FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION MANAGEMENT ȘI ADMINISTRAREA AFACERILOR WORK OF DISSERTATION Scientific leader, Lecturer. univ. dr…. [607430]
UNIVERSITY OF CRAIOVA
FACULTY OF ECONOMICS AND BUSINESS
ADMINISTRATION MANAGEMENT ȘI ADMINISTRAREA AFACERILOR
WORK OF DISSERTATION
Scientific leader,
Lecturer. univ. dr. ………….
Graduate,
………
CRAIOVA
2017
E-COMMERCE – A CHALLENGE AND A REALITY
OF THE CONTEMPORARY WORLD
3
CONTENT
INTRODUCERE ……………………………………………………..……………….4
CHAPTER 1 LEGISLATIVE ASPECTS ON ELECTRONIC TRADE ………………5
1.1 Brief history of e -commerce ……………………………………………………………………..5
1.2 Legislative issues about E -commerce ………………………………………………… ……..7
CHAPTER 2 E-COMMERCE – A CHALLENGE AND A REALITY OF THE
CONTEMPORARY WORLD ……………………………………………………………………..16
2.1 Advantages and disadvantages of e -commerce ………………. …………………………16
2.2 Categories of e-commerce ………………………………………………………………………17
2.3 Beginning of Romanian electronic e -commerce ………………………………………..19
2.4 Online Com merce in Romania in 2015 and 2016 ………………………………………20
2.5 E-commerce and its impact on economy …………………………………………………..29
Conclu sions……………………………………………… ……………………….. ……32
Bibliography …………………………………………… ……………………………. ……35
4
INTRODUCTION
In the current economy, information is one of the most important assets of an
organization, probably inferior to just human resources. Every aspect of society, including the
business environment, is influenced by information that is interconnected. This does not mean
that every aspect of life is online, but that whether or not someone is involved is affected by this
aspect.
From the business perspective, informat ion has become one of the most important assets.
Thus, information security is of particular importance to companies that want to implement e –
business. The main problem with their security is that the very nature of the information,
together with the envir onment of creation, development, storage and transmission – computers,
communications networks and especially the Internet, which is by design an open and insecure
environment – is very difficult to control. Today is very easy to create, modify and transmi t
information.
E-commerce is still in its infancy. Customers are worried about this type of trade,
especially because of the security issues that arise (identity theft, passwords, credit card
numbers, personal data privacy, etc.). This is due to the fact t hat many companies have not
adopted the appropriate electronic model for their electronic commerce, or have difficulty
integrating orders related to securing the Web site and information obtained online in the
company's current business.
The e -commerce sec tor in Romania has been boosted substantially by the rapid increase
in the number of services provided by electronic means, which has attracted the attention of both
companies and consumers in this field, through the high speed of transactions, but also th rough
their low costs.
Electronic transactions have given major incentives to small and medium -sized
businesses to use the internet to develop their businesses and have enabled consumers in
Romania to access goods and services they otherwise would not have access to.
However, it is certain that the number of e -shop customers and companies adopting e –
commerce solutions is steadily increasing. Many Internet service providers popularize the online
purchasing system to bring extra confidence and considerati on.
With a steady growth and an increasing presence of traditional traders, this market is a
theme of interest to today's buyer, but also in the traditional environment, this environment is not
free from scams and miseries. For this reason, we considered i t very useful to choose such a
theme, and to conduct a study on the issues that users have experienced so far. The paper "E-
Commerce – A Challenge And A Reality Of The Contemporary World " presents problems faced
by users of this type of trade and is structu red in two chapters. The first chapter "E -Commerce
Legislation" analyzes aspects of the legislation that apply to these types of activities.
The second chapter present the a dvantages and disadvantages of e -commerce, categories
of E-commerce, b eginning of Romanian electronic e -commerce, o nline Comme rce in Romania
in 2015 and 2016 and the e -commerce and its impact on economy and a case study about E -mag,
who is the most known virtual store in Romania .
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CHAPTER 1 LEGISLATIVE ASPECTS ON ELECTRONIC TRAD E
1.1. Brief history of e -commerce
For most, the term "e -commerce" means making online shopping on the World Wide
Web. However, e -commerce (Electronic Commerce or E -Commerce) is more than the process of
buying / selling products and services. It may include many other activities, such as: exchanges
and bargaining between companies, internal processes of companies that they carry out as
support for purchasing / purchasing, selling, hiring, planning. Also, e -commerce involves the
transfer of documents – from contracts or orders to images or voice recordings.
E-commerce can also be defined as a purchase or sale offer via remote data transmission.
This approach is specific to the expansive marketing policy of commercial companies. Through
the Internet a re lationship of services and exchange of goods develops between the bidder and
the future buyer.
In the 1990s, IBM, through an advertising campaign, has also popularized the term
Electronic Business Equivalent. The term "e -business" has been used to define t he use of Internet
technologies to improve and transform key processes in a business. As defined by IBM, e –
business is a way of "secure, flexible, and integrated access to business by combining processes
and systems that perform basic business operations w ith those that make it possible to find
information on the Internet."
It is very important to understand that online business is not just about selling products
through the Internet. Electronic business means maintaining contacts with suppliers, possible
business partners, and with customers, promoting products and / or services offered by electronic
means.
E-commerce offers the opportunity to market products around the world, increasing the
number of potential customers primarily by removing geographical b arriers between customers
and retailers.
In classic business transactions there are four different stages: marketing research,
conclusion of the commercial contract, sale of the product or service and payment of the product
or service.
In Fig. 1.1 shows h ow these four steps are reflected in both classical and electronic commerce:
Classical:E -commerce:
marketing researchWebsite
sales contract interactive web site
deliverydigital delivery
paymentelectronic payment
Fig. 1.1. Classic Trade vs. e -commerce
In a rapidly growing economy, alternative sales channels and high speed of
communication, as well as fast and easy advertising methods, are undoubtedly the positive
aspects of electronic transactions for service providers.
The e -commerce sector in Romania has been boosted substantially by the rapid increase
in the number of services provided by electronic means, which has attracted the attention of both
companies and consumers in this field, through the high speed of transactions, but also through
their low cos ts.
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Electronic transactions have given major incentives to small and medium -sized
businesses to use the internet to develop their businesses and have enabled consumers in
Romania to access goods and services they otherwise would not have access to.
For co nsumers, ecommerce is a time consuming and offers a wider variety of options, as
virtual stores can be visited easily and quickly from anywhere in Romania where there is a
computer.
Broadly, e -commerce is an electronic exchange of information between a bus iness and its
customers. This can be done by fax, telephone, voice mail, e -mail, extranet or internet.
In a narrow sense, e -commerce is one of the complex solutions that Internet technology
offers. This means that a multitude of Internet service providers and providers need to work
together in perfect sync to make an ecommerce website work.
E-commerce includes a wide range of technologies such as:
EDI (Electronic Data Interchange);
X.400 messaging;
e-mail;
Internet / WWW;
Intranet – the internal network of a company, organized according to the principles of the
Internet;
The extranet – the Internet -based network that provides for electronic exchange of
information between the company's collaborators: suppliers, customers, banks.
Electronic commodi ty and service trading is an extension of current trade. In this way, an
increased efficiency is achieved in order to reduce the costs and the effect of marketing,
improving the relationship between the beneficiary and the client. E -commerce also facilitat es
business -to-business collaboration: reduces marketing and delivery costs, allows entry into new
markets, and supports the company's marketing strategy.
Moreover, e -commerce is not restricted by state borders, but it depends on the existence
or non -exist ence of computer networks and banking infrastructure that allow payments to be
made over the Internet.
Ecommerce allows even the smallest suppliers, regardless of their geographical origin, to
be omnipresent and to do business around the world. Electronic commerce positively influences
not only the activity of small and medium -sized enterprises, but it also comes to the customer's
support, giving them countless choices.
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1.2 Legislative issues about E -commerce
E-commerce is not limited only to the Internet,
including a large number of applications in the system,
such as: videotext, teleshoping, off -line (CD -ROM
catalogs), corporate networks and so on .
For some businesses, e -commerce is any
financial operation that uses information techno logy.
For other companies, the term e -commerce covers the
whole network of sales including marketing and sales.
Many people regard ecommerce as any commercially transacted electronically for buying
different products such as books, CDs, travel tickets and much more. Broadly, e -commerce
generates a far more profound impact on business evolution and includes all the activities that
support a company's marketing goals, not just new business acquisitions.
Due to this expansion, there have also been specific pro blems requiring solutions – for
example, guaranteeing the protection of consumers' personal data; Securing of concluded
contracts or electronic means; Avoid spam. In response to these issues and in view of the
integration of Romania into the European Union , Law 365/2002 on electronic commerce was
adopted in our country, which actually introduces the provisions adopted in this field at EU level.
E-commerce activity is governed by a series of laws, government decisions and
regulations such as:
– Electronic Co mmerce Law no. 365/2002;
– Government Decision no. 1308 of 20/11/2002 regarding the approval of the
methodological norms for the application of Law 365/2002 on electronic commerce;
– Ordinance no. 130/2000 on the protection of consumers when concluding and executing
distance contracts;
– Law No 365/2002 on Electronic Commerce.
The regulations of this law apply to all providers established in Romania and deal with
electronic commerce, also setting the conditions for providing information society services and
identifying the acts committed in connection with the security of these services.
According to this normative act, Article 1 defines a set of e -commerce terms such as:
– information society service – any service that is provided by means of electronic
technologies.
