What is E-Commerce ?

DEFINITION : Sharing business information, maintaining business relationships and conducting business transactions using computers connected to a telecommunication network is called E-Commerce.

CLASSIFICATION : CLASSIFIED AS :  BUSINESS TO BUSINESS (B2B)
                                                                  BUSINESS TO CUSTOMER (B2C)
                                                                  CUSTOMER TO CUSTOMER (C2C)

E-Commerce Application Example :

• RETAIL STORES - Books, Music
• AUCTION SITES
• COOPERATING BUSINESSES –Placing orders, paying invoices etc.
• ELECTRONIC BANKING
• BOOKING TICKETS - TRAINS, CINEMA, AIRLINES
• ELECTRONIC PUBLISHING
• FILLING TAX RETURNS WITH GOVERNMENT DEPT.

Advantage of E-Commerce :

• Buying/selling a variety of goods and services from one's home or
  business.
• Anywhere, anytime transaction.
• Can look for lowest cost for specific goods or service.
• Businesses can reach out to worldwide clients - can establish business
  partnerships.
• Order processing cost reduced.
• Electronic funds transfer faster.
• Supply chain management is simpler, faster, and cheaper using e-
  commerce
  - Can order from several vendors and monitor supplies.
  - Production schedule and inventory of an organization can be inspected by cooperating supplier who can in-turn schedule their work.

Disadvantage Of E-Commerce :

•  Electronic data interchange using EDI is expensive for small businesses.
•  Security of internet is not very good - viruses, hacker attacks can paralise
  e-commerce.
•  Privacy of e-transactions is not guaranteed.
•  E-commerce depersonalize shopping. People go shopping to meet others
  - window shop and bargain.

E-Commerce System Architectures: