SCHOOL OF EXCELLENCE IN LAW

B.C.A. LL.B (Hons.)

ELECTRONIC COMMERCE
Study Material
 CONTENTS
Unit No. Title Page No
1. MODULE – I
Introduction to E-Commerce
2. MODULE – II
E-Commerce Models
3. MODULE – III
Electronic Payment Systems
4. MODULE – IV
Managing the E-Enterprise
5. MODULE – V
E-Advertising and E-Marketing
6. MODULE – IV
Legal and Ethical Issues in E-Commerce
 Syllabus
ELECTRONIC COMMERCE
Objectives of the Course
This course aims that the students should have learnt to analyze the business model of
firm and determine the role of internet in supporting the models. The students can understand the
key issues involved in managing electronic payment commerce initiatives. The students can also
utilize the internet to collect information to conduct research.

COURSE OUTLINE
Module I: Introduction to E-Commerce
a) E-Commerce – Meaning, Definition and Features of E-Commerce Technology.
b) Interdisciplinary Nature of Electronic Commerce.
c) Impact of Electronic Commerce.
d) Applications of Electronic Commerce and Benefits of E-Commerce to Businesses,
Customers, Society.
e) Drawbacks of E-commerce.
Module II: E-Commerce Models
a) E-Commerce Models – Introduction and Concept.
b) Business Models – E-business Models Based on the Relationship of Transaction Parties –
B2C – B2B – C2B – C2C – B2G.
c) E-Commerce Sales Life Cycle (ESLC) Model.
Module III: Electronic Payment Systems
a) Electronic Payment System – Meaning of Electronic Payment, Traditional Payment
System vs Electronic Payment System.
b) Types of Electronic Payment System – Smart Cards and Credit Cards Based Electronic
Payment Systems.
c) Security Requirements in Electronic Payment Systems.
Module IV: Managing the E-Enterprise
a) E-Enterprise – Introduction, Managing the E-Enterprise.
b) Comparison between Conventional Design and E-organization.
c) Organization of Business E-Enterprise.
Module V: E-Advertising and E-Marketing
a) Introduction of E-Advertising– Models of Internet Advertising, Benefits and Weakness in
Internet Advertising.
b) E-Marketing in India.
c) Online Marketing – Advantages of Online Marketing.
d) Social Media Marketing – Advantages and Disadvantages.
Module VI: Legal and Ethical Issues in E-Commerce
a) Security Issues in E-Commerce.
b) Different Types of Factors behind the Threats.
c) Security Tools (Encryption, Digital Signatures and Digital Certificates).
d) Regulatory Framework of E-Commerce – Provisions contained in Information Technology
Act 2000 and Amendment Act 2008.
Recommended Readings:
1. Rayudu. C (2010). E-Commerce and E-Business. Mumbai: Himalaya Publishing House.
2. Rayport &J aworeski B. J. (2009). Introduction to E-Commerce. Noida, UP: Tata
McGraw Hill Publishing Company Limited.
3. Jaiswal.S (2000). E-Commerce (Electronic Communication for Business). New Delhi:
Galgotia Publications Pvt. Ltd.
4. Joseph.P.T (2018), E-Commerce an Indian Perspective, PHI Private Limited, New Delhi.
5. C.S.V.Murthy, E-Commerce-Concepts, Models & Strategies, Himalaya Publishing
house, Mumbai, 2018.
 MODULE I: INTRODUCTION TO E-COMMERCE.

MEANING OF E- COMMERCE
E-commerce is the buying and selling of goods or services via the internet, and the transfer of
money and data to complete the sales. It's also known as electronic commerce or internet
commerce.
DEFINITION OF E-COMMERCE
According to Philip Kotler E-commerce can be defined as a general term for buying and selling
process that is supported by electronic means. E-commerce, also known as E-business, a term
applicable for all kinds of business, that are established electronically especially over the
Internet.
WHO IS FATHER OF E-COMMERCE?
Michael Aldrich
Michael Aldrich, an English inventor, and entrepreneur invented online shopping in 1979. He is
popularly known as the Father of e-commerce.
In India, the title Father of e-commerce in India is attributed to K. Vaitheeswaran, who co-
founded the country’s first e-commerce company, fabMart. (Later rebranded Indiaplaza.com) in
1999.
E-COMMERCE ACT
Section 84A of the IT Act cast a duty on the Central Government the promotion of e-
governance and e-commerce. It also has to provide for the secure use of electronic means.
Provisions regarding data protection are contained in Section 43A of the IT Act.
The Information Technology Act, 2000 was enacted by the Indian Parliament in 2000. It
is the primary law in India for matters related to cybercrime and e-commerce. The act was
enacted to give legal sanction to electronic commerce and electronic transactions, to enable e-
governance, and also to prevent cybercrime.
FEATURES OF E-COMMERCE
There are Two Methods there
I ) Traditional Method
II) Common Method

