Impact of E-commerce on Businesses

E-commerce is that the process of managing online financial transactions by individuals and corporations. This includes business-to-business (B2B), business-to-consumer (B2C) and business-to-government (B2G) transactions. The main target of e-commerce is on the systems and procedures whereby financial documents and knowledge of all kinds are exchanged. This includes online MasterCard transactions, e-cash, e-billing, e-cheques, electronic invoices, order, and financial statements. E-commerce is especially concerned with the technologies that enable EDI-type functionality on the web. The broad definition considers an electronic transaction to be the sale or purchase of products or services, whether between businesses, households, individuals, governments, and other public or private organizations, conducted over a computer-mediated network. The products and services are ordered over those networks, but the payment and therefore the ultimate delivery of the great or service could also be conducted on- or offline. The narrow definition considers an online transaction to be the sale or purchase of products or services, whether between businesses, households, individuals, governments, and other public or private organizations, conducted over the web. The products and services are ordered over the web, but the payment and therefore the ultimate delivery of the great or service could also be conducted on-or offline. Concerning the processes that need to be included many countries want to limit the definition to the purchasing and selling aspect incorporated within the above definitions, many others want to incorporate other sorts of business processes, like marketing and advertising. Developing countries also will favor a definition that has business activities that transcend purchasing and selling, given the restrictions that a number of those countries face in conducting online payments. Much of the interest and therefore the literature has focused on B2B and B2C electronic commerce and most of the statistical indicators have also been in respect of those two forms.

By: Khushboo

Birla School, Pilani