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Introduction to E-Commerce case study

Introduction to E-Commerce case study
This case study outlines the cropping up of the e-commerce. The term e-commerce, sometimes referred to as e-business, changes constantly the scope of business management and in the IT. This study sheds light so as to bring an understanding on the many terms that have emerged in the e-commerce sector, how they are used and to sear deeply into the mind of the potential users, review their origin.
By 1999, companies noted that they could make use of the internet to compile statistics customer views in exceptional quantities through registering the customers, administering opinion polls and as a medium of getting orders from customers. However, the urge to design an e-commerce gnawed as early as 1997 when the computer guru, Dell, stated that there were orders spanning millions of dollars daily (Anonymous,2000). To cap it all, companies foresighted to have had installed e-commerce transactions by 1999 recorded booming businesses with huge returns. Some of the veterans in the business include and the infamous E-commerce was proceeded an early trading system called Electronic Data Interchange (EDI), which transacted business using private network systems.
E-commerce is defined as transacting (buying and/or selling) business online (internet) and sometimes also includes servicing customers and team up with fellow business corporations. However, e-commerce is a big broad umbrella term, with various types under it namely:
B2B (Business-to-Business) which include companies transacting business with other companies such as one between the manufacturing company and a distributing company; B2C (Business-to-Consumer) which involves companies selling directly to the consumers such as through online shopping at Amazon; C2B(Consumer-to-Business) which involves the consumers give their services and products to companies in return of payments; and C2C (Consumer-to-Consumer) whereby consumers interrelate with fellow consumers through online via auctions held online.
Factors determining e-commerce
• Economic factors: These factors are financial status of the consumers.
• Political factors: these are the tasks of the government in enhancing the usage of e-commerce by upgrading and assistance.
• Technological factors: these include the level of technology which allows the admission to the various usages of e-commerce applications during the transaction of business between the business and the consumers.
• Social factors: these include the applying of the IT learning in the society to enhance them to conduct the business, through purchasing the commodities online or enhancing the transactions by providing the working personnel.

Impacts of e-commerce
• The growth of various technologies used in the provision of the network and computing services such as languages.
• There is online marketing and brochures that can be used to take orders from the customers.
• The e-commerce has increased the duration that it takes to deliver the customer orders thus lessening the cycle periods of the commodities.
• E-commerce has enhanced the transaction of finances via online where costs are settled online and online employment which has substituted permanent workers.
Advantages of e-commerce
• It is not tedious because there is minimal paper work.
• E-commerce transcends borders, that is, online shopping is not deterred by geographical location.
• The e-commerce business can be transacted at any given time.
• The online market has got a good reception in diverse world locations thus making e-commerce a global market.
• The medium through which e-commerce is transacted, that is internet, is cheaper than using the traditional telephoning.
• With the mass customizations, the consumers have many options.
Disadvantages of e-commerce
• It is incompatible with the technology used early ort he newly renovated.
• The technology is advancing at such a quick rate thus forcing people to strive to keep up with the pace.
• Due to the increasing business rivalry, the companies incur immense losses because of the price conflicts.
• E-commerce can’t be carried out without a electronics such as computers.

With the advance in technology, the term e-commerce is destined to change and also the way through which it is used. E-commerce transaction revolves around the consumers, companies and the society. The future of e-commerce lies in the technology.

Anonymous (2000), Introduction to e-commerce. Retrieved on 1st October 2011 from

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