PRACTICAL FILE

ON

E-COMMERCE

SUBMITTED BY: SUBMITTED TO:

DR. NIDHI GARG

(ASST. PROFESSOR ) BBA (6 SEM)

ROLLNO.

VAISH MAHILA MAHAVIDYALYA, JHAJJAR ROAD, ROHTAK

 INDEX

SNO. TOPIC PAGENO.

1 WHAT DO YOU MEAN BY E-
COMMERCE? EXPLAIN NATURE,
ADV. AND REASON FOR
TRANSACTING ONLINE?
2 EXPLAIN ELECTRONIC PAYMENT
SYSTEM AND PAYMENT
GATEWAYS? ALSO EXPLAIN THE
TOOL FOR PROMOTING
WEBSITES?
3 EXPLAIN THE APPLICATION OF E-
COMMERCE?
4 WHAT IS VIRTUAL EXISTENCE
HOWVIRTUALORGANISATIONAL
WORK?
5 WHAT IS PLASTIC MONEY?
EXPLAIN THE CAUSES RELATING
ONLINE TRANSACTIONS?

SIGNATURE[REMARKS]
QUESTION 1 WHAT DO YOU MEAN BY E-COMMERCE? EXPLAIN
NATURE, ADVANTAGES AND REASON FOR TRANSACTING
ONLINE?

Meaning Of E-Commerce

Electronic commerce (e-commerce) refers to companies and individuals that buy

and sell goods and services over the internet. E-commerce operates in different
types of market segments and can be conducted over computers, tablets,
smartphones, and other smart devices. Nearly every imaginable product and
service is available through e-commerce transactions, including books, music,
plane tickets, and financial services such as stock investing and online banking.
As such, it is considered a very disruptive technology.

E-commerce includes a wide range of activities, such as online shopping, online

banking, and online auctions. It also enables businesses to reach a global market,
increasing their potential customer base. The growth of e-commerce has been
driven by the increasing availability of high-speed internet, the widespread use of
smartphones, and the convenience and flexibility of online transactions.

Examples of E-Commerce

 An individual purchases a book on the Internet.

 A government employee reserves a hotel room over the Internet.

 A business calls a tollfree number and orders a computer using the seller's
interactive telephone system.
 A business buys office supplies on-line or through an electronic auction.

 Retailer orders merchandise using an EDI network or a supplier's extranet.

 A manufacturing plant orders electronic components from another plant within

the company using the company's intranet.

 An individual withdraws funds from an automatic teller machine (ATM).

 Accepting credit cards for commercial online sales

 Driving information through a company via its intranet

 Driving manufacturing and distribution through a value chain with partners on

an extranet

Nature of E-Commerce

In e-business again on the subject of trust, Daughtrey (2001) refers to the

conditions of consumers expect purchasing from the Internet or when conducting
business with:

 Generalized perception of supplier or reputation.

 Confidentiality and privacy, security for Customer expectations.
 Supplier provided by Assurances for example guarantees.
 Other customer’s reports. For example a history of prior transactions If the
customer has, additional factors may be:
 Order fulfilment accuracy.
 Order fulfilment Timeliness.
 With customer relations Nature of any interactions.
 Any disputes Resolution.
 From the supplier Subsequent communications.
  With whom customer information was shared any communications from
other suppliers.

The scope of e-commerce is vast and continually expanding. It includes business-

to-consumer (B2C) transactions, such as online shopping, as well as business-to-
business (B2B) transactions, such as online supply chain management. E-
commerce also encompasses a variety of other activities, such as online banking,
online ticketing, and online auctions. Additionally, it includes the use of mobile
devices for commerce, known as mobile commerce or m-commerce. The growth
of e-commerce has been driven by the increasing availability of high-speed
internet, the widespread use of smartphones, and the convenience and flexibility
of online transactions.

Advantages and Disadvantages of E-commerce

Advantages

E-commerce offers consumers the following advantages:

 Convenience: E-commerce can occur 24 hours a day, seven days a week.

