E-COMMERCE

E-commerce (short for electronic commerce) refers to the

buying and selling of goods and services over the internet. It
involves online transactions, where businesses or individuals
exchange products, services, or information through digital
platforms.
E-commerce businesses may also employ some or all of the
following:
• Online shopping for retail sales direct to consumers via web
sites and mobile apps, conversational commerce via live
chat, chatbots, and voice assistants.
• Providing or participating in online marketplaces, which
process third-party business-to-consumer (B2C) or consumer-
to-consumer (C2C) sales;
• Business-to-business (B2B) buying and selling.
• Gathering and using demographic data through web contacts
and social media.
• B2B electronic data interchange.
• Marketing to prospective and established customers by e-
mail or fax (for example, with newsletters).
• Engaging in pretail for launching new products and services.
• Online financial exchanges for currency exchanges or trading
purposes.
An electronic market, also known as an e-marketplace or
online marketplace, refers to a digital platform where buyers
and sellers engage in transactions electronically. These
markets leverage the internet and digital technologies to
facilitate the exchange of goods, services, or information.

E-Commerce (Electronic Commerce) is the exchange of

money for goods and services via electronic device. In other
words, electronic commerce is usually when consumers
purchase something from the internet. Electronic commerce is
often referred to as e-Commerce or internet commerce.
Originally, electronic commerce meant the facilitation of
commercial transactions electronically, using technology such
as EDI and EFT.

Meaning of E-Commerce
Electronic Commerce or e-Commerce refers to a wide range
of online business activities for products and services. It also
pertains to "any form of business transaction in which the
parties interact electronically rather than by physical
exchanges or direct physical contact".
E-Commerce is the electronic exchange of business
information between two or more organizations. An e-
commerce transaction can be between enterprises, households.
individuals, governments and other public or private
organizations. There is e-commerce conducted between
businesses and those that carried out between a business and
its consumers. Business-to-business e-commerce take place in
electronic data interchange over private networks. Companies
that regularly do business together will setup an automated
and fast info exchange such as stock deliver and receive
confirmation.
A more complete meaning of e-commerce: 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.

History of E-Commerce
E-commerce has a surprisingly long history which started 40
years ago. To this day. continues to grow with new
technologies, innovations and thousands of businesses
entering the online market each year. At first, the term e-
commerce meant the process of execution of commercial
transactions electronically with the help of the leading
technologies such as Electronic Data Interchange (EDI) and
Electronic Funds Transfer (EFT), which gave an opportunity
for users to exchange business information and do electronic
transactions. The ability to use these technologies appeared in
the late 1970s and allowed business companies and
organizations to send commercial documentation
electronically. The history of e- commerce is closely
intertwined with the history of the internet. Online shopping
only became possible when the internet was opened to the
public in 1991. Amazon.com was one of the first ecommerce
sites in the US to start selling products online and thousands
of businesses have followed since.

Key components of an e-commerce platform.:

