scope of E-Commerce

 Scope of E-Commerce

 E-Commerce is a general concept covering any form of business transaction or information exchange executed using information and communication technologies ((ICT’s).It includes electronic trading of goods, services and electronic material. It takes place between companies, between companies and their customers or between companies and public administrations.

 

 

 

 Electronic Markets:-

An electronic market is the use of information and communication technology to present a range of offerings available in a market segment so that the purchaser can compare the prices of the offerings and make a purchase decision. e.g. Airline Booking System

Electronic Data Interchange:-
 

It provides a standardized system for coding trade transactions so that they can be communicated from one computer to another without the need for printed orders and invoices & delays & errors in paper handling.
It is used by organizations that make a large no. of regular transactions. e.g. EDI is used in the large supermarket chains for transactions with their suppliers.

Internet Commerce:-

Information and communications technologies can be used to advertise & make sales of wide range of goods & services. This application is both for business to business & business to consumer transactions. e.g. The purchase of goods that are then delivered by post or the booking of tickets that can be picked up by the clients

Electronic Market:  

An electronic market is the use of information and communication technology to present a range of offerings available in a market segment so that the purchaser can compare the prices of the offerings and make a purchase decision. e.g. Airline Booking System

  •   An electronic market is an information system (virtual market) that provides facilities for   buyer  and sellers to exchange information about price and product offerings.
    • Electronic market also tend to be available only to the intermediaries
    • Electronic Market bring together product, price and service information from many suppliers
    • Electronic Market can thus act as database or catalogue. Electronic market is the virtual representation of physical market.
    • Electronic markets are used for passenger ticket reservations, an airline booking system and in various financial and commodity markets.
    • These markets give the customer (or the customer's intermediary) easy access to comparative data on price, and other attributes, of the goods or services on offer

 Usage of electronic markets

1.      Application has been limited to specific sectors:

2.      Airline Booking Systems

3.      Financial and Commodity Markets

4.      Use is typically via an intermediary (i.e. only for dealers)

5.      Study of Share and stock market

 Advantages :

1.      Customer Advantage: Easy access to comparative price/service information. These markets give the customer (or the customer's intermediary) easy access to comparative data on price, and other attributes, of the goods or services on offer.

2.      Supplier: For supplier it facilitates easy access to market.

3.      Search cost lowered: An effective E-Market increases the efficiency of market; it reduces the search cost for buyers.

4.      Assistance to buyers: E-Market is most effective in assisting the buyer.

5. Awareness of market: The use of information and communication technologies to provide geographically dispersed traders with the information necessary for the fair operation of the market

 

6.      Best negotiations: Easy access to information on a range of competing product offerings reduces the search cost of finding the supplier that best meets the purchase requirement.

 

Disadvantage:

 It becomes difficult for sellers to maintain high price levels, because due to the introduction  of an electronic market search cost is reduced for the buyer. And also second disadvantage for seller is buyer can make easy price comparison.

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