Although eCommerce may take a lot of work, it is still possible to generate
sales as you sleep or earn revenue while you are away from your store.
 Increased Selection: Many stores offer a wider array of products online
than they carry in their brick-and-mortar counterparts. And many stores
that solely exist online may offer consumers exclusive inventory that is
unavailable elsewhere.
 Potentially Lower Start-up Cost: E-commerce companies may require a
warehouse or manufacturing site, but they usually don't need a physical
storefront. The cost to operate digitally is often less expensive than
needing to pay rent, insurance, building maintenance, and property taxes.
  International Sales: As long as an e-commerce store can ship to the
customer, an e-commerce company can sell to anyone in the world and
isn't limited by physical geography.
 Easier to Retarget Customers: As customers browse a digital storefront,
it is easier to entice their attention towards placed advertisements, directed
marketing campaigns, or pop-ups specifically aimed at a purpose.

Disadvantages

There are certain drawbacks that come with e-commerce sites, too. The
disadvantages include:

 Limited Customer Service: If you shop online for a computer, you

cannot simply ask an employee to demonstrate a particular model's
features in person. And although some websites let you chat online with a
staff member, this is not a typical practice.
 Lack of Instant Gratification: When you buy an item online, you must
wait for it to be shipped to your home or office. However, e-tailers like
Amazon make the waiting game a little bit less painful by offering same-
day delivery as a premium option for select products.
 Inability to Touch Products: Online images do not necessarily convey
the whole story about an item, and so e-commerce purchases can be
unsatisfying when the products received do not match consumer
expectations. Case in point: an item of clothing may be made from
shoddier fabric than its online image indicates.
 Reliance on Technology: If your website crashes, garners an
overwhelming amount of traffic, or must be temporarily taken down for
any reason, your business is effectively closed until the e-commerce
storefront is back.
  Higher Competition: Although the low barrier to entry regarding low
cost is an advantage, this means other competitors can easily enter the
market. E-commerce companies must have mindful marketing strategies
and remain diligent on SEO optimization to ensure they maintain a digital
presence.

Reasons For Transacting online

Online transactions offer several benefits, including convenience, speed, and

access to a wide range of goods and services. They also allow for transactions to
be made 24/7, from anywhere with an internet connection. Additionally, online
transactions often provide a record of the transaction, which can be useful for
keeping track of purchases or financial transactions.
QUESTION 2 EXPLAIN ELECTRONIC PAYMENT SYSTEM AND
PAYMENT GATEWAYS ALSO EXPLAIN TOOL FOR PROMOTING
WEBSITES?

E-commerce sites use electronic payment, where electronic payment refers to

paperless monetary transactions. Electronic payment has revolutionized the
business processing by reducing the paperwork, transaction costs, and labour
cost. Being user friendly and less time-consuming than manual processing, it
helps business organization to expand its market reach/expansion. Listed below
are some of the modes of electronic payments −

 Credit Card
 Debit Card
 Smart Card
 E-Money
 Electronic Fund Transfer (EFT)
Credit Card

Payment using credit card is one of most common mode of electronic payment.
Credit card is small plastic card with a unique number attached with an account.
It has also a magnetic strip embedded in it which is used to read credit card via
card readers. When a customer purchases a product via credit card, credit card
issuer bank pays on behalf of the customer and customer has a certain time period
after which he/she can pay the credit card bill. It is usually credit card monthly
payment cycle. Following are the actors in the credit card system.

 The card holder − Customer

 The merchant − seller of product who can accept credit card payments.
 The card issuer bank − card holder's bank
 The acquirer bank − the merchant's bank
  The card brand − for example , visa or Mastercard.
Debit Card

Debit card, like credit card, is a small plastic card with a unique number mapped
with the bank account number. It is required to have a bank account before getting
a debit card from the bank. The major difference between a debit card and a credit
card is that in case of payment through debit card, the amount gets deducted from
the card's bank account immediately and there should be sufficient balance in the
bank account for the transaction to get completed; whereas in case of a credit card
transaction, there is no such compulsion.Debit cards free the customer to carry
cash and cheques. Even merchants accept a debit card readily. Having a
restriction on the amount that can be withdrawn in a day using a debit card helps
the customer to keep a check on his/her spending.

Smart Card

Smart card is again similar to a credit card or a debit card in appearance, but it
has a small microprocessor chip embedded in it. It has the capacity to store a
customer’s work-related and/or personal information. Smart cards are also used
to store money and the amount gets deducted after every transaction.Smart cards
can only be accessed using a PIN that every customer is assigned with. Smart
cards are secure, as they store information in encrypted format and are less
expensive/provides faster processing. Mondex and Visa Cash cards are examples
of smart cards.

