Professional Documents
Culture Documents
ASSIGNMENT ON E-COMMERCE
SUBMITTED BY SUBMITTED TO
Group Number: 7
Group Members:
1. Md. Abu Bakkar Siddik (ID:1306017)
2. Mridula Mahzabun (ID:1306021) PRODIP KUMAR SARKAR
3. S M Shahriar Sharif Rahat (ID:1306022) Assistant Professor
4. Md Ruman Hossain (ID:1306022) Department of Computer Science &
5. Md. Manjara Hasin Al Pitom (ID:1306034) Engineering
6. Saroar Mahmud (ID:1209060) Begum Rokeya University, Rangpur.
Session: 2013-2014
4th Year 2nd Semester
Department of Computer Science &
Engineering
Begum Rokeya University, Rangpur.
TABLE OF CONTENTS
E-Commerce Definition 02
Internet History and E-Commerce Development 02
Business-to-Business E-Commerce 04
Business-to-Consumer E-Commerce 04
E-Commerce Stages and Processes 04
E-Commerce Challenges 06
E-Commerce Opportunities 08
Online and Offline Market Research 08
Data Collection 10
Domain Names 12
Advertising Options 12
EMail Marketing 13
Search Engines 14
Website Monitoring 15
Incentives 16
Electronic Payment Issues 16
E-Cash Issues 19
Credit Card Issues 20
Merchant Accounts 21
Online Payment Services 21
Transaction Processing 22
Taxation Issues 24
Mobile Commerce (M-Commerce) 25
Customer Service Issues 26
EMail Support 27
Telephone Support 27
Live Help Services 28
Customer Discussion Forums 29
Value-Added Options 30
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E-Commerce Definition
E-Commerce or Electronic Commerce means buying and selling of goods, products,
or services over the internet. E-commerce is also known as electronic commerce or
internet commerce. These services are provided online over the internet network.
Transaction of money, funds, and data are also considered as E-commerce.
Electronic trade allows consumers purchasing faster, shopping 24/7, reaching more
goods and services without borders and buying with no physical movements. E-
commerce also provides selling faster, reaching to more customers, having less
administrative costs, trading with no physical presence, starting and managing a firm
easily in terms of businesses.
Since then, ecommerce has evolved to make products easier to discover and
purchase through online retailers and marketplaces. Independent freelancers, small
businesses, and large corporations have all benefited from ecommerce, which
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enables them to sell their goods and services at a scale that was not possible with
traditional offline retail.
● 2015: Amazon.com accounts for more than half of all e-commerce growth,
● 2017: Retail e-commerce sales across the world reached $2.304 trillion, which
was a 24.8 percent increase than previous year.
● 2017: Global e-commerce transactions generate $29.267 trillion, including
$25.516 trillion for business-to-business (B2B) transactions and $3.851 trillion
for business-to-consumer (B2C) sales.
Global retail ecommerce sales are projected to reach $27 trillion by 2020.
Business-to-Business E-Commerce
Business to business (or B2B) are, as the name suggests, businesses that sell to
other businesses. These are companies that might manufacture something, are a
wholesaler, or provide services and products within a given industry. ROOM is a
great example of a B2B ecommerce business.
Business-to-Consumer E-Commerce
The bulk of online shops we interact with are business to consumer (B2C). Whether
it’s Amazon, Zappos, or Target, whenever we hit that checkout button, we’ve
completed a transaction on a B2C website. Items or services on a B2C website are
sold straight from businesses to the general public, without any third parties getting
involved.
An online business is still a business. You need to manage your business and when
selling online that means managing your online store, products and content. You
have to connect to other systems and channels to promote your products, organise
shipping and to take payments for your products. It is not that difficult but for a new
starter it can be a challenge.
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For example, buy a domain for the e-commerce platform through WordPress and
install plugins that help you set up your business and sell online. The complexity
level increases when you opt for platforms to open up your own store. However, the
primary benefit here is that you have your own store where you can sell unlike being
just a seller on other e-commerce platforms. You actually tend to build your own
brand here. The most complicated method is to create a new website altogether to
start a business. However, if you plan to do business on a massive scale, it is the
optimum choice to make.
