NAME - SWETA JHA T.Y.BMS (Vth Sem) 2007-2008
1. 2. 3. 4. 5. 6. 7.
INTRODUCTION OF E-COMMERCE WHAT DO YOU MEAN BY COMMERCE DEFINITIONS OF E-COMMERCE HISTORICAL DEVELOPMENT THE ELEMENTS OF A TYPICAL COMMERCE THE ELEMENTS OF E-COMMERCE MODELS OF E-COMMERCE Business-to-consumer Business-to-business Consumer-to-consumer transactions Common Technology Differences of B2B and B2C E-Commerce –Case Studies leading the Tansformation
Intel Amazon eBay
9. 10 . 11 . E-COMMERCE PROCESS E-COMMERCE PROCESS CYCLE BENEFITS OF E-COMMERCE
12 . 13 . 14 . 15 . 16 . 17 . 18 . 19 . 20 . 21 . 22 . 23 . 24 .
SUCCESS FACTORS IN E-COMMERCE PROBLEMS PRODUCT SUITABILITY ACCEPTANCE E-COMMERCE TECHNOLOGIES E-COMMERCE STANDARDS E-COMMERCE SOFTWARE SOLUTION SALES AND MARKETING CYCLE ELECTRONIC STOCK TRADING ELECTRONIC BANKING SECURE ELECTRONIC TRANSACTION 2007 INFORMATION SECURITY TIPS FOR SMALL BUSINESSES FUTURE EXPECTATION ABOUT THE ECOMMERCE
particularly through the internet with its open protocols. & ATMs are always within a reach for quick. 26 .
ELECTRONIC COMMERCE COMPANIES BIBLOGRAPHY
The idea of doing business electronically over networks is nothing new: We think nothing of ordering the products we’ve seen advertised on television on in printed catalog with a phone call or a fax. & consumers’ flocks to local outlets of national &international franchise networks.E-commerce
25 . easy. forward looking business will be able to make their product
. and automatic banking. Corporations advertise through broadcasting & networks. As the world become increasingly interconnected.
& not lose any product to theft. While the techniques for attracting consumer attentions. Electronic consumers need to feel confident they can safely select and take delivery of products. delivering & supporting customers. & not be concerned about compromise of payment information ( like credit card or bank account no.& earn a profit in the process. describing products. how you will be buying & selling in the future. simple secure . & delivering them electronically will be of interest to those who wish to participate in this new markets. but they all share the goal of making commercial transaction over the internet safe . or using more traditional channels to carry sensitive information. without having to create & maintain their own private network s for selling. & how it will work. this project simply explain how business transaction can be executed across an unreliable & unsecured medium like the internet. but can be categorized as either creating secure & reliable channel to carry transaction across internet connection (which are inherently unsecured & unreliable). The method employed to achieve these ends are somewhat more various.
. & discussed some of the methods currently being planned & implemented – in other words.). get paid for all products purchased. to avoid losses to fraud.E-commerce
available to a global market. pay for them. Electronic merchants need to feel confident they can safely market & deliver their product. The number of businesses devoted to promoting commerce on the internet has been growing like Topsy since the end of 1994. Everyone wants to feel confident that the individuals they deal with across the internet are who they say they are.
“Search for better ways to do things and you will find success”
The study of e-commerce is much broader that the current enthusiasm for home shopping on the web. The objective behind the preparation of the project on
“E-Commerce Internet” is:-
To know the importance of E-commerce in today’s environment.
the public. buyers and sellers exchange and transport goods from one place to another.E-commerce
To make readers aware of the role played by E-commerce in big organizations. or other members of
commerce. To make readers aware that E-commerce is a double edged sword. selling. But rather than conducting business in the traditional way—in stores and other “brick and
. Electronic Commerce (also referred to as EC. buying. using internet e-commerce. If it is properly used it can be a boon or a blessing. but if it is abused or misused it can also act as a curse. marketing and servicing of products or services over electronic systems such as the Internet and other computer networks.
Informal business to business transaction using internet eConsumer transaction with business. To make readers aware that E-commerce is a double edged sword. but if it is abused or misused it can also act as a curse.
INTRODUCTION OF E-COMMERCE
Electronic Commerce is exactly analogous to a marketplace on the Internet. E-commerce follows the same basic principles that traditional commerce follows—that is. If it is properly used it can be a boon or a blessing. e-commerce eCommerce or ecommerce) consists primarily of the distributing.
clothing. Internet technologies also permit sellers to track the interests and preferences of their customers with the customer’s permission and then use this information to build an ongoing relationship with the customer by customizing products and services to meet the customer’s needs. e-commerce offers a way to cut costs and expand their markets. food. Business-to-
. E-commerce offers buyers convenience. without having to leave their homes or offices. by downloading it over the Internet.E-commerce
mortar” buildings or through mail order catalogs and telephone operators— in e-commerce buyers and sellers transact business over networked computers. a music file. Automated order tracking and billing systems cut additional labor costs. furniture. ecommerce firms have no distribution costs. retail transactions made up the largest part of e-commerce. and if the product or service can be downloaded. or computer software. consumers can immediately obtain a product or service. or maintain a store or print and distribute mail order catalogs. electronics. automobiles. For sellers. hotel rooms.
At the close of the 20th century. airline tickets. In some cases. books. They can visit the World Wide Web sites of multiple vendors 24 hours a day and seven days a week to compare prices and make purchases. such as an electronic book. Consumers purchased computers. and countless other commodities over the Internet. sellers have the potential to market their products or services globally and are not limited by the physical location of a store. staff. event tickets. They do not need to build. Because they sell over the global Internet.
for example. have failed for the most part because customers want to test the comfort of an expensive item such as a sofa before they purchase it. usually for money. Many people also consider shopping a social experience. Consumers also need to be reassured that credit card transactions are secure and that their privacy is respected.E-commerce
business commerce represented one of the fastest growing segments of ecommerce. For instance.
. Consumers are reluctant to buy some products online. however. is a link in the chain of the commerce. When one thinks of different ways. Online furniture businesses. Businesses ordered supplies and coordinated complicated projects electronically E-commerce also has some disadvantages. When you buy something at a store you are participating in commerce. Going to work each day for a company that produces a product. he/she immediately recognize several different players of the commerce such as:
Buyers: These are the people or organization with money who want to purchase goods & service products. an experience that they cannot duplicate online.
WHAT DO YOU MEAN BY COMMERCE
Commerce is the exchange of goods & services. E-Commerce according to Person Halls book E-Commerce started in 1994 with the first banner ad being placed on a website. they may enjoy going to a store or a shopping mall with friends or family.
Wholesalers are also known as distributors.E-commerce •
Sellers: These are the people who offer goods & service to buyers. manufacturing. settlements of accounts using a variety of computer networks”. e-commerce refers to the paperless exchange of business information using electronic data interchange. Producer may is classified in the category of a seller. In a holistic sense electronic commerce can be summarized as:
. commercial transactions.
DEFINITIONS OF E-COMMERCE
“What is E-Commerce? E-Commerce supports an entire range of activities such as product design. electronic mail. Sellers are recognizing in different forms such as retailers who sell directly to consumers and wholesalers who sell to retailers & others. Thus. electronic fund transfer & other networked based technologies. They can sell their products to any category to customers.
Producers: these are the people organization that create the product & services that seller’s offer to buyers. advertising.
