Dictionaries say that e-commerce is a sphere of the economy that includes financial and trade transactions, the implementation of which takes place through computer networks. To this kind of commerce is customary to refer electronic:
- exchanges of information;
- capital flows;
- types of trade;
- money;
- marketing;
- banking;
- insurance services.
What is e-commerce on the Internet?
Under the term as e-commerce on the Internet is understood not only to build a business, create stores on the network, but also various calculations, purchases and earnings. For many modern people this kind of commerce has become a habitual matter, without which it is difficult to imagine life. However, there are among us those who still doubt and do not trust the Internet and everything connected with it.
Advantages and disadvantages of e-commerce
This type of commerce has both advantages and disadvantages. Among the first:
The opportunity to reach the global market. The needs of not only the national but also the international market are serviced here. Prospects for e-commerce are huge, as business is not limited to geographic boundaries. With the help of this commerce, even small businesses are able to access the world market.
A unique opportunity for the client to choose not so expensive and thus high-quality goods. There is such an opportunity for consumers to easily research the product of interest, learn about the manufacturer. Shopping online is always very fast and convenient. In addition, there is the opportunity to review the reviews of those who have already purchased the goods or used the service.
For companies and firms, this type of commerce reduces the costs associated with marketing, customer service, storage and processing of information, and contributes to better customer service. There is such an opportunity to process and collect information about the behavior of buyers.
Among the shortcomings of e-commerce:
Not all people use the Internet to conduct financial transactions due to lack of knowledge or mistrust. So, some are afraid to disclose personal information.
Not suitable for trading quickly spoiled goods. Food people prefer to buy in traditional ways, rather than use e-commerce.
e-commerce on the Internet
Pros of e-commerce
E-commerce for many modern businessmen has become an integral part of life. This is not surprising, because the benefits of e-commerce are obvious:
Possibilities of geographical coverage . Having opened a store in the city, the entrepreneur will have much fewer customers than in the online store.
Efficiency and convenience of purchases over the Internet . For many modern people, online shopping has become something familiar. To order something, without leaving the house, like adults and children.
Save the business online . The opening of an online store will require less financial investment, rather than opening a regular store in your city.
Cons E-commerce
This type of commerce has its drawbacks. There are such disadvantages of e-commerce:
Distrust of buyers . Although for many online purchases have become commonplace, there are still those who do not trust the sellers on the Internet and prefer to buy in off-line stores and supermarkets. This is especially true of older people.
Not for all business areas suitable . So, e-commerce is not suitable for those entrepreneurs who trade in food.
Types of e-commerce
There are such types of e-commerce:
E-commerce B2B, or business business – one of the most promising and rapidly developing areas. The principle is to trade one enterprise with another.
B2C scheme, or business customer . Here the company can trade directly with customers, where it is a question of retail sales of goods.
Scheme C2C, or consumer-consumer . Provision is made for transactions between consumers, where neither of them is an entrepreneur. Often, commerce takes place on the sites of various online auctions, which are becoming more popular every day.
- Payment systems of electronic commerce
- There are such systems of electronic commerce:
- Cash payments – traditional retail trade, payment on receipt of goods ordered in the online store.
- Bank transfers – settlements between legal entities.
- Transfers by means of a plastic card – are applied in a trading network, in Internet commerce.
- Transfers using smart cards – are used in Internet commerce and trade network.
- Electronic money – payment on the Internet, in the retail network or using a pocket computer.
