E-COMMERCE
Tantum not only decided to expand its markets in Singapore and Hong Kong, but also on the internet. We planned to open a new website portal where our customers can easily learn more about our company and our services. Here’s the main features that you need to know about ecommerce.
Electronic commerce (ecommerce) enables a firm on an individual to conduct business over the internet. It has allowed firms to estabilish a market presence or to enhance an existing market position, by provising a cheaper and more efficient distribution chain for their products or services.
Advantages to businesses
Some of the reasons that could push a business, like Tantum, to have ecommerce website are multiple. First of all it is relatively inexpensive when compared to the ratio of costs and the number of potential customer reached, in fact Tantum will reach a worldwide audience for a small portion of capital needed. Selling products on the internet involves lower fixed costs than traditional retail stores (no need for expensive locations) and these cost savings could be passed on in lower prices.​
Advantages to customers
The internet is convenient for consumers to use. They can quickly compare prices from may suppliers worldwide and there is a huge product choice online. Online stores are open 24/7, much more convenient that most shops’ opening hours. Also, prices are often lower that for same goods/services from traditional retailers. Lastly, no time or money are spent travelling to physical stores and no time spent queuing.​
Disadvantages to businesses
However, ecommerce has some drawbacks. Some countries still have low-speed internet connection, and in poorer countries computer ownership is not widespread. Also, the cost and reliability of postal services in some countries may reduce the cost advantage of internet selling. In addition, businesses need to remain competitive as price comparisons by consumers are easy.​
Disadvantages to customers
Some of the limitations that ecommerce has include the impossibility to see, touch, try on products before they are delivered. Also, customers must have a reliable internet connection to purchase online. In addition some customers are concerned about credit card fraud and loss of personal information.​
(Business Management textbook, page 455)
The different types of e-commerce
Business to business (B2B)
In a Business-to-Business E-commerce environment, companies sell their online goods to other companies without being engaged in sales to consumers. In most B2B E-commerce environments entering the web shop will require a log in. B2B web shop usually contains customer-specific pricing, customer-specific assortments and customer-specific discounts.​
Business to customer (B2C)
In a Business-to-Consumer E-commerce environment, companies sell their online goods to consumers who are the end users of their products or services. Usually, B2C E-commerce web shops have an open access for any visitor and user.business selling to the general public typically through ctalog litilizing shopping card or software.​
Customer to customer (C2C)
C2C type of ecommerce allows consumers to trade with each other. C2C sites make their money from fees charged to sellers for listing items for sale. Products sold through C2C are often used or second hand. However it has some disadvantages, like the lack of quality controls.
(Business Management textbook, page 454; https://en.wikipedia.org/wiki/Types_of_e-commerce#Business-to-Business_.28B2B.29)
