ECommerce

E-commerce is the activity of buying or selling of products on online services or

over the Internet. Electronic commerce draws on technologies such as mobile
commerce, electronic funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic data
interchange (EDI), inventory management systems, and automated data
collection systems.
Modern electronic commerce typically uses the World Wide Web for at least one
part of the transaction's life cycle although it may also use other technologies such
as e-mail. Typical e-commerce transactions include the purchase of online books
(such as Amazon) and music purchases (music download in the form of digital
distribution such as iTunes Store), and to a less extent, customized/personalized
online liquor store inventory services.[1] There are three areas of e-
commerce: online retailing, electronic markets, and online auctions. E-commerce
is supported by electronic business.[2]
E-commerce businesses may also employ some or all of the followings:

 Online shopping for retail sales direct to consumers via Web sites and mobile
apps, and conversational commerce via live chat, chatbots, and voice
assistants[3]
 Providing or participating in online marketplaces, which process third-party
business-to-consumer or consumer-to-consumer sales
 Business-to-business buying and selling;
 Gathering and using demographic data through web contacts and social media
 Business-to-business (B2B) electronic data interchange
 Marketing to prospective and established customers by e-mail or fax (for
example, with newsletters)
 Engaging in pretail for launching new products and services
 Online financial exchanges for currency exchanges or trading purposes.
 Introduction of E Commerce Project
Introduction
Two thousand years ago, Roman roads brought trade and commerce to Europe in
an unprecedented manner. A thousand years ago, the spice routes linked the
cultures of East and West. At the dawn of the second millennium, the Internet, the
world’s largest computer network, the network of networks, is making
fundamental changes to the lives of everyone on the planet-changing forever the
way business is conducted.
Internet has become an important medium for doing global business based on the
state of the art technology. Global business was conducted in a new way:
electronically, using networks and the Internet. The availability of Internet has led
to the development of E-Commerce (Electronic commerce), in which business
transactions take place via telecommunication networks. E-Commerce has two
major aspects: economical and technological. The stress of this course will show
you how to get started in the complex and exciting world of Electronic Commerce.
New standards and new facilities are constantly emerging and their proper
understanding is essential for the success of an operation and especially for those
who are assigned a duty to select, establish, and maintain the necessary
infrastructure.
Brief History Of E-Commerce
The history of E-commerce is a history of how Information Technology has
transformed business processes. Some authors will track back the history of E-
commerce to the invention of the telephone at the end of last century. The Internet
was conceived in 1969, when the Advanced Research Projects Agency (a
Department of Defence organization) funded research of computer networking.
The Internet could end up like EDI (Electronic Data Interchange) without the
emergence of the World Wide Web in 1990s. EDI (Electronic Data Interchange) is
widely viewed as the beginning of E-commerce if we consider E-Commerce as the
networking of business communities and digitalization of business information.
EDI, which expanded from financial transactions to other transaction processing
and enlarged the participating companies from financial institutions to
manufacturers, retailers, services, and so on. Many other applications followed,
ranging from stock trading to travel reservation systems .Such systems were
 described as telecommunication applications and their strategic value was widely
recognized. With the commercialization of the Internet in the early 1990s and its
rapid growth to millions of potential customers, the term electronic commerce was
coined, and EC applications expanded rapidly. One reason for the rapid expansion
of the technology was the development of networks, protocols, software, and
specifications. The other reason was the increase in competition and other business
pressures. From 1995 to 1999 we have witnessed many innovative applications
ranging from advertisement to auctions and virtual reality experiences. Almost
every medium- and large-sized organization in the United States already has a Web
site many are very extensive; for example, in 1999 General Motors Corporation
offered 18,000 pages of information that included 98,000 links to its products,
services, and dealers.
Definition Of E-Commerce:
Concepts of E commerce
Electronic commerce is an emerging model of new selling and merchandising
tools in which buyers are able to participate in all phases of a purchase decision,
while stepping through those processes electronically rather than in a physical store
or by phone (with a physical catalogue). The processes in electronic commerce
include enabling a customer to access product information, select items to
purchase, purchase items securely, and have the purchase settled financially. It is
an emerging concept that describes the process of buying and selling or
exchanging of products, services; and information via computer networks
including the Internet.
E-commerce is basically, doing business-as-usual, but across the Internet. You
advertise your products or services on your Web site, as you would in any other
media like newspapers, TV or brochures. Advertising on your Web site can be
done in two ways.
 The first is by use of a relatively simple Web site consisting of a few pages
whereby you tell potential customers who you are, what you do, where you are
and how they can contact you ( easiest done by giving them your email address).
 The second way of enabling world-wide customers to buy from you is to provide
them with an On-Line Catalogue of your products which they can browse at
their leisure without having to go to your place of business.
On-Line Catalogue:
 On-Line Catalogue is that catalogue where people access via the Internet. On-Line
Catalogue is an integral part of website, enabling customers to...
 Browse through stock list, read about an item or service;
 Look at photographs of the products.
 Select which items they want to purchase
 And drop them into a shopping cart as they go along.
 When they have completed their shopping, they go to the
 Check-Out.
The next step is to request the order by filling in their details and method of
payment on a form which is waiting for them at the Check-Out. The form is
already partially completed with a breakdown of the items in their shopping cart,
prices inclusive of tax, and shipping & handling charges, if any. If they choose to
pay by credit card, the form includes a place for them to fill in their credit card
number. And then, with one press of a button, they send the order to you.
Electronic Commerce under different perspectives:
Let’s see how Electronic Commerce (EC) is defined under each perspective.
1. Communications Perspective
EC is the delivery of information, products /services, or payments over the
telephone lines, computer networks or any other electronic means.
2. Business Process Perspective
EC is the application of technology toward the automation of business transactions
and work flow.
3. Service Perspective
EC is a 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.
4. Online Perspective
EC provides the capability of buying and selling products and information on the
internet and other online services.
Classifications of E-Commerce Applications
Electronic Commerce (e-Commerce) is a general concept covering any form of
business transaction or information exchange executed using Information and
Communication Technologies (ICTs). E-Commerce takes place between
companies, between companies and their customers, or between companies and
 public administrations. Electronic Commerce includes electronic trading of goods,
services and electronic material.
E-Commerce systems include commercial transactions on the Internet but their
scope is much wider than this; they can be classified by application type:
Electronic Markets:
The principle function of an electronic market is to facilitate the search for the
required product or service. Airline booking systems are an example of an
electronic market.
Electronic Data Interchange (EDI):
Electronic Data Interchange (EDI) is the electronic exchange of business
documents in a standard, computer processable, universally accepted format
between-trading partners.
EDI is quite different from sending electronic mail, messages or sharing files
through a network. In EDI, the computer application of both the sender and the
receiver, referred to as Trading Partners (TPs) have to agree upon the format of the
