Maharashtra Board Class 12 Information Technology Chapter 6 E Commerce and E Governance PDF Download

E-Commerce and E-Governance

Introduction

E-Commerce stands for Electronic Commerce. Before moving to the concept of E-Commerce, let's first understand what is commerce?

Commerce is an important part of a business. In simple words, commerce is nothing but buying and selling of goods. That means when we buy a product or service from others or sell a product or service to others then it is called as commerce.

One of the most popular activity on the Web is shopping. E-Commerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at websites. History of e-commerce is a history of a new, virtual world which is evolving according to the customer advantage.

Teacher's Note

When your family buys something from Amazon or Flipkart using the Internet, that is E-Commerce. You are buying without going to the shop.

Exam Trick

Remember: E-Commerce = Electronic + Commerce. It means buying and selling using the Internet. Just like you use WhatsApp to talk, you use E-Commerce websites to buy things.

Points to Remember

E-Commerce means buying and selling things on the Internet.
E-Commerce started in 1991 when the Internet was opened for business.
You can shop anytime and anywhere using E-Commerce.
E-Commerce is growing very fast all over the world.
Many big shops like Amazon and Flipkart use E-Commerce.

Definition of E-Commerce

"E-Commerce can be broadly defined as the process of buying and selling of goods or services using an electronic medium such as Internet."

E-commerce is also referred as a paperless exchange of business information using EDI, E-mail, Electronic fund transfer etc.

Teacher's Note

E-Commerce means no paper is used. Everything is done on the computer. This saves trees and helps our environment.

Exam Trick

Remember: Paperless = No paper. In E-Commerce, you do not need to fill forms on paper. You just click buttons on your computer.

Points to Remember

E-Commerce uses electronic medium like Internet.
No paper is used in E-Commerce.
Business information is sent using email and computers.
E-Commerce is fast and easy.
You can buy anything from home using E-Commerce.

Difference between Traditional Commerce and E-Commerce

Teacher's Note

When you go to a shop and buy milk, that is traditional commerce. When you order milk from an app on your phone, that is E-Commerce.

Exam Trick

Remember: Traditional = Shop. E-Commerce = Internet. The main difference is that one uses paper and the other uses computer.

Points to Remember

Traditional commerce needs you to go to the shop.
E-commerce can be done from home on the Internet.
Traditional commerce works only during shop hours.
E-commerce works 24 hours a day, 7 days a week.
E-commerce is faster and easier than traditional commerce.

Advantages of E-Commerce

Global scope: E-commerce provides the sellers with a global reach. Now sellers and buyers can meet in the virtual world, without barrier of place (geography).

Electronic transaction: E-commerce reduces the paper work and significantly lower the transaction cost. E-Commerce enables the use of credit cards, debit cards, smart cards, electronic fund transfer via bank's website and other modes of electronic payment.

Cost Saving: E-commerce application provides users with more options to compare and select the cheaper and better option. It helps in reducing the cost of searching a product. E-commerce has enabled rural areas to access services and products, which are otherwise not available to them.

Anytime shopping: One other great advantage is the convenience. A customer can shop 24×7. The website is functional at all times, it does not have working hours like a shop.

No intermediaries: Electronic commerce also allows the customer and the business to be in touch directly, without any intermediaries. This allows for quick communication and transactions.

Public services: E-commerce helps the government to deliver public services such as healthcare, education, social services at a reduced cost and in an improved manner.

Teacher's Note

A farmer in a small village in India can now sell his vegetables online to people in big cities. This was not possible before E-Commerce.

Exam Trick

Remember: Global scope = World. With E-Commerce, you can buy from anyone, anywhere in the world. Your shop is now the whole world.

Points to Remember

E-Commerce gives you a global market to buy and sell.
You can shop 24 hours a day, 7 days a week.
E-Commerce is cheaper because there are no middlemen.
You do not need to go to the shop to buy things.
E-Commerce helps in giving government services to people.

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