International Journal of Computing and Corporate ResearchISSN (Online) : 2249-054XVolume 4 Issue 1 January 2014International Manuscript ID : 2249054XV4I1012014-10E-COMMERCE : ROLE OF E-COMMERCE IN TODAY'S BUSINESSAnjali GuptaAssistant Professor in CommerceCCAS Jains Girls College, GanaurSonepat (Haryana), IndiaABSTRACTE-commerce stands for electronic commerce and pertains to trading in goods andservices through the electronic medium. B2B, B2C, C2C and similar opportunity helpconsumer preferences and consumer markets developing electronic infrastructure forchallenges of the future. E-commerce has revolutionized business, changing the shape ofcompetition with internet (The NET) ,the computer communication network creating ae-commerce market place for consumers and business . With developments in the Internetand Web-based technologies, distinctions between traditional markets and the globalelectronic marketplace-such as business capital size, among others-are gradually beingnarrowed down. India is showing tremendous growth in the Ecommerce. The low cost ofthe PC and the growing use of the Internet is one of reasons for that. There is a growingawareness among the business community in India about the opportunities offered byecommerce. The present paper mainly aims to discuss the Role of E-commerce in Today'sBusiness.Keywords: Strategy, Technology, Communications, Digital Information.1. INTRODUCTION1.1. What is e-commerce?Electronic commerce or e-commerce refers to a wide range of online businessactivities for products and services. It also pertains to "any form of business transaction inwhich the parties interact electronically rather than by physical exchanges or directphysical contact.E-commerce is usually associated with buying and selling over the Internet, orconducting any transaction involving the transfer of ownership or rights to use goods orservices through a computer-mediated network.Though popular, this definition is not comprehensive enough to capture recentdevelopments in this new and revolutionary business phenomenon. A more completedefinition isE-commerce is the use of electronic communications and digital informationprocessing technology in business transactions to create, transform, and redefine
relationships for value creation between or among organizations, and betweenorganizations and individuals1.2.Is e-commerce the same as e-business?While some use e-commerce and e-business interchangeably, they are distinctconcepts. In e-commerce, information and communications technology (ICT) is used ininter-business or inter-organizational transactions (transactions between and amongfirms/organizations) and in business-to-consumer transactions (transactions betweenfirms/organizations and individuals).In e-business, on the other hand, ICT is used to enhance one's business. It includesany process that a business organization (either a for-profit, governmental or a non-profitentity) conducts over a computer-mediated network. A more comprehensive definition ofe-business is "The transformation of an organization's processes to deliver additionalcustomer value through the application of technologies, philosophies and computingparadigm of the new economy."1.3.What are the different types of e-commerce?The major different types of e-commerce are Business-to-business (B2B) Business to-consumer (B2C) Business-to-government (B2G) Consumer-to-consumer (C2C) Mobile commerce (m-commerce)1.4.What is B2B e-commerce?B2B e-commerce is simply defined as e-commerce between companies. This is thetype of e-commerce that deals with relationships between and among businesses. About80% of e-commerce is of this type, and most experts predict that B2B ecommerce willcontinue to grow faster than the B2C segment.The B2B market has two primary components: e-frastructure and e-markets.Efrastructure is the architecture of B2B, primarily consisting of the following:Logistics - transportation, warehousing and distribution (e.g., Procter and Gamble);Application service providers - deployment, hosting and management of packagedsoftware from a central facility (e.g., Oracle and Link share);Outsourcing of functions in the process of e-commerce, such as Web-hosting,Security and customer care solutions (e.g., outsourcing providers such as e-share,Net Sales, iXL Enterprises and Universal Access);Auction solutions software for the operation and maintenance of real-time auctionsin the Internet (e.g., Moai Technologies and Open Site Technologies);Content management software for the facilitation of Web site content managementand delivery (e.g., Interwoven and Procure Net); and
International Journal of Computing and Corporate ResearchISSN (Online) : 2249-054XVolume 4 Issue 1 January 2014International Manuscript ID : 2249054XV4I1012014-10Web-based commerce enablers (e.g., Commerce One, a browser-based,XMLenabled purchasing automation software).E-markets are simply defined as Web sites where buyers and sellers interact each otherand conduct transactions.A diagram shows how an e-commerce helps in business.A Private Industrial Network-This graph shows that how e-commerce helps inprivate industrial network.SuppliersDistributors2. WHAT IS B2C E-COMMERCE?Business-to-consumer e-commerce, or commerce between companies andconsumers, involves customers gathering information; purchasing physical goods (i.e.,tangibles such as books or consumer products) or information goods (or goods ofelectronic material or digitized content, such as software, or e-books); and, for informationgoods, receiving products over an electronic network.B2C e-commerce reduces transactions costs (particularly search costs) byincreasing consumer access to information and allowing consumers to find the mostcompetitive price for a product or service.B2C e-commerce also reduces market entry barriers since the cost of putting up andmaintaining a Web site is much cheaper than installing a "brick-and-mortar" structure for afirm.In the case of information goods, B2C e-commerce is even more attractive becauseit saves firms from factoring in the additional cost of a physical distribution network.Moreover, for countries with a growing and robust Internet population, deliveringinformation goods becomes increasingly feasible.
