ELECTRONIC COMMERCE

GROUP MEMBERS:
 ARIZ IQBAL
 HASSAN SAJJAD
 MUDASSIR HANIF
 SANA HAFEEZ
 YASMEEN WALAYAT
 CONTENT
 DEFINTION OF E-COMMERCE
 HISTORY OF E-COMMERCE
 PROCESS OF E-COMMERCE
 TYPES OF E-COMMERCE MODELS
 TYPES OF E-COMMERCE ORGANIZATIONS
 TYPES OF E-COMMERCE WEBSITES
 TYPES OF E-COMMERCE PAYMENTS
 ADVANTAGES AND DISADVANTAGES OF E-COMMERCE
 COMPARISION BETWEEN TRADIATIONAL COMMERCE AND E-COMMERCE
 BUSSINESS APPLICATIONS
 CONCLUSION
 DEFINTION
E-commerce is a type of business model that focuses on doing commercial
transactions through electronic networks such as the Internet.
E-commerce stands for ‘electronic commerce.

 Online shopping
 Internet Banking
 Electronic payments
 Purchasing tickets online
 Online Auctions
 HISTORY

 The history of E-Commerce begins with

 1970s
E- commerce meant the facilitation of commercial transactions electronically, using technology such as
Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT), allowing businesses to send
commercial documents like purchase orders or invoices electronically.

 1980s
The growth and acceptance of credit cards, Automated teller machines (ATM), Telephone banking
and Airline reservation system was introduced in market.

 1990s
The Internet commercialized and users flocked to participate in the form of dot-coms , or Internet start-
ups and Innovative applications ranging from online direct sales to e-learning experiences.

 2000s
Many European and American business companies offered their services through the World Wide Web.
And Since 2000, People began to associate a word “e-commerce”
 PROCESS

 A consumer uses Web browser to connect to the home page of a merchant's Web
site on the Internet.
 Then the consumer browses the catalog of products featured on the site and
selects items to purchase. The selected items are placed in the electronic
equivalent of a shopping cart.
 When the consumer is ready to complete the purchase of selected items, online
system provides a bill-to and ship-to address for purchase and delivery.
 When the credit card number is validated and the order is completed at the
Commerce Server site, the merchant's site displays a receipt confirming the
customer's purchase.
 At last! the Commerce Server site then forwards the order to a Processing
Network for payment processing and fulfilment.
 TYPES OF E-COMMERCE MODELS
 Electronic commerce can be classified into several categories. The basis for this simple
classification is the parties that are involved in the transactions. So the some basic types
of electronic commerce models are as follows,
 Business-to-business (B2B)
 Business-to-consumer (B2C)
 Business-to-employee (B2E)
 Business-to-government (B2G)
 Government-to-business (G2B)
 Government-to-government (G2G)
 Government-to-citizen (G2C)
 Consumer-to-government (C2G)
 Consumer-to-business (C2B)
 In Business-to-business (B2B)
When a business sells a good or service to another business is known as B2B ( Like A business sells
software-as-a-service for other businesses to use)
Some Business to Business websites includes:
Alibaba.com, e World Trade.com, Global Sources.com And Made-in-China.com

 In Business-to-consumer (B2C)
When a business sells a good or service to an individual consumer is known as B2C (like You buy
a pair of shoes from an online retailer).
Some Business to consumer’s websites includes:
Zappos.com, daraz.pk, starbucks.com, Spotify.com and etc
 In Business-to-employee (B2E)
Electronic commerce uses an intra-business network which allows companies to provide
products and/or services to their employees.
Examples of B2E applications include:
• Online insurance policy management
• Corporate announcement dissemination
• Online supply requests
• Special employee offers
• Employee benefits reporting

 In Business-to-government (B2G)
(B2G) is a business model that refers to businesses selling products, services or information
to governments or government agencies.
Example of B2G includes:
B2G able Business Pay taxes, File reports, or sell goods and services to Govt. agencies.
 In Government-to-business (G2B)
(G2B) is a business model that refers to government providing services or information to
business organization.
For Example:
Government uses G2B model website to approach business organizations. Such websites
support auctions, tenders and application submission functionalities.

