INTRODUCTION.
1: E commerce: Refer to buying and
selling of products over the web.
However any transaction that is completed through electronic is also
considered to be e commerce .The following are the depths with example of
available models of e commerce are mentioned and explained bellow as follows
This is the practice of selling online from
one business to another with the aim of making profit whereby one business
sells its products to an intermediate buyer who then sells the product to the
final customer. As an example, a whole seller places an order from a company’s
website and after receiving the consignment, sells the end product to the final
customer who comes to buy the product at one of its retail outlet.
Through this model one business sell its product direct to a customer. A customer can view the products shown on the website. The customer can choose a product and order the same. The website will then send a notification to the business organization via email and the organization will dispatch the product or goods to the customer. Through e commerce it is easy for business to target specific consumers online because business is able to put their products online allowing the consumers to purchase the product in the comfort of their own home
Through
this model a website helps consumers to sell their assets like residential
property, cars, motorcycles, etc, or rent a room by publishing their
information on the website. Website may or may not charge the consumer for its
services. Another consumer may opt to buy the product of the first customer by
viewing the post or advertisement on the website. consumer is the one who pays
to consume the goods and services produced this is because consumers is the
main source of demand for all the goods produced because the producer of
agriculture products are all producing various items according to the demand in
the market this business model which third part companies facilitate
transaction for product or service between private consumer without a business.
In
this model, a consumer approaches a website showing multiple business
organizations for a particular service. The consumer places an estimate of
amount he/she wants to spend for a particular service. For example, the
comparison of interest rates of personal loan/car loan provided by various
banks via websites. A business organization who fulfills the consumer’s
requirement within the specified budget, approaches the customer and provides
its services.
This
model is variant of B2B model. Such websites are used by governments to trade
and exchange information with various business organizations. Such websites are
accredited by the government and provide a medium to businesses to submit
application forms to the government.
Governments
use B2B model website to approach business organizations. Such website supports
auctions, tenders, and application submission functionalities.
Government
use this model website to approach citizen in general. Such websites support
auctions of vehicles, machinery, or any other material. Such website also
provides services like registration for birth, marriage or death certificates.
The main objective of G2C website is to reduce the average time for fulfilling
citizen’s requests for various government services.
2 .Importance of e
commerce
to small and medium enterprise in developing countries
E-commerce has the ability to play an
instrumental role in helping developing economies benefit more from trade.
Unlike the requirements necessary to run a business from a physical building,
e-commerce does not require storage space, insurance, or infrastructure
investment
·
Enabling supply chain activities
such
as inventory management, order processing and fulfillment, and communication
with multiple stakeholders.
·
Controlling business cost .
The
business through the use of e-commerce is then able to reduce cost of an
organization. The cost of creating, distribution and retrieving paper based on
information.
·
Expand market
One
of major advantages of doing business online is ability of the producer to
reach a large market of potential consumers who are no longer bound by the
constraints of physical location and time.
·
Value creation
This
refer to the value created for all participating parties in e-commerce this is
usually made up of the customers supply and firm as regards product and
services.
·
Production gain and system efficiencies
In
this e-commerce help to improving business process there by attracting new
customers to the organization and also offering automated work processes and
enabling adequate system efficiencies and inter firms.
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