University of Punjab Gujranwala Campus By:ShahzadCh.

MC09129
Electronic commerce

What is Ecommerce? What is the benefit of Ecommerce?

If commerce activities are performed through websites by using the internet is known as Ecommerce.

Commerce is the exchange of goods and services from point of production to point of consumption.
Many business has learned that ecommerce is very important for the business because cannot increase
the sale if ecommerce not use. Ecommerce introduces the paperless culture means now the goods are
advertised on the website not on the papers. For the using the ecommerce we required the first website
which have the functionality of ecommerce and web hosting companies which host the website so that
everyone can access to the website.

There are three types of Ecommerce

Business to Consumer (B2C) - As the name suggests, it is the model involving businesses and consumers.
This is the most common e-commerce segment. In this model, online businesses sell to individual
consumers. When B2C started, it had a small share in the market but after 1995 its growth was
exponential. The basic concept behind this type is that the online retailers and marketers can sell their
products to the online consumer by using crystal clear data which is made available via various online
marketing tools. E.g. Amazon is the best example of the B2c because it sells to the customers

Business to Business (B2B) - It is the largest form of e-commerce involving business of trillions of
dollars. In this form, the buyers and sellers are both business entities and do not involve an individual
consumer. Usually it is known as supply chain Management. It is like the manufacturer supplying goods
to the retailer or wholesaler. E.g. Dell sells computers and other related accessories online but it is does
not manufacture all those products. So, in order to sell those products, it first purchases them from
different businesses i.e. the manufacturers of those products.

Consumer to Consumer (C2C) - It facilitates the online transaction of goods or services between two
people. Though there is no visible intermediary involved but the parties cannot carry out the
transactions without the platform which is provided by the online market maker such as eBay.

Benefits of using ecommerce

Being able to conduct business 24 x 7 x 365

Ecommerce systems can be operate all day. Because ecommerce systems are electronically. Every one
can access the website at any time and sell or purchase by using ecommerce even the factory, shop is
closed. So it helps to conduct the business 24 hours. Business can also be conducted if there is a

Access the global market

Internet is used in every place of the world. The sellers can access the global market by selling the
products to foreign buyers by using the ecommerce website. And the same buyer can purchase the
products from the other foreign markets

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Electronic commerce

Speed

Electronic communication enables to send or receive the messages instantly and have not wait for the
catalogue for some days. So buyers and sellers due to speedy communication can take quick decision
whether to buy/sell or not.

Cheaper products

Due to ecommerce websites customer check the alternatives and prices of the commodities in the
different markets. Where the cheaper products available customer will buy

Reduce the cost for the sellers

Ecommerce enables the sellers to cut the cost of maintaining of staff, physical store, distribute the mail
order catalogue and middlemen cost. So the ecommerce enables the business to become cost effective.

Time save

Ecommerce convenient the customers to save the time. Because customers can buy the products just by
opening the ecommerce website not physically going to market.

Better utilization of resources

The resources which are save can be used in other productive measures.

History of network
Network

When two or more computers connect in a way that they can share the resources of each other.

Mainframe era

Mainframe era starts from the 1950. At that time there is an only mainframe computer which requires
more energy, more space and cooling in order to work. The mainframe computers were used by only
fewer companies because it is most expensive. Companies use the mainframe computers for large data
processing such as census and enterprise resource planning. In the mainframe computers there is only
one central point for the inputting of data. It was realized at that time that there should be more
locations for the entering of the data so that every employee can record the data on the compute. So
the dumb terminals were connected to the mainframe computer. These terminals are placed on the
different places in the organization for the purposes of recording the data. In the mainframe frame era
the concept of networking starts by connecting the dumb terminals to mainframe computer

Note dumb terminals means device which consist on monitor and keyboard. In dumb terminals there is
no processing but processing is done by central device.

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Electronic commerce

Client server era

With the passage of time innovations comes in the computer. The average size reduces so that everyone
can use the computer which has own processing speed. In the late 1970 and in early 1980 personal
computer introduces which increase the possibilities of networking. In client server era the dumb
terminals were replaced with personal computers which have their own processing capacity. Employees
not only save the data on mainframe computer but also on personal computers which can be retrieved
later. Due to personal computers the processing capacity shares of mainframe computer and personal
computers which increase the usage of computers in the premises of the organization.

Client

The computer which request for the resource sharing in network is called client

Server

A computer which fulfills the request of the client is known as the server

Internet era

Till the 1990 the use of the network remains in the premises of the organization. In the 1990 due to
advancement of the technology has enabled the different computers at different places to connect
which each other. There are number of protocols make in the internet era so that not only the
organizations but also people can use the internet/share the resources.

History of World Wide Web

World Wide Web

Is the most popular service of the internet through which websites can be published and can access the
already published websites.

Static website

A website which does not change its contents or deliver new information is known as static website.
Static website show the same information for all the users in every time.

Dynamic website

A website which changes its contents and provide the new information and can be updated is known as
dynamic website

Interactive website

A website which changes it colours and provides more interaction and make the work in the client
machine without going to servers. Such as when we are writing the details in the form for making email
address when we write the different password in the password column or write the future date in the

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Electronic commerce

date column the interactive website will indicate that date or password is wrong without going to
servers

Transactional website

Website which has the ability to perform transaction. In the transactional websites we can buy/sell the
products.

