E-commerce is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business. applications of E-commerce is various and will be discussed in this essay.
Applications of E-commerce
Retail and wholesale This refers to the selling of goods and other services through electronic stores from business to consumers. These are designed and equipped using a shopping cart model and electronic catalog. E-retailing or online retailing is the selling of goods from Business-to-Consumer through electronic stores that are designed using the electronic catalog and shopping cart model.
Marketing data collection about customer behavior, preferences, needs and buying patterns is possible through Web and E-commerce. This helps marketing activities such as price fixation, negotiation, product feature enhancement and relationship with the customer. Using web and e-commerce, data collection about the following are possible
- Buying patterns.
Finance Customers can check the balances of their savings and loan accounts, transfer money to their other account and pay their bill through online banking or E-banking. There are features like transferring of money from and to their own accounts, paying off bills online and also e-banking. Online stock trading is also another feature of e-commerce.
Manufacturing Some companies form an electronic exchange by providing together buy and sell goods, trade market information and run back-office information such as inventory control. This is by providing buying and selling items together, trading market information and the information of runback office like inventory control. This is a way that speeds up the flow of finished goods and the raw materials among the business community members.
Auctions e-commerce customer to customer is direct selling of goods among customers. It includes electronic auctions that involve bidding system. Bidding allows prospective buyers to bid an item. Customer-to-Customer E-commerce is direct selling of goods and services among customers. It also includes electronic auctions that involve bidding. Bidding is a special type of auction that allows prospective buyers to bid for an item.
Entertainment e-commerce application is widely used in entertainment area also for video cataloging, multiplayer games, interactive ads and for online discussion.
Education In educational training also e-commerce has a major role in interactive education, video conferencing, online class and for connecting different educational training centers.
E-payment is any digital financial payment transaction involving currency transfer between two or more parties. Implementation of electronic payment systems is in its infancy and still evolving. Electronic payments are far cheaper than the traditional method of mailing out paper invoices and then processing payments received.
Digital distribution is the delivery or distribution of media content such as audio, video, software and video games. The term is generally used to describe distribution over an online delivery medium, such as the internet, thus bypassing physical distribution methods, such as paper, compact discs, and DVDs. The term online distribution is typically applied to freestanding products, downloadable add-ons for other products are more commonly known as downloadable content.