business document which is sent as a data file over electronic messaging services.
The two key aspects of EDI that distinguish it from other forms of electronic
communication, such as electronic mail, are:
1. The information transmitted is directly used by the recipient computer without
the need for human intervention is rarely mentioned but often assumed that EDI
refers to interchange between businesses. It involves two or more organization or
parts of organization communicating business information with each other in a
common agreed format.
2. The repeated keying of identical information in the traditional paper-based
business.
Communication creates a number of problems that can be significantly reduced
through the usage of EDI. These problems include: -
 Increased time
 Low accuracy
 High labour charges
 Increased uncertainty.
To take full advantage of EDI’s benefits, a company must computerize its basic
business applications. Trading partners are individual organization that agrees to
exchange EDI transactions. EDI cannot be undertaken unilaterally but requires the
cooperation and active participation of trading partners. Trading partners normally
consists of an organization’s principal suppliers and wholesale customers. Since
large retail stores transact business with a large number of suppliers they were
among the early supporters of EDI. In the manufacturing sector, EDI has enabled
the concept of Just-In-Time inventory to be implemented. JIT reduces inventory
and operating capital requirements.
EDI provides for the efficient transaction of recurrent trade exchanges between
commercial organizations. EDI is widely used by, for example, large retail groups
and vehicle assemblers when trading with their suppliers.
Internet Commerce
The Internet (and similar network facilities) can be used for advertising goods and
services and transacting one-off deals. Internet commerce has application for both
business to- business and business to consumer transactions.
 There are a number of different types of E-Commerce
 B2B - Business to Business
 B2C - Business to Consumer
 C2B - Consumer to Business
 B2E - Business to Employee
 C2C - Consumer to Consumer
B2B - Business to Business
E-commerce has been in use for quite a few years and is more commonly known as
EDI (electronic data interchange). In the past EDI was conducted on a direct link
of some form between the two businesses where as today the most popular
connection is the internet. The two businesses pass information electronically to
each other. B2B e-commerce currently makes up about 94% of all e-commerce
transactions.
Typically in the B2B environment, E-Commerce can be used in the following
processes:
 Procurement;
 order fulfilment;
 Managing trading-partner relationships.
B2C - Business to Consumer
Business to Consumer e-commerce is relatively new. This is where the consumer
accesses the system of the supplier. It is still a two way function but is usually done
solely through the Internet.
B2C can also relate to receiving information such as share prices, insurance quotes,
on-line newspapers, or weather forecasts. The supplier may be an existing retail
outlet such as a high street store; it has been this type of business that has been
successful in using E-Commerce to deliver services to customers. These businesses
may have been slow in gearing-up for E-Commerce compared to the innovative
dot.com start ups, but they usually have a sound commercial structure as well as
in-depth experience of running a business - something which many dotcoms
lacked, causing many to fail.
Example: A home user wishes to purchase some good quality wine. The user
accesses the Internet site to read a report on the recommended wines. After reading
the tasting notes the user follows the links to place an order along with delivery
and payment details directly into the merchants’ inventory system. The wine is
then dispatched from the supplier’s warehouse and in theory is delivered to the
consumer without delay.
C2B - Consumer to Business
Consumer to Business is a growing arena where the consumer requests a specific
service from the business. Example: Harry is planning a holiday in Darwin. He
requires a flight in the first week of December and is only willing to pay Rs. 250.
Harry places a submission with in a web based C2B facility. Dodgy Brothers
Airways accesses the facility and sees Harry’s submission. Due to it being a slow
period, the airline offers Harry a return fare for Rs. 250.
B2E - Business to Employee
Business to Employee e-commerce is growing in use. This form of E-commerce is
more commonly known as an ‘Intranet’. An intranet is a web site developed to
provide employees of an organisation with information. The intranet is usually
access through the organisations network, it can and is often extended to an Entrant
which uses the Internet but restricts uses by sign on and password.
C2C - Consumer to Consumer
These sites are usually some form of an auction site. The consumer lists items for
sale with a commercial auction site. Other consumers access the site and place bids
on the items. The site then provides a connection between the seller and buyer to
complete the transaction. The site provider usually charges a transaction cost. In
reality this site should be call C2B2C.
B2A is the least developed area of E-Commerce and it relates to the way that
public sector organisations, at both a central and local level, are providing their
services on-line. Also known as e-Government, it has the potential to increase the
domestic and business use of e-Commerce as traditional services are increasingly
 being delivered over the Internet. The UK government is committed to ensuring
this country is at the forefront of e-Commerce and it is essential that e-Government
plays a significant part in achieving this objective.
Scope of E-Commerce
 Selling can be focussed to the global customer
 Pre-sales, subcontracts, supply
 Financing and insurance
 Commercial transactions: ordering, delivery, payment
 Product service and maintenance
 Co-operative product development
 Distributed co-operative working
 Use of public and private services
 Business-to-administrations (e.g. customs, etc)
 Transport and logistics
 Public procurement
 Automatic trading of digital goods
 Accounting
 Dispute resolution
E- Commerce in Action
How E-Commerce Works
The consumer first moves through the internet to the merchant’s web site. At the
web site, the consumer is briefly given an introduction to the product or services
the merchant offers. It is at this point that the consumer makes the decision to visit
the web store by clicking on a link or button located on the web page (e.g., Buy
Now, Shop Online, or an image of a shopping cart button are common entry points
into a web store). After choosing to visit the web store, the consumer is typically
connected to an online transaction server located somewhere else on the internet
which runs software commonly referred to as a shopping cart application. The
shopping cart application has been setup by the merchant to display all products
and services offered, as well as calculate pricing, taxes, shipping charges, etc.
From there, the consumer decides that he wants to purchase something, so he
enters all pertinent credit card information and a sales order is produced.
Depending on the ECommerce implementation, the sales order can now take two
totally different paths for confirming to the consumer that the order is officially
placed.
Scenario 1
The consumer’s credit card information goes directly through a private gateway to
a processing network, where the issuing and acquiring banks complete or deny the
transaction. This generally takes place in no more than 5-7 seconds and the
consumer is then informed that the order was received, the credit card was
authorized, and that the product will ultimately be shipped.
Scenario 2
The consumer’s entire order and credit card information is electronically submitted
back to the merchant’s server (usually via email, FTP, or SSL connection) where
the order can be reviewed first and then approved for credit card authorization
through a processing network. The consumer then receives an email shortly
afterwards, confirming the order being received, the credit card being authorized,
and status on when the product will exactly be shipped.
In both scenarios, the process is transparent to the consumer and appears virtually
the same. However, the first scenario is a more simplistic method of setting up a
shopping cart application and does not take into consideration any back office
issues that may delay shipment (i.e., items out of stock, back orders, orders
submitted after office hours or during holidays, etc.). ManageMore’s ECommerce
 Manager relies on the second scenario to handle all of its ECommerce orders. This
second scenario keeps the consumer accurately informed throughout the entire
ordering process.
Let us assume an ECommerce implementation that uses the second scenario
mentioned above.
There are several basic steps you will need to accomplish before becoming
Commerce enabled.
1. Getting a Merchant Bank Account
