M.S.

Chahar
Astt. Professor
Raja Balwant Singh Management Technical Campus, Agra
9997775422
E- Commerce
 E-commerce (electronic commerce or EC) is the
buying and selling of goods and services, or the
transmitting of funds or data, over an electronic
network, primarily the Internet.

 These business transactions occur either business-to-

business, business-to-consumer, consumer-to-
consumer or consumer-to business.
E-COMMERCE TECHNOLOGIES
What technologies are necessary for e-commerce?
 The Internet, intranets, and extranets are the foundation of e-
commerce.
 Customers must be provided with a range of secure
information, marketing, transaction, processing, and payment
services.

 Company employees depend on a variety of Internet and

intranet resources to communicate and collaborate in support of
their EC work activities.
 Information system professionals and end users can use a
variety of software tools to develop and manage the content
and operations of the websites and other EC resources of a
company.
INCENTIVES FOR ENGAGING IN
E-COMMERCE
The key to e-commerce success is to optimize several key factors, The
incentives for engaging in e-commerce are listed as follows:

1. Selection and Value. Attractive product selections, competitive

prices, satisfaction guarantees, and customer support after the sale.

2. Performance and Service. Fast, easy navigation, shopping, and

purchasing, and prompt shipping and delivery.

3. Look and Feel. Attractive web storefront, website shopping areas,

multimedia product catalog pages, and shopping features.
4. Advertising and Incentives. Targeted web-page advertising and e-
mail promotions, discounts and special offers, including advertising at
affiliate sites.
5. Personal Attention. Personal web pages, personalized product
recommendations, web advertising, and e-mail notices, and interactive
support for all customers.
6. Community Relationships. Virtual communities of customers,
suppliers, company representatives, and others via newsgroups, chat
rooms, and links to related sites.
7. Security and Reliability. Security of customer information and
website transactions, trustworthy product information, and reliable
order fulfilment.
NEEDS OF E COMMERCE
1. Free and faster shipping. Businesses now have the option to partner
with companies that work with retailers to offer customers free or faster
shipping.
2. Consumer-driven demand and personalization. Consumers want
unique, original products and businesses need to be able to deliver that
in increasingly creative--and profitable— ways.
3. Growth of guided discovery To make shoppers' lives easier, more
and more online businesses will start engineering the right mix of
"guided discovery" to provide targeted and welcome suggestions that
help consumers make purchases.
4. Business without borders.
Advantages of E-commerce
• Faster buying/selling procedure, easy to find products.

• Buying/selling 24/7.

• Low operational costs and better quality of services.

• Easy to start and manage a business.

• No need of physical company set-ups.

• Customers can easily select products from different providers without

moving around physically.

Advantages of E-commerce
 Instant world wide availability

 Reduced paperwork

 Reduced errors

 Reduced time

 Easier entry into new markets

 New business opportunities

 Wider access to assistance and advice

 Improved product analysis

Disadvantages of E-commerce
 There is no guarantee of product quality.

 There are many hackers who look for opportunities, and thus an
ecommerce site, service, payment gateways, all are always prone to
attack.
Disadvantages of E-commerce
• Confidentiality issues

• Credit card fraud

• Security issues

• Trust issues

• Round-the-clock availability issues

FRAMEWORK FOR E-COMMERCE
The architectural framework for e-commerce consists of six layers of
functionality or services as follows:

 Application services.

 Brokerage services, data or transaction management.

 Interface and support layers.

 Secure messaging, security and electronic document interchange.

 Middleware and structured document interchange

 Network infrastructure and the basic communication services.

 FRAMEWORK FOR E-COMMERCE CONT . . .

 Applications: In the application layer services of e-commerce, it is decided that

what type of e-commerce application is going to be implemented. (B2B, B2C, C2C,
B2G)

 Information Brokerage and Management Layer: This layer is rapidly becoming

necessary in dealing with the voluminous amounts of information on the networks.
This layer works as an intermediary who provides service integration between
customers and information providers, given some constraint such as low price, fast
services or profit maximization for a client.

