Commerce• Commerce: Exchange of Goods / Services• Contracting parties: Buyer and Seller• Fundamental principles: Trust and Security• Intermediaries:• Direct (Distributors, Retailers)• Indirect (Banks, Regulators)• Money is a medium to facilitate transactions
E-Commerce• Electronics Commerce.• Buying and Selling over Internet.• Includes the entire process of developing, marketing, selling, delivering, servicing and paying.
TYPES• business-to-business (B2B)• 80% of e-commerce – inventory management – distribution management – channel management – and payment management• business to-consumer (B2C) – Amazon.com, Drugstore.com,Beyond.com, – Barnes and Noble and ToysRus
TYPES• business-to-government (B2G) – It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations.• consumer-to-consumer (C2C) – commerce between private companies or consumers e.g.-e-bay
TYPES• mobile commerce (m-commerce )• It is the buying and selling of goods and services through wireless technology – cellular telephones and – personal digital assistants (PDAs).• Japan is seen as a global leader in m- commerce
FEATURES• Easy and Global access• 24 X 7 availability.• Customized Products and Services.• Back office Integration.
STEPS• Attracts prospects to your site. • Positive Online experience. • Value over traditional retail.• Convert prospects to customers. • Provide customized services. • Online ordering billing and payment.• Keep them coming back • Online customers service. • Offer more products and services.
RISKS• Customer’s risk• Dishonest merchants• Dispute over transaction• Inappropriate use of transaction details.• Merchants risk• Forged instruments• Disputed charges• Insufficient funds in customers account.
E-Commerce Security• Authorization, Access Control: –protect intranet from hordes: Firewalls• Confidentiality, Data Integrity: –protect contents against snoopers: Encryption• Authentication: – both parties prove identity before starting transaction: Digital certificates• Non-repudiation: –proof that the document originated by you & you only: Digital signature
Anonymity of Purchaser
• The e-commerce market is projected to grow to 46,520 crore by 2011, which then will be a 400% growth in the last 5 years
CONCLUSION• Indian e Commerce space percentage is getting higher as more and more online retailers enter the market.• Most e-commerce sites have been targeted towards the NRIs with Gift delivery services, books, Audio and videocassettes e.t.c.• Good use of e Commerce by banks.• Even the stock exchanges coming online providing online stock portfolio.• Facebook & social networking.