What is eCommerce?

Summary

This video explores e-commerce, contrasting it with traditional commerce. E-commerce, enabled by the internet, allows global buying and selling with minimal personal interaction and 24/7 availability. It extends to mobile and social media, offering various payment methods like cards, net banking, e-wallets, and UPI. Despite advantages like global reach and reduced transaction costs, it faces challenges like security concerns and lack of personal touch. The video outlines e-commerce types: B2C, B2B, C2C, and C2B, and the typical trade cycle involving pre-sales, execution, settlement, and after-sales service.

Takeaways

• 😀 Commerce involves the buying and selling of goods and has evolved from barter systems to modern payment methods.
• 🛒 Traditional commerce is face-to-face, limited by geography and business hours, while e-commerce operates online, 24/7, globally.
• 🌐 E-commerce platforms like Amazon, Flipkart, and OLX facilitate online sales with minimal personal interaction and delayed product delivery.
• 📱 Mobile commerce and social commerce are extensions of e-commerce, allowing transactions and promotions via smartphones and social media.
• 💳 Online payments can be made through various methods including credit/debit cards, prepaid cards, net banking, e-wallets, and mobile payments like UPI.
• ⚖️ E-commerce offers advantages such as global reach, 24/7 availability, no intermediaries, and reduced transaction costs, but also presents challenges like security concerns and initial setup costs.
• 🔐 Security in e-commerce is crucial to protect against identity theft, malware attacks, and denial of service.
• 🏢 There are four main types of e-commerce: B2C (business to customer), B2B (business to business), C2C (customer to customer), and C2B (customer to business).
• 🔄 The e-commerce trade cycle includes pre-sales (search and negotiation), execution (order and delivery), settlement (invoicing and payment), and after-sales (warranty and service).
• 📈 Emerging trends in e-commerce include the use of digital currencies like Bitcoin and Ethereum.

Q & A

What is the definition of commerce according to the video?

Commerce is defined as the buying and selling of goods. It has evolved over the years from barter systems to the use of various forms of money.

How did traditional commerce differ from e-commerce in terms of personal interaction and delivery?

Traditional commerce involved face-to-face interactions and instantaneous delivery of goods, limited by geographical location and business hours, typically during daytime.

What is e-commerce and how does it differ from traditional commerce?

E-commerce is the process of buying and selling goods or services using an electronic medium like the internet. It allows for global reach, limited personal interaction, and delivery of goods and services may take some time. It is available 24/7.

What are the examples of e-commerce platforms mentioned in the video?

Examples of e-commerce platforms mentioned include Amazon, Flipkart, and OLX.

How has e-commerce extended beyond just online platforms?

E-commerce has extended to mobile commerce and social media networks, allowing transactions through smartphones, tablets, and social media sites.

What are the various payment methods available in e-commerce?

Payment methods in e-commerce include credit or debit cards, prepaid cards, net banking, e-wallets, and mobile payments using UPI.

What are the advantages of e-commerce mentioned in the video?

Advantages of e-commerce include 24/7 availability, global reach, no need for intermediaries, more options for consumers, reduced paperwork, and lower transaction costs.

What are the disadvantages of e-commerce as outlined in the video?

Disadvantages of e-commerce include lack of personal touch, initial setup costs for hardware and software, issues with order fulfillment or returns, and security concerns like identity theft and malware attacks.

What are the four types of e-commerce models discussed in the video?

The four types of e-commerce models are B2C (Business to Consumer), B2B (Business to Business), C2C (Consumer to Consumer), and C2B (Consumer to Business).

Can you describe the typical trade cycle or flow of e-commerce as mentioned in the video?

The typical e-commerce trade cycle includes pre-sales (customer search and negotiation), execution (order and delivery), settlement (invoicing and payment), and after-sales (warranty and after-sale service).

What are the upcoming trends in e-commerce mentioned in the video?

Upcoming trends in e-commerce include the use of digital currencies like Bitcoin or Ethereum.

