St.

Xavier's Department of Commerce

College Ranchi Presentation:
[Link] (2025)
E-Commerce
(UNIT-1)
Semester:1
Section: A
Group: (61-75)
UNIT-1: E-Commerce and its Technological Aspects
TOPICS:
➢Overview of developments in It
➢Internet Commerce
➢Benefits and Limitations of E-commerce
➢The scope of E-Commerce
➢Electronic Market
➢Electronic Data Interchange
➢Generic framework for E-Commerce
➢Architectural Framework of E-Commerce
➢Web based E-Commerce architecture
 ➢ Overview of Developments in Information Technology
➢ Progress in the field of technology,
computers, and telecommunications
supports the development of internet
technology.
➢ In ancient times humans have been familiar with cross-country trading activities, which
are carried out by exploring continents around the world with simple vehicles or transportation.
Technology development proved very helpful to humans and make human life easier.
➢ The use of the internet has experienced tremendous developments in the business sector,
especially in large scale companies. Since the discovery of internet technology in the 1990s
its use has expanded because it is seen as providing enormous benefits for the smooth
running of the business or business activities.
➢ With the existence of e-commerce services (started off
in 1994) all services desired by customers can be
immediately followed up as quickly as possible, so that
the company will be able to provide the best and
fastest service for customers.
➢ The development of the World Wide Web in the 1990,
gave E-commerce a brand new identity, making it
faster and easier for companies to reach their
consumers. In today’s generation, almost every
business conducts some sort of e-commerce, whether
it means taking credit cards or accepting online
orders.
➢Internet Commerce or E-Commerce
DEFINITION
➢ Electronic commerce, commonly known as E-
commerce is trading in products or services using
computer networks, such as the Internet.
➢ E-Commerce is a super set of business cases. It
includes Online transactions, Digital payment
methods, Internet based platforms, etc.
➢ In short, Sharing business information, maintaining
business relationships and conducting business
transactions using computers connected to
telecommunication network is called E-Commerce.
 Features of E-Commerce
[Link]:
Tailoring products, services, and content to individual customer preferences
and behaviors.
2. Ubiquity:
E-commerce is available anytime and anywhere, eliminating physical
boundaries for consumers and businesses.
3. Information Density:
Provides vast amounts of detailed product and market data, enhancing decision-making for both buyers and sellers.
4. Global Reach:
Enables businesses to connect with and sell to customers across the world, expanding their market reach.
5. Interactivity:
Allows two-way communication between businesses and customers, improving engagement and feedback.

6. Universal standard:
Utilizes common internet standards make business processes and communication more efficient and cost-effective.
7. Richness:
Supports rich content (text, audio, video) to deliver detailed, engaging information and experiences.
 Threats of E-Commerce
Exploring database queries to access,
Deceptive attempts to steal sensitive modify, or delete sensitive
information by impersonating trusted information.
entities online.

Unauthorized use of Overwhelming a

payment card details website with massive
to make purchases or traffic to make it
steal money. unavailable.

Inserting malicious
scripts into trusted
websites to steal or
hijack sessions. Automated programs that scrape data,
perform fraudulent activities, or disrupt
operations.
➢Benefits and Limitations of E-Commerce
Benefits: Limitations:
➢ Buying/selling a variety of goods and ➢ Electronic data interchange is
services from one's home or business. expensive for small businesses

➢ Anywhere, anytime transaction ➢ Security of internet is not very good -

and Electronic funds transfer faster. viruses, hacker attacks can paralise e-
commerce
➢ Can look for lowest cost for specific
goods or service. ➢ Privacy of e-transactions is not
guaranteed
➢ Businesses can reach out to worldwide
clients - can establish business ➢ E-commerce de-personalises
partnerships. shopping
➢ The Scope of E-Commerce
➢ The potential for e-commerce development is enormous.
Now a days one can buy any product online through
different sites. E-Commerce is a super set of business
cases. It includes E-trading, E-Franchising, E-Mailing,
E-Engineering etc. Scope of e-commerce can be
enumerated as follows:
1. Exchange of Digitized Information :
It represents communication 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. 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.
 3. Technology-enabled :
E-Commerce is about technology-enabled transactions.
Web browsers are perhaps the best Know of these
technology-enabled customer interfaces. Business manage
transactions with customers and markets strictly through
human interaction; In e-commerce, such transitions can be
managed using technology.
4. Customers retention:
E-Commerce enables organizations to get classified and
customized market information that helps in retaining
customers through fast order fulfillment and effective