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E-Commerce Challenges
E-commerce has grown at an incredible rate since its birth, and so has the
challenges to make the best use of it. The challenges that an e-commerce company
may face are discussed here:
1. An absence of online identity verification: When a visitor goes to an e-
commerce website and signs up, the portal is unaware of the customer, bar
the information they entered. Whether the customer information is genuine or
not remains questionable. Cash-On-Delivery (COD) purchases using an
invalid or fake phone numbers or addresses can lead to huge revenue losses.
2. Delivering an omnichannel customer experience: In today's world,
customers can reach out through any number of touch-points. They may visit
your website, contact your agent, leave a message on your social media
page, shop from your store or contact you through a live chat or a messaging
platform.
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E-Commerce Opportunities
A recent analysis of the ecommerce space by Shopify identified several trends that
will likely help to shape the future of online sales. Some of the most significant
ecommerce trends shaping its future include:
traditional means, considering the ease of access and cost savings they come with.
The response rates received for online research are much higher than the others as
the respondents are assured that their identity will be protected.
Offline Market Research: While the Internet offers a wide variety of places to
conduct market research, the kind of data you get can be somewhat limited. Online
market research is no substitute for face-to-face contact with your customers.
Additionally, not all segments of the population spend a great deal of time online.
You might need to reach them offline.
Offline market research methods have been around for a long time and they use
strategies that are proven to yield results. Here are a few of the best methods for
gathering data about your market offline.
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● In-Person Surveys: Surveys are still the most effective when done in person.
In-person surveys can be done in any public area that gets a lot of traffic.
Many businesses prefer shopping malls since people are there to look at
products and already have shopping on their minds. In-person surveys have a
high response rate that can be as much as 90%. An advantage of this method
is that you can show people products and they can physically try them out
before giving you a response. In-person surveys require quite a bit of human
resources, but they’re much more effective than other easier methods such as
telephone or mail surveys.
● Focus Groups: Focus groups are small groups of people who meet to
informally discuss your products. A group can be anywhere from five to ten
people. As the moderator, you lead the discussion using scripted questions
and topics related to your business. Aside from discussion, you may also ask
them to do role-playing exercises or other projective techniques. A focus
group meeting usually lasts a couple of hours and there may also be a few
follow-up meetings.The data you get from focus groups is more in-depth and
personal, but it’s also more subjective. You’ll come away with words, images,
feelings, and impressions, not hard statistical data.
● Live Events: Live events mix entertainment and market research. The idea is
to get the participants as engaged in the event as possible. Live events are
often used in a new type of market research called ‘engagement marketing,’
which mixes live elements, face-to-face contact, and online activities to help
consumers feel actively engaged with your brand.
Offline and Online Market Research: Both offline and online market research
methods have their advantages, but the best strategy is to use both. They’ll reveal
different data to you about your target market. While online market research gives
you the chance to gather information quickly and cheaply, offline research gives you
more access to primary sources of information and yields more in-depth results. It’s
best not to rely on only one if you want to minimize your risk and maximize your
chances for success.
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Data Collection
In today’s world, retailers are seeking frequent streams of live data to provide a
relevant snapshot of their consumers’ changing demands. This enables them to
make more timely decisions that translate into better results for the long term.
Kickstarting Your Data Collection Operation – Start Small and Expand as Needed
Online data collection is basically the only data source that can be as dynamic as
you need it to be. It may seem like a big operation to invest in, but in reality, it does
not need to be. One fact is clear – data collection is no longer just a
recommendation;it is now a necessity –one that every online business must closely
monitor. But how can you start?
First, remember that it’s never too early to start collecting data. The key is to focus
on clearly defining your data requirements. Make sure to define the exact data you
need to succeed and follow that data path closely.
Second, start small and manually and then gradually expand. You are basing your
most critical consumer decisions on these streams of data, and it’s vital that you get
it right.
