CHAPTER-1

How E-commerce differs from traditional commerce:-

 Core strategy Decisions are Technology Based

 Real –time Competitiveness
 The store is always open
 Technology based customer Interface
 Customer Controls the Interaction
 Knowledge of customer Behavior

Unique features of e-commerce Technology:-

1. Ubiquity
2. Global reach
3. Universal standards
4. Richness
5. Interactivity
6. Information Density
7. Personalization/customization
Benefits of e-commerce:
 Benefits to organizations
 Benefits to consumers
 Benefits to society
Limitation of e-commrce:-
1. Technical limitations
2. Non-technical limitations
E-commerce framework is the combination of following three basic elements:-
1. Supportive infrastructure
2. Business applications
3. Public policies and technological standards
Components of infrastructure:-
1. Common business services
2. Messaging and information Distribution
3. Multi-media context and Network publishing
4. Information superhighway infrastructure
Business Application:-
1. Online shopping
 2. Online Banking
3. Online gaming
4. Online form fillment
5. Supply chain management
Elements of E-commerce Applications:-
1. Multimedia content
2. Consumer Access Devices
3. Network service providers
4. Information delivery services
Types of e-commerce:-
1. Business to consumer (B2C)
2. Business to business (B2B)
3. Consumer to consumer(C2C)
4. Consumer to business (C2B)
5. Government to Government (G2G)
CHAPTER-2
A PROTOCOL IS A SET OF RULES AND REGULATIONS THAT GOVERNS DATA COMMUNICATION. It
insures that two parties in the communiocation speak the same language.
The most common protocols for internetwork communications are:-
A. OSI (open system Interconnection) reference model
B. TCP/IP(Transmission control protocol/ Internet protocol)

i. OSI (open system Interconnection) reference model:-

i. Physical layer
ii. Data link layer
iii. Network layer
iv. Transport layer
v. Session layer
vi. Presentation layer
vii. Application layer (PDNTSPA)
B.TCP/ IP PROTOCOL:-
i. Network interface layer
ii. Internet layer
iii. Transport layer
iv. Application layer (NITA)
Domain Name:-
Domain names are named addressed provided to the devices attached to the network.
Domain name is a symbolic string associated with an IP address.
Communication services:-
i. Elcetronic mail
ii. telnet
iii. viber
iv. Snapchat
v. whatsApp
vi. facebook

INTRANET :-
An intranet is an internal private network based on internet and world wide web(www)
technology and standards.
Intranets are restricted to the internal members of an organization.
Access to intranets is controlled through the use of usernames, passwords and firewalls
which are security software p[rograms that keep users nthat are not members of the
organizatio0n out of the network.
Business values of intranet:-
1) cross-functional integration:-
intranet can be used to connect many business processes in the organization which
helps to improve efficiency and effectiveness of business processes.
2) enterprise e-commerce Application:-
centralized sales and purchase can be done online.
3) Enhanced knowledge sharing:-
Knowledge and information can be shared through web pages.
4) Enhanced group Decision:-
Web based groupwares tools can be used to collaborate with eachother which
enhances group decision.
5) Document management:-
Employees can access and exchange documents, pictures, charts, maps etc. over the
internet.
6) Resource Distribution:-
 An internet server can be used as application warehouse and hence avoids many
maintenance and support problems.
Extranet:-
An extranet is the internal private network where limited numbers of outsiders are given access
to the internet.
Extranet are becoming very popular as a way for companies to get information to customers,
suppliers and businesspartners quickly and efficiently.
 Business values of extranet:-
A. Enhanced communication:-Extranets provides easy way of communication between
geographically dispersed organizational branches, customers,suppliers and business
partners.
B. Productivity Enhancement:- extranets supports the concepts of just- in – time
delivery which is helpful to increase productivity of business processes.
C. Business enhancement:- Extranets helps to collaborate with geographically
dispersed branches and it also helps to enhance relationships to customers and
other stakeholders which have positive implications on businesss enhancement.
D. Cost Redduction:-Extranets helps reduce errors , paper work, travel costs etc. by
automating business activities. Besides this, it hlps to reduced administrative and
operartional costs as well.
E. Information Delivery:- with the help of extranet is easy to provide informationto
customers, suppliers, and other business partners quickly and effectively. It is also
easy and less costly to update information in the extranet.
Software Agent:-
A software Agent is a persistent , goal oriented and intelligent computer program that reacts to
its environment and runs without continuous direct supervision to perform some function for
an end user or another program.
Managing the information overload:- software agents are useful for filtering and sorting
the input data such that is easy to find and analyze required data for managers.
Decision making support:- software agents help knowledge workers such as managers,
Doctors,lawyers,etc. in decision making by co- ordinating and interacting with expert
systems.
Repetitive office activity:-using software agent to do such type of works reduces labor
cost hence increases business productivity.
Doing mudance personal Activities:- Agents are useful for performing routine personal
activities such as booking and purchasing airplane tickets.
Features of intelligent Agents:-
 1. Autonomous :- once launched, it must be able to work independently without guidance
of its creator or owner.
2. Learninig:- Agents must have capacity to learn from environment in which it is running.
3. Reasoning:-Agents must have capacity of making rule based reasoning in changing
environment and needs to learn from reasoning.
4. Co-operation:-Agents must be able to interact with other gents that are working with
some or similar problems.