– electronic means – electronic equipment and cable networks, optical fiber, radio,
satellite and the like, used for processing, storing or transmitting information;
– service provider – any natural or legal person who makes available to a deter mined or
indeterminate number of persons an information society service;
– recipient of the service or consignee – any natural or legal person using, for commercial,
professional or other purposes, an information society service, in particular for the purp ose of
seeking information or providing access to them;
– consumer – any natural person acting for purposes other than those of his commercial or
professional activity;
– commercial communication – any form of communication designed to promote, directly
or indirectly, the products, services, image, name or business name, firm or emblem of a trader
or member of a regulated profession; Do not constitute the following commercial
communications: information allowing direct access to the activity of a natural or legal person, in
particular by domain name or e -mail address, communications relating to the products, services,
image, names or marks of a natural or legal person By a third party independent of the person
concerned, especially when they are made free of charge;
– an electronic payment instrument – a way for the holder to perform the following types
of transactions:
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A) transfers of funds;
B) withdrawals of cash;
– remote access payment instrument – method by which the holder can access funds held
in an account with a financial institution and authorize a payment using a personal identification
code or similar means of identification;
– electronic money instrument – rechargeable electronic payment instrument, other than
the remote access payment instrumen t, on which the units are electronically stored and which
allows the holder to perform the types of transactions referred to;
– holder – the person holding an electronic payment instrument on the basis of a contract
concluded with an issuer, under the cond itions provided by law;
Articles 2 and 3 set out the purpose and scope of creating a framework conducive to the
free movement and safe development of these services, the establishment of the conditions for
the procurement of information society services, a s well as the clarification of the offenses in
respect of certain facts In relation to the security of e -commerce domains, the issuance and use of
electronic payment instruments and the use of identification data for the conduct of financial
transactions.
From the category of information society services are excluded:
– service offerings that require the handling of tangible goods by the recipient, although
the provision of services involves the use of electronic equipment;
– activities carried out by voice , telex, radio and television services, including teletext
services;
– exchanges of information by electronic mail or other equivalent means of
communication between persons acting for other purposes of commercial activity;
Individuals or businesses can pr ovide services using the Internet without prior
authorization, but the principles of free and fair competition must be respected.
Another important aspect is that the company that provides these services offers clients
and public authorities solutions and methods that allow easy, direct, permanent access to
information such as:
name or business name of the seller;
supplier's domicile or headquarters;
the data necessary to contact the company directly and effectively (telephone, fax, e –
mail address, et c.);
the registration number and the code required for tax registration in the trade register
or in another similar public register;
tariffs for services offered with the indication of the exemption, the inclusion or non –
inclusion of value added tax an d its share;
Including or not including in the price the delivery costs, as well as their value, if any;
Unsolicited commercial messages are another regulated issue, also known as SPAMs. In
e-commerce, the use of commercial communications is necessary fo r advertising purposes. In
Law 365 commercial communications are considered as any means of communication for the
purpose of promoting, directly or indirectly, the goods, services, image, name or name, firm or
emblem of a trader of a member of a regulated profession. Law 365 also sets out the conditions
for service providers to rely on commercial communications, the basic principle being that the
transmission of commercial communications via e -mail is prohibited unless the recipient has
given its consent Re ceive such communications. As regards the consent of the recipient, it can be
obtained in any form and can be demonstrated by any means by the service provider.
The detailed description of the conditions that a consent sent electronically has to fulfill
is set out in Law 365 and its Implementing Rules. The addressee of a commercial
communication has the right to refuse to receive the communication by sending a simple
notification to the supplier. However, it is also the supplier's duty to establish a free, accessible
method by electronic means whereby the addressee can revoke his or her own consent, and the
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provider must make this method public on its website as well as in messages containing
commercial communications.
The transmission of unsolicited adverti sing messages over the Internet has grown
dramatically in recent years, causing serious consequences reaching electronic fraud. These
unsolicited commercial communications are sometimes defined in non -specialized language as
"spam", a term used in the legi slation of other countries, although people working in the
romanian institutions competent in this field believe that "spam" is more than "commercial
communications unsolicited "spamming is an important aspect of potential electronic fraud, as
well as a wa ste of time and money for parties involved in this process.
Trying to limit the potential dangers posed by spam, Law 365 regulates in detail the
conditions that must be fulfilled by commercial communications that represent information
society services or p art thereof, in order to be allowed as commercial communications: to be
clearly identifiable; It is also important that the natural or legal person on whose behalf these
communications are made is clearly identified, as well as the competitions and promoti onal
games. As for promotional offers, such as discounts, prizes and gifts, the same rule applies and
the conditions to be met for obtaining them are easily accessible and clearly presented.
As transmission of commercial communications implies the existenc e of an entire
database of personal information of potential clients, and given the need to protect the right to
privacy, a specific law was adopted in Romania, namely Law 506/2004 on the processing of
personal data And the protection of privacy in the ele ctronic communications sector. As an
exception to the prohibition of transmitting commercial communications via email without the
prior consent of the recipient, Law 506/2004 establishes that if a natural or legal person has
obtained a customer's e -mail ad dress when sold to goods or services, then that natural or legal
person is entitled to subsequently use that email to communicate to the customer commercial
communications about similar products or services, provided that it provides customers with a
clear and express opportunity to remove it method of using their email address in a simple and
free way.
As regards the validity and proof of contracts concluded through the use of electronic
means, it is not necessary for the parties to give their prior consen t to the use of electronic
means. Concluding contracts through electronic means and the obligations arising from these
contracts are set and defined by a series of normative acts.
The person to receive information society services has the right to receive information
on:
all stages that take place to conclude the contract or the sale -purchase process;
keeping or not the contract within the service provider's database;
the set of technical solutions that the service distributing company offers to the customer
for identifying and correcting problems arising from the introduction of the data;
the language in which the contract / sale / purchase process is being drafted and
concluded;
Supplier's obligations include providing the customer with the ability to use appropriate,
effective and affordable technical processes and techniques to identify and correct the errors that
occurred when entering the data before submitting or accepting the offer. The exception is given
by the situations in which the addresse e has settled differently, but none of the parties should
have the quality of the consumer.
The terms and conditions of the sale -purchase process must be made available to the
consumer in such a way as to be able to store and reproduce, except in those cas es where
contracts are concluded only by electronic mail or other similar means of communication.
In order to facilitate electronic transactions, Law 365 includes a number of specific
provisions on the completion of contracts by electronic means. As these contracts do not require
the simultaneous presence of the parties, their analysis is made as dista nce contracts only if they
are concluded between service providers and consumers as natural and legal persons acting for
purposes other than those of their business; or professional.
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Contracts concluded by electronic means produce all the effects that the law recognizes
for other contracts only when all the conditions of validity are met. These conditions of validity
do not include the obligation for both parties to give their consent to the use of electronic means.
If the two parties have not agreed other wise on the completion of the contracts, it shall be
deemed to have been concluded when the customer has accepted the offer and the response has
reached the bidder or when the performance is immediate, the contract shall be terminated after
the start of th e contract benefit.
The conclusion of contracts by electronic means also determines certain risks, Law 365
requires a series of specific safeguards to ensure the transparency of the activity of the service
providers, especially the obligation to inform the m. This obligation to inform service providers
can be analyzed from time to time with regard to the obligation of information providers of
recipients, but also with reference to the obligation of the providers of information to consumers.
In the first obli gation, before the suppliers submit the offer to contract or accept the offer,
they must make available to all the recipients the following information, which must be
expressed in a coherent, clear and readable manner in an easily understandable language: the
technical steps to be followed to conclude the contract also after the conclusion of the contract,
whether it is stored by the service provider or whether it is accessible or not; technical solutions
for making available to the addressee in order to id entify and correct problems arising from the
input of the data; the language used for the conclusion of the contract; the codes of conduct used
by the service provider, but also other information on how these codes can be analyzed and
observed by electroni c means.
In the case of consumers, they should first be informed of the contact details of the
service providers, but also of the registration number with the Romanian authorities responsible
for trade and taxation. It is also important for service provide rs to publish information on the
prices of their products and services on their website but also whether these prices include
delivery costs or not, and what are the costs. Prices must be indicated in full compliance with
existing legislation, indicating w hether VAT is included or not and also indicating the amount of
VAT in question.
The obligation to inform also extends to the methods of concluding the contract. The
service provider must inform consumers about the way they choose products or services, the
steps to be taken to order a product, payment methods, delivery, and the right to terminate the
contract. In order to transmit the order, the consumer must complete an electronic form in which
to specify the following information: name, address, telephone number, e -mail address and
registration password that can help the consumer follow the status of the orders made and reduce
The time required to enter each other's personal information. The contract shall be deemed to be
completed when acceptance of the o ffer is received by the service provider, unless the parties
have agreed otherwise. When the recipient transmits by e -mail the offer to conclude a contract or
accept an offer, then the service provider is obliged to confirm that he has received or accepted
the offer.
The conclusion of contracts by electronic means also involves other specific elements,
such as electronic signature, which is defined as any electronic data that is logically attached or
logically associated with other electronic data and used as an identification method.
Electronic Commerce Law requires information to be presented or retained in its original
form, fulfilling cumulatively the following conditions:
– the integrity of information is guaranteed by observing national standards in th e field;
– the message is signed using the issuer's electronic signature;
– information can be provided and presented on request.
In those situations when the company's services consist in transmitting information
provided by the partners in a communicatio ns network, to the extent that this operation takes
place in order to make the transmission of information to other recipients more efficient, at their
request, the provider of that service is not responsible for automatic, intermediate, and temporary
storage of information.
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However, the following conditions must be met cumulatively:
No changes are made to the transmitted information;
access to information meets legal requirements;
updating the information complies with the applicable rules and practices;
obtaining data on the nature and use of information must be made available to all
interested parties;
If the services provided by the company consist in storing the information provided by a
recipient of that service, the supplying company is not responsible for the information stored at
the request of a recipient. There are imposed, but a series of conditions:
If there is damage, the distributing company must demonstrate that it did not know that
the activities or information stored are legal or that it could harm the rights of a third
party;
Also, the firm needs to know whether the activity or information in question is legal or
otherwise harmful to the rights of a third party, then the firm must ensure that the activity
or information is not removed or blocked.
Companies whose main activity is to facilitate access to information provided by other
companies through information search tools or links to other web pages is not responsible for the
information in question. The only condition is that the company is unaware that the facilitated
information is illegal or could prejudice the rights of a third party.
The service provider responds for information when its unlawfulness has been detected
by a decision of a public authority.
Also, the obligat ion of the service provider is also to inform the competent public
authorities immediately of the illegal appearance of the company's clients or of the illegal
information they provide.
