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Title of the Project

B.Com final year, Sem- VIth

Project report submitted to

Royal Institute of Management and
Advanced Studies

Signature (Guide):……………

Signature (Student):…………

-----------------Prepare by Shahin Sheikh, B.Com.(CA) VITh Sem

Name of the Guide: Prof. Nanalal Nagar

Name of Student: Shahin Sheikh
Student’s Roll No: 13133971

Declaration of the Student

I Shahin Sheikh D/o Sh. Salim Sheikh certify that the
project report entitled “E- Commerce” prepared by me is my
personal and authentic work under the guidance of Prof.
Nanalal Nagar.

Date :

Signature :

Place :Ratlam

Name : Shahin Sheikh
Class : B.Com VI th Sem
Roll No.:13133971
Mob.No.: 9111730990

-----------------Prepare by Shahin Sheikh, B.Com.(CA) VITh Sem


Guide Declaration

I certify that the project report entitled “E-Commerce”
has been prepared by Shahin Sheikh Class B.Com. VI Sem
under my supervision and bears the result of her original

Date :

Signature :

Place :

Name : Prof. Nanalal Nagar
Designation : Asst.Professor
College: Royal College,

-----------------Prepare by Shahin Sheikh, B.Com.(CA) VITh Sem

(CA) VITh Sem . The Support of entire staff of the institute where I have worked has helped me a lot in growing in reason & understanding. I my deepest regard & gratitude to our HOD Prof Amit Sharma.Com final year great fully acknowledge the valuable contribution of various people related to my project report. B. Hearty & sincere thanks to my guide Prof. I shall like to pay my special thanks to the staff member of Swayed Institution. who is helping and guiding me. So. Nanalal Nagar.Com. --------------------------------------------------------------------------4 -----------------Prepare by Shahin Sheikh.4 Acknowledgement I Shahin Shaikh Student of B.

No Contents Page .Com.(CA) VITh Sem .Com VIth Sem Index S. 1 2 Project Title – E. B.Commerce Qualification/ Higher Education No.5 Shahin Sheikh B. 6 10 3 4 5 6 7 8 9 10 11 required Procedure of Management Management of Departmental Store Existing problems Solution for above problem Future challenges and their solution Future aspects of Business Experience of the Student Guidance of the Guide Result ( I sem to V sem ) 11 17 21 24 26 27 28 30 30 --------------------------------------------------------------------------5 -----------------Prepare by Shahin Sheikh.

faster and cheaper so that you can start your business right away! Opening an Ecommerce portal is as easy as choosing a value meal in your favorite restaurant: WHY I SHOULD CHOOSE E-COMMERCE BUSINESS .We make it easy to setup an E-commerce business for OFWs and non-OFWs --------------------------------------------------------------------------6 -----------------Prepare by Shahin Sheikh.We have been in the industry for over 7 years and counting . We made it simpler.6 Introduction Learn how to put up and start your E-Commerce Business. B.(CA) VITh Sem .Com.

The only Internet Café setup that lets you access your server wherever you maybe as if you are sitting infront of it! .Com.Our I-Cafe package is the lowest in the market while assuring you that the quality of our computers are not compromise . Check our actual setup here (new window will open) .(CA) VITh Sem .We are here not just to sell computers but to help you start and setup your Internet Café . . --------------------------------------------------------------------------7 -----------------Prepare by Shahin Sheikh.Managed by seasoned professionals with extensive knowledge and background in computers.7 .We provide free training for your staff or "bantay" . B.All transactions are guaranteed to be successful.Our dedicated Computer Technicians are TESDA certified .

electronic funds transfer. Internet marketing. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle. online transaction processing. although it may also use other technologies such as e-mail.8 Defination Electronic commerce. Electronic commerce draws on technologies such as mobile commerce. supply chain management. such as the Internet. B. inventory management systems. E-commerce businesses may employ some or all of the following:  Online shopping web sites for retail sales direct to consumers --------------------------------------------------------------------------8 -----------------Prepare by Shahin Sheikh. is the trading or facilitation of trading in products or services using computer networks. commonly written as e-commerce.Com. and automated data collection systems.(CA) VITh Sem .