Role of Information technology in business

Information technology refers to the management and use of information using the computer based
tools. It plays very much important role in the development of the business. Due to it business
processes are controlled and mostly manual work has been placed into computerized work where the
one click is required to complete the task. With the it new information can be obtained instantly
because all works are computerized. Its role is divided into four types

Benefits for individuals

Get online education

Information technology has increased the opportunities of getting the education online from
everywhere without going to the physical place. So it reduces the cost of education because cost of
getting online education is less rather than to get in the relevant institution because institution has not
to arrange the building and extra staff.

Time saving

Information technology enables to save time. Without going to the market we can purchase the
products and submit the utility bills by just connecting to the website.

Business opportunities

Information technology creates the opportunities for the individuals to start their online business. They
can start the import and export business by just making the website. So it create the employment
opportunities.

Cheaper products

Information technology has enabled to buy the cheaper products. Customers can find the number of
producers by using internet and buy where the cheaper products are available. Moreover customers are
also make direct purchases with seller which helps to get cheaper products because middlemen cost has
eliminate.

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Get the information how to use the product

Information technology only enables the customers to get the information about how to use the
product if he lost the manual just by connecting to the relevant website. Without it the person has to
physical go to place to know how to use it which is time consuming and costly imagine if you bought it
from foreign country than it will more costly to know how to use the product.

Benefits for the society

Removing the cultural differences

In the past it is very difficult to communicate with the people of far flung areas and know about their
cultures. But now a days it has enabled us to communicate with the people of far flung areas and know
about their cultures so that communication increased and cultural differences reduced.

Saving of resources

In society there are number of people. It not save the time of single person but save the time of every
person which means the saving of society time. Every one purchasing and selling the products by using
Information technology and submitting the bills.

Utilization of resources

The resources which are saved can be used in the other productive ways or can be used in the welfare of
the society.

Health problems resolved

In the past it is very difficult to diagnose the diseases because there is no technology which take the
tests from the body. But due to advancement of information technology all diseases are diagnosed and
better treated than past. So it welfares the society.

Benefits for the government

Quick processes

Information technology increase the speed of processes of government by removing the manual system
to computerized system. For instance tax sheets were manually prepared which takes to much time but
now a days tax sheets are prepared on the computer by just entering the data computer will make
calculations itself.

Achieve the objective

Information technology helps the government t to achieve the ultimate objective of welfare of people
by providing more speedy works process so that people can save their time and utilize in other
productive ways.

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Electronic commerce

Reduce the cost

Information technology has reduced the cost for the government. Because manual work has been
placed with computerized and there is less staff required to operate the computer.

Better controlling measures

Information technology enables the government to adopt the better controlling measure by recording
the data of online processes and can also receive the complaint directly from the people by using
internet. Because in online process no person has chance to commit fraud because each and every thing
is recorded.

Benefits for the business

Access the global market

Information technology enables the business to make entry in global market by just making the
ecommerce website. So business can sell the more products in the global market

Cost effective

Information technology enables the business to become cost effective. Because business processes are
now computerized which requires less staff to run the business and also reduce the middlemen cost
because business now directly trading with the customers by website.

More time to operate

Information technology has enable the business to operate their businesses 24 hours every day even the
factory has been closed. It means that business can sell the products by using ecommerce website
because ecommerce website hosted 24 hours each day and customers can purchase the product every
time

More time for innovation

Information technology enables the business to sell the products in every where without going to the
market. When the person give the order for the purchase by using ecommerce website it will
automatically record on the sellers computer this save the time of seller because he has not to wait
when the customers come in their shop. So people has more time to thing about the innovations

Lower capital requirement

Due to information technology mostly businesses are now selling and purchasing online so they less
capital requirements means no huge building and more employees required but he just need a
computer to trade the business. Online business can also be started in a small office.

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Electronic commerce

Computerized Accounting

The most important benefit which is given by information technology to the business is computerized
Accounting. In the computerized Accounting businessman has only to record the data it will make
automatically ledgers, trial balance and financial statement. So it reduces the cost and time for the
business. It provides the information on time on which businessman can take decisions.

What is the working of internet?

Internet

Is a flood of information which is world wide of network all machines which are permanently
connected on the internet are servers and all the servers on the internet have unique address by
which they can be identified on the internet this unique address is called their Ip address and www is
one of the major services of the internet

Country server

Data B
A
Send
E
Client
Request To

c
D D
Local server
Domain name
server
Suppose that above diagram is internet where the all circles are servers. In the world there are
number of servers which does not remember the ip address of the every server. Suppose that person
has published the website on the server A which tis the server of the foreign country and client wants
to access such website client has only authorized to make the request to his nearest server suppose
that nearest server is D. The client can only send the request for serving the website if he has web
browser. When the client makes the request to the server d he request it in the domain name and
server d does not know the ip address of such website. Than Server d sends the address to his country
Server which is server e which first look the correspondent ip address in his list if not have he send it
to the server c which is the domain name server of the country in which the domain name and ip
address are automatically updated whenever new website launched. When the server c founds the ip
address he request to the appropriate server on which it is published which is server A. Server A when
receives the request he sends the data to server D because all other servers make the request on the

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Electronic commerce

behalf of server d. when the server d receive the data he transmits the data to the client. In next time
when the client again makes the request to the server d for this website server d will directly send the
request to the server a because server d has updated his list.

