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

Good content, trust