Introduction
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. It consists of electronic retailing, electronic data interchange and electronic fund transfer. The main goal of e-commerce is to reduce cost, lower the product cycle time, faster customer response and deliver the better quality service. In the present time, E-Commerce is an emerging concept which describes the process of buying and selling or exchanging of products, services and information through the Internet. In Nepal too, there are many popular E-Commerce sites which are providing many online selling and buying services. Nowadays, we can order food from our Mobile phones or buy clothes or even sell our old television through the Internet. It is a modern business methodology that addresses the different drawbacks of traditional commerce. So, E-Commerce refers to the paperless exchange of business information using different information systems.
Technology used in E-Commerce
E-commerce is driven by Internet Technology. It’s a modern business concept and uses many different technologies. Some of them include:
a) E-mail
b) Fax
c) Online catalogues and shopping carts
d) Electronic Data Interchange (EDI)
e) Online Payment Gateway
f) Online Security Tools
g) Information sharing and distribution Protocol
h) And different Web services
Traditional Commerce vs. E-Commerce
As we know, 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.
Similarities
a) Both want to make profit.
b) Both aim to deliver a high-quality product or service.
c) Both want to serve a large number of customer.
d) Both try to quickly deliver products and services.
Differences
a) E-commerce customers expect shorter fulfilment time.
b) E-commerce customers must understand web-based technologies.
c) E-commerce provides a global audience.
d) Orders in E-commerce are processed without human interaction or travel to a store location
E-Commerce practices in Nepal
Now in Nepal too, you can sell and buy any type of goods and services such as mobile phones, laptop, air ticket, pay electricity bill through online services. There are many popular Nepali online shopping sites such as daraz.com.np, nepbay.com, BhatBhatenionline.com, Metrotarkari.com, kinmel.com.np, hamrobazaar.com, muncha. com and many more. You can buy online and pay through different local payment. Gateway like e-Sewa, Khalti or cash on delivery mode.
Below are some of the E-commerce trends in Nepal
a) Practice of sending gifts
b) Trending free classifieds and online market web portals
c) Showcasing over internet/online shopping
d) Get latest Products from International Shopping portals
e) Social Media Selling Platforms
Benefits and Limitations of E-Commerce
E-Commerce and its associated technology have brought many changes in our daily lives. We don’t’ need to spend the whole day to pay an electricity bill. Now, we can do this just within a minute. We don’t need to bargain in shops. We can compare the prices in different e-commerce sites and choose the best one.
Advantages of E-Commerce
a) Faster buying/selling procedure, as well as easy to find products.
b) Buying/selling anytime and anywhere
c) As there are no geographical limitations, can deliver service globally
d) Does not required physical stores
e) Low operational costs and better quality of services
f) No need of physical company set-ups.
g) Easy to start and manage a business. One can sell online through social media as well.
h) Customers can review the comments and compare in different sites without moving around physically.
Limitations of E-Commerce
Though E-Commerce has many benefits, it also has some limitations which are listed below:
a) Lack of personal touch. We cannot touch the goods physically
b) We cannot do any transaction without Internet access device. So, it is heavily dependent on Internet technologies
c) Not all goods can be purchased online
d) Easy to set up so anyone can start e-commerce site. We need to be careful about the quality of product and service delivery
e) Security issues of customer’s information
f) Not everyone is connected to the Internet so we cannot accommodate all the people
g) Technical failures can cause unpredictable effects on the total processes
Types of E-Commerce
E-commerce can be run in different models. Here, we discuss the three basic types of E-Commerce
a) Business-to-Consumer (B2C)
The most common type of E-Commerce is Business-to-Consumer. B2C establishes the electronic business relationships between a business organization (merchant) and final consumers. It corresponds to the retail section of e-commerce, where traditional retail trade normally operates.
b) Business-to-Business (B2B)
Business-to-Business (B2B) e-commerce is conducted between companies. Individual customer cannot buy from this type of e-commerce. Producers and wholesalers typically operate with this type of electronic commerce.
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