Information Technology has transformed the manner people work. Electronic Commerce or E-commerce has unleashed yet another revolution, which is altering manner concerns buy and sell merchandises and services. Associated with purchasing and merchandising of information, merchandises and services over computing machine communicating webs, e-commerce helps carry on traditional commercialism through new ways of reassigning and treating information, since it is information which is at the bosom of any commercial activity. Information is electronically transferred from computing machine to computing machine in an automated.Or e-commerce is a term for any type of concern, or commercial dealing that involves the transportation of information across the Internet. It covers a scope of different types of concerns, from consumer based retail sites, through auction or music sites, to concern exchanges merchandising goods and services between corporations. It is presently one of the most of import facets of the Internet to emerge.
It seems suiting that at the beginning of the following millenary, we ‘re on the threshold of a quiet revolution. The dramatic technological innovations are about to wholly transfigure the manner we do concern.Electronic commercialism uses the web to convey together clients, sellers and providers in ways ne’er before possible. The web enables your nucleus concern processes to better client service, cut down rhythm clip, acquire more consequences from limited resources and really sell things.
In short, it is utilizing the web to sell goods, services and information to consumers.The E-commerce engineerings are designed to replace traditional paper-based work flow with faster, more efficient and dependable communications between computing machines. And it is on this engineering that concerns are expected to piggyback on in the following millenary.
All you need is a computing machine, a browser, and internet entree, and you can purchase flowers, air hose tickets, and even a auto & A ; tonss. You are limited merely by your imaginativeness!
Speed and convenience are considered as the chief grounds for the rush in E-commerce. Unfettered by boundaries of geographics, linguistic communication and other barriers, web sites can stay unfastened all 24 hours a twenty-four hours. For both, those necessitating every bit good as those supplying services, entree are merely a few chinks off.
In bend, these chances give birth to more chances.However intriguing the engineering and its usage is, it would make good to remind us that everyone on the planetary competitory phase has the same entree to engineering. It is once more the human head, which will find how you will be able to tackle this engineering. Move enterprisers and give manner to new enterprisers. And it is in this country that India Domain ‘s expertness is so important.
TYPES OF E-commerce:
A concern organisation can form itself to carry on e-commerce with its trading spouses, which are concerns and/or with its clients.
The ensuing manners of making concern are referred to as Business-to-Business ( B2B ) , and Business-to-Consumer ( B2C ) e-commerce. There is another class of e-commerce, referred to as consumer-to-consumer ( C2C ) .B2B: This is e-commerce between concerns. The exchange of merchandises, services or information between concerns on the cyberspace is B2B e-commerce. Since illustrations of B2B includes company websites, merchandise supply and procurance exchanges, specialized or perpendicular industry portals, brokering sites, information sites, and banking and fiscal sites that provide information for its concern clients and employees. For illustration, Seekandsource.com is a really big Indian cross-industry market place that is ideal for concerns purchasing and selling to a broad cross-section of industries.
B2B needs to hold inbuilt procedures to incorporate Sellerss ‘ and purchasers ‘ systems for presenting maximal benefits to merchandising spouses.B2C: This is business-to-consumer e-commerce. It may be defined as many concern selling its merchandises or services to consumers over the cyberspace for their ain usage.
Amazon.com, the on-line book marketer that launched its site in 1995 to sell books and other merchandises straight to consumers, is a premier illustration of B2C e-commerce. In add-on to online retail merchants, B2C has grown to include services such as online banking, travel services, on-line auctions, existent estates, wellness services, insurance and other services. Retailers do non hold to incorporate with their clients ‘ systems, though they need to track their penchants to maintain their trueness to their sites so as to guarantee their repetition visits.C2C: This is consumer-to-consumer e-commerce. A practical market place on the cyberspace in the signifier of a website enables Sellerss and purchasers to run into and interchange goods, including used goods, at a negotiated monetary value in C2C. Such a site is known as an auction site, and it started like a garage sale. The most celebrated site is eBay.
com, which started the C2C revolution. Many similar companies in other states have been acquired by eBay. For illustration, in India, the auction site Bazzze.com has late been taken over by eBay.
Elementss OF PAYMENTS IN E-COMMERCE
When a purchaser procures goods or services electronically from a merchandiser, the method of payment is Electronic Payment Systems. Authentication, unity, mandate and confidentiality are the basic security demands that must go on to be met when payments are made electronically for such procurance.1. PAYMENT GATEWAY: Payment gateways handle all the payments operations that are needed for operating multiple payment mechanisms including debit cards and smart cards in e-commerce sites.