I ) Traditional Method

1. User-friendly structure
User-friendly access is one of the most important e-commerce features that clients
look for in an e-commerce website. Customers will switch to other online retailers if they
have trouble using your websites or can’t find what they’re looking for.
2. Global reach
E-commerce, as I already mentioned, is everything. Being everywhere makes it
incredibly practical for us, the users. You can live in New York City and shop for products
all over the world. Because the goods or service is available from anywhere, the customer is
wide and the business grows as a result.
3. Information Density
Rich information is made available to the buyer before, during, and after the purchase
of a good or service thanks to e-commerce. These data are better in quality and less
expensive to give and receive. Data density means overall amount and fine of facts to be had
over the internet to all market buyers and sellers. net massively increases data density.
Record density gives higher exceptional statistics to patrons and merchants. E-trade
technologies increase accuracy and timeliness of records. For instance, the flipkart.com store
has a variety of products with expenses.
4. Customer Reviews
Create a section on the online store’s website where customers can read product
reviews. Reviews are essential for any online business because clients would not have the
opportunity to actually check a product; instead, they would likely rely on reviews left by
other customers. Platforms that allow customers to leave reviews on products to help others
make informed decisions.
5. Secure Payment
Make sure to make the checkout stage as simple as possible for the clients by
including a variety of online payment options in the shopping cart in order to increase your
chances of closing the transaction during the primary checkout process. Platforms should
have secure payment gateways for customers to make payments securely.
6. Mobile Responsiveness
To improve your conversion rate and keep clients satisfied, make sure your website
design is automatically adjusted for the size and form of phones. Mobile responsiveness to
reach more people
7. Universal Standards
Universal standards suggest that your website runs on established platforms using
accepted methods and processes. E-commerce supports a single set of universally accepted
worldwide standards. Everywhere, this is done. The goal is to make it easier for customers to
quickly find what they’re looking for without encountering unnecessary blockages that can
prevent them from making a purchase.
Conclusion
The blogs and articles may be relevant to the goods which you promote, or it may
provide expertise about another subject matter which is not immediately associated with the
products that are being offered at the e-commerce platform.
II) COMMON FEATURES OF E-COMMERCE
1. Global reach.
E-Commerce allows businesses to sell their products to customers being based in any
location despite geographical barriers. Fast transactions happen within seconds from any
location in the world. E-Commerce has no limits or borders.
2. Accessibility 24 hours a day / 7 days a week.
E-Commerce allows customers to purchase products online from the comfort of their home
or office. Thus, E-commerce provides extra convenience for customers. As online shopping
is accessible at all times unlike traditional retailers which have strict opening hours.
3. Access to information.
Businesses are able to provide detailed, timely and accurate product information thanks to the
Internet. This will help customers to make more informed buying decisions now and in the
future. Also, every purchase is being recorded providing firms with huge amount of
information about their customers’ behavior. Finally, business managers, especially Finance
Managers, can access information about billing and payment.
4. Consumer reviews.
E-Commerce allows current customers to post online product reviews after each purchase.
This can influence the buying decisions of other potential customers whether to make a
purchase (after reading a positive comment) or not (after reading a negative comment).
Customers can also share information about products using ‘Share’ buttons via social
networks such as Facebook, LinkedIn, Twitter, Pinterest, Instagram, etc.
5. Impersonal interaction.
E-Commerce does not provide sellers and buyers with personal face-to-face interactions as
E-Tailers rely on technologies to reach their customers. Unlike physical retailers offering
customers personal customer service, the nature of the interaction with consumers under a
system of E-Commerce is impersonal.
6. Barrier to entry.
E-Commerce is highly dependable on technology that is often not cheap. On another hand,
technology has helped E-Tailers enter into new markets as start-up costs for online retailers
are much lower than the costs for opening retail shop in a physical location.
7. Trust issues.
Businesses have legal and social obligations to ensure that all business transactions are not
only legal but also ethical. Because of lack of personal interactions between buyers and
sellers, trust issues play a very important role in trading products online. For example, some
customers may not trust making online payments to E-Tailers using the credit cards or debit
cards being afraid of the loss of personal information.
ELECTRONIC CONTRACTS
The IT Act recognizes the validity of electronic contracts. Section 10A states that
contracts formed through electronic means shall not be deemed unenforceable merely because
they are in electronic form. Implications: – E-commerce transactions, including online purchases
and agreements, are legally binding.

INTERDISCIPLINARY NATURE OF E-COMMERCE

Electronic commerce, being a new field, is just developing its theoretical or scientific
foundations. Ii is based on several disciplines. The major disciplines of E-Commerce with some
samples of issues with which they are concerned follow:
1. Marketing
Many issues of marketing offline are relevant to online E-Commerce - for example, cost
benefits of advel1isements and advertisement strategies. Other issues are unique to E-
Commerce, ranging from online marketing strategy to interactive kiosks.
2. Computer sciences
Many of the issues in the infrastructure of E-commerce, such as languages, multimedia, and
networks, fall into the discipline of computer sciences. Intelligent agents play a major role in
E-Commerce as well.
3. Consumer behavior and Psychology
Consumer behavior is the key to the success of B2C trade, but so is the behavior of the
sellers. The relationship between cultures and consumer attitude in electronic market is an
example of a research issue in the field.
4. Finance
The financial markets and banks are one of the major participants in E-Commerce. Also,
financing arrangements are part of many online transactions. Issues such as using the Internet
 as a substitute for a stock exchange and fraud in online stock transactions are a sample of the
many topics of the filed.
5. Economics
Electronic commerce is influenced by economic forces and has a major impact on world and
country economies. Also, theories of micro and macro-economics need to be considered in
E-Commerce planning, as well as the economic impacts of E-Commerce on firms.
6. Management Information Systems (MIS)
The information systems department is usually responsible for the deployment of E-
Commerce. This discipline covers issues ranging from systems analysis to system
integration, not to mention planning, implementation, security, and payment systems, among
others.
7. Accounting and Auditing
The back-office operations of electronic transactions are similar to other transactions in some
respects, but different in others. For example, auditing electronic transactions presents a
challenge for the accounting profession; so does the development of methodologies for .cost-
benefit justification.
8. Management
Electronic commerce efforts need to be managed properly, and because of the
interdisciplinary nature of E-Commerce, its management may require new approaches and
theories.
9. Business Law and Ethics
Legal and ethical issues are extremely important in E-Commerce, especially in a global
market. A large number of legislative bills are pending, and many ethical issues are
interrelated with legal ones, such as privacy and intellectual property.
10. Others
Several other disciplines are involved in various aspects of E-Commerce to a lesser
extent- for example, linguistics (translation in international trades), robotics and sensory systems,
operations research / management science, statistics, and public policy and administration. Also,
E-Commerce is of Interest to engineering, health care, communication, and entertainment
publishing.
 IMPACT OF E-COMMERCE ON TRADITIONAL RETAIL BUSINESS

