E COMMERCE

Basic knowledge about e-commerce and its process, its history, and various types of e-commerce with advantages and disadvantages.

1. E-COMMERCE
PRESENTED BY :
HARSH SINGLA
UE174030
BE EEE

2. WHAT IS E-COMMERCE?
ItiscommonlyknownasElectronicMarketing.
“Itconsistsofbuyingandsellinggoodsandservicesoveranelectronicsystems
suchasinternetandothercomputernetworks”.
E-Commerceispurchasing,sellingorexchanginggoodsandservicesover
computernetworks(internet)throughwhichtransactionsortermsofsaleare
producedElectronically.

3. HISTORY
1970s
E-commerce meant the facilitation of commercial transactions electronically, using technology
such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT), allowing
businesses to send commercial documents like purchase orders or invoices electronically.
1980s
The growth and acceptance of credit cards
Automated teller machines (ATM)
Telephone banking
Airline reservation systems

4. HISTORY
1990s
The Internet commercialized and users flocked to participate in the form of dot- coms, or
Internet start-ups
Innovative applications ranging from online direct sales to e-learning experiences
2000s
Many European and American business companies offered their services through the
World Wide Web.
Since then, People began to associate a word “e-commerce” all over the world.

5. PROCESS OF E-COMMERCE
•Aconsumeruseswebbrowsertoconnecttothehomepageofmerchant’s
websiteontheinternet.
•Theconsumerbrowsesthecatalogsoftheproductsavailableonthesiteand
selectsitemstopurchase. Theselecteditemsareplacedintheelectronic
equivalentofashoppingcart.
•Whentheconsumerisreadytocompletethepurchaseofselecteditems,he
providesabill-toandship-toaddressforpurchaseanddelivery.
•Whenthemerchant’swebpagereceivesthisinformation,itcomputesthetotal
costoftheorder-includingtax,shippingandhandlingchargesandthendisplays
thetotaltothecustomer.

6. PROCESS OF E-COMMERCE
•Thecustomercannowprovidepaymentinformation,suchasacreditcard
number,andthensubmittheorder.
•Whenthecreditcardnumberisvalidatedandtheorderiscompletedatthe
commerceserversite,themerchant’ssitedisplaysareceiptconfirmingthe
customer’spurchase.
•TheCommerceServersitethenforwardtheordertoaProcessingNetworkfor
paymentprocessingandfulfillment.

7. TYPES OF E-COMMERCE
BUSINESS-TO-BUSINESS(B2B)
BUSINESS-TO-CONSUMER(B2C)
CUSTOMER-TO -CUSTOMER(C2C)
CUSTOMER-TO -BUSINESS(C2B)

8. BUSINESS-TO -BUSINESS
B2Bidentifiesboththeselleraswellasthebuyerasbusinessentities.B2Bcoversa
largenumberofapplications,whichenablesbusinesstoformrelationshipswith
theirdistributors,re-sellers,suppliers,etc.FollowingaretheleadingitemsinB2B
eCommerce.
•Electronics
•ShippingandWarehousing
•Paper
•Officeproducts
•Food
•Agriculture

9. BUSINESS-TO -CONSUMER
InB2Cmodel,abusinesswebsiteisaplacewhereallthetransactionstakeplace
directlybetweenabusinessorganizationandaconsumer.IntheB2Cmodel,a
consumergoestothewebsite,selectsacatalog,ordersthecatalog,andanemailis
senttothebusinessorganization. Afterreceivingtheorder,goodsaredispatched
tothecustomer.FollowingarethekeyfeaturesoftheB2Cmodel−
Heavyadvertisingrequiredtoattractcustomers.
Highinvestmentsintermsofhardware/software.
Supportorgoodcustomercareservice.

10. BUSINESS-TO -CONSUMER MODEL

11. CUSTOMER-TO-CUSTOMER
•Customertocustomer(C2C)isabusinessmodelthatenablescustomersto
tradewitheachother,frequentlyinanonlineenvironment.OnlineC2C
companysitelikeeBaywhichsellproductsorservicesthroughaclassifiedor
auctionsystem.
•C2Cbusinessesareatypeofbusinessmodelthatemergedwithe-commerce
technologyandthesharingeconomy.
•SomeC2Ccompanieshaveproblems,suchasalackofqualitycontroland
paymentguarantees.

12. CUSTOMER-TO-BUSINESS
Consumer-to-business(C2B)isabusinessmodelinwhichconsumers
(individuals)createvalueandbusinessesconsumethatvalue.Anotherform
ofC2Bistheelectroniccommercebusinessmodelinwhichconsumerscan
offerproductsandservicestocompanies,andthecompaniespaythe
consumers.
TheadventoftheC2Bschemeisdueto:
Theinternetconnectinglargegroupsofpeopletoabidirectional
network; thelargetraditionalmediaoutletsareone-directional
relationshipswhereastheinternetisbidirectional.
Decreasingcostsoftechnology;individualsnowhaveaccessto
technologiesthatwereonceonlyavailabletolargecompanies(digital
printingandacquisitiontechnology,high-performancecomputers,and
powerfulsoftware).

13. ADVANTAGES OF E-COMMERCE
Easyaccess24hoursaday.
Youcanshopanywhereintheworld.
Reducedprices.
Lowoperationalcostsandbetterqualityof
services.
Noneedofphysicalcompanyset-up.
Easytostartandmanageabussiness.
Fasterbuying/sellingprocedure,aswellas
easytofindproducts.

14. DISADVANTAGES OF E-COMMERCE
Noteveryoneisconnectedtotheinternet.
Unabletoexamineproductspersonally.
Thereisapossibilityofcredit-cardnumbertheft.
Mechanicalfailurescancauseunpredictableeffectsonthetotalprocesses.
Onaverageonly1/9thofstockisavailableontheinternet.

15. SUMMARY AND CONCLUSION
TheInternethasleadtothebirthandevolutionE-commerce.
E-commercehasnowbecomeakeycomponentofmanyorganizationsinthe
dailyrunningoftheirbusiness.
AstheInternetandinturnE-commercehasdeveloped,andcontinuestoevolve
andgrow,itisvitalthatanyorganization,inanyparticularindustry,mustbaseits
strategicplanningaroundsucharapidlygrowingmedium.

16. THANK YOU