It is an evolution in the way companies’ internet. It improves external business relationships.E-commerce
It is a business strategy. usually for money. When you buy something at a store you are participating in commerce. is a link in the chain of the commerce. It uses technology to achieve business goals. It provides information to facilitate delivery of goods & services. When one thinks of different ways. Going to work each day for a company that produces a product. he/she immediately recognize several different players of the commerce such as:
Buyers: These are the people or organization with money who want to purchase goods & service products.
WHAT DO YOU MEAN BY COMMERCE
Commerce is the exchange of goods & services.
Producers: these are the people organization that create the product & services that seller’s offer to buyers. it came to include activities more precisely termed "Web commerce" -. for example. data mining and data warehousing.the purchase of goods and services over the World Wide Web. In the 1970s and 1980s. from the 1990s onwards. Wholesalers are also known as distributors. this would also (ATM) and telephone banking in the 1980s was also forms of e-commerce. where both were introduced in the late 1970s. usually using technology like Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). this would include enterprise resource planning systems (ERP). In the dot com era. However. usually with secure connections (HTTPS. E-commerce is the complete set of processes that support commercial/ business activities on a network. "electronic commerce" meant the facilitation of commercial transactions electronically. The 'electronic' or 'e' in e-commerce refers to the technology/systems. the 'commerce' refers to be traditional business models.E-commerce •
Sellers: These are the people who offer goods & service to buyers. to send commercial documents like purchase orders or invoices electronically. Sellers are recognizing in different forms such as retailers who sell directly to consumers and wholesalers who sell to retailers & others. Originally. a special server protocol that
The meaning of the term "electronic commerce" has changed over the last 30 years.
supply-chain management software.
. between 1998 and 2000. Subsequently. Examples are broadband and fiber-optic networks. The ever growing dependence of modern industries on electronically enabled business processes gave impetus to the growth and development of supporting systems. from e-banking to offshore manufacturing to e-logistics. customer relationship management software. like credit card payment authorizations. Albertsons and Safeway. two traditional supermarket chains. a substantial number of businesses in the United States and Western Europe developed rudimentary web sites. after the collapse of online grocer Webvan. including backend systems. Although a large number of "pure e-commerce" companies disappeared during the dot-com collapse in 2000 and 2001. However. it took about four years for security protocols (like HTTPS) to become sufficiently developed and widely deployed. applications and middleware. When the Web first became well-known among the general public in 1994. both started e-commerce subsidiaries through which consumers could order groceries online. For example. inventory control systems and financial accounting software. many "brick-and-mortar" retailers recognized that such companies had identified valuable niche markets and began to add e-commerce capabilities to their Web sites. it encompasses a very wide range of business activities and processes. Today. many journalists and pundits forecast that e-commerce would soon become a major economic sector.E-commerce
encrypts confidential ordering data for customer protection) with e-shopping carts and with electronic payment services.
The emergence of e-commerce also significantly lowered barriers to entry in the selling of many types of goods. you will not be able to sell anything. Often. we tend to think of the place as a store or shop.
The Elements of a typical commerce
The basic elements of typical commerce activity are listed as below:
Product or service: One must have a product or service to offer. For most physical product. small sellers use online auction sites such as EBay(tm). Place can sometimes be very ephemeral for example a phone number may be a place.
Marketing: you need to figure out a way to get people to come to your place.com. or sell via large corporate websites like Amazon. It is very important component of commerce.
Method of accepting orders: in a mail order company the orders come in by mail or phone & are processed by the employees in the organization. in order to take advantage of the exposure and setup convenience of such sites. This process is known as marketing. The product may be from a piece of paper to an airplane:
Place: one must have a place to store the product for marketing. accordingly many small home-based proprietors are able to use the internet to sell goods. If the people are not aware of the place & way to reach the place.
. in such a situation warranty claim are to be honored. B-to-B transaction often use purchased orders. all the above listed elements are available but hey are having slight variation in the real life situation. which may not be possible in case of physical product of commerce activity.E-commerce (5)
Method of accepting money: If you are at Wal-Mart you can pay in cash or by cheque or by credit card for your purchases.
Warranty Claims: Sometimes if the product breaks in the way before delivery or some other problems crop up with the product.
The Elements of E-commerce
In case of an E-commerce. after its delivery during the warranty period.
Method of Delivery: You need to have a way to deliver the product or service. (1) A Product or service: In case of E-commerce. (2) A place to sell the product: In the e-commerce case. Method of accepting Returns: If the customer is not happy with your product then you need a way to accept a return. it is virtual product shown on a web site. One can demonstrate multimedia presentation of the product & its entire feature on the web page itself. a website displays the products in all ways & act as a place for E-Commerce. & some of the products & service are delivered continuously. Many businesses do not require the payment at the time of delivery.
A way to accept returns: As is the case of commerce. buyers and sellers are in direct contact with each other. e checks. smart cards.of payment is routed through Value Added Networks (VANs) and Payment Gateway Systems. etc. On the web pages of the E-commerce companies shopping carts are being provided. One can click on the icon and fill in the shopping card to order items to be purchased and it is accepted by the Ecommerce Company as order from the customer. In such situation. in case of [commerce all the trading companies have the system of accepting the returns if the goods and services are not to the satisfaction of the customer or not up to the standards/ specifications mentioned in the product catalogs or brochures hosted on the web pages.
. The payments in Ecommerce are made using Electronic Fund Transfer in various form using credit cards.E-commerce
A way to get customers to visit your website: In case of ECommerce search engines and linkages with other web sites play an important role in helping the customers to reach web sites of the eorganizations. etc.
A way to accept money: In case of traditional commerce. warranty claims are to be honored as in the case of commerce.
A way to accept orders: The orders are accepted on the web site itself.
A way to handle warranty claims: Sometimes if the product breaks in the way or some other problems crop up with the product. The information .
A way to provide customer service: The main tools of the customer service are [-mail. and creates huge new markets for indigenous products and services. as it demises in-place advantages of cost.
Models of E-commerce
Most transactions in E-commerce may broadly be classified into two main categories:
Business-to-consumer Business-to-business Consumer-to-consumer transactions
The vast majority of this activity to date has been taking place in countries with advanced economies and infrastructure.
. more developed economies. electronic commerce presents important new opportunities to achieve a more level playing field vis-à-vis larger. Communication. On-line forms. on-line knowledge bases and frequently asked questions. While many developing countries are beginning to take advantage of the potential of Ecommerce. For developing countries. and information. critical challenges remain to be overcome before the vision of a truly integrated and equitable world economy can be realized.
Here. The two forms of web-based e-commerce. The C2C. However. where each transaction is typically small in volume. The end-customer could be totally unknown to the merchant or might be visiting the shop for a few occasional purchases. It may be define as any business selling its product or service to consumers over the internet for their own use.E-commerce
Business-to-consumer transactions (B2C): These are the transactions that most of us are familiar with today. This category is characterized by a large number of transactions. Business-to-business transactions(B2C): These are transactions between two businesses or corporations. where each transaction is typically or larger volume. share many common characteristics and technologies. or surfing the Web on find the best deal for some particular item. the merchant setting up the shop on the Web deals directly with the end customer. in characteristics and technologies as well as in the business drivers for adopting e-commerce. business-to-business and business to-consumer. The end-customer is typically a previously approved or registered customer or at least known to the merchant. This category is characterized by limited number of transactions. they also differ in important ways. Consumer-to-consumer transactions (C2C): Consumer-to-consumer
(C2C) electronic commerce promotes the opportunity for consumer to transact goods or services with other consumer present on the internet. in many a situations models the exchange systems with a modified
. where the product traded is for business use. Like individual customers buying books and music CDs over the Web.
