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E-Commerce through the Internet: The Bangladesh Perspective

Preface E-Business earlier thought of as just buying and selling using the Internet, has become an undeniable reality with applications for all kinds of businesses from banking to human resource optimization, from manufacturing to sales, from medical fields to logistic management, from environmental monitoring to environmental management, and from transforming education to creating new forms of government administration (e-Government). While the potential of E-Business is literally unlimited, the success of any E-Business initiative depends on strategies and its integration and alignment with overall business or social objectives. "E-Business" means all kinds of IT technologies, along with Internet, Mobile, and other ubiquitous connectivity innovations, that can be used to create business value or social value. This paper contains a brief discussion on different aspects of E-Commerce Through the Internet: The Bangladesh Perspective which includes Internet activities, e-business and ecommerce concepts, types, payment systems, m-commerce, e-commerce in Bangladesh and e-commerce application i.e. design of e-commerce-type web sites by free software e.g. Oscommerce and Zen cart. Introduction E-business refers to the use of digital technology and the Internet to execute a firms business processes. E-business includes e-commerce, all internal processes, and processes for coordination with suppliers, customers, business partners, and government regulators. E-commerce is a narrower part of e-business dealing with the purchase and sale of goods and services over the Internet, including support activities such as marketing and customer support. E-government refers to the application of the Internet and networking technologies to digitally enable government and public sector agencies relationships with citizens, businesses, and other governmental bodies. The fastest and biggest change in modern computing is the Internet. Internet is an international network of networks that consists of millions of private, public, academic, business, and government networks of local to global scope that are linked by a broad array of electronic and optical networking technologies. The Internet was developed in 1969 for the U.S. military and eventually spread to universities and civilian researchers. The Internet consists of computer networks spread all over the world, through wired and wireless transmission media, which contain software codes that allow them to talk to each other. The Internet is also the communication backbone underlying the World Wide Web (WWW). A Web site, consisting of a few pages or hundreds of pages, enables businesses to get close and stay close to their customers in new ways. It is truly a revolution in our global economy. The World Wide Web is a system with universally accepted standards for storing, retrieving, formatting, and displaying information using client/server architecture. Web site is a 1-1
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collection of web pages linked to home page. Web pages are formatted using hypertext [Hypertext Transfer Protocol (HTTP)] and Uniform Resource Locators (URLs) with embedded links that connect documents to one another and that also link pages to other objects, such as sound, video or animated files. When you click a graphic and a video clip plays, you have clicked a hyperlink. Searching and Finding Information on the Internet Search Engine (e.g. Google) is a tool for locating specific or information on the internet. It contains software that looks for web pages containing one or more of the search terms, then they display matches ranked by a method that usually involves the location and frequency of the search items.
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Websites regarding hundreds of activities or capabilities in the Internet There are different websites regarding Internets capabilities or functions or activities: By Internet we can communicate and collaborate, access information, participate in discussion, supply information, find entertainment and exchange business transactions. Hundreds of activities or capabilities can be done by the Internet. By visiting the following websites we can collect information from hundreds of activities or capabilities regarding IT, news, tourism, sports and computer games, Art and Literature, different Institutions, Entertainment and business and economics in the Internet: List of websites regarding hundreds of activities or capabilities in the Internet ( Plz. See Appendix-I ): E-Commerce: Digital Markets, Digital Goods E simply means anything done via the Internet and commerce means buying and selling products, services and information (Rakibul Hoque, 2008). E-commerce refers to Internet shopping, online stock and bond transactions, the downloading and selling of soft merchandise such as software, documents, graphics, music, etc ( There is a misunderstanding that e-commerce is limited to buying and selling of goods and services over the Internet (Jaiswall, 2000). However, e-commerce involves a number of players such as buyer, seller and the Internet Service Provider (Habib, 2000). Finally, ecommerce is the paperless exchange of business information using electronic data interchange (EDI), e-mail, electronic bulletin boards, fax transmissions and electronic fund transfer. ( (Rakibul Hoque, 2008). Digital market and digital goods: Digital goods are goods that can be delivered over a digital network and include music, video, software, newspapers, magazines, and books.

