E-commerce or electronic commerce is a process of buying, selling, transfering, or exchanging products, services, and/or information via electronic networks and computers. E-commerce is widely considered the buying and selling of products over the internet, but any transaction that is completed solely through electronic measures can be considered e-commerce. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern e-commerce typically uses the World Wide Web (www) for at least one part of the transaction’s life cycle although it may also use other technologies such as email.
Illustration of E-commerce Marketing
The beginnings of e-commerce can be traced to the 1960s, when businesses started using EDI to share business documents with other companies. In 1979, the American National Standards Institute developed ASC X12 as a universal standard for businesses to share documents through electronic networks. After the number of individual users sharing electronic documents with each other grew in the 1980s, in the 1990s the rise of eBay and Amazon revolutionized the e-commerce industry. In 2000s many European and American business companies offered their services through the World Wide Web, since then people began to associate a word “e-commerce”.
There are at least four types of e-commerce, first is business-to-consumer (B2C) which is online transactions are made between businesses and individual consumers such as Amazon and eBay. The producers will do business by selling and marketing their products to consumers without any feedback to do business back to the producers which means consumers only participate as a buyer. The second type is business-to-business (B2B) which is a business conducted by both of companies who have business interests and typically already know each respective of business processes. Usually this type of B2B business to be sustainable, because both of the companies get profit and have a mutual trust in each other. Next is consumer-to-consumer (C2C) which is a business that made beetween a consumer and other consumer, for example is consumers of a companies that sells product to other consumers. The last type is consumer-to-business (C2B) is a business that is done by providing information to manufacturers of consumer related information about the goods he wants to buy.
E-commerce providing benefits to both companies and consumers, and the benefits to companies are global reach, cost reduction, supply chain improvements, extended hours (24/7/365), customization, and improved customer relations. The benefits to consumers are more products and services, cheaper products and services, instant delivery, information availability, and participation in auctions. Besides e-commerce also have a negative impact as the frequent of fraud when shopping online between the seller and the consumers, which is usually the goods that have been paid by e-transfer are not sent to the consumers. The other negative impact is the occurence of crime carding, where someone uses someone else’s credit card to shop on the internet. Other crimes are committed by people who have the ability in the field of computer science such as the spread of a virus or malware.
In conclusion, e-commerce has now become a key component of many organizations in the daily running of their business. As the internet and in turn e-commerce has developed, and continues to evolve and grow, it is vital to any organizations to be prepare take the advantages of features and create a good business strategies in order to compete with other companies.
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Fariz M. Rizki