Electronic Commerce and Its Effective Way to Earn Cash

The word e-commerce is derived from electronic commerce. It is a new way to earning and creating your own business. In technical aspects, the business of e-commerce is basically the same as that of a regular traditional business that uses the modes of buying and selling as their mainframe transactions. Doing business online is considered by making as the most convenient way to earning huge profits and income.

Convenience is the general idea of e-commerce. Just imagine doing some online window shopping just to find the right goods and products that you want to buy. The factor that makes traditional businesses a tedious task is the act of finding a good working location, designing the work site and ensuring that the construction process is finished at the defined period. This act requires a lot of time and effort on your part.

With an online e-commerce business, you can now do the task and complete the project in the comfort of an air-conditioned room and in the comfort of your home. You no longer have to deal with the issues of presenting the goods and products to the potential buyer in an appealing location. With the online website, all you have to do is to capture a great image of the goods and products that are being sold and have the option to post it at your website. This decreases the workload and saves you the time in creating that good location where to sell your products and services.

This e-commerce website is also beneficial to the consumer. Your prospect consumer no longer has to go out on the field and find the store that carries their needed goods and products. All they have to do is sit down in front of the computer and search for the brand and model that they want to purchase. Thus, you can have that wider base of products and goods to choose form.

E-commerce businesses help you save additional expenses in terms of overhead costs. You no longer have to pay that extra electricity and water bill just to sell your products and goods. If you base your projects at home, your usually costly overhead is now part of your monthly house expenses and bills. The great thing about online businesses is you get to save from the huge costs of construction and building set-ups.

Most online merchants do not stock the merchandise that they are selling. Some merchants pay a certain fee to have these goods and products safe kept at a warehouse and store. The merchants do not necessarily stock any goods in their homes or offices. They use a warehouse to keep these goods and products.

Automated systems also make the e-commerce business to be more appealing to the online market. Most online businesses use software to create the necessary sales and promotions of their goods and products. The e-commerce business also opens the doors for newer and wider market base. The Internet is a broad spectrum and only those that are willing to work their best will be rewarded proportionally.

The Swift Towards Electronic Commerce

A whole new process has been born, and this is not only the result of the technological evolution, but also the result of market and societal factors, which constitute a highly competitive business environment where the customer has the choice. Electronic Commerce (EC) is the outcome of the fast changes occurring in the telecommunication marketplace, as every company that desires to be a part of the future must try to find ways to renew its offers and produce innovative services while focusing on customer satisfaction. Under this notion, telecom corporations have to work under increasing pressures to produce more and faster, using fewer resources.

Few innovations in human history encompass as many potential benefits as EC does. The global nature of the technology used, the low cost production, the opportunity to reach hundreds of millions of people with a single effort, the interactive nature of the medium, the variety of possibilities, and the resourcefulness and rapid growth of the supporting infrastructures-especially the Web-result in many potential benefits to organizations, individuals and the society in general. These benefits are just starting to materialize in some countries, but they will increase significantly as EC continuous to grow. It is not surprising that some maintain that the EC revolution is just “as profound as the change that came with the industrial revolution.”

Electronic commerce has a number of benefits. First, EC expands the marketplace to national and international markets. With minimal capital outlay, companies today can easily and quickly locate more customers, find the best suppliers in the industry and the most importantly suitable business partners worldwide. For example, in 1997, Boeing Corporation reported savings of 20% after a request for a proposal to manufacture a subsystem was posted on the Internet. Second, electronic commerce allows reduced inventories and overhead by facilitating “pull”-type supply chain management. In a pull-type system, the process starts from customer orders and uses just-in-time manufacturing. The pull-type processing enables expensive customization of products and services, which provides competitive advantage to its implementers. Other benefits of e-commerce include improved image, improved customer service, new-found business partners, simplified processes, compressed cycle and delivery time, increased productivity, eliminating paperwork, expediting access to information, reduced transportation costs, and increased flexibility.

Since the Internet is not owned by anyone and its regulatory authority is still debated, it is considered by many to be the only medium that is still truly free. Therefore, not the same costs exist, compared to the mediums of radio, television, or publications. Thus, it is possible that EC can act not only as a selling system that management needs to view the advent of a sales opportunity, but also as the medium with which purchases are made. Telecommunication companies can use the Web in order to directly communicate with resellers and provide them with the needed information about the products that have been purchased; which saves both time and expense in terms of the way that enquirers are made and orders placed. At the same time, EC can increase employees’ productivity by 100%. Since less time would be spent for filling-in paperwork, employers will spend the extra time to find new customers, increasing their personal sales volume and direct their efforts in better servicing the already existing customers thus increasing the level of satisfaction and reduce the switching effect.

Electronic Commerce Commonly Known As E-Commerce

The process of buying and selling of products or services online is termed as Electronic commerce commonly known as E-Commerce. Developing, marketing, selling, delivering, servicing and paying everything can be under this process. Because of the extensive usage of internet now days the quantity of trade that is done online has increased. Commerce is used in electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange, inventory management systems and automated data collection. World Wide Web is the major tool and is used at least once in the transaction and e-mail, mobile devices and telephones are also widely used.

Most of the e-commerce is done in virtual form but also does transportation of physical products. E-tailers are online retailers and e-tail is retail and World Wide Web consists of almost all big retailers. There are different kinds of e-commerce. E-Commerce between two businesses is called Business to Business or B2B which can be either open to all or for specific qualifiers. The e-commerce between businesses and consumers is termed as Business to consumer or B2C. Here the buyer is directly in contact with the business like online shopping. There is no presence of intermediary service in most of the cases. E-commerce involves the sales and the transfer of data to enable the financial transactions of businesses.

Some applications where e-commerce is used are Document automation, domestic and international payment systems, group buying, instant messaging, enterprise content management, teleconferencing, electronic tickets, etc. Data integrity and security are burning issues in electronic commerce.

International trends:

As the usage of internet has increased drastically the business models also changed to the same extent with the help of e-commerce and are not confined to a certain country. This has increased the competition for advertising industry to grab the interests of the customers. If we take the developing countries china is the fastest growing economy in this field. They have made the consumers comfortable shopping online. E-commerce has emerged as a vital tool to hold the customers and to sell worldwide.

Effect of E-commerce on markets and retailers:

The internet has facilitated the customers to do a product research and find the best price for any product online there by created a price competition among various companies. The industry structure of book shops and travel agencies has been influenced by e-commerce because of the increased online shopping. This helped the larger companies to grow as they can give best prices which can be afforded by smaller companies.


There are two channels for distribution which are ‘pure click’ and ‘brick and click’. Many companies have shifted to these two channel systems.

Pure Click: These companies do not exist as a firm. They purely work through the website. Such companies should maintain their e-commerce websites with utmost care as the customer service is of great preference here.

Brick and Click: These companies already exist as a firm and they add a website for online business. These companies doubted initially that the relationship status with their offline retailers, agents or their own stores would be in peril but finally internet found its way to their distribution channels after witnessing the business generated by their online counterparts.