E-Commerce

2. What is e-commerce?
Electronic commerce, commonly
known as e-commerce is a
type of industry where buying
and selling of product or service
is conducted over electronic
systems such as the Internet
and other computer networks.
It draws on technologies such
as mobile commerce, Electronic
funds transfer(EFT), Internet
marketing, online transaction
processing, electronic data
interchange (EDI).

3. The Seminal Act of e-commerce

6. B2B (Business- to- Business)
It involves the exchange of services, information &products
between two businesses. It takes the form of automated
processes between trading partners & is performed in much
higher volumes than B2C applications.
Example: UN/EDIFACT(United Nations/ Electronic Data
Interchange For Administration, Commerce and Transport) are
well known established B2B standards
C2B(CONSUMER –TO-BUSINESS)
Consumers directly contacts business vendors by posting their
Project work & budget online, so that needy companies review
it & contact the customers directly with their bids. Customers
then review all the bids & selects the company for further
processing.
Example: getacoder.com, guru.com, etc

7. B2C( BUSINESS-TO-CONSUMERS)
It involves the exchange of products, services &information between
business & a consumer.B2C is a form of electronic commerce in which
products .Services are sold from a firm to a consumer.
Need to purchase a high- end computer or want to book your trip for
Holidays Or want to buy a book? With the advent of e-commerce, all
this can be one purchased in minutes without any human intervention!!!
C2C(CONSUMER-TO-CONSUMER)
It is an internet facilitated form of commerce that has existed
forever in the form of Barter system, Flea Markets, etc.

8. ADVANTAGES DISADVANTAGES
1.
• Reduced Cost to Buyer &
Supplier.
2.
• Information Sharing,
Convenience and Control.
3.
• Higher Margins.
4.
• Equal Access to Global
Markets.
5.
• Faster Time to Market.
6.
• Being Able to Access
Markets 24X7.
1.
• Customer Relations Problem.
2.
• Threat of Hacking.
3.
• Loss of Paper Audit Trail.
4.
• Exposure of Data to Third
Parties.
5.
• More Time Required for Physical
Delivery of Products.
6.
• System Scalability.

9. Some common applications related to electronic commerce are
the following:
Document automation in supply chain and logistics
Domestic and international Payment systems
Enterprise content management
Group buying
Automated online assistants
Instant messaging
Online shopping and order tracking
Newsgroups
Online office suites
Shopping cart software
Teleconferencing
Electronic tickets
Social-Networking

10. Electronic data interchange(EDI)
Electronic data interchange(EDI) is a
method for transferring data between
different computer systems or
computer networks.
EDI is used for routine business
documents like Purchase Orders and
Invoices. It is not used for non-routine
business documents like complicated
contracts or information meant for
humans to read and analyze.

11. Electronic funds transfer (EFT) is the electronic exchange,
transfer of money from one account to another, either within a
single financial institution or across multiple institutions,
through computer-based systems. One can transfer money
from his account just by a single click.
The transfers are based on EDI technology transfer of
funds and involves minimum amount of data interchange
between two parties.

13. Value Added Network (VAN)
• VAN is a private network provide i.e. hired by a
company to facilitate EDI or provide other
network services.
• Simplify the communication process by
reducing the number of parties
• Typically operate on a mailbox scenario
(intermediary)
• Intended to save cost and time.
• Limited applicability now.(WWW)

14. VAN Model
RETAILER 1
RETAILER 2
RETAILER 3
RETAILER 4
WHOLESALER 1
WHOLESALER 2
WHOLESALER 3
WHOLESALER 4
VALUE
ADDED
NETWORK

15. E-Marketplace brings together buyers and sellers to
facilitate a mutually satisfying transaction. The
online markets which fulfill following criterion are
fitted to be E-Markets.
Critical mass of buyers and sellers.
Interactivity
Negotiation and Bargaining
New products & services.
Less time consuming.

17. “Ignoring Online Marketing is like Opening a
Business and but not telling anyone.”

