Traditional Commerce The exchange or buying and selling of commodities. Commerce is a division of trade or production which deals with the exchange of.

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Presentation transcript:

Traditional Commerce The exchange or buying and selling of commodities. Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer. It comprises the trading of something of economic value such as goods, services, information, or money between two or more entities.

What is E-Commerce Electronic Commerce(E-Commerce) is a general term for any type of business, or commercial transaction that involves the transfer of information across the Internet. This covers a range of different types of businesses from consumer-based retail site, like Amazon.com, Music sites like eBay or MP3.com, to business exchanges trading goods or services between corporations.

FEATURES Electronic commerce is the use of electronic communication to do business. E-Commerce is not about technology It is not a new business. E-Commerce is a method for companies to create and operate their business in new and efficient ways. Most fundamentally, e-commerce represents the realization of digital, as opposed to paper-based, commercial transactions between businesses, between a business and its consumers, or between a government and its citizens.

FEATURES In Summary, e-commerce is the use of electronic communication to do business Specifically, the transfer of information(transactions), over the Internet.

E- BUSINESS Electronic business (e-business) Term used interchangeably with e-commerce The transformation of key business processes through the use of Internet technologies

Five general e-commerce categories Business-to-consumer Business-to-business Business processes Consumer-to-consumer Business-to-government

Benefits of E-Commerce  INFORMATION TECHNOLOGY INFRASTRUCTURE: Information flows seamlessly throughout DIRECT COMMUNICATION BETWEEN TRADING PARTNERS: Disintermediation removes intermediate layers streamlines process vendors can provide information 24 hours a day Can extend distribution channels Can reduce transaction costs REDUCES INFORMATION ASYMMETRY: Asymmetry exists when one party has more information than other INCREASES RICHNESS: Depth & detail of information

Benefits of E-Commerce INCREASES REACH: Number of people contacted VIRTUAL STOREFRONT: Sells goods, services on-line MARKETPLACE CONCENTRATOR: Concentrates information from several providers ON-LINE EXCHANGE: Bid-ask system, multiple buyers, sellers