3. WHAT IS B2G E-COMMERCE?Business-to-government e-commerce or B2G is generally defined as commercebetween companies and the public sector. It refers to the use of the Internet for publicprocurement, licensing procedures, and other government-related operations. This kind ofe-commerce has two features: first, the public sector assumes a pilot/leading role inestablishing e-commerce; and second, it is assumed that the public sector has the greatestneed for making its procurement system more effective.Web-based purchasing policies increase the transparency of the procurementprocess (and reduce the risk of irregularities). To date, however, the size of the B2Gecommerce market, as a component of total e-commerce is insignificant, as government,E-procurement systems remain undeveloped.4. WHAT IS C2C E-COMMERCE?Consumer-to-consumer e-commerce or C2C is simply commerce between privateindividuals or consumers.This type of e-commerce is characterized by the growth of electronic marketplacesand online auctions, particularly in vertical industries where firms/businesses can bid forwhat they want from among multiple suppliers.16 It perhaps has the greatest potential fordeveloping new markets.Consumer-to-business (C2B) transactions involve reverse auctions, whichempower the consumer to drive transactions. A concrete example of this when competingairlines gives a traveler best travel and ticket offers in response to the traveler's post thatshe wants to fly from New York to San Francisco.There is little information on the relative size of global C2C e-commerce.However, C2C figures of popular C2C sites such as eBay and Napster indicate that thismarket is quite large. These sites produce millions of dollars in sales every day.5. WHAT IS M-COMMERCE?M-commerce (mobile commerce) is the buying and selling of goods and servicesthrough wireless technology-i.e. handheld devices such as cellular telephones and personaldigital assistants (PDAs). Japan is seen as a global leader in m-commerce.
International Journal of Computing and Corporate ResearchISSN (Online) : 2249-054XVolume 4 Issue 1 January 2014International Manuscript ID : 2249054XV4I1012014-10As content delivery over wireless devices becomes faster, more secure, andscalable, some believe that m-commerce will surpass wire line e-commerce as the methodof choice for digital commerce transactions. This may well be true for the Asia-Pacificwhere there are more mobile phone users than there are Internet users.Industries affected by m-commerce include:Financial services, including mobile banking (when customers use their handhelddevices to access their accounts and pay their bills), as well as brokerage services (in whichstock quotes can be displayed and trading conducted from the same handheld device);Telecommunications, in which service changes, bill payment and account reviewscan all be conducted from the same handheld device;Service/retail, as consumers are given the ability to place and pay for orderson-the-fly; andInformation services, which include the delivery of entertainment, financial news,sports figures and traffic updates to a single mobile device.6. BENEFITS OF E-COMMERCETransaction costs. Three cost areas are significantly reduced through the conduct of B2Be-commerce.First is the reduction of search costs, as buyers need not go through multipleintermediaries to search for information about suppliers, products and prices as in atraditional supply chain. In terms of effort, time and money spent, the Internet is a moreefficient information channel than its traditional counterpart.Second is the reduction in the costs of processing transactions (e.g. invoices,purchase orders and payment schemes), as B2B allows for the automation of transactionprocesses and therefore, the quick implementation of the same compared to other channels(such as the telephone and fax). Efficiency in trading processes and transactions is alsoenhanced through the B2B e-market's ability to process sales through online auctions.Third, online processing improves inventory management and logistics.Disintermediation. Through B2B e-markets, suppliers are able to interact andtransact directly with buyers, thereby eliminating intermediaries and distributors.However, new forms of intermediaries are emerging. For instance, e-markets themselvescan be considered as intermediaries because they come between suppliers and customers inthe supply chain.Transparency in pricing. Among the more evident benefits of e-markets is theincrease in price transparency. The gathering of a large number of buyers and sellers in asingle e-market reveals market price information and transaction processing toparticipants. The Internet allows for the publication of information on a single purchase or
transaction, making the information readily accessible and available to all members of thee-market.Increased price transparency has the effect of pulling down price differentials in themarket. In this context, buyers are provided much more time to compare prices and makebetter buying decisions.7. SUPPLY CHAIN MANAGEMENTSupply Chain Management (SCM) is defined as the supervision of materials,information, and finances as they move from supplier to manufacturer to wholesaler toretailer to consumer. It involves the coordination and integration of these flows both withinand among companies. The goal of any effective supply chain management system istimely provision of goods or services to the next link in the chain (and ultimately, thereduction of inventory within each link).There are three main flows in SCM, namely:The product flow, which includes the movement of goods from a supplier to acustomer, as well as any customer returns or service needs;The information flow, which involves the transmission of orders and the update ofthe status of delivery; andThe finances flow, which consists of credit terms, payment schedules, andconsignment and title ownership arrangements.Some SCM applications are based on open data models that support the sharing ofdata both inside and outside the enterprise, called the extended enterprise, and include keysuppliers, manufacturers, and end customers of a specific company. Shared data resides indiverse database systems, or data warehouses, at several different sites and companies.Sharing this data "upstream" (with a company's suppliers) and "downstream" (with acompany's clients) allows SCM applications to improve the time-to-market of products andreduce costs. It also allows all parties in the supply chain to better manage currentresources and plan for future needs.A diagram shows how e-commerce improves the supply chain management.