Outlines

00:00

🛒 Introduction to E-commerce and Commerce

This paragraph introduces the concept of e-commerce by first explaining traditional commerce, which involves the buying and selling of goods. It traces the evolution from bartering to using various forms of currency and notes the shift to e-commerce with the advent of the internet. E-commerce is defined as transactions conducted online, allowing for global reach and 24/7 availability. Examples such as Amazon, Flipkart, and OLX are given. The paragraph also discusses the extension of e-commerce to mobile and social media platforms, and various online payment methods like credit/debit cards, prepaid cards, net banking, e-wallets, and mobile payments via UPI. It contrasts e-commerce with traditional commerce, highlighting the advantages of global reach, 24/7 operation, and reduced transaction costs, as well as the disadvantages such as the lack of personal touch, initial setup costs, order fulfillment issues, and security concerns. The paragraph concludes by outlining the four types of e-commerce: B2C, B2B, C2C, and C2B.

05:01

🔄 E-commerce Trade Cycle

The second paragraph delves into the e-commerce trade cycle, detailing the steps from pre-sales to after-sales. Pre-sales involve customer search and negotiation with suppliers. The execution phase includes order placement and delivery of products, with payment occurring either upfront or post-delivery. Settlement involves invoicing and payment processing. The after-sales phase covers warranty and after-sale services, providing maintenance either for free or at a minimal cost during the warranty period. It also addresses customer complaints and the provision of maintenance services by suppliers. The paragraph summarizes the e-commerce concepts and invites viewers to like and subscribe to the channel for more content.

Keywords

💡E-commerce

E-commerce refers to the buying and selling of goods or services using the internet and other electronic systems. It is a central theme of the video, which distinguishes it from traditional commerce by allowing transactions to occur online, globally, and around the clock. Examples given in the script include platforms like Amazon, Flipkart, and OLX.

💡Commerce

Commerce is defined as the activity of buying and selling goods. The video script discusses its evolution from bartering to using various forms of currency, emphasizing its transition to e-commerce with the advent of the internet.

💡Barter System

The barter system is an ancient form of commerce where goods are directly exchanged without using money. It is mentioned in the script as the starting point of commerce, highlighting the historical context of trade before the development of currencies and e-commerce.

💡Mobile Commerce

Mobile commerce, or m-commerce, is the conduct of financial transactions through mobile devices like smartphones and tablets. The script mentions it as an extension of e-commerce, enabling activities like mobile banking and bill payments.

💡Social Commerce

Social commerce involves the use of social media platforms to promote and sell products and services. The video script includes it as a rising trend within e-commerce, utilizing sites like Facebook and WhatsApp for commercial purposes.

💡Payment Methods

The script outlines various online payment methods, including credit/debit cards, prepaid cards, net banking, e-wallets, and mobile payments. These methods are crucial for facilitating transactions in e-commerce environments.

💡Digital Currency

Digital currency, such as Bitcoin or Ethereum, is a form of electronic money based on cryptography. The video script points to digital currencies as an upcoming trend in e-commerce, indicating a shift towards more diverse and secure payment options.

💡B2C

B2C stands for Business-to-Consumer, a model where businesses sell directly to end consumers. The script uses Amazon and Flipkart as examples, illustrating how B2C e-commerce operates.

💡B2B

B2B, or Business-to-Business, is a model where one business sells to another, who then sells to the end consumer. The script explains this through the example of a company selling products to a wholesaler.

💡C2C

C2C, or Consumer-to-Consumer, is a model where individuals sell to other individuals, often through online platforms. The video script cites OLX and Quicker as examples of C2C e-commerce.

💡C2B

C2B, or Consumer-to-Business, is a model where consumers provide products or services that businesses value. The script gives the example of social media influencers being paid to advertise products, highlighting the reciprocal nature of this e-commerce model.

💡Trade Cycle

The trade cycle in e-commerce, as described in the script, includes pre-sales, execution, settlement, and after-sales service. This cycle outlines the typical flow of an e-commerce transaction, from product search to delivery and post-purchase support.

Highlights

E-commerce is the buying and selling of goods or services using electronic means like the internet.

Traditional commerce is face-to-face and limited to specific geographical locations and business hours.

E-commerce allows for global reach and is available 24/7.

E-commerce has evolved from barter systems to using digital platforms like Amazon and Flipkart.

Mobile commerce enables transactions through smartphones and tablets.

Social commerce utilizes social media platforms for product promotion and sales.

Online payments can be made using credit/debit cards, prepaid cards, net banking, e-wallets, and mobile payments.

Digital currencies like Bitcoin and Ethereum are emerging in e-commerce.

E-commerce offers advantages such as global reach, no need for intermediaries, and reduced transaction costs.

Disadvantages of e-commerce include lack of personal touch, initial setup costs, and security concerns.

E-commerce models include B2C, B2B, C2C, and C2B.