1. Increasing Competition:
Traditional retail businesses face intense competition from various sources, including
online retailers, e-commerce platforms, and big-box stores. These competitors often offer a
wide range of products, competitive pricing and convenient shopping experiences, attracting
customers away from traditional brick-and-mortar stores.
For example, A local bookstore faces competition from online retailers like Amazon,
which offers a vast selection of books at competitive prices. Many customers choose the
convenience of online shopping and opt for digital books or e-books instead of visiting the
physical store.
2. Changing Consumer Behavior:
The shift in consumer behavior towards online shopping and digital experiences has
posed a significant challenge for traditional retail businesses. Today, consumers increasingly
prefer the convenience of shopping from their homes, comparing prices online, and having
products delivered to their doorstep.
For example, a traditional clothing retailer faces challenges as more customers prefer to
browse and purchase clothes through online platforms. Consumers can easily compare prices,
read customer reviews, and order clothes without leaving their homes, reducing foot traffic to
physical stores.
3. Comparing Product Options:
As compared to traditional business, e-commerce provides customers with a wide range
of alternatives while shopping. It gives the customers an opportunity to check out the
merchandise and simultaneously compare similar products on different websites. By doing so,
e-commerce also helps customers in comparing prices which is not an easy process in
traditional business. Therefore, customers shift from traditional business towards e-commerce.
For example, it is easy to compare clothes and their prices (including discounts) on
different websites like Flip kart, Amazon, Myntra, etc., then to go to a physical marketplace and
search for clothes at different shops.
4. Changes in Supply Chain:
With the rise in e-commerce, there have been numerous changes in the supply chain. It is
because retailers have had to adapt to the increased demand for efficient and fast shipping. This
change in the supply chain has resulted in new logistics and fulfillment challenges for traditional
retailers.
5. Opportunities for Integration:
Besides the negative impacts, e-commerce has also given traditional businesses some
opportunities. It includes integration between the online and offline channels. With e-commerce,
traditional retailers have successfully developed Omni channel strategies allowing their
customers to shop online and pick up products in-store or to order the product online, and then
return them (if required) at the physical store. Examples of businesses using Omni channel
strategy include Decathlon, H&M, etc.

E-COMMERCE APPLICATIONS AND THEIR BENEFITS

 E-Commerce or electronic commerce is when a transaction occurs using the internet.
An example is when a customer (the buyer) purchases one or more products or
services online from a virtual storefront (the seller).
 E-Commerce applications or e-commerce apps are design patterns of functionality
needed to list items for purchase, facilitate a transaction by accepting payment
methods, and initiate fulfillment of those purchases.
 Mobile e-commerce applications and shopping apps also function as marketing tools
when they allow for paid strategic placement of items for sale or use push
notifications to market products.
 Mobile app development for e-commerce is also sometimes called m-commerce or
M-Commerce.
 E-commerce involves using electronic mediums to conduct transactions, like buying
and selling goods and services online. E-commerce applications enable buying and
selling goods and services, and customers prefer using them over e-commerce
websites.
 This discusses common e-commerce applications and their benefits to your business.
It also covers the different types available and the important aspects of e-commerce
apps.
 Apps are software that businesses use to conduct online transactions and customers to
purchase goods and services.
 Businesses can use different types of e-commerce applications, like B2B, B2C, C2C,
and C2B.
 An E-commerce application improves brand recognition, helps to engage customers
one-on-one, and promotes customer loyalty.
 E-commerce apps contributed to the growth of the tourist industry leading to more
online booking applications.
 As a business owner, you can invest in retail and wholesale apps to cater to both
consumers and buy products from suppliers.
BUSINESS APPLICATION OF E-COMMERCE:
Conversational commerce: e-commerce via chat
1. Digital Wallet
2. Document automation in supply chain and logistics
3. Electronic tickets
4. Enterprise content management
5. Group buying
6. Instant messaging
7. Newsgroups
8. Online banking
9. Online office suites
10. Online shopping and order tracking
11. Pretail
12. Print on demand
13. Shopping cart software
14. Social networking
15. Teleconferencing
16. Virtual assistant (artificial intelligence)
17. Domestic and international payment systems

