Report on future and scope of Electronic Commerce

History of E-commerce:
The term 'e-commerce' has been in use since the 1970s and has had a number of meanings. In 2010, 'ecommerce' means buying and selling over the Internet. Online shopping was invented in 1979 in the UK.
The beginning of modern e-commerce and e-business can probably be traced to the announcement of
Redifon's Office Revolution in March/April 1980. Both business-to-business and business-to-consumer
online shopping existed in the UK in the 1980s. See the Aldrich Archive at the University of Brighton ,
aldricharchive.com .Later these applications moved to the Internet. See Wikipedia 'Online Shopping' and
'Electronic Commerce.'
So what does e-commerce mean anyway? E-commerce is the pre-eminent buzzword of the online business
revolution. It captures the excitement and focus of this fast emerging market. But it is more than a slogan or
glib party line. At its core it embodies a concept for doing business online.

The Journey of E-Commerce Industry in Pakistan:

E-commerce begun rising all across the world years ago. However, recently, Pakistan has joined the evergrowing feast too. Abid Beli was started the first Internet industry venture in 2001, who introduced
beliscity.com. Through cooperating with leadings banks, it quickly became an online portal with
efficient distribution systems. It has to its credit, the distinction of being the sole player in the market
until 2006 -boasting an exceptional 3 hours delivery time in the city and a less than 24 hours time
outside the city. Facing the troubles of that day, the venture shut down its Dubai office in 2006, while
retaining its Pakistan office. However, eventually more businesses started rising, one major success
story being that ofrozee.pk, giving a hope to Pakistans e-commerce industry.The concept of ecommerce is all about using the Internet to do business better and faster. It is about giving customers
controlled access to your computer systems and letting people serve themselves. It is about committing
your company to a serious online effort and integrating your Web site with the heart of your business

Introduction to E-Commerce
The term "Electronic commerce" (or E-commerce) refers to the use of an electronic medium to carry out
commercial transactions. Most of the time, it refers to the sale of products via Internet, but the term ecommerce also covers purchasing mechanisms via Internet. E-commerce not only help reduce business
costs, they also redefine the salesperson's job by allowing them more time to discuss new products and
market trends with the customer. E-commerce is the pre-eminent buzzword of the online business
revolution. It captures the excitement and focus of this fast emerging market. But it is more than a slogan or
glib party line. At its core it embodies a concept for doing business online.

Electronic commerce is the paperless exchange of business information using electronic data interchange
(EDI), e-mail, electronic bulletin boards, fax transmissions, and electronic funds transfer. It refers to Internet
shopping, online stock and bond transactions, the downloading and selling of soft merchandise (software,
documents, graphics, music, etc.), and business-to-business transactions.
The concept of e-commerce is all about using the Internet to do business better and faster. It is about giving
customers controlled access to your computer systems and letting people serve themselves. It is about
committing your company to a serious online effort and integrating your Web site with the heart of your
business. If you do that, you will see results!
The Internets role in business can be compared to that of the telephone. It is a way for people to
communicate with each other. It is also a way for a consumer to communicate with a companys computer
systems without human intervention. In fact, the Internet is a communication medium like the many others
we use in business every day.
Forms of E-commerce:
The most common and popular forms of e-commerce are
1) Business-to-Consumers (B2C)
2) Business-to-Business (B2B)
3) Business-to-Government (B2G)
4) Government-to-Citizens (G2C)
other forms, running on the internet but with low steam. However, the use of former two still dominates
the internet.
Services of E-Commerce:
A client who purchases on the Internet is called a cyber consumer. E-Commerce is not only limited to
online sales, but also covers:

Preparation of estimates online

Consulting of users

Provision of an electronic catalog

Access plan to point of sales

Real-time management of product availability (stock)

Online payment

Delivery tracking

After-sales service

3- Barrier in E-commerce:
In Pakistan, e-commerce is still in its infancy and faces many barrier to grow. The notable barriers are:
unavailability of proper infrastructure [telephone line of stem lines of steam age, frequent failures of power]
limited user of internet hardly one per cent of the entire population have access to the internet], the issue of

security of transactions on the internet, high bandwidth rates, and last but not least the rigid and monopoly
role of the PTCL.