Look for the data that can help you make the fastest and most impactful decisions
first. You want your consumers to feel like you are addressing their every need now,
and data is the only way to reach that goal. Starting manually will help you work out
any early issues and will make your overall data collection operation that much more
precise.
Only once you’ve reached those critical channels, you should expand.
Finally, turn to automated data collection solutions to scale up. Data collection
probably isn’t the core function that you want your teams and employees across your
business to concentrate on. Data should support your core technology or business
across the board. So, turn to cost-effective solutions, like automated data collection
services, which are both timely and accurate.
Predicting the future with pinpoint precision is a task that will probably remain a
massive challenge to all businesses. It will also require businesses to rely on
external data resources. Data can get you the live market view you need even in the
most dynamically changing realities. Tapping into the right kind of competitive
intelligence for your business can go as deep as following your consumers’
interactions with your brand and your competitors’ brands as well as anticipating
their next moves or demands.
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In unpredictable times such as the ones we’re living through, you need a go-to
advisor or resource that will always provide you with the most business-critical
information that no other advisor can access. Look no further than online data, which
provides the exact information you can’t afford to miss.
Domain Names
Domain naming is important to your overall branding. The domain name will be your
business address. Hence, it is imperative that you choose the domain name with
utmost care.
Using keywords in your domain name gives you a strong competitive advantage over
your competitors. Having your keywords in your domain name can increase click
through rates on search engine listings and paid ads as well as make it easier to use
your keywords to get keyword rich descriptive inbound links.
Avoid buying long and confusing domain names. May people separate the words in
their domain names using dashes or hyphen. In the past the domain name itself was
a significant ranking factor but now with advanced search engines, it is not a
significant factor anymore.
Keep two to three words in your domain name − it will be more memorable. Some of the
most memorable websites do a great job of branding by creating their own words. Examples
include eBay, Yahoo!, Expedia, Slashdot, Fark, Wikipedia, Google.
Advertising Options
It can be difficult to know the best way to advertise for your e-commerce website,
with there being such a huge range of options available to you. No one has an
infinite budget, so whatever the size of your business, you need to choose your
methods carefully.
Let’s take a look at a few of the advertising methods that can work for any e-
commerce business:
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5. Email Marketing: You can interact with the customers to answer their queries
using automatic responders and enhance the customer experience with your
website. You can offer the options such as signing-in to subscribe to your
newsletter. You can make the emails catchy and crisp, so that they don’t
make recipients annoyed. Also, you can use selected best words in the
subject line to boost the open rate.
8. Banners: Banners are long strips of cloth with a slogan or design. They are
carried for demonstration, procession, or hung in a public place. There are
internet banners in parallel to tangible banners for advertising.
9. Internet Forums: They are nothing but message boards of online discussion
websites, where people post messages and engage into conversation.
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EMail Marketing
Many ecommerce entrepreneurs are making a big mistake by ignoring the power of
email marketing.
Different Categories of Emails: There are many types of emails that are relevant at
different points in your customer’s life cycle. For example a brand new person on
your site might only be interested in learning about what you are selling and we will
call that person a lead (or a prospect). Eventually a percentage of those prospects
will turn into a customer and some of those customers will end up dormant, this is
the life cycle of your customers. Here are different categories of emails:
● Lead Capture Emails (for Prospects)
● Lead Capture Welcome Series Emails
● Order Confirmation and Shipping Emails
● New Customer Welcome Series Emails
● Abandoned Cart Emails
● Win Back Emails
● Promotional Emails
● Segmentation Emails
If you don’t already have these emails set up and customized for your business, it’s
important you start making plans to create emails for each of these categories.
Search Engines
Search engines want to do their jobs as best as possible by referring users to
websites and content that is most relevant to what the user is looking for. This is
determined by the site content, how fast your site loads, how often your site is linked
to from other credible online resources, and user experience, including design,
navigation and bounce rate.
