Relationship between the concept of commerce and business

What is the relationships between commerce and trade

relationship between the concept of commerce and business

The concept of r-commerce stems from the relationships a consumer has with other consumers and with a particular business by purchasing its online. and find homework help for other Business questions at eNotes. The relationship between commerce and business is that business activity is carried on within the Distinguish between the marketing concept and the selling concept. Natural resources are unevenly distributed in different regions and countries. A particular region or country cannot produce all its requirements.

relationship between the concept of commerce and business

As commerce is an abstract idea, you cannot say that you own commerce. When it comes to the clients of a company, the company does business with the clients, not commerce though the activities of the company come within the purview of the broader term commerce.

Commerce is much closer in meaning to trade and trade-related activities such as communication, transportation, insurance, and so on. Commerce is thus a part of all the activities that are carried out in the name of business such as planningadvertisingbuying, selling, marketingaccounting and supervising manufacturing, etc.

Commerce is just the buying and selling part of business thus being smaller in scope than business. Business is more physical in the sense that it can be owned by a person. A person can own a business, but he certainly does not own commerce. Similarly, a company does business with its clients. On the other hand, business is an activity that is undertaken with the sole motive of making profits.

In this context, buyers are provided much more time to compare prices and make better buying decisions. Moreover, B2B e-markets expand borders for dynamic and negotiated pricing wherein multiple buyers and sellers collectively participate in price-setting and two-way auctions.

Difference Between Commerce and Business

In such environments, prices can be set through automatic matching of bids and offers. In the e-marketplace, the requirements of both buyers and sellers are thus aggregated to reach competitive prices, which are lower than those resulting from individual actions.

Economies of scale and network effects. The rapid growth of B2B e-markets creates traditional supply-side cost-based economies of scale. Furthermore, the bringing together of a significant number of buyers and sellers provides the demand-side economies of scale or network effects. Each additional incremental participant in the e-market creates value for all participants in the demand side.

relationship between the concept of commerce and business

More participants form a critical mass, which is key in attracting more users to an e-market. What is B2C e-commerce? Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods i.

relationship between the concept of commerce and business

Its origins can be traced to online retailing or e-tailing. The more common applications of this type of e-commerce are in the areas of purchasing products and information, and personal finance management, which pertains to the management of personal investments and finances with the use of online banking tools e.

Online retailing transactions make up a significant share of this market. B2C e-commerce reduces transactions costs particularly search costs by increasing consumer access to information and allowing consumers to find the most competitive price for a product or service.

In the case of information goods, B2C e-commerce is even more attractive because it saves firms from factoring in the additional cost of a physical distribution network.

E-Commerce and E-Business/Concepts and Definitions

Moreover, for countries with a growing and robust Internet population, delivering information goods becomes increasingly feasible. What is B2G e-commerce? Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. This kind of e-commerce has two features: To date, however, the size of the B2G e-commerce market as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped.

What is C2C e-commerce?

relationship between the concept of commerce and business

Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. This type of e-commerce comes in at least three forms: Consumer-to-business C2B transactions involve reverse auctions, which empower the consumer to drive transactions.

There is little information on the relative size of global C2C e-commerce. These sites produce millions of dollars in sales every day. Advantages of C2C sites Consumer to consumer e-commerce has many benefits. The primary benefit to consumers is reduction in cost. Buying ad space on other e-commerce sites is expensive. Sellers can post their items for free or with minimal charge depending on the C2C website. C2C websites form a perfect platform for buyers and sellers who wish to buy and sell related products.

The ability to find related products leads to an increase in the visitor to customer conversion ratio.

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Business owners can cheaply maintain C2C websites and increase profits without the additional costs of distribution locations. A good example of a C2C e-commerce website is Esty, a site that allows consumers to buy and sell handmade or vintage items and supplies including art, photography, clothing, jewelry, food, bath and beauty products, quilts, knick-knacks, and toys.

Disadvantages of C2C sites There are a couple of disadvantages to these type of sites as well.

relationship between the concept of commerce and business

Doing transaction on these type of websites requires co-operation between the buyer and seller. It has been noted many times that these two do not co-operate with each other after a transaction has been made.

They do not share the transaction information which may be via credit or debit card or internet banking. This can result in online fraud since the buyer and seller are not very well versed with each other. This can lead to lawsuit being imposed on either ends or also on the site if it has not mentioned the disclaimer in its terms and conditions. This may also hamper the c2c website's reputation. Companies which handle consumer to consumer ecommerce websites seem to have becoming very cautious to prevent online scams.

M-commerce mobile commerce is the buying and selling of goods and services through wireless technology-i. Japan is seen as a global leader in m-commerce. As content delivery over wireless devices becomes faster, more secure, and scalable, some believe that m-commerce will surpass wireline e-commerce as the method of choice for digital commerce transactions.

This may well be true for the Asia-Pacific where there are more mobile phone users than there are Internet users.

Industries affected by m-commerce include: One of the most evident benefits of e-commerce is economic efficiency resulting from the reduction in communications costs, low-cost technological infrastructure, speedier and more economic electronic transactions with suppliers, lower global information sharing and advertising costs, and cheaper customer service alternatives. Economic integration is either external or internal.

Cultural difference in business - Valerie Hoeks - TEDxHaarlem

Internal integration, on the other hand, is the networking of the various departments within a corporation, and of business operations and processes. This allows critical business information to be stored in a digital form that can be retrieved instantly and transmitted electronically.

Internal integration is best exemplified by corporate intranets.

Difference Between Trade and Commerce

The e-hub serves as the center for management of content and the processing of business transactions with support services such as financial clearance and information services. Earlier the trade was little cumbersome since it followed the barter system where goods were exchanged in return of other goods or commodities. It is hard to evaluate the exact value because of the different commodities type involved in the exchange. With the advent of money, this process became more convenient for both the sellers and buyers.

Trade can be domestic as well as foreign. Domestic trade means within the border of the country, and foreign trade means across the borders. Foreign trade is done through investment in securities or funds and can be termed as imports and exports. Definition of Commerce Commerce includes all the activities that help in facilitating the exchange of goods and services from the manufacturer or the producer to the ultimate consumers. Majorly the activities are transportation, banking, insurance, advertising, warehousing, etc.

Once the products are manufactured these cannot reach directly to the customer, the same has to pass through a series of activities. The first wholesaler will purchase the product, and with the use of transportation, the goods will be made available to the stores and at the same banking and insurance service will be availed by him to have protection against the loss of goods.

The retailer will then sell to the ultimate consumer. All these activities come under the commerce head.