The waiters on these sites have to be secured and punctually certified by a certifying authorization. Normally, there are two maps within payments gateway package. Thesiss are:a. The mandate map which performs enfranchisement and issue of digital designation to the entities that would be interacting with the payment gateway.B. The colony map which facilitates the transporting out of existent inter-banking minutess.2.
INTERNET Banking: With the enlargement of the cyberspace, more and more Bankss and fiscal establishments are utilizing the cyberspace and the Web to offer an extra channel for their services every bit good as to better communicating with their clients. Convenient and safe ‘anytime anyplace ‘ banking can be carried out over the Internet.3. PAYPAL: PayPal, an eBay company, has a alone payment theoretical account wherein can be sent to anyone who has an e-mail reference. Customers of PayPal are allowed to travel money electronically from their bank history to other PayPal history holders, unlike traditional Bankss wherein such transportation requires checks. Account holders can direct money to non-account holders by making a practical history attached to an e-mail reference.
4. Electronic Cash: Electronic or digital hard currency ( e-cash ) facilitates the executing of hard currency payments for minutess on the Internet. Electronic hard currency refers to prepaid, stored value that can be used for electronic purchases in stead of hard currency. It is easy exchangeable in an electronic format and is tamper-resistant.5. ELECTRONIC CHEQUE: An electronic check is yet another mechanism for Internet payments. This installation is the Internet version of Financial EDI systems which have allowed these maps to be performed over VANs.
The electronic check provides Internet websites the ability to execute assorted fiscal maps.
THE CUTTING EDGE OF BUSINESS
B2B comprise about 80-90 per centum of all e-commerce by value. Businesss are transforming themselves into e-Businesses by integrating e-commerce tools, re-engineering their concern procedures and incorporating them with those of their spouses. In this subdivision, we will show three companies those are taking this transmutation in different countries. Amazon is a pure-play dotcom company that rediscovered itself, after initial accent of gross revenues through web site merely, in the physical universe by integrating a supply concatenation, repositing, and client relationship to go a profitable concern. eBay is yet another pure-play dotcom company that pioneered C2C e-commerce and go a profitable company from the really get downing. Baazee is an Indian company emphasizes the e-business in a new epoch. It ‘s the most likely Indian site where anyone can sell or purchase about everything.
Amazon.com-Anything else?Introduction: Amazon.com, a pure-play B2C dotcom web site, opened as an online bookshop in July 1995. It mission was to utilize the Internet to transform book purchasing into the fastest, easiest, and most gratifying shopping experience possible.
Jeff Bezos, CEO of Amazon.com, argued that retail shops required batch of existent estate in premier locations to sell merchandises to clients, and that the cost of existent estate was ever traveling up. Technology, on the other manus, was ever acquiring cheaper. He wanted to merchandise engineering for existent estate in his practical bookshop. Thatswhy the largest physical bookshop shops fewer than 200,000 rubrics ; Amazon offers more than 3 million.PRODUCTS & A ; SERVICES: Jeff Bezos ‘ vision was to construct the most customer-centric company and to set up a practical store wherein a client could purchase anything. Amazon did interpret this vision into world by establishing a ‘Your Store ‘ service in 2001. Today, the biggest bookshop is quickly going the biggest anything shop.
The Amazon.com chief web site offers 1000000s of books, Cadmiums, DVDs, free electronic salutation cards, on-line auctions, games, pictures, playthings, tools, electronics, place trappingss, dress, kitchenware, computing machines, wellness and beauty goods, prescription drugs, epicure nutrients, wellness and services including movie processing. Expansion continues with Amazon traveling into chartless districts in its pursuit to go the universe ‘s biggest shop.The web site offers an extended catalogue of merchandises, and a broad assortment of others shopping services and partnership chances.
The installations it offers are as follows:Search for books, music, picture.Browse practical aisles in 100s of merchandises classs.Get personalized recommendations based on anterior purchases.Explore the universe and extra points on Amazon ‘s international sites.Become an Amazon.com Associate and gain money by selling merchandises on one ‘s ain site.