The important terminologies of internet

www = world wide web

defined into two phases

through this service one can publish website on that server of internet on which web server is
installed

through this service websites can be accessed from all over the world through only the servers of the
internet.

Webpage

A website (also spelled Web site) is a collection of related web pages, images, videos or other digital
assets that are addressed relative to a common Uniform Resource Locator (URL), often consisting of only
the domain name, or the IP address, and the root path ('/') in an Internet Protocol .

Or
A website is a group of interlinked webpages stored on a server and accessible on a browser.

It performs the same functions as like Microsoft word performs but it has function which is hypertext

Hypertext

Link to other text. The area of text where the cursor changes its color is known as hot area.

We can access the website data by going to the particular website homepage and also entering the
complete address which is known as

Url (uniform resource locator)

A complete address of specific address. Such as

http://www.Asim.com/folder/page.htm

where the

Http is protocol

www is internet service

Asim.com is domain name

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Electronic commerce

/folder/page.htm is path leading towards the specific address

Domain name

Unique address which is given to the website such as www.Asim.com

Ip addressing scheme

Is the logical addressing scheme of the machines on the internet to uniquely identify them. It
comprise of 4 bytes and it is represented by four groups of decimals numbers which are separated by
periods. Maximum numbers which can be written is from 0 to 255

Such as 122.060.004.128

Domain name system

That will convert the domain name into corresponding ip address so we easily access the websites.

Such as converts the Domain name into IP

www.Asim.com =128.125.137.147

What is web browser? Explain its functions.

Web browser

A client software package which provides the interface to the user for accessing the World Wide Web

Five names of the Web browsers

Internet Explorer

Mozilla fire fox

Opera mini

Google Chrome

Netscape Navigator

Functions of the Web Bowser

Provide interface for writing requests

The main function of the web browser is that it provides the interface to the user for writing the request
means website which the user wants to access. Without this function web browser useless. Because it
does not facilitate to user’s.

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Electronic commerce

Take the request to Server

Another function of the web browser is that it not only provides the interface for writing the request it
also takes the request to the appropriate Server. So that it receive the data against the request.

Receive

Web browser receives the information/ data from the server in the source format means in which it is
written

Formatting

Web browser converts the data into such format which can be understood easily by the users. Because
web pages are written in the Html which are not easily understood by the user. So web browser
converts the html into English language.

Display

After converting the data it shows the information on the screen.

Web Server

Software which runs on the server machine which takes the request from the web browser and provide
the information to the web browser without web server no website can be published

Requirement for publishing the Website

First of all it is essential you must have the website. Without website you cannot publish.

Applying for the Domain name

The first step in publishing website is that person who wants to publish the website must apply for
domain name to International Corporation for assigned names and numbers. Icann is established for the
purpose of ensuring that each website address is unique. In this step person apply with the proposed
domain name and Icann see whether this domain name is already published or not. If not it allots.

Need a server

The second step is to find a server on which web server installed so that website can be published.
When the website published on the web server than web server tells the domain name and ip address
of the published website to the near by Domain name servers so that the Dns update their list so that
users can access the website.

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Electronic commerce

Open system interconnection

OSI (Open Systems Interconnection) is a standard description or "reference model" for how messages
should be transmitted between any two points in a telecommunication network

The data is transmitted from one computer to other computer by 7 Layers

A common sentence should be remembered so that you can easily write the names of layers if you
forgot. Sentence is given below

Please do not touch Shahid’s pet alligator

The sequence of layers changed in both sides means in receiver and sender side

Sender Side Receiver Side

Application layer Physical layer

Presentation layer Data link layer

Session layer Network layer

Transport layer Transport layer

Network layer Session layer

Data link layer Presentation layer

Physical layer Application layer

Application layer

It provides the interface (allow to write) to the users and allows access to the network resources and
requests related to file transfer, email, remote file access and data base queries are handled by this
layer.

Two protocols used by this layer are

Http and Ftp

Presentation layer

It is also known as translator of OSI model. It performs three works

Translation

It converts the data into the common format. So that each and every hardware can translate it. Because
it may be possible that operating sytems and hardware may be different of two communicating device.
For this translation is done

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On the receiver side this common format translated into the receiver format.

Encryption

On the sender side

This layer converts the plain text (read able text) into cipher text ( unread able text). So that only
receiver can understand it.

On the receiver side

Decryption is done means conversion of cipher text into the plain text.

Compression

On the sender side this layer reduces the number of bits/ size of data so that it easily transfer and faster.
On the Receiver side decompression is done means this layer restore the data size when it reach to the
destination.

Protocols used

Mime (multipurpose internet mail extension protocol)

Session layer

It establishes, maintains and synchronizes the interaction between the communicating systems. It also
tells about/ provides the instructions about the communication link between sending and receiving
machines during a particular session.

In this layer there are three modes of communication

Simplex mode one way communication like TV, Radio

Half duplex mode Two communication but one can communicate at one time (waki taki)

Full duplex mode Two communication simultaneously (Mobile phones)

Protocol used

Spdu (Session protocol data unit)

Transport layer

It converts the data into Packets. Transport layer records the packets names and total number of
packets so that packets will reassemble in the source format.

