Real World Application About Ecommerce

Published Date: 02 Nov 2017

INTRODUCTION

This report will discuss about Electronic Commerce which commonly known as E-commerce. This report contains introduction of E-commerce, short history of E-commerce, real world application about E-commerce, and the future trends relating to the E-commerce.

E-commerce is all of the activity that related to trading mechanism or procedure sales on the Internet (online) or direct selling such as distributing, purchasing, sales, marketing of good and services through electronic systems like television, internet, web2.0 or other computer networks so the seller and buyer are meet through cyberspace, the idea of e-commerce is to utilize internet facility when there is a website that provide "get and delivery" services. E-commerce itself including electronic funds transfer, supply chain management, e-marketing or online marketing, online transaction processing, automated inventory management and data collection system and electronic data interchange.

E-commerce is commonly used for business but it is not only about trading but it also about collaboration with other partnerships. A firm which use e-commerce not only have to aware with the product but it also have to consider about the human resources like management team, on time in delivery time, good services and organization structure, interesting and great website design to attract the customer. Nowadays E-commerce being used by many companies but it also has to maintain their qualities such as a competitive price, provide information about the goods and services.

SHORT HISTORY

E-commerce has revolutionized our lives today most of us have used it. Firstly the idea of e-commerce itself is to helping people to easily make a transaction so you can shop or do transaction in your leisure time, anytime and everywhere. Actually e-commerce is the process of execution of commercial transactions electronically. E-commerce has been introduce since 1970s, the first time e-commerce been introduce to public is in 1991 when electronic used for promotion and advertising in a website and become more popular in 1994s because of the Internet when it open for commercial use. The Internet took a large leap into the modern world with introduction of online payment methods; the two leading companies that are introducing this system are eBay and amazon and they become very successful. Founder of amazon: Jeff Bezos, one month after selling his first book online, he selling the book to every state in the U.S and over 40 other countries. E-commerce allowed easy transaction of order, buy, sell and shipping to public. eBay also showed similar growth by allowed people to buy and sell online. Trading in USA using e-commerce produce sales around $12,2 milliard in 2003 and in 2012 the sales predicted to growth approximately one quarter trillion dollar because of e-commerce. By this humble start, e-commerce has become the fastest growing area of business, moreover with the help of the technology development. E-commerce indirectly giving anyone an ability to doing worldwide market with outstanding results.

REAL WORLD APPLICATION ABOUT E-COMMERCE

E-commerce can be used for business-to-business, business to consumer and consumer-to-consumer.

Business to Business

Is business communication online systems between the manufacturer or partnership and the people involve usually buy in a bulk or grocery to sell it to another. One of the examples of business to business is alibaba.com

Alibaba is a global e-commerce for small businesses this website was founded in Hangzhou, China in 1999. Alibaba is a website that privately owned by alibaba group that has purpose to connecting all importers and exporters around the world and then makes an easy way to do a business transaction online between buyers and suppliers by taking an advantage of the Internet accessible to small businesses, consumers and entrepreneurs. Alibaba.com offers transaction and other internet based services, such as software applications, domain name registration, Website hosting and solutions, email hosting, and technology-related consultation services on various market places and platforms. These are some of website that under alibaba.com: a Chinese platform (www.1688.com) for domestic trade in China; and a transaction-based wholesale platform on the global site (www.aliexpress.com) it is for smaller buyers that want to have fast shipment of small quantities of the goods.

Business to Consumer

Is business communication system between the manufacturer or the seller with the consumer directly through online.

The example of business to consumer is like online banking, apple.com and any others. Take online banking for the explanation. Online banking is a system that allowing people to perform banking activities at home using the internet. This system enable customer to perform all routine transaction like balance enquiries, bill payment, account transfer, offer online loan and credit card application. In Singapore there are some bank that make this services. For example DBS internet banking in Singapore, they corporate with singtel company (mobile devices) so the customer can buy a voucher online every time. This services very helpful because all of the people now does not need to go to the shop or bank to do a transaction, it can be done in anywhere and every time. All of these things create to makes the consumer easier and feel comfort to do shop or transaction even in their busy time so they can do it anytime and everywhere without wasting their time to go to that place because currently many people like the fastest and practice things.

Consumer to Consumer

Consumer to consumer is a business transaction system that is conducted online between consumers who want to sell some particular products to another consumers who are wiling to buy them.

The example for consumer to consumer is a website that called "eBay". EBay is world’s online marketplace which enabling purchases of goods to local, national and international basis with particular, diversity and passionate community of individuals and small businesses. This website offer an online platform where millions of items are traded each day. It is a website that everyone who have the ID or a member on that website can sell their product to another who active on that website also. This website very popular because eBay offer an online platform which is many items or million items are traded every day, they sell many product that not limited to only some countries it mostly all around the world so you can buy product from overseas. Another example is "Kaskus" this website almost similar with eBay. It is a website that made by Indonesia people with the aim for sales goods. So even they are not a truly seller they can sell their products, sometimes it can be a secondhand product or etc. The importance one that we have to notice is if you want to sale something you should become their member first to protect their security.

FUTURE TRENDS RELATING TO THE E-COMMERCE

Nowadays e-commerce becomes really popular in all around the world and used by many people moreover for developed countries even though many people used this, there are still some group of people that still can not believe it due to the security problems especially the older generation and sometimes it is a little bit hard for some people to access e-commerce due to have to connect to the computer network.

Firstly, as we know e-commerce is trading that using Internet so people does not meet directly and it’s need credit card for the payment which is the payment using credit card should be very careful because it will request you a security code that will access directly to your bank account. E-commerce nowadays still does not have a really secure system and for make e-commerce become trustful in the future the people who makes e-commerce should be aware and consider to develop their system, like making a stronger security system by adding more security system to avoid the hacker. For example like making a website that force people to make an ID (become a member) that including their data. So when you login to the web they will ask you about your e-mail and password. In addition if you want to change your password maybe it should made stricter to protect it.

Secondly, using e-commerce need a network system (network connection) to login it to the website sometimes it is difficult for some groups of people who do not have this thing. So maybe in the next few years e-commerce in the future can develop their system to may be access without Internet connection or something like that.

If it develop and they can improve theirs system in the future as it explain above many people will trust e-commerce. The future of e-commerce will be very bright, it can be predicted that many people will change their method of shopping, they will prefer to buy everything through online because it is easier and does not need to waste time to go to the store moreover usually online shopping have cheaper price because they do not need to pay the rent or taxation, staff wages and any others.

CONCLUSION

In conclusion, electronic commerce is a trading of good and services, which need network connection because it is buying through online by electronic system such as computer. The purpose of e-commerce itself is to helping people to makes an easy way to do a transaction in anywhere and every time even in their busy time. In addition there are many companies nowadays that already used e-commerce to sell their goods for example apple.com and any others. E-commerce has a good popularity among the public and it can be predicted that someday every people will use it to shop or make a transaction as a daily activities.