Electronic commerce is a business model in which an automatic network, taking place mostly through the internet. The process includes information, buying, and selling goods, services electronically. However, it is not just about buying and selling; it is about innovating electronically, communicating, discovering knowledge, and then collaborating. Electronic business is influencing an essential share of the world, offering commercial, trade, and people. It is undoubtedly enlightening our quality of life and transforming industries. It is necessary to have an understanding of electronic commerce, its benefits, and some of the limitations.
There are three groups of electronic business, namely, business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer (C2C). With the rapid growth of the automated market, the struggle in traditional electronics (Alsaad, Mohamad & Ismail, 2017). the business became gradually fierce, and the income space was inadequate. The attraction of extra consumers to shop online, several companies started to grow social marketing in electronic business, which was the latest model of electronic business termed as a social business. The most exciting electronic commerce submission in current years has been the occurrence of social and enterprise social systems. From online society, these networks are overgrowing and delivering much latest electronic commerce enterprise, revenue models, and commerce models. A social system is a social entity comprised of nodes associated by links such as hobbies and friendships. Communal networking delivers and hosts a webspace for the society of people to construct their homepage free.
The most important trait of electronic business is that it enables the formation of fresh business models. A commerce model shows how to create revenue and value. Numerous automatic commerce models are possible (Subramanian& Overby,2017) reliant on the company and industry, which exist business as well as proposed ones. Models comprise a value proposition, which is an account of the benefits of using the detailed model both to customers and then to the organization.
Drivers in electronic commerce are the significant invention of the ordinal and technology revolutions, which allows companies a constant increase in both profit and growth. Revolutions will enable the digitalization of (Kushevsky, Fainshtein & Martinsons, 2017) produce, information, and services. A significant drive in electronic commerce is the varying business environment—the quick change to a technological breakthrough, globalization, social changes, and more. The different business location forces the organization to reply. However, the company must regularly transform and re-engineers its function. Electronic commerce, according to its driven characteristic it can offer a much-needed strategic so service can compete better.
The effect of electronic business on efficiency market that is gauged through survival of the use of arbitrage spatial occasion. Arbitrages spatial represent the exact amount of efficiency market than it does cost distribution and used since it has to accounts for the operation costs of transaction across distance and unobserved produce heterogeneity.
Among the systems of electronic business is a webcast network that allows automated contact to old substantial markets. Standalone electric marketplace; together, methods can afford traders with prolonged to discover and implement with each other through layout space, and permits traders to control trade closely at any time. This modification assists us to separate the effects of those devices on efficiency. Therefore, electronic business reduces the quantity of opportunity arbitrage but improves the ability of the arbitrageurs’ to detect and exploit those to remain. Generally, the electronic business helps(Kushevsky, Fainshtein & Martinsons, 2017) buyers and sellers not only improving the efficient market but also assisting arbitrageurs in utilizing arbitrage opportunities quickly.
Electronic commerce delivers supplies with an opportunity of lower distance as supposed by the buyer from online. Electronic commerce might mitigate banners for cross-border requests by designing a website that simplifies the pursuit of the similarity of products and sellers across countries. Electronic commerce might minimize (Subramanian& Overby,2017) the price for banners by overcoming time banners deal express delivery and reorganizing transportation cost: Cross border, electronic business bid opportunities appealing to consumers because of competitive rates, and extensive product collection.
A system of payment during an electronic commerce transaction includes mobile devices configured to provide an electronic wallet storing a payment card, the payment card comprising card payment information, and a card security credential. The system may also include a coordination server configured to receive a request to conduct the electronic wallet.
ELECTRONIC COMMERCE STRATEGIES
A business specifies how one can apply the business model in the market and how it will contribute to the diversity of the company from competition. The strategy defines the expected duration and actions of an organization or part of an organization. The electronic commerce strategy defines business processes that have the ultimate goal of customer satisfaction and company profit. The automated commerce strategy is part of the business strategy and is related to supply chain management strategies customers’ relationship management and enterprise information analysis. Electronic commerce strategy can achieve its goal as a company.
Therefore, for active electronic commerce with a rapid response, the most important thing is that situational analysis or monitoring of the environment(Alsaad, Mohamad & Ismail, 2017). takes place as a continuous process with clearly defined responsibilities for monitoring and acting following knowledge. The strategic goal is a crucial element in the process of determining the strategy.
The electronic commerce strategy covers three dimensions the first one is the business model and defining the way to make profits; the second one is defining what the customer wants on the website. Therefore, it’s necessary to learn how to achieve online interaction with customers and how to determine the target group. The third dimension is an assessment of technological capabilities and options since it is primarily necessary to know which technology is most suitable for the work done to the realization.
BENEFIT OF ELECTRONIC COMMERCE
Information technology has played a vital role in the future development of financial sectors and ways of doing business and some the benefit of electronic commerce to the organization, consumer, and society is that it has several advantages to all members. Besides, the organization may go into foreign and global markets for both selling and buying at better prices. The organization can speed time to market to increase competitive advantage. They can develop an internal and external increase in collaboration. Finally, they can obey government regulations.
LIMITATIONS OF ELECTRONIC COMMERCE
The significant constraint of electronic commerce is that they lack trust in computers and unknown shareholders, resistance to new technology, difficulties in justifying electronic commerce initiative, fear of fraud, costly order, fulfillment privacy issues, integration with other IT system may be complicated and lack of employees who are skilled to electronic commerce.
Increased use of mobile phones and the internet in the distribution of business transactions and global trading requires attention towards electronic commerce security to reduce fraudulent activities. The emerging information technology has brought many changes to a human being. Electronic commerce has satisfied customers in terms of customers’ convenience. An electronic commerce practice is an essential tool to identify the ability relationship between items and users in an automated commerce system. However, it can improve the efficiency of commerce. Therefore, I recommend the adoption of electronic commerce since its convenient, comfortable, and very fast to use, and it also saves time. I can also recommend the need for mobile phone users since they are critical pointer used to evaluate users’ fulfillment and system implementation efficiency.
Electronic commerce is a business model where an automatic network, mostly the internet, takes place. It includes information, buying and selling goods, services electronically. Electronic commerce has changed how businesses conducted. It has seen to help the organization in the full analysis, great functionality, and low-cost tools in offering into new markets in the universal economy markets. Electronic commerce should practice an intensive competition pressure perception and external professional assistance, which alleviates the electric commerce implementation momentum. The organization should make use of an automated commerce system, both internal and external, to remain competitive in the global market.