9 Providing or participating in online marketplaces. companies had been troubled by the gap between the benefits which supply chain technology has and the solutions to deliver those benefits. e-commerce optimised the capacity of information --------------------------------------------------------------------------9 -----------------Prepare by Shahin Sheikh. For the information flows. financial flow and information flow) of the supply chain could be also affected by e-commerce. with newsletters) Engaging in pretail for launching new products and services   For a long time.Com.(CA) VITh Sem . The affections on physical flows improved the way of product and inventory movement level for companies. meaning that the three flows (physical flow. However.  E-commerce has the capability to integrate all inter-company and intra-company functions. the emergence of e-commerce has provided a more practical and effective way of delivering the benefits of the new supply chain technologies. which  process third-party business-to-consumer or consumer-toconsumer sales  Business-to-business buying and selling  Gathering and using demographic data through web contacts and social media  Business-to-business electronic data interchange  Marketing to prospective and established customers by e-mail or fax (for example. B.

Finally. 1 Preliminary & Preoperative Expenses 1000 --------------------------------------------------------------------------10 -----------------Prepare by Shahin Sheikh. Secondly. Yet these new capabilities are still not fully exploited. Fourthly. and for the financial flows. e-commerce provides companies a more efficient and effective way to collaborate with each other within the supply chain.Com. Thirdly. e-commerce would help to solve many aspects of issues that companies may feel difficult to cope with.10 processing than companies used to have. such as political barriers or crosscountry changes. new capabilities such implementing ERP systems have helped companies to manage operations with customers and suppliers. technology companies would keep investing on new e-commerce software solutions as they are expecting investment return. e-commerce has a more sophisticated level of impact on supply chains: Firstly. the performance gap will be eliminated since companies can identify gaps between different levels of supply chains by electronic means of solutions.  In addition. B.No Description Amount Rs.(CA) VITh Sem . PROJECT COST/CAPITAL INVESTMENT S. as a result of e-commerce emergence. e-commerce allows companies to have more efficient payment and settlement solutions.

B. So B.11 2 3 Fixed Capital Working Capital for 1 month(s) Total Project Cost 101000 15700 117700 _______________________________________________ Qualification/Higher qualification required No special education required for handling ecommerce.Com. --------------------------------------------------------------------------11 -----------------Prepare by Shahin Sheikh.Com with computer Application is sufficient for handling e-commerce.(CA) VITh Sem . Software and hardware knowledge is must.

It has much allure in it — you can shop at your leisure. and in your pajamas. Since that date thousands of businesses have taken up residence at web sites. electricity. cables. The ability to use these technologies appeared in the late 1970s and --------------------------------------------------------------------------12 -----------------Prepare by Shahin Sheikh. modems.12 Procedure of Management One of the most popular activities on the Web is shopping. Ecommerce became possible in 1991 when the Internet was opened to commercial use. At first. anytime. B.(CA) VITh Sem . Literally anyone can have their pages built to display their specific goods and services. and the Internet. History of ecommerce dates back to the invention of the very old notion of "sell and buy". computers. the term ecommerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions.Com.

HTTP) and DSL which allowed rapid access and a persistent connection to the Internet.13 allowed business companies and organizations to send commercial documentation electronically. In 2000 a great number of business companies in the United States and Western Europe represented their services in the World Wide Web. B.(CA) VITh Sem . Although the dot-com collapse in 2000 led to unfortunate results and many of ecommerce companies disappeared. People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet using secure connections and electronic payment services. after the online grocery store Webvan came to ruin. Albertsons and Safeway. it took approximately four years to develop the security protocols (for example. began to use ecommerce to enable their customers to buy groceries --------------------------------------------------------------------------13 -----------------Prepare by Shahin Sheikh. two supermarket chains. Although the Internet began to advance in popularity among the general public in 1994. At this time the meaning of the word ecommerce was changed.Com. the "brick and mortar" retailers recognized the advantages of electronic commerce and began to add such capabilities to their web sites (e..g.

