E-Commerce
What is E-Commerce?
E-commerce (electronic commerce) is the
buying and selling of goods and services,
or the transmitting of funds or data, over an
electronic network, primarily the internet.
Electronic commerce draws on
technologies such as
Mobile commerce.
Electronic funds transfer
Supply chain management
Internet marketing
Online transaction processing
Electronic data interchange (EDI)
Inventory management systems
Automated data collection systems
Mobile commerce
Electronic funds
transfer
Supply chain
management
Internet marketing
Online transaction
processing
Electronic Data
Interchange
Consumer-oriented marketplaces include large e-
malls
(such as Amazon),
Consumer-to-Consumer auction platforms
(eBay, for example),
Multichannel retailers
(such as L.L. Bean), and many millions of e-
retailers.
Electronic currencies (or crypto currencies)
such as Bitcoin entered into play as the means of
settlement.
ADVANTAGES
1. Cost effective
will eventually become
The entire financial transactions
electronic, so sooner conversion is going to be lower on
cost.
It makes every transaction through e-commerce payment
a lot cheaper.
2. Better Productivity -
People like to find answers online because it is
faster and cheaper
It costs a lot cheaper expense as well for the
company
3. Quick Comparison –
E-commerce also enables you to compare price
among several providers.
In the end, it leads you to smart shopping.
People can save more money while they shop.
4. Economy Benefit –
E-commerce allows us to make
transaction without any needs
on stores, infrastructure
investment, and other
common things we find.
Companies only need well
built website and customer
service.
DISADVANTAGES
1. Security –
Customers need to be confident and trust the
provider of payment method.
Sometimes, we can be tricked.
Examine on integrity and reputation of the web
stores before you decide to buy.
2. Scalability of System –
A company definitely needs a well developed
website to support numbers of customers at a
time.
3. Integrity on Data and System –
Customers need secure access all the time.
Protection to data is also essential.
Unless the transaction can provide it, we should
refuse for e-commerce.
4. Products People –
People who prefer and focus on product will not
buy online. They will want to feel, try, and sit on
their new couch and bed.
5. Customer Service and Relation
Problem –
They sometimes forget how essential to build
loyal relationship with customers.
Without loyalty from customers, they will not
survive the business.
TYPES OF E-
COMMERCE
B2C
C2 B2
C B
C2B
Types of E-commerce
Business-to-Consumer (B2C) –
Business-to-Business (B2B) –
Companies sell their online goods to other
companies without being engaged in sales to
consumers.
In most B2B E-commerce environments
entering the web shop will require a log in.
B2B web shop usually contains customer-
specific pricing, customer-specific assortments
and customer-specific discounts.
For eg. Indiamart, Alibaba
Consumer-to-Business (C2B)-
In a Consumer-to-Business E-commerce
environment, consumers usually post their products
or services online on which companies can post
their bids.
A consumer reviews the bids and selects the
company that meets his price expectations.
For eg. Freelancer.
Consumer-to-
Consumer (C2C) also
known as Peer-to-Peer
or (P2P) –
In a Consumer-to-
Consumer E-commerce
environment consumers
sell their goods to other
consumers.
A well-known example is
eBay. New mobile version
gaining a lot of attraction
are OfferUP
Applications of E-Commerce
Retail and Wholesale
Many retail E-Commerce apps use online marketing
techniques to get customers to use the platform
These include
Email
Online catalogues
Shopping carts
Electronic Data Interchange (EDI)
File transfer protocol
Web services
Mobile applications
In B2C and B2B, they include
emailing targeted ads and e-newsletters to
subscribers and sending SMS texts to mobile
devices.
Sending unsolicited emails and texts is
generally considered spam.
More companies now try to entice consumers
online, using tools such as
digital coupons, social media marketing and
targeted advertisements.
Another area of focus for e-commerce
companies is security. Developers and admins
should consider consumer data privacy and
security, data governance-related regulatory
compliance mandates etc.
Basic steps in E-commerce
transaction
SWOT analysis
Your first step is to identify your niche.
What market do you want to serve?
What are the benefits of your products to that
market?
What problems are your products going to solve, if
any?
Do you have any special advantages over your
competition, like the ability to offer lower prices
without losing quality?
Whatever niche you choose, market research is
essential for testing its validity and determining if
it's a space you can do well and compete in.
Next step
Next, come up with a
name.
Choose a business
structure.
Next
Get the necessary documentation (taxpayer
numbers, licenses, and permits if they apply).
Website platform
Before you start selling, decide on a platform
and design your website (or have someone do
it for you).
Websites such as Squarespace and WordPress
offer mobile-friendly, ready-to-go e-commerce
templates that help you get a store up and
running quickly.
As a shop owner, you will need a way to
collect credit card payments from consumers
online.
PayPal, Square and Google Wallet are all
popular ways of accepting and managing
online payments.
You can also sell your merchandise through
online giants like Amazon.
SSL certificate
Once your website visitor reaches your website,
the SSL certificate comes into play. This technology
encrypts personal data that exists between your
website server and the visitor’s browser.
The SSL certificate enables the secure
transmission of credit card numbers via the
internet.
It helps consumers feel safe making online
purchases. It helps protect sellers, too, because
they know customer transaction data is secure.
How E-commerce
works?
Customers access an online store to browse
through and place orders for products or
services via their own devices.
As the order is placed, the customer's web
browser will communicate back and forth with
the server hosting the e-commerce website.
