Explanation and History About E-commerce

E-commerce is stand for of eletronic commerce which is marketing, selling and buying goods or services through eletronic channels such as TV, internet and others. E-commerce was first introduced in 1994 by a company for advertising purposes and promoted its products, but in 1994 E commerce was not yet popular among the public. Around 1999 and 2000 E-commerce was only popular with the community because it was secure, mature and used by many HTTPS protocols, special protocols that use encryption to protect the interests of customers.

E-commerce entered Indonesia in 1996 which was marked by Bhinneka.com but only limited to a company profile. In addition to bhinneka.com, the first online book store that appears is sanur.com. In 2000 to 2007 many new start-up start-ups were playing in E-commerce that generally ran in the field of buying and selling. In 2011 GO-JEK became a breakthrough in the field of Ecommerce and since then many companies have started businesses in ecommerce fields such as bukalapak.com and zalora group. In 2014 tokopedai became the first startup to receive investments of 100 million US dollars, this year more and more are looking at businesses in the field of Ecommerce such as elevania and marketplace.

Advantages and Disadvantages of E-Commerce

A. Advantages

1. The process of selling and buying occurs faster

2. Service can occur 24 hours

3. Low operating costs

4. Easy to start and process business

5. It is easier for customers to choose the desired item without moving to the store

6. No need to queue

7. Lots of price promos

8. Your business can reaches the whole world or all corners of the country

B. Disadvantage

1. A lot of fraud

2. Quality is not guaranteed

3. External interference such as electricity suddenly goes out

4. Hacking can occur so that customer data is open

5. Internet access that is not fast and cheap in Indonesia is a problem for customers if they want to shop online

Form E-Commerce

1. Classifieds

Classifieds is one of the simplest forms of business in E-commerce.This form has the characteristic that the E-commerce web provider does not facilitate and is not involved when there is a direct buying and selling process and the E-commerce party benefits from the payment of premium advertisements installed on the web.

2. Business to Business

Covers all transactions of goods or services carried electronically and carried by a company with another company. Generally this type of E-commerce uses EDI

(Electronic data interchange) and e-mail in the process of buying and selling goods and services, consulting, etc.

Example : website E-commerce bizzy and ralali.

3. Business to Costumer

the type of E-commerce that is carried out between the company and its own customers