“Team SEO”

Report on: Daraz.com.bd

Prepared for: Syed Mustafizur Rahman Chowdhury

Course: MIS205

Section: 16

Date of Submission: November 22, 2018.

Prepared By:

Serial Name NSU ID

No.
1 Md Enjamul haque 153 0474 630
2 Sayem Adnan 161 0178 630
3 Erfan Ahmed 163 1466 630
4 Farha Mahjabin 163 1879 030
5 Jyoti Biswas 171 1144 630

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Table of Contents
Executive Summary ...................................................................................................................... 4

1.0 Introduction ............................................................................................................................. 5

2.0 Requirement 1: E-business in organization .......................................................................... 5

2.1 Overall context and mission and vision Daraz ................................................................. 5

2.2 Range of service:.................................................................................................................. 6

2.3 Characteristics of the product/service: ............................................................................. 6

2.4 Key Business Focus: ............................................................................................................ 7

2.5 E-business model of Daraz: ................................................................................................ 7

2.6 Drivers of e-business adoption in organization: ............................................................... 7

2.7 Management of E-business:................................................................................................ 7

3.0 Requirement 2: E-business revenue model: ......................................................................... 8

3.1 Value-proposition ................................................................................................................ 9

3.2 Revenue Model: ................................................................................................................. 10

3.3 Online marketplace structure: ......................................................................................... 10

3.3.1 Market Segment .......................................................................................................... 10

3.3.2 Revenue generating strategy: .................................................................................... 11

3.3.3 Marketplace structure ................................................................................................ 11

4.0 Requirement 3: E-Business Platform/ Infrastructure: ...................................................... 11

4.1 E-Business Application Service: ...................................................................................... 11

4.2 IT use for business application: ....................................................................................... 13

4.3 Web Technology & Software Applications: ................................................................... 13

4.4 Web Content Management Strategy: .............................................................................. 13

5.0 Requirement 4.0: Digital Strategy for E-business ............................................................. 14

5.1 E-business strategy:........................................................................................................... 14

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 5.2 E-channel strategy: ........................................................................................................... 15

5.3 Analyze e-business strategy .............................................................................................. 15

5.3.1 Swot Analysis: ............................................................................................................. 15

5.4 Competitive Threats: ........................................................................................................ 17

6.0 E-Business Security............................................................................................................... 17

6.1 Five IT security risks: ....................................................................................................... 18

6.2 Two IT security risks cause severe damage: ................................................................... 19

6.3 Suggestion for two identified risks ................................................................................... 20

7.0 Conclusion: ............................................................................................................................ 20

8.0 References .............................................................................................................................. 21

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 Executive Summary
The sole purpose of this group project was to scrutinize an e-business or e-commerce practically.
And we have chosen Daraz.com.bd to examine the online marketplace in Bangladesh. Our key
role was to find e-business revenue model, web marketing strategies and e-business software. We
have taken the step to visit them personally and gather every possible information.

Daraz Bangladesh is an element of Rocket Internet, an international and leading incubator of

startups specialized in e-commerce. In 2013 Daraz Bangladesh has started operations in
Bangladesh. From then on it is rapidly growing and standing out as one of the best in all the
markets. Daraz Bangladesh is excited to take in revolutionary concepts to the fast-developing
Bangladeshi market. Daraz is now expanding its activities in Bangladesh.

There are numerous online shopping platforms in Bangladesh but Daraz.com.bd is one of the most
popular ones out there. Daraz made its position in a brief period of time as it has achieved
customer’s loyalty. There are a very few e-commerce platforms that has achieved so much in such
a short time. Daraz is restlessly on a path to enhance its technology and keep itself updated with
the market.

