Explain what is meant by the term ‘E-commerce’.
It is the conducting of business communication and transactions over
networks and through computers. As most restrictively defined,
electronic commerce is the buying and selling of goods and services,
and the transfer of funds, through digital communications. However EC
also includes all inter-company and intra-company functions (such as
marketing, finance, manufacturing, selling, and negotiation) that
enable commerce and use electronic mail, EDI, file transfer, fax,
video conferencing, workflow, or interaction with a remote computer.
Electronic commerce also includes buying and selling over the Web,
electronic funds transfer, smart cards, digital cash (e.g. Mondex),
and all other ways of doing business over digital networks.
Assess the advantages and disadvantages of E- Commerce information
Both the consumer and the supplier of a product can benefit from when
using Electronic Commerce many obvious advantages. The consumer can
browse through a whole shopping mall from the comfort of his or her
own home, and products can be purchased and delivered right to their
home. E-Commerce removes the hassle of crowds and line-ups from the
The supplier has the advantage of keeping their store open twenty four
hours a day, seven days a week - without having to hire the staff to
maintain it which saves a lot of money which means they can focus on
better prices for their products and greater profits. The Internet
opens up the customer base widely, allowing many customers the
opportunity to view their product.
First, businesses can communicate with customers easily. The business
can receive and send e-mails from/to customers. This allows customers
to quickly get in contact with the business. This can also be done to
suppliers is well. This means that the business will forge closer
relationships with customers and suppliers.
In addition, e-commerce allows customers to look at the businesses
products from their home. This means that customers will be able to
look or buy the product at any time rather than only when they go
shopping. Also with the business being on the internet it will mean
that that the business will be able to aim their will be easy to
access and that more people can see their product.
Moreover, it is said that trading on the Internet promises greater
market penetration, increased customer response, more flexibility and
Besides, E-commerce is also considerably fast and means that the
business will be more efficient.
Furthermore, saves costs, as the business does not have the costs
associated with running the business. They do not have to pay for
such things as lighting, electricity, and fittings.
With ecommerce the user has the ability to search for their product
without having to look around shops in a time consuming manner. In
fact the information is at their finger tips...