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E-Commerce
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E-Commerce
Presented by:-Toshi PatelM.Tech(2nd sem, SE)SRMSCET, Bareilly
Outline
Introduction to Commerce What is E-Commerce Process of E-Commerce Scope of E-Commerce Why use E-Commerce History of E-Commerce Types of E-Commerce Advantages Disadvantages Applications
Introduction to Commerce
Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer
Commerce is the whole system of the economy that constitutes an environment for business
What is E-Commerce
Commonly known as Electronic Marketing It consist of buying and selling goods and
services over an electronic systems Such as the internet and other computer networks
E-commerce is the purchasing, selling and exchanging goods and services over computer networks (internet) through which transaction or terms of sale are performed Electronically
Process of E-Commerce
Scope of E-Commerce
Electronic commerce encompasses one or more of the following:
EDI EDI on the internet E-mail on the internet Shopping on the world wide web Product sales and services on the web Electronics banking or funds transfer
Why use E-Commerce
Low entry cost Reduces Transaction costs Access to the global market Secure market share
History of E-Commerce
1970s: Electronic Funds Transfer (EFT) Used by the banking industry to exchange
account information over secured networks Late 1970s and early 1980s: Electronic Data
Interchange (EDI) for e-commerce within companies Used by businesses to transmit data from
one business to another
1990s: the World Wide Web on the Internet provides easy-to-use technology for information publishing and dissemination Cheaper to do business (economies of scale) Enable diverse business activities
(economies of scope)
Types of E-Commerce
Business to Consumer Business to Business Consumer to Consumer Consumer to Business Business to Government Government to Business Government to Citizen Mobile Commerce
Business to Consumer (B2C)
B2C is the direct trade between the company and consumers. It provides direct selling through online
For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from supplier’s website i.e amazon.com
Business to Business (B2B) It describes commerce transactions between
businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer
Example: supply chain management The overall volume of B2B transactions is
much higher than B2C transactions
Business to Employees (B2E)
It uses Intrabusiness network To automate employee related corporate
processesExample: Online insurance policy management Online supply requests
Consumer to Consumer (C2C)
Concern the consumers who run negotiations with other consumers sometimes utilizing as intermediary a company
Eg. Online auction Ebay and autotrader.com are the company which
comes under the C2C
Business to Government (B2G)
B2G is derived from B2B marketing Public sector marketing Provide a platform to Businesses to bid on
government opportunities It included E-procurement services
Mobile Commerce
Concern doing businesses by means of mobile wireless devices
Can be both B2B and B2C Have a growing importance in the future of e-
commerce applications Will introduce completely new forms of
electronic commerce E.g. E-tickets
The development of such applications faces some of the greatest challenges in the security area to secure the trust of consumers
Advantages of E-Commerce
Faster buying/selling procedure, as well as easy to find products
Buying/selling 24/7 More reach to customers, there is no
theoretical geographic limitations Low operational costs and better quality of
services No need of physical company set-ups Easy to start and manage a business Customers can easily select products from
different providers without moving around physically
Disadvantages
Unable to examine products personally
Not everyone is connected to the Internet
There is the possibility of credit card number theft
Mechanical failures can cause unpredictable
effects on the total processes
Applications of E-Commerce
Supply chain management Video-on-Demand Procurement and Purchasing On-line Marketing and Advertising Home shopping