This article is written by Shambhavi Tripathi, a 3rd-year student of LL.B. in Panjab University, Chandigarh. The article deals with the introduction to E-commerce, its types, pros and cons of E-commerce and issues related to E-commerce under cyber law.

Introduction

E-Commerce, also known as electronic commerce or internet commerce, is an activity of buying and selling goods or services over the internet or open networks. So, any kind of transaction (whether money, funds, or data) is considered as E-commerce. So, E-commerce can be defined in many ways, some define E-Commerce as buying and selling goods and services over the Internet, others define E-Commerce as retail sales to consumers for which the transaction takes place on open networks. The buying and selling of products, services, and digital products through the Internet all fall under the umbrella of e-commerce. 

Organisation for Economic Cooperation and Development (OECD) defines e-commerce as:

“All forms of transactions relating to commercial activities, including both organizations and individuals, which are based on the processing and transmission of digitized data including text, sound, and visual images.” According to this view, E-commerce does not necessarily require the use of the Internet. E-commerce includes all forms of transactions that process and transmit digitized data which includes text, sound and visual images.

E-commerce is the application of information technology and communication technology to three basic activities related to commercial business, the three basic activities are as follows: 

1. Production and support- which includes assisting production, distribution, and maintenance of goods and services.
2. Transaction preparation- which includes getting product information into the market-place and bringing buyers and sellers into contract with each other; and
3. Transaction completion- which includes concluding transactions, transferring payments, and securing financial services. 

Types of E-Commerce

E-commerce can be categorised into six categories:

1. Business-to-Business (B2B) – B2B e-commerce consists of all kinds of electronic transactions, dealings and business related to the goods and services that are conducted between two companies. This type of e-commerce exists between the producers of a product and the conventional wholesalers who advertise the product to consumers for purchase. So, in this kind of e-commerce the final consumer is not involved and the online transactions only involve the manufacturers, wholesalers, retailers etc.
2. Business-to-Consumer (B2C) – It is the most common form of e-commerce, and it deals with electronic business relationships between businesses and consumers. This kind of e-commerce allows consumers to shop around for the best prices, read customer reviews and find different products that they would not find otherwise in the retail world. This kind of e-commerce is related to the transactions and relationships between businesses and the end customers. Today, we find various online shopping sites and virtual stores on the internet, that sell thousands of products, ranging from computers, fashion items to medicines and other necessities.
3. Consumer-to-Consumer (C2C) – This level of e-commerce consists of all electronic transactions that take place between consumers. This consists of electronic transactions of goods and services between two customers and is mainly conducted through a third party that provides an online platform for these transactions. C2C e-commerce consists of sites where old items are bought and sold, such as OLX, Quickr etc. Generally, these payment transactions are provided by online platforms (such as PayTM, GooglePay etc), and are conducted through social media networks (such as Facebook, Instagram etc) and websites.
4. Consumer-to-Business (C2B) – In C2B e-commerce, a consumer or an individual makes their goods or services available online for companies to purchase, so, in this kind of e-commerce a complete reversal of the selling and buying process takes place. For example a graphic designer making a company site or logo or a photographer taking photos for an e-commerce website. This is very relevant for crowd-sourcing projects.
5. Business-to-Administration (B2A) – This e-commerce consists of electronic transactions that takes place companies and bodies of public administration such as government. Therefore, the B2A model is sometimes also referred to as B2G (Business-to-Government). Many processes are becoming optimized through digitalization because of that many administrations and governing bodies are implementing third-party technologies to assist in the process. This involves many services in various areas such as social security, fiscal measures, employment and legal documents.
6. Consumer-to-Administration (C2A) – This e-commerce consists of electronic transactions that takes place between people and bodies of public administration. This relationship allows access for consumers to receive information, make payments, and establish direct communication between the government or administrations and the consumers. Many common C2A transactions may include paying taxes, fines, or paying tuition to a University. 

The main objective of both the B2A and C2A types of eCommerce is to increase flexibility, efficiency, and transparency in public administration.

Important Issues in Global E-commerce

1. Issue relating to Privacy- The increase of electronic transactions over the internet raises various concerns on the collection, storing and manipulation of personal information without the consent or knowledge of consumers. The functioning of E-Commerce is highly connected and dependent upon the collection and storing of personal information of consumers to provide them with the products and services and maintain their data. Therefore, there is a chance that without the consent or knowledge of consumers, personal information may be shared with or sold to others. Because of these concerns the protection of privacy has become one of the most important policy issues among policy-makers, businesses and consumers. 
2. Issue relating to Security- E-Commerce security can be defined as “a protection of an information resource from the threats and risks in the confidentiality, authenticity and integrity of the electronic transactions transmitted via a network”. The e-commerce can only grow if the system is capable of providing the same level of trust and security which is found in traditional methods of business. This can be achieved only if consumers of e-commerce are confident of the security provided by the concerned e-commerce. 
3. Issue relating to Consumer Protection– The consumers must be sure that they are as protected in the electronic marketplace as they are in the real marketplace. There are many consumer protection issues related to electronic transactions such as card information, bank information, etc. Therefore, it becomes important that confidential information such as credit/ debit card information, bank account number etc. are kept protected. Earlier, it used to be difficult for a consumer to verify the authentication and security information in an online atmosphere, but with the introduction of digital signature it has become easy and safe.
4. Issue relating to Content Regulation- There is certain types of online transmissions that are deemed inappropriate, offensive or harmful to certain segments of consumers and users of E-Commerce. Adult materials, bullying, terrorism, hate speech against minors and sedition are some examples of those activities that raise public concerns. And those who are concerned about these harmful or inappropriate Internet contents advocate for regulatory intervention and content regulation by government and concerned organizations. This is an issue for policy makers and concerned companies. However, the counter argument for such content regulation and intervention is on the ground of right to speech and expression. This problem should be solved without affecting the functioning and growth of e-commerce.
5. Issues relating to Access: The following are the main issues related to access to e-commerce:

Access to infrastructure- In order to conduct commercial transactions over the Internet, consumers need to have access to telecommunications networks and services. 