B2B is a rapidly growing business in the world that leads to lower cost and then improves the economic efficiency and also bring along the growth of employment. To understand how the e-commerce has affected the society and economy. network marketing. By the end of 2001. the largest form of ecommerce. such this new vocabulary which is unheard-of and now has become as familiar to people. but as the pillars of indicator of the country’s economic state that the importance of time should not be ignored. online shopping. For instance. B.(CA) VITh Sem . --------------------------------------------------------------------------14 -----------------Prepare by Shahin Sheikh.Com. The e-commerce has changed the relative importance of time. virtual enterprise. Business-to-Business (B2B) model. payment and advertising. This reflects that the ecommerce has huge impact on the economy and society from the other side. Along with the e-commerce and its unique charm that has appeared gradually.14 online). had around $700 billion in transactions. this article will mention three issues below: 1. virtual bank.

Moreover. the transparent and real-time information protects the rights of consumers. is the employee loyalty.15 2. the employee’s level of professionalism becomes the crucial for enterprise in the niche market. 4. in theory. 3. Due to the market with competition.Com. The enterprises must pay attention to --------------------------------------------------------------------------15 -----------------Prepare by Shahin Sheikh. consequently. making information into total transparency. during the economic activity in the past. Nowadays. will force enterprise no longer is able to use the mode of space or advertisement to raise their competitive edge. In fact.(CA) VITh Sem . social welfare would be improved by the development of the e-commerce. perfect competition between the consumer sovereignty and industry will maximize social welfare. The new economy led by the e-commerce change humanistic spirit as well. The competitiveness of enterprises will be much more obvious than before. The e-commerce offers the consumer or enterprise various information they need. large enterprise frequently has advantage of information resource. but above all. because the consumers can use internet to pick out the portfolio to the benefit of themselves. B. and thus at the expense of consumers.

but actually that is a bit of clueless feeling at the beginning. Furthermore.16 how to build up the enterprises inner culture and a set of interactive mechanisms and it is the prime problem for them. but it is creating a new economic model. Except the mentioned above. though the mode of e-commerce decrease the information cost and transaction cost. Generally speaking. The e-commerce is not a kind of new industry. the e-commerce is going to leading an unprecedented revolution in the world. Most of people agree that the e-commerce indeed to be important and significant for economic society in the future. education. the e-commerce will continue that rise in impact.Com. Life is the root of all and high technology are merely an assistive tool to support our quality of life. this problem is exactly prove the e-commerce is a sort of incorporeal revolution. its development also makes human being are overly computer literate. B.(CA) VITh Sem . the influence of this model far exceeded the commercial affair itself. in the area of law. however. culture and also policy. emphasized more humanistic attitude to work is another project for enterprise to development. as a type of business active procedure. In hence. The e--------------------------------------------------------------------------16 -----------------Prepare by Shahin Sheikh.

17 commerce is truly to take human beings into the information society. --------------------------------------------------------------------------17 -----------------Prepare by Shahin Sheikh.Com.(CA) VITh Sem . B.

They can see actual prices. Customers can compare prices with a click of the mouse and buy the selected product at best prices. Consumers can easily search through a large database of products and services. ecommerce sales continued to grow in the next few years and. by the end of 2007. also get distinct advantages. ecommerce sales accounted for 3. Ecommerce has a great deal of advantages over "brick and mortar" stores and mail order catalogs. Online vendors. Web technology also allows to track customer preferences and to deliver individually-tailored marketing. B. The web and its search engines provide a way to be found by customers without expensive advertising campaign. --------------------------------------------------------------------------18 -----------------Prepare by Shahin Sheikh. in their turn.4 percent of total sales.Com.18 Management of E-commerce According to all available data.(CA) VITh Sem . build an order over several days and email it as a "wish list" hoping that someone will pay for their selected goods. Even small online shops can reach global markets.

