1.

Introduction to E-Commerce
a) E-Commerce

E-commerce (Electronic Commerce) refers to the buying and selling of goods and services over
the internet. It includes online shopping, digital payments, and electronic data exchanges. It has
revolutionized traditional business methods by enabling global reach, lower costs, and
convenience.

b) E-Business

E-business (Electronic Business) is broader than e-commerce. It includes all online business
activities, such as customer service, supply chain management, and digital marketing. While e-
commerce focuses on transactions, e-business covers overall business operations using
internet technologies.

2. Features of E-Commerce
E-commerce has several unique characteristics:

 Ubiquity: Available 24/7 from anywhere.

 Global Reach: Businesses can sell products worldwide.
 Interactivity: Allows direct customer interaction.
 Personalization: Uses AI to recommend products based on user preferences.
 Cost Reduction: Reduces operational costs through automation.
 Convenience: Customers can shop anytime without visiting physical stores.

3. Pure vs. Partial E-Commerce

 Pure E-Commerce: The entire transaction (product, payment, and delivery) happens
online. Example: Buying an eBook from Amazon Kindle.
 Partial E-Commerce: Some elements of the transaction occur offline, such as physical
product delivery. Example: Ordering a laptop from Dell's website but receiving it via
courier.

4. History of E-Commerce
E-commerce has evolved over several decades:
  1960s: Development of Electronic Data Interchange (EDI) for B2B transactions.
 1979: Introduction of online shopping by Michael Aldrich.
 1991: The World Wide Web (WWW) was made public, enabling online business.
 1995: Amazon & eBay were launched, revolutionizing online retail.
 2000s: Growth of mobile commerce (M-commerce) and social commerce.
 2020s: Rise of AI-driven shopping experiences and blockchain-based payments.

5. E-Commerce Framework
E-commerce operates within a structured framework consisting of:

a) People

Includes customers, businesses, suppliers, IT professionals, and payment providers who interact
within the e-commerce ecosystem.

b) Public Policy

Legal and regulatory guidelines governing e-commerce, such as consumer protection laws and
privacy regulations.

c) Marketing & Advertisement

Digital marketing techniques like SEO, social media ads, influencer marketing, and email
campaigns help businesses attract customers.

d) Support Services

Services such as payment gateways (PayPal, Khalti), logistics (DHL, FedEx), and
cybersecurity ensure smooth operations.

e) Business Partnerships

Collaborations between businesses, suppliers, and technology providers to optimize e-commerce

operations.

6. Types of E-Commerce
E-commerce is classified into several models:

a) Business-to-Consumer (B2C)
  Businesses sell directly to consumers.
 Example: Amazon, Flipkart, Daraz.

b) Business-to-Business (B2B)

 Companies sell products or services to other businesses.

 Example: Alibaba (bulk orders for businesses).

c) Consumer-to-Business (C2B)

 Individuals offer products or services to businesses.

 Example: Freelancing platforms like Upwork, Fiverr.

d) Consumer-to-Consumer (C2C)

 Consumers sell products to other consumers through online marketplaces.

 Example: eBay, Facebook Marketplace.

e) Mobile Commerce (M-Commerce)

 Buying and selling via smartphones and apps.

 Example: TikTok Shop, Uber Eats, and mobile banking apps.

f) Ubiquitous Commerce (U-Commerce)

 Commerce available anytime and anywhere via IoT and smart devices.
 Example: Voice shopping via Amazon Alexa.

g) Social Commerce

 Shopping integrated into social media platforms.

 Example: Instagram Shopping, Facebook Marketplace.

h) Local E-Commerce

 Digital commerce focused on local businesses and communities.

 Example: Food delivery services like Foodmandu (Nepal).

7. Challenges in E-Commerce
Despite its growth, e-commerce faces various challenges:

 Security Risks: Hacking, data breaches, and identity theft.

  Payment Fraud: Unauthorized transactions and chargebacks.
 Logistics Issues: Delayed deliveries and high shipping costs.
 Legal & Taxation Barriers: Different rules in different countries.
 Customer Trust: Fear of scams and lack of physical interaction.
 Digital Divide: Limited internet access in remote areas.

