Many of us have become accustomed to electronic payment systems. These systems will continue to increase as businesses and banks present more opportunities to use them. Resource: Ch. 9 of Essentials of Management Information Systems Answer the following questions in 200 to 300 words: Name and describe various categories of e-commerce.
E-commerce has several different categories which include business-to-consumer, business-to-business, and consumer-to-consumer. The business to consumer category is probably what most think of when considering e-commerce.This category is best described as when a retailer offers products and services to an individual consumer. The business to business category of e-commerce may not be as popular in the public eye, but is an integral part of how companies conduct business.
Business to business e-commerce is basically when a business makes a business out of supporting other companies by selling them products they need to run their business. Consumer to consumer transactions are not a new idea, but the introduction of the e-commerce environment has drastically changed this category of e-commerce.It used to be that one could only sell unwanted or unneeded personal belongings to people in a relatively close geographical area. With e-commerce this is no longer the case. Sites like eBay allow people to sell items in their possession to the highest bidder without the constraint of geographical location.
When consumer to consumer transactions are done this way it allows the person selling their product to get a much fairer price for the products they are offering. Compare and contrast electronic payment systems.Which type do you use most often? Which type is most applicable for organizations you interact with regularly? There are many different types of electronic payment systems. Each of these systems has their own place in the e-commerce environment. One of these systems is the digital wallet.
This system makes it easier for consumers to buy things online without having to enter their credit card number over and over again. This helps to decrease the opportunities for your information to get stolen.The digital wallet securely stores your information for use at a later date. Conversely, an accumulated balance digital payment system basically does the same thing but the consumer does not have to pay the balance for the transaction immediately. This is usually done at a later date by billing you later or charging your credit card.
This system is for making micro payments over the web that would be too small for conventional credit card use. An online stored value payment system is almost like a digital wallet.It allows consumers to make instant online payments to individuals or merchants from a digital account that is stored online. I most often use the store value payment system when making purchases online.
When I interact with organizations I also regularly use digital checking to pay my bills. Explain how Internet technology supports business-to-business e-commerce. Internet technology supports business to business e-commerce in many ways. New internet technology has allowed businesses to make transactions between each other by connecting trough a network.
Instead of mailing and receiving various invoices, bills of lading, shipment schedules, and purchase orders they can now be transmitted electronically. Electronic data interchange or EDI has drastically changes the way companies conduct business between each other. Their systems automatically enter data on invoices, shipping schedules, etc. This eliminates the need for this information to be entered manually and saves the business time and protects from clerical errors that can be very detrimental to businesses running efficiently.
EDI's usually are run on private networks, but it becoming increasingly more popular to run them over the internet. This allows for businesses to be flexible when linking to other firms and keeps costs low. By doing this they can extend their digital technology to a wide range of activities allowing business partners to become a broader and more diverse. A business can also use internet technology to create new electronic storefronts that allow them sell to other companies with interactive multimedia displays previously only available in business to commerce transactions.
