E-Commerce: Definition and Buyer-Seller Transactions

First of all, we shall see the various perspectives through which e-commerce can be defined. From a communications perspective, e-commerce is defined as the delivery of information, products, services or payments made via telephone lines, computer networks or any other means.

From business process respective, e-commerce is defined as the application of technology towards the automation of the business transactions and workflow. From service prospective, e-commerce is defined as the tool that addresses the desire of the firm, consumer and management to cut service costs, improved quality and to reduce the service delivery time. From online perspective, e-commerce provides the capability of buying and selling products and information on the Internet and other online services.

Broadly speaking e-commerce pays emphasis on the generation and exploitation of the new business opportunities and using phrases such as, "generate business value " and " do more with less ". E-commerce endeavors to improve the online business transaction execution by providing better quality of service.

This improvement results in more effective performance, greater economic efficiency and rapid exchange, thus resulting in profitability of business. Another way of looking at e-commerce is to view it as a production process that converts digital data into value added outputs to a set of intermediaries.

Depending on how e-commerce is applied, it has the capability to increase revenue by creating new markets for old products, creating new information-based products, establishing new service delivery channels to better service and interaction with customers.

Electronic business generally takes place between at least two groups or individuals, the group or individual which is consuming the services or buying the products is called the buyer; and the group or individual which is providing the service or product at a price is called the seller. As the name suggests, e-commerce takes place on a virtual location. The transaction can be processed either through Web sites or by confirming e-mails.

The buyer and seller transaction is a simple process. Transactions are exchanges that, when one economic entity sells a product or service to another entity. Transaction takes place when a product or service is being transferred in a technological separable interface that links a consumer to a producer.

When buyer seller transaction occurs in an electronic marketplace, the information is accessed, absorbed, arranged and sold in different ways. To manage these transactions, e-commerce incorporates transaction management which routes, accesses, processes, organizes and tracks transactions. E-commerce also enables consumers to make online payment and funds transfer.