Data pertaining to the order will be relayed to
a central computer known as the
order manager.
It will then be forwarded to databases that
manage inventory levels; a merchant system
that manages payment information, using
applications such as PayPal; and a bank
computer.
Finally, it will circle back to the order manager.
This is to make sure that store inventory and
customer funds are sufficient for the order to be
processed.
After the order is validated, the order manager
will notify the store's web server.
It will display a message notifying the customer
that their order has been successfully processed.
The order manager will then send order data
to the warehouse or fulfilment department,
letting it know the product or service can be
dispatched to the customer.
At this point tangible or digital products may
be shipped to a customer, or access to a
service may be granted.
Platforms that host e-commerce transactions
include online marketplaces that sellers sign
up for, such as Amazon.
software as a service (SaaS) tools that allow
customers to "rent" online store
infrastructures.
or open source tools that companies manage
using their in-house developers.
FINANCIAL SERVICES
Banking, Retail, Convenience services
(bill payment/ticket booking…etc)
Electronic Billing
Banks now offer the ability to automatically
pay your bills through their website or on their
app.
Companies can send out electronic invoices to
their customers and receive payment
automatically instead of waiting for and
cashing a physical check.
ID verification
Technology has also helped drive innovation in
the ability to confirm the identity and other
credentials so that customers can conduct
their e-commerce transaction more securely,
without the possibility of data being stolen or
leaked.
Mobile payments
Digital-only banking
Consumers interact through an app from
paying for coffee to ordering groceries to set
doctor’s appointments and more.
B2B innovation
E-commerce has enabled banks to offer faster
account opening, digital invoice payment, and
other conveniences that B2C buyers have long
enjoyed.
International
commerce
E-commerce has made it easier for people to
bank internationally or pay for goods and
services from another country without having
to work around banking regulations or
exchange rates.
Third-party vendors like PayPal work as a go-
between for e-commerce retailers and
financial organizations and bank
RETAIL
E-retailing essentially consists of the sale of
goods and services.
Sometimes we refer to this as the sale of
tangible and intangible goods;
we can divide tangible goods into two
categories: physical goods and digital goods.
The sale of intangible goods is sometimes
called E-servicing
Safety in E-Commerce
Transactions, Modes of
payment
Use advanced anti-malware program
Make sure your anti-malware program is
updated or its auto update option is “on”.
The antivirus program is able to detect newly
created and mutated malware threats even
before it’s included in the database of the
automatic updates.
Watch out for security vulnerabilities in your
PC
Some of the malware programs are designed to
manipulate the security vulnerabilities in the OS and
web browsers and steal your financial data.
You can run System Mechanic security optimizer,
which will detect and fix such vulnerabilities in both
the web browser and the operating system.
Always keep your web browser and operating
system up to date.
Make sure you are using a secure
connection
When you are using a secured connection the
URL begins with https://, but in all other cases it
begins with http://
So make sure you are using https.
Deal with reputed websites only
Do not directly pay to any website unless you
know about it.
Using PayTabs is the best way to stay
protected against suspicious websites.
The advance security features used by
PayTabs will make sure that your confidential
financial information is safe without any
possibility of leaking.
Use credit cards for online shopping
Make sure you perform online shopping using
a credit card and not a debit card.
What makes using debit card extremely risky
is the fact that it is linked to your bank
account.
With spending limit, credit cards cannot be
misused to the extent a debit card can be.
Do not use public computers
Make sure that you’re using your own computer
or mobile device.
Do not use the computers installed at public
libraries or internet cafes, as these computers
can easily be manipulated by tweaking its
hardware or software.
Set a strong and complex password
Don’t use common passwords or the password
that can easily be guessed.
Use a combination of alphanumeric and special
characters and make sure the password length
is more than 6 digits.
Simulating or
carrying out an e-
transaction
For logging in, you’ll have to go through
the following steps:
Enter your 10 digit phone number or email ID.
Verify using an OTP sent to the registered
phone number.
Enter your password that was set at the time of
first time login.
ONLINE SHOPPING
Online shopping allows consumers to directly
buy goods or services from a seller over the
Internet using a web browser or a mobile app.
Consumers find a product of interest by
visiting the website of the retailer directly or
by searching among alternative vendors using
a shopping search engine, which displays the
same product's availability and pricing at
different e-retailers
Paying bill online
( electricity bills, Phone
bills etc.)
Listed below are some of the modes of
electronic payments
Credit Card
Debit Card
Smart Card
E-Wallet
Net Banking
Amazon Pay/G Pay
Here are the steps to pay
electricity bill using Google
Pay:
Step 1: Open Google Pay using PIN
Step 2: Go to bill payments and click on electricity
option
Step 3: Select the electricity board and link account
using consumer number and account name
Step 4: From the search results, click on ‘make payment’
Step 5: These options will be displayed - Pay a custom
amount: Tap Make payment and enter the amount that
you'd like to pay.
Pay an available bill: on the bill, tap Pay Bill.
Step 6: Select the suitable option and pay the bill.
Booking a tickets
(Railway,bus, air,)
An e-ticket (electronic ticket) is a paperless
electronic document used for ticketing
passengers, particularly in the commercial
airline industry.
Virtually all major airlines now use this method
of ticketing.
For eg. Users can simply log on to the
website irctc.co.in and
book online tickets after registering and
creating an account.
https://
blog.shift4shop.com/the-ecommerce-process
