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Electronic E-commerce and the Trade Cycle

by anupmaurya
3 minutes read

Electronic e-commerce, also known as online commerce or internet commerce, has become an increasingly important part of the global economy. In this tutorial, we will discuss the basics of electronic e-commerce and the trade cycle, including what electronic e-commerce is, its benefits, the trade cycle, and the different stages of the trade cycle.

What is Electronic E-commerce?

Electronic e-commerce refers to the buying and selling of goods and services online. This can take many forms, including online stores, online marketplaces, and online auctions. Electronic e-commerce has become popular in recent years due to its convenience, accessibility, and the ability to reach a global audience.

Benefits of Electronic E-commerce

Electronic e-commerce offers many benefits to both buyers and sellers. For buyers, it provides a convenient way to shop from the comfort of their own home, as well as the ability to easily compare prices and products from different retailers. For sellers, it offers a way to reach a global audience, reduce costs associated with traditional brick-and-mortar stores, and easily track sales and inventory.

The Trade Cycle

The trade cycle refers to the process of buying and selling goods and services. It typically consists of several stages, including sourcing, production, distribution, and consumption.

  1. Sourcing: In this stage, raw materials and other inputs are acquired for use in the production process.
  2. Production: In this stage, the raw materials and other inputs are transformed into finished products.
  3. Distribution: In this stage, the finished products are transported to retail locations or directly to consumers.
  4. Consumption: In this stage, the products are purchased and consumed by the end consumer.

The Stages of the Trade Cycle in Electronic E-commerce

The trade cycle in electronic e-commerce follows a similar pattern to the traditional trade cycle, but with some key differences.

  1. Sourcing: In electronic e-commerce, sourcing may involve the purchase of raw materials or finished products from suppliers located around the world. This can be done through online marketplaces or by contacting suppliers directly through their websites.
  2. Production: In electronic e-commerce, production may involve the assembly of finished products from pre-made components or the creation of digital products such as software or e-books.
  3. Distribution: In electronic e-commerce, distribution typically involves the shipment of products directly to consumers or to third-party fulfillment centers for storage and shipment. This can be done through a variety of shipping methods, including postal services, courier services, or specialized delivery companies.
  4. Consumption: In electronic e-commerce, consumption typically involves the purchase of products through online stores or marketplaces. This can be done through a variety of payment methods, including credit cards, PayPal, or other digital payment platforms.


Electronic e-commerce has revolutionized the way that goods and services are bought and sold, offering a convenient and accessible way for consumers to shop and for sellers to reach a global audience. Understanding the trade cycle and the different stages involved in electronic e-commerce is essential for anyone looking to succeed in this growing industry.

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