E-commerce
E-commerce generally refers to electronic commerce and trade, or electronic business transactions. However, the term is not clearly defined, so it can refer both to specific areas and to electronic sales in general. A common definition by U.S. authors describes e-commerce as the complete electronic handling of all corporate activities via a network.
Forms of e-commerce
In modern e-commerce systems, almost everything a customer needs can be found: From digital goods intended for immediate consumption, such as movies or online games, to conventional goods that can be purchased over the Internet, and numerous services and advanced offers. Typically, all offers are made available via an online store where consumers can view, select, purchase and pay for goods around the clock. Ideally, an enterprise resource planning system enables the store operator to completely automate the sales process, which can include inventory management, customer management and financial accounting, among numerous other options.
Areas of e-commerce
E-commerce is necessarily linked to the Internet. All areas of e-commerce are handled online. At the B2C level, online stores are the primary method of approaching consumers. But further communication with the consumer in the form of after-sales methods such as e-mail advertising or online advertising used in advance also falls within the scope of e-commerce. E-commerce is also playing an increasingly important role in the B2B sector. Business processes can be handled quickly, effectively and cost-efficiently via the Internet. In the B2G area, financial data is exchanged between institutions and companies as part of e-commerce. This facilitates business relationships both nationally and internationally, but is generally associated with security risks.
Efficiency and cost savings through e-commerce
Due to the ever-increasing importance of the Internet, the e-commerce sector is becoming more and more important. On the one hand, this is leading to a change in existing business structures, with more and more companies adapting or converting their offerings accordingly. On the other hand, it makes it easier for new companies to gain a foothold on the market more quickly, since companies that primarily use the Internet as a sales medium can work more efficiently and incur fewer costs. The customer benefits above all from a wide range of products and low prices. As a retailer, only those who work economically to be able to offer products at low cost can survive in e-commerce.