The e-commerce trade cycle consists of pre-sales, execution, settlement, and after-sales service.

Pre-sales involves customer search and negotiation with suppliers.

Execution phase includes order placement and delivery of products.

Settlement phase covers invoicing and payment processing.

After-sales service provides warranty and maintenance support to customers.

E-commerce significantly reduces paperwork and lowers transaction costs.

The video provides a comprehensive summary of e-commerce concepts.

Transcripts

hello friends in this video we are going

to learn what is e-commerce

before we understand e-commerce let's

understand what is commerce

commerce is nothing but buying and

selling of goods

it has been around for many years

starting from barter system

where there was just exchange of goods

to using precious metals

to using coins and then paper money and

plastic money

traditional commerce used to happen face

to face

so it was limited to particular

geographical location

there was a personal interaction and

delivery of goods was instantaneous

it was limited to certain business hours

typically during day time

with the advent of internet came in

e-commerce

e-commerce can be defined as the process

of buying

and selling of goods or services using

an electronic medium such as internet

example on amazon flipkart

olx etc here the sale happens online

so you can potentially sell across the

world

there is limited personal interaction

and delivery of goods and services might

take some time

it is available 24 by 7 and can be done

day or night

here is a summary of difference between

traditional commerce

and e-commerce which is popular today

e-commerce is also extended to mobile

and social media network

when we say mobile commerce today you

are able to do

any transactions from your smartphone or

tablet

like mobile banking bill payments ticket

booking

etc in addition there is rise of social

commerce

which is use of social media sites like

facebook

whatsapp to promote and sell products

and services

there are multiple ways by which you can

make payments online

you can use credit or debit cards like

cards issued by mastercard and visa

you can use prepaid cards like gift

cards

you can also do net banking where if you

are enrolled in

internet banking you can choose your

bank and do direct bank transfer

example through neft and ms you can also

use

e-wallet which is like a prepaid card

or it is linked to your bank account

which you can use for

online transactions example paytm wallet

now it is mobile payments using upi is

becoming common

like google pay beam etc

upcoming trends include digital currency

like bitcoin

or ethereum the advantage of e-commerce

is that it is

available 24x7 and provides a global

reach

sellers and buyers can virtually meet

anytime

anywhere there is no need for any

intermediaries

and it provides the user with more

options to compare

and select cheaper and better option it

significantly reduces paperwork

and lowers the transaction cost the

disadvantage of e-commerce

is that there is a lack of personal

touch for many type of services

it requires an initial setup cost for

hardware

software and then training and

maintenance cost

sometimes they are problem with order

fulfillment or returns

security is also a key concern as there

is identity theft

malware attack and denial of services

primarily e-commerce is of four types

first is b2c in this model

business sells its products directly to

a customer

a customer can view the product shown on

the website

and order the same example amazon

or flipkart next is b2b

model here business sells its products

to an

intermediate buyer who then sells the

product to the final customer

for example a company might sell its

product

to a wholesaler who will sell it to

multiple retailers at some price

markup next is c2c model

where a consumer sells any of their

assets

like property cars motorcycle etc

by publishing the information on a

website

where interested consumers can view and

do the purchase

example buying and selling on olx

or quicker or craigslist next is c2b

or consumer to business in this model

consumers have products or services of

value

that can be consumed by business for

example

social media influencers being paid by

businesses to advertise their products

e-commerce follows a typical trade cycle

or flow

first is pre-sales it consists of

two steps first customer searches

different websites

for product to be purchased the next

step is negotiation

where online it is selecting a supplier

who offers good quality product at right

price

and whose terms such as delivery dates

etc

are agreeable to customer next step

is execution first it consists of

order phase where customer places an

order for the selected product

at this phase he might do the payment

upfront

or he might do the payment after the

delivery too

in delivery phase the supplier processes

the order

and then customer receives the delivery

of the product

then comes settlement this phase

consists of invoicing

and payment if any invoicing means

customer will receive a bill for

purchase product

along with the delivery after

confirmation of received product

the customer will pay if he has not paid

earlier

last step is after sales this phase

consists of warranty

and after sale service in warranty

period

customer will get maintenance services

for free

or at a minimum cost after sales

services means

in case there are complaints about the

product you can get maintenance service

from the supplier

at individual visit cost or yearly fee

so this summarizes the e-commerce

concepts

if you liked our video do press like

and also subscribe to our channel thank

you

and good bye