34. 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.
35. 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.
36. 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.
37. 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.
38. 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.
39. 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%)
40. International SCENARIO
Most popular and purchased items are:
Books (41% purchased in the past three
months)
Clothing/Accessories/Shoes (36%)
Videos / DVDs / Games (24%)
Airline Tickets (24%)
Electronic Equipment (23%)
42. INDIAN SCENARIO
India crossed 80 million users last year
despite poor internet penetration and sluggish
internet speed.
India the third largest internet market in
the world by number of users.
Users - 16 hours a week online
In 2011 e-commerce was about Rs. 50,000
cr.
43. INDIAN SCENARIO
10 million 3G connections were taken within
6 months of launch, almost equal to the base
of wire line broadband connections.
28% of travel gets booked online; 117
million transactions on Indian railways website
alone.
47% of the classifieds business in the
country is online.
7% of the bank users access their accounts
44. INDIAN SCENARIO
In 2010-11, 25% of IT returns were filled
online.
Close to 50% of music revenues comes from
mobile downloads.
3,311 E-commerce hubs from where
consumers buy and sell. Out of this, 1,267 are
rural hubs.
50. OPPORTUNITIES
1. E- Business
Naukri.com – India's premier recruitment site has
captured around 50% of the recruitment market.
ICICIDIRECT.com - Stock trading simplified,
Icicidirect.com is today the country's premier
trading portal.
Baaze.com the country's 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
54. CHALLENGES
1)Ethical issues
Privacy
Security concerns
Other ethical issues
2)Perception of risk in e-service encounters
3)E-commerce Integration
55. CHALLENGES
4) It act 2000 and legal system
5) Human skills required for E-Commerce
Developing Electronic Commerce solutions
successfully across the Organization means
building reliable, scalable systems for
security,
E- commerce payments
Supply- chain management
Sales force, data warehousing, customer
relations
Integrating all of this existing back-end
57. 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
58. ITAA 2008 (Information
Technology Amendment Act 2008)
as the new version of Information
Technology Act 2000 is often
referred has provided additional
focus on Information Security. It
has added several new sections on
offences including Cyber Terrorism
66. 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 a
credit card processor that allows a merchant to accept payment cards.
--An Internet merchant account enables us to run web-initiated
transactions online in real time.
Second Step will be to select a “Payment Gateway”
--A payment gateway is a remotely hosted software application that
transmits transaction data (either from your website or from a virtual
terminal where you manually enter or key in transactions) to a credit
card processor.
Third Step will be to integrate a “Shopping Cart”
-- Shopping cart is like an online basket where one can put their
products in to the basket, can select the number of quantity they
want to buy, etc.
67. 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.
68. LIST OF WIDELY USED
PAYMENT GATEWAYS TOOLS
IN ECOMMERCE WEBSITES
PayPal
Google Check out
2Checkout
Authorize.net
Cyber Source
Linkpoint
69. TERMINOLOGIES
Individual
Merchant- Seller of Goods.
Customer- Buyer of Goods.
Institutions
Customer’s Issuing banks: Provides Customer’s
credit card information and verification.
Merchant’s Acquiring bank: Provides internet
merchant account.
Processor: Authorizes credit card transactions and
settles funds for merchants.
70. 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
71. 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
72. 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
74. SOME SECURITY ISSUES
Vulnerabilities
Authentication is challenged
Hacker’s can break into
merchants network
Hackers can also steal
customers identities
Recorded session attack
75. 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 the
sites which does have one of the couple of below
mentioned Signs/Symbols
