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E Commerce
E Commerce
So when you log into your Amazon and purchase a book, this is a classic
example of an e-commerce transaction. Here you interact with the
seller (Amazon), exchange data in form of pictures, text, address for
delivery etc. and then you make the payment. As of now, e-commerce
is one of the fastest growing industries in the global economy. As per
one estimate, it grows nearly 23% every year. And it is projected to be a
$27 trillion industry by the end of this decade.
Types of E-Commerce Models
Electronic commerce can be classified into four main categories. The
basis for this simple classification is the parties that are involved in the
transactions. So the four basic electronic commerce models are as
follows,
1. Business to Business
2. Business to Consumer
Business to Consumer. Here the company will sell their goods and/or
services directly to the consumer. The consumer can browse their
websites and look at products, pictures, read reviews. Then they place
their order and the company ships the goods directly to them. Popular
examples are Amazon, Flipkart, Jabong etc.
3. Consumer to Consumer
4. Consumer to Business
This is the reverse of B2C, it is a consumer to business. So the
consumer provides a good or some service to the company. Say for
example an IT freelancer who demos and sells his software to a
company. This would be a C2B transaction.
What is m-Commerce?
Examples of E-Commerce
Amazon
Flipkart
eBay
Fiverr
Upwork
Olx
Quikr
Advantages of E-Commerce
The start-up costs of the e-commerce portal are very high. The setup
of the hardware and the software, the training cost of employees,
the constant maintenance and upkeep are all quite expensive.
Although it may seem like a sure thing, the e-commerce industry has
a high risk of failure. Many companies riding the dot-com wave of
the 2000s have failed miserably. The high risk of failure remains
even today.
At times, e-commerce can feel impersonal. So it lacks the warmth of
an interpersonal relationship which is important for many brands
and products. This lack of a personal touch can be a disadvantage for
many types of services and products like interior designing or the
jewelry business.
Security is another area of concern. Only recently, we have
witnessed many security breaches where the information of the
customers was stolen. Credit card theft, identity theft etc. remain
big concerns with the customers.
Then there are also fulfillment problems. Even after the order is
placed there can be problems with shipping, delivery, mix-ups etc.
This leaves the customers unhappy and dissatisfied.
Advantages and types of Electronic Payment System
Key Takeaways
ECS Payments
For bulk and repetitive payments like salary credit, interest payment, dividend payments
from companies, etc., the RBI introduced the Electronic Clearing Service (ECS) credit
scheme in the 1990s. This system enables payers to credit a specific amount directly
into the payees account on a particular date. ECS enables recurring payments to banks,
Mutual Fund companies, service providers, utility companies, etc. The bank collects
payment from your account and passes it on to the relevant companies.
Having explained what is e-payment system, here are its primary advantages.
Lower costs
E-payments eliminate the costs associated with paper cheques, cash and postage.
Payments conducted via electronic payment systems like credit card or debit card
charges, processing fees, internet fees, etc., are lower.
Highly accessible
You only need an internet-enabled device like a smartphone or computer to access the
various type of types of electronic payment systems from any place, any time.
Speedy transactions
You can buy the product within seconds, transfer money, pay your loan EMIs, get salary
credits, and more with electronic payments.
Final Note
E payments have undoubtedly revolutionised the banking sector. Today, you can book
all types of services and buy almost anything without exchanging a single rupee in cash.
All transactions are quick and secure, making e payments the ideal money transaction
method.
Download the digibank by DBS app to get started and even open your savings
account with us.
One example of online bank transfers is when you pay your monthly
utility bills directly from your bank account through the utility company’s
online payment portal. It’s a secure and convenient way to handle
regular or recurring payments.
5. Digital Wallets
Digital wallets, such as PayPal, Apple Pay, and Google Pay, have
gained popularity for their convenience. Users can link their bank
accounts or credit cards to these wallets and make payments with a
simple tap or click on their smartphones.
2. Payment Gateway
The payment information is then sent to a payment gateway, which acts as
a bridge between the user, the merchant, and the financial institution.
The payment gateway plays a crucial role in approving or denying
payment requests.
3. Validation and Security
Before processing the transaction, the system validates the payment
information to ensure it is accurate and legitimate. Stringent security
protocols and encryption techniques are employed to safeguard the data
during transmission, making electronic payments highly secure.
4. Transaction Processing
Once the payment is approved, the transaction is processed, and the
funds are transferred from the user’s account to the merchant’s account
or the recipient’s account.
2. Recurring Payments
Recurring payments involve regular, repetitive transactions where a
customer authorizes a vendor or service provider to deduct a specified
amount from their account at predefined intervals. This is common for
bills, subscriptions, memberships, or any service that requires periodic
payments.
2. Reduced Costs
By eliminating the need for physical cheques and cash handling,
electronic payment systems significantly reduce transaction costs for
both individuals and businesses. There are no expenses related to
printing cheques, postage, or the labour required to process paper
payments.
3. Increased Security
Security is a top priority in electronic payment systems. Robust
encryption and authentication measures protect sensitive financial data,
reducing the risk of fraud and unauthorized transactions. Users can also
monitor their accounts in real-time, quickly spotting any suspicious
activity.
4. Convenience
The convenience of electronic payments cannot be overstated. Whether
you’re shopping online, paying bills, or splitting a restaurant bill with
friends, electronic payments offer unparalleled ease and accessibility.
5. Accessibility
Electronic payment systems are accessible 24/7, allowing users to make
transactions at any time, from anywhere with an internet connection.
This accessibility is especially valuable for international transactions, as
it eliminates geographical barriers.
Key Takeaways
1. Electronic payment systems enable cashless transactions, saving time and
reducing costs.
2. Different types of electronic payments cater to various needs, from card
payments to digital wallets.
3. The process involves entering payment information, validation, security,
and transaction processing.
4. Advantages include faster payments, reduced costs, increased security,
convenience, and accessibility.
Indrajeet Deshpande
Table of Contents
o What Is Customer Relationship Management (CRM)?
o What Are the Types of CRM Software?
o The Essential CRM Glossary
o 8 Essential CRM Features
o 4 Challenges of Implementing CRM
o 3 CRM Best Practices to Consider
o 5 of the Best CRM Tools for Your Business
o Creating a CRM Strategy in 5 Steps
o 5 Benefits of a CRM
o How to Choose a CRM for Your Organization?
o Who Needs CRM Software?
o Who Uses CRM Software?
o Next Steps
What Is Customer Relationship Management (CRM)?
Customer Relationship Management (CRM) is often referred to as a process,
strategy, or software/technology that enables organizations to manage
relationships with their customers, vendors, and suppliers.
In this article, we will look at CRM as a technology that helps businesses
maintain customer data , track customer interactions, and improve
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customer relationships.
A CRM software system performs the following activities:
1. Collects customer data from multiple sources and applications and
stores it in a centralized location