What is E-Commerce?
E-Commerce is technique to use electronic means of communication to generate economic values/activities including management, facilitation and execution of business and in trade.
Electronic communication is used as the medium through which economic values are designed, produced, advertise, catalogued, inventoried, purchase and settlement of accounts for business. E-commerce is dependent upon the technology
• Hardware
• Software
Benefits of E-commerce
E-commerce enables and facilitates
• Entry of SMEs in global markets
• Reduction in cost of doing business
• Development of new services and goods
• Negotiation and completion of the terms of sale
• Customizing the products
• Inventory and supply chain management
Implementation of E-commerce
Telecommunication technology plays fundamental and vital role in all aspects of e-commerce. E-commerce implements through the following infrastructures.
• Well-developed communication system
• Well-developed web portal
• Development of internet
• Development of new hardware (Pc, modem, phone)
Modes of delivery for telecommunications services
• Via wire
• Via radio (wireless)
Telecommunications via wire or wireless
• Land lines for standard telephony
• Broadband landlines not from telephone companies (cable modem)
Wireless telecommunications deal with national policy of radio spectrum etc
• Cell phones
• Televisions
• Radio
Development of national internet infrastructure:
Internet is growing and a leap medium to maximize the growth of E-commerce:
E-commerce is internet based communication service. Internet disseminate the information (messages) via “packet switching” into discrete packets, those can travel to ultimate destination via different routs for reassembly at the final destination with the speed of light. Packet switching maintains and increases of existing network’s capacity to carry information economically.
Alongside packet switching, the growth if internet switching was accelerated by the enabling of software development
• Easy to use Internet Browser Software
• Search Engines
• Secure payment software
E-commerce services:
Modern telecommunications allow services delivered globally. Areas where services have global competition are:
• Call Centers and “Help desks”
• Accounting
• Translation and Editing
• Entertainment deliverance
• Medical diagnostic services
• Customer ordered merchandise or service “on line” online payments
Banking Sector
A well-developed financial service/ banking sector is essential for the growth of e-commerce. Solutions for the two fundamental issues affecting e-commerce will determine its worldwide growth:
• How customer will make payment
• Ensuring that Goods or Service provider receives payment
Payment mode in E-Commerce
• Credit Cards
• Debit Cards
• Payment to an account owned by the service provider at bank
The use of credit and debit cards to make payment over the internet has raised security concerns.
The need for security has led to new e-commerce services such as secure payment services i.e. pay, Pal etc, which make use of encryption and other security features.
Contributed by Hafiz Muhammad Burhan
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