International SCENARIO In 2011 nearly 179 million consumers ages 14 and older will research products online. The sales of the top 500 ecommerce grew from 127.1$ Billion to 150$ Billion in 2010. Online retailer is the fastest sales channel with an improvement of 18% Like every year Amazon is the biggest e- commerce out there with 34.2$ Billion in 2010.
International SCENARIO E-commerce grows several times faster than store sales. The accelerated adoption of customer reviews indicates a more enlightened approach to handling negative comments—that is, occasional negative reviews do not hurt sales. 7 out of 10 Internet users are online shoppers.
International SCENARIO Social media has become standard practice for ecommerce merchants. An astounding 86% have Facebook pages, 37% have a Twitter account and 63% have a YouTube channel. Think mobile, M-Commerce is changing the rules. 90% of people said reviews have an impact on their decision; 60% say they’re the most important factor.
International SCENARIO Search still reigns. 9 of 10 retailers say that search engines are the biggest source of traffic in 2010. Customer reviews are significantly more trusted , 12 times more than descriptions that come from manufacturers. ¾ of the online customers are on social platform. 50% of follow an E-Commerce on Twitter/Facebook.
International SCENARIO Men are more likely to spend on group buying than women. Next to price, the first thing a person looks at is if you offer free shipping. The merchandise category with the biggest growth is Accessories. 60% of online shoppers check Amazon for price comparisons & product reviews before purchasing from other online stores.
International SCENARIO 875 Million Consumers Have Shopped Online Number of Internet Shoppers Up 40% in Two Years. Highest percentage shopping online is found in: South Korea (99%) UK (97%) Germany (97%) Japan (97%)
International SCENARIO Most popular and purchased items are: Books (41% purchased in the past threemonths) Clothing/Accessories/Shoes (36%) Videos / DVDs / Games (24%) Airline Tickets (24%) Electronic Equipment (23%)
INDIAN SCENARIO India crossed 80 million users last yeardespite poor internet penetration and sluggishinternet speed. India the third largest internet market inthe world by number of users. Users - 16 hours a week online In 2011 e-commerce was about Rs. 50,000cr.
INDIAN SCENARIO 10 million 3G connections were taken within6 months of launch, almost equal to the baseof wire line broadband connections. 28% of travel gets booked online; 117million transactions on Indian railways websitealone. 47% of the classifieds business in thecountry is online. 7% of the bank users access their accounts
INDIAN SCENARIO In 2010-11, 25% of IT returns were filledonline. Close to 50% of music revenues comes frommobile downloads. 3,311 E-commerce hubs from whereconsumers buy and sell. Out of this, 1,267 arerural hubs.
OPPORTUNITIES1. E- Business Naukri.com – Indias premier recruitment site has captured around 50% of the recruitment market. ICICIDIRECT.com - Stock trading simplified, Icicidirect.com is today the countrys premier trading portal. Baaze.com the countrys premier shopping site started as an auction site and graduated to be the most popular platform-shopping site. Irctc.com - One of the best things about this site is that a credit card is not an essential requirement for buying tickets here. Instead the site offers a
OPPORTUNITIES2. E-commerce integration3. Open and distance learning
OPPORTUNITIES4. E-commerce and E-insurance5. Future media of E-commerce6. Economic issues raised by
CHALLENGES1)Ethical issues Privacy Security concerns Other ethical issues2)Perception of risk in e-service encounters3)E-commerce Integration
CHALLENGES4) It act 2000 and legal system5) Human skills required for E-Commerce Developing Electronic Commerce solutionssuccessfully across the Organization meansbuilding reliable, scalable systems for security, E- commerce payments Supply- chain management Sales force, data warehousing, customer relations Integrating all of this existing back-end
Information Technology Act 2000 (ITA-2000) Addressed the following issues: Legal Recognition of Electronic Documents Legal Recognition of Digital Signatures Offenses and Contraventions Justice Dispensation Systems for Cybercrimes
ITAA 2008 (InformationTechnology Amendment Act 2008)as the new version of InformationTechnology Act 2000 is oftenreferred has provided additionalfocus on Information Security. Ithas added several new sections onoffences including Cyber Terrorism
HOW IT IS INTEGRATED IN ECOMMERCE WEBSITES?First step will be to create a “Merchant Account”--A merchant account is a business and financial arrangement with acredit card processor that allows a merchant to accept payment cards.--An Internet merchant account enables us to run web-initiatedtransactions online in real time. Second Step will be to select a “Payment Gateway”--A payment gateway is a remotely hosted software application thattransmits transaction data (either from your website or from a virtualterminal where you manually enter or key in transactions) to a creditcard processor. Third Step will be to integrate a “Shopping Cart”-- Shopping cart is like an online basket where one can put theirproducts in to the basket, can select the number of quantity theywant to buy, etc.
WHAT ARE PAYMENT GATEWAYS IN ECOMMERCE WEBSITES?A payment gateway is simply a service which connects your Web site with the bank.It’s merely an mediator between buyers and seller while doing payment process except for COD transactions.The payment gateways are linked with Bank accounts.
LIST OF WIDELY USED PAYMENT GATEWAYS TOOLS IN ECOMMERCE WEBSITES PayPal Google Check out 2Checkout Authorize.net Cyber Source Linkpoint
TERMINOLOGIES IndividualMerchant- Seller of Goods.Customer- Buyer of Goods. InstitutionsCustomer’s Issuing banks: Provides Customer’scredit card information and verification.Merchant’s Acquiring bank: Provides internetmerchant account.Processor: Authorizes credit card transactions andsettles funds for merchants.
BASIC ELEMENTS OF INTERACTIONS Processes Authorization: The Process of verifying a customers credit card Settlement: The process of collecting funds from customers account. Services Payment Processing Service: Connects merchants, customers and bank through secure online transaction. Gateway: The secure pipe between the banks and the processor
AUTHORIZATION PROCESS Authorization Process Customer decides to make online purchase and inputs credit card information Merchant’s website receives customer information and send it to payment processing service Payment processing service routes information to the processor Processor routes information to bank that issued customer’s credit card i.e issuing bank Issuing Bank send authorization or rejection to processor Processor routes transaction results to payment processing service Payment processing service sends result to the merchant Merchant decides to accept or reject the purchase
SETTLEMENT PROCESS Merchant informs the payment processing service to settle transactions Payment processing service sends transaction information to the processor Processor checks the information and forward settled transaction information to the issuing bank Issuing Bank transfer funds to the processor Processor routes funds to the acquiring bank Acquiring Bank credits merchant’s bank account Issuing bank includes merchant’s charge on customer’s credit card account
SOME SECURITY ISSUES VulnerabilitiesAuthentication is challengedHacker’s can break into merchants networkHackers can also steal customers identitiesRecorded session attack
Now ? What to do in order to play safe on ecommerce websites?? For Website owners it is feasible to use SSL software/Certificates into their website For Customers it is advisable to do transactions the sites which are having such SSL certificate.For ex: The customers should do the transactions on thesites which does have one of the couple of belowmentioned Signs/Symbols