ECommerce

Notes
Program Name- Master of Business Administration (MBA)
Course Name- Legal Aspects of Business Sem- I
Unit Number- 4 Unit Name- Information Technology Act, 2000
Topic Name – E-Commerce
Introduction:
E-commerce means using the Internet and the web for business transactions and/or commercial
transactions, which typically involve the exchange of value (e.g., money) across organizational
or individual boundaries in return for products and services. Here we focus on digitally enabled
commercial transactions among organizations and individuals.
E-business applications turn into e-commerce precisely, when an exchange of value occurs.
Digitally enabled transactions include all transactions mediated by digital technology and
platform; that is, transactions that occur over the Internet and the web.
Content:
E-commerce
E-commerce (electronic 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 (B2B), business-to-consumer

(B2C),
consumer-to-consumer or consumer-to-business.
The terms e-commerce and e-business are often used interchangeably.

There are several benefits that the internet provides for SMEs, among them:
Globalization: Electronic commerce allows us to offer products and services to people

anywhere in the world.
Coverage: Millions of users daily seeking information on the Web and a large percentage of
them and buy online, users have access to any information about products, features, availability
and price.
Accessibility: In the online world, the consumer has access to credits and purchasing a product
at all times.
Reduced costs: Having an e-commerce business saves on personnel, physical space and
supplies. For example, paper is saved. While one had to print before most advertisements for
publicity campaigns, today one can achieve a powerful Online Presence.
Communication: The Internet gives business owners the opportunity to receive comments,
requests, complaints or praise from customers. This is a contribution because it helps one
understand the tastes and trends of the market, which is constantly changing. Through analyzing
buyers’ online behavior, the company can grasp a better understanding of the public’s interest
and their buying habits. For example, business owners can tell at what times and from what
locations they are buying the most from.
Disadvantages of e-Commerce
Running a business that is e-commerce is not always rainbows and unicorns. There are unique
challenges to this business model — learning about them will help business people navigate the
choppy waters and avoid common pitfalls.
Lack of Personal Touch: Some customers appreciate the personal touch they offer when
visiting a physical store by interacting with the sales associates. Such personal touch is especially
essential for businesses that sell high-end products as customers will want to buy the products
and have an excellent experience during the process.
Lack of Tactile Experience: No matter how good a video is made, customers still can’t feel and
touch a product. Not to mention, it’s never an easy task to deliver a brand experience that could
often be including the sense of touch, taste, smell, and sound via the two-dimensionality of any
screen.
Product and Price Comparison: With online shopping, customers can compare several
products and find the least price. This forces many businesses to compete on price and reduce
their profit margin, reducing the quality of products.
Need for Access to the Internet: This is obvious, but don’t forget that the customers do need
access to the Internet before purchasing from any business! As many eCommerce platforms have
the features and functionalities which require a high-speed Internet connection for an optimal
consumer experience, there’s a chance that companies are excluding visitors who have slow
internet connections.
Credit Card Fraud: Credit card frauds are a natural and growing problem for online businesses.
It can lead to many chargebacks, which result in the loss of penalties, revenue, and a bad
reputation.
IT Security Issues: More and more organizations and businesses have fallen prey to malicious
hackers who have stolen information of the customers from their databases. This could have
financial and legal implications, but it also reduces the company’s trust.
All the Eggs in One Basket: E-Commerce businesses rely solely or heavily on their websites.
Even just some minutes of downtime or technology glitches could be resulting in a substantial
revenue loss and customer dissatisfaction.
Complexity in Regulations, Taxation, and Compliance: Suppose any online business sells to
its consumers in different territories. In that case, they’ll have to stick to the regulations in their
own countries or states and their consumers’ places of residence. This could be creating a lot of
complexities in accounting, taxation and compliance.
Summary
Undoubtedly, e-commerce provides a great opportunity for SMEs. It is a way for them to
strengthen their offering, reach a wider public, and provides valuable analytics on customers.
The task of every company that wants to sell online is to invest in solid online infrastructure
meeting quality requirements, such as site design, payment methods, product availability,
security, ease of purchase, delivery options, warranty and service aftermarket.
There’s no doubt that the ability to sell online has made a number of businesses profitable and
viable. Just like all the other business models, eCommerce also has its pros and cons. It’s
essential to get a proper handle on the pros and cons so individuals can be informed when
making their strategic decisions.
Self-Assessment Questions
1. Which of the following describes e‐commerce?
A. Doing business electronically
B. Doing business
C. ale of goods
D. All of the above

2. Which one of the following is not one of the major types of e-commerce?
A. C2B
B. B2C
C. B2B
3. What are the four types of e-commerce?
4. What are e-commerce and its benefits?
5. What are the main activities of e-commerce?

ECommerce

Uploaded by

Copyright:

Available Formats

ECommerce

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ECommerce

Uploaded by

Copyright:

Available Formats

Notes

Program Name- Master of Business Administration (MBA)

Course Name- Legal Aspects of Business Sem- I

Unit Number- 4 Unit Name- Information Technology Act, 2000

Topic Name – E-Commerce

These business transactions occur either as business-to-business (B2B), business-to-consumer

The terms e-commerce and e-business are often used interchangeably.

Globalization: Electronic commerce allows us to offer products and services to people

1. Which of the following describes e‐commerce?

A. Doing business electronically

D. All of the above

3. What are the four types of e-commerce?

4. What are e-commerce and its benefits?

5. What are the main activities of e-commerce?

You might also like