This is the report of introduction of e-commerce and e-business.

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Introduction of E-commerce:-
It can be defined as,
“The buying and selling of products and services by businesses and consumers through an
electronic medium, without using any paper documents.”
“Transacting or facilitating business on the Internet is called ecommerce.”
“The phrase is used to describe business that is conducted over the Internet using any of the
applications that rely on the Internet.”
“The use of the Internet and the Web to conduct business transactions.”
Electronic commerce or ecommerce is a term for any type of business, or commercial
transaction, that involves the transfer of information across the Internet. It covers a range of
different types of businesses, from consumer based retail sites, through auction or music sites,
to business exchanges trading goods and services between corporations. It is currently one of
the most important aspects of the Internet to emerge.
Ecommerce allows consumers to electronically exchange goods and services with no barriers
of time or distance. Electronic commerce has expanded rapidly over the past five years and is
predicted to continue at this rate, or even accelerate. In the near future the boundaries
between "conventional" and "electronic" commerce will become increasingly blurred as more
and more businesses move sections of their operations onto the Internet.
Electronic transactions have been around for quite some time in the form of Electronic Data
Interchange or EDI. EDI requires each supplier and customer to set up a dedicated data link
(between them), where ecommerce provides a cost-effective method for companies to set up
multiple, ad-hoc links. Electronic commerce has also led to the development of electronic
marketplaces where suppliers and potential customers are brought together to conduct
mutually beneficial trade.
E-commerce is widely considered the buying and selling of products over the internet, but
any transaction that is completed solely through electronic measures can be considered e-
commerce. E-commerce is subdivided into three categories: business to business or B2B
(Cisco), business to consumer or B2C (Amazon), and consumer to consumer or C2C (eBay).
also called electronic commerce.
It is also known as internet retailing.
E-commerce is conducted using a variety of applications, such as email, fax, online catalogs
and shopping carts, Electronic Data Interchange (EDI), File Transfer Protocol, and Web
services. Most of this is business-to-business, with some companies attempting to use email
and fax for unsolicited ads (usually viewed as spam) to consumers and other business
prospects, as well as to send out e-newsletters to subscribers.

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History of E-Commerce:-
History of ecommerce is a history of a new, virtual world which is evolving according to the
customer advantage. It is a world which we are all building together brick by brick, laying a
secure foundation for the future generations.
Ecommerce was introduced 40 years ago and, to this day, continues to grow with new
technologies, innovations, and thousands of businesses entering the online market each year.
The convenience, safety, and user experience of ecommerce has improved exponentially
since its inception in the 1970’s. This article will address some of the key players and
milestones of ecommerce.
History of ecommerce dates back to the invention of the very old notion of "sell and buy",
electricity, cables, computers, modems, and the Internet. Ecommerce became possible in
1991 when the Internet was opened to commercial use. Since that date thousands of
businesses have taken up residence at web sites.
At first, the term ecommerce meant the process of execution of commercial transactions
electronically with the help of the leading technologies such as Electronic Data Interchange
(EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange
business information and do electronic transactions. The ability to use these technologies
appeared in the late 1970s and allowed business companies and organizations to send
commercial documentation electronically.
Although the Internet began to advance in popularity among the general public in 1994, it
took approximately four years to develop the security protocols (for example, HTTP) and
DSL which allowed rapid access and a persistent connection to the Internet. In 2000 a great
number of business companies in the United States and Western Europe represented their
services in the World Wide Web. At this time the meaning of the word ecommerce was
changed. People began to define the term ecommerce as the process of purchasing of
available goods and services over the Internet using secure connections and electronic
payment services. Although the dot-com collapse in 2000 led to unfortunate results and many
of ecommerce companies disappeared, the "brick and mortar" retailers recognized the
advantages of electronic commerce and began to add such capabilities to their web sites.
According to all available data, ecommerce sales continued to grow in the next few years
and, by the end of 2007, ecommerce sales accounted for 3.4 percent of total sales.
E-Commerce applications in bussines:-

