E-Commerce Overview

E-commerce is buying and selling online, like purchasing clothes from Amazon or food from
Zomato.

Definitions

• E-commerce: Shopping for shoes on Flipkart instead of visiting a store.

• Cyber Laws: Rules ensuring safe payments, like OTPs for secure online transactions.

Advantages

• 24/7 Access: Buy groceries from BigBasket anytime.

• Cost-effective: Sellers save money by running an online store instead of renting a shop.
• Convenience: Order pizza online and get it delivered home.

Disadvantages

• Lack of Personal Touch: Can’t try on clothes before buying.

• Security Risks: Hackers stealing card details.
• Internet Dependence: Can’t shop if the internet is down.

Threats

• Cyberattacks: Hacking into bank accounts during online payments.

• Fraud: Fake sellers offering non-existent products.
• Privacy Breach: Sharing customer data without permission.

Managerial Perspective

Managers ensure websites load quickly, like Swiggy delivering food on time.

Rules & Regulations

E-commerce platforms follow refund policies to protect buyers from faulty products.

Cyber Laws

Prevent crimes like someone using stolen card details to shop online.
Relationship Between E-Commerce & Networking

Networking connects devices to enable e-commerce. It allows businesses to interact with

customers and suppliers through the internet. For example, Amazon uses networking to manage
orders, payments, and deliveries.

Different Types of Networking Commerce

1. Internet Commerce: Buying a phone from Flipkart.

2. Intranet Commerce: Employees ordering office supplies through the company's private
network.
3. Extranet Commerce: Sharing inventory details with suppliers through a secure system.

Internet, Intranet & Extranet

• Internet: Public network used by everyone (e.g., browsing YouTube).

• Intranet: Private network within an organization (e.g., employee portal in Infosys).
• Extranet: Controlled access for specific outsiders (e.g., sharing sales reports with a
partner company).

EDI Systems

Electronic Data Interchange (EDI) allows businesses to exchange documents like invoices
digitally. For example, a retailer like Walmart automatically sends orders to suppliers using
EDI.

Wireless Application Protocol (WAP)

WAP enables mobile devices to access web services. For example, checking weather updates on
your phone.

Handheld Devices & Mobility in Commerce

• Handheld Devices: Smartphones and tablets used for e-commerce (e.g., shopping on
eBay).
 • Mobility: Conducting transactions anywhere, anytime, like ordering coffee using the
Starbucks app.

Mobile Computing

Mobile computing means using portable devices for internet access. For instance, paying bills
through Google Pay while traveling.

Wireless Web

The wireless web is accessing websites via mobile networks, such as browsing Facebook on
your phone without Wi-Fi.

Web Security

Web security ensures safe transactions online. For example, SSL encryption protects your credit
card details on shopping sites like Zara.

Infrastructure Requirement for E-Commerce

1. Internet Connection: Fast and reliable, like broadband or 4G.

2. Servers: For hosting websites like Netflix.
3. Payment Gateways: Secure systems like PayPal.
4. Logistics: Delivery systems for e-commerce platforms like DHL for shipping products.

Models Based on Transaction Type

1. Direct Sales: Selling products directly to customers online.

o Example: Buying shoes from Nike's website.
2. Subscription: Customers pay regularly for a service or product.
o Example: Subscribing to Netflix for movies.
3. Freemium: Basic services are free, but premium features cost money.
o Example: Spotify offers free music with ads, but ad-free listening is paid.
4. Marketplace: A platform connecting buyers and sellers.
o Example: Shopping for electronics on Amazon, where multiple sellers list
products.
Models Based on Transaction Party

1. Business-to-Business (B2B)
o Definition: Transactions between businesses.
o Example: A wholesaler supplying office equipment to Infosys.
2. Business-to-Consumer (B2C)
o Definition: Businesses selling directly to consumers.
o Example: Buying a laptop from Dell's online store.
3. Consumer-to-Business (C2B)
o Definition: Individuals offering services or products to businesses.
o Example: A photographer selling stock photos to Shutterstock.
4. Consumer-to-Consumer (C2C)
o Definition: Individuals trading with each other.
o Example: Selling second-hand furniture on OLX.
5. E-Governance
o Definition: Government services provided online for citizens or businesses.
o Example: Filing income tax returns via the government’s online portal.