CHAPTER-3
ELECTRONIC DATA INTERCHANGE
Electronic data interchange (EDI) is the computer to computer exchange of business documents
in a standard electronic format between business partners.
By moving from a paper- based exchange of business document to one that is electronic,
business enjoy major benefits such as reduced cost, increased processing speed, reduced errors
and improved relationships with business partners.

 Computer- to –computer
 Business Documents
 Standard Format
 Business partners
How Does EDI Works:-
1. Preparation of Electronic Documents:
2. Outbound Translation:
3. Communication:
4. InboundTranslation:
5. Processing Electronic Documents:
Benefits of EDI:-

 Quick access to information

 Better customer service
 Increase business efficiency
 Reduced paper work and environmentally friendly
 Better communication
 Increased productivity
 Lower operating cost
 Reduction in human error, others are:- speed, ACCURACY, ECONOMY, SIMPLICITY AND
SECURITY.
EDI Application in various field:-
Warehousing
Sales
Finance
Invoicing
Purchase

CHAPTER-4
NETWORK SECURITY
SecurityServices:- security Threat:-
1. Authentication 1.Interception
2. Authorization 2.interruption
3. Data Confidentiality 3.Modification
4. Data Integrity 4.Fabrication
5. Non- repudiation
Firewalls
• A firewall refers to either hardware or software that filters communication packets and
prevents some packets from entering or exiting the network based on a security policy.
• The firewall controls traffic to and from servers and clients, forbidding communications
from untrustworthy sources, and allowing other communications from trusted sources to
proceed.
• Every message that is to be sent or received from the network is processed by the
firewall, which determines if the message meets security guidelines established by the
business.
• If it does, it is permitted to be distributed, and if it doesn’t, the message is blocked.
• Firewalls can filter traffic based on packet attributes such as source IP address, destination
port or IP address, type of service (such as WWW or HTTP), the domain name of the source,
and many other dimensions. 99

Importance of Firewall in an Organization

 • Firewalls are designed to be an organization’s first line of defense against
cyber attacks. By limiting the traffic that crosses the network boundary to only
authorized traffic, a firewall protects many potentially exploitable internal
programs from danger.

• A firewall is your first line of defence against hackers and other unauthorized
external users.
• A firewall lets you block access to unapproved websites.
• A firewall can protect your business from malicious code.
• You can use a firewall to meter bandwidth.
• Monitors network traffic.
• Firewalls greatly reduce the vulnerability of the system.
Types of Firewalls
1. Packet-Filtering Firewalls
2. Application-level Gateway
3. Stateful Inspection Firewalls
4. Proxy Firewalls
5. Next -Generation Firewalls
6. Cloud Firewalls

1. Packet-Filtering Firewalls
• Filters packets based on header information, packet is allowed or denied as
per firewall rules.
• Packet filters examine data packets to determine whether they are destined
for a prohibited port or originate from a prohibited IP address.
• The filter specifically looks at the source and destination information, as well as
the port and packet type, when determining whether the information may be
transmitted.
• Advantages:
 Fast and efficient way of filtering headers
 Low costs
 Uses less resources
• Disadvantages:
 Susceptible to IP Spoofing
 No user authentication
 Can’t filter application level protocols
2. Application-level Gateway
• Application gateways are a type of firewall that filters based on the application
being requested, rather than the source or destination of the message.
• Such firewalls also process requests at the application level, beyond from the
client computer than packet filters.
• By providing a central filtering point, application gateways provide greater
security than packet filters but can compromise system performance.
3. Stateful Inspection Firewalls
• Third generation firewall technology, often referred to as dynamic packet
filtering.
• Understands data in packets from the network layer(IP headers) up to the
application layer.
• Tracks the state of communication session.
4. Proxy Servers/Firewalls
• Proxy servers handle all communications originating from or being sent to the
Internet by local clients, acting as a spokesperson or bodyguard for the
organization.
• Proxies act primarily to limit access of internal clients to external Internet
servers, although some proxy servers act as firewalls as well, called proxy
firewalls.
• When a user on an internal network requests a Web page, the request is
routed first to the proxy server.
• The proxy server validates the user and the nature of the request, and then
sends the request onto the Internet.
5. Next-Generation Firewalls
• Next-generation firewalls use an application-centric approach to firewall
control.
• It has functions combined from other firewalls like packet, stateful, and deep
packet inspection.
• They are able to identify applications regardless of the port, protocol, or
security evasion tools used; identify users regardless of device or IP address;
decrypt outbound SSL; and protect in real-time against threats embedded in
applications.
6. Cloud Firewalls
• A cloud firewall is a security product that, like traditional firewall , filters out
potentially malicious network traffic.
• Unlike traditional firewalls, cloud firewalls are hosted in the cloud.
• This cloud-delivered model for firewalls is also called firewall-asa-service
(FaaS).