BENEFITS OF ECOMMERCE

Benefits of
E-Commerce

I) Business ii) Customer III) Society

I) Business
1. Lower costs
Going online eradicates the need for a physical storefront, meaning lower fixed costs for
the business. Also, since most e-commerce is automated, fewer staff members are required.
Marketing an e-commerce store, using Google Ad words, e-commerce Facebook advertising, and
social media marketing, for example, is much more cost-effective than promoting offline these
cost savings translate to lower prices for the consumer and more sales for the business. This is
one of the key benefits of e-commerce for businesses.
2. Customer data
Selling online gives the retailer access to a goldmine of customer data that is just not
accessible through brick-and-mortar retailing. Not only do online consumers typically provide
their name, email address, and phone number when checking out or registering on a site, but they
also provide a wealth of consumer behavior and demographic data, available through Google
Analytics, that can help online retailers optimize the consumer journey and market more
effectively and accurately. E-tailers are also able to nurture and retarget consumers precisely,
based on their stage in the journey. For example, using data insights, an online retailer can email
potential customers who have abandoned their carts, motivating and reminding them to check out
their purchase, and can even use retargeting advertising to nurture leads that have not yet
purchased.
3. Wider customer base
Going online with e-commerce sites makes geographical boundaries become
inconsequential. You could sell your products to online shoppers across the country or even
across the globe. You’re not limited to shoppers in your physical location. The internet also
opens up your retail store to different niche audiences that you wouldn’t have access to. By using
multiple online touch points, you can access customers from all angles by going where they
already are, such as social media, forums, and Google search.
4. Open always
When you sell online, your business is open 24/7/365. Even though your customer
support may be sleeping, automation ensures that the rest of the sales process is always flowing
and consumers can buy on any day, at any time.
5. Easier to scale up
Scaling up or growing a physical store requires more floor space (and the expense that
comes with it!), employees, and shelf space. In contrast, it’s very simple to grow an online store,
which is one of the less obvious benefits of e-commerce for businesses. All you need is more
inventories, a few digital tweaks, and possibly more storage space, which is far less costly than
storefront space. Being online also eliminates the need for opening a new store in another
location as you’re already within the reach of a global marketplace.

II) Customers
The benefits of e-commerce are quite evident so it’s no surprise why so many people choose
online shopping over traditional in-store shopping. This article describes 5 key benefits of e-
commerce for customers.
1. Lower prices
The lower costs of running an e-commerce store versus a physical store translate to cost
savings for the consumer. This is one of the biggest e-commerce advantages. Online prices are
typically lower than traditional store prices, and e-commerce sites are able to offer more
discounts and promotions that are easier to claim.
2. Convenient and safe
Shopping when you want from where you want is far preferable (and a whole lot safer)
than heading out in this COVID reality we’re now living in. Coronavirus aside, there’s also
something to be said about shopping from your bedroom, without having to venture out, wait in
lines, battle cold weather, and all the other challenges that go along with consumerism.
3. Wide product variety
In the global marketplace that is the internet, consumers can buy electronics from China,
books from England, clothes from Paris, and good old US products all from the comfort of
home. The width and depth of products sold online are unbeatable.
4. More informed decision-making
Information is literally at your fingertips when buying online, including:
 Reviews from real customers – this is probably the most effective
 Product descriptions
 Usage videos
  Product guides
 Social validation
Comparison shopping is another one of the top benefits of e-commerce to consumers, who
can easily compare products, brands, and websites with even side-by-side comparison possible.
Many comparison shopping sites exist with the sole purpose of enabling consumers to compare
products side-by-side based on price and discount metrics.
5. Saves time
In an age where time is a rare commodity, shopping online provides massive time savings
to the consumer. Since 63% of consumers start their shopping journey online, it makes sense to
be able to buy where you already are (Thinkwithgoogle, 2018). No need to head out, shop in-
store, wait in line, and then journey back home when you can access a greater product variety at
a lower price from the comfort of home.

III) Society
1. Provides Job Opportunities
E-commerce bridges the gap between the job seekers and job givers in the society.
Human resources are able to get themselves placed in any organization by posting resumes
through internet; some organizations also permit people to work from their home. E-commerce
through internet provides a global wide network to identify and train human resource too.
2. Promotes Cordial Relationship
E-commerce enables people to send gifts, greetings and gift vouchers to friends and
relatives anywhere in the world. This promotes cordial relationship between and among
individuals in the society.
3. Provides a Wealth of Information
People through internet are able to access any information, say from tourism to financial
products. Access of global information at lower cost, just by click of a button enhances the
knowledge of the people and helps them to transform into a part of a knowledge-based society.
4. Provides Entertainment
E-commerce helps people to download music, videos and go through latest updates and
reviews. It permits people to book tickets to the movies online.
5. Less Pollution
People can buy any product or service from any location through internet without
traveling from their respective home or workplace. Business associates can contact each other
from their locations. It reduces traffic and reduces air pollution and contributes to lessen global
warming.
6. Online Education
E-commerce enables the students’ community to learn and acquire knowledge through
online. Students can complete assignments and download information at any time. Discussions
with the tutors and with other students can take place with the help of internet. Students can
enroll themselves in any online educational institution and acquire global exposure at a lower
cost. Online education gives an opportunity for every student to participate in virtual classroom
without considering their status, gender and role differences in the society.

