E-commerce

• It is a system of buying and selling goods and services electronically.
• The system operates through a computer connected to the internet or a television which has satellite connections. The products sold should be:

1. coded
2. fully described
3. in picture form
4. individually priced

• The customer does the shopping in the comfort of his or her home, selects goods using the product codes and places the order electronically.
• When making payment the customer provides the following details electronically:

1. customer’s name and address and account number or credit card number
2. choice of delivery that is COD mail or personal
3. Date of delivery
4. terms of payment

• Total purchasing price is displayed on the screen for the customer.
• Payment can be done through credit cards, Cash On Delivery (COD) or direct debit. Delivery of goods is by mail, courier services, or personal.
• The system does not require cash payments. It reduces paperwork for the retailer and travelling expenses for customers. The electronic shop is open for 24 hours.

Disadvantages of e-commerce

• leads to impulse buying and overspending
• at times the pictures may not show the true quality of the items
• lacks personal touch

To access more topics go to the Commerce Notes page.