This document discusses e-commerce and provides definitions, types, and descriptions of key concepts related to e-commerce including B2B, B2C, C2C, m-commerce, e-payment systems, and online advertising and marketing. It also outlines the advantages and disadvantages of e-commerce and discusses the growth and development of e-commerce in India and globally since the 1980s.

1. MADE BY :- KUNAL SHINGALA,
JUNE ITT BATCH,
WRO0416491

2.  INTRODUCTION
 DEFINATION
 BASICSWEB COMMERCE
 TYPES OF E-COMMERCE
 E-MARKET PLACE
 ADVERTISING & ONLINE MARKETING
 ELECTRONIC PAYMENT SYSTEM
 HOW E-COMMERCE IS CONDUCTED ?
 ADVANTAGES OF E-COMMERCE
 DISADVANTAGES OF E-COMMERCE
 DEVELOPMENT OF E-COMMERCE IN INDIA
 DEVELOPMENT OF E-COMMERCE GLOBALLY

3.  SINCETHE INVENTION OF
WORLD WIDE WEB (WWW) IN
1989. INTERNET BASED
ELECTRONIC COMMERCE HAS
BEEN TRANFORMED FROM A
JUST AN IDEA TO REALITY .
HOW MUCH IT HAS BEEN
DEVELOPED WE CAN SEE ON
THE BASIS OF WEB SERVERS IN
1998 THERE WERE 2 MILLION
WEB BROWSERS WERE
CONNECTED AND ALMOST 300
MILLION WEB BROWSERS ARE
CONNECTED WITH THE
INTERNET

4.  “E-commerce is the use of electronic
communications and digital information processing
technology in business transactions to
create, transform, and redefine relationships for
value creation between or among
organizations, and between organizations and
individuals.”
 E-commerce is usually associated with buying and
selling over the Internet, or conducting any
transaction involving the transfer of ownership or
rights to use goods or services through a computer-
mediated network. Though popular, this definition
is not comprehensive enough to capture recent
developments in this new and revolutionary

5. ELETRONIC
DATA
INTERCHANGE
(EDI)
ELETRONIC
TRANSACTION FUND
OF BUSSINESS TRANSFER
(EFT)
VALUE ADDED
INTERNET NETWORK
(VAN)

6.  EDI:-
 THE BASIC MEANING OF THE EDI IS TO TRANSFER THE DATA BETWEEN TWO
COMPUTER SYSTEMS IN AGREED FORMATS AND PROTOCOLS.
 IT HAS TWO MAIN ASPECTS :-
1. DIRECT DATA CAN BE TRANSMITTED SO NO HUMAN INTERVENTION
2. IT CAN INVOLVE MORE THAN OR EQUAL TO 2 BUSSINESS ORGANISATION FOR
TRANSACTION OF THE DATA.
SWIFT- SOCIETY FOR WORLD WIDE INTERBANK FINANCIAL
TELECOMMUNICATION HAS TRANFERED 1 MILLION MESSAGES PER DAY
 EFT :-
 EFT MEANS TRANFERING OF THE FUND BETWEEN BANKING INSTITUTION
USING EDI SO THAT VERY MINIMUM AND IMPORTANT DATA ARE TRANSMITED
BETWEEN THEM IN SOME PREDETERMINED FORMATS.
1. CHIPS –CLEARING HOUSE INTERBANK PAYMENT SYSTEM.
2.FEBWIRE ON OF THE OLDEST IN U.S
IN 1993 BOTH OF THE ABOVE NETWORKS HAVE PASSED U.S $1.5 BILLION IN
EACH BANKING DAY.

