iCheck Microsoft Office 2003 Introductory

These articles further explore computer safety, ethics, and many other topics covered in the Technology Handbook found in the student edition.

Impact of Computers on Society (p. H33)

Introduction Learn about e-commerce.

Directions Read the information below and apply what you learn to answer the questions. Check your work carefully, and click Check Answers.

What Is E-Commerce?

E-commerce, or electronic commerce, is the buying and selling of products and services over the Internet. Consumers use e-commerce to shop for certain products without leaving their home—they are able to search and pay for products that are delivered to their house. Businesses use e-commerce to reach more consumers, send information quickly, and have lower operating expenses.

Why Is E-Commerce So Popular?

In its inception, e-commerce was not very popular among consumers. Only a small percentage of Internet users bought products online because many were concerned about security issues involving e-commerce, such as the theft of credit card numbers that were used to pay for products on the Internet. As businesses made their Web sites more reliable, secure, and user-friendly, consumers began to experience the benefits of e-commerce. For example, shopping online allows consumers to quickly visit competitors’ Web sites to compare prices of certain products. Online shoppers are also able to check the inventory of a product, instead of going to a store only to find that the product they want is out of stock.

Businesses also reap many benefits from e-commerce. On the Internet, businesses are able to sell more products without the expense of hiring additional employees or opening new stores. E-commerce also makes it easier for businesses to keep track of sales and customer information.

What Are the Different Types of E-commerce?

Depending on how it uses the Internet, a company can be assigned to one of the following categories:

• Brick-and-mortar businesses do not sell their products on the Internet. They might have a Web site that describes their business, but they only sell products in physical locations.
• Click-and-mortar businesses sell their products both on the Internet and in stores. Many clothing companies are click-and-mortar businesses.
• Click-and-order businesses do not have any physical stores. They only sell their products on the Internet.

Different types of e-commerce transactions can be categorized as follows:

• Business-to-consumer (B2C) e-commerce involves businesses that sell their products online to individual consumers. Most click-and-mortar and click-and-order businesses involve B2C e-commerce.
• Business-to-business (B2B) e-commerce refers to transactions in which businesses use the Internet to sell products or services to other businesses, such as accounting services, business software, or production equipment.
• Consumer-to-consumer (C2C) e-commerce involves one person selling a product to another person, such as the products listed on eBay.

Are There Any Disadvantages to E-commerce?

Due to the popularity that e-commerce enjoys, consumers seem to believe that its advantages outweigh its disadvantages. However, some disadvantages do exist, such as not being able to see the product with your own eyes, the increasing number of pop-up ads on Web sites, and unsolicited e-mail from companies that engage in e-commerce. In addition, e-commerce could lead to a drop in jobs for sales clerks, store managers, and other employees who are no longer needed as the number of physical stores is reduced or even eliminated.

1			How do consumers benefit from e-commerce?
2			Give an example for each of the following: brick-and-mortar, click-and-mortar, and click-and-order business.
3			Give an example for each of the following: business-to-consumer, business-to-business, and consumer-to-consumer e-commerce.
4			Name two disadvantages of e-commerce.