Electronic Commerce in Private Purchasing Essay

I count on you puke say that e job started back in the 70s with EFT (Electronic coin Transfer), in the 80s with EDI (Electronic Data Interchange). The 90s around 1995 is when the internet move from the federal arena to commercial sector when NSF (National skill Foundation) decommissioned NSFNET and move assets to vBNS (Very-High-Speed Backbone Ne iirk advantages) which serves as a testing screen background for the next generation of internet technologies, which solelyow ISP (Internet Service Providers) to develop.After the internet was develop we had an explosive growth mostly in Dot Coms ventures more professional left the major firm and job security to combine start ups for the promise of millions of dollar. In the mid 2000 when the NASDAQ collapsed in March hundreds of thousands of quite a little lost their jobs, stock values plummeted and thousand of company filed bankruptcy, down size of itd or were interpreted everywhere by competitors. The subsequent stock smir chet crash ca phthisisd the going away of $5 trillion in the market value of companies from March 2000 to October 2002.By the early 2003 companies that were well-conceived internet based companies were proving their values, consumers became confidence in get over the internet and crinkle began to realize the internet outhouse create aline operation efficiencies and subjoin profit. The explosion in the use of the Internet has surface the way for several path-breaking innovations. One of the most sp ar-time activitying and exciting aspects of this organic evolution is the emergence of electronic business (e-business) as a mainstream and viable pick to more traditional methods of businesses creation conducted today.E-business is defined as the process of apply electronic technology to do business. It is the day and age of electronic business. to a fault the grammatical construction of the blade is rapidly evolving from a loose collection of Web land sites into organized market places. The phenomena of aggregation, portals, large enterprise sites, and business-to-business applications are resulting in centralized, virtual(prenominal) places, by means of which millions of visitors pass daily. Ecommerce redefines the very foundations of competitiveness in terms of culture field and in put onation delivery mechanisms.Flows of information over international networks hold up created an electronic market- office of firms that are learning to exploit business opportunities. E-business has be deign stock operating procedure for the vast majority of companies. Ecommerce is the subset of e-business that focuses special(prenominal)ally on commerce. craft is the exchange of goods and services for other goods and services or for cash payment. in that location are several different pillow slips of ecommerce Business-to-Business (B2B), Business-to-Consumer (B2C), Business-to-Government (B2G), Consumer-to-Consumer (C2C) and Mobile commerce (m-commerce).A B2B governing body exchanges server programs and encoded files while communicating with other businesses. at that place are two types of B2B websites vertical and horizontal. A vertical B2B ecommerce website is designed to meet the needs of a specific diligence, and helps build connections among business communities in order to translate saucy business. A horizontal ecommerce website lavatory be used by any company that is involved in buy and selling reapings or services. B2B ecommerce strategy can reduce operational costs, summation sales, and strengthen relationships between trading partners.These websites can help expand your presence in the grocery install and lower your procurement costs while handling an unlimited flake of products. While B2B ecommerce reduces human intervention, overhead expenses, and errors, it to a fault increases efficiency and advertising moving picture and companys sales team and history roll in the hayrs can shrink on generating new bu siness. Business to Consumer (B2C) Business to consumer is the second largest and the earliest form of e-commerce. The more common B2C business directionls are the online retailing companies such as Amazon. com, Barnes and Noble and ToysRus.Other B2C examples involving information goods are E-Trade and Travelocity. The more common applications of this type of e-commerce are in the areas of purchase products and information, and somebodyal finance management. The market researchers from eMarketers view the number of online purchasers to be around 900 million worldwide. This brought in the online traders worldwide a turnover of over one billion US$ for the first time. EMarketers enumerate the British to be the biggest sp halters per head where on average every online buyer spent 3,885 US$ in 2012.US ecommerce and Online sell sales intercommunicate to r from each one $226 billion, an increase of 12 percentage over 2011. 2012 US ecommerce and Online Retail holiday sales reach $3 3. 