5. Supplier integration: customers relationship management (CRM).

It is the strategic effort to enhance collaboration and coordination between a company

and its suppliers. This involves aligning procurement processes, information flow, and
even product development to create a more efficient and responsive supply chain.
➢ Electronic Market
An electronic market or e-market is an online platform that
enables buyers and sellers to interact and conduct
transactions electronically. It's a virtual marketplace where
products and services are bought and sold over the internet. Online Stock Exchange
➢ Online platform: ➢ Real Time Transactions:
E-Markets operate on digital
platforms, allowing buyers
Transactions can be
conducted in real time, Examples
and sellers to connect enabling fast and efficient
remotely. trading.
characteristics Digital Marketplace
➢ Global Reach: ➢ Digital Products:
E-Markets can reach a E-Markets can facilitate the
global audience, sale of digital products, such
increasing market access as software, e-books, and
and oppurtunities.
. streaming services. E-Commerce Platforms
 Benefits of Electronic Market
1. Increased Efficiency:
E-Markets can reduce transaction costs and increase the
speed of transactions.
[Link] Accessibility:
E-Markets can reach a wider audience, including remote or
underserved communities.
3. Increased competition:
E-Markets can promote competition among sellers, leading
to better prices and services.
Future of Electronic Market
Today, marketplaces are growing at a very fast pace.
Analysis predicted that worldwide marketplaces would
account for 40% of the global online retail market.
Marketing experts also says that by placing our business
where our customers want to buy from will benefit our
companies revenue from selling via online marketplaces.
➢Electronic Data Interchange:
Definition:
Electronic Data Interchange or EDI is
the communication of business information
in standardized electronic form between ➢ Why EDI ?
computers. It is Commonly used by ➢ Reduces transactions cost.
➢ Improves speed of information
organizations with large volumes of regular exchange.
➢ Strenghthen relationships with
transactions. Example: Large retail chains trading partners.
➢ Eliminates the need for printed
using EDI for supplier transactions. orders, invoices, and manual
handling.
 Applications of EDI:
1. Role of EDI in international trade:
• Reduced transaction expenditures and Quicker movement of imported & exported goods.
• Faster customs clearance & reduced opportunities for corruption, a huge problem in trade.
2. Interbank Electronic Funds Transfer (EFT):
• EFTS is credit transfers between banks where funds flow directly from the payer‘s bank to
the payee‘s bank.
3. Health care EDI for insurance EDI:
• EDI is becoming a permanent fixture in both insurance & health care industries as medical
provider, patients, & payers.
• Electronic claim processing is quick & reduces the administrative costs of health care.
4. Manufacturing & retail procurement using EDI:
• These are heavy users of EDI.
• In manufacturing, EDI is used to support just-in-time.
• In retailing, EDI is used to support quick response.
 Layers of EDI:
Describes the business application
(purchase orders, invoices,
acknowledgements).

Specifies business form structure

so that information can be
exchanged.

Sending method (post, courier,

fax, email), emphasizes
automation and legal status.