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If products can be digitized, they can be sold and distributed on the Internet. Independent musicians and moviemakers are finding tremendous opportunities for reaching new audiences through the Internet that they couldnt reach before. The Internet has created a digital marketplace where millions of people are able to exchange massive amounts of information directly, instantly, and for free. Digital markets are very flexible and efficient, with reduced search and transaction costs, lower menu prices, and the ability to change prices dynamically based on market conditions. Another name of digital market is Internet market. According to Papazoglou and Ribbers (2006), in electronic markets, there are suppliers who offer their products to the electronic market and buyers who search and review product offerings. Orders from buyers are then sent to suppliers through messaging system, which also communicates the order status to buyers (Papazoglou & Ribbers 2006).

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Electronic Commerce from the different perspective:

Communication Perspective: Electronic Commerce is the delivery of the information, products/ services, or payments over the telephone lines, computer network, or any other electronic means. Business Process Perspective: EC is the application of the technology toward the automation of business transactions and workflow. Online Perspective: EC provides the capability of buying and selling products and information on the internet and other online services. Service Perspective: EC is the tool that addresses the desire of firms, consumers, and management to cut service costs while improving the quality of goods and increasing the speed of service delivery. Unique features of e-commerce/ Why E-commerce is Different Eight unique features of e-commerce which include: 1-3
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E-commerce technology is ubiquitous, meaning that it is available just about everywhere a computer can connect to the Internet. 24/7 365 days a year, anytime, anywhere. New marketspaces change the balance of power from being businesscentric to customer-centric. It has global reach, permitting commercial transactions to cross cultural and national boundaries far more conveniently and cost effectively than is true in traditional commerce. The Internet opens markets to new customers. It operates according to universal standards shared by all nations around the world, whereas most traditional commerce technologies differ from one nation to the next. Customers can use the universally accepted Internet tools to find new products and services quickly and easily thereby keeping search costs to a minimum. It truly is a win-win situation for both sides. It provides information richness, enabling an online merchant to deliver to an audience of millions complex and rich marketing messages with text, video, and audio in a way not possible with traditional commerce technologies, such as radio, television, or magazines. It is interactive, meaning it allows for two-way communication between merchant and consumer and enables the merchant to engage a consumer in ways similar to a face-toface experience but on a much more massive, global scale. It permits personalization and customization: Merchants can target their marketing messages to specific individuals by adjusting the message to a persons name, interests, and past purchases. Social technology enables user content creation and distribution and supports social networks.

Benefits and Disadvantages of E-Commerce: Benefits of E-Commerce For Consumers Reduced Prices Global marketplace 24 hour access Reduced time Reduced Prices For Business Increased potential market share Disadvantages of E-Commerce For Consumers For Business

Unable to examine Hardware and software products personally Easier entry to new Security Maintenance of Website market Low cost Credit card advertisement Fraud Low barriers to entry Trust Improved customer Relation Eliminate Middleman Reduced paperwork Intellectual property Taxation Limited market place Training and maintenance Hardware and software

In the context of e-commerce, electronic payment system is the use of digital technologies, such as credit card, digital wallets, electronic check, digital cash, smart cards and internet based payment systems, to pay for products and services electronically. There are many ways in which e-commerce can be classified. On the basis of the nature of the participants and transactions electronic commerce can be classified into the following types: Business-to-consumer (B2C) 1-4
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Business-to-business (B2B) Business-to-government (B2G) Government-to-business (G2B) Government-to-government (G2G) Government-to-consumer (G2C) Consumer-to-business (C2B) Consumer-to-government (C2G) Consumer-to-consumer (C2C)

