E-commerce

Unit I

Dr. Azhar A. Sheikh

Assistant Professor
School of Management Studies
Commerce: Meaning
• Commerce includes purchase, sale, and exchange of commodities.
• Therefore, it can be defined as an exchange of commodities, or all
activities involved in transferring goods from producers to consumers.
E-commerce

Meaning

• Electronic commerce, also termed as ecommerce, is a process of buying and

selling of goods or services using electronic systems viz. internet or other
computer networks.

Definition

• According to the European Union’s Web site, e-commerce is a concept dealing

with any form of business transaction or information exchange executed using
Information and Communication Technology (ICT), between companies,
companies and their customers, or companies and public administrations.
E-Business

Meaning

• E-Business (electronic business) is any process that a

business organization conducts over a computer-
mediated network. Business organizations include
any for-profit, governmental, or nonprofit entity.
Their processes include production-, customer-, and
internal- or management-focused business processes.
E-commerce v/s E-business
E-commerce
• Where ICT is used in buying and
selling of goods or services
between organizations and in
Consumer transactions is known
as e-commerce.
E-business
• where ICT is used to enhance the
key business processes through
the facilities available on the
Internet is known as e-Business.
• It comprises of any process by
which an organization conducts
business over a computer
network.
Process in E-business
Internal
Production Customer-focused
Management
• Procurement • Promotional • Employee Service
• Ordering efforts • Employee Training
• Processing of • Processing of • Internal
Payments purchase order information
• Control • Customers sharing
• E-links with support
suppliers
Evolution of E-commerce

In 1970, EFT were developed

Later on, EDI were introduced

The boost in E-commerce were reported after

the introduction of WWW in early 1990s.
Conceptual Framework of E-commerce
• E-commerce framework is related to software frameworks for e-
commerce applications.
• It offers an environment for building e-commerce applications quickly.
• It must
• Allow replacing all parts of the framework code
• Forbid changes in the framework code
• Contain bootstrap code to start the application
• Provide quality search functionality, Content Management System, multi-
channel functionality, mobile supported E-commerce, third party plug-ins etc.
Factors fueling E-commerce

Economic Factors

Market and customers interaction factors

Technology Factors
Business Model
• A business model is an outline for how your company plans
to make money. In general, a business model explains four
things:
• What product or service a company will sell.
• How it intends to market that product or service.
• What kind of expenses the company will face.
• How the company expects to turn a profit.
General Business Models

Business
Models

Retailer Manufacturer Free for Subscription Franchise Product as

Model Model Service Model Model Model Service Model
Scope of E-commerce
Trade Cycle
Pre-sales

• Finding a supplier and negotiating the terms

Execution

• Placing the order and taking the delivery

Settlement

• Receiving invoice and making payment

After-sales

• Receiving after sales service

Trade Cycle
Thank you