Question- What do you understand by electronic commerce ? Differentiate rate between traditional Commerce and E- Commerce.

or
Define E-Commerce. Write a detailed note on traditional Commerce Vs. E-Commerce.

Related Short Answer Questions
1. What is E-Commerce?
Or
2. Define E-commerce.

Ans.

E-Commerce: Meaning and Definition

E-Commerce consists of the buying, selling, marketing, and servicing of products or services over computer networks. The information technology industry might see it as an electronic business application aimed at commercial transactions. Doing business online, typically via the Web is e- commerce. Although in most cases e-commerce and e-business are synonymous, e-commerce implies that goods and services can be purchased online, whereas e-business might be used as more of an umbrella term for a total presence on the Web, which would naturally include the e-commerce component. E-commerce, commonly known as e-comm, e-commerce or e- Commerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange automated data collection systems etc. Modern e-commerce typically uses the www.

E-commerce is generally considered to be the sale aspect of e- business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions. A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most e-commerce involves the transportation of physical items in some way. Online retailers are known as e- tailers and online retail is known as e-tail. Almost all big retailers have - commerce presence on the www.

E-commerce is concerned with system and business processes that support the following:

(i) Creation of information sources,

(ii) Movement of information over networks

(iii)Effective and efficient interaction among sellers, consumers and intermediaries.

E-commerce describes the process of buying and selling or exchanging of products, services, and information via computer networks including the internet.

Definitions of E-Commerce are as Under:

Communications Perspective : E-commerce is the delivery of information, products/ services, or payments over the telephone lines, computer networks or any other electronic means.

Keeping in view the Business Process Perspective : E- commerce is the application of technology toward the automation of business transactions and work flow.

If we keep Service Perspective : In mind, E-commerce is a tool that addresses the desire of firm, consumes, and management to cut service costs while improving the quality of goods and increasing the speed of service delivery.

When we keep in view the online Perspective : E-commerce provides capability of buying and selling products and information on the internet and other online services.

The definition of e-commerce includes business activities that are business-to-business business-to-consumer, extended enterprise computing (also known as "newly emerging value chains") d-commerce, and m-commerce.

E-commerce is simply a part e-business, more specifically, the trading aspect of e-business. Although there are many definitions and explanations of e-commerce, the following definition provides a clear distincition. There are many definitions and understanding about E-Commerce. They are as follows:

• According to the 'editor-in-chief of International Journal of Electronic Commerce, Vladimir Zwass - "Electronic commerce is sharing business information, maintaining business relationships and conducting business transactions by means of telecommunications networks."

• According to Thomas L.Mesenbourg - "E-Commerce is usually associated with buying and selling over the internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network".

• According to MK. Euro Info Correspondence Center (Belgrade, Serbia) - "It pertains to any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contant."

• According to E. Turban J. Lee, D.King and H.M. Chung - Electronic Commerce is where business transactions take place via telecommunications networks, especially the Internet".

• According to P. Timmers - "Electronic Commerce is about doing business electronically".

• According to Anita Rosen - "Electronic Commerce or E-commerce refers to a wide range of online business activities for products and services"

E-commerce is commerce using Internet Technology for electronic transactions which are conducted in such a way that both the offer for sale and its acceptance is made electronically. It is a general concept covering any form of business transactions or exchange of information that is made by using Information and Communication Technology. This is the buying and selling process that is supported by electronic means. E-Commerce denotes commercial transactions in which an order is placed electronically and goods or services are delivered in tangible or electronic form. It denotes all forms of business transactions caried out via the Internet, through electronic processing and transmission of data including text, sound and visual images. E-commerce can also be defined as a form of business transaction in which the parties interact electronically."

E-Commerce is the use of electronic communication and digital information processing technology in business transactions to create, transform and redefine relationships for value creation between or among organizations, and between organizations and individuals. It is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer mediated network. E-commerce also pertains to any form of business transaction in which the parties interact electronically rather than by physical exchanges of direct physical contact.

E-Commerce is defined as a "fusion of telecommunication and computing technology to conduct business which means that there is a creation and management of relationship between buyers and sellers, facilitated by an interactive and pervasive electronic medium. E-Commerce includes electronic trading". "E-Commerce describes the process of buying and selling or exchanging of products, services and information via computer networks including the internet."

E-Commerce is defined as the technology mediated exchanges between the parties as well as the electronic based intra or inter organization activities that facilitate such exchanges.

According to Emmanuel Lallana, Rudy Quimbo, Zorayda Ruth Andam, ePrimer - A more complete definition is; E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals.

The electronic commerce is more than online shopping.

In E-Commerce everything is digital. Less overhead cost, elimination of the middleman (disintermediation), financial transactions on the Internet can actually be more secure than in traditional business.

Some major Areas of E-Commerce are as under:

Inter-organizational : It includes a e-commerce activities between businesses.

Intra-organizational : It includes e-commerce activities.

Retail: Retail e-commerce activities are directed towards consumers. It can be used for any business for consumer interactions.

E-commerce includes EDI which is mostly applied in execution and settlement phases of the trade cycles. That is both the customer order and delivery notifications can be sent by EDI. Many organizations have started using the internet as an EDI value added data services. Exchanges takes place within an agreed trade relationship and often in the context of a formal contract.

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