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E-Commerce

E-Commerce
• In its simplest form ecommerce is the buying and selling
of products and services by businesses or consumers
over the World Wide Web.
• People use the term "ecommerce" or "online shopping"
to describe the process of searching for and selecting
products in online catalogues and then "checking out"
using a credit card and encrypted payment processing

Definition • E-commerce describes the process of buying and selling of products. making payments and tracking down the deliveries or order. . • E-commerce is the means to complete online transaction and integrate the supply chain into the transaction management process such as receiving orders. services and information via computer networks including internet.

• Time consuming • Delay in payment • Difficult to reach to remote customer • Distributor. typing. documents storage and handling.Limitation of Traditional Commerce • Paper work • Delay in transaction • Addition cost of paper. agents. . wholesaler.

Shorter lead times for payment . E-commerce Benefits •Reduced costs by reducing labour. • Reduced errors in keying in data. •Reduced time. •Reduced paper work.

•New Markets. The Internet has the potential to expand your business into wider geographical locations . E-commerce Benefits •Faster delivery of product .

flip cart) .Role of E-Commerce • E-Commerce is used everywhere • On-line education • Online banking • Electronic fund transfer • Online auction • Travel reservation on internet • Online retailing(homeshop18.

Three-tier Technical Model Server side Client side Service system Backend system .

Architecture of Web-based E- Commerce System Service system Backend system Web Server Application Server Internet Database Intranet Firewall (Secure) Client side Server side .

Web Server Software • The most popular Web server programs are: • Apache HTTP Server • Microsoft Internet Information Server (IIS) • Sun Java System Web Server (JSWS) 11 .

first developed by Rob McCool at the University of Illinois in 1994 at the NCSA • Apache has dominated the Web since 1996 because it is free (open source) and performs efficiently 12 .Apache HTTP Server • Apache is the results of an ongoing group software development effort.

Microsoft Internet Information Server • Comes bundled with current versions of Microsoft Windows Server operating systems • Used on many corporate intranets • Supports the use of: • ASP • ActiveX Data Objects • SQL database queries 13 .

Telnet and FTP Utilities
• Telnet
• Program that allows users to log on to a computer
connected to the Internet
• Telnet protocol
• Set of rules used by Telnet programs
• File Transfer Protocol (FTP)
• Defines formats used to transfer files between
TCP/IP-connected computers
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Features

• E-Commerce provides following features
• Non-Cash Payment: E-Commerce enables use of
credit cards, debit cards, smart cards, electronic fund
transfer via bank's website and other modes of
electronics payment.
• 24x7 Service availability: E-commerce automates
business of enterprises and services provided by them
to customers are available anytime, anywhere. Here
24x7 refers to 24 hours of each seven days of a week.

• Advertising / Marketing: E-commerce increases the reach
of advertising of products and services of businesses. It helps
in better marketing management of products / services.
• Improved Sales: Using E-Commerce, orders for the products
can be generated any time, any where without any human
intervention. By this way, dependencies to buy a product
reduce at large and sales increases.
• Support: E-Commerce provides various ways to provide pre
sales and post sales assistance to provide better services to
customers.
•.

Product inventory management becomes very efficient and easy to maintain. Reports get generated instantly when required. • Communication improvement: E-Commerce provides ways for faster. efficient.• Inventory Management: Using E-Commerce. inventory management of products becomes automated. reliable communication with customers and partners .

Advantages:E-Commerce Advantages • E-Commerce advantages can be broadly classified in three major categories: • Advantages to Organizations • Advantages to Consumers • Advantages to Society .

An organization can easily locate more customers. Advantages to Organizations • Using E-Commerce. distribute. • E-Commerce helps organization to reduce the cost to create process. . • E-commerce improves the brand image of the company. best suppliers and suitable business partners across the globe. organization can expand their market to national and international markets with minimum capital investment. retrieve and manage the paper based information by digitizing the information.

• E-Commerce reduces paper work a lot. • E-Commerce helps to simplify the business processes and make them faster and efficient. Advantages to Organizations • E-commerce helps organization to provide better customer services. .

Customer can do transactions for the product or enquiry about any product/services provided by a company any time. any where from any location. . Advantages to Customers • 24x7 support. Here 24x7 refers to 24 hours of each seven days of a week. • E-Commerce application provides user more options to compare and select the cheaper and better option. • E-Commerce application provides user more options and quicker delivery of products.

• E-Commerce provides option of virtual auctions. • E-Commerce increases competition among the organizations and as result organizations provides substantial discounts to customers.• A customer can put review comments about a product and can see what others are buying or see the review comments of other customers before making a final buy. . • Readily available information. A customer can see the relevant detailed information within seconds rather than waiting for days or weeks.

Advantages to Society • Customers need not to travel to shop a product thus less traffic on road and low air pollution. education. . • E-Commerce has enabled access to services and products to rural areas as well which are otherwise not available to them. social services at reduced cost and in improved way. • E-Commerce helps reducing cost of products so less affluent people can also afford the products. • E-Commerce helps government to deliver public services like health care.

E-Commerce Disadvantages • E-Commerce disadvantages can be broadly classified in two major categories: • Technical disadvantages • Non-Technical disadvantages .

• Special types of web server or other software might be required by the vendor setting the e-commerce environment apart from network servers.Technical Disadvantages • There can be lack of system security. reliability or standards owing to poor implementation of e-Commerce. . network bandwidth might cause an issue as there is insufficient telecommunication bandwidth available. • Software development industry is still evolving and keeps changing rapidly. • In many countries.