DRAWBACK OF E-COMMERCE
1. Huge technological cost
Since everything is online, it requires the use of creative resources and also a large
amount of investment. The costs have become very high due to an excessive 4G and 5G data
usage for online work. Also, a huge investment is required for using advanced and high-speed
internet connectivity. Advanced technology has given the business better productivity, posing an
advantage in the long run.
2. Security
This is one of the most common issues that many e-commerce businesses and customers
face. There are not many websites that are not capable of authenticating transactions nor have
those features. This may lead to numerous fraudulent activities and threaten the business. Also,
many businesses need to save various customer information like customer’s name, address,
contact number, email id, age, etc. This requires a huge investment to secure the data, so it is not
misused.
3. Employee cost
Employee cost is also a limitation of e-commerce business. For any business, whether
online or offline, having dedicated employees is crucial. You need a professional team to execute
different tasks and fulfill the organization’s objective. Whether your startup is small or big, you
need employees to yield great results. Therefore you will have to incur costs on hiring and
paying employees’ remuneration.
4. Huge advertising cost
In order to promote your business, a lot of money has to be spent advertising initially.
Advertising has the potential to increase your reach, and this way, you can reach maximum
people. However, advertising in several mediums can be expensive. Advertising costs can pose a
disadvantage if the business cannot make the deal convertible. Various advertising mediums
have varied costs, and many online advertising portals usually charge on a pay-per-click basis.
5. High shipping cost
Shipping can be a major challenge for most e-commerce businesses. When you are
delivering B2C orders, shipping can pose a major challenge and disadvantage. Often, shipping
cost involves a large part of your profit which may, in turn, decrease your overall margin.
Shipping cost, however, usually depends upon the size and weight of the product. It can cost
higher in B2C orders as compared to B2B orders.
6. Cost of packaging
Packaging, whether Primary, Secondary, or Tertiary, involves a lot of costs. The cost
depends upon the nature of the product. It may cost a lot if the package is bulky and large. Heavy
items may even involve a higher shipping cost, increasing the overall cost of transporting the
product. B2C transactions have a lower packaging cost since a few products are being
dispatched. However, B2B products or transactions involve the high cost of Packaging.
7. Warehousing cost
This is also a limitation of e-commerce. E-commerce sellers must have a physical
location or warehouse where they can store their products. This would help them manage their
operations from a designated location. This cost of warehousing has to be borne by the business
itself. The cost of storage will differ from location to location. It is always advisable to find a
warehouse that doesn’t involve a high inventory cost. This is the reason why a majority of
warehouses are located outside the city.
8. Marketing cost
Along with advertising costs, a business must incur additional costs in marketing its
product. Social media, emails, search engines, etc, are some ways through which you can market
your product easily and effectively. Google, Yahoo, and various other search engines offer
methods to effectively market your product and drive more traffic to your website.
9. Complicated E-Commerce policies
Every e-commerce portal has its policies that the seller must comply with. Companies
like Amazon, Flip kart, Paytm, Myntra, etc, have business policies. Sellers register on these
platforms, and often these platforms do not give them full rights to operate in the marketplace.
This limits their business, and if they violate these rules, their account may be permanently
suspended.
10. Sales flow
A diminished sales flow can pose a great disadvantage to the business and thus acts as
one of the limitations of E-Commerce business. It is extremely important to have traffic on your
website as it helps in driving sales. Also, if you’re listing is not done properly, your sales will
likely fall.
 MODULE II: E-COMMERCE MODELS

a) E-COMMERCE MODEL – INTRODUCTION AND CONCEPTS

Introduction
The first-ever online sale was in 1994 when a man sold a CD by the band Sting to his
friend through his website Net Market, an American retail platform. This is the first example of
a consumer buying a product from a business through the World Wide Web or e-commerce as
we commonly know it today. After that e-commerce has evolved to make products easier to
discover and purchase through online retailers and marketplaces. All freelancers, as well as small
and large businesses, have benefited from e-commerce which enables them to sell their goods
and services at a scale that was not possible with traditional offline retail.

The history of E-Commerce & Its Evolution

1960-1968- Invention & the Early Days

The development of the Electronic Data Interchange (EDI) in the 1960s paved the way
for electronic commerce. EDI revolutionized traditional ways of sending and receiving
documents and allowed a digital data transfer from one computer to another.
1969
CompuServe, the first significant e-commerce company, is established by Dr. John R.
Goltz and Jeffrey Wilkins by utilizing a dial-up connection. This is the first time e-commerce
was introduced.
1979
Michael Aldrich invented electronic shopping (he is also considered as founder or
inventor of e-commerce). This was done by connecting a transaction-processing computer with a
modified TV through a telephone connection. This was done for the transmission of secure data.
1982
The continued growth of technology, particularly in electronics, led to the launch of the
first ecommerce platforms by Boston Computer Exchange.
1992:
The 90s took the online business to the next level by introducing Book Stacks Unlimited
as an online bookstore by Charles M. Stack. It was one of the first online shopping sites created
at that time.
1994
Web browser tool introduced by Netscape Navigator by Marc Andreessen and Jim Clark.
It was used on the Windows platform.
1995
The year marked the iconic development in the history of eCommerce as Amazon and
eBay were launched. Amazon was started by Jeff Bezos, while Pierre Omidyar launched eBay.
1998
PayPal launched the first eCommerce payment system as a tool to make money transfers.
1999
Alibaba started its online shopping platform in 1999 with more than $25 million as
capital. Gradually it turned out to be an eCommerce giant.
2000
Google launched the first online advertising tool, Google AdWords, to help retailers
utilize the pay-per-click (PPC) context.
2005 to 2009
The four years saw the development of eCommerce in the following ways:
2005
Amazon Prime membership was launched by Amazon to help customers get free two-
day shipping at an annual fee. Etsy was launched in 2005 to enable small and medium-scale
retailers to sell goods online.
2005
Square, Inc., as an app-based service, is launched.
2005
Eddie Machaalani and Mitchell Harper launched Big Commerce as an online storefront
platform.
The years experienced massive development in the sphere of e-commerce, such as:
2011
Google launches its online wallet payment app.
2011
One of the earliest moves by Facebook to launch sponsored stories for advertisements.
2014
Apple launched Apple Pay, an online payment application.
2014
Jet.com was launched in 2014 as an online shopping portal.
2017
Instagram introduces shoppable tags- enabling people to sell directly from the social
media platform. And finally, Cyber Monday sales exceeded $6.5 billion.
2017 to present
Significant reforms that have taken place in the E-Commerce industry between these years are-
 Large retailers are pushed to sell online.
 Small businesses have seen a rise, with local sellers now operating from social media
platforms.
 Operational costs have lowered in the B2B sector.
 Parcel delivery costs have seen a significant increase with the growing e-Commerce
industry.
 Several e-Commerce marketplaces have emerged, enabling more sellers to sell online.
 Logistics has evolved with the introduction of automation tools and artificial intelligence.
 Social media has become a tool to increase sales and market brands. Sellers also use
social media to sell via channels like Facebook and Instagram.
 The buying habits of customers have significantly changed.
 The COVID-19 pandemic has impacted purchase decisions, and most users are moving to
e-Commerce for their purchases.
 Sellers are adopting an Omni channel selling approach where they want to provide users
with a consistent shopping experience across different media and channels.
CONCEPT OF E- COMMERCE
E-commerce, or electronic commerce, refers to the buying and selling of goods and
services over the internet. It involves the use of electronic platforms, such as websites, mobile
applications, and social media, to conduct transactions between businesses and consumers or
between businesses. E-commerce has revolutionized the way businesses operate and has created
new opportunities for entrepreneurs and consumers alike.
One of the primary benefits of e-commerce is that it offers a more convenient and
efficient way to conduct business. Consumers can browse and purchase products from the
comfort of their own homes, while businesses can reach a global audience without the need for a
physical storefront. E-commerce has also enabled businesses to streamline their operations by
automating many of the tasks involved in the sales process, such as inventory management, order
processing, and shipping.

