1. E-COMMERCE

2. Ecommerce
 Refers to the paperless exchange of business information using network based
technologies
 Any form of business transactions in which the parties interact electronically rather
than by physical exchange of document or direct meetings
 Doing business online
 Buying & selling products and services through web store fronts
 Buying &selling products information's &services over internet
 It encompasses the entire online process of developing, marketing
,selling, delivering
 Servicing &paying for products & services
 It uses Internet, intranet & extranet to accomplish online transaction with
customers and business partners

3. Reasons for the growth of E commerce
 Age of competition
 Globalization of economy
 Commercialization &privatization of internet
 High labour cost and lesser available time
 Higher volume of sales at lower profits
 Shorter product lifecycles due to changes in technology
 Faster communication of information over computer n/w
 combination of telecommunication & computer science results in
emergence of new field –Information technology

4. Features of Ecommerce
 It’s a business strategy to cut down costs while improving
quality and increasing the speed of delivery of goods & services
 It has ability to sell and purchase products /services information
on computer networks
 it is a solution for office automation and quick business
transaction
 It is a tool to improve intra business functioning like business reengineering
 It is a tool to improve inter business communication through
easy and accurate interaction and information interchange

5. Importance of Ecommerce
 Low set up cost:
Any body can easily set up a website, many
organizations and training institutes who help customers in
developing and launching webs sites.
To market a product large retail showrooms are not
required just a web site showing the characteristics of the
product including cost details are sufficient
 Global free market:
Nobody can dominate the global market as it is present
on the internet, anybody who can afford a computer and a
telephone can fully access the internet and gain the
information required

6. Importance of Ecommerce
 Global access:
Since more than 200 countries are hooked onto the internet
not only the global giants but even small organizations can
participate actively at low cost and compete with stiff competition
 Availability of technology:
Same technology like web servers browsers engine internet
etc is used through the world therefore business can be easily
conducted
 Multiple opportunities:
By using E –commerce multiple activities like selling ,renting
& purchasing etc can be performed under one roof

7. Importance of Ecommerce
 Others
Ecommerce systems are being established for automating
and enhansing many aspects of communication publishing marketing
sales and customer service such as
Customer research
Pre sale enquiries
Information publishing
Sales
Advertising
Promotions
Public relations
Purchasing
Transactions
Funds Transfer
Production
Delivery
After sales service
Ongoing relation ship management
Customer support

8. Pillars of Ecommerce
 Electronic Information
 Electronic relationships
 Electronic Transaction

9. Objective of E commerce
 Conduct of distant business
To acquire latest technologies and improvement in the
field
To help expand horizon of business and service
To create new services and business
 Streamline procurement process
To cut down procurement time
To cut down procurement cost
To simplify procurement process
 Use of competitive processes
To decrease the length of production cycle
To create competitive edge in the respective fields
To improve and Maintain production quality

10. Types of E -commerce
 Business to consumer(B2C)
 Business to Business(B2B)
Inter organizational
 Internal business Process
Intra organizational
 Consumer to consumer(C2C)

11. Business to consumer
 Its an application says that customer gives their specification and the
manufacturers try and supply it
 It makes business come closer to the consumer or customer to offer
product & service with help of an attractive electronic market
 Business is done by providing well designed web sites like normal
shops in the market with product & services to be sold displayed with
price & description
 Browsers, Multimedia Hypertext Hypermedia are used to develop
these sites
 E-g: Home banking,Vedio on demand,Movies,games virtual
universities market research

12. Business to Business(Inter
Organizational)
 E-com for intergenerational relationship
 Enabling of existing relationship between two
companies
 It enables supplier management, Inventory
management ,Payment management, channel
management financial management distribution
management sales force management

13. Customer to customer:
 E business resolves around two individual
who plays a designated role as buyer/seller
teacher/student manager/office, etc
 E-g E-mailing, E greetings, payments
ordering & sending gifts

14. Advantages of E-com
 Reduces the distance in carrying out trade thereby helps
companies to have cheap and effective way of
communication with suppliers& customers
 An online store works 24 hours a day, 7 days a week ,365
day a year
 The cost of setting up an E-com website is very low can be
established with very little overheads or outlay.
 More flexible to add and remove a product or products in a
catalogues or brouchers

15. Advantages of E-com
 Being online it potentially gives exposure to
prevesiouly untapped market segment .
 Error reduction takes place highly as order
don’t have to be rekeyed into order entry
system
 Buying & selling of items from any place using
one computer and a internet connection
 Avail services like financial service legal
services medical advise from appropriate
portals.
 Can access large variety of goods easily

16. Advantages of E-com
 wider choice and no wastage of time
 Website helps the business to reach worldwide customer at a very
low cost
 Fund transfer is made faster
 Large number of potential business partners can be quickly found
and contacted using appropriate search enquires and E-mail
correspondence
 Middlemen such as retailer eliminated as a manufacturer can
reach out directly to a customer

17. Disadvantages of E-com:
 Inability to touch and feel products as selling is
online .This is a Psychological barrier when
customer become familiar with online shopping
this barrier is removed
 Computer system never be safe .Hackers
intercept transaction and cause problem for
both customer and companies that operate on
the internet
 The average internet users are usually young
highly educated man, women and elderly
persons will not be reached

18. Disadvantages of E-com:
 Problem to sell products to a target group other
than young &highly educated
 Internet access is not widely available
 It’s a depersonalize transaction as it lacks
social contact touch feel the product

19. Disadvantages of E-com:
 Spies or hackers can steal and misuse credit
card and other smart card numbers
 Portal have to be protected from virus affects
and other vandalism
 Online stores do not exist very longer as a
result of large group of annoyed and
dissatisfied customers as there is no one to
guide like a shopkeeper

20. Short comings of online Shopping:
 Visual effects only
 Time lag
 Internet connectivity
 Slow web sites
 Search methods
 Shipping & handling costs