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E-Commerce Concept and Terms

What is E-Commerce?

With the rapid development of communication technologies and internet usage, a new economic order has emerged worldwide. With these developments, geographical borders have disappeared, markets, which are the meeting point of sellers and buyers, have gained a different dimension and sellers have shifted their commercial activities to web-based systems. These advances in information and communication technologies have made it possible to quickly process, transmit and store written texts, audio and video images.

In addition, every segment of society is becoming aware of the increasing importance of computer use in daily life. These important developments emphasize the strategic importance of electronic commerce in ensuring economic development and social welfare.

Everyone who is interested in the Internet has seen or heard of electronic commerce applications. Since this concept is new not only in Turkey but also in the whole world, it is important to examine electronic commerce practices around the world.

Electronic commerce, which is a fairly new concept, in its short spelling e-commerce, refers to the realization of trade transactions within and through an interconnected computer network environment.

The concept of "trade" generally involves the buying and selling of goods or services. The realization of this process on the internet has given rise to the concept of electronic commerce.

Although the term "electronic commerce" has been widely used recently, it is rarely clearly and unambiguously defined. According to the increasingly accepted narrow definition, electronic commerce is defined as "commercial activities that shift transactions to the internet or web-based systems that are not the private property of anyone".


Different definitions of electronic commerce by different institutions can be listed as follows:


WTO (World Trade Organization): The production, advertising, sales and distribution of goods and services over telecommunication networks.


OECD (Organization for Economic Cooperation and Development): All commercial transactions involving individuals and institutions based on the processing and transmission of digitized written text, audio and video.


UN - CEFACT (United Nations Centre for Facilitation of Administrative, Commercial and Transport-related Practices and Procedures): The sharing of structured and unstructured business information between producers, consumers, public authorities and other organizations through electronic means (electronic mail and messages, electronic bulletin boards, www technology, smart cards, electronic funds transfer, electronic data interchange, etc.) for the conduct of business, management and consumption activities.


What are E-Commerce Terms?


DROPSHIPPING: Dropshipping model can be summarized as dropshipping directly from the factory to the public. The customer orders the product from the seller and the supplier or manufacturer sends the product directly to the purchasing customer. The revenue generated is shared between the seller and the supplier.

VENDOR/INTERMEDIARY MODEL: In this model, the tax incurred during the sale of a product subject to e-commerce is collected by an intermediary such as a marketplace, cargo operator, customs broker and transmitted to the customs units in the destination country of the product, usually in periods.

FULFILMENT: The delivery model, also known as fulfillment, basically involves receiving, packaging and distributing orders to buyers. Invoicing, collection of taxes and advertising may also be part of the delivery process.

WCO E-COMMERCE PACKAGE: The World Customs Organization (WCO) Cross-Border E-Commerce Standards Framework and a suite of supporting and implementing instruments. This package is designed to provide future guidance to member countries on e-commerce delivery processes.


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