1. E-commerce Website/Platform
This is the foundation of the online store. It’s where customers
visit to browse and make purchases. It typically includes the
following features:
1.User Interface (UI): The design, layout, and navigation,
which should be easy to use and mobile-friendly.
• Product Listings: Displays products for sale with
descriptions, prices, images, and any other relevant
information.
• Checkout Process: The flow that allows customers to
purchase items, often involving the shopping cart and
payment gateway.
2. Product Catalog
The product catalog is essentially the inventory of items
available for purchase. It is organized to make it easy for
customers to browse, search, and filter items based on various
criteria. Elements include:
• Categories: Grouping products based on type (e.g.,
electronics, clothing, etc.).
• Product Pages: For each item, showcasing detailed
information, including price, description, reviews,
images, and availability.
• Search Functionality: Helps customers find specific
products quickly.
3. Shopping Cart
This is where customers add items they want to purchase
before proceeding to checkout. It allows them to review,
update, or remove products before finalizing the order.
Important features include:
• Item Quantity: Ability to change how many of a product
they want.
 • Price Summary: Displays total costs, including taxes,
shipping, and any discounts.
• Coupon/Discount Application: Option to apply promo
codes or discounts.
4. Payment Gateway
The payment gateway securely handles online transactions
between the customer and the business. This is how money is
transferred from the customer’s account to the seller. Popular
payment gateways include:
• Credit/Debit Cards: Visa, MasterCard, American
Express, etc.
• Digital Wallets: PayPal, Apple Pay, Google Pay.
• Bank Transfers: Some platforms allow direct bank
payments.
• Cryptocurrency: Some e-commerce sites now accept
digital currencies like Bitcoin.
Payment gateways ensure that sensitive data (like credit card
details) is securely encrypted, reducing the risk of fraud.
5. Order Confirmation & Logistics
After the payment is processed, the order confirmation
includes:
• Order Summary: A recap of the items purchased,
shipping details, and payment amount.
• Shipping Options: Information on delivery methods
(e.g., standard, express) and estimated delivery time.
 • Tracking: Many platforms provide tracking numbers so
customers can monitor the shipment of their orders.
Logistics refers to the process of packaging, shipping, and
ensuring the products reach the customers. Businesses work
with third-party logistics (3PL) companies or handle
fulfillment internally.
6. Customer Support
Customer support ensures that shoppers have a positive
experience throughout their journey. It includes:
• Contact Options: Email, phone, live chat, and social
media channels.
• FAQ: A section with answers to common questions,
including shipping times, returns, and payment issues.
• Returns and Refunds: Clear policies and processes for
handling returns and refunds if needed.
The following are the difference between E-Commerce and
Traditional Business:

Basis E-commerce Traditional

commerce
1.Meaning • Customer • Involves
browse and physically where
purchase goods customer visit to
or services market space to
through online purchase
2.Sales • 24x7 • Restricted sales
hour/region • Entire world hour
• Restricted area
3.Sales • Market • Market
place/method space(Network) space(Store)
• Sale based on • Sale based on
information display
4.Payment • Digital • Cash,credit/debit
payment, cards, mobile
mobile payments
payments,cash
on
delivery(COD)
Internet Commerce
Internet commerce refers to the buying and selling of goods
and services over the internet. This form of commerce has
grown rapidly with the widespread adoption of digital
technologies and the internet. Internet commerce encompasses
various types of transactions, including online retail,
electronic payments, online banking, and more.
The components of internet commerce:
1. Online Retail (B2C): This is perhaps the most well-known
form of internet commerce. Businesses sell products and
services directly to consumers through online storefronts or
platforms. Popular examples include Amazon, eBay, and
various brand-specific online stores.
2. Electronic Payments and Digital Wallets: Internet
commerce relies on electronic payment systems to facilitate
transactions. Credit cards, debu cards, and digital wallets (c.g.,
PayPal, Apple Pay, Google Pay) are commonly used to make
online purchases.
3. Online Marketplaces: These are platforms that connect
buyers and sellers, facilitating transactions between them.
Examples include Amazon Marketplace, Etsy, and Alibaba.
4. Mobile Commerce (M-Commerce); With the proliferation
of smartphones, many transactions now occur through mobile
devices. M-commerce involves buying and selling goods and
services using mobile apps or mobile-optimized websites.
5. Online Banking and Financial Services: Internet
commerce extends to online banking. where users can manage
their finances, transfer funds, pay bills, and conduct other
financial transactions through digital platforms provided by
banks.
6. Digital Marketing: Businesses engage in online
advertising and promotion to reach their target audience.
Digital marketing strategies include social media marketing.
search engine optimization (SEO), email marketing, and
online content creation.
7. Subscription Services: Businesses offer subscription-based
models, providing access to products or services on a
recurring basis. Examples include streaming services like
Netflix and subscription boxes for various products.