Amazon is pioneer in bettering the shopping experience. Soon Amazon provides merchandises on Books Movies, Music & A ; Games, Digital Downloads, Computers & A ; Office, Electronics, Home & A ; Garden, Grocery, Health & A ; Beauty, Toys, Kids & A ; Baby, Apparel, Shoes & A ; Jewelry, Sports & A ; Outdoorss, Tools, Auto and many more. Its inventions included one-click shopping, merchandise reappraisal information, purchase circles, e-mail qui vives, recommendations, wish list, etc.Growth: As a consequence, Amazon is now the largest shop on Earth.
And it is profitable. Amazon besides expanded in analogue into international markets. Even in July 1995, it had clients from 45 states. By the twelvemonth 2000, 13.8 per centum of its grosss came from over 150 states. It opened distinguishable web sites for its clients in Britain, Germany, France and Japan with content in local linguistic communications for clients.
Harmonizing to Neilsen ‘s Net Evaluations, Amazon.com had 31 million alone visitants in the month of November 2001, as compared to 27 million for Yokel! and million for eBay web sites. It was ranked among the top fastest turning e-tailers. It posted its first quarterly net income of US $ 5.8 million in the 4th one-fourth of 2001-the entire gross revenues in the twelvemonth were US $ 3.1 billion.
With gross revenues of US $ 1.46 billion in the 3rdone-fourth of 2004, it was expected to hold entire gross revenues of US $ 6.9 in the twelvemonth 2004, with an runing income of about US $ 8 billion, and the operating income to about US $ 600 million.
Payment Option: Amazon accepts the undermentioned cards as payment for orders:Visa ( including the Amazon.com Visa Card )MasterCard/EuroCardDiscover NetworkAmerican ExpressDiner ‘s Club ( U.S. charge addresses merely )JCBVisa or MasterCard look into cards or ATM cardsVisa, MasterCard, or American Express gift cardsAmazon Credit AccountDebit, cheque, and gift cards issued by the companies above in add-on to their standard recognition cards can besides be used.In add-on, Amazon lets Amazon Payments to utilize the same recognition card on file with Amazon.com to pay for points that purchased from others. When anyone purchase a used or collectable point at Amazon Marketplace or from an Amazon Merchant, can pay via Amazon Payments. But Amazon Payments does non back up payment by cheque, money order, or PayPal.
eBay.com- Do n’t merely shop. Win!Introduction: eBay was launched in September 1995 by an enterpriser, Pierre Omidyar who was looking for a manner to make a just and efficient market on the Internet in the signifier of an auction.
It was launched as Auction Web, and rechristened eBay in September 1997.PRODUCTS & A ; SERVICES: Forming informations into classs and enabling users to choose what they need, merely like what Amazon offered in the instance of books, was an of import component of eBay ‘s scheme.The eBay web site proclaims that “ eBay is the universes Online market place, enabled trade on a local, national and international footing. With a diverse and passionate community of single and little concern, eBay offers an online platform where 1000000s of points are traded each twenty-four hours ” . eBay enables a visitant to the site to happen, purchase, and pay for an point by command as if he were take parting in an auction. In order to happen an point, a visitant can either come in the coveted name, or browse through the classs of points provided under the first measure ‘Find ‘ . Thirty two classs, from Antiques to Video Games are listed alphabetically much like alphabetic listings in the classifieds subdivisions of newspapers.
For illustration, when he clicks on the class of ‘Books ‘ , a visitant is taken to a page with farther categorizations running into several 100s with particular properties like difficult screen or paper-back book, foremost or ulterior editions, publication twelvemonth, used or new, quality of book, text edition, kids or teenage usage, capable affair and so on. Users have entree to lively treatments on booksellers ; they can fall in the Book Readers Discussion Board. The on-line market place therefore provides a alone shopping experience. It offered newspaper classified with added advantage of non-linear hunt. Prospective purchasers were presented a platform to interact with Sellerss, command for points they were interested in, shut the auction trades, arrange person-to-person meetings for exchange of goods traded, and settle payments.eBay turned out to be a direct rival of newspapers. It enabled Sellerss to post properties of points on sale, the expected monetary value, and their pick of how possible purchasers could reach them.
Users can seek specific classs, sub-categories or the full eBay database of listings by utilizing keywords to depict their countries of involvement. Detailed descriptions and images of points offered for sale, payment and transportation footings are constantly included in the listings. eBay does n’t straight take part in the physical dealing nor in the payment.