Protocol used

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Tcp (Transmission control protocol)

This protocol is more reliable because in this protocol every packet reports to server when it reach to
destination. If the one packet lost than sender easily can send the packet because it is easily to find the
missing packet. Because every packet reports to the server

Udp (user datagram protocol)

This protocol is unreliable because in this protocol no packet reports to the server. So the server has to
again sends the whole data if any one packet is missing.

The protocol of the internet is Tcip

Network layer

This layer is responsible for source to destination delivery of packets across the multiple networks.

Protocol used

Ip (internet protocol)

This protocol provide the ip address to the data by using ip protocols so that data will reached to the
destination.

Rip (Routing information protocol)

This protocol maintains the routing tables so that it will select the best best path for the traffic on which
data will reach to the destination faster.

Data link layer

It places the data packets into data frames

This layer finds the means/address of the destination so that data will be transfer. The sub layer is

Nic (network interface card)

Nic is usually known as the Lan card and their address are known as Mac address (Media access control
address) which is written on the each lan card. This layer identifies the neighbor traffic routs address on
which the data transmitted. For instance within the organization this layer will use Mac address if it is
outside the organization it will use domain name.

Physical layer

In this layer no extra information attached with the data but it converts the data along with header into
binary this result into the generation of electric signals as 1’s and 0’s, qued up and travel along the
connectivity to the receiving side

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Electronic commerce

Header

A piece of information which is added to data at every layer except physical layer.

Html

What is HTML?

HTML is a language for describing web pages.

 HTML stands for Hyper Text Markup Language

 HTML is not a programming language, it is a markup language
 A markup language is a set of markup tags

HTML Tags

HTML markup tags are usually called HTML tags

 HTML tags are keywords surrounded by angle brackets like <html>

 HTML tags normally come in pairs like <b> and </b>
 The first tag in a pair is the start tag, the second tag is the end tag
 Start and end tags are also called opening tags and closing tags

HTML Documents = Web Pages

 HTML documents describe web pages

 HTML documents contain HTML tags and plain text
 HTML documents are also called web pages

The purpose of a web browser (like Internet Explorer or Firefox) is to read HTML documents and display
them as web pages. The browser does not display the HTML tags, but uses the tags to interpret the
content of the page.

HTML Attributes

 HTML elements can have attributes

 Attributes provide additional information about an element
 Attributes are always specified in the start tag
 Attributes come in name/value pairs like: name="value"

Opening Tag

<html>

<head><title>abc</title></head>

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University Background
Punjab Gujranwala Campus For inserting the By:ShahzadCh.MC09129
will color Electronic
picturecommerce
on whole
change change Background

<body text=”green” bgcolor=”red” background=”Asim.jpg”>

For text moving For Speed For moving

For two way
slow or fast right/left and so on
movement
Opening tag

<marquee scroll amount=”5” behavior=”alternate” direction=”top/bottom/right/left”

For banner For highlighting the
Closing tag
color Text of marquee

bgcolor=”blue” height=”5” width=”1150”></marquee>

For drawing
the line
<hr size=”10” width=”1150” color=”red”></hr>
Heading For centering
the text
<h1 to h6><center>Asim</center></h1 to h6>

bold italic underline

<b><i><u>Asim</u></i></b>

For showing the data in same

format in which you write

<pre>

………………

……………………….

……………….

</pre>

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Paragraph

<p>

………………………………………………………………………………………………………
………

</p>

Font size Color change Text design For showing the

change for this data change data in next line

<font size=”3” color=”red” face=”Ariel”>Asim<br>student of pugc</font>

For inserting the picture

in specific area

<img src=”Asim.jpg”> first save the image where you save the Html document

For hyperlink to
website

<a href=”http://www.Asim.com></a>

For highlighting
the text

<span style=”background-color:blue”>Asim</span>
For intra page link Create
link to move up and down

<a href=#Asim”>Asim></a>

<a name=”Asim”>Asim</a>

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Hyper link for the page on
the user machine

<a href=”abc.htm”>abc</a>

When we click on the image

than it goes to another website

<a href=”http//:www.Asim.com><img src=”Asim.jpg></a>

Ordered list
for showing the result in website such as
<ol type=”1/a/A/i/I>
1/A/a/i/I Lahore
<li>Lahore</li>
2/B/b/ii/II Gujranwala
<li> Gujranwala</li>

</ol>

Unordered list For showing the result in the website such as

<ul type=”disc/circle/square”>  Lahore

 Gujranwala
<li>Lahore</li> o Lahore
o Gujranwala
<li>Gujranwala</li>

</ul>

Definition list

For showing the definitions in pet format means all headings are in one size and all definitions
are in one size but less than the size of the headings

<DL>

<dt>Imf</dt>

<dd> international monitary fund</dd>

</dl>

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Nested list

<ol type="A">

<li>Punjab<ol type="1"><li>Lahore<ul type="circle">

<li>Gulberg</li><li>Defence</li><li>Model Town</li></ul</li><li>Gujranwala

<ul type="circle"><li>Gujrat</li><li>Kanganiwala</li><li>Satelite Town</li></ul></li>