E-Money

E-Money transactions refer to situation where payment is done over the network
and the amount gets transferred from one financial body to another financial body
without any involvement of a middleman. E-money transactions are faster,
convenient, and saves a lot of time.Online payments done via credit cards, debit
cards, or smart cards are examples of emoney transactions. Another popular
example is e-cash. In case of e-cash, both customer and merchant have to sign up
with the bank or company issuing e-cash.

Electronic Fund Transfer

It is a very popular electronic payment method to transfer money from one bank
account to another bank account. Accounts can be in the same bank or different
banks. Fund transfer can be done using ATM (Automated Teller Machine) or
using a computer.Nowadays, internet-based EFT is getting popular. In this case,
a customer uses the website provided by the bank, logs in to the bank's website
and registers another bank account. He/she then places a request to transfer
certain amount to that account. Customer's bank transfers the amount to other
account if it is in the same bank, otherwise the transfer request is forwarded to an
ACH (Automated Clearing House) to transfer the amount to other account and
the amount is deducted from the customer's account. Once the amount is
transferred to other account, the customer is notified of the fund transfer by the
bank.

PAYMENT GATEWAYS

Payment Gateway is an online payment processing technology which helps

businesses to accept credit cards and electronic checks. In other words, payment
gateways are “Manin-the-middle” which are located between e-commerce
platforms and clients.
A payment gateway allows you to −

 Make and take payments quickly and easily.

 Keep your customer's data (information) and money secure.
 Gain trust of your customers, so they are willing to hand over their money.
Most Popular Payment Gateway Providers

Following is the list of the most widely used and popular payment getaway
providers along with a brief history about them.

 PAYPAL − You can find all the terms and conditions of their business
model on their URL – https://www.paypal.com/. PayPal is one of the
longest established and probably the best-known service for transferring
money online.
 Amazon Payments − The URL of this immensely popular payment
getaway provider is – https://payments.amazon.com/. It was created in
2007, Amazon Payments provides your customers with the same checkout
experience they get on Amazon.com
 Stripe − The URL of this payment getaway is – https://stripe.com/. No
monthly fees, no extra charges for different cards and different payment
methods, also for different currencies. Stripe also offers a great API
(Application Program Interface) as well.
 Authorize Net − The URL for this popular payment getaway provider
is https://www.authorize.net/. It is among the most powerful and well-
 known payment gateways. It is well-supported by e-commerce WordPress
plugins.
 2Checkout − The URL for this payment getaway provider is
– https://www.2checkout.com/. 2checkout is one of the most simple and
affordable credit card gateways.
1. Tools for promoting websites
Omnisend:
This eCommerce marketing tool enables business owners to design
marketing tactics that have been proven efficient for platforms for online
shopping. Omnisend allows online retailers to communicate with their
consumers via different methods. They may also use Omnisend to target
specific people with personalized SMS and emails..

SEMRush:
SEMRush, being an all-in-one software package for marketing, enables you
to oversee all of your advertising initiatives and tactics on a single platform.
It may help you improve your SEO approach, track metrics, conduct keyword
research, and automate social media updates. For the sake of simplicity, the
tool has a sleek, smooth user interface.