2. Web Hosting
3. Web Design Considerations
4. Registering a Domain Name
5. Obtaining a Digital Certificate
Getting a Merchant Bank Account
In order to be able to accept credit cards, you must apply for an account with a
credit card merchant account provider. This can be relatively easy or somewhat
difficult, depending on which country you live in, and the type of business you are
running.
When choosing a merchant account provider, the following should also be noted:
 In order for credit card authorization to be automatic from within ManageMore,
you must ensure that your merchant account provider has credit card processors
that connect with IC Verify™, PC Charge™, or AuthorizeNet™
(i.e.Intellicharge Interface) software. These products are sold separately from
ManageMore and eliminate the need for merchant terminal devices or separate
time consuming steps to approve credit cards.
 Your merchant account provider must allow you to handle non-swiped credit
card transactions. This refers to transactions where the customer is not present
and only the credit card number and expiration date are being used for approving
the charges.
 When choosing a merchant account provider, you should do a little research on
the company’s reputation, years in business, and company size. Constantly
changing to a new merchant account provider when your old one goes out-of
business can be costly and time consuming.
 Avoid merchant account providers that ask for a non-refundable fee before you
get approved.
 Avoid merchant account providers that require 1 or 2 year contract terms. Since
there are so many merchant account providers available, it doesn’t make sense to
lock your company into a commitment for any period of time.
 Expect merchant account providers to have some form of a sign up fee after
being approved only. These fees can come in the form of an application fee,
processing fee, software fee, etc. Typically expect to pay around $100 to $500
for getting an account setup to accept credit cards and sometimes electronic
checks.
 You should be able to find a merchant account provider that can offer you
discount credit cards rates ranging from 1.75% to 2.75% and no more than .25
cent per transaction. If not, contact Intellisoft regarding our merchant account
provider affiliates and the free Intellicharge Interface just for signing up with
them.
 You will need a dedicated phone line or data line for processing credit cards and
electronic checks. Note: If your computer or local area network is already
connected to the internet, a separate data line will not be necessary if you use the
Intellicharge Interface for electronic payment.
Web Hosting
Web hosting is a very important step in this process, as this is how you gain a
presence on the internet in the first place. There are actually two scenarios that can
be used for web hosting. Scenario1 involves setting up and maintaining your own
web server, while Scenario 2 involves farming out all web hosting administration
to an ISP. An Internet Service Provider (ISP) is a company that provides you with
internet access and limited hard drive space on their web servers for hosting your
web site.
The following should be noted when searching for an Internet Service Provider:
1. Always try to find an ISP that can provide a local telephone number for you to
connect to the internet.
2. Choose an ISP that is known for having few interruptions of service.
3. Choose an ISP that is known for good technical support and has knowledgeable
people familiar with ECommerce sites.
4. Choose an ISP that consistently has fast connection speeds.
5. As with any company you do business with, make sure the ISP is reputable.
The online transaction providers that offer the actual web store itself can
sometimes be hosted by your same ISP or may require a completely different
provider, referred to as a Commerce Service Provider (CSP). Many small
businesses tend to choose CSP’s for creating a web store because it gives them the
 flexibility of choosing a provider that offers competitive pricing and the best
shopping cart application for their needs. Online transaction providers will usually
provide one shopping cart solution they feel is better than the many others that
exist and differ by price, appearance, layout, functionality, and ease of use.
The following should be noted when dealing with shopping cart applications:
1. Online transaction providers will either sell or rent you the use of an online
shopping cart application for your business. Be forewarned that purchasing an
online shopping cart application is very expensive. Most businesses will rent
these online web store programs rather than committing to such a steep
investment.
2. Rental pricing for the use of shopping cart programs vary depending on number
of transactions generated a month, number of products listed on the shopping
cart application, and the sophistication of the shopping cart application itself.
3. There are a lot of online transaction providers out there, and they all have
varying packages. Deciding on a provider’s package that fits your needs is
perhaps the most important aspect.
Web Design Considerations
With little knowledge of HTML and a lot of patience, you can probably create your
own corporate web site with the help of products like Microsoft FrontPage™ or
DreamWeaver™. However, when adding a web store to your web site, you may
want to seek the help of professional web designers to make the look and feel of
your web store consistent with the rest of your corporate web site. Most shopping
cart applications, like SoftCart by Mercantec, allow its templates to be modified
just for this purpose. In many cases, the same ISP or CSP you choose can provide
web design and consultation.
Registering a Domain Name
Domain names are the names for computers on the Internet that correspond to IP
(Internet protocol) numbers to route information to addresses on the Internet
network. Domain names serve as a convenient way of locating information and
people on the Internet. In layman terms, will it be important to you, for customers
to find your web site by typing “123.123.456.456” or by typing something simple
to remember like
Registering a domain name is one of the most important decisions you can make
for your online identity. Your domain name says who you are to your clients, your
peers - the whole world. The basics for registering a domain name are:
 Contact a domain name registrar on the internet to register for a domain
name.There are many to choose from, just do a web search on “domain name
registrar” to get you started.
2. Select a unique domain name you would like others to use for finding your web
site.
Obtaining a Digital Certificate
A digital certificate, also known as a SSL Server Certificate, enables SSL (Secure
Socket Layer encryption) on the web server. SSL protects communications so you
can take credit card orders securely and ensure that hackers cannot eavesdrop on
you. Any ECommerce company that provides you with an online web store will
require you to have SSL before you can use their services. Thankfully, for most
people obtaining a digital certificate is not a problem. For a minimal fee, one can
usually use the certificate owned by the web hosting company where your page
resides. If you are a larger company, however, you may want to get your own
digital certificate.
Architectural Framework of E Commerce
A framework is intended to define and create tools that integrate the information
found in today’s closed systems and allows the development of e-commerce
applications. It is important to understand that the aim of the architectural frame-
work itself is not to build new database management systems, data repository,
computer languages, software agent based transaction monitors, or communication
protocols. Rather, the architecture should focus on synthesizing the diverse
resources already in place in corporations to facilitate the integration of data and
software for better applications. The electronic commerce application architecture
consists of six layers of functionality, or services:
1. applications;
2. brokerage services, data or transaction management;
3. interface, and; support layers”
4. secure messaging, security and electronic document interchange;
5. middle ware and structured document interchange; and
6. network infrastructure and basic communications services.
These layers co-operate to provide a seamless transition between today’s
computing resources and those of tomorrow by transparently integrating
information access and exchange within the context of the chosen application. As
seen in Fig., electronic commerce applications are based on several elegant
technologies. But only when they are integrated do they provide uniquely powerful
solutions.
In the ensuing discussion of each of these layers, we will not elaborate on the
various aspects of the network infrastructure that transports information. These
were discussed extensively earlier and will not be addressed here. We begin our
discussion with the application level services.
Table Electronic Commerce: A conceptual framework

