The document provides an overview of e-commerce and the e-commerce supply chain. It defines what e-commerce is, discusses the different types of e-commerce models (B2B, B2C, C2B, C2C), and describes the key components of a typical e-commerce transaction including websites, transaction processing systems, payment systems, and management of the supply chain. It also briefly discusses some threats to e-commerce like theft of intellectual property and provides tips on how to protect privacy online. Finally, it walks through an example of purchasing a pen drive on the Flipkart e-commerce platform to illustrate the end-to-end e-commerce transaction process.

1. Made –by
1. Ajeet verma-1066
2. Vineet kumar-1061
3. Tausheen saifi-
4. Dushyant-1051
5. Manoj kumar-1058

2. What is a Commerce.
 According to a dictionary.com
 Commerce is a division of trade or production which deals
with the exchange of goods and services from producer to
final consumer
 It comprise the trading of something of economic value
such as goods, services, information, or money between
two or more entities.

3. 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.

4. Simple E-Commerce Approaches for Getting
Started
Online auction and shopping websites are where people and
businesses buy and sell goods and services worldwide

5. Things You Need to Know About Selling
Online
 Obtain Internet access and an e-mail address
 Register as a seller on an Internet auction site
 Establishing a payment system to receive your money
 Create a listing to offer your product
 Actively sell your product during the offering time
 Arrange payment and shipping
 Buyer and seller feedback to the Internet auction site

6. Obtaining Internet Access and an E-mail
Address
 Free Internet access is often available in the community
 Free e-mail accounts are available through several reputable
internet sites

7. Register as a Seller
• Basic Steps:
– Enter basic information--is it secure?
– Choose your User ID and password
– Click on the register link at the top of most internet auction
pages
– Get a confirmation e-mail

8. Establish a Payment System
• Requirements for efficient, secure
sales:
– Local bank account to receive
payments
– Secure payment method for
customers
 PayPal
(https://www.paypal.com/)

9. Create a Listing
 Decide what to sell
 Complete online listing form
 Auction format
 Fixed price format
 Classified ad format
 “Store” format
 Select a category
 Specify a title
 Write a description
 Take digital photographs
 Beginning and ending times for the auction
 Other listing information

10. Selling the Product
 Monitor the process regularly
 Check e-mail and the auction
 Communicate with interested buyers
 Reply to information requests quickly
 Promptly close the sale
 Notify winning bidder
 Confirm purchase

11. Payment and Shipping
 Monitor payment method
 Ship product when payment is received
 Pack product properly
 Insure the product
 Get a tracking number
 Use a reputable carrier
 USPS
 UPS
 FedEx
 DHL

12. Buyer and Seller Feedback
 Use the auction site process for buyer
and seller feedback
 Feedback is important to create a
trustworthy online auction
community
 Trust will build sales

13. Slide 13
E-Commerce
Check-sheet,
Sales Listing
Worksheet, and
Sales Log

15. Activities for Getting Started!
 In group discussions, identify free local computer
and e-mail access resources
 Churches, public libraries, schools
 Ask friends and relatives for assistance
 Observe how to use e-mail and the Internet
 Explore online Internet auctions with group
members
 Perform searches for products you might make
 Monitor auction activity
 Determine shipping options and costs
 Calculate realistic prices for products to be
sold

16. Keeping Track – Recordkeeping and
Internet Transactions
 Basic financial skills needed
 Basic recordkeeping
 Sales tax
 Income tax
 How to get paid?

17. Simple accounting approaches of keeping records
 Use IRS Schedule C as template
 Organize a simple ledger
Recordkeeping

18. Schedule C

19. Simple Ledgers

20. Sales Taxes
 The state tax authority determines current policies
 Sales tax may be state, county, or city specific
 Most states do not require the Internet seller to pay sales
tax on out-of-state sales
 Local extension workers may be able to help with setting up
a sales tax account if necessary

21. Personal Income Taxes
 Profits from e-Commerce sales are subject to taxes
 Federal, State, and Local income taxes
 Self-employment taxes
 Portion of e-Commerce revenues should be set aside in a bank
account
 Forms to become familiar with
 IRS Form 1040 Schedule C
 IRS Schedule SE
 State income tax form (state-dependent)

22. How to Get Paid: The Need for a Local Bank
Account and Third Party Payment System
 You must develop trust in credit and banking
systems
 Bank checking account is critical for e-Commerce
selling
 PayPal third party payment account is strongly
advised
 Provides a safe and secure method to purchase
goods
 Speeds up the seller’s receipt of funds from a
sale
 Bank and PayPal fees should be taken into
consideration when setting product prices