 Interface and Support Services: The third layer of the architectural framework is
interface layer. This layer provides interface for ecommerce applications. Interactive
catalogs and directory support services are the examples of this layer.
 FRAMEWORK FOR E-COMMERCE CONT . . .
 Secure Messaging Layer: electronic messaging services like e-mail,
enhanced fax and EDI.
 Middleware services: The enormous growth of networks, client
server technology and all other forms of communicating
between/among unlike platforms is the reason for the invention of
middleware services. The middleware services are used to integrate
the diversified software programs and make them talk to one another.
 Network Infrastructure: We know that the effective and efficient
linkage between the customer and the supplier is a precondition for
e-commerce
EC APPLICATIONS

 EC applications are supported by infrastructure and by five support

areas:

 People

 Public policy

 Marketing and advertising

 Support services

 Business partnerships
IMPACT OF E-COMMERCE ON BUSINESS
 The new technology will transform business processes, the way
products and services are created and marketed.

 Local proximity may no longer be a significant factor in retaining

customer. Local markets will be replaced by global markets.

 Transparency and openness continue and will continue, to be

effective business strategy.

 The change in the business functions will lead to new business

models and create new set of facts and circumstances

 The Internet will emerge as a new platform for marketing of products

and services that will displace and rebuild existing economy.
E-Commerce Business
Models
Models of E-Commerce

• Business-to--Business ((B2B))

• Business-to-Consumer ((B2C))

• Business-to-Government ((B2G))

• Consumer-to--Consumer ((C2C))
Business-to-Business (B2B)
 B2B e-commerce is simply defined as e-commerce
between companies. This is the type of e-commerce
that deals with relationships between and among
businesses.
 B2B is all about transactions between one
organization and their partners.
 Most B2B applications are in the areas of supplier
management, inventory management, distribution
management and payment management
Best B2B Marketplaces in India:
 Alibaba – Wholesale B2B Marketplace. Alibaba is the
leading platform for global wholesale trade. ...
 IndiaMART. ...
 TradeIndia – Online B2B Marketplace in India. ...
 go4WorldBusiness – Great Wholesale B2B
Marketplace. ...
 JimTrade. ...
 Tradeford. ...
 Amazon Business. ...
 ExportersIndia.
Business-to-consumer
 Business-to-consumer e-commerce, or commerce
between companies and consumers, involves
customers gathering information; purchasing physical
goods or information goods ( software's ).
 It is the second largest and the earliest form of e-
commerce. Its origins can be traced to online retailing
(or e-tailing). Such as [Link], [Link],
[Link], Barnes and Noble and ToysRus.
Type of B2C e-commerce
An extended list of types of B2C electronic commerce:
 Storefront (Retail Shop) - products offered for sale
with revenue on sale.
 Shopping mall - multiple retailers with revenue from
commission or space hire
 Auction - vendors or buyers pay fixed price or
percentage
 Business exchanges - site facilitates transactions
between companies for a fee
Business-to-Government (B2G)
 Business-to-government e-commerce or B2G is
generally defined as commerce between companies
and the public sector. It refers to the use of the
Internet for public procurement, licensing procedures,
and other government-related operations.
This kind of e-commerce has two features:
 first, the public sector assumes a pilot/leading role in
establishing e-commerce; and
 second, it is assumed that the public sector has the
greatest need for making its procurement system more
effective.
Consumer-to--Consumer ((C2C))
 Consumer-to-consumer e-commerce or C2C is
simply commerce between private individuals or
consumers.

 This type of e-commerce is characterized by the

growth of electronic marketplaces and online auctions
DRIVING FORCES OF E-COMMERCE
 Environmental factors that create Business
Pressures:
 Economic Forces

 Market Forces

 Technology Forces

 Societal and environmental forces

Economic Forces
 Lower marketing costs: marketing on the Internet
maybe cheaper and can reach a wider crowd than the
normal marketing medium.
 Lower sales costs: increase in the customer volume do
not need an increase in staff as the sales function is
housed in the computer and has virtually unlimited
accessibility
 Lower ordering processing cost: online ordering can
be automated with checks to ensure that orders are
correct before accepting, thus reducing errors and the
cost of correcting them.
 New sales opportunities: the website is accessible all
the time and reaches the global audience which is not
possible with traditional storefront.
Market Forces
 Corporations are encouraged to use e-commerce in
marketing and promotion to capture international
markets, both big and small. The Internet is
likewise used as a medium for enhanced customer
service and support. It is a lot easier for companies
to provide their target consumers with more
detailed product and service information using the
Internet. Strong competition between
organizations, extremely low labor cost in some
countries, frequent and significant changes in
markets and increased power of consumers are the
reasons to create market forces.
Technology Forces
 The development of information and
communications technology (ICT) is a key factor
in the growth of e-commerce.
 This in turn has made communication more
efficient, faster, easier, and more economical as the
need to set up separate networks for telephone
services, television broadcast, cable television, and
Internet access is eliminated.
 From the standpoint of firms/ businesses and
consumers, having only one information provider
means lower communications costs.
Societal and environmental forces
To understand the role of E-commerce in today’s
organizations, it becomes necessary to review the
factors that create societal and environmental
forces.
 Changing nature of workforce
 Government deregulations
 Shrinking government subsidies
 Increased importance of ethical and legal issues
 Increased social responsibility of organizations
 Rapid political changes
E-commerce infrastructure
 E-commerce infrastructure requires a variety of
hardware, software, and networks.

