E-COMMERCE What is e- commerce? E-commerce is the process of buying and selling of various products and services by businesses through the Internet. It deals various kind of business concern, from retail site of the consumer, which includes auction. The main focus is to concentrate on business substitutes involving goods and services between various corporations. B2B stands for Business to Business. It consists of largest form of Ecommerce. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler. Dell deals computers and other associated accessories online but it is does not make up all those products. So, in govern to deal those products, first step is to purchases them from unlike businesses i.e. the producers of those products. C2C stands for Consumer to Consumer. It helps the online dealing of goods or services among people. Though there is no major parties needed but the parties will not fulfill the transactions without the program which is supplied by the online market dealer such as eBay.

E-COMMERCE FOR SMALL BUSINESS E-Commerce is a boon to small business firms. Small business in e-commerce can compete with multinational companies through information super –highway. Small business can even surpass big businesses beyond expectations. It has an easy access to reach a wider market globally. BENEFITS OF E-COMMERCE FOR SMALL BUSINESS Business Costs are Lowered Small business does not require a plush office space or staff anywhere. All it needs is a well developed `web site` which might cost about $500 a month. The cost of the site might work out to about less than 10 per cent of its revenue. Since business transactions are handled electronically the staff requirement is minimal. The virtual store also reduces the chances of theft, damage, or breakage of the inventory. E-Commerce is Accessible from Anywhere Anytime Small businesses can have global audience. Shopping is done online by customers. A web marketing can become multi-lingual and suit the global customers. Throughout the 24 hours business can take place in the virtual world because of time variation. A night in India is working hours in the United States. It is convenient shopping 24/7. The cash register is open all day and night, while business owner is sleeping. E-Commerce Strengthens Customer Service The small business web site enables the owner to address each and every customer personally. The computer can tell owner who is a new customer who is a repeat customer. The system can track customers with the latest information on the product benefits or a new launch; also can evaluate customer’s buying habits to improve the marketing techniques.

E-Commerce Develops Customers' Loyalty It is seldom a customer in a shop in real world gets information about the company or on all products range, nor any sample. Whereas in e-commerce virtual shop the customers get every information about the business or can even get a free sample. The relationship with a customer becomes personalized. Also a web site is soft sell and not high pressure selling. The business has an opportunity to sell itself while gently leading the customer to buy its products. Global Brand Promotion Promoting the brand gets easier when millions of potential customers worldwide can visit your website, peruse your inventory and make a purchase. That kind of traffic just isn’t available in a storefront operation! Customer Loyalty E-Commerce promotes customer loyalty. Consumers like shopping when it’s easy, convenient and interactive. Being able to shop whenever they like, wherever they like and paying with a credit card ranks high with them. Remember: a satisfied customer is a repeat customer. Direct Access to Product Information An online presence gives customers instant and direct access to product information, specials and promotions, and practically anything they need to know about the small, business and the services or products you offer. Increased profits By cutting costs and increasing your exposure to potential customers, your bottom line is likely to grow, making it possible to take your business in new directions.

DISADVANTAGES

Technical Disadvantages

 There can be lack of system security, reliability or standards owing to poor implementation of e-Commerce.

 Software development industry is still evolving and keeps changing rapidly.

 In many countries, network bandwidth might cause an issue as there is insufficient telecommunication bandwidth available.

 Special types of web server or other software might be required by the vendor setting the e-commerce environment apart from network servers.

 Sometimes, it becomes difficult to integrate E-Commerce software or website with the existing application or databases.

 There could be software/hardware compatibility issue as some E-Commerce software may be incompatible with some operating system or any other component.

Non-Technical Disadvantages

 Initial cost: The cost of creating / building E-Commerce application in-house may be very high. There could be delay in launching the E-Commerce application due to mistakes, lack of experience.

 User resistance: User may not trust the site being unknown faceless seller. Such mistrust makes it difficult to make user switch from physical stores to online/virtual stores.  Security/ Privacy: Difficult to ensure security or privacy on online transactions.

 Lack of touch or feel of products during online shopping.

 E-Commerce applications are still evolving and changing rapidly.

 Internet access is still not cheaper and is inconvenient to use for many potential customers like one living in remote villages.