8. Status of E-Commerce in Nepal

E-commerce in Nepal is growing but faces infrastructure and regulatory challenges.

Key Developments:

 Rise of Local Platforms: Daraz, SastoDeal, HamroBazar.

 Growth of Digital Payments: Khalti, eSewa, IME Pay.
 Expansion of Logistics Services: Delivery companies like Pathao and Foodmandu.

Challenges in Nepal:

 Limited Internet Penetration: Rural areas still lack proper connectivity.

 Trust Issues: Many consumers are hesitant to shop online.
 Legal & Tax Issues: Complex import/export regulations.

9. Overview of the Electronic Transaction Act of Nepal

The Electronic Transaction Act (ETA) 2063 (2008) governs digital transactions and
cybersecurity in Nepal.

Key Provisions:

 Legal Recognition of Electronic Transactions: Digital contracts and signatures are

valid.
 Cybercrime Prevention: Defines offenses like hacking, identity theft, and online fraud.
 Regulation of Digital Signatures: Ensures authenticity and security in e-commerce
transactions.
 Penalties for Cybercrimes: Fines and imprisonment for offenses such as data breaches
and financial fraud.

Conclusion
E-commerce is transforming global and local markets, offering opportunities and challenges. In
Nepal, it is expanding rapidly with government support and increasing digital adoption.
However, security, logistics, and regulatory frameworks need improvement to fully harness its
potential.

Unit 2
1. E-Commerce Business Model
A business model describes how a company creates, delivers, and captures value. In e-
commerce, business models outline how companies generate revenue through online platforms.

Key Characteristics of E-Commerce Business Models:

 Online Presence: Businesses operate on websites, mobile apps, or digital platforms.

 Global Reach: Unlike traditional businesses, e-commerce can reach customers worldwide.
 Automation: Digital processes reduce costs and improve efficiency.
 Scalability: E-commerce platforms can grow rapidly with minimal physical expansion.

2. Elements of a Business Model

A successful e-commerce business model consists of the following key elements:

a) Value Proposition

 Defines what makes a product/service unique and valuable to customers.

 Example: Amazon’s value proposition—fast delivery and a wide selection of products.

b) Revenue Model

 Describes how the business earns money (subscription, commission, advertising, etc.).

c) Market Opportunity

 Identifies the target audience and potential market size.

d) Competitive Advantage

 Unique features that set a business apart from competitors.

 Example: Netflix’s advantage—original content and personalized recommendations.
e) Market Strategy

 How the business plans to attract and retain customers.

 Includes SEO, social media marketing, and affiliate programs.

f) Organizational Development

 The internal structure and team needed to support operations.

g) Financial Viability

 Estimating costs, revenue, and profit margins to ensure sustainability.

3. Types of Revenue Models

E-commerce businesses use various revenue models to generate income:

a) Sales Revenue Model

 Direct selling of goods or services.

 Example: Amazon, Flipkart, Daraz.

b) Subscription Model

 Customers pay recurring fees for continued access to services.

 Example: Netflix, Spotify, Adobe Creative Cloud.

c) Advertising Revenue Model

 Businesses earn money by displaying ads on their platforms.

 Example: Google Ads, Facebook Ads, YouTube Ads.

d) Affiliate Revenue Model

 Earns commissions by referring customers to other websites.

 Example: Amazon Associates, ClickBank.

e) Transaction Fee Model

 Charges a fee per transaction processed.

 Example: PayPal, Visa, MasterCard.

f) Freemium Model
  Offers basic services for free, but charges for premium features.
 Example: LinkedIn, Dropbox, Canva.

4. B2C Business Models

Business-to-Consumer (B2C) models focus on selling products/services directly to individual
customers.

a) E-Tailer (Online Retailer)

 Digital version of traditional retail stores.

 Example: Amazon, Daraz, Myntra.

b) Community Provider

 Creates online communities where users interact and businesses can advertise.
 Example: Facebook, Reddit, LinkedIn.

c) Content Provider

 Delivers digital content (news, music, videos, books).