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1.0 Introduction
Daraz is attaining the position of a leading online marketplace for Bangladesh. In Bangladesh,
people were only familiar with Amazon where buyers meet sellers and exchange goods. Daraz
introduced the model of Amazon in Bangladesh. Daraz is one of the five ventures of Rocket
Internet GmbH in Bangladesh and attempted to follow the effective internet projects from other
innovative countries like United States and reproduce their strategies in emerging market. Daraz
was launched in late September 2015 and has become the 4th e-commerce site after OLX, Ekhanei
and ClickBD (The Daily Star , 2015). Clients of Daraz are the vendors who provide products on
website. Daraz emphasizes on the sellers as Daraz’s revenue comes the sales of its sellers. Daraz
makes money in accordance to the level of sales of their vendors so more sales mean more money
for the business. The company tries to obtain the sellers who sell premium and original products
as they look forward to offer their buyers the original and quality products at the most competitive
deals, which is usually lower than the Market price.

2.0 Requirement 1: E-business in organization

2.1 Overall context and mission and vision Daraz
• Context:
Daraz – the world 's leading e - commerce brand has officially launched its operation in Bangladesh
as daraz.com.bd, a Rocket Internet venture–one of the largest Internet & mobile platforms in the
world in 2015. It has already become the country's number one online shopping destination. Daraz
was the 4th e-commerce site in Bangladesh beside Click BD, Ekhanei and OLX. It started its
journey with brands like; Yellow, Noir, Symphony, The Body Shop, Huawei, Samsung, Walton,
Aranya, 6 Degree Mobile, ShadaKalo, Apple, LG, Fastrack, MAC, Nikon, Ecstasy, Panasonic,
Doors. Now it has all the renowned brands in its website and a huge number of sellers (The Daily
Star , 2015).

• Mission:
Daraz set a mission to become the world’s biggest Internet platform outside of the United States
and China. The company builds proven Internet business models and transfers them to untapped
markets where they seek to scale them into market leading online Companies. To offer a friendly
and comfortable shopping experience for Consumers Daraz will build a big loyal customer base

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by having the biggest line of products, unimaginable prices and continue to give the best customer
experience. Daraz Bangladesh will achieve the mission by emphasizing on their core values and
hiring, coaching and retaining the best workforce in the industry through a strong company culture.
• Vision:
At Daraz, they keep the belief that Internet is going further and penetrating into daily lives than
anyone imagined. The simple vision of DARAZ is to capture the maximum share of customers
shopping online in the market. At the end of the day Daraz wants to be the most reliable and
trustworthy online marketplace winning the heart of all its customers with offering the best
possible services in the market.
• Goal:
Daraz wants to offer the best possible products at the most competitive prices. Daraz believes to
introduce the latest, demanding and trending products for its customers.

2.2 Range of service:

Daraz is one of the first e-commerce sites in Bangladesh. People get to know and buy different
kind of products including electronic devices, electronic accessories, TV & Home appliances.
Health and Beauty, Babies’ toys, groceries, pets, women’s fashion, men’s fashions and many more
categories. Customers don’t just see the picture of the website and they also get proper information
from there. Besides, Daraz provides advanced search bar so that customers can get their desire
product by using keywords from there and it helps customer to do shopping there without any
hesitation. Daraz adds “sell on daraz” feature in their website. For that, sellers register their name
in Daraz and they pay a certain amount of commission if customers buy their products.

2.3 Characteristics of the product/service:

Daraz provides a one stop shop experience for its consumers with a vast range of products. Each
category of products is even more divided into sub-categorized as with different elements as
brands, sizes, price, and gender and more. Daraz provides the biggest selection of electronics,
fashion, home appliances, kid’s items and so much more. The customers are getting the
opportunity to get better idea about the products itself just by clicking on the pictures of the desired
products. Daraz is rigorously expanding their horizons to a bigger line of product range to bring in
the latest and trendiest gadgets, fashion styles and every necessary product to cater the demands
of all of its customers in the country.

