WHY DO USE ICT IN E-COMMERCE?
E-commerce or Electronic Commerce consists of the distribution, sale, purchase, marketing and supply of information about products or services through the Internet.
Information: the page will function as a permanent advertisement of the company. New markets- There may be potential clients in other countries, or in the same country, who do not have local access to the product that the company is offering a Favoring the client one that will not have to mobilize to acquire the product.
Ease of Purchase: the purchase of the product from home or office, and receive them at home which is a great convenience.
Customer support: Doubts, Clarifications, technical support.
Competitive advantage: You must be at the forefront of technology, the company that does not participate in electronic commerce, does not have the necessary tools to compete in all types of commerce.
According to goods or services that are marketed, E-Commerce is classified as: Indirect electronic commerce: consists of acquiring tangible goods that then need to be physically shipped using traditional distribution channels.Example: books, merchandise, etc. Direct electronic commerce: in this case, the order, payment and shipment of the goods are intangible, that is, they take place online.Example: software, music, etc. According to the parties that make the transaction, E-Commerce is classified into: Company-Company: example: a company orders raw materials from its suppliers over the Internet.
Company-Consumer:refers to a company that sells its products or services over the Internet.Example: clothing, records. Government-Citizen: more than business itself, it refers to procedures or taxes over the Internet.
Government-Business: in countries such as the United States, transactions and arrangements between them are made via the Internet.
Consumer-Consumer:this is known as Internet auctions, where the consumer offers to another, without mediating with a company, goods and services.Transactions are made faster.Its application today is within the reach of small and medium-sized companies, since the existing IT infrastructure can be used. Its application requires changes in organizational culture. Aspects to take into account to implement E-Commerce: Strategy analysis: First we must do an analysis on the Internet as a means of communication to determine the strategies to follow. The characteristics of the Internet as such are: Creativity Notoriety Segmentation To be successful in the network, efforts must be focused on only 4 aspects: One: Develop an excellent product or service Two: Design a commercially effective website. Technical aspects of hosting on the Internet. Four: attract qualified traffic to the website.
The concept of electronic business (e-business) refers to the impact of electronic commerce on business processes. Therefore e-business involves reorganizing the company so that it has the ability to exchange goods, services, money and knowledge digitally, which is, using Internet-based Information and Communication Technologies (ICT).
With the emergence and arrival of the revolution, technologies and processes have been implemented, such as big data, data mining, artificial intelligence, which Pakistani entrepreneurs are not prepared or technician to be able to take on this type of trade, a challenge. which led to a slowdown in the processes of operation and exchange since, since the lack of technology is available, the response times are slower because of not having an adequate big data process has led to the commercial potentialities not being easily identified potentialities In terms of profiles, data management has not been as efficient as expected, in terms of no artificial intelligence, we are not competitive with developed countries such as the United States, China, Japan, Korea have been implementing and accelerating their processes and have incorporated digitization at each stage of the internalization operations of their products.
Advantages and disadvantages of e- commerce
The advantages of electronic commerce are very numerous compared to traditional commerce. It also offers many opportunities for retailers or merchants not only to have an additional sales channel, but also to open new markets, promote their products and expand their business possibilities. In this sense, electronic commerce is a competitive advantage and a very interesting business opportunity. Electronic commerce to the final consumer in Spain is experiencing excellent development and there are still many opportunities to be exploited. Although we cannot lose sight of the fact that there is still much to do, start an online business or adapt the current one taking advantage of all the possibilities of e-Commerce. Here are some advantages: 1. Overcoming geographic limitations.
2. Obtaining a greater number of customers both online and offline thanks to the increased visibility that the Internet allows.
3. Much lower start-up and maintenance cost than a traditional business.
4. Greater ease of displaying the products for the entrepreneur.
5. Easier and faster to find the products for the buyer.
6. Saving time when making purchases for the buyer.
7. Optimization of the time dedicated to the business and customer service for the employer.
8. Ease of implementing and developing a marketing strategy based on discounts, coupons, lots, etc.
9. Ease of offering a comparison between products, includingfeatures and prices.
However, we cannot fail to consider some disadvantages of e-Commerce that must be taken into account before starting or expanding any business. They are as follows:
1. The competition is much higher, as anyone can start an e-commerce business (at least in theory).
2. There are still many consumers reluctant to buy without seeing the product and who do not trust online payments.
3. Shipping costs are expensive when business volume is small, and this is a major disadvantage for small businesses.
4. Customer loyalty is much more difficult and requires a professional strategy.
5. Promoting an online store requires more personal work than promoting a store at street level. 6. The security of the site can give many headaches to the employer.