7.  VAN :-
 VAN IS A TYPE OF A NETWORK WHICH IS BUILD BETWEEN SPECIFIED
USERS THIS NETWORK IS CAPABLE OF TRANSFERING THE EDI FORMATED
MESSAGES BETWEEN THEM . IT HAS ALSO FACALITY OF STORING THE
MESSAGES INTO THE MAILBOX.
 MAILBOX IS A TYPE OF FACALITY OF STORING A MESSAGES AND STORE
UNTIL THE MAIN DETINIED PERSON READS THE MESSAGE.
THE MAIN DISADVANTAGES IS THAT IT IS SLOW AND CHARGED HIGH BUT
THEN ALSO THE CAN AFFORD IT AS COMPARED TO OTHERS HERE IN VAN
THEY ARE CHARGED ACCORDING TO THE NO. OF CHARACTERS
TRANSMITTED BETWEEN THE PARTIES AND THE SECOND WAY IS TO
CHARGE ON THE BASIS OF RENT FOR USING THE MAILBOX.
 INTERNET :-
 In 1982 the Internet Protocol Suite (TCP/IP) was standardized and the
concept of a world-wide network of fully interconnected TCP/IP
networks called the Internet was introduced. Access to the ARPANET
was expanded in 1981 when the National Science Foundation (NSF)
developed the Computer Science Network (CSNET) and again in 1986
when NSFNET provided access to supercomputer sites in the United
States from research and education organizations. Commercial
internet service providers (ISPs) began to emerge in the late 1980s
and 1990s. The ARPANET was decommissioned in 1990. The Internet
was commercialized in 1995 when NSFNET was decommissioned,
removing the last restrictions on the use of the Internet to carry
commercial traffic.

8.  BUSSINESS 2 BUSSINESS (B2B)
 BUSSINESS 2 CONSUMERS(B2C)
 BUSSINESS 2 GOVERNMENT(B2G)
 CONSUMER 2 CONSUMER(C2C)
 MOBILE COMMERCE (M-COMMERCE)
 NEWLYEMERGING CONCEPT SOCIAL COMMERCE
(S-COMMERCE)

9.  B2B e-commerce is simply defined as e-commerce
between companies. This is the type of e-commerce
that deals with relationships between and among
businesses. About 80% of e-commerce is of this type,
and most experts predict that B2B e-commerce will
continue to grow faster than the B2C segment. The B2B
market has two primary components: e-frastructure
and e-markets. Efrastructure is the architecture of
B2B, primarily consisting of the following:
 logistics – transportation, warehousing and distribution
(e.g., Procter and Gamble);
 application service providers – deployment, hosting and
management of packaged software from a central
facility (e.g., Oracle and Linkshare);
 outsourcing of functions in the process of e-commerce,
such as Web-hosting, security and customer care
solutions (e.g., outsourcing providers such as eShare,
NetSales, iXL Enterprises and Universal Access);

11.  Business-to-consumer e-commerce, or commerce between
companies and consumers, involves customers gathering
information; purchasing physical goods (i.e., tangibles such
as books or consumer products) or information goods (or
goods of electronic material or digitized content, such as
software, or e-books); and, for information goods, receiving
products over an electronic network.
 It is the second largest and the earliest form of e-commerce.
Its origins can be traced to online retailing (or e-
tailing).Thus, the more common B2C business models are the
online retailing companies such as
Amazon.com, Drugstore.com, Beyond.com, Barnes and Noble
and ToysRus. Other B2C examples involving information
goods are E-Trade and Travelocity.
 The more common applications of this type of e-commerce
are in the areas of purchasing products and information, and
personal finance management, which pertains to the
management of personal investments and finances with the
use of online banking tools.

13.  Business-to-government e-commerce or B2G is
generally defined as commerce between companies
and the public sector. It refers to the use of the
Internet for public procurement, licensing
procedures, and other government-related
operations. This kind of e-commerce has two
features: first, the public sector assumes a
pilot/leading role in establishing e-commerce; and
second, it is assumed that the public sector has the
greatest need for making its procurement system
more effective.
 Web-based purchasing policies increase the
transparency of the procurement process (and
reduces the risk of irregularities). To date,
however, the size of the B2G e-commerce market
as a component of total e-commerce is
insignificant, as government e-procurement
systems remain undeveloped.

15.  Consumer-to-consumer e-commerce or C2C is simply
commerce between private individuals or consumers.
 This type of e-commerce is characterized by the growth of
electronic marketplaces and online auctions, particularly in
vertical industries where firms/businesses can bid for what
they want from among multiple suppliers.16 It perhaps has
the greatest potential for developing new markets.
 This type of e-commerce comes in at least three forms:
 auctions facilitated at a portal, such as eBay, which allows
online real-time bidding on items being sold in the Web;
 peer-to-peer systems, such as the Napster model (a protocol
for sharing files between users used by chat forums similar
to IRC) and other file exchange and later money exchange
models; and
 classified ads at portal sites such as Excite Classifieds and
eWanted (an interactive, online marketplace where buyers
and sellers can negotiate and which features “Buyer Leads &
Want Ads”).