Where contracts have been concluded for the permanent storage of infor mation, service
providers are required to immediately communicate to the authorities information that will help
identify customers,
Sending or storing information provided by a customer of the service in question if
companies are forced to interrupt, eithe r temporarily or permanently, they may either eliminate
the information or be able to block it if these measures were ordered by a public authority or
upon receipt A complaint, a complaint from any person.
Complaint or referral may be made by any person wh o considers himself or herself to be
prejudiced by the content of the information in question. It is written in written form, it is
obligatory to state the reasons, dating and signing. It is preceded, however, by a claim in law,
having the same object and the same parts.
When making the decision of the authorities, it must be reasoned and communicated to
the two parties within 30 days of receipt of the complaint or referral. The term becomes 15 days
for the case when the authority acted ex officio.
Persons wishing to file appeals may do so within 15 days of communication to the
competent court. The sentence is final.
The Authority in this area that deals with these issues is ARCTI. It may require
companies to provide any necessary information by specifying t he legal basis and purpose of the
request. Time limits can be set for providing this information, otherwise sanctions are provided.
Checks are carried out through ARCTI's empowered control staff, staff who may request
declarations or any other documents re quired to resolve the problem, seal, register, finance,
accountancy or commercial records, or other evidence to provide the person under investigation
with copies From the original, or get copies, leaving it original. Control personnel are also
authorized to make unannounced inspections, the results of which will be recorded in the report
and received, information and justifications.
ARCTI has the right and obligation to notify the criminal investigating authorities of the
finding of criminal law violations .
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The sanction regime applicable to violations of the Law 365 has been established taking
into account the fact that an effective and full control over the activities performed in the
electronic domain can not be performed. Therefore, if the service provid er breaches the legal
obligation to inform the other party, Law 365 sets as a penalty the relative nullity of such
contracts.
Therefore, the law requires that if the other contracting party has not been informed in
accordance with the legal provisions, the contract was in fact concluded through a consenting
vag of that party.
In the case of persons in a trial, they have the right to request the court that the accused
company may no longer be able to provide those services, can no longer resume work in the
future and claim damages for the damage suffered.
Persons who can apply for court action are:
A) natural and legal persons claiming the possession of a subjective right provided by the
present law or of an interest which can only be achieved by way of justi ce;
B) National Authority for Consumer Protection together with the County Consumer
Protection Offices and the Bucharest Consumer Protection Office;
C) entities constituted for the purpose of consumer protection in the Member States of the
European Union, under the conditions provided by the methodological norms for the application
of the present law.
With regard to the relative nullity of information society services contracts, it is specified
in the law that any contract may be canceled at the request of the addressee if at the time of its
conclusion with a service provider it did not make it available to the addressee under the
conditions Law, the necessary information or not provided all this information, or provided
inappropriate and inaccurate informat ion;
Falsifying an electronic payment instrument implies a prison sentence of 3 to 12 years
and a ban on certain rights.
In the case of forged electronic payment instruments or held for circulation, it is also
punished as being a criminal offense.
The manufacture or possession of equipment, including hardware or software, for the
purpose of forging electronic money instruments shall be punished by imprisonment between 6
months and 5 years.
False information statements to legal persons, banking, credit o r financial institutions or
other types of institutions for the issuance of electronic payment instruments or for the execution
of transactions for the purpose of issuing or using an electronic payment instrument, according to
law or circumstances, the sta tement made serves to issue or use that instrument, shall be
punished by imprisonment from 3 months to 2 years or by fine.
Codes of conduct may be made by professional associations or non -governmental
organizations or organizations set up to protect consum ers, minors or persons with disabilities
and may contain provisions on:
extrajudicial litigation;
the protection of minors and human dignity;
customer protection with regard to commercial communications (Spam).
In the decision no. 1308 of 11/20/2002 for the approval of the Methodological Norms for
the application of Law 365/2002 on electronic commerce are addressed issues regarding the
commercial communications and the character of information and activities in the field of
information society service s.
The information on the person on whose behalf the commercial communications are
made shall include:
A) the name of the person or the full name of the firm requesting the services;
B) the personal numerical code or the unique registration code, as the ca se may be;
C) the address in which the domicile or headquarters is located;
D) telephone and fax numbers;
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E) e-mail address.
Transmission of the agreement by e -mail is only valid if the following conditions are met
cumulatively:
is sent from the mailbox in which the recipient wishes to receive commercial
communications;
The subject of the message consists of the following words "ACCEPT COMMERCIAL
COMMUNICATIONS FROM PART" written in block capitals and the name or the
name of the person on whose behalf the c ommercial communications will be transmitted.
The subject of emails, which constitute commercial communications, must begin with the
word "ADVERTISING" in capital letters.
The person receiving the commercial communications has the right to request not to
receive such communications through a simple request to the assignee who has the obligation to
implement a free, accessible, including electronic, procedure by which the addressee can revoke
his / her consent.
Information society service providers are under no obligation to monitor the information
they transmit or store, nor do they have an obligation to actively seek data about activities or
information with the illicit appearance of information society services they provide.
Complaints and complaints from any person about apparently unlawful activities carried
out by recipients of their services or information provided by them, service providers have the
obligation to implement a free of charge procedure to be transmitted to them, which must:
be available e lectronically;
ensure that complaints or notifications are received within 48 hours of dispatch.
Another normative act on electronic commerce is Ordinance no. 130/2000 on the
protection of consumers when concluding and executing distance contracts regulating the
conditions of concluding and executing distance commercial contracts between traders supplying
goods or services and consumers.
Here are a series of terms like:
A) distance contract – is the contract for the supply of goods or services concl uded
between a trader and a consumer under a sales system organized by the trader, which uses
exclusively before and at the conclusion of this contract one or Multiple remote communication
techniques;
B) consumer – any natural person or group of persons co nstituted in associations who, in
executing contracts acting for purposes other than its commercial, industrial or production, craft
or liberal activity;
C) trader – is the natural or legal person who, in the execution of the contracts, acts in the
course of his commercial, industrial or production, craft or liberal activity, but also any person
acting for the same purpose in his or her name or on his behalf;
(D) distance communication technique – any method that may be used to conclude a
contract between t he trader and the consumer and which does not involve the simultaneous
physical presence of the two parties;
E) communication operator – any natural or legal person whose professional activity
involves the provision to the trader of one or more distance co mmunication techniques.
Prior to the conclusion of the distance contract, the trader is obliged to inform the
consumer in a timely, correct and complete manner about the following:
(A) the identity of the trader and, in the case of contracts providing for early payment, his
address and the means of contacting him, telephone / fax, e -mail and unique registration code;
B) the specific characteristics of the product or service;
C) the price of goods or service charges, all taxes included;
(D) the cost of deliv ery, if any, of such costs;
E) the methods of payment, delivery or delivery;
F) the possibility of unilateral termination of the contract, except in the cases provided for
in this Ordinance;
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G) the cost of using the distance communication technique if othe r calculation methods
are used compared to the basic tariff;
H) the period during which the offer or the price is valid;
I) the minimum duration of the contract;
J) the deadline for performance of obligations arising from the contract.
The consumer has the right to receive, in writing or on another durable medium, at his
disposal and to which he has access, in due time, during the period necessary for the execution of
the contract and until the latest at the moment of delivery:
– "The consumer has the right to notify in writing to the trader that he renounces the
purchase, without penalty and without invoking a reason, within 10 working days of receipt of
the product or, in the case of service provision, from the conclusion of the contract". The
procedures f or exercising the right of unilateral denunciation, for the cases provided in the
present Ordinance, the following clause, being written in bold characters:
An address where the headquarters is located, the telephone / fax number and e -mail
address of the merchant to allow the consumer to submit his complaints;
Information on after -sales service and guarantees offered;
O the conditions for unilateral denunciation of the contract, where it is of indefinite
duration or longer than one year.
With regard to electronic order, there are several options for product exposure and online
ordering. The most common is the simple HTML page for product exposure and a form of order.
If, however, the number of products is higher and customers typically buy a large number
of products, a more complex script system is needed: either the free JAVA or CGI scripts, which
may be sufficient in the start -up phase, Or e -commerce solutions offered by web hosting
providers. Unlike the latter, free scripts are more difficult to instal l, are harder to maintain in
terms of product or price updates, are less dynamic, offer limited opportunities for special
promotions, do not provide tools for portfolio management Customers have limited product
exposure, load slowly, some versions expire o ver time, and no effort is expended with their
installation on the web server.
Unlike these options, most web hosting providers offer special e -commerce application
packages – shopping cart systems, which have a database interface and use complex
programmi ng tools. Dynamic pages for product exposure, pricing and fees can be generated,
provide comprehensive customer tracking reports and maintenance and upgrade options, allow
special promotions, even cross -over, many of these applications can also be used in commercial
sites Business to business, the entire application installation process is done through the
commonly -used browser, most hosting providers also offer installation support, are easier to
install, are easy to maintain, include customer tracking fea tures, product number can be
expanded or decreased, integrates real -time transaction solutions.
Regarding the methods of electronic payment, the choice of the method depends on what
kind of business site is managed: Business to consumer, Business -to-consum er, or Business to
business -focused business transactions.
The development of commercial activities between traders located at great distances from
one another can not be conceived without the use of electronic payment systems. These
electronic payment mea ns allow easy and convenient money transfer between merchants.
The most common payment methods are credit or debit card payment, payment order,
transfer, checks. In business to consumer sites, the most common method is credit card, and
Business to Business , payment orders and transfers.
In business to business e -commerce, clients involved in transactions hold a business
account and require the issue of invoices, and it is also necessary to check the solvency of the
customer prior to shipping the goods.
Ther efore, the chosen shopping cart system must be able to provide the mechanisms for
collecting the information needed to ship the product and process the transaction, including
billing.
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Credit card transactions are in two forms:
Manual processing
real -time processing
Manual processing is done through the following steps:
authentication is the operation that confirms the validity of the credit card number and
is not obtained through illicit means;
authorization, is the operation that verifies that fund s are available for payment;
and the last step, the initiation of the process by which the money is transferred;
The first two steps take place before the product is dispatched, and the money transfer
takes place only after the product is on its way to t he consumer.