<li>Sialkot</li></ol></li>

</ol>

A. Punjab
1. Lahore
o Gulberg
o Defence
o Model Town

2. Gujranwala
o Gujrat
o Kanganiwala
o Satelite Town
3. Sialkot

Cell walls distance increase Increase the space between

Table against the contents of cell the cells

<table border=”4” background=”Asim.jpg cellpedding=”4” cellspacing=”4”>

Row Column
For showing the table in the website and data

<tr><td>1</td><td>2</td><td>3</td></tr> 1 2 3
4 5 6
<tr><td>4</td><td>5</td><td>6</td></tr>

</table>

For inserting the image in the one row and column in the table

<tr><td><img src=”Asim.jpg”></td></tr>

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For inserting the hyperlink in the column and row of table

<tr><td><a href=”http//:www.google.com.pk”>Google</a></td></tr>

E business Model

A way in which a organization works to generate revenue over/through websites is called the E
business model of that organization

Different types of Model

1.Store front model

Websites which sells the products and have the characteristics of shopping cart, catalogue, order
acceptance, payment facility and order remove.

Two types of Store front model

a. E-Store

Means the one owner of the website and single individual sell the products

Types of E-Store

i.Specialized

Websites which only sell the one type of product or different products of one type such as
computer, mobiles

ii.Generalized

Websites which sell almost each and every products

b. E-Shopping mall

Means different persons together develop the one website and sell through this website is called
E-shopping mall. Eg.www.Alhafeezcentre.com

Benefits of E-shopping mall

For owners For customer

Cost less one transaction

Less hosting charges save time

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One domain name easy to remember

More options discount

Less transaction cost

More trust Less secrecy

Types of E-shopping mall

i.Specialized

Websites which are E-shopping mall and sell only one type of products

ii.Generalized

Websites which are E-shopping mall and sell almost every thing

2.Auction model

Websites which does not sell their own goods but provide the platform to people to sell or buy
good by bid. These websites shows the reserve price (minimum price at which bid is acceptable),
last date for submission of bid and results. At the end of auction this website informs to bidder
(winner) and seller and payment and delivery and payment mechanism has been settled down.
Auction sites charges the commission on their services.

Types of auction model

a.Forward auction

In forward auction first seller comes and announce we are going to sell this good. The buyers
compete in the bid and pay higher and seller takes benefit

Types of forward auction

i.English

In this type you can increase your bid price with the passage of time

ii.Dutch

In this type you can decrease your bid price with the passage of time

b.Reverse

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In this auction model buyer first comes and announce we want this and this goods and does not
show the price at which they buy. In this type sellers compete and buyer buy the products at
lower price.

c.First price

A type of auction model in which bids are not release and winner (bidder) have to pay the
highest price.

d.Second price

A type of auction model in which bids are not release and winner (bidder) have to pay second
highest price.

3.Portal model

Websites in which variety of services are gathered in one site or provide almost every thing in
one place such as google,yahoo

Types of portal model

a.Horizontal portals

Provide about of a very broad range of topics such as search engines

b.Vertical portals

Provides information pertaining to a single area of interest eg community portal, health

4.Click and morter

Websites which sell the products and at least have one shop where one can buy product.

5.Click and click

Websites which only sell through the websites and have no any shop in the world is included in
the click and click means 100% online selling

6.Pure play

Websites which sell such products which can be delivered through internet and receives the
payment through internet is pure play model

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7.Partial play

Websites which sell two types of products one is which can be delivered through internet and
receives the payment through internet and second is which can be delivered through ship/or any
other source other than internet and receives payment other than internet or by using internt.

8.Brochereware

Websites which just deal in the advertisement and increase revenues by providing advertisement
facility.

9.Online banking

Websites which provides the services of online fund transfer, payment of utility bill and balance
check and receives service charges.

10.E-learning

Websites which give education and receives money for registration and give certificates.

11.Online news

Websites which provides the news on internet and receives charges is online news

12.Online entertainment

Websites which provides funny pictures and funny material and receives charges.

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Legal and ethical issues regarding

1. Domain name registration
2. Development of websites

Law

Is a branch of philosophy which tells what right is right and what wrong is wrong along with a concept of
punishment. Legal word derives from the law. Law is same for all people living in one territory.

Ethics

Is the branch of philosophy which tells what right is right and what wrong is wrong. Ethics varies from
person to person.

(In the earlier days means before the establishment of World intellectual property right organization)
People(which does not relate to business) with the melafide intentions registers the websites with the
names of such businesses from the icann which does not registered their websites yet and they have to
register the websites later. Due to this when businesses apply for the registration of the websites with
their names they known that this domain name is already is taken by this person. When the business
owners goes to the person that he waives his right form the domain name at that time person which
registered the websites blackmail to owners and charge too much money because Business owners
usually registered their websites with the name of business so that consumer can easily remember and
access the website. At that time it was ethical issue. But now it has become legal issue due to
establishment of WIPO (world intellectual property right organization. In this organization/court people
can sue against such persons who registered the websites with the names of others business for the
purpose of blackmailing and taking huge money. This court cancels the domain name registration and
fined heavy money to such persons who registered the domain name of others business which does not
relate to them.

