E-Commerce

Chapter's Outline

  • E Commerce and it's Technology
  • Traditional Commerce vs E Commerce
    • Benefits
    • Disadvantages and limitations
  • Types of E Commerce
    • B2B
    • B2C
    • C2C
  • E Commerce in Nepal
  • M Commerce and E Commerce
  • Online Payment

E-Commerce Basics

Ecommerce

E-Commerce basically refers to electronic transactions such as buying, selling and exchanging of goods, services and information over computer communication network such as the Internet.

Technology Used in Ecommerce

E-commerce is driven by Internet Technology. It uses many different technologies such as Email, online marketing, online payment, electronic data interchange, inventory management etc

Traditional Commerce vs. E Commerce

E-commerce is completely worked in a digital and an online mode whereas traditional commerce is done offline and through in person or face to face.

SN Traditional E-Commerce
1 Face to Face consumer interaction. Screen to face customer interaction.
2 Processing of transaction is manual. Processing of transaction is automatic.
3 Limited to particular area. Unlimited to particular area.
4 Limited time accessibility. Unlimited time accessibility.
5 Goods can be inspected physically before purchasing. Goods cannot be physically inspected physically before purchasing.
6 Instantly delivery of goods. It takes time to delivery of goods.
7 Can purchase goods on credit Cannot purchase goods on credit.

Advantages of E-Commerce

  • Time Saving
  • Large number of options for goods and it's price
  • Home delivery
  • 24/7 Market accessibility
  • Global Market etc

Limitations of E-Commerce

  • Internet service is required
  • Less secure
  • Knowledge of digital device is required
  • Low privacy of customer's details.

Types of E Commerce

B2B

Business-to-Business (B2B) e-commerce is conducted between companies. Individual customer cannot buy from this type of e-commerce.

Example: Alibaba

B2C

Business-to-Consumer is conducted between merchant companies and individual consumers. This is the most common e-commerce type.

Example: Flipkart, Amazon

C2C

Consumer-to-Consumer (C2C) e-commerce platform provides opportunities for individual consumers to buy or sell goods or services online.

Example: Fiveer

E-Commerce Practice in Nepal

People in Nepal can buy or sell goods or service online though various sites such as :

  • Daraz.com.np
  • Nebay.com
  • Hamrobazzar.com
  • sastodeal.com
  • etc

M-Commerce

M-Commerce refers to the process of buying and selling of goods and services through smart phones, tablets or personal digital assistants (PDAs).

Advantages

  • Easy to use
  • Very wide reach
  • Easy to target customers according to their location, etc
  • Low budget required to run M-commerce

Disadvantages

  • Setup cost is very expensive.
  • Internet service is not available everywhere.
  • Security issue

Online Payment

Online payment refers to the payment for buying goods or services through the Internet using different online payment gateway.

Different Forms of E-payment in Nepal

Credit/Debit Cards Payment

ATM

POS (Point of Sale)

Internet Banking

Mobile Banking

QR Pay

Digital Wallet

Some General Knowledge

Credit Card is Introduced by Nabil Bank in 1990
ATM is introduced by Himalayan Bank Ltd. in 1995
Internet banking is introduced by Kumari Bank Ltd. in 2002
Mobile banking is introduced by Laxmi Bank Ltd. in 2004