Business-to-customer (B2C): Selling or retailing of products and services directly to individual customers ( It involves commercial interaction between a business entity and an individual consumer, where a business sells to a consumer for example, a customer buying a shirt from a retailer through the Internet. , and are the most popular B2C e-commerce in Bangladesh. Businesses typically sell products and services to consumers at E-commerce websites that provide attractive Web pages, multimedia catalogs, interactive order processing, secure electronic payment systems, and online customer support. Payment Methods for B2C Trade Credit Cards: Use of credit card for e-Commerce payment is one of the most major forms of electronic fund transfer. Credit card payments have the advantage of being simple and fast, with the added advantage that sellers can receive confirmation of payment in a very short time, prior to shipping the goods. Payment on Delivery: In this method, payment for the goods is collected at the point of delivery by the deliverer. This is a method that has been popular with small goods sent through postal services that can be delivered by hand. This method allows for shipping as soon as the order is confirmed. In Bangladesh, this method has been adopted by some B2C vendors, such as Payment at Bank: In this method, after an online purchase is made, the consumer is provided with a web page containing the payment amount and some specific code or identification number for the purchase and the vendor the item is bought from. The consumer prints out the page, and then pays the amount physically at a local bank. After the payment is transferred to the vendors account, the vendor ships the goods. Stored-Value Cards: In this method, a consumer can purchase a card with a specific amount of value stored in it. The card can then be used to buy certain goods or services from the Internet, and proportionate amount gets deducted each time a purchase is made. Business-to-business (B2B): Sales of goods and services to other businesses (, Business-to-business applications of E-commerce involve electronic catalog, exchange, and auction marketplaces that use Internet, intranet, and extranet websites and portals to unite buyers and sellers. It involves online commercial interaction between two business entities for example, a wholesale buyer doing business negotiations with a garments manufacturer over the Internet. B2B application already exists in the export sector of Bangladesh, especially in the Ready Made Garments (RMG) industry. Payment Methods for B2B Trade In most B2B transactions today, payment is still done offline using traditional international trade payment systems. Advance Payment: In this method, the buyer pays for the goods before shipment takes place. Although this method of payment is ideal for sellers, it is often difficult to find buyers who will agree to the terms, other than in some special B2B transactions, where the parties generally know each other from before-hand. Letters of Credit: These are popular for export and business trading. By presenting a letter of credit guaranteed by the bank of a foreign buyer, an exporter can either 1-5
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obtain an advance from his bank on the amount due under the sales contract, or the exporter can obtain pre-shipment finance (a form of advance payment). Invoice Payment: Probably the majority of business-to-business (B2B) transactions are made between companies that deal with each other regularly. In these cases, B2B sites may issue invoices that are identical to invoices that are used in physical commerce. Some businesses offer their credit discounts on the invoice for using electronic ordering, because electronic transactions cost the supplier less. Online e-Commerce Payment: Among the token-based payments, electronic cash and electronic checks are available. Among the other online payment mechanisms, smart cards or debit cards, and third party authorization are also practiced over the Internet. Consumer-to-consumer (C2C): Individuals using the Web for private sales or exchange. Consumer selling directly to consumer ( ). It involves commercial interaction between two private individuals for example, auction sites. If a person wants something to sale, then he can get it listed at an auction site, and others can bid for it. Other types of e-commerce are: o Consumer-to-government (C2G) o Business-to-government(B2G) o Government-to-government(G2G) E-Banking: E-Banking is the delivery of banking services through the use of electronic communication, primarily the Internet. Electronic banking include: internet banking, ATMs, wire transfer, telephone banking, EFT, debit cards, POS etc. Mobile commerce (m-commerce): M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices or the emerging technologies such as cellular telephone and personal digital assistants (PDAs), a smartphone and other emerging mobile equipments. Cell phones arent just for making phone calls anymore. Now they take photographs, send text messages, used as tracking devices, and for purchasing goods and services. In the USA, m-commerce is still in its infancy but is starting to grow as 3G cell phones become more common. In Asia and Europe, m-commerce is much more widely adopted. Although m-commerce represents a small fraction of total e-commerce transactions, revenue has been steadily growing. In 2008, there were an estimated 3 billion cell phone subscribers worldwide, with over 500 million in China alone. The most popular categories of m-commerce services and applications for mobile computing include: Location-based services: users are able to locate restaurants, gasoline station, local entertainment, or call a cab. Banking and financial services: users can manage their bank accounts, check account balances, transfer funds, and pay bills using their cell phones. Wireless advertising: cell phones provide another avenue for advertisers to reach potential customers. Cell phone service providers can sell advertising on phones. Games and entertainment: users can download video clips, news clips, weather reports, live TV programs, and short films designed to play on mobile phones. 1-6
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Personalized services: Services that anticipate what a customer wants based on that persons location or data profile, such as updated airline flight information or beaming coupons for nearby restaurants. Mobile bill payment. Admission procedures in universities by mobile phone. School, college, university result publication by mobile phone.

