ELECTRONIC COMMERCE aka E-COMMERCE (SCOPE, BENEFITS LIMITATIONS AND TYPES)

E-commerce can be conducted on the Web, by e-mails and on other networks. It is divided into the following major types: business-to-consumer, consumer-to-consumer, business-to-business, e-government, collaborative commerce and intra-business. In each type you can find several business models. E-commerce offers many benefits to the organizations, customers and society, but it also has limitations (technical and nontechnical). The current technical limitations are expected to lessen with time.

The major application areas of B2C commerce are in direct retailing, banking, securities trading, job markets, travel and real state. Several issues slow the growth of B2C, notably channel conflict, order fulfillment, and customer acquisition. B2C e-tailing can be pure (such as Amazon.com), or part of a click-and-mortar organization. Direct marketing is done via solo storefronts, in malls, and by using electronic auctions. The Internet provides an infrastructure for executing auctions at lower cost, and with many more sellers and buyers involved, including both individual consumers and corporations. Forward auctions and reverse auctions are the two major types.

Understanding consumer behavior is critical to e-commerce. Finding out what customers want can be done by asking them, in questionnaires, or by observing what they do online. Other forms of market research can be conducted on the Internet by using intelligent agents. Like any commerce, EC requires advertising support, much of which can be done online by methods such as banner advertisements and customized ads. Permission marketing, interactive and viral marketing, electronic catalogs and online coupons offer ways for vendors to reach more customers. Customer service occurs before, during and after purchasing, and during disposal of products.

The major B2B applications are selling from catalogs and by forward auctions, buying in reverse auctions and in group purchasing, and trading in exchanges. In addition, most organizations employ collaborative commerce usually along the supply chain.

E-government commerce can take place between government and citizens or between businesses and governments. It makes government operations more effective and efficient. Using a wireless environment allows new mobile commerce applications as well as more convenient access to the Internet. EC can also be done between consumers (C2C), but should be done with caution. Finally EC can be done within organizations (intra business).

The major EC infrastructure components are networks, Web servers, Web tools, electronic catalogs, programming languages, transactional software and security devices. Therefore, electronic payment systems are used. Electronic payment can be made by e-checks, e- credit cards, e-cash, and smart cards, and EFT. Order fulfillment is especially difficult in B2C.