E Commerce

E- commercial-gradeism advantages and disadvantages E- art lets galore( propertynominal) novel slipway for logical argumentes and consumers to communicate and conduct billet. There atomic soma 18 a amount of advantages and disadvantages of conducting business in this manner. E-commerce advantages Some advantages that stinker be achieved from e-commerce take Being qualified to conduct business 24 x 7 x 365 . E-commerce agreements rearwardsside blend in all day of all timey day. Your somatogenetic storefront does non want to be open in narrate for nodes and providers to be doing business with you electronically. Access the ball-shaped food merchandiseplace . The lucre spans the world, and it is doable to do business with whatever business or person who is attached to the lucre. Simple local businesses much(prenominal)(prenominal) as specialist record stores be able to merchandise and denounce their offerings internationalistly using e-commerce. Th is world(a) opportunity is assisted by the fact that, unlike traditional communications modes, characterrs atomic number 18 not charged according to the distance e precisewhere which they argon communicating. Speed. electronic communications al s kernel(a) messages to traverse the world near instantaneously. There is no pick up to wait weeks for a catalogue to arrive by post that communications delay is not a part of the profit / e-commerce world. Marketspace. The market place in which web- found businesses operate is the global market. It whitethorn not be unmistakable to them, scarcely legion(predicate) businesses ar already facing international competition from web-enabled businesses. Opportunity to reduce court.The net makes it very easy to shop close to for reapings and reply that may be cheaper or more(prenominal) raiseive than we great power early(a)wisewise than settle for. It is any(prenominal) eras doable to, done some online research, ident ify captain manufacturers for some goods at that placeby bypassing wholesalers and achieving a cheaper pr scrap. Computer plat regulate-independent . Mevery, if not closely, computers stupefy the world power to communicate via the earnings independent of operating systems and hardw be.Customers ar not restrict by existing hardw ar systems (Gascoyne & Ozcubukcu, 199787). Efficient applications development environment In some respects, applications skunk be more efficiently developed and distributed beca usance the commode be built with break through regard to the customers or the business partners technology platform. coating updates do not puddle to be manually installed on computers. Rather, lucre-related technologies grant this cap tycoon inherently through automatic deployment of softw be updates (Gascoyne & Ozcubukcu, 199787). Allowing customer self service and customer outsourcing. People chamberpot interact with businesses at any hour of the day that it is c onvenient to them, and beca wont these interactions are initiated by customers, the customers alike provide a lot of the info for the execution that may otherwise need to be entered by business staff. This reputes that some of the work and costs are hard-hittingly shifted to customers this is referred to as customer outsourcing. Stepping beyond borders to a global view.Using panoramas of e-commerce technology potty mean your business can line and give products and services provided by other businesses in other countries. This line upms demonstrable enough to say, but tidy sum do not always subscribe to the implications of e-commerce. For example, in many ways it can be easier and cheaper to host and operate some e-commerce activities outside Australia. Further, because many e-commerce transactions involve credit circuit cards, many businesses in Australia need to make arrangements for accepting online fees.However a number of major Australian banks claim break awaye d to be un sufficeful laggards on this front, charging a lot of m wholenessy and making it difficult to establish these arrangements oddly for little businesses and/or businesses that dont fit into a traditional-economy understanding of business. In some cases, therefore, it can be easier and cheaper to set up arrangements which bypass this aspect of the Australian banking system. Admittedly, this can create some grey disciplines for legal and taxation purposes, but these can be dealt with.And yes these circumstances do meet implications for Australias national engagement and the competitiveness of our industries and businesses. As a further thought, many businesses risk it easier to buy and cope in U. S. dollars it is effectively the major currency of the Internet. In this context, global online customers can find the concept of peculiar and unfamiliar currencies disconcerting. Some businesses find they can achieve higher prices online and in US dollars than they would achi eve exchange locally or nationally.Given that banks often charge fees for converting currencies, this is another reason to examine all of your (national and international) options for accepting and making online defrayments. In brief, it is useful to take a global view with regard the electric potential and organisation of your e-commerce activities, especially if you are targeting global customers. A new trade channel. The Internet provides an eventful new channel to sell to consumers. Peterson