• Sometimes. it becomes difficult to integrate E- Commerce software or website with the existing application or databases. • There could be software/hardware compatibility issue as some E-Commerce software may be incompatible with some operating system or any other component. .

• User resistance: User may not trust the site being unknown faceless seller. There could be delay in launching the E-Commerce application due to mistakes. .Non-Technical Disadvantages • Initial cost: The cost of creating / building E-Commerce application in-house may be very high. lack of experience. Such mistrust makes it difficult to make user switch from physical stores to online/virtual stores.

• Security/ Privacy: Difficult to ensure security or privacy on online transactions. • E-Commerce applications are still evolving and changing rapidly. • Lack of touch or feel of products during online shopping. . • Internet access is still not cheaper and is inconvenient to use for many potential customers like one living in remote villages.

in) •Business .Business (B2B)(metro.to .Types of Electronic commerce •Business .Consumer (C2C) •Consumer .Business (C2B) .to .Consumer (B2C) •Consumer .to .to .co.

B2B .

.

sells the end product to final customer who comes to buy the product at wholesaler's retail outlet. . As an example.B2B • Website following B2B business model sells its product to an intermediate buyer who then sells the product to the final customer. a wholesaler places an order from a company's website and after receiving the consignment.

Business .Consumer(B2C) .to .

A customer can view products shown on the website of business organization.to . Website will send a notification to the business organization via email and organization will dispatch the product/goods to the customer.Consumer(B2C) • Website following B2C business model sells its product directly to a customer. The customer can choose a product and order the same.Business . .

Consumer (C2C) .Consumer .to .

Consumer (C2C) • Website following C2C business model helps consumer to sell their assets like residential property.to . . motorcycles etc.Consumer . or rent a room by publishing their information on the website. Website may or may not charge the consumer for its services. cars. Another consumer may opt to buy the product of the first customer by viewing the post/advertisement on the website.

Business (C2B) .Consumer .to .

For example.Business (C2B) • In this model. Business organization who fulfills the consumer's requirement within specified budget approaches the customer and provides its services.to .Consumer . . Consumer places an estimate of amount he/she wants to spend for a particular service. comparison of interest rates of personal loan/ car loan provided by various banks via website. a consumer approaches website showing multiple business organizations for a particular service.

amazon.metro.priceline.com .in • C2B: www.eBay.com • B2B: www.co.com • C2C: www.Example of Electronic Commerce • B2C: www.

Measuring Benefits • Tangible benefits of electronic commerce initiatives include: • Increased sales • Reduced costs • Intangible benefits of electronic commerce initiatives include: • Increased customer satisfaction .

Business Consumers And selling to .E-commerce categories Business originating from . . . . . Publishers Publishersorder orderpaper paper Business supplies from paper supplies from paper companies companies Consumers Consumers aggregate aggregate to to bulk bulk purchasefrom purchase fromAmazon Amazon Amazon Amazon orders orders from from Consumers publishers publishers Consumers Consumersbuy buythousands thousands of Consumers resell of Harry Potter books from Harry Potter books from copies on eBay Amazon Amazon Single chain (or converging categories) of e-commerce .

Elements of E-Commerce • Database • Website(with all details) • Cookies • SSL(secure sockets layer) • Secure Certificate • Electronic payment system. • Merchant Account • Payment Gateway .

• The categories in your catalogs can have sub- categories. and products may appear in multiple categories. • You can then use this information to create. • Web pages that let your customers browse your collection of products. Catalog • A catalog represents a collection of products that you group into categories. . within a Commerce Server-enabled Web site.

the same shirt can have different colors.. for example. . • You can also create catalogs that display on your Web site in different languages and different currencies. so that when one is viewed. Catalog • You can define a product with variations. • You can link two products together. These are called a product variants. the other appears somewhere on your Web site page as an alternate suggestion.

• . • You can create category hierarchies and relationships among categories and products that are in the same catalog or in different catalogs. Catalog • Catalogs contain hierarchies and relationships that you use to organize the products in the catalog • It is used to make it easier for customers to navigate to the products that they want to buy.

• For example. known as child categories. the child categories appear. enabling customers to navigate quickly to the category that contains the products they want. another appears somewhere on your Web site page as an alternate suggestion. you can create a parent category that includes several other categories. • When customers navigate to the parent category. Catalog • For example. . if you have a large catalog. you could define an "alternate" relationship so that when one product is viewed.

Merchant account
• A merchant account is a type of bank account that allows
businesses to accept payments by payment cards, typically debit
or credit cards. A merchant account is established under an
agreement between an acceptor and a merchant acquiring bank
for the settlement of payment card transactions. In some cases a
payment processor, independent sales organization (ISO), or
member service provider (MSP) is also a party to the merchant
agreement. Whether a merchant enters into a merchant
agreement directly with an acquiring bank or through an
aggregator, the agreement contractually binds the merchant to
obey the operating regulations established by the
card associations.

• What is an Internet merchant account?
• It's an account with a bank that allows you to process
credit cards online.

How it works
•.
• Your Online Shop
• Payment Gateway
• InternetMerchant Account

How it works
• Your customer inputs credit card information in Your
Online Shop.
• The Payment Gateway encrypts data and sends it
securely to your Internet Merchant Account.
• The transaction is reviewed for authorisation by the
customer’s issuing bank.
• The result is encrypted and sent back through the
gateway.
• You get the results and decide whether or not to fulfil
the order.

