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Electronic commerce, commonly known as e-commerce, is a type of industry where buying and selling of product or service 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 (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's 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 into: E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall" The gathering and use of demographic data through Web contacts and social media Electronic Data Interchange (EDI), 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
Business applications[
An example of an automated online assistant on a merchandising website.
Some common applications related to electronic commerce are the following: Document automation in supply chain and logistics Domestic and international Payment systems Enterprise content management Group buying Automated online assistants Instant messaging Newsgroups Online shopping and order tracking Online banking Online office suites Shopping cart software Teleconferencing Electronic tickets
Social-Networking
Governmental regulation[
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 [23] advertising, and states that advertising must be truthful and non-deceptive. 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 [24] the security of consumers' personal information. As result, any corporate privacy policy related to ecommerce 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, [25] amends the Controlled Substances Act to address online pharmacies. 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 information among the participants for mutual benefit and understanding. From this came econsumer, as an initiative of ICPEN since April 2001. www.econsumer.gov 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. 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 for electronic commerce, and [27] the Australian Competition and Consumer Commission regulates and offers advice on how to deal [28] [29] with businesses online, and offers specific advice on what happens if things go wrong. Also Australian government e-commerce website
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In the United Kingdom, The FSA (Financial Services Authority) 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 regulated firms known as payment institutions (PIs), who are subject to prudential requirements. Article 87 of the PSD requires the European Commission to report on the [32] implementation and impact of the PSD by 1 November 2012.
Forms[edit]
Contemporary electronic commerce involves everything from ordering "digital" content 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-Commerce often seen as the current 2013 poster children of electronic I-Commerce.
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channels are
Global trends[edit]
In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the [34] amount spent per capita. 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 [35] turnover is generated via the online channel. Among emerging economies, China's e-commerce presence continues to expand. With 384 million internet users, China's 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 [36] retailers have been able to help consumers feel more comfortable shopping online. eCommerce is also expanding across the Middle East. Having recorded the world's fastest growth in internet usage [when?] between 2000 and 2009, the region is now home to more than 60 million internet users. Retail, travel and gaming are the region's top eCommerce segments, in spite of difficulties such as the lack [37] of region-wide legal frameworks and logistical problems in cross-border transportation. ECommerce has become an important tool for small and large businesses worldwide, not only to sell to [38][39] customers, but also to engage them. In 2012, ecommerce sales topped $1 trillion for the first time in history.
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2. Alternate Views
As important as it is to have quality images on your product pages, it is also important to display the product in as many angles and details as possible. Remember, the sale is in the details. People want to see exactly what they are getting. Having alternate views will likely decrease your return rate as youre showing customers exactly what they are getting. If you are sell ing expensive goods, alternate views are a must. Remember that online shoppers are concerned about product authenticity alternate views can help.
3. Zoom Feature
Related to alternative image views, the "zoom" feature on product images has become increasingly popular. This helps consumers get a better view of the product.
4. Consumer Reviews
Shoppers care what others have to say. If your product pages have consumer reviews, youre helping shoppers make a final decision. Not all products have positive reviews. In fact, many have both positive and negative reviews, which,makes the shopping experience that much more authentic and real for the shopper. There are many great review platforms to choose from, if your cart doesn't provide one.
5. Product Comparisons
Product comparisons can improve a shopping experience and increase sales. Consumers typically shop for similar features. A product comparison feature on product pages can help them view features side-by-side, instead of flipping through many pages. Many shopping carts are starting to incorporate this feature into their platforms.
6. Live Chat
Live chat is very important to an ecommerce site. This feature should be site wide, but especially on every product page. Live help can help close the sale. Customer questions can be answered immediately. There are many live help platforms in the marketplace to choose from.
7. Product Demos
Product demos are increasingly popular. They inform the consumer and can really help decrease return rates. Employees of Office Depot recently displayed that company's product demonstration feature at an Internet Retailer conference, stating it sharply increased sales. Also, TigerDirect.com uses product demos to show, explain and educate consumers about that specific product.
Economy
Unlike the brickandmortar environment, in ecommerce there is no physical store space, insurance, or infrastructure investment. All you need is an idea, a unique product, and a welldesigned web storefront to reach your customers, plus a partner to do fulfillment. This makes ecommerce a lot more economical.
Higher Margins
Ecommerce means higher margins. For example, the cost of processing an airline ticket is 5. According to one travel agency, processing the same ticket online costs 1. Along with higher margins, businesses can gain more control and flexibility and are able to save time when manual transactions are done eletronically.
Productivity Gains
Weaving the web throughout an organisation menas improved productivity. For example IBM incorporated the web into every corner of the firm products, marketing, and practices. The company figured it would save $750 million by letting customers find answers to technical questions via its website. The total cost savings in 1999 alone was close to $1 billion.
Teamwork
Email is one example of how people collaborate to exchange information and work on solutions. It has transformed the way organisations interact with suppliers, vendors, business partners, and customers. More interactions means better results.
Knowledge Markets
Ecommerce helps create knowledge markets. Small groups inside big firms can be funded with seed money to develop new ideas. For example, DaimlerChrysler has created small teams to look for new trends and products. A Silicon Valley team is doing consumer research on electric cars and advising car designers.
System Scalability
A business develops an interactive interface with customers via a website. After a while, statistical analysis determines whether visitors to the site are onetime or recurring customers. If the company expects 2 million customers and 6 million show up, website performance is bound to experience degradation, slowdown, and eventually loss of customers. To stop this problem from happening, a website must be scalable, or upgradable on a regular basis.
Corporate Vulnerability
The availability of product details, catalogs, and other information about a business through its website makes it vulnerable to access by the competition. The idea of extracting business intelligence from the website is called web framing.