Research Paper – Topic Electronic Commerce.pdf

Running head: Electronic Commerce 1

Research Paper – Topic Electronic Commerce

Sheu Mojeed

BUSI620

Liberty University

Electronic Commerce 2

Overview

1. Origin of Electronic Commerce

1.1. Support of Electronic Commerce

1.2. Legal Environment of Electronic Commerce

1.3. Business to Business Electronic Commerce

Electronic Commerce 3

Dominick Salvatore (2015) described Electronic commerce as the sales, advertising,

production and distributing of goods and services using the model technology. Most of the

ecommerce transaction occurs between business to business or business to consumer through the

Ecommerce is an acronym for electronic commerce which as enhances the ways we

conduct business. Ecommerce also known as electronic revolution serves as third part between

manufacture and consumer and measures the method and manner that people use to buying and

selling goods and services over the Internet.

The main origin of ecommerce can be trace back to the mid 1900 during that period little

or viewer organizations has access to an expensive electronic database that hider the interchange

of date and sharing information. Most organizations have little or no opportunity of information

sharing over the internet. The effect of ecommerce gave birth to the new way of business

communications and overall global reach (History of E-Commerce). The exiting of electronic

commerce came with advance in communication technology in the early 1980s and the global

Electronic Commerce 4

phone lines and national broadcast mediums was used (Fletcher, 2002). This technology ideal

was developed to build communication network between organization and begins business to

business electronic commerce (B2B) which became very popular among organization and later

According to Kumar and Zhao (2002) the exciting of model internet broadband using

Common Gateway Interface (CGI) including World Wide Web have supported and changed the

landscape of ecommerce and technology compare to years back (Kumar & Zhao, 2002). The

initial stage of ecommerce deals with workflow of Electronic data interchange (EDI) that limited

ecommerce transaction to organizations. Support of ecommerce has contributed significantly to

organization structure and productivity. These have make supply chain very easy and conducive

client and consumers can visit any organization server and conduct a business survey and

transactions (Kumar & Zhao, 2002).

Legal Environment of Electronic Commerce

According to Frendo Michael (1999) as a result of uncertainties on the internet and the

fair of identity thrift government should setup a global law and regulation to regulate and ensure

fairness and justice to the foundations of a healthy and vibrant framework for ecommerce. This

regulation will safeguard organizations and consumers by monitoring transactions activities

including ecommerce rules of law, ecommerce jurisdiction, ecommerce tax and levy that apply to

organizations and consumers. However, different nation tend to have developed an ecommerce

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law which operates in a slow pace and the constant change and improvement of intranet has

make it very uncertain for legal environment to keep adequate record (Frendo, 1999). “The

fundamental differences here, indeed, are principally (a) technological and (b) spatial. The

global policy or regulation that monitors or regulates ecommerce activities in term of internet

Lucking-Reiley and Spulber (2001) B2B ecommerce is categories as a common

transaction among manufacturing industries; this is an interpersonal relationship between two or

more organizations. These relationships include purchases of services, technology advancement

and capital equipment this allowed organizations to build and maintain inter-company trades.

B2B transactions originated as businesses looking for buyer for its goods and services and seller

looking for supplier for a particular product both parties started search for solutions to get there

goods to the final consumer. The B2B ecommerce innovation was then set to reduce stress and

the cost of supply chain for both organizations parties (Lucking-Railey and Spulber, 2001).

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Business to Business ecommerce is now basic activity among business by sharing

documents and records such as electronics invoice or contracts appraisal to outline future

ventures. The author further stated that business to business ecommerce is cost efficient for

products and services. In other to maintain a proper measure of ecommerce network developed

Business to consumer ecommerce introduces a great opportunities for companies and

consumers to engage in buying and selling production and services without face to face contact

like it was decade ago. Base on Kim,Steinfield and Lai (2007) studies shows that there is a

conflicting evidence between businesses and consumer on web role assurance for ecommerce

and website security features that include information quality about products and services,

security practices and privacy that gives consumer assurance that their information is secure and

will not be use for unauthorized transactions (Kim,Steinfield and Lai, 2007). As a result of the

conflicting evidence businesses introduce security seal which include BBB online, Veri sign

Secure, online Privacy Alliance, Web Trust and Trust Site Privacy Statement and others this seals

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gives customers assurance that there information’s is safe and secure. This step has make

ecommerce more efficient and online transactions have increase drastically since the introduction

of the seals (Kim, Steinfield and Lai, 2007). Ecommerce trading and trust is one of the essential

with face to face interpersonal interaction with real people. Customer service is not necessary

interpersonal interaction relationship, the model technology and ecommerce environment

customers and providers. For example, customers may order goods and services using their own

reprogrammed order parameters via e-mail, with a trigger to begin interacting in real-time if

certain code words occur in the provider’s response, such as “out of stock.” Providers may “see”

customers’ electronic footsteps through a Web site and respond in real time when those footsteps

hesitate or linger” (Johnson, 2001). Ecommerce have save organizations and consumers in mean

area which include; communication cost between businesses and customer, overhead cost from

self-services, overhead cost from delivery system and increase in sales of products and services.

Electronic Commerce 8

Consumer to Consumer Electronic Commerce

Consumer to consumer ecommerce is described as vulnerable trust between consumers,

these type of ecommerce include the use of online actions, web forums, chart rooms, free online

trade and third part consumer listings like Amazon and eBay. According to Jones and Leonard

1. Natural Propensity to Trust (NPT)

website quality (PWSQ) this aspect of consumer to consumer ecommerce deals with the

perception of the website host or the ground of trade, the quality of the host website might be a

competitive advantage. Other trust of buyer/seller (OTBS) this is a trust that is build overtime

consumers believed and build their trust on individual base on first impression and continue on

that pattern until the trust is bridged. Third Part Recognition (TPR) today’s model world of

consumer to consumer ecommerce take place on Amazon, eBay and other these bodies involved

in a transaction but they not one of the principals. Most of the third parties sometimes have a

lesser interest in the consumer to consumer transaction than the main principals (Jones and

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Leonard, 2008). In most cases consumer to consumer trust each other in terms of ecommerce

than that of business to consumer electronic commerce. Consumer to Consumer ecommerce is

base on trust understanding and believe for one and other which is concerns and influence with

The existence of electronic commerce has changed the ways and manners we conduct

business and carryout transactions. Globalization of ecommerce is widely embraced by both

organizations and consumers; our marketplace is more efficient, reliable and more accountable

than the way it use to be before the exiting of electronic commerce. The world is coming to be

one marketplace by building a strong network opportunity with the use of electronic commerce.

Electronic commerce is the only online activities drive and crease efficient economy around the

world, is free market systems who has free entry and exit everyone at the marketplace have equal

right to the product and services with electronic commerce. In this model world, the economy

depends on business and business depends on consumer to drive the goods and services and

move the economy forward. Electronic commerce enhances and promotes business to business

transactions include consumer to consumer relations for greater services and organizations

productivity.

References