COMMERCE:

Commerce is a division of trade or

production which deals with the
exchange of goods and services
from producer to final consumer
E-COMMERCE:
 It is commonly known as electronic marketing.
 It consist of buying and selling goods and services
over an electronic system such as the internet.
 E-commerce is the purchasing , selling &
exchanging goods and services over computer
network or internet through which transactions or
terms of sale are performed electronically.
E-commerce vs. E-business:

 We use the term e-business to refer primarily to

the digital enablement of transactions and
processes within a firm, involving information
systems under the control of the firm.

 E-commerce include commercial transactions

involving an exchange of value across
organizational boundaries
The process of E-commerce
The process of E-commerce cont..
 A consumer uses Web browser to connect to the home
page of a merchant's Web site on the Internet.
 The consumer browses the catalog of products featured
on the site and selects items to purchase. The selected
items are placed in the electronic equivalent of a
shopping cart.
 When the consumer is ready to complete the purchase of
selected items, she provides a bill-to and ship-to address
for purchase and delivery
The process of E-commerce cont..

 When the credit card number is validated and the

order is completed at the Commerce Server site,
the merchant's site displays a receipt confirming
the customer's purchase.
 The Commerce Server site then forwards the
order to a Processing Network for payment
processing and fulfilment.
 ADVANTAGES OF E-COMMERCE:
 Faster buying/selling procedure, as well as easy to find
products.
 Buying/selling 24/7.
 More reach to customers, there is no theoretical geographic
limitations.
 Low operational costs and better quality of services.
 No need of physical company set-ups.
 Easy to start and manage a business.
 Customers can easily select products from different providers
without moving around physically.
DISADVANTAGES OF E-COMMERCE :
 Unable to examine products personally
 Not everyone is connected to the Internet
 There is the possibility of credit card number
theft
 Mechanical failures can cause unpredictable
effects on the total processes.
SCOPE OF E-COMMERCE:
 Selling can be focused to the global customer
 Pre-sales, subcontracts, supply
 Financing and insurance
 Commercial transactions: ordering, delivery, payment
 Product service and maintenance
 Co-operative product development
 Distributed co-operative working
 Use of public and private services
 Business-to-administrations (e.g. customs, etc.)
 Transport and logistics
 Public procurement
 Automatic trading of digital goods
 Accounting
 Dispute resolution
Features of e commerce:


Non-Cash Payment:
 24x7 Service availability:
 Advertising / Marketing:
 Improved Sales:
 Support:
 Inventory Management:
 Communication improvement
Non-Cash Payment:
E-Commerce enables use of credit cards, debit cards, smart cards, electronic fund
transfer via bank's website and other modes of electronics payment.

24x7 Service availability

E-commerce automates business of enterprises and services provided by them to
customers are available anytime, anywhere. Here 24x7 refers to 24 hours of each seven
days of a week.

Advertising / Marketing:
E-commerce increases the reach of advertising of products and services of businesses. It
helps in better marketing management of products / services.

Improved Sales:
Using E-Commerce, orders for the products can be generated any time, any where
without any human intervention. By this way, dependencies to buy a product reduce at
large and sales increases.

Support:
E-Commerce provides various ways to provide pre sales and post sales assistance to
provide better services to customers.
Inventory Management:
Using E-Commerce, inventory management of products becomes automated. Reports get
generated instantly when required. Product inventory management becomes very efficient
and easy to maintain.

Communication improvement:
E-Commerce provides ways for faster, efficient, reliable communication with customers and
partners.
Traditional Commerce v/s E-Commerce

Traditional Commerce E-Commerce

 Heavy dependency on  Information sharing is made
information exchange from easy via electronic
person to person. communication channels
 Communication/ transaction making little dependency on
are done in synchronous way. person to person information
Manual intervention is required exchange.
for each Communication or  Communication or transaction
transaction. can be done in asynchronous
way. Electronics system
automatically handles when to
pass communication to
required person or do the
transactions.
Traditional Commerce v/s E-Commerce

Traditional Commerce E-Commerce

 It is difficult to establish and  A uniform strategy can be easily
maintain standard practices in established and maintain in e-
traditional commerce commerce
 Communications of business depends  In e-Commerce or Electronic Market,
upon individual skills. there is no human intervention.
 Unavailability of a uniform platform  E-Commerce website provides user a
as traditional commerce depends platform where al l information is
heavily on personal communication. available at one place.
 No uniform platform for information  E-Commerce provides a universal
sharing as it depends heavily on platform to support commercial /
personal communication. business activities across the g lobe.
Types of e commerce
 Business - to - Business (B2B)
 Business - to - Consumer (B2C)
 Consumer - to - Consumer (C2C)
 Consumer - to - Business (C2B)
Business - to - Business (B2B)
 Website following B2B business model sells its
product to an intermediate buyer who then sells
the product to the final customer.
 As an example, a wholesaler places an order from
a company's website and after receiving the
consignment, sells the end product to final
customer who comes to buy the product at
wholesaler's retail outlet. Business-to-Business
B2B
Business - to - Consumer (B2C)