All of these steps are gone offline5 by sending information from the credit card via a
telephone or through a POS terminal that is provided with the merchant account.
The processing is done in real time and is totally computerized, involving s everal
independent service providers: the bank, the customer's bank, the credit or debit card companies.
This whole system will be moved by pressing a simple "buy now" button. Being more expensive,
real-time processing is not too often used in our country, and sometimes it is not necessary. But
there are also traders with a large number of orders, each transaction taking about 5 minutes.
Often manual processing as an electronic payment method is not used, but the buyer pays to the
destination by postal mone y order the received merchandise when it comes to a Business to
Consumer business site.
In addition to these, there are some methods of making payments in e -commerce: value
cards, electronic money transfer at point of sale, credit card system or electronic data exchange.
The consumer has the right to change his mind about the distance contract, within 10
business days, without incurring penalties and without invoking any reason. The only costs that
the consumer can bear are the costs of returning the produc ts.
The consumer is not entitled to unilaterally terminate the following types of contract,
except as otherwise agreed by the parties:
(A) service provision contracts commenced with the consumer's agreement before the
expiry of the 10 -day working day;
(B) contracts for the supply of goods or services where the price depends on fluctuations
in financial market rates that can not be controlled by the trader;
(C) contracts for the supply of products which depend on consumer specifications or
distinctly persona lized products as well as those which by their nature can not be returned or
which may deteriorate or suffer a rapid deterioration;
D) contracts for the provision of audio, video or computer programs, provided they have
been unsealed by the consumer;
E) contracts for the supply of newspapers, periodicals and magazines;
F) betting or lottery service contracts.
In order for distance contracts to be executed, a number of contractual obligations must
be fulfilled by the trader within no more than 30 days from the date the consumer submitted the
order, unless the parties have agreed otherwise. If the customer can not execute the contract
because the product or service is not available, the trader is required to notify the consumer of
the issue and the sums he h as provided as payment must be reimbursed by the trader within a
maximum of 30 days.
The trader can deliver to the consumer a product or service only if they are of the same
quality and price as those required only if this was foreseen before the conclusio n of the contract
and / or the contract so that the consumer is clearly informed of this possibility. If this condition
is not met, supplying products or services similar to those requested will not be considered as an
order or delivered. The costs of retu rning products where the order is to be waived are the
trader's responsibility and the consumer must be informed of this.
For those deliveries for which there is no pre -order, the consumer is exempt from any
consideration, and the lack of response is not c onsidered consent.
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Chapter 2 E-COMMERCE – A CHALLENGE AND A REALITY OF THE
CONTEMPORARY WORLD
2.1 Advantages and disadvantages of e -commerce
Among the general advantages of e -commerce are:
– The Internet, the environment with which electronic
commerce is deployed, is omnipresent, accessible and
inexpensive;
– access to e -commerce resources can be achieved
through a wide range of technologies (computers, PDAs,
mobile phones, digital television, telephone booths);
– reducing the time needed for shopping;
– existing card -based payment methods may be used
– there are no geographical limits;
Intermediates can easily be removed from the supply chain;
– stocks are reduced or even eliminated through "just -in-time" production processes.
In the case of e -commerce, t here are advantages both for the seller and for the buyer. The
advantages for the seller are as follows:
• the disappearance of geographical sales limits;
• online advertising can reach the target audience more easily;
• the development of new products can be made more easily in accordance with the
requirements of the consumer;
• adapting to change is faster;
• availability of customer information;
• Savings on the sale of the product;
• improving customer relationships;
• reducing errors by automating paym ent processes;
• Operability 24 hours / day, 7 days a week.
For the buyer, e -commerce brings the following benefits:
• reduced access to the product;
• Easier identification of suppliers and business partners;
• Savings savings;
• negotiating prices is eas ier;
• lower transaction costs by increasing the speed of information transfer;
• online distribution for digital products;
• work at a distance;
• access to products / services in remote areas (example: distance learning).
As critical issues in the develo pment of e -commerce we can mention:
– security;
– using recent payment methods (electronic / digital money);
– adequate telecommunication infrastructure,
– investment costs;
– the legal and normative framework, all the procedures related to the confidentiality of
the consumers' data;
– language and culture issues;
– the difficulty of integrating Internet and e -commerce software with some applications
and databases;
– some ecommerce software products are not adapted to some hardware and operating
systems;
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– the impossibility of touching the objects, seeing and feeling by the customers;
– Insufficient service support – for example, E -commerce experts or quality evaluators are
rare, copyright centers for e -commerce transactions do not exist;
– Intern et access is still expensive for some potential customers;
– the failure to successfully translate products and services online (example: perishable
food, unique jewelry, other products that can not be inspected remotely, regardless of current
technologies );
– the non -profitability of certain products;
– low credibility;
-the cumbersome integration of databases and traditional transaction processing software
with e -commerce software (these integ ration services may be costly).
Due to the existing e -commerce legislation in Romania, it has been boosted substantially
by the rapid increase in the number of electronically supplied services, which has attracted the
attention of both companies and consumers in this field through the high speed of execution Of
transa ctions but also through their low costs. Electronic transactions have given major incentives
to small and medium -sized businesses to use the internet to develop their businesses and have
enabled consumers in Romania to access goods and services they otherw ise would not have
access to.
For consumers, ecommerce allows for time reduction, an important factor today, and
offers a wider variety of options, as virtual stores can be visited easily and quickly from
anywhere in Romania where there is a computer. Whil e e-commerce also has a number of risks
to consumers due to their inability to watch and test the products they purchase, as well as the
various mechanisms put in place to obtain their personal data, including bank information, yet
the benefits to consumer s have been improved by adopting specific legislation in Romania.
2.2 Categories of E -commerce
There are five general categories of e -commerce:
business -to-consumer – companies sell products
and services to individual consumers;
business -to-business – companies sell products and
services to other companies;
business processes – companies maintain and use
information to identify and evaluate customers, suppliers
and employees; At the same time, share this information, in
a carefully controlled manne r, with customers, suppliers, employees and business partners;
consumer -to-consumer – participants in an online market can sell / buy each other's
goods;
business -to-government – companies can sell goods and services to government
agencies.
Most Intern et-based businesses with e -commerce have grown into Business -to-Business
and less Busines -to-Consumer.
Business -to-Business (B2B) consists in making transactions between companies,
transforming how they work together. Initially, the transfer between compa nies was
accomplished through an electronic transfer system called EDI (Electronic Data Interchange).
EDI-based electronic transfer transmits data in a standard format. Since the documents were
roughly the same format, standards could be reached afterwards and it was possible to pass them
in electronic format. Due to the fact that EDI networks had a high cost, many companies used
leased lines or the services of companies that provided connections and transmission services to
EDI (Value Added Network) employ ees.
Using such a data transfer method presented the opportunity to reduce the costs of filling
in the form, listing, sending or re -entering an IT system once it arrived at the recipient, as well as
the errors that would result from repeated data entry.
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With the advent of the Internet, internet -based e -commerce has gone through because its
use is less expensive. E -commerce has many stages:
The initial stage, the stage in which email was the most widely used data transfer
technology;
the www stage, which originated with the first web browser (Mosaic);
Interactive stage, when many websites have introduced secure communication
protocols, server -side and / or client -side software applications, forms, ensuring client -to-service
interactivity;
the stage of web maturity, characterized by its introduction into the organization's
intranet, the use of extranet between organizations, the use of Java technology and the
multimedia capabilities of the Web, which has become a valuable advertising and advertising
channel (Electronic Market).
Electronic Commerce Models
Analyzing current applications developed over the Internet, we identify the following
business models in e -commerce:
electronic shop (e -shop): an electronic store is being implemented through a website; It
is managed by a company for the marketing and sales of its own products and services.
Minimal, contains the catalog of products or services with technical and commercial
descriptions for each item in the catalog. These descriptions are generally managed by a
Database Management System (SGBD). The Database Management System will handle
data storage and handling and provide access to data. The average version includes order
picking facilities (by email or interactive forms that customers will fill in), and the
extended version also includes online payments (via credit cards or other electronic
versions).
EProcurement: For procurement of goods and services, large companies and public
authorities organize tenders. By publishing the offer specifications on the Web, both the
transmission time and cost decrease, and the number of bidders is increasing. This
increases competition and decreases the price.
eMall: as in the real world, the universal electronic store is a collection of electronic
stores, reunified und er a common umbrella, and generally accepts common payment
methods.
Third party marketplace: A user interface for the company's product catalog, a third –
party interface (generally an Internet service provider or a bank), is used. This method
has the advant age that the interface is unique for many manufacturers, and users are
familiar with its use.
virtual communities: the most important value of a virtual community is given by its
members (customers or partners) who add their own information over a base
environment provided by the company. Each member may offer for sale products or
services or may apply for purchase of a products or services. Membership of a virtual
community implies paying a fee.
value -provider service provider: Service providers special ize in specific functions such
as logistics, electronic payment, or expertise in production and stock management. The
payment of these services is based on tariffs or a percentage quota.
collaborative platforms: collaborative platforms include a set of tools and an
informational environment for collaborating between companies. They can address
specific functions such as collaborative design or design. Earnings come from platform
management (membership fee or user fee), and sales of specialized tools (for design,
workflow and document management). Workflow means the flow of documents,
involving two entities: the passive part (s) and the active part (movement of these
documents).
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information brokerage and other services: examples include customer catalogs c lassified
by profile, sales of business opportunities, specialized field consultancy. A special
category is the trust services provided by certification authorities or by electronic
notaries.
2.3 Beginning of Romanian electronic e-commerce
According to Web Internet Archive, the first
online store in Romania was launched by PC Net in
1997 and was called CyberShop.ro, s elling music CDs.
Soon, take it EShop.ro start, the first shop that
introduces the shoppi ng cart concept – what's right, i n a
rudimentary version in terms of usability.