International Journal of Computing and Corporate ResearchISSN (Online) : 2249-054XVolume 4 Issue 1 January 2014International Manuscript ID : 2249054XV4I1012014-108. WHAT ARE THE EXISTING PRACTICES IN DEVELOPING COUNTRIESWITH RESPECT TO BUYING AND PAYING ONLINE?In most developing countries, the payment schemes available for onlinetransactions are the following:A.Traditional Payment Methods Cash-on-delivery. Many online transactions only involve submitting purchase ordersonline. Payment is by cash upon the delivery of the physical goods. Bank payments. After ordering goods online, payment is made by depositing cash intothe bank account of the company from which the goods were ordered.Delivery is likewise done the conventional way.B. Electronic Payment MethodsPayment SystemDescriptionDigital Credit Card PaymentSecure services for credit card payments On internetDigital WalletSoftware Stores Credit Card And Other InformationAccumulatedBalancePayment SystemAccumulates Micropayment Purchases As Debit Balance To BePaid PeriodicallyStored Value Payment Systems Enables Consumers To Make Instant Payments Based On ValueStored In Digital AccountDigital CashDigital Currency Used For Micropayments Or Larger PurchasesPeer-To-Peer Payment Systems Sends Money Via Web To Persons Or Vendors Not Set Up ToAccept Credit Card PaymentsDigital CheckingProvides Electronic Check With Secure Digital SignatureElectronic Billing Presentment Supports Electronic Payment For Online And Physical Store& PaymentPurchases9. FUTURE SCOPEExperts predict a promising and glorious future of ecommerce in the 21st century.In the foreseeable future ecommerce will further confirm itself a major tool of sale.Successful ecommerce will become a notion absolutely inseparable from the web, becausee-shopping is becoming more and more popular and natural. At the same time severerivalry in the sphere of ecommerce services will intensify their development. Thusprevailing future trends of ecommerce will be the growth of Internet sales and evolution.Each year number of ecommerce deals grows enormously. Sales volumes ofon-line stores are more than comparable with those of "brick-and-mortar" ones. And thetendency will continue, because a lot of people are "imprisoned" by work and householdduties, while Internet saves a lot of time and gives opportunity to choose goods at the bestprices. Present-day Internet sales boom is the foundation for magnificent ecommercefuture. To attract more customers e-store-owners will have not only to increase the number
of available services, but to pay more attention to such elements like attractive design,user-friendliness, appealing goods presentation, they will have to opportunely employmodern technologies for their businesses to become parts of ecommerce future.10. REFERENCE Asia Foundation by Digital Philippines. Business Software Alliance. 2001. E-commerce and Developing Markets:Technology, Trade and Opportunity. Coward, Chris. August 2002. Obstacles to Developing an Offshore IT-EnabledServices Harvard Business School Press. Industry in Asia: The View from the US. A report prepared for the Center for SMEs and ecommerce in Three Philippine Cities. Cronin, Mary J., ed. 1998. Banking and Finance on the Internet. U.S.A.: JohnWiley & Sons.
B2B e-commerce is simply defined as e-commerce between companies. This is the type of e-commerce that deals with relationships between and among businesses. About 80% of e-commerce is of this type, and most experts predict that B2B ecommerce will continue to grow faster than the B2C segment.