E-COMMERCE AND WEB DESIGNING

DETAILED STUDY NOTES

Degree-Level Classroom and Examination Preparation

1. E-Commerce and E-Business

1.1 Meaning of E-Commerce

E-Commerce (Electronic Commerce) means conducting commercial activities electronically, mainly through the
Internet. It involves the buying, selling, ordering, payment and exchange of information related to products
and services.

E-commerce has changed traditional business by allowing customers and businesses to interact electronically
without being physically present at the same location.

Definition
E-Commerce is the buying and selling of goods and services, and the transfer of money and data, through
electronic networks such as the Internet.

Main Characteristics of E-Commerce

 Electronic Transactions – Transactions take place through electronic systems.
 Internet-Based – Most modern e-commerce activities use the Internet.
 Global Reach – Businesses can reach customers in different geographical locations.
 24×7 Operation – Online stores can operate continuously.
 Paperless Transactions – Orders, invoices and receipts can be generated electronically.
 Fast Communication – Customers and sellers can communicate quickly.
 Digital Payment – Payments can be made electronically.
 Customer Convenience – Customers can shop from home or anywhere.
 Information Availability – Product information, prices and reviews are easily accessible.
 Automation – Many business processes can be automated.

Components of E-Commerce
 Customer
 Seller/Merchant
 Website or mobile application
 Product catalogue
 Shopping cart
 Payment gateway
 Database
 Web server
 Security system
 Delivery/logistics system
 Customer support
Basic E-Commerce Process
Customer → Visit Website/App → Search Product → Select Product → Add to Cart → Place Order → Make
Payment → Order Processing → Shipping → Delivery → Customer Feedback

E-Commerce vs E-Business
E-Commerce E-Business
Mainly focuses on online buying and selling. Covers a broader range of electronic business
activities.
Focuses on commercial transactions. Includes commercial and internal business
processes.
Includes online orders and payments. Includes e-commerce, CRM, SCM, communication,
HR and other electronic processes.
Mainly involves customers and sellers. Can involve customers, suppliers, employees and
business partners.
Relationship: E-Commerce is a subset of E-Business.

2. Benefits of E-Commerce

A. Benefits to Businesses
 Global Market – A business can sell products beyond its local geographical area.
 Lower Operating Costs – Businesses can reduce some expenses associated with physical stores.
 Increased Sales – Online stores can attract customers from different locations.
 Better Customer Information – Businesses can understand customer preferences through online
interactions.
 Effective Marketing – Businesses can use digital advertising, email marketing, social media and search
engines.
 Faster Business Transactions – Orders, invoices and payments can be processed electronically.
 Easy Product Updates – Businesses can quickly update product prices, descriptions and availability.
 Scalability – An online business can expand its product range and customer base.

B. Benefits to Customers
 Convenience – Customers can shop without visiting a physical store.
 24×7 Shopping – Customers can place orders at any time.
 More Choices – Customers can compare products from different sellers.
 Price Comparison – Online platforms make it easy to compare prices.
 Customer Reviews – Reviews and ratings help customers make decisions.
 Home Delivery – Products can be delivered directly to the customer's location.
 Multiple Payment Options – Online stores can offer cards and other electronic payment methods.

3. Classification / Types of E-Commerce

3.1 B2B – Business to Business

B2B refers to transactions between businesses. Examples include a manufacturer buying from a supplier or a
wholesaler purchasing from a manufacturer.
Features: Large-volume transactions, business customers, negotiated prices, long-term relationships, purchase
orders and invoices.

3.2 B2C – Business to Consumer

B2C refers to transactions between businesses and individual consumers. Examples include buying clothes,
mobile phones or groceries online.

Features: Large number of customers, smaller individual transactions, online catalogues, digital payments and
home delivery.

3.3 C2C – Consumer to Consumer

C2C allows one consumer to sell to another consumer. Examples include selling used furniture or second-hand
electronics through online marketplaces.

3.4 C2B – Consumer to Business

C2B occurs when an individual offers a product or service to a business. Examples include freelancers providing
software development or graphic-design services.

3.5 B2G – Business to Government

B2G occurs when businesses provide products and services to government organizations, such as through
government procurement and online tenders.

3.6 G2B – Government to Business

G2B occurs when government provides online services to businesses, such as business registration, online tax
filing, licensing and government tenders.

3.7 G2C – Government to Citizen

G2C occurs when government provides electronic services directly to citizens, such as online certificates, tax
services, utility services and online applications.

Summary of E-Commerce Types

Type Full Form Example
B2B Business to Business Manufacturer buying from
supplier
B2C Business to Consumer Customer buying clothes online
C2C Consumer to Consumer Selling used goods
C2B Consumer to Business Freelancer providing services
B2G Business to Government Company supplying government
G2B Government to Business Online business registration
G2C Government to Citizen Online government services

4. Limitations of E-Commerce
 Security Risks – Online transactions involve sensitive personal and payment information.
 Privacy Issues – Websites collect customer information, creating concerns about storage and use.
 Lack of Physical Inspection – Customers cannot physically examine products before purchasing.
 Delivery Problems – Orders may be delayed, damaged or delivered incorrectly.
 Technical Dependence – E-commerce depends on Internet connectivity, servers, websites, payment
systems and databases.
 Cybercrime – Online businesses can be affected by phishing, hacking, malware, identity theft and scams.
 Return Problems – Returning products can involve additional time, shipping and processing.
 Shipping Cost – Delivery charges can increase the total cost.
 Lack of Personal Contact – Online commerce may reduce direct interaction between seller and customer.
 Trust Issues – Some customers may hesitate to purchase from unfamiliar websites.