1. Issues Regarding Domain name

Domain name

Unique address which is given to the website such as www.shahzaadch.com

Domain name consist of two Parts

User id + Top level domain

ICANN offers (21 top level domain names) following top level domains

.aero air-transport industry .cat Catalan

.asia Asia-Pacific region .com commercial

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.biz business .coop cooperatives

.edu educational .museum museums

.gov governmental .name individuals, by name

.info information .net network

.int international organizations .org organization

.jobs companies .pro professions

.mil U.S. military .tel Internet communication services

.mobi mobile devices .travel travel and tourism industry related sites

In Pakistan PKNIC registered the domain names along with the additional extension of .Pk with every
top level domain name. such as www.google.com.pk. PKNIC domain registration fee for one year is 1100
but PKNIC does not registered domain name for one year it registered for two years minimum so users
has to pay 2200 as a fee and proposed domain name for registration.

1. We cannot take the domain name of such business with its names which is registered and not
registered the website because he has only the right to register the website with his business
name.
2. We cannot take the domain name which is already registered
3. Also cannot take the registered domain name in different top level domain
4. Also cannot take such domain name/user id in which by splitting the user id the one part of
user id similar to the already registered user id such as Asimyahoo.com
By spliitng Asim yahoo yahoo is already registered
Yahoo
5. Regarding Trade mark

Trade mark

Any thing, sign, image, logo which distinguish the company’s product in the number of products.

There are two legal issues regarding the Trade mark

i. Phonetic Deception

It means that we should not take such domain name which words different form the trade mark of other
business but provides same sound such as

Original Phonetic deception

Cocacola.com KOKAKOLA.com

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UFONE.com youphone.com

ii. Visual deception

It means that we should not take such domain name in which we use the trademark of other but with
low change and provides similar look by seeing at once. Such as

NIKEE Used the Sign as in our Domain name As

Microsoft used As Micros0st

If there is any legal issue approved which is described above than owners of such websites along with
the cancellation of their domain names they have to pay the heavy fine.

Good businesses registered their websites in all top level domain names so that no one can registered
the same name in different top level domain name. The main benefit of registering in all top level
domain names is that user which does not know the exact extension of the business website and know
only user id by writing the only user id in the address bar can access the relevant website. When the
user only write the user id of website and not write the top level domain name servers redirect the
request to the original website due to registration in all top level domains. Such as write only the
www.google in the address bar of web browser the server redirect the request to google.com and show
the webpage of www.google.com. This process is known as redirecting.

So domain name should be

Unique, Relevant, easy to remember, short, and easy to pronounce

2.Legal issues regarding the development of the website

1.Regarding the trade mark

1. Cannot take the trade mark of other as domain name

2. Cannot write the trade mark of other in the our tile tag such as <title> other’s trade mark</title>
3. Cannot use/writ the trade mark of other in the meta tag
4. Cannot write the trade mark of other in the image tag
5. Cannot write the trade mark of other in the heading tag
6. Cannot write the trade mark of other in the paragraph of your website
7. Cannot use the trade mark of other in any page of our website without the consent of other
person
8. Cannot use the trade mark of other in any frame(divide the one window/page into multiple
windows/pages

If we use the trade mark of other business in our website than the copy right law will be apply

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Certain exemptions regarding the use of trade mark of other in our website

1. Can use the trade mark of other in our website if we have taken the written permission from the
owner of the trade mark
2. Can use the trade mark of other for advertisement purposes and word sponsored link should be
given

2.Regarding copy right

Is the exclusive right granted by the government to the author or creator of the original work and this
work should be innovative (first time introduce) for a particular period of time. It covers the tangible
things as book, painting and certain other intellectual works. No one copy the things which are
protected by copy right in the website. If copy than owner sue against the person who copy and have to
pay heavy fine.

3.Regarding the Patent right

Is a set of exclusive rights granted by a state (national government) to an inventor of idea or their
assignee for a limited period of time in exchange for a public disclosure of an invention. Patent rights
only cover the ideas. If someone uses the idea of other which is protected by patent right than he has
born the legitimate and pay heavy fine.

Example: the best example of the patent right is Amazon.com it gives the idea that our website store
the user data such as name, address, Credit card number or modes of payment and allot user id and
password so that user when comes to buy on the website than they can complete purchase by just
writing the user name and password instead of writing all data again

3.Regarding the Legal Documents

Every website should have three legal documents so that you can avoid the claims of others.

1. Term of services

This document contains the policy, way in which business conduct its activities, procedure of purchasing,
terms and conditions, procedure of refund, procedure of selling and so on.

2. Disclaimer

This document tells what we own and what we disown. It tells for what things company responsible and
not responsible. Such as company is not responsible for any delay in order due to load shedding.

3. Privacy statements

It tells what we will do about your information whether we store permanently or not store or publish or
not publish

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4.Regarding the hyperlink

We should not give the hyperlink of other websites in our website whether it is the link of the homepage
or deep link. Deep linking means giving the hyperlink of the webpage of others website other than
homepage in order to give the expression that this page is developed by us.

Note-Copyright protects creative expression that has been reduced to a tangible form, such as a book, piece of recorded music,
computer program, screenplay, painting, photograph, or motion picture.