 Revenue from subscriptions or ads.
 Example: Netflix, YouTube, Spotify.

d) Portal

 Aggregates multiple services in one place, such as news, search, and email.
 Example: Yahoo, Google, MSN.

e) Transaction Broker

 Facilitates online transactions and earns fees per transaction.

 Example: PayPal, Stripe, Stock Trading Platforms.

f) Market Creator

 Provides a platform for buyers and sellers to trade.

 Example: eBay, Airbnb, Uber.

g) Service Provider

 Offers online services such as cloud storage, education, and consulting.

 Example: Dropbox, Coursera, Zoom.
5. B2B Business Models
Business-to-Business (B2B) models involve transactions between companies.

a) Net Marketplaces
Public platforms where multiple businesses buy/sell products or services.

 E-Distributor: Supplies goods to businesses (Example: Alibaba).

 E-Procurement: Automates corporate purchasing (Example: SAP Ariba).
 Exchanges: Platforms where multiple buyers and sellers trade (Example: TradeIndia).
 Industry Consortia: B2B networks formed by industry leaders to streamline procurement.

b) Private Industrial Networks (PINs)

Exclusive B2B platforms where businesses collaborate.

 Single-Firm Network: Large companies manage supplier relationships (Example: Walmart’s

supply chain system).
 Industry-Wide Network: Several firms within an industry share resources (Example: Covisint in
the automotive sector).

6. Electronic Data Interchange (EDI)

EDI is the structured transmission of data between businesses in a standardized format.

a) EDI Layered Architecture

1. Application Layer: Interacts with business applications.
2. Processing Layer: Converts data into a standardized format.
3. Transport Layer: Transfers EDI messages securely.

b) EDI in E-Commerce
 Automates B2B transactions, reducing manual paperwork.
 Used in supply chain management and procurement.
7. E-Commerce and the Industry Value Chain
The Industry Value Chain describes how e-commerce affects traditional business processes:

 Inbound Logistics: Online supply chain management.

 Operations: Digital business automation.
 Outbound Logistics: Faster delivery systems.
 Marketing & Sales: Digital marketing and AI-driven recommendations.
 Service: Online customer support and feedback.

8. Firm Value Chain & Value Web

a) Firm Value Chain

A company’s value chain outlines how it creates value at each stage:

1. Primary Activities: Operations, logistics, sales, and customer service.

2. Support Activities: HR, technology, procurement.

b) Firm Value Web

 A value web is a network of interconnected businesses that collaborate digitally.
 More flexible and efficient than traditional value chains.
 Example: Apple’s supplier network for iPhone manufacturing.

9. Case Studies of Global & Local E-Commerce Systems

a) Global Case Studies

1. Amazon

 Started as an online bookstore, now a global e-commerce leader.

 Uses AI for personalized recommendations.
 Strong logistics and warehousing infrastructure.

2. Alibaba

 China’s largest e-commerce platform.

 Focuses on B2B and B2C models.
 Operates AliExpress, Taobao, and Tmall.
b) Local Case Studies (Nepal)
1. Daraz Nepal

 Largest e-commerce platform in Nepal.

 Uses the marketplace model where sellers list products.
 Offers digital payments (Khalti, eSewa) and COD (Cash on Delivery).

2. Foodmandu

 Nepal’s leading online food delivery service.

 Connects customers with local restaurants via an app.

3. SastoDeal

 One of Nepal’s top e-retail platforms.

 Partners with global brands and local sellers.

Conclusion
E-commerce business models define how companies generate revenue, interact with customers,
and create value. The B2C and B2B models dominate the online marketplace, with innovative
revenue models ensuring sustainability. In Nepal, platforms like Daraz, SastoDeal, and
Foodmandu are growing despite challenges like logistics and digital payment adoption.

Unit 3
1. Introduction to E-Payment System
An Electronic Payment System (EPS) enables businesses and consumers to process
transactions digitally without using cash. It includes credit/debit cards, mobile wallets, digital
cash, e-checks, and virtual currencies.

Key Characteristics of E-Payment Systems

 Convenience: Payments can be made anytime, anywhere.

 Security: Uses encryption and authentication for safe transactions.
 Speed: Faster than traditional banking methods.
 Cost-effective: Reduces transaction costs compared to physical banking.
2. Online Credit Card Transaction
Credit card transactions are one of the most common e-payment methods.

