Important Features of E-commerce
E-commerce is a business model or a larger business model that allows companies or individuals through the electronic network and is usually the type of business segments in the internet. It may also refer to the process of creating, marketing, servicing and paying for services and goods. Businesses, governments and the public can participate in eCommerce transactions.
E-commerce has the following features:
Individual Communication: Communication is individualized and interaction is with carefully selected individual customer. E-name is used for this purpose. More important is fact that you treat communication as one of the crucial building blocks of a successful e-commerce business.
Data Depository: Internet is a central depository of huge amounts of data. It can be accessed all over the world through search engines. Websites contain information and they can be downloaded as needed. In order to determine if the quality of data is high, look for four elements: accuracy, consistency, granularity, and robustness.
E-mail and Electronic Platforms: E-mail and computer faxing is used for speedy transfer of messages to conduct business. Electronic platforms can be :
- EDI : Electronic data interchange for placing orders to suppliers. It is business to business exchange of data.
- ATM : Automatic teller machine to facilitate receiving digital cash. Smart cards are used to make payments.
- Computers : They receive orders from customers.
On-line Selling: E-commerce uses on-line selling. It has revolutionized selling through E-tailing, specially for:
- Airlines tickets and hotel bookings.
- Shares and financial services
- Cars and other vehicles
- Computer hardware and software
- Books and music
- Consumer electronics
- Fashion goods
Relationship Marketing: E-commerce builds long-term mutually satisfying relations. This leads to life time loyal customers. Relationship marketing is all about keeping existing customers happy, rather than constantly focusing on attracting new customers. The relations are based on superior customer value and satisfaction. Long term profits are made by lifetime customer loyalty.
In fact, servicing and selling to existing customers is viewed to be just as important to long term success as attracting new customers. This can be difficult for many companies to get right, especially large companies that contain dedicated sales departments where the culture is always to focus on getting new sales.