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. PROCESS OF E-COMMERCE
A consumer uses Web browser to connect to the home page of
a merchant's Web site on the Internet.
The consumer browses the catalog of products featured on the
site and selects items to purchase. The selected items are placed
in the electronic equivalent of a shopping cart.
When the consumer is ready to complete the purchase of
selected items, she provides a bill-to and ship-to address for
purchase and delivery.
5. When the credit card number is validated and the order is completed at
the Commerce Server site, the merchant's site displays a receipt confirming
the customer's purchase.
The Commerce Server site then forwards the order to a Processing
Network for payment processing and fulfillment.
6.
7. ADVANTAGES OF E-COMMERCE
Faster buying/selling procedure, as well as easy to find products.
Buying/selling 24/7.
More reach to customers, there is no theoretical geographic limitations.
Low operational costs and better quality of services.
No need of physical company set-ups.
Easy to start and manage a business.
Customers can easily select products from different providers without moving
around physically.
8. DISADVANTAGES OF E-COMMERCE
Unable to examine products personally.
Not everyone is connected to the Internet.
There is the possibility of credit card number theft.
Mechanical failures can cause unpredictable effects on the total processes.
9. E-COMMERCE BUSINESS MODELS
E-Commerce or Electronics Commerce business
models can generally categorized in following
categories.
• Business - to - Business (B2B)
• Business - to - Consumer (B2C)
• Consumer - to - Consumer (C2C)
• Consumer - to - Business (C2B)
• Business - to - Government (B2G)
• Government - to - Business (G2B)
• Government - to - Citizen (G2C)
10. Business - to - Business
(B2B)
Website following B2B business model sells its
product to an intermediate buyer who then
sells the product to the final customer. As an
example, a wholesaler places an order from a
company's website and after receiving the
consignment, sells the end product to final
customer who comes to buy the product at
wholesaler's retail outlet.
11. Business - to -
Consumer(B2C)
Website following B2C business
model sells its product directly to a
customer. A customer can view
products shown on the website of
business organization. The
customer can choose a product
and order the same. Website will
send a notification to the business
organization via email and
organization will dispatch the
product/goods to the customer.
12. Consumer - to - Consumer
(C2C)
Website following C2C business model helps
consumer to sell their assets like residential
property, cars, motorcycles etc. or rent a room
by publishing their information on the website.
Website may or may not charge the consumer
for its services. Another consumer may opt to
buy the product of the first customer by
viewing the post/advertisement on the
website.
13. Consumer - to - Business
(C2B)
In this model, a consumer approaches website
showing multiple business organizations for a
particular service. Consumer places an estimate
of amount he/she wants to spend for a
particular service. For example, comparison of
interest rates of personal loan/ car loan
provided by various banks via website. Business
organization who fulfills the consumer's
requirement within specified budget
approaches the customer and provides its
services.
14. Business - to -
Government (B2G)
B2G model is a variant of B2B
model. Such websites are used by
government to trade and exchange
information with various business
organizations. Such websites are
accredited by the government and
provide a medium to businesses to
submit application forms to the
government.
15. Government -
to - Business
(G2B)
Government uses B2G
model website to
approach business
organizations. Such
websites support auctions,
tenders and application
submission functionalities.
16. Government - to -
Citizen (G2C)
Government uses G2C model
website to approach citizen in
general. Such websites support
auctions of vehicles, machinery or
any other material. Such website
also provides services like
registration for birth, marriage or
death certificates. Main objectives
of G2C website are to reduce
average time for fulfilling people
requests for various government
services.
18. INTRODUCTION
M-commerce (mobile commerce) is the buying and selling of goods and services
through wireless handheld devices or mobile devices. M-commerce enables users to
access the Internet without needing to find a place to plug in.
In this case, mobile devices refer to devices that connect to a wireless network and are
capable of accessing, interacting and displaying information like : smart phones, tablets.
It includes activities such as buying and selling of goods, online transactions etc.
The main idea behind M-commerce is to enable various applications & services
available on the internet to portable devices to overcome the constraints of a desktop
computer.
19. APPLICATION OF M-COMMERCE
M-COMMERCE FOR FINANCE
1. Pay from their bank account.
2. Transfer funds between account.
3. For example, ICICI Bank has
launched iMobile. its allows the
customers to carry out all internet
banking transactions through mobile
phones.
M-COMMERCE FOR
SHOPPING
1. Online catalog of products for
retail services.
2. Customers are able to shop,
place orders or hire services and
pay for dues through mobile
phones.
M-COMMERCE FOR MOBILE
TICKETING
1. Airlines. Movies, Railways
tickets can be purchased through
mobile phone.
2. For example, With “flybuy
SMS” launched by Kingfisher
Airlines, customers can get the
details of Kingfisher airlines
flights by sending SMS.
M-COMMERCE FOR HOTEL
RESERVATION
Using mobile devices, customer can
reserve for restaurants and hotels
according to their needs.
M-commerce for information
1. Customers get information
like sport news or political news
of their choice.
2. For example, today through
SMS, students are able to check
their university results or public
examination results.
20. ADVANTAGES OF M-COMMERCE
• Convenient, secure and easy to use communication and distribution network.