MailChimp:
MailChimp is an email advertising medium that allows you to design, connect,
automate, and optimize your campaigns. Emails and adverts may be
developed and sent to the appropriate people's inboxes or social media feeds.
The built-in email designer facilitates work. Their built-in optimization tools
assist you in getting to know your audience, acting on it, and learning from
each campaign. If you require it, here is a comprehensive list of MailChimp
alternatives.
Ads on Facebook:
You may use Targeted Facebook Ads to design campaigns that attract more
loyal consumers to your website to enhance brand and product exposure. You
may target particular audiences with Facebook Ads based on a range of
demographic and preference criteria, such as location and favorite pastime.
WooCommerce:
It is an excellent approach for WordPress blogs to provide actual things while
setting up an eCommerce store with no effort. WooCommerce additionally
offers its own set of applications, which add functionality to WordPress stores.
Campaign Monitor: Using email customization templates, this website may
be used to construct email campaigns for eCommerce enterprises. These
templates may be used to create engaging and appealing email adverts. The
options for customization and modification make it easier to develop.
9) eBay:
eBay is the second largest marketplace in the United States and is actually
superior in several areas (such as technology, home and garden, and
collectibles). eBay offers its own Shopify app, which you can use to connect
your business to the marketplace.
ReferralCandy:
A referral program is an effective marketing technique, particularly in e-
commerce. individuals trust referrals from other individuals considerably
more than marketing messages from firms, and trust is crucial for Internet
enterprises. ReferralCandy is an all-in-one referral marketing platform with a
robust set of features to accommodate any type of referral preprogram the
platform making it simple to set up, track, and manage referrals, as well as
disburse prizes. ReferralCandy allows you to automate the majority of your
referral program's procedures and fully customize your campaigns using built-
in settings or HTML and CSS editing. It also provides extensive analytics and
reporting, allowing you to monitor and optimize your campaigns as needed.
Canva:
Canva is the solution to the design of your graphics demands if you don't have
the time or ability to create great graphics. Canva is a powerful visual design
tool that is simple to use even for non-designers. The simple, completely
adjustable templates, visuals, and royalty-free photos make creating polished
and professional-looking visuals a breeze. Canva can be used to create
everything from social media posts, email graphics, blog imagery, and
background-free product images to printable PDFs, banners, business cards,
flyers, and letterheads.
QUESTION 3 EXPLAIN THE APPLICATION OF E-COMMERCE?

The E-commerce Applications basically leads to two perceptions: one where

software applications, either mobile (m-commerce applications) or web
applications like eBay, Amazon etc. come into picture. Here, mobile applications
are an extension to e-commerce and are the driving force behind businesses
applications successfully running services, be it Food Delivery app like Zomato
or Taxi app like Uber. The second one refers to marketing with the help of e-
commerce mediums, such as Wholesale or Retail, e-Banking, Auctioning, online
booking and so on. Following is the detail explanation of the above stated
perceptions:

Retail and Wholesale Application of e-commerce

Online retailing or E-retailing refers to the use of online stores by businesses for
transaction of services and products to the consumers. This is achieved by means
of e-catalogs displayed to the customers through these online stores and virtual
shopping carts. There are numerous applications of e-commerce in this area.

Finance Application of e-commerce

Finance and e-commerce have come together for operations in stock markets and
the banking sector. Online stock markets enable electronic trading for people by
informing them about the performance of the stocks through analysis, charts,
reports and other parameters through websites.

Manufacturing Application of e-commerce

E-commerce helps the manufacturing companies to execute electronic exchange

for sharing market status, Combined buying and selling, inventory check
information and so on. This enables the manufacturing groups to carry out their
operations fluidly.

Auctioning Application of e-commerce

Applying e-commerce into auctions helps people to participate irrespective of the

geographical boundaries. This helps to receive more and more participation,
better negotiation that makes auction successful.

Marketing Application of e-commerce

Activities related to marketing such as product features, building customer

relationships, pricing all of these can be strengthened by using e-commerce to
enhance and provide customized shopping experience to the customers. However,
Digital Marketing Strategies significantly helps in promoting businesses.

Online Shopping Application of e-commerce

There has been a massive change in people’s shopping preferences in the last few
years. The mantra for the businesses to succeed these days is “Go Online”.
However, shopping online is comfortable, more convenient and most of the time
cost effective. There are few prosperous online shopping apps such as Amazon,
Flipkart etc.

Mobile and Web Application of e-commerce

A subset of retail commerce platform, mobile commerce or popularly called as

m-commerce applications. Web applications on mobile have become staple for
brands to show their product and service capabilities. The customer makes
purchases through web applications optimized for the use of retailer. These
applications also provide payment security and ensure safe e-payments.

Online Booking Application of e-commerce

Tourism is a booming industry today and travel through online booking is

growing the e-commerce presence in the industry. Online booking gives the
privilege to the people to make their bookings in advance whether it is for flight
tickets, train tickets, Resorts, hotels, transportation services or other tourism
packages. It makes trips safe and convenient with all the bookings at the tip of
your fingers.
Online Publishing Application of e-commerce

Traditional printed books and magazines are now replaced by e-books and Digital
Magazines. The advantages such as lightweight, accessibility and portability from
anywhere and anytime have taken over the traditional ways. Electronic mode of
e-books is also environment friendly as they help in saving trees and help reduce
the use of papers. Due to the above reasons the e-publishing and online publishing
has seen a rise in popularity.

