BASIC KNOWLEDGE ABOUT E-COMMERCE (Meaning, Difference between traditional and E-commerce, Types of E-commerce)
Hello Everyone I am back with my new article. Did you know what is E-Commerce, if not then you should read it. Here I have wrote about what is E-Commerce? , what are importance of it in business? How it will help to expand the business and what should be our strategy for expanding businesses globally? I have also differentiate Traditional business with E-Commerce business. There are also some components of E-Commerce which you will find in this Article.
One of the most wonderful happening of 21st century is sale of goods through the use of computer. Through the internet by using comport the businessmen puts his web sites and
all the details of their products and services. The customers will read the mentioned details or description and if he feels that these product or services suits his requirements, then he would place an order through internet for supplying goods and makes payment on internet either debit or credit card, net banking otherwise some customer prefer cash on delivery. The trading through electronic devices called E-commerce. There were certain limitation in traditional commerce like It is a very expensive as owner have to spent lot of money on advertising and sending prospective to their customers. There is also a huge money require in investment and establishment. E-commerce has remove all these limitation, after presenting the website on internet, it is possible to reach million of customers and the expenses for large show rooms, modern furniture, offices with beautiful lighting facilities are not required in E-commerce.
Basically E-commerce is a system on buying and selling of product or services or transmission of data over electronic system such as internet or other computer networks. In E-
commerce ‘E’ stands for Electronic so it is also known as Electronic commerce or internet commerce.
*DIFFERENCE BETWEEN TRADITION COMMERCE AND E-COMMERCE-
- In TC all the business transactions are carried out by humans but in EC transactions are carried over through computer via internet.
- In TC all the work is done by individuals and hence, man is a necessity but in EC work is done on an internet so computer is necessary.
- Business unit has to incur large amount of expenses because so many persons are required and hence a big space is also necessary in TC but in EC there is small amount of expenses incured because the help of less number of person is required and hence a small space is sufficient.
- TC has high transaction cost but EC has very low transaction cost.
- In TC all the work is handled by men so there is more possibilities of error or mistakes being made by them but in EC all the work is haled by computer (machine) so there is less chance of mistakes.
- TC requires more investment because firms have to purchase or hire a very big space but EC requires less investment because they have to purchase or hire small space.
- In TC it is very difficult to carry global business with other countries of the world but in EC global business can be carried on very easily with other countries of the world by using internet media.
- TC involves more expenses of time because every work is handled by men but EC involves less expense of time because every work is handled by computer and electronic device.
- In TC purchasing is limited but in EC purchasing is huge.
- TC has heavy communication charges like postage charges, phone charges and dealing expenses but in EC these charges are cut down.
* TYPES OF E-COMMERCE-
There are mainly four type of business included in E-commerce B2C(Business to Consumer), B2B(Business to Business), C2B(Consumer to Business), C2C(Consumer to Consumer), B2G(Business to Government), G2B(Government to Business), G2C(Government to Consumer)
B2C(Business to Consumer)
In B2C E-commerce the business transaction is carried out via internet between the business firm and the end user who is the consumer. If a consumer has to purchase any item or product, there are available many websites on the internet. For this purpose a consumer has to log in and see the website of different dealers who are the suppliers of the items of his choice. After that a consumer can compare the different items and can select and book the order for a suitabke selection of an article. The dealer can book the order and then collects money through the credit card on getting thge price he send the article to the consumer at his resident. So the consumer can get the article without visiting the store for purchasing. As per statistics, the B2C business activity, amounted Rs.50 crore during the year 2000 and it is expected to increase US$ 250 billion by 2020 in India.
B2B(Business to Business)
When a business transaction is carried out via internet between a manufacturer and a supplier, the E-business is known as B2B. In this the seller and buyer are both the businesses. So it is said that in B2B the customer is another business. B2B play a major role in E-commerce transaction. In B2B type the value of business transaction is high. In India Maruti industries, Tata Motors, Bajaj Auto, Kinetic, Samsung Electronics etc companies accept B2B transactions.
(Consumer to Business)
Monster.com, TimesJobs.com, Priceline.com are the best illustrations of C2B transactions. When customers offer product or services to business is known as C2B. It customer reviews, participation in focus groups. For example Priceline.com allows its client (who are airline travelers) to propose their affordable fare price to travel between two distinct station and based on this data is communicates with air-lines companies and inform the clients to travel by air-line services which accept the affordable fare prices. In this business Priceline.com issues thousand do air tickets of its client and the transactions are increasing day-by-day.
C2C(Consumer to Consumer)
In C2C, the business transactions are between customer and customer. To make the point clear let us take a simple illustration. Suppose a particular customer wants to sell an old refrigerator by hiring a website and requests the interested parties would send their offers and the seller (who is also a customer) scrutinises and selects the highest offer and intimates the buyer about the acceptances of his offer. This transaction is known as C2C. www.quikr.com, www.ebay.in, www.olx.in are some exaples of this E-business.
(Business to Government)
We know that business or companies are required to pay taxes to the governments such as sales-tax, Income-tac, Excise-duties, land-revenues etc. In B2G transactions, the company can the taxes to the government without going to the particular tax-receiving office. This can be done by E-banking process via internet. All the transaction of business or companies with the Government are carried with simplicity under B2G type of business.
G2B and G2C(Government to Business & Government to Consumer)
The services offered by government to the businesses or companies or the transaction of collecting taxes or revenue etc. come under G2B type of business e.g. the government announces the notice for the last date of filng the tax-returns or last date of paying the revenue etc. Thus the government can save the postal expenses and also the labor hours can be saved by this facility. Further the modification in the Act towards the payment schedule of taxes, revenue or stamp duties etc. can be published on the web and the information reaches to the business or companies or relevant consumers.