E-Commerce

Electronic commerce, commonly known as e-commerce, is a type of electronically enabled transactions between a business and its customers. It involves the buying and selling of goods and services over the Internet. The Internet is the platform that drives e-commerce and presents new opportunities for conducting business. Many businesses and industries applies e-commerce into their traditional commerce as technological advancements create opportunities for reaching out to customers, and enriching products and services. Some of these industries include retail, manufacturing, travel, financial, health, and telecommunications.

Types of E-commerce
The following are four models or approaches to conducting electronic business over the Internet.
 * Business-to-business (B2B): Applies to businesses buying from and selling to each other over the Internet, example SAP.
 * Business-to-consumer (B2C): Applies to any business that sells its products or services to consumers over the Internet, example Amazon.
 * Consumer-to-business (C2B): Applies to any consumer that sells a product or service to a business over the Internet, example Priceline.
 * Consumer-to-consumer (C2C): Applies to sites primarily offering goods and services to assist consumers interacting with each other over the Internet, example eBay.

Advantages of E-commerce
Benefits to Consumer include: Benefits for Business include:
 * Access to broader market for goods and services.
 * More convenient times for shopping.
 * More choices to the customer and lower prices.
 * Quicker delivery of the product.
 * Consumers receive targeted marketing from businesses. Implications.jpg
 * Access to broader market.
 * Reduced marketing costs.
 * Potential for much richer marketing concepts.
 * Quickly reaction to changes in market conditions.
 * Customer convenience likely to result in higher sales that can lead to higher profits.

Disadvantages of E-commerce
Drawbacks to Consumer include: Drawbacks for Business include:
 * Theft of personal data.
 * Inability to handle or try out the product.
 * Need to develop IT systems that are usually more complex and costly.
 * Businesses are vulnerable to hackers, and risks when customer privacy are compromised.

E-commerce vs. Traditional Commerce
Many businesses, especially retail stores, have incorporated a combination of traditional commerce and e-commerce into their venture. For example, Walmart, Target and Kmart all have an online website where customers can shop without having to visit the physical stores. This has led to new terminologies such as clicks and mortar or e-tailers rather  than the traditional bricks and mortar stores.

Privacy Concerns
The primary concerns for e-commerce are privacy and confidentiality. Many customers give out a lot of information when they visit websites for shopping or other business-related activities, and it is expected of companies to provide some level of assurance that their e-commerce systems are secured, and the privacy of personal information is confidentially maintained. Businesses that partake in e-commerce can follow the ten privacy practices outlined in the Trust Service Principles designed by the AICPA and CICA to ensure customers that appropriate steps are followed to secure confidential information.

Trends of E-commerce
E-commerce is changing the way consumers are shopping for products or services and had became creative as with other social networking sites to entice shoppers and create a whole new online experience. Companies are seeing increase in sales revenue from online shopping. For example, showrooming, the practice of examining merchandise or products in a store and then buying it online for a lower price, is growing in popularity among consumers. Also, the much anticipated Cyber Monday helps to show how e-commerce is shaping our lives as we opt to do things online.