E-Commerce
Introduction
The purpose of this report is to describe what e commerce is and compare it to traditional business. It will also show the benefits of e commerce and the role the internet has played. Finally the report will describe some of the business models used in e commerce.
1. A definition of e commerce
E commerce can be considered to be the sales aspect of e business. E commerce describes the process of conducting business using electronic systems like the internet or other computer systems. It refers to things like buying and selling products or services and online transactions.
2. A comparison of traditional and electronic business
Traditionally businesses relied on exchanges with the consumer through direct contact or through the use of phones or post. E business on the other hand handles all exchanges with the consumer electronically using the internet with little or no direct contact.
3. Benefits of e business
One of the benefits of e commerce over traditional commerce is that because all transactions are carried out electronically businesses do not have to set up stores or outlets, which means they won’t have the cost of renting premises or the need to employ as many staff or sales people. This will keep the business’s overheads down which will lead to increased profits.
Another benefit is that it opens up a larger marketplace for businesses allowing them easier access to customers globally.
One benefits of e commerce for the consumer is that it allows the customer access to products and services 24 hours a day. It also takes less time and effort for the consumer to search for items than it would, using traditional methods. Another benefit is that because business’s costs are down, they can offer goods to the consumer for a lower price.
There can be limitations to e commerce. For example, the cost of the technology might be...
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