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Ali Recognize the Functions, Benefits and Types of E-Commerce [LENGKAP]

Definition of E-Commerce

Of course we know the term e-commerce in everyday life, it has even become an addictive substance for the general public. How come? Because the more sophisticated technology can facilitate many parties. However, if asked what is the meaning of e-commerce there are still some who are confused to answer it straightforwardly. For that, let's look at the following understanding of e-commerce.

What is e-commerce? Judging from its name, e-commerce comes from English, namely electronic commerce, which means electronic commerce.

E-Commerce is a process of selling, buying, or marketing products in the form of goods and services using electronic systems such as the internet and computer networks. The use of the internet in trade is also diverse, ranging from sales, advertising, purchasing, payment, shipping and everything is done online.

 Understanding E-Commerce is

To find out more about the meaning of e-commerce, the following is an understanding e -commerce according to experts.

Definition of e-commerce according to Jony Wong is the sale, purchase and marketing of both goods and services using electronic systems.

Definition of e-commerce according to Loudon is the process of transactions carried out by sellers and buyers in selling or buy an item and service electronically from a company to another company by using a computer as an intermediary for transactions carried out.

Definition of e-commerce according to Vermaat is a process of transactions that occur in an internet network. The point is, anyone who has an internet network can join in e-commerce activities.

The definition of e-commerce according to Kalakota and Whinston is a shopping activity using the internet network and transactions in the form of money transfers are also done online.

However, both of them review the notion of e-commerce from four perspectives:

1. Online Perspective e-commerce is a means to sell and buy goods and services and information online using an internet network.

2. Service Perspective e-commerce is a tool which can fulfill the company's desires, management and consumers to reduce service costs when improving the quality of goods and the speed of service delivery of goods.

3 . Communication Perspective e-commerce is a process of shipping goods, information and services as well as payments through computer networks or other digital equipment.

4. Business Process Perspective e-commerce is an application of technology towards mechanization of business transactions and workflows.

Functions of E-Commerce

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In the technological era the more sophisticated this, e-commerce provides many benefits for everyone, both sellers and buyers. The benefits of e-commerce are as follows:

1. Benefits of E-Commerce for Buyers

  1. Facilitating consumers to shop online anytime and anywhere without any time limit.
  2. Consumers can make price comparisons of a product or service product through several existing e-commerce.
  3. Can make it easier consumers in choosing good quality goods at appropriate prices through the rating features available from the e-commerce platform.

2. Benefits of E-Commerce for Sellers

  1. Makes it easier for sellers to peddle their merchandise online using the internet.
  2. Makes it easier for sellers to market their products so that they can reach a wider marketing target.
  3. The transaction process will be easier, moreover in terms of payments because it can be done online, through banks or other online wallets.
  4. Can facilitate communication between sellers and buyers because of the chat features available from the e-commerce platform.

Advantages and Disadvantages of E-Commerce [19659030] 1. Advantages of E-Commerce

With some of the benefits above, it has been concluded that e-commerce also has its own benefits for everyone. The following are the advantages of e-commerce.

  1. Can reduce operating costs.
  2. Increase market share.
  3. Can expand global reach.
  4. Easy to build and increase customer loyalty.
  5. Shortening production time.
  6. Increasing value chain.
  7. Emerging new revenue streams that may be promising, which cannot be found in traditional transaction systems.
  8. Can improve Supply Chain Management.

2. Lack of E-commerce

Although it has many benefits and advantages, e-commerce also has disadvantages for each user. The following will explain the shortcomings of e-commerce.

  1. Triggering fraud in the transaction process, for example, there is someone who replaces the existing financial data to enable others to make payments.
  2. Enables the theft of confidential information and personal data so that harming the victim
  3. Possibility of illegal access by other people, such as hackers in breaking into a website or banking system.
  4. Business opportunities that may be lost so that they can harm customers, caused by sudden human errors or electrical disruptions arrives.
  5. Loss of trust from consumers because there are other parties that damage the reputation of the company,
  6. The existence of negative campaigns by competitors that have a negative effect on a business.

Types of E-Commerce

 Types of E-Commerce

According to E. Turban, David K, J. Lee , T. Liang, D. Turban, e-commerce can be done by various parties. The types of e-commerce will be explained below,

1. Bussiness to Bussiness [Business to Business]

This type of B2B e-commerce is carried out by business people, where both parties know and know the business they are managing. These business people have mutual interests in running a business.

Usually, this type of e-commerce can continue continuously because of the benefits obtained from both business people, as well as trust arising from each other. For example, businesses conduct transactions online with available payment methods.

2. Bussiness to Consumer (Business to consumer)

Business to consumer or B2C involves consumers and business people individually. These transactions such as buying and selling usually occur. For example, business people only sell and market products online to consumers without getting feedback for buyers to do business . Whereas consumers are only buyers.

3. Consumer to Bussiness / C2B (Consumer to Business)

This type of C2B e-commerce involves consumers and producers. This business is carried out by consumers towards business people. For example, consumers want to buy an item with a certain price and detail, then the producer or businessperson will offer the product requested by the consumer.

4. Consumer to Consumer / C2C (Consumer to Consumer)

This type of Consumer to consumer e-commerce involves consumers and consumers. We can call it the term reseller. The point is, the consumer will buy an item from a businessman or producer and sell it back to other consumers.

Thus the article on the meaning of e-commerce along with its benefits, advantages and disadvantages and types of e-commerce. Thank you and hope it's useful.


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