Computer Guru

E-Commerce  

E-Commerce basically refers to electronic transactions such as buying, selling and exchanging of goods, services and information over computer communication network such as the Internet. It consists of electronic retailing, electronic data interchange and electronic fund transfer. The main goal of e-commerce is to reduce cost, lower the product cycle time, faster customer response and deliver the better quality service. 

In the present time, E-Commerce is an emerging concept which describes the process of buying and selling or exchanging of products, services and information through the Internet. In Nepal too, there are many popular E-Commerce sites which are providing many online selling and buying services. Nowadays, we can order food from our Mobile phones or buy clothes or even sell our old television through the Internet. It is a modern business methodology that addresses the different drawbacks of traditional commerce. So, E-Commerce refers to the paperless exchange of business information using different information systems.

Advantages of E-commerce

1. Faster buying/selling procedure, as well as easy to find products.

2. Buying/selling 24/7.

3. More reach to customers, there is no theoretical geographic limitations.

4. Low operational costs and better quality of services.

5. No need of physical company set-ups.

6. Easy to start and manage a business.

7. Customers can easily select products from different providers without moving around physically.

 

Disadvantages of E-commerce

1. Any one, good or bad, can easily start a business. And there are many bad sites which

eat  up customers’ money.

2. There is no guarantee of product quality.

3. Mechanical failures can cause unpredictable effects on the total processes.

4. As there is minimum chance of direct customer to company interactions, customer

loyalty is always on a check.

5. There are many hackers who look for opportunities, and thus an e-commerce site,

service, payment gateways, all are always prone to attack.

 

Technology used in E-Commerce

E-commerce is driven by Internet Technology. It’s a modern business concept and uses

many different technologies. Some of them include:

1. E-mail

2. Fax

3. Online catalogs and shopping carts

4. Electronic Data Interchange (EDI)

5. Online Payment Gateway

6. Online Security Tools

7. Information sharing and distribution Protocol

8. And different Web services

 

Traditional Commerce vs. E-Commerce

As we know, E-commerce is completely worked in a digital and an online mode

whereas traditional commerce is done offline and through in person or face to face.

Similarities

1. Both want to make profit.

2. Both aim to deliver a high-quality product or service.

3. Both want to serve a large number of customer.

4. Both try to quickly deliver products and services

Differences

1. E-commerce customers expect shorter fulfillment time.

2. E-commerce customers must understand web-based technologies.

3. E-commerce provides a global audience.

4. Orders in E-commerce are processed without human interaction or travel to a store location.

E-Commerce practices in Nepal

 

Types of E-Commerce

 

1. Business-to-Consumer (B2C)

The most common type of E-Commerce is Business-to-Consumer. B2C establishes

the electronic business relationships between a business organization (merchant) and

final consumers. It corresponds to the retail section of e-commerce, where traditional

retail trade normally operates.

In B2C model, business E-Commerce website is the main platform where all the

business transactions take place between a business organization and consumer

directly. Amazon.com is a good example of B2C e-commerce.

 

2. Business-to-Business (B2B)

Business-to-Business (B2B) e-commerce is conducted between companies.

Individual customer cannot buy from this type of e-commerce. Producers and

wholesalers typically operate with this type of electronic commerce.

In this model, the product is first sold to wholesaler who then sells the product to the

final customer. As an example, a wholesaler places an order from a company's website

and after receiving the consignment, sells the end product to final customer who comes

to buy the product at wholesaler's retail outlet. Alibaba.com is a good example of B2B

e-commerce.

3. Consumer-to-Consumer (C2C)

Consumer-to-Consumer (C2C) type of e-commerce is conducted between consumers.

Generally, these transactions are conducted through a third party, which provides the

online platform where the transactions are actually carried out. Hamrobazaar.com is a

good example of C2C website in Nepal.

Website following C2C business model helps consumer to sell their assets like 

residential property, cars, motorcycles etc. or rent a room by publishing their 

information on the website. Website may or may not charge the consumer for its 

services. Another consumer may opt to buy the product of the first customer by 

viewing the post/ advertisement on the website.

 

4. Business to Administrator (B2A)

B2A E-commerce refers to all transactions between companies and public 

administrator. It is also referred as B2G. It is generally done through the use of website.

 

5. Consumer to Administrator (C2A)

It is the popular E-commerce category; C2A e-commerce encompasses all the 

electronic transactions between individuals and public administration. Examples: taxes 

and scheduling an appointment using an online service. Paying the parking ticket or 

ordering a new government ID. C2A e-commerce transaction must be done online.

 

M-Commerce

M-commerce (Mobile commerce) is the extended version of e-commerce. It refers to 

the process of buying and selling of goods and services through wireless handheld 

devices such as smartphones, tablets or personal digital assistants (PDAs). It is also 

known as next-generation e-commerce. This includes purchases on websites or apps, 

paying for travel, hotel, events or bills or any type of commerce that is conducted 

using a mobile device.

Typical examples of M-commerce are

a) Purchasing airline tickets

b) Purchasing movie tickets

c) Restaurant/Hotel booking and reservation

d) Top-Up Charges

e) Balance Enquiry

f) Utility Payment

g) Fund Transfer

 

Online Payment

After purchasing something from buyer, we need to pay money. Online payment or E

payment is one of the major components of an e-commerce transaction. It refers to the

payment for buying goods or services through the Internet using different online 

payment gateway.

 

Different modes of Electronic Payments

a) Credit Card

b) Debit Card

c) Smart Card

d) E-Money

e) Electronic Fund Transfer (EFT)

f) E-Cheque

 

Likewise, different forms of e-payment in Nepal include

a) Credit Cards (introduced by Nabil Bank in 1990)

b) Debit Cards (all commercial banks)

c) Automated teller machines (introduced by Himalayan Bank Ltd. in 1995)

d) Electronic fund transfers at points of sale (EFTPOS)

e) Internet banking (introduced by Kumari Bank Ltd. in 2002)

f) Mobile banking; (introduced by Laxmi Bank Ltd. in 2004).

g) Digital Wallet such as e-sewa, Khalti etc.

h) Cash on Delivery (CoD) – if you don’t have any online payment system then you can pay cash when you receive the product from delivery person.