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Electronic commerce




Electronic Commerce or e-commerce is the exchange of goods and services by means of the Internet or other computer networks. E-commerce follows the same basic principles as traditional commerce – that is, buyers and sellers come together to exchange goods for money. But rather than conducting business in the traditional way – in stores and other buildings or through mail order catalogues and telephone operators – in e-commerce buyers and sellers transact business over networked computers.

E-commerce offers buyers convenience. They can visit the World Wide Web sites of multiple vendors 24 hours a day and seven days a week to compare prices and make purchases, without having to leave their homes or offices. In some cases, consumers can immediately obtain a product or service, such as an electronic book, a music file, or computer software, by downloading it over the Internet.

For sellers, e-commerce offers a way to cut costs and expand their markets. They do not need to build, staff, or maintain a store or print and distribute mail order catalogues. Automated billing systems cut additional labor costs, and if the product or service can be downloaded, e-commerce firms have no distribution costs. Because they sell over the global Internet, sellers have the potential to market their products or services globally and are not limited by the physical location of a store. Internet technologies also permit sellers to track the interests and preferences of their customers with the customer’s permission and then use this information to build an ongoing relationship with the customer by customizing products and services to meet the customer’s needs.

A variety of businesses are conducted online, including retail businesses that sell products to consumers, service providers that sell services to consumers, auctioneers that create a marketplace for products and services, and business-to-business commerce. Retail transactions make up the largest part of e-commerce. Consumers can find computers, automobiles, clothing, books, music, airline tickets, food, etc. for sale on the Internet.

E-commerce also has some disadvantages, however. Consumers are reluctant to buy some products online. Online furniture businesses, for example, have failed for the most part because customers want to test the comfort of an expensive item such as a sofa before they purchase it. Many people also consider shopping a social experience. For instance, they may enjoy going to a store with friends or family, an experience that they cannot get online. Consumers also need to be reassured that credit card transactions are secure and that their privacy is respected.

Assignment 3. Answer the following questions.

1. What is the difference between the terms ‘commerce’ and ‘e-commerce’?

2. Why is e-commerce convenient for buyers?

3. What does e-commerce offer for sellers?

4. In what way can sellers market their products and services?

5. What do Internet technologies permit sellers?

6. What kind of businesses are conducted online?

7. Why do retail transactions make up the largest part of e-commerce?

8. What are the disadvantages of e-commerce?

Assignment 4. Indicate by circling the appropriate response whether each of the following statements is true (T) or false (F). If it is false, say why.

T F 1. Commerce is an exchange for goods.

T F 2. The Internet business opportunities bring more and more substantial benefits to companies.

T F 3. Internet portals of large companies help maximize the cost benefits of B2B exchanges.

T F 4. You can keep all personal information secret when you complete retail transactions on the Internet.

T F 5. Hacking must be fought with as it damages e-commerce.

Assignment 5. Match the terms with the appropriate definition and learn them.

  World Wide Web A worldwide network of computers, holding vast quantities of data that you can access directly from a PC.
  Computer network Connected to other computers through the Internet, or available through the Internet.
  Download A set of computers that are connected to each other so that they can share information.
  Internet A universe of pages containing texts, images, sounds and video clips. It covers a vast range of topics, presented in an attractive, interesting and easily accessible form.
  Online To move information or programs from a computer network to a small computer.

Assignment 6. Complete the first part of the sentence in column A with the right ending in column B.

A

1. Traditional commerce is …

2. In e-commerce buyers and sellers …

3. E-commerce offers buyers …

4. E-commerce offers sellers …

5. Consumers can immediately obtain a product or service by …

6. Internet technologies use the information to build an ongoing relationship with the customer by …

B

a. … downloading it over the Internet.

b. … convenience.

c. … the exchange of goods and services for money.

d. … customizing products and services to meet the customer’s needs.

e. … a way to cut costs and expand their markets.

f. … transact business over networked computers.

Assignment 7. Translate into Ukrainian.

Rather than conducting business in the traditional way; without having to leave their homes or offices; to trackthe interests and preferences of their customers; to build an ongoing relationship with the customer; to customize products and services; retail businesses; business-to-business commerce; to test the comfort of an expensive item; to consider shopping a social experience; consumers need to be reassured; credit card transactions are secure; their privacy is respected.

Assignment 8. Translate into English.

Обмін товарами і послугами через Інтернет; дотримуватися основних принципів; каталог поштових замовлень; численна кількість гуртових фірм; негайно отримати товар чи послугу; зменшити витрати і збільшити ринки; додаткові витрати на робочу силу; мати потенціал продавати товари і послуги у глобальному масштабі; з дозволу споживача; неохоче купувати товари; здебільше; складати найбільшу частину.

 

Assignment 9. Give suitable synonyms to the following words and phrases.

E-commerce; to conduct business; multiple vendors; to obtain immediately; to cut costs; to expand markets; to staff; to market (products/services); to permit; to track (the interests); to meet the customer’s needs; reluctant.

Assignment 10. Give suitable opposites to the following words and phrases.

Convenience; multiple; to cut costs; to expand markets; limited; to permit; ongoing; retail businesses; disadvantage; reluctant; to fail; secure.

 

Assignment 11. Fill in the blanks with an appropriate word or phrase.




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