Post on 13-Jan-2017
transcript
E-Commerce and Traditional Commerce
PRESENTED BY: SANA BALOCH
What is ecommerce?
E-Commerce (Electronic commerce) is the buying and selling of goods and services or the transmitting of funds or data, over an electronic network, primarily internet
These business tractions occur either B2B B2C C2C
The consumer browses the catalog of products featured on the site and selects items to purchase. The selected items are placed in electronic equivalent of a shopping cart & provides a bill and ship to address for purchase and delivery.
Process of ecommerce
History of Ecommerce
1970E-Commerce meant the facilitation of commercial transactions electronically, using technology such as EDI electronic data interchange and electronic funds transfer allowing businesses to send commercial documents like purchase orders or invoices electronically.
In 1980,s
Growth and acceptance of credit cards ATM Telephone banking Airline reservation system In 1990s, Internet commercialized and users flocked to participate
in the form of dot-com or internet start-ups
In 2000s,
Many European and American business companies offered their services through the world wide web
What is traditional commerce
Traditional commerce refers to practice of selling products and services within a single industry and in some case, within a specific geographical area.
Benefits to organizations
Global reach Cost reduction Supply chain improvement customization
Benefits to consumers
More product and services Cheaper products and services Instant delivery Information availability Participation in auctions
Difference Between E-commerce and Traditional Commerce
Traditional Commerce
Direct interactionTraditional commerce is often based around face to face interaction
o Lower costTraditional commerce is not cheaper than E-Commerce.
ReachIn traditional commerce only you are restricted to people who actually come to your shop.
E-Commerce
Direct interactionEcommerce des not offer this benefit
Lower costEcommerce is more cheaper than maintaining a physical store in an equall popular location.
ReachWide rang of customers we an reach as compare to traditional commerce.
Traditional Commerce
Credit card fraudThe remote nature of Ecommerce makes much more difficult to detect fraud, which means stores can lose money due to fraud
Telephone communication
Ads: printed,radio, t.v
Payment cash,check
customer takes product home
E-Commerce
Credit card fraudWhile there are chance of fraud but can be minimized by physically presence of buyer by checking of ID Cards etc.
E-mail communication
Ads: online, radio, t.v
Payment direct, fund transfer
Delivery home 2-5 days
Traditional Commerce
Research& development high cost
Internet connection is not required
Marketing high cost outlets, wholesalers
E-Commerce
R&D lower cost
Internet connection is required
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