Electronic commerce, Ecommerce & E Business features

What is E commerce ?

• Electronic commerce, or e-commerce, is basically buying and selling things online.
• Instead of going to a physical store, you use the internet to browse products, make purchases, and sometimes even get them delivered right to your door.
• So, whenever you buy something from a website like Amazon or eBay, you're participating in e-commerce.
• In e-commerce, businesses use websites or online platforms to showcase their products or services.
• Customers can visit these websites, browse through the available items, and make purchases using their computers and smartphones .

Evolution of eCommerce

• It encompasses the transformation of online shopping from its early stages to its current state,
• including advancements in technology, changes in consumer behavior, and shifts in business strategies.
• Essentially, it's about how e-commerce has grown, adapted, and improved
• over time to meet the needs of businesses and consumers in an ever-changing digital landscape.

Early Days (1960s - 1990s): The Seeds of Innovation

• The conceptual seeds of e-commerce were sown in the 1960s with the development of Electronic Data Interchange (EDI).
• This technology enabled businesses to exchange data electronically, laying
  the groundwork for automated transactions.

The Birth of Online Shopping

• The 1970s witnessed the emergence of visionary projects like the "Green Book" by Michael Aldrich, considered an early prototype for online shopping.
• However, limited internet access and technological constraints restricted widespread adoption.
  

The Dawn of the Web

• The invention of the World Wide Web in the early 1990s marked a turning point.
• The user-friendly interface and the ability to share information through web pages paved the way for the creation of the first online marketplaces.

The Dot-Com Boom and Bust (1990s - Early 2000s)

• A Period of Rapid Growth and Volatility Pioneering Platforms Emerge: The mid-1990s saw the birth of e-commerce giants like Amazon and eBay,
• offering a wider selection of products and a more convenient shopping experience compared to traditional methods.
  

The Bubble Bursts

• By the early 2000s, the dot-com bubble burst as many overvalued companies folded.
• However, this period established e-commerce as a viable and growing sector, laying the foundation for future advancements.
  

The Rise of E-commerce 2.0 (2000s - Present)

• A Focus on Security, Convenience, and Mobile Commerce
• Security Takes Center Stage: As online transactions became more commonplace, security concerns rose.
• Secure payment gateways like PayPal emerged, fostering trust among consumers and facilitating secure online purchases.
  

Invention of the Internet

• E-commerce began with the invention and widespread adoption of the internet.
• This allowed businesses to connect with customers online and offer products and services through websites.

Emergence of Online Marketplaces

• Online marketplaces like eBay and Amazon emerged, providing platforms for businesses to sell their products to a wider audience.
• These marketplaces made it easier for small businesses to reach customers beyond their local area.

Advancements in Online Payment Systems

• The development of secure online payment systems, such as PayPal and credit card processing, enabled customers to make purchases safely and conveniently over the internet.
• This increased consumer confidence in shopping online.

Expansion of Mobile Commerce

• The rise of smartphones and mobile devices led to the growth of mobile commerce (m-commerce).
• Consumers could now shop online anytime, anywhere, using their mobile phones, which further accelerated the growth of e-commerce.

Integration of Social Media and E-commerce

• Social media platforms like Facebook, Instagram, and Pinterest integrated e-commerce features, allowing businesses to sell products directly through their social media profiles.
• This made it easier for businesses to reach and engage with customers, driving further growth in e-commerce.

eCommerce vs eBusiness

Nature of Transaction

• E-commerce specifically refers to online buying and selling transactions.
• It involves the exchange of goods or services between businesses and consumers or between businesses themselves.

• E-business, on the other hand, encompasses a broader range of online activities beyond just buying and selling.
• It includes various aspects of business operations conducted electronically, such as online marketing and supply chain management.

Scope of Activities

• E-commerce primarily focuses on the online transactions involved in buying and selling goods and services.
• E-business encompasses a wider range of activities, including online transactions as well as other electronic business processes such as online marketing, customer service, and supply chain management.

Customer Interaction

• In e-commerce, customer interaction is primarily centered around the buying and selling process, such as browsing products, making purchases, and providing feedback or reviews.
• In e-business, customer interaction extends beyond transactions to include various forms of online engagement, communication, and support throughout the customer journey.