For deal making purposes a large virtual consumer trading community is developed. However. this need is felt most acutely on business-to-consumer sites because E-commerce merchants expect payment at the time an order is placed and consumers want to be able to pay online to avoid the delay and inconvenience associated with having to mail a check to the merchant.
Common Technology Differences of B2B and B2 C
There are also important technology differences between the business-to business and business-to-consumer e-commerce models. the need to process payments via credit card securely has been a major driver for the development of the broad range of security technologies and payment systems.E-commerce
form of deal making. For business-to-
. this issue is not as pressing because the merchant typically is willing to invoice the buyer and collect payment later and because business customers are used to ordering via a purchase order rather than paying immediately via credit card. On business-to-business e-commerce sites. For example.
other business drivers may become important as well.an operator to place an order. In the business to business sector.E-commerce
business transactions. additional safeguards are built into the existing processes to protect the companies against possible fraud. Gaining experience with web-based e-commerce is particularly important so that a. these web sites may not generate many incremental orders (orders that would not be placed if the company was not on the web). such as catalog shopping. to give consumers and additional mechanism through which to do business with them. using their web site instead of a paper catalog to provide product information and using online ordering to replace calling . expenses of direct mail merchants (such as printing and postage) could be reduced dramatically if web-based e-commerce replaces traditional catalog sales. For example. Merchants are investing in ecommerce to extend their presence to the web so they will not become visible by their absence. In the business-to-consumer e-commerce market. In the future. EDI is getting replaced because of the advantage Internet offers to conduct such transactions. and transported it to the web as a new medium. Today. In some cases. company can avoid being-outflanked by competitors who take advantage of the web more quickly and use it to gain market share. merchants have taken a familiar business model. they are ready to take advantage of it. the anticipated benefits to the vendor vary according to the business model for becoming involved with e-commerce initially. and to gain experience with webbased e-commerce so that when (or if) it becomes a larger part of their sales. as usage of the web becomes more widespread and possibly begins to replace (rather than supplement) existing channels.
airline and event tickets. including retail businesses that sell products to consumers. and just about anything else for sale on the Internet.E-commerce
TYPES OF E-COMMERCE
A variety of businesses are conducted online. music. Retail transactions make up the largest part of e-commerce. auctioneers that create a marketplace for products and services. service providers that sell services to consumers. automobiles.
. food. books. and business-to-business commerce. clothing. Consumers can find computers.
An Internet book retailer.Amazon.E-commerce
E-Commerce Web Site A page from the Amazon.com Web site illustrates the ease and immediacy of electronic commerce. After years of operating losses. some much larger than their mail order print counterparts. Shoppers are able to search a wide variety of products. can offer millions
.com was among the first e-businesses to report a profit. Amazon. make their selection. order online.com Retail Web sites typically include electronic catalogs that describe and display products for sale. and receive updates about the status of their shipment. Consumers can search for individual items or randomly browse electronic catalogs. for example.
It transformed itself into an ebusiness. Travel sites offer a method of scheduling airline flights.E-commerce
of different book titles for sale on its Web site. & customer relationship to
. and booking information for travelers. Other sites provide consumers with a way to research and obtain mortgages and other loans online. Online stock brokerages typically charge customers lower fees than traditional stock brokerages. after initial emphasis of sales through website only. warehousing.
E-Commerce –Case Studies leading the Transformation
B2B Comprises about 80-90 percent of all e-commerce by value. make reservations. For a small fee. Amazon is a pure –play Dotcom Company that rediscovered itself. Financial services represent a large segment of e-commerce. In this section we will present three case studies that are leading this transformation in different areas. Such sites also offer maps.
Other e-commerce businesses offer services. Travelers can plan all the details of their vacation or business trip. online investment brokerages trade stocks on behalf of their clients. in the physical world by incorporating a supply chain. travel literature. far more titles than could fit into a store or that could be included cost-effectively in a print catalog. and purchase tickets at the same site. Intel is an existing company that started using the internet as a distribution channel in the mid 1990s. renting cars. and booking hotel rooms.
Intel’s website deliver online information & support to a complex network of customer. Intel defined e-business in terms of what they called 100% e-corporation concept: a corporate strategy to re-engineer & automate business processes.com main website offers millions of books. suppliers & OEMs.
Amazon:Amazon is a pure –play B2C dotcom website. aimed at significantly improving customer.E-commerce
become a profitable business. online auctions. Within a few years.
. employee & supplier business interactions. channel resellers. CEO of Amazon. personalized & secure B2B functionality. easiest & most enjoyable shopping experience possible. using business system & internet technology. The Amazon. & that the cost of real estate was always going up. opened as an online bookstore in July 1995. DVDs. Intel adopted e.
Intel:In the mid 1990s. argued that retail store required lot of real estate in prime location to sell product to customers. games. employees. Intel was handling over 3 million page hits per day with online revenue of $ 2 billion per month.com. It mission was to use the internet to transform book buying into fasted. CDs. Jeff Bezos.commerce technologies to reach out to its customer & trading partners. Over 6000 user in more than 50 locations around the world use the customized. eBay is yet another pure-play dotcom company that pioneered C2C e-commerce & became a profitable company from the very beginning. free electronic greeting cards.
buy.com. enabling trade on a local. 13. It also opened local office in these countries to serve customers. prescription drugs . computers. baazee.8 percent of its revenues came from over 150 countries. tools. eBay acquired a successful online auction site. Even in July 1995. & pay for an item by bidding as if he were participating in an auctions. health & beauty goods. For example. They follow the auction or fixed price formats facilitated by
. in India. By the year 2000. The company also became sensitive to local cultures. gourmet foods.
eBay:The eBay website proclaims that “eBay is the world’s online marketplace. Seller & buyers meet through the eBay marketplace. it had customers from 45 countries.” eBay enable a visitor to the site to find. eBay offer an online platform where millions of item are traded each day. electronics. national & international basis. It opened distinct websites for its customer in Britain. & services including film processing. apparel. With a diverse & passionate community of individual & small businesses. & interact through it as also directly.E-commerce
videos. toys. Amazon also expanded in parallel into international market. France & Japan with content in local language for customers. kitchenware. home furnishings. Germany.
The third is more of a physical world operation which we're all familiar with . Most items require small payments to be exchanged. However the second part.com’ and Amazon. a micro –payment gateway for effecting such payments. became very popular with the trading community. and the entire e-commerce depends on this.com. that was comparable to credit card charge. Both buyer & seller found it inconvenient to deal with money orders or cheques.com is the world’s biggest store.like supply chain.
E-commerce process involves via three logical entities . The development of the same is quite simple and easy. just as Amazon. The storefront is nothing but a series of HTML web pages that display the products. Half.the storefront. is very crucial. But eBay is the world’s largest auctions C2C marketplace. the payment mechanism and the supply. Pay pal.
. There are other auction sites such as Yahoo! Auctions. Payments are made by buyer & goods are received by them from sellers. with thousands of software available in the market. It made C2C payments as easy as sending an e-mail. but sellers were required to pay a small fee to pay pal. logistics etc.E-commerce
the website. The service was offered free to the buyer. the payment mechanism.
as they would allow the companies to service customers faster. the central to the problem is prompt and secure payment.The individual who is making the purchase (either goods
or services) using the credit card. The companies. or even worse payment defaults then the whole process is disrupted.
