Although the terms e-business and e-commerce are frequently used interchangeably, e-commerce is actually one component of e-business. Generally e-commerce covers the aspects of conducting business transactions via the INTERNET. This would include on-line marketing, sales, processing orders, customer issues, and supplier issues. From using the Internet, both business-to-business (B2B) and business-to-customer (B2C) relationships have evolved from traditional forms into a digital interface. To the extent that this interface involves sales and sales support and the exchange of goods and services for money or BARTER, it is defined as e-commerce. An integral part of e-commerce is the website on the World Wide Web. There are various levels for which a company may use its website. The simplest level entails ADVERTISING an informational presence and display of products worldwide. Intermediate levels would be adding such features as e-mail and/or data-driven capabilities. The most complex level constitutes e-commerce, comprising a fully functional storefront that allows ordering and payment capability on-line. The latter requires addressing issues for payment security for the customer. Options for ordering on-line include CREDIT CARDS, electronic wallets, electronic cash, and smart cards. A secure server protects information that is stored on it, and for some businesses like banks or investment brokers, this issue is a mandatory requirement for the customer. Use of encryption, for example a two-key public key system, protects the customer’s information while it is being transmitted across the Internet. The success of an e-commerce website includes development of effective INTERNET MARKETING for the website. Attracting traffic and building customers involve adding some new approaches to the traditional marketing approach. These include use of banners, links to other websites, affiliate programs, viral marketing, and searchengine registration. The use of one-to-one marketing has become common because of the ease with which data can be accumulated, sorted, weighted, and evaluated through use of the computer. This one-to-one approach allows specific tailoring of SALES PROMOTIONs to the individual’s need or area of interest. Of course, customer consent to gather and use personal information should be acquired before using this promotional technique. Including a policy statement on an e-commerce site concerning use of information gathered helps create a vital comfort level for the customer. When a bricks-and-mortar company also establishes a presence on the Web, the term “bricks and clicks” is often applied to define the new multichannel e-commerce venture. Some businesses, however, exist only on the Web. For example, Amazon.com does not have any physical retail outlets. It conducts only e-commerce and exists as an e-business, utilizing its computer software for all aspects of its existence. In contrast, Talbots.com is a “bricks and clicks” example, with physical stores, a catalog, and an Internet presence.
See also DOT-COMS.
Leanne McGrath