| Electronic Commerce or e-commerce is the | | | | products can be sold sell over the global |
| trade of products and services by means of | | | | Internet, sellers have the potential to |
| the Internet or other computer networks. | | | | market their products or services globally |
| E-commerce follows the same basic principles | | | | and are not limited by the physical location |
| as traditional commerce that is, buyers and | | | | of a store. Internet technologies also permit |
| sellers come together to swap commodities for | | | | sellers to track the interests and |
| money. But rather than conducting business in | | | | preferences of their customers with the |
| the traditional way in shopping stores or | | | | customer's permission and then use this |
| through mail order catalogs and telephone | | | | information to build an ongoing relationship |
| operators - in e-commerce buyers and sellers | | | | with the customer by customizing products and |
| transact business over networked computers. | | | | services to meet the customer's needs. |
| | | | |
| E-commerce offers buyers maximum convenience. | | | | E-commerce however has some drawbacks. |
| They can visit the web sites of multiple | | | | Consumers are hesitant to buy some products |
| vendors round the clock a day to compare | | | | online. Online furniture businesses, for |
| prices and make purchases, without having to | | | | example, have failed for the most part |
| leave their homes or offices from around the | | | | because customers want to test the comfort of |
| globe. In some cases, consumers can | | | | an expensive item such as a sofa before they |
| immediately obtain a product or service, such | | | | purchase it. Many people also consider |
| as an electronic book, a music file, or | | | | shopping a social experience. For instance, |
| computer software, by downloading it over the | | | | they may enjoy going to a store or a shopping |
| Internet. | | | | mall with friends or family, an experience |
| | | | that they cannot duplicate online. Consumers |
| For sellers, e-commerce offers a way to cut | | | | also need to be reassured that credit card |
| costs and expand their markets. They do not | | | | transactions are secure and that their |
| need to build, staff, or maintain a physical | | | | privacy is respected. |
| store or print and distribute mail order | | | | |
| catalogs. Automated order tracking and | | | | In the existence of these few disadvantages |
| billing systems cut additional labor costs, | | | | e-commerce has opened new horizons to |
| and if the product or service can be | | | | versatile the modern age. It puts away time, |
| downloaded then e-commerce firms have no | | | | energies, labor and money. |
| distribution costs involved. Because the | | | | |