Skip to main content
Question
Finance
Asked a question last year

What is online transaction?

Where am I?

In StartupTalky you can ask and answer questions and share your experience with others!

Operationally, one may visualise three stages involved in online transactions. Firstly, the pre-purchase/sale stage including advertising and informationseeking; secondly, the purchase/sale stage comprised of steps such as price negotiation, closing of purchase/sales deal and payment; and thirdly, the delivery stage (see Figure 5.2).  It may be observed from Figure 5.2 that, except the stage relating to delivery, all other stages involve flow of information. The information is exchanged in the traditional business mode too, but at severe time and cost constraints. In faceto-face interaction in traditional business mode, for example, one needs to travel to be able to talk to the other party, requiring travel effort, greater time and costs. Exchange of information through the telephone is also cumbersome. It requires simultaneous presence of both the parties for verbal exchange of information. Information can be transmitted by post too, but this again is quite a time consuming and expensive process. Internet comes in as the fourth channel which is free from most of the problems referred to above. In the case of information-intensive products and services such as software and music, even delivery can take place onlineOperationally, one may visualise three stages involved in online transactions. Firstly, the pre-purchase/sale stage including advertising and informationseeking; secondly, the purchase/sale stage comprised of steps such as price negotiation, closing of purchase/sales deal and payment; and thirdly, the delivery stage (see Figure 5.2).  It may be observed from Figure 5.2 that, except the stage relating to delivery, all other stages involve flow of information. The information is exchanged in the traditional business mode too, but at severe time and cost constraints. In faceto-face interaction in traditional business mode, for example, one needs to travel to be able to talk to the other party, requiring travel effort, greater time and costs. Exchange of information through the telephone is also cumbersome. It requires simultaneous presence of both the parties for verbal exchange of information. Information can be transmitted by post too, but this again is quite a time consuming and expensive process. Internet comes in as the fourth channel which is free from most of the problems referred to above. In the case of information-intensive products and services such as software and music, even delivery can take place online