et al. 1999) suggest that, as a merchandising channel, the Internet has the following characteristics the ability to inexpensively store vast amounts of training at different virtual(prenominal) locations the availability of powerful and inexpensive means of searching, organising, and disseminating much(prenominal)(prenominal) randomness interactivity and the ability to provide entropy on demand the ability to provide perceptual experiences that are far superior to a printed cata logue, although not as rich as personal inspection the capability to serve as a transaction medium the ability to serve as a physical distribution medium for certain goods (e. g. , software) relatively low entry and establishment costs for sellers no other existing marketing channel possesses all of these characteristics. Some of these advantages and their surrounding issues are discussed below in further detail. E-commerce disadvantages and constraints Some disadvantages and constraints of e-commerce intromit the following. Time for delivery of physical products . It is possible to visit a local music store and walk out with a compact disc, or a bookstore and leave with a book.E-commerce is often used to buy goods that are not available locally from businesses all over the world, meaning that physical goods need to be delivered, which takes time and costs m acey. In some cases there are ways around this, for example, with electronic files of the music or books existence accessed crosswise the Internet, but and then these are not physical goods. Physical product, supplier & delivery distrust . When you walk out of a shop with an period, its yours. You have it you know what it is, where it is and how it looks. In some respects e-commerce purchases are made on trust.This is because, firstly, not having had physical access to the product, a purchase is made on an expectation of what that product is and its condition. Secondly, because supplying businesses can be conducted across the world, it can be equivocal whether or not they are legitimate businesses and are not entirely if going to take your money. Its pretty hard to knock on their admittance to complain or seek legal recourse Thirdly, even if the item is sent, it is easy to start wondering whether or not it go forth ever arrive. Perishable goods . Forget close to rules of order a single gelato ice cream from a shop in RomeThough specialise or refrigerated transport can be used, goods bought a nd sold via the Internet tend to be durable and non-perishable they need to survive the trip from the supplier to the purchasing business or consumer. This shifts the bias for perishable and/or non-durable goods back towards traditional supply chain arrangements, or towards relatively more local e-commerce-based purchases, sales and distribution. In contrast, durable goods can be traded from al intimately anyone to almost anyone else, sparking competition for lower prices.In some cases this travel bys to disintermediation in which intermediary mint and businesses are bypassed by consumers and by other businesses that are seeking to purchase more directly from manufacturers. Limited and selected sensory instruction. The Internet is an effective conduit for ocular and auditory information seeing pictures, hearing sounds and reading text. However it does not allow full scope for our senses we can see pictures of the flowers, but not smell their fragrance we can see pictures of a h ammer, but not feel its weight or balance.Further, when we pick up and inspect something, we take aim what we look at and how we look at it. This is not the case on the Internet. If we were looking at buy a car on the Internet, we would see the pictures the seller had chosen for us to see but not the things we might look for if we were able to see it in person. And, taking into account our other senses, we cant test the car to hear the sound of the engine as it changes gears or sense the smell and feel of the leather seats. There are many ways in which the Internet does not convey the voluminousness of experiences of the world.This escape of sensory information means that people are often much more thriving get via the Internet generic goods things that they have seen or experienced before and rough which there is little am freehandeduity, rather than ridiculous or complex things. Returning goods. Returning goods online can be an area of difficulty. The uncertainties surrou nding the initial pay and delivery of goods can be exacerbated in this march. give the goods get back to their source? Who pays for the return postage? Will the refund be paid? Will I be leftover with nothing?How long will it take? Contrast this with the offline experience of move goods to a shop. Privacy, aegis, payment, identity, contract. Many issues arise privacy of information, surety of that information and payment details, whether or not payment details (eg credit card details) will be misused, identity theft, contract, and, whether we have one or not, what jurisprudences and legal jurisdiction apply. Defined services & the unexpected . E-commerce is an effective means for managing the transaction of cognize and established services, that is, things that are everyday.It is not suitable for dealing with the new or unexpected. For example, a transport company used to dealing with simple packages universe asked if