E-Commerce Chapter 4

E-Commerce Definition and Technologies

• E-Commerce is the process of buying and selling goods and services over digital devices using the internet.
• E-Commerce involves the paperless exchange of business information using various information systems and technologies.
• Technologies used in E-Commerce include Email, Fax, Online Catalog and Shopping Carts, Electronic Data Interchange (EDI), Online Payment Gateway, Online Security Tools, and Information sharing and distribution protocol.

Traditional Commerce vs. E-Commerce

• Both traditional commerce and E-Commerce aim to make a profit, deliver high-quality products or services, and serve a large number of customers.
• E-Commerce customers expect shorter fulfillment times, must understand web-based technology, and can order products without human interaction.
• E-Commerce provides a global audience, whereas traditional commerce is limited by geographical location.

E-Commerce Practices in Nepal

• In Nepal, online shopping sites like daraz.com.np, nepbay.com, BhatBhatenionline.com, Metrotarkari.com, kinmel.com.np, hamrobazaar.com, and muncha.com allow customers to buy and sell goods and services.
• Popular payment methods in Nepal include e-Sewa, Khalti, and cash on delivery.

Advantages of E-Commerce

• Faster buying/selling procedures and easy-to-find products.
• Ability to buy/sell anytime and anywhere, with no geographical limitations.
• Low operational costs and better quality of services.
• No need for physical company set-ups and easy to start and manage a business.
• Customers can review comments and compare products on different sites without moving around physically.

Disadvantages of E-Commerce

• Lack of personal touch and inability to touch goods physically.
• Dependency on internet technologies and potential security issues with customer information.
• Not all goods can be purchased online, and technical failures can cause unpredictable effects.
• Not everyone has access to the internet, limiting the scope of E-Commerce.

Types of E-Commerce

• Business to Consumer (B2C): selling products and services directly to end-users (e.g., Amazon.com).
• Business-to-Business (B2B): transactions between businesses, such as between a manufacturer and wholesaler (e.g., Alibaba).
• Consumer to Consumer (C2C): consumers trade with each other, typically in an online environment.