 In Government-to-government (G2G)
Government to government (G2G) is the electronic sharing of data and/or information
systems between government agencies, departments or organizations.
For Example:
G2G Helps in communication between two federal organizations (e.g. document exchange, sharing
public administration registers, maintain cadastral system, etc.).
 In Government-to-citizen (G2C)
Government to citizen is a business models that provides various services to citizens.
For Example:
An example would be electronic benefits transfer (EBT), in which government transfers
Social Security, pension, and other benefits directly to recipients’ bank accounts or to
smart cards.

 In Consumer-to-government (C2G)
Electronic commerce refers to the activities performed between the government and its
citizens or consumers.
Its Includes paying taxes, registering vehicles, and providing information and services.

 In Consumer-to-business (C2B)
When a consumer sells their own products or services to a business or organization (Like
An influencer offers exposure to their online audience in exchange for a fee, or a
photographer licenses their photo for a business to use).
 TYPES OF E-COMMERCE ORGANIZATIONS

 There are three types of Ecommerce Organizations are:

 1- Bricks and mortar
 2- Virtual (pure play)/(Pure E-Commerce)
 3- Click and Mortar (Partial E-Commerce)
 1- Bricks and mortar:
Pure physical organization(companies) are referred to as brick and mortar.
For Example:
It includes: Physical shops including medical stores, general store, in our area’s
 2- Virtual (pure play)/(Pure E-Commerce)
Organization that conduct their business activities solely online are virtual organization
and also known as pure E-commerce.
For Example:
It includes Freelancer and upwork.com both organization perform their activity solely
online.
 3- Click and Mortar (Partial E-Commerce)
Organization that conduct their business activities online and physically both are known
as click and mortar organization and it is also known as partial E- commerce.
For Example:
Buying mobile on amazon, amazon will have to send parcel to you physically.
 TYPES OF E-COMMERCE WEBSITES
 1- Physical Goods Ecommerce Website:
Retailers who have brick and mortar stores can host their store online to sell to a broader audience.
This option is great for retailers who want to increase sales but not physical stores.
For Example:
It Includes:
Walmart,
Flipkart ,
Nike,
Puma,
Adidas
 2- Service-based Ecommerce Website
Freelancing, and pure online service providers have become a huge trend recently with websites
created as the link between a freelance and their potential clients.
 3- Digital Products Ecommerce Website
Companies that sell digital products like software or video games don’t need physical stores to sell their
products as it only involves the customer downloading the product. This type of ecommerce business
thrives as remaining solely online drives down costs making it easier to be profitable.
For Example:
Websites includes:
Easy Digital Downloads.com
File hippo.com
Softonic.com
Microsoft windows

