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MODULE I – COMMERCE AND ITS TECHNOLOGICAL ASPECTS

Overview of developments in information Technology

Information technology is a new field combining information science, computing,
telecommunications and electronics. These century has been defined by application of and
advancement in information technology. Information technology has play an integral part in our
day today life.

Today Information technology has served as a big change agent in different aspect of business
and society. One of the best concept in information technology is the cloud computing. Clouding
computing is defined as utilization of computing services such as software as well as hardware
as a service over a network. Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and
Software as a Service (SaaS) are the three main services offered by clod computing.

Modern Technology has had one goal in mind, they provide professional quality work through
customer satisfaction. Predictive analytics and Social media analytics tool used to predict future
events based on current and historical information and to understand and accommodate
customer needs. Mobile application or mobile app has become a success since its introduction
in the past years.

Electronic Commerce (E-commerce)

Electronic commerce (e-commerce) refers to companies and individuals that buy and sell
goods and services over the internet. E-commerce operates in different types of market
segments and can be conducted over computers, tablets, smartphones, and other smart devices.
Nearly every imaginable product and service is available through e-commerce transactions,
including books, music, plane tickets, and financial services such as stock investing and online
banking.

Understanding E-commerce

As noted above, e-commerce is the process of buying and selling tangible products and
services online. It involves more than one party along with the exchange of data or currency to
process a transaction. E-commerce has helped businesses (especially those with a narrow
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reach like small businesses) gain access to and establish a wider market presence by providing
cheaper and more efficient distribution channels for their products or services.

History of E-commerce

E-commerce actually goes back to the 1960s when companies used an electronic system called
the Electronic Data Interchange to facilitate the transfer of documents. It wasn't until 1994
that the very first transaction. took place. This involved the sale of a CD between friends
through an online retail website called NetMarket.

The industry has gone through so many changes since then, resulting in a great deal of
evolution. Traditional brick-and-mortar retailers were forced to embrace new technology in
order to stay afloat as companies like Alibaba, Amazon, eBay, and Etsy became household
names. These companies created a virtual marketplace for goods and services that consumers
can easily access.

Advantages and Disadvantages of E-commerce

Advantages
E-commerce offers consumers the following advantages:

 Convenience: E-commerce can occur 24 hours a day, seven days a week. Although
eCommerce may take a lot of work, it is still possible to generate sales as you sleep or
earn revenue while you are away from your store.
 Increased Selection: Many stores offer a wider array of products online than they
carry in their brick-and-mortar counterparts. And many stores that solely exist online
may offer consumers exclusive inventory that is unavailable elsewhere.
 Potentially Lower Start-up Cost: E-commerce companies may require a warehouse
or manufacturing site, but they usually don't need a physical storefront. The cost to
operate digitally is often less expensive than needing to pay rent, insurance, building
maintenance, and property taxes.
 International Sales: As long as an e-commerce store can ship to the customer, an e-
commerce company can sell to anyone in the world and isn't limited by physical
geography.
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 Easier to Retarget Customers: As customers browse a digital storefront, it is easier

to entice their attention towards placed advertisements, directed marketing campaigns,
or pop-ups specifically aimed at a purpose.

Disadvantages
There are certain drawbacks that come with e-commerce sites, too. The disadvantages include:

 Limited Customer Service: If you shop online for a computer, you cannot simply ask
an employee to demonstrate a particular model's features in person. And although
some websites let you chat online with a staff member, this is not a typical practice.
 Lack of Instant Gratification: When you buy an item online, you must wait for it to
be shipped to your home or office. However, e-tailers like Amazon make the waiting
game a little bit less painful by offering same-day delivery as a premium option for
select products.
 Inability to Touch Products: Online images do not necessarily convey the whole
story about an item, and so e-commerce purchases can be unsatisfying when the
products received do not match consumer expectations. Case in point: an item of
clothing may be made from shoddier fabric than its online image indicates.
 Reliance on Technology: If your website crashes, garners an overwhelming amount
of traffic, or must be temporarily taken down for any reason, your business is
effectively closed until the e-commerce storefront is back.
 Higher Competition: Although the low barrier to entry regarding low cost is an
advantage, this means other competitors can easily enter the market. E-commerce
companies must have mindful marketing strategies and remain diligent on SEO
optimization to ensure they maintain a digital presence.

Types of E-commerce

Depending on the goods, services, and organization of an ecommerce company, the business
can opt to operate several different ways. Here are several of the popular business models.
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Business-to-Consumer (B2C)
B2C e-commerce companies sell directly to the product end-user. Instead of distributing goods
to an intermediary, a B2C company performs transactions with the consumer that will
ultimately use the good.

Business-to-Business (B2B)
Similar to B2C, an e-commerce business can directly sell goods to a user. However, instead
of being a consumer, that user may be another company. B2B transactions often entail larger
quantities, greater specifications, and longer lead times.

Business-to-Government (B2G)
Some entities specialize as government contractors providing goods or services to agencies or
administrations. Similar to a B2B relationship, the business produces items of value and remits
those items to an entity.

Consumer-to-Consumer (C2C)
Established companies are the only entities that can sell things. E-commerce platforms such
as digital marketplaces connect consumers with other consumers who can list their own
products and execute their own sales.

Consumer-to-Business (C2B)
Modern platforms have allowed consumers to more easily engage with companies and offer
their services, especially related to short-term contracts, gigs, or freelance opportunities. For
example, consider listings on Upwork.

Consumer-to-Government (C2G)
Less of a traditional e-commerce relationship, consumers can interact with administrations,
agencies, or governments through C2G partnerships. These partnerships are often not in the
exchange of service but rather, the transaction of obligation.

Scope in E-Commerce

The potential for e-commerce development is enormous. Now a days one can buy products
online through some sites like Flipkart and Amazon. In the age of e-commerce everything from
gym equipment to laptops are available online. E-Commerce is a super set of business cases. It
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includes E-trading, E-Franchising, E-Mailing, E-Engineering etc. Scope of e-commerce can be

enumerated as follows:

1. Exchange of digitized information: The digitized information exchange can represent

communications between two parties, coordination of the flow of goods and service, or
transmission of electronic orders. These exchange can be between organizations or individuals.

2. Technology-enabled: E-Commerce is about technology-enabled transactions. Web

browsers are perhaps the best Know of these technology-enabled customer interfaces.
However, other interfaces including automated teller machines (ATMs) also fall in the general
category of e-commerce. Business once managed transactions with customers and markets
strictly through human interaction; In e-commerce, such transitions can be managed using
technology.
3. Customers retention: E-Commerce enables organizations to get classified and customized
market information that helps in retaining customers through fast order fulfillment and
effective customers relationship management (CRM). End-to-End supply chain management
in e-commerce provides the opportunity the overall flow of demand and supply and results in
fruitful customers retention.

4. Accounting: Financial accounting, treasury management and asset management are best
possible in e-commerce because of integrated database. Financial planning and strategy
determination become more convenient in e-commerce.
5. Supplier integration: For lowering inventory-carrying costs and broader availability of
material and opportunities suppliers network can be integrated through EDI to implement just-
in-time (JIT) inventory management.

6. Support the exchange: E-Commerce includes intra and interorganizational activities that
support the exchange. The scope of e-commerce includes all electronically based intra and
interorganizational activities that directly or indirectly support marketplace exchange. In this
sense, we are talking about a phenomenon that affects both How business organizations relate
to external parties customers, suppliers, partners, competitors, and markets and how they
operate internally in managing activities, processes and systems.
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Electronic Market

Electronic market is a website where companies can buy from and sell to each other using a
common technology platform. They are the commerce sites on the internet that allow a large
number of buyers and suppliers to meet and trade with each other. They are also known as
electronic marketplaces, online markets, e-hubs, or business-to-business markets.

Functions of E-Markets:-

E-markets serve three particular functions:

 They act as an exchange for business transactions-not only purchasing but also for
checking price and stock availability, invoicing and order chasing.

 They manage catalog content, converting product information into a common format
understood by all parties.

 They provide additional services to support the trading process such as shipping,
payment, tendering and determining a company‘s financial status.

Indeed, e-commerce can leverage several types of platforms — such as websites, mobile
apples, and voice assistants — and can take on a variety of forms:

1. Retail: The sale of a product by a business directly to a customer without any

intermediary
2. Wholesale: The sale of products in bulk, often to a retailer that then sells them directly
to consumers
3. Dropshipping: The sale of a product that is manufactured and shipped to the consumer
by a third party
4. Crowdfunding: The collection of money from consumers before the product is
available in order to raise capital to bring it to market
5. Subscription: The automatic recurring purchase of a product or service on a regular
basis
6. Physical products: Any tangible good that requires inventory to be replenished and
orders to be physically shipped to customers
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7. Digital products: Downloadable digital goods, templates, or media that must be

purchased for consumption
8. Services: A skill provided in exchange for compensation

Electronic Data Interchange (EDI)

Electronic Data Interchange (EDI) is the electronic interchange of business information using
a standardized format; a process which allows one company to send information to another
company electronically rather than with paper. Business entities conducting business
electronically are called trading partners.

Many business documents can be exchanged using EDI, but the two most common are purchase
orders and invoices. At a minimum, EDI replaces the mail preparation and handling associated
with traditional business communication. However, the real power of EDI is that it standardizes
the information communicated in business documents, which makes possible a "paperless"
exchange.

In EDI transactions, information flows straight from one organization‘s computer application
to another‘s computer program. The transaction entails the following:

 Data elements: These are distinct pieces of information such as firm name,
product code, quantity, and price. Each EDI standard comprises a specification
for each data element inside every transaction set, which determines the data type
(numeric, alphanumeric, date, time), minimum and maximum permissible length,
and any related ‗code values‘ (e.g., currency exchange code component for
prices).
 Segments: This refers to logically related sets of data components such as order
number, volume, units, or price linked with a product inside a purchase order. A
segment is always preceded by a segment ID, which indicates the type of material
or information components comprising the segment.
 Envelopes: This encapsulates transaction sets for transmission. Each
transaction set is included in a separate message envelope, whereas a cluster of
transaction sets (such as a group of bills) is enclosed in a group envelope.

Types of EDI
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EDI can happen in various ways depending on the business use case and the parties exchanging
the information (usually financial data and related documents).

1. Direct EDI

Direct EDI, often called point-to-point EDI, creates a single link between two business
partners. In this methodology, users connect with every business partner individually. It offers
control to business associates and is utilized most frequently between big customers and
suppliers who conduct multiple daily transactions.

2. Value-added Network (VAN)-enabled EDI

An option to the direct EDI framework is the EDI network service provider, also known as a
value-added network (VAN), which was in operation even before the internet arrived.

This network approach is preferred by many businesses because it shields them from the
ongoing challenges of maintaining the diverse communication protocols demanded by various
business partners. VANs are private networks on which partners exchange electronic business
documents. The VAN provider manages the network while providing businesses with
mailboxes, enabling them to send and receive EDI documents.

3. Applicability Statement 2 (AS2)-enabled EDI

AS2 is a network communications protocol that permits the transmission of data over the
internet in a secure manner. It consists of two computers — a client and a server —
communicating point-to-point via the internet. AS2 generates an ‗envelope‘ for EDI data,
enabling it to be transmitted securely over the internet employing digital certificates or
encryption. This EDI type is easily accessible to all.

4. Web EDI

Web EDI refers to the process of completing an EDI transaction using a web browser. It mimics
paper-based documents in a web form. Information-entry areas will be part of the form. After
all pertinent information has been supplied, the document is instantly transformed into an EDI
message and sent using secure internet protocols such as file transfer protocol secure
(FTPS), HyperText Transport Protocol Secure (HTTPS), or AS2.
SHYLAJA M, Assistant Professor
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5. Mobile EDI (emerging)

Traditionally, users have accessed EDI through a network, such as a VAN or the internet, to
send and get EDI-related business documents. The adoption of mobile EDI applications has
been constrained, in part, due to security concerns and limitations in screen quality or device
size. Yet, a burgeoning sector is building EDI applications for mobile download. Oracle‘s JD
Edwards EnterpriseOne, for example, offers mobile EDI applications.

6. Outsourced EDI

EDI outsourcing (EDI managed services) is a rapidly expanding solution that allows businesses
to use outsourced EDI environment management specialists. This is partly driven by the
requirement for businesses to interface with back-office business systems, such as enterprise
resource planning (ERP) systems. This is also beneficial as many businesses do not like to
devote internal capabilities to the continuing and repetitive tasks involved with EDI
transactions.

7. Indirect EDI

An indirect EDI transaction is the communication between an ERP and customers, vendors, or
third-party logistics service providers (3PL) through an EDI broker or value-added network.
Initially, the message, including all the data you want from your business partners, is sent from
the ERP to the broker or VAN. The broker then divides the message into additional forms —
based on the preferences of your consumers or vendors — and distributes them to respective
parties.

Applications of Electronic Data Interchange

1. Greater agility in manufacturing

EDI facilitates the efficient management of materials necessary to create a product. The
manufacturer‘s inventory is continuously updated through EDI, and the supplier is advised of
material shortages. The supplier also reacts via EDI, and the stock is updated as soon as the
cargo is delivered. By improving supply and delivery, EDI supports maximum retail price
(MRP) compliance and just-in-time production.
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2. Better demand-to-supply mapping in retail

EDI offers a structured method for maintaining and replenishing retail inventory. Stock is
continually updated at the point-of-sale (POS) terminal, and data is sent via EDI into the supply
chain management (SCM) module. The EDI software also monitors all logistics and refreshes
the original stock.

3. Digital process enablement in financial services

Via electronic systems, EDI simplifies payment collection, processing, and disbursement. It
facilitates the automatic transfer of funds between the checking accounts of business associates.

4. Increased automation of business processes

EDI renders human intervention redundant and allows process automation to be the present-
day reality. The advantages of automation include operations that operate nonstop and
document-relevant information that needs to be entered just once into the distribution channel.
This allows businesses to avoid duplicating tasks within the process flowchart.

5. Seamless vendor interactions in the high-tech industry

Supply-chain systems of technology companies are mostly quite complicated. Particularly

common in the high-tech industry is outsourced design and prototype functions. The ability of
EDI to rapidly share documents with minimum human interaction in such a dynamic, complex
environment significantly contributes to streamlining processes.

6. Smarter compliance adherence in the automotive industry

The purchase order is among the most commonly used papers in the automobile industry. This
document includes all items ordered in transactions and their respective amounts. Using EDI,
automotive companies can automate their systems to gain easy and rapid insights into orders,
order adjustments, and inventories.
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7. Less waste for the ecommerce sector

In the years after the worldwide pandemic, several merchants and food service establishments
have gone on to improve their operations. Many have had to transition toward ecommerce.
With EDI, users can automate stock reordering and improve visibility into stock levels at any
time, from just about any location. Using EDI means more precise inventory inspections for
food service businesses, allowing them to purchase only what is necessary and spend less.

8. Improved outcomes in healthcare

EDI has had a massive impact on the healthcare industry. Every day, healthcare organizations
handle voluminous amounts of documentation, such as insurance claims, payment records, and
patient information. An EDI program that removes the necessity of paper reduces employee
manual effort. It improves the precision of the transmitted information, guarantees the security
of the data, and saves time and effort for all, including physicians, insurers, and pharmacy
employees.

9. Prevention of errors in the supply chain

EDI eliminates the need for businesses to manage separate lines of paperwork. This is a
tremendous advantage since these individual documents can be the source of countless errors
throughout the distribution system. EDI requires data to be put into the system only once,
allowing users to avoid the need to retype data from forms physically. EDI also enables
businesses to identify deviations from their typical patterns rapidly; for instance, an irregular
order quantity can trigger an automatic alert.

10. EDI in the internet of things (IoT)

EDI will be the primary document exchange function in emerging supply chains to
accommodate modern technologies such as the internet of things (IoT) and blockchain. For
instance, IoT sensors embedded into a shipment‘s packaging and linked to periodical EDI 214
messages would improve the visibility of shipment status in near real-time. Integrated
blockchain technology with EDI data may provide a common and centralized representation of
the truth, which can swiftly settle or even prevent chargeback disputes.
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Internet Commerce

Internet Commerce is the use of the Internet for all phases of creating and completing business
transactions. Various surveys suggest that the amount of business conducted online will
increase ten-fold over the next few years, from around $500 million in 1996 to over $6 billion
in 2000. However, this still represents less than 10 per cent of the business conducted by mail
order.

