What Is E-Commerce (Electronic Commerce)?
Electronic commerce or online sales, means the exchange of goods and services between two entities over computer networks, including the Internet. The industry gathered at the Federation of electronic commerce and distance selling accreditations.
Electronic commerce is not limited solely to the Internet. Under the interstate commerce companies, is used for many years, networks such as EDI (Electronic Data Interchange). Electronic transactions will also carry over mobile networks. This is called m-commerce (mobile commerce). More specifically, in France since the 1980s, Minitel has allowed the development of electronic business premises services offered on the Internet today.
E-commerce Is Ideal For Distance Selling
When a property is sold through electronic commerce, it is also about distance selling and the laws that apply to prevail.
Among the major goods and services sold via the Internet to consumers (B2C) include:
- Cultural goods: books, CDs and DVDs, etc;
- Technological devices: computer, electronics, hi-fi, etc;
- Tourism and travel: train tickets, flights, rentals, etc.. ;
- The consumer products with supermarkets online;
- Printing products: business cards, brochures, business collateral;
- Products habitat, clothing, childcare, etc.
There are also products sold online exclusively for professionals (Business to Business, B2B) as:
- Wine
- Tracers, plan copiers, scanners, etc. for consultancies
- Construction equipment (meters, lasers, etc.)
- Commercial vehicle (vans, trucks, refrigerated vehicles, etc.)
As commerce systems specially adapted for the Internet world:
- Development of digital photographs;
- Downloading music;
- Auction between individuals;
- DVD rental Internet
- VOD or video on demand.
Finally, many companies offer Internet services, pay or not:
- Online banking;
- Insurance online;
- Press online.
Electronic commerce — another distribution channel for marketing
Different types of relationship in electronic commerce can be distinguished as:
- E-commerce between businesses, often called B2B, English acronym Business to business;
- The e-commerce for consumer, or B2C, English acronym Business to consumer;
- Electronic commerce between individuals, or C2C, English acronym for Consumer-to-consumer. There are websites for sale between individuals;
- The electronic exchange between a company and its employees, often called intranet or B2E, English acronym Business to employee;
- The electronic exchange between private companies and government, often called B2G, English acronym Business to government.
Sales combined with the method RIMA
In the world of electronic commerce, the click and mortar expression (or bricks and clicks) refers to companies that offer complementary ways:
- Sales by Internet (online activities)
- And store sales or sales point (distribution Classic).
These English expressions are constructed by analogy with the term customary brick and mortar (bricks and mortar).
One might therefore translate this phrase in French: click and shop or internet store. FNAC is a classic example.
These distribution models click and mortar models oppose “virtual” where only trade online is offered to customers. Some operators “virtual” seem to redirect part of their distribution strategy to the click and mortar.
E-Commerce – Efficient Multi-Channel Sales
To develop a multi channel strategy, allows combining Internet, digital television, mobile services and the physical stores. The advantage of such a device is to exploit the growing number of consumers using their purchasing multiple interactive channels.
This form of distribution can also face some obstacles inherent characteristics of the electronic channel. Some consumers are reluctant to pay online and would like for example to pay in stores. A multi-channel strategy is also relevant in terms of logistics network using the store as a stock and transforms them into points withdrawals. Several e-commerce players have opted for this strategy: meilleurtaux.com, pixmania, ldlc.com. Some traditional players in the distribution has in turn put more time to combine the electronic channel and physical channel. We can cite as examples, FNAC or Darty.
In all cases the multi-channel strategy requires a specific organization on many functions: logistics, information systems, customer relationships, price, and promotion.
Continued…
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Tags: e-commerce, e-commerce security, efficient multi-channel sales, electronic commerce, what is e-commerce, what is electronic commerce