E-commerce is the use of Internet and the web to transact business but when we focus on digitally enabled commercial transactions between and among organizations and individuals involving information systems under the control of the firm it takes the form of e-business. 3. The online stores can reach a wider market. Fortunately, there is a structured process in building an e-commerce website. Though a website developer is generally engaged in such a job, having some relevant knowledge could additionally help you in constructing a website to your online business.
Unlike regular stores where in customers have to exhaustively walk, or drive to, and is barely limited to people within the neighborhood, online stores can be visited in the consolation of your individual home by people anywhere and everywhere. Online stores are a great manner of reaching a variety of potential customers, especially now with the rapidly rising Internet usage. Now that more and more people are going online, more and more are buying off the Internet.
Likewise, if you have an online business, you will want to convince your potential customers or Web site browsers to make a purchase for the merchandise you are selling out of your Web site. Once consumers decide that they’re ready to make a purchase, they’ll need to be guided to an online transaction or secure Web server with the intention to collect their personal and payment information using a secure encryption method. It’s possible to create a Web site that can collect credit card and other sensitive data with out offering encryption; however, most savvy shoppers will never enter credit card info right into a nonsecure Web site. Therefore, we highly discourage any attempt to create a simple shopping cart that does not include secure socket layer encryption of personal or sensitive data. Operating a Web site with out encryption for personal or credit card information is a sure-fire formula for disaster and loss of potential customers.
The other forms of ecommerce are the G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to Government), G2C (Government-to-Citizen), C2G (Citizen-to-Government). These transactions involves primarily with the government, from procurement to submitting taxes to business registration to renewing license. There are nonetheless plenty of other categories that exist however then they tend to be superfluous.
International Reach – E-commerce technology permits commercial transactions to cross cultural and national boundaries far more conveniently and effectively as compared to traditional commerce. As a result, the potential market size for e-commerce merchants is roughly equal to the size of world’s online population.
If one’s market is education, consider that almost all universities already offer Internet accesses to their students and most K-12’s will be on the Internet inside the next few years. Books, athletic shoes, research courses, youth vogue and something else that may need to reach these overlapping markets needs to be on the WWW. Even with the coming of the commercial on-line services and their somewhat older populations there will be nothing but development in the percentage of the under 25 market that can be on-line.
Excessive Prices- One of the major ache level of a seller in the traditional ecommerce business model is the involvement of a middleman, who takes away a good share of money on every purchase. The seller has to pay the transaction processing fee for completion of each transaction.