L+E-Commerce+Summary

**E-Commerce**

Electronic commerce is the result of a combination of different technological inventions, the basic definition is purchasing using the internet, but the right definition is larger than that because it covers specific areas of economic transactions, so it can be: The method that involves all aspects of business and market processes (selling goods and services) enabled by the internet and the world wide technologies.

There are three application types of e-commerce, the most known is the //internet// commerce, that is specifically the commercial use of the internet. The second application refers to the Electronic markets that are intangible digital markets (on the //internet//) where variety of offerings is presented the buyer can compare products and services and make a purchase decision. The last one is the Electronic data interchange (EDI) that is basically a system for coding trade transactions that is used by organizations that normally make lots of transactions, because EDI offers direct communication from one organization to another without the need of personal meetings or errors on paper handling, this means it is easier and faster for their business to make transactions. E-commerce works if two things happen. First companies, customers and public administrations should open a website where they can do all their transactions or publish procurements and needs. So they should follow some steps, first they have to select a server, then design an attractive website, and put information (prices, legal information, means of payment, advertising) on it. The next step is to design or buy a software that will calculate the order an also will offer different payment options, of course they have to install security protocols to prevent risks and all of the website transactions have to be linked up with a bank that accept the clients payment. Second is the process that has to follow every customer to buy a product or service. Initially they need //internet// (they access through any device) and use the browser to search a website that offers products, later the person searchesh for the products using the website browser, when they decide what to buy, they place the order (add to the cart) and then proceed to check out they register and provide information to buy the product, subsequent an email is sent to the merchant and then the company sends the customer the tracking number of the product and start the shipping process and finally the consumer receive it. The electronic commerce is subdivided in six different categories that turn around business, consumers and administration, all of them are related to each other and that relationship will show all those categories. Business to business (B2B) is the first one and it happens when a company uses a network for ordering from suppliers, receiving invoices and making payments to other companies. The next one is Business to Consumer (B2C) which takes place on electronic retailing offerings on a world wide web ( ITunes is a good example of B2C). Another category is Business to Administration (B2A), in this one the relation (or transaction) is between governments and companies, the public administration publish procurements and companies act in response and offer (electronically) what the government needs. Also is the Consumer to Administration (C2A) it is simple because it refers to any transaction that every normal citizens do with the public administration, like paying taxes or registration, in other words obligations that citizens have to cover. The other one is Consumer to Consumer (C2C), it is essentially sales between consumers like on the web page Mercado libre .The last one happens when a client places his need on the //internet// and companies try to get the contract to satisfying them, and this is the definition of Consumer to Business (C2B).

Electronic commerce as everything has pros and cons but those will depend on the point of view of consumers and businesses. The advantages for consumers will be more stores where they can choose the best products at lower prices, because there is more competition between businesses. Likewise, they can shop when they want, so it also is a time saver people don’t have to go to the store to buy products and they don’t have to wait if the store is close, for the reason that internet stores are always open and they offer shipping services. For business the benefits are first a larger market place to sell their products, consequently they can earn more money. And the other one is they reduce costs, if a company want to sell products in other country they won’t have to open another store to do that so it will be cheaper and they will increase their profits. The disadvantages for consumers are primary the increase of fraud risks, //internet// commerce can be insecure and sometimes people lose money thanks to it or because they buy bad products, the reason to explain this is that they cannot see touch or smell what they buy and if they want to return the goods it will be difficult. Also buying on the //internet// is expensive, the shipping and handling will raise prices. For business the disadvantages are initially that they lose sales, not every customer uses the //internet// or likes to use it. And the other is that countries with their protectionism can increase market barriers so it is difficult to make transactions that will be beneficial besides to be known it other countries is difficult.

To conclude, with the development of the Internet the exchange of information is at this moment extremely rapid. Companies have realized this reality and use d the Internet as an instrument to develop their businesses. E-commerce is now a way to conduct all kinds of business transactions online instead of going into a store. It provides convenience for people and it helps industries to purchase materials that they will need to make goods or provide services at sometimes lower costs and without the need of having to speak to someone personally. Ecommerce is now a part of everyday life in the business world, the increase of production, benefits and profits thanks to it are important market results so even with disadvantages companies and customers will prefer using the world wide technologies and the intangible market over not using it at all. **TOTAL SCORE: 3.5/ 3.5 **