Essence, content, significance and trends of e-Commerce development

Essence and content of e-Commerce. The world’s largest Association of local networks to ensure the rapid exchange of information is a global computer network Internet. It was the speed of work that led to the beginning of its use in business processes and the emergence of a new direction in the development of information technologies – electronic business.

E-business – any business activity using global information networks to change the internal and external relations of the company in order to make a profit.

The main directions of modern electronic business

The main component of e-business is e-Commerce, although these concepts are often identified.

E-Commerce – commercial interaction of business entities on the purchase and sale of goods and services (material and information) using information networks (Internet, cellular network, internal local networks of firms).

e commerceThis includes electronic information exchange (Electronic Data Interchange, EDI), electronic capital movement (Electronic Funds Transfer, EDF), electronic Commerce (E-trade), electronic money turnover (E-cash), electronic marketing (E-marketing), electronic banking (E-banking), electronic insurance services (E-Insurance) and the like.

Each type of e-Commerce includes the following operations:

  • establishment of contacts between potential partners;
  • exchange of information;
  • purchase and sale of goods and services;
  • pre – and post-sales support (providing information about the product or service, recommendations on the use of the product, customer advice);
  • electronic payments;
  • delivery management;
  • business administration.

Characteristic features of e-Commerce compared to traditional are:

1. Increasing the competitiveness of the company by reducing the cost of business organization, advertising and promotion of goods (services), customer service, communication support, reducing the time spent on interaction with customers and business partners, expanding pre – and post-sales support;
2. Expansion and globalization of markets: for the Internet there are no geographical boundaries, time constraints, outgoing, and the cost and speed of access to information does not depend on the distance to its source (with the exception of transport costs for the delivery of purchased goods). In this regard, small and medium-sized enterprises can compete successfully in the global market, and consumers have the opportunity to get the widest possible access to goods and services;
3. Personalization of interaction: with the help of information networks, firms can receive detailed information from each client and automatically provide goods and services at mass market prices;
4. Changes in infrastructure by reducing the share or complete exclusion of physical infrastructure (buildings, structures), reducing the number of staff, reducing the number of intermediaries.
5. Creation of new products and services, such as e-delivery and support services, provision of reference services, customer – supplier contact services, etc.

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