1 chapter 1 [compatibility mode]

8/3/2019 1 Chapter 1 [Compatibility Mode]

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E-commerce is a general term for any typeof business, or commercial transaction

that involves the transfer of informationacross the Internet.

or

Electronic commerce is doing commercewith the use of computers, networks andcommerce-enabled software (more than

just online shopping)


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Brief History1970s: Electronic Funds Transfer (EFT)

Used by the banking industry to exchange accountinformation over secured networksLate 1970s and early 1980s: Electronic Data Interchange(EDI) for e-commerce within companies

Used by businesses to transmit data from one business

to another1990s: the World Wide Web on the Internet provides easy-to-use technology for information publishing and

disseminationCheaper to do business (economies of scale)Enable diverse business activities (economies of scope)


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Features of E-Commerce

1) payment:-

Enabling credit card, smart cards, E-Money and other payments along withelectronic funds transfer.

2) Service availability:-

It automates the conduct of business among enterprises, customers, suppliers andemployees anytime, anywhere.

3) Advertising and marketing:-

Advertising products and services.

4) sales:- Generating orders for the product.

5) fulfillment:-

Processing the order and delivering the product.

6) support:-

Providing pre and post sale assistance to generate more sales.

7) Inventory Management:-

Maintaining and reporting inventory status.

8) Secure communications:-

Fast, efficient, reliable communication with customers and parteners.

9) It allows to gather information from customers, while delivering a marketing andsales pitch through a web site.


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Elements of E-commerce1. a product.

2. A place to sell the product. Here the website displays the product in some way.

3. A way to get people to come to your web site.

4. A way to accept orders.

5. A way to accept money.

6. A fulfillment facility to ship product to customers.

7. A way to accept returns.

8. A way to handle warrantee claims if necessary.

9. A way to provide customer service.


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E-commerce Categories

There are five general e-commercecategories:Business to Consumer (or B2C) e-commerce

Business to Business (or B2B) e-commerce(sometimes called e-procurement)

Consumer to Business (or C2B) e-commerce

Consumer-to-consumer (or C2C) e-commerce

Business-to-government (or B2G) e-commerce


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Business-to-business (B2B) B2B web sites sell the product to the intermediate buyer who takes the product to the final

consumer.

Businessorganization

Website.wholesaler

customer


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Business-to-consumer(B2C) It is a website where all transactions takes place between a business organization

and the final consumer.


customer

website


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Consumer to consumer(C2C) In this category consumer sell directly to consumers.

Places an advertisement

Customer located inchina

Customer located inlondon


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Consumer-to-business(C2B)

In such sites, the consumer places an estimate of the amount of money he iswilling to spend for a particular service..

Customer locatedIn India.

Customer located inlondon

WebsitePlaces an add.


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Business to government(B2G) B2G website is a variation of the B2B website.

It is a website used by the government to exchange information and trade withvarious organizations across the world.

B2G web site would:

1. Be accredited by the government.

2. List all the rules and regulations pertaining to the specific industry.

3. Provide a medium for the submission of forms and applications to the government.


websiteGovernment.


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Government to Citizen (G2C)

A G2C website is an attempt by the government to reach out to people in general.

Governments regularly conducts auctions and sales of vehicles, machinery etc.

These auctions are highly valued and visited by customers.

Main objective of G2C are:

1. Reduce the average time for citizens to find benefits and determine eligibility.

2. Reduce the number of clicks to access relevant loan information.

3. Increase the number of citizens filling taxes electronically.

4. Reduce the time for citizens to find information on recreational opportunities.

governmentwebsite


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E-commerce applications

Supply chain management

Video on demand

Remote banking

Procurement and purchasing Online marketing and advertisement

Home shopping

Auctions


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Benefits to organization

1. E-commerce expands the market place to national and international markets.

2. It decreases the cost of creating, processing, distributing, storing.

3. Ability for creating highly specialized business.

4. It reduces the time between outlay of capital and the receipt of product & services.

5. It allows to reduce inventories.

6. Improved image.

7. Improved customer service.

8. New found business partners.

9. Simplified processes.10. Compressed cycle and delivery time.

11. Increased productivity.

12. Eliminating paper.

13. Reduced transportation cost.

14. Increased flexibility.


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Benefits to consumers1. Customers can do transactions 24 hours a day.

2. It provides customers with more choices.3. It allows quick delivery.

4. It provides customers with less expensive products and services by allowing them toshop in many places and conduct quick comparisons.

5. Customers can participate in virtual auctions.

6. Customers can receive relevant and detailed information in seconds, rather than indays.

7. It facilitates competition, which results in substantial discounts.


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Limitations of E-commerce.( Technical)

1. There is lack of system, reliability and standards.

2. The software development tools are still evolving and changing rapidly.

3. There is insufficient telecommunications bandwidth in many countries.

4. Vendors may need special web servers and other infrastructures, in addition to thenetwork servers.

5. Some E-commerce software might not fit with some hardware, or may be incompatiblewith some operating system or other components.

Non-Technical Limitations.1. Lack of touch and feeling online.

2. Still evolving and changing rapidly.

3. Many legal issues are as yet unresolved.

4. There are not enough sellers and buyers.

5. There are not enough support services.

6. Accessibility to internet is still expensive.


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ECOMMERCE FRAMEWORK

Policy,

Legal,Privacy

Issues

Technical

Standards

ForDocuments

Security

Network

Protocols

ECOMMERCEAPPLICATIONS

Common Business Services

Messaging & Info Distribution

Multimedia Content &

Network Publishing

Network


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1. Common Business Services:- for facilitating the buying andselling process.

2. Messaging and information distribution:- as a means of sending

and retrievinginformation.

3. Multi-media content and network publishing:- for creating a

product and a means to communicate about it.

4. The information Superhighway:- for providing the highwaysystem along which all e-commerce must travel.

5. Information and multimedia content:- it determines what kind ofvehicle is needed.

6. Technical standards:-

these are final pillars without which the impact of this revolutionwould be minimized.

Standards are crucial in the world of e-commerce, to ensure notonly `