Strategic Methods for Developing E-Commerce

1. Building an Online Presence

o Description: Create a website or app where customers can shop or access
services.
o Example: Flipkart developed a user-friendly website for online shopping.
2. Search Engine Optimization (SEO)
o Description: Optimize your website to rank higher on search engines, making it
easier for customers to find you.
o Example: Zomato uses keywords like "food delivery near me" to attract
customers.
3. Social Media Marketing
o Description: Promote products and interact with customers through platforms
like Instagram, Facebook, and Twitter.
o Example: Nike showcases new products and runs campaigns on Instagram.
4. Mobile-Friendly Design
o Description: Ensure your website or app works seamlessly on mobile devices.
o Example: Amazon's app makes shopping easy for mobile users.
5. Secure Payment Systems
o Description: Provide safe and diverse payment options to gain customer trust.
o Example: Paytm Mall offers multiple payment methods, including UPI and
credit cards.
6. Personalized Customer Experience
o Description: Use customer data to recommend products or services based on
preferences.
o Example: Netflix suggests shows based on your viewing history.
 7. Efficient Logistics and Delivery
o Description: Develop a reliable delivery system to ensure timely product
delivery.
o Example: Swiggy ensures fast food delivery with real-time tracking.
8. Data Analytics
o Description: Analyze customer behavior to refine strategies and improve
services.
o Example: Myntra tracks customer preferences to tailor sales and discounts.

Supply Chain Management (SCM) Overview

SCM involves managing the flow of goods, information, and finances from the supplier to the
customer. E-commerce has enhanced SCM by introducing digital tools and processes.

E-Logistics

• Definition: Managing transportation, warehousing, and delivery through digital tools.

• Example: Amazon Prime uses technology for faster delivery and tracking orders in real
time.

Supply Chain Portal

• Definition: A web-based platform where businesses collaborate with suppliers and

partners to streamline operations.
• Example: Walmart uses a supply chain portal to track inventory and coordinate with
suppliers.

Supply Chain Planning Tools (SCP Tools)

• Definition: Software that helps forecast demand, plan inventory, and optimize resources.
• Example: SAP Integrated Business Planning predicts product demand and reduces
excess stock.

Supply Chain Execution (SCE)

 • Definition: Tools and processes that ensure supply chain operations (like production,
delivery, and returns) run smoothly.
• Example: FedEx uses SCE tools to manage package deliveries efficiently.

SCE Framework

1. Order Management: Automating order tracking and fulfillment.

o Example: Zomato shows live updates from restaurant preparation to delivery.
2. Inventory Management: Keeping the right stock levels.
o Example: BigBasket tracks stock levels to avoid overordering or shortages.
3. Transportation Management: Optimizing delivery routes.
o Example: DHL uses GPS and analytics to deliver packages faster.

Internet’s Effect on Supply Chain Power

• Definition: The internet has shifted power by increasing transparency and enabling faster
communication.
• Examples:
1. Customers can compare prices across multiple stores instantly on platforms like
Google Shopping.
2. Retailers like Shopify track supplier performance in real time, improving
decision-making.

E-Payment Mechanism

E-payment refers to digital methods of transferring money for goods and services. It ensures
convenience and speed in e-commerce transactions.

