1 Explain what is meant by the term ‘E-commerce’.

It is the conducting of business communication and transactions over networks and through computers.  As most restrictively defined, electronic commerce is the buying and selling of goods and services, and the transfer of funds, through digital communications.  However EC also includes all inter-company and intra-company functions (such as marketing, finance, manufacturing, selling, and negotiation) that enable commerce and use electronic mail, EDI, file transfer, fax, video conferencing, workflow, or interaction with a remote computer.  Electronic commerce also includes buying and selling over the Web, electronic funds transfer, smart cards, digital cash (e.g.  Mondex), and all other ways of doing business over digital networks.

Assess the advantages and disadvantages of E- Commerce information systems.

Both the consumer and the supplier of a product can benefit from when using Electronic Commerce many obvious advantages.  The consumer can browse through a whole shopping mall from the comfort of his or her own home, and products can be purchased and delivered right to their home.  E-Commerce removes the hassle of crowds and line-ups from the consumer's routine.

The supplier has the advantage of keeping their store open twenty four hours a day, seven days a week - without having to hire the staff to maintain it which saves a lot of money which means they can focus on better prices for their products and greater profits.  The Internet opens up the customer base widely, allowing many customers the opportunity to view their product.

First, businesses can communicate with customers easily.  The business can receive and send e-mails from/to customers.  This allows customers to quickly get in contact with the business.  This can also be done to suppliers is well.  This means that the business will forge closer relationships with customers and suppliers.  

In addition, e-commerce allows customers to look at the businesses products from their home.  This means that customers will be able to look or buy the product at any time rather than only when they go shopping.  Also with the business being on the internet it will mean that that the business will be able to aim their will be easy to access and that more people can see their product.  

Moreover, it is said that trading on the Internet promises greater market penetration, increased customer response, more flexibility and lower costs.

Besides, E-commerce is also considerably fast and means that the business will be more efficient.

Furthermore, saves costs, as the business does not have the costs associated with running the business.  They do not have to pay for such things as lighting, electricity, and fittings.  

With ecommerce the user has the ability to search for their product without having to look around shops in a time consuming manner.  In fact the information is at their finger tips and can be accessed within minutes without even having to leave your home unlike shopping on the high street.

There are also many disadvantages to ecommerce and these are mainly to do with the exchanging of information over the internet and the security measures that this entails.   Every time a transaction is made, it is often a credit card number that is submitted over the Internet.  There are many consumers today that still refrain from the practice for fear of a third party obtaining their card numbers or other personal information

Join now!

Also, as the internet is accessed by millions and possibly billions of people every day the information that is exchanged can be accessed by people who know how to, this information can be protected with the use of certain software and the advice of people who are experienced in this field, but this costs money and more than often small companies who have tight profit margins do not always give the customers the protection that they should be entitled to.  This leads to millions of pounds of credit card fraud and putting of potential customers from using e-commerce.

Some disadvantages ...

This is a preview of the whole essay

Here's what a star student thought of this essay

The report defines the term 'eCommerce' and explains this well by proving examples of the uses of eCommerce. The presentation of the report, is not suitable. At this stage, the report uses multi-colour font and this isn't suitable. The font should be in black, to give the report a professorial appeal.

The report gives an very in-depth section on the advantages and disadvantages of eCommerce. There have accessed this in depth and gives a clear result at the end. However, though-out the report, there do not include any real examples. For example HMV.com, could be used to describe how high-street retailer use on-line retailer to give the business a second revenue stream and the effect that on-line sales such as digital music is having on traditional retailers such as HMV.

In summary, the report is very detailed and is very well explained. The report would achieve high marks, if the report included an real case study to link the background understanding to an commercial environment. The report gives a very detailed description on number of aspects of eCommerce. The background knowledge is outstanding, as there have clearly read on-line or using another resource and re-written this using their understand onto this report.