Electronic Commerce Application Services

The application services layer of e-commerce will be comprised of existing and
future applications built on the innate architecture. Three distinct classes of
electronic commerce application can be distinguished: customer to business,
business-to-business, and intra organization
Consumer-to-Business Transactions
We call this category marketplace transaction. In a marketplace transaction,
customers learn about products differently through electronic publishing, buy them
differently using electronic cash and secure payment systems, and have them
delivered differently.
 Also, how customers allocate their loyalty may also be different. In light of this,
the organization itself has to adapt to a world where the traditional concepts of
brand
Differentiation no longer hold-where “quality” has a new meaning, where
“content” may not be equated to “product,” Where “distribution” may not
automatically mean “physical Transport.” In this new environment, brand equity
can rapidly evaporate forcing firms to develop new ways of doing business
Business-to Business Transactions
We call this category market-link transaction. Here, businesses, governments, and
other organizations depend on computer - to-computer communication as a fast, an
economical, and a dependable way to conduct business’ transactions. Small
companies are also beginning to see the benefits of adopting the same methods.
Business-to-business transactions include the use of EDI and electronic mail for
purchasing goods and services,buying information and consulting services,
submitting requests for proposals, and receiving proposals. Examine this scenario.
The current accounts payable process occurs through the exchange of paper
documents. Each year the trading partners exchange millions of invoices, checks,
purchase orders, financial reports, and other transactions. Most of the documents
are in electronic form at their point of origin but are printed and key-entered at the
point of receipt. The current manual process of printing, mailing is costly, time
consuming, and error-prone. Given this situation and faced with the need to reduce
costs, small businesses are looking toward electronic commerce as a possible
savior. Intra-organizational Transactions We call this category market-driven
transactions. A company becomes market driven by dispersing throughout the firm
information about its customers and competitors; by spreading strategic and
tactical decision making so that all units can participate; and by continuously
monitoring their customer commitment by making improved customer satisfaction
an ongoing objective. To maintain the relationships that are critical to delivering
superior customer value, management must pay close attention to service, both
before and after sales. In essence, a market-driven business develops a
comprehensive understanding of its customers’ business and how customers in the
immediate and downstream markets perceive value.
Three major components of market-driven transactions are
 customer orientation through product and service
 customization; cross-functional coordination through enterprise
 integration; and advertising, marketing, and customer service.
Information Brokerage and Management
The information brokerage and management layer provides service integration
through the notion of information brokerages, the development of which is
necessitated by the increasing information resource fragmentation. We use the
notion of information brokerage to represent an intermediary who provides service
integration between customers and information providers, given some constraint
such as a low price, fast service, or profit maximization for a client. Information
brokers, for example, are rapidly becoming necessary in dealing with the
voluminous amounts of information on the networks. As on-line databases migrate
to consumer information utilities, consumers and information professionals will
have to keep up with the knowledge, and owner-ship of all these systems.
Most professionals have enough trouble keeping track of files of 1 interest on one
or two database services. With all the complexity associated with large numbers of
on-line databases and service bureaus, if it is impossible to expect humans to do
the searching. It will have to be software programs-information brokers or software
agents, to use the more popular term-that act on the searcher’s behalf. Information
brokerage does more than just searching. It addresses the issue of adding value to
the information that is retrieved. For instance, in foreign exchange trading,
information is retrieved about the latest currency exchange rates in order to hedge
currency holdings to minimize risk and maximize profit. In other words, the act of
retrieving the information is the input to other transactions. With multiple
transactions being the norm in the real world, service integration becomes critical.
Taking the same foreign exchange example further, service integration allows one
to link the hedging program (offered on a time-sharing basis by a third party) with
the search program (could be another vendor) that finds the currency rates from the
cheapest on-line service to automatically send trades to the bank or financial
services company. In effect, a personalized automated trading system can be
created without having to go to any financial institution. This is just one example
of how information brokerages can add value. Another aspect of the brokerage
function is the support for data management and traditional transaction services.
Brokerages may provide tools to accomplish more sophisticated, time-delayed
updates or future compensating transactions. These tools include software agents,
distributed query generator, the distributed transaction generator, and the
declarative resource constraint base which describes a business’s rules and-
environment information.
At the heart of this layer lies the work-flow scripting environment built on a
software agent model that coordinates work and data flow among support services.
As pointed out earlier, software agents are used to implement information
brokerages. Software agents are mobile programs that have been called “healthy
viruses,” “digital butlers/” and “intelligent agents.” Agents are encapsulations of
users’ instruction that perform all kinds of tasks in electronic market places spread
across networks.
Information brokerages dispatch agents capable of information resource gathering,
negotiating deals, and performing transactions. The agents are intelligent because
they have contingency plans of action. They examine themselves and their
environment and if necessary change from their original course of action to an
alternative plan. For example, suppose you send an agent to an on-line store with a
request to order a bouquet of roses for Rs. 25 or less. If the shop offers roses
starting at Rs. 30, your agent can either choose a different bouquet or find a
different store by consulting an online
“Yellow Pages” directory, depending on prior instructions. Although the notion of
software agents sounds very seductive, it will take a while to solve the problems of
interregna communication, interoperable agents, and other headaches that come
with distributed computing and net-working. To some critics, the prospect of a
single-agent language like Telescript as a world standard is disturbing. They worry
that agents sound a bit too much like computer viruses, which instead of running
errands may run amok.
Vendors such as General Magic go to great lengths to explain the precautions it has
taken to make this impossible: the limits placed on the power of agents, the “self-
destruct” mechanism built into their codes. Yet until electronic commerce services
are up and running on a large scale, it is impossible to know how well software
agents will work.
Interface and Support Services
The third layer, interface and support services will provide interfaces for electronic
commerce applications such as interactive catalogs and will sup-port directory
servicesfunctions necessary for information search and access. These two concepts
are very different.
Interactive catalogs are the customized interface to consumer applications such as
home shopping. An interactive catalog is an extension of the paper-based catalog
and incorporates additional features such as sophisticated graphics and video to
make the advertising more attractive. Directories, on the other hand, operate
behind the scenes and attempt to organize the enormous amount of information and
transactions generated to facilitate electronic commerce. Directory services
databases make data from any server appear as a local file. A classic example of a
directory is the telephone White Pages, which allows us to locate people and
telephone numbers. In the case of electronic commerce, directories would play an
important role in information management functions.
For instance,take the case of buying an airline ticket with several stopovers with
the caveat that the time between layovers be minimized. This search would require
several queries to various online directories to-find empty seats on various airlines
and then the avail-ability of seats would; be coordinated with the amount of time
spent in the air-port terminals. The primary difference between the two is that
unlike interactive catalogs, which deal with people, directory support services
interact directly with soft-ware applications. For this reason, they need not have the
multimedia glitter and jazz generally associated with interactive catalogs. From a
computing perspective, we can expect that there will be no one common user
interface that will glaze the surface of all electronic commerce applications, but
graphics and object manipulation will definitely dominate. Tool developers and
designers might incorporate common tools for interface building, but the shape of
catalogs or directories will depend on the users’ desires and functional
requirements.
Secure Messaging and Structured Document Interchange Services
The importance of the fourth layer, secured messaging, is clear. Everyone in
business knows that electronic messaging is a critical business issue. Consider a
familiar business scenario:
You hand over an urgent fax Monday and find out Tuesday that it’s still sitting on
your fax operator’s desk. What happened?
The line was busy and he thought he’d try again later. Or, the number was
wrong,but he forgot to let you know. Or you’re in London and you need to send a
spreadsheet that details a marketing plan for a product introduction strategy to a
co-worker in New York. This must be done today, not tomorrow when the courier
service would deliver.
There is a solution to these common and frustrating problems. It’s called Integrated
Messaging: a group of computer services that through the use of a network send,
receive, and combine messages, faxes, and large data files. Some better-known
examples are electronic mail, enhanced fax, and electronic data interchange.
Broadly defined, messaging is the software that sits between the network
infrastructure and the clients or electronic commerce applications, masking the
peculiarities of the environment. Others define messaging as a frame-work for the
total implementation of portable applications, divorcing you from the architectural
primitives of your system. In general, messaging products are not applications that
solve problems; they are more enablers of the applications that solve problems.
Messaging services offer solutions for communicating non formatted
(unstructured) data-letters, memos, and reports as weft asformatted (structured)
data such as purchase orders, shipping notices, and invoices. Unstructured
messaging consists of fax, e-mail, and form-based systems like Lotus Notes.
Structured documents messaging consist of the automated inter-change of
standardized and approved messages between computer applications, via
telecommunications lines. Examples of structured document messaging include
EDI. Messaging is gaining momentum in electronic commerce and seems to have
many advantages. It supports both synchronous (immediate) and asynchronous
(delayed) message delivery and processing. With asynchronous messaging, when a
message is sent, work continues (software doesn’t wait for a response).This allows
the transfer of messages through store-and-forward methods.
Another advantage of messaging is that it is not associated with any particular
communication protocol. No pre-processing is necessary, although there is an
increasing need for programs to interpret the message. Messaging is well suited for
both client server and peer-to-peer computing models. In distributed systems, the
messages are treated as “objects” that pass between systems.
Messaging is central to work-group computing that is changing the way businesses
operate. The ability to access the right information at the right time across diverse
work groups is a challenge. Today, with the messaging tools, people can
communicate and work together more effectively-no matter where they are located.
When an employee sends an electronic mail form, the information travels along
with the form. So one person can start the form, mail it to the next person, fill it in/
sign it, mail it to the next, and so on. This is known as message-enabled work-flow
solutions.
The main disadvantages of messaging are the new types of applications it enables
which appear to be more complex, especially to traditional programmers and the
jungle of standards it involves. Because of the lack of standards, there is often no
interoperability between different messaging vendors leading to islands of
messaging. Also, security, privacy, and confidentiality through data encryption and
authentication techniques are important issues that need to be resolved for ensuring
the legality of the message-based transactions themselves.
Mi
 7 Basic ECommerce Marketing Concepts

