What is E-Commerce Business? | Features of E-Commerce

What is E-commerce?

E-Commerce is a business that takes place using the Internet. It is a modern business method. All business activities are conducted with the help of online. Using the internet, the buyer can see the quality and price of any product at home as well as order it through the website. Credit cards and debit cards are used for e-commerce transactions.

E-Commerce
E-Commerce

E-Commerce can be divided into four categories based on the nature of the two sides of the transaction, which is –

1. Business to Consumer :

In this method, if a consumer buys a product directly from a business organization or manufacturer, Then it’s known as a consumer to business e-commerce. Using internet technology, a person can book a hotel in advance which is covered by such transactions. Example: walmart.com

2. Business to Business :

In this case, the business takes place between more than one business organization. In this case, two business organizations buy and sell wholesale between them. That is, the business that is performed before selling the product to the consumer is called business to business e-commerce. Example: e-steel.com

3. Consumer to Business :

In which merchants receive products directly from consumers is called consumer to business e-commerce. Example: www.priceline.com

4. Consumer to Consumer :

In this case, the business is conducted among the consumers themselves which are known as the consumer to consumer e-commerce. In this case, there is no business middleman. A consumer product is purchased directly by another consumer. If a farmer sells his product directly to the consumer. Example: bikroy.com

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Features of E Commerce:

E-Commerce technology is based on seven features, the features are –

  1. Ubiquity
  2. Universal Standards
  3. Global Reach
  4. Richness
  5. Interaction
  6. Information Density
  7. Personalization

1. Ubiquity :

A traditional business market is a specific place where goods are bought and sold. But E-Commerce does not require a specific space, it is ubiquitous, it is always available everywhere. If you have an internet connection on your mobile or laptop or any other device, you can buy and sell products from anywhere. It is not governed by any specific boundaries.

2. Universal Standards :

E-Commerce adheres to a certain technical standard, called an international standard. Which is recognized by all nations in all countries. Traditional commerce, on the other hand, varies from region to region or country to country.

3. Global Reach :

E-commerce has no definite boundaries or places like a traditional business. Using the Internet, anyone in the world can get involved in this business, buy and sell products, place orders. In fact, all the people around the world who use the internet can be considered as an E-Commerce market.

4. Richness :

An important part of the business is product advertising. With the help of the internet, advertisements are given with the help of still images, experiences, videos, and animations of any product through the web site.

5. Interaction :

E-commerce technology is interactive communication. Because it protects two-way communication. Conventional technology, on the other hand; For example, only one-way communication is possible with the help of television. But it is possible in e-commerce technology.

6. Information Density :

The amount of information on the Internet or the web greatly increases. This information is readily available to buyers, sellers, or visitors. E-Commerce technology reduces the cost of collecting, storing, communicating, and processing information. At the same time, this information is accurate and timely at international sheet prices. As a result, this information is more acceptable and of higher quality.

7. Personalization :

E-commerce technology can penetrate the individual. This means that a seller can keep his product open for a particular person or group if he wants to. On the other hand, sellers can avoid any seller if they want to. As a result, the abundance of information and the amount of unnecessary buyers or sellers can be easily controlled here.

Advantage of E-Commerce

  1. It helps an organization to publish in national and international markets.
  2. The various costs of processing e-commerce data; For example, the cost of making, distributing, storing, etc. activities are greatly reduced.
  3. It has reduced business costs as well as reduced the cost of shopping for the buyer and accelerated the purchase.
  4. It businesses can easily learn about each other’s business practices, services, and pricing through websites. As a result, competition among businesses increases.
  5. It facilitates short-term market verification and instant ordering
  6. It is creating new types of job opportunities in the market; For example, multimedia developers, database designers, programmers, etc. are creating multiple job opportunities.

Disadvantages of E-Commerce

  1. Applying advanced technology is expensive.
  2. Lack of skilled manpower.
  3. Distant order orders are expensive.
  4. Excessive orders cause delivery problems.
  5. Legislation and enforcement are extremely complex and difficult issues for both lawmakers and law enforcers.

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