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2.4 Key Business Focus:
Daraz is one of the most popular e-commerce sites in Bangladesh. They host different big selling
program such as Fatafati Friday, biggest selling day and many other programmes. They give
priority on website maintenance, location of customer, communication and access. And they are
working hard to build strong relationship with their customers.

2.5 E-business model of Daraz:

Daraz Bangladesh Limited follows the Amazon business model of buying and selling on a single
platform, where sellers sell their products on the Daraz website for each and every sale in exchange
for commission percentage. Their business model is Business to Customer (B2C). Through Daraz,
sellers can offer their products very easily as Daraz takes full accountability of putting up the
images of the sellers’ products, uploading and monitoring them on their website and also delivering
them to the buyers. The company makes the sellers on a monthly basis as the sellers provides the
products to Daraz on credit and receives the payment at the end of the month.

2.6 Drivers of e-business adoption in organization:

Daraz attains elite knowledge of e-business concepts and penetrates into the solutions available on
the market for having a competitive advantage. The most standout ingredients driving and
inhibiting the intent to attain e-Business by Daraz are the perceived benefits, external pressure and
organizational readiness. Daraz categorizes its perceived benefits in two ways, direct and indirect
advantage. The direct benefits are the deduction in transaction costs due to online operations and
efficiency improvements as faster workflow and reduction in manual paper handling saves both
time and money. On the other hand, indirect merits are the customer relationships and efficiency
in operations. E-business can only be successful when sufficient resources exist and are managed
properly. As Daraz is a huge firm, it has sufficient resources, greater bargaining power with
vendors and can easily achieve economies of scale. They also have expert personnel in their team
with spectacular knowledge of IT driving the implementation of e-business.

2.7 Management of E-business:

Daraz is one of the most prominent e-commerce organization among all other organization. They
are running their business in very organized way. It could be possible because of their several

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departments who are working consistently for pursuing their key objective of their business. A list
of their all department is given below:

1. IT

2. Finance

3. Marketing

4. Operations

5. Administration

6. Public Relation

7. Graphic & Design

8. Customer Service

9. Issue & Resolution

10. Category Management

11. Sales & Account Management

12. Onsite & Content Management

13. Human Resources & Communication

14. Business Development (GM & Fashion)

3.0 Requirement 2: E-business revenue model:

E-business revenue model is a scheme for generating revenue for businesses operating online. The
revenue models present for electronic businesses do not only share many similitudes with brick-
and-mortar businesses but also allows us to reach customers around the world and offer more
diverse methods of generating sales. It points out which revenue source to chase, what value to
offer, how to price for the value and who pays for the value. The biggest local e-commerce
platform in Bangladesh, Daraz.com.bd, is flawlessly rendering its online shop for over three years
now. The key ingredient behind its triumph is the business model Daraz chose and runs on. Daraz

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is not only termed as an online shopping website but also a virtual platform bringing sellers and
consumers together thus it’s an online marketplace.

Any e-business revenue model must consist of some crucial elements which must be followed-

1. Creating customer value

2. Satisfying existing needs

3. Creating and satisfying new needs

4. Marketing

5. Brands

6. Solutions

7. Selling-offline and online

3.1 Value-proposition
Value proposition simply refers to the line of products and services that has innovative worth for
a specific customer’s segment. And it is done by solving a customer’s problems or satisfying a
customer need. Some value propositions include creative technology, some simply deliver better
service or competitive prices with premium line of producers and also do quick service delivery to
the consumers. In this era of E-business, Daraz stands out as one the best online e business site
simply trying to cater to the needs of its customers in the best way possible.

Daraz entices customers with several value propositions. Some of them are given below-

i) One stop shop experience - With over 100,000 products in the store, Daraz already has the
biggest selection of goods from almost all categories, and the company is working on expanding
product categories for its customers.

ii) Payment facilities - Daraz provides its customers with the widest range of safe payment
solutions, with Cash on Delivery (COD) offering unparalleled convenience, along with bank
transfers and debit/credit card payments and also Bkash payment facilities for more convenience.

iii) Return policy – Daraz has an outstanding option of 7-days no questions asked where
customers can purchase a product and if they are not satisfied with it , they can return it within the

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window 7 days’ period with zero justification from Daraz. The customers are thereof entitled to a
full refund.

iv) FAQ section – Daraz is equipped with a revolutionary FAQ section which addresses numerous
queries of customers and helps them make informed decision.

