Electronic Business with Emphasis on Business-to-Consumer (B2C)

The world we live in is becoming increasingly global and rapidly changing. These changes are connected to information and the speed of its flow. An important tool that helps us manage the large amount of information that surrounds us today, whilst also changing very quickly, is electronic business. She also established this through her own research. We still want to see, for example, the fruit and vegetables we buy, and in most cases we also want to select them ourselves.

Problem

The world we live in is becoming increasingly global and rapidly changing. These changes are connected to information and the speed of its flow. Managing a large amount of information is not simple, but it is essential for today's times.

Solution and Method

An important tool that helps us manage the large amount of information that surrounds us today, whilst also changing very quickly, is electronic business. The Internet as a new communication medium has brought tremendous progress in this field. With the development of the Internet, electronic business has also gained new dimensions.

The usefulness of the Internet is unlimited both for consumers to obtain important information, education, make purchases (via the Internet) and for companies that can use the Internet as a new market channel, electronic business and electronic marketing. Consumers are becoming increasingly aware, demanding, without reservations and prejudices they compare offers and choose the best amongst them. In the diploma thesis she will attempt to explain some types of electronic business, whilst also addressing some of their advantages and disadvantages.

The greater part of the diploma thesis is devoted primarily to online shops, which have been growing exponentially in recent times. However, as the use of the Internet requires certain security, part of the thesis is devoted to consumer protection in the field of e-business. At the end she will also present her own survey regarding online shopping, which she conducted at the beginning of September this year on a specific sample of respondents.

We live in a period of technological changes brought about by the development and expansion of the use of information and communication technology. Changes require a different way of doing business than in the past. The real boom of e-business only began with the commercialisation of the Internet and the establishment of the World Wide Web.

Electronic business is no longer an unknown, but is becoming an increasingly important part of the global economy. Electronic business between companies (B2B) represents the largest part of electronic business. It encompasses everything from established connections between retailers and suppliers (orders, payments...) and electronic banking to collaboration on joint projects.

The fact is that business entities that want permanent development and growth of their business cannot bypass this way of doing business. Electronic business with end users (B2C) encompasses many different and rapidly emerging new areas, which are mostly based on business using Internet websites. They enable consumers to perform various tasks via their home computer: from banking and shopping to education and work.

The term B2C thus does not only mean modern web technology, but also the philosophy of a company operating in the market. Customers need to be given insight into the entire database of articles that the company markets, enabled direct and thus cheaper purchase, whilst simultaneously guaranteeing them 24-hour complete support, namely in connection with products or services, as well as with other elements that are necessary for a correct relationship with their customers. An online shop differs from a traditional one in that we cannot physically enter it.

It is actually an electronic catalogue of products through which we can browse at will. If a product suits us, we mark it and place it in the basket, just as we would do in a self-service shop. Before we leave the online shop, we check the contents of the basket once more, if necessary add or remove another product and enter the data that the merchant will need for delivery of the products.

Of course, at the end of the purchase one needs to decide on the method of payment. When purchasing online, the most widespread payment option in the world is payment by credit and debit cards, whilst when shopping in Slovenian online shops they are still most inclined towards payment on delivery. The online shop is a perfected form of Internet sales, which is increasingly displacing traditional shops, although not in all segments.

Results

She also established this through her own research. We still want to see, for example, the fruit and vegetables we buy, and in most cases we also want to select them ourselves. This is also one of the important reasons why as many as 48% of all respondents (who participated in the survey) do not wish to make a purchase.

But with the development of technology, this will probably also be possible to incorporate into the online shopping process in the future. Shopping via the Internet is important for consumers primarily because it enables them access to shops almost anywhere in the world and at any time. They can buy goods that are not yet on the market in Slovenia, whilst at the same time they do not have to go abroad.

In addition, they can also make purchases during working hours. As many as 39% of respondents have already made a purchase online, whilst 52% intend to make a purchase. She established that respondents most often buy airline tickets, tickets for various events, technical goods and book publications online.

As many as 63% of all respondents would recommend online shopping to acquaintances, relatives and others. As a reason for recommendation they primarily cite the fact that there is no need to physically go to shops and easier comparison of prices of the same products and different suppliers. The most interesting finding was precisely that as many as 72% of all respondents, despite all the problems they cited, stated that the online shop is the shop of the future.

Recently I myself have also been finding that shopping online pays off, as the prices of some products are considerably lower than in traditional shops. Likewise, there is no reason why I should not make a purchase from home and use my free time for relaxation in nature and with family. The state administration is also increasingly striving to enable both companies and residents to eventually perform almost all bureaucratic tasks via the Internet.

Thus we can already now submit income tax returns and other tax obligations online. Of course, electronic business also brings with it some shortcomings or weaknesses, such as data theft, misuse of bank cards, expensive infrastructure, lack of educated personnel, rapidly changing technology and we could list more. Problems also arise with legal issues, as legislation can barely keep pace with such a rapidly developing industry and the ever new questions that arise. The content of regulations and also awareness of consumer protection varies in different countries.

It is not difficult to connect the supplier with the jurisdiction of a particular authority and law, but a possible judgement is already difficult to enforce abroad. Likewise, the consequences of computer crime can be very serious, therefore increasing security in electronic business on the Internet is an important task that needs to be given sufficient attention. I conclude that in Slovenia it would be necessary to devote as much attention as possible primarily to the development and encouragement of the operation of institutions, which would, through mutual assistance and cooperation, also take care of improving knowledge and compliance with legislation and for the education of traders and end consumers.