E- CO MM ER CE
E-commerce (electronic commerce) is essentially the selling of products through the Internet.
The Internet originally developed in the 1970s and 1980s as a means of exchanging
information stored on the computers of scientists and engineer. In the 1990s three
developments opened the way for the Internet to be used commercially:
1. the spread of personal computers into people's homes;
2. the linking up of home computers through telephone lines, enabling them to Connect to the
Internet and send e-mails;
3. the invention of the World Wide Web and browser programs, which made it possible to jump
easily from site to site and also to transmit images and sounds as well as texts.
BU YIN G ON TH E N ET
The Internet, especially in the form of the web and e-mail, became a popular phenomenon and
businesses began to think about how they could use it. The most common method is for a
company to set up a website where it can display its products. Interested customers can make
contact directly through the site or by sending an e-mail message or making a phone call. On
many sites it is possible to choose and buy products immediately. Customers click on the
products that they want from the online catalogue and then pay, usually by inserting their
credit card details. The goods are sent to them by post. The website uses special encryption
software to prevent outside hackers from being able to read sensitive data, such as credit card
numbers.
Certain products such as books, games and DVDs, which require a large varied stock, are
particularly well suited to e-commerce. Other products, such as music, software, e-books and
documents (like hotel reservations or travel/entertainment tickets), can even be downloaded
immediately from the website. However almost all products, from clothes and food to
computers and cars, are now available on the web. Department stores, chain stores and
supermarkets all now have extensive websites and many consumers automatically begin their
shopping by checking on the Internet. No business can now afford not to have a presence on
the net.
FO RM S OF E -C OMM ERC E
Business to consumer (B2C): the most common form, as described above, in which a
business sells its products directly to the public.
Business to business (B2B): a company uses the Internet to sell its products to another firm.
Consumer to consumer (C2C): Individual people use the Internet to advertise and sell goods
to other people, for example through auction sites like eBay.
Mobile commerce (m-commerce), extending e-commerce from computers to mobile phones,
is a rapidly growing field as smartphones become more powerful and closely linked to the
Internet. Many people now use mobiles to download music, book tickets and buy a variety of
other products.
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