5. Applications of E-Commerce
 Online Retail – Customers purchase clothes, electronics, books, groceries and furniture.
 Online Banking – Customers can transfer money, check balances, pay bills and download statements.
 Online Education – Online classes, e-books, recorded lectures, examinations and learning systems.
 Online Travel – Booking flights, hotels, trains, buses and travel packages.
 Online Entertainment – Video streaming, music, online games and digital content.
 Online Healthcare – Appointment booking, online consultation, medicine ordering and health information.
 Online Insurance – Comparing policies, purchasing insurance, paying premiums and renewing policies.
 E-Marketing – Email marketing, search engine marketing, social media marketing and online advertising.
 E-Governance – Government services provided through online portals.
 Supply Chain Management – Electronic coordination of suppliers, inventory, orders, warehousing,
transportation and delivery.

6. Driving Forces Behind E-Commerce

6.1 Technological Development

Major technologies include the Internet, smartphones, cloud computing, Artificial Intelligence, Big Data,
mobile applications and digital payment systems.

6.2 Globalization
The Internet allows businesses to operate across geographical boundaries and reach customers in different
countries.

6.3 Changing Consumer Behaviour

Consumers increasingly prefer convenience, fast delivery, online comparison, reviews, discounts and multiple
payment options.

6.4 Competition
Businesses need online channels to compete with other organizations.

6.5 Reduced Cost

Electronic systems can reduce costs associated with paperwork, communication, marketing and some physical
infrastructure.

6.6 Mobile Commerce

Smartphones have made shopping possible from almost anywhere.
6.7 Digital Payment Growth
Electronic payment systems have made online transactions easier.

6.8 Government Support

Government initiatives promoting digital services and digital payments can encourage e-commerce growth.

6.9 Improved Logistics

Better transportation, warehousing and tracking systems have improved online delivery.

6.10 Social Media

Social media allows businesses to promote products and communicate directly with customers.

7. Internet – Meaning, Evolution, Advantages and Disadvantages

7.1 Meaning
The Internet is a global network of interconnected computer networks and devices that communicate using
standard protocols. It enables users to share information and access services from different parts of the world.

7.2 Important Features of Internet

 Global connectivity
 Fast communication
 Information sharing
 24×7 availability
 Multimedia support
 Interactive communication
 Online transactions
 Distributed resources

7.3 Evolution of Internet

 ARPANET – An early computer network developed in the United States and an important foundation of
today's Internet.
 TCP/IP – The adoption of TCP/IP allowed different networks and computers to communicate using
common protocols.
 Academic and Research Networks – Universities and research institutions increasingly connected to
networked systems.
 Public Internet – Internet access expanded to businesses and the general public.
 World Wide Web – The Web made Internet resources easier to access through browsers and linked web
pages.
 Commercial Internet – Businesses began using the Internet for websites, advertising, online shopping and
customer service.
 Modern Internet – Today the Internet supports e-commerce, social media, cloud computing, streaming,
mobile applications, AI, IoT, online education and digital banking.

7.4 Advantages of Internet

 Information – Access to huge amounts of information.
 Communication – Email, messaging and video conferencing.
 Education – Online courses and digital learning resources.
 Business – Online marketing and e-commerce.
 Banking – Electronic banking and payments.
 Entertainment – Videos, music and games.
 Employment – Remote work and freelancing.
 Global Connectivity – Communication across geographical boundaries.

7.5 Disadvantages of Internet

 Cybersecurity – Hacking, malware and phishing.
 Privacy – Unauthorized collection or misuse of personal information.
 Fake Information – False or misleading information can spread rapidly.
 Addiction – Excessive Internet use can affect productivity.
 Online Fraud – Scams and financial fraud can occur.
 Technical Dependence – Internet outages can interrupt online services.
 Health Concerns – Excessive screen time can contribute to eye strain and other problems.

8. World Wide Web (WWW)

8.1 Meaning
WWW stands for World Wide Web. It is a system of interconnected web pages, websites and other resources
accessed through the Internet.

Important point: Internet is not the same as WWW. The Internet is the underlying global network, while the
WWW is a service that uses that network.

8.2 History of WWW

The World Wide Web was developed by Tim Berners-Lee. The Web introduced a convenient way of accessing
linked information through web browsers.

8.3 Components of WWW

 Web Browser – Software used to access web pages. Examples: Google Chrome, Microsoft Edge, Mozilla
Firefox and Safari.
 Web Server – A system that stores and delivers web pages and resources.
 Web Page – A document displayed in a web browser.
 Website – A collection of related web pages.
 URL – Uniform Resource Locator, which identifies the location of a resource on the Web. Example:
[Link]
 HTML – HyperText Markup Language, used to create the structure of web pages.
 HTTP – HyperText Transfer Protocol, which enables communication between web browsers and web
servers.
 HTTPS – Provides encrypted communication and is commonly used for secure websites and online
transactions.
How a Web Page is Accessed
User → Web Browser → Enter URL → Internet → Web Server → Server Processes Request → Web Page Sent
Back → Browser Displays Web Page

Example
 The student opens a browser.
 Enters the website URL.
 The browser sends a request.
 The web server receives the request.
 The server sends the required web resources.
 The browser displays the website.
 The student can browse products and place an order.

Internet and WWW – Important Difference

Internet WWW
Global network of networks Collection of interconnected web resources
Infrastructure Service operating over the Internet
Supports many services Mainly provides web pages and web resources
Includes email, FTP, VoIP, WWW, etc. Uses browsers, URLs, HTML and HTTP/HTTPS
Can exist without the Web Depends on Internet connectivity
.