• Provides wider reach as everyone in today’s world use cell phones.
• Consumers need not go far to the store physically and at the end it saves user’s
time and money.
• As more users use M-Commerce, there are lots of companies use the M-
Commerce site to reach them by giving different and better deals in comparison
to their competitor.
DISADVANTAGES OF M-COMMERCE
• Security issue is one of the major disadvantage of M-Commerce. Chances of
hacking the personal information are more.
• Mobile commerce needs high-speed connectivity of 3G. Otherwise, it is become
hectic for the user to go through entire product purchase process.
21. BASIS OF DIFFERENCE E-COMMERCE M-COMMERCE
Definition
Electronic Commerce refers to the
activities of buying and selling
products and services with the use
of electronic systems such as the
internet.
Mobile Commerce refers to the
process of buying and selling
products and services with the use
of internet/cellular data via
wireless handheld devices.
Technology Web technologies like PHP, HTML..
Mobile applications developed on
Android, IOS, Windows.
Mobility Limited
Less limited because of lighter
weight and smaller size leading to
easier to carry
Reach
Only at the places where the
electricity and the internet are
available
Broader due to its portability
Cost
Less costly for the creation a web
store and the use of internet
More costly for the creation of a
mobile app and the use of cellular
data
KEY DIFFERENCES BETWEEN E-COMMERCE & M-COMMERCE
22. INTERNET BANKING
• It is the use of electronic means
to transfer funds directly from
one account to another, rather
than by cheque or cash.
• Internet Banking allows you to
conduct bank transactions
online, instead of finding a bank
and interacting with a teller.
23. SERVICES• Balance enquiry.
• Transfer of funds.
• Online payment of bills.
• Accrued interest, fees and taxes.
• Transaction details of each account.
• Shopping
• Ticket Booking
• Prepaid Mobile Recharge
• Market Watch
• Investment Services
• Online Applications
• Personal updates
• Accounts, credit card & home loan balances.
• Transfer funds to third party accounts you nominate.
• Open a deposit right from the terminal you are sitting at.
24. How to access Internet Banking?
• Before you can access your account online, you’ll
need to register with your bank for Internet
banking.
• Your bank will give you a registration number or login ID. You’ll also need
a password (IPIN).Your Internet password is different from the PIN you use
with your debit card.
• Once your bank has approved your registration, you’re able to access your
accounts online.
• Some banks have a two stage authentication process
― an additional security measure to protect customers’ accounts and
personal data.
If a two-stage process, you’ll then have to enter another code.The code may
be generated by a security token the bank gives you when you register for
Internet banking, or it could be contained in an SMS message the bank sends
25. Merits of Internet Banking
• Convenience: Unlike your corner bank, online banking sites never
close; they're available 24 hours a day, seven days a week, and they're
only a mouse click away.
• Ubiquity: If you're out of state or even out of the country when a
money problem arises, you can log on instantly to your online bank and
take care of business, 24/7.
• Transaction speed: Online bank sites generally execute and
confirm transactions at or quicker than ATM processing speeds.
• Efficiency: You can access and manage all of your bank accounts,
including IRAs, CDs, even securities, from one secure site.
• Effectiveness: Many online banking sites now offer sophisticated
tools, including account aggregation, stock quotes, rate alerts and
portfolio managing programs to help you manage all of your assets
more effectively. Most are also compatible with money managing
programs such as Quicken and Microsoft Money.
26. Demerits
Start-up may take time: In order to register for your bank's online
program, you will probably have to provide ID and sign a form at a
bank branch. If you and your spouse wish to view and manage your
assets together online, one of you may have to sign a durable power
of attorney before the bank will display all of your holdings together.
Learning curve: Banking sites can be difficult to navigate at first.
Plan to invest some time and/or read the tutorials in order to become
comfortable in your virtual lobby.
Bank site changes: Even the largest banks periodically upgrade
their online programs, adding new features in unfamiliar places. In
some cases, you may have to re-enter account information.
The trust thing: For many people, the biggest hurdle to online
banking is learning to trust it. Did my transaction go through? Did I
push the transfer button once or twice? Best bet: always print the
transaction receipt and keep it with your bank records until it shows
up on your personal site and/or your bank statement.
27. ONLINE SHOPPING
A form of electronic
commerce whereby consumers directly
buy
goods or services from a seller over the
Internet without an intermediary service.
28. • Online stores typically enable shoppers to use
"search" features to find specific models, brands
or items. Online customers must have access to
the Internet and a valid method of payment in
order to complete a transaction, such as a credit
card, an Interac -enabled debit card, or a service
such as PayPal.
• For physical products (e.g., paperback books or
clothes), the e- tailer ships the products to the
customer; for digital products, such as digital
audio files of songs or software, the e- tailer
typically sends the file to the customer over the
Internet. The largest of these online retailing
corporations are Alibaba, Amazon.com, and eBay
29. PROS
Shop 24/7
Comfort of own home
A lot of stores within a click away
Comparison Shopping easier
Discount coupons available online
No Lines
Privacy
Lot of options
Save on Gas/diesel /petrol
CONS
Can only see items one page at
a time
Takes forever if you have a
slow connection
Cant buy with cash
Errors in Billing
Not able to touch or try on
Returns more difficult
Shipping and Handling Cost
Credit Card Insecurity
Lacks the personal touch
30. PAYMENT
• Billing to mobile phones and landlines
• Cash on delivery (C.O.D.)