In our view too much focus of electronic commerce to date has been put on carrying out the
final transactional phases - the ordering and payment. While such a perspective is all right when
there are established supply chains for regular and routine purposes, this overlooks the wider
perspective. It is often said, that the formal placement of an order is preceded by as many as
30 previous information exchanges. Thus, in its broadest sense we view Internet Commerce as
also including:

 The full sales and marketing cycle - for example, by analysing online feedback to
ascertain customer's needs
 Identifying new markets - through exposure to a global audience through the World
Wide Web
 Developing ongoing customer relationships - achieving loyalty through ongoing
email interaction
 Assisting potential customers with their purchasing decision - for example by
guiding them through product choices in an intelligent way
 Providing round-the-clock points of sale - making it easy for buyers to order online,
irrespective of location
 Supply Chain Management - supporting those in the supply chain, such as dealers
and distributors, through online interaction
 Ongoing Customer Support - providing extensive after-sales support to customers by
online methods; thus increasing satisfaction, deepening the customer relationship and
closing the selling loop through repeat and onging purchases.

Opportunities and Benefits

Those who trade via the Internet cite the following benefits:
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 Timeliness - Your Web site is accessible round the clock. Email queries can be handled
more expeditiously and completely than is often possible by mail or phone.
 Reduced Marketing Costs - Online catalogues are cheapre to produce and maintain
that paper catalogues.
 Better Targetting - Internet communities are self selecting. People with particular
interests tend to visit particaulr places in Cyberspace. Customers find you, rather than
vice versa.
 Greater Market Reach - Distance is no object. Sending information or exchanging
messages costs virtually the same as someone locally. You don't need to pay expensive
courier bills.
 Reduced communications costs - With electronic networking it cost virtually the same
to send a message to 100 people as to one.
 Improved After Sales Service - By providing online support, customers can serve
themselves for many of the common post-sales information needs.

Enabling Mechanisms
Several mechanisms are needed for there to be an effective electronic marketplace for a
particular product or service. In particular prospective buyers must be able to find your site.
Although traditional directories like Yahoo! have a role to play, trade directories (such
as TradenetUK) or shopping malls may fit the bill, but many are too general or localised to be
effective. There is a role and opportunity for specialised intermediaries. Or simply becoming
the best known in your field (c.f. [Link] for books).

Additionally, an individual supplier will need:

 World Wide Web site - with appropriate transaction and database software
 Payment facilities - to accept credit card information or online electronic cash
 Secure interfaces - to prevent unauthorised access to critical systems
 Redesigned Business Processes - to accomodate online interaction via email and online
transactions.

Above all they will need to develop the appropriate skills and strategies to adapt their marketing
and business to the new medium.
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Successfull Strategies
Many commentators have focussed on ways of "making money on the Web". Their models
include advertising, subscription services, site sponsorship etc. Unless your business is
advertising, information services or Internet related, this should not be your strategic focus.
Your focus should be
"How can the Internet enhance my existing key market process cycles?"

Key processes to consider are:

 New product-to-market - e.g. by wider use of testers across the world; use of
interactive test panels
 Market awareness-to-buying decision - e.g. by better provision of information and
access to expertise
 Sales order-to-fulfilment - e.g. by simplifying the order process

Challenges

Those who have focussed on electronic transactions cite a number of issues. Some challenges
and potential solutions are:

 Bandwidth - There is concern that as usage of the Internet grows exponentially, that
there will be insufficent bandwidth and it will grind to a halt. However, various analysts
have shown that, in general, market forces will enable capacity to keep up with demand,
though it may be patchy in places. Solutions: Some suppliers are talking of multi-tiered
services with premium pricing guanteeing faster levels of service.

 Authentification - When orders are placed over a network the buyer needs reassurance
that it was an authorized transaction and actually comes from who it
purports. Solutions: Electronic signatures, trusted third party validation .

 Security - Both parties want assurance that their confidential transaction details have
not been intercepted. Solutions: Encryption, secure servers.

 Legislation Harmonisation - Under which jurisdiction does a transaction take place-

the location of buyer, seller or server? Issues like these are the subject of policy debate.
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 Payment - How can someone set up simple, reliable and risk free mechanisms for
payment, in multiple currencies and without hefty bank charges? Solutions: Electronic
cash mechanisms, new Internet protocols such as SET (Secure Electronic
Transactions), virtual banks.

Advantages of e-commerce

1. Reduced overhead costs

Running an e-commerce store is a lot more cost-effective than running a physical store. You
don‘t have to rent commercial real estate — instead, you can pay an affordable fee for web
hosting. You don‘t have to invest in security for your commercial property, plus you don‘t have
to worry about paying rent for a warehouse or hiring employees.
2. No need for a physical storefront
There are so many difficult aspects to running a physical storefront and using e-commerce
means you don‘t have to face most of those obstacles. Renting a commercial property can be
expensive, especially if you‘re in a big city. You also have to pay for electricity, water, and
internet to ensure your space is up to code and can handle your business.
3. Ability to reach a broader audience
Perhaps the biggest advantage of e-commerce is the fact that it allows you to reach a massive
audience. Your physical storefront can only get so many visitors in a day, especially if you live
in a smaller town or a rural area. With an e-commerce store, you can reach potential customers
all throughout the world and show them your products.
4. Scalability
Of the advantages and disadvantages of a business using e-commerce, scalability is one of the
most practical advantages for long-term growth. If you have a physical storefront, your
business can only grow so much before you have to move to a larger storefront.
5. Track logistics
Keeping track of logistics is an essential part of e-commerce and retail marketing, and it‘s
significantly easier with e-commerce than it is with a physical storefront. You can outsource
fulfillment logistics so your customers can enjoy benefits like 2-day shipping and easy returns
processing.
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Disadvantages of e-commerce

1. Potential security threats

When you‘re doing business online, there‘s always the potential for security threats. Poor
website security can allow unauthorized users to gain access to your website and look at
sensitive data. In rare cases, issues with payment processors may lead to data breaches that put
customers‘ credit and debit card information at risk.
2. Competition
There‘s a lot of competition in the world of e-commerce because it‘s so easy for anybody to
create an online store. This is one of the biggest e-commerce disadvantages because it means
you have to work extra hard to make sure you‘re promoting your store and driving traffic to
your website.
3. IT issues
There are no tech issues that can keep you from accepting cash at a physical store, but IT issues
can be a big problem for e-commerce websites. If your website suddenly crashes or you‘re
having a problem with your payment processor, that downtime could potentially cost you
money and customers.
4. Shipping logistics
Running a physical storefront is simple because all you have to do is sell products to customers
when they come in to shop. If you want to sell products over the phone or through a catalog,
you can use a simple shipping service to send out a few packages each week. With an e-
commerce store, you have to figure out all of the shipping logistics because every purchase
will have to be shipped.
5. Limited connection with customers
You don‘t get a chance to connect with customers on a personal level when you‘re running an
e-commerce store. Some people may prefer that, but you can‘t offer the same personal touch
when you make a sale online.

E-Commerce Framework

An e-commerce framework is made of the underlying architecture needed to develop and

maintain a system for selling products online. This system typically includes a digital
storefront, product information manager (PIM), order management system, shopping cart, and
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payment processing. The core functionality may seem simple, but creating modern e-commerce
frameworks is a more complicated process as today‘s customers have come to demand
more than the simple ability to view and purchase products through an online storefront.

Evolution of E-Commerce Frameworks

Traditionally, e-commerce frameworks have been built on a client-server architecture. The

client is an application with a user interface like an e-commerce website that sends requests for
specific services, such as a PIM that stores product information. The server is the system that
fulfills the requests.

Two-tier framework- The client-server architecture originally followed a two-tier framework

where the user interface ran on the client and the database ran on the server. The client
processes provided the interface known as the presentation layer for customers to view data.
The server processes provided an interface known as the data layer for storing business data.
Both the user and business application logic could run on either the client or the server.

Three-tier framework- With the three-tier framework, the user interface and business
application logic are developed and maintained independently. This structure consists of a
client-side system, a service system, and a backend system.

E-commerce Architecture - To sell and buy the goods and services we have to develop a
system that helps the seller to connect with customers or customers can connect with multiple
sellers. For this, we developed different E-Commerce architectures that we see in this article,
components of E-Commerce architecture, and advantages of E-Commerce all these topics
will be covered in this article.

E-Commerce Architecture types

 Client-Server Architecture
 Two-Tier Architecture
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 Three-Tier Architecture
Client-Server Architecture
In this architecture, the client(browser) sends the requests to the server, and the server
processes the request if a request is valid then it responds with the requested data to the client.
The client hosts the user interface(UI) while the server hosts the business logic and database.
Advantages:
 This architecture has a clean separation of concerns between the client and server.
 The server becomes overloaded with many client requests.
 It is easy to manage, and the data can be easily delivered to the client.
Disadvantages:
 Clients systems can get a virus or any malicious scripts if any are running on the server.
 Extra security must be added so that the data does not get spoofed in between the
transmission.
 The main problem can be server down. When the server is down, the client loses its
connection and will not access the data.
Two-Tier Architecture
The two-tier architecture have consist of mainly two components:
1. Client layer: It consists of the web browser, mobile application, or the other UI that
user interacts [Link] front-end client makes requests to the server.
2. Server layer: It handels both the application logic and data storage/[Link]
single back-end server acts as a both the application server and the database server.
Advantages:
 It is simple to develop and deploy
 The client only communicates with one backend system
 All data logic and validation is handled on the server
Disadvantages:
 The server has to handle client requests, business logic and data storage. This can result
in performance bottlenecks.
 Scalability is limited since it is not easy to scale client and data tiers independently.
 Less flexibility since presentation and data logic are coupled on the server side.
Three-Tier Architecture
The three-tier architecture is best architecture to develop a good E-commerce site. In three-
tier architecture we seprates database and server that eliminate the problems we found in two-
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tier architecture. Three-tier architecture separates the presentation(UI), business logic and
data storage layer into three distinct tiers.
 Client tier: Client tier is frontend layer consisting of components like a web browser,
mobile application or other interfaces. This layer sends the users request and displays the
response of server.
 Middel tier: This application server layer handles all the business logic and
computational tasks. It receives requests from the client, communicates with the database
to get or update data,performs calculations and other application specific tasks, and passes
results back to the client.
 Data tier: This backend layer consists of the database servers that store and manage
data. It can be a relational database like Oracle or a NoSQL database like MongoDB. The
application server uses protocols like JDBC, ODBC to interact with this database tier.
Advantages:
 Separation of concerns between tiers makes application modular, flexible and easier to
maintain.
 Each tier can scale independently to handle increasing loads.
 Web server can connect to multiple app servers, which in turn can connect to multiple
database servers, allowing high scalability.
 Supports redundancy and failover capabilities for high availability.
Disadvantages:
 It can introduce complexity into a project. Managing three separate layers (presentation,
application, and data) can be challenging, especially for small-scale applications, and it
might lead to increased development and maintenance costs
 The additional layers can introduce performance overhead. Each request or transaction
has to pass through the different tiers, which can slow down the system, particularly if
there‘s a lot of data to be transferred between layers
 Scaling can be more challenging in a three-tier architecture. While it‘s possible to scale
each layer independently, it often requires significant effort and resources to ensure that
the system scales seamlessly
 Communication between layers can introduce latency in the system. When requests and
responses need to traverse multiple layers, it can result in slower response times
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Web based Ecommerce Architecture

Web-based E-commerce is one of the fastest-growing segments of the technology that defines
the business strategy. Web-based E-commerce provides easy and better communication
between geographically separated buyers and sellers. E-commerce is a way of doing business
by enabling better interaction among customers, business partners and business relationship
managers using electronic tools.

Planning for Web-based E-commerce architecture:

The basic idea of designing and building of any architecture is not only to describe the
computational steps but also the description of task. To design the architecture of a Web-
based system, the following points must be kept in mind:

 Understanding the various roles and the kinds of users to ensure that the maximum
users can get the maximum advantages of the system to accomplish their aim
Understanding the functions of the different modules of the system and their interfaces,
i.e. how the different functions perform a special task by exchanging information and
how the functions are related to each other in a single unit

 Recording the links of the transaction details of the business in a database. The
transaction details contain information such as transition type, purchased item
information, i.e. price, item identification and stock information.

 Specifying the trust model for the system: Every system must have at least an implicit
trust model that helps maintain the security of the system by providing the details of
the relationships between the components.

Understanding the roles of buyers and sellers

As a Web-based E-commerce system is used by different users for different purposes, the roles
of the buyers and the sellers need to be considered. The roles consideration helps you to
recognize the various operations in designing and analysing the architecture of-a Web-based
Ecommerce system that satisfies all the requirements of the business.
SHYLAJA M, Assistant Professor
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Analyzing the requirements of buyers and sellers:

The different requirements of buyers and sellers affect Web-based E-commerce applications.
.Web-based E-commerce systems include a client system, a merchant system, a transaction
system and a payment gateway. A client system is a computer system that is connected
directly or indirectly to the Internet and always used by buyers for browsing and purchasing
items. A merchant system is the computer system that contains the electronic catalogue of the
sellers of online goods or products.

Resolving the issues in Web-based E-commerce:

Before designing an Internet-based E-commerce application, a developer must consider the
various issues that will arise if the problems are not handled on time. Security is a very
important aspect of any Web application; therefore, if a developer does not consider points of
security, the application might fail to deliver the desired services to its full potential.
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MODULE II – CONSUMER ORIENTED E-COMMERCE

Electronic Retailing (E-Tailing)

Electronic retailing (E-tailing) is the sale of goods and services through the internet. E-tailing
can include business-to-business (B2B) and business-to-consumer (B2C) sales of products
and services.

E-tailing requires companies to tailor their business models to capture internet sales, which
can include building out distribution channels such as warehouses, internet webpages, and
product shipping centers.

Types of Electronic Retailing (E-tailing)

Business-to-Consumer (B2C) E-Tailing
Business-to-consumer retailing is the most common of all e-commerce companies and the
most familiar to most Internet users. This group of retailers includes companies selling
finished goods or products to consumers online directly through their websites.

Business-to-Business (B2B) E-tailing

Business-to-business retailing involves companies that sell to other companies. Such retailers
include consultants, software developers, freelancers, and wholesalers. Wholesalers sell their
products in bulk from their manufacturing plants to businesses.

The 7 main types of e-tailing (with examples)

There are a wide range of e-tailing businesses and yours is likely to fall into one of the following
seven categories:

1. Online retailers - independent ecommerce apps and websites like ASOS, Target and Walmart
2. Marketplaces - online platforms that bring multiple sellers and buyers together in one place,
including Amazon, eBay and Alibaba
3. Coupon providers - e-tailers offering limited-time sales events with discounted prices on
specific products like Groupon and Woot
4. Subscription-based model - e-tailers providing products that customers pay recurring fees for,
like Dollar Shave Club or HelloFresh
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5. Social commerce - e-tailers using social media channels like Instagram, Facebook and
Pinterest to sell their products
6. Auction sites - e-tailers using eBay to sell their products in a specific time frame via a
bidding process
7. Online classifieds - e-tailers enabling individuals and businesses to list products or services
for sale and connect with them directly, like Craigslist and Gumtree

How does e-tailing work?

Most e-tailing businesses are powered by online selling platforms that facilitate the selling and
distribution of their products to consumers. Here‘s how the process typically works:

1 - Create an online store

If you want to become an e-tailer, you‘ll need to create your own online store. This could be a
website, a mobile app or you could create both to ensure both desktop and mobile users are
catered for.

2 - Upload (and manage) your inventory

Once you‘ve created your online store, it‘s time to fill its shelves. Uploading product images
and descriptions while attaching associated pricing information is the first port of call. This
will all be displayed in a user-friendly product catalogue that makes it easy for customers to
browse, see other customer reviews and make purchases. In-built inventory management tools
will then help you monitor your stock levels and update product availability, ensuring you don‘t
undersell or oversell items.

3 - Enable secure payments

By providing a range of secure payment options, including debit and credit card as well as
mobile payments like Google Pay and Apple Pay, potential customers are less likely to abandon
their carts.
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4 - Fulfil customer orders

You have a number of options when it comes to fulfilling customer orders. Instead of physically
holding inventory in storage, many retailers opt for a dropshipping business model. This means
you only have to display and sell the items, while a third party fulfils the orders, taking care of
packaging and shipping. Of course, this comes at a price, but it is widely regarded as a more
cost-effective option than investing in your own storage facility, particularly in the early stages
of your business venture.

5 - Provide customer support

Whether through email, live chat or phone support, you need to provide customer assistance
for order-related issues, while handling customer [Link] should think about automating
your returns to free up your own time or that of your customer service team, as these will
account for lots of the enquiries you deal with.

