Kurnia.com - Malaysia - What is e-Commerce

WHAT IS E-COMMERCE

e-Commerce is a common word nowadays, yet many of us may still be unsure of what it actually means. What is e-Commerce? It basically stands for electronic commerce, and is defined as conducting business activities electronically online or using the Internet.

"Security remains the number one concern among Internet users"

Many companies have already made their Internet move, shifting from "brick and mortar" (Traditional storefront) to "click and mortar" (Having both traditional storefront and conducting business through internet as well). For any business or individual to conduct e-Commerce, certain basic features have to be fulfilled: a product to sell, a website as a channel, order system (online form), payment system (credit card), product transportation to customers and customer service (email, FAQs).

e-Commerce provides cheap, user-friendly access to the resources available on the Internet, available 24x7 (24 hours a day, 7 days per week) and global, almost instant communications. Customers can access the Internet for any business transaction at any time of the day as long as they have Internet access, therefore the barriers of time, distance, nation and region may be eliminated.

Advantages for suppliers identified are :

	Interactivity - Improved interaction between customer and business (human or machine) - using emails, chats etc.
	Easy to capture customer profile that leads to personalized marketing by using information provided by customers.
	Easily implemented.
	Larger catalogs - Can build large catalog on the web that cannot fit into a paper catalog.
	Cheap access to all locations of businesses.
	Reduces costs of processes (Ordering, payment, delivery).

Advantages for customers :

	24 hours shopping.
	Increased competition leads to greater choice, lower cost.
	Product customization
	Personalized Information - Information tailored to individual's needs and requirements, e.g. Online Advertisements

However, there are problems faced by businesses conducting e-Commerce in attracting Internet users to shop and to make payment online via credit card. "How safe are online transactions?", "Can someone steal my credit card number?", "How do I know a merchant is authentic?", "Are my personal particulars given to other parties?". Security remains the number one concern among Internet users. Most of them are usually skeptical towards the feasibility of e-Commerce as this serves as a new channel for them. There may be lack of understanding and education of the advantages of e-Commerce.