E-COMMERCE SHORT NOTES

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Part 1: Introduction to E-Commerce & Technology in E-Commerce

Introduction to ecommerce

Meaning and Concept of ecommerce

In a nutshell, e-commerce is just the process of buying and selling produce by electronic
means such as by mobile applications and the Internet. Ecommerce refers to both online retail
as well as electronic transactions. Ecommerce has hugely increased in popularity over the last
decades, and in ways, it's replacing traditional brick and mortar stores.
Ecommerce enables you to buy and sell products on a global scale, twenty-four hours a day
without incurring the same overheads as you would with running a brick and mortar store.

While most people think of ecommerce as business to consumer (B2C), there are many other
types of ecommerce. These include online auction sites, internet banking, online ticketing
and reservations, and business to business (B2B) transactions. Recently, the growth of
ecommerce has expanded to sales using mobile devices, which is commonly known as
‘m-commerce' and is simply a subset of ecommerce.
Why has ecommerce seen explosive growth over the past decade? As the internet becomes
ingrained in our daily lives, ecommerce continues to grow, and businesses are taking
advantage of this.
In the early 2000’s many people were sceptical about handing over their card details to an
online retailer. Whereas, ecommerce transactions are now second nature. SSL certificates,
encryption and reliable external payment systems such as PayPal, Worldpay, and Skrill have
helped improve people’s confidence in e commerce.

Advantages of E-Commerce
Global Reach – With a physical brick and mortar store you're limited geographically to
nearby markets, i.e., if you have a store in New York and want to also sell in New Jersey,
you’ll need to open another physical location.
Ecommerce doesn’t have this limitation. Instead, you can sell to anyone, anywhere in the
world via your digital ecommerce business.
Always Open – Physical businesses usually have limited hours, but an online ecommerce
shop remains “open” 24 hours a day, seven days a week, 365 days a year. This is hugely
convenient for the customer and an excellent opportunity for merchants.
Cost Savings – Ecommerce businesses have significantly lower operating costs compared to
physical shops. There's no rent, no staff to hire and pay, and very little in the way of fixed
operating costs. This makes ecommerce stores extremely competitive on price, which usually
increases the market share dramatically.
Automated Inventory Management – It’s far easier to automate inventory management
through the use of electronic online tools and third-party vendors. This has saved ecommerce
businesses billions of dollars in inventory and operating costs.
Inventory management has also become increasingly sophisticated. You can now manage
your stock across multiple channels with great ease. So, you can sell and monitor your stock
in your own store as well as marketplaces like eBay, Amazon, Etsy or a physical shop.
Laser Targeted Marketing – Online merchants can collect an amazing amount of consumer
data to ensure they target the right people for their products.
This lowers the cost of customer acquisition and allows ecommerce online businesses to
remain extremely agile. Imagine being able to target just males between 18-24 years old,
living in urban areas. That’s laser focused marketing for you- there's no way you'd get that
with just a physical store.
Niche Market Dominance – Because of the lower operating costs, the ability to target your
ideal customer, as well as reaching a global audience that an ecommerce website brings, this
ensures your company’s profitability.
Location Independence – An ecommerce business owner isn't tied to any one location when
running their business. As long as you have a laptop and an internet connection you can run
your ecommerce business.

Disadvantages of E-Commerce
Trust: Trust is a big word in ecommerce and comes in many different forms.
A trusted payment solution such as PayPal can help instil confidence in people visiting your
website. Using a review system such as Trustpilot or registering your site as a Google trust
store are just a few ways you can conquer these potential barriers.
Technical issues: If you aren’t technologically minded, and let’s be honest- you don’t have to
be to start an online store, you may run into technical issues.
If you can’t fix these issues yourself, you may need to outsource. Fortunately, ecommerce
solutions such as Shopify, WooCommerce, and BigCommerce have dedicated services to help
you out if these issues arise.
Competitors: As the initial set, up costs associated with starting an ecommerce business are
so small, this makes it a saturated market. Therefore it’s vitally important you do your
research before you launch, and find your niche.
No physical presence: Although this is improving with time, the fact that visitors can't see or
feel any of your products can be a downfall.
Here are a few ways to get around this issue:
Initial spend: The biggest challenge with ecommerce is getting started and achieving that
all-important first sale.

Value chain in ecommerce,

A value chain for a product is the chain of actions that are performed by the business to add
value in creating and delivering the product.
1. Role of Intermediaries: Intermediaries may be more important now than ever before
because most of the rapidly growing Internet businesses are essentially middlemen. For
example, companies such as Amazon, Cisco, can all be thought of as middlemen-resellers of
products provided by some other source. Intermediaries will continue to be important because
they provide consumers with selection, specialized distribution, and expertise. Some internal
disintermediation may take place, in which employees will be removed if they add little value
or even negative value to the distribution channel. For example, Dell, Cisco, and some online
brokerages have eliminated staff in an attempt to realize cost savings in certain areas. Exhibit
1 illustrates an example of the role of intermediaries in the process of purchasing a book
online from Amazon.com.

2. Value Pricing: In addition to employing e-commerce technology to enhance distribution

channels, this technology is also used to redefine pricing strategies. Most companies pursuing
a premium pricing strategy, for example, can use the Internet to better understand their
customers. The Internet allows companies to price with far more precision than they can
off-line and to create enormous value in the process. Value pricing involves several
approaches. One approach to pricing involves businesses offering heavily discounted prices
in an attempt to attract customers to their web sites. Another approach involves businesses
transferring their “off-line” prices to the Internet. Neither of these approaches is very efficient
because they do not maximize value. An attractive alternative approach is to utilize the
Internet to track customers buying habits and adjust prices accordingly, thereby uncovering
new market segments. The Internet allows companies to test prices continually in real time
and measure customer responses

3. Brand Differentiation/Loyalty: Pricing is just one of several ways for a company to

differentiate itself from the competition. Another way in which a company can differentiate
itself is by promoting brand loyalty. Brand loyalty encourages repeat customers and helps to
create long-term profitability. A major benefit of customer loyalty is that loyal customers
often refer new customers to a supplier.

4. E-Procurement: E-commerce technology has provided organizations with the capabilities

to improve the effectiveness and efficiency of the logistics and purchasing functions. Firms
such as Wal-Mart and Amazon.com are currently outsourcing delivery, relying on logistics
companies to deliver the product to the customer. E-procurement is the term currently used to
denote the process of using the Internet to integrate supply chain partners through
collaboration on key initiatives and to improve the purchasing process within organizations.
A major benefit of e-procurement is the cost savings aspect. In fact, organizational costs of
placing orders can be reduced by as much as 75% through utilization of the Internet. It also
offers organizations the ability to use the Internet to search for the best pricing available. The
overall advantage of practising e-procurement is the fact the more automation allows partners
quicker access to information. E-procurement also results in better communication among
supply chain partners and consequently better supplier-customer relationships. Organizations
are able to maintain tighter control over the purchasing process. Only those suppliers that
organizations deem to be “preferred suppliers” will be able to transact business with the
organization. Currently, e-procurement is being utilized primarily for the purchase of office
supplies and items which are used for repair and maintenance of the organization’s facilities
(Smock, 2001).

