E-COMMERECE V/S TRADITIONAL COMMERCE

DIFFERENCE BETWEEN E-COMMERCE AND TRADITIONAL COMMERECE

1. E-Commerce and Traditional Commerce PRESENTED BY: SANA BALOCH

2. What is ecommerce? E-Commerce (Electronic commerce) is the buying and selling of goods and services or the transmitting of funds or data, over an electronic network, primarily internet These business tractions occur either B2B B2C C2C

3. The consumer browses the catalog of products featured on the site and selects items to purchase. The selected items are placed in electronic equivalent of a shopping cart & provides a bill and ship to address for purchase and delivery. Process of ecommerce

4. History of Ecommerce 1970 E-Commerce meant the facilitation of commercial transactions electronically, using technology such as EDI electronic data interchange and electronic funds transfer allowing businesses to send commercial documents like purchase orders or invoices electronically.

5. In 1980,s Growth and acceptance of credit cards ATM Telephone banking Airline reservation system In 1990s, Internet commercialized and users flocked to participate in the form of dot-com or internet start-ups

6. In 2000s, Many European and American business companies offered their services through the world wide web

7. What is traditional commerce Traditional commerce refers to practice of selling products and services within a single industry and in some case, within a specific geographical area.

8. Benefits to organizations Global reach Cost reduction Supply chain improvement customization

9. Benefits to consumers More product and services Cheaper products and services Instant delivery Information availability Participation in auctions

10. Difference Between E-commerce and Traditional Commerce Traditional Commerce Direct interaction Traditional commerce is often based around face to face interaction Lower cost Traditional commerce is not cheaper than E-Commerce. Reach In traditional commerce only you are restricted to people who actually come to your shop. E-Commerce Direct interaction Ecommerce des not offer this benefit Lower cost Ecommerce is more cheaper than maintaining a physical store in an equall popular location . Reach Wide rang of customers we an reach as compare to traditional commerce.

11. Traditional Commerce Credit card fraud The remote nature of Ecommerce makes much more difficult to detect fraud, which means stores can lose money due to fraud Telephone communication Ads: printed,radio , t.v Payment cash,check customer takes product home E-Commerce Credit card fraud While there are chance of fraud but can be minimized by physically presence of buyer by checking of ID Cards etc. E-mail communication Ads: online, radio, t.v Payment direct, fund transfer Delivery home 2-5 days

12. Traditional Commerce Research& development high cost Internet connection is not required Marketing high cost outlets, wholesalers E-Commerce R&D lower cost Internet connection is required Good content, trust