What's E-commerce?

E-Commerce stands for Electronic Commerce. The definition of E-Commerce is changing the way businesses buy and sell products and services. It is related with buying and selling of information, products and services over computer communication networks. It also helps conduct traditional commerce through new ways of transferring and processing information, since it is information that is at the heart of any commercial activity. Information is electronically transferred from computer to computer automatically. This has transformed the way organizations operate.

Besides that, E-Commerce automates manual processes and paper transactions. It also helps the organizations move to a fully electronic environment and change the way they operate. In formation gathering, processing, manipulating and distributing is common to trade and commerce, no matter what the commerce is that is being exchanged.

Today, it is the velocity of information processing and dissemination that defines the speed of real commerce. Computers and networks, by their virtue of great speeds, are creating electronic marketing with the potential to be more efficient in finding and interacting with customers, communicating with trading partners and developing new products and markets.

Disadvantage Of E-Commerce

The disadvantages are:

-Increase the complexity of product nativization, rules and regulations, language and how to deliver the goods

-Put cost and quality of service pressure on the traditional vendor

-Give rise to a new breed of organization which can provide broker functions between multiple suppliers and customers, broking on availability, price, interpretation of requirements and specification

-Demanding requirements to put company’s processes, that they can operate flawlessly without any downtime, a condition that is seldom achieved with today’s computing system

-A need to provide human cover over a similar span, as an exception handling procedure for where things go wrong or simply become too complicated

-People must be scheduled to operate call centers at appropriate skill levels and the centers themselves must load-share the diurnal variations in traffic

-Automated taking of payment and error-free processing of it will significantly reduce transaction cost to customer and supplier alike

-Very insecure and offers great opportunities for low-cost, automated attack

Benefits of E-Business

- greater speed in getting your products and services to market

- great advantages in your company's finances

- reach new customers

- tiniest company will seem like a big wheel

- the time between developing your product or service and having it ready for the consumer is whittled down considerably

- more availability of product than in a convectional store

- physical limitations need not keep anyone away from your company

- bring your company with us products and services to people anywhere in the world

- comes across on the customer's computer however the company presents it

- most certainly tap into a broad, diverse range of customers

Implementing E- Business

Designing e-business is a two-step process. First, should consider what design you want to model the e-business after. Then, you should personalize it and make it your own.

1) Choose a Design

Look at the basic e-business designs in the table. Which of them comes closest to what you are trying to accomplish? Naturally, if yours is large or especially ambitious, you may be trying to accomplish a few of these in one fell swoop.

Once you have found the pigeonhole in which your e-business fits, it's time to make it gel with your company.

2) Make It Your Own

After selected the model e-business is suited to, apply the information you have discovered about your organization and your customers, you will be able to customize and add your own sources of value to these stock e-business models.

Further, you should continually analyze your e-business to ensure that it is unique. Some of the traits you should analyze to guarantee you are not duplicating another's e-business offering includes:

-products that are superior
-Marketing channels that provide quality responsiveness, convenience, and information
-Service and support geared toward your customers' needs and urgency
-Price, which includes both the net purchase price and the cost savings to the customer who will use the product

Given all the variables, research, and study involved in developing e-business, it is obvious that this is not something that can be written on the back of an envelope or in the few minutes before a meeting. To develop your e-business requires a fair amount of study and critical self-reflection. In the end, however, when consider the many benefits that come from a quality e-business solution, the work should seem well worth it.

For example, a software development company that sells a downloadable software applicable has no inventory. Therefore, they would not require a backend inventory database to be integrated with a system called e-Business system. All they have to do is an e-Business system that verifies credit card information and takes payment automatically. However, if you have an online business that intends to sell books, you will require a full-broom, full-featured, fully integrated e-Business system to compete with the World. Otherwise, potential customers will shop around the World as their e-Business is more convenient and easy to use.

DESIGN	DESCRIPTION
Category Killer	Using internet to define a new market by identifying a unique customer need. If you are aiming for this model, be aware that you will have to be one of the first to market and stay ahead of the pack.
Channel Reconfiguration	Using the internet as a new channel to deal directly with customers, which will include sales and order fulfillment. This model first aids and then replace physical distribution.
Transaction Intermediary	Using the internet to process purchases. This model performs end-to-end functions that a customer would need from searching to compare with other products to sales.
Channel Mastery	Using the internet for sales and services. This model is used to support existing sales rather than supplant them.
Infomediary	Using the internet to make searching easier and less expensive. This model allows your customers to gather information about a product they want to purchase.
Self-service Innovator	Using the internet to provide human resources services that your customer's employees can use directly. This model allows them to develop a personalized relationship.
Supply-chain Innovator	Using the internet to make the transactions between all members of a supply chain more efficient and streamlined.

　Links about E-commerce: 1 | 2 | 3 | 4 | 5

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