NAME:SIMRAN SANJAY ASRANI

REGISTRATION NO.:440140578/02/2014

PROJECT TITLE:E-COMMERCE

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 INDEX

Sr.No Title Page No.

.
1 Introduction of E-Commerce
2 What do you mean by Commerce
3 Definations of E-Commerce
4 Historical Development
5 The Elements of a typical Commerce
6 The elements of E-Commerce
7 Models of E-Commerce
8 E-Commerce case studies leading the transformation
9 E-Commerce process
10 E-Commerce process cycle
11 Benefits of E-Commerce
12 Success factors in E-Commerce
13 Problems
14 Product stability
15 Acceptance
16 E-Commerce Technologies
17 E-Commerce Standards
18 E-Commerce software solution
19 Sales and Marketing cycle
20 Electronic stock trading
21 Electronic Banking
22 Secure Electronic Transaction
23 2007 Information Security Tips for small business
24 Future expectation about the E-Commerce
25 Electronic Commerce Companies
26 Bibliography

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 PREFACE

This project report has been prepared after a thorough study of various books, case studies, and
data from web pages, for submission to the ‘Institute of Company Secretary of India’ as a part of
the course curriculum e-Management Skills Orientation Programme( e-Msop).
During my tenure of working till date, I have observed that E-Commerce is so much in use in
common parlance but is highly misunderstood. Even among the professional managers the
controversy and confusion persist. All over the world, R&D and business activities are becoming
increasingly global and borderless. E-Commerce is important for boosting a nation’s industrial
development.
Through this project report, I have endeavoured to clarify the concept of E-Commerce.I take this
opportunity to express our deep gratitude to the ‘Institute of Company Secretary of India’ for
giving us this task.

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 ACKNOWLEDGEMENT
I acknowledge, with all our sincerity, The Institute of Company Secretaries of India for giving us
an opportunity to participate in the e-MSOP.
I would like to extend our special thanks to team The Institute of Company Secretaries of India ,
for giving us an opportunity to prepare and present a project on such a fascinating topic, which
would not have been successful without their constant guidance and assistance.
I would like to express my gratitude towards my parents & member of Institute of Company
Secretaries of India (ICSI) for their kind co-operation and encouragement which help me in
completion of this project.

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 SUMMARY
The idea of doing business electronically over networks is nothing new.We think of ordering the
products we have seen advertised on television or in printed catalog with a phone call or a fax &
ATMs are always within a reach for quick,easy and automatic banking.Corporations advertise
through broadcasting & networks. As the world become increasingly interconnected ,particulary
through the internet with its open protocols,forward looking business will be able to make their
product available to a global market,without having to create and maintain their own private
networks for selling,delivering and supporting customers.
While the techniques for attracting consumer attentions, describing products, and delivering
them electronically will be of interest to those who wish to participate in this new markets, this
project simply explain how business transaction can be executed across an unreliable and
unsecured medium like the internet and discussed some of the methods currently being planned
and implemented-in other words,how you will be buying and selling in the futureand how it will
work.
The number of business devoted to promoting commerce on the internet has been growing like
Topsy since the end of 1994,but the all share the goal of making commercial transaction over the
internet safe, simple secure and earn profit in the process. The method employed to achieve these
ends are somewhat more various,but can be categorized as either creating secure and reliable
channel to carry transaction across internet connection or using more traditional channels to
carry sensitive information.
Electronic merchants need to feel confidentthey can safely market and deliver their product,get
paid for all products purchased and not lose any product to theft.Electronic consumers need to
feel confident they can safely select and take delivery of products,pay for them and not be
concerned about compromise of payment information (like credit card or bank account
no.).Everyone wants to feel confident that the individuals they deal with across the internet are
who they say they are,to avoid lossed to fraud.

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INTRODUCTION OF
E-COMMERCE
Electronic Commerce is exactly analogous to a marketplace on the internet.Electronic Commerce
(also referred to as EC,e-commerce or ecommerce) consists primarily of the distributing, buying,
selling ,marketing and servicing of products or services over electronic systems such as the
Internet and other computer networks. E-commerce follows the same basic principles that
traditional commerce follows –that is buyers and sellers exchange and transport goods from one
place to another.
E-commerce offers buyers convenience.They can visit the World Wide Web sites of multiple
vendors 24 hours a day and seven days a week to compare prices and make purchases,without
having to leave their homes or offices.In some cases,consumers can immediately obtain a
product or service,such as electronic book ,a music file or computer software bt downloading it
over the Internet.
For sellers,e-commerce offers a way to cut costs and expand their markets. They do not need to
build,staff,or maintain a store or print and distribute mail order catalogs. Automated order
tracking and billing systems cut additional labor costs,and if the product or service can be
downloaded,e-commerce firms have no distribution costs.Because they sell over the global
internet,sellers have the potential to market their products or services globally and are not limited
by the physical location of a store.Internet technologies also permit sellers to track the interests
and preferences of their customers with the customer’s permission and then use this information
to bulid and ongoing relationship with the customer by customizing products and services to
meet the customer’s needs.
E-commerce also has some disadvantages ,however,consumers are reluctant to buy some
products online.Onlone furniture businesses,for example,have failed for the most part because
customers want to rest the comfort of an expensive item such as sofa before they purchase
it.Mnay people also consider shopping a social experience.For instance,they may enjoy going to
a store or a shopping mall with friends and family,an experience that they cannot duplicate
online.Consumers also need to be reassured that the credit card transactions are secure and that
their privacy is respected.Commerce according to person Halls books E-Commerce started in
1994 with the first banner ad being placed on a website.