Steps in an Online Credit Card Transaction

1. Customer places an order and enters credit card details.

2. Payment gateway encrypts the data and forwards it to the acquiring bank.
3. Bank sends request to the card network (Visa, Mastercard, etc.).
4. Card network forwards the request to the issuing bank for authentication.
5. Issuing bank approves or declines the transaction.
6. Funds are transferred from the customer’s bank to the merchant.

Security Measures

 CVV (Card Verification Value)

 3D Secure Authentication (Verified by Visa, Mastercard SecureCode)
 Tokenization

3. Online Stored Value Payment System

This system allows users to pre-load funds into a digital account, which can be used for
transactions.

Examples

 Gift Cards (Amazon, Google Play, iTunes Cards)

 Prepaid Cards (Payoneer, Skrill, Neteller)

4. Digital and Mobile Wallets

Digital wallets store payment information on a smartphone or computer, allowing quick
transactions.

Types of Digital Wallets

1. Closed Wallets – Used only for specific services (e.g., Amazon Pay).
2. Semi-Closed Wallets – Usable at multiple merchants (e.g., Khalti, eSewa).
3. Open Wallets – Linked to banks and used for all types of payments (e.g., PayPal, Google Pay).

Popular Mobile Wallets

  Google Pay, Apple Pay, Samsung Pay
 Khalti, eSewa (Nepal)

5. Smart Cards
A smart card is a plastic card with an embedded microchip for storing and processing data.

Types of Smart Cards

 Contact Smart Cards: Inserted into a reader (e.g., ATM cards).

 Contactless Smart Cards: Uses NFC technology (e.g., Metro Cards, RFID-based ID cards).

Uses

 Banking and payments

 Identity verification (Aadhaar card, passports)
 Public transportation (Oyster Card, Metro Cards)

6. Social/Mobile Peer-to-Peer (P2P) Payment Systems

P2P payment systems allow users to transfer money directly using social or mobile platforms.

Popular P2P Payment Systems

 Venmo, Cash App, Zelle (USA)

 WeChat Pay, Alipay (China)
 Khalti, eSewa, IME Pay (Nepal)

Features

 Instant money transfer between users.

 Integration with social media (Facebook Messenger Pay, WhatsApp Pay).
 Secure authentication (Face ID, PIN, OTP).

7. Digital Cash (E-Cash)

E-Cash is a digital version of physical currency used for online transactions.

Examples
  Bitcoin and other cryptocurrencies
 Central Bank Digital Currencies (CBDCs)
 PayPal balance

Advantages

 Anonymity in transactions
 Instant settlements
 No need for traditional banking

8. E-Checks (Electronic Checks)

E-checks are digital versions of paper checks that allow online transactions.

How E-Checks Work

1. Customer authorizes the payment via an e-check.

2. Bank processes the transaction electronically.
3. Funds are transferred from payer to recipient.

Advantages

 Faster than paper checks

 Secure with digital signatures
 Lower processing fees

9. Virtual Currency
Virtual currency is a digital asset used as a medium of exchange within a particular
environment.

Examples

 Cryptocurrencies (Bitcoin, Ethereum, Dogecoin)

 Game Currencies (Robux, V-Bucks, FIFA Coins)
 Loyalty Points (Airline Miles, Credit Card Rewards)
10. Electronic Billing Presentment and Payment (EBPP)
System
EBPP enables consumers to view and pay bills online.

Types of EBPP Systems

 Bill Direct System (Users pay bills via the company’s website).
 Bank-Aggregator Model (Banks consolidate multiple bill payments).

Examples

 Utility bill payments via mobile wallets.

 Online tax and insurance payments.

11. Auctioning in E-Commerce

E-commerce platforms use different auction types to sell products.

Types of Auctions

1. English Auction (Ascending Price Auction)

o Bidders continuously place higher bids.
o Example: eBay auctions.

2. Dutch Auction (Descending Price Auction)

o The price starts high and decreases until a buyer accepts.
o Example: Flower markets in the Netherlands.