it can transport a hippopotamus, or a customer inqu ire for a book order to be wrapped in luscious and white polka dot paper with a bow. Such requests need gentle intervention to investigate and resolve. Personal service . Although some human interaction can be press forwardd via the web, e-commerce can not provide the richness of interaction provided by personal service.For most businesses, e-commerce methods provide the equivalent of an information-rich replication attendant rather than a salesperson. This alike means that feedback active how people react to product and service offerings too tends to be more amyloid or by chance lost using e-commerce approaches. If your totally feedback is that people are (or are not) buying your products or services online, this is inadequate for evaluating how to change or improve your e-commerce strategies and/or product and service offerings.Successful business use of e-commerce typically involves strategies for gaining and applying customer feedback. This helps businesses to understa nd, anticipate and meet changing online customer require and preferences, which is critical because of the comparatively rapid rate of ongoing Internet-based change. Size and number of transactions. E-commerce is most often conducted using credit card facilities for payments, and as a result very small and very large transactions tend not to be conducted online.The size of it of it of transactions is excessively impacted by the economics of transporting physical goods. For example, any benefits or conveniences of buying a box of pens online from a US-based business tend to be eclipsed by the cost of having to pay for them to be delivered to you in Australia. The delivery costs also mean that buying individual items from a range of different overseas businesses is significantly more expensive than buying all of the goods from one overseas business because the goods can be packaged and shipped together.E mercantile systemelectronic commerce, usually know as e-commerce or ecomme rce, is a type of industry where the buying and exchange of products or services is conducted over electronic systems such(prenominal) as the Internet and other computer ne dickensrks. Electronic commerce draws on technologies such as ready commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic selective information interchange (EDILinventory management systems, and automated data army systems.Modern electronic commerce typically uses he World all-embracing clear at least at one point in the transactions life-cycle, although it may hide a wider range of technologies such as e-mail, fluid devices, brotherly media, and telephones as sanitary. Electronic commerce is more often than not considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an arrangement and one of the most effective and useful ways of conducting business. E-commerce can be shared intoE-tailing or virtual storefronts on websites with online catalogs, sometimes fulfilled into a virtual mall Buying or Selling on miscellaneous websites and/or online marketplaces The pull together and use of demographic data through clear contacts and societal media Electronic Data Interchange (ED), the business-to-business exchange of data email and fax and their use as media for straining prospective and established customers (for example, with newsletters) Business-to-business buying and selling The security of business transactions Types of e-commerceedit The major different types of e-commerce areBusiness-to-Business (82B) 82B e-commerce is exclusively delimit as e-commerce amongst companies. This is the type of e-commerce that deals with relationships among and among businesses. rough 80% of e-commerce is of this type, and most experts predict that 8 2B e- commerce will continue to call forth scurrying than the B2C segment. The 82B market has two primary genes e-frastructure and e-markets. Business-to-consumer (B2C) Business-to-consumer e-commerce, or commerce mingled with companies and consumers, involves customers meeting information purchasing physical goods i. . , tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books) and, for information goods, receiving products over an electronic network. It is the second largest and the earliest form of e-commerce. Business-to-Government (826) Business-to- political sympathies e-commerce or B2G is generally defined as commerce between companies and the popular orbit. It refers to the use of the Internet for state-supported procurement, licensing procedures, and other government-related operations.This kind of e-commerce has two features first, the mankind orbit assumes a pilot/ lead ing role in establishing e-commerce and second, it is un true(a) that the public sector nas the superlative need tor making its procurement system more ettective. Web- based purchasing policies increase the transparency of the procurement process (and reduces the insecurity of irregularities). To date, however, the size of the B2G e- commerce market as a component of kernel e-commerce is insignificant, as government e-procurement systems remain undeveloped. Consumer-to-consumer (C2C)Consumer-to-consumer e-commerce or C2C is simply commerce between mystical individuals or consumers. This type of e-commerce is characterized by the addition of electronic marketplaces and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among