17.  M-commerce (mobile commerce) is the buying and selling of goods
and services through wireless technology-i.e., handheld devices
such as cellular telephones and personal digital assistants (PDAs).
Japan is seen as a global leader in m-commerce.
 As content delivery over wireless devices becomes faster, more
secure, and scalable, some believe that m-commerce will surpass
wireline e-commerce as the method of choice for digital
commerce transactions. This may well be true for the Asia-Pacific
where there are more mobile phone users than there are Internet
users.
 Industries affected by m-commerce include:
 Financial services, including mobile banking (when customers use
their handheld devices to access their accounts and pay their
bills), as well as brokerage services (in which stock quotes can be
displayed and trading conducted from the same handheld device);
 Telecommunications, in which service changes, bill payment and
account reviews can all be conducted from the same handheld
device;
 Service/retail, as consumers are given the ability to place and pay
for orders on-the-fly; and
 Information services, which include the delivery of
entertainment, financial news, sports figures and traffic updates
to a single mobile device

18.  E MARKET IS A MARKET WITHOUT ANY
LAND HERE WITH THE HELP OF THE
INTERNET THE TWO PARTIES WHO
WANT TO DO THE TRANSACTION ARE
MEET WITH THE HELP OF AN INTERNET
MEET AT THE SPECIFIC DESTINATION
AND HERE DESTINATION MEANS ANY
SPECIFIC WEBSITE OR ANY SPECIFIC
WEB ADDRESS.
 ADVANTAGES :-
 LESS WESTAGE OF TIME
 NO NEED OF ANY MARKET PLACE
 PAPERLESS WORK
 ACCURATE EXCHANGES OF
INFORMATION
 DIRECT CONTACT WITH PARTIES
 NO NEED OF TRAVELING ANYWHERE
FOR THE TRANSACTION RELATED
 LESS EXPENSIVE

19.  ACTIVE BASED ADVERTISING:- IN THIS TYPE OF
ADVERTISING THE VISITORS WILL GET SOME POINTS
FOR VIEWING THE CONTENT OF THE WEBPAGE AND
THEY CAN CONVERT INTO THE DISCOUNTS BY
PURCHASING A PRODUCT FROM THAT WEBSITE.
 PASSIVE ADVERTISING :- THERE MAINLY 3 TYPES OF
PASSIVE ADVERTISING
 1.BILLBOARDS
 2.CATALOGS OR YELLOW PAGES DIRECTORIES
 3.ENDORSEMENTS
 BILLBOARDS :- HERE THERE IS NO NEED ACTIVE
ADVERTISING BUT WITH THE OTHER ADVERTISING
THE COMPANY’S ADVERTISE WILL BE POP UP IN
BETWEEN THE SEARCHES OF THE PEARSON.

20.  CATALOG OR YELLOW PAGES DIRECTORIES :- HERE ACTIVE
SEARCH IS NEEDED AND THEY ARE PRINTED FOR THE ADVERTISING
THE PRODUCTS OR SERVICES WHICH THEY ARE REPRESENTING HERE
NO UPDATION OF INFORMATION WILL BE POSSIBLE AND IT IS TIME
CONSUMING PROCESS ALSO SAME TYPE OF ADVERTISEMENT ARE
PRINTED IN YELLOW PAGES DIRECTORIES FOR ADVERTISING THE
PRODUCT OR SERVICES.
 CUSTOMER ENDORSEMENTS :- HERE THE CUSTOMER HAVE TO
SHARE THEIR EXPERIANCES AND GIVE THEIR FEEDBACK TO THE
COMPANIES REGARDING ANY PROSUCT OR SERVICES SO IT BECOMES
AN INTERACTIVE MODE OF ADVERTISING SO
+ VE FEEDBACK WILL + SALES AND – VE FEEDBACK WILL – SALES
 PORTAL BASED:- PORTAL BASED ADVERTISING ARE DIVIDED INTO 3
TYPES THEY ARE :-
 FREE PORTAL
 PERSONALISED PORTAL
 SPECIALISED PORTAL

21.  ELECTRONIC PAYMENT SYSTEM MEANS THE
PAYMENT IS DONE ELECTRONICALLY WITH
THE HELP OF LATEST TECHNOLOGY AND
WITHOUT ANY MANUAL WORK.
 THERE HAS BEEN LOTS OF DIFFERENCE
BETWEEN THE TRADITIONAL PAYMENT
SYSTEM AND ELECTRONICALLY PAYMENT
SYSTEM
 IN TRADITIONAL PAYMENT SYSTEM THE
PAYMENT WAS GENERALLY DONE THROUGH
CASH,CHECKS, CREDIT CARD.
 BUT THE MAIN FUNDAMENTAL DIFFERENCE
IS EVERYTHING HAS BECOME DIGITALISED
AND DESINED TO BE HANDELD
ELECTRONICALLY HERE NO CRINKLE OF
CURRENCY BILLS , NO CLINK OF COINS IN
THE POCKETAND NO SIGNING OF CHECKS
HERE EVERYTHING IS STORED IN THE BITS.

