E commerce refers to the buying and selling of products or services over electronic systems through Internet and other computer networks. The most popular medium in which e-Commerce is conducted is the internet. It combines a range of process such as:
Electronic Data Interchange (EDI)
Electronic mail (E-mail)
World Wide Web (WWW)
Internet Applications
Network Applications
It does not include transactions over telephone, fax or any payments made online for transactions whose terms were negotiated offline or by physical means.
Some common applications related to electronic commerce are the following:
Email
Enterprise content management
Instant messaging
Newsgroups
Online shopping and order tracking
Online banking
Online office suites
Domestic and international payment systems
Shopping cart software
Teleconferencing
Electronic tickets
Traditional and Electronics Business Transaction. The business processes are broadly divided into five main categories namely:
· Market product and services
· Sell and deliver products and services
· Process payments
· Manage relationship
· manage the enterprise
Type of E-Commerce
The three Type of e-commerce are:
Business-to-Consumers (B2C)
Business-to-Business (B2B)
Business-to-Government (B2G)
B2C e-commerce is unlikely to be of much use in the near future in Bangladesh because of low per capita income, a weak infrastructural and legal environment, lack of trust between business and consumers. B2C for cross border trade is also limited by the factors suggested for the domestic front. In addition, non-availability of international credit cards, foreign currency remittance restrictions, delays and informal payments at customs clearance even for small value and quantity items will discourage B2C.
Business to Consumer (B2C)
Where enterprises sell directly to the customer, often cutting out wholesalers or retail outlets. B2C is the most commonly understood form of internet businesswww.muktobazaar.com most successful trading has been with standard products such as CDs, Books, Software, downloadable music etc.
Business to Business (B2B)
It is larger, growing faster. This includes procurements of raw materials and supplies, liaison with contractors, sales channels, servicing customers, collaborating with partners, integrated management with data and knowledge.
Business to Government (B2G)
Here business trade directly with government offices and agencies for public procurement (e.g. supplies for hospitals, school and other government contracts.
Consumer to consumer (C2C)
Online transaction between private individuals. There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay’s auction service is a great example of where person-to-person transactions take place everyday since 1995.
Benefits of E-Commerce or Advantage of E-commerce
The benefits of e-Commerce are many and many. Some of them include:
Operation: Round the clock operation is an expensive proposition in the brick and mortar world while it is natural in the click and conquer world
Global reach: The net being inherently global, reaching global customers is relatively easy on the net compared to the world of bricks
Cost of acquiring serving and retaining customers: It is relatively cheaper to acquire new customers over the net. Thanks to 24 X 7 operation and its goal reach. Through innovative tools of push technology to retain customers, loyalty with minimal investments.
Dies-intermediation: Using the net one can directly approach the Customers and suppliers, cutting down the number of level sand in the Process, cutting down the costs.
Improved customer service to your clients: It results in higher satisfaction and more sales
Power to provide the ‘best of both the worlds: It enhances traditional along with internet tools.
E-Commerce in Different Sector in Bangladesh
Banking on the Web (Online Banking)
Online Shopping
Web Hosting, Domain
Online cards, gifts
Pay Bill
Education
Etc.