6 - Create a digital marketing strategy

To attract people to your online store, you can choose from a wide range of strategies. Chief
among these are:

 Search engine optimization (SEO) - a free marketing strategy that helps your products appear
towards the top of the search engine results page, encouraging conversions

 App store optimization (ASO) - a free marketing strategy that helps your app gain visibility
on mobile app stores, encouraging downloads

 Email marketing - a free marketing strategy that allows you to send offers and promotions
directly to your customer base
 Display advertising - a paid marketing strategy that gets your products in front of your target
audience on social media, encouraging conversions
 Influencer marketing - a paid marketing strategy that leverages the profiles of trusted
individuals in your niche to sell your products
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While you should test several of these options, it's likely that your target audience will respond
to some channels better than others. Once you work out what these are, you can dedicate more
budget to them and less to ineffective channels.

7 - Analytics and optimization

Once your business starts generating revenue, it‘s important to use analytics to improve your
performance. E-tailing platforms provide you with this, including customer behaviour insights
as well as historical and real-time internet sales dataThis allows you to understand what your
best and worst-performing items are, forecast future demand and create a more targeted online
marketing strategy.

Key benefits of e-tailing

Although we covered some of the key benefits of e-tailing in the section above, here are six
key takeaways:

1. Global reach - because e-tailing uses the internet, it overcomes the geographical barriers
involved in traditional retailing
2. 24/7 availability - online stores have no set business hours, meaning customers can shop at
their convenience
3. Cost efficiency - with e-tailing, you don‘t need a brick-and-mortar store and you can
leverage dropshipping to keep order fulfilment costs down
4. Data analytics - make it easier to understand user behaviour, anticipate seasonal demand,
optimise customer experience and, ultimately, increase online sales
5. Expanded product variety - because you don‘t need to stock physical products as an e-
tailer, you can offer a wide range of products
6. Targeted marketing - using customer data analytics, you can understand your target
demographics and create marketing campaigns personalised to them

Traditional Retailing
Traditional retail in India refers to the practice of selling products or services through physical
stores, such as mom-and-pop stores, Kirana stores, bazaars, and weekly markets. These stores
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are typically small and family-owned, and they offer a limited range of products. They are often
located in residential areas and cater to the needs of the local community.

Kirana stores: Kirana stores are small, neighborhood grocery stores that sell a variety of food
items, household goods, and other necessities. They are often family-owned and operated, and
they play an important role in the daily lives of many Indians.

Weekly markets: Weekly markets are held in different parts of the city on a weekly basis.
They sell a variety of goods, including fresh produce, meat, fish, and other food items. Weekly
markets are a popular place for people to buy their groceries and other household items.

Street shops: Street shops are small, open-air shops that line the streets of many Indian cities.
They sell a variety of goods, including clothing, jewellery, souvenirs, and other items. Street
shops are a popular place for tourists to buy souvenirs and other items.

Hawkers: Hawkers are street vendors who sell a variety of goods, including food, drinks, and
other items. They often move around from place to place, and they are a common sight in many
Indian cities.

Public distribution system: The public distribution system (PDS) is a government-run

program that provides essential food items to low-income households. The PDS operates
through a network of ration shops, which are small, government-run stores that sell subsidized
food items.

Electronic Retailing (E-tailing)

Electronic retailing (e-tailing) is an internet-based sales platform where consumers are able to
buy and sell goods online directly from a business without physically inspecting the goods.
When retailing is done completely online, organizations are faced with a plethora of different
challenges and difficulties when constructing their business model.
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1. Business-to-Business (B2B) E-tailing

Business-to-business (B2B) e-tailing occurs when a business purchases a product or service

from another business‘s website, for its own use or to use as a component in its own products.
The business model differs in B2B transactions when conducted online because fast shipping,
quality, and price become increasingly more prominent.

2. Business-to-Consumer (B2C) E-tailing

Business-to-consumer (B2C) e-tailing transactions are when a consumer buys a product or

service from a business‘s website, such as shoes off a sports apparel company‘s website. The
business model differs in B2C transactions when conducted online because consumers are very
demanding and expect fast delivery and guarantees that the product‘s quality matches the
online description.

Types of Electronic Retailing (E-tailing)

There are two main types of businesses that offer e-tailing:

1. Pure Play E-tailers

Pure play e-retailers are the types of business that only offer e-tailing and do not operate any
sort of physical stores that customers can walk into. Examples of pure play e-retailers are
businesses such as Amazon, Ali Express, Ali Baba, and drop-shipping businesses.

2. Brick and Click E-tailers

Brick and click e-tailers are businesses that offer both e-tailing and maintain physical brick-
and-mortar stores that customers can shop [Link] every brick-and-mortar business uses
some form of e-tailing but more prominent brick and click e-tailers that offer exceptional
service include Apple, Foot Locker, and Sport Chek.

E-tailing Challenges

When operating a segment of a business completely online, there are a number of challenges
that businesses face and seek to overcome. They include:
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 Some target consumers lack access to the internet

 Complexity in conducting business completely online
 Hackers will attempt to gain consumer information
 High return rate because of lack of physical examination sizing of the good
 Decrease in experience compared to brick-and-mortar shopping
 High costs associated with maintaining a website
 Need for warehousing
 Need for a customer support team for product returns and complaints
 E-tailing legal concerns

Advantages of online retail

The benefits of retailing online include:

 Easy access to market - in many ways the access to market for entrepreneurs has never
been easier. Online marketplaces such as eBay and Amazon allow anyone to set up a
simple online shop and sell products within minutes. See selling through online
marketplaces.
 Reduced overheads - selling online can remove the need for expensive retail premises
and customer-facing staff, allowing you to invest in better marketing and customer
experience on your e-commerce site.
 Potential for rapid growth - selling on the internet means traditional constraints to
retail growth - eg finding and paying for larger - are not major factors. With a good
digital marketing strategy and a plan a scale up order fulfilment systems, you can
respond and boost growing sales. See planning for e-commerce.
 Widen your market/export - one major advantage over premises-based retailers is the
ability to expand your market beyond local customers very quickly. You may discover
a strong demand for your products in other countries which you can respond to by
targeted marketing, offering your website in a different language, or perhaps partnering
with an overseas company. See basics of exporting.
 Customer intelligence - ability to use online marketing tools to target new customers
and website analysis tools to gain insight into your customers' needs. For advice on
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improving your customer's on-site experience, read how to measure your online
marketing.
Disadvantages of online retail
Some negatives of online retail include:

 Website costs - planning, designing, creating, hosting, securing and maintaining a

professional e-commerce website isn't cheap, especially if you expect large and
growing sales volumes. See common e-commerce pitfalls.
 Infrastructure costs - even if you aren't paying the cost of customer-facing premises,
you'll need to think about the costs of physical space for order fulfilment, warehousing
goods, dealing with returns and staffing for these tasks. See fulfilling online orders.
 Security and fraud - the growth of online retail market has attracted the attention of
sophisticated criminal elements. The reputation of your business could be fatally
damaged if you don't invest in the latest security systems to protect your website and
transaction processes. See e-commerce pitfalls - security weaknesses.
 Legal issues - getting to grips with e-commerce and the law can be a challenge and
you'll need to be aware of, and plan to cope with, the additional customer rights which
are attached to online sales. See the law and selling online.
 Advertising costs - while online marketing can be a very efficient way of getting the
right customers to your products, it demands a generous budget. This is especially true
if you are competing in a crowded sector or for popular keywords. See pay-per-click
and paid search advertising.

Key Success Factors

1. Brand name
Create a memorable brand name: Like Amazon, eBay, Flipkart, etc., your business
name and domain name should be simple (maybe just one word) and catchy. It should
be easy to remember and pronounce. The reason is, most of the customers want to shop
the things in brand stores. Therefore, choosing a memorable brand name is the key first
step in starting the ecommerce business.
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2. Design of the store

Attractive design: When it comes to the look and appearance of the storefront, the
design should entice the customers. You have to build the stores with the latest features
and display the array of products in an aesthetically pleasing manner.

Create an easy-to-use interface: The user interface is the amazing thing that draws
the visitors‘ attention. You can design the store in such a way that makes customers find
products easily and complete the purchase in a short period of time.

3. Search Engine Optimization (SEO)

Make your site SEO-friendly: You have to build a website that is search engine
friendly as it helps you rank top position in the search engines. For example, Purchase
Commerce is an SEO-friendly ecommerce platform that makes it easy to write a detailed
product description, also allowing its visibility in search engines when someone
searches for those products.

Use relevant keywords: You can use tools like Keyword Planner
and UberSuggest to figure out the long tail purchase intent keywords for your
store. Using these keywords in the product description will increase its visibility in
search engines.

4. Multichannel marketing
Promote on Social Media: As per stats, there are 3.2 billion social media users around
the world. Hence, you can use this excellent opportunity to advertise your
store. Create a Facebook and Instagram business page can boost your brand’s online
presence.

Content marketing: Content marketing is one type of ecommerce strategy where you
can acquire new buyers. Creating content about products and publishing them on your
web page is an added advantage to your site. Also, making a YouTube video about the
product review helps in getting more traffic to your online store.
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5. Personalized buying experience

Customer Satisfaction is the key: Customer satisfaction is the main thing to boost your
business globally. Every new customer is important for your business; therefore, you
should satisfy all the customers‘ needs.

Make the customer work simple: Always don‘t make the customer confused about
your product. You should make it clear what your business website actually provides.
Hence, display all the details in a well-defined way. Also, your site should have
multilingual support if you want to develop your business globally.

6. Multiple payment methods

In online shopping, 75.6% is the average rate of shopping cart abandonment. To avoid
this, you can provide multiple payment options in your store.

Online payment: The online money transactions are becoming popular now and buyers
are familiar with the net banking payment method. You can provide options like credit
card and debit card transaction along with the net banking to don‘t lose out any
customers. You can even offer your store‘s wallet to pay the amount.

7. Easy check-out process

Add savelist buttons: ‗Add to Cart‘ and ‗Add to Wishlist‘ buttons are primary features
in your store. These buttons aid customers to add their desired products. You can make
them mostly red color to make it attractive.

Single page check-out: To save the time of your buyers, you can make a one-page
checkout option. The various segments like personal details, billing statements,
shipping information are all given in the single page. Hence, buyers can quickly check-
out their products.

8. Customer service:
Provide customer service: The first experience is the best experience. So, buyers can‘t
forget the first conversation they had with your store. Therefore, providing service to
customers is one of the best ways to improve the customers‘ trust in your business.
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Get regular feedback: The customers who are disappointed with your store will give
more negative reviews to others when compared to satisfied people who had a
good experience. Therefore, taking into account the customer‘s feedback, you have to
improve the quality of the store.

E-Commerce Retail Models

1. Business to Consumer (B2C)

This is the most common retail model in the traditional shopping world and continues to be so
for online retailers. Here, the retailer is structured as a business (company, sole trader,
partnership, or some other valid type) and sells goods to end users (consumers).
2. Business to Business (B2B)
In many ways, B2B eCommerce retailers are similar to their B2C counterparts, except they
primarily sell to other businesses rather than consumers. We have previously examined some
excellent examples of successful B2B businesses.
3. Business to Business to Consumer (B2B2C)
Although B2C is the most common online retail model, B2B2C better represents the traditional
model. This effectively combines B2B and B2C in one process and caters to firms engaged in
vertical integration, i.e., they operate in more than one stage of a distribution chain.
4. Business to Government (B2G)
Some businesses operate in the relatively narrow niche of supplying goods and services to the
various levels of government. Depending on your country, this could range from providing a
few goods to a local council to having a significant contract to supply products to a division of
the national/federal government.
5. Consumer to Business (C2B)
Although we typically think of businesses as the sellers of goods and services, there are a few
exceptions where consumers are the sellers. For example, freelancing has become
commonplace recently, where ordinary people sell their services to businesses. In addition,
there are marketplaces, such as Upwork and Fiverr, that specialize in matching consumer
suppliers of services with business customers.
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6. Consumer to Consumer (C2C)

Another standard eCommerce retail model that many people miss is C2C. A typical example
is somebody listing goods on online marketplaces like Craig‘s List, eBay, or Facebook
Marketplace. Often the marketplace is the only business involved in these transactions – the
other participants, buyers and sellers, are consumers engaging in one-off transactions.

Features of E-Retailing

1. User-friendly structure- User-friendly access is one of the most important e-commerce

features that clients look for in an e-commerce website. Customers will switch to other online
retailers if they have trouble using your websites or can‘t find what they‘re looking for.

2. Global reach- E-commerce, as I already mentioned, is everything. Being everywhere makes

it incredibly practical for us, the users. You can live in New York City and shop for products all
over the world. Because the goods or service is available from anywhere, the customer is wide
and the business grows as a result.

3. Information Density- Rich information is made available to the buyer before, during, and
after the purchase of a good or service thanks to e-commerce. These data are better in quality
and less expensive to give and receive.

4. Customer Reviews- Create a section on the online store‘s website where customers can read
product reviews. Reviews are essential for any online business because clients would not have
the opportunity to actually check a product; instead, they would likely rely on reviews left by
other customers.

5. Secure Payment- Make sure to make the checkout stage as simple as possible for the clients
by including a variety of online payment options in the shopping cart in order to increase your
chances of closing the transaction during the primary checkout process. Platforms should have
secure payment gateways for customers to make payments securely.
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6. Mobile Responsiveness- To improve your conversion rate and keep clients satisfied, make
sure your website design is automatically adjusted for the size and form of phones. Mobile
responsiveness to reach more people

7. Universal Standards- Universal standards suggest that your website runs on established
platforms using accepted methods and processes. E-commerce supports a single set of
universally accepted worldwide standards. Everywhere, this is done.

E-Services

E-services are the electronic service. As the name suggests, E-services is nothing but doing our
works using the Information and Communication Technologies (ICTs) in different arenas. It
has become a trend in the fastly moving society. It simplifies the human works. it is usually
done with the help of the Internet.

E-BANKING SERVICES- E-banking is an active area. In the ancient days, the people had to
walk to a long distance to use the banks. They also had to stand in a long line topay or withdraw
money. In that case, E-banking acts as a rescue. It saves the people‘s time and energy. They
can use the E-banking services such as the Automated Teller Machines (ATMs) or the debit or
credit cards to pay and withdraw the money. E-lockers are also introduced to provide safety to
the customers wealth.

E-GOVERNANCE- A key component of the Digital India initiative is providing e-

governance which is aimed at promoting through e-Kranti or electronic delivery of services.
Under this, the central and state governments will pull Information and communication
technologies to grant an integrated services on an end-to-end basis. In fact, the rural e-
governance applications implemented in the recent past have demonstrated the significance of
Informations and communication Technologies in the alarmed domains of rural development.
Some of the recent initiatives that have gone live and are expected to significantly affect rural
areas are:
E-lockers, E-health care services, agriculture, education etc. Moreover, the cyclone announcing
systems allows to get to know the weather and they help in taking necessary precautions during
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the times of cyclone. Similarly, the web cameras allow the governments to prevent robbery or
any other offensive acts.

E-BILL PAYMENT SERVICES- E-bill payment services act as an important element in the
digital world. In the older days, our ancesters had to walk to a long distance to pay Electric or
water bill. It took a considerable amount of time. Now the condition has been changed due to
the advent of the E-services. The bills can be payed with the help of E-bill payment services.
They can use their internet to pay their bills from home. Credit and debit cards are used to pay
the bills. Similarly, tickets for buses, trains or flights can be booked through online services. It
simplifies the act of travelling. Over all, the E-bill services reduce the time and energy of human
beings.

E-FOOD SERVICES- It is the latest development in the digital era. It is an app developed by
two men while travelling. The E-food app is available in the playstore. If wehave this app in
our mobile phones, we can order the food that we want while we travel through this app. The
food from the nearby branch will be delivered in the railway stations or bus stands. We need
not search for a guaranteed food while travelling. Moreover, the food can also be ordered
through the system of doordelivery. All we have to do is that calling up them and ordering the
food we want. They will be. delivered from the nearby branch at a minimum time. The
Dominos is very popular for its e-food services

E-SHOPPING- E-shopping has become a trend in the twenty first century. It is the easiest way
of purchase. It is true that the world is moving at an air‘s speed. Now-a-days, nobody spends
much time for shopping except a few. It is because, they have many works to do and have many
obligations to fulfill. In this case, they prefer E-shopping. It is very easy and simple. They can
order the things or materials by looking their pictures online. The rate for each material will
also be put near the picture. If they like to buy them, they can place the order and can pay the
money through E-banking. They can also pay the amount as cash on delivery. The mostly used
E-shopping sites include: Amazon, Flipkart, shopcluse etc. This E-shopping provides much
options within a very lesser time and with a click of a button.
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E-PORTALS- E-portals are used extensively to connect to various sites. They take us to
various options for the subject we search for. It saves the time of searching. It simplifies the
human work. It provides the informations about all the fields include: science, ethics,
philosophy, economy, mathematics, literature, arts, social works, etc. therefore, it consumes
much time.

