E COMMERCE

WHAT IS E COMMERCE?
 Electronic commerce, commonly known as (electronic marketing)
e-commerce or eCommerce, consists of the buying and selling of
products or services over electronic systems such as the
Internet and other computer networks. The amount of trade
conducted electronically has grown extraordinarily with
widespread Internet usage.
 A wide variety of commerce is conducted in this way, spurring
and drawing on innovations in electronic funds transfer, supply
chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems.
NEED FOR E COMMERCE
 Originally, electronic commerce meant the
facilitation of commercial transactions
electronically, using technology such as Electronic
Data Interchange (EDI) and Electronic Funds
Transfer (EFT).
 The growth and acceptance of credit cards,
automated teller machines (ATM) and telephone
banking in the 1980s were also forms of electronic
commerce.
 Online shopping was invented in the UK in 1979 by
Michael Aldrich and during the 1980s it was used
extensively particularly by auto manufacturers such
as Ford,Peugeot-Talbot, General Motors and Nissan
NEED FOR E COMMERCE
 From the 1990s onwards, electronic
commerce would additionally include
enterprise resource planning systems
(ERP), data mining and data warehousing.
BUSINESS APPLICATIONS
 Email
 Enterprise content management
 Instant messaging
 Newsgroups
 Online shopping and order tracking
 Online banking
 Online office suites
 Domestic and international payment systems
 Shopping cart software
 Teleconferencing
 Electronic tickets
TYPES OF E COMMERCE
 B2B (Business-to-Business)
Companies doing business with each other such as
manufacturers selling to distributors and wholesalers selling
to retailers. Pricing is based on quantity of order and is often
negotiable.
 B2C (Business-to-Consumer)
Businesses selling to the general public typically through
catalogs utilizing shopping cart software. By dollar volume,
B2B takes the prize, however B2C is really what the average
Joe has in mind with regards to ecommerce as a whole.
TYPES OF E COMMERCE
 C2B (Consumer-to-Business)
A consumer posts his project with a set budget online and within
hours companies review the consumer's requirements and bid on the
project. The consumer reviews the bids and selects the company
that will complete the project. Elance empowers consumers around
the world by providing the meeting ground and platform for such
transactions.
 C2C (Consumer-to-Consumer)
There are many sites offering free classifieds, auctions, and forums
where individuals can buy and sell thanks to online payment systems
like PayPal where people can send and receive money online with
ease. eBay's auction service is a great example of where person-to-
person transactions take place everyday since 1995.
ONLINE PAYMENT PROCESS

This includes:
 Who are the participants involved in an
online transaction?
 What are the various payment modes?

 How the online transaction process works?

PARTICIPANTS
The participants involved in an online
transaction are:
 Customer

 Merchant

 Card issuer/ customer’s bank

 Merchant’s bank

 Acquirer

 Payment gateways
PAYMENT MODES
A payment mode is the method by which a
customer pays money to the merchant for
the goods and services purchased.
Various payment modes in an online
transaction are :
 Cash

 Check

 Credit
PAYMENT PROCESS
The steps are as follows:
1. Customer selects the items to be
purchased from a web site and proceeds
to make the payment.
2. The customer enters his credit card
details and sends it along with the order
details (shopping cart) to the merchant
(storefront).
PAYMENT PROCESS
3. The merchant sends payment details to
the merchant’s bank through payment
gateway.
4. The merchant’s bank forwards the
payment details to the acquirer for
verifying the credit card details.
5. The acquirer sends the payment details
to the customer’s card issuer bank to
check the availability of funds.
6. The card issuer bank checks for the
availability of funds and sends the result
to the acquirer.
PAYMENT PROCESS
7. The acquirer forwards the result to the
merchant’s bank.
8. The merchant’s bank sends the result to
the merchant (storefront) through
payment gateway.
9. The result of the transaction is displayed
to the customer.
OPPORTUNITIES
 Direct Sales
 Many business use e commerce for direct selling of
goods and services online
 Pre sales
 Widespread use of internet to generate sales
leads.
 Post sales
 Use of internet to automate aspects of your
customer support to reduce the number of routine
customer service calls.
ADVANTAGES
 Being able to conduct business 24 x 7 x 365
 Access the global marketplace
 Speed.
 Market space
 Opportunity to reduce costs.
 Computer platform-independent
 Efficient applications development environment
 Allowing customer self service and 'customer
outsourcing'
CONSTRAINTS
 Time for delivery of physical products
 Physical product, supplier & delivery uncertainty .
 Perishable goods
 Limited and selected sensory information
 Returning goods.
 Privacy, security, payment, identity, contract.
 Defined services & the unexpected .
 Personal service
REFRENCES
 www.wikipedia.org
 UNDERSTANDING E COMMERCE
 www.howstuffworks.com
 www.google.com
 www.webopedia.com