This presentation will describe about the basics of E-commerce and their benefits and drawbacks.

1. COMPUTER APPLICATIONS
CLASS X (Code 165)
TOPIC:
UNIT 3: Cyber Ethics : E-commerce
By
HIMANSHU PATHAK

2. Contents
• Introduction
• Types of E-commerce
• Advantages of E-commerce
• Drawbacks of E-commerce
– Security Threats
– Privacy
– Fraud
• Secure Data transmission
– Security Measures
– Secure Socket Layer

3. Introduction
• E-commerce is also known as electronic
commerce or internet commerce.
• E-Commerce means buying and selling of
goods, products, or services over the internet.
• The standard definition of E-commerce is
a commercial transaction which is happened
over the internet.
• Online stores like Amazon, Flipkart, Myntra, Olx
are some examples of E-commerce websites.

4. Cont…
• To understand what e-commerce is with an
example, consider a scenario wherein we log in
to the Flipkart website.
• On this website, we get the chance to interact
with the vendor, get information about the
product like images, and detailed descriptions in
the form of text.
• If we like the product, we place the order by
sharing a delivery address and making the final
payment.

5. Types of E - Commerce
• Business to Business (B2B)
– Here the companies are doing business with each
other.
– The end consumer is not involved in any transaction.
– So the online transactions only involve
the manufacturers, wholesalers, retailers etc.
• Business to Consumer (B2C)
– Here the company will sell their goods and/or
services directly to the consumer.
– Popular examples are Amazon, Flipkart etc.

6. Cont…
• Consumer to Consumer (C2C)
– The consumers are in direct contact with each other.
– No company is involved.
– It helps people sell their personal goods and assets
directly to an interested party.
– OLX, Quikr etc follow this model.
• Consumer to Business (C2B)
– This is the reverse of B2C.
– So the consumer provides a good or some service to
the company.
– Say for example an IT freelancer who demos and sells his
software to a company.

7. Advantages of E - Commerce
• E-commerce has eliminated the geographical
barrier. Buyer and seller can communicate from
any part of the world.
• E-commerce is the 24*7 available shop, i.e. the
website is available at any time for shopping.
• It provides quick delivery of goods.
• Customer complaints are also addressed quickly.

8. Drawbacks of E - Commerce
• The start-up cost of e-commerce is high.
• Not all websites get success.
• Security is the primary concern in e-commerce.
• Due to interaction in the online medium,
miscommunication between customer and
company occurs.
• There are also incidents when the shipments are
misplaced, or the wrong order is delivered.

9. Security Threats
• Threat can be anything that can take advantage
of a vulnerability to breach security.
• Software attacks means attack by viruses,
Worms, Trojan Horse etc.
• Virus is malicious codes/program that causes to
data and files on a system.
• A Worm is a self replicating program which eat
up the entire disk space.
• Trojan horse is a program that appears harmless
code but actual performs malicious function.

10. Privacy
• Privacy means the extent to which a user’s data is kept
secret.
• It is the most important factor because it builds trust
among users/ customers.
• During an online transaction, many personal details of
customers such as credit/ debit card numbers, contact
information, etc. are provided to the merchant company.
• Sometimes they sell it to other companies to make profits
which may lead to cyber-crime against the user.
• Thus, it is important to protect the privacy of the user.
• To do so, merchant companies use HTTPS/ SSL protocol
along with firewall.

11. Fraud
• Fraud is an act of cheating user by various
means to steal his wealth.
• E-commerce is any type of false or illegal
transaction completed by someone from a bank
account of other person without his/her
permission. It is also called Cyber Crime.
• Some examples are charity fraud, online ticket
fraud, online gambling fraud, prize claiming etc.

12. Secure Data Transmission
• Following are the essential requirements for safe
e-commerce transaction:
– Confidentiality: Information should not be accessible
to an unauthorized person.
– Availability: Information should be provided
wherever and whenever required within time limit.
– Authenticity: There should be a mechanism to
authenticate a user.

13. Security Measures
• Encryption: Sender send the data after
encryption by using cypher code and only
authorized user who has a decrypt key, only get
information.
• Digital Signature: It ensures the authenticity of
the information.
• Security certificates: It is a unique digital id used
to verify the identity of an individual website or
user.

14. Secure Socket Layer - SSL
• Secure Data Transmission is the transfer of
data over a secure channel using encrypting
protocols such as SSL, SSH etc.
• Secure Socket Layer is the most commonly
used protocol and have the following security
measure:
– Authentication
– Encryption
– Integrity

15. Summary
• We learned:
E-commerce & their related issues.
• In the next class, we will start Unit IV –
Scratch in detail.
•Thanks