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MEANING OF E-COMMERCE
E commerce (electronic Commerce or EC) is the buying and selling of goods and services on the internet, especially on the World Wide Web. In practice e- commerce and a newer term e-business is often used interchangeably.
DEFINITION OF E-COMMERCE
E –commerce can be defined as an activity of buying and selling, marketing, delivery, servicing and paying for products and services over the medium of internet. The idea of e-commerce came into being due to the fact that the world has been experiencing globalization and technological advancement.
FUNCTIONS OF E-COMMERCE
- Provision of cost effective business: One of the most tangible function of e commerce is the lowered cost of production, it does not require employees, advertisement etc. A part of the lowered cost comes to the consumer as discount.
- Absence of geographical limitation: A physical store at a particular location is limited to the geographical area. With e –commerce website, the whole world is your playground.
- Quick location of product: On e-commerce website customers can locate their desired product quickly by using the search box.
- It eliminates travel time and cost: With the advent of e-commerce, customers are allowed to visit the same store virtually with a mouse.
- It allows for comparison shopping: E –commerce provides for comparison shopping opportunities due to the fact that there are several online services.
- Easy access to information: E- commerce makes it possible for customers to obtain information about product which may not be easily obtained from the physical store.
- Provides all the time services: E –commerce website can run all the times. From the customer’s point of view an ‘always open’ store is more convenient
- E-Commerce enables business and customers to make sales and purchases through the global market.
TYPES OF E-COMMERCE
There are basically five types of e-commerce
- Business to consumer commerce (B2C): It is a pattern of e-commerce in which manufacturers or marketers sell their products to the retailers who in turn sell them to the consumer.
- Business to business commerce (B2B): Under this form of e-commerce, the buying and selling takes place between two businesses or companies without involving the consumer. It is also a high level businesses involving heavy capital.
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