Module I: E-commerce Foundation

Definitions and content of EC field


There are many definitions of e-business and e-commerce. Three main schools of thought are

1. e-Commerce is an activity that deals with transaction of product, services, or information using electronic media, usually online using computers and Internet technologies. As per this school of thought, e-commerce and e-business are two different domains with considerable overlap.
2. From an interface perspective, e-commerce involve various information and transaction exchanges: B2B, B2C, C2C.
3. From an online perspective, e-commerce is an electronic environment that makes it possible to buy and sell products, services and information on the net. Products may be physical such as cars or services such as news or consulting.
4. As a market, e-commerce is a worldwide network. A local store can open a web storefront and find the world its door step- customers, suppliers, competitors and payment services.

Reasons for Success of e-Commerce:-

1. Global reach that helps in increasing the customer base.
2. Creates more sources of revenue such as advertisements.
3. Results in cost savings by eliminating overheads in several business processes such as order processing.
4. e-Commerce is ubiquitous because it is accessible from any place where Internet accessibility exists. 
5. There are less barriers because Internet is globally available and it requires much less resources to deploy e-commerce applications on the Internet.
6. It provides quick and easy access to rich information to everyone- customers, suppliers, and employees.
7. Increase in productivity gains all around.
8. It helps in offering personalized services to build customer loyalty.