E-payments are central to the whole e-business cycle.
The elements that go into the payment mechanisms are. This is also the crucial part. There is nothing new in the process. Hence. This is a time-tested solution for all the problems..
Merchants . servicing company.
Cardholder . and the credit card organization will handle the payment. and where they stand. innovative and at lower costs.the Company that is selling goods and services to
cardholders. world over utilizing credit cards for payments. and the bank are not balanced. let us look into the various instruments that would allow us to do the same. because of payment delays. Having understood how crucial they are to the system as such. because if the claims and debits of the various participating companies -customer. clearing and settlement of credit and debit claims. it's very basic the consumer who buys a service from merchant pays by entering his credit card details.
the acquiring bank deposits it into the merchant account. and are offered directly to the card holder.The credit card details as entered by the
cardholder are verified and confirmed with the issuing banks. This works in conjunction with the payment gateway (usually third party) to accept or decline the cardholders purchase request. The issuing bank provides the monthly billing statements to the cardholder. by the merchants to
request credit card authorization and settlement of funds between the merchant and the acquiring bank. They are referred to as Card Issuer.
Acquiring Bank .)
Payment Application . as they are not issued by any bank.The bank that has issued the credit card to the
Card Association .An association such as VISA International and
Issuing Bank . (Al1 American Express and Discover are not Card Associations.An application used. After getting the amount from the issuing bank.
There are two types of processes that are utilized by the payment mechanism:
Authorization Process.The transfer of funds between the issuing banks
and the acquiring banks
. which issues credit card through its members (the issuing banks to the cardholder).The bank that enables the merchants to accept the
E. The acquiring bank works with: i. The merchant captures the product information as well as credit card information and then communicates the credit card information to the acquiring bank through the payment application. which he intends to purchase by clicking on the "Purchase" button.Commerce Payment Mechanism
Under E-commerce payment mechanism. where goods or service are displayed.Authorization (credit card authorization) and settlement (settlement of payments to the merchant).E-commerce
When making purchases over the web. Using a web browser (Microsoft Internet Explorer or Netscape Navigator). (A lock symbol in the status bar of the browser indicates that the site from that point on is secure
. The authorization process in a typical e-commerce cycle. which would be secure. A form opens up on the web browser. e appropriate card association (or card issuer) to execute the transaction. the customer selects the product. There are two cycles . the cardholder visits the website of the merchant. the cardholder uses a web browser to procure product information from the merchant.
Apart from the verification of credit card. and then on to the cardholder. The amount that he can buy is referred to as "open to buy". This whole end-to-end process (from the moment the cardholder clicks on "purchase" to the receipt of the authorization message) takes only a
If the card information is incorrect or if the credit card number is
invalid. the acquiring bank also
verifies the address whereby the shipping details provided by the cardholder at the time of sale is 'compared to the billing information stored in the database of the cardholder.E-commerce
and encrypted). The card association (or issuer) verifies the card information and determines whether the cardholder has sufficient credit line available to pay for the purchases (the purchase amount is also transmitted). The information encrypted and sent to the merchant through the
payment application. The payment application encrypts and transmits the credit card
information to the acquiring bank through secure communications with Secured Sockets Layer (SSL).
The system in the acquiring bank received the information and
forwards this information to the card associations for verification as well as a4thorization. Some web sites would prompt for the shipping address as well. A confirmation number is generated and the "open to buy" amount is blocked. then a message declining the transaction is generated and transmitted to the customer through the merchant. in which the cardholder enters his credit card information.
According to general rules. the merchant initiates the fulfillment process of the product or services as requested by the cardholder. the fulfillment can take days. This is a typical batch process.
The settlement process of the orders fulfilled by the merchant. The acquiring bank sends settlement instructions to the appropriate card association for verification. The credit amounts from the issuing bank and makes the deposit to the merchant account. while some may take a few seconds .E-commerce
few seconds based on the payment application.
The merchant receives a notification with the fund transfer. Sometimes. only after the cardholders order has been fulfilled. the merchant can initiate a settlement process. The merchant on a periodic basis compiles a list of fulfilled orders and transmits the details to the acquiring bank. and Internet connection on the client and others.say physical goods like computers.
.like subscription based services or software downloads.
information and transmits the encrypted information to the acquiring bank. traffic. After successful authorization of the credit card.
depending on the funds availability with the issuing bank. Besides HDFC Bank and ICICI Global Tele-systems. LG Software and a few other nonbanking companies are toying the idea of launching payment gateways for inter bank and Bank to Bank transactions. as well as other procedures and policies. Payments can be effected through credit cards or directly by debiting the accounts of the customers of the respective banks. Currently. even ICICI bank claims to be the first one to have a payment gateway. the settlement process may take several days. HDFC bank claims it was the first to launch a payment gateway on May 1st 2000.E-commerce
While the authorization process takes only few seconds. Interestingly. HDFC Bank and ICICI have launched payments gateways for online transactions.
E-Commerce Process Cycle
Card Holder click on “purchase” button Merchant captures the information Payment application encrypts the information & forwards to the acquiring bank
. which it flagged off on 15th July 2000.
The customer presents his card at the merchant's shop. The acquiring is done by ICICI bank. The merchant uses a point of sale (POS) service to send the card information over a dial-up connection to his acquiring bank.
. The gateway is implemented in two-mode (I) Offline Purchasing Process (ii) Online Purchasing Process. Financial Software and Systems is implementing the project in India.E-commerce
Acquiring bank forwards the information to the card association or card issuer Card Holder is notified with confirmation number Merchant receives confirmation message Payment application encrypts the information & forwards to the acquiring bank
Examples of E-Commerce Pay seal. The issuing bank than authorizes or rejects the transaction and sends the message back to the merchant over the path.Indian (ICICI)'s Payment Gateway: ICICl's gateway has been developed along with Compaq and QSI. The transaction process is being explained in the below diagram of transaction with the pay seal. ] (i) The Offline Purchasing Process: This is an example of business to consumer credit card transactions. The acquiring banks then send this information to the issuing bank through the card network.
In the environment.
Transaction process with Payseal
. The authentication of the card is in the absence. the customer can not validate the card usage with his signature.E-commerce
(ii) The online Purchasing Process: In the online market place. buyers and seller are often unknown to each other in the process of purchasing a product with a credit card by telephone. which is the norm in offline transactions.
The credit card details are then switched to IGIGI Bank for
The web merchant forwards a digital order to the Payseal server in encrypted format. IGIGI bank then transmits the message to the card holders (issuing) for payment authorization. which is directly sent
to the payment server. The issuing bank authorizes the payment transmits the confirmation back to the payment gateway through acquiring bank. Payseal forwards
validation of the payment instrument to the merchant server.
The transaction information is transmitted to the merchant server.E-commerce
The Shopping Process with Payseal
In a typical retail process on the Internet
The customer fills his shopping card on a merchant website and
proceeds & check out. On receiving authentication and authorization. The customer provides his credit card details. Payseal authenticates the merchant and provides a payment details
directly on the customer's browser over a secure 128 bit SSL+ connection.
Customer with Browser
Merchant with web server
The Process of Payseal
The merchant transmits the acknowledgement of the payment to the
customer's browser. The credit card details of the customer remain unknown to the net merchant. The entire process Payseal integrates seamlessly with the help buys application of the web merchant ensuring a pleasant shopping experience the customer.
