8.1 e-commerce concepts and features

The term e-commerce (Electronic Commerce) refers to all types of business operations and transactions that are executed through Internet and other electronic technologies.

E-commerce is a virtual business environment in which information moves electronically via Internet related to buying, selling, transportation of goods and services.

Features of E-commerce

1) Ubiquity

E-commerce is widespread, that is, it is available everywhere always. It sets free market from being restricted to a physical space and makes it possible to shop from computer (such as desktop, laptop). The result is called a market space.

2) Global reach

E-commerce technologies enable a business to easily reach across geographic boundaries around the earth far more conveniently and effectively as compared to traditional commerce.

3) Universal standards

Universal Standards are standards shared by all the nations around world. These are technical standards of Internet for conducting e-commerce. It gives all the ability to connect at the same “level” and it provides network externalities that will benefit everyone.

4) Interactivity

E-commerce technologies permits two-way communication between customer and sellers which makes it interactive.

5) Information density  

Information density means total amount and quality of information available over Internet to all market buyers and sellers. Internet vastly increases information density. Information density offers better quality information to consumer and merchants.

6) Personalization 

E-commerce technology offers personalization. Personalization means designing marketing messages according to particular individuals by customizing it as per customer personal details like name, interests, and past purchases record.