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A survey on e-commerce

economie












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Student: Chirtes Emilian-Claudiu

"Lucian Blaga" University

A survey on e-commerce




††††††††††† No matter what you sell and in what part of the country you live, anyone who has used the Internet even once probably has heard or read the term "electronic commerce". The term is self-explanatory; the numbers that usually accompany reports and news stories about the phenomenon show that it is a trend that is unstoppable. Whatever your experience with electronic commerce, there is probably one thing that anyone considering the Internet as a business venue should know: whether the analyses you read are filled with conservative or liberal estimates, the amount of money that the Internet can yield for the right entrepreneur is limitless.

††††††††††† The First E-Commerce was in 1 323n1320d 886, when a telegraph operator was able to obtain a shipment of watches that was refused by the local jeweller. Using the telegraph, he sold all the watches to fellow operators and railroad employees. Within a few months, he made enough money to quit his job and start his own store. The young man's name was Richard Sears, and his company later became Sears, Roebuck.

††††††††††† Definition of e-commerce

††††††††††† The term e-commerce is really a "catch-all" phrase that encompasses many concepts. According to Dictionary.COM, the term commerce is defined as follows: "The buying and selling of goods, especially on a large scale, as between cities or nations". This definition is straight forward and easy to understand. From here, we add the "e" for "electronic", and we derive the definition: "buying and selling of goods electronically". This typically means that orders and payments pass electronically.

††††††††††† From the technological standpoint electronic-commerce can be defined as doing business online, typically via the Web. It is also called "e-business," "e-tailing" and "I-commerce." Although in most cases e-commerce and e-business are synonymous, e-commerce implies that goods and services can be purchased online, whereas e-business might be used as more of an umbrella term for a total presence on the Web, which would naturally include the e-commerce (shopping) component. E-commerce may also refer to electronic data interchange (EDI), in which one company's computer queries and transmits purchase orders to another company's computer.

††††††††††† Categories of e-commerce

        B2B (Business-to-Business) e-Commerce really refers to supply chain technology, which is by far the largest and most successful e-commerce technology employed today.

        B2C (Business to Consumer) e-Commerce refers to the selling and buying of goods and services via the web from web retailers to web customers.

        B2E (Business to Employee) e-Commerce generally refers to the requisitioning of supplies by employees for use in their jobs, but this really has grown to encompass much more.

        C2C (Consumer to Consumer) e-Commerce has also emerged that allows unknown, un-trusted parties to sell goods and services to one-another.

        B2M (Business to Machines) e-Commerce is a fast emerging area within e-commerce. The general idea is that companies can link to remote machines via the internet.

        B2A ( Business to Administration) e-Commerce, in which the business community interacts electronically with public sector organisations.

††††††††††† Advantages and Benefits

††††††††††† Advantages are the general way that e-commerce features can be used to help or bring potential benefits to your business; for example "Using a modem will enable you to use your computer to communicate with a multitude of customers quicker, faster and cheaper".

††††††††††† Hopefully, during your on-line study, ideas will have come to mind as to how some of these advantages can become benefits by meeting the explicit (real, must-have) needs of your business. So the advantages of using a modem would become a benefit if, say, your customers were demanding quotations, or designs, to be sent by eMail for approval.

††††††††††† However, as e-commerce changes the mechanics of business across all operational areas, the explicit needs of the businesses are likely to be hidden underneath traditional working practices and processes, which can not leverage the full power of e-commerce methods. tough questions need to be asked about the business. Questions like "How will my business continue to create value for the customer?" and "What is the best way of managing the changing nature of relationships and information flows with customers and suppliers?"
††††††††††† Finding the answers to these questions will define the strategy for your††††††††† e-commerce plan and secure the future of your business in an increasingly competitive and changing market place.

Advantages of e-commerce for the companies




Because the Internet provides a flexible and dynamic marketplace to exchange goods, services, and information with consumers and business partners, it is becoming increasingly important for businesses to use the Internet to reach new markets. One main business advantage of being online is the ability to market products both locally and globally. The following list offers some reasons for companies to build commerce-enabled Websites:

  Low entry costs: A company can establish itself on the Internet, and open for business, with a relatively small investment. Thousands of companies operate simple, inexpensive sites that are successful in their markets. Large corporations have a greater interest in the Internet and e-commerce because they have more resources and easier access to the latest technology. Now, the playing fields are leveled for small businesses through access to a global marketplace at a substantially reduced cost.

  Access to the global markets: With a traditional business, the target market may be the local community or, with a higher advertising budget, it may extend to neighbouring communities. The web extends the reach of even the smallest businesses by allowing them to market products globally.

  Reduced transaction costs: Dealing with customers over the Web, whether to process orders or to attend to customer support, is more cost effective than traditional marketing methods. For example, Dell Computer Corporation estimates that it saves eight dollars each time a customer checks the status of an order at the Dell Website, instead of calling the company.

  Secure market share: Getting a business online protects its current offline market share from being eroded by an online entrepreneur. If a business enters the e-commerce market too late, competitors who have already established a Web presence may make a successful market entry more difficult.

Benefits to consumers that use e-commerce (e-Business): 

††††††††††† Research has shown that customers and consumers shop on-line because of these five main reasons (ranked in order of importance):

- Convenience and Ease of Use. Consumers can literally shop in their underwear at 3 am, from any location, using an Internet connection. An important advantage is the quick delivery (for online products) especially for people who want to use the product immediately, as opposed to waiting longer - if they have to wait long, they may pick a competitor's product;

- Variety and Larger Selections. Consumers can compare and contrast more products more quickly.

- Cost Savings. Some customers cite bargains even after paying additional shipping charges.

- Anonymity. Customers can buy questionable or embarrassing products while concealing their true identity.

- No Sales Pressure. Customers who dislike salesmen can avoid the experience altogether. Internet shopping makes it easy to go offline to think about a purchase.

††††††††††† Research has also found that customers and consumers look for these three things when shopping on line:

-Detailed information about the product itself: the consumer can receive more information about the product, make a more informed decision greater information leads to more confidence to make a purchase decision more info also leads to enhanced customer satisfaction because the customers has a better idea how to use the product;

-         Price comparisons: when you have more choices you can decide on a product with better features at a more competitive price and sometimes products are less expensive online;

-         Detailed information about the vendor.

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