Meaning Of E-Commerce
The process of conducting all forms of business through computer networks and digital communication is known as E-Commerce. It consists of the buying, selling of goods and services electronically.
Generally it helps to enhance an existing market position by providing a cheaper and more efficient distribution channel for their product and services.
According to the world trade organisation E-commerce is the producer, distribution, marketing, sales or delivery of goods and services through electronic means.
Types Of E-commerce
For the sake of clarification E-commerce is broadly divided into 7 types on the basis of their nature of market relationship.
Business to Business E-commerce (B2B)
The E-commerce business model is enabled to carry on business units online is called B2B E-commerce. In this model the product is sold to other business units to sell them to the final customers.
Business to Consumer (B2C)
The E-commerce business model that sells its product directly to customers is called B2C E-commerce. Here the customers see the product and order it online and also receive delivery from the business unit.
Consumer to Consumer E-commerce (C2C)
The E-commerce business model where the goods or assets were sold among the consumer is called C2C E-commerce. It enables the consumer to sell their residential property, motor car through publishing such information on the website.
Consumer to Business E-commerce (C2B)
The E-commerce business model where a consumer acquires different business organisations for a particular service through website is called C2B E-commerce. It enables a consumer to avail particular service from different business units.
The e-commerce model that encourages interaction between governance and other parties via the internet is known as the E-Governance Model. It enables the Government to perform its duty and obligations towards citizens or society.
Peer to Peer Ecommerce (P2P)
The Ecommerce model that enables users to access their files and computer resources through the wave service is called P2P E Commerce. It enables us to share various information without any physical presence.
Mobile Commerce or M-commerce
The E-commerce model that uses wireless digital devices to carry on business transactions through websites is called Mobile Or M-commerce. It enables consumers to carry on various transactions, price and banking through online.
Challenges or Barriers Of E-commerce
- Poor telecom and infrastructure for reliable connectivity.
- Poor network connectivity.
- Multiple tasks in current legal and regulatory work.
- Confidentiality and security of data not assured.
- lack of understanding of customer exceptions and purchase habits.low rate of margins of sellers due to Net-Banking.
- First, changing the software system made it difficult to transfer the data.
Factors to contributing the growth of E-commerce
- Availability of computers at low cost.
- Rapid growth of interest users in the country.
- Convenience of shopping at home.
- Availability of discount and cash back options through online transactions.
- Improvement in the delivery of goods through postal and courier services.
- Advancement of technology to reduce the gap between buyers and sellers.
- Development of banking facilities provided by banks.
- Reduction in marketing and infrastructure cost.
Suggestion to face Challenges for E-commerce
- Governments need to work on improving the telecom and infrastructure in the remote areas.
- E-commerce sites need to advertise in order to attract more and more customers.
- Need to execute the customers on securities issues.
- Organisation need to work on reducing the time gap placing an order and its delivery.
- Government needs to make a lodge to make the transactions more secure.
- The Govt. should provide scope in order to gain consumer trust.
- The banks and other financial institutions need to work to make transaction schemes.
Scope For E-commerce
- The entire world is becoming a market through E-commerce.
- It ensures to carry on business everywhere at any time.
- It provides a basis for the solution of office automation.
- It is controlled by a proper electronic act.
- It is considered as a tool for improving entire business functioning.
- It also serves the problem of distance between two business places.