Business Model

• E-commerce typically follows a transaction-based business model, where revenue is generated through the sale of goods or services online.
• E-business may encompass multiple business models beyond just transactions, such as subscription-based models, advertising revenue models, or licensing and partnership arrangements.

Technological Integration

• E-commerce relies heavily on technology for facilitating online transactions, including secure payment gateways, online shopping carts, etc.
• E-business involves the integration of technology across various aspects of business operations, such as enterprise resource planning (ERP) software and data analytics tools.

Features of eCommerce

Global Reach

• E-commerce enables businesses to access a worldwide audience without requiring physical brick-and-mortar stores.
• This means companies can sell their products or services to customers all around the world,
• expanding their market reach beyond geographical boundaries.

24/7 Availability

• Unlike traditional brick-and-mortar stores with fixed operating hours, e-commerce websites are accessible 24 hours a day, 7 days a week.
• This means customers can shop at their convenience, anytime, anywhere, without being restricted by store hours.

Convenience

• E-commerce provides unmatched convenience for both businesses and customers.
• Customers have the convenience of exploring products, comparing prices, and completing purchases from their own residences.

Personalization

• E-commerce platforms have the ability to use data analytics and customer information to tailor the shopping experience.
• This involves suggesting products based on previous buying history,
• preferences and browsing history, thereby enhancing customer satisfaction and loyalty.

Flexibility and Scalability

• E-commerce provides businesses with the flexibility to adapt and scale their operations according to demand.
• Whether it's adding new product lines, expanding into new markets, or adjusting inventory levels, e-commerce platforms offer the scalability needed to accommodate business growth and changes.

Advantages of E-Commerce

For Businesses

Increased Reach and Global Market Access

• E-commerce eliminates geographical limitations, allowing businesses to reach a global audience and participate in international trade more readily.
• This expands their customer base significantly compared to traditional brick-and-mortar stores.

Reduced Overhead Costs

• E-commerce businesses often have lower overhead costs compared to physical stores.
• They may not require extensive physical space, staff for in-person sales, or high inventory levels at individual locations.
• This can lead to improved profitability and operational efficiency.

For Consumers

Convenience and Time Savings

• Online shopping removes the necessity of going to physical stores.
• Consumers can shop from the comfort of their homes, compare products quickly and easily,
• and enjoy features like easy checkout processes and home delivery options. This saves them time and effort.

Wider Product Selection and Price Transparency

• E-commerce platforms offer a vast selection of products from various retailers across the globe.
• Consumers can easily compare prices and specifications before making a purchase, ensuring they get the best deal.

Increased Competition

• E-commerce fosters a highly competitive online marketplace, driving businesses to offer competitive pricing, innovative product offerings,
• and exceptional customer service to attract and retain customers.
• This benefits consumers by offering them more choices and better deals.

Economic Growth

• E-commerce contributes to economic growth by creating new business
• opportunities, facilitating international trade, and promoting innovation in the retail sector.

Convenience and Efficiency

• E-commerce offers a more convenient and efficient way to shop and conduct
• business transactions, benefiting both businesses and consumers by saving time and resources.

Disadvantages of E-Commerce

For Businesses

Security Risks and Fraud

High Competition and Lower Margins

• The online marketplace is highly competitive, with businesses vying for customer attention.
• This can lead to pressure on profit margins as businesses compete on price.

Limited Customer Interaction and Brand Building

• E-commerce can limit personal interaction with customers, making it challenging to build brand loyalty and foster strong customer relationships.
• Businesses need to find innovative ways to connect with customers online and create a positive brand experience.

For Consumers

Lack of Physical Inspection and Touch

• Consumers cannot physically inspect products before purchase in e-commerce,
• which can lead to concerns about product quality and fit (especially for clothing).

Deceptive Marketing Practices and Online Scams

Privacy Concerns and Data Security

• E-commerce transactions involve sharing personal information online, raising concerns about data privacy and security.
• Consumers need to be vigilant about protecting their information and choose reputable online retailers.

Overall Drawbacks

Technical Issues and Downtime

Shipping Costs and Unexpected Fees

Digital Divide and Accessibility Issues

Conclusion