What Is Ecommerce

What Is Ecommerce

What Is E-commerce?

E-commerce or e-commerce is a type of commercial transaction via a specially made electronic equipment, such as a computer. It is also conceptualized as the use of electronic communication and digital, applied to business, creating, changing or redefining values between organizations (B2B) or between them and individuals (B2C) or between individuals (C2C), permeating the purchase of goods, products or services, ending with the settlement by means of electronic payment.

The act of selling or buying over the Internet is in itself a good example of e-commerce. The world market is absorbing the large-scale electronic commerce. Many branches of the economy are now connected to electronic commerce. Its fundamentals are based on security, encryption, currencies and electronic payments. It also involves research, development, marketing, advertising, trading, sales, and support.

Through electronic links with customers, suppliers and distributors, e-commerce enhances the communications business efficiently, to expand market share, and maintain long-term viability in the business environment.

At first, online marketing was and still is, carried out with products like CDs, books and other tangible goods and tangible characteristics. However, with advancing technology, a new trend for online marketing begins to be enabled to sell services over the Web, such as package tours, for example. Many tour operators are preparing to address their customers this new way.

Methods of electronic commerce

  • B2B
  • B2C
  • C2C
  • G2C
  • G2B

History of E-commerce

The significance of electronic commerce has been changing over the past 30 years. Originally, CE meant the facilitation of electronic commerce transactions using technology like Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). Both were introduced in the late 70’s, allowing commercial companies sent documents as purchase order and accounts electronically. The growth and acceptance of credit cards, ATM services, customer care (SAC) at the end of the 80 were also forms of CE.

Although the Internet has become popular worldwide in 1994, only five years after the security protocols and DSL technology was introduced, allowing a continuous connection to the Internet. In late 2000, several U.S. and European companies offered their services through the World Wide Web Since then, people began to associate the term ‘commerce’ with the ability to acquire facilities through the Internet using secure protocols and payment services electronic.

Integrated Model of E-Commerce

The Integrated Model of Electronic Commerce has several subdivisions of the EC’s environment and its integration with the business environment. This model emphasizes aspects, value, strategic benefits and contributions to organizational success:

  • Policies and procedures public are related to the legal regulation of industries and markets, and formal rules;
  • Policy and technical standards: Are they related to the aspects of standardization to the compatibility of the components of the technical environment, policies for handling and reporting;
  • Public Information Highway: It is the network formed by both the Internet as a global network for online services that have connections with this, and the emphasis is on open access and low cost, and integration between different environments without any restriction, including since the terminals easier access to more sophisticated means of communication for large volumes of information.
  • Generic Applications and Services: are those offered by the environment through their ISPs, online services and suppliers available to all, such as electronic mail, file transfer, virtual rooms, algorithms and encryption software;
  • Applications of Electronic Commerce: Are those developed based on previous layers and meet the needs of an organization or group of them.

Advantages of e-commerce companies

Its network of store (s), business is available 24 hours * 7 days a week;

Deductions are higher in the product considering the cost of hiring salespeople and without passing on commissions to them;

You do not need to rent a physical store and invest in decor, displays, safety and sanitation;

Reduced likelihood of misinterpretation in the circuit with the customer, and even with the supplier;

Cost savings associated with the customer and the supplier;

Short time delivery of orders;

Easy access to new markets and customers, with reduced financial effort;

The competitive advantage of large corporations to small are lower. An efficient and attractive shopping portal on the Internet does not require a large financial investment. The customer who chooses to give you more confidence and better service;

Procedures associated with the purchases pretty rapidly, allowing companies to reduce the average time of receipt, improving your cashflow;

Ease of processing data transmitted by the CRM, for example preferences and form of payment from customers, as it allows the anticipation of changing market trends;

Permanent contact with all entities involved in the process, the interaction is faster, decreasing the costs related to communication.

Constant awareness of the client profile, their habits and regularity of consumption;

Anticipating market trends, continued availability of reports on the products viewed, navigated areas;

Fast dissemination of new products or promotions

Future of E-Commerce

The e-commerce has never suffered a major change, but in recent years seen the arrival of new technologies that are giving “wings to imagination” of many marketers on call, so we have the emergence of new modalities and the e-commerce:

M-Commerce – Mobile Commerce

Mobile Electronic Commerce is increasingly becoming a reality. According to ABI Research U.S., we will close 2010 with 2.4 billion dollars in retail sales via mobile phones. Already there are predictions that by 2012 the mobile will surpass the PC as the main gadget internet access. There is the expectation that everything will be resolved by phone, and retail sales will not be exception.

T-Commerce – Commerce Television

Given the massive presence of television in Brazil and the progress of Ginga, the Interactive Digital TV platform SBTVD soon purchases may be made during the ads and inserts in TV programs. One of the main characteristics of this form of e-commerce is the reduction in time between the announcement and sale, which should further increase the numbers of e-commerce in the country. In 2016 the analogue TV signal (as we know) in Brazil and should be turned off most TVs – are present in more than 90% of Brazilian households – must rely on interactivity that will allow the T-commerce.

SNO (Social Network Optimization)

Social networks are real time on the Internet fever. And like any good “marketer” can not let this opportunity pass, large networks of e-commerce have begun to use them as a viral marketing tool, directly reaching customers.

Virtual Private Sellers

This is still “crawling” in Brazil, but had a great growth in the U.S. in 2009. When a big store decides to burn its stores, is to do in a more private building sites closed down where only a select group of users of your site has opened the possibility of access.

Virtual Products

Today is already a reality. Large stores like Scott and Submarine already offer virtual products such as movies, games, software, books and more. Increasingly becomes a practical way to e-commerce for both the buyer (this does not worry about losing a book, or spoil a DVD, because everything is digital and can be downloaded at any time after purchase) and for vendor (This does not need to stock for example). And with the arrival of the Kindle and especially the iPad, we see that this is one of the strengths of e-commerce in coming years.

Payment for Alternative Technology

The e-commerce can not be restricted only in bank bills or credit cards. The more payment options the better. Take the case of PayPal — it is a safe and increasingly used as a payment option. New technologies arise and thereby further increase the scope of e-commerce.

Study: From Wikipedia, the free encyclopedia. The text is available under the Creative Commons.

Santosh

Santosh is an experienced content writer with good search engine optimisation skills. Santosh works with our marketing department in the creation of articles and how-to guides for our company blog and knowledgebase.

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