5. E-Fulfilment: Today’s marketplace offers new challenges to organizations. A key

initiative organization have undertaken to better compete is that of “E-fulfilment”. It can alter
the way customers purchase as well as the manner in which manufacturers deliver the product
to consumers. Technology has also allowed distributors and suppliers to focus on providing
value-added services to complement their product offering. E-Fulfilment contrasts with
traditional fulfilment. Suppliers are now capable of accepting order online via the Internet
and having the information sent directly into their order processing systems, something not
possible via traditional fulfilment. Orders placed via e-fulfilment tend to be smaller than
those placed via traditional fulfilment channels. The expected and actual lead times are
shorter than those witnessed via traditional fulfilment.

6. Value Nets: Firms are continually seeking out new ways to attract and maintain customers.
A development that has proven to be effective in attracting and servicing customers is that of
the Value Net. A value net is a network consisting of partnerships, which assists in the
transfer of information among supply chain partners on a regular basis. The main benefit of a
value net is the competitive advantage it offers to all participating organizations. The primary
concept behind a value net is its ability to allow firms to address and solve customer
problems, rather than just selling a product. A popular trend in the marketplace to address
niche markets is that of the online-service company. This form of business interacts directly
with the customers primarily via the Internet. The advantage of this form of business is that it
provides enhanced service to the customer in the form of direct door-to-door delivery for
customers. This is a distinct competitive advantage that firms are looking to exploit

Michael E. Porter’s Value Chain Analysis

Value Chain analysis is a process of dividing various activities of the business in primary and
support activities and analysing them to determine their contribution in terms of the value
creation to the final product.
(Value Chain represents the internal activities that a firm engages in when transforming
inputs into outputs)
Primary Activities: The goal of these activities is to create value that exceeds the cost of that
activity, therefore generating a higher profit.
1. Inbound Logistics: Includes a range of activities like receiving, storing, distribution
etc. which makes the goods and services available for operational processes.
2. Operations: Activity of transforming input raw material to the final product ready for
sale. E.g. Machining, assembling, packaging.
3. Outbound Logistics: Activities that help in collecting, storing and delivering the final
product to the customer is outbound logistics.
4. Marketing & Sales: Activities like advertising, promotion, sales, marketing research,
public relations etc. performed to make the customer aware of the product and create
a demand for it.
5. Service: Service provided to the customer so as to improve or maintain the value of
the product. (financing, after-sales service etc.)
Support Activities: Activities that support the primary activities as stated above, thus playing
a role in each activity.
1. Procurement: Supplying all the necessary inputs to perform primary activities like
material, machinery etc.
2. Technology Development: This requires heavy investment, and can take years of
R&D, however its benefits can be enjoyed for several years.
3. Human Resource Management: Managing human resource, as required in all the
primary activities.
 4. Infrastructure: Management system which provides its services to the entire
organization, by the means of planning, finance, information management, quality
control, legal, government affairs.
Competitive Advantage
The conditions that allow a company to produce a product of equal value at a lower price or
in a more desirable manner. Competitive Advantage (CA) allow the company to generate
more sales or earn higher margins compared to its rivals. CA can be attributed to a variety of
factors, including cost structure, branding, quality of product offerings, distribution network,
intellectual property, customer service and so on.
The more sustainable a CA is, the more difficult it is for competitors to neutralize it. The two
main types of CA are:
i.Comparative Advantage: A firm’s ability to produce a good or service more efficiently than
its competitors, which leads to greater profit margins, creates a Comparative Advantage.
(Economies of Scale, efficient internal systems, geographic locations are a few reasons) A
comparative advantage does not imply a better product or service, it only shows the firm can
offer a product at a lower price. (Chinese firm can manufacture at lower labour costs, than
one in US)
Ex. Amazon has built and sustained its comparative advantage by having a level of scale and
efficiency that is difficult for retail competitors to replicate, allowing it to rise primarily
through price competition.
ii. Differential Advantage (DA):  DA is when a firm’s product differs from its
competitors and is seen as superior. (Advanced technology, Patents, Superior
personnel, Strong brand identity) drive DA. These factors support wide margins and
large market shares.
Ex. Apple is famous for creating innovative products, and supporting their market leadership
with savvy marketing campaigns to build an elite brand. Major drug companies can also
market branded drugs at high prices, because they are protected by patents.
Competitive Strategy (Michael E-Porter)
Cost Leadership Strategy: It calls for being the low-cost producer in an industry for a given
level of quality. The firm sells its products either at an average industry price to earn an
abnormal profit, or sells it below the industry average price to gain a higher market share. In
the event of a price war, the firm can maintain some profitability, while the competition
suffers losses. A firm succeeding in cost leadership have following internal strengths:
Differentiation Strategy: Involves developing products that offer unique attributes that are
valued by customers and that customers perceive to be better or different from competitor
products. The value added due to uniqueness of product may allow the firm to charge a
premium price for it. The firm can then hope that the higher price can cover the extra costs
incurred in offering the unique product. (In situation where suppliers increase price, the firm
can increase the costs to its customers who cannot find substitute products easily)
Focus Strategy: This strategy focuses on creating a narrow segment, and within that segment
attempts to achieve cost advantage or differentiation. The logic is that the needs of the group
can be better serviced by focusing entirely on it. A firm using focus strategy enjoys a high
degree of customer loyalty, which discourages other firms from competing directly.

Different Types of E-Commerce

● B2B: A B2B model focuses on providing products from one business to another.
While many ecommerce businesses in this niche are service providers, you’ll find
software companies, office furniture and supply companies, document hosting
companies, and numerous other ecommerce business models under this heading. B2B
ecommerce examples you may be familiar with include the ExxonMobil Corporation
and the Chevron Corporation
● B2C: The B2C sector is what most people think of when they imagine an ecommerce
business. This is the deepest ecommerce market, and many of the names you’ll see
here are known quantities offline, too. B2C sales are the traditional retail model,
where a business sells to individuals, but business is conducted online as opposed to
in a physical store.
● C2C: Created by the rise of the ecommerce sector and growing consumer confidence
in online sales, these sites allow customers to trade, buy, and sell items in exchange
for a small commission paid to the site. Opening a C2C site takes careful planning.
Despite the obvious success of platforms like eBay and Craigslist, numerous other auction
and classified sites (the main arenas for C2C) have opened and quickly closed due to
unsustainable models.

● C2B: C2B is another model most people don’t immediately think of, but that is
growing in prevalence. This type of online commerce business is when the consumer
sells goods or services to businesses, and is roughly equivalent to a sole proprietorship
serving a larger business.
● G2C: Government to Consumer (G2C) e-commerce- the electronic commerce
activities performed between a government and its citizens or consumers including
paying taxes, registering vehicles, and providing information and services.