• Cheque/ Check
• Debit card
• Direct debit in some countries
• Electronic money of various types
• Gift cards
• Postal money order
• Wire transfer/delivery on payment
• Invoice, especially popular in some
markets/countries, such as Switzerland
31. TIPS FOR PROTECTING YOUR SELF
Shop from a secure pc
Shop smart using only sites you know and trust
Shop with your credit card
Consider alternative payment methods
Avoid spam
Keep passwords private
Never give out Social Security Number
Read privacy and security policy
33. INTRODUCTION
E-payment system is a way of making transactions or paying for goods and services through an
electronic medium without the use of check or cash. It’s also called an electronic payment
system or online payment system.
The electronic payment system has grown increasingly over the last decades due to the widely
spread of internet-based banking and shopping.
As the world advance more on technology development, a lot of electronic payment systems
and payment processing devices have been developed to increase, improve and provide secure
e-payment transactions while decreasing the percentage of check and cash transaction.
34. ELECTRONIC PAYMENT METHODS
E-payment methods could be classified into two areas, which are:
CASH
PAYEMENT
SYSTEM
CREDIT
PAYEMENT
SYSTEM
35. CASH PAYMENT SYSTEM
Electronic Funds Transfer (EFT): this is an electronic system used to transfer money from one
bank account to another without any cash exchange by hand. EFT comprises many other
concepts of payment system include:
Direct debit: that is a financial transaction in which the account holder instructs the bank to
collect a specific amount of money from his account electronically for payment of goods or
services.
E-Check: a digital version of an old paper check. It’s an electronic transfer of money from a
bank account, usually checking account
without the use of the paper check.
Electronic billing: this is another form
of electronic funds transfer used by
companies or businesses to collect
payments from customers
over electronic method.
36. Electronic cash (e-Cash): it is a form of an electronic payment system of which certain
amount of money is stored on a client device and made accessible for internet transaction.
Electronic cash is also referred to as digital cash and it make use of e-cash software
installed on the user PC or electronic devices. Example: PayPal.
Stored value card: this is another form of EFT used by stores. Stored value card is a card
variety that has a certain amount of money value stored and can be used to perform the
transaction in the issuer store. A typical example of stored value cards are gift cards.
37. CREDIT PAYMENT SYSTEM
Credit Card: this is another form of the e-payment system which required the use of the
card issued by a financial institute to the cardholder for making payments online or through
an electronic device without the use of cash.
E-Wallet: it is a form of prepaid account that stored user’s
financial data like debit and credit card information to make
an online transaction easier.
Smart card: this use a plastic card embedded with the microprocessor that can be loaded
with funds to make transactions and instant payment of bills. It is also known as a chip
card.
38. BENEFITS OF USING AN E-PAYMENT
SYSTEM
E-Commerce websites use an e-payment system to make it easier and more
convenient to pay for their customers. It comes with many benefits, which are:
More sales by reaching a new audience.
More effective and efficient transactions. It’s because these are made just in
minutes (even with one-click), without wasting customer’s time.
Convenience. Customers can pay for items on e-commerce website at anytime and
anywhere. They just need an internet connected device. As simple as that!
It also lowers the whole transaction cost.
Today it’s easy to add payments to the website, so even a non-technical person
may implement it in minutes and start processing online payments.
Payment gateways and payment providers offer highly effective security and anti-
fraud tools to make transactions reliable.
40. Hidden meaning in the logo - The smile that goes from A to Z tells that the company is willing
to deliver any product, anywhere in the world.
AMAZON is an American e-commerce company started in 1994 by Jeffrey P. Bezos. It is one
of the largest online retailer that managed to survive in its 90s and now is at great heights. It is
the 11th most searched site in the world.
How AMAZON managed its online success while many other companies failed?
Amazon has always been focusing on making additions to its product list. It started its business
by selling books only and now today it deals with nearly 21 product categories. The main reason
for such a strong customer base is – wide range of each product is available. Apart from buying
from this website, it is easy to sell the product through AMAZON too ; which became the reason
for attraction of number of suppliers.
Will AMAZON KINDLE revolutionize the book industry?
With the development of the technology. We humans are getting updated with the technology.
Amazon Kindle is a series of e-readers designed and marketed by Amazon.com. Amazon
Kindle devices enable users to browse, buy, download, and read e-books, newspapers,
magazines and other digital media. In future kindle users will definitely increase.
41. What made the customers attracted to AMAZON and grow the website rapidly?
Amazon has started its yearly membership program in which members on paying $79 per
month get the benefit that their purchased products will be delivered within two days on
discounted prices. Some other membership benefits are instant videos streaming and TV
shows without additional cost.
Amazon has focused to start a separate website for each country :
amazon.in for India
amazon.fr for France
amazon.de for Germany
amazon.it for Italy.