Seller can take English or Dutch auctions enduring three, five, seven, or 10 yearss. eBay charges Sellerss a listing fee and dealing fee.eBay opened a feedback forum from the really get downing. Following a successful auction, purchasers and Sellerss were encouraged to go forth feedback for one another. Transaction related feedback could be left merely by purchasers and Sellerss. It helped set up a grade of ‘virtual trust ‘ .Get downing as a market place for aggregators of low-cost points like Beanie Babies and PEZ dispensers, eBay expanded into mainstream merchandise classs such as computing machines, consumer electronic, jewelry and athleticss equipments.
eBay has particular selling and concern developing activities to speed up the development of the most active classs. Class Directors are designated for presenting category-specific bulletin boards and confab suites, and for incorporating category-specific content to a liaison function with eBay ‘s IT material.eBay launched its ‘Go Local ‘ enterprise with its first regional auction site-eBay Los Angeles and therefore it had launched in largest metropolitan countries in US. It wanted to promote the sale of points that were excessively bulky or expensive to transport, points that people preferred to inspect before buying, and points of local involvement.
Accepted Payments Policy in eBay:
Sellers and Buyers meet through the eBay market place, and interact through it as besides straight.
They follow the auction or fixed formats facilitated by the web site. Most points require little payments to be exchanged. Both Buyers and Sellers found it inconvenient to cover with money orders or checks. eBay encourages following payment methods:PayPal – PayPal is the fast, easy, and unafraid manner to pay on eBay. When Sellerss list points with PayPal as a payment method, purchasers can firmly pay online with a recognition card or look intoing history.
PayPal besides helps protection against fraud.Merchant history recognition card – Sellers can put up eBay Checkout to take recognition card payments and require purchasers to supply their recognition card information. If the purchaser is utilizing a recognition card, reach the card issuer and verify that the name on the card matches both the transportation information and contact information.Other methods of payment include personal cheques, tellers cheques, and money orders. These methods are traceable to a peculiar mailing reference, but most Sellerss wait for the financess to unclutter before they ship the point to the purchaser. The advantage of these methods is that there is no extra fee to the marketer.Escrow – For costly points, eBay recommends eBay ‘s approved escrow services.
Cash – eBay does non urge hard currency or hard currency wire transportations as a payment method. The deficiency of dealing protections and traceability represent major hazards with small to no redress for dealing jobs.eChoupal.com — -Empowering FarmersIntroduction: E-Choupal was launched in June 2000 by ITC limited company, a taking fast traveling consumer goods ( FMCG ) coffin nail major, while being renowned for its coffin nail concern, besides has concern involvements in hotels, poster boards, paper and packaging ; agri-exports and some other branded FMCG merchandises. ITC ‘s agri-business is one of India ‘s largest exporters of agricultural merchandises. With its advanced web-based E-Choupal enterprise, ITC has sought to plow back a larger portion of the merchandises monetary value in the market to the husbandman in regard of its agri-business. The distribution procedure has been adapted to run into the demands and challenges of consumers at the underside of the economic pyramid. E-Choupal has become the capable affair of a instance survey at Harvard Business School, and is expected to increasingly make for ITC a immense rural distribution substructure, significantly heightening the company ‘s the company ‘s market range.
PRODUCTS AND SERVICES: With E-Choupal, the husbandmans, who participate in this enterprise, benefit from higher monetary value returns. ITC operates at a lower cost, holding re-engineered the supply chain-the mediators in the supply concatenation between the husbandman and ITC, have retained their maps of collection, logistics and funding, but have been removed from the concatenation of information flow and market signals. The undermentioned five distinguishable services are offered to the husbandmans by E-Choupal:Information in the local linguistic communication on the conditions, harvest, monetary values, e-mail and intelligence.Knowledge on tautening methodsPurchase of seeds, fertilisers, pesticides and servicesGross saless of their green goodsDevelopment.The Indian husbandman is now linked to consumers in the local and planetary markets through E-Choupal.
A husbandman, who would earlier happen out the monetary value for his green goods after he had incurred costs of transit, thereby selling at whatever monetary value he got, can now do a determination before go forthing the small town.Meanwhile, ITC now buys more than 25 per centum of its trade goods through the E-Choupal. E-Choupal minutess deserving $ 100 million were carried out in 2003.E-Choupal booths are managed by sanchalaks, who are husbandmans themselves.