Low Procurement processing cost. People can shop.E-commerce
Benefits of E-commerce
Important benefits of E-commerce include the following:
Lower transactions costs .
Larger Purchases per transaction. Ledger Catalogues.
Convenience from shopping at home or
office. Access to a more geographically
dispersed customer base. the web can significantly lower both order taking cost and customer service costs after sale. in different ways.
. Reduction in inventions. Integration into business cycle.
Some of the benefits are very specific to the consumer such as:
products.If an E-
Commerce site is implemented well. Improved Customer Interactions.
Greater amounts of information that More competitive and increased price Greater Customization in the delivery
can be accessed on demand. network infrastructure and a secured. Following factors will make business of companies succeed in ecommerce:
Technical and organizational aspects
1. good post-sales services. comparison capabilities.
. well-designed website. of services. well-organized business structure.
Success factors in e-commerce
In many cases. Business failure is as much a reality in e-commerce as in any other form of business. E-commerce is not exempt from good business planning and the fundamental laws of supply and demand. Sufficient work done in market research and analysis. but by having a competent management team. A company that wants to succeed will have to perform 2 things: Technical and organizational aspects and customeroriented. an e-commerce company will survive not only based on its product.
accounting for 90% of online purchases. In the past. animation. and white-space percentage may aid success in this respect. information encryption. fail-safe technology. The tasteful use of colour. photographs. Such independent payment gateways are still used by most small and home businesses. Providing complete understanding of the products or services offered. which not only includes complete product information. and
. the e-commerce vendor must also perform such mundane tasks as being truthful about its product and its availability. Naturally. card numbers were transferred securely between the customer and merchant through independent payment gateways. Credit cards are the most popular means of sending payments on the internet. but also sound advisors and selectors. fonts. Providing an attractive website. hardware redundancy. possibly through re-engineering and information technologies.E-commerce
2. graphics. Providing reliability and security. 4. and firewalls can enhance this requirement. 7. 5. 3. Providing an easy and secured way for customers to effect transactions. Parallel servers. 6. shipping reliably. A good management team armed with information technology strategy. A company's IT strategy should be a part of the business re-design process. Most merchants today process credit card transactions on site through arrangements made with commercial banks or credit cards companies. Streamlining business processes.
handling complaints promptly and effectively. A unique property of the Internet environment is that individual customers have access to far more information about the seller than they would find in a brick-and-mortar situation. research a brick-and-mortar store online before visiting it. Cross-linked websites and advertising affiliate programs can also help. 3. Providing personal attention.)
A successful e-commerce organization must also provide an enjoyable and rewarding experience to its customers. and personalized special offers may go some of the way to substituting for the face-to-face human interaction found at a traditional point of sale. customers can. (Of course. Chat rooms. Personalized web sites. Sales promotions to this end can involve coupons. purchase suggestions.
. so this distinction does not hold water in every case. 2. and discounts. Providing a sense of community. discussion boards. Such factors include: 1. and occasionally do. Many factors go into making this possible. soliciting customer input and loyalty programs (sometimes called affinity programs) can help in this respect. Providing an incentive for customers to buy and to return. special offers.
Even a product with a sound value proposition can fail if producers and retailers do not understand customer habits. 2 Inability to predict environmental reaction. Failure to understand customers. Sources of such problems include: 1.
Even if a provider of E-commerce goods and services rigorously follows these "key factors" to devise an exemplary e-commerce strategy. 5. Helping customers do their job of consuming. problems can still arise. just as traditional retailers may do. E-tailers foster this by treating any contacts with a customer as part of a total experience. an experience that becomes synonymous with the brand.E-commerce
4. Provision of component information and safetyand-health comments may assist e-tailers to define the customers' job. why they buy and how they buy. and motivations. E-tailers and online shopping directories can provide such help through ample comparative information and good search facilities. expectations. What will competitors do? Will they introduce competitive brands or competitive web sites? Will they supplement their service offerings? Will they try to sabotage a competitor's site? Will price wars break out? What will the government do? Research
. Ecommerce could potentially mitigate this potential problem with proactive and focused marketing research. Owning the customer's total experience.
and flexible organizational structure. It may help to get top management involved right from the start. This often results in a failure to gain sufficient corporate resources to accomplish a task. Basic project planning. Over-estimation of resource competence. accountable. or PERT analysis may mitigate such failings. which may or may not aid coordination. Under-estimation of time requirements. one can move towards a flat. Two main methods are as follows: (1) Using identity theft techniques like phishing to order
. Many syndicates have caught on to the potential of the Internet as a new revenue stream. 7.E-commerce
into competitors. Profitability may have to wait for the achievement of market share. hardware. 3. critical chain. Failure to obtain employee commitment. and failure to understand the timing and sequencing of tasks can lead to significant cost overruns. 8. critical path. If planners do not explain their strategy well to employees. and processes handle the proposed strategy? Have e-tailers failed to develop employee and management skills? These issues may call for thorough resource planning and employee training. 4. Failure to coordinate. Becoming the victim of organized crime. 6. software. Setting up an e-commerce venture can take considerable time and money. industries and markets may mitigate some consequences here. Failure to obtain senior management commitment. 5. Can staff. If existing reporting and control relationships do not suffice. then training and setting up incentives for workers to embrace the strategy may assist. or fail to give employees the whole picture. just as in non-electronic commerce.
education. they may typically go to people in remote locations. communication. money or resources needed to complete a project and often find themselves without the necessary components to become successful. Other successful marketers such as use Drop shipping or Affiliate marketing techniques to facilitate transactions of tangible goods without maintaining real inventory. and financial transactions. and modification). office supplies. Too often new businesses do not take into account the amount of time. eBay and Paypal. then liquidating the goods for quick cash.
. software. Many successful purely virtual companies deal with digital products. Examples of this type of company include: Google. music.
Certain products or services appear more suitable for online sales. Such products generally have a high value-to-weight ratio. photography. 9. (2) Extortion by using a network of compromised "zombie" computers to engage in distributed denial of service attacks against the target Web site until it starts paying protection money. and they may have shut-ins as their typical purchasers. movies. they may involve embarrassing purchases.E-commerce
expensive goods and bill them to some innocent person. others remain more suitable for offline sales. (including information storage. Virtual marketers can sell some non-digital products and services successfully. Examples include numerous sellers on eBay. Failure to expect the unexpected. retrieval.
one of the few enduring dot-com companies. both for consumer items like washing machines and for industrial equipment like centrifugal pumps. People are able to steal your
. If this information is leaked into the wrong hands. provision of such services has become the most profitable segment of e-commerce. unsurprisingly. age. Products such as spare parts. bank card number.E-commerce
Items which can fit through a standard letterbox — such as music CDs. for example by providing parts lists keyed by serial number. only with other ordering systems. generally highvalue) and potential embarrassment. This is where your details (name. also seem good candidates for selling online.com. Purchases of pornography and of other sex-related products and services fulfill the requirements of both virtuality (or if non-virtual. A factor for success in this niche can consist of providing customers with exact. since they typically do not stock them at consumer outlets . one of the main ones is fraud. has historically concentrated on this field. [Citation needed] There are also many disadvantages of e-commerce. DVDs and books — are particularly suitable for a virtual marketer. national insurance number) are entered into what look to be a safe site but really it is not. e-commerce solutions in spares do not compete with retail stores.in such cases. and indeed Amazon. These details can then be used to steal money from you and can be used to buy things on line that you are completely unaware of until it is too late. reliable information about which part number their particular version of a product needs. Retailers often need to order spare parts specially.
