E-commerce,
stands for electronic commerce, is trading in products or services using
computer networks, such as the Internet. Electronic commerce draws on
technologies such as mobile commerce, electronic funds transfer, supply chain
management, Internet marketing, online transaction processing, electronic data
interchange (EDI), inventory management systems, and automated data collection
systems. Modern electronic commerce typically uses the World Wide Web for at
least one part of the transaction's life cycle, although it may also use other
technologies such as e-mail.
These
business transactions occur either business-to-business, business-to-consumer,
consumer-to-consumer or consumer-to-business. The terms e-commerce and
e-business are often used interchangeably. The term e-tail is also sometimes
used in suggestion to transactional processes in the region of online retail.
E-commerce
is conducted using a variety of applications, such as email, fax,
online catalogs and shopping carts, Electronic Data
Interchange(EDI), File Transfer
Protocol, and Web services.
To
ensure the security, privacy and effectiveness of e-commerce, businesses should
validate business transactions, control access to resources such as web pages
for registered or selected users, encrypt communications and apply safekeeping
technologies such as the Secure Sockets Layer.
There are 6
basic types of e-commerce:
Ø Business-to-Business
(B2B)
Ø Business-to-Consumer
(B2C)
Ø Consumer-to-Consumer
(C2C)
Ø Consumer-to-Business
(C2B).
Ø Business-to-Administration
(B2A)
Ø Consumer-to-Administration
(C2A)
1. Business-to-Business (B2B)
Business-to-Business
(B2B) e-commerce encompasses all electronic transactions of goods or services
conducted between companies. Producers and traditional commerce wholesalers usually
operate with this type of electronic commerce.
2. Business-to-Consumer (B2C)
The
Business-to-Consumer type of e-commerce is well-known by the establishment of
electronic business relationships between businesses and final consumers. It
corresponds to the retail section of e-commerce, where traditional retail trade
usually operates.
These
types of relationships can be easier and more vibrant, but also more infrequent
or discontinued. This type of commerce has developed greatly, due to the advent
of the web, and there are already many virtual stores and malls on the
Internet, which sell all kinds of consumer goods, such as computers, software,
food, books, shoes, cars, financial products, digital publications, etc.
When
compared to buying retail in traditional commerce, the consumer usually has
more information available in terms of informative content and there is also a
widespread idea that you’ll be buying cheaper, without jeopardizing an equally
personalized customer service, as well as ensuring quick processing and
delivery of your order.
3. Consumer-to-Consumer (C2C)
Consumer-to-Consumer
(C2C) type e-commerce encompasses all electronic transactions of goods or
services conducted between consumers. Generally, these transactions are
conducted through a third party, which provides the online platform where the
transactions are actually carried out.
4. Consumer-to-Business (C2B)
In Consumer-to-Business (C2B) there is
a complete setback of the traditional sense of exchanging goods. This type of
e-commerce is very common in multitude sourcing based projects. A large number
of individuals make their services or products available for purchase for
companies seeking specifically these types of services or products.
Examples of such practices are the sites where designers
present several proposals for a company logo and where only one of them is
selected and effectively purchased. Another platform that is very common in
this type of commerce are the markets that sell royalty-free photographs,
images, media and design elements, such as I stockpile photo.
5. Business-to-Administration (B2A)
This
part of e-commerce encompasses all transactions conducted online between
companies and public administration. This is an area that involves a large
amount and a variety of services, particularly in areas such as fiscal, social
security, employment, legal documents and registers, etc. These types of
services have increased considerably in recent years with investments made in
e-government.
6. Consumer-to-Administration (C2A)
The
Consumer-to-Administration model encompasses all electronic transactions
conducted between individuals and public administration.
Types
of e Commerce Payment System:
An e-commerce payment
system allows you to pay for on-line transactions using electronic payment.
According to The Office of Fair Trading, about 30 percent of Internet users do
not shop on-line because of a professed increased risk of fraud. Though
e-commerce fraud can happen, the introduction of such added security measures
as a card verification number on credit card transactions helps to reduce the
occurrence of fraud.
Credit
Cards
The
most common form of payment for e-commerce transactions is through credit
cards. To use this system, shoppers simply enter their credit card number and
date of expiry in the appropriate area on a web page. Increased security
measures, such as the use of a card verification number (CVN), located on the
back of the credit card, have been added to on-line credit card payment
systems. The CVN system detects fraud by comparing the CVN with the
cardholder's information as supplied by their bank.
Digital
Wallets
·
A digital wallet, or e-wallet, is another type
of e-commerce payment system. Much like a physical wallet, a digital wallet can
store your personal information and payment. However, digital wallets are
stored within your PC. Once the software is installed on your digital wallet,
enter your personal information, such as your name and billing address, then
connect it to your banking information so you can use it to withdraw funds from
your account(s) when making on-line purchases. When you're at the check-out
page of an e-commerce site, the digital wallet can automatically enter your
personal and banking information into the appropriate areas.
E-cash
·
An e-commerce system that uses e-cash refers to
a system in which money is only exchanged electronically. To use e-cash, link
your personal bank account to other payee accounts or set up an e-cash account
using a centralized system, such as PayPal, and link it to your personal bank
account. To fund your e-cash account, you can debit from your personal bank
account or credit card. To make payments using your e-cash account, you can
make a deposit to the other person's e-cash account if you have their banking
information, or request a transfer to their bank account.
Mobile
Payment
·
The newest e-commerce payment system is mobile
payment, wherein a consumer uses his cell phone to make purchases. Instead of
using cash or credit cards to buy something, the user simply sends a payment
request via text message. If the vendor has the mobile billing capability, the
consumer's mobile account or credit card is charged for the purchase. To set up
a mobile payment system, download a software package from your cell phone
company's website, then link your credit card or mobile billing information to
that software.
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