E-banking Application of e-commerce

Internet banking has simplified the complex, time consuming banking process for
the consumers. The e-banking is that sector of e-commerce application that helps
the users to perform money-based transactions easily without waiting in long
queues. Today, every bank has its own application to provide the best of the
services through virtual banking.
The devices used by the customers is directly proportional to the way users access
the application. These access devices can be personal computers, videophones,
consumer electronics like, game boxes and television, digital assistants like, pen-
based computing, voice driven etc.
QUESTION 4 WHAT IS VIRTUAL EXISTENCE? HOW VIRTUAL
ORGANISATIONAL WORK?

The term "virtual existence" in e-commerce generally refers to the online

presence or online availability of a product or service. This can include product
listings, digital storefronts, and online marketplaces where customers can browse,
purchase, and access goods and services over the internet.
The advantage of virtual existence:
It allows for flexibility, accessibility, and cost savings
It doesn't require a physical location.
It also enables real-time collaboration and communication with people from all
over the world.

1. Create a memorable customer experience.

Particularly while virtual reality technology remains relatively new, the

immersive nature of VR will put people “inside ever-expanding virtual worlds
and find themselves at the center,” according to a report on AR and VR from
McKinsey.

2. Spark word of mouth.

More than just being memorable, a VR experience is also sharable — ”it gets
customers talking about you and sharing their experiences on social media,”
according to Linnworks. Word of mouth is still a powerful marketing technique,
especially when it’s exciting and authentic.

3. Strengthen consumers’ bond with your brand.

Using VR to immerse consumers in a different world is the ultimate tool for

“show, don’t tell.” By immersing them in a completely different environment,
you’re “enabling a form of telepresence that evokes levels of empathy as if one
were present,” says a report from McKinsey.

4. Make people more sure of their purchases.

Using virtual reality technology can in some ways mimic the real-world
experience. With 360-degree product views, you customers can look at the
product from every angle, better understand its scale and proportions and rely less
on product descriptions in cases of language barriers.

Ultimately, when done well, VR technology could help online shoppers be more
confident with their purchases — increasing conversion rates and decreasing
returns.

Working

. Determine your goals.

“Using VR” is not a goal. You have to know exactly what you want to achieve
by implementing this new and complex technology. Your goal might be one of
the following, but there are many more examples, too:

 Gain press attention with a novel shopping experience

 Give customers a more experiential way to encounter your products
 Reduce return rate by communicating more robust product information

2. Figure out what kind of experience to deliver.

This piece is a little more tactical. You may, for instance, create an experience-
based deliverable like North Face’s in-store Yosemite VR experience; a product-
based experience, as in the example we saw from Audi; an interactive experience
where shoppers can interact with products, friends or even shopping assistants;
and so much more.

3. Develop your VR experience.

Your only limit is the current VR functionality. Unless you’re already a VR

development whiz, you’ll probably need to consider the following things:

The Technology

What level of technology do you need to create your ideal experience? That will
depend on whether you want a passive or interactive experience, and whether you
want the experience to support users walking around an environment.

Developers

It’s important to find a developer who’s experienced in VR. Remember, this is a

relatively new technology so it might take a little longer to find the right person.

Also, as Annie Eaton — CEO and co-founder of Futurus — told Ecommerce

Guide: “To create a virtual reality environment takes a different kind of developer
rather than your typical app or web dev. It takes a visual programmer — a hybrid
between a designer and a coder.”

Hardware

What kind of hardware will your users need to partake in the experience you’re
creating? If you’re planning to deliver the experience in-store, you can consider
room-scale hardware that delivers a highly robust and immersive experience.

However, if this is something you want consumers to engage with on their own,
you’ll need to choose hardware that’s accessible to your audience. The currently
popular mainstream headsets are still a bit pricey, putting them out of the range
of the average consumer.

4. Test your user experience and performance consistently.

The technical functionality and the user experience have to work so tightly
together for virtual reality to provide a fully optimal experience.