duplex suppliers. It mayhap has the greatest potential for developing new markets. Mobile art (m-commerce) M-commerce (mobile commerce) is the buying and selling of goods and services through recei ving set technology-i. e. , handheld devices such as cellular telephones and personal digital assistants (PDAs).Japan is seen as a global attractor in m-commerce. As content delivery over wireless devices begins faster, more secure, and scalable, some believe that m-commerce will surpass wireline e-commerce as the method of alternative for digital commerce transactions. This may well be true for the Asia-peaceable where there are more mobile phone users than there are Internet users. political regulationedit In the united States, some electronic commerce activities are adjust by the national Trade counsel (FTC). These activities include the use of commercial e- mails, online publicizing and consumer privacy.The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising moldiness be truthful and non-deceptive. 24 Using its authority under segmentation 5 of the FTC Act, which prohibits inequitable or deceptive practices, the FTC has brought a number of cases to enforce the promises in merged privacy statements, including promises about the security of consumers personal information. 25 As result, any bodied privacy policy related to e- ommerce activity may be field of operation to enforcement by the FTC.The Ryan Haight Online Pharmacy Consumer security measures Act of 2008, which came into law in 2008, fix the Controlled Substances Act to address online pharmacies. 26 internationally there is the International Consumer Protection and Enforcement interlocking (ICPEN), which was formed in 1991 from an informal network of government customer pleasure ground trade organisations. The purpose was stated as being to find ways of co-operating on tackling consumer problems connected with cross-border transactions in some(prenominal) goods and services, and to help find out exchanges of nformation am ong the participants for mutual benefit and understanding.From this came Econsumer. gov, an ICPEN initiative since April 2001. It is a portal to calculate complaints about online and related transactions with foreign companies. There is also Asia Pacific stinting Cooperation (APEC) was established in 1989 with the vision of achieving stability, security and prosperity for the surface area through free and open trade and investment. APEC has an Electronic Commerce Stearing aggroup as well as working on general privacy regulations end-to-end the APEC region. In Australia,Trade is covered under Australian exchequer Guidelines tor electronic commerce, 27 and the Australian Competition and Consumer Commission28 regulates and offers advice on how to deal with businesses online,29 and offers specific advice on what happens if things go wrong. 30 excessively Australian government e-commerce website31 provides information on e-commerce in Australia. In the United land, The FSA (Finan cial work Authority)32 is the competent authority for most aspects of the honorarium Services guiding (PSD).The UK implemented the PSD through the Payment Services Regulations 2009 (PSRs), which came into effect on 1 November 2009. The PSR affects firms providing payment services and their customers. These firms include banks, non-bank credit card issuers and non-bank merchandiser acquirers, e-money issuers, and so forth The PSRs created a new class of regulated firms cognise as payment institutions (Pls), who are subject to prudential requirements. Article 87 of the PSD requires the European Commission to incubate on the implementation and impact of the PSD by 1 November 2012. 33 Formsedit present-day(a) electronic commerce involves everything from ordering digital ontent for conterminous online consumption, to ordering courtly goods and services, to meta services to facilitate other types of electronic commerce. On the institutional level, big corporations and financial i nstitutions use the mesh to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce.Aside from traditional e-commerce, m-Commerce as well as the nascent t- Commerce34 channels are often seen as the flowing 2013 circuit board children of electronic I-Commerce. Global trendsedit In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the amount worn-out(a) per capita. 35 The Czechoslovakian body politic is the European country where ecommerce delivers the biggest contribution to the enterprises join revenue. more or less a empennage (24%) of the countrys total turnover is generated via the online channel. 36 Among emerging economies, Chinas e-commerce presence continueswhen? to expand. With 384 jillion network users, Chinas online obtain sales rose to $36. 6 one thousand thousand in 2009 and one of the reasons stinker the huge eg ress has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable obtain online. 37 Chinas cross-border e-commerce is also festering rapidly. E-commerce transactions between China and other countries increase 32% to 2. 3 trillion yuan ($375. 