in 2003 the company made its first annual profit which was the first step to the further development. however. books. After the dot-com collapse Amazon lost its position as a successful business model. is one of the most famous ecommerce companies and is located in Seattle. office supplies and other consumer electronics. Dell. Staples. Currently there are 5 largest and most famous worldwide Internet retailers: Amazon. computers.Com. --------------------------------------------------------------------------19 -----------------Prepare by Shahin Sheikh. Thanks to their founders we now have a handsome ecommerce sector and enjoy the buying and selling advantages of the Internet. According to statistics. the most popular categories of products sold in the World Wide Web are music. Amazon. Office Depot and Hewlett VITh Sem . Washington (USA). B.19 History of ecommerce is unthinkable without Amazon and Ebay which were among the first Internet companies to allow electronic transactions. It was founded in 1994 by Jeff Bezos and was one of the first American ecommerce companies to sell products over the Internet. Inc.

(CA) VITh Sem . Lacoste. apparel. Bebe Stores. The original name of the company was Cadabra. including Marks & Spencer. DVDs. but in time it extended a variety of goods by adding electronics. health products. Japan. France. video games. software. etc.Com. In 1999 Jeff Bezos was entitled as the Person of the Year by Time Magazine in recognition of the company's success. Germany. The company supports and operates retail web sites for many famous was considered as an online bookstore. but shortly after it become popular in the Internet Bezos decided to rename his business "Amazon" after the world's most voluminous river. and nowadays the company gets about 40% of its sales from affiliates and third party sellers who list and sell goods on the web site. WA. Although the company's main headquarters is located in the USA. In --------------------------------------------------------------------------20 -----------------Prepare by Shahin Sheikh. Canada. the NBA. etc.20 At the outset Amazon. and China. footwear. Amazon has set up separate websites in other economically developed countries such as the United Kingdom. Target. Amazon is one of the first ecommerce businesses to establish an affiliate marketing program. B. music CDs.

One more company which has contributed much to the process of ecommerce development is Dell Inc.(CA) VITh Sem . i. The most popular feature of the web site is the review system.21 2008 Amazon penetrated into the cinema and is currently sponsoring the film "The Stolen Child" with 20th Century Fox. Amazon. the domain has made rapid strides.e. and by the end of 1997 was the first company to record a million dollars in online sales. an American company located in Texas. Dell. The company's unique strategy of selling goods over the World Wide Web --------------------------------------------------------------------------21 -----------------Prepare by Shahin Sheikh. Launched in 1994 as a static page. which stands third in computer sales within the industry behind Hewlett-Packard and Acer.. According to the research conducted in attracted about 615 million customers every year.Com. is also well-known for its clear and userfriendly advanced search facility which enables visitors to search for keywords in the full text of many books in the database. the ability for visitors to submit their reviews and rate any product on a rating scale from one to five stars.

It is a world which we are all building together brick by brick. The key factor of Dell's success is that Dell.e. History of ecommerce is a history of a new. virtual world which is evolving according to the customer advantage. -0-0-0--------------------------------------------------------------------------22 -----------------Prepare by Shahin Sheikh. laying a secure foundation for the future generations. visitors can browse the site and assemble PCs piece by piece choosing each single component based on their budget and requirements. According to statistics. In 2007.22 with no retail outlets and no middlemen has been admired by a lot of customers and imitated by a great number of ecommerce businesses. i.Com. enables customers to choose and to control.(CA) VITh Sem . Fortune magazine ranked Dell as the 34th-largest company in the Fortune 500 list and 8th on its annual Top 20 list of the most successful and admired companies in the USA in recognition of the company's business model. approximately half of the company's profit comes from the web site.

Com.23 --------------------------------------------------------------------------23 -----------------Prepare by Shahin Sheikh.(CA) VITh Sem . B.