 Make sure all the elements work correctly and respond as intended to
human intervention, if applicable.
 Go through the experience with a beginner’s mind to assess for usability
blockers, like poorly designed navigation or an interface that isn’t intuitive.
 Make sure the experience doesn’t cause discomfort or nausea for the
average user.

5. Get the word out about your cool new VR initiative.

It’s important to let people know about the cool stuff you’re doing. But you
should also remember that you’re not marketing VR to them — you’re still
marketing your store, your product and your experience. VR is just the tool.

Also, marketers will want to consider how consumers will experience the show.
If they’re participating from home, one option is to give away headsets to your
audience, like eBay and Myer did to promote their virtual department store.
QUESTION 5 WHAT IS PLASTIC MONEY? EXPLAIN THE CAUSES
RELATING ONLINE TRANSACTIONS?

Plastic money refers to payments made via debit or credit card, accounts for majority of
payments made in India.

Cards are increasingly being used in place of actual cash. Plastic money refers to
these cards. Debit and credit cards represent plastic money. Plastic money has
made it easier for us to carry out transactions in our daily lives. It has replaced
cash payments across the world and established itself as a necessary form of
instant money. It has made it simpler for us to buy items with some of the best
credit cards in the market, which we could not otherwise afford

Benefits of plastic money

Plastic money comes with many benefits, including:

1. Cashless living

Cards are increasingly being used in place of actual cash. Plastic money refers to
these cards. Debit and credit cards represent plastic money. Plastic money has
made it easier for us to carry out transactions in our daily lives. It has replaced
cash payments across the world and established itself as a necessary form of
instant money. It has made it simpler for us to buy items with some of the best
credit cards in the market, which we could not otherwise afford.

Benefits of plastic money

Plastic money comes with many benefits, including:

1. Cashless living
Plastic money has not only made our lives easier but has also alleviated the
hassles that come with carrying currency. Some of the best credit cards allow us
to move around the world without worrying about carrying cash.

2. Better security

One advantage of using credit or debit cards is the decrease in robberies and
crimes. Hacking a card's PIN is difficult and necessitates the knowledge of certain
procedures. As a result, credit and debit cardholders can be reasonably confident
of the security of their funds.

You can use the credit card to fund your requirement and later payback in
instalments. Further, a credit card is easy to get. All you need to do is meet your
bank’s credit card eligibility criteria, and the card is yours.

4. Ease of doing transactions

Credit cards and debit cards can help make online payments, fund transfers, and
other transactions with ease. It is incredibly simple to make payments with plastic
money from any location. Furthermore, several online businesses provide
discounts when paying using credit and debit cards.

5. Exciting deals and discounts

Every credit and debit card providers offers deals and discounts on shopping.
They can help you save more and earn cashback on purchases.

6. Saving on travel
Travelling can be expensive without plastic money. Credit and debit cards
provide lounge access and incredible deals on travel bookings. You cannot enjoy
the same benefits while using cash, making plastic money a must if you are
travelling.

Drawbacks of plastic money

Plastic money also has some downsides, such as:

1. Does not work everywhere

There may be certain venues and stores where only cash is accepted. For example,
buying products from a small merchant or buying vegetables or newspapers.

2. Can land you in debt

If a person is not careful with plastic money, they can often overstep their
spending limit and spend more than they can repay. This can land them in debt.

If you are in the market for credit and debit cards and want to transition from cash
to plastic money, look no further than IDFC FIRST Bank. You will receive
unsurmountable benefits if you use cards from IDFC FIRST Bank. IDFC FIRST
Bank. So, wait no more; get your card from IDFC FIRST Bank today! Use
our mobile banking apps to unlock the benefits of our manifold cards.
Causes Relating Online Transactions

E-transactions are encouraged because they're convenient, efficient, and allow for
purchases from anywhere in the world. To do an online transaction, follow these
steps:

1. Secure a stable internet connection.

2. Visit the online store or platform.

3. Browse and select the product.

4. Add the product to the cart.

5. Proceed to checkout.

6. Enter shipping and payment details.

7. Confirm the transaction.

💻 Common online transaction modes include:

* Credit/debit cards

* E-wallets (PayPal, Google Pay, etc.)

* Direct bank transfers

* Cryptocurrencies

* Digital tokens

🔒 Remember to ensure the website is secure (HTTPS) and use strong, unique
passwords.