E-Commerce
— Ecommerce,
also known as electronic commerce or internet commerce, refers to the buying
and selling of goods or services using the internet.
— any
kind of commercial transaction that is facilitated through the internet.
— E.g.
Amazon, Flipkart, eBay, sastodeal, daraz etc.
— Almost
anything can be purchased through e-commerce today.
Types
of Ecommerce Models
a)
Business to Consumer (B2C):
When
a business sells a good or service to an individual consumer (e.g. You buy a
pair of shoes from an online retailer).
b)
Business to Business (B2B):
When
a business sells a good or service to another business (e.g. A business sells
software-as-a-service for other businesses to use)
c)
Consumer to Consumer (C2C):
When
a consumer sells a good or service to another consumer (e.g. You sell your old
furniture on hamrobazar to another consumer).
d)
Consumer to Business (C2B):
When
a consumer sells their own products or services to a business or organization
(e.g. An influencer offers exposure to their online audience in exchange for a
fee, or a photographer licenses their photo for a business to use).
Advantages
of E-commerce
a)
It makes buying/selling possible 24/7.
b)
It makes buying selling procedure
faster, as well as easy to find products.
c)
You can set up an online business even by
sitting at home if you have the required software, a device, and the internet.
d)
There are no geographical boundaries for
e-business. Anyone can order anything from anywhere at any time.
e)
Higher quality of services and lower
operational costs.
Disadvantages
of E-commerce
a)
No guarantee of product quality.
b)
Customer loyalty becomes a bigger issue
as there is a minimal direct customer-company interaction.
c)
Technical failure may affect the
business system.
d)
Anyone can start an online business,
which sometimes leads to scam and phishing sites.
e)
There are many hackers who look for
opportunities and thus an ecommerce site, service payment gateways all are
always prone (liable to suffer from) attack.
M-Commerce
/ Mobile Commerce
— The
online transactions through the wireless handheld devices such as mobile phone,
laptop, palmtop, tablet, or any other personal digital assistant.
— It
does not require the user to sit at the computer that is plugged in and perform
the commercial transactions.
— People
can perform several functions such as pay bills, buy and sell goods and
services, access emails, book movie tickets, make railway reservations, order
books, read and watch the news, etc.
— The
term itself was coined in 1997 by Kevin Duffy.
Advantages
of M-Commerce
— Easy To
Use - It is the easiest
purchase where without any disturbance you can search all the online sites and
choose the best among the one.
— More
Access To User Data - Once
a purchase is been done from a store user’s information gets stored. Which can
be used in the future by sending about the deals and offers to the users.
— Time-Saving
- Instead
of physically going to the store’s users can easily select and purchase any
product of any brand and place they want. Saving both the time and energy of
the user.
— Global
Customer Base - If an individual
has a mobile device and internet connection then they are the potential
customer to any platform. you can choose, select and purchase any product from
any place you want.
— Easy
Inventory Management - You
can manage and maintain your inventory levels regardless of how small it is.
Saving all the product database you can easily know what product is available
or not.
Disadvantages of M-commerce
— Smartphone
Limitation - No matter how
useful it is without the use of smartphone user can never access and navigate
the data properly.
— Connectivity
- Without
accessing the internet connections user will not be able to receive any data to
purchase.
— Need
Faithful Shipment Company - You
should tie-up with a good shipping company for delivering your products on time
to the users.
— Security
- Entering
all the details of your bank and security codes. Which sometimes can harm you,
also syncing of data or connecting to unknown WiFi networks may appear risky by
hacking or bypassing your information to others.
Online
Payment
— Making
transactions or paying for goods and services through an electronic medium,
without the use of checks or cash.
— It
helps in sending and receiving the money online, buy air tickets, pay utility
bills, purchase mobile recharge cards, pay school college bills, internet
bills, subscribe newspaper and magazines online, etc.
— E.g.
eSewa Nepal, iPay, Khalti, e-banking, etc.
Advantages
of online payment
a)
Low labour costs - Since online payments
are usually automatic, they have lower labour costs than manual payment
methods, such as cheque, money order and cash.
b)
Convenience for online sales - Online
payment methods allow conveniently selling goods and services online.
c)
Automatic - Online payments can be
automatic, which can be convenient for you and your customers.
d)
Fast transaction speed - Online
transactions quickly provide feedback to you and your customers.
e)
Low risk of theft - After processing
delays, online payments generally go straight into your bank account, so they
have a low risk of theft.
Disadvantages
of online payment
a)
Service fees - Payment gateways and
third-party payment processors charge service fees.
b)
Inconvenient for offline sales - Online
payment methods are inconvenient for offline sales.
c)
Vulnerability to cybercriminals -
Cybercriminals can disable online payment methods or exploit them to steal
people’s money or information.
d)
Reliance on telecommunication infrastructure
- Internet and server problems can disable online payment methods.
e)
Technical problems - Online payment
methods can go down due to technical problems.
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