E - COMMERCE AND E - BANKING…..............!
E - COMMERCE AND E - BANKING…..............!
E - COMMERCE AND E - BANKING
Electronic commerce
• The activities related to the sale and purchase of goods and services are called commerce, and if these business activities are carried out through the Internet, then that business is called electronic commerce.
Electronic commerce
• If the Internet is used for business activities and for the activities of ancillary services such as communication, transportation, banking, warehousing, insurance, etc. that help in business, then it is called electronic commerce.
Electronic commerce
• If all business activities such as marketing, distribution, financial activities, administrative activities are carried out using the Internet, then it can be called electronic commerce.
E-commerce is only one part of electronic commerce.
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E COMMERCE
E-commerce is a form of modern business. It is a new technology used by businesses to reduce costs and improve the quality of goods and services for sellers and customers while increasing the speed of delivery.
Examples of E-commerce
An individual purchases a book over the Internet.
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A government employee booking a hotel room online.
A business purchasing office supplies online.
An individual withdrawing funds from an automated teller machine (ATM).
Accepting credit cards for e-commerce sales.
Obtaining information through a company's website.
Selling to consumers on a pay-per-download basis through a website.
E-Business Models
An e-business model is the approach a company takes to become a profitable business on the Internet. There are many ways to classify e-business models. They can be classified based on the relationship of transaction parties and the relationship of transaction type as follows:
1. Business to Business (B2B)
2. Business to Consumer (B2C)
3. Consumer to Consumer (C2C)
4. Consumer to Business (C2B)
5. Business to Government (B2G)
01. Business to Business (B2B)
A type of business transaction between businesses, such as a manufacturer and a wholesaler or a wholesaler and a retailer, is called business-to-business (B2B).
For example, a wholesaler orders from a company's website, receives the goods, and then sells the final product to the end customer who comes to buy the goods at the wholesaler's retail outlet. And B2B refers to the fact that the seller and the buyer are business entities.
B2B encompasses a large number of applications where businesses build relationships with their distributors, resellers, suppliers, etc.
Examples:- Electronic devices, motor vehicles,
Chemicals, paper, office supplies, food, and agricultural products.
2. Business to Consumer (B2C)
This is a model of business and consumer on the Internet. B2C refers to selling directly to the end consumer or to an individual rather than a company. The B2C business model refers to selling its product directly to the customer via the Internet.
Examples of the B2C model include:
Electronic shopping, information search (railway timetables), airline tickets, books, computers, videos, music CDs, music, health and beauty products, jewelry, etc.
3. Consumer to Consumer (C2C)
Sometimes called consumer to consumer, e-commerce involves electronically facilitated transactions between individuals, often through a third party. A common example is online auctions such as eBay, where an individual can list an item for sale and other people can bid to buy it. Auction sites typically use them to charge sellers a commission, and they act as intermediaries to match buyers with sellers. They also have little control over the quality of the products offered, although they try to prevent the sale of illegal goods such as pirated CDs or DVDs.
A website that follows the C2C business model also enables consumers to sell their property, cars, motorcycles, etc., or rent a room by posting their information on the website. The website may or may not charge a fee for its services. Another consumer may buy the item from the first customer by viewing the listing/advertisement on the website. Major online retailers such as Amazon allow individuals to sell items through their sites
4. Consumer-to-business (C2B)
C2B, sometimes called consumer-to-business, is a recent e-commerce model. In this model, individual customers come to sell products and services to companies that are ready to buy them. This business model is the opposite of the traditional B2C model.
For example, for product or service innovations. Companies can facilitate operations by setting up a C2B model. For example, they can set up discussion forums on their websites or establish their web pages on social networks.
5. Business to Government (B2G)
B2G e-commerce refers to the need for businesses to sell goods or services to governments or government agencies.
Such activities include providing goods and services to the military, police forces, hospitals, and schools.
In addition, businesses often compete online for contracts to provide services to the public on behalf of the government. Such services include tax collection and the provision of public services.
Online can also refer to the exchange of information, services, and products between businesses and government agencies.
Unique Features of E-Commerce
Electronic commerce or e-commerce refers to the buying and selling of goods or services through electronic means such as the Internet or mobile phone applications. It refers to the creation, marketing, servicing and payment of services and goods. Moreover, businesses, governments and the public can participate in e-commerce transactions.
The following discussion Unique features of E-commerce The following can be mentioned as unique features of business technology:
1. Ubiquity:
E-Commerce is available anywhere, everywhere and at any time. It is available in almost any place, such as the Internet and Wi-Fi, hotspots, airports, coffee cafés, banks.
Consumers can connect to the Internet at any time, including in their homes, offices, on their video game systems, and on mobile phone devices.
Electronic commerce is a ubiquitous technology, which is available everywhere. Furthermore, people with data-enabled cell phones can access the Internet without a Wi-Fi connection.
2. Global reach
The potential market size is equal to the size of the world's population. Electronic commerce technology transcends traditional cultural and national boundaries and enables global reach for customers.
An e-commerce website has the ability to translate multilingual websites, allowing users to reach, purchase, and conduct business with audiences around the world.
3. Richness
Users can access and use text messages and visual and audio elements to send and receive information.
An individual can find information richness on a company's blog. A post that includes a product and a hyperlink to a video allows them to view or purchase the product and send information about the post via text message or email.
4. Interactivity:
E-commerce technologies allow for two-way communication between the merchant and the consumer. As a result, E-commerce technologies can be customized to suit each individual’s experience.
For example, when shopping online, a person can view different angles of certain items, add products to a virtual shopping cart, and submit the order by entering their payment information at checkout.
5. Social technology:
E-commerce technology combines social media networking applications to provide a rich source of content sharing technology and E-Marking systems. You can easily share your content or data with just one click.
Differences between success in traditional commerce and e-commerce
E-commerce Activities
Here are five activities you should do every day in your e-commerce business.
Search Engine Optimization (SEO)
Search Engine Optimization (SEO) is the art and science of ranking pages higher in Google search engines. Since search is one of the main ways people find content online, high rankings in search engines can lead to increased traffic to a website.
In short, search engine optimization (SEO) is the process of optimizing your website to increase its visibility on Google, Microsoft, Bing, and other search engines when users search for: the products you sell, the services you offer, the topics you have deep expertise and/or experience in, helping to attract website visitors who will become customers, clients, or repeat visitors.
Selecting New Products
First, decide what customers need. Sell what customers want to buy. Not what you want to sell. This is a common mistake, especially when merchants set a high price for a particular product, and if no one wants to buy it, no matter what price you set, no one will buy it. So,
Find out what customers want.
Maximize your space by knowing what you value the products you sell.
Selling new products
When selling products online, it is very important to have high-quality images of the products.
Understand the psychology of your target customer,
Use design theory to create visuals.
Guide customers through your stores.
Promote the latest releases in your newsletters and display them on your homepage.
It is also a good idea to conduct marketing activities for customers who have purchased related products in the past.
Customer Service
Delight your customers.
Delivering customer orders on time.
Ensuring the accuracy of customer orders.
Notifying the customer immediately if a package is not delivered to the customer or if it is damaged or missing parts.
Do not try to save money on every order. On the contrary, in order to maintain customer loyalty, you will have to face losses to make a customer happy. Therefore, this action can be very valuable for many upcoming orders.
E-commerce opportunities in Sri Lanka
The effects of online commerce in Sri Lanka after Covid-19 have been felt. In recent times, the growth of the e-commerce sector in Sri Lanka has been immense, as more and more businesses have started to discover the benefits of using this platform.
Understanding the mindset of customers and meeting their needs will provide ample opportunities for businesses involved in the e-commerce sector in the future.
Further reasons that guarantee the future opportunity of the e-commerce sector in Sri Lanka are listed below.
Increasing Domain Registrations
Increasing Internet Users (66% of Internet Users -2023)
Easy Access to the Internet
Awareness of the Internet in rural areas
Increasing number of Internet Cafés (world)
Growing demand for e-commerce can be mentioned.
Benefits and Limitations of E-Commerce
Benefits of E-Commerce
E-commerce can increase sales and reduce costs.
Well-done advertising on the Internet can get even a small company's advertising message to customers in every country in the world.
A company can use e-commerce to reach narrow market segments that are geographically dispersed.
The Internet is very effective in creating virtual communities that can become a great target market for specific types of products or services.
With the advent of e-commerce, businesses can now reach people all over the world.
The cost of creating, processing, distributing, and retrieving paper-based information has decreased. It is cheaper to send a fax or email over the Internet than to store and dial directly.
The Internet has made it possible to digitize software and music/video products in electronic form. can be downloaded directly to customers via email or sent via email.
E - COMMERCE AND E - BANKING…..............!
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