Answer in Brief
Explain phases of 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 the following phases:
- Pre-Sales: It consists of two steps like Search and Negotiates. Customer searches for a required website for products to be purchased. In Negotiate step customer find a supplier who offers a good quality product at a cheaper price and then the customer agrees to the terms forwarded by the supplier.
- Execution: This phase consists of Order and Delivery. Customer sends an order for the selected product and after processing the order, customer receives delivery of the product.
- Settlement: This phase consists of an Invoice (if any) and Payment. Invoice means customer will receive a bill for the purchased product and after confirmation of received product, customer will pay for the same.
- After-Sales: This phase consists of warranty and After-Sale Services. In the warranty period, customers will get all maintenance services for free or at minimum cost. After-sale services mean customers will do complaints (if any) about the performance of product and get maintenance service from the supplier.
Concept: E-Commerce Trade Cycle
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