Introduction of e business

1. The term commerce as describing transaction
conducted between business partners. Electronic
commerce describe buying, selling and exchanging
of product,services,and information via computer
network or internet. It consists of distributing
,buying ,selling ,marketing and services of product
or services over electronic system via computer
network. E-commerce involve electronic fund
transfer , e-marketing ,online transaction ,electronic
fund transfer automated data collection. E-
commerce is changing all business functional area
and their implementation task ranging from
advertising to paying bills.

2. E-business
E-business is the application of information and
communication technology in support of all the
activities of business. E Business is defined as the
conducting of business transactions over electronic
networks instead of paper ,telephones. E-Business
using technology to improve four business processes.
This include managing internal process such as
human resource ,financial and administration system
as well as external processes such as sales and
marketing supply goods and services and customer
relationship.

3. E-Business Activities
E-Procurement
E-Collaboration
E-Commerce
ERP
E-CRM
Information System
E-Payment System
Business Intelligence

4. Activities using e-business
 Website marketing
 Online communication such as e-mail
 Online training for staff
 Use of internet for conducting research and manage
business activities
 Providing servicing throw online to the customer.

5. E-Business tools
 Mobile phone
 Electronic data change
 File transfer
 Video conferencing
 Call conferencing.

6. Cost-Effective Marketing:
With an e-business, all of your marketing efforts
end with one goal to drive target traffic to your
business website. With one central place to send
customers & your e-business website it allows you
to use many online marketing tactics including
email marketing, article marketing, social media
networking and e-newsletters. Most of these online
marketing efforts are very low cost or free, so an e-
business allows for highly cost-effective marketing
strategies.

7.  Flexible Business Hours:
E-business breaks down the time barriers that
location-based businesses encounter, according to
ecommerce Education. Because the Internet is
available 24 hours a day, seven days a week, your
business never closes. An e-business can literally be
making money while you are fast asleep.
 Eliminates Geographic Boundaries:
An e-business also allows you to broaden your reach.
An online business can reach customers in the four
corners of the Earth. As long as someone has an
Internet connection, you may be able to reach and sell
your product or service to these visitors to your
business website.

8.  Reduces Transaction Cost:
Running an online business reduces the cost per
transaction because it takes less manpower to
complete an online transaction. Once you get your
website up and running, the customer places the order
online, which removes the need for a salesperson. The
customer payment goes through your online payment
processing software or system. Someone has to
download the order and ship and make payment.

9.  Low Overhead Costs:
Running an e-business cut back or out most of the
costs involved in running a physical location. E-
businesses have less expensive phone, rent and utility
bills than businesses with physical locations. An e-
business also reduces the cost of paying employees
because you do not need someone in your business.

10. Disadvantage of e-business
 Lacks Personal Touch
Not that all physical retailers have a personal
approach, but I do know of several retailers who value
human relationship. As a result, shopping at those
retail outlets is reassuring and refreshing. Clicking on
"Buy Now," and piling up products in virtual shopping
carts, is just not the same for me. different people sing
to different tunes. The demise of the personal touch in
online transactions can be the biggest disadvantage of
e-business.

11.  Delays Goods:
Unless you are using a website to merely order a pizza
online, e-commerce websites deliver take a lot longer to get
the goods into your hands. Even with express shipping, the
earliest you get goods is usually "tomorrow" (with the
exception of some Amazon services).
 Many Goods Cannot Be Purchased Online:
Despite its many conveniences, there are goods that you
cannot buy online. Most of these would be in the categories
of "perishable" or "odd-sized." Think about it, you cannot
order a popsicle (also referred to as an ice pop or ice lolly)
or a dining table set.Well, you could order both of them
online, but consider the inconvenience. The popsicle would
have to be transported in refrigerated trucks.

12.  Anyone Can Set Up an e-Commerce Website:
We live in an era where online storefront providers bring you the
ability to set up an e-commerce store within minutes. I have tried
it, and it is possible to set up a basic store in under 10 minutes.
But if anybody can set up a store, how do I know that the store I
am purchasing from is genuine?
 Security:
When making an online purchase, you have to provide at least
your credit card information and mailing address. In many cases,
e-commerce websites are able to harvest other information about
your online behavior and preferences. This could lead to credit
card fraud, or worse, identity theft.

