Introduction
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These days, it is very usual to use the Internet. Companies can have different applications and give more services to the consumers. The electronic commerce (Ecommerce) is a important tool for the companies because it provides a new form to buy for the customers. The purpose of this paper is to define what the ecommerce is, explain how it works, and some advantages and disadvantages.
Ecommerce (electronic commerce) is the process of using an electronic medium for transmitting information between organizations. According to Britannica, (2000), ecommerce means "maintaining business relationships and selling information, services, and commodities by means of computer telecommunications networks."
E-commerce is conducted using different electronic methods, but in these days, the more usual media is the World Wide Web.
The Ecommerce is divided in two segments: business to consumer (B2C) where the company sell directly to consumer, and business to business (B2B) where only the companies have sales with each other.
If you want to know the components that are necessary for Ecommerce go to the following page:http://www.lrsmarketing.com/Resources/lrsarticles/howecommerceworks.htm
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A customer orders items from a Web site or pays with credit card or cybercash account (the customer enters account information in the computer). The information is transmitted (usually by modem ) to a financial institution for payment clearance and to the seller for order fulfillment. Personal and account information is kept confidential through the use of "secured transactions" that use encryption technology.
Advantages and Disadvantages of the Ecommerce.
Advantages:
To extend the market: when making sales by the Internet, it is possible to sell anywhere of the world, and the company can have international clients and a world-wide presence
To reduce costs: when making sales with the Internet, companies have great benefits since they can have more gains because they do not have intermediary, that is to say, that the company sells directly to the end user without having the necessity to use third parties.
World-wide presence: when making sales by the Internet, the clients can access to the page from any part of the world during the twenty-four hours of the day.
Information of the client: the companies can have immediate information of the client through forms or emails, and this aids the companies since they can quickly know the necessities of the clients.
To obtain greater speed of answer: when making sales through the Internet, companies quickly know what the client has bought and in few hours or days, is sent the product. Also, the commentaries and suggestions are answered faster by means of email or telephone.
Disadvantages:
Security in the systems ecommerce: we know a great number of frauds by the Internet because many companies do not have security systems when make theirs sales.
Legal aspects: many of the companies that make sales in the Internet do not fulfill legal aspects because they sell stolen products, poor products, and often in bad condition.
Prices: different currencies are handled in the Internet, and many clients prefer to buy through local pages not so they do have problems when paying in another type of currency.
Rights of author: many of the companies that make sales by the Internet do not pay the use of names, marks, and letters.
Fidelity of the client: the clients when making purchases by the Internet change from a site to another one generally, and they prefer to buy in different parts.
Ecommerce will continue to grow and more companies will use this means of sale. Without a doubt some the old model of business will be replaced by the electronic commerce, and the clients will directly handle their requests with the companies and the organizations will have to take care of thousands of clients at world-wide level.
References
Dr Ecommerce. (2001). General questions. [Online]. Available: http://www.drecommerce.com/general.html (2001, April 11).
The Britannica Encyclopedia.(2000). Available: http://www.britannica.com/eb/article?eu=138395&tocid;=0 (2001, April 18).
Torres, Blanca (torres_blanca@yahoo.com). (2001, April 12). Ecommerce questions. E-mail to Alfonso Lankenau (????@campus.ruv.itesm.mx).
Hynes, T., Morgan, P., & Goudie, D. (1999). Business to business e-commerce. [Online]. Available: http://www.ucs.mun.ca/%7Edgoudie/B8205/index.html (2001, April 20).
Webster's ne world. (1999). Diccionario de términos de computación. México: Prentice Hall.
Van Engen, S. (1999). An introduction to "Electronic commerce". [Online]. Available: http://www.du.edu/%7Esvanenge/ecommerce1.html (2001, April 12).
FrontHost.net's. (2001). How ecommerce works. [Online]. Available: http://www.fronthost.com/Ecommerce/E.About/e.about.html(2001, April 9).
Schmeckpeper, L.(2000). "How exactly does ecommerce work"?. [Online]. Available: http://www.lrsmarketing.com/Resources/lrsarticles/howecommerceworks.htm (2001, April 9).