Advantages of traditional commerce in e-commerce

E-commerce combines the transmission modes of logistics, capital flow and information flow in traditional business activities with network technology. Enterprises directly connect important information with customers, employees, distributors and suppliers distributed all over the world through the global information network (www), intranet or extranet, creating more competitive business advantages. Compared with traditional business activities, e-commerce has the following characteristics:

1. Transaction Virtualization

Trade through the computer Internet represented by the Internet, from trade negotiation, contract signing to payment, etc. , through the computer Internet, without face to face, the whole transaction is completely virtualized. For sellers, they can apply for a domain name in the network management organization, make their own home page, and sort out product information online. With the development of new technologies such as virtual reality and online chat, buyers can choose advertisements according to their own needs and feed back information to sellers. Through the push-pull interaction of information, electronic contracts are signed, transactions are completed and electronic payments are made. The whole transaction is carried out in the virtual environment of the network.

2. Low transaction cost

E-commerce greatly reduces the transaction cost of buyers and sellers, which is embodied in the following aspects: (1) The farther the distance, the lower the cost of information transmission on the network than letters, telephones and faxes. In addition, shortening the time and reducing the number of duplicate data recorders also reduces the information cost. (2) Buyers and sellers conduct business activities through the Internet, without the participation of intermediaries, which reduces the related links in the transaction. (3) Sellers can introduce and publicize products through the Internet, thus avoiding a lot of expenses such as advertising and printing products in the traditional way. (4) Implementing "paperless trade" in e-commerce can reduce the cost of document processing by 90%. (5) The Internet enables buyers and sellers to communicate supply and demand information in real time, making it possible to produce and sell goods without inventory, thus reducing the warehouse cost to zero. (6) Enterprises can realize paperless office (OA) by using intranet, which improves the efficiency of internal information transmission, saves time and reduces management costs. Through the Internet, the company's headquarters, agents and subsidiaries and branches distributed in other countries are linked together, so as to respond to local market conditions in time, produce and sell in time, reduce inventory costs, and provide delivery services by using overlapping companies with high production efficiency, thereby reducing product costs. (7) The traditional trading platform is ground shops, and the new e-commerce trading platform is Internet cafes or offices.

3. High transaction efficiency

Because the Internet standardizes commercial messages in trade, commercial messages can be transmitted and automatically processed by computers all over the world in an instant, and the processes of raw material procurement, product production, demand and sales, bank remittance, insurance, consignment and customs declaration of goods can be completed in the shortest time without manual intervention. In the traditional trade mode, sending information by mail, telephone and fax requires people's participation, and each link takes a lot of time. Sometimes the transmission time is delayed and the best business opportunity is missed because of the cooperation of personnel and working hours. E-commerce overcomes the shortcomings of traditional trade methods, such as high cost, easy to make mistakes and slow processing speed, which greatly shortens the transaction time and makes the whole transaction very fast and convenient.

4. Transparency of transactions

The whole transaction process, such as negotiation, signing, payment and delivery notice, is conducted online. Information transmission is smooth and fast, which can ensure that all kinds of information can be checked with each other and prevent the circulation of forged information. For example, in a typical license EDI system, because the communication and verification between the issuing unit and the verification unit are strengthened, the fake license is not easy to escape. Customs EDI also helps to put an end to border behaviors such as false export, beating around the bush and defrauding tax refund.