13. E-business Model
Creating an e-commerce solution mainly involves creating
and deploying an e-commerce site. The first step in the
development of an e-commerce site is to identify the e-
commerce model. Depending on the parties involved in the
transaction, e-commerce can be classified into 4 models
• Business – to – Business (B2B) model
• Business – to – Consumer (B2C) model
• Consumer – to- Consumer (C2C) model
• Consumer – to – Business (C2B) model

14. E-Business model
 Business to business model(B2B): The B2B model involves
electronic transactions for ordering, purchasing, as well as other
administrative tasks between houses. It includes trading goods,
such as business subscriptions, professional services,
manufacturing, and wholesale dealings. Sometimes in the B2B
model, business may exist between virtual companies, neither of
which may have any physical existence. In such cases, business is
conducted only through the Internet. In simple way 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.

15. Business to business model

16. Business-to-Consumer (B2C)
The B2C model involves transactions between business
organizations and consumers. It applies to any business
organization that sells its products or services to consumers over
the Internet. These sites display product information in an
online catalog and store it in a database. The B2C model also
includes services online banking, travel services, and health
information. In simple way: 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.

17. Consumer-to-Business (C2B)
 Consumer-to-Business (C2B) :The C2B model involves a
transaction that is conducted between a consumer and a
business organization. It is similar to the B2C model, however,
the difference is that in this case the consumer is the seller and
the business organization is the buyer. In this kind of a
transaction, the consumers decide the price of a particular
product rather than the supplier. This category includes
individuals who sell products and services to organizations. in
simple way 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

18. Consumer-to-Business

19. Consumer-to-Consumer (C2C)
Model
The C2C model involves transaction between consumers. Here, a
consumer sells directly to another consumer. eBay and
www.bazee.com are common examples of online auction Web
sites that provide a consumer to advertise and sell their products
online to another consumer. However, it is essential that both
the seller and the buyer must register with the auction site.
While the seller needs to pay a fixed fee to the online auction
house to sell their products, the buyer can bid without paying
any fee. The site brings the buyer and seller together to conduct
deals. In simple way 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.

20. Consumer-to-Consumer

21. Business - to - Government
 Business - to - Government (B2G):B2G model is a
variant of B2B model. Such websites are used by
government to trade and exchange information with
various business organizations. Such websites are
accredited by the government and provide a medium
to businesses to submit application forms to the
government.

22. Government - to - Business
 Government - to - Business (G2B):Government uses
B2G model website to approach business
organizations. Such websites support auctions, tenders
and application submission functionalities.

23. Government - to - Citizen (G2C)
 Government - to - Citizen (G2C)Government uses G2C
model website to approach citizen in general. Such
websites support auctions of vehicles, machinery or any
other material. Such website also provides services like
registration for birth, marriage or death certificates. Main
objectives of G2C website are to reduce average time for
fulfilling people requests for various government services.

24. E-commerce is nothing but buying and selling of goods
around the web. e-business is a little different as it is
not limited to, commercial transactions, but it also
provides other services. These are the two emerging
modes of doing business, which are gaining importance
with the passage of time. in the simple word e-
commerce is an abbreviation used for electronic
commerce. It is the process through which the buying,
selling, dealing, ordering and paying for the goods and
services are done over the internet is known as e-
commerce. In this type of online commercial
transaction, the seller can communicate with the buyer
without having a face to face interaction.

25. E-Commerce
 Trading of goods and products, over the internet is known
as E-commerce.
 It carry out Commercial transactions.
 It requires Website.
 It uses Internet.

26. E-business
 Running business using the internet is known as E-
business.
 It carry out Business transactions
 It uses Website, CRM, ERP, etc.
 It uses Internet, Intranet and Extranet.