• But in general. transform them into intermediate goods and final products. Supply chain management (SCM) • Supply chain management is the integration of the activities that procure(buy) materials and services. and deliver them through a distribution system. Supplychain management means the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole .

including:- • Product planning. cost and development • Manufacturing or service delivery • Marketing and sales • Inventory management • Shipping and payment • ERP provides an integrated view of core business processes. Enterprise resource planning (ERP) • Enterprise resource planning (ERP) is a business management software—usually a suite of integrated applications—that a company can use to collect. using common databases maintained by a database management system . store. often in real- time. manage and interpret data from many business activities.

JD Edwards etc.Costing and materials etc.BANN.SAP comes under ERP Package which gives business solutions to a business setup in all areas like Finance.).• ERP software is considered an enterprise application as it is designed to be used by larger businesses and often requires dedicated teams to customize and analyze the data and to handle upgrades and deployment.Oracle.Each vendor is specialized in one or many resources.Sales. • So Generally there are lot of ERP package vendors in the market like. Applications and Products.SAP(SAP is an acronym for Systems.  .

• SAP is an Enterprise Resource Planning (ERP) system by SAP AG.  According to German Language SAP Stands for Systeme. SAP software suite that is being implemented as part of re-engineering and Provides end to end solutions for financial. SAP • SAP stands for Systems Applications and Products in Data Processing. AG is derived from the German word AKtiengesellschaft. distribution. Present scenario large number of companies are using sap software for their day to day . company based out of Walldorf in Germany. logistics. inventories. Anwendungen und Produkte in Der Datenverarbeitung.

SAP suit contains SAP FI. SD. PA and other modules . SAP • SAP is beautifully and neatly integrated ERP software. HR. MM. SAP is a leader when it comes to easy integration among all the departments. PP. It provides industry specific solutions for different industries other then its basic SAP modules. CO.

. Procurement (obtain) • The act of obtaining or buying goods and services. The process includes preparation and processing of a demand as well as the end receipt and approval of payment.

paper documents are replaced with electronic documents like word documents. • Example Flipkart receipt send to customer when product is sent. EDI • EDI stands for Electronic Data Exchange. customers or any subsidiaries etc. spreadsheets etc. . • EDI stands for Electronic Data Exchange. In EDI. EDI is an electronic way of transferring business documents in an organization internally between its various departments or externally with suppliers.

EDI Documents • Following are few important documents used in EDI: • Invoices • Purchase orders • Shipping Requests • Acknowledgement • Business Correspondence letters • Financial information letters .

transfer of money from one account to another. either within a single financial institution or across multiple institutions. using a payment card such as a credit or debit card • Question: What does "EFT (electronic funds transfer)" mean? Answer: The transfer of money from one account to another by computer. EFT • Electronic funds transfer (EFT) is the electronic exchange. . • Cardholder-initiated transactions. through computer-based systems.

• Peachtree software: complete package for web front and managing order. dynamic order for b2b • A number of new startup vendor are starting to provide front end ec . • SBT corp Web trader is another c2b web ec package work in LAN • Great plain software: • a: Dynamic merchant for c2b.Back-end EC solution • All ERP vendor Like SAP. oracle have also announced Web Ec strategies and products like.

different kind of market like IT. • Now a days analogue and digital work together or analogue becoming digital. • Four types of convergence • Network convergence: different types of networks becoming capable of carrying multiple kinds of communication services. • Market convergence:. • You can watch television on Mobile and computer. Tele and media working together. . • Terminal convergence:.Media convergence • IT + Telecommunication + Media Technology = media convergence Mobile= telephone + high speed data + broadcast services.making it possible to watch TV on mobile.

radio. the Internet along with portable and interactive technologies through various digital media platforms . 3:-Market convergence:. 2:-Terminal convergence:. Four types of convergence: 1:-Network convergence: different types of networks becoming capable of carrying multiple kinds of communication services.making it possible to watch TV on mobile. Media convergence is the merging of mass communication outlets – print. television.different kind of market like IT. Tele and media working together.

partners. or customers • Internet2 • Experimental network built by a consortium of research universities and businesses 64 .• Intranets • Private internal networks • Extranet • Used when companies want to collaborate with suppliers.

are general purpose portals that are launch points for many people into the web • Numerous portals are specialized for specific interest groups 66 . Google.Web Portals • Web directories and search engines were some of the first portals • Portals or Web portals • Yahoo!. etc. AOL.

but does not establish a price • Stakeholders: • Bidders (i. potential buyers) • Sellers • Intermediaries • Shill bidders place bids on behalf of the seller to artificially inflate the price of an item 67 .Auction Overview • In an auction.e. a seller offers an item for sale..

Ecommerce • Understanding e-commerce is actually quite easy. There are 3 things that make up an e-commerce transaction: •   A shopping cart •   A payment gateway •   A merchant account .

The Shopping Cart
• The shopping cart software is what keeps track of the
products your customers want to purchase as they surf
through your website.
• It is the software that powers the "Add to Cart" buttons
that you have probably seen on many e-commerce
websites.
• Some merchants offer services and do not have a product
based website. Even if you don't sell products on your site,
you will still have some type of software that calculates
how much the customer is supposed to pay you.

The Shopping Cart
• Think of the shopping cart as the cashier at the grocery
store who rings through your groceries.
• It is their job to figure out how much money you are
supposed to pay. In an e-commerce website, the
software performs this job and will determine how much
you owe for the sale.
• Once the shopping cart has figured out how much you
owe for the sale, it needs to send this information
somewhere so the credit card can be processed.
• This brings us to the second part of every e-commerce
transaction - the payment gateway.

