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A large percentage of electronic commerce is conducted entirely electronically for virtual items such as
access to premium content on a website, but most electronic commerce involves the transportation of
physical items in some way. Online retailers are sometimes known as e-tailers and online retail is
sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World
Wide Web.
Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the
exchange of data to facilitate the financing and payment aspects of the business transactions.
The meaning of electronic commerce has changed over the last 30 years. Originally, electronic commerce
meant the facilitation of commercial transactions electronically, using technology such as Electronic Data
Interchange (EDI) and Electronic Funds Transfer (EFT). These were both introduced in the late 1970s,
allowing businesses to send commercial documents like purchase orders or invoices electronically. The
growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the
1980s were also forms of electronic commerce. Another form of e-commerce was the airline reservation
system typified by Sabre in the USA and Travicom in the UK.
From the 1990s onwards, electronic commerce would additionally include enterprise resource planning
systems (ERP), data mining and data warehousing.
An early example of many-to-many electronic commerce in physical goods was the Boston Computer
Exchange, a marketplace for used computers launched in 1982. An early online information marketplace,
including online consulting, was the American Information Exchange, another pre Internet[clarification needed]
online system introduced in 1991.
In 1990, Tim Berners-Lee invented the WorldWideWeb web browser and transformed an academic
telecommunication network into a worldwide everyman everyday communication system called
internet/www. Commercial enterprise on the Internet was strictly prohibited until 1991.[1] Although the
Internet became popular worldwide around 1994 when the first internet online shopping started, it took
about five years to introduce security protocols and DSL allowing continual connection to the Internet. By
the end of 2000, many European and American business companies offered their services through the
World Wide Web. Since then people began to associate a word "ecommerce" with the ability of
purchasing various goods through the Internet using secure protocols and electronic payment services.
Often times, customer service can be a key differentiator for companies that sell similar products.
In today’s digital age it is all too common for companies to hide behind “digital walls”. Often times this
elusive nature can lead to lost sales not to mention decreasing customer confidence. When customers have
questions or problems they want them addressed—by a real human with real answers, not just a scripted
list of FAQs or automated phone system. Two ways to accomplish this are through posting customer
service phone numbers on your site and considering Live Chat type systems.
You can’t foster customer loyalty if your customers forget you exist. You must stay in contact with
them on a regular basis preferably with information that ultimately benefits them in the end (remember it
about the customer not you.) Two ways of staying in front of them are through email and RSS feeds. The
key here is to feed them information that helps them. Promotions on products, sales etc… all work and
should be a part of your communication but don’t neglect the need to provide them with valuable content
that helps better their position.
This could be showing them new ways to use your product, complimentary products that may work well
with the one they already have etc…
If you want to keep customers happy you must offer flexible policies. Don’t make it hard for them
to return an item, get support for current, broken, or discountinued products, etc… Be flexible and
understanding of their needs and above all else, make it right for them. Put these policies in place and
honor them. If you don’t, your customers will run to the competitors that do never to return again.