Products less suitable for e-commerce include products that have a low value-to-weight ratio. the recycling program cheap cycle sells goods over the internet.E-commerce
identity. taste.com has had success delivering groceries in the UK. but lack the capability to compete with Amazon. What will competitors do? Will they introduce competitive brands or competitive web sites? Will they supplement their service offerings? Will they try to sabotage a competitor's site? Will price wars break out? What will the government do? Research into competitors. and commit more fraud crimes under your name. just as in non-electronic commerce. expectations.S. Tesco. Also. Can staff. industries and markets may mitigate some consequences here. just as traditional retailers may do. why they buy and how they buy. Over-estimation of resource competence. products that have a smell. software. products that need trial fittings — most notably clothing — and products where colour integrity appears important. Even a product with a sound value proposition can fail if producers and retailers do not understand customer habits. E-commerce could potentially mitigate this potential problem with proactive and focused marketing research. Nonetheless. and clothing sold through the internet is big business in the U. Failure to consider the competitive situation. and motivations.
. and processes handle the proposed strategy? Have e-tailer's failed to develop employee and management skills? These issues may call for thorough resource planning and employee training. albeit that many of its goods are of a generic quality. One may have the will to construct a viable book e-tailing business model. hardware. Finally there are many problems with e commerce some of which are: Failure to understand customers. or touch component. Inability to predict environmental reaction.
Much of a consumer's reward for purchasing a product lies in the instant gratification of using and displaying that product.E-commerce
but avoids the low value-to-weight ratio problem by creating different groups for various regions. mainly for
poor households and for developing countries. Even in product categories suitable for ecommerce.
The problem of access to web commerce. electronic shopping has developed only slowly. Many people will not use credit
cards over the Internet due to concerns about theft and credit card fraud. so that shipping costs remain low. Several reasons might account for the slow uptake. This reward does not exist when one's purchase does not arrive for days or weeks.
Consumers have accepted the e-commerce business model less readily than its proponents originally expected. Low penetration rates of
Concerns about security. Lack of instant gratification with most e-purchases (non-
Some of the important E-commerce technologies are discussed as under: (1) Electronic Data Interchange: EDI is the preparation. Inconsistent return policies among e-tailers or difficulties
in exchange/return. with mailboxes for each business partner. to other shoppers.E-commerce
Internet access in some sectors greatly reduce the potential for ecommerce. Large corporations mostly use it and their satellite suppliers working together over a private network called a Value Added Network (VAN). The social aspect of shopping. bug-infested e-Commerce web sites
that frustrate online shoppers and drive them away. These VAN offer reliability and security that is difficult to on the internet so far. communication. using computers and telecommunication links. and processing of business transactions and data electronically in a predefined structure format. or to their cohorts: this social reward side of retail therapy does not exist to the same extent in online shopping. Each participating company' has to run EDI translation
. Poorly designed. The provider stores' then forwards EDI messages between partners. An EDI services provide maintains a VAN. Some people enjoy
talking to sales staff.
banks and consumers.. receiving. or companies and consumers.g.
. banks and companies. Examples of EFT Systems Banking and financial payments
Large-scale or wholesale payments (e. (2) Electronic Fund Transfer (EFT): It involves the electronic transmission of financing transactions (debit and credit) between banks.E-commerce
software on its computers to convert EDI data in to formats used by the Company's data bases. The basics of EDI software are: shown in Diagram
Store and Forward messages VAN Translation EDI standard messages EDI standard messages
The Basics of EDI Software EDI service providers are now incorporating Internet services and open EDI as a new service of specifications for handling EDI on the Internet. bank-to-bank transfer). EFT adds another dimension to EDI allowing for direct deposit of payments without Cheque writing. processing or canceling.
Small-scale or retail payments (e.g. automated teller machines and cash dispensers. Home banking (e.g. bill payment), Retailing payments Credit Cards (e.g. VISA or MasterCard). Private label credit/debit cards,
Online electronic commerce payments Token-based payment systems Electronic cash (e.g. DigiCash) Electronic Checks (e.g. Net Cheque) Smart cards or debit cards (e.g. Mondex Electronic Currency Card) Credit card-based systems
Encrypted credit cards (e.g., SSL CyberCash, or SET encryption) Third-party authorization numbers (e.g. First Virtual)
(3) Debit cards: With a magnetic strip and an embossed identification number, debit cards are used by consumers to obtain money from automatic teller machines, to pay for goods or services at retail locations, and to access home banking or bill payment services. The major point is that debit cards provide no line of credit; purchases are directly debited to a consumer's bank account, or to the prepaid amount encoded on the card. Debit cards are a substitute for cash or a personal Cheque.
(4) Smart Cards: Smart Card is a plastic card with an embedded chip and a tiny display that provides user with new password each time they log in a system. The smart card (also called a memory card) is a portable datastorage device with provision for identity and security, it differs from the prepaid telephone card, or debits card. It is very popular in Europe, because it contains microprocessors and memory chips that provide intelligence and the ability to store a significant amount of information. Smart Cards are designed to replace the traditional magnetic strip credit or bank cards introduced at the end of the 1960s. "Representatives of the financial services, telecommunications, entertainment, publishing, software, computer and health care industries are joining with government agencies to create a multi-industry effort to accelerate the widespread use of smart card technologies", (Smart Card Forum 1993),
Citibank & Chase Manhattan Bank Smart Card: In October, 1997, Citibank and Chase Manhattan Bank launched a smart card. Primary purpose of the joining forces was to promote inter operability of smart card technology between MasterCard and VISA. Citibank and Chase Manhattan's expectations were that most purchases made with the cash equivalent loaded on the smart cards would be for $20 or less and this was basically confirmed by the pilot test. For purchases greater than $20, consumers generally would use their credit card. The program involved getting merchants to accept the smart cards as cash payments. Regarding security of the smart cards, PIN are required to download Cash, but not for purchases. If a consumer loses
his/her smart card, the amount stored is lost and can be used by anyone processing the cards, the same as losing Cash.
SMART CARD FACILITY (5) E-mail: Electronic mail (e-mail) provides for the electronic transmission of letters, messages, and other documents. There is a large installed base of email users in the corporate environment the learning curve has proved to be relatively short for new Users, .. (6) Bulletin Board Systems: Bulletin board systems, or BBS, are computer networks accessible by modem that offers the facility for multiple subscribers to use information electronically. They provide access to computer files, games, email, discussion groups, and other services. (7) Facsimile (Fax}: Facsimile technology is not new. In fact, it has been around in one form or another since 1924 (Jenkins and Lancashire, 1994).
such as Microsoft Mail. The data can then be captured automatically. (8) Electronic forms and forms date interchange: Electronic forms or forms automation software enables users to fill in forms on a desktop computer. automatically save the information to various databases. data collection.
