General Overview Of Ecommerce Information Technology Essay

General Overview Of E line Information Technology EssayElectronic art is the term used for both type of calling or mercenary transaction that involves the transfer of products, serve and randomness over electronic systems much(prenominal) as the internet and some other computer networks. The trader and customer atomic get along 18 not look to face at any point during these transactions, the fear being conducted remotely, regardless of location.E-commerce covers a range of different types of stage businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and helpings between corporations. It is one of the to the highest degree important aspects of the Internet to emerge. Al close to on the whole big retailers be enter on the World Wide Web.Although some electronic commerce involves the physical transportation of items in one route or another, a large percentage of e-commerce is conducted entirely electronica lly for virtual(prenominal) items, such as access to certain information on a website, purchasing softwargon product or other on-line service.E-business is a superset of e-commerce1, as it is full generally considered to be the sales aspect of e-business. The financing and payment aspects of business transactions are facilitated by the exchange of data.E-commerce stop be in general divided into Business-to-Business electronic commerce (B2B) and Business-to-Consumer electronic commerce (B2C). B2B implies that both give awayers (suppliers) and buyers are business corporations, while B2C implies that buyers are individual consumers.Business-to-business e-commerce differs signifi locoweedtly from business-to-consumer e-commerce. Most B2B commerce is done through negotiated contracts which allow the seller to anticipate and plan for touchstone a buyer will purchase while B2C merchants, on the other hand, sell on a first off-come, first serve basis.1.1.1. B2B e-commerceB2B e-commerc e does not more(prenominal)over consist of the transaction via the Internet, but too the exchange of information to begin with and the service after a transaction. From the purchasing companys point of view, B2B e-commerce is a intermediate for facilitating procurement management by reducing the purchase price and the troll season.2The key players in a B2B e-commerce transaction usually include sell and buying companies, deliverers, and often some type of electronic intermediaries, or third-party service providers. This type of business transaction may take galore(postnominal) forms, still roughly fall into three categories. They classified depending on who controls the merchandiseplace the supplier, the buyer or the intermediary(a) In a Supplier-Oriented Marketplace many buyers face few suppliers.(b) In a Buyer-Orientated Marketplace few buyers face many suppliers.(c) In an Intermediary-Oriented Marketplace many buyers face many suppliers.A) Supplier-Oriented Marketplac eIn a Supplier-Oriented Marketplace customers are offered a wide variety of products and services which go them in their own businesses. The markets involve property, exchanges, auctions and bid systems. Suppliers are offered brand- bran-new market channels in marketing and distribution by apply Supplier-Oriented Marketplaces, as products may be sold presently to customers without the use of intermediaries. in(predicate) practices of this type of business feigning are Dell and Cisco.3Both companies sell their products via the internet. However, there are thousands of other companies that use the Supplier-Oriented model as healthful.Ciscos mainly provides electronic support victimization the internet. Its main practical applications include software downloads, injury tracking and technical advice. Cisco also sells routers, switches and other network interconnect devices. Since the company first began providing electronic support online in 1994 its productivity had increas e by about 200 to 300 percent per year. What is more, the online technical support made it possible for Cisco to reduce technical support provide costs by approximately US $125 million. The internet produce Center also allows its customers to purchase any product over the internet, economic system time for both Cisco and its customers.Cisco has estimated that by putting its application online, the company saves over US $360 million per year as a result of almost completely eliminating distribution, packaging, duplication and printing costs.B) Buyer-Oriented MarketplaceWhen using a Supplier-Oriented Marketplace, buyers have to search electronic hive aways and malls to find and compare suppliers and producers. As this could be a very costly and time consuming mental bidding for buyers, especially those who purchase thousands of items over the internet, they prefer to open their own marketplace, which is cognize as a Buyer-Oriented Marketplace.4An character of such a marketplac e is GEs electronic bidding site which boosts the companys purchasing process.5These types of bidding sites allow suppliers to download drop information from the internet and submit bids for projects. Buyers can more easily pass judgment a suppliers bid and thus may negotiate electronically. As a result, a buyer will accept a bid that trump out meets their requirements. By doing so, they can identify and build partnerships with suppliers valetwide. Their specifications and information can be rapidly distributed to suppliers and consequently, bids are quickly received and compared from a large number of suppliers as to negotiate better prices.C) Intermediary-Oriented MarketplaceThe Intermediary-Oriented Marketplace, as its name suggests, is found by an intermediary company which runs a marketplace where business buyers and sellers can meet. in that location are two types of such business models flat and upright marketplaces. While vertical marketplaces concentrate on one indus trial sphere, horizontal marketplaces offer services to all industrial sectors.The Intermediary-Oriented Marketplace is a torpid business platform which offers classical economical functions of a usual market the only difference is that the participants are not physically present. This business model contains catalogues which present