E-Commerce, which is short for electronic
commerce, is the process used to
distribute, buy, sell or market goods and
services, and the transfer of funds
online, through electronic communications
or networks. Electronic commerce is
commonly referred to as Online
commerce, Web commerce, e-Business, e-
Retail, e-Tailing, e-tailing, ecommerce, e-
Commerce, e-commerce, e-com or EC.
Well known eCommerce stores include
sites like eBay, Dell, Walmart and many
With the phenomenal growth of the internet and E-
Commerce, anyone can be open for business on an international
level 24 hours a day, no matter where the business is physically
Even the smallest of businesses can benefit from E-Commerce as
the reduction in overhead costs and the increase in international
sales allows them to expand their client base and their profit
margins. Selling their products and services online has allowed
them to step up their business and process requests in a far shorter
However, there is another important reason why E-Commerce is a
boon to international business i.e. a business owner can choose the
location in which the business is based.
Features of E- commerce:
• Lower transaction costs. If the site is implemented well, the
web can significantly lower order taking costs and customer
• Variety for shoppers: It gives people the opportunity to shop in
• The ability to search large catalogues easily.
• The ability to compare prices between multiple vendors.
E- commerce Enablers
They are a group of companies or
organizations whose business model focus on
providing and delivering the infrastructure
required for e-commerce companies to
operate their e-commerce business
Electronic Payment is a financial exchange that takes
place online between buyers and sellers. The content
of this exchange is usually some form of digital
financial instrument (such as encrypted credit card
numbers, electronic cheques or digital cash) that is
backed by a bank or an intermediary, or by a legal
The various factors that have lead the financial institutions to
make use of electronic payments are:
Decreasing technology cost:
The technology used in the networks is
decreasing day by day, which is evident from the
fact that computers are now dirt-cheap and
Internet is becoming free almost everywhere in
Reduced operational and processing
Due to reduced technology cost the
processing cost of various commerce activities
becomes very less. A very simple reason to
The applications that are used to ease up
payment in ecommerce stores are called
payment gateways. In dealing with business
transactions online, consumers usually use
credit cards as a form of payment in purchasing
certain products or services. The process behind
this is, before receiving any payment via credit
card, they first pass through a merchant account
with a bank and it is then the payment gateway
that connects the a certain website to the bank.
Online shopping is a form of electronic
commerce whereby consumers directly
buy goods or services from a seller over
the Internet without an intermediary
service. An online shop, eshop, e-
shop, webshop, webstore, online store, or
virtual store evokes the physical analogy
of buying products or services at a bricks-
and-mortar retailer or shopping centre.
• E-retail is the sale of a product online.
• It is a type of e-commerce.
• a "retailer" buys goods or products in large quantities from
manufacturers or importers, either directly or through a
wholesaler, and then sells.
Some examples of e- shopping malls are Amazon.com, Barnes &
Noble, Inc., Athlete's Foot Group, Inc. (The), DIP, GameStop Corp., etc.
smaller quantities to the end-user.
Internet banking (or E-banking) means any
user with a personal computer and a browser
can get connected to his bank -s website to
perform any of the virtual banking functions.
In internet banking system the bank has a
centralized database that is web-enabled
. All the services that the bank has permitted on
the internet are displayed in menu.
The traditional branch model of bank is now
giving place to an alternative delivery channels
with ATM network, a borderless entity
permitting anytime, anywhere and anyhow
Through Internet banking, you can check your
transactions at any time of the day, and as many
times as you want to. Where in a traditional
method, you get quarterly statements from the
bank. If the fund transfer has to be made
outstation, where the bank does not have a
branch, the bank would demand outstation
charges. Whereas with the help of online
banking, it will be absolutely free for you.
Some examples of e-banks are:
• Fargo- it has quiken style tools for viewing the
spending habit of yours.
• E*Trade Bank provides excellent alerts (such as
letting you know when your balance is low), but it
doesn't allow you to stop payments on checks
• Citibanks- it has the ability to transfer funds to
another account, user or bank.
Phishing is a way of attempting to
acquire information such as
usernames, passwords, and credit card
details by masquerading as a trustworthy
entity in an electronic communication.
Communications purporting to be from
popular social web sites, auction
sites, online payment processors or IT
administrators are commonly used to lure
the unsuspecting public. Phishing is
typically carried out by e-mail spoofing or
Phishing is an example of social engineering
techniques used to deceive users, and exploits
the poor usability of current web security
technologies. Attempts to deal with the
growing number of reported phishing
incidents include legislation, user
training, public awareness, and technical
Here is an example how an phishing e-mail might look like:
• Spelling and bad grammar
• Beware of links in email. If you see a link in
a suspicious email message, don't click on it.
Rest your mouse (but don't click) on the link to
see if the address matches the link that was
typed in the message. In the example below the
link reveals the real web address, as shown in
the box with the yellow background.
• Threats- Cybercriminals often use threats that
your security has been compromised e.g.
sending e-mail saying that your account may be
• Spoofing popular websites or companies.