Introduction to E-commerce CSE408/409 : E-commerce Lecturer : Md. Mehzab. H.Nahid Week 1

What is E-commerce? Use of Internet and Web to transact business Involves digitally enabled commercial transactions between and among organizations and individuals „Digitally enabled transactions include all transactions mediated by digital technology „Commercial transactions involve the exchange of value across organizational or individual boundaries in return for products or services

What is E-commerce? E-commerce is abbreviated for Electronic Commerce. Its function is the transference of financial and other commerce related information using Information Technology and Telecommunications

History of E-Commerce 1950 companies started to begin the computer store and process transaction records. 1960 the large volume business started transaction on purchase card. 1968 transaction data Co-ordination Committee (TDCC) was formed by some company. 1979 ANSI (American National Standards Institute) chattered a new committee to develop uniformEDI (ElectronDataInterchange). 1979 the online shopping was invented in the UK by Michael Aldrich 1982 the Minitel was introduces in nationwide in France by France telecom and started online ordering. 1984 the world first B2C online was home shopper and Mrs. Jane Snowball uses the gates head SIS/Tesco system to buy groceries. 1987 Swreg begins to provide software to support online system.

History of E-Commerce The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. Another form of E-Commerce was the airline reservation system, for example Sabre in the USA and Travicom in the UK.

History of E-Commerce By the end of 2000, many European and American business companies offered their services through the World Wide Web. Since then people began to associate a word “E-Commerce" with the ability of purchasing various goods through the Internet using secure protocols and electronic payment services.

Advantages of E-commerce Faster buying/selling procedure, as well as easy to find products. Buying/selling 24/7. Low operational costs and better quality of services. Easy to start and manage a business. No need of physical company set-ups. Customers can easily select products from different providers without moving around physically.

How Can A Company Benefit from E-commerce? The key drivers for businesses to establish E-commerce are : Access new markets and extend service offerings to customers Broaden current geographical parameters to operate globally Reduce the cost of marketing and promotion Improve customer service Strengthen relationships with customers and suppliers Streamline business processes and administrative functions

E-commerce is not Free There are several costs associated with having a successful Ecommerce site including: Merchant Facility costs from the Bank Gateway Fees – Bank or 3rd party Transaction Fees – Bank or 3rd party Software and security fees (not a requirement for everyone)

In the field, a sales representative writes notes with a mobile handwriting-recognition computer immediately after a sales call. This can be viewed as an EC activity 1. True 2. False

How E-commerce Works ? The consumer moves through the internet to the merchant’s web site. From there, he decides that he wants to purchase something, so he is moved to the online transaction server, where all of the information he gives is encrypted. Once he has placed his order, the information moves through a private gateway to a Processing Network, where the issuing and acquiring banks complete or deny the transaction. This generally takes place in no more than 5-7 seconds.

What is required for E-commerce ? There are several basic steps involved in becoming Commerce Enabled : Getting an Internet Merchant Bank Account Web Hosting Obtaining a Digital Certificate Finding a Provider of Online Transactions Creating or Purchasing a Shopping Cart Software

What is required before Starting E- Commerece Research your market and its receptivity to E-Commerce Know what your competitors are doing and learn from them Align business processes to support your online operation Establish resources to meet increased demand Commit to maintaining your site - the face of your business Have realistic expectations, it takes a while to get going

What is required for E-commerce business going? Product or service suitable for selling over the web Dynamic website Merchant account with your bank for Internet transactions Online payment facility Order fulfillment and dispatch systems

Few Frequently Asked Questions Do I need a Merchant Identifier number as well as a Terminal Identifier number from my bank? Yes Is the Merchant ID/Terminal ID different to the EFTPOS Merchant ID/Terminal ID that I currently have? Yes.

When merchant receive the money from online purchases ? The transactions are all in real time. That is, the money is debited from the Cardholders card instantaneously. When a client goes to your website and purchases a product through Logic Commerce’s Popup Credit Facility, their credit card details (card number, expiry date etc) is sent instantaneously through the Transaction Gateway to your Merchant Bank which will reply with a response and summary code. This code will tell our application software if the transaction is valid or not and it will return a message accordingly. The valid/failed transaction is recorded in our database. The dispersal of money is then the responsibility of the cardholder’s bank and your Merchant Bank. It will depend on the bank but generally the transfer of funds occurs within a few hours.

How Ebay Makes Money ? Basic fees Insertion fee When you list an item on eBay, you may be charged a listing (or insertion) fee. If applicable, you're charged one insertion fee per listing, per category, regardless of the quantity of items. Final value fee If the item sells, you're charged a final value fee. Final value fees are calculated based on the total amount of the sale and are charged per item. The total amount of the sale is the final price of the item, shipping charges, and any other amounts you may charge the buyer. Sales tax is not included. Optional advanced listing upgrade and supplemental service fees Advanced listing upgrade fees If you add advanced listing upgrades to your listing, fees apply. Not all listing upgrades are available with every listing tool. Supplemental service fees If you use supplemental services, charges associated with these services may be included on your seller invoice as fees. Source : http://pages.ebay.com/help/sell/fees.html

E-COME-COM VS E-BUSINESS E- commerce(EC): describes the process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the Internet. E-business: refers to a broader definition of EC, not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting e-learning, and conducting electronic transactions within an organization.

E-COME-COM VS E-BUSINESS E-Commerce

_____________ refers to collaborating with business partners and conducting electronic transactions within an organization. 1. E-commerce 2. E-business 3. Pure EC 4. Partial EC

Is the Internet economy synonymous with e-commerce and e-business? The Internet economy is a broader concept than e-commerce and e-business. It includes e-commerce and e-business. The Internet economy pertains to all economic activities using electronic networks as a medium for commerce or those activities involved in both building the networks linked to the Internet and the purchase of application services such as the provision of enabling hardware and software and network equipment for Web-based/online retail and shopping malls (or “e-malls”). It is made up of three major segments: physical (ICT) infrastructure, business infrastructure, and commerce

TYPES OF E-COMMERCE There are a number of different types of E-Commerce: Business-to-business (B2B) Collaborative commerce (C-commerce) Business-to-consumers (B2C) Consumers-to-businesses (C2B) Consumer-to-consumer (C2C) Government-to-citizens (G2C) and to others Mobile commerce (m-commerce