E Commerce

E-Commerce A New Part Of Economy The Internet Economy (also sometimes called the New Economy or the Digital Economy is being driven by the linking of individuals and organisations through the technology of the Internet. E-commerce creates new challenges to nearly all branches of the economy.

That means the use of this technology and not only being present in the Web with an own website.

What Is E-Commerce? Electronic commerce is the process of two or more parties making business transactions via computer and some type of network. This includes B2B (=business to business) transactions, online retail and the digitalisation of the the financial industry, too. Furthermore it also includes all the steps which occur in any business cycle, such as placing ads, completing invoices, and providing customer support. E-commerce actually began in the 1970s when larger corporations started creating private networks to share information with business partners and suppliers. This process, called Electronic Data Interchange (EDI), nearly replaced paperwork and human intervention. It was, and is, the foundation of electronic commerce. Today, electronic commerce increasingly refers to business conducted over the Internet. But the e-commerce, which you hear about on the radio, see on TV, and read in the papers and online refers to online retailing - using the Web to sell goods, services, and information to consumers. It will reach 20 % of the market share or even more.

Online retailing, the typical web-shopping, began five years ago, and was pioneered largely by Internet companies that didnt perform traditional retailing, such as Amazon. com and CDNow. Electronic commerce is actually a management issue, not just a technology issue. Therefore, the e-commerce strategy must be consistent with the business. It is important to realise that e-commerce will have a major influence on how business itself works in the future, and is not just another new channel for marketing products and services.

Webvertisements To sell goods or services, advertisement is the first step to making them available to the public. The Web is a new way of presenting information to the public via the Internet, therefore advertising has to be redefined for it, too. Internet-advertising even seems to be the solution for the biggest problem of the industry of advertising: How can you reach the attention of the people between 25 and 35 with a high income? However, the mode of advertising has so far been similar to that used on TV and in newspapers. The most popular way of advertising in the Web are banners, it s the most effective way of promoting a website.

The structure of this direct marketing is simple: A banner, consisting of the textinformation and animated pictures, leads the webber by clicking on it directly to the website of the canvasser.

The advantage is obvious: Banners are much cheaper than conventional advertisements. In addition a banner can tell WHO, WHEN and HOW someone ...