Electronic Commerce
IT2301 ELECTRONIC COMMERCE
UNIT – 1 INTRODUCTION
Traditional Commerce and E-Commerce:
Traditional Commerce:
Traditional commerce perhaps started before recorded history when our ancestors first decided to specialise their everyday activities. Instead of each family unit having to grow crops, search for food, and make tools, families developed skills in one of these areas and traded some of their production for other needs. It started with bartering, which eventually gave way to the use of currency, making transactions easier to settle. However, the basic mechanisms of trade were the same. Some body created a product or provided a service, which somebody else found valuable, and therefore was willing to 'pay' for it in exchange. Thus, commerce, or doing business, is a negotiated exchange of valuable products or services between at least two parties and includes all activities that each of the parties undertakes to complete the commercial transaction.
Any commercial transaction can be examined from either the buyer's or the seller's viewpoint. These two sides of a commercial transaction are shown in the diagram given below.
(a) Buyer's Side of Traditional Commerce Identify specific buying need
Search for products or services that will satisfy the specific need
Select a vendor
Negotiate a purchase transaction, including delivery, logistics, inspection, testing and acceptance
Receive product/ service and make payment
Perform regular product maintenance and make warranty claims.
(b) Seller's Side of Traditional Commerce
Conduct market research to identify customer needs
Create product or service that will meet customers' needs
Advertise and promote product or service
Negotiate a sale transaction including delivery logistics, inspection, testing, and acceptance
Dispatch goods and invoice customer
Receive and process customer payments
Provide after-sale support, maintenance, and
UNIT – 1 INTRODUCTION
Traditional Commerce and E-Commerce:
Traditional Commerce:
Traditional commerce perhaps started before recorded history when our ancestors first decided to specialise their everyday activities. Instead of each family unit having to grow crops, search for food, and make tools, families developed skills in one of these areas and traded some of their production for other needs. It started with bartering, which eventually gave way to the use of currency, making transactions easier to settle. However, the basic mechanisms of trade were the same. Some body created a product or provided a service, which somebody else found valuable, and therefore was willing to 'pay' for it in exchange. Thus, commerce, or doing business, is a negotiated exchange of valuable products or services between at least two parties and includes all activities that each of the parties undertakes to complete the commercial transaction.
Any commercial transaction can be examined from either the buyer's or the seller's viewpoint. These two sides of a commercial transaction are shown in the diagram given below.
(a) Buyer's Side of Traditional Commerce Identify specific buying need
Search for products or services that will satisfy the specific need
Select a vendor
Negotiate a purchase transaction, including delivery, logistics, inspection, testing and acceptance
Receive product/ service and make payment
Perform regular product maintenance and make warranty claims.
(b) Seller's Side of Traditional Commerce
Conduct market research to identify customer needs
Create product or service that will meet customers' needs
Advertise and promote product or service
Negotiate a sale transaction including delivery logistics, inspection, testing, and acceptance
Dispatch goods and invoice customer
Receive and process customer payments
Provide after-sale support, maintenance, and