Submitted By : Sudipa Das (Department of BBA : Session –2017-2020)

Let us discuss about E-commerce. So,what is E-commerce?

According to Roger Clarke, “Electronic commerce is usefully defined as:
E-commerce is a division of trade or production which deals with exchange of goods and services from producer to final consumer.

Some people use the term `electronic trading' to mean much the same thing. Others use 'electronic procurement', 'electronic purchasing' or 'electronic marketing'. Note, however, that 'EC' is often used in a much broader sense, to mean essentially the same as 'electronic business', as defined above. Examples of EB that are not EC include registration and licensing processes, student enrolment, and court administration.

Note that EC comprises many segments, some of which have their own names. For example:

'electronic catalogues' refers to means whereby sellers can communicate their offerings to potential buyers;

Electronic Data Interchange refers to a particular family of standards for expressing the structured data that represent EC transactions; and

'electronic auctions' for a particular set of mechanisms for setting prices.

I use two basic models of the electronic commerce process, which I call 'deliberative purchasing' and 'spontaneous purchasing'. These are described in a later section.”


Types of E-commerce:

There are six basic types of e-commerce —

Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), Consumer-to-Business (C2B), Business-to-Administration (B2A), Consumer-to-Administration (C2A) Advantages of E-commerce: 1.

A Larger Market

eCommerce allows you to reach customers all over the country and around the world. Your customers can make a purchase anywhere and anytime, especially more people are getting used to shopping on their mobile devices.

2.  Customer Insights Through Tracking and Analytics

Whether you're sending visitors to your eCommerce website through SEO, PPC ads or a good old postcard, there is a way to track your traffic and customers' entire user journey to get insights into keywords, user experience, marketing message, pricing strategy, and more.

3.  Fast Response to Consumer Trends and Market Demand

The streamlined logistics, especially for merchants who do "drop ship," allow businesses to respond to market and eCommerce trends and consumer demands in a nimble manner. Merchants can also create promotions and deals on the fly to attract customers and generate more sales.

4.  Lower Cost

With the advance in eCommerce platform technologies, it has become very easy and affordable to set up and maintain an eCommerce store with a low overhead. Merchants no longer have to spend a large budget on TV ads or billboard, nor worry about the expense for personnel and real estate.

5.  More Opportunities To "Sell"

Merchants can only provide a limited amount of information on a product in a physical store. On the other hand, eCommerce websites allow the space to include more information such as demo videos, reviews, and customer testimonials to help increase conversion.


Disadvantages of E-commerce:


  1. Lack of Personal Touch

Some consumers value the personal touch they get from visiting a physical store and interacting with sales associates. Such personal touch is particularly important for businesses selling high-end products as customers not only want to buy the merchandise but also have a great experience during the process.

2.  Lack of Tactile Experience

No matter how well a video is made, consumers still can't touch and feel a product. Not to mention, it's not an easy feat to deliver a brand experience, which could often include the sense of touch, smell, taste, and sound, through the two-dimensionality of a screen.

3.  Price And Product Comparison

With online shopping, consumers can compare many products and find the lowest price. This forces many merchants to compete on price and reduce their profit margin.

4.  Need for Internet Access

This is pretty obvious, but don't forget that your customers do need Internet access before they can purchase from you! Since many eCommerce platforms have features and functionalities that require high-speed Internet access for an optimal customer experience, there's a chance you're excluding visitors who have slow connections.

5.    Credit Card Fraud

Credit card fraud is a real and growing problem for online businesses. It can lead to chargebacks that result in the loss of revenue, penalties, and bad reputation.

6.  IT Security Issues

More and more businesses and organizations have fallen prey to malicious hackers who have stolen customer information from their database. Not only could this have legal and financial implications but also lessen the trust customers have in the company.