b) E-COMMERCE - BUSINESS MODELS

E-commerce business models can generally be categorized into the following categories.
1) Business - to - Business (B2B)
2) Business - to - Consumer (B2C)
3) Consumer - to - Consumer (C2C)
4) Consumer - to - Business (C2B)
5) Business - to - Government (B2G)
6) Government - to - Business (G2B)
7) Government - to - Citizen (G2C)
1. Business - to – Business (B2B)
A website following the B2B business model sells its products to an intermediate buyer
who then sells the product to the final customer. As an example, a wholesaler places an order
from a company's website and after receiving the consignment, sells the end product to the final
customer who comes to buy the product at one of its retail outlets.
2. Business - to – Consumer (B2C)
A website following the B2C business model sells its products directly to a customer. A
customer can view the products shown on the website. The customer can choose a product and
order the same. The website will then send a notification to the business organization via email
and the organization will dispatch the product/goods to the customer.

3. Consumer - to - Consumer (C2C)

A website following the C2C business model helps consumers to sell their assets like
residential property, cars, motorcycles, etc., or rent a room by publishing their information on the
website. Website may or may not charge the consumer for its services. Another consumer may
opt to buy the product of the first customer by viewing the post/advertisement on the website.
4) Consumer - to - Business (C2B)
In this model, a consumer approaches a website showing multiple business organizations
for a particular service. The consumer places an estimate of amount he/she wants to spend for a
particular service. For example, the comparison of interest rates of personal loan/car loan
provided by various banks via websites. A business organization that fulfills the consumer's
requirement within the specified budget approaches the customer and provides its services.

5) Business - to - Government (B2G)

B2G model is a variant of B2B model. Such websites are used by governments to trade
and exchange information with various business organizations. Such websites are accredited by
the government and provide a medium to businesses to submit application forms to the
government.
6) Government - to - Business (G2B)
Governments use B2G model websites to approach business organizations. Such websites
support auctions, tenders, and application submission functionalities.

7) Government - to - Citizen (G2C)

Governments use G2C model websites to approach citizen in general. Such websites
support auctions of vehicles, machinery, or any other material. Such website also provides
services like registration for birth, marriage or death certificates. The main objective of G2C
websites is to reduce the average time for fulfilling citizen’s requests for various government
services.
c) E-COMMERCE SALES PRODUCT LIFE CYCLE (ESLC) MODEL
Every business including e-commerce goes through different stages of life cycle similar
to human life cycle. Each stage poses a different challenge and therefore, there is need to adopt
different approach or strategy to face that challenge. The different phases of e-commerce sales
life cycle (ESLC) are explained as follows:

1) Seed (Development) Stage

At this stage entrepreneur generates idea to set-up e-commerce business. This stage
involves the birth of new business. So there is no sales taking place. The e-commerce marketer
needs to design an attractive website and complete formalities for starting the e-commerce
business. At this stage e-commerce marketer may face challenge of market acceptance.
Therefore, e-commerce marketer needs to focus on niche market (small market with one product
category).
2) Start-up (Introductory) Stage
At this stage the e-commerce business begins to operate. Sales starts taking place at slow
pace. At this stage the e-marketer may face challenge of cash flow crisis because of the set-up
costs and unexpected expenses. Generally, at this stage, the firm may have break-even (no profit
and no loss) the marketer needs to focus on establishing a customer base and market presence.
3) Growth Stage: At this stage there may be a sharp increase in sales.
The e-marketer may start to gain profits. The e-marketer may cater to a larger market area
and sell new product categories. At this stage, e-marketer may require more funds and human
resources to support the increased sales volume. Therefore, marketer needs to raise finance from
right source as well as train human resources to handle sales activities. The marketer needs to
focus on maintaining and enhancing customer relations. They should undertake promotion
activities to gain competitive advantage. Customer feedback and review must be monitored
effectively.
4) Establishment (Maturity) Stage:
This is the highest level of sales growth and there is no further increase in the sales. In
other words, sales growth is stable at this stage. At this stage, e-marketer may face the challenge
of changing customer taste which may adversely affect the sales of the firm. The marketer needs
to focus on maintaining and enhancing customer loyalty.
5) Decline Stage
At this stage sale starts declining. The profit also starts falling. At this stage, e-marketer
may face the challenge of changing business environment such as competition, economic
condition, customer preferences etc. The marketer needs to search new business opportunities
and they should cut down the costs.
6) Exit Stage
When efforts to revitalize the sales and profit fail, the ecommerce marketer may sell
business to third party or close down the business.
 MODULE III: ELECTRONIC PAYMENT SYSTEMS

a) Electronic Payment System – Meaning of Electronic Payment, Traditional Payment

