ECommerce –

Meaning, Nature and

Scope
 Meaning of E Commerce
• Refers to buying and selling of goods or services through internet.
• Includes concept like e-banking, e-trading, e-payments etc
• Online exhibition of products taking an order and process till actual
delivery of the product.
 Elements of E-Commerce
• A product
• A website to show the product
• A way which attracts people to open your site
• A way which accepts on line form
• A method to receive the payments
• Facility of transportation
• A mean to deal with a warranty and claims
• A methos to reach and support the customer
"Electronic Commerce can be defined from following four perspectives :

1) Communications Perspective :
Electronic commerce is the delivery of information, products/services, or payments via telephone lines,
computer networks, or any other means.

2) Business Process Perspective :

Electronic commerce is the application of technology toward the automation of business transactions and
workflows.

3) Service Perspective :
Electronic commerce is a tool that addresses the desire of firms, consumers, and management to cut service
costs while improving the quality of goods and increasing the speed of service delivery.

4) Online Perspective :
Electronic commerce provides the capability of buying and selling products and information on the Internet and
other online services."
 Nature of Ecommerce

• Fusion of telecommunications and computing technology to conduct business

• Creation and management of relationships between buyers and sellers, facilitiated by an interactive and
pervasive electronic medium
• Some of the main reasons for the increase in electronic trading are:
• The drive to reduce cost

• Easy accessibility to the internet

• Access to global markets for vendors

• Greater choice and potentially lower prices for purchasers

• Lower inventory costs for vendors

• The ability to enter new markets more easily

 Scope in E-Commerce

• Exchange of digitized information

• Technology-enabled
• Customers retention
• Accounting
• Supplier integration
• Support the exchange
 Advantages to
Advantages Customers
of E-
Commerce Advantages to
Businesses
 Advantages to Customers -
1) Reduced Prices

2) Global Marketplace

3) Anytime Access

4) More Choices

5) Quicker Delivery

6) Relevant Information
 Advantages to Businesses

1) Low Barriers to Entries

2) Increased Potential Market Share
3) Low-Cost Advertising
4) Strategic Benefit
5) Global Reach
 Technical
Disadvantages
Disadvantages
of E-Commerce
Non-Technical
Disadvantages
 Technical Disadvantages

1) Lack of Security
2) Low Bandwidth
3) Difficulty in Integrating E-Commerce
4) Not All Customers have Access to Internet
 Non - Technical Disadvantages

1) Initial Cost

2) Security and Privacy

3) Lack of Trust and User Resistance

4) Lack of Touch and Feel

5) Customers Relation Problems

6) Corporate Vulnerability

7) Legal Issues