COMMERCE
3 MEANINGS
exchange of goods or services among two more more parties
Began when prehistoric humans started exchanging goods and services for mutual benefit (bartering)
Subset of business that focuses on the distribution of goods
Selling a single item is a _____ All transactions are collectively called _______
transaction
commerce
COMMERCE VS. BUSINESS VS. TRADE
Business- any endeavor undertaken for the purpose of making a profit
Commerce
refers specifically to the exchange of products and services between two or more parties
Trade
final transaction in which a seller provides a finish product and consumer pays for it
E-COMMERCE
3 MEANINGS
Commonly known as electronic marketing
Consist of buying and selling goods and services over an electronic systems such as the internet and other computer networks
Is the purchasing, selling and exchanging goods and services over computer networks (internet) through which transaction or terms of sale are performed electronically
PROCESS OF E-COMMERCE
- A consumer uses web browser to connect to the homepage of merchant’s website 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
- 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 fulfillment
PROCESS OF E-COMMERCE
(ILLUSTRATION)
- Order placed by user
- Shopping Cart
- Credit card is charged
- Order is completed
- Email is sent to Customer and merchant
- Sent to Warehouse for fulfillment
- Shipping carrier picks up shipment
- Shipment sent to customer
ADVANTAGES OF E-COMMERCE (7)
Faster buying/selling procedure, as well as easy to finds products
Buying selling 24/7
More reach to customers, there is no theoretical geographic limitations
Low operational cost 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 a possibility of credit card number theft
Mechanical failures can cause unpredictable effects on the total processes
