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Ch1 (Introduction)

The document discusses the evolution and significance of electronic commerce (e-commerce), highlighting its advantages over traditional commerce, such as convenience and time-saving. It outlines the growth projections for global e-commerce and emphasizes the importance of security and infrastructure for successful international expansion. Additionally, it categorizes different types of e-commerce, including B2B, B2C, C2C, B2G, and m-commerce, while also addressing the benefits e-commerce offers to consumers.

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0% found this document useful (0 votes)
13 views6 pages

Ch1 (Introduction)

The document discusses the evolution and significance of electronic commerce (e-commerce), highlighting its advantages over traditional commerce, such as convenience and time-saving. It outlines the growth projections for global e-commerce and emphasizes the importance of security and infrastructure for successful international expansion. Additionally, it categorizes different types of e-commerce, including B2B, B2C, C2C, B2G, and m-commerce, while also addressing the benefits e-commerce offers to consumers.

Uploaded by

wwwsabri54
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Introduction

1.1 Background
Electronic Commerce is process of doing business through computer networks.
A person sitting on his chair in front of a computer can access all the facilities of the
Internet to buy or sell the products.

Unlike traditional commerce that is carried out physically with effort of a person
to go and get products, ecommerce has made it easier for human to reduce physical
work and to save time. E-Commerce which was started in early 1990’s has taken a
great leap in the world of computers, but the fact that has hindered the growth of
e-commerce is security. Security is the challenge facing e-commerce today & there is
still a lot of advancement made in the field of security.

The main advantage of e-commerce over traditional commerce is the user can
browse online shops, compare prices and order merchandise sitting at home on their
PC.

Global e-commerce, including travel and auto purchases as well as online retail sales,
will increase 13.5% annually for the next four years and reach an estimated $1.4 trillion in
2015, according Cisco Systems Inc.’s Economics & Research Practice. In anticipation of
such growth, Cisco conducted interviews with 32 e-retailers that sell internationally to define
the priorities, processes and individual market complexities involved in international e-
commerce.

An e-retailer has to decide which countries or regions it wants to sell or expand


to. In picking a market, Cisco says the most important consideration is the amount of
company revenue already coming from that market. Then retailers should take into
account the sophistication of that country or region’s e-commerce infrastructure, such
as Internet connection capabilities, delivery services and payment systems. “The level

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of existing popularity in a given country is always the best indicator of potential
online success, as long as that country is ready for e-commerce,” the report says.

1.2 Problem Statement and solution


As the E-commerce becomes more popular and the interesting in using smart
devices , lead for creating a website that accommodate that purpose by meaning of
online transactions terminology.

There is currently a need for a real-time website that ties together consumers and
merchants for providing promotional discounts according to geographic coordinates.

Project is aimed at developing a Web application that depicts online Shopping


of mobiles, Accessories and purchasing using Payment Gateway.

1.3 Objectives
 To achieve business work and extend the website to reach the global market.
 To help customer to find different mobiles, their features, accessories and new
updates easily.
 To design such a way that one can view all the updates of the mobile from any
place through online.
 To help in easy maintaining and updating products in the website for the
administrator.
 To quick and easy comparison of different products for the customers.
 To unlock several types of mobiles online directly or by sending code.
 To give customer some mobile problem's solutions.

1.4 scope
The scope of this project is to offer community services in local zone ( linking
each city to each other) by providing e-commerce store where any product (such as
mobile phones, accessories and services) can be bought from the comfort of home
through the Internet. However, for implementation purposes, this project will deal

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with an online mobile store. which is a virtual store on the Internet where customers
can browse the catalog and select products of interest.

1.5 E-commerce link customers, workers, suppliers, and distributors


 E-commerce facilitates organization networks, wherein small firms depend on
“partner” firms for supplies and product distribution to address customer
demands more effectively.

 To manage the chain of networks linking customers, workers, suppliers,


distributors, and even competitors, an integrated or extended supply chain
management solution is needed.

 Supply chain management (SCM) is defined as the supervision of materials,


information, and finances as they move from supplier to manufacturer to
wholesaler to retailer to consumer. It involves the coordination and integration
of these flows both within and among companies.

1.6 Different types of e-commerce

There are five general e-commerce categories:

 Business to Business (or B2B) e-commerce (sometimes called e-


procurement)

 Business to Consumer (or B2C) e-commerce

 Consumer-to-consumer (or C2C) e-commerce

 Business-to-government (or B2G) e-commerce

 Mobil e-commerce (or m e-commerce)

1.6.1 Business-to-Business (B2B)

B2B e-commerce is simply defined as e-commerce between companies. This is


the type of e-commerce that deals with relationships between and among businesses.
About 80% of e-commerce is of this type, and most experts predict that B2B e-
commerce will continue to grow faster than the B2C segment.
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1.6.2 Business-to-Consumer (B2C)

Business-to-consumer e-commerce, or commerce between companies and


consumers, involves customers gathering information; purchasing physical goods (i.e.,
tangibles such as books or consumer products) or information goods (or goods of
electronic material or digitized content, such as software, or e-books); and, for
information goods, receiving products over an electronic network.

B2C is the second largest and the earliest form of e-commerce. Its origins can be
traced to online retailing (or e-tailing). Thus, the more common B2C business models
are the online retailing companies such as Amazon.com, Drugstore.com, Beyond.com,
Barnes and Noble and ToysRus. Other B2C examples involving information goods are
E-Trade and Travelocity.

B2C e-commerce reduces transactions costs (particularly search costs) by


increasing consumer access to information and allowing consumers to find the most
competitive price for a product or service. B2C e-commerce also reduces market entry
barriers since the cost of putting up and maintaining a Web site is much cheaper than
installing a “brick-and-mortar” structure for a firm. In the case of information goods,
B2C e-commerce is even more attractive because it saves firms from factoring in the
additional cost of a physical distribution network. Moreover, for countries with a
growing and robust Internet population, delivering information goods becomes
increasingly feasible.

1.6.3 Business-to-Government (B2G)

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. This
kind of e-commerce has two features: first, the public sector assumes a pilot/leading

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role in establishing e-commerce; and second, it is assumed that the public sector has
the greatest need for making its procurement system more effective.

1.6.4 Consumer-to-Consumer (C2C)

Consumer-to-consumer e-commerce or C2C is simply commerce between


private individuals or consumers.

This type of e-commerce is characterized by the growth of electronic


marketplaces and online auctions, particularly in vertical industries where
firms/businesses can bid for what they want from among multiple suppliers. It perhaps
has the greatest potential for developing new markets.

1.6.5 Mobile Commerce (M-Commerce)

M-commerce (mobile commerce) is the buying and selling of goods and


services through wireless technology-i.e., handheld devices such as cellular telephones
and personal digital assistants (PDAs). Japan is seen as a global leader in m-
commerce.

As content delivery over wireless devices becomes faster, more secure, and
scalable, some believe that m-commerce will surpass wire line e-commerce as the
method of choice for digital commerce transactions. This may well be true for the
Asia-Pacific where there are more mobile phone users than there are Internet users.

1.7 E-commerce is helpful to the consumer

 B2C e-commerce reduces transactions costs (particularly search costs) by


increasing consumer access to information and allowing consumers to find the
most competitive price for a product or service.
 E-commerce allows for a faster and more open process, with customers having
greater control.

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 E-commerce makes information on products and the market as a whole readily
available and accessible, and increases price transparency, which enable
customers to make more appropriate purchasing decisions.

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