E-commerce



 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.

In B2C model, business E-Commerce website is the main platform where all the business transactions take place between a business organization and consumer directly. Amazon. com is a good example of B2C e-commerce.

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.


In this model, the product is first sold to wholesaler who then sells the product to the final customer. As an example, a wholesaler places an order from a company's website and after receiving the consignment, sells the end product to final customer who comes to buy the product at wholesaler's retail outlet. Alibaba.com is a good example of B2B e-commerce.

c) Consumer-to-Consumer (C2C)


Consumer-to-Consumer (C2C) type of e-commerce is conducted between consumers. Generally, these transactions are conducted through a third party, which provides the online platform where the transactions are actually carried out. Hamrobazaar.com is a good example of C2C website in Nepal. Website following C2C business model helps consumer to sell their assets like residential property, cars, motorcycles etc. or rent a room by publishing their information on the website. Website may or may not charge the consumer for its services. Another consumer may opt to buy the product of the first customer by viewing the post/advertisement on the website.

M-Commerce 
M-commerce (Mobile commerce) is the extended version of e-commerce. It refers to the process of buying and selling of goods and services through wireless handheld devices such as smartphones, tablets or personal digital assistants (PDAs). It is also known as next-generation e-commerce. This includes purchases on websites or apps, paying for travel, hotel, events or bills or any type of commerce that is conducted using a mobile device. 


Typical examples of M-commerce are 
a) Purchasing airline tickets 
b) Purchasing movie tickets 
c) Restaurant/Hotel booking and reservation 
d) Top-Up Charges 
e) Balance Enquiry 
f) Utility Payment 
g) Fund Transfer 

Online Payment
After purchasing something from buyer, we need to pay money. Online payment or E-payment is one of the major components of an e-commerce transaction. It refers to the payment for buying goods or services through the Internet using different online payment gateway.


Different modes of Electronic Payments 
a) Credit Card 
b) Debit Card 
c) Smart Card 
d) E-Money 
e) Electronic Fund Transfer (EFT) 
f) E-Cheque

Likewise, different forms of e-payment in Nepal include 
a) Credit Cards (introduced by Nabil Bank in 1990)
b) Debit Cards (all commercial banks) 
c) Automated teller machines (introduced by Himalayan Bank Ltd. in 1995) 
d) Electronic fund transfers at points of sale (EFTPOS) 
e) Internet banking (introduced by Kumari Bank Ltd. in 2002) 
f) Mobile banking; (introduced by Laxmi Bank Ltd. in 2004). 
g) Digital Wallet such as e-sewa, Khalti etc. 
h) Cash on Delivery (CoD) – if you don’t have any online payment system then you can pay cash when you receive the product from delivery person.

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