E-commerce

From Wikipedia, the free encyclopedia
  (Redirected from E commerce)
Jump to: navigation, search

Electronic commerce, commonly known as E-commerce or eCommerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic 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 electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices, social media, and telephones as well.

Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business. It is a Market entry strategy where the company may or may not have a physical presence.

E-commerce can be divided into 7 subsections:

  • E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall"
  • Buying or selling on websites and/or online marketplaces
  • The gathering and use of demographic data through web contacts and social media
  • Electronic data interchange, the business-to-business exchange of data
  • E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters)
  • Business-to-business buying and selling
  • The security of business transactions

Timeline[edit]

A timeline for the development of e-commerce:

Business applications[edit]

An example of an automated online assistant on a merchandising website.

Some common applications related to electronic commerce are:

Governmental regulation[edit]

In the United States, some electronic commerce activities are regulated by the Federal Trade Commission (FTC). These activities include the use of commercial e-mails, online advertising and consumer privacy. The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising must be truthful and non-deceptive.[25] Using its authority under Section 5 of the FTC Act, which prohibits unfair or deceptive practices, the FTC has brought a number of cases to enforce the promises in corporate privacy statements, including promises about the security of consumers' personal information.[26] As result, any corporate privacy policy related to e-commerce activity may be subject to enforcement by the FTC.

The Ryan Haight Online Pharmacy Consumer Protection Act of 2008, which came into law in 2008, amends the Controlled Substances Act to address online pharmacies.[27]

Internationally there is the International Consumer Protection and Enforcement Network (ICPEN), which was formed in 1991 from an informal network of government customer fair trade organisations. The purpose was stated as being to find ways of co-operating on tackling consumer problems connected with cross-border transactions in both goods and services, and to help ensure exchanges of information among the participants for mutual benefit and understanding. From this came Econsumer.gov, an ICPEN initiative since April 2001. It is a portal to report complaints about online and related transactions with foreign companies.

There is also Asia Pacific Economic Cooperation (APEC) was established in 1989 with the vision of achieving stability, security and prosperity for the region through free and open trade and investment. APEC has an Electronic Commerce Steering Group as well as working on common privacy regulations throughout the APEC region.

In Australia, Trade is covered under Australian Treasury Guidelines for electronic commerce,[28] and the Australian Competition and Consumer Commission[29] regulates and offers advice on how to deal with businesses online,[30] and offers specific advice on what happens if things go wrong.[31]

Also Australian government e-commerce website[32] provides information on e-commerce in Australia.

In the United Kingdom, The FSA (Financial Services Authority)[33] is the competent authority for most aspects of the Payment Services Directive (PSD). The UK implemented the PSD through the Payment Services Regulations 2009 (PSRs), which came into effect on 1 November 2009. The PSR affects firms providing payment services and their customers. These firms include banks, non-bank credit card issuers and non-bank merchant acquirers, e-money issuers, etc. The PSRs created a new class of regulated firms known as payment institutions (PIs), who are subject to prudential requirements. Article 87 of the PSD requires the European Commission to report on the implementation and impact of the PSD by 1 November 2012.[34]

Forms[edit]

Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce.

On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce.

Aside from traditional e-Commerce, m-Commerce as well as the nascent t-Commerce[35] channels are often seen as the current 2013 poster children of electronic I-Commerce.

Global trends[edit]

In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the amount spent per capita.[36] The Czech Republic is the European country where ecommerce delivers the biggest contribution to the enterprises´ total revenue. Almost a quarter (24%) of the country’s total turnover is generated via the online channel.[37]

Among emerging economies, China's e-commerce presence continues to expand every year. With 384 million internet users, China's online shopping sales rose to $36.6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online.[38] China's cross-border e-commerce is also growing rapidly. E-commerce transactions between China and other countries increased 32% to 2.3 trillion yuan ($375.8 billion) in 2012 and accounted for 9.6% of China's total international trade [39]