HEALTH CARE- There is currently a huge demand-supply gap in the medicare section and
a dearth of 1.5 million-2 million doctors. In addition, as per estimates, around 65 per cent of
people in rural India do not have access to necessary medicines. But then, technology can play
an crucial role in bridging this gap. The e-health initiatives envisaged under Digital India
involve providing online medical consultation, integrating patients‘ electronic health records
in a digital locker, online medicine supply and pan-Indian exchange of patient information.

E-EDUCATION

Digital India intiative is the vital important in information and communication system. Both
the central and state government idea is to connect broadband connections in all school
andimportant places. In addition, free Wi-Fi will be granted in all secondary and higher
secondary schools. Moreover, a programme on digital literacy will be implemented at the
national level. Massive open online courses (MOOCs) will be developed and leveraged for
education.

E-Libraries- Libraries play a significant role to collect information. They are the important
providers of knowledge. In the ancient days, the people especially the students and the teachers
had to walk to libraries and search for the books. Now-a-days, the condition has been changed
to a great extent. There are many E-libraries. Some of them include:
[Link],[Link], [Link] etc. these libraries provide many
books online.

Web Enabled Services

Web-enabled services refer to online services that enable customers to complete tasks or
access information remotely.
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Business Matchmaking Services

Business matchmaking services help foreign companies identify and connect with local
partners in international markets. Factors influencing the choice of the ideal local partner
varies; they may share common business interests with the foreign company, offer
complementary expertise and services, and/or provide key technology. Essentially, the
matchmaking process at the market entry stage is about the foreign company strategizing for
business growth and expansion in the local market.

Selling Information Products Online

Pick Which Information Product You Want to Sell

For the majority of history, information has been distributed in one of two ways – via written
word, such as books, or via spoken word, such as lectures. These methods made the distribution
of information limited and often only available to the ‗elite‘. More recent technology has
offered the world significantly easier ways to record, digest, and distribute information.

There are now countless ways to sell information online. Some of these include:

1. Podcasts

2. Webinars

3. eBooks

4. Audiobooks

5. Online Courses

6. Coaching Sessions

7. Membership Sites

8. Templates

9. Checklists

10. Reports
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Which of these methods you choose will depend on several factors, such as the type of
information you are selling, your preferred communication style, and the audience you‘re
targeting with your information products.

Create Your Information Product

So, how do you pick the information product you‘re going to create and sell?

Your own experience and expertise are by far the best place to start when considering this
question. This is especially true if you hold information in a niche that others are keen to learn
and expand their knowledge about. A few popular information niches include:

 Fitness

 Relationships

 Lifestyle

 Finance

 Self-Improvement

 Travel

 Food

 Languages

Once you have picked your niche, you then need to decide exactly how you‘re going to deliver
the information.

Determine Your Price Point

Pricing information products can be a little more tricky than pricing physical products. There
are several factors that you need to consider, such as how much time it will take to create the
product, how much your time and expertise is worth, how many copies of the information
product you expect to sell, and what your target audience would be willing to pay.

Find a Name for Your Business

Picking the perfect name for your business can be tricky.

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When picking your name ask yourself a few questions such as:

What name is relevant to my niche?

What name is different from my competitors?

Am I personally recognized for my expertise? If so, should I use my own name to sell my
products?

Once you have decided on a name you will want to register it to ensure that others can‘t use it.
You will also need to check if your specific niche requires you to follow any special regulations
or obtain any special licenses or permits before you can start selling.

Get Online

You have your product, you have a great business name, and you are ready to sell. Now it’s
time to get yourself online. There are several options when it comes to selling information
products online including marketplaces, social media, and via your own online store.

Marketplaces like Amazon and eBay offer a great way to reach a wide audience with your
information products.

You may also use more specialist marketplaces that offer a more tailored audience – these
platforms include the likes of Udemy, Skillshare, and Teachable.

Although marketplaces are a great way to reach your target audience, you will need to pay a
commission on sales or a fee. You also have little control over the platform itself and are
vulnerable to unfavorable changes the platform owners may make.

Social media is another good place to start selling your information products.

Promote Your Website

There are countless ways that you can promote your information product website – here are a
few tried and tested methods to get you started:
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 Social media – post regular, insightful content that helps position you as a thought
leader

 Email newsletter – regularly send out emails to your list with relevant content and
even special deals

 Paid ads – target your audience with paid ads on platforms such as Facebook,
Instagram, LinkedIn, and Google

 Blogs and webinars – write helpful blogs and host engaging webinars that show your
knowledge in the subject area

Grow Your Online Store

Once you successfully sell online products, it‘s time to consider how to grow your business.
Doing this will involve following best practices and learning from your experiences.

For example, it can be beneficial to set up a solid customer support strategy to delight your
customers whenever they need help. You can also collect customer feedback in order to find
the best way to improve, and monitor key metrics to assess how well the actions you are
taking are working.

E-Entertainment

Nowadays almost everyone needs daily entertainment, the goal is different there is to eliminate
saturation, get humour, relieve stress, and can even be a means of education. Entertainment can
take various forms, such as video games, music, and video music. Until now, various kinds of
entertainment are very popular with all circles. Over time, entertainment presents its latest
innovations in the form of electronic entertainment. Then what electronic entertainment is
meant is downloading, playing, or enjoying entertainment media over the internet. Electronic
entertainment can be shortened to e-entertainment. The innovation of e-entertainment is the
ease to get entertainment anywhere and anytime.

e-Auction
An eAuction is a transaction between sellers (the auctioneers) and bidders (suppliers in the
business-to-business scenarios) in an electronic marketplace. It can occur business-to-business,
business-to-consumer, or consumer-to-consumer, and allows suppliers to bid online against
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each other for contracts against a published [Link] kind of environment encourages
competition, resulting in goods and services being offered at their current market value.

B2B (business to business) E-Commerce

B2B (business-to-business) is a type of commerce involving the exchange of products,

services or information between businesses, rather than from a business to consumer (B2C).
A B2B transaction is conducted between two companies, such as a wholesaler and an online
retailer. In most B2B commerce, each organization benefits in some way and typically has
similar negotiating powers. Nearly all B2B commerce occurs on the internet as e-commerce.
Transactions are conducted via different categories of websites, including the following:

 Company websites. This is the most straightforward model of B2B transactions. A

company uses its own website to sell goods and services directly to its business clients.
Sometimes, a company website uses a secure extranet to provide clients with exclusive
access to product catalogs or price lists.

 Product supply and procurement exchanges. These online exchanges allow a

company's purchasing agent to shop for supplies or raw materials from multiple vendors,
submit requests for proposals (RFPs) and, in some cases, bid on products. Also known
as e-procurement sites, these exchanges can serve a range of industries and be tailored to
niche markets.

 Specialized or vertical industry portals. These portal sites provide specialized

and vertical markets with a more targeted approach than procurement sites. They might
also support buying and selling, and provide information, product listings, discussion
groups and other features for industries such as healthcare, banking and transportation.

 Brokering sites. These sites act as an intermediary between service providers and
potential customers that need their services, such as leasing equipment or services.

 Information sites. Sometimes known as infomediaries, these sites provide information

about a particular industry to companies and their employees. Information sites include
specialized search sites and those of trade and industry standards organizations.
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How does B2B work?

In a B2B transaction, one business, often referred to as a vendor, sells products or services to
another business. Typically, a sales team or department conducts these transactions, rather
than the entire enterprise or a single person. Occasionally, one person on the buyer side
makes a transaction in support of the company's business goals. Conversely, some B2B
transactions involve the entire company's use of a product, such as office furniture, computers
and software licenses. For larger or more complex purchasing decisions, a buying committee
handles the B2B product selection and decision-making process. These committees typically
include the following personnel:

 A business decision-maker, such as the person responsible for the budget.

 A technical decision-maker who evaluates the capabilities of the prospective products.

 Influencers, such as individual users and employees who provide input on how the
product will be used.

Why is B2B important?

Every business needs to purchase products and services from other businesses to launch,
operate and grow. B2B commerce supports these activities. A company uses B2B suppliers to
procure products and services, such as the raw materials they need for production, office
space, office furniture, computer hardware and software. The food that companies stock in
their kitchens and the signs displayed on their office buildings are also examples of products
and services purchased from suppliers.
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MODULE III – ELECTRONIC DATA INTERCHANGE

EDI (Electronic Data Interchange)

EDI, which stands for electronic data interchange, is the intercompany communication of
business documents in a standard format. The simple definition of EDI is that it is a standard
electronic format that replaces paper-based documents such as purchase orders or invoices.

Benefits of EDI

EDI transactions are essential to B2B processes and continue to be the preferred means to
exchange documents and transactions between businesses both small and large. EDI
technology delivers five key business benefits through automation and B2B integration:

 EDI technology saves time and money through the automation of a process that was
previously manually run with paper documents.
 EDI solutions improve efficiency and productivity because more business documents
are shared and processed in less time with greater accuracy.
 EDI data transfer reduces errors through rigid standardization, which helps to ensure
that information and data are correctly formatted before they enter business processes
or applications.
 Integration of EDI improves traceability and reporting by allowing electronic
documents to be incorporated with various IT systems, facilitating data collection,
visibility and analysis.
 Efficient EDI automation enables reliable product and service delivery for a positive
customer experience.
The future of EDI

 IoT sensors that are incorporated into a shipment‘s packaging and tied to periodic
EDI 214 messages to improve package condition visibility in near real time.
 Blockchain technology underpinning EDI information flows for shipments to offer a
shared version of the truth that can quickly resolve and even avoid chargeback disputes.
 An AI agent that monitors all relevant events and information that are connected to a
shipment and can identify a noncompliant event. AI agents can also determine whether
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a reshipment is necessary, analyze the most efficient source of replacement, initiate a

new shipment and accept an authorized return.
Key components of EDI technology include:

1. Standards: Various standards govern the format and structure of EDI documents, ensuring
compatibility and interoperability between different systems. Common standards include ANSI
X12, EDIFACT, and XML-based standards like UN/CEFACT's XML.

2. Translation Software: EDI documents are typically transmitted in a structured format, such
as ASCII or XML, which needs to be translated into the appropriate format according to the
chosen standard. Translation software facilitates this conversion process.

3. Communication Protocols: EDI relies on secure communication protocols to transmit

documents between trading partners. Common protocols include AS2 (Applicability Statement
2), FTP (File Transfer Protocol), VANs (Value-Added Networks), and AS4.

4. Integration with Business Systems: EDI systems need to integrate seamlessly with existing
enterprise resource planning (ERP), supply chain management (SCM), and other business
systems to automate processes and streamline operations.

5. Data Mapping: Mapping involves defining the relationships between data elements in EDI
documents and the corresponding fields in internal business systems. This ensures accurate
interpretation and processing of the transmitted data.

6. Security Measures: EDI systems employ various security measures to protect the
confidentiality, integrity, and authenticity of transmitted data. This includes encryption, digital
signatures, user authentication, and secure communication protocols.

7. EDI VANs (Value-Added Networks): VANs are third-party service providers that facilitate
the exchange of EDI documents between trading partners. They offer value-added services
such as message routing, translation, and monitoring.

8. EDI Standards Maintenance Organizations: Organizations like ASC X12, UN/CEFACT,

and GS1 are responsible for maintaining and updating EDI standards to accommodate evolving
business requirements and technological advancements.

Overall, EDI technology plays a crucial role in improving efficiency, accuracy, and speed in
business-to-business transactions by replacing paper-based processes with electronic
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equivalents. It helps organizations reduce costs, eliminate manual errors, and enhance
collaboration with trading partners across various industries.

EDI standards

EDI standards are formats for EDI documents that specify what information goes where within
an EDI document. Your industry or trading partners determine which EDI standard you must
use. When information is missing or in the wrong place, the EDI document might not be
processed correctly.

There are two types of EDI standards:

 Proprietary standard - EDI standard developed for a specific company or industry.

This is also called a non-public or private standard.
 Public standard - EDI standard developed for use across one or more industries.

EDI communication protocols

One of the keys to exchanging EDI documents or messages lies in communication. The
procedure, or the techniques used to get the information from a sending EDI solution to a
receiving EDI solution, makes up the EDI messaging protocols. In the case of Electronic Data
Interchange, these have specific features and characteristics.

VAN – Value-Added Network

These are private networks for the specific exchange of EDI documents. Value-added networks
form a closed environment to which partners connect their EDI solutions for document
exchange.

This type of network offers high levels of security and evidence of delivery and processing of
EDI messages at destination. As these are private environments, in order to avoid leaving out
a certain number of strategic partners who are not connected to a specific network, the most
important networks in the world establish interconnection agreements. This makes it possible
to exchange EDI documents between partners from different VANs.
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EDICOMNet, the VAN developed by EDICOM, is a specific private communications service

that guarantees connectivity between connected users, as well as with partners outside the
network thanks to its interconnection agreements and multiprotocol capabilities.

AS2 – AS3 – AS4

AS stands for Applicability Statement. The number accompanying these letters is the version
of the communications protocol developed by the IETF (Internet Engineering Task Force).

This protocol was born in 2002 and is designed for the secure exchange of messages over the
Internet through https, with encryption and digital signature, to guarantee the privacy and
authenticity of the data sent and received.

AS2, AS3 or AS4 communications require messages to be transmitted through one AS

server and received by another AS server. The destination server must accept receipt of the
documents from that particular source. Both servers operate on the basis of specific rules that
include the issuance of send request and acceptance messages as a step prior to the transmission
of a document. They also require confirmation of final receipt when the EDI document arrives
at the destination server.

OFTP – Odette File Transfer Protocol

This communications protocol was developed in the 80s by the association linked to
the ODETTE automotive sector. It is now one of the most widely used in the industry for the
exchange of EDI documents, as well as other sensitive and large files such as engineering
specifications in CAD/CAM format.

The OFTP2 protocol went into production in 2010, providing more versatility and fortitude to
the communication system, with notable advantages such as:

 Increased data compression capacity.

 Communication security management through SSL/TLS, identification, signature,
encryption, etc.
 Management of large files (more than 500 Gb).
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OFTP communications require documents to be sent and received by servers using the same
protocol. It is necessary to configure, maintain and constantly manage these servers to properly
manage the multiple parameters involved in the transfer of these types of documents and
messages.

Implementing EDI
Step 1: Develop the organisational structure
Your first action is to ensure that you have access to the correct skills. Develop EDI
coordinators and teams that will drive the programme through your organisation.
Step 2: Undertake a strategic review
The business areas that benefit most from EDI deployment vary by organisation. A strategic
review identifies where EDI has greatest potential in your business.
Step 3: Conduct in-depth analysis
An accurate analysis of costs and projected payback when implementing EDI is essential.
Step 4: Develop a business-focused EDI solution
Selecting the correct EDI solution for your business requires an in-depth understanding of both
the technical and business issues – for you and your trading partners.
Step 5: Select the correct EDI network provider (VAN)
Most organisations find using an EDI provider makes the best business and financial sense.
Selecting the correct provider for your business is imperative.
Step 6: Integrate EDI with the business
How an EDI system is designed and developed depends on the amount of custom work required
and the amount of internal systems with which it needs to share data.
Step 7: Integrate data across the business
Most applications impose their own data structures. The data from internal and external
systems need to be analysed in order to ensure they translate into your EDI system.
Step 8: Undertake data mapping
To ensure the smooth flow of information between internal applications and trading partners,
documents need to be mapped to allow effective data transmission.
Step 9: Establish a pilot project
Before your EDI system goes live within your entire trading community, it is important to
select a small number of partners to test the system in ‗near live‘ conditions.
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Step 10: Roll out EDI to trading partners

The last action is to implement EDI across your trading partners. This should be achieved in a
staged manner that reflects your current business priorities

EDI Agreement:

It is a legal agreement formed between your firm and its trading partner. It regulates the
exchange of key business documents and will be formed as per ANSI X12 standards. All the
terms conditions for business documents‘ exchange among trading partners have been
mentioned in it.
EDI Security

An important aspect of EDI is the security of messages during exchange. It should be ensured
that the interchange of messages is reliable. Further aspects of security are:

Controls in the EDI Standards:-EDI standards include controls designed to protect against
errors in message and the corruption of message during the interchange.