3. Vickery Auction
o The highest bidder wins but pays the second-highest price.

4. Double Auction
o Both buyers and sellers submit bids, and the system matches them.
o Example: Stock Exchange Trading.

12. Secure Electronic Transaction (SET) Protocol

SET is a security protocol developed by Visa and Mastercard to enable secure online credit card
transactions.
Features of SET

 Encryption: Protects credit card details.

 Digital Signatures: Ensures authenticity.
 Dual Signature: Prevents fraud by separating payment details from order details.

Participants in SET

1. Cardholder: Purchases products online.

2. Merchant: Sells products and requests payments.
3. Issuer Bank: Issues credit cards.
4. Acquirer Bank: Processes transactions for merchants.
5. Payment Gateway: Facilitates transaction security.

SET Transaction Process

1. Cardholder Registration: Customer’s card is enrolled for SET.

2. Merchant Registration: Merchant registers with a bank.
3. Purchase Request: Cardholder sends order details.
4. Dual Signature: Ensures integrity of order and payment information.
5. Payment Authorization: Issuer bank verifies and approves the transaction.
6. Payment Capture: Merchant receives funds after approval.

13. Status of E-Payment Systems in Nepal

E-payment adoption in Nepal is growing due to increasing internet penetration and
smartphone usage.

Popular E-Payment Services in Nepal

 Digital Wallets: eSewa, Khalti, IME Pay

 Bank-Based Mobile Banking: ConnectIPS, FonePay
 International Payment Gateways: Payoneer, SWIFT (for businesses)

Challenges

 Limited international payment support (e.g., no PayPal access).

 Cybersecurity concerns.
 Low digital literacy in rural areas.
14. Case Studies of Global & Local Payment Systems

Global Case Study: PayPal

 Founded in 1998, operates in over 200 countries.
 Supports peer-to-peer transactions, business payments, and e-commerce checkouts.
 Uses two-factor authentication and encryption for security.

Local Case Study: eSewa (Nepal)

 Launched in 2009 as Nepal’s first digital wallet.
 Supports utility bill payments, mobile top-ups, bank transfers, and QR payments.
 Partnered with banks and businesses for cashless transactions.

Conclusion
E-payment systems enhance transaction speed, security, and global accessibility. In Nepal,
digital payment solutions are growing rapidly despite regulatory and infrastructure challenges.

Unit:4
1. E-Commerce Website/Software
An e-commerce system consists of an online platform that allows businesses to sell products or
services digitally. It includes:

 Frontend (User Interface): What customers interact with.

 Backend (Server-side logic & Database): Manages transactions, products, and users.
 Security Measures: Protects customer data and payments.
 Integration: Connects with payment gateways, shipping providers, and ERP systems.

Essential Features of an E-Commerce Website

✔ User-friendly design
✔ Product catalog (with search and filters)
✔ Shopping cart & checkout system
✔ Secure payment processing
✔ Order tracking & management
✔ Customer reviews & ratings
✔ Mobile responsiveness
2. Building Catalogs: Static vs. Dynamic
A catalog is a structured collection of products or services listed for sale.

Static Catalog
 Product details are stored in static HTML pages.
 Suitable for small businesses with limited inventory.
 Example: A website with fixed product listings that do not change frequently.

Dynamic Catalog
 Uses a database to store and update products.
 Changes dynamically as per stock availability.
 Example: Amazon, eBay (product details change based on inventory and user preferences).

Technologies used: MySQL, MongoDB, Firebase, PostgreSQL

3. Building Shopping Cart

A shopping cart is a feature that allows users to add multiple products and proceed to checkout.

Key Components

 Product Selection & Addition

 Cart Management (Update, Remove, Save for Later)
 Price Calculation (Subtotal, Taxes, Discounts)
 Checkout Process (Shipping, Payment)
 Order Confirmation & Invoice Generation

Shopping Cart Development Technologies

 Programming Languages: PHP, JavaScript, Python

 Frameworks: React, Angular, Node.js, Django
 E-commerce Plugins: WooCommerce (WordPress), Shopify, Magento
4. Transaction Processing
Transaction processing ensures secure order placement, payment authorization, and
fulfillment.