Technology in E-Commerce
Overview of the Internet
Internet is defined as an Information super Highway, to access information over the web.
However, it can be defined in many ways as follows:
● Internet is a world-wide global system of interconnected computer networks.
● Internet uses the standard Internet Protocol (TCP/IP).
● Every computer in internet is identified by a unique IP address.
● IP Address is a unique set of numbers (such as 110.22.33.114) which identifies a
computer location.
● A special computer DNS (Domain Name Server) is used to give name to the IP
Address so that user can locate a computer by a name.
● For example, a DNS server will resolve a name http://www.tutorialspoint.com to a
particular IP address to uniquely identify the computer on which this website is
hosted.
● Internet is accessible to every user all over the world.
Basic Network Architecture
First and foremost, what is network architecture? It's basically the physical and logical design
which refers to the software, hardware, protocols and the media of transmission of data.
Simply put, it refers to how computers are organized and how tasks are allocated among these
computers. The two types of widely used network architectures
are peer-to-peer aka P2Pand client/server aka tiered.

Peer-to-Peer Architecture: In a peer-to-peer network, tasks are allocated to every device on

the network. Furthermore, there is no real hierarchy in this network, all computers are
considered equal and all have the same abilities to use the resources available on this
network. Instead of having a central server which would act as the shared drive, each
computer that’s connected to this network would act as the server for the files stored on it.

Client/Server Architecture: In a client/server network, a centralized, really powerful

computer(server) acts as a hub in which other computers or workstations(clients) can connect
to. This server is the heart of the system, which manages and provides resources to any client
that requests them.
Layered model (The OSI 7-layer model)
The layers refer to the Open Systems Interconnect (OSI) 7-layer model, which is a conceptual
framework for how network connected applications may communicate with each other. The
model considers the hierarchy of the layers from the physical (lowest) to the application
(highest).
The 7 OSI layers are;
7. Application Layer- The window for the users and application processes to access the
network
6. Presentation Layer- Formats the data; it’s the translator between different systems to allow
for the exchange of information
5. Session Layer- The layer where the communication connection between systems is
established, used and terminated
4. Transport Layer- Scans and makes sure the data is valid and delivered error free, also
manages the disassembly and assembly of the data into segments
3. Network Layer- This layer routes the data – it adds the destination, source (IP Address to
the data segments)
2. Data Link Layer- The packets are turned into data frames for transmission across the
network
1. Physical Layer- Transforms the data frames into bits and sends over the network via
physical hardware or media (like Ethernet).

Internet Architecture
The Internet architecture is based on a simple idea: all networks want to be part of carrying
a single packet type, a specific format the IP protocol. In addition, this IP packet must carry
an address defined with sufficient generality in order to identify each computer and terminals
scattered throughout the world. This architecture is illustrated in Figure.
The user who wishes to make on this internetwork must store its data in IP packets that are
delivered to the first network to cross. This first network encapsulates the IP packet in its own
packet structure, the package A, which circulates in this form until an exit door, where it is
decapsulated so as to retrieve the IP packet. The IP address is examined to locate, thanks to a
routing algorithm, the next network to cross, and so on until arriving at the destination
terminal.
To complete the IP, the US Défense added the TCP protocol; specify the nature of the
interface with the user. This protocol further determines how to transform a stream of bytes in
an IP packet, while ensuring quality of transport this IP packet. Both protocols, assembled
under the TCP / IP abbreviation, are in the form of a layered architecture. They correspond to
the packet level and message-level reference model.
The Internet model is completed with a third layer, called the application level, which
includes different protocols on which to build Internet services. Email (SMTP), the file
transfer (FTP), the transfer of hypermedia pages, transfer of distributed databases (World
Wide Web), etc., are some of these services. Figure shows the three layers of the Internet
architecture.

Network Hardware and Software Considerations

Network hardware has to be sufficient to meet the performance and reliability goals while
falling within the available budget. Server hardware has the above requirements, while
additionally it has to be capable of running the desired software.

Software has to run on the available hardware. It should be something currently supported
and maintained, with an expectation that support and maintenance continue into the future.
The total cost of the software has to be considered, including how difficult it is to use and
maintain…. both of which equate to labour cost.

Intranets and Extranets

An intranet is a network where employees can create content, communicate, collaborate, get
stuff done, and develop the company culture. Much like an extranet, an intranet is a private,
secured network designed to facilitate collaboration and make it easier to communicate and
share documents in real time. The major difference between the two, however, is that an
intranet is typically used internally. While an extranet allows businesses to communicate with
clients and vendors, an intranet allows employees and colleagues to work with each other in a
virtual space — no outside parties are involved.

An extranet is like an intranet, but also provides controlled access to authorized customers,
vendors, partners, or others outside the company. An extranet is basically a private network
designed specifically to allow these individuals (clients, vendors, suppliers, partners, etc.) to
communicate with you and your employees in a closed digital workspace. Extranets serve an
extremely important role, as they allow for private communication, collaboration, knowledge
sharing, document sharing, and data transfer between organizations.

Making of World Wide Web

Web System Architecture

Typically, when you are browsing the Internet, you will be using Web Browser software such
as Internet Explorer or Mozilla Firefox. The computer which is running a browser is called
a client, whilst the machine which is providing Web pages is called a server.

When you dial up to an Internet Service Provider (ISP) e.g. AOL, your computer is forming a
network connection to a Web server. In this situation, your computer is in effect a client,
which is linked to an ISP Web server. The web server, as the name suggests, serves your
browser with Web pages (e.g. HTML, ASPX, JSP pages etc).
 
This simple scenario, where the Web server is connected to one or more clients is known as a
2-tier architecture model.
 
Figure B below demonstrates how Web pages are accessed via a browser, using a 2-tier
architecture.

3-Tier architectures 
Generally computing applications consist of three different and distinct types of
functionalities. 
● Presentation Services: These manifests themselves in the form of information
display and user data input facilities.  Generally, the front-end for user
interaction.  For example, logging in requires interaction in the form of collecting
username and password information using a HTML-form.
● Functional logic:  Every application includes some data processing and this may also
involve database interactivity.  For example, user authentication requires the logic unit
to read username-password combinations from a database and compare until a good
comparison (hopefully) is arrived at.
● Data Management:  Data, its storage, insertion and retrieval, its management and
alteration are central to computing applications.  For example, a database
management system (DBMS) is required for the management of usernames and
associated passwords, their owners, etc.
ISP
An Internet service provider (ISP) is a company that provides customers with Internet access.
Data may be transmitted using several technologies, including dial-up, DSL, cable modem,
wireless or dedicated high-speed interconnects.
Typically, ISPs also provide their customers with the ability to communicate with one another
by providing Internet email accounts, usually with numerous email addresses at the
customer’s discretion. Other services, such as telephone and television services, may be
provided as well. The services and service combinations may be unique to each ISP.
An Internet service provider is also known as an Internet access provider (IAP).

URL
URL is the abbreviation of Uniform Resource Locator and is defined as the
global address of documents and other resources on the World Wide Web. To visit this
website, for example, you'll go to the URL www.webopedia.com.
We all use URLs to visit webpages and other resources on the web. The URL is an address
that sends users to a specific resource online, such as a webpage, video or other document or
resource. When you search Google, for example, the search results will display the URL of
the resources that match your search query. The title in search results is simply a hyperlink to
the URL of the resource.
A URL is one type of Uniform Resource Identifier (URI); the generic term for all types of
names and addresses that refer to objects on the World Wide Web.

