ECommerce

History
The origins of eCommerce began with the development of the Electronic Data Interchange (EDI) and the Electronic Funds Transfer (EFF) in the 1970’s. The EDI and the EFF allowed connected businesses and organizations to electronically send and receive information such as invoices or purchase orders as well as funds. Originally various formats of EDI and EFT were used which prevented businesses using different formats from being able to electronically communicate. In 1984, a standard format called ANSI ASC X12, was implemented to allow communication between all organizations and businesses. This created a giant web of interconnected organizations all over the world, and revolutionalized international trade everywhere. Businesses could now send and receive information and funds instantly with others regardless of location or distance. In 1991 the internet was first opened to commercial use. In 1992 the emergence of the first “point and click” browser, Mosaic (which was soon adapted into Netscape) allowed for easy access to the Internet. Following this, many websites began to emerge on the internet offering a vast array of various services. 1995 marked the launch of the corporate giants Amazon.com which is America’s largest online retailer as well as the world’s largest auction site Ebay. Today hundreds of billions of dollars are spent every year in ecommerce.

Services Included
 Business-to-consumer (B2C) 
 * It is probably the most popular business type on the internet. It also known as "E-tailing", "Electronic Retailing". Nowadays, many stores have their own website to provide their product information and a way for customers to buy them online. These online stores are like "Virtual Mall". It is a convenience and inexpensive solution for both retailers and consumers. This business type also works for some major corporations and smaller entrepreneurs.
 * Example: Amazon.com (http://www.amazon.com)

 Business-to-business (B2B) 
 * B2B is defined as exchanging between different business partners. Although most of B2B transaction are not required a website, B2B is still important on marketing. Also, B2B includes those companies providing online services to other companies. For example, web hosting websites, online payment solution websites, etc.
 * Payment processing solutions to online stores
 * Example: Moneris (http://www.moneris.com)

 Consumer-to-consumer (C2C) 
 * Online auction sites are the most significant C2C businesses. They provide an environment to let consumers exchange their products online. These websites are normally large and reliable. They usually come with a complete rating and punishment system to each person since consumers may feel unsafe when they buy or sell products from a person they have never seen before.
 * Online auction site
 * Example: Ebay.com (http://www.ebay.com)

 Mixed Services 
 * It is also possible for websites to provide mixed business types. It usually depends on the services they provided.
 * Including B2C, B2B, and C2C
 * Example: PayPal.com (http://www.paypal.com)

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 * C2B: A system for consumers to look for a product or services to suit their needs.
 * P2P (Peer-to-peer): A system for different computers to exchange information (software, music files, dollar amounts, etc.).
 * Note: PayPal.com is also a P2P business website.

Advantages
 Access the global marketplace 
 * The Internet spans the world, and it is possible to do business with any business or person who is connected to the Internet. Simple local businesses such as specialist record stores are able to market and sell their offerings internationally using e-commerce. This global opportunity is assisted by the fact that, unlike traditional communications methods, users are not charged according to the distance over which they are communicating.

 Easier Business Administration 
 * With right software, store inventory levels, shipping and receiving logs, and other business administration tasks can be automatically stored, categorized and updated in real-time, and accessed on demand.

 Lower Cost of Doing Business 
 * Reduce inventory, employees, purchasing costs, order processing costs associated with faxing, phone calls, and data entry, and even eliminate physical stores. Reduce transaction costs.

 Allowing customer self service and customer outsourcing 
 * People can interact with businesses at any hour of the day that it is convenient to them, and because these interactions are initiated by customers, the customers also provide a lot of the data for the transaction that may otherwise need to be entered by business staff. This means that some of the work and costs are effectively shifted to customers; this is referred to as 'customer outsourcing'.

 Shrinks the Competition Gap 
 * Reduced marketing/advertising expenses compete on equal footing with much bigger companies; easily compete on quality, price, and availability.

 Unlimited Market Place and Business Access 
 * The Internet gives customers the opportunity to browse and shop at their convenience and at their place. They can access your services from home, office, or on the road, 24 hours a day, 7 days a week. The Internet allows you to reach people around the world, offering your products to a global customer base.

 Workflow Automation 
 * Shipping, real time inventory accounting system which adjusts stock levels and site, location availability instantaneously. Secured, automated registration verification, account entry and transaction authorization features.
 * Banking and accounting features customized for pre-approved third party direct sales, vendor, consignment or internal transfer transactions.

Time For Delivery Of Physical Products
It takes time for delivery of products, you have to order online and delivery takes time. E-commerce is often used to buy goods that are not available locally from businesses all over the world, meaning that physical goods need to be delivered, which takes time and costs money. In some cases there are ways around this, for example, with electronic files of the music or books being accessed across the Internet, but then these are not physical goods.

Physical product, supplier & delivery uncertainty
E-commerce purchases are made on trust. This is because, firstly, not having had physical access to the product, a purchase is made on an expectation of what that product is and its condition. Secondly, because supplying businesses can be conducted across the world, it can be uncertain whether or not they are legitimate businesses and are not just going to take your money. Even if the item is sent, it is easy to start wondering whether or not it will ever arrive.

Limited and selected sensory information
The Internet is effective for visual and auditory information: seeing pictures, hearing sounds and reading text. However it does not allow full scope for our senses: we can see pictures of the flowers, but not smell their fragrance; If we were looking at buying a car on the Internet, we would see the pictures the seller had chosen for us to see but not the things we might look for if we were able to see it in person. And, taking into account our other senses, we can't test the car to hear the sound of the engine as it changes gears or sense the smell and feel of the leather seats. There are many ways in which the Internet does not convey the richness of experiences of the world. This lack of sensory information means that people are often much more comfortable buying via the Internet generic goods - things that they have seen or experienced before and about which there is little ambiguity, rather than unique or complex things.

Returning Goods
Returning goods online can be an area of difficulty. The uncertainties surrounding the initial payment and delivery of goods can be exacerbated in this process.

Privacy, security,payment, identity, contract
Many issues arise - privacy of information, security of that information and payment details, whether or not payment details (eg credit card details) will be misused, identity theft, contract, and, whether we have one or not, what laws and legal jurisdiction apply.

Reference

 * http://www.bitpipe.com/tlist/eTailing.html
 * http://www.marcbowles.com/sample_courses/amc/ec1/ec1_3.htm
 * http://www.isos.com.my/ecommerce/advantages.htm
 * http://www.flysyk02.netfirms.com/Ecommerce/History.htm
 * http://www.ecommerce-land.com/history_ecommerce.html
 * http://www.itep.ae/english/educationalcenter/Articles/edi_01.asp