Meanwhile, he's getting tough in online affairs
and other merch ants: Romanian Music Online and
AllOnline.ro, until the first successful shop was
launched on September 14, 2000 EMania.ro, followed
shortly by Rate.ro and by Mag azinul Tau.ro, the latter
being launched by to the Best Computers retailer.
Also during the year 2000, Netbridge Investments starts OKazii.ro, a site of Online
auctions similar to the famous eBay. At the tim e of launch Okazii the level of t he trust of
Romanian Internet users in online trading w as extremely low. "I've created OKazii.ro at a time
when confidence in Internet transactions almost does not ex ist ", s aid in 2006 Emilian Cristea,
Project Manager at Netbrid ge Investments, in an interview g ranted to Link 2 eCommerce.
Around 2001, eMag.ro is launching – the biggest ever o nline shop in Romania. We can
say that the start of e -commerce r omanian was held in the 2000s, with the several l arge projects:
eMania, Rate.ro .
Around 2001, eMag.ro is launching – the biggest ever online shop in Romania. We can say that
the start of e -commerce romanian was held in the 2000s, with the several large projects: eMania,
Rate.ro, YourTau, Okazii and eMag stores. Most Internet connections in the 2000s were dial -up.
The Rom anians were only then doing Acquainted with the online environment, being fascinated
by the information provided by the Internet.
Because not everyone allowed to pay an unlimited connection due to the high prices of
ISPs, viewers have made a business of t his by opening up numerous "Internet Cafes".
Most of the time, however, "net café" customers were young people looking for
information either they were using online as a way of entertainment (chat, music, games or adult
websites).
Very few were those who would have bought a product via the Internet in two
considerations: it seemed at least strange to buy online due to the mentality that they must t he
product was palpated or was afraid of fraud because of the m ultitude of press artic les that m edia
as the "land of nobody", an environment where t here is no control, no laws, no a narchic
environment where if you steal, you are not caught or punished.
For consumers, e -commerce is a time consuming and offers a wider variety of options, as
virtual stores can be visited easily and quickly from anywhere in Romania where there is a
computer.
Electronic commodity and service trading is an extension of current trade. In this way, an
increased efficiency is achieved, in order to reduce the costs an d the effect of marketing,
improving the relationship between the beneficiary and the client. E -commerce also facilitates
business -to-business collaboration: reduces marketing and delivery costs, allows entry into new
markets, and supports the company's ma rketing strategy.
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In the near future, e -commerce will have a strong impact on business competitiveness.
Moreover, e -commerce is not restricted by state borders, but it depends on the existence or non –
existence of computer networks and banking infrastructur e that allow payments to be made over
the Internet. Ecommerce allows even the smallest suppliers, regardless of their geographical
origin, to be omnipresent and to do business around the world. Electronic commerce positively
influences not only the activit y of small and medium -sized enterprises, but it also comes to the
customer's support, giving them countless choices.
The problem is that the vast majority of Romanian virtual stores are not professional: it
does not give the importance of communication with the client, especially in the virtual
environment, which by definition gives reticence to the users; It has not been understood how
important it is to promote and build a brand -name; Sites do not respect the elements that make
successful online busine ss; Have problems with product description (wrong or too few
specifications, English specifications); The products on the site are not in the actual stocks;
Delivery terms are still high; Does not present on the website the company identification
elements behind it and the contact data, which increases the mistrust of users in e -commerce.
Under the law, traders are required to receive the purchased products back if they are
returned within 14 days of receipt (the return period for the products may differ fr om trader to
merchant). If the consumer was not informed at the time of the on -line order that he is entitled to
reimburse the purchased product within 14 calendar days, then the merchant is obliged to receive
it if it is repaid within one year.
A trader i mmediately announced after the Black Friday event that his online sales
exceeded 220 million lei. From here, we can draw the following conclusion: more and more
consumers are deciding to migrate to virtual markets to buy various products at a distance, hom e
or work, in front of a computer. However, the increase in online commerce implies irregularities,
malfunctions in practice, as well as a series of complaints to the National Authority for
Consumer Protection (ANPC) and to the territorial units of the ins titution.
Any product purchased via the Internet may be returned within 14 calendar days of its
receipt, even if it is in good working order, according to Government Emergency Ordinance
(GEO) no. 34/2014 on consumer rights in contracts concluded with profe ssionals. The
consumer's action to return the product purchased during the contractual period must not be
motivated in any way because it is his right to acquire and use what he wants. If the company
selling the goods at a distance does not inform the cons umer when he orders, that he has 14
calendar days to return the product purchased remotely, then that trader or professional is obliged
to accept the reimbursement of that product Within one year from the date the product was
received by the consumer.
2.4 Online Commerce in Romania in 2015 and 2016
According to GPeC, in 201 5 the Romanian domestic
retailer easily exceeded the EUR 1.1 billion threshold, a
significant increase from 201 4, at which the threshold
reached was around EUR 600 million and in 2015 the
threshold jumped to 1.4 billion euro .
Among the main factors that contributed to the
growth in sales of e -commerce are:
The number of mobile connections increased
significantly from 8.2 million in 201 4 to around 9.8 million
in 201 5.
– In 201 5, the numb er of online stores increased to 5,000 stores, an increase of
approximately 4500 stores versus 2013. Of these, those using the online security system, 3D
Secure, are only 1173 Stores, an increase of about 1,000 stores over 2013.
– In 201 6, online traffic was generated by mobile devices.
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The best -selling products in the on -line environment were products from the category
Domestic appliances and IT & C, followed by products of clothing and footwear. As a surprise
of 2014, 3rd place in the preferences of Roma nians are produced from the Home & Deco
category. The total of transactions made through cards reached the level of EUR 337 million in
2014, the data being communicated by the main RomCard bank payment processors and
mobilPay.
Also, according to Visa offi cials, the number of transactions made through bank cards
has increased by about 25% compared to 2014. At the Black Friday 2014 event, the purchased
products amounted to approximately EUR 75 million, the main retaliators being EMag and
Altex, In 2015, the level of revenue earned during this event reached the threshold of
approximately EUR 100 million.
Although card transaction rates have increased quite a lot, most online buyers are
reluctant to pay for their products through the card, the most used method being payback.
Considering the continued evolution of devices and technology, on -line shops need to take into
account the rapid development and use of mobile devices.
At the year 201 5, the efforts of the most important players on the online market were
easily noticed both through the diversification of offers and the setting of a competitive price,
contributing with an important addition to the banks that encouraged and supported the payment
of the purchases on-line with the card. At this point, we can not say that the online market could
see a decline since mobile devices have become important support for online commerce, and the
rapid technological advancement in mobile devices will lead to a significant increase in online
trade.
Since hypermarkets have de livered online delivery services to consumers, product ranges
have seen significant diversification for some of the most important players, and this is also an
indicator of increasing competitiveness, a trend that will continue to grow the years to come.
Although, besides the many advantages offered by online commerce, the most important
for most consumers is free shipping. Thus, 81% of online consumers want the option of free
shipping for purchased products, 62% of them want to be informed about the estima ted or exact
delivery date and 54% want greater diversity in the available means of payment. According to
According to a study by 2Parale, it seems that Romanians are buying about 3000 lei per hour
(study valid for the first nine months of 2015).
With rega rd to purchasing decisions, it seems that the Internet has become an important
factor, making information much easier. Thus, before buying, consumers turn to the
manufacturer's or supplier's website for information on financial products (63%), telecom and
internet services (51%), auto service and parts (60%) and products "Do it Yourself" type.
Also, other sources of information such as search engines, specialized forums, social
networks, blogs, price comparison sites, promotional sites, etc. can also be use d.
E-commerce is the only economic segment that has managed to record double -digit
growth in the years of crisis, moreover, annual growth of between 20 and 30%. The year 2015
did not make a discordant note of developments in previous years and even brought a new record
level for online commerce in Romania. According to the figures and estimates of the main
players in the Romanian e -commerce together with GPeC, the total value of domestic online
retail rose from 1.1 billion euros in 2014 to over 1.4 billion euros in 2015.
Some companies in the field even think the value is closer to the threshold of 1.5 billion
euros. The figure refers exclusively to physical products marketed online (regardless of their
nature) and not to services, utility bill payments, air tickets, hotel bookings or holidays and
travels, tickets to shows, etc.
GPeC is, for 11 years, the most important e -commerce event in Romania that, among
other things, centralizes data and publishes every year the official report of the Romanian e –
commerc e market. Here are the main statistics for the recent year, according to the report.
Of the 11 million internet users in Romania, 6.7 million made online shopping at least
once.
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Most prefer to still use the desktop when
buying online, but mobile usage has increased
spectacularly in 2015, and the trend is booming
later this year. Thus, in the last months of 2015,
more than 50% of the traffic of major online stores
has been generated by mobile devices.
1.4 million Romanians bought online via a
mobile device and around 850,000 via a mobile
app. Currently, the mobile penetration rate in
Romania is over 100%, with more active sims than
the country's population.
"The Romanian e -commerce market continues to grow from one year to the next, and
figures just publishe d show this. I do not think I'm wrong when I say that the e -commerce
industry is one of the few post -1989 Romania that follows – without backstops – an ascending
curve, "said Andrei Radu, CEO & Founder GPeC, in a statement .
On the other hand, Romanian onli ne shoppers still prefer, in an overwhelming majority of
approx. 90%, to pay the reimbursement (in cash, upon delivery of the products). Although
percentages have increased slightly, only 6 -7% are online card payments and 3 -4% non -cash or
card payments suc h as online banking, micro -pay by sms, etc.
However, according to Visa officials, the number of online transactions paid by Visa
cards to online stores increased by 20 -25% in 2015 compared to 2014. Visa figures also show
that Romanians spend more on online stores abroad than on domestic ones, the value The
average of a transaction being 58 euros for overseas stores and 40 euros for online stores in
Romania.
The number of online stores with constant business activity remained in 2015 at the same
level as 201 4 and approximately 5,000 online stores. According to GPeC research, however,
there are over 20,000 .ro sites that have the "add to cart" function, so theoretically the number of
ecommerce websites is significantly higher.
