Electronic commerce facts for kids
Electronic commerce more well known as e-commerce, consists of the buying or selling of products via electronic means such as the internet or other electronic services. This type of trade has been growing rapidly because of the expansion of the Internet.
History of E-Commerce
The need for electronic commerce emerged from the need to use computers more efficiently in banks and corporations. With the increasing competition there was a need amongst organizations to increase customer satisfaction and information exchange. Electronic commerce started with the introduction of electronic funds transfer (EFT) by banks. Over time many variants of EFTs within banks were introduced like debit cards, credit cards and direct deposits.
Types of E-commerce
There are 5 common types of E-commerce:
- Consumer to business E-commerce
- Business to business E-commerce
- Business to consumer E-commerce
- Consumer to consumer E-commerce
- Intra organizational E-commerce
Advantages of E-commerce
- It can help increase profits; it can increase sales and decrease costs.
- It can help organizations do business 7 days a week and 24 hours a day.
- It can help organizations have customers all around the globe and not be limited to a specific region.
- It helps organizations bring higher return on advertisements, if managed properly.
- It helps organizations identify new suppliers, partners and customers.
- It increases flexibility and ease of shopping for the customer.
- It can help in low operational cost.
- It can provide personalized product and customer customization.
- Shoppers are given a broader range of products to choose from online.
Disadvantages of E-commerce
- The buyer cannot touch or feel the product online.
- The customer has to wait for delivery of their product.
- Perishable goods bought online can get spoiled during delivery.
- It is difficult to know when an online site is safe to use.
E-commerce in India
The e-commerce market in India is estimated to grow from $10 billion every year to between $ 70 - 260 billion every year by 2025.
It is also estimated that the e-commerce market is about 57% from small towns and the balance from the largest metros. The most popular use of e-commerce is on travel websites, which is done by about 70% of all e-commerce consumers in India.
There are challenges to e-commerce companies operating in India - including some reluctance of consumers to pay for goods or services online. Some companies are trying to get around this problem by providing cash-on-delivery as a service to their consumers.
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Electronic commerce Facts for Kids. Kiddle Encyclopedia.