The barriers to m-commerce M-commerce represents a tiny fraction of all online purchases because wireless mobile devices cant display merchandise very well. Mobile phones have tiny keyboards, small screens, and slow data transfer speeds (9.6 to 14.4 Kbps). The types of payment systems used in m-commerce. Although still in their infancy in the United States, other countries use three kinds of mobile payment systems: Stored value systems charged by credit cards or bank accounts Mobile debit cards tied to personal bank accounts Mobile credit cards E-commerce in Bangladesh E-commerce in Bangladesh actually started in the year of 1999 based in USA with some nonresident Bangladeshis. This people opened some Bangladeshi sites focused on providing local news and some transactional things like sending gift items to Bangladesh. is the first ever Bangladeshi e-commerce web site. List of different e-commerce-type web sites: www.E

Problems of e-commerce in Bangladesh Enterprise managers lack of initiatives and leadership in taking advantages of ecommerce. Lack of sufficient Infrastructure Lack of General awareness about e-commerce Lack of awareness at government level of e-commerce issues Poor number of users of web sites Mistrust Small number of Credit card users Limitations of supportive legal system Absence of cyber law or limited implementation Overcome Infrastructure development 1-7
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Legal framework Skilled manpower Ensure proper security about customers information (i.e Credit card number) by cyber law. Development of proper educational institution to create efficient IT professionals To increase the use of computers and internet facilities, government should withdraw all taxes from computers and its accessories. Proper banking infrastructure for issuing debit/credit card and online money transaction facility. Government should create an image of e-commerce awareness and leadership, and demonstrate to business community the importance of e-commerce. Relax foreign exchange control on travel and for business and allow issuance of international credit cards. Establish sufficient number of cyber caf through private entrepreneurs. Make business Association and organizations aware of the benefit of e-commerce. BGMEA can play a significant role in this respect. Political commitment to improve governance and institutional strengthening are essential for successful of e-commerce.

E-Commerce Applications by osCommerce & Zen Cart Layer of E-Commerce-type website: Super- admin: Merchant: site-owner: Who have won website by which advertisements of products or services are displayed and on-line selling process is done by the 2nd layer e-commerce site under the controlled by supper admin web site. Introduction to osCommerce osCommerce is an online shop e-commerce solution under ongoing development by the open source community. Its feature packed out-of-the box installation allows store owners to setup, run, and maintain their online stores with minimum effort and with absolutely no costs or license fees involved. osCommerce combines open source solutions to provide a free and open e-commerce platform, which includes the powerful PHP web scripting language, the stable Apache web server, and the fast My SQL database server. With no restrictions or special requirements, osCommerce is able to run on any PHP enabled web server, on any environment that PHP and MySQL supports, which includes Linux, Solaris, BSD, Mac Os X, and Microsoft Windows environments. In CMS (Contents Management Systems), Front-end (for customer) and Backend (for admin/company)

Steps of web page design of e-commerce site by using osCommerce:

1. To confirm unzip: a. osCommerce file/Zen cart file 2. To install xampp file 1-8
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b. Xampp file

3. To run xampp control panel from Desktop: Apache: running: Start MySQL: running: Start 4. To copy unzipped osCommerce file/Zen cart file and to paste into c drive /Xampp file/ htdocs. 5. To open Mozilla or any web browser and to link http: localhost: 80 6. To click osCommerce/Zen cart and then catalog and have new installation and click continue and have database server. 7. To fill in the database information by: Database server: localhost, Username: Root Password: No need, Database name: OsCommerce/any name and to minimize this page 8. To create a database by opening another web browser link of http://localhost:80/phpmyadmin and have database creator page and to name database (like db_osCommerce/Zen cart or fakir etc). 9. To go database server page and name database and click continue and have online store setting and to fill in the information like store Name, owner name, e-mail address and Administrator user name: admin and password: admin by default and available finished!, and click catalog and have e-commerce type websites front page for customer and this is called front end of e-commerce site. 10. To erase the two warnings by following instructions given. 11. To link another web browser by http://localhost/osCommerce/admin and to fill administrator user name: admin and password: admin and have Back-end site of ecommerce website and that is called administrator site and all changes made by administrators of the company will be available in the front-end of e-commerce type website in the condition of clicking refresh by default.