Payment Methods

1. Payment Through Card System

o Definition: Using credit, debit, or prepaid cards to make payments online.
o Example: Paying for an Amazon order using a Visa credit card.
2. E-Cheque
o Definition: A digital version of a paper cheque that authorizes electronic fund
transfers.
o Example: Businesses using e-cheques to pay suppliers via platforms like
QuickBooks.
 3. E-Cash
o Definition: Digital money stored electronically for online transactions.
o Example: Using Paytm Wallet to pay for groceries.

E-Payment Threats

1. Phishing: Fake emails or websites trick users into sharing personal information.
o Example: Receiving a fake email pretending to be from PayPal asking for your
password.
2. Hacking: Cybercriminals stealing payment data during online transactions.
o Example: A hacker intercepts your card details while shopping on an unsecured
website.
3. Identity Theft: Fraudsters use stolen personal information to make unauthorized
payments.
o Example: Someone uses your credit card details to make purchases without your
knowledge.

Protections

1. SSL Encryption
o Definition: Ensures data sent between your browser and the website is secure.
o Example: Websites like Flipkart display a padlock icon, showing they’re
encrypted.
2. Two-Factor Authentication (2FA)
o Definition: Adds a second layer of security, like an OTP sent to your phone.
o Example: Google Pay requires an OTP for every transaction.
3. Secure Payment Gateways
o Definition: Platforms that process payments securely.
o Example: Using Razorpay for encrypted online payments.
4. Anti-Phishing Tools
o Definition: Software or alerts that warn users of suspicious websites.
o Example: Browsers like Chrome block phishing sites automatically.

E-payment mechanisms like card systems, e-cheques, and e-cash make transactions faster and
more convenient. However, threats like phishing and hacking require robust protections such as
encryption, secure gateways, and 2FA for safe online payments.
E-Marketing Overview

E-marketing involves using digital platforms to promote and sell products or services. It includes
strategies like online advertising, email marketing, and social media to reach customers.

Types of E-Marketing

1. Home Shopping
o Definition: Shopping for products or services from the comfort of your home
using online platforms.
o Example: Ordering clothes from Myntra or electronics from Amazon without
leaving your house.
2. E-Marketing
o Definition: Promoting products online through websites, social media, search
engines, or email campaigns.
o Example: A business promoting their new product on Instagram or running ads
on Google to attract customers.
▪ Example: Coca-Cola using social media ads to promote their beverages.
3. Telemarketing
o Definition: Marketing products or services over the phone to potential customers.
o Example: A company calls you to offer a new internet plan or a special discount
on a product.
▪ Example: A bank calling to offer a new credit card promotion.

Summary

E-marketing uses digital tools like websites, social media, and emails to reach customers, while
home shopping lets people buy products online easily. Telemarketing is an older method, relying
on phone calls to promote and sell products. Each method helps businesses reach customers in
different ways.

Electronic Data Interchange (EDI) Overview

EDI is the electronic exchange of business documents (like invoices or purchase orders) between
organizations in a standardized format. It replaces traditional paper-based processes, making
business communication faster and more efficient.

Meaning
EDI allows companies to send and receive business documents automatically, without manual
intervention.

• Example: A Walmart supplier automatically receives a purchase order from Walmart

and sends back an invoice, all digitally.

Benefits of EDI

1. Speed: Processes documents instantly.

o Example: A supplier ships goods the same day they receive an order.
2. Accuracy: Reduces errors from manual data entry.
o Example: An invoice is generated without mistakes from typing.
3. Cost Savings: Reduces paper, postage, and administrative costs.
o Example: Companies save money on printing and mailing paper documents.
4. Better Communication: Simplifies communication between businesses.
o Example: A customer’s payment is quickly confirmed when using EDI.

Concepts of EDI

• Document Standards: EDI uses specific formats for documents, so both parties
understand the data.
• EDI Translator: Software that converts documents into EDI format.
o Example: SAP EDI software converts an invoice from one company's format to
another's.

