What Is Electronic Commerce (E-commerce)?

Electronic commerce (e-commerce) refers to companies and individuals that buy

and sell goods and services over the internet. E-commerce operates in different
types of market segments and can be conducted over computers, tablets,
smartphones, and other smart devices. Nearly every imaginable product and
service is available through e-commerce transactions, including books, music,
plane tickets, and financial services such as stock investing and online banking.
As such, it is considered a very disruptive technology.

Traditional Commerce
Traditional commerce refers to business transactions or information exchange, as well as buying and
selling products/services from person to person, without the use of the internet, which is an older type of
business approach. People nowadays do not favour this business method because it is time-consuming and
requires physical exertion. An actual market or bazaar is an example.

Traditional Commerce v/s E-Commerce

Sr.
Traditional Commerce E-Commerce
No.

Information sharing is made easy via

Heavy dependency on information electronic communication channels making
1
exchange from person to person. little dependency on person to person
information exchange.

Communication or transaction can be done in

Communication/ transaction are done
asynchronous way. Electronics system
in synchronous way. Manual
2 automatically handles when to pass
intervention is required for each
communication to required person or do the
communication or transaction.
transactions.

It is difficult to establish and

A uniform strategy can be easily established
3 maintain standard practices in
and maintain in e-commerce.
traditional commerce.

Communications of business depends In e-Commerce or Electronic Market, there is

4
upon individual skills. no human intervention.

Unavailability of a uniform platform E-Commerce website provides user a

5 as traditional commerce depends platform where al l information is available
heavily on personal communication. at one place.
 No uniform platform for information E-Commerce provides a universal platform
6 sharing as it depends heavily on to support commercial / business activities
personal communication. across the globe.

Types of E-commerce
Depending on the goods, services, and organization of an ecommerce company,
the business can opt to operate several different ways. Here are several of the
popular business models.

Business-to-Consumer (B2C)
B2C e-commerce companies sell directly to the product end-user. Instead of
distributing goods to an intermediary, a B2C company performs transactions with
the consumer that will ultimately use the good.

This type of business model may be used to sell products (like your local sporting
goods store's website) or services (such as a lawn care mobile app to reserve
landscaping services). This is the most common business model and is likely the
concept most people think about when they hear the term e-commerce.

Business-to-Business (B2B)
Similar to B2C, an e-commerce business can directly sell goods to a user.
However, instead of being a consumer, that user may be another company. B2B
transactions often entail larger quantities, greater specifications, and longer lead
times. The company placing the order may also have a need to set recurring goods
if the purchase is for recurring manufacturing processes.

Business-to-Government (B2G)
Some entities specialize as government contractors providing goods or services to
agencies or administrations. Similar to a B2B relationship, the business produces
items of value and remits those items to an entity.

B2G e-commerce companies must often meet government requests for proposal
requirements, solicit bids for projects, and meet very specific product or service
criteria. In addition, there may be joint government endeavors to solicit a single
contract through a government-wide acquisition contract.

Consumer-to-Consumer (C2C)
Established companies are the only entities that can sell things. E-commerce
platforms such as digital marketplaces connect consumers with other consumers
who can list their own products and execute their own sales.

These C2C platforms may be auction-style listings (i.e. eBay auctions) or may
warrant further discussion regarding the item or service being provided (i.e.
Craigslist postings). Enabled by technology, C2C e-commerce platforms empower
consumers to both buy and sell without the need for companies.

Consumer-to-Business (C2B)
Modern platforms have allowed consumers to more easily engage with companies
and offer their services, especially related to short-term contracts, gigs, or
freelance opportunities. For example, consider listings on Upwork.

A consumer may solicit bids or interact with companies that need particular jobs
done. In this way, the e-commerce platform connects businesses
with freelancers to enable consumer’s greater power to achieve pricing,
scheduling, and employment demands.

Consumer-to-Government (C2G)
Less of a traditional e-commerce relationship, consumers can interact with
administrations, agencies, or governments through C2G partnerships. These
partnerships are often not in the exchange of service but rather, the transaction of
obligation.

For example, uploading your federal tax return to the Internal Revenue Service
(IRS) digital website is an e-commerce transaction regarding an exchange of
information. Alternatively, you may pay your tuition to your university online or
remit property tax assessments to your county assessor.

How Should You Plan Test Scenario

For Ecommerce Website Testing?
There are a few key things you'll want to test when checking out a
new ecommerce website. First, you'll want to see if the site is easy to
navigate and use. Can you find what you're looking for quickly and easily?
Are the checkout process and shipping options clear and straightforward?

Next, you'll want to test out the site's security features. Is your personal and
financial information safe and secure? Are there any red flags that make
you hesitate to input your information?

Finally, you'll want to take a look at the site's customer service options.
Are there multiple ways to get in touch with someone if you have a
question or issue? Is the customer service team responsive and helpful?

By testing out all of these different features, you can get a good sense of
whether or not an ecommerce site is right for you. If you have any doubts
or concerns, it's always best to err on the side of caution and choose
another site to shop from.

Here are the two types of ecommerce websites with a short explanation-

1. Ecommerce Manual Testing

There are many ways to do manual testing for e-commerce websites. Here
are a few tips:

 Test the website functionality thoroughly- This includes testing the

shopping cart, checkout process, and payment system.
 Pay attention to the user experience- Make sure the website is easy to
navigate and use.
 Test the website security- This includes testing for SSL certification
and data encryption.
 Perform load testing- This will ensure that the website can handle
heavy traffic.
 Test the website on different browsers and devices- This will ensure
that the website is compatible with different platforms.

2. Ecommerce Automation Testing

Ecommerce automation testing is a process of automating the testing of
ecommerce applications. It is a specialized form of test automation that is
used to test the functionality of ecommerce applications.

