Prayagasoft - web designer India, Ecommerce developer india, Ecommerce design

Are E-commerce Solutions a Good Business Option?

Information Technology (IT) revolution has been widely touted as having equal if not greater impact on us than the industrial revolution. The application of electronic commerce or e-commerce has led to many changes in the way business is conducted. The understanding of e-commerce solutions, the different options available today, issues regarding web hosting, difficulties in creating a merchant account and the like will be discuused in order to make effective business decisions through e-commerce solutions

What exactly are E-commerce Solutions?

By definition electronic commerce or e-commerce is the purchasing or selling of goods or services and the transfer of funds in any way using electronic communications in inter-company and intra-company business activities.

An e-commerce solution is a solution to conduct business using technology, through an intra-, extra- or Internet solution. There are two types of e-commerce: Business-to-consumer (B2C) e-commerce involving companies selling products or services to individuals; and business-to-business e-commerce (B2B), in which companies sell to other businesses.

E-business, as shown in the Fig 1, by contrast, is an umbrella term that includes e-commerce and refers to the use of the Internet and private intranet to transform a company's value chain (i.e. internal processes, supplier and partner interactions, and customer relationships) with the ultimate goal of creating value for customers. A firm with an effective e-business strategy develops the capabilities needed to improve the flow of information and business intelligence among partners, suppliers, employees and customers. It also aims to solve problems for all parties that comprise its extended value chain.

What are the different types of E-commerce Solutions?

Opportunities evolve rapidly in the e-commerce market segments. Here are the different types of e-commerce solutions you can opt for:

Business-to-business (B2B) e-commerce : B2B is defined as exchanging of structured messages with other business partners over private networks or Internet to create and transform business relationships. B2B e-commerce is companies buying from and selling to each other online. But there's more to it than purchasing. It's evolved to encompass supply chain management as more companies outsource parts of their supply chain to their trading partners. B2B applications aim at improving and simplifying the various business processes within a company and increasing efficiency of transactions among companies that have business relations. The companies use B2B in order to achieve faster and error-free transactions, control and maintain limited inventory, efficient product refill etc.

Business-to-consumer (B2C) e-commerce : B2C ordinarily refers to on-line trading and auctions, for example, on-line stock trading markets, on-line auction for computers and other goods.  B2C e-commerce refers to the emerging commerce model where businesses /companies and consumers interact electronically or digitally in some way. One of the best examples of B2C e-commerce is Amazon.com; an online bookstore that launched its site in 1995. This type of e-Commerce application has grown during the last few years especially after the widespread use of the Internet and the improvement of the services offered over the Internet.  The solution can support effective promotion of products and services to all kinds of potential customers.

Consumer-to-business (C2B) e-commerce : C2B is a rather peculiar Internet phenomenon. An example of C2B e-commerce could be the following. A student wants to fly from London to New York, but has only £200 ($320) in the bank to pay for this round trip. They put up an ad in an Internet C2B site, seeking airlines that are willing to offer the transatlantic round trip for £200 or less. The beauty of the Internet is that it brings together a large number of customers to create a marketplace that a number of airlines (that will have to otherwise fly with empty seats) will be interested in.

Consumer-to-consumer (C2C) e-commerce: C2C is the Internet equivalent of the traditional classified advertising market. You put up an ad on the Internet for other consumers to respond to (similar to a newspaper classified ad). The Internet makes the process of placing an ad cheaper, faster and easier.

Consumer-to-government (C2G) e-commerce, Business-to-government (B2G) e-commerce and mCommerce (Mobile commerce) are other options that are gaining importance today.

Are there E-commerce Options for every business?

People use e-commerce for purposes ranging from fund-raising to selling products. Is there a suitable solution for everyone? Yes! The options range from "easy to set up" and "cost-effective" to comprehensive and expensive. Learning all the options and making the right e-commerce solution choice is the key. You will need to identify an e-commerce solution that suits your need, technology and budget.