The Definition of E Commerce
 Custom Search What is the definition of e commerce? E commerce is the the combination of online buying and selling of goods and services, paperless electronic funds transfers. It is also known as electronic commerce, EC, e-tailing, and e-business. E commerce can be faster, more economical for both clientele and seller and green. At some levels it involves the integration of brick and mortar with the virtual world of the web. It makes a truly virtual business possible. As you read about the definition of e commerce, you will notice that it works in both business to business and business to public. It embraces new concepts of marketing like preselling, product launch or Podcasting and webinars.
It is possible to extend the definition of e-commerce to include researching products, services, education, and health care management online. The definition of e commerce dose not always mean collecting money from visitors. Some do business without purchasing anything and yet money is made. The Definition of e Commerce The definition of e commerce is broad as there are many different forms of e commerce. This is because there are many different channels (portals or avenue of service) for customers to become consumers. The year 1991 was the birth of the definition of e commerce when the Internet was opened to commercial use. Within the past few years, the 100 million web site threshold was surpassed. Of course not all are internet based businesses. But those who use the internet for purchases is make up a large and diverse market. As of December 2008, 74% of adults use the internet. The 18-29 year old is the highest using age group. Interestingly of those 50 to 64, 72 percent use the internet. At least 66 percent of internet users have purchased something on the internet. Check out the actual Pew Internet Study and see the other demographics of internet users. Off line direct mail marketing historically has a 2% return. One of the advantages of e-commerce is as high as 38% conversion of customers into happy purchasing customers. Success is dependent on committing to an internet business model. The website becomes the life of the of the business. Many businesses have taken the same attitude as at the time of the invention of the telephone. Back then, many businesses could not see the value of the telephone.Yet today, how many businesses would or even could operate with out some kind of telephony. The internet is the new telephone. It allows for communication on new ways and levels. It allows communication from business to customer, customer to business and customer to other customer and potential customer. The internet makes possible this kind of viral marketing. Elements of e-Business Similar to brick and mortar businesses, e-businesses need to have a product or service. Unlike a brick and mortar business, the website is a combination of store front, marketing, advertising, customer service portal, information services, and place of purchase. Unlike brick and mortar retail business where you can walk in and purchase, most products need to be ordered and shipped. One unique exception is e-zines, information services, graphics, photos and e-books. When the information can be produced in some form of electronic format, then the purchase can be made on the spot. No driving to a business location, no waiting on a teller or customer service, no gas in the car, no auto insurance, no umbrellas and with the exception of a few bad eggs, no problems (hopefully). Order Taking There is usually some kind of on line form where information is provided to make the purchase. Ecommerce Payment Methods Payments are made though electronic connections over secure connections and specialized accounts that accept payments for these. |