The Basics Of E-Commerce
Apr 29th, 2010 Posted in business | no comment »E-commerce is defined as the online transaction of business, linking a vendor or seller and a buyer. Various products and services are being offered, but it’s key cornerstones is that the interactions, deal sign-ups and the payment processes happen online. As reported by www.searchcio.techtarget.com, e-commerce can be divided into the following:
E-tailing or “virtual storefronts” on Web sites with online catalogues
Use of demographic information through Web contacts
Electronic Data Interchange (EDI)
Business-to-business purchasing and selling (B2B)
key facet of e-commerce is online shopping. Online shopping was actually started by Michael Aldrich in 1979. E-commerce has made a foothold in the today’s world. Almost in each corner of the globe, people have recognized the advancing importance of e-commerce. It gave rise to electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.
1. Electronic funds transfer – is the computer-based systems that are utilized to execute electronic financial transactions.
2. Supply chain management – is the management of interconnected businesses involved in providing products and services to consumers.
3. Internet marketing – is simply put, the selling of products over the Internet.
4. Online transaction processing – is used to facilitate and manage transaction-oriented applications through data entry and processing.
5. Electronic data exchange – this is the transmission of data among companies or organizations through electronic means.
6. Inventory management systems – it is electronically tracking objects or materials through the use of barcodes, or other automatic identification for the inventory of objects.
Electronic commerce conducted between business is generally called B2B or business-to-business. Meanwhile, electronic commerce carried on between businesses and consumers is called B2C. E-commerce actually falls under the umbrella of e-business and also covers data exchange for the facilitation of the financial and payment part of business deals and transactions.
Discover more about E-Commerce principles and how you can increase your Company Sales with different Online Marketing strategies.