 The key infrastructures that are needed to support

EC applications are networks, Web servers, Web
server support and software, electronic catalogs,
Web page design, and Internet access components.
THE HARDWARE
INFRASTRUCTURE
 Computers connected by a data connection (45
megabits/second)
 ISP hosts and other powerful computers connect using
(Broadband) lines
 Leased lines (some businesses)
 Modem dial-up connections
 Cable modems
 ADSL - Asymmetric Digital Subscriber Line
WEB STORE REQUIREMENTS
 An organization's first venture into EC is the
development of a Web site and the creation of a
presence on the Internet.
 E-commerce transactions must be executable
worldwide, without any delay or mistake.
 On a very basic website, an organization provides
information about itself, its products and its
services.
 A more developed Web site will allow some
interactions, such as sending an e-mail to request
for the information or schedule an appointment,
or ordering.
Good designs can be very rewarding.
Outsourcing Web page designs should be carefully
evaluated because of the high cost.
The company can register its Web site within a
domain name as well as registering it with the
major Web search engines.
A good web site must have a fast catalog search
engine, special discounts, credit card and other
payments, and shipping alternatives so that it can
attract new customers.
It must offer customer support via help menus,
tutorials, and list of FAQs.
ELECTRONIC PAYMENTS
Payments are an integral part of doing business,
whether in the traditional way or online.
Traditional payment systems are not effective for
EC (using cash, writing a check, sending a money
order have several limitations in EC) .
Usually in e-commerce, payments between buyers
and sellers can take place electronically.
These include EFT (Electronic Fund Transfer),
electronic checks, electronic credit cards,
electronic wallets.
ELECTRONIC FUND TRANSFER
(EFT)
Electronic transfer of money using
telecommunications networks.
EFT is fast.

Handle daily large volume of financial

transactions.
EFT-based ATMs are available in shopping centers
and business areas.
ELECTRONIC WALLETS
 Eliminating entry and storage of information on a
merchant’s server.

 One-click shopping.

 Credit card companies like Visa and Master card offer

e-wallet services, as do Yahoo!, America Online (called
Quick Checkout) and Microsoft (Passport).
Issues of E-Commerce
Lack of planning
 Unrealistic goals
 No business focus or site not integrated with your overall business.
No promotion or misplaced promotion
 Spending a lot of money just to develop a site without also investing
in promotion is wasteful
 Doing promotion and not following up.
Bad site design & poor usability
 Simplicity works. Sometimes, it is more important to have targeted
content with an overall customer focus than to have the latest whiz-
bang gizmos and a flashy site.
 Is content easily found and is the site easy to navigate?
 Are fonts too small or set against the wrong background colour?
 Is it intuitive to visitors to know the next steps?
 Do you have a strong call to action?
Slow performance
 Potentially good sites fail because of performance
when visitors wait for the site to load. A site that takes
more than a couple of seconds to load will not be
successful
 Slow sites are usually the result of bad design, a poorly
selected host, non-optimised images, or sites
overloaded with widgets and gizmos.
Coding errors
 The site may look and perform well on newer browsers
but it can also crash on older browsers “Page Not
Found” and other coding errors.
Security & hacking issues
 Non-secure online payments
 Spam attacks on a blog or user comments
 Hacked or defaced site
 Viruses on your site.
Going cheap - you get what you pay for
 When outsourcing, if the price sounds too good to be
true then it just might be
 Free hosting in foreign countries are generally slower
with more downtime than local hosting
 DIY and not relying on expert advice/help.
The process of e-commerce
 Attract customers
 Advertising, marketing
 Internet with customers
 Catalog, negotiation
 Handle and manage orders
 Order capture
 Payment
 Transaction
 Fulfillment (physical good, service good, digital good)
 React to customer inquiries
 Customers service
 Order tracking
Buyer and Seller Roles In
Commerce