Controls in the Transmission Protocol:- Transmission protocols include protection such as

longitudinal control totals in order to detect any corruption that occurs during transmission.
When the corruption of message is detected, the network system starts a retransmission without
the need for outside intervention.

Protection Against Tampering:- When there is a concern that the transmission might be
intercepted and modified, it can be protected by a digital signature. The digital signature is
designed to ensure that the message received is exactly the same as the message sent. It also
ensure that the source of message is an authorized trading partner and the message was not
altered during the transmission.

Privacy of Message:- In case, when the contents of the message are considered sensitive, the
privacy of the message can be protected during transmission by encrypting the
data. Encryption is the process of encoding messages or information in such a way that only
authorized party i.e. the trading partner can read it.
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Non-Repudiation:- One potential problem is that the recipient of the message might deny
having received it. Non-repudiation means to ensure that a transferred message has been sent
and received by the parties claiming to have sent and received the message is a way to guarantee
that the sender of a message cannot later deny having sent the message and that the recipient
cannot deny having received the message. Non-repudiation can be obtained through the use of
digital signatures, confirmation services and timestamps.

Electronic Payment System

An electronic payment system is a technologically-driven platform that enables the transfer of

funds electronically, allowing individuals and businesses to make online transactions securely
and conveniently. It leverages various digital channels, such as credit/debit cards, mobile
wallets, internet banking, electronic funds transfers (EFTs), and cryptocurrency, to facilitate
seamless money exchanges.

Benefits of Using Electronic Payment Methods

 Convenience: Electronic payment methods offer users the ease of conducting
transactions anytime and anywhere, reducing the reliance on physical cash or checks.
 Speed: Payments made through electronic systems are processed instantly, enabling
swift and immediate fund transfers, enhancing business operations and customer
satisfaction.
 Security: Robust encryption and authentication mechanisms in electronic payment
systems protect financial data, reducing the risk of fraud and unauthorized access.
 Cost-Effectiveness: Electronic payments often entail lower processing fees than
traditional payment methods, leading to cost savings for businesses and consumers.
 Enhanced Record-Keeping: Digital payment systems maintain detailed transaction
records, facilitating better financial tracking and reporting for businesses and
individuals.
 Global Accessibility: With electronic payment systems, cross-border transactions
become seamless, promoting international trade and enabling businesses to reach a
global customer base.
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 Eco-Friendly: By reducing the need for paper-based transactions, electronic payment

methods contribute to environmental sustainability and reduce paper waste.
 Contactless Options: The rise of contactless payment technologies offers hygienic
and secure payment alternatives, especially in the context of public health concerns.

Types of Electronic Payments

1. Credit and Debit Cards:
 Widely accepted for online and in-store purchases.

 Offers convenience, security, and easy tracking of expenses.

2. Mobile Payment Apps:

 Allows quick payments using smartphones or other mobile devices.

 Enables contactless payments and loyalty rewards integration.

3. Digital Wallets:
 Stores payment information securely for easy and fast transactions.

 Supports multiple payment methods in a single app.

4. Bank Transfers and Automated Clearing House (ACH):

 Directly transfers funds between bank accounts.

 Suitable for recurring payments and large transactions.

5. Online Payment Gateways:

 Facilitates secure online transactions for e-commerce businesses.

 Supports various payment options and provides fraud protection.

6. Cryptocurrencies:
 Offers decentralized, borderless, and secure transactions.

 Reduces reliance on traditional financial institutions.

7. Peer-to-Peer (P2P) Payment Apps:

 Allows individuals to send money directly to friends or family.

 Simplifies splitting bills and making small payments.

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8. Contactless Payment Cards:

 Enables quick and secure payments by tapping the card on a reader.

 Reduces physical contact during transactions.

9. Electronic Funds Transfer (EFT):

 Transfers funds electronically between different accounts.

 Used for various purposes, such as payroll and vendor payments.

10. Electronic Checks:
 Digitizes the process of writing and processing paper checks.

 Provides a secure and convenient alternative to traditional checks.

How Electronic Payments Works?

Authorization and Authentication Process

When a customer initiates an electronic payment, the process begins with the authorization and
authentication step. The customer provides their payment information, such as credit/debit card
details, through a secure online platform or a payment app.

Transaction Settlement and Clearing

After the payment is authorized, the transaction enters the settlement and clearing phase.
During this stage, the payment details are sent to the acquiring bank (merchant‘s bank) and the
issuing bank (customer‘s bank).

Encryption and Secure Transmission

Throughout the entire electronic payment process, data security is paramount. All sensitive
information, including card numbers and personal details, is encrypted to protect it from
unauthorized access during transmission.

Payment Gateways and Processors

The payment gateway is an intermediary between the merchant‘s website/app and the payment
networks. It securely transmits the customer‘s payment data to the payment processor for
further processing.

Transaction Completion and Notification

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Once the payment processor confirms the successful completion of the transaction, a
confirmation message is sent to the payment gateway.

Ensuring security in electronic payment

1. Encryption and Tokenization
 Encryption involves converting sensitive data into an unreadable format during
transmission, ensuring that only authorized parties can decipher it. This prevents
unauthorized access to critical information during payment processing.

 Tokenization replaces sensitive data with unique tokens, which are used for
transactions. The actual data is securely stored in a separate, protected database,
reducing the risk of data breaches.

2. Two-Factor Authentication
 Two-factor authentication (2FA) adds an extra layer of security by requiring users to
provide two forms of identification before completing a transaction.

 This typically involves a combination of something the user knows (e.g., a password)
and something the user possesses (e.g., a unique code sent to their mobile device).

3. Fraud Detection and Prevention Measures

 Advanced fraud detection systems continuously monitor transactions for suspicious
activities. These systems use artificial intelligence and machine learning algorithms to
identify patterns indicative of fraudulent behavior.

 Additionally, businesses can implement rules-based systems that flag or block

suspicious transactions based on predefined criteria, reducing the risk of fraudulent
transactions.

4. Compliance with Payment Card Industry Data Security Standards (PCI DSS)
 PCI DSS is a set of security standards designed to protect cardholder data during
electronic payment processes. Compliance with PCI DSS is mandatory for all
businesses that handle credit card information.

 Adhering to these standards ensures that businesses have robust security measures in
place to protect customer payment data and maintain a secure environment for
electronic transactions.
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Regulatory and legal considerations

1. Consumer Protection and Data Privacy:
Consumer protection laws govern electronic payment transactions to ensure fair treatment and
safeguard consumer rights. Businesses must adhere to regulations that protect consumers from
fraudulent activities, unauthorized transactions, and data breaches.

Data privacy laws, such as the General Data Protection Regulation (GDPR), dictate how
businesses handle and protect customer data, ensuring that personal and financial information
remains confidential and secure.

2. Compliance with Payment Industry Standards:

Adherence to industry-specific standards, like the Payment Card Industry Data Security
Standard (PCI DSS), is crucial for businesses handling payment card information. Compliance
ensures the implementation of robust security measures to protect sensitive data and prevent
potential breaches.

3. International Regulations and Cross-Border Payments:

When conducting cross-border electronic payments, businesses must navigate various
international regulations and comply with the laws of the countries involved. Different
countries may have distinct rules for payment processing, currency conversion, and data
transfer.

4. Government Initiatives and Regulatory Updates:

Governments continuously review and update regulations related to electronic payments to
address emerging challenges and align with technological advancements. To remain compliant,
businesses must stay informed about regulatory changes and adapt their payment processes
accordingly.

Advantages and Disadvantages of Electronic Payment

Advantages of Electronic Payment
 Convenience: Electronic payment methods offer unparalleled convenience, allowing
users to make transactions anytime and anywhere with just a few clicks on their devices.
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 Speed: Electronic payments are processed in real time or within seconds, ensuring
swift and immediate fund transfers, unlike traditional payment methods that may take
days to clear.
 Security: Robust encryption and advanced security protocols protect sensitive
financial information, reducing the risk of fraud and unauthorized access.
 Cost-Effectiveness: Electronic payments often involve lower transaction fees than
handling and processing physical cash or checks, leading to cost savings for businesses
and consumers.
 Record-Keeping: Digital payment systems maintain detailed transaction records,
simplifying financial tracking and providing accurate and easily accessible payment
histories.
 Global Accessibility: Electronic payment methods facilitate cross-border
transactions, enabling businesses to reach a global customer base and participate in
international trade.
 Contactless Options: Contactless payment technologies offer hygienic and
convenient payment alternatives, especially when physical contact should be
minimized.
Disadvantages and Risks of Electronic Payment
 Security Risks: Despite strong security measures, electronic payment systems are
vulnerable to hacking, data breaches, and identity theft, potentially exposing customers‘
sensitive information.
 Technical Glitches: System failures or technical glitches in electronic payment
platforms can disrupt transactions and cause inconvenience to both businesses and
customers.
 Dependency on Technology: Electronic payment systems heavily rely on technology
and the internet. Any disruption in network connectivity or power outage can disrupt
payment services.
 Fraud and Scams: Cybercriminals continuously develop new methods to exploit
vulnerabilities in electronic payment systems, leading to fraudulent activities that can
harm businesses and individuals.
 Lack of Anonymity: Electronic transactions leave digital footprints, compromising
user privacy and anonymity compared to cash transactions.
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 Potential Fees: While electronic payments are generally cost-effective, some

transactions may incur additional fees, especially for cross-border transactions or
currency conversions.
 Limited Acceptance: In some regions or certain demographics, electronic payment
methods may have limited acceptance, which can inconvenience users who prefer or
rely on traditional payment methods.
Popular electronic payment systems
1. PayPal

2. Apple Pay

3. Google Pay (formerly Android Pay)

4. Samsung Pay

5. Amazon Pay

6. Phone Pay

7. Paytm pay

Need of Electronic Payment System

Electronic payment systems have become increasingly essential in today's digital economy for
several reasons:

1. Convenience: Electronic payment systems offer unparalleled convenience. Users can make
transactions from the comfort of their homes or on the go, without the need to carry physical
cash or visit a bank.

2. Globalization: With businesses and individuals operating on a global scale, electronic

payment systems facilitate transactions across borders seamlessly, eliminating the need for
currency conversions and reducing transaction costs.

3. Speed: Electronic payments are processed much faster compared to traditional payment
methods such as checks. This speed is crucial for businesses that require quick access to funds
or for individuals making time-sensitive payments.
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4. Security: While security concerns exist, electronic payment systems often employ
encryption and other security measures to protect users' financial information. Additionally,
electronic transactions leave a digital trail, which can help track and prevent fraudulent
activities.

5. Cost-Effectiveness: Electronic payment systems can be more cost-effective for both

businesses and consumers. For businesses, they can reduce the costs associated with handling
cash, such as counting and transporting it. For consumers, electronic payments can eliminate
fees associated with traditional banking services, such as ATM withdrawals.

6. Accessibility: Electronic payment systems provide access to financial services for

individuals who may not have easy access to traditional banking services. This accessibility is
particularly important in underserved or remote areas.

7. Facilitation of Online Commerce: With the rise of e-commerce, electronic payment

systems are indispensable for facilitating online transactions. They allow consumers to
purchase goods and services from anywhere in the world with ease.

8. Integration with Mobile Technology: The proliferation of smartphones has led to the
integration of electronic payment systems with mobile technology. Mobile payment solutions
such as digital wallets and mobile banking apps enable users to make payments using their
smartphones, further enhancing convenience.

9. Streamlined Accounting and Reporting: Electronic payment systems often come with
features that streamline accounting processes for businesses, such as automated transaction
tracking and reporting. This can save time and reduce the likelihood of errors.

Overall, electronic payment systems play a crucial role in modern economies by providing
efficient, secure, and convenient means of conducting financial transactions.

The study of electronic payment systems encompasses a broad range of topics related to the
mechanisms, technologies, security, usability, and implications of digital transactions. Here's
an overview of some key areas within this field:

Study of E-Payment System

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1. Payment Technologies: Understanding the different technologies that underpin electronic

payment systems is fundamental. This includes protocols such as HTTPS, SSL/TLS,
encryption methods, tokenization, Near Field Communication (NFC), QR codes, and various
types of electronic wallets.

2. Payment Models: Electronic payment systems can operate under different models, such as
online payments, mobile payments, contactless payments, peer-to-peer (P2P) transfers, and
more. Each model has its own set of protocols, security considerations, and user experiences.

3. Security: Security is a critical aspect of electronic payment systems due to the sensitivity of
financial data. Studies in this area focus on encryption techniques, authentication methods (like
biometrics or two-factor authentication), fraud detection and prevention, compliance with
regulatory standards (e.g., PCI DSS), and secure communication protocols.

4. User Experience (UX): UX plays a crucial role in the adoption and success of electronic
payment systems. Research in this area explores user interfaces, ease of use, accessibility, trust
factors, and the overall flow of transactions to ensure a smooth and intuitive experience for
consumers.

5. Regulatory and Legal Frameworks: Electronic payment systems are subject to various
regulations and legal frameworks, which may vary by region or country. Researchers examine
topics such as data protection laws, consumer rights, liability issues, and compliance
requirements to ensure that payment systems operate within legal boundaries.

6. Economic Implications: The adoption of electronic payment systems can have significant
economic implications at both micro and macro levels. Studies in this area may investigate
factors such as transaction costs, efficiency gains, financial inclusion, the impact on traditional
banking systems, and the emergence of new business models.

7. Cross-border Payments and International Standards: With the globalization of

commerce, there's a growing need for electronic payment systems that support cross-border
transactions. Research in this area focuses on interoperability, currency exchange mechanisms,
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compliance with international standards (e.g., ISO 20022), and addressing challenges related
to currency conversion and regulatory differences between jurisdictions.

8. Emerging Technologies: As technology evolves, so do electronic payment systems.

Researchers explore emerging technologies such as blockchain, distributed ledger technology
(DLT), cryptocurrencies, and Central Bank Digital Currencies (CBDCs) to assess their
potential impact on the future of payments.

9. Social and Ethical Considerations: Electronic payment systems also raise social and
ethical considerations, including issues related to privacy, surveillance, financial exclusion,
digital divide, and the societal impact of cashless economies. Research in this area aims to
address these concerns and ensure that electronic payment systems promote equity and
inclusivity.

10. Case Studies and Adoption Patterns: Analyzing real-world case studies and adoption
patterns provides valuable insights into the success factors and challenges associated with
electronic payment systems. Researchers may examine specific industries, geographic regions,
or demographic groups to understand how different factors influence adoption rates and usage
behaviors.

Overall, the study of electronic payment systems is interdisciplinary, drawing on insights from
fields such as computer science, economics, law, psychology, sociology, and beyond. It's a
dynamic and evolving field driven by technological innovation, regulatory changes, and
shifting consumer preferences.

Secure Electronic Transaction (SET) Protocol

Secure Electronic Transaction or SET is a system that ensures the security and integrity of
electronic transactions done using credit cards in a scenario. SET is not some system that
enables payment but it is a security protocol applied to those payments. It uses different
encryption and hashing techniques to secure payments over the internet done through credit
cards. The SET protocol was supported in development by major organizations like Visa,
Mastercard, and Microsoft which provided its Secure Transaction Technology (STT), and
Netscape which provided the technology of Secure Socket Layer (SSL).
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SET protocol restricts the revealing of credit card details to merchants thus keeping hackers
and thieves at bay. The SET protocol includes Certification Authorities for making use of
standard Digital Certificates like X.509 Certificate.

Before discussing SET further, let‘s see a general scenario of electronic transactions, which
includes client, payment gateway, client financial institution, merchant, and merchant
financial institution.

Requirements in SET: The SET protocol has some requirements to meet, some of the
important requirements are:
 It has to provide mutual authentication i.e., customer (or cardholder)
authentication by confirming if the customer is an intended user or not, and
merchant authentication.
 It has to keep the PI (Payment Information) and OI (Order Information)
confidential by appropriate encryptions.
 It has to be resistive against message modifications i.e., no changes should be
allowed in the content being transmitted.
 SET also needs to provide interoperability and make use of the best security
mechanisms.
Participants in SET: In the general scenario of online transactions, SET includes similar
participants:
1. Cardholder – customer
2. Issuer – customer financial institution
3. Merchant
4. Acquirer – Merchant financial
5. Certificate authority – Authority that follows certain standards and issues
certificates(like X.509V3) to all other participants.
SET functionalities:
Provide Authentication
Merchant Authentication – To prevent theft, SET allows customers to check previous
relationships between merchants and financial institutions. Standard X.509V3 certificates are
used for this verification.
Customer / Cardholder Authentication – SET checks if the use of a credit card is done by
an authorized user or not using X.509V3 certificates.
SHYLAJA M, Assistant Professor
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Provide Message Confidentiality: Confidentiality refers to preventing unintended people

from reading the message being transferred. SET implements confidentiality by using
encryption techniques. Traditionally DES is used for encryption purposes.
Provide Message Integrity: SET doesn‘t allow message modification with the help of
signatures. Messages are protected against unauthorized modification using RSA digital
signatures with SHA-1 and some using HMAC with SHA-1,
Dual Signature: The dual signature is a concept introduced with SET, which aims at
connecting two information pieces meant for two different receivers
Order Information (OI) for merchant
Payment Information (PI) for bank

Electronic Fund Transfer (EFT)

An electronic funds transfer (EFT), or direct deposit, is a digital money movement from one bank
account to another. These transfers take place independently from bank employees. As a digital
transaction, there is no need for paper documents. EFT has become a predominant method of money
transfer since it is a simple, accessible, and direct payment or transfer of funds.

