Many think that E business is same as E commerce where the fact is that they are a bit different. E commerce is the process of buying, selling, transferring or exchanging of products, services or information using internet (IT).
WHERE
E Business is a broader definition of EC, including buying and selling of goods and services, and also servicing customers, collaborating with partners, conducting e-learning and conducting electronic transactions within an organization.
Not every organization that uses E commerce are purely online. Electronic Commerce depends on the degree of digitization involved :
Brick-and-mortar organizations are purely physical organizations.
Virtual organizations are companies that are engaged only in EC. (Also called
pure
play)
Click-and-mortar organizations are those that conduct some e-commerce
activities, yet their business is primarily done in the physical
world. i.e. partial
EC.
Types of E commerce :
- Business to Business (B2B)
Website following B2B business model sells its product to an intermediate buyer who then sells the product to the final customer. As an example, a wholesaler places an order from a company's website and after receiving the consignment, sells the end product to final customer who comes to buy the product at wholesaler's retail outlet.
Business to Consumer(B2C)
Website following B2C business model sells its product directly to a customer. A customer can view products shown on the website of business organization. The customer can choose a product and order the same. Website will send a notification to the business organization via email and organization will dispatch the product/goods to the customer.
Consumer to Consumer (C2C)
Website following C2C business model helps consumer to sell their assets like residential property, cars, motorcycles etc. or rent a room by publishing their information on the website. Website may or may not charge the consumer for its services. Another consumer may opt to buy the product of the first customer by viewing the post/advertisement on the website.
Consumer to Business (C2B)
In this model, a consumer approaches website showing multiple business organizations for a particular service. Consumer places an estimate of amount he/she wants to spend for a particular service. For example, comparison of interest rates of personal loan/ car loan provided by various banks via website. Business organization who fulfills the consumer's requirement within specified budget approaches the customer and provides its services.
Business to Government (B2G)
B2G model is a variant of B2B model. Such websites are used by government to trade and exchange information with various business organizations. Such websites are accredited by the government and provide a medium to businesses to submit application forms to the government.
Government to Business (G2B)
Government uses B2G model website to approach business organizations. Such websites support auctions, tenders and application submission functionalities.
Government to Citizen (G2C)
Government uses G2C model website to approach citizen in general. Such websites support auctions of vehicles, machinery or any other material. Such website also provides services like registration for birth, marriage or death certificates. Main objectives of G2C website are to reduce average time for fulfilling people requests for various government services.
- Mobile Commerce
E commerce depends on three main mechanisms :
- Auction where buyers and seller exchange goods and services
- Forward auction as a channel to many potential buyers. Highest bid wins
- Reverse auctions, one buyer, usually an organization, wants to buy a product or a service. The buyer posts a request for quotation (RFQ) on its Web site Suppliers study the RFQ and submit bids, and the lowest bid wins the auction.
Electronic Payment Methods :
Electronic checks (e-checks)
Electronic credit cards
Purchasing cards
Electronic cash
Stored-value money cards - Smart cards
- Person-to-person payments
ADVANTAGES AND DISADVANTAGES OF ECOMMERCE
Adv's
- Faster buying/selling procedure, as well as easy to find products.
- Buying/selling 24/7.
- More reach to customers, there is no theoretical geographic limitations.
- Low operational costs and better quality of services.
- No need of physical company set-ups.
Disadv
- There is no guarantee of product quality.
- Mechanical failures can cause unpredictable effects on the total processes.
- As there is minimum chance of direct customer to company interactions, customer loyalty is always on a check.
- There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways, all are always prone to attack.
Legal Issues in E commerce
Click on this link to know more http://www.youtube.com/watch?v=hDcl_1YWIX4













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