It is estimated that out of the 5,000 online shops active in the Romanian e -commerce
landscape, about 200 are medium and large businesses, ie they exceed the annual turnover of 1
million euros.
In terms of average basket value, the Electro IT segment declined in 2015 compared to
2014 fro m 800 lei in 2014 to approx. 680 lei in 2015, but the number of transactions has
increased. Children's products remained on a similar line in 2014 as well as in 2015, with an
average transaction value of approx. 210 lei.
Increases in average basket value h ave made the products in the Fashion range from 160
lei in 2014 to 180 lei in 2015, as well as the products from the Home & Deco category from 180
lei in 2014 to 220 lei in 2015, the Romanians spending more on these categorie s.
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What are the obligations of the virtual stores?
A virtual community (online) refers to a system,
possibly based on information technology And
commu nications, composed of entities d istinct interacting,
communicating and working through mechanisms o ffered by
the environment. The concept is important because it defines
a virtual correspondent of a real entity that uses the system,
being a human operator, a software application, a device, etc.
The virtual store is a type of online community and is the virt ual correspondent o f the
real entity that ensures the dissolution of the products and services, as well as the interaction
between the bidder and the client.
The virtual store has seen a rapid development ever since the introduction of the concept
and soon succeeded in penetrating the entire market for goods and services.
Development i n parallel with the enabling technologies s ecuring Internet transactions has
made this type of virtual community more and more popular.
OUG no. 34/2014 sets out obligations as regards the conduct of distance trade. Article 6
of the OUG provides that the professional (the trader who sells on -line) is obliged to inform the
consumer from the outset about the following issues, including the total price paid by him in the
event of a purchase decision: Art. 6 Information requirements for distance and off -premises
contracts .
1. Before a distance or off -premises contract or any similar offer produces binding effects
on the consumer, the professional shall provide the consumer with the f ollowing information in a
clear and comprehensible manner:
(A) the main characteristics of the products or services, having regard to the
communication medium and the products or services in question;
(B) the identity of the professional, such as his trade name;
(C) the postal address to which the professional is established and, if any, his telephone
number, fax number and e -mail address to which he or she can be contacted in order to allow the
consumer to contact the professional And to communicate with h im effectively and, where
appropriate, the postal address and the identity of the professional in whose name he is acting;
D) if it is different from the address provided in accordance with subparagraph (C) the
postal address of the place where the profess ional is active and, where appropriate, the postal
address of the professional in whose name he is acting and to which the consumer may submit
any complaints;
(E) the total price of the goods and services with all taxes included or, if the price can not
be reasonably calculated in advance due to the nature of the goods or services, the method of
calculating the price and, where appropriate, , Delivery, postal or other charges or, if these can
not be reasonably calculated in advance, the indication that such additional costs may be borne
by the consumer, including the period of validity of the offer or of the prices ( …) ".
The economic agents that deal with electronic commerce and which do not comply with
the legislation in force regarding the Consumer Pro tection may be fined by ANPC bodies with
amounts ranging from 1,000 to 5,000 lei.
A virtual store is a viable way to p resen t an electronics company with a m inimum effort.
depending on genre v irtual store to choose, information o ffered may be in the form of text,
images, s ounds, videos, animation, etc. Despite t he potent ial of virtual stores, the most m uch of
the compa nies do not make the most of it b y them.
There are three fundamental objectives that need to be considered when choosing and
creating a virtua l store:
– The virtual store has to answer to a concrete need. He should have a precise purpose
to support the general mission of the company by:
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Lower marketing costs: sending information through a store virtual is much less
expensive than printing and sending them through post or hiring a person to offer
them by telephone;
Faster sharing of information: In a virtual store the information is can update
permanently, much faster than in the case of reprinting its brochurescatalogs;
Features of a virtual store
The first impression is the one that counts
and, therefore, to guarantee success, a v irtual
store must present a few b asic features, without
which it is just a web site, accessed by chance.
These features include:
Design. The simple fact of
having o ne virtual store on the Internet is not a
guarantee of success. a lot of existing virtual
shops do nothing but To remove customers
instead of to them attract because it does not offer
anything useful or because the information is
difficult to obtain. A go od design of a virtual
store emphasizes the identity of the company, it
offers useful information in a convenient way and
encourages further visits.
Clarity. Many virtual stores
confusing because of the opening because it does
not specify what the store refers to. Typically,
virtual stores that create confusion have only the
company name (unless where the company's name is a meaningful word), its logo or a
large graphics that appears when visitors browse. Every main page of a virtual store
would it should be like a showcase for a retail store. It is good for virtual stores to contain
both graphics and text for onegood highlighting of the content.
Simplicity. Organizing the store virtual should be logical and obvious itself. Department
nameslisted in the ho mepage should be descriptive and, if possible, should be evocative
enough for people to want to visit. When products are presented in a catalog and it is
desired to include an item linking to the order form, it is good to use a name relevance.
Rapidity. Ti me is very precious for those who practice surfing on Internet. The virtual
store should deliver the information as quickly as it is unpleasant for the visitor to spend
minutes in front of the computer before charging graphics and text. If used a lot of
graphics, you have to make sure that there is text on each page. In this way, the text will
be loaded faster, and users will have what to look for as they wait to load graphics on the
same page. Graphics that have more than 10K should be avoided, unless they are
absolutely necessary for the presentation.
If large graphics dimensions are needed, it would be advisable to submit smaller versions
of them and then to give visitors the option to view larger versions. Images more small
ones load faster than big ones and the visitor saves time then when the information is
fragmented.
Attractiveness. Text is the method the main expression in a virtual store, but too much
volume of words attracts visitors' boredom. There are plenty of ways to make visiting
virtual store experience unique. It is recommended to use evocative, people -orient ed
words to describe the company, the store, and the departments the use of graphic images
25
small to fragment visual pages and create a mood, using a style and a global store identity
that matches the company identity.
Security. The client has to feel as co mfortable as possible in the store virtual. Ordering
through classic mail is a huge business worldwide, but Internet sales are just a few
percent of these amounts. Buying and selling through networks represents a new and
restless experience for most of the people.
To increase customer comfort in virtual shop, ways to dismantle the myth of insecurity
can be used, offering guarantees that do not take place misunderstandings, explanation of
the ordering process, the image of the company seems tangible, the use of testimonials
from clients.
Case study – E-Mag the most popular virtual store in Romania
Situated on an area of over 15,000 square meters
– three times larger than a football pitch, as high as a
five-storey block, the eMag warehouse seems capable of
accommodating two to three passenger planes. A number
of up to 55 trucks can supply the warehouse at the same
time, although the daily average is 10 -12 and the system
allows eMag employees to download a transport within 20 minutes.
EMAG (SC DANTE INTERN ATIONAL SRL) is one of the most i mportant Dell
partners in Romania in offering online to the segment Market for small and medium -sized
businesses and individual users. The added value of e Mag is both in the bidding mode – including
accepting online payments , which is a very important thing f or many of our custo mers – and in
terms of coverage o f the deliveries of the entire territory of Romania, as well as in providing
some levels service.
EMAG is the leader of the e -commerce market and holds market shares Reaching 20% of
national sales o n certain categories and brands o f first size. The eMAG team has approxi mately
150 employees, organized i n several departments: retail sal es, corporate sales, logistics,
programming, marketing, service, customer service, adm inistration.
Launched in 2001 as a virtual store of PC and retailing components, eMag has diversified
its portfolio in more than a decade and has become a business giant in 185 million in 2013, and
in 2014 it has reached a quarter billion. Growth is fueled by Romanians' traditional appetite for
IT & C products like TVs or tablets, but also by a growing interest in products that require
constant supply, such as pet food or baby nappies.
The eMAG store has more than 1,000,000 on average monthly purchases from existing
promotions. Starting from the marketing concept, it starts from the market, and the mergers will
end for the consumers, the middle being the entire marketing activity, the goal being maximizing
the profit and at the same time, satifying the consu mers. So the objective is to satisfy the clients,
both through the products put on sale and by the services provided by the employees. By
focusing on the development strategy, it is seducing customer loyalty, both because of the
quality of products and ser vices, as well as through promotional programs. EMag will focus its
attention on permanent punishment, the instances in which the Romanian economy is in a state
of uncertainty. EMag seves address all people of all ages, including children, both women and
men, family or unfamiliar, with diversified business activity, with income to the big ones, but
also those with lower incomes. If the check is inconsistent, the necessary adjustments will be
made, either by modifying the necessary strategies or resources, o r by supplementing the number
of people responsible for the action, or by changing the marketing objectives or the volume of
sales expected.
26
EMAG also owns a store in Bucharest and is
also intended for customers willing to buy products
directly from them . Another important feature of
eMAG is the delivery of its products throughout the
country, including in rural areas, with the customer
being able To check the parcel before making a
payment or return if it is unhappy with the product.
EMAG aims to ensure a flow of customers from all
segments of the company. The eMAG network is
supplied by international companies, or even
directly by the producers of electronic and Of the
eMAG products. Thus, eMAG dispenses a very
large warehouse as it permanently covers th e
requirements of potential customers.
In the following two figures we can see the weight of the visitors on E -mag sites, but also
the age categories that visit the site.
Fig. 2.1
Fig. 2.2
Source: www.wikipedia.com
27
Increasing focus on the online environment for various shopping has prompted the
expansion of the eMag deposit surface, and this trend is now leading retailers to look for land for
two more warehouses.
Whether they are PC monitors, tablets, phones, lipsticks or movie DVDs, almost all
goods entering the eMag warehouse are stored on long shelves as a basketball court and ten feet
tall, aligned in parallel on tens of rows. Bulky products, like flatscreens or multifunction printers,
are stored on separate platforms near shelves. The distance between rows is 1.9 meters, less than
the usual 3 -meter standard, to gain more storage space, as Marius Gheorghe, warehouse logistics
manager, explains.