1. Personalization

No matter what you sell, it's essential that your company relates to your potential
customers on a personal level.

Personalization is the process of tracking what your site visitors look at on (and
off) your site so you can get a better understanding of their preferences.

Then, once you know their preferences, you can use cookies to each customer an
experience on your site that was designed specifically for them.

Personalized website content helps you build relationships with your site's repeat
visitors by showing them the perfect message at the perfect time.

You can even go so far as to offer special deals to certain individuals who buy
specific products on your site.

Whatever you choose, it's important that your site has some degree of
personalization. ECommerce shoppers love seeing messages that are tailored to
their interests, and it's a great way to move more products.

2. Product recommendations
Along with personalization, you can also provide product recommendations.

Product recommendations show your potential customers that you pay attention to
their wants and needs. It also allows them to get a bigger picture of your inventory
and — as we mentioned above — move more products.

You can use product recommendations in a number of ways.

First, you can add your own company recommendations. These would most often
be products that are similar to something a customer has already bought.

Second, you can highlight user recommendations. These can be items like wish-
lists that your customers share with one another. This also requires your site to
have the functionality to allow users to share items internally, but it can pay
dividends.

After all, word of mouth is the most trusted form of advertising.

Third, you can use recommended products to show customers products that
complement what they're currently buying. So if someone's buying a garden hose
from your housewares store, you should also show them different hose heads or
wall spigots so they're buying a group of products that work together.

However, once your customers have those items in their carts, there's no guarantee
that they'll buy everything.

That's why you need this next crucial part of ECommerce marketing
3. Cart reminders

One of the most frustrating parts of running an ECommerce store is customers who
leave your website when they have products in their carts.

That's why you need to use cart reminders.

Cart reminders are emails that automatically generate and send whenever someone
has a cart of products and leaves your site. The emails can send out a day after the
customer leaves, or sometimes as long as a week or month later.

Regardless, the point is always the same — to get that customer back to your site
and have them finish their transaction.

Shoppers who have accounts with you have already given you their email
addresses so you can communicate with them. They've also shown clear interest in
the products they added to their cart themselves.

So you're giving them what they want by reminding them about their abandoned
cart. And even if they're not able to finish their transaction that same day, they may
finish it a week later when your email arrives in their inbox.
But carts aren't the only part of ECommerce marketing that you need to add.

4. Product social sharing

Social media marketing is a critical part of any Internet marketing plan.

But it's exceptionally important for ECommerce companies.

For every product on your site, you have an opportunity to cause an impact on
social media. Someone shopping for your items might find something their friend
would like, so it's important that you let them tweet, post, or share about what you
have.

Then, the friends of the person who shared your product will see what they posted.
That lets them click to your site — at their friend's recommendation — and
possibly become a new customer.

In other words, social sharing lets your customers market for you. All you have to
do is provide the product and the means to share it.

But there's still one more marketing concept that you need to implement if you
want your ECommerce store to really succeed.
 Amazon
Amazon.com, Inc. is an American multinational technology company based
in Seattle, Washington, that focuses on e-commerce, cloud computing, digital
streaming, and artificial intelligence. It is considered one of the Big
Four technology companies along with Google, Apple, and Facebook.
Amazon is known for its disruption of well-established industries through
technological innovation and mass scale.[10][11][12] It is the world's largest e-
commerce marketplace, AI assistant provider, and cloud computing platform[13] as
measured by revenue and market capitalization.[14] Amazon is the largest Internet
company by revenue in the world.[15] It is the second largest private employer in
the United States[16] and one of the world's most valuable companies. Amazon is
the second largest technology company by revenue.
Amazon was founded by Jeff Bezos on July 5, 1994, in Bellevue, Washington. The
company initially started as an online marketplace for books but later expanded to
sell electronics, software, video games, apparel, furniture, food, toys, and jewelry.
In 2015, Amazon surpassed Walmart as the most valuable retailer in the United
States by market capitalization.[17] In 2017, Amazon acquired Whole Foods
Market for $13.4 billion, which vastly increased Amazon's presence as a brick-and-
mortar retailer.[18] In 2018, Bezos announced that its two-day delivery
service, Amazon Prime, had surpassed 100 million subscribers worldwide.[19][20]
Amazon distributes downloads and streaming of video, music, audiobook through
its Amazon Prime Video, Amazon Music, and Audible subsidiaries. Amazon also
has a publishing arm, Amazon Publishing, a film and television studio, Amazon
Studios, and a cloud computing subsidiary, Amazon Web Services. It
produces consumer electronics including Kindle e-readers, Fire tablets, Fire TV,
and Echo devices. In addition, Amazon subsidiaries include Ring, Twitch.tv,
Whole Foods Market, and IMDb. Among various controversies, the company has
been criticized for technological surveillance overreach,[21] a hyper-competitive
and demanding work culture,[22] tax avoidance,[23] and anti-competitive
practices.[24]
 Key Executives
Year
Name Title Pay Born
Founder, Chairman, Pres &
Mr. Jeffrey P. Bezos CEO 1.68M 1964
Mr. Brian T. Olsavsky Sr. VP & CFO 163.2k 1964
Mr. Jeffrey M. Blackburn Sr. VP of Bus. Devel. 178.5k 1970
Chief Exec. Officer of
Mr. Jeffrey A. Wilke Worldwide Consumer 255.61k 1967
Chief Exec. Officer of
Mr. Andrew R. Jassy Amazon Web Services Inc. 266.23k 1968

Assets
Fiscal year is January-December.
2014 2015 2016 2017 2018
All values USD millions.