commerce is a very hot issue these days. After the revolution of Internet, more and more countries are
getting involved in it. However, in general, if we use any type of electronic devices in getting orders and
sending catalogues, like telephone, fax or any other such instruments, we are supposed to be applying
electronic business techniques.
However, the real sense of e-commerce is the business on the internet of which there are different modes,
like opening a retail store on internet, where all transactions are done on line, from selection of product to
payment of bills. The over-all volume of e-commerce is more than $4 billion annually. Doing business on
internet is not a very costly investment. It is estimated that in near future, almost 25 per cent of the
traditional business will be converted into internet business.
Trends: E-commerce is an information technology trend developing fast in the business world. The
corporate and the business world, aptly supported by the IT industry, already stands transferred, which by
recent estimate will exceed $400 billion this year.
As we start warming up to global e-commerce in Pakistan, we must understand that almost 78 per cent of
the e-commerce activity takes place in the USA, obviously driven by the use of internet in that country. As
the January 2000,over 110 million people have internet access there compared to 279 million the world
over.
Nevertheless, Pakistan can make good use of this opportunity with proper planning and execution. To begin
with, let us focus on the domestic front before going all out for the global market.
Domestic activity: Offer for improving and productivity to bring it to the excellent level. It also allows our
entrepreneur to test their web business and marketing skills before taking on the international markets. Ecommerce is not for all but for those who understand it. Yet, e-commerce is not a technology.
The issue at the individual level, it is purely a business matter. At the govt level, it is a matter of providing
infrastructure for transactions on internet.E-commerce or business through internet is becoming very
popular mode of trading around the world particularly in the developed world.E- commerce is a broad term
used to quantify the trading taking place on the internet.
Most studies, however, suggest that e-commerce runs through
four steps. The very first step is, to build a website to let the world know about your existence. The website
contains information about the company, product/services and other related information, which can help
visitors to learn more about the hosts. The second step involves asking customers to loose their pockets and
buy on line.

This step requires adopting advance level of software capable of handling orders. In the third stage
inventory, management adds to the system and lastly, providing provisions of payments through online
banking partnership between buyers and sellers, the most difficult and complex part of e-commerce.
The most common and popular forms of e-commerce are business-to-consumers (B2C) and business-tobusiness (B2B). Business-to-government (B2G) and government-to-citizens (G2C) are other forms, running
on the internet but with low steam. However, the use of former two still dominates the internet.
However, Pakistan is still far behind in chasing the west in this regard.Entrepreneurs in Pakistan are of the
opinion that e- commerce means being able to make and receive payments through internet and any other
activity through internet is not considered as e-commerce. This low level of understanding has led many
Pakistani firms to give low priority to e-commerce due to unavailability of proper framework for the internet
in the country.
In Pakistan, e-commerce is still in its infancy and faces many barrier to grow. The notable barriers are:
unavailability of proper infrastructure [telephone line of stem lines of steam age, frequent failures of power]
limited user of internet hardly one per cent of the entire population have access to the internet], the issue of
security of transactions on the internet, high bandwidth rates, and last but not least the rigid and monopoly
role of the PTCL.
However, the SBP has recently put a crack on the barriers when it approved the merchant ID accounts to
facilitate online transactions. But there is still a long way to go and requires government to continue to
grease the wheels of e-commerce to speed up the process.
Prospects: Those who create, distribute, and sell goods and services to consumers also have reason to look
forward to this new mechanism. All enterprises, including the small and medium sized can reach customers
throughout the world instantly and comparatively inexpensively. Many vendors can sell globally without the
costly infrastructure of worldwide retail stores, sales offices,distributors,or warehouses.
Greater sales and inventory efficiency maybe possible through the increased interaction with prospective
customers that electronic commerce can afford.One to one marketing becomes possible on massive and
global scale. Active and alert supplier will also benefit from the new structure of product and service
distribution likely to results from electronic commerce.With conventional distribution ,a manufacturer must
reply to wholesalers and retailers to serve customers in large volumes. E-commerces automated customers
self-service capabilities can eliminate the need for these intermediaries .The manufacturer no longer has to
share profit with others. In addition, the manufacturer gains direct contact with consumers that can facilitate
future sales.
With this, as the role of conventional intermediariessuch as retail store clerks, travel agents, bank tellers,
and wholesale representatives may diminish or end, new intermediaries have started to appear.
Electronic commerce connects manufacturers directly to consumers. The consumer gets product information
directly from the ultimate source. The manufacturer can get customer preferences and needs directly from
the ultimate source. Each consumers physical location no longer determines whom the consumers contacts
to purchase a product. With the purchase of intangibles that can be delivered electronically, physical location
becomes irrelevant to product delivery as well. The internet makes the connection between a French
consumer and an Egyptian supplier virtually indistinguishable from the connection between a Persian
consumer and a Parisian consumer and Parisian manufacture.

It can be concluded that there is a lot of scope of e- commerce in Pakistan, and most companies are eager to
going to the digital world, but at present due to absence of any policy framework and limited internet
market, companies are holding their plans to start e-business until clouds of barriers as discussed are
disappeared.