E commerce


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E commerce

  2. 2. OVERVIEW <ul><li>What is Ecommerce - an overview </li></ul><ul><li>In its simplest form ecommerce is the buying and selling of products and services by businesses and consumers over the Internet. People use the term &quot;ecommerce&quot; to describe encrypted payments on the Internet. </li></ul><ul><li>Sometimes these transactions include the real-time transfer of funds from buyer to seller and sometimes this is handled manually through an eft-pos terminal once a secure order is received by the merchant. </li></ul><ul><li>Internet sales are increasing rapidly as consumers take advantage of lower prices offer by wholesalers retailing their products. This trend is set to strengthen as web sites address consumer security and privacy concerns. </li></ul>
  3. 3. E-COMMERCE <ul><li>Electronic commerce , commonly known as e-commerce , eCommerce or e-comm , refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks </li></ul><ul><li>the term may refer to more than just buying and selling products online. It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and services. </li></ul>Purchase-to-pay E-procurement Payment   Ticketing Banking Mobile commerce Trading communities Auctions  • Online wallet Advertising Price comparison service Social commerce Marketplace services Banking Food ordering Online flower delivery Online pharmacy DVD-by-mail Travel Retail services Streaming media Electronic books Software Online goods and services Electronic commerce
  4. 6. IT INCLUDES….. <ul><li>► Online business to business transactions </li></ul><ul><li>► Online business to consumer </li></ul><ul><li>transactions </li></ul><ul><li>► Digital delivery of products and services </li></ul><ul><li>► Online merchandising </li></ul><ul><li>► Automated telephone transactions eg </li></ul><ul><li>phone banking </li></ul><ul><li>► EFTPOS and other automated transfer </li></ul><ul><li>Systems </li></ul><ul><li>Automation of commercial transactions using computer and communication technologies </li></ul><ul><li>Facilitated by Internet and WWW </li></ul>
  5. 7. APPLICATIONS <ul><li>Some common applications related to electronic commerce are the following: </li></ul><ul><li>Document automation in supply chain and logistics </li></ul><ul><li>Domestic and international payment system </li></ul><ul><li>Enterprise content management </li></ul><ul><li>Group buying </li></ul><ul><li>Automated online assistants </li></ul><ul><li>Instant messaging </li></ul><ul><li>Newsgroup </li></ul><ul><li>Online shopping </li></ul><ul><li>Online banking </li></ul><ul><li>Shopping cart software </li></ul><ul><li>Teleconferencing </li></ul><ul><li>Electronic tickets </li></ul>
  6. 8. ROLE OF E-COMMERCE <ul><li>Electronic banking </li></ul><ul><li>Many banks are now introducing electronic banking. Using your computer, you can connect to the bank’s computer system via the internet and control your daily financial dealing from home. It reduces the staff and building of banks. May customers pay their bills from their bank accounts using this facility. </li></ul><ul><li>Electronic shopping </li></ul><ul><li>It has become very easy from the people to shop from home using internet. Different manufacturers present their product s on the internet. People can browse the website, place an order and even make a payment using credit card. It has made shopping very easy. </li></ul><ul><li>Conducting Auctions </li></ul><ul><li>Many websites provide the facility of auction. People participate in the auction to purchase a product. They can also pay the price using their credit cards etc. a popular website that provides this facility is eBay. </li></ul><ul><li>Marketing and Advertising </li></ul><ul><li>E-commerce is playing an important part to market and advertise products all over the world. The use of popular websites can be an effective way of introducing a product to the customers. </li></ul>
  7. 9. CONT… <ul><li>Providing customer services </li></ul><ul><li>Businessmen can interact with their customers using the internet. They can discuss different issues about their products. They can also deal with their complaints and provide different services to them. </li></ul><ul><li>Online travel reservations </li></ul><ul><li>Online travel reservation is a popular use of e-commerce, People can reserve seats in airline flights, hotels or car using the internet. </li></ul><ul><li>Online trading </li></ul><ul><li>Online trading is a process of conducting business using the internet. The stockbrokers can do all trading activities electronically. They can submit and receive bids using computers. They can also interconnect with computer screens where brokers match buyers with sellers. It reduces the cost as no paper or special building is required to conduct these activities. </li></ul><ul><li>Videoconferencing </li></ul><ul><li>Video conferencing is a type of conferencing in which video cameras and microphones are used for discussions. It provides an environment of normal meeting. It enables participants to see, hear and present material to one another as if they are in the same room. Video conferencing can speed up business process and procedures. </li></ul>
