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What is E-commerce?
Services of E-commerce
Difference between Manual Business &
Advantages of Ecommerce
Disadvantages of Ecommerce
Applications of E-commerce
Types of E-Commerce
• E-Commerce is buying and selling of products,
services and information via computer networks
including the internet.
• Electronic commerce is -
Sharing business information,
Maintaining business relationships
Conducting business transactions (financial)
• Electronic commerce is about doing business
What is E-commerce?
E-commerce is the delivery of information, product/services
or payments over tele-communication channels,
computer networks or any other electronic mode of
Business Process Perspective:
E-commerce is the application of technology towards the
automation of business transactions and work flow.
E-commerce is improving the quality of goods/services and
increasing the speed of service delivery.
E-commerce provides the capability of buying and selling
products and information on the internet and other online
3) Shared software
To send and receive product specifications and drawings;
bids, purchase orders and invoices; and any other type of
data that needs to be communicated to customers,
suppliers, employees or the public.
E-commerce is electronic business
1. Electronic Data Interchange (EDI)
2. Technical Data Interchange (TDI)
3. Hypertext Mark- up Language (HTML)
4. Extensible Mark-up Language (XML)
5. Standard for Exchange of Product (STEP)
7. World Wide Web
8. Value-Added Networks.
E-commerce Standards & Technologies
E-commerce includes purchases of goods,
services and other financial transactions.
E-commerce transaction model can be in
1) Business to Business (B2B),
2) Business to Customer (B2C)
3) Customer to Customer (C2C).
Features of E-commerce
• Fast transactions
• Wide market coverage
• Convenient- 24x7
• Cost effective
• Time saving
• High profit margins
• Instant customer relations/response
• No loss of customers
• Better decisions –sales price, sale forecast
• Greater control
Basis Manual business E-business
Meaning It involves the physical exchange of goods
It involves buying and selling of goods
and services of internet
Middlemen It requires the involvement of wholesalers
No requirement of wholesalers or
retailers. There is direct contact
between buyers and sellers.
It is restricted to the working hours only It is not restricted means anytime,
anywhere services. It provides 24
hours service online.
It required lot of time while selecting,
purchasing and payment of goods
It provides quick service through
which customers can get information
in seconds while sitting in home or
Cost It requires retail shop and advertising. Lot
of paper work required
It is cost effective as there is no need
of retail shops. It saves time,
advertising cost and paper work
It has lesser market growth It has more market growth
It provides less choice of product It provides, that is customer can find
products from all over the world, they
can select and place order
It provides lesser services It provides more services such as
financial services, legal services,
medical advice etc.
Advantages of Ecommerce :
1. It helps the business to reach our products or services worldwide.
(Anyone can buy or sell of products from any corner of the world)
2. It helps to find the customers easily to communicate.
3. It reduced cost in terms of paper work; all documents are exchanged
electronically on the net.
4. It provides services such as financial, legal, medical, advice, and
5. It helps the efficient and effective communication between the suppliers
6. Companies can setup a new office or retail department store using e-
commerce website (telecommunication)
7. File transfer and fund transfer is faster using e-commerce.
Disadvantages of Ecommerce :
1. Online business problem (knowledge of computer and
internet is required)
2. Security problem
3. Payment made by credit card
4. Website is needed
5. Physical verification not possible
6. Communication is between over the Internet only by
passing information through email or file transfer.
7. Products & services must be updated in time.
1.Business to business e-commerce (B2B)
2. Business to consumers e-commerce (B2C)
3. Consumers to consumers e-commerce (C2C)
Models or Types of E-commerce
• Business is conducted between two businesses.
• Businesses with customers and suppliers.
• A wholesaler may sell products to the retailer.
• Transaction between organization and partners.
• Includes linkages with enterprises, dealer, warehouse or manufacturer
• One for the vast competitive business over the computer network.
• B2B is selling between companies, wholesalers & retailers.
• It provides the information of suppliers, distributors, dealers, vendors etc.
• B2B is faster and more convenient.
Example: ERP, SCM
Innovative methods of enhancing B2B:
• CD-ROM catalogues - browse offline and order online.
• Shopping malls to introduce users to the easy online ordering options.
• Extranets to link businesses together that conduct regular B2B
Business to Business (B2B)
Advantages of B2B:
• It allows buying selling information and services
• It allows relationship between suppliers and customers
• It increases the business goodwill and competition
• It reduces manpower
• It is faster and more convenient.
Disadvantages of B2B:
• It is expensive in terms of installation of business
• It is mainly used in corporate sector
• Personal attention is required due to 24 hours system working
• It uses EDI and EFT
• E-mail service is used for purchasing goods and services.
• Involves selling of goods/services to consumers or end users
• It allows them to browse the product catalogue, select products or
services and complete the order online.
• It involves an individual and a shop selling goods.
• It refers to selling to an individual person rather than to a company
customer can communicate with enterprise software system.
• B2C does not require large investment by retailers.
Example: amazon.com, rediff
These websites are meant for selling goods directly to consumers
through the internet
Business to Consumers (B2C)
Advantages of B2C:
• Shopping can be faster and more convenient and cheaper.
• It offering new prices and discounts
• Credit card system is used for payment
• Call centers persons integrated with websites
Disadvantages of B2C:
• It is not suitable for small business
• It is difficult to enter into market
• It is price sensitive
• Credit card system used for payment.
• Security guarantee is not maintained
• No quality control.
• Commerce is conducted between two consumers.
• It is the transaction between consumers through some 3rd party
For example: e-Buy Bid or Buy.com, Baazi.com which are auction
sites, one can virtually sell and buy any goods (either used or new
Online auction - in which a consumer posts an item for sale and other
consumers bid to purchase it. The 3rd party generally charges a flat
fee (commission) the business sites are only intermediaries just to
match consumers. They do not have to match to check quality
products and services.
Example of C2C websites: www.ebay.com
Consumer to Consumers (C2C)
Advantages of C2C:
• Business between only the consumers and 3rd party
• It provides services about the business transactions
• It receives commission
Disadvantages of C2C:
• No quality product or services
• No payment guarantee
• Prices of the products may increase at its actual cost.