HTTP
HTTP means Hypertext Transfer Protocol. HTTP is the underlying protocol used by
the World Wide Web and this protocol defines how messages are formatted and transmitted,
and what actions Web servers and browsers should take in response to various commands.
For example, when you enter a URL in your browser, this actually sends an HTTP command
to the Web server directing it to fetch and transmit the requested Web page. The other main
standard that controls how the World Wide Web works is HTML, which covers how Web
pages are formatted and displayed.

Cookies
An HTTP cookie (also called web cookie, Internet cookie, browser cookie, or
simply cookie) is a small piece of data sent from a website and stored on the user's computer
by the user's browser while the user is browsing. Cookies were designed to be a reliable
mechanism for websites to remember stateful information. They can also be used to
remember arbitrary pieces of information that the user previously entered into form fields
such as names, addresses, passwords, and credit card numbers.

Part 2: Building & Hosting Websites

Building and Hosting Website

Step 1: Hosting Your Site
Web hosting is like paying rent for your website's virtual storefront, including the pages,
images, documents, and other resources needed to display that site. Web hosting uses a web
server, which is where you put those website resources so others can access them through the
Web. You can build a fully functional website on your personal computer, but if you want
other people to be able to see it, you will need to use a web host.
There are several types of web hosting options you can choose from, and while many new
web designers will gravitate to free web hosting, there can be significant drawbacks to those
no-cost services, including:

● You may get less server space where your pages will be stored. Depending on the size
of your site and the resources it needs (video, audio, images, etc), that storage space
may not be sufficient.
● You may be required to run ads on your site.
● There may be bandwidth limits that could be too restrictive if you get a lot of traffic.
In some cases, if you exceed your monthly limit, they may even turn your site off.
● There are sometimes limitations on the kinds of content you can put on a free hosting
provider. For example, some don't allow Ecommerce websites.
● Some free hosting providers tack on maintenance and renewal fees to their “free”
accounts.

Be sure to read all the fine print before you put your website on any web host. Free hosting
providers may end up being good enough for testing web pages or for very basic, personal
websites, but for more professional sites, you should expect to pay at least a nominal fee for
that service. 
Step 2: Registering a Domain Name
A domain name is a friendly URL people can type into their browser to get to your website.
Some examples of domain names include:

● lifewire.com
● whitehouse.gov
● pumpkin-king.com

A domain name provides valuable branding for your site and makes it easier for people to
remember how to get to it.
Domain names typically cost between $8 and $35 a year and they can be registered at a
number of sites online. In many cases, you can get domain name registration and web hosting
services from the same provider, making it easier on you since those services are now
contained under one account.
Step 3: Planning Your Website
When planning your website, you will need to make a number of important decisions:

● The type of site you need: Is this a news or informational site, a site for a company
or service, a non-profit or cause-driven site, an Ecommerce shop, etc. Each of these
kinds of sites has a slightly different focus that will influence its design.
● Navigation design: How users will move around your site affects its information
architecture as well as the overall usability of that site. Plan out the pages a site, create
a sitemap, and develop a navigational structure from there.
 ● Content: As the saying goes, "content is king" online. The quality of your site's
content will play an important role in its success. Content is everything that your
pages will contain, such as text, images, video and more. Before you start designing
or building pages, you should have a clear strategy for the content that those pages
will contain.

Step 4: Designing and Building Your Website

This is easily the most complex part of the web page creation process and there are a number
of topics to be aware of at this stage, including: 

● Design Basics: The elements of good and appropriate design and how to use them on
websites.
● Learning HTML: Hypertext Mark-up Language or HTML is the building blocks of a
web page. While there are many platforms out there that will code a page's HTML for
you, you’ll do better and have far more flexibility and control if you learn the basics
of HTML.
● Learning CSS: Cascading Style Sheets dictate how web pages look. Learning CSS
will help you change the visual appearance of a site to match the design needs of a
project.
● Web Page Editors: Different web page editors will allow you to accomplish different
things. HTML and CSS can be written in simple text editors, like Notepad, or they
can use software like Adobe Dreamweaver to get some assistance with the pages you
are creating. You may also decide to use a Content Management System, like
WordPress, to build and power your website.

Step 5: Publishing Your Website

Publishing your website is a matter of getting the pages you created in step 4 up to the
hosting provider you set up in step 1.
You can do this with either the proprietary tools that come with your hosting service or with a
standard FTP (File Transfer Protocol) software. Knowing which you can use depends upon
your hosting provider, but most providers should have support for standard FTP. Contact that
hosting provider if you are not sure what they do, and do not support
Step 6: Promoting Your Website
One of the most desirable ways to promote your website is through search engine
optimization or SEO. This is because it allows your site to be found by people who are
looking for the information, services, or products that your site provides.
You will want to build your web content so that it is appealing to search engines.
Additionally, you will want to ensure your site as a whole conforms to search engine best
practices. 
Other ways to promote your site include word of mouth, using email marketing, social media,
paid search marketing (SEM), and all the traditional forms of advertising. 
Step 7: Maintaining Your Website
Maintenance can be the most tedious part of website design, but in order to keep your site
going well and looking good, it needs regular attention and maintenance.
It's important to test your site as you’re building it, and then again after it’s been live for a
while. New devices come on the market all the time and browsers are always updating with
new standards and features, so regular testing will ensure your site continues to perform as
expected for those different devices and browsers.
In addition to regular testing, you should produce new content on a regular basis. Do not
simply aim for "more" content, but strive to create content that is unique, timely, and relevant
to the audience you aim to attract.
(The above seems relevant from exam pov)

E-cycle of internet marketing

Mobile agents: In computer science, a mobile agent is a composition of computer

software and data which is able to migrate (move) from one computer to another
autonomously and continue its execution on the destination computer.

Tracking customers: Customer tracking is the process of gathering and organizing

information related to customer activities. An example of customer tracking is the gathering
of click through information for customers as they navigate through a web page or a series of
web sites.

E-CRM
Customer Relationship Management (CRM) is a way to identify, acquire, and retain
customers – a business’ greatest asset. By providing the means to manage and coordinate
customer interactions, CRM helps companies maximise the value of every customer
interaction and in turn improve corporate performance.

E-CRM, or Electronic Customer Relationship Management, is an integrated online sales,

marketing and service strategy that is used to identify, attract and retain an organisation’s
customers. An effective E-CRM system tracks a customer’s history through multiple channels
in real time, creates and maintains an analytical database, and optimizes a customer’s relation
in the three aspects of attraction, expansion and maintenance.

A typical E-CRM strategy involves collecting customer information, transaction history and
product information, click stream and contents information. It then analyzes the customer
characteristics to give a transactional analysis consisting of the customer's profile and
transactional history, and an activity analysis consisting of exploratory activities showing the
customer's navigation, shopping cart, shopping pattern and more.