Ecommerce automation testing can be used to test the user interface,

functionality, performance, and security of an ecommerce application. User
interface testing is the process of testing the graphical user interface of an
ecommerce application. The goal of user interface testing is to ensure that
the application is easy to use and navigate.

Functionality testing is the process of testing the functionality of an

ecommerce application. The goal of functional testing is to ensure that the
application is able to perform the tasks that it is designed to do.

Performance testing is the process of testing the performance of an

ecommerce application. The goal of performance testing is to ensure that
the application is able to handle the load of traffic that it is expected to
receive.
Security testing is the process of testing the security of an ecommerce
application. The goal of security testing is to ensure that the application is
secure from attack.

Advantages and Disadvantages of E-commerce

Advantages
E-commerce offers consumers the following advantages:

 Convenience: E-commerce can occur 24 hours a day, seven days a week.

Although eCommerce may take a lot of work, it is still possible to generate
sales as you sleep or earn revenue while you are away from your store.
 Increased Selection: Many stores offer a wider array of products online
than they carry in their brick-and-mortar counterparts. And many stores that
solely exist online may offer consumers exclusive inventory that is
unavailable elsewhere.
 Potentially Lower Start-up Cost: E-commerce companies may require a
warehouse or manufacturing site, but they usually don't need a physical
storefront. The cost to operate digitally is often less expensive than needing
to pay rent, insurance, building maintenance, and property taxes.
 International Sales: As long as an e-commerce store can ship to the
customer, an e-commerce company can sell to anyone in the world and isn't
limited by physical geography.
 Easier to Retarget Customers: As customers browse a digital storefront, it
is easier to entice their attention towards placed advertisements, directed
marketing campaigns, or pop-ups specifically aimed at a purpose.

Disadvantages
There are certain drawbacks that come with e-commerce sites, too. The
disadvantages include:

 Limited Customer Service: If you shop online for a computer, you cannot
simply ask an employee to demonstrate a particular model's features in
person. And although some websites let you chat online with a staff
member, this is not a typical practice.
 Lack of Instant Gratification: When you buy an item online, you must
wait for it to be shipped to your home or office. However, e-tailers like
Amazon make the waiting game a little bit less painful by offering same-
day delivery as a premium option for select products.
 Inability to Touch Products: Online images do not necessarily convey the
whole story about an item, and so e-commerce purchases can be
unsatisfying when the products received do not match consumer
expectations. Case in point: an item of clothing may be made from shoddier
fabric than its online image indicates.
  Reliance on Technology: If your website crashes, garners an
overwhelming amount of traffic, or must be temporarily taken down for any
reason, your business is effectively closed until the e-commerce storefront
is back.
 Higher Competition: Although the low barrier to entry regarding low cost
is an advantage, this means other competitors can easily enter the market.
E-commerce companies must have mindful marketing strategies and remain
diligent on SEO optimization to ensure they maintain a digital presence.

Pros
 Owners can generate revenue semi-passively

 Consumers can easily browse for specific products

 Greater earning potential as there are no limitations on physical location as

long you can ship there

 Reduced costs assuming digital presence costs less than building, insurance,
taxes, and repairs.

 Greater marketing control, including data extraction from customers,

targeted ads, and pop-up placement

Cons
 Limited customer service opportunities as there is little to no face-to-face
opportunities

 Lacks instant gratification as customers must believe in a product before

seeing it in person

 Products can't been seen or handled until delivered (can't try before they
buy)

 Loss of revenue or income when websites go down

 High reliance on shipping constraints

 Higher competition due to lower barriers of entry and greater customer

potential

E-Commerce - Business Models

E-commerce business models can generally be categorized into the following
categories.
  Business - to - Business (B2B)
 Business - to - Consumer (B2C)
 Consumer - to - Consumer (C2C)
 Consumer - to - Business (C2B)
 Business - to - Government (B2G)
 Government - to - Business (G2B)
 Government - to - Citizen (G2C)

Business - to - Business
A website following the B2B business model sells its products to an intermediate
buyer who then sells the product to the final customer. As an example, a
wholesaler places an order from a company's website and after receiving the
consignment, sells the endproduct to the final customer who comes to buy the
product at one of its retail outlets.

Business - to - Consumer
A website following the B2C business model sells its products directly to a
customer. A customer can view the products shown on the website. The customer
can choose a product and order the same. The website will then send a notification
to the business organization via email and the organization will dispatch the
product/goods to the customer.
Consumer - to - Consumer
A website following the C2C business model helps consumers to sell their assets
like residential property, cars, motorcycles, etc., or rent a room by publishing their
information on the website. Website may or may not charge the consumer for its
services. Another consumer may opt to buy the product of the first customer by
viewing the post/advertisement on the website.

Consumer - to - Business
In this model, a consumer approaches a website showing multiple business
organizations for a particular service. The consumer places an estimate of amount
he/she wants to spend for a particular service. For example, the comparison of
interest rates of personal loan/car loan provided by various banks via websites. A
business organization who fulfills the consumer's requirement within the specified
budget, approaches the customer and provides its services.
Business - to - Government
B2G model is a variant of B2B model. Such websites are used by governments to
trade and exchange information with various business organizations. Such websites
are accredited by the government and provide a medium to businesses to submit
application forms to the government.

Government - to - Business
Governments use B2G model websites to approach business organizations. Such
websites support auctions, tenders, and application submission functionalities.

Government - to - Citizen
Governments use G2C model websites to approach citizen in general. Such
websites support auctions of vehicles, machinery, or any other material. Such
website also provides services like registration for birth, marriage or death
certificates. The main objective of G2C websites is to reduce the average time for
fulfilling citizen’s requests for various government services.