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WHAT DO YOU MEAN BY COMMERCE
Commerce is the exchange of goods and services,usually for money.When ypu buy something at
a store you are participating in commerce.Going to work each day for a company that produces a
product,is a link in the chain of the commerce.When one thinks of different ways,he/she
immediately recognize several different players of the commerce such as:

 BUYERS:These ate the people or organization with money who want to

purchase goods and service products.

 SELLERS:These are the people who offer goods and service to buyers.Sellers
are recognizing in different forms such as retailers who sell directly to consumers and
wholesellers who sell to retailers and others.Wholesellers are also known as distributors.

 PRODUCERS:These are the people that create the product and services that
seller’s offer to buyers.

THE ELEMENTS OF A TYPICAL COMMERCE

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The basic elements of typical commerce activity are listed as below:
1. Product or Service: One must have a product or service to offer.The product may be
from a piece of paper to an airplane.

2. Place:One must have a place to store the product for marketing.Place can sometimes be
very ephemeral for example a phone number may be a place.For most physical
product,we tend to think of the place as a store or shop.

3. Marketing:You need to figure out a way to get people to come to your place.This
process is known as Marketing.It is very important component of commerce.If people are
not aware of the place and way to reach the place,you will not be able to sell anything.

4. Method of accepting orders:In a mail order company the orders come in by mail or
phone and are processed by the employees in the organization.

5. Method of accepting money:If you are at Wal-Mart you can pay in cash or cheque or by
credit card for your purchases.B-to-B transaction often use purchased orders.Many
businesses do not require the payment at the delivery and some of the products and
service are delivered continuously.

6. Method of Delivery:You need to have a way to deliver product or service.

7. Method of accepting Returns:If the customer is not happy with your product then you
need a way to accept a return.

8. Warranty Claims:Sometimes if the product breaks in the way before delivery or some
other problems crop up with the product,after its delivery during the warranty period.in
such situation warranty claim are to be honoured.

THE ELEMENTS OF A TYPICAL COMMERCE

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 In case of E-commerce all the above listed elements are available but they are having slight
variation in real life situation :
1. A Product or Service: In case of E-commerce,it is virtual product shown on a web
site.One can demonstrate multimedia presentation of the product and its entire feature on
the web page itself,which may not be possible in case of physical product of commerce
activity.

2. A Place sell the product:In the E-commerce,a website displays the products in all ways
and act as a place for E-commerce.

3. A way to get customers to visit your website:In case of E-commerce search engines
and linkages with other web sites play an important role in helping customers to reach
web-sites of the e-organizations.

4. A way to accept orders:The orders are accepted on the web site itself.On the web pages
of E-commerce companies shopping carts are being provided.One can click on the icon
and fill in the shopping card to order items to be purchased and it is accepted by the E-
commerce company as order from the customer.

5. Method of accepting money:In case of traditional commerce,buyers and sellers are in

direct contact with each other.The payments in E-commerce are made using Electronic
fund transfer in various forms using credit cards,smart cards,echecks etc.

6. Method of accepting Returns:As in the case of commerce,in case of E-commerce all the
trading companies have the system of accepting the returns if the good and services are
not up to the satisfaction of the customer or not up to standards mentioned in the product
catalogs or brochures hosted on web pages.

7. Warranty Claims: Sometimes if the product breaks in the way or some other problems
crop up with the product.In such case warranty claims are to be honoured as in the case of
commerce.

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Think back to how you shopped ten years ago.

Where did you go to buy clothes? How did you get your groceries? What did you do when it was
time to buy a new mattress?
Innovative ecommerce businesses have transformed the way we shop today and redefined what
is possible.
In 2013, ecommerce made up 6% of retail sales in the U.S. and by 2017, it was up to 9%.
Experts predict that by 2021, ecommerces sales will make up 14% of the total purchases in the
U.S.
Today, it’s easier than ever for creative founders to make their ideas a reality. Each year, we see
new businesses dethroning “the way we’ve always done it” monoliths.
While many of the tools are new and rapidly improving, the rules have stayed the same. If you
want to innovate and defy expectations, you’ll need to know your business model and define
how you’ll innovate.

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 FOUR TRADITIONAL TYPES OF
E-COMMERCE BUSINESS MODELS
If you’re starting an ecommerce business, odds are you’ll fall into at least one of these four
general categories.
Each has its benefits and challenges, and many companies operate in several of these categories
simultaneously.
Knowing what bucket your big idea fits in will help you think creatively about what your
opportunities and threats might be.

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 B2C –BUSINESS TO CONSUMER.
 B2C businesses sell to their end-user. The B2C model is the most common business
model, so there are many unique approaches under this umbrella.
 Anything you buy in an online store as a consumer — think wardrobe, household
supplies, entertainment — is done as part of a B2C transaction.
 The decision-making process for a B2C purchase is much shorter than a business-to-
business (B2B) purchase, especially for items that have a lower value.
 Think about it: it’s much easier for you to decide on a new pair of tennis shoes than for
your company to vet and purchase a new email service provider or food caterer.
 Because of this shorter sales cycle, B2C businesses typically spend less marketing dollars
to make a sale, but also have a lower average order value and less recurring orders than
their B2B counterparts.
 And B2C doesn’t only include products, but services as well.
 B2C innovators have leveraged technology like mobile apps, native advertising
and remarketing to market directly to their customers and make their lives easier in
the process.
 For example, using an app like Lawn Guru allows consumers to easily connect
with local lawn mowing services, garden and patio specialists, or snow removal experts.
 Additionally, home service businesses can use Housecall Pro’s plumbing software
app to track employee routes, text customers, and process credit card payments on the
go, benefitting both the consumer and business alike
 The end customer could be totally unknown to the merchant or might be visiting the shop
for a few occasional purchases
.

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