Steps in Transaction Processing

1. Order Placement – User confirms order.

2. Payment Authorization – Payment is verified by a gateway.
3. Inventory Check – System verifies stock availability.
4. Order Fulfillment – Order is packed and shipped.
5. Order Confirmation – Customer receives confirmation and tracking details.

Payment Processing Workflow

 Customer selects payment method (Card, Wallet, UPI, etc.).

 Payment details are encrypted and sent to the payment gateway.
 The gateway verifies and approves the payment.
 Transaction details are sent to the merchant and funds are transferred.

Payment Gateways: PayPal, Stripe, Razorpay, Khalti, eSewa

5. Development of E-Commerce Website/Software

Building an e-commerce system involves multiple components like databases, programming,
payment processing, and ERP integration.

Databases
Databases store:
✔ Product details (Name, Price, Stock, Images, etc.)
✔ Customer information (Name, Email, Address, Payment details, etc.)
✔ Order history and transactions

Database Technologies Used

 Relational Databases: MySQL, PostgreSQL

 NoSQL Databases: MongoDB, Firebase

Application Programs
Application programs handle business logic, payment processing, and user interactions.

✔ Backend Development: Node.js, Django, Flask, Laravel

✔ Frontend Development: React, Vue.js, Angular
✔ API Integration: RESTful APIs for secure transactions

6. Integration with ERP Systems

Enterprise Resource Planning (ERP) systems help businesses manage resources efficiently.

ERP Integration in E-Commerce

 Inventory Management – Syncs online stock with warehouse data.

 Order Management – Tracks incoming and outgoing orders.
 Customer Management – Stores purchase history for personalized recommendations.

Popular ERP Systems

 SAP, Oracle NetSuite, Microsoft Dynamics

7. Integration with Payment Gateways

A payment gateway securely processes online transactions.

Steps in Payment Gateway Integration

1. Customer selects payment method.

2. System encrypts and sends details to the payment processor.
3. Processor contacts bank to verify transaction.
4. Bank confirms transaction and transfers funds.

✔ Popular Payment Gateways

 International: PayPal, Stripe, Authorize.Net

 Nepal: eSewa, Khalti, IME Pay
8. Using Open-Source CMS for E-Commerce Development
A Content Management System (CMS) allows businesses to build e-commerce platforms
without coding from scratch.

Popular Open-Source CMS Platforms

✔ WooCommerce (WordPress) – Best for small to medium businesses.

✔ Magento – Scalable, used by large enterprises.
✔ OpenCart – Lightweight and easy to use.
✔ PrestaShop – Customizable with many themes and plugins.
✔ Shopify (Paid CMS) – Drag-and-drop builder for online stores.

Conclusion
Building an e-commerce system requires frontend design, backend logic, database
management, and integration with payment and ERP systems. Businesses can use custom-
built solutions or open-source CMS for faster deployment.

Unit-5
1. E-Commerce Security
E-commerce security refers to the protection of digital transactions, user data, and financial
information on online platforms. Since online transactions involve sensitive data, ensuring
security is crucial to prevent cyber threats, fraud, and unauthorized access.

Objectives of E-commerce Security:

 Protect customer data from unauthorized access.

 Ensure the integrity and authenticity of transactions.
 Prevent financial fraud, identity theft, and hacking attempts.

2. Dimensions of E-Commerce Security

a) Confidentiality
Confidentiality ensures that sensitive information such as user credentials, personal details, and
payment information is accessible only to authorized users. It is achieved through encryption
techniques like Secure Socket Layer (SSL) and Transport Layer Security (TLS).

b) Integrity

Integrity guarantees that data transmitted between parties is not altered or tampered with during
transmission. Techniques like hashing, digital signatures, and checksums help ensure data
integrity.

c) Availability

Availability ensures that e-commerce services are accessible to users at all times without
disruption. Cyberattacks like DDoS (Distributed Denial of Service) can threaten availability by
overwhelming servers.

d) Authenticity

Authenticity ensures that users and businesses are who they claim to be. It prevents identity fraud
and fake transactions using techniques such as digital certificates and multi-factor
authentication (MFA).

e) Nonrepudiation

Nonrepudiation ensures that parties involved in transactions cannot deny their actions. Digital
signatures and blockchain-based ledgers help in providing proof of transactions.

f) Privacy

Privacy ensures that users' personal and financial information remains confidential and is not
shared without consent. Privacy laws (such as GDPR and CCPA) enforce strict regulations on
data handling and storage.

