The document discusses electronic commerce (e-commerce), which involves buying and selling of products or services over electronic systems like the internet. It grew significantly with widespread internet usage. The document outlines the need for e-commerce and describes various business applications and types including B2B, B2C, C2B, and C2C. It also explains the online payment process between customers, merchants, and banks. E-commerce provides opportunities for direct sales and marketing but also faces constraints like delivery times and security issues.

1. E COMMERCE ARPIT GARG YATIN MATTA VIPUL CHANDHOK RIDHIKA KHANNA

2. 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.

3. 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

4. NEED FOR E COMMERCE From the 1990s onwards, electronic commerce would additionally include enterprise resource planning systems (ERP), data mining and data warehousing.

5. 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

6. 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.

7. 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.

8. 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?

9. PARTICIPANTS The participants involved in an online transaction are: Customer Merchant Card issuer/ customer’s bank Merchant’s bank Acquirer Payment gateways

10. 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

11. PAYMENT PROCESS The steps are as follows: Customer selects the items to be purchased from a web site and proceeds to make the payment. The customer enters his credit card details and sends it along with the order details (shopping cart) to the merchant (storefront).

12. 3. The merchant sends payment details to the merchant’s bank through payment gateway. The merchant’s bank forwards the payment details to the acquirer for verifying the credit card details. The acquirer sends the payment details to the customer’s card issuer bank to check the availability of funds. The card issuer bank checks for the availability of funds and sends the result to the acquirer. PAYMENT PROCESS

13. 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.

14. 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.

15. 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'

16. 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

17. REFRENCES www.wikipedia.org UNDERSTANDING E COMMERCE www.howstuffworks.com www.google.com www.webopedia.com