7. Not all products that can be sold online are equally profitable, and the marketing strategy must be assessed very well.
8. Consumers want to have it all: the best price, the best service and personalized attention. Competing on these terms is increasingly difficult for small companies compared to large ones.
It is the work done remotely using Information and Communication Technologies (better known as ICTs) to sell products and services to the world. The concept “remotely” means that you can work from your home, that of a family member or friend, a hotel, a restaurant, a bus, a car, a cyber or any other place. The ICTs necessary for these tasks are basically PC, Internet, cell phone, telephone and digital camera, among others. The Internet mainly encompasses web browsing and email And, depending on the case, blogs, websites, translation software, instant messaging (chat) and IP telephony (VoIP). For this reason, a short and quick definition of Telework is: “Telework is work at a distance using the Internet”.
The differences from normal work are: -Allows you to work from anywhere (it does not have a fixed place of work). -Allows you to work at any time (does not require a fixed work schedule). -Tics are always used as support -In most cases there are no bosses – employers or clients are not personally known to each other.
It is a type of marketing in which operations are carried out completely electronically and although it has been somewhat difficult for consumers to trust the companies that offer these services, this type of business has grown significantly. The B2B represents great advantages, because: -Allows fast and secure purchases -The buyer’s data is automatically entered into the bidder’s computer systems by having more supply channels, the number of consumers can be increased compared to those caught by the competition as the purchase is depersonalized, negotiations that lead to greater bargaining deals. -Buyers cannot demand a lower price, to the delight of the bidder. -It is possible that the consumer is better informed about what he is going to buy, warranty, how to use and other important specifications, as well as comparing the price with other companies
Basically it is a new strategy developed by commercial companies, in line with the new digital society, with the aim of reaching the end user or consumer directly. The idea is to achieve direct contact between the company and the end consumer through new digital channels, in this way to achieve more direct communication with the customer, with the idea of being able to bring the customer the product that best suits their needs. Demands, at the best cost and best service for this powerful new strategy has significant benefits for both the customer and the company. It allows the client to be able to acquire the services and goods they need without leaving the comfort of their home; it gives them access to a greater, more varied offer and gives them the opportunity to interact with the company to obtain the products that best suit their needs. your needs. On the other hand, it allows companies to be closer to their customers and improve relationships with them, to be able to know what customers want, to improve their pre- and post-sale services.
THREE OPTIONS TO RECEIVE CUSTOMER PAYMENTS THROUGH THE PREVIOUSLY TREATED MEANS:
Receive deposit on account, checks, money orders, etc., but not receive credit cards.The problem that arises is that it is very difficult to sell abroad. Contract a contract with the bank.The business obtains the credit card information, types it in their terminal, types the amount and that’s it.This type of account involves greater risks and that is why banks request financing for greater protection and the bank imposes a series of security policies. Use the electronic payment services offered by various companies over the Internet, to accept credit cards.
MEANS OF PAYMENT FOR E- COMMERCE
The credit card is not the only means of payment on the Internet, and even so there are large companies and interests at stake to implement a secure system for this important means of payment. There are also some traditional methods to pay and collect, and even some novel systems to try to minimize the chances of fraud. In fact, most of the disadvantages do not lie in a technological base, but in the human component of the system, and many times not only due to intrusions, but also due to profound logistical and management deficiencies, which shows a poor adaptation to the new demands that are typical of Internet businesses. Some existing means of payment:
Cash on delivery
Payment cards on the Internet
HOW DO CUSTOMERS IDENTIFY A RELIABLE SITE TO BUY OR SELL?
Secure sites use technology that allows encrypted information to be exchanged from your computer to a merchant’s computer. In this way, data such as credit card numbers are transmitted safely and out of the reach of hackers or cyber criminals. The only ones who can decode that information are those who have authorization. How to identify a safe site: See the address bar at the top of your screen where the business email address is located. There you will find the letters “https: // & # 8221;. The “s” at the end means that the site is secure, although sometimes the “s” only appears on the payment page. Another way to know if the site is secure is by looking at a padlock at the bottom of the page. An open padlock indicates that the site is most likely not secured. The third indicator is a brace at the bottom of the page. An integer key means a secure site.