1. Overview of E-Commerce
Module-1
Overview of
E-Commerce

2. Introduction Commerce – Trade + Aids to Trade
Traditional Commerce – Brick & Mortar market place
Virtual Market
E-Commerce

3. What is E-Commerce ?
E-Commerce is the process of searching, choosing, buying and selling of products and services on the electronic network.
E-Commerce uses the computer and telecommunication networks for promoting products,selling,delivery,collecting and customer services. It is the online exchange of goods, services and money between firms between firms and customers.

4. Definition of e-commerce
The WTO has defined E-Commerce as “the production ,distribution, marketing, sale or delivery of products or services by electronic means” E-Commerce is defined as “the process of buying, selling or exchanging products ,services and information through computer network”

5. EXAMPLES of e-commerce
Online shopping - Amazon, Flipkart, Ebay etc.
Electronic Payments - Master card, Maestro ,Visa , PayPal ,Discover etc.
Online Auctions - Ebay, Ubid, Mastibid etc.
Internet Banking - SBI, HSBC, Standard Charted, ICICI, HDFC etc.
Online Ticketing – IRCTC ,Make my trip, Yatra, Redbus, Make my show etc.

6. CLASSIFICATION OF E-COMMERCE..
ELECTRONIC COMMERCE
TRADITIONAL COMMERCE
INTERNET COMMERCE
MOBILE
COMMERCE
BUSINESS FOCUSED
E-COMMERCE
CONSUMERFOCUSED
E-COMMERCE

7. E-commerce strategies of companies
Brick and Mortar Companies
Click Only “Virtual” Companies
Click and Mortar Companies

8. Traditional vs electronic commerce
Basis
Traditional Commerce
E-Commerce
Market Place
Physical
Virtual
Relationship
Direct personal contact
E- relationship
Mode of Payment
Paper currency
Electronic Payment
Availability
Only on working hours
24×7
Convenience
Less
More
Cost
High
Presence of Middlemen
Middlemen essential
No Middlemen

9. Features of e-commerce
Ubiquity
Global Reach
Universal Standards
Richness
Interactivity
Information Density
Personalization/Customization
Interdisciplinary nature

10. Advantages/ Benefits of e-commerce
Benefits for Consumers
Allows shopping 24×7
Shopping from Anywhere
Elimination of Middlemen
Wide variety of Choices
Allow quick price and product comparison before making the final selection
Quick delivery of products
Auction facility

11. Benefits for Business Lower cost to E-Merchant
Expansion of Market place beyond Geographical boundaries
Economy
Reduced inventory and Overheads
Allow quick price and product comparison before making the final selection
Higher Margins
Better Customer Service
Quick Comparison Shopping

12. Benefits for Society
Social Welfare
Less traffic , Less Pollution

13. Limitations of e-commerce
The Cost factor
Lack of Standardization
Security
Heavy Competition
Internet Access
Non Suitability
Lack of Personal Touch
Lack of Faith
Server Capacity

14. Process of E-commerce Customer Visit Choosing the product
Product Catalog
Shopping List
Check Out System
Online payment
Third Party Payment Processing
Internet Merchant Accounts
Manual Credit Card Processing
Product Delivery
Customer Feedback

15. Third Party Payment Processing

16. Internet Merchant Accounts

17. Manual Credit Card Processing

18. Functions of E-commerce
Electronic Marketing
It is a form of product promotion and customer relations conducted with the use of electronic media
Electronic Selling
It involves both B2B and B2C selling process on internet
It comprises order management, sale contract, receiving online payment and delivery of products.
3. Electronic Service
E- Services offer online facilities to the customers to post a complaint, request a service, request information, or register a product. It also enables customers to check the order status, order tracking, managing accounts and resolving product problems.

19. Applications of e- commerce
Direct Marketing and Selling
Value Chain Integration
3. Supply Chain Management
4. Corporate Purchasing
5. Financial and Information Services

20. Applications of e- commerce
Direct Marketing and Selling

21. Applications of e- commerce
2. Value Chain Integration
The concept of Value Chain was introduced by Michael Porter in 1985.Value chain is a chain of activities that a firm performs in order to deliver something valuable
Definition
“A high-level model of how a business receive raw material as input, add value to the raw materials through various processes and sell finished products to customers”

22. Applications of e- commerce
According to Michael Porter the value chain model consists of Primary Activities and Support Activities
Primary activities
Inbound logistics
Operations
Outbound logistics
Marketing and Sales
Services

23. Applications of e- commerce
Support Activities
Procurement
Technology Development
Human Resource Management
Infrastructure

24. Applications of e- commerce
3. Supply Chain Management
SCM is the management of materials, information and finance as they move in a process from supplier to manufacturer to wholesaler to retailer to customer.
SCM flow can be divided into three
Product Flow – movement of goods from supplier to customers
Information Flow- Transmitting orders and updating the status of delivery
Finance Flow- Credit terms, payment schedules and consignment

25. Applications of e- commerce
4. Corporate Purchasing/Procurement
It deals with buying of products and services by an organization for its operational and functional needs. Best example for Corporate Purchasing/Procurement
is B2B
E.g.

26. Applications of e- commerce
5. Financial and Information Services
Online Banking
Online Billing
Online Information Distribution

27. Infrastructure for e-commerce
Physical Layer
Logical Layer
Network Service Layer
Messaging Layer
Middleman Service Layer
Application Layer

28. Infrastructure for e-commerce
Physical Layer
By physical layer we mean the physical infrastructure such as cables , wires, satellites and mobile phone system. In fact without high speed reliable electronic communication e- commerce is not possible.
Logical Layer
The logical layer defines the protocols to communicate logically between computer connected by the physical network.
E.g. TCP/IP, SSL, SET
3. Network Service layer
It provides services which can be carried out conveniently using the internet infrastructure. The most important services include WWW, , browsers and search engines.

29. Infrastructure for e-commerce
4. Messaging Layer
As the internet is accessible to everyone, there is always the danger of messages and documents being altered by unscrupulous persons. Thus there is a need to send messages in a coded form using a secret code. We require languages to compose messages which can be interpreted by computers. HTML and XML provide this facility.

30. Infrastructure for e-commerce
5. Middleman Service Layer
This layer provides services to e-commerce participants to make their dealings easier. Some middleman services are secure payments using Debit/Credit cards, authentication of digital signature, electronic catalogs etc.

31. Infrastructure for e-commerce
6. Application layer
The top layer is the application layer, which consists of B2C, B2B, C2C and mobile commerce. All the services provided by the other five layers are to support these applications
B2C-
B2B-
C2C

32. The end