3. Security Threats in E-Commerce

a) Vulnerabilities in E-Commerce

Vulnerabilities arise due to weak passwords, unpatched software, poor security configurations, or
outdated protocols. Attackers exploit these vulnerabilities to gain unauthorized access.

b) Malicious Code
Malicious software (malware) includes viruses, worms, and Trojans that can steal sensitive data,
corrupt files, or take control of systems.

c) Adware & Spyware

 Adware: Displays unwanted advertisements that can redirect users to malicious sites.
 Spyware: Secretly collects user data, including passwords and financial information.

d) Social Engineering

Social engineering attacks manipulate individuals into divulging confidential information, often
through psychological manipulation.

e) Phishing

Phishing is an attack where fake emails or messages impersonate legitimate businesses to trick
users into revealing login credentials or credit card details.

f) Hacking

Hacking refers to unauthorized access to websites or networks. Hackers exploit security flaws in
software, steal data, and sometimes launch ransomware attacks.

g) Credit Card Fraud & Identity Theft

Cybercriminals steal credit card details through skimming, phishing, or data breaches and misuse
them for fraudulent transactions.

h) Spoofing & Pharming

 Spoofing: Attackers disguise as a legitimate entity to steal information.

 Pharming: Redirecting users from a legitimate website to a fake website to steal login
credentials.

4. Client and Server Security

Client Security

Ensuring client-side security involves:

 Using updated browsers and antivirus software.

 Implementing two-factor authentication (2FA).
 Avoiding clicking on suspicious links or attachments.
Server Security

Securing the server includes:

 Keeping software and databases updated.

 Enforcing firewalls and intrusion detection systems (IDS).
 Using SSL/TLS encryption for secure data transmission.

5. Data Transaction Security

Data transaction security ensures that sensitive data is securely exchanged over the internet. Key
techniques include:

 Encryption: Protects data during transmission.

 Tokenization: Replaces sensitive data with unique identifiers.
 Secure Payment Gateways: Platforms like PayPal, Stripe, and Razorpay use advanced
encryption to protect transactions.

6. Security Mechanisms
a) Cryptography

Cryptography is the practice of securing information using encryption and decryption techniques.
Common cryptographic algorithms include:

 AES (Advanced Encryption Standard)

 RSA (Rivest-Shamir-Adleman)
 ECC (Elliptic Curve Cryptography)

b) Hash Functions

Hash functions convert data into a fixed-length unique string, making it impossible to reverse-
engineer. Examples include:

 SHA-256 (Secure Hash Algorithm)

 MD5 (Message Digest 5)

c) Digital Signatures

Digital signatures authenticate the sender's identity and ensure that data has not been tampered
with. They are commonly used in electronic contracts and online transactions.
d) Authentication

Authentication verifies user identities before granting access to data or services. Methods
include:

 Passwords and PINs

 Biometric Authentication (fingerprints, facial recognition)
 Multi-Factor Authentication (MFA)

e) Access Controls

Access control ensures that only authorized users can access certain data or resources. It
includes:

 Role-Based Access Control (RBAC)

 Discretionary Access Control (DAC)
 Mandatory Access Control (MAC)

f) Intrusion Detection System (IDS)

An IDS monitors network traffic for suspicious activities and security policy violations. It can be
signature-based (detects known threats) or anomaly-based (detects unusual behavior).

g) Secure Socket Layer (SSL) & Transport Layer Security (TLS)

SSL and TLS encrypt data during transmission between web browsers and servers.

 SSL/TLS certificates are issued by Certificate Authorities (CAs).

 HTTPS websites use SSL/TLS to ensure encrypted transactions.

Conclusion
E-commerce security is essential for protecting online transactions, ensuring user trust, and
preventing cyber threats. Implementing strong encryption, authentication methods, access
controls, and security mechanisms can help safeguard e-commerce platforms against various
risks.