Electronic Commerce
Electronic commerce or e-commerce implies two components, electronic, or those transactions which occur using electronic or digital transfer of transaction information and commerce or business. E-commerce today involves almost any transaction except the physical transfer of consumer goods from buyer to seller.
Electronic commerce allows the consumer, utilizing the internet to place orders, purchase, pay invoices using credit cards or electronic checks as well as some other payment types such as PayPal and e-gold and arrange for shipping. The goods can be tracked from the shipping point through various check points to the customer’s doorstep using electronic means.
Customer service regarding the items purchased by electronic commerce is also handled via electronic means wherever possible. With so many electronic commerce aspects now taken for granted, it is surprising to learn that electronic commerce is considered to have begun with the placing of the first banner ad on a website as recently as 1994.
Even prior to that time, though, some forms of electronic commerce existed and were widely used in the 1970’s. For example, automated teller machines, electronic telephone banking and widespread use of credit and debit cards are part of the functions usually considered to be part of the entire combination of activities involved in electronic commerce.
With the growth and then decline of many of the dot com giants, electronic commerce became even more wide spread. As the giants bowed or were driven out of the picture by declining profits smaller companies, seeing the potential for electronic commerce stepped in to fill the void. Amazon.com is perhaps the first and largest of the electronic commerce merchants to remain a household word, in spite of doomsayers about its profitability and viability.
Security for the customers and the retailers as well has continued to be an issue to be solved. Secure areas for transmission of credit card and other payment information (https:), electronic shopping carts and confirmation procedures have helped to raise the security level of electronic commerce, but it still has a long way to go. Unfortunately, if electronic commerce were perfectly safe, it would probably be so cumbersome that no one would be willing to use it.
The enormous potential in electronic commerce has been seen by thousands of entrepreneurs who can set up small electronic commerce sites and become business owners almost overnight. Listing sites such as E-bay provide a substantial measure of security and make rudiments of the electronic commerce sites available to business owners at a minimal cost.
by Nathan.Smarty 19 years ago