Web page design using HTML and CSS

Overview of HTML
Basic structure of an HTML document
Basic text formatting, links, images, tables, frames, form
Introduction to CSS.
(PRACTICAL TOPIC THEREBY LEFT)

Part 3: Security Threats & Cryptography

Security threats
Security in Cyberspace: Cyber security refers to the body of technologies, processes,
and practices designed to protect networks, devices, programs, and data from attack, damage,
or unauthorized access. Cyber security may also be referred to as information technology
security.

Cybersecurity Threats: “The possibility of a malicious attempt to damage or disrupt a

computer network or system." This definition is incomplete without including the attempt to
access files and infiltrate or steal data.

Types:
1. Client Threats: Reasons of client threats are malicious data (virus, logic bomb, worm) etc.
This type of code associated with standalone personal computers but it can also affect
networks. The malicious code are-

- Virus: A virus is a self-replicating program which main purpose is to propagate itself to as

many different places as possible. A virus propagate itself by modifying another program to
include itself. A virus can propagate itself by an act of a user of the system in which it exists.
Virus program do not differ any other computer programs. They are created using common
programming tools. A virus main concern is to remain hidden from the computer user and
from various antivirus programs.
- Trojan Horse: It includes some unexpected function in the program which are designed for
special purpose.

- Worm: Worm is a self-contained program which create itself a copy of program and execute
it. It does not require any host program. Worm creates self-contained program for network
services. To reduce above malicious code client must detect data and that process which are
transfer among host and client.

2. Server threats: Threats to Server have following reasons such as-

- Modification on server data
- Modification of incoming data
- Bugs in server software 

Compare to client, servers are much affected by affected by attack because-

- Hackers use UNIX programs to find out account name and then try to unauthorized access
it.
-By using eaves dropping system any hacker may use authorized user name and its password
by tracking it. 

Servers also affected by delay of services, denial process (service over loading and message
flooding). To avoid these threats the server security methods such as firewalls, encryption
use.

3. Communication Channel Threats: The internet serves as the electronic chain linking a
consumer (client) to an e-commerce resource (commerce server). Messages on the internet
travel a random path from a source node to a destination node. The message passes through a
number of intermediate computers on the network before reaching the final destination. It is
impossible to guarantee that every computer on the internet through which messages pass is
safe, secure, and non-hostile.

Frauds: Internet fraud is the use of Internet services or software with Internet access to

defraud victims or to otherwise take advantage of them. Internet crime schemes steal
millions of dollars each year from victims and continue to plague the Internet through
various methods.

Scams: Scammers use all kinds of sneaky approaches to steal your personal details. Once
obtained, they can use your identity to commit fraudulent activities such as using your credit
card or opening a bank account. If you are looking for a fast way to make money, watch out –
scammers have invented all sorts of fake money-making opportunities to prey on your
enthusiasm and get hold of your cash.

Examples:
Nigerian Scam, Bank Loan or Credit Card Scam, Lottery Scam etc.

Basic cryptography for enabling security in E-Commerce

Encryption – Process of converting electronic data into another form, called cipher text,
which cannot be easily understood by anyone except the authorized parties. This assures data
security.

Decryption– Process of translating code to data.

● Message is encrypted at the sender's side using various encryption algorithms and
decrypted at the receiver's end with the help of the decryption algorithms.
● When some message is to be kept secure like username, password, etc., encryption and
decryption techniques are used to assure data security.

Authentication-Authentication is any process by which a system verifies the identity of a

user who wishes to access it.

Public and Private key encryption

The Public and Private key pair comprise of two uniquely related cryptographic keys
(basically long random numbers). Below is an example of a Public Key:

3048 0241 00C9 18FA CF8D EB2D EFD5 FD37 89B9 E069 EA97 FC20 5E35 F577 EE31
C4FB C6E4 4811 7D86 BC8F BAFA 362F 922B F01B 2F40 C744 2654 C0DD 2881 D673
CA2B 4003 C266 E2CD CB02 0301 0001

The Public Key is what its name suggests - Public. It is made available to everyone via a
publicly accessible repository or directory. On the other hand, the Private Key must
remain confidential to its respective owner. Because the key pair is mathematically related,
whatever is encrypted with a Public Key may only be decrypted by its corresponding Private
Key and vice versa.

Digital Signatures
A digital signature is a mathematical technique used to validate the authenticity and integrity
of a message, software or digital document.
1. Key Generation Algorithms: Digi Algorithms are electronic signatures, which assures
that the message was sent by a particular sender. While performing digital transactions
authenticity and integrity should be assured, otherwise the data can be altered or
someone can also act as if he was the sender and expect a reply.
2. Signing Algorithms: To create a digital signature, signing algorithms like email
programs create a one-way hash of the electronic data which is to be signed. The
signing algorithm then encrypts the hash value using the private key (signature key).
This encrypted hash along with other information like the hashing algorithm is the
digital signature. This digital signature is appended with the data and sent to the verifier.
The reason for encrypting the hash instead of the entire message or document is that a
hash function converts any arbitrary input into a much shorter fixed length value. This
saves time as now instead of signing a long message a shorter hash value has to be
signed and moreover hashing is much faster than signing.
3. Signature Verification Algorithms: Verifier receives Digital Signature along with the
data. It then uses Verification algorithm to process on the digital signature and the
public key (verification key) and generates some value. It also applies the same hash
function on the received data and generates a hash value. Then the hash value and the
 output of the verification algorithm are compared. If they both are equal, then the digital
signature is valid else it is invalid.

Digital Certificates
Digital certificate is issued by a trusted third party which proves sender's identity to the
receiver and receiver’s identity to the sender.
A digital certificate is a certificate issued by a Certificate Authority (CA) to verify the
identity of the certificate holder. The CA issues an encrypted digital certificate containing the
applicant’s public key and a variety of other identification information. Digital signature is
used to attach public key with a particular individual or an entity.
Digital certificate contains:
1. Name of certificate holder.
2. Serial number which is used to uniquely identify a certificate, the individual or the
entity identified by the certificate
3. Expiration dates.
4. Copy of certificate holder's public key. (used for encrypting messages and digital
signatures)
5. Digital Signature of the certificate issuing authority.
Digital certificate is also sent with the digital signature and the message.

Internet security
VPN: A virtual private network (VPN) is programming that creates a safe and encrypted
connection over a less secure network, such as the public internet. A VPN works by using the
shared public infrastructure while maintaining privacy through
security procedures and tunnelling protocols.

Firewalls
In computing, a firewall is a network security system that monitors and controls
incoming and outgoing network traffic based on predetermined security rules.
A firewall typically establishes a barrier between a trusted internal network and untrusted
external network, such as the Internet.

SSL
One of the most important components of online business is creating a trusted environment
where potential customers feel confident in making purchases. SSL certificates create a
foundation of trust by establishing a secure connection. To assure visitors their connection is
secure, browsers provide special visual cues that we call EV indicators -- anything from a
green padlock to branded URL bar.
SSL certificates have a key pair: a public and a private key. These keys work together to
establish an encrypted connection. The certificate also contains what is called the “subject,”
which is the identity of the certificate/website owner.
The most important part of an SSL certificate is that it is digitally signed by a trusted CA, like
DigiCert. Anyone can create a certificate, but browsers only trust certificates that come from
an organization on their list of trusted CAs. Browsers come with a pre-installed list of trusted
CAs, known as the Trusted Root CA store. In order to be added to the Trusted Root CA store
and thus become a Certificate Authority, a company must comply with and be audited against
security and authentication standards established by the browsers.