Cash & Short Term Investments 17.87B 20.09B 26.58B 32.32B 41.68B

Cash Only 15.01B 16.18B 19.93B 21.86B 32.18B

Short-Term Investments 2.86B 3.92B 6.65B 10.46B 9.5B

Total Accounts Receivable 5.16B 5.37B 7.74B 11.83B 16.25B

Accounts Receivables, Net 2.85B 3.82B 5.3B 7.67B 12.17B

Accounts Receivables, Gross 3.04B 4B 5.54B 8.01B 12.67B

Bad Debt/Doubtful Accounts (190M) (189M) (237M) (348M) (495M)

Other Receivables 2.31B 1.55B 2.44B 4.16B 4.08B

Inventories 8.3B 10.24B 11.46B 16.05B 17.17B

Finished Goods 8.3B 10.24B 11.46B 16.05B 17.17B

Work in Progress - - - - -
Raw Materials - - - - -
Progress Payments & Other - - - - -
Other Current Assets - - - - -
Miscellaneous Current Assets - - - - -
 Total Current Assets 31.33B 35.71B 45.78B 60.2B 75.1B
2014 2015 2016 2017 2018

Net Property, Plant & Equipment 16.97B 21.84B 29.11B 48.87B 61.8B
Property, Plant & Equipment -
Gross 22.73B 30.05B 42.44B 72.66B 95.77B

Buildings 7.15B 9.77B 14B 23.9B 31.74B

Land & Improvements - - - - -
Computer Software and
Equipment 1.3B 1.4B 1.4B - -
Other Property, Plant &
Equipment 304M 334M 649M 2.44B 2.58B

Accumulated Depreciation 5.76B 8.22B 13.33B 23.79B 33.97B

Total Investments and Advances 886M 418M 715M 1.4B 1.52B
Other Long-Term Investments 811M 418M 715M 1.4B 1.52B
Long-Term Note Receivable - - - - -

Intangible Assets 4.08B 4.75B 4.64B 16.72B 18.66B

Net Goodwill 3.32B 3.76B 3.78B 13.35B 14.55B

Net Other Intangibles 764M 992M 854M 3.37B 4.11B

Other Assets 971M 1.95B 2.7B 4.13B 5.58B

Tangible Other Assets 971M 1.95B 2.7B 4.13B 5.58B

Total Assets 56.34B 67.01B 86.02B 131.31B 162.65B

Liabilities & Shareholders'
Equity
2014 2015 2016 2017 2018
ST Debt & Current Portion LT
Debt 3.6B 3.34B 5.2B 6.18B 9.5B
Short Term Debt - - - - -
Current Portion of Long Term
Debt 3.6B 3.34B 5.2B 6.18B 9.5B

Accounts Payable 16.46B 20.4B 25.31B 34.62B 38.19B

Income Tax Payable - - - - -

Other Current Liabilities 8.03B 10.15B 13.31B 17.09B 20.7B

Dividends Payable - - - - -
 Accrued Payroll - - - - -

Miscellaneous Current Liabilities 8.03B 10.15B 13.31B 17.09B 20.7B

Total Current Liabilities 28.09B 33.89B 43.82B 57.88B 68.39B

Long-Term Debt 12.49B 14.18B 15.21B 37.93B 39.79B

Long-Term Debt excl.
Capitalized Leases 8.27B 8.23B 7.69B 24.74B 23.5B

Non-Convertible Debt 8.27B 8.23B 7.69B 24.74B 23.5B

Convertible Debt - - - - -

Capitalized Lease Obligations 4.22B 5.95B 7.52B 13.18B 16.29B

Provision for Risks & Charges 510M 932M 1.4B 1B 896M

Deferred Taxes 750M 325M (62M) 990M 1.49B

Deferred Taxes - Credit 2.86B 2.67B 3.01B 990M 1.49B

Deferred Taxes - Debit 2.11B 2.34B 3.07B - -
Other Liabilities 1.66B 1.96B 3.3B 5.8B 8.54B
Other Liabilities (excl. Deferred
Income) 1.66B 1.72B 2.8B 4.8B 7.14B
Deferred Income - 244M 499M 1B 1.4B

Total Liabilities 45.6B 53.62B 66.74B 103.6B 119.1B

Non-Equity Reserves - - - - -
Preferred Stock (Carrying Value) - - - - -
Redeemable Preferred Stock - - - - -
Non-Redeemable Preferred Stock - - - - -

Common Equity (Total) 10.74B 13.38B 19.29B 27.71B 43.55B

Common Stock Par/Carry Value 5M 5M 5M 5M 5M

Retained Earnings 1.95B 2.55B 4.92B 8.64B 19.63B

ESOP Debt Guarantee - - - - -
Cumulative Translation
Adjustment/Unrealized For.
Exch. Gain (512M) (722M) (1B) - -
Unrealized Gain/Loss Marketable
Securities 1M (1M) 16M - -
Revaluation Reserves - - - - -

Treasury Stock (1.84B) (1.84B) (1.84B) (1.84B) (1.84B)

 Total Shareholders' Equity 10.74B 13.38B 19.29B 27.71B 43.55B
Accumulated Minority Interest - - - - -

Total Equity 10.74B 13.38B 19.29B 27.71B 43.55B

Liabilities & Shareholders'
Equity 56.34B 67.01B 86.02B 131.31B 162.65B

New Delhi: E-commerce giant Amazon India is the most attractive employer brand
in the country followed by Microsoft India and Sony India, says a survey.

According to the Randstad Employer Brand Research (REBR) 2019, released

Monday, Amazon scored high on financial health, utilisation of latest technologies
and a strong reputation.
LATEST ECONOMIC NEWS ON AMAZON.COM
Buy Amazon (AMZN) Stock on the Dip Before Q3 Earnings
Despite Economic Worries?
Shares of Amazon AMZN have fallen over 13% since the company reported its Q2 earnings
results in late July. Despite broader global and U.S. economic slowdown worries, it’s time for
investors to look ahead to the third-quarter earnings season as reports are likely the next catalyst
for stocks, with the S&P 500 roughly flat over the last six months.

Today, we take a look at Amazon to see if investors should think about buying shares of the e-
commerce giant ahead of its late-October Q3 earnings release.

Recent Economic News & Earnings Overview

All three major U.S. indexes were up over 1.4% through late afternoon trading Friday on the
back of a solid jobs report. The U.S. unemployment rate hit 3.5% in September, down from 3.7%
in August. This figure marked a 50-year low and clearly provided some optimism after the
Institute for Supply Management released some rough economic data earlier this week.

ISM’s nonmanufacturing index came in at 52.6 last month, which represented its lowest level
since August 2016. The figure also dropped sharply from August and came out just two days
after the firm released its manufacturing index, which slipped to 47.8. This marked its lowest
point since June 2009—remember any reading below 50 indicates contraction.

Meanwhile, the latest eurozone manufacturing PMI data fell to its lowest level since 2012. Still,
even as geopolitical tensions and global economic slowdown worries mount, the current interest
rate environment will likely have traders and Wall Street looking for returns. And this could put
a lot of pressure on companies during Q3 earnings season to impress. Total quarterly earnings for
the S&P index are expected to decline -4.7% from the same period last year on +4.3% higher
revenues (also read: Big Bank Earnings Preview and Early Q3 2019 Results).
 Electronic business

Online Business or e-business is any kind of business or commercial transaction

that includes sharing information across the internet. Commerce constitutes the
exchange of products and services between businesses, groups and individuals and
can be seen as one of the essential activities of any business. Electronic commerce
focuses on the use of ICT to enable the external activities and relationships of the
business with individuals, groups and other businesses, while e-business refers to
business with help of the internet.[1] The term "e-business" was coined by IBM's
marketing and Internet team in 1996.[2][3]

Business model
When organizations go online, they have to decide which e-business models best
suit their goals.[7] A business model is defined as the organization of
product, service and information flows, and the source of revenues and benefits
for suppliers and customers. The concept of e-business model is the same but used
in the online presence

