Mumbai University > Information Technology > Sem 7 > E–Commerce & E-Business

Marks: 10 M

The e-Commerce Trade Cycle:

• A trade cycle is the series of exchanges, between a customer and supplier, that take place when a commercial exchange is executed. A general trade cycle consists of:

  Pre-Sales: Finding a supplier and agreeing the terms.

  Execution: Selecting goods and taking delivery.

  Settlement: Invoice (if any) and payment.

  After-Sales: Following up complaints or providing maintenance.

• For business-to-business transactions the trade cycle typically involves the provision of credit with execution preceding settlement whereas in consumer-to-business these two steps are typically co-incident. The nature of the trade cycle can indicate the e-Commerce technology most suited to the exchange.

• Commercial transactions that are repeated on a regular basis, such as supermarkets replenishing their shelves, is one category of trade cycle. EDI is the e-Commerce technology appropriate to these exchanges, see Figure 1.

• Consumer transactions tend to be once-off (or at least vary each time) and payment is made at the time of the order.Internet e-Commerce is the technology for these exchanges, see Figure 2.

• The third generic trade cycle is the non-repeating commercial trade cycle and Internet e-Commerce or an electronic market is the appropriate e-technology.