CHAPTER 1
CHAPTER 1
CHAPTER 1
Learning outcome
After completing this chapter learners should able to:
Understand what is e-commerce?
Distinguish e-commerce and e-business
Understand the unique characteristics of e-commerce
Explain the advantages and disadvantages of e-commerce.
1.1 Introduction of E-commerce
Recently most commercial transactions still take place through conventional channels, rising
numbers of consumers and businesses are using the Internet for electronic commerce.
So much business is now enabled by or based upon digital networks that we use the terms
electronic business and electronic commerce frequently throughout this text. E-commerce is the
part of e-business that deals with the buying and selling of goods and services electronically with
computerized business transactions using the Internet, networks, and other digital technologies. It
also encompasses activities supporting those market transactions, such as advertising, marketing,
customer support, delivery, and payment.
In its simplest form ecommerce is the buying and selling of products and services by businesses
or consumers over the World Wide Web (WWW). People use the term "E-Commerce" or
"Online Shopping" to describe the process of searching for and selecting products in online
catalogues and then "checking out" using a credit card and encrypted payment processing.
To sum up E-commerce is the use of the Internet and the Web to transact business. Digitally
enabled transactions include all transactions mediated by digital technology. For the most part,
this means transactions that occur over the Internet and the Web. Commercial transactions
involve the exchange of value (e.g., money) across organizational or individual boundaries in
return for products and services. Exchange of value is important for understanding the limits of
e-commerce. Without an exchange of value, no commerce occurs.
1.2 Origin of E-commerce
Ecommerce was introduced 40 years ago and, to this day, continues to grow with new
technologies, innovations, and thousands of businesses entering the online market each year. The
convenience, safety, and user experience of ecommerce has improved exponentially since its
inception in the 1970’s.
The technical standards of the Internet are shared by all of the nations in the world. The whole
online tradition is growing and expanding their features in the world. To development any kind
of business need Internet and communication application which make the business relationship
more lovingly and attractive for secure business and successful business.
D. Richness
Users can access and utilize text messages and visual and audio components to send and receive
information. An individual may see information richness on a company's blog if a post contains a
video related to a product and hyperlinks that allow him to look at or purchase the product and
send information about the post via text message or email.
E. Interactivity
E-commerce technologies allow two-way communication between the merchant and the
consumer. interactivity, meaning they enable two-way communication between merchant and
consumer. Television, for instance, cannot ask viewers any questions or enter into conversations
with them, and it cannot request that customer information be entered into a form. As a result, e-
Commerce technologies can adjust to each individual’s experience. For example, while shopping
online, an individual is able to view different angles of some items, add products into a virtual
shopping cart, checkout by inputting his payment information and then submit the order.
F. Personalization
In E-commerce technologies merchants can target their marketing messages to specific
individuals by adjusting the message to a person’s name, interests, and past purchases.
Technologies within e-Commerce allow for the personalization and customization of marketing
messages that groups or individuals receive. An example of personalization includes product
recommendations based on a user's search history on a Web site that allows individuals to create
an account.