Skip to main content

Features of Electronic Commerce




  1. Ubiquity: E-Commerce is ubiquitous, meaning that is available just about everywhere at all times. it liberates the market from being restricted to a physical space and makes it possible to shop from your computer system (such as your desktop). The result is called a market space. From consumer point of view, ubiquity reduces transaction costs - the cost of participating in a market. To transact, it is no longer necessary that anyone spend time and money travelling to a market. At a broader level, the ubiquity of e-commerce lowers the cognitive energy required to complete a task.
  2. Global reach: E-Commerce technology permits commercial transactions to cross cultural and national boundaries far more conveniently and effectively as compared to traditional commerce. As a result, the potential market size of e-commerce merchants is roughly equal to the size of world's online population.
  3. Universal standards: One strikingly unusual feature of of e-commerce technologies is that the technical standards of the internet and therefore the technical standards for conducting E-Commerce are universal standards i.e. they are shared by all the Nations around the world.
  4. Interactivity: Unlike any of the commercial technologies of the 21st century, with the possible exception of the telephone, E-Commerce technologies are interactive, meaning the allow for two way communication between merchants and consumer.
  5. Information density and richness: The internet vastly increases information density. It is the total amount and quality of information available to all market participants, consumers and merchants. E-Commerce technologies reduce information collection, storage, communication and processing costs. At the same time, these technologies increase greatly the accuracy and timeliness of information, making information more useful and important than ever. As a result, information becomes plentiful, cheaper and of higher quality. Information richness refers to the complexity and content of a message.
  6. Personalization: E-Commerce technologies permit personalization. so merchants can target their marketing messages to specific individuals by adjusting the message to a person's name, interests and past purchases. The technology also permit customization. merchants can change the product or service based on user's preferences or prior behaviour.
Labels:

Comments

Post a Comment

Popular Post

What is COVID-19 ?

COVID-19 is a disease caused due to the infection of novel coronavirus. The first case of COVID-19 disease was founded at Wuhan, China in December 2019. It also named as severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). COVID-19 is the most widely spread disease ever in the world. In most cases it infects the respiratory system that causes fever, dry cough, and shortness of breath. Previous : What is the difference between coronavirus and COVID-19 ?
Post a Comment
Read more

EDI and Business

Organisation that Uses EDI     1) Wal-Mart : An EDI link between Wal-Mart and one of its suppliers, Seminole Manufacturing Co. cut the delivery time of Seminole slacks by 50%. This resulted in a 31% sales increase of these slacks in the first 9 months after the link was established.   2) General Motors : General Motors have integrated EDI Electronic funds transfer at 30% of its assembly plants. Shipping receipts are sent electronically from the GM plant to an Electronic Data System (EDS is subsidiary of GM) computer center where they are matched against electronic invoices and purchase orders.   Suppliers group the shipping receipts, and one payment is made. This single payment may represent dozens of different shipments to different plants. These payments are also performed electronically via Electronic Funds Transfers.   3) J C Penney : Sales of Stafford suits jumped 59% after JC Penney linked up with their supplier Lanier Clothes. EDI allowed Penney to quickl...
Post a Comment
Read more

EDI Maturity Model

The development of EDI within an organisation or a trade sector goes through a number of stages. Saxena and Wagenaar suggest a three stage EDI maturity model as a part of a three-way analysis of EDI development in organisations, trade sectors and nations.  Figure 2.20 shows the concept of EDI maturity with a six-stage maturity model, and links it to the opportunities for competitive advantage. The stages of EDI development as represented in the model are:  Stage 1:Discovery : The first stage in EDI development is the discovery stage. Discovery can be by an organisation choosing to adopt EDI to gain competitive advantage or to solve an administrative problem.  Stage 2: Introductory : This stage requires investment hardware and software but, atleast significant, will be the time commitment in establishing the parameters of the electronic trading relationship. This stage, on its own, does not result in any cost saving or efficiency gain. there are direct costs in computer ...
Post a Comment
Read more