  8. 10. BENEFITS OF E-COMMERCE <ul><li>Benefits of E-Commerce </li></ul><ul><li>Reduced costs -by reducing labour, reduced paper work, reduced errors in keying in data, reduce post costs </li></ul><ul><li>Reduced time- S horter lead times for payment and return on investment in advertising, faster delivery of product </li></ul><ul><li>Flexibility with efficiency - The ability to handle complex situations, product ranges and customer profiles without the situation becoming unmanageable. </li></ul><ul><li>Improve relationships with trading partners - Improved communication between trading partners leads to enhanced long-term relationships. </li></ul><ul><li>Lock in Customers .- The closer you are to your customer and the more you work with them to change from normal business practices to best practice e-commerce the harder it is for a competitor to upset your customer relationship. </li></ul><ul><li>New Markets - The Internet has the potential to expand your business into wider geographical locations. </li></ul>
  9. 11. CONT… <ul><li>Faster buying/selling procedure, as well as easy to find products. </li></ul><ul><li>Buying/selling 24/7. </li></ul><ul><li>More reach to customers, there is no theoretical geographic limitations. </li></ul><ul><li>Low operational costs and better quality of services. </li></ul><ul><li>No need of physical company set-ups. </li></ul><ul><li>Easy to start and manage a business. </li></ul><ul><li>Customers can easily select products from different providers without moving around physically. </li></ul>
  10. 12. DEMERITS OF E-COMMERCE <ul><li>Disadvantages of Ecommerce </li></ul><ul><li>Any one, good or bad, can easily start a business. And there are many bad sites which eat up customers’ money. </li></ul><ul><li>There is no guarantee of product quality. </li></ul><ul><li>Mechanical failures can cause unpredictable effects on the total processes. </li></ul><ul><li>As there is minimum chance of direct customer to company interactions, customer loyalty is always on a check. </li></ul><ul><li>There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways, all are always prone to attack. </li></ul>
  11. 13. Types <ul><li>BUSINESS-TO-BUSINESS B2B </li></ul><ul><li>CONSUMER B2C </li></ul><ul><li>TO GOVT B2G </li></ul><ul><li>TO CONSUMER C2C </li></ul><ul><li>MOBILE CONSUMER M-COMMERCE </li></ul>
  12. 14. B2B <ul><li>What is B2B e-commerce ? </li></ul><ul><li>B2B e-commerce is simply defined as ecommerce between companies. About 80% of e-commerce is of this type. </li></ul><ul><li>Examples: </li></ul><ul><ul><li>Intel selling microprocessor to Dell </li></ul></ul><ul><ul><li>Heinz selling ketchup to Mc Donalds </li></ul></ul>
  13. 15. B2C <ul><li>What is B2C ecommerce? </li></ul><ul><li>Business-to-consumer e-commerce , or commerce between companies and consumers, involves customers gathering information; purchasing physical goods or receiving products over an electronic network. </li></ul><ul><li>Example: </li></ul><ul><ul><li>Dell selling me a laptop </li></ul></ul><ul><ul><li>Mc Donalds selling me a Big Mac </li></ul></ul>
  14. 16. B2G <ul><li>What is B2G ecommerce? </li></ul><ul><li>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 </li></ul><ul><li>Example: </li></ul><ul><ul><li>Business pay taxes, file reports, or sell goods and services to Govt. agencies. </li></ul></ul>
  15. 17. C2C <ul><li>What is C2C ecommerce? </li></ul><ul><li>Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. </li></ul><ul><li>Example: </li></ul><ul><ul><li>Mary buying an iPod from Tom on eBay </li></ul></ul><ul><ul><li>Me selling a car to my neighbour </li></ul></ul>
  16. 18. M-COMMERCE <ul><li>What is m-commerce? </li></ul><ul><li>M-commerce (mobile commerce) is the buying and selling of goods and services through wireless technology-i.e., handheld devices such as cellular telephones </li></ul><ul><ul><li>Mobile Ticketing </li></ul></ul><ul><ul><li>Information Services </li></ul></ul><ul><ul><li>Mobile Banking </li></ul></ul>
  17. 19. SCOPE OF E-COMMERCE <ul><li>Scope of E-Commerce </li></ul><ul><li>Marketing, sales and sales promotion </li></ul><ul><li>Pre-sales, subcontracts, supply </li></ul><ul><li>Financing and insurance </li></ul><ul><li>Commercial transactions: ordering, delivery, payment </li></ul><ul><li>Product service and maintenance </li></ul><ul><li>Co-operative product development </li></ul><ul><li>Distributed co-operative working•Use of public and privateservices </li></ul><ul><li>Business-to-administrations (e.g. customs, etc) </li></ul><ul><li>Transport and logistics </li></ul><ul><li>Public procurement </li></ul><ul><li>Automatic trading of digital goods </li></ul><ul><li>Accounting </li></ul><ul><li>Dispute resolution </li></ul>
  18. 20. DEFINITONS <ul><li>Ecommerce Definitions you may like to know:: </li></ul><ul><li>Ad Clicks : </li></ul><ul><li>Number of times that a viewer clicks on an ad banner. </li></ul><ul><li>Address Verification : </li></ul><ul><li>Process used by a credit card processor or other party to verify that a customer's ordering address matches their records. </li></ul><ul><li>Automated Clearing House : </li></ul><ul><li>An ACH transaction is an electronic fund transfer through the Federal Reserve Bank from a checking or savings account </li></ul><ul><li>Authorization : </li></ul><ul><li>The process of checking the validity and available balance of a customer's credit card before the transaction can be accepted. </li></ul><ul><li>Bandwidth : </li></ul><ul><li>The amount of information (webpages, text, graphics, video, sound, etc) that is downloaded through a connection. Hiway manages a customer's website based on the amount of data transfer used per month. </li></ul><ul><li>Banner : </li></ul><ul><li>An interactive ad placed on a webpage that is linked to an external advertiser's website or another internal page within the same website. </li></ul>