information on products and prices. Consequently, the marketplace makes possible the comparisons and the transparency of the products. much(prenominal) marketplaces can also offer auctions, which can be organized by sellers (where products are sold) or by buyers (in this case, orders are sold). In addition, electronic functions are offered so as participants can negotiate in real time.6An example of an Intermediary-Oriented Marketplace is Buzzsaw7which is a vertical electronic marketplace which concentrates on the grammatical construction industry. A construction project involves many different parties, such as create contractors, builders, architec ts, merchants and the owner of the building many of which are regional sellers. The software that Buzzsaw offers can improve the planning process as well as the communication between the parties involved. Alongside the software, detailed information about the building industry is provided, such as news affecting the building sector or a local weather forecast. Given that the marketplace also provides the option to do business, all relevant products for the building industry can be traded. The Web site also offers search engines so as to find wanted products and buyers and sellers can insert offers and requests on the marketplace.1.1.2. B2C e-commerceB2C e-commerce is basically a concept of online marketing and distributing of products and services over the internet. Many businesses prefer this mode because they can reach more customers, service them better and make more sales while spending less to do so. For the consumer, it is relatively aristocratic to appreciate the importance of e-commerce. Many prefer not to waste time fighting the very crowded supermarkets, and shop on-line at any time in virtual Internet shopping malls, and have the goods delivered crime syndicate now, all from the comfort of their own homes.B2C e-commerce is conducted essentially by three types of business models8(a) Direct Sellers are online retailers that sell directly to customers only over the Internet. There are two types of direct sellers e-tailers and manufactures.E-tailers, such as Amazon.com, ship the products directly to the consumer, wholesaler or manufacturer for delivery, upon receiving an order. They do not have handed-down stores that customers can visit and they do not sell offline.Manufacturers, sell to consumers directly via the internet. They remove intermediaries and establish a direct relationship with the customer. These types of retailers are present on the Web as well as have traditional stores or sell offline through catalogues or mail-order. They are cal led brick-and morter retail businesses because they are merchants with multi-channel distributions supported by online stores. This process has been used for years, for example, catalogue companies such as Dell.com.(b) Online Intermediaries are companies that bring together sellers and buyers to complete a business transaction, in exchange for a percentage of the transactions value. Presently, these types of businesses make up the largest social class of B2C companies. There are two types of online intermediaries brokers and informediaries.Brokers facilitate transactions between sellers and buyers online. Orbitz.com is an example of a popular B2C online broker, which acts an intermediary between a consumer and multiple suppliers of skyway carriers, hotel chains, automobile rentals, and other such companies.Informediary is a non-biased intermediary between those who cede information and those who want it. It can be any business that provides information based products and services within a supply chain. For example, an informediary may gather, store and sell information about a Web site. The information is considered to be valuable to organizations for target marketing, price setting, negotiations, advertising and market research.(c) A adit provides the means of electronic access to Web content, resources and services. A portal typically has a search engine which is the central point to the services provided. The most popular search portal Web sites are Google.com, Yahoo.com and MSN.com. They have a large number of consumers and businesses utilizing their services each day around the world. new(prenominal) services included on these types of websites include e-mail, chat as well as news and entertainment links.1.2. A Brief History of E-commerceE-commerce and its mean have changed a lot over the past 40 years. At first, the term e-commerce meant the performance of commercial transactions electronically, using Electronic entropy Interchange (EDI) and Elect ronic Funds Transfer (EFT), the electronic exchange of business documents and information form one computer to another. EDI originated in the mid sixties and by the mid 1970s was formalized by the Accredited Standards Committee.9The new technology allowed business companies and organizations to send commercial documentation electronically, such as purchase orders or invoices.It was in 1991 that E-commerce became possible, when the internet was opened to commercial use. Since then, e-commerce has experience a rapid intensification thousands of businesses have started online companies and provide online services. Although, it wasnt until 1994 that the internet began to gain popularity among the general public, and by the year 2000 a large number of companies from around the world had already started to offer their services on the World Wide Web. By then, people had given another meaning to electronic commerce the process of purchasing goods and services over the internet using elect ronic communication.10Among the first internet company to allow electronic transactions, Amazon and E-bay are the most notable as they continue to be successful to this day. According to battlefield conducted by internetretailer.com in 2009, the top 10 most famous oecumenical internet retailers are Amazon, Otto, Staples, Office Depot, Dell, Arcandor, Hewlett Packard, Tesco, OfficeMax and Apple.11According to all-rankings.com, the top ten most purchased products online are travel tickets, holidays, books, concert/theatre/festival tickets, clothes, electrical goods, CDs, picture palace tickets, DVDs and music downloads.12