e-commerce

E-COMMERCE:



E-commerce means electronic commerce which means carrying of business transaction through internet.It means buying and selling products and services through electronic means.E-commerce includes any form of computerised buying and selling.It refers to paperless exchange of business information.It makes use of electronic data interchange,electronic mail,electronic bulletin,electronic funds transfer and so on.

Thus,E-commerce includes all form of business transaction which are carried out through electronic processing and transmission of data.

With the help of E-commerce,an organisation can achieve the following objectives:

1)Create new products and services.

2)Access new markets.

3)Build customer loyalty.

4)Make optimum use of technology.

5)Enrich human capital.

6)Gain competitive advantage.



BENEFITS OF E-COMMERCE

1)Global market- E-commerce enables business firm to reach out to customers all over the world who have access to internet.The whole world becomes ,therefore,a potential market for business enterprise.



2)Round the clock marking- A website is open all 24 hours.It can take orders,keep an eye on delivery of goods and receive payment at any time.A business firm can provide desired information to its customers.It can also apply three dimensional image of its product.



3)Reduced costs- With the help of E-commerce,business firm can substantially reduce the cost of its business transactions.E-commerce can help reducing the advertising costs,expenses involved in exchange of information etc.The number of customer service representative can be reduced by providing information on website.



4)Wide choice- For the customer,the whole world becomes a shop.They can look and evaluate the same product at different website and can make their choice.



5)Customer convenience- Customers can shop sitting at home or office.They do not need to stand in a queue to talk to salesmen or to read catalogues and price lists.They can access the internet and buy at any time according to their convenience.Payments can also be made online.



6)Direct contacts- Business firms can make direct contact with their customers by eliminating the middlemen.They can focus on specific groups.



7)Sales promotion- E-commerce can be used for sales promotion.Catalogues and new product launch can be transmitted to customers through the internet.Paperless in formation saves time and money as well.



8) Customer satisfaction- E-commerce allows quick response and redressal to customers complaints.This help to increase customer satisfaction.



9)Less investment- Business firms can get quick supply from the vendors.They need not maintain huge inventories,therefore,less capital is blocked in inventory.





LIMITATIONS OF E-COMMERCE

1)High risk- Internet start up organisation face huge risk.Several high paid executives who resigned and set up internet start ups lost huge amount of money.



2)Shortage of talent- There is a great shortage of skilled persons who can successfully handle E-commerce.Traditional organisational structure and poor work cultures also restricts the growth of E-commerce.



3)Lack of security- Security is a serious concern in e-commerce transaction.Online customers are reluctant to disclose their credit cards number due to fear of frauds.



4)Operation problems- Customers may loose confidence in e-commerce when firms fails to fulfill its commitments.There are instances of website crashing,merchandise mix-ups and shipping delays.