Revenue model
A key component of the business model is the revenue model or profit model,
which is a framework for generating revenues. It identifies which revenue source
to pursue, what value to offer, how to price the value, and who pays for the value.
It is a key component of a company's business model. It primarily identifies what
product or service will be created in order to generate revenues and the ways in
which the product or service will be sold.
Without a well defined revenue model, that is, a clear plan of how to generate
revenues, new businesses will more likely struggle due to costs which they will not
be able to sustain. By having a dirty revenue model, a business can focus on a
target audience, fund development plans for a product or service, establish
marketing plans, begin a line of credit and raise capital
 E-governance
Electronic governance or e-governance is the application of information and
communication technology (ICT) for delivering government services, exchange of
information, communication transactions, integration of various stand-alone
systems and services between government-to-citizen (G2C), government-to-
business (G2B), government-to-government (G2G), government-to-employees
(G2E) as well as back-office processes and interactions within the entire
government framework.[1] Through e-governance, government services are made
available to citizens in a convenient, efficient, and transparent manner. The three
main target groups that can be distinguished in governance concepts are
government, citizens, and businesses/interest groups. In e-governance, there are no
distinct boundaries.

Although the two terms are often used interchangeably, there is a difference
between e-governance and e-government. E-government refers to the use of the
ICTs in public administration which, when combined with organizational change
and new skills, are intended to improve public services and democratic processes
and to strengthen support to the public. However, e-government has no provision
for governance of ICTs. The governance of ICTs typically requires a substantial
increase in regulation and policy-making capabilities, as well as additional
expertise and opinion-shaping processes among various social stakeholders. The
perspective of e-governance is "the use of the technologies that both help to govern
and have to be governed".[3] The central goal of e-governance is to reach
the beneficiary and to ensure that their service needs are met. Ideally, the
government will automatically recognize the importance of achieving this goal in
order to maximize its efficiency.
Evolving E-Commerce in Asia: Preparing for
the Next Wave of Digitalization
There is a growing need to address the tensions in today's
digital marketplaces in Asia, and to leverage greater
cross-border collaborations to strengthen the region’s
digital ecosystem.

 Regulators can both protect their local populations’ data while facilitating
cross-border data sharing that allows regional e-commerce to grow
 Consumers require more education on how to self-protect their personal data
assets as they do financial and other personal items of value
 Policymakers and regulators can more actively foster digital inclusion,
digital literacy, and next generation technology skills
 Online banking
Online banking, also known as internet banking, is an electronic payment
system that enables customers of a bank or other financial institution to conduct a
range of financial transactions through the financial institution's website. The
online banking system will typically connect to or be part of the core
banking system operated by a bank and is in contrast to branch banking which was
the traditional way customers accessed banking services.
Some banks operate as a "direct bank" (or “virtual bank”), where they rely
completely on internet banking.
Internet banking software provides personal and corporate banking services
offering features such as viewing account balances, obtaining statements, checking
recent transaction and making payments.
Precursors[edit]
The precursor to the modern home banking services were the distance banking
services over electronic media from the early 1980s. The term 'online' became
popular in the late 1980s and referred to the use of a terminal, keyboard and TV (or
monitor) to access the banking system using a phone line. 'Home banking' can also
refer to the use of a numeric keypad to send tones down a phone line with
instructions to the bank
First online banking services by region[edit]
The United Kingdom[edit]
Online banking started in the United Kingdom with the launch of Nottingham
Building Society (NBS)'s Homelink service in September 1982, initially on a
restricted basis, before it was expanded nationally in 1983.[6] Homelink was
delivered through a partnership with the Bank of Scotland and British
Telecom's Prestel service.[7] The system used Prestel viewlink system and a
computer, such as the BBC Micro, or keyboard (Tandata Td1400) connected to the
telephone system and television set. The system allowed users to "transfer money
between accounts, pay bills and arrange loans... compare prices and order goods
from a few major retailers, check local restaurant menus or real estate listings,
arrange vacations... enter bids in Homelink's regular auctions and send electronic
mail to other Homelink users."[7] In order to make bank transfers and bill
payments, a written instruction giving details of the intended recipient had to be
sent to the NBS who set the details up on the Homelink system. Typical recipients
were gas, electricity and telephone companies and accounts with other banks.
Details of payments to be made were input into the NBS system by the account
holder via Prestel. A cheque was then sent by NBS to the payee and an advice
giving details of the payment was sent to the account holder. BACS was later used
to transfer the payment directly.
The United States
In the United States in-home banking was "is still in its infancy" with banks
"cautiously testing consumer interest" in 1984, a year after online banking went
national in the UK.[7] At the time Chemical Bank in New York was "still working
out the bugs from its service, which offers somewhat limited features". [7] The
service from Chemical, called Pronto, was launched in 1983 and was aimed at
individuals and small businesses. It enabled them to maintain electronic checkbook
registers, see account balances, and transfer funds between checking and savings
accounts. The other three major banks — Citibank, Chase Bank and Manufacturers
Hanover — started to offer home banking services soon after. Chemical's Pronto
failed to attract enough customers to break even and was abandoned in 1989. Other
banks had a similar experience.
Since it first appeared in the United States, online banking has been federally
governed by the Electronic Funds Transfer Act of 1978.[8]
France
After a test period with 2,500 users starting in 1984, online banking services were
launched in 1988,[9] using Minitel terminals that were distributed freely to the
population by the government.
By 1990, 6.5 million Minitels were installed in households. Online banking was
one of the most popular services.
Online banking services later migrated to Internet.
Japan
In January 1997, the first online banking service was launched by Sumitomo
Bank.[10] By 2010, most major banks implemented online banking services,
however, the types of services offered varied.[10] According to a poll conducted by
Japanese Bankers Association (JBA) in 2012, 65.2% were the users of personal
internet banking[10].
China
In January 2015, WeBank, the online bank created by Tencent, started 4-month-
long online banking trail operation.[11]
Australia
In December 1995, Advance Bank acquired by St.George Bank, started to provide
customers with online banking with the rollout of the C++ Internet banking
program.[12]
Banks and the World Wide Web
Around 1994, banks saw the rising popularity of the internet as an opportunity to
advertise their services. Initially, they used the internet as another brochure,
without interaction with the customer. Early sites featured pictures of the bank's
officers or buildings, and provided customers with maps of branches and ATM
locations, phone numbers to call for further information and simple listings of
products.
Interactive banking on the Web
In 1995, Wells Fargo was the first U.S. bank to add account services to its website,
with other banks quickly following suit. That same year, Presidential became the
first U.S. bank to open bank accounts over the internet. According to research by
Online Banking Report, at the end of 1999 less than 0.4% of households in the
U.S. were using online banking. At the beginning of 2004, some 33 million U.S.
households (3

1%)
were using some form of online banking. Five years later, 47% of Americans used
online banking, according to a survey by Gartner Group. Meanwhile, in the UK
online banking grew from 63% to 70% of internet users between 2011 and 2012.[13]
 ECOMMERSE BOOSTS ECONOMY
Electronic commerce over the Internet is a new way of conducting business.
Though only three years old, it has the potential to radically alter economic
activities and the social environment. Already, it affects such large sectors as
communications, finance and retail trade (altogether, about 30 per cent of GDP). It
holds promise in areas such as education, health and government (about 20 per
cent of GDP). The largest effects may be associated not with many of the impacts
that command the most attention (e.g. customised products, the elimination of
middlemen) but with less visible, but potentially more pervasive, effects on routine
business activities (e.g. ordering office supplies, paying bills, and estimating
demand), that is, on the way businesses interact.
India’s e-commerce market to grow fourfold to $150 billion by 2022 

