NOTE 1.docx - E u2013 COMMERCE The term e-commerce or...

E – COMMERCE
The term e-commerce or electric commerce refers to a comprehensive system of trading that
uses networks of computers for buying and selling of goods, information and services. In simple
words, e-commerce refers to buying and selling of goods, information and services through
electronic means.
Thus, e-commerce includes buying and selling of
1 . Goods - e.g. digital cameras, music systems, clothes, accessories
2. Information -e.g. subscription to some law site may give access to some court cases
3. Services -e.g. matrimonial services through shaadi.com, placement services through
naukri.com
The European Union website defines e-commerce as a general concept covering any form of
business transactions or information exchange that is made by using information and
communication technology.
According to International Fiscal Association, e-commerce means “commercial transactions in
which an order is placed electronically and goods or services are delivered in tangible or
electronic form. For instance, a digital camera purchased by a consumer from indiatimes.com
which might be delivered to him at his residence, is a good delivered in a tangible form
whereas, a song downloaded from a site like cooltoad.com, is a good delivered in electronic
form.

E – BUSINESS
A broader definition of EC that includes not just the buying and selling of goods and services,
but also servicing customers, collaborating with business partners, and conducting electronic
transactions within an organization
THE DIMENSIONS OF E – COMMERCE
 BRICK-AND-MORTAR (OLD ECONOMY) ORGANIZATIONS/TRADITIONAL E - COMMERCE:
Old-economy organizations (corporations) that perform their primary business offline,
selling physical products by means of physical agents.
 VIRTUAL (PURE-PLAY) ORGANIZATIONS/PURE E-COMMERCE: Organizations that
conduct their business activities solely online.
 CLICK-AND-MORTAR (CLICK-AND-BRICK) ORGANIZATIONS/PARTIAL E - COMMERCE:
Organizations that conduct some e-commerce activities, usually as an additional
marketing channel

ELECTRONIC MARKETS AND NETWORKS
 ELECTRONIC MARKET (E-MARKETPLACE): An online marketplace where buyers and
sellers meet to exchange goods, services, money, or information
 INTRANET: An internal corporate or government network that uses Internet tools, such
as Web browsers, and Internet protocols
 EXTRANET: A network that uses the Internet to link multiple intranets

THE FRAMEWORK OF E – COMMERCE
EC applications are supported by infrastructure and by the following support areas:
 Facilities: a key competitive advantage that ecommerce business have over brick and
mortar is the investment in their physical offices and warehouse. In many cases, a