The Payment Gateway
• The function of the payment gateway is actually quite easy
to understand.
• When you go to a gas station and pay with your credit card,
the attendant swipes your card through a payment terminal.
• The payment gateway does the same job as that little
electronic device, except because it's an online transaction
the credit card is not physically swiped through a terminal.
Instead the shopping cart securely encrypts the credit card
and order details and sends it off to the payment gateway
to be processed.

the card issuing bank will return an authorization and the funds will be debited from the customers credit card balance. •  .• The payment gateway will electronically contact the customers card issuing bank and check to see if they have sufficient credit to pay for the sale. If so. When those funds are captured from the customers credit card account. they must go somewhere. This is where the final part of an e-commerce transaction comes in .the merchant account.

Then. • Funds from credit card sales are deposited into a special type of bank account -. • Specifically.The Merchant Account • When the payment gateway processes the transaction and the customers credit card is charged for the sale. That really is all a merchant account is . that money has to go somewhere.called a "merchant account". it needs to deposited into a bank account.a bank account that is used to hold funds captured from your credit card sales. . once per week the money is sent out of your merchant account into your regular business bank account.

authentication. For example. • PKI utilises two core elements. and services delivery can all be achieved through the use of PKI. . confidentiality. secure and legally binding emails and Internet based transactions. Public Key Cryptography and Certification Authorities. procedures and policies that collectively provide a framework for addressing the previously illustrated fundamentals of security . • PKI enables people and businesses to utilise a number of secure Internet applications. non-repudiation and access control.What is PKI? • Public Key Infrastructure (PKI) refers to the technical mechanisms. integrity.

• Encryption is the conversion of data into seemingly random. • The only way to transform the data back into intelligible form is to reverse the encryption (known as decryption). Its meaningless form ensures that it remains unintelligible to everyone for whom it is not intended. Public Key Cryptography encryption and decryption is performed with Public and Private Keys. even if the intended have access to the encrypted data. incomprehensible data. A core aspect of Public Key Cryptography is the encryption and decryption of digital data.• Encryption and Decryption • The benefits of PKI are delivered through the use of Public Key Cryptography. .

It is made available to everyone via a publicly accessible repository or directory. On the other hand.• Public Key and Private Keys •  • The Public and Private key pair comprise of two uniquely related cryptographic keys (basically long random numbers).Public. . the Private Key must remain confidential to its respective owner. 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 .

• Because the key pair is mathematically related. . he will encrypt the data with Alice's Public Key. whatever is encrypted with a Public Key may only be decrypted by its corresponding Private Key and vice versa. and wants to be sure that only Alice may be able to read it. Only Alice has access to her corresponding Private Key and as a result is the only person with the capability of decrypting the encrypted data back into its original form. it will remain confidential as they should not have access to Alice's Private Key. it is possible that only Alice can decrypt the encrypted data. Even if someone else gains access to the encrypted data. • As only Alice has access to her Private Key. • For example. if Bob wants to send sensitive data to Alice.

NetBill • Not an ordinary payment system. consisting of a set of protocols. Microsoft. RSA. CyberCash.Secure Electronic Transaction(SET) • An application-layer security mechanism. • Companies involved:– MasterCard. Netscape. IBM. Visa. • Protect credit card transaction on the Internet. • It has a complex technical specification .

Secure Electronic Transaction (SET): Protocol • Confidentiality: All messages are encrypted • Trust: All parties must have digital certificates • Privacy: information made available only when and where necessary • Developed by Visa and MasterCard • Designed to protect credit card transactions .

ie. • A web portal is the entrance (gate) to the Web. One can enter the web from many different portals (gates) and either dive into the portal inner web or move to other portals in the web. • A website is a general term for any collection of pages on the same domain or sub-domain. they are principally links signposting other sites.  . • A web portal is generally used for a 'gateway' site or set of pages . Website vs Webportal • • A Webportal is also a type of website but it differs in content and services from a typical website that provides only specialized information. • It's also important to note that a "Web Portal" is also a website. Yahoo is an good example for web portal.

• If the customer is able to tell PayPal the value of these deposits. PayPal makes two small-amount (less than $1) deposits to the account. one has to obtain a PayPal account. • In order to use PayPal. then the customer is assumed to be a legitimate user of the account. • The validity of a checking account is checked as follows: the customer gives PayPal their account number. which is associated either with the customer's credit card or with their regular bank account. . PayPal • PayPal is an electronic payment system which can transfer money between its accounts.

• The ease of use and the fact that no credit card is required to use it makes PayPal increasingly popular. PayPal sends an e-mail message to both the initiator and the recipient of the transaction. such as eBay auctions. they must have a PayPal account.• In order for the person to retrieve the money. . • To avoid fraud. • PayPal is used to settle online auctions.

you can send money to anyone with an email address. • Enter the recipient’s email address and the amount you want to send.• With PayPal. • Click Continue. Here’s how to send money: • Log in to your PayPal account. • Click Send Money. • Select Purchase or Personal. . then choose the reason for the payment.