Trademark protects brand names, literally marking items in trade. The idea behind trademark is to protect the consumer by giving
them some confidence that items branded with a certain mark are authentic and come from where they purport to come from.

Patent protects innovation. While you can't copyright an idea, you can patent one

How search engine works/ finds the websites

Search engine search the text which we write in the text field bar in the following steps and shows the list
of websites in which search hits

1. First see the Domain name

2. See the word written in title tag <title> see here</title>

3. See in the contents of meta tag <meta contents=” here it see”>

4. See in the image tag <img alt=”see here”>

5. See the heading

6. See in the paragraph tag <p> here it see </p>

Where the search hits it shows the domain name of such websites.

Meta tag- are not shown in the webpage these are commands for the browser how to display the page and
reload the page after how much time or display this page against this and this word.

Data:

Any thing which we want to store permanently it may be word, objects, picture, audio, video and so on.

Data base management System (DBMS):

Is a software which properly designed the data base so that data can be stored in an organized and
compact way and through this software one can retrieve the appropriate data easily and efficiently.

Data base:

Is the central area where the data base management system saves the data in the organized and compact
way and retrieve.

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Relational Data base management it organize the data base in the tabular form so that data can be recorded on tables

Acid Properties of Data base Management System related to Transaction

First we should see what is meant by Transaction

Basically Transaction is a agreement between buyer and seller to exchange an asset/thing against cash.

OR

Any event which changes the financial position of the business is transaction.

1. Atomicity

This property follows the Rule “all or nothing” for the modification of the data base. This property
modify the database and keep data base up-to-date when the transaction 100% complete and if the
transaction incomplete than this property roll back the effects of the transaction and stand on the pre
transaction state even the 99% transaction complete and 1% incomplete. If the transaction 100% complete
than it is called commit and if the transaction is incomplete than it is called abort

For example

You have deposited the 100,000 in the bank A/c. The Data base shows the exact amount in you’re a/c
which is the sum of previous amount + current deposit when the transaction 100% complete. Dbms shows
the only A/c balance excluding the current deposit when the transaction incomplete. The transaction may
be fail due to several reasons

1. Hardware failure: A disk drive fails, preventing some of the transaction's database
changes from taking effect.
2. System failure: The user loses their connection to the application before providing all
necessary information.
3. Database failure: E.g., the database runs out of room to hold additional data.
4. Application failure: Dbms attempts not to complete the transaction which violates the
rules defined by Company.

2. Consistency

There are certain rules defined by the company Such as we will not sell the products if our
inventory is 25 units or not sell if the inventory is below the Sale order which have to insured by
the Dbms. This property insures that rules are not violated and shows the results in the consistent
form for example there are 10 units in our inventory and we have take the order of 12 units the
Dbms does not show the Inventory as -2 but it should reject the order. For insuring that Dbms
provides the results in consistent way Checks and constraints are applied In the consistency
property.

3. Isolation

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There are may be multiple transactions execute at a time. This property says that Transaction
which are not 100% complete will isolate to other transaction. This property does not show the
update for the other transactions until the first Transaction complete. For example you have
Given command to banker that the 100,000 Rs Transfer from my A/c A to A/c B. At the same
time you are checking the your a a/c balance it shows that Amount has been deducted and also
check the New A/c Balance Of b A/c but it does not show the New amount in the A/c B because
the transaction is in process.

4. Durability

This propery keeps the record for ever for such transactions which are 100% complete until and
unless you discard it and provides the appropriate data when you required.

Why payment system needs arises?

In the earlier days people lives in the forests and use the leaves as their dress and use the caves for their
shelter. At that people were independent and food means fruit which were grown naturally people not
make efforts to grow the foods. There is no need of the payment system because there are lots of natural
resources are available. But with the passage of time advancement people becomes more educated they
feel that there must be homes which are away from the forest and need the permanent cloth which protect
from the cool and diversified food. At that people makes homes and try to produce something and in the
end they found that they cannot produce each and every thing and have to need other things so that they
can satisfy their needs. So at that time the need of payment system arises. At that time people dependent
on each other and barter system used as the payment system. In barter system people exchange their
goods against the other goods so that they can satisfy their needs. After some it is realized that this system
is ineffective because there is no proper scale and people gives more of one unit and receives less.
Sometimes it is difficult to make small parts of some things to exchange against the goods just as no one
can make the part of cow for taking the 1 kg rice. At that time there is need of such thing which can use as
measure and acceptable. So at that time precious stones and metals used as a currency later with the
advancement people makes the coins on which pictures are stamped used as the currency. After this it
was realized that coins have to much weight if someone wants to carry huge money with him he has to
take the big bag on which coins can stored so that he can carry them. At that time Currency notes means
papers are used to make currency which are considered the major advancement in the world and used for
too many decades as the currency. A big issue with it that it was difficult to carry huge money. So in the
present world plastic money(credit card, debit card and smart card) introduces so that people not only
easily carry them but also secure their money and with the help of the plastic money people can make
easily purchase things from the every corner of the world.

E-payment:

Is the transfer of the funds from one place to other place by using the websites through the internet.

Different Modes of payment

E-cash:

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Basically consumer deposits the money in the bank or in any other organization and bank allot a number
to the consumer for making the payment from them which is E cash. It is less secure, less complex and
low transaction cost. So that’s why it is used for the small/Micro payments.