(CA) VITh Sem . e-commerce marketing involves some unique challenges and opportunities . --------------------------------------------------------------------------24 -----------------Prepare by Shahin Sheikh.24 Existing problems in marketing of E-commerce E-commerce marketing is the practice of guiding online shoppers to an e-commerce website and persuading them to buy the products or services online. B. because visiting an ecommerce website requires no more effort than a mouse click. Online. consumers don’t feel invested in a shopping venture the way they would if they’d gotten in their car to visit a physical location. E-commerce marketing can include practices like:  Search engine optimization to help a website to rank higher in organic search engine listings  Affiliation with better-known websites through referral marketing or banner advertising  Retention of current customers through email marketing While there are many similarities between marketing an ecommerce website and marketing a brick and mortar store.Com.

easy-to-use website and effective customer engagement tools. an ecommerce website can make shoppers want to complete their transactions online. as ecommerce businesses require much less overhead to run successfully. however. which makes it very appealing to techsavvy consumers. With a fully-functioning. B.(CA) VITh Sem . Still. e-commerce businesses don’t have opportunities to draw customers in with the physical enticements of a well-run store – there is no soft music. shopping online is faster. This is financially beneficial. if a marketing firm puts thought into their e-commerce marketing strategy.Com. this high spending may not be necessary. easier and more private. On the flipside. fabric wholesalers. relaxing smell or helpful. furniture manufacturers and technology --------------------------------------------------------------------------25 -----------------Prepare by Shahin Sheikh. many e-commerce marketing companies use this lack of investment in online shopping to justify high spending on increasing traffic to the website. well-dressed salesperson to help them make their choice. Often. Who employs E-commerce Marketing? All manner of retailers – including clothing stores.25 Additionally.

Door-to-Door Organics is a business that partners with local farmers to deliver fresh. elite experience. because they want the experience of visiting their store to be a unique. the usability and intuitive functionality of the website contributes to Door-to-door Organics’ success . While fresh produce is not the first product that comes to mind for an e-commerce website.26 companies employ e-commerce marketing.Com. any other business that is interested in increasing their sales should not only build an e-commerce website. For example. Older --------------------------------------------------------------------------26 -----------------Prepare by Shahin Sheikh. but put thought and effort into marketing it effectively. Internet-savvy consumers are the most likely to be affected by an e-commerce marketing campaign.(CA) VITh Sem . However. These retailers are often not interested in expanding their businesses or selling for a competitive price. organic produce to customers’ doorsteps. B. brick and mortar retailers make conscious decisions not to build e-commerce websites. What kinds of customers are effectively marketed to with E-commerce Marketing? Young. Sometimes.

and enhancing your website’s usability and after-sale marketing to encourage repeat visitors.(CA) VITh Sem . Enticing visitors and converting visitors work hand in hand. But when they do. they are also less particular about the quality of the e-commerce website. One without the other dramatically reduces the --------------------------------------------------------------------------27 -----------------Prepare by Shahin Sheikh. Nothing can damage an e-commerce marketing campaign and a reputation faster than a slew of stolen identities or other financial security breaches.Com. turning visitors into customers. An e-commerce marketing plan is developed by focusing on three objectives: helping new visitors to find the website. it is extremely important to ensure that your e-commerce website takes great care with customer information.27 consumers who are not as familiar with the Internet are less likely to make their purchases online in the first place. B. Because buying online necessitates the transfer of personal information including a credit card number and personal shipping address. Solution for above problems One thing that is universally important to e-commerce consumers is security.

Googling “pretty yarn” brings up Dragon Tale Yarns sold by the e-commerce branch of Earth Guild. Helping new visitors find a company’s e-commerce website is largely dependent on search engine positioning and banner advertising.Com. these results play a large role in the success of your website. a store based in North Carolina. Because users navigate the Internet through search engines like Google. A good SEO campaign can position your e-commerce website to rise to the top of the Google rankings. Earth Guild is not a large. For example. It is based on special algorithms that analyze the instances of specific keywords on your website. B. social media marketing. A website needs to entice new visitors to visit and then provide sufficient incentive to turn those visitors into a buying customers. is one of the most critical parts of e-commerce marketing.28 opportunities for creating new customers. as the fourth result. A successful e-commerce marketing team needs to have expertise in search engine optimization. nor does it have a particularly --------------------------------------------------------------------------28 -----------------Prepare by Shahin Sheikh. and display advertising to reach the top of search results.  Search engine optimization. pay-per-click marketing. well-known craft store.(CA) VITh Sem . better known as SEO.