8 billion, up 13 percent over 2011. B2C e-commerce reduces transactions costs (particularly search costs) by increasing consumer devil to information and allowing consumers to find the most competitive price for a product or service, it also reduces market entry barriers since the cost of putting up and maintaining a Web site is much cheaper than building a structure for a firm.And with information goods, B2C e-commerce is even more attractive because it saves firms from factoring in the additional cost of a physical distribution network and for countries with a growing and robust Internet population, delivering information goods becomes increasingly feasible. Electronic commerce and the Internet are redefining how consumers learn, select, purchase, and use products and services. Hence, B2C or Business-to-consumer retail holds significant business opportunities. A manufacturer with a dedicated ecommerce website can use it to increase margins, monetize existing brand loyalty and leverage competitive advantage.At the same time, he can increase cognisance for the brand, extend big product information to customers, and gather valuable customer data to reform business prospects. There are a number of derives which make owning a B2C ecommerce website inevitable for manufacturers. The ecommerce brings the shopping experience to the consumers home. By launching a B2C ecommerce website, the manufacturers bring the convenience and comfort of shopping to the consumers thereby increasing their prospective customers. When the manufacturer owns the retailing operations also, it can create brand awareness more prominently.By reaching out to new markets the manufacturers can increase their businesss brand name and slightly their product line. The e-shopping is affectionate from anywhere anytime, thus it proves to be a quick and easy mode of providing information. Manufacturers can provide extensive updated information of their product range through their customized ecommerce website design. Consumer-to-consumer (C2C) Consumer-to-consumer (C2C) is the business of conducting goods and services over the Internet to consumers from consumers. other way to signalize C2C is that it conducts e-commerce with consumers and themselves or to a third-party.Before any consumer-to-consumer business can be formed over the Internet, there needs to established of a space where individuals can come unitedly. These gathering spaces are called online or virtual confederation in which a collection of people come to one site to communicate, connect, and get to know one another. From there, people can establish a multitude of federation themes to bring correspondent minded people. Some examples of communities * Communities of interest people who come together over the Internet to share a common interest uniform professions, sports, hobbies, philosophy, trading, and others. Communities of relations people who come together over the Internet to share stories of relations such as friends, families, and/or relationships. Some examples of these communities would be corresponding Myspace or Facebook. * Communities of fantasy people who come together over the Internet to share fantasies over the internet like fantasy football or baseball. Another example would be a site that allows people to write their own stories of fiction. Another type of online community that establishes a consumer-to-consumer electronic commerce is called an online or electronic auctioneer site.An e-auction is like a regular auction however,thesales of bidding are through online. It is a place where sellers and buyers bid for items listed on the auction sites such as Ebay or Amazon. Two types of auctions that can occur * Forward Auction an auction that sellers use to have buyers bid on their merchandise till the postgraduateest bidder wins. * dispel Auction like the forward auction, this auction is used by consumers that lack to buy goods or services. However, the buyer selects the seller that has the lowest bid.An example of this would be seen in Amazon. com where instead of purchasing a product from them, a person can buy from other sellers. When going into the listing of other vendors, the website usually posts the lowest asking price first. Then, the next lowest price is listed all the way up to the last seller that has the highest price of all the listings. There are many benefits that a consumer-to-consumer e-commerce has. One of the main factors is a decline in costs. Sellers can post their goods over the internet cheaply compared to the high rent space in a store.The lower expenses lead to smaller, in time profitable customer base. Being in a community of similar interest where buyers and sellers come together leading to more chances of goods and services being sold. Another benefit is that many small businesses can obtain a higher profit cleverness over a C2C compared to a physical store because of the reduction of overhead co sts when conducting an e-business. Probably the most positive benefit of the consumer-to-consumer sites is the effectiveness in selling personal items. There are also disadvantages that a C2C e-commerce has.One of the main factors is it is not always the safest and most undeviating place to conduct business. Sometimes buyers and sellers are not accommodating to each other when transactional information is needed. In these cases, a proof of purchase can solve liability issues and prevent costly lawsuits for a consumer and small businesses. Another disadvantage is that these types of sites are known for scams, swindles, and people with ill-business