23. Activities to Develop Basic Financial Skills
 Financial Literacy Discussions
 Discuss feelings about banks and payment systems
 Discuss current methods of handling personal finances
 Discuss how to use credit properly and the cost of interest
 The group should take the Rutgers Financial Fitness Quiz at
http://njaes.rutgers.edu/money/ffquiz
 Discuss the need for basic recordkeeping
 Work in groups to review the IRS Schedule C (1040 form)
 Discuss why good record are important to the success of any
business, even small home-based businesses

24. Get Started
 Examples have been provided
 Your rural life skills can become marketable products
 Opportunities have been identified
 Procedures to follow have been stated
 Financial management issues have been addressed
 Now it’s up to you to take control of the process and bring a
product to the e-Commerce marketplace
 What is your next step?
 How can we help?

25. Slide 25
E-Commerce Checklist

26. Evaluation
Every educational program can be improved.
We want your judgment of how much this
program has helped you understand how
you can create products to be marketed
through the Internet and how you can place
them for sale on the Internet. Please take a
few moments to fill out the questionnaire
that will be provided by your extension
educator. Your opinions will help us toward
our goal of continual improvement so that
we can serve you better.

27. TRADITONAL BUSSINESS
MANF. UNIT
20%
DISTRIBUTOR
10%
WHOLESALER
10%
RETAILER
10%
CONSUMER
100%
ADVERTISEMENT
50%
DIRECT SELLING
COMPANY COSTOMER

28. History
 Electronic commerce became possible in 1991 when the
internet was opened to commercial use. But it wasn’t until
1994 that it really began to accelerate, with the
introduction of security protocols and high speed internet
connections.
Some important years in the development of E-
COMMERCE SYSTEMS…
 1979:Michael Aldrich demonstrates the first online shopping
system.
 1984: Gates head SIS/Tesco is the first B2C online shopping
and Mrs. snowball, 72, is the first online home shopper.

29.  1984: In April 1984, CompuServe launches the Electronic
Mall in the USA and Canada. It is the first comprehensive
electronic commerce service.
 1996: India MART B2B marketplace establish in India
 1996: ECPlaza B2B marketplace establish in korea.
 2001: Alibaba.com achieved profitability in December 2001.
 2002: eBay acquires PayPal for $1.5 billion. Niche retail
companies Wavfair and Netshops Re found with the
concept of selling product through several targeted
domains, rather than a central portal.
 2003: Amazon.com posts first yearly profit
 2012: US e-commerce and online Retail sales projected to
reach $226 billion, an increase of the 12% over 2011.
 2012: US e-commerce and online Retail holiday sales reach
$33.8 billion, up 13%

30. WHY USE E-COMMERCE
 Loss Entry Cost
 Reduces Transaction Costs
 Access to the Global Market
 Secure Market Shares

31. The Process of E-Commerce

32. E- commerce : the world over
 There are over 2 billion Internet users in the world(almost
1/3 of the world population)
 Retail e-commerce itself in the U.S is predicted to grow at
17% and it will account for $200 billion in sales in the
current year i.e 2012
 China has added the equivalent of the entire population of
France in internet users in each of the last four years(2007-
2011)
 By 2015, china will surpass U.S in terms of total e-
commerce revenues.
 In 2011, Germany’s online trade increased 17% in 2011 to
€21.48 billion.

33. E-Commerce – India
 80 million Internet users
 10 million 3G connections within 6 months of launch, almost
equal to the base of wire line broadband connections
 The 2nd largest user base for Google+ and Orkut in the world
 28% of travel gets booked online; 117 million transactions on
IRCTC alone
 47% of the classifieds business is online
 7% of bank users in India access their accounts online
 25% of IT returns were filed online in 2010-11
 Close to 50% of music revenues in India comes from mobile
downloads

34. Status of ecosystem supporting
e-commerce

35. Components of a typical successful
e-commerce transaction
Seller should have the following components:
 A corporate web site with e-commerce capabilities
(e.g., a secure transaction server);
 IT-literate employees to manage the information flows
and maintain the e-commerce system.

36. Transaction partners
 Banking institution that offer transaction clearing services
(e.g., processing credit card payments and electronic fund
transfers);
 For business-to-consumer transaction, the system must
offer a mass for cost- efficient transport of small package..

37. Government, to establish:
• A legal framework governing e-commerce transactions
(including electronic document, signatures, and the
like);
• Legal institutions that would enforce the legal
framework (i.e., laws and regulations) and protect
consumer and business from fraud, among others.