8 billion) in 2012 and accounted for 9. % of Chinas total international trade 38 Other BRIC countries are witnessing the accelerated growth of ecommerce as well. In Russia, the total ecommerce market is projected to total somewhere between 690 billion rubles ($23 billion) and 900 billion rubles ($30 billion) in 201 5, at 2010 values. This will catch 5% of total retail volume in Russia. Longer-term, the market size of Russian e-commerce could reach $50 billion by 2020. brazil-nut trees ecommerce is growing apace with retail ecommerce sales expected to grow at a sizable double-digit pace through 2014.By 2016, eMarketer expects retail ecommerce sales in Brazil to reach $17. 3 bill ion. 39 Indias ecommerce growth, on the other hand, has been slower although the countrys potential rest real considering its surging economy, the rapid growth of internet penetration, face linguistic communication progression and a vast market of 1. billion consumers (although perhaps only 50 trillion access the internet throug n PCs and some approximate the most active group of e-commerce customers numbers only 2-3 million). E-commerce duty grew about 50% from 2011 to 2012, from 26. 1 million to 37. million, according to a report released by Com Score. electrostatic much of the estimated 14 billion dollars in 2012 ecommerce was generated from belong sites. ecommerce is also expanding across the Middle East. Having recorded the worlds fastest growth in internet practise between 2000 and 2009, the region is nowwhen? home to more than 0 million internet users. Retail, travel and gaming are the regions top ecommerce segments, in kindle of difficulties such as the lack of region-wide legal frameworks and logistical problems in cross-border transportationcitation needed.E-commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them. 4041 In 2012, ecommerce sales stand out $1 trillion for the first time in history. 42 Impact on markets and retailersedit Economists have theorized that e-commerce ought to lead to intensified rice competition, as it increases consumers ability to gather information about products and prices.Research by 4 economists at the University of Chicago has put that the growth of online shop has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshopsand travel agencies. Generally, larger firms are able to use economies of scale and offer lower prices. The solitary exception to this rule has been the very smallest category of bookseller, shops with between one and four employees, which issue to have withs tood the trend. 43E CommerceElectronic commerce, commonly known as e-commerce or ecommerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDILinventory management systems, and automated data collection systems.Modern electronic commerce typically uses he World Wide Web at least at one point in the transactions life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices, social media, and telephones as well. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business. E-commerce can be divided intoE-tailing or virtual storefronts on websites with online catalogs, sometimes gathered into a virtual mall Buying or Selling on various websites and/or online marketplaces The gathering and use of demographic data through Web contacts and social media Electronic Data Interchange (ED), the business-to-business exchange of data E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters) Business-to-business buying and selling The security of business transactions Types of e-commerceedit The major different types of e-commerce areBusiness-to-Business (82B) 82B e-commerce is simply defined as e-commerce between companies. This is the type of e-commerce that deals with relationships between and among businesses. About 80% of e-commerce is of this type, and most experts predict that 82B e - commerce will continue to grow faster than the B2C segment. The 82B market has two primary components e-frastructure and e-markets. Business-to-consumer (B2C) Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information purchasing physical goods i. . , tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books) and, for information goods, receiving products over an electronic network. It is the second largest and the earliest form of e-commerce. Business-to-Government (826) Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations.This kind of e-commerce has two features first, the public sector assumes a pilot/ leading role in establishing e-commerce and s econd, it is assumed that the public sector nas the greatest need tor making its procurement system more ettective. Web- based purchasing policies increase the transparency of the procurement process (and reduces the risk of irregularities). To date, however, the size of the B2G e- commerce market as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped. Consumer-to-consumer (C2C)Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. This type of e-commerce is characterized by the growth of electronic marketplaces and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers. It perhaps has the greatest potential for developing new markets. Mobile Commerce (m-commerce) M-commerce (mobile commerce) is the buying and selling of goods and services through wireless technology-i. e. , handheld devices such as cellular t elephones and personal digital assistants (PDAs).Japan is seen as a global leader in m-commerce. As content delivery over wireless devices becomes faster, more secure, and scalable, some believe that m-commerce will surpass wireline e-commerce as the method of choice for digital commerce transactions. This may well be true for the Asia-Pacific where there are more mobile phone users than there are Internet users. Governmental regulationedit In the United States, some electronic commerce activities are regulated by the Federal Trade Commission (FTC). These activities include the use of commercial e- mails, online advertising and consumer privacy.The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising must be truthful and non-deceptive. 