Other BRIC countries are witnessing the accelerated growth of eCommerce as well. In Russia, the total ecommerce market is projected to total somewhere between 690 billion rubles ($23 billion) and 900 billion rubles ($30 billion) in 2015, at 2010 values. This will equal 5% of total retail volume in Russia. Longer-term, the market size of Russian e-commerce could reach $50 billion by 2020. Ecommerce players need to understand unique insights about trust factor, online payments and language peculiarities to penetrate the Russian market. Brazil's eCommerce is growing quickly with retail eCommerce sales expected to grow at a healthy double-digit pace through 2014. By 2016, eMarketer expects retail ecommerce sales in Brazil to reach $17.3 billion.[40] India's ecommerce growth, on the other hand, has been slower although the country's potential remains solid considering its surging economy, the rapid growth of internet penetration, English language proficiency and a vast market of 1.2 billion consumers (although perhaps only 50 million access the internet through PCs and some estimate the most active group of e-commerce customers numbers only 2-3 million). E-commerce traffic grew about 50% from 2011 to 2012, from 26.1 million to 37.5 million, according to a report released by Com Score. Still much of the estimated 14 billion dollars in 2012 ecommerce was generated from travel sites.

eCommerce is also expanding across the Middle East. Having recorded the world's fastest growth in internet usage between 2000 and 2009, the region is home to more than 60 million internet users. Retail, travel and gaming are the region's top eCommerce segments, in spite of difficulties such as the lack of region-wide legal frameworks and logistical problems in cross-border transportation[citation needed]. E-Commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them.[41][42]

In 2012, ecommerce sales topped $1 trillion for the first time in history.[43]

Mobile devices are playing an increasing role in the mix of eCommerce. Some estimates show that purchases made on mobile devices will make up 25% of the market by 2017.[44] According to Cisco Visual Networking Index,[45] in 2014 the amount of mobile devices will outnumber the number of world population.

Multichannel Selling is also worth mentioning, when it comes to e-commerce. As stated in E-commerce trends for 2014, multichannel selling is relatively young but though has already managed to become a key driver for promotion of small business companies unable to compete with media giants in Google. The essence of it lies in equipping a few shopping platforms like Amazon or Nextag for goods promotion.

Impact on markets and retailers[edit]

Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers' ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshops and travel agencies. Generally, larger firms are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend.[46]

Individual or business involved in e-commerce whether buyers or sellers rely on Internet-based technology in order to accomplish their transactions. E-commerce is recognized for its ability to allow business to communicate and to form transaction anytime and anyplace. Whether an individual is in the US or overseas, business can be conducted through the internet. The power of e-commerce allows geophysical barriers to disappear, making all consumers and businesses on earth potential customers and suppliers. E-bay is a good example of e-commerce business individuals and businesses are able to post their items and sell them around the Globe.[47]

Distribution channels[edit]

E-commerce has grown in importance as companies have adopted pure-click and brick-and-click channel systems. We can distinguish pure-click and brick-and-click channel system adopted by companies.

  • Pure-click or pureplay companies are those that have launched a website without any previous existence as a firm.
  • Bricks-and-clicks companies are those existing companies that have added an online site for e-commerce.
  • Click-to-brick online retailers that later open physical locations to supplement their online efforts.[48]

See also[edit]

References[edit]

