Table of Contents
Understanding E-Commerce
What is e-commerce? The word “e-commerce” is an English word which stands for Electronic Commerce, ie trade is carried out electronically.
E-commerce is the activity of using digital processing information and communication technology in conducting business transactions to create, change, and redefine the relationship between sellers and buyers.
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So, the definition of e-commerce is the activity of distributing, selling, purchasing, marketing products (goods and services), by utilizing telecommunications networks such as the internet and computer networks.
Simply put, e-commerce can be defined as the activity of buying and selling goods or services, which involves the transfer of funds and the exchange of data electronically connected to the internet.
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Several experts have explained the definition of e-commerce and its impact on society. Here are the opinions of experts regarding the definition of e-commerce:
1. Kennet C. Loudon and Jane P. Laudon
According to Loudon (1998), the notion of e-commerce is a transaction process carried out by buyers and sellers in buying and selling various products electronically from company to company using computers as intermediaries for business transactions.
2. Ravi Kalakota and Andrew B. Whinston
According to Kalakota and Whinston (1997), the notion of e-commerce is an online shopping activity using the internet network and the transaction method is through digital money transfers.
Kalakota and Whinston review the meaning of e-commerce from four perspectives, namely:
- Communication Perspective; The definition of e-commerce is a process of sending goods, services, information, or payments through computer networks or other electronic equipment.
- Business Process Perspective; e-commerce is the application of technology to the automation of business transactions and workflows.
- Service Perspective; e-commerce is a tool that can fulfill the desire of companies, management, and consumers to reduce service costs while improving the quality of goods and increasing the speed of delivery services.
- Online Perspective; E-commerce provides convenience to sell and buy products and information through internet services and other online means.
3. Jony Wong
According to Jony Wong (2010), the notion of e-commerce is the buying, selling, and marketing of goods and services through electronic systems.
4. Misty E. Vermaat
According to Vermaat, the notion of e-commerce is business transactions that occur in electronic networks such as the internet. In other words, anyone who has an internet network can participate in e-commerce activities.