Part 4: Internet Payment Systems & Business to Business

E-Commerce

Internet Payment Systems

An online payment system is an Internet-based method of processing economic transactions.
It allows a vendor to accept payments over the web or over other Internet connections, such
as direct database connections between retail stores and their suppliers--a common method of
maintaining just-in-time inventories. Online payment systems greatly expand the reach of a
business and its ability to make sales.

Methods:
Credit Cards
As a global payment solution, credit cards are the most common way for customers to pay
online. Merchants can reach out to an international market with credit cards, by integrating a
payment gateway into their business. Credit card users are mostly from the North America
and Europe, with Asia Pacific following suit.

Mobile Payments
A popular payment method in countries with low credit card and banking penetration, mobile
payments offer a quick solution for customers to purchase on ecommerce websites. Mobile
payments are also commonly used on donation portals, browser games, and social media
networks such as dating sites, where customer can pay with SMS. 

Bank Transfers
Customers enrolled in an internet banking facility can do a bank transfer to pay for online
purchases. A bank transfer assures customers that their funds are safely used, since each
transaction needs to be authenticated and approved first by the customer’s internet banking
credentials before a purchase happens.

E- Wallets
An ewallet stores a customer’s personal data and funds, which are then used to purchase from
online stores. Signing up for an ewallet is fast and easy, with customers required just to
submit their information once for purchases. Additionally, ewallets can also function in
combination with mobile wallets through the use of smart technology such as NFC (near field
communication) devices. By tapping on an NFC terminal, mobile phones can instantly
transfer funds stored in the phone.

Prepaid Cards
An alternative payment method, commonly used by minors or customers with no bank
accounts. Prepaid cards come in different stored values for customers to choose from. Online
gaming companies usually make use of prepaid cards as their preferred payment method,
with virtual currency stored in prepaid cards for a player to use for in-game transactions.
Some examples of prepaid cards are Mint, Ticketsurf, Paysafecard, and Telco Card. It appears
that age rather than income is the trait that affects the adoption of prepaid cards.

Direct Deposit
Direct deposits are when customers instruct their banks to pull funds out of their accounts to
complete online payments. Customers usually inform their banks on when funds should be
pulled out of their accounts, by setting a schedule through them. A direct deposit is a
common payment method for subscription-type services such as online classes or purchases
made with high prices.

Cash
Fiat, or physical cash, is a payment method often used for physical goods and
cash-on-delivery transactions. Paying with cash does come with several risks, such as no
guarantee of an actual sale during a delivery, and theft.

Electronic Money: Electronic money is money which exists in banking computer systems

and is available for transactions through electronic systems. Its value is backed by
fiat currency and it can be exchanged into physical form however its uses are often more
convenient electronically. (BITCOIN)

Electronic Payment Media:

-E-cash: eCash is an internet-based system that facilitates the transfer of funds anonymously.
Similar to credit cards, eCash historically has been free to users, while sellers have paid a
fee.
-E-wallet: E-wallet stands for electronic wallet. It is a type of electronic card which is used
for transactions made online through a computer or a smartphone. The utility of e-wallet is
same as a credit or debit card. An e-wallet needs to be linked with the individual's bank
account to make payments.
-E-check: An electronic check, also referred to as an e-check, is a form of payment made via
the Internet, or another data network, designed to perform the same function as a
conventional paper check. Since the check is in an electronic format, it can be processed in
fewer steps.
-Smart-card: A smart card is a physical card that has an embedded integrated chip that acts
as a security token. Smart cards are typically the same size as a driver's license or
credit card and can be made out of metal or plastic. The intelligent microchip on the card and
the card readers use mutual authentication procedures that protect users, merchants and banks
from fraudulent use.

Payment gateway: A payment gateway is a merchant service provided by an

e-commerce application service provider that authorizes credit card or
direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional
brick and mortar. Popular Payment Gateways include PayPal, CCAvenue, PayTm etc.
(Note: Don’t confuse this with Payment Mechanism)
SET protocol for credit card payment
Secure Electronic Transaction or SET is a system which ensures security and integrity of
electronic transactions done using credit cards in a scenario. SET protocol restricts revealing
of credit card details to merchants thus keeping hackers and thieves at bay. 

When a purchase was made electronically, encrypted digital certificates were what let the
customer, merchant, and financial institution complete a verified transaction.

Digital certificates were generated for participants in the transaction, along with matching
digital keys that allowed them to confirm the certificates of the other party. The algorithms
used would ensure that only a party with the corresponding digital key would be able to
confirm the transaction. This way a consumer’s credit card or bank account could be used
without revealing details like account numbers. Thus, SET was a form of security against
account theft, hacking, and other criminal actions.

SET Protocol (Simplified)

1. Buyer indicates to merchant his interest in making credit card purchase.

2. Merchant system send customer an invoice and a unique transaction identifier.
3. Merchant system send customer the merchant certificate along with its public key and
private key of certifying authority.
4. Customer uses the public key to decrypt two certificates.
 5. Customer generates two packets of information: order information package (OI) and
purchase instruction package (PI).
6. Merchant generates an authorization request for the card payment request.
7. Merchant sends to its bank a message encrypted with bank’s public key.
8. Merchant’s bank receives the message and decrypts it.
9. Merchant’s bank sends a request for payment authorization to the customer’s bank.
10. Customer’s bank authorizes the payment, merchant’s bank sends a response to the
merchant, which is encrypted.

If transaction approved, merchant sends its own response message to the customer, informing
him that payment was accepted, and goods will be delivered.

ACID Test: Set of properties to be considered in a money transfer:

● ATOMICITY: a transaction should be done or undone completely. In the event of a failure, all
operations and procedures should be undone, and all data should rollback to its previous state.
● CONSISTENCY: a transaction should transform a system from one consistent state to
another consistent state.
● ISOLATION: each transaction should happen independently of other transactions occurring
at the same time.
● DURABILITY: Completed transactions should remain permanent, even during system
failure.

ICES Test: Set of properties that are important for any money transfer.
Interoperability: Ability to move back and forth between different systems.
Conservation: How well money holds its value over time. How easy it is to store and access
Economy: Processing a transaction should be inexpensive.
Stability: Ability of the system to handle multiple users at the same time.

EFT: Electronic funds transfer (EFT) are electronic transfer of money from one bank
account to another, either within a single financial institution or across multiple institutions,
via computer-based systems, without the direct intervention of bank staff.

ACH: The Automated Clearing House (ACH) Network is an electronic funds-transfer

system run by NACHA, formerly the National Automated Clearing House Association, since
1974. The ACH Network is an electronic system serving financial institutions to facilitate
financial transactions in the United States. It represents more than 10,000 financial
institutions and moves more than $43 trillion each year.

