Ecommerce Advantage of E-commerce

1. UNIT 1 : INTRODUCTION TO ELECTRONIC
COMMERCE
1.1 What is eCommerce?
1.2 Aims of eCommerce
1.3 eCommerce Framework
1.4 eCommerce Consumer Applications
1.5 eCommerce Organizational Applications
1.6 Introduction to mCommerce

2. 1.1 What is E-Commerce?
 commercial transactions conducted
electronically on the Internet.
 E-commerce refers to buying and
selling of products or services over
electronic systems such as Internet
and other computer networks.
 Also known as Ecommerce,
eCommerce or e-com.

3.  It also includes
 Developing
 Marketing
 Selling
 Delivering
 Servicing
 Paying for products and services
E- Commerce transaction must have EDI(Electronic Data
Interchange) and EFT ( Electronic Fund Transfer) as
mediator.

4. 1.2 Aims of E-Commerce?
 Promote and use of computers in modern era.
 To develop business opportunities over the internet.
 To gain profit with customer satisfaction.
 Efficient navigation structure.
 Reduce complaints
 Increase loyalty
 Increase revenue of business.

6. 1.3 E-Commerce Framework

7. E-Commerce Advantages
 Lower Cost
 Economy
 Higher Margin
 Better Consumer Service
 Quick Comparison Shopping
 Information Sharing And Control
 24/7 Potential Income
 Able to Process a High Number of
Orders

8. Disadvantages
 No One Can Buy During a Site Crash
 Security
 System and data Integrity
 E-Commerce is not free
 Some products People cannot buy
 Customers Can’t Try Before They Buy
 No guarantee of product quality

9. 1.4 eCommerce Consumer Applications
 The wide range of applications for the consumer
marketplace can be classified into…
 Entertainment:
 Financial Services and Information:
 Essential Services:
 Educational and Training:

10. 1. Entertainment
 Movies on Demand
 Video Catalog
 Interactive ads
 Multi user Games
 Online Discussion

11. 2. Financial Services and Information
 Home Banking
 Financial Services
 Financial NEWS

12. 3. Essential Services
 Home Shopping
 Electronic Catalogs
 Telemedicine
 Remote Diagnostics

13. 4. Educational And Training
 Interactive Education
 Video Conference
 Online Database

14. 1.5 eCommerce Organizational Applications
 Electronic Fund Transfer (EFT)
 Supply Chain Management (SCM)
 Internet Marketing
 Online Transaction Processing (OLTP)
 Electronic Data Interchange (EDI)

15. 1.6 Introduction to M-Commerce
 commercial transactions conducted
electronically by mobile phone.
 M-commerce (mobile commerce) is the buying
and selling of goods and services through
wireless handheld devices such as cellular
telephone and personal digital assistants (PDAs).
Known as next-generation e-commerce,

16.  It does not require the user to sit at the
computer that is plugged in and
perform the commercial transactions.
Through M-Commerce, people can
perform several functions such as pay
bills, buy and sell goods and
services, access emails, book movie
tickets, make railway reservations,
order books, read and watch the news,
etc.

19. mBanking includes:
 Account Balance
 Transaction History
 Account Details
 PIN Management
 Card Management
 Complaint Management
 Notification/Alert receive from account
activity

20. mPayments includes…
 Wallet management
 Topup of any prepaid phone directly or
via vouchers
 Remote enabled purchase
 Money transfer to known or unknown
consumers
 Bill Payments
 Loan Repayments

21. mRemittance includes…
 Manage a Friends and Family Lists
 Buy a remittance voucher online
 Money transfer from an agent

22. Advantages
 Global reach
 Better data
 Rapid expansion
 Scalability
 Targeted timing

23. Disadvantages
 Competition
 Increased fraud risk
 Privacy concerns
 Less consumer connection

24. Difference between Commerce
and ECommerce
BASIS FOR
COMPARISON
TRADITIONAL COMMERCE E-COMMERCE
Meaning Traditional commerce is a
branch of business which
focuses on the exchange of
products and services, and
includes all those activities
which encourages exchange,
in some way or the other.
e-Commerce means carrying
out commercial transactions
or exchange of information,
electronically on the internet.
Processing of
Transactions
Manual Automatic
Accessibility Limited Time 24×7×365
Physical inspection Goods can be inspected
physically before purchase.
Goods cannot be inspected
physically before purchase.

25. Customer interaction Face-to-face Screen-to-face
Scope of business Limited to particular
area.
Worldwide reach
Information exchange No uniform platform
for exchange of
information.
Provides a uniform
platform for
information exchange.
Resource focus Supply side Demand side
Business Relationship Linear End-to-end
Marketing One way marketing One-to-one marketing
Payment Cash, cheque, credit
card, etc.
Credit card, fund
transfer etc.
Delivery of goods Instantly Takes time
BASIS FOR
COMPARISON
TRADITIONAL
COMMERCE
E-COMMERCE

26. Advantages of E-commerce
 Lower Cost
 Economy
 Higher Margin
 Better customer service
 Quick comparison shopping
 Knowledge Market
 Information sharing and control

27. Disadvantages of E-Commerce
 Security
 System hacking
 Its not free
 System scalability
 Some products customer won’t buy
 System and data integrity