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Various applications of e-commerce are continually affecting trends and prospects for
business over the Internet, including e-banking, e-tailing and online publishing/online
retailing.
The applications of E-commerce are used in various business areas such as retail and
wholesale and manufacturing. The most common E-commerce applications are as follows:
 Retail and wholesale:
E-commerce has a number of applications in retail and wholesale. E-retailing or on-
line retailing is the selling of goods from Business-to-Consumer through electronic
stores that are designed using the electronic catalog and shopping cart model.
Cybermall is a single Website that offers different products and services at one
Internet location. It attracts the customer and the seller into one virtual space through
a Web browser.
 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.
 Finance:
Financial companies are using E-commerce to a large extent. Customers can check
the balances of their savings and loan accounts, transfer money to their other account
and pay their bill through on-line banking or E-banking. Another application of E-
commerce is on-line stock trading. Many Websites provide access to news, charts,
information about company profile and analyst rating on the stocks.
 Manufacturing:
E-commerce is also used in the supply chain operations of a company. 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 speeds up the flow of raw material and finished goods among the members of the
business community. Various issues related to the strategic and competitive issues
limit the implementation of the business models. Companies may not trust their
competitors and may fear that they will lose trade secrets if they participate in mass
electronic exchanges.
 Auctions:
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. For example,
airline companies give the customer an opportunity to quote the price for a seat on a
specific route on the specified date and time.

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Impact on markets and retailers:-
The internet is changing the way people do business. This article looks at how e-commerce
has affected the market structures of several companies…...
Economists have theorized that e-commerce ought to lead to increased price competition, as
it increases consumers' ability to gather information about products and prices.
E-commerce is playing an increasingly important role in many markets. The new
technologies it brings affect not just prices but also other components of market structure,
with differing effects across businesses. Those that are able to operate at low cost (and pass
some of this cost advantage on to their customers) can gain market share and profitability,
while higher-cost firms will be hurt, perhaps fatally. The research discussed here concerns a
few industries, but similar shifts are likely to have occurred in other markets.
The power of e-commerce allows geophysical barriers to disappear, making all consumers
and businesses on earth potential customers and suppliers. E-bay is a good example of e-
commerce business individuals and businesses are able to post their items and sell them
around the Globe.
Individual or business involved in e-commerce whether buyers or sellers rely on Internet-
based technology in order to accomplish their transactions.
E-commerce is recognized for its ability to allow business to communicate and to form
transaction anytime and anyplace. Whether an individual is in the US or overseas, business
can be conducted through the internet.

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Advantages:-
 Time saving : is the reason number one for using electronic commerce. People
now have access to their money and what they need to buy from home and work all
from a desktop computer.
 Consumers have an access to a wider range of products :
company now can use internet sites as shop fronts, so consumers can browse, buy
from many different sellers and making it easier to find exactly what they are looking
for.
 Allows small businesses to mix with the big business online :
with a relatively small cost, a new business can set its self up to conduct transactions
online.
 Provide benefits to suppliers of goods and services : company
now can target a wider variety of consumers even take the product or service
international, allowing them a means of supplying their goods to places that were
before unreachable.
 Business is Open 24 x 7 x 364 7/8 : it works while you play or sleep.
They are open for business every hour of the day, every day of the week, every week
of the year. Your receptionist, greeter and front people are always working for you
because they are your website. They do not complain about the long hours.
 Messages spreading (world wide market space) : advertising on
the web can make a big or small firm’s promotional message reach out to potential
customers all over the world quickly and small cost as an online marketing strategy.
 Help protect against frauds and theft losses : electronic payments
can be easier to monitor than payments are made by cheques.
 Thinking Outside the Globe : selling something made by someone else,
shipped by yet another and the money handled by yet another is the heart of the
advantages e commerce brings to the business world. You can even employ an
international staff. Some work you may need done can be more effectively done by
companies or even individuals in other countries.

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Disadvantages:-
 Purchase to Delivery : when making a purchase at a brick and mortar
business, you get the product when you pay for it. On the web, there may be a time
lag from purchase to actually being able to consume. The consumer will have to wait
for delivery of physical goods.
 Inability to Feel the Physical : it is nearly impossible to sell things like
furniture and tires online. Furniture is something people like to sit on and know the
feel. Tires need to be installed once purchased. The old tires also need to be disposed
of. In both instances, there is a need for real actions to fulfill the reason for the
purchase. That’s why things like food, jewelry, antiques etc. can never turn to E-
commerce.
 Trouble recruiting and retaining employees : the company needs
well-expert and skilled staff to keep up and create the ecommerce facilities of the
company. Many companies favor to outsource their improvement and programming
tasks to decrease labor costs.
 Consumers feel less confident with their credit card
numbers : most of the consumers are still not confident in providing their credit
card numbers for making payments on the website while shopping on the Internet.
 Not every company can take the benefit : some of the small
companies may not be able to take the benefit of E-commerce for example the lack of
expertise and lack of technology. The legal environment in which E-commerce is
conducted is full of unclear and conflicting laws. It should be noted that mostly these
disadvantages stem from the newness and rapidly growth of the technology.