E-Commerce
E-Commerce is a business transaction that involves the transfer of information through the Internet. It is the use of the Internet as a platform for information exchange and monetary transactions. It means using the Internet and the web for business transactions and commercial transactions. It typically involves the exchange of value (money) across organizations or individuals in return for products and services. Hence, it is the electronic transaction such as buying, selling, and exchanging of goods, services, and information over the Internet. It consists of electronic retailing, electronic data interchange, and electronic fund transfer. Reducing cost, lowering the product cycle time, faster customer response, and delivering better quality service is the main goal of E-Commerce. There are many popular Nepalese online shopping sites such as daraz.com.np. netplay. com, BhatBhatenionline.com, Metrotarkari.com, kinmel.com. np, hamrobazaar.com, muncha.com, and many more. We can buy online and pay through different local payment gateways like e-Sewa, Khalti, or cash on delivery model. It is a modern business methodology that addresses the different drawbacks of traditional commerce. So, it refers to the paperless exchange of business information. People now are not only just using the Internet for gathering information, leisure, or socializing online but also at the same time they are seeking measures to conduct business. Even popular social networking sites like Facebook, Twitter, Instagram, etc. allow people to promote and sell products and services online.
History of E-Commerce
Online shopping, an important component of electronic commerce was invented by Michael Aldrich in the UK in 1979. The world's first recorded business to business was Thomson Holidays in 1981. Internet became popular worldwide around 1994 when the first Internet online shopping started. By the end of 2000, many European and American business companies offered their services through the World Wi Web. Since then people began to associate the word "E-Commerce" with the ability to purchase various goods through the Internet using secure protocols and electron payment services. The various objectives of E-Commerce are development business-relationship, better customer service, and getting more customers.
E-Commerce is driven by Internet Technology. The different technologies inclus Ty E-mail, fax, online shopping carts, electronic data interchange (EDI), online payment gateway, online security tools, information sharing, and distribution protocol, and different web services. The major business application areas of E-Commerce are:
- Sale, Purchase of Goods
- Real Estate Market and Online Banking
- Delivery of Goods as well as Import and Export
- Supply Chain Management and E-Tailing
Advantages of E-Commerce
E-Commerce and its associated technology have brought many changes in our daily usu lives. The benefits of E-Commerce are:
- A larger market as well as easy-to-find products.
- Customer insights through tracking and analytics as well as buying/selling anytime and anywhere.
- Fast response to consumer trends and market demand.
- Lower cost and does not require physical stores.
- Easy to sell online through social media as well.
- Personalized messaging and customers can review the comments and compare in different sites without moving around physically.
Limitations of E-Commerce
E-Commerce has many benefits but it also has some limitations. They are:
- Lack of personal touch
- Lack of physical experience and cannot touch the goods physically.
- Need for Internet access as transactions cannot be done without an Internet access device.
- Security issues of customers' information.
- Quality of product and services delivery.
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