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2 Literature Study
E-Commerce is one of the activities of marketing using internet as its media. In this case,
E-Commerce can be commercials that were equipped with purchase facilities for
consumers who were interested. E-Commerce has three advantages which are wide range,
plenty of product information provided, and easy access for consumers. The advantages
of E-Commerce are widely shown by the presence of Figures, videos, and sales service
that enable a two way communication between producers and consumers (Yihefizer,2008)
The history of E-Commerce development in the world began from the emergence of
internet that continues to grow until the development of E-Commerce. In the beginning,
internet was a computer operation that did not belong to anyone. Internet was born in
1969 when a group of researchers in US Defence Department that worked closely with
four computers in UCLA, Stanford Research Institute, University of Utah, and University
of California in Santa Barbara. This connection was set to create network of
communication on government projects. Thwas network was known as ARPAnet-ARPA
which meant Advanced Research Project Agency that was part of the department.
According to Jarot (2009). The main characteristics of E-Commerce are 1) Transactions
between two parties, 2) Exchange of products, service, or information, 3) Internet as the
main medium in the trade mechanism is pided into two segments which are Business to
business E-Commerce (trading between businessmen) and Business to consumers E-Commerce (trading between businessmen and consumers). Utilization of information
technology in running a business is often known as E-Commerce that enables small
Enterprises to give product flexibility, to provide fast deliveries of softwwere products, to
accelerate in receiving and sending orders efficiently, and to support no-paper transactions.
The development of the internet enables SMEs to market their products globally to achieve
the global market. According to Internet World States, in 2005, there were 972.828.001
(almost a billion) internet users in the world and about 16 millions internet users in Indonesia.
Most users came from USA and Canada which reached 68,2% of their citizens. A positive
impact from the internet to develop a business are: (1) to develop product promotion and
service through direct contact, with plenty if information, and interactions with consumers, (2)
to create a way of product distribution, (3) the cost of sending information to consumers were
lower compare to the use of package or postal service., (4) the time needed to receive or send
information is really short, within minutes or even seconds (M. Suyanto, 2005).The
implementation of E-Commerce in Indonesia still faces a lot of technical and non-technical
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