E-COMMERCE

E-commerce (electronic commerce) is the buying and

selling of goods and services, or the transmitting of funds
or data, over an electronic network, primarily the internet.
These business transactions occur either as business-to-
business (B2B), business-to-consumer (B2C), consumer-
to-consumer or consumer-to-business. The terms e-
commerce and e-business are often used
interchangeably. The term e-tail is also sometimes used in
reference to the transactional processes for online
shopping.
Types of E-commerce.
Business-to-business (B2B) e-commerce refers to the
electronic exchange of products, services or information
between businesses rather than between businesses and
consumers. Examples include online directories and
product and supply exchange websites that allow
businesses to search for products, services and
information and to initiate transactions through e-
procurement interfaces.
Moreover, Business-to-consumer (B2C) is the retail part
of e-commerce on the internet. It is when businesses sell
products, services or information directly to consumers.
Today, there are innumerable virtual stores and malls on
the internet selling all types of consumer goods. The most
recognized example of these sites is Amazon, which
dominates the B2C market.
Furthermore, Consumer-to-consumer (C2C) is a type of
e-commerce in which consumers trade products, services
and information with each other online. These transactions
are generally conducted through a third party that provides
an online platform on which the transactions are carried
out.
Online auctions and classified advertisements are two
examples of C2C platforms, with eBay and Craigslist
being two of the most popular of these platforms. Because
eBay is a business, this form of e-commerce could also be
called C2B2C -- consumer-to-business-to-consumer.
Lastly, Consumer-to-business (C2B) is a type of e-
commerce in which consumers make their products and
services available online for companies to bid on and
purchase
Advantages of E-commerce to
consumers
Availability is one of the many advantages. Aside from
outages or scheduled maintenance, e-commerce sites are
available 24x7, allowing visitors to browse and shop at any
time. Bricks and mortar businesses tend to open for a
fixed amount of hours and may even close entirely on
certain days.
Moreover, Easy accessibility is another advantage.
Customers shopping a physical store may have a hard
time determining which aisle a particular product is in. In
e-commerce, visitors can browse product category pages
and use the site search feature the find the product
immediately.
Also, E-commerce sites can track visitors’ browse, search
and purchase history. They can leverage this data to
present useful and personalized product recommendation.
Examples include the sections of Amazon product pages
labeled “Frequently bought together” and “Customers who
viewed this item also viewed.”
In addition, a wide range of goods and services is another
advantage. In comparison with classic stores, E-
commerce sites usually contains a broader range of
products with a wide range of sizes, colors and other
characteristics of products and services- one more reason
to buy online.
Disadvantages to consumers
Firstly, there is Limited customer service. If a customer
has a question or issue in a physical store, he or she can
see a clerk, cashier or store manager for help. In an e-
commerce store, customer service may be limited: the site
may only provide support during certain hours of the day,
or a call to a customer service phone number may keep
the customer on hold.
Moreover, Not being able to touch or see is a major
disadvantage. While images on a web page can provide a
good sense about a product, it’s different from
experiencing it “directly,” such as playing music on
speakers, assessing the picture quality of a television or
trying on a shirt or dress. E-commerce can lead
consumers to receive products that differ from their
expectations, which leads to returns. In some scenarios,
the customer bears the burden for the cost of shipping the
returned item to the retailer.
Also, Waiting time is also a disadvantage . If a customer
sees an item that he or she likes in a store, the customer
pays for it and the return back to their houses. With e-
commerce, there is a wait time for the product to be
shipped to the customer’s address. Although shipping
windows are decreasing as next day delivery is now quite
common, it’s not instantaneous.
Lastly, Security is a major issue. Skilled hackers can
create authentic-looking websites that claim to sell well-
known products. Instead, the site sends customers forfeit
or imitation versions of those products -- or, simply collects
customers’ credit card information. E-commerce sites also
carry risk, especially when customers store their credit
card information with the retailer to make future purchases
easier. If the retailer’s site is hacked, hackers may come
into the possession of customers’ credit card information.
Advantages to businesses
Firstly, International reach can be a major advantage to
the business. Bricks and mortar businesses sell to
customers who physically visit their stores. With e-
commerce, businesses can sell to any customer who can
access the web. E-commerce has the potential to extend a
business’ customer base globally.
Moreover, Lower cost is another advantage. The cost of
doing online business is lower because employees are not
required at every location; there is no need for security or
maintenance personnel. Specifically, employees are only
needed when it comes to sales, and everything else goes
passably or automatically.
Also, in some cases, if it’s a direct sale, no storage space is
needed. That’s the main reason why some prices in online
stores are also lower than standard prices in a classic store.
Furthermore, Availability 24/7 is also another major
advantage to the business – the fact is that e-commerce is
open all day. Buyers can visit e-commerce at any time of
the day, get information about everything they want to
know and buy whatever they want. Such availability
increases the ability to earn profits and leads and helps in
building a better relationship between buyers and
merchants.
Lastly, the internet-based business also implies monitoring
of customer experience and provides an opportunity for
adapting offers, newsletters, and everything else that can
help in realizing sales to different customers. This allows
personalization
Disadvantages to businesses
Firstly, there can be 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.
Moreover, IT Security Issues could be a major issue.
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.
Also, Complexity In Taxation, Regulations, and Compliance can
be difficult for a business
If an online business sells to customers in different
territories, they'll have to adhere to regulations not only in
their own states/countries but also in their customers'
place of residence. This could create a lot of complexities
in accounting, compliance, and taxation.

In conclusion, despite the drawbacks that businesses and

consumers face because of E-commerce, the benefits
outweigh the disadvantages by a substantial amount