• How will the person who paid know that I got their payment? • A notification of payment will go to the email address . • PayPal acts as the middleman holder of money. • Add a message (if you want to). and shipping address. If you don’t have enough money in your PayPal balance. • Paypal will send the recipient an email to let them know that you sent them money. the payment method. paypal will use the payment method you select. then click Send Money.• Review the amount. • When you send money. we explain how to sign up for one. If they don’t have a PayPal account. PayPal members must confirm their email address before the money will be credited to their PayPal account. Paypal use your PayPal balance first.

you register an email address with PayPal that you will use for all transactions through PayPal. • Select a password. . • PayPal will then make a "test" withdrawal of one cent from your bank account to complete/confirm the link. PayPal Requirements You need no special technology nor a business license to send/receive money through Paypal. The only requirements are: • a valid email address. • a valid credit card or bank account • When you open a PayPal account. and provide your bank account information and credit card information to be used as "funding sources" for PayPal transactions.

Once a buyer sets up a Paypal account.   • PayPal is Free for Buyers and for Sending Money to Someone Else. PayPal makes its profit by charging a percentage of the money it transfers for you. . or both. then it costs nothing to send money to a vendor. PayPal does not charge buyers to send money. The funds are withdrawn from the user's credit card or bank account. How does PayPal make money? • As a middleman financial broker.   • PayPal Commonly Charges Money from Receivers (Sellers) :PayPal will only charge you to receive funds(money is received by the seller so paypal only charge from seller not the buyer but for using paypal buyer • If you are sending money to a friend or family member (someone who is not a registered seller). you can opt to pay for the PayPal surcharge yourself.

mainly through advertising campaigns with a consistent theme. whereas an eBrand is a digital representation of yourself online. or any other feature that identifies one seller’s good or service as distinct from those of other sellers. term. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. • “Brand is the “name. symbol. • A personal brand is how you market yourself to others.”[ . Branding • The process involved in creating a unique name and image for a product in the consumers' mind. design.

• Few things to consider for your online business when determining your e-Branding are . E-Branding • Your online business website may prove that you’re knowledgeable on the latest technology but on the reverse side. it can damage your business image if your site does not provide a good user experience and is difficult to load or navigate around.

• The general rule of thumb is that you have less than 5 seconds to capture the attention of a visitor . • where else they found your website links. E-Branding • How quickly your customers can load your website. • How easy it is to navigate around and understand your website. etc. • How effective are your e-letters. • How easily they can purchase or contact you.

Web Hosting • 'Hosting' is a service provided by a vendor which offers a physical location for the storage of web pages and files. they rent physical space on their servers allowing webpages to be viewed on the Internet. . • Think of a Web Hosting Company as a type of landlord.

server software. TCP/IP protocols and the Web site content. What is a Web Server? • Generally used in reference to the computer hardware that provides World Wide Web services on the Internet. Web servers process requests from Browsers for web pages and serves them up via HTTP. . a Web server includes the hardware. operating system.

Hosting server • A server dedicated to hosting a service or services for users. Hosting servers are most often used for hosting Web sites but can also be used for hosting files.  Hosting servers can be shared among many clients (shared hosting servers) or dedicated to a single client (dedicated servers). . games and similar content. images.

Types of Hosting account or Hosting service • Free Web hosting • Shared Hosting • Dedicated server • Clustered hosting • Colocation web hosting service .

Your choices of monetization strategies will be restricted because free services will run their own ads to earn money. .Free Web hosting • Free services work best for private Web pages. small-audience blogs and static websites because you have limited control.

Prices are more affordable for smaller needs. and you do get better administrative control and more monetization options. Sharing a server results in some security risks.and database-support options. smaller processing capacity and fewer software. Shared Hosting These services share dedicated server resources with multiple users. .

Basically. This is the best option if you plan on generating lots of traffic or use special software. . Dedicated server • A dedicated server provides robust features. full administrative access and unlimited use of software and applications. but you are responsible for your own security and maintenance. dedicated server hosting is like running a branch office where you are responsible for security and maintenance issues.

but it might be the best choice for high-traffic websites that target global customers. . the option provides high availability for multiple website applications. . Clustered hosting Clustered hosting offers redundant servers to take over when one server goes off-line. This solution can be expensive. Highly scalable.

cloud servers or even an hybrid of both. This is a very robust solution .You can easily shut down one server for maintenance while assigning its load to other servers. A cluster can be assemble from a bunch of dedicated servers.

you take it physically to the location of the colocation provider and install it in their rack or you rent a server machine from the colocation provider. • That company then provides an IP. Colocation hosting • Colocation allows you to place your server machine in someone else's rack and share their bandwidth as your own. bandwidth. and power to your server. The difference being that you own the hardware. you access it much like you would access a Web site on a hosting provider. Once it's up and running. • It generally costs more than standard Web hosting. • Once you have a machine set up. but less than a comparable amount of bandwidth into your place of business. .

E-commerce Architecture .

• n the software world Tiers/Layers should have some or all of the following characteristics: • Each tier/layer should be able to be constructed separately. .Tier • What is a "tier"? • A "tier" can also be referred to as a "layer". possibly by different teams of people with different skills.

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chop it up into smaller units and call that a layer cake because each unit is indistinguishable from the other units. • There must also be some sort of boundary between one tier and another. • Each tier/layer should not be able to operate independently without interaction with other tiers/layers. for example. • Each tier/layer should contribute something different to the whole. . You cannot take a single piece of cake.• Several tiers/layers should be able to be joined together to make a whole "something". A chocolate layer cake. has layers of chocolate and cake.

. • Data Access logic .communicates with the database by constructing SQL queries and executing them via the relevant API. business rules and task-specific behaviour.• Presentation logic . • Business logic .the user interface (UI) which displays data to the user and accepts input from the user. In a web application this is the part which receives the HTTP request and returns the HTML response.handles data validation.

