IT 210 Module 1 notes on chapter 7 E-Business and E-Commerce
The practice of purchasing, selling, transferring, or exchanging goods, services, or information
through computer networks, such as the Internet, is known as electronic commerce (EC or
e-commerce). E-commerce is revolutionizing every aspect of a company, from advertising to
bill-paying, as well as its core functions. Its effects are so widespread that they are felt by every
contemporary institution. Internet commerce has a huge impact on companies in many ways.
Organizations are impacted by electronic commerce in a variety of important ways. First off, it
broadens an organization's reach, which is the whole pool of possible clients to whom it may
advertise its goods. In reality, e-commerce offers businesses unmatched chances to grow globally
at a low cost, capture more market share, and save expenses. One significant effect of electronic
commerce has been the removal of many of the obstacles that formerly hindered aspiring
entrepreneurs. You have incredible potential to start your own business thanks to e-commerce.
By the creation of new online businesses, innovative business strategies, and the diversity of
EC-related goods and services, electronic commerce is also fundamentally altering the structure
of competition. The term "e-business" refers to a slightly larger idea. E-business includes
customer service, working with business partners, and carrying out internal electronic
transactions, in addition to the purchasing and selling of products and services. The amount that
physical to digital commerce has been converted is known as the degree of digitization. This idea
may be applied to both the deliverer or middleman and the commodity or service being offered.
(The product may be physical or digital, and similarly, the delivery agent may be physical or
digital.)
Both dimensions of conventional commerce are physical. Brick-and-mortar businesses are ones
that only have physical locations. Pure EC, in comparison, has just digital dimensions.
Businesses that are only involved in EC are referred to as virtual (or pure-play) organizations.
Any other combinations that blend physical and digital dimensions are referred to as partial EC
(but not pure EC). Although click-and-mortar businesses engage in certain e-commerce
operations, their principal activity is conducted in real life. A partial EC scenario might be
buying a shirt from Walmart Online or a book from Amazon.com, where the product is
purchased and paid for digitally but is physically delivered by a third party, such as FedEx, UPS,
or the U.S. Postal Service. In contrast, purchasing a software package from Buy.com or an
e-book from Amazon.com represents pure EC as all aspects of the transaction—including
delivery, payment, and transfer—are carried out digitally.
Electronic commerce between businesses and consumers (B2C): In B2C, businesses act as the
sellers and consumers as the purchasers. Electronic commerce between businesses (B2B): In
B2B transactions, both the vendors and the purchasers are commercial entities. The vast bulk of
EC volume is B2B. Electronic commerce between consumers (C2C): In C2C, also known as
customer-to-customer, one person offers goods or services to another person. Classifieds and
classified advertisements are the two main C2C tactics used online.
Business-to-employee (B2E): With B2E, a company utilizes EC internally to give its workers
access to information and services. As an illustration, businesses enable employees to manage
their benefits and enroll in courses online. Employee discounts are also available. Lastly, many
businesses offer computerized corporate shops where their workers may purchase the company's
goods, typically at a discount. oE-government: E-government, also known as
government-to-citizen (G2C) EC, is the delivery of information and governmental services to
people, as well as to business partners and suppliers, using Internet technology in general and
e-commerce in particular (called government-to-business, or G2B EC). Similar to B2B EC, G2B
EC frequently has government procurement requirements on top of it.
Government becomes more effective and efficient thanks to e-government, particularly when it
comes to providing public services. Electronic benefit transfers, in which governments send
benefits like Social Security and pension payments directly to recipients' bank accounts, are an
illustration of G2C electronic commerce. Mobile commerce (m-commerce) is the word used to
describe e-commerce that is exclusively carried out through wireless networks. Using a cell
phone to purchase online is one example. The delivery of electronic commerce activities and
transactions using social computing is referred to as social commerce. Contextual retail (also
known as chat commerce) is the use of messaging and chat applications in electronic commerce
to provide a daily selection of a meal, good, or service that is frequently personalized. The way a
firm makes money to survive is through its business model. Significant E-Commerce
Mechanisms There are several ways for businesses and customers to purchase and sell over the
Internet. These are the mechanisms that are most often used: an electronic library Electronic
bidding state enterprises soE-mall state owned enterprises