 4- Drop shipping Ecommerce Website

Slightly different to physical goods stores, drop shipping is where merchants sell goods to customers on
their online store but they don’t hold any inventory. Instead they find a supplier to sell goods from, wait for
customers to buy these products, and the supplier fulfills the order for them.
For Example:
Alibaba.com
Ebay.com
All express.com
Olx.com
 TYPES OF E-COMMERCE PAYMENTS
 Types Of E-Commerce Payments:
When you purchase goods and services online, you pay for them using an electronic
medium. This mode of payment, without using cash or cheque, is called an e-commerce
payment system and is also known as online or electronic payment systems.
The different types of e-commerce payments in use today are:
 Credit Card
 Debit Card
 E-Wallet
 Internet banking
 Mobile Payment
 1- Credit Card
The most popular form of payment for e-commerce transactions is through credit cards.
It is simple to use; the customer has to just enter their credit card number and date of
expiry in the appropriate area on the seller’s web page.
For Example:
Credit card accept as payment mode around the world Such as a Visa or a MasterCard,
has a preset spending limit based on the user’s credit limit.
 2- Debit Card
Debit cards are the second largest e-commerce payment medium in Pakistan. Customers
who want to spend online within their financial limits prefer to pay with their Debit
cards.
For Example:
Debt card removes the amount of the charge from the cardholder’s account and transfers
it to the seller’s bank.
 - E-Wallet
E-Wallet is a prepaid account that allows the customer to store multiple credit cards,
debit card and bank account numbers in a secure environment. This eliminates the need
to key in account information every time while making payments.
For Example:
Some E-wallets includes:
Payza, Payeer, Paypal, Pioneer, and webmoney
 4- Internet Banking
This is another popular way of making e-commerce payments. It is a simple way of
paying for online purchases directly from the customer’s bank. Internet banking does not
require the user to have a card for payment purposes but the user needs to register with
his/her bank for the internet banking facility.
 5- Mobile Payment
One of the latest ways of making online payments are through mobile phones. Instead of
using a credit card or cash, all the customer has to do is send a payment request to
his/her service provider via text message; the customer’s mobile account or credit card is
charged for the purchase.
It Includes : Easy Paisa, Ubl omni, Mobi cash, U paisa and zong pay max
ADVANTAGES AND DISADVANTAGES OF E-COMMERCE
 Advantages of E-Commerce
 E-commerce provides the sellers with a global reach. They remove the barrier of place
(geography). Now sellers and buyers can meet in the virtual world, without the hindrance
of location.
 Electronic commerce will substantially lower the transaction cost. It eliminates many
fixed costs of maintaining brick and mortar shops. This allows the companies to enjoy a
much higher margin of profit.
 It provides quick delivery of goods with very little effort on part of the customer.
Customer complaints are also addressed quickly. It also saves time, energy and effort for
both the consumers and the company.
 One other great advantage is the convenience it offers. A customer can shop 24×7. The
website is functional at all times, it does not have working hours like a shop.
 Electronic commerce also allows the customer and the business to be in touch directly,
without any intermediaries. This allows for quick communication and transactions. It also
gives a valuable personal touch.
 Disadvantages of E-Commerce
 The start-up costs of the e-commerce portal are very high. The setup of the hardware
and the software, the training cost of employees, the constant maintenance and upkeep
are all quite expensive.
 Although it may seem like a sure thing, the e-commerce industry has a high risk of
failure. Many companies riding the dot-com wave of the 2000s have failed miserably. The
high risk of failure remains even today.
 At times, e-commerce can feel impersonal. So it lacks the warmth of an interpersonal
relationship which is important for many brands and products. This lack of a personal
touch can be a disadvantage for many types of services and products like interior
designing or the jewelry business.
 Security is another area of concern. Only recently, we have witnessed many security
breaches where the information of the customers was stolen. Credit card theft, identity
theft etc. remain big concerns with the customers.
 Then there are also fulfillment problems. Even after the order is placed there can be
problems with shipping, delivery, mix-ups etc. This leaves the customers unhappy and
dissatisfied.
COMPARISION BETWEEN TRADIATIONAL COMMERCE AND E-
COMMERCE
 There are some major differences between traditional and e-commerce. Here are some of the
fundamental differences
 Exchange of Product and Service
 Timing
 Physical Interaction
 Geographical location
 Modes Of Payments
 Exchange of Products and Service :
Traditional commerce focuses on the exchange of products and services through
personal interactions and is therefore manual while e-commerce trading activities are
online via the internet and can be considered automatic
 Timing :
Traditional commerce is limited to time business hours mostly during the day while e-
commerce is 24/7, it can be done anytime day and night
 Physical Interaction :
Traditional commerce allows a buyer to be physical inspect goods and test out services
before making a purchase. Conversely, with e-commerce, products and services are not
examined physically.
 Geographical location:
Traditional commerce is limited to a particular geographical location while e-commerce is global
and has no physical limitation.
 Modes Of Payment :
Modes of payment in traditional commerce include cash, cheques, and credit cards. With e-
commerce, there’s electronic funds transfer, credit card numbers, E-wallet and internet banking etc.
 BUSSINESS APPLICATIONS
 Various applications of e-commerce are continually affecting trends and prospects for
business over the Internet, including e-banking, e-tailing and online publishing/online
retailing.
 Applications related to E-commerce
 E-mail and messaging
 Documents, spreadsheets, database
 Accounting and finance systems
 Orders and shipment information
 Enterprise and client information reporting
 Domestic and international payment systems
 On-line Shopping
 Conferencing
 Summary and Conclusion
 The Internet has led to the birth and evolution E-commerce. E-commerce has now
become a key component of many organizations in the daily running of their business.
 As the Internet and in turn E-commerce has developed, and continues to evolve and
grow, it is vital that any organization, in any particular industry, must base its strategic
planning around such a rapidly growing medium.
 We as customers and internet users are responsible to keep our e-commerce healthy and
safe so that e-business can be more reliable in the future.
Every One
E