Three tier ecommerce architecture .

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• It defines actually how e-commerce implemented. • It defines important components that should be present to do some transaction • However determining a right framework for ecommerce solutions is a major challenge. • Most of the frameworks are quite general and usually depend on the country or organization needs. how online trading or business can be done. . E-commerce Framework • Framework tells about the detail of how e-commerce can take place.

• The Internet applications layer provides support systems for the Internet economy through a variety of software applications . Four Layer Framework • Barua et al. • It is Largely made up of telecommunication companies and other hardware manufacturers such as computer and networking equipment.6 proposed a four-layer framework. • The Internet infrastructure layer addresses the issue of backbone infrastructure required for conducting business via the net.

. how online trading or business can be done. • Most of the frameworks are quite general and usually depend on the country or organization needs. • It defines actually how e-commerce implemented. E-commerce Framework • Framework tells about the detail of how e-commerce can take place. • It defines important components that should be present to do some transaction • However determining a right framework for ecommerce solutions is a major challenge.

Four Layer Framework • Barua et al.6 proposed a four-layer framework. • It is Largely made up of telecommunication companies and other hardware manufacturers such as computer and networking equipment. • The Internet applications layer provides support systems for the Internet economy through a variety of software applications . • The Internet infrastructure layer addresses the issue of backbone infrastructure required for conducting business via the net.

the Internet commerce layer covers companies that conduct business in an over all ambience provided by the other three layers . • Finally.• The Internet intermediary layer includes a host of companies that participate in the market making process in several ways.

Zwass’s Hierarchical Framework • Zwass (1998) presented a very comprehensive hierarchical framework of E-Commerce.Services.Products and structures • and • seven functional levels . and • 3:. • 2:.Infrastructure. consisting of three meta-levels: • 1:.

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• which use a similar “layering” approach. such as the OSI Reference Model.• This model clearly builds upon the work undertaken by the developers of the various “layered network protocols” or “architectures”. with significant positive implications for software developers. which have been developed to explain the • inter-connection of telecommunications networking. . • This separation of tasks means that a change at one layer does not normally affect the other layers. where each layer has a clearly defined area of functionality.

The 3-Tier Architecture • The 3-Tier Architecture This is where the code for each area of responsibility can be cleanly split away from the others Note here that the presentation layer has no direct communication with the data access layer .it can only talk to the business layer. .

Requests and Responses in the 3 Tier Architecture .

This is usually a person. . • The Presentation layer can only receive requests from. and return responses to. Thus business logic can only reside in the Business layer. an outside agent. but may be another piece of software. • Each layer may only contain code which belongs in that layer.The Rules of the 3 Tier Architecture • The code for each layer must be contained with separate files which can be maintained separately. and data access logic in the Data Access layer. presentation logic in the Presentation layer.

. and receive responses from. It cannot have direct access to either the database or the Data Access layer. and return responses to. and receive responses from. • The Business layer can only receive requests from. the Data Access layer.• The Presentation layer can only send requests to. and return response to. the Business layer. It cannot issue requests to anything other than the DBMS which it supports. the Presentation layer. It cannot access the database directly. • The Business layer can only send requests to. • The Data Access layer can only receive requests from. the Business layer.

which works very well for networking. for example. • The layering approach. however. are there seven layers? • We believe that the components of Electronic Commerce are constantly changing over time and as particular technologies are pressed into service. • The disadvantage of this approach. Disadvantage of this approach • The use of a similar approach to analysing E-Commerce would have equivalent benefits in terms of separating out tasks and enabling solutions to be developed without impact on other E-Commerce activities. . Why. is that there is less flexibility because of the sequence of the layers. are thus less applicable to the very mutable functions and activities of E-Commerce. where the functions and activities can be fully described and do not evolve outside the limits of the model.

and common business services) • on top of which they place E-Commerce Applications. to support four infrastructures • (network. they use the metaphor of “pillars” (public policy and technical standards). multimedia content. . • Using a very different scheme from that taken by Zwass.Kalakota and Whinston's “Pillars” Framework • Kalakota and Whinston have also developed a generic approach to providing a framework for Electronic Commerce (Kalakota & Whinston 1996). messaging.

• We believe that this model is useful for those who are approaching Electronic Commerce for the first time – • but do not feel that it can be used as a foundation for more detailed analytical study.• These authors suggest that the elements of a framework for E- Commerce are a convergence of technical. This model is simple to understand and visually attractive – but it lacks theoretical depth and • is not particularly useful for researchers endeavouring to incorporate it into empirical research projects. policy and business concern. .

• This descriptive framework takes as its axes the “location of the application user” and “type of relationship”.Commerce based upon type of relationship and internal/external focus. • thus essentially distinguishing between intranet-based applications and • those which use either an extranet or the public Internet to provide access to the applications concerned. into new and ongoing relationships – it categorises E-Commerce applications into four categories . within these. • Such a model is clearly useful to companies which wish to classify their trading partners into internal and external and. Riggins and Rhee's Domain Matrix • Riggins and Rhee (1998) have used the Harvard matrix approach to identify a view of E.

• It would be more difficult to use such a model in the development of. the model is limited in its identification of E-Commerce types being primarily focused upon trading relationships. a government-sponsored virtual community – such as Victoria’s Warrnambool on the Web project. say. • Despite these useful characteristics.• which can be helpful in identifying relationships and technology needs. (Warrnambool on the Web 1999) . however.

