E-Commerce & ERP - Unit 1: Overview of E-Commerce
Definition of E-Commerce
E-Commerce (Electronic Commerce) is the process of buying and selling
goods/services using electronic networks, primarily the Internet. It
includes online shopping, electronic payments, internet banking, online
ticketing, etc.
Advantages of E-Commerce
Global Reach - Sell to anyone, anywhere.
24x7 Availability - No time restrictions.
Reduced Costs - Reduces marketing, operational, and inventory costs.
Faster Transactions - Instant payments and order processing.
Better Customer Insights - Through data and analytics.
Disadvantages of E-Commerce
Security Issues - Risk of hacking, data breaches.
Delivery Delays - Logistics problems may occur.
Lack of Personal Touch - No physical interaction.
Internet Dependency - Cannot work without internet access.
Customer Trust - Harder to build than in physical stores.
E-Commerce & ERP - Unit 1: Overview of E-Commerce
Threats of E-Commerce
Threat Category Specific Threats Impact
Technical DDoS attacks, malware Website downtime, data loss
Financial Payment fraud, chargebacks Revenue loss, compliance penalties
Reputational Fake reviews, social media backlash Brand erosion, customer churn
Legal Non-compliance with regulations Fines, business suspension
Threat Mitigation Framework
Managerial Perspective
Managers must:
- Ensure secure infrastructure
- Plan logistics and supply chain
- Adapt marketing strategies for digital platforms
- Monitor and analyse customer data
- Stay compliant with legal norms
Rules & Regulations for Controlling E-Commerce
- Information Technology (IT) Act, 2000 - Covers cybercrime, digital signatures, electronic records.
- Consumer Protection (E-Commerce) Rules, 2020 - Focus on:
- Transparency in pricing
- Consumer grievance redressal
- Restrictions on fake reviews and misleading ads
E-Commerce & ERP - Unit 1: Overview of E-Commerce
Cyber Laws
Aim: To protect users and businesses from cybercrime.
Covers:
- Data protection
- Online contracts
- Digital signatures
- Cyber frauds
- IT Act, 2000 is the primary law in India governing cyber activities.
Short Questions with Answers – Unit 1: Overview of E-Commerce
1. Q1. What is E-Commerce?
Ans: E-Commerce is the process of buying and selling goods or services using electronic networks,
mainly the Internet.
2. Q2. Mention two advantages of E-Commerce.
Ans:
o Global reach (can sell worldwide)
o 24x7 availability (no time restrictions)
3. Q3. Mention two disadvantages of E-Commerce.
Ans:
o Lack of personal interaction
o Risk of cyber attacks and data breaches
4. Q4. What is Phishing?
Ans: Phishing is a cyber attack where fake emails or websites are used to steal sensitive information.
5. Q5. Name any two threats to E-Commerce.
Ans:
o Malware
o Denial of Service (DoS) attacks
6. Q6. What is the role of a manager in an E-Commerce setup?
Ans: A manager ensures secure infrastructure, manages logistics, plans digital strategies, and ensures
legal compliance.
7. Q7. Name any two cyber laws applicable to E-Commerce in India.
Ans:
o IT Act, 2000
o Consumer Protection (E-Commerce) Rules, 2020
8. Q8. What is the objective of the IT Act, 2000?
Ans: To regulate cyber activities, provide legal recognition to electronic transactions, and prevent cyber
crimes.
E-Commerce & ERP - Unit 1: Overview of E-Commerce
9. Q9. Mention any two rules under the Consumer Protection (E-Commerce) Rules, 2020.
Ans:
o Transparency in pricing
o Proper grievance redressal system
10. Q10. Give two examples of E-Commerce activities.
Ans:
o Online shopping through websites like Amazon
o Online payment via UPI or debit/credit cards
Cyber Crime:
Cyber crime refers to any illegal activity that involves the use of computers, digital devices, networks, or the
internet. These crimes are committed by cybercriminals to steal data, cause damage, disrupt services, or gain
unauthorized access to systems.
Common Examples
• Hacking
• Identity theft
• Online fraud & phishing
• Cyber bullying
• Virus and malware attacks
• Ransomware
• Unauthorized access to data
• Online financial scams
Measures to prevent cyber crime
I. Strong Authentication
• Use Strong, Unique Passwords
• Enable Multi-Factor Authentication (MFA/2FA)
II. Software and System Security
• Regularly update your operating system, web browser, and all applications.
• Install Antivirus/Anti-Malware Software
• Use a Firewall
• Backup Your Data
E-Commerce & ERP - Unit 1: Overview of E-Commerce
III. Online Behavior and Awareness
• Never click on links or open attachments in unsolicited or suspicious emails (phishing) or
messages.
• Verify Requests for Personal Information
IV. Financial Vigilance
• Regularly check your bank and credit card statements for any unfamiliar transactions
• Avoid conducting sensitive activities like online banking or shopping on public, unsecure Wi-Fi
networks.