Search Engine Optimization: It is the process of getting traffic from the free,
organic, editorial, or natural search results on the search engines. Simply put, it’s the
name given to the activity that attempts to improve search engine rankings. In many
respects, it's simply quality control for websites.
SEO may target different kinds of search, including image search, local search,
video search, and news search engines. Employing a sound SEO strategy will help
you position your website properly to be found at the most critical points in the
buying process or when people need your site.
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Search Engine Crawlers: The leading search engines, such as Google, Bing and
Yahoo!, use crawlers to find the pages for their algorithmic search results. Pages
that are linked from other search engine indexed pages do not need to be submitted
because they are found automatically.
Search engine crawlers may look at a number of different factors when crawling a
site. Not every page is indexed by the search engines. Distance of pages from the
root directory of a site may also be a factor in whether or not pages get crawled.
Website Monitoring
Website monitoring is the process of checking web page or web application
availability, performance and functionality. It allows you to be sure that your online
products are always available and your potential customers don’t suffer unexpected
downtimes.
According to ““Need for Speed,” 1&1 Internet. 2011” of 1500 internet customers:
Users who experience even a two-second slowdown from the speed they’ve come to
expect are unsatisfied with performance and simply do less on page. Here are some
numbers from the report:
● 78% of web page users felt negativity because of slower or unavailable web
pages.
● 42% of men and 35% of women have decided not to use a company again as
a result of experiencing a slow webpage.
● 44% of customers say that slow online transactions make them unsure about
the success of the transaction
Internal and External Monitoring: There are many methods to monitor your
website performance. They are divided into two main categories: internal and
external monitoring.
External Monitoring: External monitoring allows you to monitor all your web
resource parameters. First of all, define what criteria you need to monitor:
● Web page availability or uptime rate (Uptime Monitoring)
● Average Web page load time (Full Page Monitoring)
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Internal Monitoring: Internal monitoring can be used in your local network when a
resource which should be monitored is not available from the global network. For
Internal or server-device monitoring all you need to do is download and install
Monitis Smart Agent for Linux or Windows, then add Server/Device monitors from
your Monitis dashboard.
What Can You Monitor?
Everything which is possible to monitor externally plus your local devices
performance like local network, server CPU, memory and drive utilization, bandwidth
consumed by your network interfaces, different system processes, status of services
running on your server or your system events.
Incentives
Incentives for engaging in e-commerce: The key to e-commerce success is to
optimize several key factors, The incentives for engaging in e-commerce are listed
as follows:
● Selection and Value: Attractive product selections, competitive prices,
satisfaction guarantees, and customer support after the sale.
● Performance and Service: Fast, easy navigation, shopping, and purchasing,
and prompt shipping and delivery.
● Look and Feel: Attractive web storefront, website shopping areas, multimedia
product catalog pages, and shopping features.
● Advertising and Incentives: Targeted web-page advertising and e-mail
promotions, discounts and special offers, including advertising at affiliate
sites.
● Personal Attention: Personal web pages, personalized product
recommendations, web advertising, and e-mail notices, and interactive
support for all customers.
● Community Relationships: Virtual communities of customers, suppliers,
company representatives, and others via newsgroups, chat rooms, and links
to related sites.
● Security and Reliability: Security of customer information and website
transactions, trustworthy product information, and reliable order fulfilment.
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1. Achieve and maintain PCI Compliance: The Payment Card Industry’s Data
Security Standard (PCI DSS) is a set of standards and requirements to help
ensure that all online merchants and their customers are protected from fraud
and data breaches. Achieving and maintaining your compliance via the PCI
Compliance Guide is a critical first step to protecting your eCommerce
business. In fact, failing to maintain compliance could result in hefty fines and
could ultimately result in loss of services from reputable eCommerce vendors.
and digital signatures among the purchaser, a merchant, and the purchaser's
bank in a way that ensures privacy and confidentiality.
SET makes use of Netscape's Secure Sockets Layer (SSL), Microsoft's
Secure Transaction Technology (STT), and Terisa System's Secure Hypertext
Transfer Protocol (S-HTTP). SET uses some but not all aspects of a public
key infrastructure (PKI).
