Have you ever heard of the word “e-commerce”? I bet you have! Nowadays this new source of revenue has become increasingly popular. But do you know what this word means? E-commerce is an industry where the transactions of buying and selling are conducted through computer networks and the Internet. This allows producers and suppliers to display their goods and services by web, as well as process orders. In return, buyers (or clients) can browse the catalogues and price-lists of the displayed goods and services then place the orders they are interested in. Today, the Internet allows start-ups, small businesses, and even private actors to earn an income without requiring significant investments. Electronic storefronts allow any company to attract clients all over the world.. Information, services, or goods can be displayed then supplied through the Internet. Once the right product has been presented to the interested buyer, then a sale and payment can be conducted online. E-commerce has undeniable advantages. Here are some of them:
consumer orientation and sales promotion
cost saving
timeliness of the information
quicker money transfer
better service levels and customer relationships
competitiveness
E-commerce can be divided into five types:
business-to-business
business-to-consumer
consumer-to-consumer
business-to-administration
consumer-to-administration
In the business-to-business model, enterprises contact one another to enter into contracts. A business relationship among a firm and a supplier is the traditional example. This is one of the most promising models. The next model, the business-to-consumer model, is only slightly different as enterprises trade with private actors. This model is typically observed in retail trade. Online stores allow people to shop without leaving their houses. Everything a customer needs tosurf the net, browse and compare goods then choose the supplier are available. Click! It’s appealing easy,and convenient. And businesspeople, in turn, save on office, storage and staff.The consumer-to-consumer model allows two private actors to make a bargain. As a rule transactions here are realized by online auctions.The business-to-administration and consumer-to-administration models are not as popular.They are represented in different transaction that a client might settle with the government, e.g., collecting taxes, filling in forms, handing in different sorts of applications, etc..E-commerce supports external business communications. The Internet is comparable to a warehouse of the future where one can find all the necessary information about goods wanted and then order them online.But buying and selling is not the only function of e-commerce. E-commerce is also a gateway comprised of advertising, consumer support and money transfers.. Today, credit cards are the prevailing payment instrument in online transactions. But smart cards, digital cash and e-cheques are becoming increasingly popular. E-commerce also helps to keep the rate of return at the same level by forming demand and providing definite services after settlement of transactions. Internet intermediaries improve e-market performance, as they help to simplify the interaction among buyers and sellers. The following are some categories of the web intermediaries.
Search engines, internet catalogues and portals are the tools to find information.
Promo represented as banner exchange allows carrying out the Internet campaign at many web pages.
E-brokers are an integral part of the financial market. They provide their services through the Internet.
Trading platforms are a so-called territory where people conduct transactions. They allow unite a lot of sellers and buyers. It helps to improve trade efficiency and lessen costs. There are customer-driven, seller-driven (or supplier-driven) and third-party-driven trading platforms. They also differ in their form of organization.
One of the most popular forms is an online catalogue. An online catalogue is a virtual list of products. It is composed of different suppliers and their goods and displays them to the target area of buyers. Its income is usually composed of commissions for transactions and promo.
Online auctions offer sellers a place where they can put up trade stock for buyers to make stakes. The goods here, as a rule, are cheaper as the identical itemsin the shops. However, there is one main advantage, the time of stock turnover shortens thereby providing sellers access to new markets. Its key difference with virtual catalogue is in the price: it isn’t fixed and is determined during the auction. Sources of income are the same.
Exchange web pages are becoming more and more in-demand. It’s an anonymous trading platform which allows producers to handle purchase and sale at markets of immediate delivery and payment. The price is determined by supply and demand which leads to unpredictable highs and lows. Exchange web pages also allow firms to trade anonymously. Its sources of income are composed of commissions for transactions and participation fees.
Communities unite potential buyers and sellers within the same field of interest. They provide companies with information in the news of a specific industry as well as research and survey information, market information, and lists of vacancies, just to name a few.. They also help participants communicate with one another by chat forums or bulletin boards. Community-based income is usually composed of promos, sponsorship, participation fees, and commissions for transactions.
During the last 20 years, people have witnessed the dynamic development of e-commerce. The reason for this rapid development is the constant improvement of e-payment systems, the rapid growth of Internet users, and user engagement in social networks and other interactive online platforms. The latest surveys show that the total turnover of the products sold via the net reached $1 trillion by 2012. And, as we can see, there is more to come.