Submitted By:Jayant Ahrodiya

MCA II Year

Submitted To :Ms. Indu Sharma

HOD,CSECPTC-Rajsamand

CONTENT

• What is E-Commerce

• Difference Between Traditional commerce and E-commerce

• Advantages of E-commerce

• Disadvantages of E-commerce

• Traditional Commerce

• Advantages of Traditional Commerce

• Disadvantages of Traditional Commerce

WHAT IS E-COMMERCE

E-commerce is buying and selling goods and services over the Internet.

Ecommerce is part of e-business.

E-business is a structure that includes not only those transactions that center on buying and selling goods and services to generate revenue, but also those transactions that support revenue generation.

These activities include generating demand for goods and services, offering sales support and customer service, or facilitating communications between business partners.

Electronic commerce (e-commerce, or EC) describes the buying, selling, and exchanging of products, services, and information via computer networks, primarily the Internet.

Some people view the term commerce as describing transactions conducted between business partners. To them, the term e-commerce seems fairly narrow, so many use the term e-business (electronic business) instead.

It refers to a broad definition of EC, not just buying and selling, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization.

According to Lou Gerstner, IBM’s CEO, “e-business is all about time cycle, speed, globalization, enhanced productivity, reaching new customers, and sharing knowledge across institutions for competitive advantage.” In this book we use the term e-commerce in its broadest scope, as basically equivalent to e-business

DIFFERENCES BETWEEN E-COMMERCE AND TRADITIONAL COMMERCE

Traditional Commerce:- Face-to-face, telephone lines ,

or mail systems Manual processing of

traditional business transactions

Individual involved in all stages of business transactions

Heavy dependency on information exchange from person to person.

E-Commerce:- Using Internet or other network

communication technology Automated processing of

business transactions Individual involved in all stages

of transactions Pulls together all activities of

business transactions, marketing and advertising as well as service and customer support

Communication/ transaction are done in synchronous way. Manual intervention is required for each communication or transaction.

It is difficult to establish and maintain standard practices in traditional commerce.

Communications of business depends upon individual skills.

Unavailability of a uniform platform as traditional commerce depends heavily on personal communication.

No uniform platform for information sharing as it depends heavily on personal communication.

Information sharing is made easy via electronic communication channels making little dependency on person to person information exchange.

A uniform strategy can be easily established and maintain in e-commerce.

In e-Commerce or Electronic Market, there is no human intervention.

E-Commerce website provides user a platform where al l information is available at one place.

E-Commerce provides a universal platform to support commercial / business activities across the globe.

Fig: Difference Between E-Commerce & Traditional Commerce

ADVANTAGES

E-Commerce advantages is classified in three categories :-

1.Business

2.Marketing

3.Customer

Business Advantages:- Reduced costs to buyers from increased competition on-line Reduced costs to suppliers by on-line auction Reduced errors, time, and overhead costs information processing Reduced inventories, and warehouse Increased access to real-time inventory information, speed-up ordering &

purchasing processing time Automated business processing Cost-effective document transfer Reduced time to complete business transactions, speed-up the delivery time Reduced business overhead and enhance business management

Marketing Advantages :- Improved market analysis, product analysis and customer

analysis. Low-cost advertising Easy to create and maintain customer o client database.

Customer Advantages :- Wide-scale information dissemination Wide selection of good products and goods at the low price Rapid inter-personal communications and information accesses Wider access to assistance and to advice from experts and peers. Save shopping time and money Fast services and delivery

DISADVANTAGES

E-Commerce disadvantages is classified in two categories

1. Technical disadvantages

2. Non-Technical disadvantages

TECHNICAL DISADVANTAGES There can be lack of system security, reliability or standards owing to

poor implementation of e-Commerce. Software development industry is still evolving and keeps changing

rapidly. In many countries, network bandwidth might cause an issue as there

is insufficient telecommunication bandwidth available. Special types of web server or other software might be required by the

vendor setting the e-commerce environment apart from network servers.

Sometimes, it becomes difficult to integrate E-Commerce software or website with the existing application or databases.

There could be software/hardware compatibility issue as some E-Commerce software may be incompatible with some operating system or any other component.

NON-TECHNICAL DISADVANTAGES:- Initial cost: -The cost of creating / building E-Commerce application

in-house may be very high. There could be delay in launching the E-Commerce application due to mistakes, lack of experience.

User resistance: -User may not trust the site being unknown faceless seller. Such mistrust makes it difficult to make user switch from physical stores to online/virtual stores.

Security / Privacy: -Difficult to ensure security or privacy on online transactions.

Lack of touch or feel of products during online shopping.

E-Commerce applications are still evolving and changing rapidly.

Internet access is still not cheaper and is inconvenient to use for many potential customers like one living in remote villages.

TRADITIONAL SELLING/COMMERCE

• Traditional selling/commerce has been around from a long time and is still being used to buy products although there are advantages and disadvantages to it.

ADVANTAGES OF TRADITIONAL COMMERCE

Consumers can test the product before purchase.It helps a person feel better about the environment they are in. (That is if it is in a shop)

The owner cannot lose money since there are no hackers and scammers in the real world.

People without internet can visit stores for items.

Rip-off merchants can be caught easier than scammers

DISADVANTAGES OF TRADITIONAL COMMERCE

Consumers have to travel a certain distance for the product.Not all store and businesses have the exact item for the customer.

It costs money to build the physical atmosphereThere is limited time of when the store is opened and shut.

E-COMMERCE(_TODAYS NEED_)Thanks for watching

-by Ahrodia Jayant [AJ]