3.2 Revenue Model:

Revenue model recognized which revenue source to purse. What is the main value of offer pricing
the value and who pays the value. Daraz follow the web catalog revenue model which is essentially
traditional online based catalog retail revenue model. They target on creating familiarity with
branded products and important factor is establishing reputation giving best product with
reasonable price to the customers.

3.3 Online marketplace structure:

3.3.1 Market Segment
We have analyzed the market segment of daraz in 3 particular section which are geographic
segmentation, Demographic segmentation and Psychographic segmentation. Now we are
discussing market segment of daraz below:

1. Geographic Segmentation: Daraz supplies products to all Bangladeshi corners. Orders are
placed in Dhaka within 1-2 days and in other districts within 7 to 10 days (Daraz, 2018). Daraz
operates in Pakistan, Myanmar, and Sri Lanka as well.

2. Demographic segmentation: Daraz offers products of men, women and children. It facilitates
possibly every age group looking for a product online. Products can be filtered based on price and
brands to engage people from different income groups and make a purchase. It also classifies
products based on family size, where separate categories for bachelors, couples and a large family
are listed.

3. Psychographic segmentation: Daraz divides its products based on customers ' interests and
lifestyles. It has specific categories of " sports and fitness", " home and living", " computer and
gaming" and several other categories for lifestyle users. This allows Daraz to market product in a
more concentrated way. It also profiles customers based on their purchasing behavior and creates
a number of packages and offers individual customers tailor - made products.

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3.3.2 Revenue generating strategy:
• Gain New Customers: Daraz marketing and sales activities and promotional campaigns are
quite ample and carried on a large-scale. Their advertisement is spread out on almost every
local website which is making more and more potential customers aware of their site and
persuading them to visit the site.
• Promotional offers or attractive discounts: Daraz’s exclusive discounts such as “Black
Friday”, “Mega Deals” lure a massive number of customers to their business.

Daraz also implies “Flash Sales” which is quite attractive to the market of potential consumers.

3.3.3 Marketplace structure

Daraz is an intermediary based online marketplace. It brings vendors from various locations from
diverse product ranges and consumers from all over Bangladesh, together in a distinct and elite
digital marketplace. Through logistics network of Daraz, it caters to shoppers from around the
country, delivering goods directly at their doorstep. Customers have the freedom to compare a
product offered by a number of different vendors and select the best suited product to the specific
needs and budget of the customers.

4.0 Requirement 3: E-Business Platform/ Infrastructure:

4.1 E-Business Application Service:
Enterprise resource planning is business (ERP) process management software that allows an
organization to use a system of integrated applications to manage the business and automate
many back office functions in real time and mediated by technology, services and human
resources.

Daraz Bangladesh is a cutting-edge e-commerce platform which brings the latest local and
international goods to customer doorstep. Supported by a wide range of tailored marketing, data,
and service solutions, the pioneering ecommerce ecosystem in South Asia offers a diverse
assortment of products in categories ranging from consumer electronics to household goods,
beauty, fashion and groceries.

There are a number of enterprise resource planning software vendors to choose from in the large
enterprise, mid-market and the small business ERP market depending on an organization’s size

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and needs. The top small business ERP vendors includes names like NetSuite, Exact Max, Epicor
and Syspro.

