Selecting New Type Of E-Commerce

New Types of e-Commerce:

Essential Considerations in the Decision to Adopt Emerging e-Commerce Tools

What is e-Commerce?

Electronic commerce is a flourishing concept that pertains to the process of buying, selling and exchanging of commoditiesÐŽXproducts, services and even informationÐŽXthrough computer and telecommunication networks covering the internet (Bushry, 2005). Electronic commerce may also be defined through various perspectives. From the view of communications, electronic commerce refers to the delivery or transfer of information on orders, purchases, payments, products, and services over the telephone, computer systems, or other electronic means. As a business concept, electronic commerce refers to the utilization of technology with the objective of automating business workflow and business transactions. From the point of view of service, electronic commerce refers to a valuable tool that meets the objective of business firms covering management and employees as well as consumers to cut back on high transaction costs giving way for the focus on improving quality of service and increasing the speed of commodity delivery. Lastly, from an online perspective, electronic commerce refers to the channel for selling and buying of commodities through the internet as well as other online services. The general concept of electronic commerce is networking information so that people are able to access different information on different matters from various locations and collaborate through the same channels. (Kalakota and Whinston, 1997)

What are the New Types of e-Commerce?

As e-Commerce intensifies into an important global tool, many businesses are becoming interested in joining the trend because of the increasing number of success stories on the manner that some companies have optimized e-Commerce in order to boost their sales in the global market. However, e-Commerce offers much more than internet sales especially with the development of a number of other electronic business relationships that offers more benefits to business organizations.

One new type of e-Commerce is business-to-consumer (B2C) marketplace where businesses are able to communicate indiscriminately to potential customers with the propensity for online purchasing. This is an effective marketing tool for many business firms because the only thing that needs to be improved is their marketing practices so that these firms are able to draw the interest of as many people to their online stores. (Epstein, 2004)

Another new type of e-Commerce is business-to-business (B2B) marketplace where different business firms are able to interact with each other in order to create supply chain links or meet new trading partners. This is as important as having a means of communication with customers because new or expanding businesses will experience great benefit from having a wide range of choices for business partners in the supply of various needed resources. (Epstein, 2004)

Still another type of e-Commerce is the business-to-administration (B2A) environment that supports the communication link between business firms and industries with the public sector organizations covering business applications, tax returns, patent registration and other necessary dealings with the government of the territory where business firms are registered or established. This provides not only the preliminary links between the private and public sectors to encourage cooperation but also provides ease in necessary transactions between the two sectors. (Epstein, 2004)

Other less formal types of e-Commerce consist of online portals, storefronts, auctions, exchanges, bulletin boards, communities, and other similar evolving channels of electronic information transfer. These sites vary in the modes of interaction offered. There are online sites that primarily offer information on various topics such as opinions, advice or comparison of various commodities or merely information on issues not linked to any purchasable commodity. Some online sites offer certain levels of interactive links such as ways of communicating with the organization through the site options. However, there are also business sites that offer not only interactive features but also options for the accomplishment of transactions. (Feldman, 2000)

These different forms of e-Commerce offer a wide array of utilities to different business firms and industries so that adopting e-Commerce and the appropriate e-Commerce tool for a business depends upon the needs and objectives of the firm.

What are the Benefits & Limitations of New Types of e-Commerce?

These emerging and evolving types of e-Commerce offer several potential benefits to business firms but there are also limitations. One benefit is the ability of e-Commerce to provide the business firm with a global reach in terms of market exposure. This means that business firms are able to introduce their commodities to a wider pool of potential customers increasing the probability of incurring sales while customers are able to have access to various products and brands giving them the choice of commodities to purchase and the business firm with whom they want to purchase. (Broadbent, 2002)

Another benefit is the minimization of staffing cost since e-Commerce solutions assume the tasks previously held by a number of people. Online contracting for the sales of different commodities means that there is minimal interaction between customers and the personnel of business firms in concluding sales contracts. Apart from sales contracting, e-Commerce solutions also enable customers to address various concerns in relation to their product, service and information needs since unlimited information may be searched online without need of contacting business firm staff. (Broadbent, 2002)

Still another benefit is the integration of banking and accounting transactions regardless of geographic location so that a multinational business firm is able to instantaneously update its financial performance by accessing the network links connecting its various subsidiaries. Accounting and auditing is made easy for business firms while fund transfer for payments is also easily done by consumers. (Kephart and Chess, 2003)

In addition, e-Commerce also speeds up response time for transactions because interaction happens almost in real time so that customers or bidders are able to quickly communicate their interest in the transaction and business firms are also able to confirm bids to conclude transactions