Com. B. it likely experiences much more traffic than its competitors.29 appealing web presence. What it does have is excellent SEO – because it shows up so quickly in the search results. --------------------------------------------------------------------------29 -----------------Prepare by Shahin Sheikh.(CA) VITh Sem .

Higher margin also means business with more control as well as flexibility. it leads you to smart shopping. so sooner conversion is going to be lower on cost. --------------------------------------------------------------------------30 -----------------Prepare by Shahin Sheikh.(CA) VITh Sem . #1. Better ProductivityProductivity here means productivity for both companies and customers. You can also save time from the e-commerce. #2. and we also get much more powerful tools on websites. Quick ComparisonE-commerce also enables you to compare price among several providers. People can save more money while they shop. B. and it costs a lot cheaper expense as well for the company. Higher MarginE-commerce also enables us to move better with higher margin for more business safety. People like to find answers online because it is faster and cheaper. #3. In the end.Com. It makes increase on the numbers of e-commerce fans. It makes every transaction through e-commerce payment a lot cheaper. #4.30 Future challenges and their solution of E-Commerce We have a lot faster internet connectivity now. You may want to learn on the advantages and disadvantages so you can earn more benefits from there. Cost Effective The entire financial transactions will eventually become electronic.

In addition to it. try. protection to data is also essential. Scalability of SystemA company definitely needs a well developed website to support numbers of customers at a time. Future aspects of Business #1.Com.(CA) VITh Sem .31 #5. and other common things we find. Sometimes. Companies only need well built website and customer service. and sit on their new couch and bed. we should refuse for e-commerce. B. Products PeoplePeople who prefer and focus on product will not buy online. infrastructure investment. Integrity on Data and SystemCustomers need secure access all the time. #5. Examine on integrity and reputation of the web stores before you decide to buy. #3. Customer Service and Relation Problem- --------------------------------------------------------------------------31 -----------------Prepare by Shahin Sheikh. we can be tricked. They will want to feel. Unless the transaction can provide it. If your web destination is not well enough. SecurityCustomers need to be confident and trust the provider of payment method. #4. #2. you better forget it. Economy BenefitE-commerce allows us to make transaction without any needs on stores.

Digital teams are smarter.hopefully inspiring .(CA) VITh Sem . and more agile. As such I wanted to raise a toast to innovation by highlighting a bunch of . It's big business. But first. Why is this? Well. B.Com. ecommerce has massively matured. they will not survive the business. We have hit some kind of purple patch.32 They sometimes forget how essential to build loyal relationship with customers.examples to you. a massive caveat: I would severely and mercilessly beat a few of these sites with a big best practice --------------------------------------------------------------------------32 -----------------Prepare by Shahin Sheikh. Experience of the Student I’ve been keeping a close eye on innovation in the ecommerce sector for more than a decade now. and it seems to me that we're living in exciting times. Without loyalty from customers.

(CA) VITh Sem .Com. The advantages are surely teasing. and we will enjoy such easy transaction these days. we may really get a lot more advantages from e-commerce. If you’re not constantly testing. B.33 stick. There are usability issues galore. Enjoy more your internet browsing and enjoy more your ecommerce activities! --------------------------------------------------------------------------33 -----------------Prepare by Shahin Sheikh. then you aren’t doing it right. What works for one brand might not work so well for another. The disadvantages are not impossible to avoid. measuring and refining. it is all about the data. Secondly. There are product pages with missing information. If we have enough management on risks. There are search boxes with tiny fonts. for ecommerce sites.

IV Sem B.00%] Pass [56.No.Com.Very Good  Getting Award/ Reward during course.00%] THE END --------------------------------------------------------------------------34 -----------------Prepare by Shahin Sheikh.Nothing  Results ( From I sem to V sem ) : Sr.Com.(CA) VITh Sem .34  Co-operation of Guide .Com. III Sem B. II Sem B.Com.00%] Pass [63.Com.00%] Pass [54. 1 2 3 4 5 Class B. I Sem B.60%] Pass [60.Com. V Sem Obtained 274 318 283 300 270 Out of 500 500 500 500 500 Result (%) Pass [54. B.