Types of EFT payments

As mentioned, there are many different types of payments that fall under the category of
electronic fund transfers. Some of these EFT payment types include:
 Direct deposit – A type of electronic transfer that allows you to pay employees
electronically. Put simply, you let your direct deposit service provider know how much
to deposit in each employee‘s account, and then on payday, the money will be
deposited.
 ATMs (Automated Teller Machines) – Allows you to make withdrawals and deposits,
check your account balance, and transfer funds without entering the bank and talking
to a teller.
 Credit/debit cards – You can also make EFT payments with a credit or debit card.
You can use your card to move money from a business bank account, make purchases,
or pay bills.
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 Wire transfers – Electronic money transfers that are typically used to send large
sums of money, for example, placing a large down payment on a new piece of
equipment for your business.
 Pay-by-phone systems – An electronic transfer method that allows you to pay your
bills or send money between different accounts over the phone.
 Electronic checks – Similar to traditional, paper-based checks, but entirely electronic.
You simply need to enter your routing number and bank account number to make a
payment.
Digital Economy

The digital economy refers to the economic activities that emerge from connecting individuals,
businesses, devices, data and operations through digital technology. It encompasses the online
connections and transactions that take place across multiple sectors and technologies, such as
the internet, mobile technology, big data and information and communications technology.

Major examples of the digital economy's evolution

The digital economy has evolved significantly since its inception. There are numerous
examples of traditional companies transforming to succeed in the digital economy.

The following are some notable examples of the digital economy's evolution:

 Inception of digital trade and e-commerce. The surge of e-commerce -- where

platforms such as Amazon, Alibaba and eBay have transformed online buying and
selling -- has reshaped retail and created new technologies and business models.

 Social media. The emergence of social networking platforms such as Facebook,

Twitter, Instagram and LinkedIn has changed how people communicate, connect
and promote their products.

 Increased remote work adoption. The pandemic caused a change in workplace

culture as more people accepted remote work and began using apps such as
Zoom, Slack and Microsoft Teams to promote online collaboration. The digital
economy has evolved as a result of this trend, which has reshaped how businesses
function and manage their workforce.
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 AI and automation. Automation and AI have significantly shaped the digital

economy. Virtual assistants, chatbots and recommendation algorithms powered by AI
improve consumer experiences and provide more personalized services.

 Digital payments and cryptocurrencies. Digital payment systems such as

PayPal, Venmo and mobile wallets have changed how people conduct financial
transactions.

 Digital entertainment. The entertainment industry has undergone significant changes

due to the rise of streaming services such as Netflix, Spotify and YouTube. These
platforms have revolutionized media consumption by providing instant access to an
array of content.

 Telemedicine. The COVID-19 pandemic accelerated the spread of telemedicine and

made remote medical care possible through digital platforms. Today, telehealth is a
crucial component in providing healthcare.

 Sharing economy. The sharing economy has transformed how people share resources
such as cars, lodging and services, as exemplified by the Uber, Airbnb and TaskRabbit
platforms. Peer-to-peer sharing has reshaped traditional industries and made possible
new business opportunities.

Why is the digital economy important for businesses?

Businesses that make digital transformation a priority can streamline processes, reduce costs
and create new revenue streams. But the digital economy is more than just using a computer to
perform tasks traditionally done manually or on analog devices. It's about finding ways for
organizations to make their systems and people work more effectively together.

What technologies are accelerating the digital economy?

The digital economy is expanding rapidly with the use of new technologies that improve
connectivity, enable automation, advance data analysis and create new business prospects.

Common technologies that are accelerating the digital economy include the following:
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 AI. AI technologies, including generative AI, machine learning and natural

language processing, facilitate automation, data analysis and decision-making for
organizations across various industries. Businesses can analyze large amounts of
data, improve customer experiences, automate activities and increase operational
efficiency with the help of AI-powered systems.

 5G. 5G technology enables rapid downloads, low latency and a wide range of
device connections. 5G offers many advantages, including facilitating smooth data
transfers, enhancing mobile experiences and fostering the development of
innovative applications and services.

 Wi-Fi 6. In comparison to earlier Wi-Fi standards, Wi-Fi 6, also known as

802.11ax, provides faster data transfer rates, decreased latency and increased
network efficiency. It also accommodates the increasing number of connected
devices and the demand for high-bandwidth applications, making connections
faster and more dependable, especially in congested areas.

 Augmented reality and virtual reality. Augmented reality and virtual reality
technologies are revolutionizing gaming, education, healthcare and training through
the development of immersive experiences and simulations.

 Blockchain. Blockchain technology enables decentralized and secure recording

and verification of transactions. It eliminates the need for intermediaries and
secures the transparency, immutability and trustworthiness of digital transactions.
This technology is transforming Industries, including finance, supply chain
management and healthcare.

 IoT. IoT is a system of networked sensors and devices used for data collection and
exchange. By enabling the fusion of physical items with the digital world, this
technology creates new possibilities for automation, real-time monitoring and data-
driven insights. Smart homes, smart cities, agriculture and industrial automation are
just a few of the areas where IoT applications are improving efficiency, productivity
and convenience.
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 Quantum computing. While still in its early stages, quantum computing can
tackle difficult problems at previously unheard-of speeds. It has applications
in cryptography, materials science and optimization.

Advantages of the digital economy

The digital economy provides numerous benefits, which have contributed to its rapid expansion
and positive effect on a variety of industries:

 Increased productivity. Businesses can improve their productivity and efficiency

by using digital technology to automate their operations and processes.

 Reduced costs. Cloud computing and digital frameworks eliminate the need for
substantial physical infrastructure and capital expenditures, enabling organizations
to scale up and down as needed.

 Extended reach. Businesses can foster a global economy and presence through
online platforms and technologies, thus expanding their customer bases and market
opportunities.

 Access to more data. The digital economy produces large amounts of data that can
be analyzed for insights, trends and data-driven decision-making. Businesses can
use this data access to better understand customer behavior, customize experiences
and increase operational effectiveness.

 Greater convenience. Consumers can purchase digital goods and services from the
convenience of their homes. E-commerce and mobile commerce let customers
purchase products whenever and wherever they want.

 Improved customer experience. Businesses can deliver faster and more

responsive customer service through digital channels and chatbots.

 Personalization. By using data analytics and AI, businesses can customize

products, services and marketing campaigns, ultimately improving customer
satisfaction.

Disadvantages of the digital economy

While the digital economy provides many advantages, it also presents the following challenges:
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 Privacy and security concerns. The digital economy is significantly dependent on the
acquisition and storage of personal data, which can create data privacy and security issues.
Events such as data breaches, cyber attacks and unauthorized access to private records can
lead to financial losses, identity theft and various adverse outcomes.
 Waves of disruption. The digital economy has created new companies and new ways of
interacting. However, many companies and industries that didn't or couldn't capitalize on
the technologies to change their operations have faced declining sales, falling market share
and even complete collapse.

 Job displacement. Automation and digitalization can displace jobs, rendering some roles
obsolete. Individuals might need to acquire new skills for ongoing employability, which
can cause temporary unemployment and economic disruption.

 Monopoly. The digitalization of the economy has resulted in a small number of large
providers such as Apple, Amazon and Google gaining substantial power, resulting in
monopolistic conditions in certain sectors.

 Digital divide. The existence of a digital divide, which refers to the disparity between those
who have access to technology and those who don't, is a prominent disadvantage of the
digital economy. This division can result in inequalities concerning access to information,
education, employment prospects and economic advancement.

 Environmental footprint. The digital economy's energy use in data centers and electronic
device production has environmental consequences, with rising demand for digital services
leading to greater carbon emissions, e-waste and a bigger environmental footprint.

The future of the digital economy

The World Economic Forum predicts that over the next 10 years, business models built on
digitally enabled platforms will account for 70% of all new value created. This proves that the
digital economy is rapidly evolving and shaping how people live, work and interact.

The following key trends and technologies are expected to shape the future of the digital
economy:
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 AI and machine learning. AI, including machine learning, deep learning

and neural networks, is advancing and will have a growing role in the digital
economy. AI is essential for extracting insights from big data, automating complex
tasks, making predictions and managing autonomous systems and robots.

 Transformation of traditional sectors. The digital economy is also changing

traditional industrial industries such as agriculture. For instance, farmers can get
real-time updates on crop quality, soil conditions and irrigation with the help of
smartphone apps.

 Digital connectivity. Strong broadband connectivity and infrastructure are crucial

to the success of the digital economy. Technologies such as 5G are predicted to
play a key role in enhancing digital connectivity, resulting in quicker and more
reliable communication while supporting the growth of the digital economy.

 The metaverse. Immersive technologies such as the metaverse can create entirely
new experiences for consumers and open up innovative business applications.
These digital environments have the power to revolutionize entire sectors, and in
the future, a parallel universe with a distinct financial and economic system might
also come into existence.

 Healthcare transformation. The integration of telemedicine and digital health

tools and applications is expected to improve healthcare delivery and accessibility.

 Cybersecurity advancements. The rapid adoption of a digital economy is

evolving cybersecurity measures to address increasingly sophisticated cyber
threats, including AI-powered attacks. By applying machine learning
algorithms, AI-powered cybersecurity systems can detect anomalous behavior,
identify potential vulnerabilities and proactively lower the risk factors.

Payment Methods
Payment methods are number of ways in which individuals transfer money to merchants or
businesses when they pay for goods and services. These methods include cash, credit / debit
cards, bank transfers, mobile payments and digital wallets. They serve as the bridge between
consumers and businesses, facilitating the exchange of money. They offer various features and
security measures to suit individual preferences and situations.
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1. Debit Card Payments

Debit cards allow you to make transactions by deducting funds from your bank account. They
allow the convenience of not carrying cash and the ability to track your expenses. But, they
also come with potential risks like card theft.

2. Credit Card Payments

Credit cards provide a revolving line of credit, allowing you to make purchases and pay for
them at a later date. They provide benefits such as credit building. However, they can lead to
interest charges and potential debt accumulation if not managed efficiently.

3. Prepaid Cards
Prepaid cards are cards with a predetermined amount of money loaded onto them. They are a
secure way to make payments, as they are not linked to your bank account and enable controlled
spending. But, you need to reload them with funds, which can be inconvenient.

4. Autopay
Autopay is a convenient payment mode where payments are automatically deducted from your
bank account or credit card. This ensures timely bill payments, but you need to ensure sufficient
funds are available. There is a risk of forgetting or overdrafting.

5. Cash
Cash remains a widely used mode of payment, particularly in small, local transactions. It is
easy to use and accepted everywhere. However, it can be lost or stolen, and it is not practical
for online purchases.

6. Cheques
Cheques are a traditional payment instrument that offers a clear payment history and the benefit
of delayed payment processing. However, they come with the risk of bounced cheques and the
need to write, mail and deposit them.
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7. Buy Now, Pay Later (BNPL)

Buy Now, Pay Later (BNPL) services allow you to make purchases and delay payment to a
later date. This offers flexibility, but it can lead to overspending and debt accumulation.
Additionally, you may be subject to interest charges if payments are delayed.

8. NetBanking
Online banking allows you to transfer money between bank accounts or make payments
electronically. It is a convenient and secure payment method, but it may require internet access
and some knowledge of NetBanking platforms.

9. Mobile Payments
Mobile payments involve using a smartphone or mobile app to conduct transactions. They are
convenient and secure, but they depend on having a compatible device and a reliable internet
connection.

10. UPI and QR Codes

Unified Payments Interface (UPI) and QR code payments have gained immense popularity in
India. They allow instant transfers and payments using UPI-enabled mobile apps. They are
highly convenient, cost-effective and secure.

11. Point of Sale (POS) Terminals

POS terminals are common in retail stores. They allow you to make payments by swiping your
credit or debit cards. POS payments are quick and efficient, but they require hardware and a
reliable network connection.

12. Digital Wallets

Digital wallets store your payment information securely, allowing you to make quick online
payments. They offer convenience and security but require compatible apps and internet
access.
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MODULE IV – SECURITY AND THREATS IN E-COMMERCE

Virus

A computer virus is an ill-natured software application or authored code that can attach itself
to other programs, self-replicate, and spread itself onto other devices. When executed, a virus
modifies other computer programs by inserting its code into them. If the virus‘s replication is
successful, the affected device is considered ―infected‖ with a computer virus.

The malicious activity carried out by the virus‘s code can damage the local file system, steal
data, interrupt services, download additional malware, or any other actions the malware author
coded into the program. Many viruses pretend to be legitimate programs to trick users into
executing them on their devices, delivering the computer virus payload.

Cybercrime

Cybercrime is a crime that involves a network and computer, and it is also known as a
computer crime. Even though rapid digitalization has helped us immensely, at the same time,
it opens the gate to a wide range of threats and makes it easier to perform Cybercrime. These
threats can result in financial loss or reputation damage. Ever-changing operations coupled
with emerging technologies have increased the frequency of Cybercrime activities on an
industrial level.

Types of Cybercrime

There are various forms of Cybercrime, namely- phishing, malware, cyberbullying, crypto-
jacking, Cyber espionage, etc, and we have discussed these below in brief.

 Phishing– Phishing attacks take place when spam or fraudulent emails or other forms
of communication are sent to people through a source that seems reputable.
 Malware– It is a type of Cyber Attack where malicious software, programs, or codes
are used to corrupt data and damage or disables computers or other devices such as
mobiles, tablets, networks, etc.
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 Cyberbullying– It is also a Cybercrime where computers, tablets, or mobile phones are

used to send, post, or share private, negative, or false information about someone
without their consent to cause embarrassment or humiliation.
 Cryptojacking– Here, the attacker breaks into a person‘s computing device to extract
money from the target in the form of cryptocurrency without their consent or
knowledge.
 Cyber Espionage– Cyber espionage occurs when an attacker illicitly steals or gains
access to a company‘s or government‘s classified, sensitive data or intellectual property
to gain an advantage over the entity.

Network Security

Network security is any activity designed to protect the usability and integrity of your network
and data.

 It includes both hardware and software technologies

 It targets a variety of threats

 It stops them from entering or spreading on your network

 Effective network security manages access to the network

How does network security work?

Network security combines multiple layers of defenses at the edge and in the network. Each
network security layer implements policies and controls. Authorized users gain access to
network resources, but malicious actors are blocked from carrying out exploits and threats.
Types of network security
Firewalls
Firewalls put up a barrier between your trusted internal network and untrusted outside
networks, such as the Internet. They use a set of defined rules to allow or block traffic. A
firewall can be hardware, software, or both. Cisco offers unified threat management (UTM)
devices and threat-focused next-generation firewalls.
Email security
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Email gateways are the number one threat vector for a security breach. Attackers use personal
information and social engineering tactics to build sophisticated phishing campaigns to deceive
recipients and send them to sites serving up malware. An email security application blocks
incoming attacks and controls outbound messages to prevent the loss of sensitive data.

Anti-virus and anti-malware software

"Malware," short for "malicious software," includes viruses, worms, Trojans, ransomware, and
spyware. Sometimes malware will infect a network but lie dormant for days or even weeks.
The best antimalware programs not only scan for malware upon entry, but also continuously
track files afterward to find anomalies, remove malware, and fix damage.
Network segmentation
Software-defined segmentation puts network traffic into different classifications and
makes enforcing security policies easier. Ideally, the classifications are based on endpoint
identity, not mere IP addresses. You can assign access rights based on role, location, and more
so that the right level of access is given to the right people and suspicious devices are contained
and remediated.
Access control
Not every user should have access to your network. To keep out potential attackers, you need
to recognize each user and each device. Then you can enforce your security policies. You can
block noncompliant endpoint devices or give them only limited access. This process is network
access control (NAC).