 Common notion about e-commerce is that it is a

business selling something through an online
interface to a consumer. And this is the Business-
to-Consumer (B2C) model. The most widely known
ecommerce businesses, such as Flip kart, Amazon,
etc. are ones where a retailer sells directly to a
consumer.
B2C
Consumer - to - Consumer (C2C)

 theecommerce website serves to facilitate the

transaction between two consumers. Auction sites
such as eBay (specifically when items are sold by
individuals, rather than businesses listing products
for auction) is a classic example of C2C e-
commerce model. Consumer-to-Consumer (C2C)
C2C
Consumer - to - Business (C2B)

 In a consumer-to-business (C2B) model,

consumers sell products and services to
businesses, instead of it being the other way
around. Example - Freelancer websites
elance.com, where the end-user lists jobs that
businesses (either individual or larger businesses)
can buy from them. In a way, job portals are also
C2B as here, the ‘end-user’ (the prospective
employee) lists their ‘product’ (resume) to attract
businesses to hire them
C2B
SUPPLY CHAINS:
 The flow of material, information, money, and services
from raw material suppliers through factories and
warehouse to end customer What is Supply Chain
Warehouse Factory End Customer Supplier Distribution.
 Electronic supply chain management is most commonly
referred to as e-supply chain management. It combines
the concepts of electronic business (e-business) and
supply chain management (SCM), and depicts how trade
channel members are working together to optimize
resources and opportunities
SUPPLY CHAINS
Benefits of supply chain in e commerce

 Order taking
 Order fulfilment
 Electronic payment
 Electronic payment
 Managing risk
 Inventories can be minimised
 Collaborative commerce
Porter’s value chain model
 A value chain is a set of activities that a firm operating in a specific industry performs in
order to deliver a valuable product or service for the market.
 It is a set of activities that an organization carries out to create value for its customers.
 The concept comes from business management and was first described and popularized
by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining
Superior Performance.
 The idea of the value chain is based on the process view of organizations, the idea of
seeing a manufacturing (or service) organization as a system, made up of subsystems each
with inputs, transformation processes and outputs.
 Inputs, transformation processes, and outputs involve the acquisition and consumption of
resources – money, labor, materials, equipment, buildings, land, administration and
management.
 How value chain activities are carried out determines costs and affects profits.
Porter’s value chain model cont..
 Primary Activities Primary activities relate directly to the physical creation, sale,
maintenance and support of a product or service. They consist of the following:
1) Inbound logistics – These are all the processes related to receiving, storing, and
distributing inputs internally. Your supplier relationships are a key factor in creating
value here.
2) Operations – These are the transformation activities that change inputs into outputs
that are sold to customers. Here, your operational systems create value. 3) Outbound
logistics – These activities deliver your product or service to your customer. These are
things like collection, storage, and distribution systems, and they may be internal or
external to your organization.
4) Marketing and sales – These are the processes you use to persuade clients to purchase
from you instead of your competitors. The benefits you offer, and how well you
communicate them, are sources of value here.
5) Service – These are the activities related to maintaining the value of your product or
service to your customers, once it's been purchased.
 Support Activities These activities support the primary functions above. In our diagram, the
dotted lines show that each support, or secondary, activity can play a role in each primary
activity. For example, procurement supports operations with certain activities, but it also
supports marketing and sales with other activities.
1) Procurement (purchasing) – This is what the organization does to get the resources it
needs to operate. This includes finding vendors and negotiating best prices.
2) Human resource management – This is how well a company recruits, hires, trains,
motivates, rewards, and retains its workers. People are a significant source of value, so
businesses can create a clear advantage with good HR practices.
3) Technological development – These activities relate to managing and processing
information, as well as protecting a company's knowledge base. Minimizing information
technology costs, staying current with technological advances, and maintaining technical
excellence are sources of value creation.
4) Infrastructure – These are a company's support systems, and the functions that allow it to
maintain daily operations. Accounting, legal, administrative, and general management are
examples of necessary infrastructure that businesses can use to their advantage.
Competitive advantages
Competitive strategy refers to how a company competes in a particular
business overall strategy for diversified firms is referred to as corporate
strategy competitive strategy is concerned with how a company can gain a
competitive advantage through a distinctive way of competing

porter’s model:
1.Threat of new entrants
2.Threat of substitution
3.Bargaining power of buyers
4.Bargaining power of supplier
5.Competition between existing player
Business strategy :
A business strategy is a set of plans for achieving superior long term return
on the capital invested in a business firm it is therefore a plan for making
profits in a competitive environment over the long term
E commerce implementation:
Technical implementation
Business implementation

E commerce evaluation:
1. Improve it
2. Revise it
3. Update it