Access to content- In e-commerce, the kind and amount of content transmitted over this infrastructure is also one of the critical elements for the growth of e-commerce. The contents have to be competitive, respecting the cultural values of others, and not inappropriate or harmful to others.

Universal access- With the increasing importance and involvement of Information and Communication Technologies in our everyday lives, universal availability of various communication services, has become a necessity for both consumers and companies of e-commerce. A large number of people are still living without the basic telephone services. This gap related to technology and digitization in the world population is called as digital divide. The digital divide affects the people’s capacity to access modern Information and Communication Technologies, which in turn impedes their capacity to access the Internet and e-commerce, which ultimately daunts the growth of e-commerce.

Language and localization: With e-commerce extending to other boundaries, language and localization becomes an issue because it becomes difficult to communicate with a native speaker of any particular country. 

Pros of E-Commerce

E-commerce is an advanced way of conducting businesses online and across the borders and because of that it has various advantages to it: 

1. Its reach is across the global market and with minimum investments. 
2. It enables sellers to sell their products on a global level and allows customers to make a broader choice. Now sellers and buyers can meet in the virtual world, without the barrier of borders.
3. E-commerce process reduces the product distribution chain to a considerable extent. 
4. It helps in making a direct and transparent business and transaction channel between the producers, wholesalers and final customers. 
5. It provides quick delivery of goods and customer complaints are also addressed quickly. It also saves time, energy and effort for both the consumers and the company.
6. E-commerce leads to increased productivity and better service as it brings sellers and customers closer. 
7. The customer can choose between different sellers. 
8. Customers now have access to virtual stores all the time.
9. E-Commerce leads to considerable cost reduction of goods and services. Transaction costs are also reduced in E-commerce and due to that customers get to buy products at a comparatively lower rate.

Cons of E-Commerce

However, along with advantages, E-commerce has certain disadvantages too, such as:

1. Its dependence on network connectivity and information technology.
2. There aren’t definite legislations both domestically and internationally to regulate e-commerce transactions.
3. There can be a loss of the privacy of the customer.
4. Security is another issue. Issues like credit card theft, identity theft, etc. are some of the security related concerns.
5. There can be fraudulent financial transactions on online platform.
6. The costs of opening the e-commerce portal and maintaining it are very high. The setup of the hardware and the software, the training cost of employees and the constant maintenance are all expensive.

Conclusion

E-commerce is an ever developing area. With the advancement in technology and communication, e-commerce has also gained popularity among the people of India and worldwide. It has made e-business easy and accessible to people sitting at home. E-commerce has a huge impact on costs, access to goods and services and increased productivity of businesses. It also plays an important role in the economic growth and development of a nation. Though it is a relatively new area belonging to the era of the internet, it has the potential to change and replace the traditional form of business and trade activities. 

However, Indian e-commerce still faces many difficulties in web marketing because of infrastructural difficulties, limited access and computer illiteracy. Majority of the Indian population lives in rural areas and they do not have sufficient knowledge about computers and the internet. Some customers even in urban areas do not have sufficient facilities and knowledge of online transactions and payments, therefore, this activity of buying and selling of goods online is limited to certain people who are equipped with the knowledge of computer and internet. However, with the government initiatives like Digital India, this scenario has changed a lot in the last decade and India is becoming a huge platform for e-commerce.

References

• Abdul Gaffar Khan: Electronic Commerce: A Study on Benefits and Challenges in an Emerging Economy; Global Journal of Management and Business Research: B Economics and Commerce; Vol. 16; Issue 1; 2016
• Rajneesh Shahjee: The Impact of Electronic Commerce on Business Organization; Scholarly Research Journal for Interdisciplinary Studies; Vol.4/27, 2016
• Important Issues In Global E Commerce Information Technology Essay; UKEssays; Dated: 05.12.2016; Date of Access: 20.10.2019<https://www.ukessays.com/essays/information-technology/important-issues-in-global-e-commerce-information-technology-essay.php>

• What are the different categories of E-Commerce by Alex Wilks; Numinix; Dated: 05.11.2018; Date of Access: 20.10.2019 <https://www.numinix.com/blog/2018/11/05/what-are-the-different-categories-of-e-commerce/>

• Types of eCommerce Business Models, Pros, and Cons by Puneet Bhalla; Shiprocket360; Dated: 08.08.2018; Date of Access: 20.10.2019 < https://360.shiprocket.in/blog/ecommerce-business-models-types-pros-cons/>

• The Different Types of e-Commerce by Jack D’Errico; Trellis; Dated: 26.02.2019; Date of Access: 21.10.2019 < https://trellis.co/blog/the-different-types-of-e-commerce/>
• Understanding the challenges in cross-border ecommerce; PitneyBowes; Date of Access: 21.10.2019 <https://www.pitneybowes.com/uk/global-ecommerce/case-studies/the-challenges-of-cross-border-ecommerce.html>
• Emerging trends in business: Electronic Commerce; Toppr; Date of Access: 21.10.2019 < https://www.toppr.com/guides/business-environment/emerging-trends-in-business/electronic-commerce/>
• International Ecommerce Issues: How to Diagnose Global Barriers with Analytics by Edin Šabanović; Date of Access: 21.10.2019 < https://www.shopify.com/enterprise/international-ecommerce-issues>

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