Application security
Any software you use to run your business needs to be protected, whether your IT staff builds
it or whether you buy it. Unfortunately, any application may contain holes, or vulnerabilities,
that attackers can use to infiltrate your network. Application security encompasses the
hardware, software, and processes you use to close those holes.

Behavioral analytics
To detect abnormal network behavior, you must know what normal behavior looks like.
Behavioral analytics tools automatically discern activities that deviate from the norm. Your
security team can then better identify indicators of compromise that pose a potential problem
and quickly remediate threats.
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Data loss prevention

Organizations must make sure that their staff does not send sensitive information outside the
network. Data loss prevention, or DLP, technologies can stop people from uploading,
forwarding, or even printing critical information in an unsafe manner.

Intrusion prevention systems

An intrusion prevention system (IPS) scans network traffic to actively block attacks.
Cisco Next-Generation IPS (NGIPS) appliances do this by correlating huge amounts of
global threat intelligence to not only block malicious activity but also track the progression of
suspect files and malware across the network to prevent the spread of outbreaks and reinfection.
Mobile device security
Cybercriminals are increasingly targeting mobile devices and apps. Within the next 3 years, 90
percent of IT organizations may support corporate applications on personal mobile devices. Of
course, you need to control which devices can access your network. You will also need to
configure their connections to keep network traffic private.

VPN
A virtual private network encrypts the connection from an endpoint to a network, often over
the Internet. Typically, a remote-access VPN uses IPsec or Secure Sockets Layer to
authenticate the communication between device and network.

Wireless security
Wireless networks are not as secure as wired ones. Without stringent security measures,
installing a wireless LAN can be like putting Ethernet ports everywhere, including the parking
lot. To prevent an exploit from taking hold, you need products specifically designed to protect
a wireless network.

Encryption

Encryption is a way of scrambling data so that only authorized parties can understand the
information. In technical terms, it is the process of converting human-readable plaintext to
incomprehensible text, also known as ciphertext. In simpler terms, encryption takes readable
data and alters it so that it appears random. Encryption requires the use of a cryptographic key:
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a set of mathematical values that both the sender and the recipient of an encrypted message
agree on.

Why is encryption important?

Privacy: Encryption ensures that no one can read communications or data at rest except the
intended recipient or the rightful data owner. This prevents attackers, ad networks, Internet
service providers, and in some cases governments from intercepting and reading sensitive data,
protecting user privacy.

Security: Encryption helps prevent data breaches, whether the data is in transit or at rest. If a
corporate device is lost or stolen and its hard drive is properly encrypted, the data on that device
will still be secure. Similarly, encrypted communications enable the communicating parties to
exchange sensitive data without leaking the data.

Data integrity: Encryption also helps prevent malicious behavior such as on-path attacks.
When data is transmitted across the Internet, encryption ensures that what the recipient receives
has not been viewed or tampered with on the way.

Regulations: For all these reasons, many industry and government regulations require
companies that handle user data to keep that data encrypted. Examples of regulatory and
compliance standards that require encryption include HIPAA, PCI-DSS, and the GDPR.

Firewall

A firewall is a computer network security system that restricts internet traffic in to, out of, or
within a private network. This software or dedicated hardware-software unit functions by
selectively blocking or allowing data packets. It is typically intended to help prevent malicious
activity and to prevent anyone—inside or outside a private network—from engaging in
unauthorized web activities.
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How do firewalls work?

A firewall decides which network traffic is allowed to pass through and which traffic is deemed
dangerous. Essentially, it works by filtering out the good from the bad, or the trusted from the
untrusted. However, before we go into detail, it helps to understand the structure of web-based
networks.

Firewalls are intended to secure private networks and the endpoint devices within them, known
as network hosts. Network hosts are devices that ‗talk‘ with other hosts on the network. They
send and receive between internal networks, as well as outbound and inbound between external
networks.

1. External public networks typically refer to the public/global internet or various extranets.
2. Internal private network defines a home network, corporate intranets, and other ‗closed‘
networks.
3. Perimeter networks detail border networks made of bastion hosts — computer hosts
dedicated with hardened security that are ready to endure an external attack. As a secured buffer
between internal and external networks, these can also be used to house any external-facing
services provided by the internal network (i.e., servers for web, mail, FTP, VoIP, etc.). These
are more secure than external networks but less secure than internal. These are not always
present in simpler networks like home networks but may often be used in organizational or
national intranets.
Screening routers are specialized gateway computers placed on a network to segment it. They
are known as house firewalls on the network-level. The two most common segment models are
the screened host firewall and the screened subnet firewall:
 Screened host firewalls use a single screening router between the external and internal
networks. These networks are the two subnets of this model.
 Screened subnet firewalls use two screening routers— one known as an access
router between the external and perimeter network, and another known as the choke
router between the perimeter and internal network. This creates three subnets, respectively.

Both the network perimeter and host machines themselves can house a firewall. To do this, it
is placed between a single computer and its connection to a private network.
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 Network firewalls involve the application of one or more firewalls between external
networks and internal private networks. These regulate inbound and outbound network traffic,
separating external public networks—like the global internet—from internal networks like
home Wi-Fi networks, enterprise intranets, or national intranets. Network firewalls may come
in the form of any of the following appliance types: dedicated hardware, software, and virtual.
 Host firewalls or 'software firewalls' involve the use of firewalls on individual user devices
and other private network endpoints as a barrier between devices within the network. These
devices, or hosts, receive customized regulation of traffic to and from specific computer
applications. Host firewalls may run on local devices as an operating system service or an
endpoint security application. Host firewalls can also dive deeper into web traffic, filtering
based on HTTP and other networking protocols, allowing the management of what content
arrives at your machine, rather than just where it comes from.

A WAF protects your web apps by filtering, monitoring, and blocking any malicious HTTP/S
traffic traveling to the web application, and prevents any unauthorized data from leaving the
app. It does this by adhering to a set of policies that help determine what traffic is malicious
and what traffic is safe. Just as a proxy server acts as an intermediary to protect the identity of
a client, a WAF operates in similar fashion but in the reverse—called a reverse proxy—acting
as an intermediary that protects the web app server from a potentially malicious client.

Firewall Policies
A firewall policy serves as the strategic blueprint for your network‘s security. It encompasses
high-level guidelines and principles that dictate how your firewall should operate. Think of it
as the overarching strategy that provides direction to your network‘s security measures.

Key Characteristics of Firewall Policies:

1. Holistic Approach: Firewall policies adopt a holistic approach to network security.
They establish the overarching goals and principles to safeguard your network, making
them strategic documents.
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2. Long-term Perspective: These policies tend to remain stable over time and are
typically only modified when significant shifts in network requirements or security
threats occur.
3. Alignment with Business Goals: Firewall policies are designed to align with your
organization‘s broader business goals. They ensure that network security supports and
enhances the overall mission.
4. Regulatory Compliance: Firewall policies play a pivotal role in ensuring that your
organization complies with relevant regulations. They specify how sensitive data
should be protected and accessed.
5. Risk Management: These policies contribute significantly to risk management by
outlining rules and procedures for protecting your network against potential threats.
Protecting your network from potential threats firewalls have a crucial role. Two essential
components of firewall management are firewall policies and firewall rules. These elements
work together to ensure the security of your network, but they serve different purposes. In this
post, we will delve into the distinctions between firewall policy and rule and understand how
they collectively contribute to network security.

A Network Firewall acts as a boundary providing protection between internal and external
network traffic. It has preset rules that define the traffic allowed on the network. It then looks
at source and destination IP addresses and the ports to determine if the incoming and outgoing
data packets are authorized or not.

A Web Application Firewall (WAF) specializes in protecting website applications and APIs.
A WAF protects HTTP(s) traffic and applications in the network‘s internet-facing zones. The
WAF and Network Firewall serve different purposes and protect different network layers.

Proxy Server

A proxy server is a system or router that provides a gateway between users and the internet.
Therefore, it helps prevent cyber attackers from entering a private network. It is a server,
referred to as an ―intermediary‖ because it goes between end-users and the web pages they visit
online. When a computer connects to the internet, it uses an IP address. This is similar to your
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home‘s street address, telling incoming data where to go and marking outgoing data with a
return address for other devices to authenticate. A proxy server is essentially a computer on the
internet that has an IP address of its own.

How a Proxy Works

Because a proxy server has its own IP address, it acts as a go-between for a computer and the
internet. Your computer knows this address, and when you send a request on the internet, it is
routed to the proxy, which then gets the response from the web server and forwards the data
from the page to your computer‘s browser, like Chrome, Safari, Firefox, or Microsoft Edge

Types of Proxy Servers

Forward Proxy

A forward proxy sits in front of clients and is used to get data to groups of users within an
internal network. When a request is sent, the proxy server examines it to decide whether it
should proceed with making a connection.

A forward proxy is best suited for internal networks that need a single point of entry. It provides
IP address security for those in the network and allows for straightforward administrative
control. However, a forward proxy may limit an organization‘s ability to cater to the needs of
individual end-users.

Transparent Proxy

A transparent proxy can give users an experience identical to what they would have if they
were using their home computer. In that way, it is ―transparent.‖ They can also be ―forced‖ on
users, meaning they are connected without knowing it.

Transparent proxies are well-suited for companies that want to make use of a proxy without
making employees aware they are using one. It carries the advantage of providing a seamless
user experience. On the other hand, transparent proxies are more susceptible to certain security
threats, such as SYN-flood denial-of-service attacks.

Anonymous Proxy
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An anonymous proxy focuses on making internet activity untraceable. It works by accessing

the internet on behalf of the user while hiding their identity and computer information.

A anonymous proxy is best suited for users who want to have full anonymity while accessing
the internet. While anonymous proxies provide some of the best identity protection possible,
they are not without drawbacks. Many view the use of anonymous proxies as underhanded,
and users sometimes face pushback or discrimination as a result.

High Anonymity Proxy

A high anonymity proxy is an anonymous proxy that takes anonymity one step further. It works
by erasing your information before the proxy attempts to connect to the target site.

The server is best suited for users for whom anonymity is an absolute necessity, such as
employees who do not want their activity traced back to the organization. On the downside,
some of them, particularly the free ones, are decoys set up to trap users in order to access their
personal information or data.

Distorting Proxy

A distorting proxy identifies itself as a proxy to a website but hides its own identity. It does
this by changing its IP address to an incorrect one.

Distorting proxies are a good choice for people who want to hide their location while accessing
the internet. This type of proxy can make it look like you are browsing from a specific country
and give you the advantage of hiding not just your identity but that of the proxy, too. This
means even if you are associated with the proxy, your identity is still secure. However, some
websites automatically block distorting proxies, which could keep an end-user from accessing
sites they need.

Data Center Proxy

Data center proxies are not affiliated with an internet service provider (ISP) but are provided
by another corporation through a data center. The proxy server exists in a physical data center,
and the user‘s requests are routed through that server.

Data center proxies are a good choice for people who need quick response times and an
inexpensive solution. They are therefore a good choice for people who need to gather
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intelligence on a person or organization very quickly. They carry the benefit of giving users
the power to swiftly and inexpensively harvest data. On the other hand, they do not offer the
highest level of anonymity, which may put users‘ information or identity at risk.

Benefits of a Proxy Server

Proxies come with several benefits that can give your business an advantage:

 Enhanced security: Can act like a firewall between your systems and the internet.
Without them, hackers have easy access to your IP address, which they can use to
infiltrate your computer or network.
 Private browsing, watching, listening, and shopping: Use different proxies to help
you avoid getting inundated with unwanted ads or the collection of IP-specific data.
With a proxy, site browsing is well-protected and impossible to track.
 Access to location-specific content: You can designate a proxy server with an address
associated with another country. You can, in effect, make it look like you are in that
country and gain full access to all the content computers in that country are allowed to
interact with. For example, the technology can allow you to open location-restricted
websites by using local IP addresses of the location you want to appear to be in.
 sYou can use it to block access to websites that run contrary to your organization‘s
principles. Also, you can block sites that typically end up distracting employees from
important tasks. Some organizations block social media sites like Facebook and others
to remove time-wasting temptations.
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MODULE V – ISSUES IN E-COMMERCE

E-commerce, like any other aspect of business and technology, presents a range of ethical,
social, and political issues. Here are some of the key considerations:

Privacy and Data Security: E-commerce involves the collection and storage of vast amounts
of personal data. Ensuring the privacy and security of this data is crucial to maintain trust with
customers. Issues such as data breaches, unauthorized access to personal information, and the
use of customer data for targeted advertising without consent are significant concerns.

Digital Divide: E-commerce relies heavily on internet access and digital literacy. The digital
divide, the gap between those who have access to technology and those who do not, can
exacerbate social inequalities. People without reliable internet access or the skills to navigate
e-commerce platforms may be further marginalized.

Fair Competition: E-commerce has the potential to disrupt traditional brick-and-mortar

businesses, leading to concerns about fair competition. Large e-commerce platforms may have
the resources to undercut prices, drive smaller competitors out of business, or engage in anti-
competitive practices.

Labor Practices: Issues related to labor practices are prevalent in e-commerce, particularly
concerning warehouse workers and delivery drivers. Concerns include low wages, long
working hours, lack of job security, and poor working conditions. Additionally, the rise of the
gig economy and the classification of workers as independent contractors rather than
employees raise questions about labor rights and protections.

Counterfeit Goods and Intellectual Property: E-commerce platforms may struggle to

control the sale of counterfeit goods and the violation of intellectual property rights. Sellers
may use online marketplaces to distribute fake products or infringe on trademarks, copyrights,
and patents, leading to legal disputes and financial losses for legitimate businesses.

Taxation and Regulatory Compliance: E-commerce transactions often cross jurisdictional

boundaries, creating challenges for taxation and regulatory compliance. Governments may
struggle to enforce tax laws on online purchases, leading to concerns about lost revenue and
unfair advantages for online retailers compared to traditional businesses.
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Environmental Impact: The growth of e-commerce contributes to increased energy

consumption, carbon emissions from transportation and packaging, and waste generation.
Packaging materials, transportation logistics, and energy consumption in data centers all have
environmental consequences that need to be addressed to mitigate the environmental impact of
e-commerce.

Consumer Rights and Protection: Ensuring consumer rights and protections in e-commerce
transactions is essential. Issues such as misleading advertising, deceptive practices, inadequate
product descriptions, and difficulty in returning goods can harm consumers. Clear regulations
and enforcement mechanisms are necessary to safeguard consumer interests.

Addressing these ethical, social, and political issues requires collaboration among
governments, businesses, civil society organizations, and consumers to develop policies,
regulations, and practices that promote responsible and sustainable e-commerce.

Organizing the issues in e-commerce can be crucial for businesses to address challenges
effectively and ensure smooth operations. Here's a model for organizing these issues:

1. Infrastructure and Technology:

- Website Performance: Ensuring fast loading times, smooth navigation, and mobile
responsiveness.
- Server Reliability: Minimizing downtime and ensuring servers can handle peak traffic.
- Security: Protecting customer data, payment information, and the website from cyber
threats.

2. User Experience:
- Interface Design: Creating an intuitive and visually appealing interface to enhance user
engagement.
- Navigation: Simplifying the browsing and purchasing process for customers.
- Personalization: Tailoring the shopping experience based on user preferences and
behavior.

3. Payment and Checkout:

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- Payment Options: Offering diverse payment methods to accommodate customer

preferences.
- Checkout Process: Streamlining the checkout process to reduce cart abandonment rates.
- Security: Implementing secure payment gateways and protocols to protect transactions.

4. Inventory and Supply Chain Management:

- Inventory Tracking: Managing stock levels accurately to avoid overselling or stockouts.
- Supplier Relationships: Ensuring reliable partnerships to maintain product availability.
- Logistics: Optimizing shipping and delivery processes for timely and cost-effective
fulfillment.

5. Customer Service and Support:

- Communication Channels: Providing multiple channels for customer inquiries and
support.
- Returns and Refunds: Establishing clear policies and procedures for handling returns
and refunds.
- Resolution Time: Responding promptly to customer issues and resolving them
efficiently.

6. Marketing and Sales:

- Digital Marketing: Utilizing SEO, SEM, social media, and email marketing to drive
traffic and sales.
- Conversion Optimization: Improving website elements to maximize conversion rates.
- Customer Retention: Implementing strategies to foster customer loyalty and repeat
purchases.