From time to time, a Toyota 1.6 -meter forklift takes place on a row to put or remove a
product on the shelf, having only 15 centimeters on each side. Operations are made without any
excitement for the operator of the machine, thanks to an electric cable that crosses the corridor
from one end to the other and guides the machine.
The warehouse is supplied through three streams, the most spectacular of which is an
automated computer system that detects low commodity stocks and places an order directly at
the vendor. Almost one third of the goods, equivalent to about 6 million, come in
Every month on deposit only based on automated orders, without any intervention from
eMAG staff.
After unloading from the vendor, a network of 24 antennas located in the warehouse
detects by GPS the closest employee of the warehouse that can place the product received in the
appropriate compartment or shelf and sends it to the hand -held PDA. Nearly half of the 160 men,
up to 30 years of age, work with this hand gadget in three shifts for the eMag depot. The number
of people in the warehouse increases to 220 during promotional ti mes, like Black Friday.
The Motorola PDA, worn by approximately 45% of employees, is the key element in
organizing the warehouse. Based on it, it can be found in less than a second from which shelf the
product can be lifted for shipping, in which box it sh ould be placed or if it has already been
shipped. It also records the location of each employee at any time, and the daily route from the
warehouse. According to these data, each employee spends an average of 7 -8 kilometers per day,
equivalent to the dista nce run by a player in a football match.
28
But the most important feature of the gadget is accelerating the delivery process.
Basically, when an order is placed on the eMag site, the computer automatically sends the
request to the warehouse. Here, the software identifies the place or shelf where the ordered
product is stored, searches through the nearest 24 antenna's nearest network employee in the area
and sends it to the PDA. The employee reaches where to pick up the order and checks the
product throu gh a small "mounted" scanner on the index finger, and connected to the PDA to
avoid errors in order identification. Further, he picks up the product from the shelf and places it
in a blue plastic box, about three times larger than the airport check -in tray s, which is also
labeled with a bar code. All sensors that read the box bar code know exactly where to stop the
product.
The box leaves on a 400 -meter -long conveyor belt that moves at a speed of 25 meters per
minute and crosses a series of scanning checks. Then it is taken over by a workbench, the
product is packed and stored in a box, from where it will be taken over by the courier. The
process applies to all products that fit into the blue boxes and can be made in five
minutes. For bulky objects, the deli very process is similar except delivery bands.
About 7,000 such deliveries are processed on a regular day, but the figure may increase
up to five times during promotion periods, such as Black Friday, but the company then
amalgamates extra space.
The logist ics mechanism trains in addition to its 160 employees and a few more
thousands of partner companies, whether couriers, maintenance firms, private firefighters or
cardboard and plastic packaging suppliers.
Beyond the workforce behind the eyes, behind the or ganization of everything eMag
means a team of about 150 Romanian programmers who develop dedicated applications for the
company.
The largest delivery brake remains for the eMag the state of the transport infrastructure.
This problem of Romania, claimed by almost all big players in the economy, from foreign giants
such as Renault or Ford to local firms, hinders the regional ambitions of the retailer.
29
2.5 E-Commerce and its impact on economy
Society of twenty -one century is marked by the existence of the Internet, without which it
is not we could conceive of our existence. Practices such as the writing of the letters to be sent
by post, the state to endless queues in front of some counters for receiving salaries or to pay bills,
travel to travel agents for booking and travel default for their payment, all of them tend to
become obsolete, being facilitated by implementation of electronic surrogates (e -mail, cards,
online reservations, etc.). In the same the line can also include traditional trade, which tends to
be more and more doubled Implicitly substituted by e -commerce, whose trend is rising
worldwide.
It can be defined as the form of
business transactions in which the parties
Interact elect ronically, excluding the reality of
physical exchanges or physical contact direct.
Therefore, any form of sale, purchase,
exchange of products, services or
Information, will be intermediate of the
computer, which ensures the feasibility of the
transaction.
Simultaneous development of
telecommunications and the use of computers
has made explosive growth of the Internet
possible and the creation of specific
technologies that will essentially influence
economic and social activities. Under these
conditions, e -commerce will develop extensively, which will revolutionize business leadership
and boost international trade. Such changes will of fer consumers new possibilities Choosing and
searching for the most competitive products on the world market.
In this context , Internet commerce can be said to be a new domain of knowledge. E –
commerce on the Internet is a mature form of classic e -commerce and is closely related to the
evolution of the Internet and its penetration into society.
In the beginning of the 21st centur y, e-commerce is the most dynamic process of the
world economy and its ascension is compared to that of the automobile, airplane, or electronics
in the 20th century.
E-commerce is the main facilitating factor g lobalization of the world economy by
eliminating distanc es between trading partners and r educing communication time at the end of
business. O n the other hand, globalization t he world economy is the main factor d riving the
development of trade electronic .
The major challenges faced by the sell ers and the buyer which carrying out business
transactions through internet are as follows.
• Private and public corporation is not involved jointly to grow the business of e –
commerce. Private and public joint initiative is needed to develop the ecommerce business. Joint
initiatives bring credibility inside people, which is needed for flourishing the ecommerce
business.
• There is a lack of system security, reliability, standards, and some communication
protocol. Customer loses their money if the website of ecommerce site is hacked. Most common
problem of e -commerce website is not having enough cyber security.
• Financial institutions and intermediaries: Thus far, financial institutions and banks in
developing countries are hesitant to take an active role in promoting e -commerce. However,
merchants need the involvement of banks to broaden the reach and appeal of ecommerce and to
help prevent fraud and potential losses attributable to credit card fraud.
30
But beyond the credit card approach, banks and other f inancial service intermediaries are
challenged to develop alternative modalities for secure and reliable online transactions in
environments where credit cards are not commonplace (Anupam -2011).
• In developing countries there is a culture of buying produ ct by negotiating price with
seller, which is not easily possible in case of e -commerce in developing countries because of
lack of infrastructure facility.
• One of the biggest challenges is the cutting down the price of internet. Authorities are
trying t o keep low the price of bandwidth low. But the high cost of spreading networks and
operating expenses hinder to keep price low for internet.
• Trust is the most important factor for the use of the electronic settlements. Traditional
paper about based rule s and regulations may create uncertainties the validity and legality of e –
commerce transactions. Modern laws adopted and impartiality implemented in the electronic
transactions form the basis of trust in the developed world. Where legal and judicial system s are
not developed ecommerce based transactions are at a disadvantage because of lack of security
whether real or perceived. In many developing countries even today cash on delivery is the most
accepted system, even cheques and credit cards are not readil y accepted (Roni Bhowmik -2012).
• New methods for conducting transactions, new instruments, and new service providers
will require legal definition, recognition, and permission. For example, it will be essential to
define an electronic signature and give it the same legal status as the handwritten signature.
Existing legal definitions and permissions such as the legal definition of a bank and the concept
of a national border —will also ne ed to be rethought .
It’s easier than ever to connect with new custome rs (and generate more revenue!) by
expanding into new international markets —especially through online channels. Indeed, global
B2C e -commerce is on track to hit $2.3 trillion by 2018, with much of that robust growth
occurring in emerging international mark ets.
For e -commerce sites to achieve growth in new markets, they should be published in
local languages. Indeed, nearly 60% of global consumers spend more time on sites in their own
language than they do in English —or boycott English -language websites alto gether.
But companies should recognize several other key challenges when eyeing international
expansion opportunities. Here are a few concerns to consider, and some suggestions to eliminate
these pain points so your company can do what it does best: engage with customers, and sell
them world -class products!
1: Technical Infrastructure
Launching sites in international markets doesn’t always mean those sites should be
hosted by servers in those markets. In many cases, that isn’t possible due to local infrastr ucture
limitations. It’s often unnecessary, too: latency issues are usually uncommon when using robust
solutions that smartly distribute server loads across larger regions (such as Europe).
However, the need for local hosting —or geo -based server load balan cing—can be quite
high in other international markets. Content Delivery Networks (CDNs) and geo -load balanced
servers are often used by companies to improve domestic site speed or reliability, when
delivering their primary -market site content (often in Eng lish) to core customers. However, in
international markets, CDNs have the added benefit of making it easy to “play nice” with a
country’s laws. This often occurs in China.
Finding a solution or turn -key vendor that provides dedicated IT resources and geo -load
balancing, when appropriate, is imperative. Geo -load balancing directs “a client request to the
service node that is [geographically] closest to the client, or to the node with the most capacity,”
writes MotionPoint client Rackspace. “Choosing the clos est service node is done using a variety
of techniques including proactive probing and connection monitoring.”
The result? As Logan Lenz, a Global Online Strategist for MotionPoint’s Global Growth
team, explains: “The system functions at optimum speed, whi ch is great. But there’s also an
ongoing component to this. Observation and care over time can help identify optimizations to
ensure load time is decreased, and site functionality remains intact.”
31
2: Logistics / Geopolitical Status
The Internet and e-commerce have ushered in an era of untold changes in cross -border
conversation, culture and consumption. According to Bongo International, a provider of
international shipping services for businesses, savvy companies that ship overseas can increase
their revenue by an average of 17%.
But in the end, governments and bureaucracies have the final say in the flow of most
cross -border commerce.
Your company will need to “play nice” with international markets’ import regulations,
tariffs, taxes and other nuance s. (This includes shipping prohibited and restricted items, which
vary from country to country.) Your organization must abide by export laws, too; some
governments simply won’t permit companies to legally ship to specific countries.
Further, some internati onal markets are infamous for local corruption, supporting
terrorism, or are in a locale that’s prone to natural disasters. These things and more can threaten
reliable e -commerce transactions and delivery.
There are a few key ways to mitigate these risks.
“Firstly, align your product or industry with the potential threats of an area, and have
solutions for those problems,” Logan says. “For instance, some shipping providers have issues
shipping packages to countries like Pakistan. Others don’t. Choose fulfil lment options that can
accommodate your international expansion needs.”
You can also partner with a vendor already fluent in these marketplaces, and their unique
challenges. They can educate your company on best practices in these markets, viable fulfillme nt
and marketing options —or in some cases, advise you to engage other markets poised to deliver
greater returns at less risk.
