E-Commerce

Definition and Structure of E-Commerce

E-Commerce, short for electronic commerce, refers to the buying and selling of goods or services, or the transfer of money or data, over an electronic network, particularly the Internet.
It operates in four main market segments: business to business (B2B), business to consumer (B2C), consumer to consumer (C2C), and consumer to business (C2B).
E-Commerce applications include online shopping, internet banking, online ticketing and online auctions.

The growth of e-commerce has resulted in a considerable impact, both positive and negative, on society, business, and the environment.
Ethically, e-commerce poses concerns related to privacy of individuals, as large amounts of personal data are collected and stored online. It’s important for businesses to be transparent about data collection and protect customer’s information.
Legally, businesses involved in e-commerce are responsible for complying with laws and regulations related to electronic transactions, privacy, security, and intellectual property. In the UK, the Electronic Commerce Regulations (2002) stipulate specific requirements for businesses selling goods/services online.
From an environmental perspective, while e-commerce reduces the need for physical stores, the increase in packaging and delivery has negative impacts. Plus, electronic waste generated by obsolete technology can be harmful if not disposed properly.

E-commerce has transformed business by reducing geographical restrictions, increasing speed of transactions, reducing operational costs and facilitating personalised marketing.
It also impacts supply chain management and customer service, allowing for efficient inventory management, quick delivery and easier return/exchange options.

Secure e-commerce platforms are vital to prevent cybercrime. Businesses can use encryption, firewalls, and security protocols such as Secure Sockets Layer (SSL) to protect payment information and personal data.
HTTPS/ (Hyper Text Transfer Protocol Secure) is a protocol used to provide security over the internet. Websites using HTTPS encrypt customer information, making it safer to conduct transactions online.

Advancements in technology continue to shape the future of e-commerce, with a growing focus on mobile commerce, virtual reality, artificial intelligence, and personalised shopping experiences.