E-Commerce Full Notes
Unit 1: Introduction to E-Commerce
What is E-Commerce?
E-Commerce (Electronic Commerce) refers to buying and selling goods/services over electronic
systems like the Internet. It includes:
● Online shopping
● Electronic payments
● Internet banking
● Online auctions, etc.
Forces Behind E-Commerce:
● Technological advancements
● Globalization
● Changing consumer behavior
● Cost reduction
● Competitive pressure
E-Commerce Industry Framework:
1. People (buyers, sellers, intermediaries)
2. Public policy (legal, privacy, tax)
3. Marketing and advertising
4. Support services (payment gateways, logistics)
5. Business partnerships (suppliers, affiliates)
Brief History of E-Commerce:
● 1960s: Introduction of EDI
● 1990s: Internet revolution
● 1995: Launch of Amazon, eBay
● 2000s+: Rise of mobile commerce, digital payments
Types of E-Commerce:
● B2B – Business to Business
● B2C – Business to Consumer
● C2C – Consumer to Consumer
● C2B – Consumer to Business
● G2C – Government to Citizen
Inter-Organizational E-Commerce:
Transactions between different organizations, e.g., wholesaler and retailer.
Intra-Organizational E-Commerce:
E-commerce within an organization, e.g., internal inventory control.
Consumer to Business (C2B):
Consumers provide services to companies (e.g., freelancers, reviews, influencers).
Architectural Framework:
● Client Layer: Web browser or mobile app
● Web Server: Hosts website
● Application Server: Processes logic
● Database Server: Stores data
Unit 2: Mobile Commerce
Introduction:
M-Commerce involves buying/selling through mobile phones or wireless handheld devices.
Applications:
● Mobile banking
● Mobile ticketing (rail, flight, events)
● Mobile shopping
● Mobile entertainment (games, OTT)
Wireless Application Protocol (WAP):
A standard for accessing information on a mobile wireless network.
Mobile Information Devices:
● Smartphones
● Tablets
● Smartwatches
Web Security:
● Data encryption
● Authentication mechanisms
● SSL/TLS
● Secure Payment Systems
Firewalls & Transaction Security:
● Firewalls block unauthorized access
● Secure transaction protocols (e.g., HTTPS, OTPs)
Client-Server Networks:
Client devices make requests; servers respond with data or services.
Threats in M-Commerce:
● Malware
● Phishing
● SIM swapping
● Unauthorized data access
Unit 3: Encryption
What is Encryption?
Encryption is the process of converting information into a code to prevent unauthorized access.
Types of Encryption:
1. Symmetric Key Encryption – Same key used to encrypt and decrypt (e.g., AES, DES)
2. Asymmetric Key Encryption – Uses public and private keys (e.g., RSA)
Transaction Security:
Ensures the safety and confidentiality of online transactions using:
● SSL/TLS
● Digital Certificates
● Secure payment gateways
VPN (Virtual Private Network):
● Creates a secure connection over the internet
● Masks user identity and encrypts traffic
Implementation Issues:
● Key management
● Performance overhead
● User training
● Compliance with data protection laws
Unit 4: Electronic Payments
Overview:
Electronic Payment System (EPS) facilitates digital transfer of money during e-commerce
transactions.
Types of Electronic Payments:
● Credit cards
● Debit cards
● Net Banking
● E-Wallets (Paytm, PhonePe)
● UPI (Google Pay, BHIM)
● Smart cards
● Cryptocurrency
Digital Token-Based Systems:
● Electronic tokens act as currency in online systems
● Used in micropayments and gaming systems
Smart Cards:
● Cards with embedded chips for secure, offline transactions
● Store personal, banking, or loyalty data
Credit vs Debit Cards:
● Credit Card: Borrowed money, pay later
● Debit Card: Direct from your bank account
Emerging Financial Instruments:
● Buy Now, Pay Later (BNPL)
● Virtual debit cards
● EMI on cards
● Mobile payment apps
Online Banking:
● NEFT, RTGS, IMPS
● Online account management
● Utility bill payments
● Loan applications