27. Count…
 Buying and Selling of goods and services through the internet
is known as e-commerce. Unlike e-business, which is an
electronic presence of business, by which all the business
activities are conducted through the internet.
 e-commerce is a major component of e-business.
 e-commerce includes transactions which are related to money,
but e-business includes monetary as well as allied activities.
 e-commerce has an loud approach that covers customers,
suppliers, distributors, etc. On the other hand, e-business has an
approach that covers internal as well as external processes.
 e-commerce requires a website that can represent the business.
Conversely, e-business requires a website, Customer
Relationship Management and Enterprise Resource Planning
for running the business over the internet.
 e-commerce uses the internet to connect with the rest of the
world. In contrast to e-business, the internet, intranet and
extranet are used for connecting with the parties.

28. Contribution of e-commerce to
economic growth
 As the trend of ICT development is gaining larger
influence over countries’ development and growth, e-
commerce plays an important role in enhancing the
growth of several developed and developing
economies over the 21st century. This chapter aims to
build the analytical base to support the importance of
the development of e-commerce by investigating the
role and contribution of e-commerce to economic
growth and development. The first investigates past
contributions of e-commerce to economic growth in
developed countries. Second, past research findings
and frameworks are utilized to investigate the
contribution of e-commerce toward economic growth

29. Cont…
 Today the trend of ICT development is gaining larger
influence over countries’ development and growth. It
would not be surprising to see the industries. The
introduction of e-commerce and e-business seems to
create a tremendous contribution to the growth of many
developed nations and is continuing its increasing impact
on the developments of many developing economies over
the 21st century.

30. Cont….
 Some recent literature pointed out the increasing contribution
of e-commerce toward economic development in several
developed countries such as the United States, Canada,
Australia, and the United Kingdom .It was found that from
1997 to 2000, the value of sales from e-commerce increased
from less than $20 billion to nearly $300 billion. Moreover,
some researchers expect that the contribution of e-commerce
will grow faster than the contribution from traditional sales.
Especially in the United States in the year 2000, e-commerce
represented more than 80% of the worldwide e-commerce that
took place, having a significant effect on the large economic
sectors such as communications, finance, and retail where it
accounts for 15% of the global gross domestic product (GDP)

31. Scope of E-business
 The scope of E-business is huge .All type of business
functions such as production , finance , marketing , and
personal administration in addition to managerial
activities like planning , organizing and controlling are
carried out through computer network. The other scope is
electronic business process and electronic data interchange
and E-payment.

32. Nature of E-business
 E-commerce is the buying and selling of products and
services by businesses and consumers over the Internet
and through other electronic media. E-business is when a
company e-enables its processes to do business in a more
efficient way using Web technologies. This might include
procuring goods and services, dealing with customers as
well as selling products.

33. Cont…
 E-business can be defined as “the use of networks and
information technology in order to electronically design,
market, buy, sell and deliver products and services
worldwide”. E-business, meaning ‘electronic-business’,
deals with application of information and communication
technologies, in short an electronic medium in support of
all the activities of business.
 The e-business mainly stands for the internet enabled
business. There are four entities in the internet enabled
business. These four entities are

34. Cont..
 Information (Access to data) We often use internet for
retrieving the information. This low cost data access is
provided for a wide number of people across the world.
For many of the organizations the internet is required to
list down the things in the e-pages. To find any
information on the net, the customer must use search
engines like the well known and widely used Google,
Yahoo.

35. Cont..
 Communication (Bi or Multilateral exchange of information) –
internet is a basic mode of communication. The bilateral
exchange of information involves communication between two
people exchange of information. The exchange of information
involves one person communicating one or two person. The
exchange of information can be explained by considering the
conference calls that helps to communicate with two or many
number of people at the same time. Bi or multilateral exchange
of information is possible by e-mail based services that act as
the customer interaction center for the customer questions as
well as the complaints. It helps business people to keep in
touch with their business partners across the world.

36. Cont..
 Community ( Mutual support by knowledge transfer ) –
Internet plays an important role in sharing knowledge as
well. This is helpful for processes like the research and
development of systems, development of open source
projects, and also the development of software. The
members of the community such as the participants in the
open source projects will help in the mutual transfer of the
information.

