3 Type E-Commerce Applications
Trades is an activity done by human beings since ancient origin. In line with human and technological developments, the trade ways and means constantly changes. A new form of trades is called e-commerce. In general, e-commerce defined as all forms of commercial transactions (goods and services) using electronic media. Popular electronic media used today is the internet. Future technological developments provide an open possibility to use other media besides the Internet for trading.
In e-commerce, the parties do commercial activities through a public network called the internet. E-commerce is the business activities where companies and consumers connected through electronic transactions. In addition to trade in goods, services and information are also done electronically.
E-commerce is used as a business transaction between companies, companies with clients, or between the companies and of public service institutions. E-commerce systems can be classified into three types of applications, namely:
a. Electronic Markets (EMS), is a means of using information and communication technology to perform or present the offering in a market segment, so shoppers can compare a wide range of prices offered. In another sense, the EMS is an inter-organizational information system that provides facilities for buyers and sellers to exchange information about prices and product offerings. EMS facilities for customer profitability realism and efficient in terms of time, whereas for the seller, it can distribute information about the products and service more faster so that it can attract more customers.
b. Electronic Data Interchange (EDI), is a means to improve efficiency of data exchange transactions that recur regularly in large amounts between commercial organizations. Formally, the EDI is defined by the International Data Exchange Association (IDEA) as "unstructured data transfer to an agreed standard format, which is done from one computer system to another computer system using electronic media". The use of EDI is very wide, typically used by large retail groups, while doing business transactions with their suppliers. EDI has standardized coding commercial transactions, commercial organizations are able to communicate directly from one computer system to another computer system, without the need for hard copy or an invoice, so it can avoid delays and minimize error. The advantage of using EDI is a short load time, reduce costs, reduce errors, response and quick delivery and accurate invoicing and payment can be done electronically.
c. Internet Commerce
This is internet-based information and communication technology for commercial activities, such as selling of products and services. Transactions can be done on the internet, purchase of goods will be sent by mail or other delivery service after the money is transferred to the seller bank account. Benefits using Internet as sales channels, among others:
• for some specific products, offering via the internet is more appropriate;
• cheaper price because making sites on the internet is cheaper than open retail stores in various places;
• Internet is a global promotion channel and with relatively cheaper prices;
• Internet shopping will always be followed by delivery services to customer.
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