumers can buy products, producers can procure raw material, components etc., and producers and sellers can sell their products by using e-commerce.
2.DELIVERY OF GOODS:-Direct e-commerce permits the delivery of products online. For example, the computer software is directly downloaded by the software manufacturer on the computer of the customer.
3.ELECTRONIC PAYMENTS:-Payments can be made by utilising  e-commerce devices like credit card, debit card, and electronic transfer, etc.
4.INSURANCE:-Insurance companies can utilise e-commerce facilities. Customers can enquire about insurance products and can also subscribe to a policy through e-commerce media like fax, internet, etc.
5.TRANSPORTATION:-Transportation is crucial  for handling and delivery of raw material, components, equipments and finished products. Facilities for carriage of goods by sea or air can be arranged and monitored by internet facility.
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'' THE E-COMMERCE INDUSTRY IS A FORCE THAT NO INVESTOR CAN AFFORD TO IGNORE''

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