(10) Bar codes: EAN (European Article Numbering) numbers which are used for identification items can be represented by bar codes. Its value is in its ability to link database. Lotus cc: Mail. and Distributing the images. most heavily used technology in today's office. as well as other local or departmental databases.readable form. which still provide the core information resource for most corporations. and data retrieval/presentation technologies. Lotus Notes Mail. A bar code is a pattern of parallel bars and spaces of predetermined widths representing . and selectively route forms and data transparently across most popular e-mail systems. Bar codes allow numbers to be encoded in machine.E-commerce
One of its biggest advantages is the enormous installed base. Much of the electronic forms software 3vailable today provides for links to transaction type databases.data that is then "read" by electronic scanners and transmitted either to a computer or
. quickly and securely. It is the result of bringing together several older technologies to facilitate the following:
Converting images from paper to electronic code: Classifying images for later retrieval Storing the images. It is probably the least controlled. (9) Electronic Image Processing: Electronic Image Processing is not a recent innovation.
EDI is now finding the role on corporate web sites as well. and Oracle. is supposedt6 ensure that all the different E-Commerce systems can talk to one another. which enables parties to communicate security over an insecure network such as internet. is backed by leading technology companies such as Actra. which was released by OBI consortium. Very briefly. Microsoft.
. is familiar to most people in North America. Intelsys. OBI. Bar codes are used extensively in the retail sector. The data is then interpreted or decoded by the computer.E-commerce
to a storage device for subsequent transmission to a computer. Open Market. The Universal Product Code symbol. (ii) Open Buying on the Internet (OBI): This standard is created by the Internet purchasing round table. chosen as the industry standard for grocers. (11) PKI Technology: The technology underlying e-trust is known as public key encryption or Public Key Infrastructure (PKI) and has been around for some time.
Important standards of E-commerce are discussed as under:
(i) Electronic Data Interchange (EDI): EDI is a common document
structure designed to let large organizations transmit information over private networks. PKI works by means of cryptographic keys issued in the form of digital certificates.
SSL uses public key encryption.
. SSL was created by Netscape but now has been published in the public domain. enjoys wide support in the banking community. and payments.E-commerce
The Open Trading Protocol (OTP): It is intended to standardize a variety of payments related activities including purchase agreements. (vi) Secure Electronic Transactions (SET): SET encodes the credit card numbers stored on merchants' servers. Sun Micro Systems. It was created as a computing standard to OBI by a group of companies AT&T. one of the strongest encryption methods around to protect data as it travels over the Internet.
(iv) The Open Profiling Standard (OPS): A standard backed by Microsoft and Firefly. (v) Secure Socket Layer (SSL): This protocol is designed to create a secure connection to the server.This standard. Cyber cash. and British Telecom. Receipts for purchases. The idea behind it is to help consumers protect their privacy without banning online collection of marketing information. 18M. Hitachi. OPS let users create a personal profile of preferences and interests that they want to share with merchants. (vii) Trust: This partnership of companies seeks to build public trust in ecommerce by putting a Good Housekeeping-style seal of approval on sites that do not violateconsumer privacy. created by Visa and MasterCard. Oracle. The first SET-enabled commerce is already being tested in Asia.
For example E-Commerce can include interactive marketing. and payment processes on the World Wide Web. Intranets. Providing ongoing customer support. Electronic Commerce Systems relay on the resources the Internet. Extranets. and engaging in on line collaboration for new product development". ordering. delivering software and information products online. This model includes promoting and communicating company and product information to a global user base. Medich.E-commerce
E-COMMERCE AND INTERNET
According to Cathey J. Executive Director of Commerce Net. "The Internet is redefining the model for electronic commerce to one that supports the complete seller-to-buyer relationship. Extranets access
. accepting orders and payments of goods and services online. and other computer networks to support every step of titles process.
Other applications. and involvement in product developing via Internet news groups and E-mail Exchange.such as Intershop 3. or Yahoo's Stores provide storefronts that are ready to go. allow you to change standard templates that came with the packaged softwareso that you can customize the way your storefront will look and feel. These solutions
to inventory data bases by customers and suppliers. Just pick a design and pop in your products: You are ready for business. Intranet access of customer records by sales representatives and customer service.0 and iCat Professional.
E-commerce Software Solution
Solutions like Intershop's ePages. iCat's Lemonade Stand.
buy it! This will save you money and a good deal of time.E-commerce
also let you extend the standard features and behaviors contained in the templates . This approach will give you a standardized set at e-commerce features with a few additional business rules built in as a bonus.
. Advertising and awareness Marketing Post sale service Fulfillment trahsaction processing Merchandising
Sales service sales transaction
Process of Sales.assuming you can "speak" their application languages. The solution may be a . If your business needs closely match what the package offers. & Marketing
Implementation of E-Commerce Solutions:
are three options:
Buy a ready-made system that closely matches your
specifications. If the system is lacking some of your prioritized however you may want to think again.
They're fast because the: whole store is administered through the Web.
Option 2: Rent
space in a network-based. e-'commerce solution: These
solutions are inexpensive and include many common features. Pandesic has released a new platform based upon a suite of e-commerce objects accessible through Active Server Page technology. time.E-commerce
good fit now. The advantage is that you can build the features and functions you need to be unique and competitive in the marketplace. but will likely become obsolete as more and more features become later on in development Trying to add these new features may mean . There are a series of application engines out there to help you get these features. This
approach will give you the exact solution you need but will require expertise. Be sure to budget for ahead of time. if you're considering this option. So if you want to offer discounts any time. More recently. Configure some settings. work and’ training in the software down the road.
Build the system from scratch to your specifications. Then you're ready to go: instant storefront. a lot of work has been done with Microsoft's Active Server Pages and Allaire's Cold Fusion development environments. you'll need to take this approach. you just look. and a sizable budget to pull it off. Also. You don't need to install any software. The major functions on a website includes Displaying Products
. But you can create a commerce program in almost any programming language. Many early Web-based business interfaces were created in Perl or C++. and pour in your product information.
thereby providing better service than a customer could otherwise obtain.
. The threat to these intermediaries is that their customers will bypass them by obtaining information and meeting their purchasing needs through new.Effective Advertising Keeping Track of Everything Staying in E-Business
Electronic Stock Trading
Electronic commerce creates threats and opportunities for brokers and intermediaries of all kinds-not only travel agents. online channels. and brokers of food and mechanical parts as well. The opportunity for intermediaries is to use electronic commerce to create one of those new channels. but insurance brokers. stockbrokers.E-commerce
Order and Transaction Processing Attracting Customers Fulfillment and Customer Service Building Your Customer Base Cost. loan brokers.
or human agents. Private investors could obtain readily available data and analysis software to identify stocks they wanted to buy and sell.
The banking industry relied on computers for decades before electronic banking created new way&> to provide service. Citibank tripled its depositors from 1978 to 1987. touch tone phones. the New York Cash Exchange. the competition responded. Their stock and bond holdings and transactions could be tracked.E-commerce
By 1997 Web-based information and transaction capabilities spanned most of the customer involvement cycle for buying and selling stocks and bonds. which
. increasing its local consumer market share from 4. How the traditional brokerages would respond and whether they could maintain their much higher cost structure remained to be seen. They could obtain customer service information about the status of buy and sell orders. Some of it could be accessed for free from the home pages of companies providing search engines and other services not specifically related to finance.5% to 13%. Thanks to . Investors could make the purchases through Web transactions. A first step in electronic banking for consumers was the advent of automatic teller machines (ATMs) popularized by Citibank in the late 1970s. or NYCE. Other banks banded together to produce their own network.ATMs. As happened in the Merrill Lynch case.
such as checks for rent. these electronic banking functions eliminate the annoyance of balancing a checkbook and some of the uncertainty about whether or not the check arrived. electricity. The electronic banking system makes it possible to enter the amount of the check and then have the bank transfer the money into the payee's account without ever handling a physical check. several national ATM networks permit customers to withdraw money from ATMs in all major cities in the United States and some cities abroad. The next step in electronic banking for consumers is to provide additional banking 'services and transactions through personal computers linked to the Web or to private networks. electronic banking permits people to pay bills without writing checks. and the payee's accounts receivable system may not be set up to receive payments
. electronic banking is more complicated than it might appear. Repeatedly. assume that the payee is a national firm with many offices and a number of different bank accounts for different purposes. the computer-to-computer transfers performed in electronic banking are more automatic and less expensive than processing paper checks for handling payment transactions. For example. For fixed payments such as rent. water. The electronic banking customer starts by identifying checks that are written to the same payee.E-commerce
began operation in 1985. For the bank. and which Citibank eventually Joined. In addition to providing history and bank balance information. That bank may be out of state. For the customer. and car payments. the amount can be entered once and then transferred automatically each month. To pay the bill. Like many aspects of electronic commerce. you need to specify which account at which bank should receive the funds. More recently.
