Ecommerce
About Course
ECOMMERCE
Ten points to understand the ecommerce and ecommerce business model.
- What is ecommerce ?
- What is the difference between commerce and ecommerce ?
- What is website ?
- How a ecommerce website work ?
- Who is ADMIN in a website ?
- Who is seller/supplier of goods/services ?
- Who is buyer ?
- Registration process for seller.
- Registration process for Delivery driver.
- Different types role in a website.
1. 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 the internet. These business transactions occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer or consumer-to-business.
The terms e-commerce and e-business are often used interchangeably. The term e-tail is also sometimes used in reference to the transactional processes that make up online retail shopping.
In the last two decades, widespread use of e-commerce platforms such as Amazon and eBay has contributed to substantial growth in online retail. In 2011, e-commerce accounted for 5% of total retail sales, according to the U.S. Census Bureau. By 2020, with the start of the COVID-19 pandemic, it had risen to over 16% of retail sales.
How does e-commerce work ?
E-commerce is powered by the internet. Customers access an online store to browse through and place orders for products or services via their own devices.
As the order is placed, the customer’s web browser will communicate back and forth with the server hosting the e-commerce website. Data pertaining to the order will be relayed to a central computer known as the order manager. It will then be forwarded to databases that manage inventory levels; a merchant system that manages payment information, using applications such as PayPal; and a bank computer. Finally, it will circle back to the order manager. This is to make sure that store inventory and customer funds are sufficient for the order to be processed.
After the order is validated, the order manager will notify the store’s web server. It will display a message notifying the customer that their order has been successfully processed. The order manager will then send order data to the warehouse or fulfillment department, letting it know the product or service can be dispatched to the customer. At this point tangible or digital products may be shipped to a customer, or access to a service may be granted.
Platforms that host e-commerce transactions include online marketplaces that sellers sign up for, such as Amazon; software as a service (SaaS) tools that allow customers to “rent” online store infrastructures; or open source tools that companies manage using their in-house developers.
2. What is the difference between Traditional Commerce and Ecommerce ?
1. Traditional Commerce :
Traditional commerce refers to the commercial transactions or exchange of information, buying or selling product/services from person to person without use of internet which is a older method of business style and comes under traditional business. Now a days people are not preferring this as it is time taking and needs physical way of doing business.
Example includes physical market/bazaar.
2. E-commerce :
E-commerce refers to the commercial transactions or exchange of information, buying or selling product/services electronically with the help of internet which is a newer concept of business style and comes under e-business. Now a days people are preferring this as it is less time taking and does not need physical way of doing business everything can be done with laptop or smartphone and internet.
Example includes online shopping sites.
Difference between Traditional Commerce and E-commerce :
| S.No. | TRADITIONAL COMMERCE | E-COMMERCE |
|---|---|---|
| 01. | Traditional commerce refers to the commercial transactions or exchange of information, buying or selling product/services from person to person without use of internet. | E-commerce refers to the commercial transactions or exchange of information, buying or selling product/services electronically with the help of internet. |
| 02. | In traditional commerce it is difficult to establish and maintain standard practices. | In e-commerce it is easy to establish and maintain standard practices. |
| 03. | In traditional commerce direct interaction through seller and buyer is present. | In e-commerce indirect interaction through seller and buyer occurs using electronic medium and internet. |
| 04. | Traditional commerce is carried out by face to face, telephone lines or mail systems. | E-commerce is carried out by internet or other network communication technology. |
| 05. | In traditional commerce processing of transaction is manual. | In e-commerce processing of transaction is automatic. |
| 06. | In traditional commerce delivery of goods is instant. | In e-commerce delivery of goods takes time. |
| 07. | Its accessibility is for limited time in a day. | Its accessibility is 24×7×365 means round the clock. |
| 08. | Traditional commerce is done where digital network is not reachable. | E-commerce is used to save valuable time and money. |
| 09. | Traditional commerce is a older method of business style which comes under traditional business. | E-commerce is a newer concept of business style which comes under e-business. |
| 10. | Its resource focuses on supply side. | Its resource focuses on demand side. |
| 11. | In traditional commerce customers can inspect products physically before purchase. | In e-commerce customers can not inspect products physically before purchase. |
| 12. | Its business scope of business is a limited physical area. | Its business scope is worldwide as it is done through digital medium. |
| 13. | For customer support, information exchange there is no such uniform platform. | For customer support, information exchange there is exists uniform platform. |
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