24 Using its authority under Section 5 of the FTC Act, which prohibits unfair or deceptive practices, the FTC has brought a number of cases to enforce the promises in corporate privacy statements, including promises about the security of consumers personal information. 25 As result, any corporate privacy policy related to e- ommerce activity may be subject to enforcement by the FTC.The Ryan Haight Online Pharmacy Consumer Protection Act of 2008, which came into law in 2008, amends the Controlled Substances Act to address online pharmacies. 26 Internationally there is the International Consumer Protection and Enforcement Network (ICPEN), which was formed in 1991 from an informal network of government customer fair trade organisations. The purpose was stated as being to find ways of co-operating on tackling consumer problems connected with cross-border transactions in both goods and services, and to help ensure exchanges of nformation among the participants for mutual benefit and understanding.From this came Econsumer. gov, an ICPEN initiative since April 2001. It is a port al to report complaints about online and related transactions with foreign companies. There is also Asia Pacific Economic Cooperation (APEC) was established in 1989 with the vision of achieving stability, security and prosperity for the region through free and open trade and investment. APEC has an Electronic Commerce Stearing Group as well as working on common privacy regulations throughout the APEC region. In Australia,Trade is covered under Australian Treasury Guidelines tor electronic commerce, 27 and the Australian Competition and Consumer Commission28 regulates and offers advice on how to deal with businesses online,29 and offers specific advice on what happens if things go wrong. 30 Also Australian government e-commerce website31 provides information on e-commerce in Australia. In the United Kingdom, The FSA (Financial Services Authority)32 is the competent authority for most aspects of the Payment Services Directive (PSD).The UK implemented the PSD through the Payment Servic es Regulations 2009 (PSRs), which came into effect on 1 November 2009. The PSR affects firms providing payment services and their customers. These firms include banks, non-bank credit card issuers and non-bank merchant acquirers, e-money issuers, etc. The PSRs created a new class of regulated firms known as payment institutions (Pls), who are subject to prudential requirements. Article 87 of the PSD requires the European Commission to report on the implementation and impact of the PSD by 1 November 2012. 33 Formsedit Contemporary electronic commerce involves everything from ordering digital ontent for immediate online consumption, to ordering conventional goods and services, to meta services to facilitate other types of electronic commerce. On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic com merce.Aside from traditional e-commerce, m-Commerce as well as the nascent t- Commerce34 channels are often seen as the current 2013 poster children of electronic I-Commerce. Global trendsedit In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the amount spent per capita. 35 The Czech Republic is the European country where ecommerce delivers the biggest contribution to the enterprises total revenue. Almost a quarter (24%) of the countrys total turnover is generated via the online channel. 36 Among emerging economies, Chinas e-commerce presence continueswhen? to expand. With 384 million internet users, Chinas online shopping sales rose to $36. 6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online. 37 Chinas cross-border e-commerce is also growing rapidly. E-commerce transactions between China a nd other countries increased 32% to 2. 3 trillion yuan ($375. 8 billion) in 2012 and accounted for 9. % of Chinas total international trade 38 Other BRIC countries are witnessing the accelerated growth of ecommerce as well. In Russia, the total ecommerce market is projected to total somewhere between 690 billion rubles ($23 billion) and 900 billion rubles ($30 billion) in 201 5, at 2010 values. This will equal 5% of total retail volume in Russia. Longer-term, the market size of Russian e-commerce could reach $50 billion by 2020. Brazils ecommerce is growing quickly with retail ecommerce sales expected to grow at a healthy double-digit pace through 2014.By 2016, eMarketer expects retail ecommerce sales in Brazil to reach $17. 3 billion. 39 Indias ecommerce growth, on the other hand, has been slower although the countrys potential remains solid considering its surging economy, the rapid growth of internet penetration, English language proficiency and a vast market of 1. billion consum ers (although perhaps only 50 million access the internet throug n PCs and some estimate the most active group of e-commerce customers numbers only 2-3 million). E-commerce traffic grew about 50% from 2011 to 2012, from 26. 