38. Consumers (in a business-to-
consumer transaction):
 From a critical mass of the population with access tot the
Internet and disposable income enabling widespread use
of credit cards; possess a mindset for purchasing goods
over the Internet rather than by physically inspecting
items.
Firms/business ( in a business-to-business
transaction) that together form a critical mass of
companies (especially within supply chains) with
Internet access and the capability to place and take
orders over the Internet.

40. Types
The scope of e-commerce is vast and includes all
process that a business organization conducts over a
computer network.
HERE IT IS…..
B2B (Business-to-Business)
B2C (Business-to-Business)
C2B (consumer-to-Business)
C2C (consumer-to-consumer)

41. Example of websites
 B2C. www.amazon.com
 C2C: www.eBay.com / olx.com/quicker
 B2B: www.tpn.com
 C2B: www.priceline.com
Let’s visit these web sites in turn and discuss
its features.

42. B2B E-COMMERCE SYSTEM
 Companies doing business with each other such as
manufactures selling to distributors and wholesalers
selling to retailers. Pricing is based on quantity of
order and is often negotiable.

43. B2C E-COMMERCE SYSTEM
 Business 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 in mind with regards
to e-commerce as a whole.

44. C2B E-COMMERCE SYSTEM
 A consumer posts his project with a set budget online
and with in 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. Enlace empowers around the
world by providing the meeting ground and platform
for such transactions.

45. C2C E-COMMERCE SYSTEM
 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 1995. ex-
OLX.IN, Quicker. in etc

46. The E-commerce Supply Chain
 Supply chain management is a key value chain
composed of:
 Demand planning
 Supply planning
 Demand fulfillment

47. Supply Chain Management

48. The E –commerce Supply chain
 E-commerce supply chain management allows
business an opportunity to achieve:
 Increased revenues and decreased costs
 Improved customer satisfaction
 Inventory reduction across the supply chain

49. Model of an Electronic Exchange

50. E-commerce Transaction Processing
 E-commerce transaction processing software:
Connects participants in the e-commerce economy and
enables communication between trading partners,
regardless of their technical infrastructure
 Fully automates transaction process from order placement
to reconciliation
 Web site traffic data analysis software: Processes and
analyzes data from the Web log file to provide useful
information to improve Web site performance

51. Electronic Payment Systems
 Digital certificate: An attachment to an e-mail
message or data embedded in a Web page that verifies
the identity of a sender or a Web site
 Certificate authority (CA): A trusted third party that
issues digital certificates
 Secure Sockets Layer (SSL): A communications
protocol used to secure sensitive data
 Electronic cash: An amount of money that is
computerized, stored, and used as cash for e-
commerce transactions

52. Electronic Payment Systems
 Electronic wallet: A computerized stored value that
holds credit card information, electronic cash, owner
identification, and address information
 Credit card
 Charge card
 Debit card
 Master card

53. Threats of E-commerce
 E-and m-commerce incidents
 Theft of intellectual property
 Intellectual property : music, books, inventions,
painting, and other special items protected by patents,
copyright, or trademarks
 Patents on business processes

54. How to Protect Your privacy While
Online
inciples of Information Systems, Seventh Edition

55. Flip kart is an example of a e-commerce
business

56. Home page of a flip kart computer purchase

57. Like by the computer parts

58. I purchase the pen-drive

59. click on pen drive view buy now

60. Select your pen drive and then
click place the order money
discription

61. Click on place the order

62. The last process of the purchase
pen drive sign. In your flip kart ID
or gmail ID

63. After the sign your Id give your
personal detail

64. Order summary

65. Add gift wrap

66. Payment method

67. Something has wrong so option
you get correct

68. All type pay method in flip kart

69. You choose cash on delivery click
the confirm the order

70. Net banking method payment

71. More bank are there available
select bank click make payment

72. Credit card payment method

73. Credit card from

74. EMI method are there given
but the some condition

75. Debit card method payment from

76. Pay using e-gift voucher

77. Last click for confirm order

78. Reference and Citations
 Google. Com
 Investopedia
 Wikipedia
 Principles of information
systems
 E-commerce Kenneth C.
Laudon, Carol Guercio Traver
 Kimball P.Marshall, Ph.D., Alcorn State University
kimball.p.marshall@netzero.net
 Ilya Smolyaninov, Alcorn State University
 Igor Georgievskii, Alcorn State University
 Leigh Junkin, Alcorn State University