CHAPTER-5
ELECTRONIC PAYMENT SYSTEMS
Characteristics of Electronic payment system:-
 Applicability
 Easy to use
 Security
 Reliability
 Trust
 Convertibility
 Efficiency
Point of sale (POS) system saves time and duplication of work, and increases
efficiency and accuracy in inventory, reporting, ordering, and providing excellent
customer service.
CHSPTER-6
ONLINE MARKETING
Tools for Online-Markerting:-

 Search engine marketing

 Social media marketing
(planning,Content is king, Consistent Broad Image, Blog,Links,Track
competition,measure success with analysis)

 E-mail Marketing
Issues with online marketing:-

 Marketing strategies on the web

 Web design
 Virtual societies
 Localization
 Promoting your E-Commerce
 Banner and Campaigning
 Online Measurement
 Direct marketinginternet Access
Three legal issues are:-

 Privacy and Data Collection

 Intellectual Property Issues
 Advertising
 CHAPTER -7
E-ENVIRONMENT
Slept Analysis:-
SLEPT analysis is a frame work to access an organization’s external
environmental influence on it.
It considers five factors affecting the macro environment:-
 Social
 Legal
 Economic
 Political
 Technological (hence the mnemonic SLEPT).
SLEPT Analysis
• Social Factors: Includes demographics, education level, social classes, cultural norms, Income
distribution, consumer attitudes, shopping habits etc.
• Legal Factors: Includes laws such as anti-trust law, discrimination law, intellectual property
laws, consumer protection laws, employment laws, regulatory mechanism etc.
• Economic Factors: Includes growth rates, inflation rates, interest rates, exchange rates, fiscal
policies, monetary policies, credit availability etc.
• Political Factors: includes government policies and intervention in the economy such as
corruption level, government stability, trade control, competition regulation, involvement in
Trade Unions, consumer protection laws, employment laws etc.
• Technological Factors: includes technological aspects such as R&D activity, technology
incentives, rate of technological change, infrastructure level, access to technology etc.
• Organizations that either do not monitor these factors, or those that do not respond to them
adequately will not remain competitive and may fail.

Top Online Shopping Sites of Nepal

1. daraz.com.np

In 2012 Daraz was Launched, South Asia’s premier online shopping marketplace with an active
presence in Pakistan, Bangladesh, Sri Lanka, Myanmar, and Nepal. Supported by a wide range
of tailored marketing, data, and service solutions, Daraz has 30,000 sellers and 500 brands and
serves 5 million consumers across the region. Daraz has more than 2.5 million products to offer,
growing at a very fast pace. Daraz offers a diverse assortment in categories ranging from
consumer electronics to household goods, beauty, fashion, sports equipment, and groceries.

Daraz provides an excellent customer experience, ease-of-purchase, comprehensive customer

care, and hassle-free shopping and returns experience. Alibaba Group acquired Daraz in May
2018.

2. thulo.com

On thulo.com, you can shop online for your basic daily necessities to other necessities you
might need. Browse through thousands of products from our array of online categories such
as Personal Care, Electronics, Apparel, Sports and Outdoors, Office
Supplies, Fashion, Books, Groceries, and many more. They have served thousands of satisfied
customers who have remained loyal to our cause. Through our online shopping platform, we are
grateful to have served customers from all over the world
3. okdam.com

Ok Dam is one of Nepal’s finest online shopping portal. With online customers on the
skyscraper, Nepal is moving towards a digital revolution. Ok Dam is Nepal’s Leading e-
commerce marketplace launched in November 2017 OkDam is an emerging online Shopping
solution in Nepal. 
Okdam.com is a definitive online shopping goal for Nepal, offering a bother-free shopping
background through secure and trusted portals. Okdam provides a popular and unique shopping
experience with all your most loved brands, which is just the beginning. Customers never again
need to hold up in traffic, expect rebates and invest hours searching for the products and services
that they need. All it takes is a couple of snaps and a couple of moments to find the product and
to put order(s) at OkDam. Ok Dam exhibits items from all classes, for example, Fashion,
clothing, footwear, ornaments, gadgets, Kitchen Appliances, Home Appliances, Furniture,
Accessories, Health Care, Machinery, Sports & Fitness, beauty products, Send Gifts To Nepal
and as yet tallying! Our collection consolidates the most trending in the fashion list as well as the
all-time high demands. 
 4. sastodeal.com

Sastodeal’s story began in Dec 2011, when internet penetration in Nepal was just about 9%. Yet,
we were encouraged to start not just a company but an eCommerce industry that would have a
significant impact in Nepal’s economy for generations to come. Bootstrapped with just
Rs.50,000, we rented a small garage, worked on broken furniture and chairs, and worked hard to
build a strong company and significantly contributing to building an eCommerce industry.