Customer Relationship Management (CRM) system helps to manage customer data. Daraz.com is
very concerned about their customer’s satisfaction and provides strict buyer protection policies to
ensure that there are no risks attached offering finest experience of online shopping. Customers
can legitimate product’s originality by reading the satisfied buyer’s genuine review posted right
below the product ad. Daraz.com is renowned for online offers on their website. They provide
seasonal offers and also on certain festivals such as “Baisakhi Offer” “Eid Festival” etc. Sometimes
they offer free shipping and buy 1 get 1 offers. Recently daraz.com.bd launched a huge offer called
“World’s biggest sale day” on 11th November which offered up to 87% off to some products (Daraz
, 2018).

On the 25th November there was an offer called “Black Friday” which offered 80% off on certain
products. Customers are attracted by these offers and that motivates this company to dive more.

Supply Chain Management (SCM) is the management of flow of goods and services and includes
all the process transforming raw materials to finished goods and maintaining logistics through
delivering goods to the customers. SCM represents an effort by suppliers to develop and implement
supply chains that are as efficient and cost-effective as possible. Supply chains cover everything
from production to product development to the information systems needed to direct these
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activities. Web data mining is a new technology that can find valuable model and information in
mass data. Daraz maintains a solid supply chain management and advanced data meaning process
for their any kind of e-commerce solution.

4.2 IT use for business application:

• Intranet: For internal communication, Daraz set up local area network in their office. Besides
they are using OMS software for security. As a result, their internal data don’t get leak at
outside.
• Extranet: For external communication, Daraz uses extranet to communicate with its
shareholders to keep everything running swiftly and also to maintain a smooth relationship
with their supplier keeping them any anonymous to protect against competitors.
• Internet- Daraz operates as an online shop so without internet, it will become non-living with
no ability to serve its customers in anyway.

4.3 Web Technology & Software Applications:

1. Web 2.0: It is the current state of online technology as it compares to the early days of the
Web, characterized by greater user interactivity and collaboration, more pervasive network
connectivity and enhanced communication channels. Without Web 2.0 the business will be
able to serve its content to its potential customers. Daraz cannot even imagine their business
without Web2.0 and cannot keep track of their customer feedback.
2. Blog: They have their own official blog where they let know the customers about healthy life
style tips, latest trends in fashion, home improvement ideas, highlights of upcoming
technology, upcoming events on daraz bd (Daraz, 2018).
3. Widget: Daraz do not have any graphical user interface but Daraz have the user interface in
their website and application.

4.4 Web Content Management Strategy:

A web content management system (WCMS), a utilization of a content management system
(CMS), is a set of tools that delivers an organization with a way to manage digital information on
a website through creating and maintaining content without previous knowledge of web
programming or markup languages. Managing web content efficiently can have useful business
applications in the enterprise, producing insights for decision-making and delivering results, as

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well as value. Surely, the quality of the website content is important but if visitors can't easily
access that content, a company will risk losing the traffic for good. Daraz uses this strategy to
efficiently maintain useful business application and takes decisions that creates value for
customers.

5.0 Requirement 4.0: Digital Strategy for E-business

5.1 E-business strategy:
Buying from online was not popular several years ago in Bangladesh but people would get familiar
with it in recent years. From beginning the revolution of e-commerce businesses in Bangladesh,
many companies have come in this sector. Bikroy.com, Chaldal.com, Bagdoom.com are few of
them. For that Daraz BD has to face a huge competition for surviving in this sector. Even then they
have become one of the most successful e-commerce organization in Bangladesh and their e-
business strategy is one of the vital reasons for their success. Few strategies of them are given
below:

• Daraz Mobile Application: At the current moment, majority individuals are using internet
services in their mobile devices. For that daraz bd is providing apps services. This is the reason
why customers can buy their products easily through mobile devices.

