E-commerce, as the word suggests, means doing business on the Internet or online. The scope of the business may involve:
or selling durable goods online, like a phone, computer, or shoes
o Electronic items such as e-books, mp3 music, software, graphics or images
or sell ideas or services
In order to sell the goods, the merchant must have a website or a virtual store on the Internet in order to sell the goods online. A potential customer finds that site, buys products on it, pays the owner with a credit card or in some other way. The merchant receives the payment and delivers the goods and supports the customer. Pretty much, that’s e-commerce in its simplest sense.
In between those e-commerce transactions there is a lot of technology involved to complete the sale. For example, the merchant has to design and build a website developed using a complex programming language called HTML. The merchant has to register a domain name to identify his business on the Internet. All your online store or business information and products are encrypted and stored on the merchant’s computer server or hosted by a third-party web hosting company. For the customer to find the merchant’s site, he needs a computer that in turn is connected to a system popularly known as the Internet, in order to visit the merchant’s site.
The personal computer in relation to electronic commerce
A PC or personal computer is a computing device or tool built around a microprocessor. It has many different parts: memory, hard drive, modem, etc… that all work together. It is also called general purpose equipment. General purpose means that you can do many different things with a computer. You can use it to write documents, send emails, surf the Internet, and play games.
On its own, the computer can be used to speed up information processing and storage, such as word processing. It can also be done to transmit and receive information from other computers. These computers can talk and exchange information with each other through a common computer language or protocol. The PC is the core and most valuable technology needed to power e-commerce and Internet business.
Computer network in connection with electronic commerce
Two or more computers can be physically linked and made to communicate with other computers on a local area network (LAN). The term used to describe this interconnection is called networking. The networking of computers can be done using a wired (wired) or wireless (radio) type of connection. Generally, networking or computer connection is subject to range or distance limitation because the signal and communication quality will degrade as the distance increases. Computer networks are applied to most online internet businesses for an efficient and productive e-commerce business.
Internet in relation to electronic commerce
The Internet is a system that connects computer networks. The Internet system allows the interconnection of computers around the world. It allows your computer to obtain information stored on other computers far away.
The protocol (TCP/IP) or language when the computer communicates on a network is similar to that used on the Internet. That is why computers from all over the world understand each other despite the different manufacturers and places of manufacture.
Many computers around the world are stored with lots and lots of information. The Internet system hooked them. If you have Internet access, you can read, listen, and view all of this information from your own computer. The internet is the whole reason behind the existence of e-commerce and without internet connectivity, online virtual businesses will completely cease to exist.
Telecommunications in relation to electronic commerce
A different kind of technology is needed to transmit information from one computer to another over long distances. Telecommunications companies enter the scene to cater to the requirement to connect a computer network to another computer network using different types of transmission technology.
Telecommunications is a broad term, as it also covers not only data communication, such as the Internet, but also includes voice telephony.
Telecommunications companies are driving Internet businesses to achieve Internet connectivity. Without them, one could never get their business online, as only telecommunications companies can link networks over very large geographical distances.
Connectivity in relation to electronic commerce
Connectivity is a broader term than networking. Networking refers to the physical (wired) or virtual (wireless) connection between computers. Connectivity refers to the state of being connected. For example, a computer can sync with a phone, music player, and other devices. Internet access or the state of being connected to the Internet information highway is a classic example of connectivity.
Internet connectivity is important in both urban and remote rural regions of the world.
Some regions suffer from a lack of telecommunications infrastructure, so the Internet access service is very limited. To achieve Internet connectivity, remote villages use satellite links, wireless radio systems, and long-range telephone extenders. Some communities have established telecentres that serve as a communication center and external link with the rest of the world. All forms of connectivity, including Internet connectivity, are helping to boost the Internet business as a whole.
You have read about the overview of e-commerce and its supporting technologies. Try to imagine and imagine how e-commerce is practiced and how important those technologies are in making it possible.
