Introduction
E-Commerce refers to electronic transactions such as buying, selling, and exchanging goods, services, or information through computer communication networks, mainly the Internet. It includes activities like electronic retailing, electronic data interchange, and electronic fund transfer. The main aim of e-commerce is to reduce cost, shorten product cycle time, improve customer response, and deliver better-quality service.
Today, e-commerce has become a widely used method of trade. People can order food, buy clothes, pay bills, or even sell used products through online platforms. In Nepal, e-commerce is growing quickly, with many popular websites offering convenient buying and selling services. E-commerce is often called a “paperless business system” because everything happens digitally.
Technologies Used in E-Commerce
E-commerce depends heavily on Internet technologies. Some of the important technologies used are:
- E-mail for communication
- Fax for sending documents
- Online catalogues and shopping carts for browsing and buying products
- Electronic Data Interchange (EDI) for exchanging business information
- Online Payment Gateway for secure transactions
- Online security tools for data protection
- Information sharing protocols for smooth data flow
- Various web services for running websites
Differences: Traditional Commerce vs E-Commerce
Traditional CommerceE-CommerceTakes place physically, face-to-face.Happens online through the Internet.Limited to a specific location or area.Can reach customers globally.Transactions take more time (travel, queues).Transactions are quick and automated.Customers must visit the shop.Customers can buy from anywhere anytime.Product information comes from the seller.Product info, reviews, and comparisons available online.Needs physical shops and storage.No physical shop required.Operates during fixed business hours.Works 24/7.Manual record keeping.Electronic and automated records.Higher operating cost (rent, staff, utilities).Lower operating cost.Limited variety due to storage space.Huge variety available online.
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E-Commerce Practices in Nepal
Nepal has seen rapid growth in e-commerce. Now people can buy and sell items like phones, laptops, clothes, tickets, groceries, vegetables, and more online. Tools like eSewa and Khalti make online payments easier.
Popular Nepali E-Commerce Sites
- Daraz
- Hamrobazaar
- Nepbay
- Bhatbhateni Online
- Metrotarkari
- Muncha
- Kinmel
Common E-Commerce Trends in Nepal
- Sending gifts online
- Online classified ads and marketplace sites
- Showcasing and shopping through websites
- Buying international products
- Selling through social media platforms
Advantages of E-Commerce
- Faster buying and selling
- Can purchase anytime from anywhere
- No geographical boundaries
- No need for physical stores
- Lower operating cost
- Easy to start and manage business
- Customers can compare prices online
- User reviews help in making decisions
Limitations of E-Commerce
- No physical touch or feel of products
- Requires an internet-connected device
- Not all products can be bought online
- Easy to set up, so fake sites may appear
- Security risks to customer data
- Not everyone has internet access
- Technical issues can interrupt transactions
Types of E-Commerce
1. Business-to-Consumer (B2C)
B2C refers to online transactions between a business and a consumer. It is the most common type of e-commerce. Websites like Amazon serve as platforms where consumers directly buy goods from businesses.
2. Business-to-Business (B2B)
B2B occurs between companies. Wholesalers, manufacturers, and distributors mostly use this model. Individual customers cannot buy here. Alibaba is an example of B2B e-commerce.
3. Consumer-to-Consumer (C2C)
C2C happens between individual consumers. A third-party website provides a platform where one consumer sells goods to another. Examples: Hamrobazaar, Facebook Marketplace.
M-Commerce (Mobile Commerce)
M-commerce is the mobile-based version of e-commerce. It includes buying and selling goods and services using smartphones, tablets, or PDAs. Examples include mobile top-ups, balance inquiries, utility payments, hotel and ticket booking, and online shopping through apps.
Differences Between B2C, B2B, and C2C
BasisB2C (Business to Consumer)B2B (Business to Business)C2C (Consumer to Consumer)Who sells?Business/CompanyBusiness/CompanyIndividual ConsumersWho buys?Individual ConsumersOther Businesses/CompaniesIndividual ConsumersExampleDaraz, AmazonAlibaba, IndiamartHamrobazaar, Facebook MarketplaceProduct VolumeSmall quantitiesLarge/bulk quantitiesSmall/used itemsPricingFixed and retail priceNegotiated wholesale priceVaries based on sellerRelationship TypeShort-term, simpleLong-term, formalCasual, informalPlatform RoleBusiness controls entire processBusiness networks & contractsThird-party platform manages listingsTarget AudienceGeneral publicCompanies/industriesGeneral publicTransaction SpeedFastSlower due to contracts & approvalsDepends on buyer-seller communication
Online Payment
Online payment is an electronic method of paying for goods and services through the Internet. Different payment gateways ensure secure transactions.
Common Electronic Payment Modes
- Credit Card
- Debit Card
- Smart Card
- E-Money
- Electronic Fund Transfer (EFT)
- E-Cheque
Electronic Payment Systems in Nepal
- Credit cards (started by Nabil Bank in 1990)
- Debit cards
- ATM services (started by Himalayan Bank in 1995)
- EFTPOS
- Internet banking (introduced by Kumari Bank in 2002)
- Mobile banking (introduced by Laxmi Bank in 2004)
- Digital wallets: eSewa, Khalti
- Cash on Delivery (CoD)
Summary
E-Commerce means buying and selling through the Internet.
Uses technologies like email, EDI, payment gateway, web services, and more.
Three types of e-commerce: B2C, B2B, C2C.
M-Commerce is mobile-based e-commerce.
Online payments help in fast and secure transactions.
Technical Terms
E-Commerce: Buying and selling online
M-Commerce: Transactions using mobile devices
Online Payment: Paying digitally using Internet
B2C: Business to consumer
B2B: Business to business
C2C: Consumer to consumer