intentions. When things go wrong on C2C e-commerce communities, people can easily spread their stories across the internet which effectively is Word-of-Mouth advertising.Consumer-to-consumer marketing is on the rise, and 2013 depart be the social class when it explodes into the mainstream, seemly a must-have retail marketing tactic rat her than just the mark of the out-there-brand-innovator. Communication is no longer about just businesses talking to anyone its about people talking to people. Forget whos on the end of the conversation. This is about where it all starts. The future of communications is C2C, or consumer2consumer or people2people. Individuals, whether buying for business or for themselves, are talking to and listening to other consumers.They are setting the agenda, leading the conversation, sharing their views, recommending the best products and deciding whether brands are prospered or not. No longer are consumers just taking in information corporations and brands are spewing at them. Now they question and make brands earn their loyalty. Because of social media platforms, like Facebook and Twitter, consumers are now quick to ask brands What can you do for me? So, today challenge is getting people talking about brands in a positive way, not getting brands to talk to people.With so many touch points, brands must move away from the traditional sixties formula of one-sided information and start having conversations with consumers. Consumers want brands to be current and have a real human voice they can let out with when something goes wrong or right. Business-to-Government (B2G) Business-to- authorities activity (B2G) is a variation of the term business-to-business the concept that businesses and government agencies can use central Web sites to exchange information and do business with each other more efficiently than they usually can off the Web.A Web site offering B2G services could provide businesses with a single place to locate applications and tax forms for one or more levels of government (city, state or province, country, and so forth) provide the ability to send in filled-out forms and payments update corporate information request answers to specific questions. B2G may also include e-procurement services, in which businesses learn about the purchasing needs of agencie s and agencies request proposal responses.B2G may also support the subject of a virtual workplace in which a business and an assurance could coordinate the work on a contracted project by sharing a common site to coordinate online meetings, review plans, and manage progress. B2G may also include the rental of online applications and databases designed especially for use by government agencies. This kind of e-commerce has two features first, the public sector assumes a pilot/leading role in establishing e-commerce and second, it is assumed that the public sector has the greatest need for making its procurement system more effective.Web-based purchasing policies increase the transparency of the procurement process and reduce the risk of irregularities. To date, however, the size of the B2G e-commerce market as a component of ingrained e-commerce is insignificant, as government e-procurement systems remain undeveloped. Mobile commerce (m-commerce) More and more users are buying table ts and using them for e-commerce due to the convenience it provides. The latest report from eMarketer predicts a zoom in tablet commerce, turning the m-commerce into a $50 billion industry next year.The overall wandering(a) commerce spending, including both tablets and Smartphones, in 2012 was $24. 66 billion, and this figure represented an 81% increase from the 2011 figures. EMarketer also report predicts total ecommerce spending from tablet devices but to touch $24 billion by the end of 2013 and then almost double itself in a year to reach $50 billion by the end of 2014. The total agile m-commerce sales would stand at about $39 billion in 2013. In 2013, 15% of all sales is expected to come from spry devices, with tablets alone accounting for a dominant 9%.By 2016, tablets alone will account for a significant 17% of all sales. A big reason for the surge is the increasing rate of tablet adoption, as more and more people buy this new device. Traditionally, the ratio of new devic es has been four Smartphones for every tablet. But Christmas Day 2012 sprang another surprise, when 49% of the 17. 4 million new devices activated were actually tablets. As content delivery over wireless devices becomes faster, more secure, and scalable, some believe that m-commerce will surpass wire line e-commerce as the method of choice for digital commerce transactions.This may well be true for the Asia-Pacific where there are more mobile phone users than there are Internet users. Industries impact by m-commerce include Financial services, including mobile banking, as well as brokerage services Telecommunications, in which service changes, bill payment and account reviews can all be conducted from the same handheld device Service/retail, as consumers are given the ability to place and pay for orders on-the-fly knowledge services, which include the delivery of entertainment, financial news, sports figures and traffic updates to a single mobile device.