E commerce

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