• If you look carefully at those layers you should see that each one requires different sets of skills: • The Presentation layer requires skills such as HTML. . • The Business layer requires skills in a programming language so that business rules can be processed by a computer. • The Data Access layer requires SQL skills in the form of Data Definition Language (DDL) and Data Manipulation Language (DML). plus UI design. plus database design. CSS and possibly JavaScript.

• It defines important components that should be present to do some transaction • However determining a right framework for ecommerce solutions is a major challenge. . • It defines actually how e-commerce implemented. E-commerce Framework • Framework tells about the detail of how e-commerce can take place. • Most of the frameworks are quite general and usually depend on the country or organization needs. how online trading or business can be done.

• It is Largely made up of telecommunication companies and other hardware manufacturers such as computer and networking equipment. Four Layer Framework • Barua et al. • The Internet applications layer provides support systems for the Internet economy through a variety of software applications . • The Internet infrastructure layer addresses the issue of backbone infrastructure required for conducting business via the net.6 proposed a four-layer framework.

• Finally.• The Internet intermediary layer includes a host of companies that participate in the market making process in several ways. the Internet commerce layer covers companies that conduct business in an over all ambience provided by the other three layers .

• services. consisting of three meta-levels: • infrastructure. and • products and structures and • seven functional levels .Zwass’s Hierarchical Framework • Zwass (1998) presented a very comprehensive hierarchical framework of E-Commerce.

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which have been developed to explain the • inter-connection of telecommunications networking. . • which use a similar “layering” approach.• This model clearly builds upon the work undertaken by the developers of the various “layered network protocols” or “architectures”. with significant positive implications for software developers. • This separation of tasks means that a change at one layer does not normally affect the other layers. where each layer has a clearly defined area of functionality. such as the OSI Reference Model.

it can only talk to the business layer.The 3-Tier Architecture • The 3-Tier Architecture This is where the code for each area of responsibility can be cleanly split away from the others Note here that the presentation layer has no direct communication with the data access layer . .

and data access logic in the Data Access layer.The Rules of the 3 Tier Architecture • The code for each layer must be contained with separate files which can be maintained separately. • The Presentation layer can only receive requests from. presentation logic in the Presentation layer. but may be another piece of software. This is usually a person. an outside agent. • Each layer may only contain code which belongs in that layer. Thus business logic can only reside in the Business layer. . and return responses to.

• The Data Access layer can only receive requests from. and return response to. • The Business layer can only receive requests from.• The Presentation layer can only send requests to. • The Business layer can only send requests to. It cannot have direct access to either the database or the Data Access layer. and receive responses from. the Presentation layer. the Data Access layer. . It cannot access the database directly. the Business layer. and receive responses from.

. are there seven layers? • We believe that the components of Electronic Commerce are constantly changing over time and as particular technologies are pressed into service. • The layering approach. • The disadvantage of this approach. is that there is less flexibility because of the sequence of the layers. for example. where the functions and activities can be fully described and do not evolve outside the limits of the model. Disadvantage of this approach • The use of a similar approach to analysing E-Commerce would have equivalent benefits in terms of separating out tasks and enabling solutions to be developed without impact on other E-Commerce activities. are thus less applicable to the very mutable functions and activities of E-Commerce. which works very well for networking. however. Why.

they use the metaphor of “pillars” (public • policy and technical standards). • Using a very different scheme from that taken by Zwass. to support four infrastructures • (network. policy and business concern.Kalakota and Whinston's “Pillars” Framework • Kalakota and Whinston have also developed a generic approach to providing a framework for Electronic Commerce (Kalakota & Whinston 1996). messaging. . This model is simple to understand and visually attractive – but it lacks theoretical depth and is not • particularly useful for researchers endeavouring to incorporate it into empirical research • projects. multimedia content. • We believe that this model is useful for those who are approaching Electronic Commerce • for the first time – but do not feel that it can be used as a foundation for more detailed • analytical study. • These authors suggest that the elements of a framework for E-Commerce are a convergence of technical. and common business services) • on top of which they place E-Commerce Applications.

• Such a model is clearly useful to companies which wish to classify their trading partners into internal and external and. into new and ongoing relationships – it categorises E-Commerce applications into four categories • which can be helpful in identifying relationships and technology needs. •  . • This descriptive framework takes as its axes the “location of the application user” and “type of • relationship”. Riggins and Rhee's Domain Matrix • Riggins and Rhee (1998) have used the Harvard matrix approach to identify a view of E. thus essentially distinguishing between intranet-based applications and • those which use either an extranet or the public Internet to provide access to the • applications concerned.Commerce based upon type of relationship and internal/external focus. within these.

the model is limited in its identification of • E-Commerce types being primarily focused upon trading relationships. (Warrnambool on the • Web 1999) . a government-sponsored virtual • community – such as Victoria’s Warrnambool on the Web project. It would be more • difficult to use such a model in the development of. say.• Despite these useful characteristics. however.

Requests and Responses in the 3 Tier Architecture .

• The Business layer requires skills in a programming language so that business rules can be processed by a computer. • The Data Access layer requires SQL skills in the form of Data Definition Language (DDL) and Data Manipulation Language (DML). CSS and possibly JavaScript. plus UI design. .• If you look carefully at those layers you should see that each one requires different sets of skills: • The Presentation layer requires skills such as HTML. plus database design.

Tier • What is a "tier"? • A "tier" can also be referred to as a "layer". possibly by different teams of people with different skills. • n the software world Tiers/Layers should have some or all of the following characteristics: • Each tier/layer should be able to be constructed separately. .

