Summary 8.0 The Internet: Electronic Commerce and Electronic Business. Latest Verified Review 2023 Practice Questions and Answers for Exam Preparation, 100% Correct with Explanations, Highly Recommended, Download to Score A+

8.0 The Internet: Electronic Commerce and Electronic Business. Latest Verified Review 2023 Practice Questions and Answers for Exam Preparation, 100% Correct with Explanations, Highly Recommended, Download to Score A+ E-Commerce Today E-commerce refers to the use of the Internet and the Web to transact business. More formally, e-commerce is about digitally enabled commercial transactions between and among organizations and individuals. For the most part, this means transactions that occur over the Internet and the Web. Commercial transactions involve the exchange of value (e.g., money) across organizational or individual boundaries in return for products and services. E-commerce began in 1995 when one of the first Internet portals, N, accepted the first ads from major corporations and popularized the idea that the Web could be used as a new medium for advertising and sales. No one envisioned at the time what would turn out to be an exponential growth curve for e-commerce retail sales, which doubled and tripled in the early years. Mirroring the history of many technological innovations, such as the telephone, radio, and television, the very rapid growth in e-commerce in the early years created a market bubble in e-commerce stocks. Like all bubbles, the “dot-com” bubble burst (in March 2001). A large number of e-commerce companies failed during this process. Yet for many others, such as Amazon, eBay, Expedia, and Google, the results have been more positive: soaring revenues, fine-tuned business models that produce profits, and rising stock prices. By 2006, e-commerce revenues returned to solid growth, and have continued to be the fastest growing form of retail trade in the United States, Europe, and Asia. Why E-Commerce is Different Why has e-commerce grown so rapidly? The answer lies in the unique nature of the Internet and the Web. Simply put, the Internet and e-commerce technologies are much more rich and powerful than previous technology revolutions like radio, television, and the telephone. The unique features of the Internet and Web as a commercial medium are described as follows:- i) Ubiquity In traditional commerce, a marketplace is a physical place, such as a retail store, that you visit to transact business. E-commerce is ubiquitous, meaning that is it available just about everywhere, at all times. It makes it possible to shop from your desktop, at home, at work, or even from your car, using mobile commerce. The result is called a market space—a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location.