22.  CREDIT CARDS
 VALUE EXCHANGE SYSTEMS
 SHARED TERMINAL SYSTEMS
 CREDIT CARD SYSTEMS
 NATIONAL NETWORKS
 ELECTRONIC FUND TRANSFERS
 NON BANK NETWORKS
 BILL PAYMENTS BY TELEPHONE
 POINT OF SALE PAYMENT SYSTEM
 ELECTRONIC PURSES

23. VALUE EXCHANGE SYSTEM
CONSUMER MERCHANT LOCAL BANK
CARD ISSUING PROCESSING BANK IN
BANK CREDIT CARD SYSTEM

24. STEP 1

25. STEP 2

26. STEP 3

27. STEP 4

28. STEP 5

29. STEP 6

30.  • Being able to conduct business 24 x 7 x
365
 •Access the global marketplace
 •Speed
 •Marketspace
 •Opportunity to reduce costs
 •Computer platform-independent
 Efficient applications development
environment
 •Allowing customer self service and
‘customer outsourcing’
 •Stepping beyond borders to a global view

31.  Time for delivery of physical products
 Physical product, supplier & delivery uncertainty
 Perishable goods
 LIMITED AND SELECTED SENSORY INFORMATION
 RETURNIG GOODS
 PRIVACY,SECURITY,PAYMENT,IDENTITY,CONTRACT
 DEFINED SERVICES AND UNEXPAECTED
 PERSONAL SERVICES
 SIZE AND NUMBER OF TRANSACTION

32.  DUE TO THE
FULLY
DEVELOPMENT
OF THE E-
COMMERCE AN
RESEARCH
HAVE BEEN
TAKEN PLACE
AND IT HAS
BEEN NOTICE
THAT ALSO
ELETRONIC
TRAFFIC IS
ALSO
INCREASING AT
THE GREAT
SPEED AS
COMPARED T0
2011 TO 2012

33.  E-commerce has been a new buzzword over the last decade
and is likely to grow exponentially every year in a developing
country like India. But the fact is, it is expected that e-
commerce might catch-up with the growth in overall trade
market.
 According to a report, 40% of internet users in India use e-
commerce websites to find the price of product.
 The most interesting e-commerce statistics revealed by Google
is, 67 percent of e-commerce happens on mobile devices and
as many as 40% of all Google searches in India are done using
mobile phones.
 According to IAMAI report, 80% market share of current online
commerce industry is dominated by travel business and
remaining 20% share constitutes of non-travel businesses such
as electronic retailing, digital download, paid content
subscription, financial services, online classifieds, etc.

34.  The statistics also reveal that, online travel industry is
dominating the online e-commerce industry since last 5
years. However, online users in India have exhibited
willingness to make purchases over the internet, which is
evident from the increasing awareness and growth of net
commerce industry
 Currently, online travel industry is dominated by domestic
air ticket booking (63%), which is followed by online
Railway tickets (28%).
 This year electronics items like mobile
phones, laptops, cameras, home appliances, personal
products like apparels and jewelery and other accessories
had a market share of worth Rs. 2,550 crore, which is
expected to grow by 30% next year.

36. SOURSE BY- IAMAI (INTERNET AND MOBILE ASSOCIATION OF INDIA

37.  Although the US and Canada lead the world in
ecommerce spending, other countries are increasingly
shopping online. By 2014, global ecommerce spending
is projected to increase more than 90 percent. A
sizable portion of that growth is expected to come
from Latin America, where the amount spent online is
projected to more than double.
 If these projections are accurate, annual ecommerce
spending, in billions for 2014 will be:
 North America $202.8
 Western Europe $166.5
 Asia-Pacific $93.2
 Latin America $27.1
 Eastern Europe & Russia $27.0
 Australia $4.9
 Africa & The Middle East $3.0
 Source: Inc. December 2010/January 2011