18. What is Online Marketing?
• Uses the Internet to deliver promotional
marketing messages to consumers
• Requires both Publisher and Advertiser
• Benefits
– Economical
– Formatting(Interactive)
– Measurability of Effectiveness
– Speed
– Mass Reach

19. How?
• Banners
• Search Engine Marketing
• Social Media Marketing
• Online Classified Advertising
• Mobile Advertising
• Adware

21. Online Purchase Procedure
RETURNS
MARKETING
SERVICES
PROCESS
CREATES
THIRD PARTY
OR FINANCIAL
INSTITUTIONS
DISPLAYED ON
ACCESS
SELECTION

24. PAYMENT
(EFT, E-CASH, E-CHEQUE ,etc)
PAYMENT
(CREDIT CARD, CHEQUE,CASH)
PRODUCT/
SERVICES
PRODUCT/
SERVICES

25. CREDIT CARDS
TRANSACTION
USING THIRD
PARTY
VERIFICATION
SECURED
ELECTRONIC
TRANSACTION
JOINT
ELECTRONIC
TRANSACTION
ELECTRONIC
CHEQUES
SMART CARDS
ELECTRONIC
PURSES

26. CREDIT CARDS
In a credit card transaction, the consumer presents preliminary proof
of his ability to pay by presenting :his credit card number to the
merchant.Merchant in return verifies it with bank and endorses
payment slip to the consumer.
The same scenario is followed in payment over Internet. A high level
of security & authentication is provide to buyers and sellers.
Credit cards can be handled online in two different ways:
Sending unencrypted credit card numbers over the internet.
Encrypting credit card details before any transactions
are transmitted.

27. TRANSACTION USING THIRD PARTY
VERFICATION
A third is an independent party like exchange which maintains details of
buyer and supplier accounts. They are also known as clearing house or
settlement house.. After the execution and receipt of any transaction , the
exchange transfers funds from buyer to supplier account as a statement.
SECURED ELECTRONIC TRANSACTION
(SET)
SET was developed by a consortium led by MasterCard and Visa. SET uses
digital signature to ensure that identities of all parties involved in a
purchase while designing for cardholders, merchants, banks, and other card
processors are kept safe. It also encrypts credit card and purchase
information before transmission on the internet.

28. JOINT ELECTRONIC TRANSACTION
Joint Electronic Payment Initiative is an attempt to standardize
payment negotiations. On the buyer’s side it serves as an interface to
use variety of payment protocols. On the merchant’s, side it acts
between the network and transport layers to pass off the incoming
transactions to the proper transport.
ELECTRONIC CHEQUES
Transferring money from your checking account to another over the
internet. The two system have been developed i.e. FSTC (Financial
Services Technology Consortium) and Cyber cash have been
developed to let consumers use electronic cheques to pay Web
merchants directly.

29. SMART CARDS
Smart Cards have an embedded microchip instead of magnet strip. It
contains all the information about the balance in account and deduct the
purchases made from that total. There are three types of smart cards :-
Contact Cards,
Contactless Cards and
Combi Cards.
ELECTRONIC PURSES
Electronic purses is a way to make payment electronically which is similar to
a prepaid cards and can be used as an ATM and credit cards as well. Validation
in it is done through Personal Identification Number (PIN Number). No
credit check or signature is needed.

30. Faster business cycles
Accurate because of no re-keying of data
Simple
Secure
Lower inventory
Streamlines the ability to enter new territories and
markets.
Research has consistently shown that EDI costs only
one third of its paper-based equivalent.

32. India's e-commerce market was worth about $2.5 billion in
2009, it went up to $6.3 billion in 2011 and to $14 billion
In2012. About 75% of this is travel related. Online Retailing
comprises about 12.5%. Unique to India (and potentially
to other developing countries), cash on delivery is
a preferred payment method. India has a vibrant cash
economy as a result of which 80% of Indian e-commerce
tends to be Cash on Delivery. Demand for international
consumer products is growing much faster than in-country
supply from authorized distributors and e-commerce
offerings. Electronics and Apparel are the biggest
categories in terms of sales.

33. Key drivers in Indian e-commerce are:
Increasing broadband Internet and 3G penetration.
Rising standards of living and a burgeoning, upwardly mobile middle
class with high disposable incomes
Availability of much wider product range compared to what is available
at brick and mortar retailers
Busy lifestyles, urban traffic congestion and lack of time for offline
shopping
Reduced inventory and real estate costs.
Increased usage of online classified sites, with more consumer buying and
selling second-hand goods.
Evolution of the online marketplace model with sites like eBay, Infibeam,
and Tradus. The evolution of ecommerce has come a full circle with
marketplace models taking center stage again.
The e-commerce market in India is set to grow the fastest within the
Asia-Pacific Region at a CAGR of over 57% between 2012–16.

34. SOME FACTS
• IRCTC (Indian Railways), MakeMyTrip and Yatra are
amongst the most visited travel sites in India.
• Flipkart leads the way among the online retailers in
India with 7.4 million unique visitors a month, growing
at 431% annually.
• Snapdeal has been close second with 6.9 million
unique visitors.
• Apparel has been the fastest growing subcategory in
retail and reaches 13.4% online users in India.