INTRODUCTION TO E- COMMERCE

HOW E - COMMERCE WORKS

E-commerce is buying and selling goods and services over the Internet. E commerce is part of e-business as specified in Chapter 1. E-business is a structure that includes not only those transactions that center on buying and selling goods and services to generate revenue, but also those transactions that support revenue generation. These activities include generating demand for goods and services, offering sales support and customer service, or facilitating communications between business partners.

HOW IS E- COMMERCE VALUALE

By the help of the flexibility offered by computer networks and the availability of the Internet , E-commerce develops on traditional commerce . E-commerce creates new opportunities for performing profitable activities online. It promotes easier cooperation between different groups: businesses sharing information to improve customer relations; companies working together to design and build new products/services; or multinational company sharing information for a major marketing campaign.

HOW TO GET STARTED WITH SMALL BUSINESS

The followings are the business uses of the Internet. These services and capabilities are a core part of a successful e-commerce program. They are either parts of a value chain or are included as supporting activities:

Buying and selling products and services
Providing customer service
Communicating within organizations
Collaborating with others
Providing seller support
Publishing and distributing information
Providing software update and patches

Airline and travel tickets, banking services, books, clothing, computer hardware, software, and other electronics, flowers and gifts are some popular products and services that can be purchased online. Several successful e-businesses have established their business models around selling these products and services. Ecommerce has the potential to generate revenue and reduce costs for businesses and entities. Marketing, retailers, banks, insurance, government, training, online publishing, travel industries are some of the main recipients of e-commerce. For instance, banks use the Web for diverse business practices and customer service. lists companies using e-commerce, stressing the products and services

BUILDING A SUCCESSFUL E - COMMERCE

play a major role, in e-commerce. Although the goals and objectives of both ecommerce and traditional commerce are the same—selling products and services to generate profits—they do it quite differently. Traditional commerce presents product information by using magazines, flyers. On the other hand, ecommerce presents by using web sites and online catalogs. Traditional commerce communicates by regular mail, phone yet e-commerce by e-mail. Traditional commerce checks product availability by phone, fax and letter. However, e-commerce checks by e-mail, web sites, and internal networks. Traditional commerce generates orders and invoices by printed forms but ecommerce by e-mail, and web sites. Traditional commerce gets product acknowledgments by phone and fax. On the other hand, e-commerce gets by email, web sites, and EDI. It is important to notice that currently many companies operate with a mix of traditional and e-commerce. Just about all medium and large organizations have some kind of e-commerce presence. The followings are some examples, Toys-R-Us, Wal-Mart Stores, Gold PC, and Vatan Computer. E-Commerce and Value Chain Typical business organizations (or parts within a business organization) design, produce , market , deliver , and support its product(s)/service(s). Each of these activities adds cost and value to the product/service that is eventually distributed to the customer. The value-chain consists of a series of activities designed to satisfy a business need by adding value (or cost) in each phase of the process. In addition to these primary activities that result in a final product/service, supporting activities in this process also should be included

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