E-Commerce

&
E-
Banking
 E-
commerce
E-commerce (electronic commerce) refers to the buying and selling of
goods and services over the internet.
It includes various types of online business activities, such as retail
shopping, banking, investing, auctions, and others.
Types of E-commerce
a. Business-to-Consumer (B2C)
b. Business-to-Business (B2B)
c. Consumer-to-Consumer (C2C)
d. Consumer-to-Business (C2B)
1. The Rise of the Internet (1960s-1990s) :
 In 1990 Electronic Data Interchange (EDI) and Electronic Funds Transfer
(EFT), to facilitate business transactions electronically.
 The internet became publicly accessible, enabling a new era for businesses. The
commercialization of the internet laid the foundation for e-commerce.
2. First Online Transactions (1994) :
 The first secure online transaction was conducted when a customer bought a
Sting CD through NetMarket, marking the birth of e-commerce
 Pizza Hut became one of the first businesses to offer online ordering.
3. The Rise of Key Players (Late 1990s - 2000s) :
 Amazon, founded by Jeff Bezos in 1994, started as an online bookstore
but quickly diversified into other product categories, becoming one of
the largest e-commerce platforms globally.
 PayPal, launched in 1998, online payments and played a key role in
facilitating e-commerce transactions.
4. Global Expansion (2000s and Beyond) :
By the 2000s, e-commerce became global, with the rise of mobile
commerce (m-commerce), allowing users to shop directly from their
smartphones.
5. Modern E-Commerce and the Digital Economy
(2010s - Present) :
E-commerce has grown exponentially, driven by advancements in
technology, digital payment systems, and logistics.
[ Companies like Amazon, Alibaba, and Walmart lead the market,
Shopify, Etsy, and Shopee have provided opportunities to sell online.]
 Advantages of E-Commerce
1. Convenience and Accessibility :
E-commerce allows customers to shop 24/7 from anywhere with an
internet connection, eliminating the need for physical store visits.
2. Wider Customer Reach :
Businesses can expand their reach globally, gaining access to a much larger audience
than traditional brick-and-mortar stores.
3. Lower Operational Costs :
E-commerce businesses can save on expenses such as rent, utilities, and in-store staff,
which significantly reduces overhead costs.
4. Personalization and Customer Targeting :
With the use of data analytics, e-commerce platforms can
personalize shopping experiences by recommending products based on user
behavior and preferences.
5. Faster Buying Process :
Online platforms streamline the purchasing process, allowing
customers to find products, compare prices, and check out quickly.
6. Product and Price Comparison :
E-commerce websites make it easy for customers to compare
products, prices, and reviews across multiple vendors, ensuring informed
purchasing decisions.
 Disadvantages of E-
Commerce
1. Lack of Physical Interaction :
Customers cannot physically touch, try, or inspect products before purchasing,
which can lead to dissatisfaction if the product does not meet their expectations.
2. Shipping and Delivery Delays :
E-commerce relies heavily on logistics and shipping, which can result in
delays or additional costs for customers. Issues like shipping damage or lost
parcels may also occur
3. Security and Privacy Concerns :
Online transactions expose customers to risks such as fraud, data breaches, and
identity theft. Ensuring secure payment systems is critical to building trust in e-
commerce.
4. High Competition :
The global nature of e-commerce results in fierce competition, making it difficult
for new or smaller businesses to stand out and attract customers.
5. Technology Dependence :
E-commerce requires reliable internet access and technological infrastructure.
Downtime due to website crashes, maintenance, or cyberattacks can disrupt sales
and damage a company’s reputation.
6. Customer Trust Issues :
Some customers are hesitant to shop online due to concerns about product
authenticity, privacy, or the reputation of unknown sellers. Building trust takes
time and effort.
 E-Banking
 E-Banking (Electronic Banking) refers to the process of performing banking
activities through digital channels such as the internet or mobile devices, rather
than visiting a physical bank branch.
Types of E-Banking:
1.Internet Banking (Online Banking):
2.Mobile Banking:
3.ATM Services:
4.Telephone Banking:
 Advantages of E-Banking
1. Convenience :
Customers can access banking services 24/7 from anywhere with an internet
connection, making it easier to manage finances outside of traditional banking hours.
2. Speed and Efficiency :
E-banking enables fast transactions, including money transfers, bill payments, and
account management, all of which can be done instantly without visiting a physical
bank branch.
3. Lower Costs :
E-banking reduces costs for both banks and customers. Banks save on operational
costs (e.g., fewer branches, staff), while customers avoid fees related to in-person
banking services.
4. Real-Time Monitoring :
Customers can monitor their account balances, transactions, and statements in real-
time, allowing better financial control and fraud detection.
5. Automated Services :
Features like automatic bill payments, scheduled transfers, and notifications
streamline banking tasks, improving convenience and time management for
customers.
6. Accessibility :
E-banking is accessible to anyone with a computer or smartphone, providing
banking services to people who live in remote areas or are unable to visit a bank
physically.
 Disadvantages of E-Banking
1. Security Risks :
E-banking is vulnerable to cyber-attacks, including phishing, hacking, and identity theft.
While banks use encryption and security protocols, these threats remain a major concern
for users.
2. Technical Issues :
E-banking services are reliant on technology. Technical glitches, downtime, or outages can
temporarily restrict access to accounts, causing inconvenience to customers.
3. Limited Personal Interaction :
Lack of face-to-face interaction can be a disadvantage for customers who prefer
personalized service or need assistance with complex banking issues.
4. Digital Exclusion :
Elderly individuals, those without reliable internet access, or those who are not tech-savvy
may find e-banking challenging to use or inaccessible.
5. Fraud and Scams :
E-banking users may fall victim to scams such as fraudulent websites, fake banking apps,
or social engineering attacks that trick them into sharing personal information.
6. Dependency on Internet and Devices :
E-banking requires internet connectivity and compatible devices (e.g., smartphones,
computers), which means that if the internet is down or the device is unavailable, banking
services cannot be accessed.
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