Flows in E-Commerce System

By | Jun 18, 2015 | 17132 views |
  • Flows in E-Commerce System

Do you wonder about the how processes work in an E-commerce system? We will give you a peek…

There are 4 key flows in E-Commerce- Product Flow, Cash Flow, Information Flow, and Reverse Product Flow.

Product Flow:
This refers to the movement of the goods from the suppliers to the customers. Logistics players play a key role in moving products through this chain. In fact, Logistics takes the primary onus for success of an e-commerce entity. The products and services have to reach at the right time and the right place and in the right condition! Usually the retailers tie up with a reputed logistics provider for the supply of goods.

Cash Flow: Naturally, when you purchase a product or a service, you pay for it. So, the cash flow is from the customers back to Suppliers. This happens through multiple channels. Some customers chose offline mode of payment i.e. Cash on Delivery. In this case the logistics player collects the amount from the customer’s place and transfers it to the suplliers account. On the other hand, some customers pay online with their debit/credit cards and suppliers receive the amount accordingly. There are many other ways to pay online like Internet Banking, E-Gift Voucher and Wallet.

Information Flow: This information flow happens in both the directions. This flow of information is necessary for the proper functioning of all the activities in an E-Commerce model. Customers ask for information and likewise the retailer also requires information from the customer. Since, the process is basically online, this flow is important for a smooth transaction and seamless working of the stores.

Reverse Product Flow: This refers to the product return which has to be picked from the customer and returned to the retailer through the E-Commerce player. If a customer is not fully satisfied with the product or finds it in a damaged/defective condition, the customer can conveniently initiate the return online and ask for replacement or exchange or refund as per the policies of the e-commerce player which varies from product to product.

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