E-Commerce 101 by: Janette Toral
E-commerce is the exchange of information or transactions using any form of electronic communication. With the Philippine E-Commerce Law (Republic Act 8792), it covers both commercial and non-commercial transaction.
People who are reluctant with e-commerce often reason that they have no interest in using it. But actually, we've been practically doing e-commerce since the emergence of computers and telecommunication technologies. It even became more prevalent as fax machines entered our lives; retail shops implemented point of sales (POS) systems and bar coding; automated teller machines (ATM) in bank system; wireless telecommunications (mobile phone and text messaging). All of this forms of e-commerce system where human intervention is becoming less and less.
In a snapshot, there are two types of doing e-commerce. Let me use a simple analogy. When you go to the supermarket, purchase your groceries and pay them over the counter, that type of service is what we would refer to as Business-to-Consumer (B2C). So when you buy books, food, groceries, CD, software, hardware from your favorite shopping web sites, that is B2C, e-commerce between businesses and consumers. With the pervasive use of mobile phone, the automated reloading of your prepaid phone card is also e-commerce and a B2C transaction.
The supermarket on the other hand, will need to purchase the goods, to be put on the grocery shelves, from its suppliers. The business transaction that takes place on this end is what we would refer to as Business-to-Business (B2B). So when supermarkets, bookstores, computer stores, restaurants, music outlets, purchase their goods from their suppliers either via fax, EDI, email, and other means (including paper), that is B2B, e-commerce between businesses. The same applies to prepaid phone card reload dealers who purchase prepaid credits to be loaded in their mobile phone sales unit.
With the emergence of the Internet commercially, as it started in the Philippines in 1994, e-commerce took a new manifestation and businessmen can now sell their good through ones website and close sales transaction either online or through e-mail. Websites like PinoyDelikasi.com, TitikPilipino.com, YOSSN.com, YesPinoy.com, MyAyala.com, Load.com.ph, are just some sites that sells its goods and services online.
E-commerce is not only for big companies. The small to medium sized companies should consider e-commerce more and has a much higher need for it. With the advent of greater global trade (GATT, ASEAN, APEC initiatives), it is imperative that small to medium sized companies automate their business to compete with foreign brands, as international and intra-regional trade will increase exponentially. Manual processes in the supply chain that are slow, redundant, unreliable, inefficient can be replaced with more efficient ones.
Entrepreneurs who sell goods and services to a global audience, can utilize the Internet as a medium. With less human intervention, Internet-based businesses are open 24 hours a day, 7 days a week that can accommodate any customer irregardless of their time zones. But of course, an Internet-based business is not just about building websites and expect profits to just come, the infrastructure to complete the sales cycle must be all covered from B2B to B2C. It is similar to building a physical branch or office but accessible to a global audience.
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E-Commerce for SMEs: Making SMEs Competitive Today
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