Electronic Commerce (E-commerce) refers to the paperless exchange of business information using Electronic Data Interchange (EDI), Electronic Mail, Electronic Bulletin Boards, Electronic Funds Transfer (EFT), FAX and other network-based technologies. In a word, Ecommerce is associated with buying and selling of information, products and services over computer communication networks. It not only automates manual processes and paper transactions but also helps organizations move to a fully electronic environment and change the way they operate. E-commerce has unleashed yet another revolution, which is metamorphosing the way business is dime tindene seems to be creating the possibility of a permanent worldwide bazar in which no prices are ever fixed for long, and information is instantly available.
Internet provides a perfect medium for aggregating buyers and sellers from all over theworld.B2B, B2C and C2CBuying and selling on the internet is known by the generic term e-commerce. Business on the net is classified into B2B (business-to business), B2C (business-to-consumer) andC2C (consumer-to-consumer). B2C is still hampered by the poor penetration of PCs, compounded by worries over payment facilities and infrastructure costs. Currently, these sites are offering low value items like CDs, cassettes, food, toys, flowers, cards etc., because no complicated logistics are involved. Profitability One has to visualize before thinking of EBusiness the idea is relevant, the idea works, whether idea makes money and the idea has sustainable competitive advantage.
Worldwide,after eight years of start up, Yahoo and AOL arethe only companies making profits in the internetbusiness.
Besides these, the other issues areas follows.SecurityThe biggest problem facing all the B2B portalsis the absence of secure on-line paymentgateways in the country. Insecurity oftransactions on the web has impeded on-linecommerce. Digital certificates provide one suchanswer. Unauthorised access to data bases,fraudulent payment transfer – be they throughthe banking or credit card channels, false ormalicious order confirmations, lack of a trackingsystem like a social security number and thevast unorganised industrial sector could throwinternet based businesses out of gear.Lack of internet infrastructureIn India, internet access is still very expensiveand the access devise is primarily a PC whichmost Indians cannot afford.
Lack of infrastructure (like availability and costs of telecommunications and information technology) and lack of awareness about technological developments are some of drawbacks which impede the development of e-commerce. Removal of intermediaries Banking Briefs 60 (For private circulation only) One of the problems in today’s Indian producer/consumer chain is that it is the intermediaries like distributors or dealers who make most of the money. Existing intermediaries, from retailers to stockbrokers to banks, may find their role redefined or eliminated. Instead, it is argued, that the net would create new categories of intermediaries who, for example, could capitalize databases to customize products and services. Success of e-commerce the most important factor for the success of ecommerce is delivery.
It is easy to set up a portal but difficult to deliver the goods. Other key success factors include providing value for money, gaining customer trust and flexibility to keep pace with the market conditions. Orders can be booked electronically, but the actual delivery of goods is still to be done physically. Most firms are not making any real gains.Amazon.com, the world’s biggest e-commerce firm, is yet to demonstrate that their business models are profitable. The new economy is actually all about making the old economy more efficient. The real winners are going to be clicks and bricks companies that are going to adopt latest communication mechanisms, manage their supply chains well and cut out on inefficiency. Roadblocks: The single largest roadblock in our country today is connectivity. The second issue is the revenue divide between the center and the states which has resulted in a multiple and complicated system of taxation. The third issue is the legal process. However, the passing of I.T .Bill is a step-in the right direction for the growth of Ecommerce.
Last updated on August 4, 2020