Business to Business E-Commerce

Meaning: B2B E-Commerce, or Business to Business Electronic Commerce, encompasses
the online sale of products and services between companies. In B2C, prices are generally
fixed, shipping is straightforward, and quantities are low. In contrast, B2B transactions prices
are highly variable, relying on a number of pricing variables throughout. Because business
are much larger entities (than individual consumers), the volume of products and services are
much higher – and have much more complicated shipping requirements
Benefits and opportunities in B2B
Today, businesses are seeing their customers purchase more online than any other channel.
Companies not investing in digital channels today are rapidly falling behind their
competition. Without a move into digital commerce, companies will lose customers, struggle
to compete, and see their margins shrink. Failing to invest in a B2B E-Commerce
platform can end up being a costly mistake, and potentially have your business losing out on
millions of dollars in revenue.

B2B Building blocks

Here’s a look at 10 critical factors every B2B eCommerce strategy needs to get ahead.

1. Design
Never underestimate the importance of design. Your clients should be able to find exactly
what they’re looking for as soon as they arrive. Your store needs to be fast and responsive,
with pages that load quickly and provide smooth, intuitive navigation across all major
devices: desktops, tablets, and smartphones.

2. User Experience
Content may be king, but that doesn’t mean writing endless, text-heavy sales pages. Top B2B
web stores use rich media, from images and video to widgets and sharing tools, to craft an
immersive, guided user experience. As your customer relationships grow, you can enhance
this experience even further with personalized catalogues and web promotions.

3. Information
The decision-making process in B2B sales is often a group effort. As such, it’s important that
your website provides all parties involved with the information they need to make their
decision.

For example, B2C websites don’t typically assume technical expertise on the part of the
customer. Technical specs, if listed, are often minimal and not featured prominently. In B2B
sales, IT specialists will almost always be reviewing this information, so incorporating it is
crucial when designing your website.

4. SEO
Search Engine Optimization is the key factor that drives traffic to your store. Identifying the
principle search terms that your clients use to find what they are looking for, and then
optimizing your website’s content for these terms, is vital for gaining a competitive
advantage. The good news is it doesn’t have to be difficult. Many eCommerce solutions
feature built-in tools for optimizing your web store’s pages.

5. Curation
This may seem obvious, but it’s important to maintain your site and keep it current. If you
host a blog, update it with regular posts. Test old links to make sure they still work. Don’t
leave seasonal, promotional, or other time-sensitive themes up longer than they should be. It
can be surprisingly easy to let details like this slip. Making the time for them gives you an
edge over those who don’t.

6. Scalability
Successful companies grow and change. You don’t want to have to rebuild your website
every few years as you continually add new sections and content. Planning ahead and
choosing a scalable solution that adjusts and expands with you will save a great deal of work
down the road. This is doubly true for companies with more than one storefront. Top B2B
organizations often manage multiple fully-branded sites from a single platform. A flexible
solution is, therefore critical.

7. Integration
Integration is the secret ingredient of top B2B companies. Without integration, you are forced
to manually copy order, customer, and product information back and forth between your web
store and your ERP. Integration automates this process for you, keeping your store up to date
with the client and catalog data from your ERP, and transmitting orders directly to the ERP
from your online store.

8. Logistics
Whether you’re doing business locally or around the globe, you will need to have the proper
logistics in place to receive and fulfil orders. Considerations like regional sales taxes,
warehouses, shipping methods, and language support for the countries where you do business
are essential when choosing an eCommerce solution.

9. Social Media
Too many B2B companies make the mistake of assuming social media is a B2C-only
channel. Social media opens your business to millions of potential clients. You need only
determine the strongest platforms for your company, and craft content tailored to catch the
interest of your target audience. This content need not deal directly with your product or
service, either. For instance, marketing, finance, or tech-related posts can be a great way to
engage other business owners.

10. Value
The best B2B sales practices focus on building relationships rather than pushing for a quick
sale. Prospective clients are usually weighing several options. You can make your business
stand out by offering them value upfront. Establish your authority as an expert in your
industry by sharing some of what you know. Company blogs and client case studies are two
excellent and easy-to-implement ways of doing this right on your website.

Key B2B models and their main functions

1. Supplier Oriented Marketplace (eDistribution)

In this type of model, there are many buyers and few suppliers. The supplier provides a
common marketplace. This market is used by both individual customers as well as
businesses. For the success of this model, goodwill in the market and a group of loyal
customers is very important.

2. Buyer Oriented Marketplace (eProcurement)

In this model, there are few buyers and many suppliers. The buyer has his/her own online
marketplace. It then invites suppliers and manufacturers to display their products. Buyers
search in electronic stores in malls and markets for similar service providing products and
compare them.  

3. Intermediary Oriented Marketplace (eExchange)

In this type of model, there are many buyers and many suppliers. An intermediary company
runs a marketplace where business buyers and sellers meet and do business with each other.

EDI as a B2B tool

B2B (Business-to-Business) EDI is simply the use of Electronic Data Interchange for the
purposes of exchanging documents between trading companies.  Using B2B EDI, a vendor
might send exchange purchase orders and invoices with its customers in place of paper
methods.  B2B EDI has been in use in some form or other for a number of decades and has
made the exchange of transaction information significantly faster and more efficient in a
number of industries.  Through B2B EDI small and large organizations alike can benefit
from improved efficiency, reduced costs and greater throughput.

Part 5: Consumer Oriented E-Commerce & E-Core Values

Consumer Oriented E-Commerce

Traditional retailing vs. E-retailing

Traditional Retailing: Traditional retailing essentially involves selling to a final customer
through a Physical outlet or through direct physical communication. This normally involves a
fairly extensive chain starting from a manufacturer to a wholesaler and then to the retailer. If
someone is telling you that brick and mortar is on the way out, just remember that 94 percent
of all retail sales in the U.S. still take place in a physical store. Regardless of demographic,
the biggest reason cited by those surveyed was the ability to see, feel and try out the item they
were looking to purchase.

For women, this is the No. 1 driving factor for in-store shopping, especially for fashion items.
Interestingly, this is also a significant driver for people over 65 and members of the millennial
generation.

E-Retailing: While immediate gratification may drive consumers to a physical store,

convenience is what frequently draws them to online shopping. Being able to shop anytime,
anywhere is a significant motivator that pushes the more than $294 billion in annual online
sales.  Consumers also cite less "overhead" in an online shopping experience. When
shopping, many stops to get a treat or a meal. Also, being at a physical store can lead to
impulse purchases or shopping in stores that you wouldn't otherwise have gone to. The online
experience allows consumers to be laser-focused on their intended purchases.
 Benefits to Customer – Convenience, Better Information, Competitive Pricing

Benefits to Business
● Easy access to market - in many ways the access to market for entrepreneurs has never been
easier. Online marketplaces such as eBay and Amazon allow anyone to set up a simple online
shop and sell products within minutes.
● Reduced overheads - selling online can remove the need for expensive retail premises and
customer-facing staff, allowing you to invest in better marketing and customer experience on
your e-commerce site.
● Potential for rapid growth - selling on the internet means traditional constraints to retail
growth - e.g. finding and paying for larger - are not major factors. With a good digital
marketing strategy and a plan, a scale up order fulfilment systems, you can respond and boost
growing sales.
● Widen your market / export - one major advantage over premises-based retailers is the
ability expand your market beyond local customers very quickly. You may discover a strong
demand for your products in other countries which you can respond to by targeted marketing,
offering your website in a different language, or perhaps partnering with an overseas
company.
● Customer intelligence - ability to use online marketing tools to target new customers and
website analysis tools to gain insight into your customers’ needs.