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for example. • Each tier/layer should not be able to operate independently without interaction with other .• Several tiers/layers should be able to be joined together to make a whole "something". • Each tier/layer should contribute something different to the whole. has layers of chocolate and cake. chop it up into smaller units and call that a layer cake because each unit is indistinguishable from the other units. A chocolate layer cake. • There must also be some sort of boundary between one tier and another. You cannot take a single piece of cake.

communicates with the database by constructing SQL queries and executing them via the relevant API. In a web application this is the part which receives the HTTP request and returns the HTML response. • Business logic . • Data Access logic .• Presentation logic . .the user interface (UI) which displays data to the user and accepts input from the user. business rules and task-specific behaviour.handles data validation.

Three tier ecommerce architecture .

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• That why name given to numeric which difficult to remember.17. and Internet Protocol. • The universal resource locator. • Ip could be 232. or URLs. for example. addresses. However. address is different than a domain name • The IP address is an actual set of numerical instructions. and it contains extremely detailed information. or IP.22.What is a Domain Name? • New computer users often confuse domain names with universal resource locators. humans cannot understand or use that code. • domain name as a nickname for that code so that can remember easily. or IP. • The domain name is one of the pieces inside of a URL. . • An Internet Protocol.43. is an entire set of directions. or URL.

every Web server requires a Domain Name System (DNS) server to translate domain names into IP addresses . the domain name is pcwebopedia. • Because the Internet is based on IP addresses. not domain names.pcwebopedia. in the URL http://www. • Every domain name has a suffix that indicates which top level domain (TLD) it belongs to. There are only a limited number of such domains.• For example.com.html.com/index.

Government agencies •edu .Organizations (nonprofit) •mil .Thailand .For example: •gov .Educational institutions •org .Canada •th .Network organizations •ca .commercial business •net .Military •com .

and look at the address in the web browser. • it will likely begin with the following: http://. This means that the web site is talking to your browser using the regular 'unsecured' language. your computer is talking to the web site in a secure code that no one can see. • This is why you never ever enter your credit card number in an http web site • But if the web address begins with https://. HTTPS • The "S" in HTTPS indicates a secure site.Difference between HTTP and HTTPS • HTTP. • If you visit a web site or web page. .

• the Web is the most popular dish on the menu • The World Wide Web. • the Web is a part within the container. is a massive collection of digital pages. . • This usage is technically incorrect. or "Web" for short. • The Internet is the large container. • the Net is the restaurant. Difference Between the Internet and the WWW? • People commonly use the words "Internet" and "Web" interchangeably.

• the Web is based on hypertext transfer protocol. • So the Web is just a portion of the Internet . is also used for e-mail. • The Internet. instant messaging and FTP. not the Web. • But another protocol you can use like ftp etc. which relies on SMTP. • Only http is www another is not.

• and the hyphen ('-').Characteristics of Domain Name • Domain names are restricted to • only the ASCII letters 'a' through 'z' (in a case- insensitive manner). • the digits '0' through '9‘. .

COM. and . Steps-to- make-your-own-website is the second-level domain name and represents the organization or entity behind the internet. Second Level Domain name must be registered with an Internet Corporation for Assigned Names and Numbers (ICANN)- accredited registrar. Top Level Domain -  A top-level domain (TLD) is the part of the domain name located to the right of the dot. . .BIZ.IN etc. The second-level domain name is the part of the domain name located to the left of the dot.INFO. Parts of a Domain Name • Each domain name consists of two parts. • Second Level Domain . . The most common top-level domains are .NAME and .ORG. . Some other popular top-level domains are ..NET.

and . • Generic top level maintained by IANA and country code top level reserved for a country.COM.IN etc. • Second Level Domain .NAME and .. . . The second-level domain name is the part of the domain name located to the left of the dot. . Some other popular top-level domains are .ORG. .NET.INFO.BIZ. • Third level domain name:-which are written immediately to the left of a second level Domain. Domain Name Level • Top Level Domain -  A top-level domain (TLD) is the part of the domain name located to the right of the dot. The most common top-level domains are . • Each level is separated by a dot or period symbol.

com.com is the main domain name.com that handles their news section of the website as news.google. etc.google.google.google.com. What is a Subdomain? • A subdomain is a domain name that is a part of the main domain. • like maps. . • They have separated news. • For example www.com • Similarly they have other subdomains too which are other sections of their main website.google. • It is used to organize a website with regard to various functions. sections. topics. news.

221. • The Domain Name System (DNS) is a hierarchical distributed naming system for computers. or any resource connected to the Internet or a private network . • it is easier to name an e-mail address as service@sitesell.com than service@216. • It is done because it is relatively easier to remember words than numbers. services. What is DNS? • DNS is the acronym for Domain Name System. • This system translates the number format of your IP address to the word format.39.95.

and to provide the receiver with the means to encode a reply. • The most common use of a digital certificate is to verify that a user sending a message is who he or she claims to be. • The CA issues an encrypted digital certificate containing the applicant's public key and a variety of other identification information. . Digital Certificate • An attachment to an electronic message used for security purposes • It is trusted ID card in electronic form that binds a website’s public encryption key to their identity for the purpose of public trust. • An individual wishing to send an encrypted message applies for a digital certificate from a Certificate Authority (CA).

• it is easy to intercept and read as it travels across the Internet.• In the physical world. Instead of risking disclosure of your private email message. • one option for safeguarding them is to use a digital certificate . you protect your written correspondence by putting it in an envelope before posting. In the online world. sending an email message is like sending a postcard.