The similarities and differences between the subject of e-commerce and traditional commercial subjects

Similarities between the two: e-commerce will be the traditional business activities in logistics, capital flow, information flow transmission using network technology integration, enterprises will be important information to the global information network (www), intranet (Intranet) or extranet (Extranet) directly with the distribution of customers, employees, dealers and suppliers to connect, to create a more competitive business

Here's how it works.

Let's take a look at the difference between the two:

(1) The two operation process is different

Traditional business transactions in the process of practical operations by the pre-transaction preparations, trade negotiations, contracts and the implementation of the payment and liquidation of the composition of the links. One of the pre-transaction preparation is that both sides of the transaction are aware of the supply and demand information about the product or service, it began to enter the specific transaction negotiation process, the transaction negotiation is actually an oral negotiation between the two sides of the transaction or the transfer of written documents process. Written documents, including inquiry form, ordering contracts, delivery notes, transportation orders, invoices, acceptance of the single and so on. Contract and implementation process, in the traditional business activities, the transaction negotiation process is often completed through oral agreement, but after the consultation, the two sides of the transaction must be in writing to sign a trade contract with legal effect to determine the results of the consultation and supervision of the implementation, and in the case of disputes arising from the contract by the appropriate institutions for arbitration. Finally, the payment process, the traditional business activities of payment generally have a check and cash in two ways, the check method is mostly used in the business transaction process.

The operation process of electronic commerce, although there are also pre-transaction preparation, trade negotiations, contract signing and implementation and payment of funds and so on, but the transaction of the specific use of the operation method is completely different. In the mode of e-commerce, the pre-transaction preparation, the transaction of supply and demand information are generally obtained through the network, so that the two sides of the communication of information with fast and efficient characteristics: the negotiation of trade, e-commerce, the two sides of the negotiation process is the written documents into electronic documents and the realization of the transmission of the network; contract signing and execution, e-commerce environment, network protocols and e-commerce application system functions to ensure that all the parties to the transaction. The function of the system ensures the correctness and reliability of all the transaction negotiation documents between the two parties, and in the case of third-party authorization has the legal effect, can be used as a basis for arbitration in the implementation of the process of disputes; the payment of funds, e-commerce transactions in the payment of funds are generally taken online payment method.

(2) The manufacturer is the business center in the traditional business, while in the e-commerce environment, the seller is the main body of the business

The manufacturer is responsible for organizing the market research, the development of new products and research in the traditional business, and finally the manufacturer is responsible for organizing the sales of products. So it can be said that all activities are inseparable from the manufacturer. However, in the e-commerce environment, it is the seller who is responsible for the sales process, including the establishment and management of the product website, the design and updating of the webpage content, the design, organization and management of all the online sales and after-sales services, etc., and the manufacturer is no longer playing a leading role.

(3) E-commerce and traditional business of commodity flow mechanism is different

Traditional business under the commodity flow is an "indirect" flow mechanism. Most of the goods produced by manufacturing enterprises have gone through a series of intermediaries to reach the end user. This flow mechanism invariably adds many unnecessary links to the flow of goods, but also increases the corresponding circulation, transportation, storage costs, plus each intermediary to obtain their own profits, which results in the ex-factory price of goods and the retail price of a large price difference. In this regard, some manufacturing companies have taken the direct sales method (the goods directly to the mall on the counter sales). This way of circulation, so that the price of goods has been reduced, popular with consumers. However, this approach does not give the manufacturer to bring greater profits, because the direct sales approach requires manufacturers to have many sales staff often running between the various markets.

The emergence of e-commerce makes every kind of goods can establish the most direct flow channels, manufacturers can send the goods directly to the user where, but also from the user where to get the most valuable demand for information, to realize the exchange of information without hindrance.

(4) E-commerce and traditional business involved in the geographical scope and the scope of commodities is different

Traditional business involved in the geographical scope and the scope of commodities is limited, and with the promotion and popularization of the Internet, in particular the emergence of various types of professional Web sites, e-commerce involved in the geographic scope and time is unlimited, is beyond the time and space.

Through the above elaboration, we can easily see that between traditional business and e-commerce, there are **** the same point, there are also differences, the relationship between the two are mainly manifested in the following aspects.

1) The logistics system of e-commerce can be built on the basis of the logistics system of traditional business, which will give fuller play to the utilization rate of logistics resources.

2) The customers under e-commerce may be the customer base under traditional business, in a sense, e-commerce is the development of traditional business.

3) Many of the activities of e-commerce can be operated in the same way as in traditional business, and they can be improved and extended so that they can be adapted to the new business conditions. Finally, the existing sales channels and information networks of traditional business can also be used for e-commerce.

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