Models for E-Retailing:

Specialized E-Stores: When you have specialization by product line, essentially you have a
store that decides to pick one particular product line, say books, flowers, CDs, clothes, and
sells only this particular product line. It may also choose to position itself in a particular part
of the product line A new kind of specialization is emerging on the internet, as mentioned.
earlier, namely specialization by function. A good example of this is lastminute.com In
lastminute.com they sell gifts, travel tickets, and other items for last minute shoppers who
want to purchase these items at a very short notice.

Generalized E-stores: The next category of e-retailing models that we intend to look at is
generalized e-stores. Generalized e-stores sell a large number of product lines rather than
con-fining themselves to just one or a very few product lines.

E-mall: In an e-mall, cyberspace is rented out to cyber e-stores that wish to sell their goods.
This store could be a specialized or generalized e-store. So, several product lines can be
present. in a single e-mall. However, unlike the generalized e-store which is under a single
unified management, in an e-mall, each store is under its own management.

Direct selling by manufacturer: A number of manufacturers with well-known brand name

products have chosen to use the internet to carry out direct selling via the internet. One. of the
best known here is Ford, which utilizes the internet to achieve direct selling but uses its
dealer network to facilitate distribution and delivery. The other well -known examples are
Cisco systems and Dell computers. 

E-broker: E-brokerage allows users to buy and sell stocks electronically and obtain
information with the help of a website. Almost all e-brokerage houses have simple sign-up
and provide users the ability to make them their own financial manager. With the advent of
widespread Internet connectivity and smart devices, e-brokerage has seen significant growth.

Web-Services

Matchmaking services:  Matchmaking companies are devoted to finding suitable romantic

partners for their customers. They interview and then use personal information about their
clients in order to pair appropriately matched people. They're very different
from internet dating services.

Information selling: Though selling information products online is relatively new the
industry is not. The idea of packaging knowledge, information, and expertise into a sellable
product has been around for ages. An information product can come in all sorts of formats,
but at its heart, a product like this must pass on useful advice to the consumer. Despite the
name, people don’t want simply information. They crave tips and strategies for making their
life better. They want guidance. And that’s what the best information products provide,
whether it’s a video, an eBook, an audio, a webinar, a membership website. (Self-Help
teachers, Blogs, Micro-Blogs)

Entertainment services: Social Media, Streaming Platforms, Games, Dating Platforms etc.
(Generic & Relatable)

Auction services: An online auction is a service in which auction users or participants sell or
bid for products or services via the Internet. Virtual auctions facilitate online activities
between buyers and sellers in different locations or geographical areas. (e-Bay most popular
example)

E-Core Values
The ultimate goal of doing business on the Internet is to promote ethics through standards
that everyone can accept or adopt. There are certain issues that exist in E-Commerce, that are
described as below:

Ethical issues
Ethics involves systematizing, defending, and recommending concepts of right and wrong
behavior. (Justice, equity, honesty, trustworthiness, equality, fairness)
Code of Ethics: A declaration of the principles and beliefs that govern how employees of a
corporation or an association are expected to behave
Computer ethics: It is that branch of applied ethics that looks at the social and ethical impact
of information technology. One view suggests that ethics means acceptance that the Internet
is not a value-free zone or something apart from civil society.
Ethical E-Values can be ensured when:
• Top managers should act as role models
• Firms should establish a code of ethics
 • Unethical behavior should be dealt with promptly according to criteria and procedures
set in advance
• Set up and support a strong ethics training program for all new employees and
reinforce training on a regular basis
• Motivate employees to focus on honesty, integrity, fairness, and justice as goals

Legal issues
Here are a few things to note when pursuing legal compliance as an e-commerce business.
11. Liability & Contractual information
It is important to clearly define product liabilities and warranties, especially if you deal
with third-party vendors. You can easily get sued by customers for product defects that
have nothing to do with your business, which might see you spending unnecessarily on
legal fees while damaging your business's reputation.

As a first step, always ensure your terms of use section is as detailed as possible, making sure
customers understand, among other things, your relationship with vendors on the site. Also,
ensure you’ve clearly defined all the technical means available to customers in case they want
to cancel or return purchases and make sure you have a mechanism of notifying customers of
their purchases within 24 hours of the purchase.  

12. Data protection and privacy

Most e-commerce platforms are reservoirs of sensitive customer information, which is often
collected via contact forms, customer registration, and during payment for purchases. In
many regions around the globe, e-commerce platforms are obliged to protect their customers'
data as a requirement for legal compliance.

To ensure your e-commerce website is compliant with data protection rules, start by creating
a comprehensive data protection policy in addition to your cookies policy. The links to both
these policies should be clearly visible on your website and should give your visitors
information about whose responsible for storing their data and how they can access, cancel,
or modify any of their information.

3. Managing fraud and securing electronic transactions

Payments fraud and other issues related to online security have become quite popular over the
past few years, coinciding with the growth of the ecommerce industry.  In addition to
protecting customers' information on your site, it is important to go deeper into the inner
workings of your e-commerce site to prevent fraud.

Just because your customers don't walk through a physical store doesn't mean your
e-commerce platform is above the law. Take time to ensure your online store meets stipulated
legislation across all jurisdictions that your products or services are available to potential
customers. These measures, while simple, might save your business from costly litigation and
eventual loss of brand reputation when you're found on the wrong side of the law. 
Taxation issues
Sales tax is a very controversial issue. On the Internet, tax collection is not easy. The rules for
taxation differ by country. All indicators suggest that sales-tax revenue loss is projected to
increase exponentially unless something is done to collect the tax. E-commerce occurs in
various forms and between various entities in the market. One among the question faced by
nations is how to tax it. As the internet crosses the boundaries the main challenges are how
can the basic requirements of physical presence and substantial criteria of taxation can be
met. 

International issues
What right does any one country have to determine the materials that should be available on
the Internet? Can a country regulate an entity in cyberspace, but not on the soil of that
country? These are some of the questions pertaining to the international issues regarding law
and regulation that e-commerce companies face.

EU’s Electronic Commerce Directive gave online business firms assurance, in 2000, that the
firms would have to comply with laws only where the firms are based, not in any other
country in the union. Intellectual property describes the ideas, inventions, technologies,
music, and literature that are intangible when created and are converted into tangible products
for market consumption. IP laws and cultural norms vary from country to country. No
different from physical copyright and trademarks, Internet copyright and trademark violations
also fall under intellectual property laws and are punishable as per the legalities of the
country in which the business operates.

Note: The fundamental here is to gain a short brief explanation of each topic for examination
point of view. In depth knowledge lies in books, please do refer to them as well.
( PPT’s and other resources all available on bit.ly/NOTES-COUNCIL)