ELECTRONIC PAYMENT SYSTEM MEANING

Electronic Payment System allows people to make online payments for their purchases of
goods and services without the physical transfer of cash and cheques, irrespective of time and
location. The key components of this payment system are the payers and payees, financial
institutions, electronic devices, communication networks, payment gateways, and mobile
payment apps. As the global economy continues to evolve, the dependency on physical modes of
payment is gradually giving way to digital alternatives that offer speed, convenience, and
efficiency. These systems facilitate a diverse range of financial activities, from online purchases
and bill payments to person-to-person transfers.
An e-payment system is a way of making transactions or paying for goods and services
through an electronic medium, without the use of checks or cash. It's also called an electronic
payment system or online payment system. The electronic payment system has grown
increasingly over the last decades due to the growing spread of internetbased banking and
shopping. As the world advances more with technology development, we can see the rise of
electronic payment systems and payment processing devices. As this increase, improve, and
provide ever more secure online payment transactions the percentage of check and cash
transactions will decrease.
TRADITIONAL PAYMENT SYSTEM
A traditional payment system refers to a system that enables payment to be made between
a payer and a beneficiary, involving clearing, payment, or settlement services. It includes
operations such as credit card, debit card, smart card, and money transfer operations.
DEFINITION
According to “Danielle Reed” An electronic payment system enables payments for goods
or services without the use of cash or checks. Learn more about the definition of a n electronic
payment system, and also explore different types of electronic payments, including online and
mobile.
 DIFFERENCE BETWEEN TRADITIONAL PAYMENT SYSTEM AND E- PAYMENT
SYSTEM

S. No E-Payments Traditional Payments

1. Direct Transactions through Internet Cannot Transaction without human
Intervention
2. Use Technology for Communication Require humans to enable
communication and processes
3. Have advanced security measures in place Are risky to manage and prone to theft
4. Can be instantly withdrawn and deposited Can be instantly withdrawn and
online deposited online
5. Multiple options for payments Limited payment options
6. Low operational Costs High operational costs
7. Easy to track transaction status Less Transparency on status and tracking
8. Automated payment reconciliation Manual reconciliation with sizable
documentation

b) Types of Electronic Payment System – Smart Cards and Credit Cards Based Electronic
Payment Systems.
TYPES OF ELECTRONIC PAYMENT SYSTEM
1. Debit Card
A debit card is a card with unique credentials and is linked to the customer’s bank
account. A debit card deducts money from the user's bank account instantly at the time of the
transaction – which is the main distinction between a debit card and a credit card.
2. Credit Cards
Credit cards are the most popular form of payment for e-commerce transactions.
Enabling credit card payments on your website can enable customers to shop without having to
worry about paying upfront.
3. E-Wallet
The E-Wallet can be thought of as a prepaid account that enables users to store a variety
of debit cards, credit cards, and other payment methods in a safe environment without having to
enter their credentials each time they wish to make a purchase. The use of electronic wallets is
expanding every day. E-wallets enable customers to skip entering card information each time,
thus promoting a rapid checkout. PhonePe, PayTM, Mobikwik, Amazon Pay, etc are some of the
well-known digital or E-wallets in India.
4. Smart Card
In terms of appearance, debit/credit cards and smart cards are somewhat comparable.
Smart cards, however, contain an embedded microprocessor chip. It has the ability to store
money as well as a person's personal and professional information. Faster processing is possible
with smart cards at lower rates.
5. Online Banking
Customers can conveniently make purchases by paying with a bank account directly. The
user does not need a debit card to use this e-commerce payment system, but they still need to
register with their bank for a net banking facility. The customer only needs to provide their net
banking ID and PIN in order to complete a purchase.
6. Mobile Payment
Customers may easily and quickly use mobile payment to make purchases using their
smartphones. A user only needs to download a mobile payment app from the applications store.
They must then link their bank account to that app in order to add money to their wallet and
make purchases, as well as to make payments directly from their bank account.

SMART CARDS AND CREDIT CARDS BASED ELECTRONIC PAYMENT SYSTEMS.

Smart card is again similar to a credit card or a debit card in appearance, but it has a small
microprocessor chip embedded in it. It has the capacity to store a customer's work -related and/or
personal information. Smart cards are also used to store money and the amount gets deducted
after every transaction.
 Smart cards.

