What is the e commerce?

 

before we understand e-commerce let's understand what is commerce commerce is nothing but buying and selling of goods it has been around for many years starting from barter system where there was just exchange of goods to using precious metals to using coins and then paper money and plastic money traditional commerce used to happen face to face so it was limited to particular geographical location there was a personal interaction and delivery of goods was instantaneous it was limited to certain business hours typically during day time with the advent of internet came in e-commerce e-commerce can be defined as the process of buying and selling of goods or services using an electronic medium such as internet example on amazon flipkart olx etc here the sale happens online so you can potentially sell across the world there is limited personal interaction and delivery of goods and services might take some time it is available 24 by 7 and can be done day or night here is a summary of difference between traditional commerce and e-commerce which is popular today e-commerce is also extended to mobile and social media network when we say mobile commerce today you are able to do any transactions from your smartphone or tablet like mobile banking bill payments ticketbooking etc in addition there is rise of social commerce which is use of social media sites like facebook whatsapp to promote and sell products and services there are multiple ways by which you can make payments online you can use credit or debit cards like cards issued by mastercard and visa you can use prepaid cards like gift cards you can also do net banking where if you are enrolled in internet banking you can choose your bank and do direct bank transfer example through neft and ms you can also use e-wallet which is like a prepaid card or it is linked to your bank account which you can use for online transactions example paytm wallet now it is mobile payments using upi is becoming common like google pay beam etc upcoming trends include digital currency like bitcoin or ethereum the advantage of e-commerce is that it is available 24x7 and provides a global

reach sellers and buyers can virtually meet anytime anywhere there is no need for any intermediaries and it provides the user with more options to compare and select cheaper and better option it significantly reduces paperwork and lowers the transaction cost the disadvantage of e-commerce is that there is a lack of personal touch for many type of services it requires an initial setup cost for hardware software and then training and maintenance cost sometimes they are problem with order fulfillment or returns security is also a key concern as there is identity theft malware attack and denial of services primarily e-commerce is of four types first is b2c in this model business sells its products directly to a customer a customer can view the product shown on the website and order the same example amazon or flipkart next is b2b model here business sells its products to an intermediate buyer who then sells the product to the final customer for example a company might sell its product to a wholesaler who will sell it to multiple retailers at some price markup next is c2c model where a consumer sells any of their assets like property cars motorcycle etc by publishing the information on a website where interested consumers can view and do the purchase example buying and selling on olx or quicker or craigslist next is c2b or consumer to business in this model consumers have products or services of value that can be consumed by business for example social media influencers being paid by businesses to advertise their products e-commerce follows a typical trade cycle or flow first is pre-sales it consists of two steps first customer searches different websites for product to be purchased the next step is negotiation where online it is selecting a supplier who offers good quality product at right price and whose terms such as delivery dates etc are agreeable to customer next step is execution first it consists of order phase where customer places an order for the selected product at this phase he might do the payment upfront or he might do the payment after the delivery too in delivery phase the supplier processes the order and then customer receives the delivery of the product then comes settlement this phase consists of invoicing and payment if any invoicing means customer will receive a bill for purchase product along with the delivery after confirmation of received product the customer will pay if he has not paid earlier last step is after sales this phase consists of warranty and after sale service in warranty period customer will get maintenance services for free or at a minimum cost after sales services means in case there are complaints about the product you can get maintenance service from the supplier at individual visit cost or yearly fee so this summarizes the e-commerce concepts

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