Basic Understandings About E-Commerce
Simply put, E-Commerce is ‘Using Electronic Platform for Business Transactions’. It is also called a ‘Virtual Market Place’. Every minute millions of people from all over the world are logging into the Internet looking for some information, for product, services, to look for news, download music, for online shopping and so on. Every individual is looking for something that he would like to obtain or buy online instead of having to go through a physical transaction. Imagine what this means to the business organisations. If they are able to identify and access those individual users who have a specific need or want, they have a ready customer in waiting.
One could wonder whether it is the online community or the technology that is paving way for E-Commerce. The answer is that both these factors are driving the E-Commerce. The technological developments are providing the backbone for business transactions to take place and the growing volumes of users buying online is making it possible for E-Commerce and markets to grow.
E-Commerce has become a major business process for Global organisations and Multi National Companies. Most MNCs depend upon ‘Online selling‘ as well as ‘Online Procurement’ on global scale. E-Commerce has made it possible for them to access global markets as well as source raw materials from across the world. Besides, E-Commerce has brought down the cost of selling as well as cost of procurement drastically adding to the bottom line. In the consumer world, Insurance, banking, airlines and hospitality sectors have stood to benefit from E-Commerce model of selling.
E-Commerce is a reality. Several multiple technologies, platforms, agencies and networks make it possible for E-Commerce to happen. EDI and Online banking and transactions have been the major enablers that have made it possible for business transactions to take place.
It is simply amazing to think that with the click of a button one can buy, sell or affect financial transactions worth millions of dollars in a few minutes. However this is true and E-Commerce is the future.