E-Commerce Business and Its Effects

The full form of e-commerce is electronic commerce, wherein businesses are run using Internet. Electronic commerce brings in technologies such as mobile payment often termed as mobile commerce, online transaction processing , transfer of funds from one bank account to another called  electronic funds transfer, supply chain management, digital marketing,  inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction’s life cycle, although it may also use other technologies such as e-mail.

How Does E-Commerce Work?

Online shopping websites for retail sales direct to consumers, providing online marketplaces, which process third-party business-to-consumer (B2C) or consumer-to-consumer (C2C) sales, Interchange of electronic data between business to business, also buying and selling from business to business, gathering and using demographic data through web contacts and social media.


In 1971 or 1972, the ARPANET was used to arrange a sale between students at the Stanford Artificial Intelligence Laboratory and the Massachusetts Institute of Technology, later described as “the seminal act of e-commerce” in John Markoff’s book What the Dormouse Said.

And in 1995, Jeff Bezos launched Amazon.com. In 1996, Indiamart B2B marketplace was established in India. Alibaba started in China in the year 1999. And in 2001, they first achieved profitability. In the year 2007, Flipkart opened its website.

Regarding the regulations in online shopping, different countries are trying to implement new laws. In India, e-commerce is basically governed by Information Technology Act 2000. In 2012, ecommerce sales topped $1 trillion for the first time in history. Mobile devices are playing an increasing role in the blend of eCommerce. E-commerce is recognized for its ability to allow businesses to communicate and form transaction anytime and anyplace. Due to the introduction of ecommerce, the potential of supply chain management has been discovered newly and effectively.


With the introduction of e-commerce, its charm that has appeared gradually, physical/virtual – enterprise,  financial institutions, network marketing, online shopping, payment and advertising has become as familiar to people. This reflects that e-commerce has huge impact on the economy and society from the other side.

E-commerce has made us understand the valuation of time.

The most beneficial part of e-commerce is they give vast information like making information into total transparency, forcing enterprises to use the mode of space or advertisement to raise their competitive edge. Moreover, in theory, perfect competition between the consumer sovereignty and industry will maximize customer satisfaction.

The new economy led by the e-commerce changes the whole game – it is the employee loyalty. Due to competition in the market, the employee’s level of professionalism becomes crucial for enterprise in the niche market. The enterprises must pay attention on how to build up the enterprises inner culture and a set of interactive mechanisms and it is the prime problem for them.

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