E-Commerce
E – Commerce – It is a cutting-edge technique for the business today.
This Technology is being used not only in online shopping but it is related to web shopping.
Online shopping is a very small part of E-Commerce has a very wide range in day-to-day life.
The term E – Commerce refers to online stock, bond transactions buying and downloading software without ever going to the store.
E – Commerce includes B2B connection that makes purchasing easier for a big corporation.
E- Commerce is generally described as method of buying and selling products and services electronically.
The main vehicles for E – Commerce is internet and WWW but use of fax, emails, telephones order are also prevalent.
According to WTO, the term E- Commerce is understood to mean the production distribution, marketing, sales, delivery of goods and services by emails.
Uses Of E – Commerce:
(i) Buying of products (ii) Selling of products
(iii) Advertising of products (iv) Making financial transactions
(v) Gifting a product (vi) Developing a business
(vii) Ordering a product (viii) Need no physical store
Q.1. Explain networks and its different types?
Ans. A computer network is a system that connects numerous independent computers in order to share information(data) and resources. The integration of computers and other different devices allows users to communicate more easily.
Q.2. Explain network topology?
Ans. A network topology is the arrangement with which computer systems or network devices are connected to each other.
Types- Bus topology, star topology, ring topology, mesh topology, tree topology, hybrid topology.
Q.3. Define the following:
(i) Internet – interconnected network of hundreds of thousands of computers of various types that belongs to multiple networks.
(ii) Web Server – Web Server is a program which processes the network requests of the users and serves them with files that creates web pages. This exchange takes place using HTTP.
(iii) Web Site – A website is a collection of web pages and related content that is identified by a common domain name and published on at least one web server.
(iv) Web Page – It is a single page within a web site. So, any individual part of a web site that you access is considered is webpage.
(v) Intranet – A local or restricted communications network, especially a private network created using WWW.
Advantages of E – Commerce:
(i) E – Commerce offers both short term and long-term benefits to the companies related to monetary benefits.
(ii) E – Commerce not only opens new market but also enables you to reach new customers.
(iii) E – Commerce interacts the customers directly as it is easier and faster communication for doing business.
(iv) E- Commerce helps us in practicing business successfully. Example – ordering, invoicing and customer support.
(v) E – Commerce is a network-based system and reduces a lot of paperwork involved in business-to-business transaction.
(vi) Due to E- Commerce, digital marketing can focus greatly on the customer’s needs.
(vii) E- Commerce also helps interacting customer’s satisfaction by requesting customer’s feedback.
Disadvantages of E – Commerce:
(i) Guarantee issue – E – Commerce business does not ensure a guarantee or warranty of some online products therefore, customers may receive faulty products and yet cannot claim and hence may feel cheated by the company.
(ii) Lack of personal touch – Traditionally shopping methods allows customers to touch and feel the products but the same is not possible with online shopping. Some customers are more satisfied with purchasing at physical outlets after properly checking the product.
(iii) Security Issues – With hackers across the world trying to fetch crucial information, online shopping posses threats that could lead to customers losing their essential credentials while shopping online. Customers may fear losing their data and therefore would prefer to shop at physical store.
(iv) Unable to try before buying – customers want to try out the products before they buy them which is not possible with online shopping.
(v) Non – negotiable and long delivery products – online shopping does not provide the customers with the facility to negotiate prices. Also with online shopping customers cannot get the delivery of the product instantly.
Growth of Internet and the web:
Internet and the WWW have experienced exponential growth since their inception. The internet expansion has been fueled by technological advancements, increased connectivity and the rise of digital devise. The Web has evolved from simple text based to multimedia rich content enabling global communication, commerce and information sharing on an unprecedented scale.
The upgradation of smartphones, improved infrastructure and the advent of high-speed internet have played key roles in this ongoing expansion.
Comparison between traditional and electronic commerce
Traditional commerce involves physical transactions in brick-and-mortar stores while electronic commerce is conducted online.
E – Commerce offers global reach (24/7) accessibility and cost effectiveness whereas traditional commerce relies on local presence, face to face interaction and may have limited opening hours.
E – Commerce often provides quicker transactions and a vast product selection but traditional commerce emphasizes personal customer experience and immediate product delivery.