3: In-Market Customer Support
Companies keen to expand into international markets shouldn’t forget about the customer
support need s these markets will inevitably have. If your organization provides customer service
via e -mail, inbound phone calls or “contact us” forms, it should deploy localized versions of
these experiences for new consumers, too.
While a localized website with a cu stomer service FAQ (translated into the local market’s
language) will dramatically reduce customer service requests through self -service, your company
will still field calls and e -mails. This often means translating e -mail content, and providing local
phon e numbers for customer service representatives.
4: Relevant Payment Methods
“Without using an all -in-one fulfillment partner,” Logan says, “most payment providers
by market allow for simple adoption into CMS/CRM platforms. Look for partners who can
identif y the proper payment methods for each market. Reputable vendors use tracking alarms
and QA teams to ensure these payment methods are working correctly at all times.”
Indeed, U.S. retailers are very familiar with credit cards and PayPal, but most don’t
unde rstand that those payment types aren’t actually ubiquitous beyond U.S. borders. If these
customers don’t see their preferred payment options, they won’t transact.
Our research absolutely supports this. Logan recalls one client who launched an e –
commerce si te, and accepted only credit card payments for the first few months online. “But
after integrating local payment options, revenue skyrocketed,” Logan says. “Within weeks, a full
third of its site revenue hailed from these local options transactions. Orders were up, too.”
Another client also saw amazing lifts when adopting local payment platforms. Its
conversion rate grew by 217%, the quantity per transaction increased by 33%, and revenue grew
210%.
Wrapping Up – The takeaway is clear: International online re tail is where the action is —
and where it’ll stay. Companies that partner with world -class vendors who have a thorough
understanding of the markets’ cultures, politics and customer expectations can win big, year after
year.
32
CONCLUSION
E-commerce can also be defined as a purchase or sale offer via remote data transmission.
This approach is specific to the expansive marketing policy of commercial companies. Through
the Internet a relationship of services and exchange of goods develops between the bidder and
the future buyer.
In the 1990s, IBM, through an advertising campaign, has also popularized the term
Electronic Business Equivalent. The term "e -business" has been used to define the use of Internet
technologies to improve and transform key processes in a business. As defined by IBM, e –
business is a way of "secure, flexible, and integrated access to business by combining processes
and systems that perform basic business operations with those that make it possible to find
information on the Internet."
For co nsumers, ecommerce is a time consuming and offers a wider variety of options, as
virtual stores can be visited easily and quickly from anywhere in Romania where there is a
computer.
Broadly, e -commerce is an electronic exchange of information between a bus iness and its
customers. This can be done by fax, telephone, voice mail, e -mail, extranet or internet.
In a narrow sense, e -commerce is one of the complex solutions that Internet technology
offers. This means that a multitude of Internet service providers and providers need to work
together in perfect sync to make an ecommerce website work.
E-commerce includes a wide range of technologies such as:
EDI (Electronic Data Interchange);
X.400 messaging;
e-mail;
Internet / WWW;
For some businesses, e -comm erce is any financial operation that uses information
technology. For other companies, the term e -commerce covers the whole network of sales
including marketing and sales. Many people regard ecommerce as any commercially transacted
electronically for buyin g different products such as books, CDs, travel tickets and much more.
Broadly, e -commerce generates a far more profound impact on business evolution and includes
all the activities that support a company's marketing goals, not just new business acquisitio ns.
Due to this expansion, there have also been specific problems requiring solutions – for
example, guaranteeing the protection of consumers' personal data; Securing of concluded
contracts or electronic means; Avoid spam. In response to these issues and i n view of the
integration of Romania into the European Union, Law 365/2002 on electronic commerce was
adopted in our country, which actually introduces the provisions adopted in this field at EU level.
E-commerce activity is governed by a series of laws, g overnment decisions and
regulations such as:
– Electronic Commerce Law no. 365/2002;
– Government Decision no. 1308 of 20/11/2002 regarding the approval of the
methodological norms for the application of Law 365/2002 on electronic commerce;
– Ordinance no. 130/2000 on the protection of consumers when concluding and executing
distance contracts;
– Law No 365/2002 on Electronic Commerce.
Among the general advantages of e -commerce are:
– The Internet, the environment with which electronic commerce is deployed, is
omnipresent, accessible and inexpensive;
– access to e -commerce resources can be achieved through a wide range of technologies
(computers, PDAs, mobile phones, digital television, telephone booths);
– reducing the time needed for shopping;
33
– existing c ard-based payment methods may be used
– there are no geographical limits;
Intermediates can easily be removed from the supply chain;
– stocks are reduced or even eliminated through "just -in-time" production processes.
In the case of e -commerce, there are advantages both for the seller and for the buyer. The
advantages for the seller are as follows:
• the disappearance of geographical sales limits;
• online advertising can reach the target audience more easily;
• the development of new products can be made more easily in accordance with the
requirements of the consumer;
• adapting to change is faster;
• availability of customer information;
• Savings on the sale of the product;
• improving customer relationships;
• reducing errors by automating payment proce sses;
• Operability 24 hours / day, 7 days a week.
For the buyer, e -commerce brings the following benefits:
• reduced access to the product;
• Easier identification of suppliers and business partners;
• Savings savings;
• negotiating prices is easier;
• lower transaction costs by increasing the speed of information transfer;
• online distribution for digital products;
• work at a distance;
• access to products / services in remote areas (example: distance learning).
As critical issues in the development of e-commerce we can mention:
– security;
– using recent payment methods (electronic / digital money);
– adequate telecommunication infrastructure,
– investment costs;
– the legal and normative framework, all the procedures related to the confidentiality of
the consumers' data;
– language and culture issues;
– the difficulty of integrating Internet and e -commerce software with some applications
and databases;
– some ecommerce software products are not adapted to some hardware and operating
systems;
– the impo ssibility of touching the objects, seeing and feeling by the customers;
– Insufficient service support – for example, E -commerce experts or quality evaluators are
rare, copyright centers for e -commerce transactions do not exist;
– Internet access is still expensive for some potential customers;
– the failure to successfully translate products and services online (example: perishable
food, unique jewelry, other products that can not be inspected remotely, regardless of current
technologies);
– the non -profit ability of certain products;
– low credibility;
-the cumbersome integration of databases and traditional transaction processing software
with e -commerce software (these integ ration services may be costly).
Due to the existing e -commerce legislation in Roma nia, it has been boosted substantially
by the rapid increase in the number of electronically supplied services, which has attracted the
attention of both companies and consumers in this field through the high speed of execution Of
transactions but also thr ough their low costs. Electronic transactions have given major incentives
34
to small and medium -sized businesses to use the internet to develop their businesses and have
enabled consumers in Romania to access goods and services they otherwise would not have
access to.
For consumers, ecommerce allows for time reduction, an important factor today, and
offers a wider variety of options, as virtual stores can be visited easily and quickly from
anywhere in Romania where there is a computer. While e -commerce also h as a number of risks
to consumers due to their inability to watch and test the products they purchase, as well as the
various mechanisms put in place to obtain their personal data, including bank information, yet
the benefits to consumers have been improve d by adopting specific legislation in Romania.
According to Web Internet Archive, the first online store in Romania was launched by
PC Net in 1997 and was called CyberShop.ro, s elling music CDs. Soon, take it EShop.ro start,
the first shop that introduces the shoppi ng cart concept – what's right, i n a rudimentary version in
terms of usability.
Meanwhile, he's getting tough in online affairs and other merch ants: Romanian Music
Online and AllOnline.ro, until the first successful shop was launched on September 14, 2000
EMania.ro, followed shortly by Rate.ro and by Magazinul Tau.ro, the latter being launched by to
the Best Computers retailer.
Also during the year 2000, Netbridge Investments starts OKazii.ro, a site of Online
auctions similar to the famous eBay. At the tim e of launch Okazii the level of t he trust of
Romanian Internet users in online trading w as extremely low. "I've created OKazii.ro at a time
when confidence in Internet transactions almost does not ex ist ", s aid in 2006 Emilian Cristea,
Project Ma nager at Netbrid ge Investments, in an interview g ranted to Link 2 eCommerce.
Around 2001, eMag.ro is launching – the biggest ever o nline shop in Romania. We can
say that the start of e -commerce r omanian was held in the 2000s, with the several l arge projects:
eMania,Rate.ro .
EMAG (SC DANTE INTERN ATIONAL SRL) is one of the most i mportant Dell
partners in Romania in offering online to the segment Market for small and medium -sized
businesses and individual users. The added value of e Mag is both in the bi dding mode – including
accepting online payments, which is a very important thing f or many of our custo mers – and in
terms of coverage o f the deliveries of the entire territory of Romania, as well as in providing
some levels service.
EMAG is the leader of t he e-commerce market and holds market shares Reaching 20% of
national sales o n certain categories and brands o f first size. The eMAG team has approxi mately
150 employees, organized i n several departments: retail sal es, corporate sales, logistics,
program ming, marketing, service, customer service, administration.
Launched in 2001 as a virtual store of PC and retailing components, eMag has diversified
its portfolio in more than a decade and has become a business giant in 185 million in 2013, and
in 2014 it has reached a quarter billion. Growth is fueled by Romanians' traditional appetite for
IT & C products like TVs or tablets, but also by a growing interest in products that require
constant supply, such as pet food or baby nappies.
Society of twenty -one cen tury is marked by the existence of the Internet, without which it
is not we could conceive of our existence. Practices such as the writing of the letters to be sent
by post, the state to endless queues in front of some counters for receiving salaries or to pay bills,
travel to travel agents for booking and travel default for their payment, all of them tend to
become obsolete, being facilitated by implementation of electronic surrogates (e -mail, cards,
online reservations, etc.). In the same the line can also include traditional trade, which tends to
be more and more doubled Implicitly substituted by e -commerce, whose trend is rising
worldwide.
E-commerce is the main facilitating factor g lobalization of the world economy by
eliminating distanc es between tr ading partners and r educing communication time at the end of
business. O n the other hand, globalization t he world economy is the main factor d riving the
development of trade electronic .
35
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