Figure: Daraz Apps

• Efficient IT: Daraz BD has very strong IT department to operate their website and apps. It
helps customers to make faster order process. The authority of Daraz BD always recruits

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 genuine IT expertise to run the IT department. This is how they keep the standard of their IT
department.
• Tracking the customer: Daraz BD always track their customer activities through software.
This is how they keep record of their customer and give suggestion to customers that what
types they are looking for.
• CRM Team: It is the important team of them who are doing a vital job to build strong
relationship between them and customers. They provide 24 hours live chat with customer care
representatives where customer can able to take information or complain about the product.
Besides they also interact with their customers to give necessary information such as when
they will get product.

5.2 E-channel strategy:

Daraz BD uses multichannel marketing strategy and expansion strategy to promote themselves.
They always research customer search engine surfing so that they can understand the taste of their
customer. On basis these data, they are doing promotion in Facebook and YouTube. Besides they
are usually giving mobile offers through television commercials. They also provide different
payment options such as debit/credit card, bkash or cash on delivery. It helps customers to make
payment process easier.

5.3 Analyze e-business strategy

5.3.1 Swot Analysis:
Strengths:

1. Genuine Product: Daraz has no record to sell fake products. They sell products which are
coming from authorised seller.

2. Brand Warranty: As we know daraz sells products of authorised sellers and those brands offer
warranty and customers get those warranty if they buy from daraz.

3. Return and replacement policy: Daraz also provides return and replacement policy to their
customer. It also encourages customers to buy products from their websites.

4. Flexible payment: Daraz gives customers several options to give payment which are
debit/credit card, Bkash and cash on delivery.

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Weaknesses:

1. High cost of IT management: Daraz invested huge amount of money for building up strong
IT management. It actually reduces their total revenue.

2. Manual and Traditional Purchasing: Majority of people of our country didn’t know what is
online marketing. They usually go to market for buying products. This is the reason why they are
losing huge number of customers.

Opportunities:

1. Emerging online market: As we know online shop is still not popular in our country because
most of the customers would like to do shopping in traditional way. But there is a chance in future
that people will buy their products from online. For that, Daraz should spread the positive message
about online shopping to customers.

2. Take order of products from outside Bangladesh: Daraz generally sells those products which
are available in Bangladesh. They still don’t take any international order like Backpack. So, we
consider that they have opportunity to grab those market.

3. Gift delivery service: They don’t have any gift delivery service yet. So, here is another
opportunity to create the new source for earning revenue.

4. Emergency delivery service: They still don’t offer any this kind of service such as delivery
within 24 hours. But they have opportunity to earn more revenue by providing this service.

Threats:

1. Potential Native Competitors: At present, there are lot e-commerce site in the market. The
number of new emerging competitors are coming into the market which can decrease market
share of daraz in future.
2. Effect of International Giants: According to the daily star, we know that Walmart and
Amazon are planning to establish their business in Bangladesh within next year. If it happens,
there is a huge chance to decrease the sales of Daraz.
3. Political instability: In Bangladesh, no businesses can run properly due to bad political
environment. This can be same for online business too. As we know, election will be held on
this December. On that time, political situation might be bad and it effects the sales of Daraz.

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5.4 Competitive Threats:
We have already discussed about threats in the section of swat analysis. Then we have identified
some competitive threats which we describe below:

1. Foreign Company: Some popular enormous e-commerce organizations like Amazon, Walmart
are planning to enter into the Bangladeshi market (The Daily Star, 2018). Walmart has already
established their office in Dhaka. According to brand equity scores, Amazon and Walmart are far
popular than Daraz. When these giants start businesses, there is a big chance that Daraz will lose
their market share. Because people know better about Walmart, Amazon rather than Daraz.
Though popular e-commerce organization “Alibaba express” bought Daraz recently but Daraz
didn’t change their name. This is why most of the people did not know this information.

2. Increase of online business at Facebook: Facebook is one of the most popular social media in
our country. There are lot of people in our country who are using Facebook in every day. For that,
some young entrepreneurs who started their business in Facebook. In 2015, the Facebook authority
included “shop” feature in their website (Pratap, 2015). This is the reason why most of the people
used this feature to open an online Facebook shop where they are selling their products. And the
important thing is that the price of their products is cheaper than products of daraz. The reason is
that they don’t need any big office and warehouse like daraz. For that their operation cost is less
than Daraz. This is why we have considered it one of their competitive advantage because it can
reduce the total revenue of daraz.

