Electronic Commerce E commerce Sharing business information maintaining business relationships and conducting business transactions using computers connected to telecommunication network is called E Commerce E Commerce Categories 1 Electronic Markets Present a range of offerings available in a market segment so that the purchaser can compare the prices of the offerings and make a purchase decision Example Airline Booking System 2 Electronic Data Interchange EDI It provides a standardized system Coding trade transactions Communicated from one computer to another without the need for printed orders and invoices delays errors in paper handling It is used by organizations that a make a large no of regular transactions Example EDI is used in the large market chains for transactions with their suppliers 3 Internet Commerce It is use to advertise make sales of wide range of goods This application is for both business to business business to services consumer transactions Example The purchase of goods that are then delivered by post or the booking of tickets that can be picked up by the clients when they arrive at the event Advantages of E commerce Buying selling a variety of goods and services from one s home or business Anywhere anytime transaction Can look for lowest cost for specific goods or service Businesses can reach out to worldwide clients can establish business partnerships Order processing cost reduced Electronic funds transfer faster Supply chain management is simpler faster and cheaper using ecommerce Can order from several vendors and monitor supplies Production schedule and inventory of an organization can be inspected by cooperating supplier who can in turn schedule their work Disadvantages of E commerce Electronic data interchange using EDI is expensive for small businesses Security of internet is not very good viruses hacker attacks can paralyse e commerce Privacy of e transactions is not guaranteed E commerce de personalises shopping Features of E Commerce Ubiquity Internet Web technology is The marketplace is extended beyond traditional available everywhere at work at home and boundaries and is removed from a temporal and elsewhere via mobile devices anytime geographic location Marketspace is created shopping can take place anywhere Customer convenience is enhanced and shopping costs are reduced Global reach The technology reaches Commerce is enabled across cultural and across national boundaries around the earth national boundaries seamlessly and without modification Marketspace includes potentially billions of consumers and millions of businesses Worldwide Universal standards There is one set of There is one set of technical media standards technology standards namely Internet across the globe Richness Video audio and text messages Video audio and text marketing messages are possible Integrated into a single marketing message and consuming experience Interactivity The technology works Consumers are engaged in a dialog that through interaction with the user Dynamically adjusts the experience to the individual and makes the consumer a co participant in the process of delivering goods to the market Information density The technology Information processing storage and reduces information costs and raises quality Communication costs drop dramatically while currency accuracy and timeliness improve greatly Information becomes plentiful cheap and accurate Personalization Customization The Personalization of marketing messages and technology allows personalized messages to customization of products and services are to be delivered to individuals as well as groups based on individual characteristics