  1. ^ "Online highs are old as the net: the first e-commerce was a drugs deal". The Guardian (London). 19 April 2013. Retrieved 17 June 2013. 
  2. ^ Tkacz, Ewaryst; Kapczynski, Adrian (2009). Internet — Technical Development and Applications. Springer. p. 255. ISBN 978-3-642-05018-3. Retrieved 28 March 2011. "The first pilot system was installing in Tesco in the UK (first demonstrated in 1979 by Michael Aldrich)." 
  3. ^ 1988 Palmer.C Using IT for competitive advantage at Thomson Holidays, Long range Planning Vol 21 No.6 p26-29, Institute of Strategic Studies Journal,London- Pergamon Press [now Elsevier.B.V.] December 1988.
  4. ^ "E Commerce – Essays – Hpandurang92". Study mode. Retrieved 17 June 2013. 
  5. ^ "Online shopping: The pensioner who pioneered a home shopping revolution". BBC News. 16 September 2013. 
  6. ^ Aldrich, Michael. "Finding Mrs Snowball". Retrieved 8 March 2012. 
  7. ^ "The Electronic Mall". GS Brown. 30 April 2010. Retrieved 17 June 2013. 
  8. ^ "Tim Berners-Lee: WorldWideWeb, the first Web client". W3. Retrieved 21 December 2012. 
  9. ^ Snider, J.H.; Ziporyn, Terra (1992). Future Shop: How New Technologies Will Change the Way We Shop and What We Buy. St. Martin's Press. ISBN 978-0-312-06359-7. Retrieved 28 December 2012. 
  10. ^ "AppWrapper Volume 1 Issue 3 Ships" (press release). 
  11. ^ Kevin, Kelly (August 2005), "We Are the Web", Wired 13 (8) .
  12. ^ "FIrst Electronic Stamps Being Put to Test". Sunday Business. April 6, 1998. Retrieved 16 July 2013. 
  13. ^ "eBay acquires PayPal". Investor. eBay. Retrieved 21 December 2012. 
  14. ^ "Diane Wang: Rounding up the "Ant" Heroes". Sino Foreign Management. Retrieved 3 September 2011. 
  15. ^ "R.H. Donnelley Acquires Business.com for $345M". Domain Name Wire. Retrieved 4 September 2011. 
  16. ^ "Amazon Buys Zappos; The Price is $928m, not $847m". TechCrunch. 22 July 2009. Retrieved 21 December 2012. 
  17. ^ Ahmed, Saqib Iqbal (27 October 2009). "GSI Commerce to buy Retail Convergence for $180 mln". Reuters. Retrieved 6 April 2013. 
  18. ^ "Groupon rejects Google's $6 billion offer". MS‐NBC. MSN. 3 December 2010. Retrieved 21 December 2012. 
  19. ^ "Groupon's IPO biggest by U.S. Web company since Google". Reuters. 4 November 2011. Archived from the original on 13 September 2012. Retrieved 13 September 2012. 
  20. ^ "Amazon buys Diapers.com parent in $545 mln deal". MarketWatch. Retrieved 21 December 2012. 
  21. ^ "eBay Acquires GSI Commerce For $2.4 Billion in Cash And Debt". TechCrunch. 28 March 2011. Retrieved 21 December 2012. 
  22. ^ "US Online Retail Forecast, 2011 to 2016". Forrester Research. 
  23. ^ "Holiday E-Commerce Sales Up 13 Percent To $34B; This Past Week Was Heaviest Online Shopping Period on Record". TechCrunch. 16 December 2012. Retrieved 21 December 2012. 
  24. ^ Laus, Petronela (January 8, 2014). "India Weighs FDI In E-Commerce". The Wall Street Journal India. 
  25. ^ "Advertising and Marketing on the Internet: Rules of the Road". Federal Trade Commission. 
  26. ^ "Enforcing Privacy Promises: Section 5 of the FTC Act". Federal Trade Commission. 
  27. ^ "H.R. 6353: Ryan Haight Online Pharmacy Consumer Protection Act of 2008". Govtrack. 
  28. ^ "Australian Treasury Guidelines for electronic commerce". Australian Federal Government. 
  29. ^ "Australian Competition and Consumer Commission". Australian Federal Government. 
  30. ^ "Dealing with Businesses Online in Australia". Australian Federal Government. 
  31. ^ "What to do if thing go wrong in Australia". Australian Federal Government. 
  32. ^ "Australian government ecommerce website". Australian Federal Government. 
  33. ^ "FSA". UK. 
  34. ^ "The Payment Services Regulations 2009". UK: Legislation. Retrieved 17 June 2013. 
  35. ^ Hacon, Tom. "T-Commerce – What the tablet can do for brands and their consumers". Governor Technology. Retrieved 2013-03-233. 
  36. ^ Robinson, James (28 October 2010). "UK's internet industry worth £100bn". The Guardian (report) (London). Retrieved 21 December 2012. 
  37. ^ Eurostat (18 June 2013). "Ecommerce contribution in Europe" (infographic). Retrieved 18 June 2013. 
  38. ^ Olsen, Robert (18 January 2010). "China's migration to eCommerce". Forbes. 
  39. ^ Tong, Frank (16 September 2013). "China’s cross-border e-commerce tops $375 billion in 2012". Internet Retailer. 
  40. ^ "More Buyers Join Brazil's Robust Ecommerce Market". eMarketer. 
  41. ^ Eisingerich, Andreas B.; Kretschmer, Tobias (March 2008). "In E-Commerce, More is More". Harvard Business Review 86: 20–21. 
  42. ^ Burgess, S; Sellitto, C; Karanasios, S (2009), Effective Web Presence Solutions for Small Businesses: Strategies and Successful Implementation, IGI Global .
  43. ^ "Ecommerce Sales Topped $1 Trillion for First Time in 2012". eMarketer. Retrieved 14 May 2013. 
  44. ^ [1]
  45. ^ "Cisco Visual Networking Index". 
  46. ^ "Economics focus: The click and the dead". The Economist. 3–9 July 2010. p. 78. 
  47. ^ O’Brien, A. J. & Marakas, M. G. (2011). Management Information Systems. 10e. New York: NY
  48. ^ [2]

Further reading[edit]

External links[edit]