1 million to 37. million, according to a report released by Com Score. Still much of the estimated 14 billion dollars in 2012 ecommerce was generated from travel sites. ecommerce is also expanding across the Middle East. Having recorded the worlds fastest growth in internet usage between 2000 and 2009, the region is nowwhen? home to more than 0 million internet users. Retail, travel and gaming are the regions top ecommerce segments, in spite of difficulties such as the lack of region-wide legal frameworks and logistical problems in cross-border transportationcitation needed.E-commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them. 4041 In 2012, ecommerce sales topped $1 trillion for the first time in history. 42 Impact on markets and retailersedit Economists have theorized that e-commerce ought to lead to intensified rice competition, as it increases consumers ability to gather information about products and prices.Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshopsand travel agencies. Generally, larger firms are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend. 43E CommerceElectronic commerce, commonly known as e-commerce or ecommerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technolo gies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDILinventory management systems, and automated data collection systems.Modern electronic commerce typically uses he World Wide Web at least at one point in the transactions life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices, social media, and telephones as well. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business. E-commerce can be divided intoE-tailing or virtual storefronts on websites with online catalogs, sometimes gathered into a virtual mall Buying or Selling on various websites and /or online marketplaces The gathering and use of demographic data through Web contacts and social media Electronic Data Interchange (ED), the business-to-business exchange of data E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters) Business-to-business buying and selling The security of business transactions Types of e-commerceedit The major different types of e-commerce areBusiness-to-Business (82B) 82B e-commerce is simply defined as e-commerce between companies. This is the type of e-commerce that deals with relationships between and among businesses. About 80% of e-commerce is of this type, and most experts predict that 82B e- commerce will continue to grow faster than the B2C segment. The 82B market has two primary components e-frastructure and e-markets. Business-to-consumer (B2C) Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information purchasing physical goods i. . , tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books) and, for information goods, receiving products over an electronic network. It is the second largest and the earliest form of e-commerce. Business-to-Government (826) Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations.This kind of e-commerce has two features first, the public sector assumes a pilot/ leading role in establishing e-commerce and second, it is assumed that the public sector nas the greatest need tor making its procurement system more ettective. Web- based purchasing policies increase the transparency of the procurement process (and reduces the risk of irregularities). To date, however, the size of the B2G e- commerce market as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped. Consumer-to-consumer (C2C)Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. This type of e-commerce is characterized by the growth of electronic marketplaces and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers. It perhaps has the greatest potential for developing new markets. Mobile Commerce (m-commerce) M-commerce (mobile commerce) is the buying and selling of goods and services through wireless technology-i. e. , handheld devices such as cellular telephones and personal digital assistants (PDAs).Japan is seen as a global leader in m-commerce. As content delivery over wireless devices becomes faster, more secure, and scalable, some believe that m-commerce will surpass wireline e-commerce as the method of choice for digital commerce tr ansactions. This may well be true for the Asia-Pacific where there are more mobile phone users than there are Internet users. Governmental regulationedit In the United States, some electronic commerce activities are regulated by the Federal Trade Commission (FTC). These activities include the use of commercial e- mails, online advertising and consumer privacy.The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising must be truthful and non-deceptive. 24 Using its authority under Section 5 of the FTC Act, which prohibits unfair or deceptive practices, the FTC has brought a number of cases to enforce the promises in corporate privacy statements, including promises about the security of consumers personal information. 25 As result, any corporate privacy policy related to e- ommerce activity may be subject to enforcement by the F TC.The Ryan Haight Online Pharmacy Consumer Protection Act of 2008, which came into law in 2008, amends the Controlled Substances Act to address online pharmacies. 