It may be noted that subsequent changes in the payee's banking relationships might result in confusion or lost payments. it may require that payments go to its accounts receivable department.
Secure Electronic Transaction
Secure Electronic Transaction (SET) is a standard protocol for securing credit card transactions over insecure networks. the Internet. To minimize the chance that a payment transaction will be lost or delayed. SET was developed by VISA and MasterCard (involving other companies such as GTE.
. Electronic banking has advantages for people who write a lot of checks. Netscape. specifically. a bank offering the electronic banking service must verify in advance that each payee is set up to receive funds in this manner. SET is not itself a payment system. but for others it is simpler to slip physical checks into preaddressed reply envelopes. but rather a set of security protocols and formats that enables users to employ the existing credit card payment infrastructure on an open network in a secure fashion.E-commerce
directed to its bank. RSA and VeriSign) starting in 1996. IBM. Microsoft. This is especi311y important if the electronic banking service combines multiple transfers to a given bank into a single transfer accompanied by a list of all payments that are included.
SET was said to become the de facto standard of payment method on the Internet between the merchants. the merchant itself never has to know the credit-card numbers being sent from the buyer. the buyers. and the credit-card companies.
FUTURE EXPECTATION ABOUT THE E-COMMERCE
. When SET is used. which provide a benefit for e-commerce.
But nobody knows when. let alone the future one. There is considerable disagreement about the historic impact of electronic commerce. social and cultural changes and these will take more than two or three years to complete. cost and infrastructure impediments. The e-Commerce guru of ICL put it thus: 'Everyone agrees that electronic commerce is going to be big. Although all commentators present forecasts for the short-term which contain truly eye-catching growth. In order to explain this paradox. very big or enormous. their figures fail to achieve anything remotely approaching the size of existing modes of trade. For electronic commerce to deliver its full promise. MSTC
. And yet no commentator doubts the power of electronic commerce to challenge those existing modes. many observers allude to technical. The e-Business applications of the Internet are developing but they are a long way from fulfilling the predictions of the pundits.'
DRIVING BUSINESS ON THE INTERNET
E-commerce will be the key driver of the Indian economy & will be the key revenue stream for companies in the days to come.E-commerce
The Internet serves a great number of functions and not all of them should be classified as e-Commerce. CMD. Internet e-Commerce has changed the life of a few web entrepreneurs but its effect on the lives of most other people has been very slight. there will have to be business. many experts like Malay Sengupta.
WB at the inaugural session of Ecom.”
have now is that digital signatures are recognized by all courts of law & that electronic contracts are legally valid. & Dr Debesh Das. 2009 in Kolkata have agreed in this statement. even customer buying
. Coal India went online on November 19. 2004 & coal is now booked electronically. 1.
The other reason for the success of ecommerce
“It’s a paper-less process & it doesn’t give any “One major advantage that e-commerce users
unfair advantageous to any one party. WHY E-COMMERCE?
When MSTC has adopted e-commerce initiatives then it given them returns far above anyone’s expectations. R S Pandey. & it’s not just the business to business format that is profiting for this. IT Minister. & they gave their views in a different ways like: A case in point was host-company MSTC Limited that has successfully increased business manifold with the use of ecommerce. Steel Secretary.E-commerce
Ltd. the seminar on E-commerce organized by MSTC Limited with The Economics Times on June 22.. For example.
that makes e-trading difficult.step delivery that is crucial in the B to C.” comes to monetary transaction on the net. you save the time of going to 10 different stores.”
Electronic fraud might even happen at a nightclub when The inter-state transactions were difficult to make &
the card is handed over to the cash counter. THE LOOPHOLES:
“In a country like India brandwidth is a major problem.E-commerce
daily-need product are turning largely to the internet. “& why not? If you can see 10 different TV sets on the net before choosing the one you want.
. THE WAY FORWARD E-Commerce is poised to take over the country in the next few years. “The poor power supply in various part of the country Security also remains a large issue especially when it
the internet is slow & for bidders it takes long to just log on.
many suppliers were unwilling to do that last bit of door.” 2. Now people have started buying cars through the net which in itself is a pointer that electronic trade is here to stay. “The cyber laws are still not equipped to bring a fraudulent person to book. 3.
ELECTRONIC COMMERCE COMPANIES
These companies make information available on line about their product and services. & the growth has been 100 percent for the last 3 years. all of which are directly related to electronic commerce.” “We have facilities like secured socket layering &
firewalls that are impossible to hack.”
“The B to C sector has generated business worth Rs 2300
crore in 2007.
. that in itself shows what E-Commerce is capable. These will make etransaction safer & promoted e-commerce.E-commerce
“E-Commerce will be driven by personalized & niche
thing hat are not available in stores.
. Inc.com Develop software to support foundations for electronic buying and selling.com/ Offer electronic shopping cart software called shopping 770 to be added to electronic shop web pages. ClickShop com http:// www. http:// www. CyberCash.com/ Provider of payment service for the internet. Cardservice international http:// www.com/ Provider of electronic payment services. http:// www.broadvision.checkshop.
Checkfree Corporation http:// www.cybercash.checkfree.cardsvc. Inc.E-commerce
BroadVision.com Offer credit card services to internet merchants.
http:// www. Inc. Verisign provides public key certificates to individuals & companies.E-commerce
Verisign. from simple information service to actual banking service.bofa.verisign. is growing rapidly.
Bank of America http:// www.com/ Currently offering information services on line.
The no.com A spin-off from RSADSI. of banks offering some type of service over the internet.
The sources that contributed to this project are as follows:-
e-commerce. TECHNOLOGIES & APPLICATIONS
MANAGEMENT INFORMATION SYSTEMS CORPORATE COMMUNICATION (PAPER 4)
THE INSTITUTE OF COMPANY SECRETARIES OF INDIA
THE CUTTING Edge OF BUSINESS
KAMLESH K BAJAJ DEBJANI NAG E-COMMERCE
STRATEGY.google .com 2)www.“ECONOMIC TIMES ” MAGAZINE:“digit”
day ecommerce are getting lots of success.
At last the conclusion comes that now a day -by. So. Because e-commerce has become the buzzword for successful businesses across the world. it will be concluding that in the future e-commerce has growing faster. will play a major part in that. I am sure. That means in the future e-commerce is one most important key factor to success of any company. Today many companies have adopted the e-commerce. The Indian economy is expected to even overtake the US economy by 2045 & e-commerce. as also in India.