  19. 21. CONT… <ul><li>Card Not Present&quot; Merchant Account : </li></ul><ul><li>An account that allows merchants to process credit cards without a face to face transaction with the purchaser. </li></ul><ul><li>Certificate Authority : </li></ul><ul><li>A Certificate Authority (CA) is a third party which verifies the identity of merchants and their sites. The certificate authority issues a certificate (also called a digital certificate or an authentication certificate) to an applicant company, which can then put the certificate up on its site. </li></ul><ul><li>Commerce Server : </li></ul><ul><li>The server that manages and maintains all transactional and backend data for a commerce website. </li></ul><ul><li>Cross Promotion : </li></ul><ul><li>The promotion of a website through other traditional forms of advertising such as magazines, newspapers, radio, TV, billboards, etc. </li></ul><ul><li>Delayed Settlement Processing : </li></ul><ul><li>Once a transaction has been authorized, the merchant must ship the hard goods before a transaction can be settled. Delayed settlements are stored online until the merchant selects the transactions for settlement. </li></ul><ul><li>Digital Certificate : </li></ul><ul><li>A Digital Certificate issued by a Certificate Authority certifies that a merchant and a particular website are connected, just as a photo on your driver's licence connects your identity with your personal details. A digital certificate verifies to the shopper that the virtual store is actually associated with a physical address and phone number which can increase the shoppers confidence in the authenticity of the merchant. </li></ul>
  20. 22. CONT… <ul><li>Distribution Channel : </li></ul><ul><li>The method through which a product is sold including retailers, catalogers, internet commerce websites, etc. </li></ul><ul><li>Domain Name : </li></ul><ul><li>The unique name of an internet website. Hiway.com is a domain name. </li></ul><ul><li>Download : </li></ul><ul><li>The transfer of information from the internet to the browsing computer. Drop ShipThe shipping of a product directly from the manufacturer to the customer without requiring inventory carrying by the retailer. </li></ul><ul><li>Electronic Software Distribution : </li></ul><ul><li>Software that can be purchased and downloaded directly from the internet. </li></ul><ul><li>Hit : </li></ul><ul><li>Each time a Web server sends a file to a browser, a &quot;hit&quot; is recorded in the server file logs. </li></ul><ul><li>Home Page: </li></ul><ul><li>The first page through which a viewer usually enters a website. </li></ul><ul><li>HTML : </li></ul><ul><li>Hyper Text Markup Language is the standardized language which allows web browsers to interpret websites. </li></ul><ul><li>HTTP : </li></ul><ul><li>Hyper Text Transfer Protocol is a protocol which allows computers to communicate with each other. </li></ul><ul><li>Keywords : </li></ul><ul><li>Words that may be used by viewers searching for information. Keywords can be purchased from search engine companies so that an appropriate ad banner may be displayed when a viewer searches on a particular word. </li></ul>
  21. 23. CONT… <ul><li>&quot; Off-Line Transaction Processing&quot; : </li></ul><ul><li>Capture of order and credit card information for later authorization and transaction processing through a traditional card swipe terminal or through a computer. </li></ul><ul><li>Order Confirmation : </li></ul><ul><li>An email message notifying a customer that an order has been received and will be processed. </li></ul><ul><li>Order Management System : </li></ul><ul><li>A system that accepts orders and initiates a process that results in the outbound shipment of a finished good. </li></ul><ul><li>Real Time Credit Card Processing : </li></ul><ul><li>On-line authorization of a credit card number in real time informing the merchant that the card has been approved. </li></ul><ul><li>Settlement : </li></ul><ul><li>Once the goods have been shipped to the customer, the merchant can key a transaction for settlement at which time the customer's credit card is charged for the transaction and the proceeds are deposited into the merchant account. </li></ul><ul><li>SSL : </li></ul><ul><li>Secure Socket Layer is an encryption technology on the server that scrambles important data such as credit card numbers and order information when it is being stored or passed from one computer to another. </li></ul><ul><li>Shipping Confirmation : </li></ul><ul><li>An email message that notifies a customer that an order has been shipped. </li></ul><ul><li>URL : </li></ul><ul><li>Uniform Resource Locator which describes the &quot;address&quot; for a document on the internet. </li></ul>