26 Internationally there is the International Consumer Protection and Enforcement Network (ICPEN), which was formed in 1991 from an informal network of government customer fair trade organisations. The purpose was stated as being to find ways of co-operating on tackling consumer problems connected with cross-border transactions in both goods and services, and to help ensure exchanges of nformation among the participants for mutual benefit and understanding.From this came Econsumer. gov, an ICPEN initiative since April 2001. It is a portal to report complaints about online and related transactions with foreign companies. There is also Asia Pacific Economic Cooperation (APEC) was established in 1989 with the vision of achieving stability, security and prosperity for the region through free and open trade and investment. APE C has an Electronic Commerce Stearing Group as well as working on common privacy regulations throughout the APEC region. In Australia,Trade is covered under Australian Treasury Guidelines tor electronic commerce, 27 and the Australian Competition and Consumer Commission28 regulates and offers advice on how to deal with businesses online,29 and offers specific advice on what happens if things go wrong. 30 Also Australian government e-commerce website31 provides information on e-commerce in Australia. In the United Kingdom, The FSA (Financial Services Authority)32 is the competent authority for most aspects of the Payment Services Directive (PSD).The UK implemented the PSD through the Payment Services Regulations 2009 (PSRs), which came into effect on 1 November 2009. The PSR affects firms providing payment services and their customers. These firms include banks, non-bank credit card issuers and non-bank merchant acquirers, e-money issuers, etc. The PSRs created a new class of regulat ed firms known as payment institutions (Pls), who are subject to prudential requirements. Article 87 of the PSD requires the European Commission to report on the implementation and impact of the PSD by 1 November 2012. 33 Formsedit Contemporary electronic commerce involves everything from ordering digital ontent for immediate online consumption, to ordering conventional goods and services, to meta services to facilitate other types of electronic commerce. On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce.Aside from traditional e-commerce, m-Commerce as well as the nascent t- Commerce34 channels are often seen as the current 2013 poster children of electronic I-Commerce. Global trendsedit In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the am ount spent per capita. 35 The Czech Republic is the European country where ecommerce delivers the biggest contribution to the enterprises total revenue. Almost a quarter (24%) of the countrys total turnover is generated via the online channel. 36 Among emerging economies, Chinas e-commerce presence continueswhen? to expand. With 384 million internet users, Chinas online shopping sales rose to $36. 6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online. 37 Chinas cross-border e-commerce is also growing rapidly. E-commerce transactions between China and other countries increased 32% to 2. 3 trillion yuan ($375. 8 billion) in 2012 and accounted for 9. % of Chinas total international trade 38 Other BRIC countries are witnessing the accelerated growth of ecommerce as well. In Russia, the total ecommerce market is projected to total somewhe re between 690 billion rubles ($23 billion) and 900 billion rubles ($30 billion) in 201 5, at 2010 values. This will equal 5% of total retail volume in Russia. Longer-term, the market size of Russian e-commerce could reach $50 billion by 2020. Brazils ecommerce is growing quickly with retail ecommerce sales expected to grow at a healthy double-digit pace through 2014.By 2016, eMarketer expects retail ecommerce sales in Brazil to reach $17. 3 billion. 39 Indias ecommerce growth, on the other hand, has been slower although the countrys potential remains solid considering its surging economy, the rapid growth of internet penetration, English language proficiency and a vast market of 1. billion consumers (although perhaps only 50 million access the internet throug n PCs and some estimate the most active group of e-commerce customers numbers only 2-3 million). E-commerce traffic grew about 50% from 2011 to 2012, from 26. 1 million to 37. million, according to a report released by Com Sco re. Still much of the estimated 14 billion dollars in 2012 ecommerce was generated from travel sites. ecommerce is also expanding across the Middle East. Having recorded the worlds fastest growth in internet usage between 2000 and 2009, the region is nowwhen? home to more than 0 million internet users. Retail, travel and gaming are the regions top ecommerce segments, in spite of difficulties such as the lack of region-wide legal frameworks and logistical problems in cross-border transportationcitation needed.E-commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them. 4041 In 2012, ecommerce sales topped $1 trillion for the first time in history. 42 Impact on markets and retailersedit Economists have theorized that e-commerce ought to lead to intensified rice competition, as it increases consumers ability to gather information about products and prices.Research by four economists at the University of Chica go has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshopsand travel agencies. Generally, larger firms are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend. 43