Example

Such as A consumer deposits the money in the A/c of pace for purchasing the goods from the pace. Bank
gives the number to the consumer so that he can give this number to seller as a payment. When the
consumer gives the number to seller, seller sends this code to bank and verifies either required funds have
or not in this A/c against this number. If there are required funds bank validate the information and inform
to the seller required funds have in this A/c against this number and seller sells the goods and if the
required funds are not than bank also validate the information and tells to seller that required amounts
have not in this A/c against this number and seller will not sell the goods.

Transactional Cycle of the E-cash:

Merchant

1. Consumer deposits the money in bank

5 2. Bank gives the E-cash number to consumer
3. Consumer gives the E-cash number for payment
4 4. Merchant sends the E-cash number to bank for
Bank verification whether required amount have or not or
3 6
valid or fraud.
2
5. Bank verifies it is Valid
6. If bank verifies valid than merchant sells the goods
1 to the Consumer

Consumer

Credit Card:

In the credit card we use the funds of the bank for payment and later on we repay the money with interest
to the bank. In the credit card the Name of the owner, expiry date and 16 digit code which is used to
identify which bank issue this credit card. It is more secure, its transactional cost is very high and it is
more complex because there are more parties are involved. So it is used for the large payments because it
is more secure than E-cash.

Credit Card Transactional cycle

8.Seller’s ship the goods to Buyer
1.Buyer sends the credit card information to seller

Buye Seller 2.Seller

3.Seller sends the information to the third party like
sends the
Visa because credit card their property
6.Sends
10. Buyer informati
the 9.Seller notifies to his bank
Paid the
Third Party Likes informa on to
Money to 4.Visa Company sends transaction complete. Bank
His bank information to Buyer’s bank Visa,Mastereo ie tion to seller’s deposit the money in seller
Seller’s bank A/c
bank

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5.Verifies information 7.Seller’s

and tells to Visa company bank
Buyer’s bank Seller’s Bank notifies to
seller
Debit Card: 11.Buyer’s Bank pay the money to Seller’s Bank

In the Debit card person have its own funds and use these funds to purchase the goods and consumer
cannot purchase the goods which amounts exceed to the amount in the Debit card. The main difference
between the debit card and debit card is that in credit card we use the funds of the bank for purchasing but
in the debit card we use his own funds for purchasing the goods.

Transactional cycle of the Debit Card:

8.Seller’s ship the goods to Buyer

1.Buyer sends the credit card information to seller

Buye Seller

2.Seller
sends the
3.Seller sends the information to the third party like
Visa because credit card their property informati
6.Sends on to
4.Visa Company sends the
Third Party Likes seller’s 9.Seller notifies to his bank
information to Buyer’s bank informa
Visa,Mastereo ie bank transaction complete. Bank
tion to
deposit the money in seller
Seller’s
A/c
bank

5.Verifies information 7.Seller’s

and tells to Visa company bank
notifies to
Seller’s Bank seller
Buyer’s bank

10.Buyer’s Bank pay the money to Seller’s Bank

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Key issues in Electronic Payment

If these issues are not resolve than there is no issue of E-payment. Without E-payment no one can
purchase the goods easily and less expensive. Now a days Most products a purchased with the help of E-
payment.

1. Privacy:

This is the most important issue in the E-payment. This issues says that when the user sends the
information of the credit card and purchasing material and whatever the user sends no one can read the
user’s information else the person to whom the information concerned. When the user sends the
information to the vendor through internet there may be chance that one can hack the information and use
the information for their benefit. So the data should be send in the encryption (unreadable text) form so
that no one can read the information during the traffic and on the vendor computer and vendor pass this
encryption text to the bank so that bank can verify the information. Bank will make the decryption so that
he can read the information.
Ghair shareef Banda

Hack this information

Asim Plain Credit Information Vendor

Vendor sends the information to bank for verification and tacking the Guarantee

Bank

In the above diagram hacker hack the information and use the information for their benefit and user
suffer the loss. So information should be send in the following way means encryption form.

Hacker can only Hack the information

but cannot read

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Credit information in Encryption form

Asim Vendor

Sends the data which the vendor receives in

encryption form directly pass on to the bank for
validating

Bank
Integrity

The information is transferred from one place to other place in bits through internet. The first issue only
relates to the privacy of the information, but privacy is not the complete solution. Sometimes it is
happened that users sends the correct information in the encryption form and not reach to vendor in the
same form so the different information, information will not validate and E payment cannot be done. It is
happened because hackers change the bits of the information which the users send to the Vendor which
gives the different meaning. So integrity means that hackers not only read the information but also cannot
change the bits of the information so the E-payment can be done easily.

Authentication:

Authentication is also very important there must be third party which verifies the information and
provides the guarantee to the vendor for their payment. Without Authentication there is no concept of the
E-payment. Because if no one gives the guarantee to the seller the seller will not sell the products which
payments comes from the E-payment.

Non Repudiation:

Non repudiation means that parties should not deny their actions. The seller and buyer should fulfill their
commitments and not deny their actions. If someone deny than the entire above key issues are waste. So
there should be third party which insures the Non Repudiation.

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