Electronic Commerce, e-commerce, Impact of the Ecommerce on Markets and Retailers, Product Functionality the E-Commerce System

Electronic Commerce or e-commerce

Electronic Commerce or e-commerce

Electronic Commerce, commonly known as e-commerce, is a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks.

Electronic Commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices social media, and telephones as well. 

Electronic Commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business.

E-commerce can be divided into:

  • E-tailing or "virtual Storefronts" on Websites with Online Catalogs, sometimes gathered into a "virtual mall"
  • The Gathering and use of demographic data through Web contacts and social media
  • Electronic Data Interchange (EDI), the business-to-business exchange of data
  • E-mail and Fax and their use as media for reaching prospective and established customers (for example, with newsletters)
  • Business-to-Business buying and selling

The Security of Business Transactions

  • Business Applications
  • Document automation in supply chain and logistics
  • Domestic and international Payment systems
  • Enterprise content management
  • Group buying
  • Automated online assistants
  • Instant messaging
  • Newsgroups
  • Online shopping and order tracking
  • Online banking
  • Online office suites
  • Shopping cart software
  • Teleconferencing
  • Electronic tickets
  • Social-Networking

Impact of the Ecommerce on Markets and Retailers

Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers' ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshops and travel agencies. Generally, larger firms are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend.

Features of an E-Commerce System Solution

An E-Commerce System Solution, allows you to be as productive online as you wish to be, with an easy check-out for your consumers.

There are many features of an E-Commerce solution, all leading to the best and most productive system possible. Customer convenience is a main focal point in the best eCommerce solution.

Administration / Backend Functionality

  • Supports unlimited Products and Categories
  • Products-to-categories Structure the E-Commerce System

Categories-to-Categories Structure of the E-Commerce System

  • • Add/Edit/Remove categories, products, manufacturers, customers, and reviews
    • Support for physical (shippable) and virtual (downloadable) products
    • Administration area secured with a username and password defined during
    • Contact customers directly via email or newsletters
    • Easily backup and restore the database
    • Print invoices and packaging lists from the order screen
    • Statistics for products and customers
    • Multilingual support
    • Multicurrency support
    • Automatically update currency exchange rates
    • Select
    • what to display, and in what order, in the product listing page
    • Support for static and dynamic banners with full statistics

Customer / Frontend Functionality the E-Commerce System 

  • • All orders stored in the database for fast and efficient retrieval
    • Customers can view their order history and order statuses  
    • Customers can maintain their accounts
    • Addressbook for multiple shipping and billing addresses
    • Temporary shopping cart for guests and permanent shopping cart for
    • Fast and friendly quick search and advanced search features
    • Product reviews for an interactive shopping experience
    • Forseen checkout procedure
    • Secure transactions with SSL
    • Number of products in each category can be shown or hidden
    • Global and per-category bestseller lists
    • Display what other customers have ordered with the current product shown
    • Breadcrumb trail for easy site navigation 

Product Functionality the E-Commerce System 

  • • Dynamic product attributes relationship
    • HTML based product descriptions
    • Automated display of specials
    • Control if out of stock products can still be shown and are available for purchase
    • Customers can subscribe to products to receive related emails/newsletters 

Payment Functionality of the E-Commerce System

  • • Accept numerous offline payment processing (cheque, money orders, offline credit care processing)
    • Accept numerous online payment processing (PayPal, 2CheckOut, Authorize.net, iPayment)
    • Disable certain payment services based on a zone basis 

Shipping Functionality of the E-Commerce System

  • • Weight, price, and destination based shipping modules
    • Real-time quotes available (UPS, USPS, FedEx, and so on)
    • Free shipping based on amount and destination
    • Disable certain shipping services based on a zone basis 

Tax Functionality of the E-Commerce System 

  • • Flexible tax implementation on a state and country basis
    • Set different tax rates for different products
    • Charge tax on shipping on a per shipping service basis

Some common applications related to electronic commerce are:

  • Document automation in supply chain and logistics
  • Domestic and international payment systems
  • Enterprise content management
  • Group buying
  • Automated online assistants
  • Instant messaging
  • Newsgroups
  • Online shopping and order tracking
  • Online banking
  • Online office suites
  • Shopping cart software
  • Teleconferencing
  • Electronic tickets
  • Social networking

Governmental Regulation

In the United States, some electronic commerce activities are regulated by the Federal Trade Commission (FTC). These activities include the use of commercial e-mails, online advertising and consumer privacy. The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising must be truthful and non-deceptive. Using its authority under Section 5 of the FTC Act, which prohibits unfair or deceptive practices, the FTC has brought a number of cases to enforce the promises in corporate privacy statements, including promises about the security of consumers' personal information.[28] As result, any corporate privacy policy related to e-commerce activity may be subject to enforcement by the FTC. 

Conclution; Contemporary Electronic Commerce Systems or e-commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce. On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce.

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