Applications of EDI

1. Order Processing: Automatically sending and receiving purchase orders.

o Example: Amazon sends an order directly to a supplier once a customer
purchases an item.
2. Invoice & Payment: Digital invoices and payments are exchanged between businesses.
o Example: A car manufacturer sends an electronic invoice to a dealer after a
sale.
3. Shipping & Receiving: Shipping notices and receipts are exchanged electronically.
o Example: FedEx and a store exchange shipping details via EDI.
EDI Models

1. Direct EDI (Point-to-Point): Two companies exchange documents directly, without a

middle party.
o Example: Ford and its suppliers send documents directly to each other.
2. EDI via VAN (Value Added Network): A third-party service stores and forwards
documents between businesses.
o Example: A supplier and retailer use a VAN to exchange documents like orders
and invoices.

EDI Protocols

1. UN/EDIFACT (United Nations EDI for Administration, Commerce, and

Transport): A global standard for EDI.
o Example: Used by international shipping companies to exchange customs data.
2. ANSI X12: A standard used in North America for EDI document exchange.
o Example: Used by US retail chains to exchange orders, invoices, and shipping
details.

Data Encryption in EDI

Data encryption ensures the security of data being exchanged through EDI.

1. DES (Data Encryption Standard): A method to encrypt sensitive information.

o Example: When an online retailer sends customer payment information to a
bank, it is encrypted using DES.
2. RSA (Rivest–Shamir–Adleman): A more advanced encryption technique used for
secure communication.
o Example: PayPal uses RSA encryption to secure transactions between users and
merchants.

### Four C's: Simplified Overview with Examples

The Four C's refer to *Convergence, Collaborative Computing, Content Management, and Call
Centers*—all essential for modern businesses. Here's a breakdown in simple terms with
examples.

---

### *1. Convergence*

*What is Convergence?*
Convergence is when different technologies or industries combine to create new ways of doing
things.

#### *Technological Advances in Convergence*

- Example: Smartphones combine calling, texting, internet browsing, and camera features into
one device.

#### *Types of Convergence:*

1. *Technological Convergence:* Combining technologies, like phones and cameras.
- Example: Smart TVs offer internet streaming alongside traditional TV.
2. *Industry Convergence:* Merging industries, like telecom and entertainment.
- Example: Netflix merging media and technology.

#### *Implications of Convergence:*

- It improves convenience and efficiency but can disrupt traditional businesses.
- Example: Uber disrupted taxi services by combining GPS and mobile apps.

#### *Convergence & E-Commerce:*

- Convergence allows online shopping platforms to integrate payment systems, delivery tracking,
and customer support.
- Example: Amazon integrates AI (Alexa), delivery logistics, and customer reviews.

---

### *2. Collaborative Computing*

*What is Collaborative Computing?*
Collaborative computing refers to using technology to help people work together, even if they
are in different places.

#### *Collaborative Product Development:*

- Teams use shared tools to design products together in real-time.
- Example: Engineers using AutoCAD to design cars from multiple locations.

#### *Contract as per CAD (Computer-Aided Design):*

- CAD software ensures design specifications are followed in contracts.
- Example: A contractor uses a CAD blueprint for building a bridge.

#### *Simultaneous Collaboration:*

- Multiple people work on the same task at the same time.
- Example: Google Docs allows employees to edit a document simultaneously.

#### *Security in Collaboration:*

- Ensures that only authorized people can access shared data.
- Example: Microsoft Teams uses encryption to protect video call data.

---
### *3. Content Management*
*What is Content Management?*
Content management is about creating, organizing, and delivering digital content like text,
images, and videos.

#### *Definition of Content:*

- Content includes anything shared online, like blog posts, videos, or social media updates.
- Example: A YouTube video explaining a recipe.

#### *Authoring Tools & Content Management:*

- Tools help create and manage content efficiently.
- Example: WordPress helps bloggers manage posts and pages.

#### *Content Partnerships and Repositories:*

- Partnerships: Collaborating with others to create or distribute content.
- Example: Spotify partnering with artists for exclusive releases.
- Repositories: A central place to store content.
- Example: Google Drive storing files for a team.

