E-commerce stands for electronic
commerce or EC. It is the buying and selling of goods and services using
computer network, especially the World Wide Web. In practice, this term and a
newer term, e-business, are often used interchangeably. For online retail
selling, the term e-tailing is also used.
E commerce is functioning with the
help of computers connected to internet.
Here a computer network is formed by linking them with telecommunication
channels. This system carries messages and images among users and thus an
effective exchange of information is made possible.
Conventional commerce is taking
place when both the buyer and seller meet, talk and came to a conclusion
regarding the terms of trade. Both the parties should be present and therefore
they should reach at one place to talk together. Moreover, the buyer can select
from the limited varieties exhibited and stored by the seller in his show room.
If the buyer is not satisfied with the products exhibited by the seller, he
needs to go to another seller to select one. It is a time consuming and
tiresome effort. In addition to these, the seller must be free, patient and
able to enlighten the buyer regarding comparative advantages of each product,
with a view to help him in taking a decision.
E commerce is the solution to all
these difficulties. It can provide timely and accurate information about all
products very easily. It can also exhibit the images of each product; now it is
possible to show three dimensional (3D) images of the products. The buyer can
very easily go to another shop or seller if he is not satisfied with one
Advantages of e
is possible at any time. It is open on 24X 7 basis and therefore continuous
business takes place on day and night
cost is required to set up a business unit. Location, size of the shop,
furnishing etc. are not at all worth considering.
is open to whole world. There is no geographical limitation to business area.
are possible at lightning speed. Computers can receive and process orders very
commerce is the maximum convenient mode of shopping. The buyer can do shopping
by sitting in his house or office.
get opportunity to select products from any shop situated anywhere in the
world. They can see and evaluate
products of different suppliers and can make best choice.
commerce ensures worldwide sales and therefore high volume of sales is
need not stock and exhibit high volume of inventories.
Disadvantages of e-
• A number of fake buyers and sellers may appear
on the field. Some of them may be real frauds.
• Customers do not get an opportunity to touch or
experience the product. He can see it as image, but should rely on the
• It may take days to get delivery of goods. The
seller needs to send goods through post or courier service.
• If the value of goods is too small, it may not
be suitable to go for e commerce.
• E commerce is a business which depends heavily
on trustworthiness of buyers and sellers. If they are not such kind of people,
the business will be in trouble.
• E commerce is a new method of business. A
number of people may resist o change from their usual practices.