Today, Sastodeal is one of the leading eCommerce companies in Nepal, with millions of
customers and thousands of vendors/partners all over Nepal. We have a logistic network that
ensures deliveries in most parts of the nation, except for some locations (work in progress). Our
goal is to ensure that our users and customers can buy products at affordable prices, get their
products delivered as assured and on time regardless of their location. On the other hand, we
provide a platform for our vendors to cater to millions of customers without additional cost to
their business

5. gyapu.com

GYAPU is the most rewarding online shopping platform led by Nepali Entrepreneurs to expand

and flourish e-commerce industries in Nepal and across South East Asia. The primary objective
of GYAPU is to build the Nepali Global Brand and promote domestic Nepali products in Nepal
and throughout the globe.
GYAPU pledges to disintermediate the monopoly of mediators and existing e-commerce
industrial trends. GYAPU envisions uplifting the local business enthusiasts and overall Economy
of Nepal while simultaneously creating job opportunities nationwide.
6. dealayo.com
 Deal Ayo is a trusted and easy-to-use shopping site that offers a surprising and exciting range of
top-quality products at affordable prices.
Deal Ayo is easy to use, and we provide a level of customer service that we believe is second to
none. They aim to make Deal Ayo people’s first choice to look for top quality and
affordable online shoppinNepal.
 
7. socheko.com

Socheko.com has aimed to provide you a one-stop solution for all your need. Nowadays, the
internet has been the most common and part of our life. We are searching for products of our
need, but we can not manage time to go and get it. “Socheko” is the solution for all this you will
get the right product on the right way precisely at your doorstep.

Socheko doesn’t commit we’ll sell our product at a cheaper price than others because we don’t
believe in a price war; we are more committed to quality. In other words, they tag the right price
for the right product.

Nepal’s renowned business group promotes Socheko.Com in Nepal’s business arena for the last
20 years. They understood the value of a customer and always believe that the customer comes
first. Enjoy Shopping.

 8. meroshopping.com

Meroshopping.com is the solution for any online shopping in Kathmandu, Bhaktapur, Lalitpur,
and any other major city in Nepal. Meroshopping is becoming more and more popular as you can
enjoy shopping from the comfort of your home.
Shopping has never been easy and fun; with our user-friendly online shopping platform,
customers can browse and directly purchase their desired products using a secure and safe online
payment system. In other words, Meroshopping is Reliable, affordable, and offering Free home
delivery inside Nepal. The major cities in Kathmandu provide online shopping in Pokhara,
Butwal, Chitwan, Dharan, Surkhet, Birgunj, Biratnagar, Jhapa, and Nepalgunj, Mero Shopping
has reached many shoppers in Nepal. With a fast and free delivery within 24 hours, Mero
Shopping proves to be reliable and affordable.

9. smartdoko.com

SmartDoko is an online shopping destination in Nepal, offering a wide range of products at

competitive prices! They focus on quality products and fast delivery to give customers the best
shopping experience. Their reward point system is the first and only one of its kind in the Nepali
e-commerce industry in Nepal.

A subsidiary of IMS Group, one of Nepal’s most prominent business houses, SmartDoko is a
reliable platform. SmartDoko has created a simple and safe platform for both customers and
vendors. They can shop or sell from the comfort of their homes. It is your One-Click Solution to
all things shopping!

 10. muncha.com

Muncha.com is the most prominent name in gifting among Nepalese all over the world. We
started as Muncha House in the 1920s, the first department store in Nepal, and ventured into
online shopping in 2000 to offer a gifts gallery to non-resident Nepalese looking to surprise
family and friends back home.

Muncha started with the vision of forging lifelong relationships with our customers, taking pride
in being reliable, and undertaking special deliveries every day.

Their customers remember Muncha to send gifts for birthdays, anniversaries, Nepalese festivals,
occasions, rituals, internationally celebrated festivals, weddings, celebrations for achievements,
missing family and friends, and numerous other reasons.

Muncha seeks to serve and delight each customer where in the world they may be and stick to
our roots even as we are technologically innovative.