E-Cash Issues
Electronic Cash: Credit cards today dominate the online payment systems, but
electronic cash is the way of the future. Electronic cash (also called e-cash or digital
cash) is any value storage and exchange system created by a private (non-
governmental) entity that does not use paper documents or coins and that can serve
as a substitute for government-issued physical currency. Since e-cash is issued by
many private companies, we need common standards for all e-cash issuers so that
they are accepted by each other. Until now those common standards were not met.
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Every issuer has its own standards and e-cash is not universally accepted compared
to government-issued physical currency.
E-cash does not require authorization of payments, unlike credit card transactions.
E-cash does have disadvantages just like real cash, money laundering, it is not
traceable. Also it can be forged.
Off-line: validity of the transaction is checked after the transaction has occurred. The
merchant or bank can conduct a series of calculations to reveal the customer’s
identity when a security breach has occurred.
In general off-line schemes are more efficient than on-line ones. The two
fundamental issues with any off-line electronic cash scheme have been the detection
of double spending and provision of anonymity. Cut-and-Choose technology was
one of the first techniques that were introduced to address the issue of double
spending in an off-line scheme. However, it is not very efficient. Subsequently, other
techniques had been proposed to achieve both problems without the Cut-and-
Choose method.
Disadvantages of using credit cards: Along with the advantages listed above, the
use of credit cards can also have several disadvantages:
● Established credit-worthiness needed before getting a credit card
● Encouraging impulsive and unnecessary “wanted” purchases
● High-interest rates if not paid in full by the due date
● Annual fees for some credit cards – can become expensive over the
years
● Fee charged for late payments
● Negative effect on credit history and credit score in case of improper
usage.
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Merchant Accounts
A merchant account is a type of bank account that allows sellers, especially in the
ecommerce space, to electronically accept credit and debit card transactions from
customers, with the aid of a payment gateway. You should note that a merchant
account isn’t the typical bank account, as it’s the basic assumption that poses a lack
of certainty.
The electronic payment system has grown increasingly over the last decades due to
the growing spread of internet-based banking and shopping. As the world advances
more with technology development, we can see the rise of electronic payment
systems and payment processing devices.
Electronic Payment Methods: One of the most popular payment forms online are
credit and debit cards. Besides them, there are also alternative payment methods,
such as bank transfers, electronic wallets, smart cards or bitcoin wallet (bitcoin is the
most popular cryptocurrency).
E-payment methods could be classified into two areas, credit payment system and
cash payment system.
Transaction Processing
Online transaction processing (OLTP) is information systems that facilitate and
manage transaction-oriented applications, typically for data entry and retrieval
transaction processing. So online transactions are done with the help of the internet.
It can’t take place without a proper internet connection.
Online transactions occur when a process of buying and selling takes place through
the internet. When a consumer purchases a product or a service online, he/she pays
for it through an online transaction.
Steps Involved in Online Transaction: The following are the steps involved in
Online Transaction:
1. Registration
● The consumer has to register online on the particular website to buy a
particular good or service.
● The customer’s email id, name, address, and other details are saved
and are safe with the website.
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● For security reasons, the buyer’s ‘Account’ and his ‘Shopping Cart’ is
password protected.
2. Placing an Order
● When a customer likes a product or a service, he/she puts the product
in the ‘shopping cart’.
● The shopping cart gives a record of all the items selected by the buyer
to be purchased, the
number of units or quantity desired to be bought per item selected and
the price for each
item.
● The buyer then proceeds to the payment option after selecting all the
products.
3. Payment
The buyer then has to select the payment option, there are various payment
options. These payment pages are secured with very high-level encryptions
so that the personal financial information that you enter (bank/card details)
stay completely secure.
Taxation Issues
Taxation of e-commerce is an important issue for countries, businesses and
consumers who want to be a party of e-commerce. The issues such as tax loss and
tax evasion are crucial in terms of countries. Difficulties like uncertainty and double
taxation make parties of e-commerce reluctant and affect development of e-
commerce negatively.