Dial-up lines, Internet, value-added

network, etc.
 Information Flow with EDI:
➢ Buyer sends purchase order to seller
computer
➢ Seller sends purchase order
confirmation to buyer
➢ Seller sends booking request to
transport company
➢ Transport company sends booking
confirmation to seller
➢ Seller sends advance ship notice to
buyer
➢ Transport company sends status to
seller
➢ Buyer sends Receipt advice to seller
➢ Seller sends invoice to buyer
➢ Buyer sends payment to seller
➢Generic Framework of E-Commerce
A generic framework of e-commerce is a ready-made
structure that outlines how an online store functions
and includes all the basic parts needed to build an
online store. It includes-
1. User Interface – Website or app for browsing and buying.
2. Product Catalog – Displays product info and pricing.
3. Shopping Cart – Lets users collect items to purchase.
4. Checkout System – Handles payment and order confirmation.
5. Order Management – Tracks processing, shipping, and delivery.
6. Backend/Admin Panel – Manages products, users, and data.
7. Security & Payments – Ensures safe transactions via gateways.
8. Customer Service – Support for returns, queries, etc.
 Purpose:
➢This framework can be
reused and customized
by any e-commerce
business, saving time
and effort in
development.
➢The framework makes it easier to build, maintain and scale an e-
commerce platform by providing a clear and organized structure.
 Benefits:
2. Cost Efficiency:
1. Faster Development: Reuses standard components,
Provides ready-made lowering development and
modules, reducing the time maintenance costs.
needed to build and deploy
an online store.
4. Security:
3. Scalability: Includes built-in security
Supports growth by allowing easy
practices to protect transactions
integration of new features and
and customer data.
handling increased traffic.
➢ Web-Based E-Commerce Architecture
➢ Web-based E-commerce is one of the
fastest-growing segments of the technology
that defines the business strategy.

➢ It provides easy and better communication

between geographically separated buyers
and sellers.

➢ Web-based E-commerce continues to

improve convenience and versatility using
increased processing power and expanded
cellular capabilities and makes it more
reachable to the customers.
 Steps to Design Web-Based E-Commerce Architecture
1. Planning for Web-based E-commerce architecture:
This involves creating a blueprint for how the online business system will work, including
technology selection, features, and user interface design. Good planning ensures efficiency,
scalability, and smooth operation.
2. Understanding the roles of buyers and sellers:
It’s essential to identify how buyers and sellers interact, their goals, and their
responsibilities in the platform. This helps in designing features that cater to each party’s
needs effectively.
3. Analyzing the requirements of buyers and sellers:
This step gathers specific needs such as payment options, delivery preferences,
security, and communication tools. Understanding these requirements ensures the
platform meets user expectations.
4. Resolving the issues in Web-based E-commerce:
This involves identifying and fixing problems such as security vulnerabilities, slow
performance, or usability challenges. Continuous issue resolution improves user trust and
satisfaction.
➢Architectural Framework of E-commerce
The architectural framework of e-commerce refers to the
layered structure, components, and technologies that
work together to enable online buying and selling.
It’s essentially the blueprint for how an e-commerce
system operates — from the customer’s screen to the
back-end databases and payment systems. There are
mainly four types of business models based on
transaction party:
[Link]-to-Business (B2B):

In a Business-to-Business E-commerce
environment, companies sell their online goods
to other companies without being engaged in
2. Business-to-Consumer (B2C):
In a Business-to-Consumer E-commerce environment,
companies sell their online goods to consumers who are
the end users of their products or services.
3. Consumer-to-Business (C2B):
In a Consumer-to-Business E-commerce environment,
consumers usually post their products or services online on
which companies can post their bids. A consumer reviews the
bids and selects the company that meets his price expectations.
4. Consumer-to-Consumer (C2C):
In a Consumer-to-Consumer E-commerce
environment consumers sell their online goods to
other consumers. A well-known example is eBay.
 E-Governance
E-governance is the application of information
and communication technology (ICT) for
delivering government services, exchange of
information communication transactions,
integration of various stand-alone systems and
services between government-to-customer
(G2C), government-to-business (G2B),
government-to-government (G2G). The three
main target groups that can be distinguished in
governance concepts are government, citizens
and businesses/interest groups.
Architecture of E-Commerce Applications
In a 2-tier e-commerce architecture, the client
(front-end) handles the interface, and the server
(back-end) processes requests and manages the
database. It’s simple and fast but less scalable.

In a 3-tier e-commerce architecture, the presentation

layer (UI), application layer (business logic), and
database layer are separate. This improves scalability,
security, and maintainability compared to 2-tier
systems.
 Conclusion
➢E-commerce, powered by cutting-edge technology, has revolutionized how
businesses and consumers connect.
➢Tools like AI, secure payment systems, mobile platforms, and data
analytics make shopping faster, smarter, and more personalized.
➢ While challenges such as cybersecurity and privacy remain, the fusion of
commerce and technology continues to drive innovation—reshaping
markets and creating a more connected, accessible global economy.