Chapter 4. What is the e-commerce?

Chapter 4. What is the e-commerce?

For conducting business electronically on a global basis the Internet and the Web are well suited. The e-commerce via the web has created many opportunities for marketing.

What is the electronic business?

The electric commerce (EC) is defined as the exchange of services, goods and money supported by communication technologies, especially the Internet. The exchange occurs between firms, between firms and customers and between customers. The online market has become a major part of the global economy nowadays. Therefore, it has become a strategic necessity for companies to be on the Web.

Business-to-consumer (B2C) EC is defined as the transactions between consumers and businesses. However, EC is also used by organizations to conduct business. They make use of business-to-business (B2B) EC, in which there are transactions between business and business partners like intermediaries or suppliers. There are also transactions that do not involve firms. This EC is called consumer-to-consumer (C2C) EC, like eBay. Another form is consumer-to-business (C2B) EC. With C2B consumers offer products, services and labor to companies.

The mobile commerce (m-commerce) is defined as an electronic transaction or information interaction that is made using a wireless, mobile device and mobile networks. This transaction must lead to the transfer of real value in exchange for goods, services or information. The m-commerce trend is the result of the increased use of the mobile devices.

Through social media, organizations try to influence the social networks of their visitors to create a relationship or create other value. This has become a trend and is referred to as social commerce. Because of the Internet and the different trends, organizations have more data and can better understand each individual consumer.

E-government is defined as the use of information systems to provide organizations, citizens and other governmental agencies with information about public services and to enable interaction with the government. We can consider three different relationships when it comes to e-government:

  • Government-to-citizens (G2C) EC
    This includes interactions between local, state and federal governments and their citizens.
  • Government-to-business (G2B) EC
    This includes business relationships with all levels of government.
  • Government-to-government (G2G) EC
    This includes electronic interactions between different levels of a government within a country or interactions between countries.

What is business-to-consumer EC?

Because of the global marketplace, companies face increased competition in all markets. Therefore, they have to position themselves to be able to compete in the EC area.

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