Electronic commerce (electronic commerce or e-commerce) is the distribution, sale, purchase, marketing of goods and services that rely on electronic systems, such as the internet, television, or other computer networks.
Ecommerce involves the transfer of funds and electronic data exchanges, management systems and data collection Online Sales automatically. E-commerce is one of the businesses that are most often cultivated by people in Indonesia because it provides promising benefits.
Types of E-commerce
There are several types of e-commerce that are most often chosen, including:
E-commerce business to business (B2B)
This type of B2B business is carried out by people or parties who have mutual interests in running a business, where both of them know each other and know the business processes they are doing.
Usually, this type of B2B is carried out continuously because both parties benefit from one another and there is mutual trust. An example of a B2B business is when two companies hold an online sale transaction, as well as payments available using a credit card.
E-commerce business to consumer (B2C)
Type of B2C e-commerce is business conducted between business people and consumers. For example, producers sell products to consumers online. Here, the producer will do business by marketing their products to consumers without feedback from consumers to do business again. That is, producers only market products or services, while consumers are only buyers or users.
E-commerce consumer to consumer (C2C)
The type of consumer-to-consumer e-commerce is carried out between consumers and consumers. For example, consumers from a producer will resell products to other consumers.
Consumer to business E-commerce (C2B)
Type C2B is a business between consumers and producers. The business is carried out by consumers to producers who sell products or services. For example, the consultant will notify the details of the desired product or service online to the producers. Later, producers who know the request will offer products or services that consumers want.
Benefits of E-commerce
There are several benefits of e-commerce, namely:
- Facilitate communication between producers and consumers.
- Facilitate the marketing and promotion of goods or services.
- Extending the reach of prospective consumers with a broad market.
- Facilitate the sale and purchase process.
- Facilitate payment because it can be done online.
- Facilitate information dissemination.
There are many advantages to getting from e-commerce. One of them is selling products or services online without having to set up shop or big offices like what offline businesses do as a place of business. Only by utilizing the internet network, you can already market products or services to consumers whenever and wherever.
Another advantage is the ease of communication between sellers and buyers. In terms of goods distribution, it is also far more profitable because you do not need to pay high fees to carry out promotions. Only by using the internet network, you can already market your product or service extensively to the community.
Thus reviews of e-commerce, benefits, and benefits. An e-commerce business is one promising business so you don’t need to hesitate to try it. If you already have a plan to build an online store, but don’t know how to start it, you can rely on e-commerce enabler services.
Lack of E-Commerce
While the disadvantageare in two aspects, namely:
- Weakness in technical terms
- If there is poor emplacement, there can be weaknesses in security, reliability and existing system standards
- The change / development of the software industry is very fast
- If there is a problem with bandwidth, IT failure can occur
- Difficulties in system integration
- There was a problem with system compatibility
- Disadvantages in terms of non-technical
- The high cost of making / building an E-Commerce system
- The level of customer confidence is lacking on E-Commerce sites
- It is difficult to ensure security and privacy in every transaction online
- Lack of feeling in buying and selling activities
- This application continues to grow very quickly
- There is still no cheap and safe internet access in a particular country.
- Fraud Disadvantage
- Direct financial loss due to fraud. A fraudster transfers money from one account to another or he has replaced all available financial data.
- Theft of valuable confidential information. The disturbance that arises can reveal all the confidential information to parties who are not entitled and can result in a large loss for the victim.
- Loss of business opportunity due to service disruption. This error is a non-technical error such as a sudden power outage.
- Use of access to sources by unauthorized parties. For example, a hacker who successed to break a bank system. After that he transferred a number of other people’s accounts to his own account.
- Loss of trust from consumers. This is because of a variety of factors, such as business intentionally carried out by other parties who are trying to bring down the company’s reputation.
- Unexpected losses. Caused by intentional disturbances, dishonesty, improper business practices, human factor errors, human factor errors or electronic system errors.
E-Commerce (Electronic Commerce) is all commercial-based activities as a form of business facilities carried out through electronic devices. More specifically, e-commerce is done with the support of an internet connection. In other words, we can easily understand e-commerce as a digital business transaction.
Why is E-commerce Important?
Today, e-commerce is an important element in business life. The digital era that requires everything to be effective and efficient makes electronic commerce a business that must be pursued. The internet is a reliable source of information so that brand owners must be able to reach their potential customers through this route. In fact, the website is an important indicator that describes the credibility of a brand. Without playing in the digital realm, a brand will require far more effort to reach the market.
E-commerce is a business that is growing rapidly and is one of the backbone of the trade industry in the digital era. By understanding the basics of e-commerce and the importance of this business, we can begin to plan our own e-commerce business. The convenience offered is in accordance with what is needed by today’s society.