The taxation policies of countries based on territory and jurisdiction has begun to fail
after improving e-commerce. Concepts like permanent establishment, sale points,
product and income classification that are used in the taxation process have
remained inadequate. Whereas determining location of seller and consumer at
transaction on the internet is difficult, tax revenue loss has existed. Electronic
commerce allows businesses to get their revenue without any physical presence.
Because of these implications of e-commerce, tax administrations reach hardly any
information about taxes that should be collected and thereby tax loss exists.
Another problem for taxation of e-commerce arises from being made by a permanent
establishment that is not required. To apply tax and to identify one who has taxation
power, it is necessary to point out physical presence and permanent establishment.
municipality in the USA have their own tax policies and tax rates. It becomes a
problem for taxation.
You can also set-up your own billing and payment gateway, but make sure
that you make it really easy for users. Mobile users do not use keyboards or a
mouse so make sure that the design of your m-commerce site is intuitive, with
easy navigation tools and the right display sizes. Basically, make your m-
commerce site optimized for Smartphone users.
● Benefits of M-Commerce: The major benefit of engaging in m-commerce is
the sheer size of potential sales. The probability of your potential customers
owning a Smartphone is very high, so you can safely assume that you will get
much more positive response from mobile devices than your website. M-
commerce is recommended for every business irrespective of its type, scale,
and size.
That requires you to consistently obtain customer feedback and analyze it for
common user pain points. Once you understand these variables, you can install
proactive and self-service features that guide visitors through the customer journey.
Customer service metrics that are followed by companies depend on the tool used
for customer service.
EMail Support
Email Support is an asynchronous communication channel (where the customer and
the teammate do not both need to be present at the same time to engage in a
conversation) to resolve ad hoc customer questions, challenges and concerns
relating to a product or service.
Email Support is one of the most frequently utilized and is considered a mission-
critical service offering. Many view it as more convenient than phone support,
although not as timely. One of the major benefits of Email Support is the ongoing
thread of communication, so the same teammate is not required to answer multiple
email communications. This provides optimal agency efficiency.
Telephone Support
Some customers don't have the patience to go through online support options.
Customers speak directly to customer support representatives over the phone. For
inbound calls, an IVR (Integrated Voice Response) can be programmed to route
captured calls in a variety of ways with the potential goal of quickest resolution of a
customer’s request/problem.
Phone Support is often used for order taking, pre-sales queries, upselling and cross-
selling, troubleshooting etc.
Outbound calls are calls made to customers from the call center to give or take
information.
assistance, their questions can be answered online in real time. Promotions and
discounts can be offered to them while they are browsing. Such real-time interaction
provides a high quality shopping experience. Customers will remember their positive
experience and keep coming back. Having live help support on your website projects
the image that your company is service oriented. The Live Support button itself on
your website will foster confidence in uncertain, first-time customers. The button
shows that a live person will be available to help if they have customer service
issues. Behind-the-scenes tools make Provide Support live help service useful for
marketing professionals. The operator console gives information about site visitors,
such as the referring page. This information can be used to gauge the effectiveness
of cost-per-click and search engine advertising campaigns. No more money will be
wasted on ineffective keywords and poorly placed advertisements. Provide Support
Live chat is a serious sales and customer support tool that will help you turn your
website visitors into clients.
2. Prevent Shopping Cart Abandonment: Many sales are lost at the point of
ordering. Potential customers become hesitant about providing personal
information during the purchasing process, leading them to abandon their
shopping cart. Using Live Assistance, you can assure completion of the sale
by walking them through the process.
Value-Added Options
Many customers require some form of added-value or specialised support service for
their product in the warehouse, and Spatial Global's experienced personnel are
highly proficient in this field.
● Customer collections
● Intake of containerised or break bulk goods
● Sorting at intake or despatch
● Physical alterations/deferred completion
● Product rework and reprocessing
● Kitting and ratio-packing
● Picking and packing
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