THE E-COMMERCE AND ITS TRADITIONAL COMMERCE

Q. Define E – commerce. Or, what is meant by E-commerce?

Ans: Electronic commerce: The electronic commerce on briefly e – commerce as a term point for performing business transaction over and electronic medium such as internet.

E – Commerce is defined by the GIIC (Global Information Infrastructure Commission, project of center for strategy and international studies) which broadly desired as:

Any use of electronic networks and technology for commerce and other economic activity. This includes the use o electronic communication as the medium through which goods and services of economic value are designed, produced, advertized, cataloged and inventoried, purchased and accounts settled. Geographic location, abundances of capital or the ownership of retail outlets is irrelevant to this type of transaction. Private and public enterprises, citizens, companies, public institutions and government organization all type of social organization, corporation will be able to freely participate in economic activities over a wide range of sectors including agriculture, forestry and fishery, industry, private and government services. Electronic commerce will allow products to be marked, world – wide, while providing a wide array of options to the consumers.

Q. Describe traditional versus electronic business transactions. Or, Mention the traditional vs. electronic business (at least five points)

Ans: Traditional versus electronic business transactions are given below:

Sales cycle step	Traditional Commerce (Multiple Media Employed)	Electronic Commerce (Single Medium Employed)
1. Acquire product information	Magazines, flyers online catalog	Web pages
2. Request item	Printed forms, letters	e – mail
3. Get order approved Check catalogs, prices	catalog	online catalog
4. Check product availability and confirm price	phone, fax	Web page, e – mail
5. Generate order	printed form	e – mail, web pages
6. Send order; Receive order	fax, mail	e – mail, EDI
7. Prioritize order		online database
8. Check inventory at warehouse	printed form, phone, fax	online database, webpage
9. Schedule delivery	printed form	e – mail, online database
10. Generate invoice	printed form	online database
11. Receive product	shipper	shipper
12. Confirm receipt	printed form	e – mail
13. Send invoice (Supplier); Receive invoice (Buyer)	mail	e – mail, EDI
14. Schedule payment	printed form	EDI, online database
15. Send payment (buyer); Receive payment (supplier)	mail	EDI, EFT