The sanchalaks selected by ITC to run the service in the small town are educated at least up to the school degree. In many cases, the kids of the sanchalaks excessively help out in the running of the Internet Kiosk. Information associating to the conditions, market monetary values, farm patterns and hazard direction, along with facilitation of sale of farm green goods and procurance of house inputs, is provided through these booths, all in the local linguistic communication.
E-choupal is now one of the pioneering enterprises for rural India. Its services are now offered to more than three million husbandmans in over 29,500 small towns through around 5050 Internet booths across small towns in Madhya Pradesh, Rajasthan, Karnataka, Andhra Pradesh, Maharastra and Utter Pradesh. E-Choupal is spread outing into 30 new small towns every twenty-four hours.
The merchandises covered include soyabean, java, wheat, rice, pulsations, and runt. The E-Choupal portals are based on Indian linguistic communications like Hindi, Kannada and Telugu.
The e-Choupal theoretical account shows that a big corporation can unite a societal mission and an ambitious commercial venture ; that it can play a major function in apologizing markets and increasing the efficiency of an agricultural system, and do so in ways that benefit husbandmans and rural communities every bit good as company stockholders. ITC ‘s illustration besides shows the cardinal function of information technology-in this instance provided and maintained by a corporation, but used by local farmers-in assisting to convey approximately transparence, toaddition entree to information, and to catalyse rural transmutation, while enabling efficiencies and low cost distribution that make the system profitable and sustainable.
Critical factors in the evident success of the venture are ITC ‘s extended cognition of agribusiness, the attempt ITC has made to retain many facets of the bing production system, including retaining the built-in importance of local spouses, the company ‘s committedness to transparence, and the regard and equity with which both husbandmans and local spouses are treated.
In position of the positive response received from husbandmans in the four provinces where E-Choupal has been implemented, ITC now plans to widen E-Choupal to eleven other provinces in India in the following six old ages to cover 100,000 small towns, and make out to 10 million husbandmans. By 2010, the turnover of the E-Choupal is projected to make over Rs.9000 crores.Legal ISSUES:The legal issues of e-commerce have generated enormous involvement among engineers, bargainers and legal experts.
Many of the early e-commerce experiments, and even production systems went into operation without any legal interchange understanding between merchandising spouses, or between webs and their clients.Incorporation: Incorporation means that any company is a separate legal and fiscal entity. It even has its ain societal security figure for revenue enhancement intents. Integrating makes expression more professional, and frequently helps with revenue enhancements. While incorporation protects in many respects, it does non protect from any condemnable charges by the corporation.Hallmark: The hallmark act, or “ Lanham Act ” , 18 USC Sec.
1051 etc. is meant to guarantee that consumers can right place the beginnings of goods or services. A hallmark is a word, phrase, symbol or design, or combination of words, phrases, symbols or designs, which identifies and distinguishes the beginning of peculiar goods. A service grade is the same as a hallmark, except that it identifies and distinguishes the beginning of a service instead than a merchandise.Copyright: Copyright can be of import when companies obtain content for their site, and in the protection of the site ‘s content.The proprietor of a right of first publication has the sole right:to copy the workto modify the work ( make “ derivative plants ” )to administer the workto execute the work publicallyto expose the work publicallyCopyright arises upon the creative activity of a copyrightable plant ( typically significant text, images, music, etc. ) .
The Future of E-commerce:
Commerce what does the hereafter clasp for e-commerce? Many would state it is hard to foretell.
The forces that determine the web ‘s victors and also-rans are merely taking form and technological progresss could add even more uncertainness. On the downside, some experts predict that it will be progressively hard for smaller companies to set up their presence. Public companies and extra trade name name retail merchants have deep pockets and a name acknowledgment that will do it hard for smaller sites and mom-and-pop stores to pull clients, thereby coercing them to vie with the large male childs. On the Net, it ‘s one large vicinity. On the top, about all experts believe that overall e-commerce will increase exponentially in approaching old ages. Business to concern minutess will stand for the largest gross.
Online retailing will besides bask a drastic growing. Areas expected to travel include fiscal services, travel, amusement and food markets. And for those sing opening a practical shopfront, forthcoming engineering and criterions understandings will do it easier to make a site, to protect it against payment fraud, and to portion information with providers and concern spouses.