List of websites regarding hundreds of activities or capabilities in the Internet: A. Websites for IT-related activities: E. 43 1. Websites for chatting: Websites for preparing web pages: 1-9
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Websites for news-related activities: Websites to know about newspapers: Websites related to news in the TV channel:


4. Websites for calling via telephone: 45 46 Websites for studying or consulting IT- F. related magazines: 47 48 Websites for doing downloads of pictures clip art and fonts: www.dir.ra/internet/graphics 49 1-10

5. Websites regarding to Magazine: Websites regarding Journal: Websites for tourism-related activities: Websites regarding attractive place and traveling organization: Websites to visit famous museum Website regarding Maps

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6. Websites for searching necessary issues or affairs through different search engines: 50


G. 52 Websites for searching web tool, web programming and language: 53 Websites for collecting knowledge about 54 programming language: 55 1-11

7. Website to confirm/reserve tickets of transportation modes: Website related to immigration: Websites for activities regarding children and women: Websites to learn cook: www.simpl; Websites regarding skin and cosmetics items: Websites regarding service delivery health of woman: Websites to play and sports.


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9. Websites for downloading software:

needed Websites to read cartoon comics: Websites to take care and title of child: Websites regarding education of baby: Websites for information regarding Art and Literature: Websites to learn dance: Websites to learn magic:



10. Websites for informing different activities and information of computer company 57




Websites to know instant messenger: Websites for E-mail activities:


13. 59 www.mail.mail Websites regarding service of voice mail: 60 Websites for collecting beautiful wallpaper and desktop theme of computer: 1-12

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eme 61 load Websites for collecting information regarding operating system: 62 63 Websites for doing Fax thorough the Internet: 64 65 Websites regarding online storage: I. Websites for file sharing: 66

Websites to conscious style: Websites related to interior design house: Websites related to poet literature: Websites related to sculpture: Websites related to painting: Websites for Hobby-related activities: Websites for collecting different items: Websites to learn photography:




18 Websites to download mobile ring ton and other mobile services: 67 1-13

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19. Websites regarding antivirus cfm


69 Websites to take care of garden: Websites related to pet animals: www.pethobbyist.ocm Websites for different Institutions related activities Websites regarding electronics company: Websites related to automobiles company: Websites related to Air Transportation Agencies of Companies:

J. 70

B. 20 Websites for activities:


Websites for collecting information regarding admission in different educational institutions in this world. Canada Australia 71 Jarman Japan America 1-14


Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall tml 73 74 UK Websites related to information: 22 Websites for preparation of GRE. SAT. IELTS etc. TOEFL, 78 79 Websites regarding united nation: Websites related to banking companies in the world: Websites for Information-related activities : Websites related to statistics in different subjects: Websites related to different zones of world history: Websites for world history, picture and information: /wwwii/wwii.htm wwii.htm Websites for folk and culture-related story. Websites for religious-related information:

K. 75 76




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24 Websites to acquire skills in education: Websites related to the department of science: 80 Websites related to the department of humanities: 81 82 k.html Websites related to the General knowledge: %20knowledge.html Websites related to career: 83 Websites to study everyday: 1-16 Websites for encyclopedia or world store house of knowledge: Websites to know about unbelievable and world records. Websites to know about dictionary: Websites to search and purchase different books: Websites to search information from






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C. 30 Websites to prepare examination: Websites for sports and computer games-related activities: Websites to download games: 86 Websites to play online game:

library: Websites to search and know about information from publishers: Websites to acquire knowledge about mohakash and world: Websites related to UFO: 1.html o.htm Websites for business and economics-related activities: Websites to begin new business: Websites to search job:



L. 32 Websites to collect cheat code: Websites related to Sports: 1-17 88



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34 Websites regarding sports tournament: www.commonwealthgaes-fed-org



D. 35



92 Websites for Entertainment-related activities: Websites to know time of TV channel: Websites to know actors or to get his film: 93 94 Websites to download song: 95 1-18 Websites to buy in the Internet: Websites regarding stock exchange: Websites related to gift and E-card: Websites to search Friend: Websites to search patro-partree: Websites to know about philosopher, scholar:

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39 Websites to download lyrics: Websites to get Beatles: Websites regarding movies: Websites to search jokes: web sites to search voot 1-19



M. 98





42 Websites to justify fortune: Websites for health services: Websites regarding Internet in Bangladesh Websites related portal: Websites regarding ISP: websites to search university information:

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