E-Commerce: A New Form of Market

Introduction Commerce has evolved over the centuries. Prior to the evolution of money it was the simple “barter process” where things could be exchanged, say milk for grains. The evolution of money brought with it, the concept of a “marketplace”. In a marketplace, Commerce is a function of the 4 P’s – Product, Price, Place and Promotions. All these four components play a vital role in a transaction to take place. Different combinations of 4Ps determine different forms of Commerce. Once the marketplace came into existence, a few pioneers realized that people would be ready to pay extra if they could deliver products at the customer’s doorstep. A slight modification on Price and Place led to the convenience of getting products at their homes. This concept delighted the customers and thus, the concept of “Street Vendors” was born. When the Postal System came into being the sellers decided to cash in on the new opportunity and started using mailers giving a description of their products. It led to the concept of “Mail Order Cataloguing”. From here, the evolution of the “Tele shopping” networks was thus inevitable in the development of media vehicles. The latest generation of commerce is one that can be done over the internet. The internet provides a virtual platform where sellers and buyers can come in contact for the sale and purchase of goods and services. They can be thousands of miles apart, may belong to different parts of the world, and might speak different languages, “E-Commerce emerged as the boundary-less trade medium in the era of globalization.