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E-commerce Vs Commerce
by B.Muthukrishnan

In our country ecommerce seems to be picking up with many corporate companies opening up their ecom portals. Cyber laws have been framed up by GOI safeguarding the interests of buyers and sellers who use Internet as their medium of transaction. However, it is a long way for majority of Indian populace to switch over from regular commerce to ecommerce. We shall try to compare both the systems, which will automatically answer the earlier statement.

COMMERCE

ECOMMERCE

1).A SYSTEM EVOLVED OVER MANY CENTURIES IN OUR COUNTRY

RECENT INVENTION POPULAR IN US STILL BOGGED DOWN WITH SECURITY ISSUES

2) GOODS AND SERVICES ARE PHYSICALLY ONLY AFTER THE PAYMENT, THEY VERIFIED BEFORE PAYMENT IS MADE ARE AVAILABLE

3)MANY GOODS ARE PURCHASED ONLY AFTER BARGAINING&NEGOTIATIONS

GENERALLY THIS IS NOT POSSIBLE THROUGH INTERNET DEALINGS

   

4)INDIAN BUYER MAKES A BUYING DECISION BASED ON RECOMMENDATION FROM HIS FRIENDS,RELATIVES:THERE IS ALSO POPULAR BELIEF SUCH AS KAIRASI FOR PURCHASES FOR MARRIAGE AND OTHER MAJOR FUNCTIONS

THERE IS NO SCOPE FOR SUCH THINGS FOR INTERNET BUYING.IT IS VERY DIFFICULT TO CREATE SIMILAR SCENERIO AND CONVERT THE BUYERS TO SWITCH OVER TO THE NET.

5)SHOPPING AFTER VISITING MANY STORES

IS NORMAL PRACTICE IN INDIA.

THIS CAN BE DONE BY OPENING UP MANY WEBSITES OF DIFFERENT COMPANIES.WHETHER THIS WILL BECOME POPULAR WITH OUR PEOPLE IS YET TO BE SEEN.

6)HUGE INVESTMENTS ARE MADE TO DECORATE THE SHOPS, STOCK GOODS,ADDING LATEST VARIETIES ETC TO ATTRACT THE CUSTOMERS

EVERYTHING IS DONE IN THE WEB SITE.ONLY THING POSSIBLE IS TO CREATE A WEBSITE RICH IN CONTENT WITH ANIMATIONS, GRAPHICS,ETC

7)MANY MARKETING TECHNIQUES,SALES PROMOTION ARE DONE TO INCREASE THE SALES

ALL THE MARKETING INVOLVES POPULARISING THE WEBSITE ONLY.THERE IS NO DIRECT MARKETING OR SLAES PROMOTION POSSIBLE.

8) GENERALLY PEOPLE BUY GOODS FROM NEARBY SHOPS ONLY SO THAT THERE IS OPPORTUNITY TO EXCHANGE GOODS OR BUY NEW ITEMS OF THEIR CHOICE.

THERE IS NO SC OPE FOR SUCH THINGS.FOR THIS SIMPLE REASON ALONE,IT IS VERY DIFFICULT TO CONVERT INDIANS TO NET CULTURE

9) THERE IS NO SECURITY RISK INVOLVED WHEN CASH PAYMENTS ARE MADE THE USE OF CREDIT CARDS EVEN FOR NORMAL PURCHASES IS DECLINING DUE TO VARIOUS REASONS (REF MY ARTICLE ON ONLINE PAYMENTS) THEREFORE USE OF CREDIT CARDS FOR ONLINE PURCHASES IS A REMOTE POSSIBILITY AT PRESENT.

THERE ARE MANY PAYMENT MECHANISMS AVAILABLE FOR A BUYER THROUGH NET.BUT ALL OF THEM ARE NEW TO INDIA AND WILL TAKE MANY MORE YEARS TO ESTABLISH THEMSELVES.

 

All the points mentioned above are applicable only for business to customer (b2c) models, For business to business (b2b) transactions, there are different criteria to be followed .In b2b, transactions are between known people (manufacturer to dealer or dealer to sub dealer etc). Therefore, the norms such as marketing the goods, sales promotion, etc do not arise.

In conclusion, I expect the b2c ecommerce may not take place in the near future even though the number of Internet connections is increasing everyday. The people may start using email in large numbers, browse the various sites particularly information portals, etc. Students may visit the sites relating to higher studies, job opportunities, etc. Relating the number of new connections to increased ecommerce activity particularly b2c do not appear to be a sound conclusion.


Understanding E-Commerce
Payment Online
E-commerce vs. Commerce


Copyright © 1999 Dr. Raj Mehta. All rights reserved.