37. Cont..
 Commerce ( Contract based transactions with the
customers ) The internet hepls in facilitating the
transactions. The aim of commerce is to satisfy the needs
of the customers. This further helps the customers to pay
their bills online

39. What is E-Commerce
 Commonly known as Electronic Marketing.
 “It consist of buying and selling goods and services
over an electronic systems Such as the internet and
other computer networks.”
 “E-commerce is the purchasing, selling and
exchanging goods and services over computer
networks (internet) through which transaction or
terms of sale are performed Electronically.

40. TRADITIONAL BUSINESS
DIRECT SELLING
MANF. UNIT
20%
DISTRIBUTOR
10%
WHOLESALER
10%
RETAILER
10%
CUSTOMER
100%
ADVERTISEMENT
50%
CUSTOMERCOMPANY

41. Why
Use
E-Commerce
…….?

42.  LOW ENTRY COST
 REDUCES TRANSACTION COSTS
 ACCESS TO THE GLOBAL MARKET
 SECURE MARKET SHARE

43. Brief
History
Of
E-Commerce

44.  1970s: Electronic Funds Transfer (EFT)
 Used by the banking industry to exchange account
information over secured networks
 Late 1970s and early 1980s: Electronic Data
Interchange (EDI) for e-commerce within
companies
 Used by businesses to transmit data from one business
to another
 1990s: the World Wide Web on the Internet
provides easy-to-use technology for information
publishing.
 Cheaper to do business (economies of scale)
 Enable diverse business activities (economies of scope

45. The Process
Of
E-Commerce

46.  A consumer uses Web browser to connect to the home
page of a merchant's Web site on the Internet.
 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, she provides a bill-to and ship-to
address for purchase and delivery

47.  When the merchant's Web server receives this
information, it computes the total cost of the order--
including tax, shipping, and handling charges--and
then displays the total to the customer.
 The customer can now provide payment information,
such as a credit card number, and then submit the
order.

48.  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.
 The Commerce Server site then forwards the order to a
Processing Network for payment processing and
fulfillment.

49. Types
Of
E-Commerce

50. Business-to-business (B2B)
 B2B stands for Business to Business. It consists of largest
form of Ecommerce. This model defines that Buyer and
seller are two different entities. It is similar to
manufacturer issuing goods to the retailer or wholesaler.
E.g.:-Dell deals computers and other associated accessories
online but it is does not make up all those products. So, in
govern to deal those products, first step is to purchases
them from unlike businesses i.e. the producers of those
products.

51. Business-to-consumer (B2C):
 It is the model taking businesses and consumers
interaction. The basic concept of this model is to
sell the product online to the consumers.
 B2c is the direct trade between the company and
consumers. It provides direct selling through
online. For example: if you want to sell goods and
services to customer so that anybody can
purchase any products directly from supplier’s
website.

52. Business-to-Employee (B2E) Business-to-employee (B2E) electronic
commerce uses an intrabusiness network
which allows companies to provide products
and/or services to their employees. Typically,
companies use B2E networks to automate
employee-related corporate processes.

53. Consumer-to-consumer (C2C) 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.

54. PROS AND CONS
OF
E-COMMERCE

55. PROS

56.  No checkout queues
 Reduce prices
 You can shop anywhere in the world
 Easy access 24 hours a day
 Wide selection to cater for all consumers

57. CONS

58.  Unable to examine products personally
 Not everyone is connected to the Internet
 There is the possibility of credit card number theft
 On average only 1/9th of stock is available on the net

59. Future of E-commerce in Nepal
 According to business world estimate near about
Sixty thousand new jobs will be created for the
internet world alone in the next two years
 e-Commerce transactions are expected to cross
the Rs. 3500 crore milestone in 2010-11, a jump of
around 350 percent from the 2008-09 figure of
Rs. 1000 crore
 eBay said that consumers were trading goods
worth almost three crore rupees everyday, across
the globe.