#### *Web Traffic & Traffic Management:*

- Web traffic: The number of visitors to a site.
- Example: Amazon handles millions of users during Black Friday.
- Traffic management: Ensuring the site doesn’t crash with too many visitors.
- Example: Cloudflare helps websites stay online during high traffic.

#### *Content Marketing:*

- Using valuable content to attract customers.
- Example: A fashion brand posts styling tips on Instagram to promote its clothes.

---

### *4. Call Center*

*What is a Call Center?*
A call center is a place where customer service agents handle calls to solve problems or provide
information.

#### *Need for Call Centers:*

- To help customers quickly and improve satisfaction.
- Example: A telecom company resolves billing issues through its call center.

#### *Tasks Handled by Call Centers:*

1. Answering customer inquiries.
- Example: Helping a customer reset their bank account password.
2. Taking orders.
- Example: Booking a flight ticket over the phone.
3. Troubleshooting issues.
- Example: Fixing internet connectivity problems.

#### *Mode of Operation:*

- *Inbound Call Centers:* Handle incoming calls.
- Example: A customer calls to ask about a product return.
- *Outbound Call Centers:* Agents make calls to customers.
- Example: A bank calls customers to offer loans.

#### *Equipment Used:*

- Headsets, computers, software to log calls, and phone lines.
- Example: VoIP software like Zoom Phone for making calls over the internet.

#### *Strengths of Call Centers:*

- Quick customer support.
- Handles large volumes of inquiries.

#### *Weaknesses of Call Centers:*

- Long wait times during peak hours.
- Dependence on scripts may feel impersonal.

#### *Customer Premises Equipment (CPE):*

- Equipment installed at the customer’s location for communication.
- Example: A router provided by an internet service provider.

---

### Summary with Examples

The Four C's are interconnected and essential for businesses. For instance:
- A *retailer* uses *convergence* (mobile apps for shopping), *collaborative computing*
(shared design tools for new products), *content management* (blogs and videos for marketing),
and *call centers* (customer service) to stay competitive.

Risk of E-Commerce

Overview: E-commerce involves online buying and selling, which can be risky. For example, a
hacker might intercept a customer’s payment information during an online transaction.

Security for E-Commerce: Security measures are taken to protect online transactions from
fraud, theft, and data breaches.

• Example: A customer’s payment details are encrypted during checkout to prevent theft.
Security Standards:

• SSL/TLS (Secure Sockets Layer/Transport Layer Security): Encrypts data between a

web server and browser.
o Example: When you visit an online store, the website uses SSL to secure your
payment information, indicated by "https" in the web address.

Firewall: A firewall prevents unauthorized access to a computer or network by monitoring

incoming and outgoing traffic.

• Example: An e-commerce website uses a firewall to block unauthorized users from

accessing its servers and stealing data.

Cryptography: Cryptography is used to secure sensitive data like credit card numbers and
personal information.

• Example: When you enter your credit card information on an e-commerce site, it’s
encrypted using cryptographic techniques to prevent hackers from accessing it.

Key Management: Managing cryptographic keys securely is vital to prevent unauthorized

access.

• Example: A bank ensures its servers only have access to encryption keys for customer
data when needed, limiting potential breaches.

Password Systems: A secure password system ensures users create strong passwords to protect
their accounts.

• Example: A website requires users to create passwords with at least 8 characters, mixing
letters, numbers, and symbols.

Digital Certificates: Digital certificates verify the authenticity of websites and encrypt data.

• Example: When you visit a shopping website, it has a digital certificate confirming its
identity as legitimate and secure.

Digital Signatures: A digital signature confirms the authenticity and integrity of a message.

• Example: After making an online purchase, the store sends you an order confirmation
with a digital signature, ensuring that the message is genuine and hasn’t been tampered
with.