A 'Make-for-India' solution approach along with conducive policy environment

can potentially make e-commerce a $150 billion market by 2022 with a globally
leading compounded annualized growth rate of 35%, says a report by Nasscom and
PwC

India’s e-commerce market, dominated by Flipkart Pvt. Ltd and Amazon.com Inc.,
can potentially grow more than fourfold to $150 billion by 2022, fuelled by rising
incomes and a surge in internet users, according to a latest report. During the
period, the size of India’s middle-class is expected to swell to 540 million from
380 million in 2017, showed the report by software industry lobby group Nasscom
and consulting firm PwC India. The e-commerce market was pegged at $36 billion
last year.
“A ‘Make-for-India’ solution approach along with conducive policy environment
can potentially make e-commerce a $150 billion market by 2022 with a globally
leading compounded annualized growth rate of 35%," the report said.
The number of internet users is expected to nearly double to 850 million in five
years from 450 in 2017, the study showed. Of the total, 150 million users are
expected to transact digitally and will emerge mainly from tier-2 and 3 cities with
diverse language choices, payment modes and products.
“The next frontier for the battle in the Indian e-commerce industry is set to be
fought around a seamless shopping experience, building digital trust, voice-based
or conversational commerce and creating an inventory of localised content," said
Sandeep Ladda, partner and global technology, media and telecom sector leader at
PwC India. The report included e-travel, e-tail, financial services such as e-wallets
and insurance, consumer services ( classifieds and e-services) and digital content
segments. Business to commerce is excluded from the study. The report includes
gross merchandise value in e-tail and e-travel; transaction margins in online
financial services; commission and ad revenues for online consumer services; and
subscription and ad revenue for the digital content category, according to the report
titled Propelling India towards global leadership in e-commerce.
Expand

The mushrooming e-tail market is expected to grow at a compounded rate of 30%

each year to exceed $60 billion in market size by 2022. By then, video
subscriptions in the digital content segment will also quadruple, the report said.
During the period, internet penetration is forecast to more than double to 60%, with
the sector expected to create one million jobs with 15 million small and medium
companies generating revenue.
While Flipkart and Amazon are attracting buyers by offering deep discounts, even
new startups are able to lure new Indian consumers, said Debjani Ghosh, president
at Nasscom.
E-tail and e-travel are the dominant sectors in e-commerce marketplace model,
while omni-channel and inventory-led models are also making inroads, she said.
The fastest-growing segment in e-commerce business is online financial services,
due to a spurt in the number of startups promoting digital transactions for money
transfers and loans, among other services. India has 26% penetration in online
financial transactions, but is lagging far behind China which has 62% penetration,
according to the report.
Given the rapid expansion of India’s e-commerce market and increase in foreign
investment, the industry has come under the lens of lawmakers and regulators in
the past five years. Among the myriad of laws that govern the industry, the new
draft-e-commerce policy recommends strict regulations on online retail, including
curbs on discounts, which has caused an uproar in the industry.
Mint reported on 7 August that both Flipkart and Amazon were lobbying fiercely
to get the draft e-commerce policy scrapped.
“A weak version (that restricts sellers to buy in bulk and offer discounts on
platforms) of the draft e-commerce policy is available and everybody is referring
to that. There are some good things about the policy that incentivize more SMEs to
come online….I hope the government will use that and not create a stifling
environment and the potential highlighted in the report can be realised, while
taking into account customers data and other imperatives, which needs to be
addressed but not only by the way which the policy suggests," said Sangeeta
Gupta, senior vice-president at Nasscom. On the global e-commerce readiness
index, India at 10% ranks behind countries such as Brazil (20%), China (30%) and
Russia.
Advantages of ECommerce

There are many obvious and not-so-obvious pros to doing business online.
Understanding exactly what they are can help you leverage them to your
advantage:

1. A Larger Market

Commerce allows you to reach customers all over the country and around the
world. Your customers can make a purchase anywhere and anytime, especially
more people are getting used to shopping on their mobile devices.

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2. Customer Insights Through Tracking And Analytics

Whether you're sending visitors to your ECommerce website through SEO, PPC
ads or a good old postcard, there is a way to track your traffic and customers' entire
user journey to get insights into keywords, user experience, marketing message,
pricing strategy, and more.
3. Fast Response To Consumer Trends And Market Demand

The streamlined logistics, especially for merchants who do "drop ship," allow
businesses to respond to market and ECommerce trends and consumer demands in
a nimble manner. Merchants can also create promotions and deals on the fly to
attract customers and generate more sales.

4. Lower Cost

With the advance in ECommerce platform technologies, it has become very easy
and affordable to set up and maintain an ECommerce store with a low overhead.
Merchants no longer have to spend a large budget on TV ads or billboard, nor
worry about the expense for personnel and real estate.

5. More Opportunities To "Sell"

Merchants can only provide a limited amount of information on a product in a

physical store. On the other hand, ECommerce websites allow the space to include
more information such as demo videos, reviews, and customer testimonials to help
increase conversion.

6. Personalized Messaging

ECommerce platforms give merchants the opportunity to serve up personalized

content and product recommendations to registered customers. These targeted
communications can help increase conversion by showing the most relevant
content to each visitor.

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 Disadvantages of ECommerce

Running an ECommerce business is not all rainbows and unicorns. There are
challenges unique to this business model -- knowing them will help you navigate
the choppy waters and avoid common pitfalls:

1. Lack Of Personal Touch

Some consumers value the personal touch they get from visiting a physical store
and interacting with sales associates. Such personal touch is particularly important
for businesses selling high-end products as customers not only want to buy the
merchandise but also have a great experience during the process.

2. Lack Of Tactile Experience

No matter how well a video is made, consumers still can't touch and feel a product.
Not to mention, it's not an easy feat to deliver a brand experience, which could
often include the sense of touch, smell, taste, and sound, through the two-
dimensionality of a screen.

3. Price And Product Comparison

With online shopping, consumers can compare many products and find the lowest
price. This forces many merchants to compete on price and reduce their profit
margin.

4. Need For Internet Access

This is pretty obvious, but don't forget that your customers do need Internet access
before they can purchase from you! Since many ECommerce platforms have
features and functionalities that require high-speed Internet access for an optimal
customer experience, there's a chance you're excluding visitors who have slow
connections.

5. Credit Card Fraud

Credit card fraud is a real and growing problem for online businesses. It can lead
to chargebacks that result in the loss of revenue, penalties, and bad reputation.

6. IT Security Issues

More and more businesses and organizations have fallen prey to malicious hackers
who have stolen customer information from their database. Not only could this
have legal and financial implications but also lessen the trust customers have in the
company.

7. All the Eggs In One Basket

ECommerce businesses rely heavily (or solely) on their websites. Even just a few
minutes of downtime or technology hiccups can cause a substantial loss of revenue
and customer dissatisfaction.

8. Complexity In Taxation, Regulations, and Compliance

If an online business sells to customers in different territories, they'll have to

adhere to regulations not only in their own states/countries but also in their
customers' place of residence. This could create a lot of complexities in
accounting, compliance, and taxation.

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