E-commerce is the process of buying and selling of information, products and services using electronic medium usually over computer network. It is the transfer of traditional commerce to the computer network or internet. In e-commerce we use electronic medium to perform commercial activities such as order, payment, and delivery.

E-business is a broad concept. E-business includes more activities than just buying and selling. E-business involves:
• Transactions between business partners.
• Customer service
• Collaboration.
• Internal processes to support buying, selling, planning etc.

Hence, E-business is larger than E-commerce, i.e., E-business includes E-commerce + other activities related to business.

Features / Benefits of E-commerce

i) Ubiquity:
E-commerce is widespread, that is, it is available everywhere always. It sets free market from being restricted to a physical space and makes it possible to shop from computer and other devices. The result is called a market place.

ii) Global Reach:
E-commerce technologies enable a business to easily reach across geographic boundaries around the earth. Globally, companies are acquiring greater profits and business results by expanding their business with e-commerce solutions.

iii) Universal Standards:
Universal Standards are standards shared by all the nations around world. These are technical standards of Internet for conducting e-commerce. It gives all the ability to connect at the same level and it provides network externalities that will benefit everyone. Universal technical standards lower entry costs and minimal search costs.

iv) Interactivity:
E-commerce technologies permits two-way communication between customer and sellers which makes it interactive. It proves as significant feature e-commerce technology over the commercial traditional technologies of the 20th century.

v) Information Density:
Information density means total amount and quality of information available over Internet to all market buyers and sellers. Information density offers better quality information to consumers and merchants.

vi) Richness:
Richness refers to the complexity and content of a message. Richness means all commercial activity and experience conducted through a variety of messages. For example, text, pictures, videos, sound, links, SMS etc.

The history of e-commerce started 40 years ago and, to this day, continues to grow with new technologies, innovations, and thousands of businesses entering the online market each year. Electronic Data Interchange (EDI) and teleshopping in the 1970s paved the way for the modern-day commerce store. The history of e-commerce is closely intertwined with the history of the Internet. Online shopping only became possible when the Internet was opened to the public in 1991. Amazon.com was one of the first e-commerce sites in the US to start selling products online, and thousands of businesses have followed since.

E-commerce Framework (5 Pillars of E-commerce)
Applications
• Supply chain management
• Video on demand
• Remote banking
• Online marketing and advertising
• Home shopping
Framework Layers
1. Common Business Services Infrastructure
o Security
o Authentication
o Electronic payment
2. Messaging and Information Distribution Infrastructure
3. Multimedia Content and Network Publishing Infrastructure
4. Information Superhighway Infrastructure
o Telecommunications (Telecom)
o Internet
Supporting Pillars
Left Pillar
• Public policy
• Legal and privacy issues
Right Pillar
• Technical standards for:
o Electronic documents
o Multimedia
o Network protocols

The major types of e-commerce include:

1. Business-to-Consumer (B2C) E-commerce
It is the most commonly discussed type of e-commerce in which online businesses attempt to reach individual consumers. In B2C, consumers buy goods and services from businesses.
Example: A customer buys a computer online directly from Dell (dell.com).

2. Business-to-Business (B2B) E-commerce
In this type of e-commerce, both parties are businesses.
Example: A motorcycle manufacturing company, Hero, buys tyres from MRF company. B2B e-commerce has significant growth potential, and its market size is potentially huge.

3. Consumer-to-Consumer (C2C) E-commerce
In this type of e-commerce, both parties are consumers.
Example: There are many auction websites where consumers can sell products to other consumers. One example is OLX, where consumers can put their items up for sale and another consumer buys them.

4. Consumer-to-Business (C2B) E-commerce
In this type of e-commerce, a consumer sells products and services to a business.
Example: A person sells old household items to a company that collects and reuses them. Similarly, people sell old iron and plastic to businesses that manufacture new products from recycled materials.

1. Mobile E-commerce (M-Commerce)
Mobile e-commerce, or M-commerce, refers to the use of mobile devices to conduct online transactions. It involves the use of cellular and wireless networks to connect laptops, smartphones (such as iPhone and Android devices), and tablets (such as iPad) to the Internet.
Once connected, mobile consumers can perform various transactions, including:
• Stock trading
• In-store price comparisons
• Mobile banking
• Travel reservations
• And many more

2. Social E-commerce
Social e-commerce is e-commerce that is enabled by social networks and online social relationships. It is sometimes referred to as Facebook commerce, but it is actually a much broader phenomenon that extends beyond Facebook alone.

3. Local E-Commerce
Local e-commerce, as its name suggests, is a form of e-commerce that is focused on engaging consumers based on his or her current geographic location. Local merchants use a variety of online marketing techniques to drive consumers to their stores. Local e-commerce is the third prong of the social, mobile, and local (SoLoMo) trend and is expected to grow rapidly.

4. U-Commerce (Ubiquitous Commerce)
Ubiquitous Commerce, also known as U-Commerce, refers to a variety of goods and/or services. Sometimes, it is used to refer to the wireless, continuous communication and exchange of data and information between and among retailers, customers, and systems regardless of location, devices used, or time of day.

• Online Identity Verification Problem: People may enter wrong information.
• Competitor Analysis: Many vendors offer the same product. We must know the market.
• Maintaining Customer Loyalty: Keep existing customers and attract new ones.
• Product Return and Refund Policy
• Shipping Cost
• Data Security
• Switching to M-Commerce and IoT-Commerce
• Trust

Currently in Nepal, there are dozens of ISPs with millions of Internet users. Initially, e-commerce activities were mainly concentrated in Kathmandu Valley and some major cities. E-commerce was introduced in Nepal with an aim of letting Nepalese residing abroad send gifts to their families, friends, and relatives living here. The shift from physical stores to virtual ones began in the late 1990s.
Nowadays, with the increase of Internet availability and the number of mobile users in rural areas, there is an increase in online activities. Today there are many e-commerce websites that are providing e-commerce services, e.g., Daraz, HamroBazar, SastoDeal, Shopmandu, etc.

The first attempt by Nepal to formally legalize and regulate electronic transactions was enacted in 2063 BS (2008 AD). It defines, regulates, and recognizes electronic records and digital signatures. It defines the process of dispatch, receipt, and acknowledgement of electronic records. It has the provision of a few regulating bodies and their functions, rights, and duties such as:

• Office of Certificate Control (OCC)
• Certification Agencies (CA)
• Subscriber

It has provisions relating to the use of digital signatures and certificates. It also has provisions relating to computer-related crimes and punishments. The Act further defines a few documents for which this Act is not applicable.