7. Legal and Compliance:

- Data Privacy: Adhering to data protection regulations and safeguarding customer
privacy.
- Consumer Rights: Complying with consumer protection laws and regulations.
- Intellectual Property: Protecting trademarks, copyrights, and patents related to products
and branding.
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8. Analytics and Performance Monitoring:

- Metrics Tracking: Monitoring key performance indicators (KPIs) such as traffic,
conversion rates, and customer acquisition cost.
- Data Analysis: Analyzing customer behavior and trends to make informed business
decisions.
- Continuous Improvement: Iteratively optimizing strategies based on data insights and
feedback.
By organizing e-commerce issues into these categories, businesses can systematically address
challenges and enhance their overall performance in the digital marketplace.
Basic Ethical Concepts
In ecommerce, as in any business endeavor, ethical considerations play a vital role in
maintaining trust, fostering long-term relationships with customers, and upholding societal
values. Here are some basic ethical concepts that are particularly relevant in ecommerce:

Transparency and Honesty: Providing accurate and truthful information about products,
services, pricing, and policies. Disclosing any potential conflicts of interest or biases that may
influence recommendations or promotions.

Privacy and Data Protection: Respecting customer privacy by clearly outlining data
collection practices and obtaining explicit consent for data [Link] personal
information from unauthorized access, misuse, or exploitation. Adhering to relevant data
protection regulations such as GDPR (General Data Protection Regulation) or CCPA
(California Consumer Privacy Act).

Security: Implementing robust security measures to protect customer data, financial

transactions, and sensitive information from cyber threats. Regularly updating security
protocols and staying informed about emerging risks and vulnerabilities.

Fairness and Equal Treatment: Ensuring fair and equal treatment of all customers, regardless
of their background, identity, or characteristics. Avoiding discriminatory practices in product
pricing, promotions, or access to services.

Customer Service and Support:

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Providing prompt and responsive customer support to address inquiries, concerns, or issues
effectively. Resolving disputes or complaints in a fair and transparent manner, with a focus on
customer satisfaction.

Environmental Responsibility:

Considering the environmental impact of ecommerce operations, including packaging,

shipping, and product sourcing. Adopting sustainable practices to minimize waste, energy
consumption, and carbon footprint.

Supply Chain Ethics:

Ensuring ethical sourcing practices throughout the supply chain, including fair labor
conditions, responsible manufacturing, and sustainable sourcing of materials. Conducting due
diligence to identify and address any potential risks of labor exploitation, child labor, or
environmental harm.

Social Responsibility:

Supporting communities and causes through corporate social responsibility initiatives,

charitable contributions, or ethical partnerships. Upholding ethical standards in marketing and
advertising practices, avoiding deceptive or manipulative tactics. By adhering to these ethical
principles, ecommerce businesses can build trust with customers, mitigate risks, and contribute
positively to society and the environment.

Ethical dilemmas: in ecommerce are numerous and multifaceted, often arising from the
intersection of technology, business practices, and societal values. Here are some common
ethical dilemmas in ecommerce:

1. Privacy Concerns: Ecommerce platforms often collect vast amounts of user data to
personalize experiences and target advertisements. However, the collection and use of this data
raise concerns about privacy and data security. Questions arise about whether companies are
transparent about their data practices and whether they obtain informed consent from users.

2. Data Security: Ecommerce platforms are prime targets for cyberattacks due to the sensitive
financial information they store. Ethical questions arise regarding the responsibility of
companies to invest in robust cybersecurity measures to protect customer data adequately.
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3. Fair Pricing and Price Discrimination: Ecommerce platforms may use dynamic pricing
algorithms to adjust prices based on factors like demand, location, and browsing history. While
this can maximize profits for businesses, it can also lead to price discrimination and unfair
treatment of customers.

4. Counterfeit Products: Some ecommerce platforms struggle to police the sale of counterfeit
goods. Ethical concerns arise when customers unknowingly purchase fake or low-quality
products, potentially endangering their health and safety.

5. Worker Exploitation: In the pursuit of efficiency and cost savings, ecommerce companies
may outsource manufacturing or logistics to countries with lower labor standards. This can lead
to exploitative working conditions, including low wages, long hours, and lack of job security.

6. Environmental Impact: The convenience of ecommerce often comes at an environmental

cost, including increased carbon emissions from transportation and excessive packaging waste.
Ethical dilemmas arise regarding the responsibility of ecommerce companies to minimize their
environmental footprint.

7. Consumer Manipulation: Ecommerce platforms employ sophisticated algorithms and user

interfaces to influence consumer behavior and increase sales. However, there are concerns
about the ethical implications of using persuasive techniques to manipulate consumer choices,
especially when it comes to vulnerable populations.

8. Supply Chain Transparency: Ecommerce companies rely on complex global supply chains
to source products from manufacturers and suppliers worldwide. Ensuring transparency and
ethical practices throughout these supply chains can be challenging but is essential to prevent
human rights abuses and environmental degradation.

9. Intellectual Property Rights: Ecommerce platforms must navigate the complex landscape
of intellectual property rights, including trademarks, copyrights, and patents. Ethical dilemmas
arise when platforms inadvertently facilitate the sale of counterfeit or pirated goods, infringing
on the rights of legitimate creators and businesses.

10. Accessibility and Digital Divide: While ecommerce offers convenience for many
consumers, it can exacerbate disparities for those with limited internet access or digital literacy
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skills. Ethical considerations include ensuring that ecommerce platforms are accessible to all
users and addressing the digital divide to prevent further marginalization of disadvantaged
populations.

Addressing these ethical dilemmas requires collaboration among policymakers, businesses,

consumers, and other stakeholders to develop and enforce regulations, industry standards, and
best practices that prioritize transparency, fairness, and accountability in ecommerce
operations.

Privacy and information rights are fundamental ethical principles that are integral to many
frameworks and codes of conduct. Here's an exploration of these principles:

1. Privacy: Privacy refers to the right of individuals to control their personal information and
to keep it from being disclosed to others without their consent. It encompasses the protection
of personal data, including sensitive information such as health records, financial details, and
communication exchanges. The concept of privacy is essential for fostering trust in
relationships, maintaining autonomy, and preserving individual dignity.

- Respect for Privacy: This principle emphasizes the importance of respecting individuals'
boundaries and not intruding upon their personal lives without valid reasons or explicit consent.

- Data Minimization: It advocates for collecting only the minimum amount of personal data
necessary for a particular purpose and ensuring that data is not retained longer than necessary.

- Transparency: Transparency involves informing individuals about how their data is being
collected, used, and shared, as well as providing them with control over their information.

- Security: Security measures must be implemented to protect personal data from

unauthorized access, disclosure, alteration, or destruction.

- Anonymity and Pseudonymity: Whenever possible, individuals should have the option to
interact anonymously or using pseudonyms, thus reducing the risks associated with personal
data exposure.

2. Information Rights: Information rights encompass various ethical principles related to

access to information, freedom of expression, and intellectual property.
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- Access to Information: Individuals have the right to access information that concerns them,
as well as information that is relevant to public interest, unless there are legitimate reasons for
withholding it.

- Freedom of Expression: This principle upholds individuals' rights to express themselves

freely, subject to limitations necessary to protect the rights and reputations of others, as well as
public order, health, and morals.

- Intellectual Property Rights: Respect for intellectual property rights entails recognizing
individuals' ownership of their creations, inventions, and innovations, as well as their rights to
control the use and dissemination of their intellectual property.

- Openness and Transparency: Organizations and institutions should strive to be

transparent about their operations, decision-making processes, and the information they
possess, fostering accountability and trust.

- Cultural and Indigenous Rights: Indigenous communities and cultural groups have the
right to protect and control their traditional knowledge, cultural expressions, and genetic
resources.

These principles serve as foundational pillars for ethical conduct in various domains, including
technology, healthcare, journalism, and governance. Upholding privacy and information rights
requires a balance between individual liberties, societal interests, and technological
advancements, ensuring that ethical considerations guide the collection, use, and dissemination
of information in an increasingly interconnected world.

Information Collected at E-Commerce Website

1. Web Tracking-Your ecommerce site is constantly gathering all kinds of data for you.
Every customer that visits your online store is leaving behind valuable data for you to analyse,
as long as you know where to look for it.

2. Surveys- Surveys are an excellent method of data collection that let you collect raw data
directly from your customers. These can take the form of general surveys enquiring about
customers‘ needs and desires.
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3. Customer Registration- Inviting customers to sign up to your newsletter or register for

an account with your online store are great ways to capture customer data. These registration
forms can include questions about age, gender, shopping preferences, and others that will help
you better identify the demographics of your customers.

4. Categorise Customers- Once you‘ve gathered demographic data about your customers, you
can use it to categorise them. The way you do this will be largely dependent on the products
you‘re selling, for example, it will likely be useful for a clothing retailer to categorise their
customers based on age or gender.

5. Social Media- Customer data doesn‘t have to be pulled from your own website. Your social
media accounts can also provide valuable information about those interested in your brand.

6. Cart Abandonment- Another valuable type of data to collect is the cart abandonment
rate of your customers. You can determine this by seeing how many of those who placed items
in their shopping cart left your website without making a purchase.

7. Marketing Analytics- Analysing the response to your marketing can provide valuable
customer data. Email marketing tools, backend platform, and advertising platforms should be
able to provide you with a wide range of information that you can use.

8. Transactional Data- Transactional data is collected whenever a customer makes a purchase

on your ecommerce site. It includes information about purchases, payments, and returns that
you can analyse to see which products are performing well and what payment methods your
customers prefer.

9. Be Transparent- Customers respond well to brands that they deem to be transparent and
trustworthy. It‘s therefore important that you‘re upfront about how you collect customer data,
and what you do with it.

10. Offer Incentives- Offering incentives to your customers for handing over their data will
make them more willing to do so. Rewards such as voucher codes can be offered to encourage
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customers to sign up to newsletters, providing you with a chance to capture valuable data and
show off your ecommerce site to a new customer.

Ecommerce Privacy Policy

A privacy policy is a document through which a company makes available to its clients (and
any other person who visits its website) information on how their personal data will be used,
the purpose for which this data will be used, whether it will be shared with third parties and
other aspects that might be pertinent to reach an adequate level of transparency.

For example, on an ecommerce website, if a seller wants to be able to complete the sale and
deliver the products purchased online, they will have to collect and store certain personal data,
such as:

 Name;
 Email address;
 Address;
 Identification document;
 Credit card data.
In that sense, the seller‘s privacy policy must state that such data is collected from the store‘s
users and customers so the purchase payments will be approved, the products will be delivered
at the correct address and the invoices will be duly issued.

The seller should also inform the legal basis used for processing the customers‘ personal data.
In that case, the data processing will be deemed imperative for the due fulfillment of the sales
agreement executed by the parties, since collecting and using the personal data collected is
inherent to the completion of the agreement obligations.
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Privacy policy: Trust and security- Having a privacy policy regarding the processing of your
ecommerce data is important to provide security not only to users and consumers, but also to
the company itself. Everyone who visits your platform will realize this topic is relevant to your
company and will understand how their data is processed, stored and used, thus bringing greater
transparency to your commercial relationships and greater reliability to your ecommerce
business.

Protection of intellectual property and trade secrets

Inventors, designers, developers and authors can protect the ideas they have developed, for
instance by means of copyright or patents. The aim is to prevent others from wrongly profiting
from their creations or inventions. It also gives them an opportunity to earn back the money
they invested in developing a product.

Intellectual Property Rights (IPR) in India are protected through various laws and regulations.
Here's an overview of the main legal mechanisms for protecting IPR in India:

1. Patents: In India, patents are governed by the Patents Act, 1970, and the Patents Rules,
2003. The Indian Patent Office (IPO) administers the patent system in the country. Patent
protection is granted for inventions that are new, involve an inventive step, and are capable of
industrial application. The term of a patent in India is 20 years from the date of filing the
application.

2. Trademarks: The Trade Marks Act, 1999, and the Trade Marks Rules, 2017, regulate
trademarks in India. The Controller General of Patents, Designs, and Trademarks, under the
Department for Promotion of Industry and Internal Trade (DPIIT), is responsible for trademark
registration and administration. Trademark protection is granted for distinctive signs, logos,
symbols, etc., used to distinguish goods or services of one entity from another.

3. Copyrights: Copyright protection in India is governed by the Copyright Act, 1957, and the
Copyright Rules, 2013. The Copyright Office, under the Ministry of Education, is responsible
for copyright registration and enforcement. Copyright protection is granted for original literary,
dramatic, musical, and artistic works, as well as cinematographic films and sound recordings.
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The term of copyright protection varies depending on the type of work but generally lasts for
the lifetime of the author plus 60 years.

4. Designs: Designs in India are protected under the Designs Act, 2000, and the Designs Rules,
2001. The Controller General of Patents, Designs, and Trademarks administers the design
registration system. Design protection is granted for new or original designs applied to articles
of industrial application.

5. Geographical Indications (GI): The Geographical Indications of Goods (Registration and

Protection) Act, 1999, and the Geographical Indications of Goods (Registration and Protection)
Rules, 2002, govern the protection of geographical indications in India. The Geographical
Indications Registry, under the Ministry of Commerce and Industry, handles the registration
and protection of GIs.

6. Trade Secrets: Although India does not have specific legislation for trade secret protection,
trade secrets are protected under common law principles and through contractual agreements,
such as non-disclosure agreements (NDAs) and confidentiality clauses.

Enforcement of IPR in India involves both civil and criminal remedies, including injunctions,
damages, fines, and imprisonment for infringement. Additionally, India is a member of various
international agreements related to intellectual property, such as the Agreement on Trade-
Related Aspects of Intellectual Property Rights (TRIPS), administered by the World Trade
Organization (WTO).

E-Governance
Electronic governance or e-governance implies government functioning with the application
of ICT (Information and Communications Technology). Hence e-Governance is basically a
move towards SMART governance implying: simple, moral, accountable, responsive and
transparent governance.

What is SMART Governance?

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 Simple — implies simplification of rules and regulations of the government and

avoiding complex processes with the application of ICTs and therefore, providing a
user-friendly government.

 Moral — meaning the emergence of a new system in the administrative and political
machinery with technology interventions to improve the efficiency of various
government agencies.

 Accountable — develop effective information management systems and other

performance measurement mechanisms to ensure the accountability of public service
functionaries.

 Responsive — Speed up processes by streamlining them, hence making the system

more responsive.

 Transparent — providing information in the public domain like websites or various

portals hence making functions and processes of the government transparent.

Interactions in e-Governance

There are 4 kinds of interactions in e-governance, namely:

1. G2C (Government to Citizens) — Interaction between the government and the

citizens.

 This enables citizens to benefit from the efficient delivery of a large range of
public services.

 Expands the accessibility and availability of government services and also

improves the quality of services

 The primary aim is to make the government citizen-friendly.

G2B (Government to Business):

 It enables the business community to interact with the government by using e-

governance tools.

 The objective is to cut red-tapism which will save time and reduce operational
costs. This will also create a more transparent business environment when
dealing with the government.
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 The G2B initiatives help in services such as licensing, procurement, permits and
revenue collection.

G2G (Government to Government)

 Enables seamless interaction between various government entities.

 This kind of interaction can be between various departments and agencies

within government or between two governments like the union and state
governments or between state governments.

 The primary aim is to increase efficiency, performance and output.

 Read about government to government initiatives in the linked article.

G2E (Government to Employees)

 This kind of interaction is between the government and its employees.

 ICT tools help in making these interactions fast and efficient and thus increases
the satisfaction levels of employees.

Advantages of e-Governance

 Improves delivery and efficiency of government services

 Improved government interactions with business and industry

 Citizen empowerment through access to information

 More efficient government management

 Less corruption in the administration

 Increased transparency in administration

 Greater convenience to citizens and businesses

 Cost reductions and revenue growth

 Increased legitimacy of government

 Flattens organisational structure (less hierarchic)

 Reduces paperwork and red-tapism in the administrative process which results in better
planning and coordination between different levels of government

 Improved relations between the public authorities and civil society

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 Re-structuring of administrative processes

e- Governance Initiatives

Steps taken to promote e-governance in India are as follows:

 A National Task Force on Information Technology and Software Development was set-
up in 1998.

 The Ministry of Information Technology was created at the Centre in 1999.

 A 12-point agenda was listed for e-Governance for implementation in all the central
ministries and departments.

 The Information Technology Act (2000) was enacted. This Act was amended in 2008.

 The first National Conference of States‘ IT Ministers was organised in the year 2000,
to arrive at a Common Action Plan to promote IT in India.

 Government set-up NISG (National Institute for Smart Government).

 The state governments launched e-Governance projects like e-Seva (Andhra Pradesh),
Bhoomi (Karnataka), and so on.

 The National e-Governance Plan (NeGP) was launched. It consists of 31 Mission Mode
Projects (MMPs) and 8 support components.

 The National Policy on Information Technology (NPIT) was adopted in 2012.