Now we will provide some suggestions below so that Daraz can respond those competitive threats.

• Daraz has to maintain the quality of the product for building strong relationship with customers
• Daraz has to bring new product line so that they can compete with amazon and Walmart when
they start their business.

6.0 E-Business Security

In the world of physical objects, there are thieves and robbers trying to rob us of the physical
possessions we own. But when it comes to the world of digital contents and software, hackers are
trying to steal contents or invade into our private world of digital possessions. The hackers or
intruders constantly trying to invade government websites and renowned business sites. In the
world of E-business the attackers are always looking for a way to break through computer security

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defenses in the hope of finding any information that could give their employers the ability to hurt
or jeopardize competitors and enemies. One of the most key elements of electronic commerce is
cyber security. To keep a business and its customers safe while conducting electronic commerce,
it has to build up its internet security and make it strong enough to keep away possible invaders
from stealing valuable information.
3 levels of security can be detected in the world of cyber security where breaching should be
stopped at all costs like-

Security for
client computers

Communication
channel security

Security for
server computers

Hacking has been a part of computing for over 4 decades now and this process of striving to get
unauthorized entry to computer resources is still going on strong. There are various types of
hacking like-
a. Website hacking
b. Network hacking
c. Ethical hacking
d. Password hacking
e. Computer hacking etc.

6.1 Five IT security risks:

There are many security risks in the world of electronic business but we want to mention top five
that will impact e-business in a ruthless manner. They are-
There are many security risks in the world of electronic business but we want to mention top five
that will impact e-business in a ruthless manner. They are-
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Buffer overflow: When a buffer overflow takes place in a program, it will often crash or become
unstable which means a big red sign for e-business as it can crash their websites.
SQL injections: The injection of malicious SQL parameters pass to the database in the server
could damage the whole database or steal data so we can conclude that it can merely destroy an e-
business.
Phishing: The business if attacked by phishing will lose its sensitive information such as
username, passwords and customer will be giving away credit card details as phishing is often
done for malicious reasons by disguising as a trust worthy entity in an electronic communication.
Pharming: It is a cyber-attack which redirects a website's traffic to another, probably to a sham
or fraud site so potential customer will be misdirected to fraudulent sites.
Botnets: a network of private computers infected with malicious software and controlled as a
group without the owners' knowledge, for example- to send spam.

6.2 Two IT security risks cause severe damage:

Phishing: Phishing attacks pose a continuing threat to the e-commerce and are becoming more
and more complex. The potential business effects of spear phishing are quite serious in e -
commerce. Breaches of customer data are costly and embarrassing. Customer information is often
used by hackers to fraudulently order products from the very e - commerce company from which
they store information! These look like legitimate orders from repeated customers with a new or
donation address, but the actual goods are "shipped " abroad. It causes massive losses of potential
revenue and damages to e-commerce brand due (VadeSecure, 2018).
SQL Injections: SQL injection can affect any website or web application using a SQL database,
including ecommerce platforms. In this type of attack, a hacker can enter malicious SQL
statements in a payload that is included in a legitimate SQL survey. If the attacker has access to
the database, they can create an administrative account, delete database entries or view sensitive
information for themselves (section.io , 2018). According to an Akamai report, 51% of cyber-
attacks on web applications in 2017 (Outpost24, 2018).For that we have considered that it is the
great threat for Ecommerce site and cause massive loss for them.

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6.3 Suggestion for two identified risks
For Phishing:
We can take the steps mentioned below to avoid phishing:
• Keep all systems current with the latest security patches and updates.
• Put a web filter to ban out malicious websites.
• Train the employees and take training sessions with mock phishing scenarios.
• Encrypt all confidential company information (DIGITAL GUARDIAN , 2018).
For SQL Injections:
We can take the different paths to avoid SQL injections, a few of them are given below:
• Use of Prepared Statements: Prepared statements ensure that an attacker cannot change
the intent of a query even if an attacker inserts SQL commands.
• Use of Stored Procedures: Certain standard stored procedure programming concepts have the
same effect as the use of parameterized queries when implemented securely which is the norm for
most stored procedure languages.
• White List Input Validation: Different parts of SQL queries are not legal locations for the use
of binding variables such as tables or column names and the order indicator (ASC or DESC). In
such situations, the most appropriate defense is white input validation or query redesign.

7.0 Conclusion:
Daraz stands out as one of the e-tailor giants in Bangladesh. They have customers all over the
country providing premium international and domestic products. Daraz conducts their business by
delivering products to their customers’ doorstep within the given timeframe. We hope that the
thorough analysis that we have put into this report can make a better understanding of the E-
business system of Daraz. We strived to complete all the five criteria that have been given us to
complete this report which also helped us in having a depth of understanding the E- business
system better. Online shopping is getting more popular as day goes by. By understanding the
customers taste and preferences for online selling has become more complex and can be taken as
a challenge. The customers of the modern era are persistently looking for the best online shop, best
offers, and best service and to adjust with every changing demands of the consumers, every online
based business has to bring more accuracy in their E-business system to get more customers and
create a better alliance with the consumers.

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8.0 References
Daraz , 2018. Biggest Campaign 11.11 Sale is coming!. [Online]
Available at: https://www.daraz.com.bd/blog/2018/10/14/big-sale-event-11-11-bd/
[Accessed 22 November 2018].

Daraz, 2018. About us- Daraz.com.bd. [Online]

Available at: https://www.daraz.com.bd/blog/about-us/
[Accessed 22 November 2018].

Daraz, 2018. Help Center | Daraz | Daraz Bangladesh. [Online]

Available at: https://www.daraz.com.bd/helpcenter/delivery-timelines-
bd.html?spm=a2ohc.helpcenter.0.0.432b46452FDvUq
[Accessed 21 November 2018].

DIGITAL GUARDIAN , 2018. Phishing Attack Prevention: How to Identify & Avoid Phishing
Scams. [Online]
Available at: https://digitalguardian.com/blog/phishing-attack-prevention-how-identify-avoid-
phishing-scams
[Accessed 22 November 2018].

Outpost24, 2018. SQL injections: used in 51% of cases by hackers. [Online]

Available at: https://outpost24.com/blog/SQL-injections-cyberattacks
[Accessed 22 November 2018].

Pratap, K., 2015. Facebook Shop Launch Lets You Buy Stuff Directly on the Social Network.
[Online]
Available at: https://gadgets.ndtv.com/social-networking/news/facebook-shop-launch-lets-you-
buy-stuff-directly-on-the-social-network-741156
[Accessed 22 November 2018].

section.io , 2018. Top Security Threats to Ecommerce Websites. [Online]

Available at: https://www.section.io/blog/website-security-for-ecommerce-websites/
[Accessed 22 November 2018].

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The Daily Star , 2015. Daraz.com.bd officially starts operation. [Online]
Available at: https://www.thedailystar.net/daraz-com-bd-officially-starts-operation-63854
[Accessed 22 November 2018].

The Daily Star, 2018. Global e-commerce company Amazon, Walmart to enter Bangladesh in
two years. [Online]
Available at: https://www.thedailystar.net/business/news/global-e-commerce-giants-amazon-
walmart-start-operations-bangladesh-2-years-1631011
[Accessed 22 November 2018].

VadeSecure, 2018. E-commerce Security Issues: Phishing and Spear Phishing. [Online]
Available at: https://www.vadesecure.com/en/ecommerce-security-issues/
[Accessed 22 November 2018].

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