A smart card, chip card, or integrated circuit card (ICC) is any pocket-sized card with
embedded integrated circuits. Smart cards are made of plastic, generally polyvinyl chloride, but
sometimes polyethylene terephthalate based polyesters, acrylonitrile butadiene styrene or
polycarbonate.
Smart cards can provide identification, authentication, data storage and application
processing. Smart cards may provide strong security authentication for single sign-on (SSO)
within large organizations.
 DIFFERENCE BETWEEN SMART AND CREDIT CARD PAYMENT SYSTEMS
Parameters Debit Card Credit Card
Deducts money directly from your
Allows you to borrow funds to pay for
Definition saving's bank account or your
goods and services.
current account.
Credit extended to you by your card
Source of Your savings bank account or issuer. It gives you access to money you
funds current account. otherwise do not have (like a very short-
term loan).
Spending You can only spend how much you
Can spend more than what you have.
advantage have.
Who pays The credit card company pays the vendor
for the You pay for your purchase. for your purchase. You pay the credit card
purchase company.
You get a bill or statement each month
Bill There is no bill or statement with details of the transactions you have
made.
There is no payment that needs to
A bill needs to be paid each month since it
Payment be made since you are using your
is being borrowed.
own money.
Credit cards have multiple fees applicable.
Fees and Annual fees and PIN regeneration These include joining fees, annual fees,
charges fees are applicable. late payment fees, and bounced cheque
fees among others.
Interest is charged on the outstanding
Interest There is no interest that is charged. amount if it hasn't been paid by the due
date.
Limit to
You can access any amount up to
funds that You can use the card only up to the pre-
what is currently available in your
can be set credit limit on your card.
savings bank or current account.
accessed
Typically, the rewards you get are Get to enjoy cash back, air miles,
Rewards
minimal and reward points which can be redeemed.
Come with numerous dining, retail,
Privileges Doesn't come with many privileges. entertainment, and travel privileges
(depending on the type of card you have).
Most cards offer 100% lost liability
Lost card Protection from theft or loss of the
protection. So, you are not liable for any
liability card is minimal.
unauthorized transactions made.
 c) Security Requirements in Electronic Payment Systems.
SECURITY REQUIREMENTS IN ELECTRONIC PAYMENT SYSTEMS.
Security is an essential part of any transaction that takes place over the internet.
Customers will lose his/her faith in e-business if its security is compromised. Following are the
essential requirements for safe e-payments/transactions.
1. Confidentiality
Information should not be accessible to an unauthorized person. It should not be
intercepted during the transmission.
2. Integrity
Information should not be altered during its transmission over the network.
3. Availability
Information should be available wherever and whenever required within a time limit
specified.
4. Authenticity
There should be a mechanism to authenticate a user before giving him/her an access to
the required information.
5. Non-Reputability
It is the protection against the denial of order or denial of payment. Once a sender sends a
message, the sender should not be able to deny sending the message. Similarly, the recipient
of message should not be able to deny the receipt.
6. Encryption
Information should be encrypted and decrypted only by an authorized user.
7. Auditability
Data should be recorded in such a way that it can be audited for integrity requirements.
8. Encryption
It is a very effective and practical way to safeguard the data being transmitted over the
network. Sender of the information encrypts the data using a secret code and only the
specified receiver can decrypt the data using the same or a different secret code.
9. Digital Signature
Digital signature ensures the authenticity of the information. A digital signature is an e-
signature authenticated through encryption and password.
10. Security Certificates
Security certificate is a unique digital id used to verify the identity of an individual
website or user.
 MODULE IV: MANAGING THE E-ENTERPRISE

a) E-Enterprise – Introduction, Managing the E-Enterprise.

E-ENTERPRISE MEANING
An e-enterprise is the goal and the result of a successful e-management. To implement e-
management successfully, we should take e-technology as precondition and e-source as
foundation, in an operation mode of e-service, with the guarantee of e-speed, to achieve a goal of
e-organization.
CONCEPT OF E-ENTERPRISE
The internet revolutionized every facet of modern living, from entertainment to
communication. Similarly-business enterprise changed the way companies operate and interact
with consumers and clients. An e-business is a company operating via the internet. This business
can have off-line counterparts, or be a stand-alone enterprise consisting entirely of Internet
operations.
E-business enterprise can fill a number of roles, from the buying and selling of goods to
providing various services. In addition, e-business enterprise can also provide customers service
and support for real-world firms, and collaborate with business partners.
APPLICATION OF E-COMMERCE AND E-ENTERPRISE
E-commerce is a transaction of buying or selling online. Electronic commerce draws on
technology such as mobile commerce, electronic funds transfer, supply chain management,
internet marketing, online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems. Modern electronic commerce
typically uses the World Wide Web for at least one part of the transaction’s life cycle although it
may also use other technologies such as e-mail.
The applications of E-commerce are used in various business areas such as retail and
wholesale and manufacturing. The most common Ecommerce applications are as follows:
1. Online marketing and purchasing
Data collection about customer behavior, preferences, needs and buying patterns is
possible through Web and E-commerce. This helps marketing activities such as price fixation,
negotiation, product feature enhancement and relationship with the customer.
2. Retail and Wholesale
E-Commerce has a number of applications in retail and wholesale. E-retailing or on-line
retailing is the selling of goods from Business-to-Consumer through electronic catalog and
shopping cart model. Cybermall is a single Website that offers different products and services at
one Internet location. It attracts the customer and the seller into one virtual space through a Web
browser.
3. Finance
Financial companies are using E-commerce to a large extent. Customer can check the
balances of their savings and loan account, transfer money to their other account and pay their
bill through on-line banking or E-banking. Another application of E-commercer is on -line stock
trading. Many Websites provide access to news, charts, information about company profile and
analyst rating on the stocks.
4. Manufacturing
E-commerce is also used in the supply chain operation of a company. Some companies
form an electronic exchange by providing together buy and sell goods, trade market information
and run back office information such as inventory control. This speeds up the flow of raw
material and finished goods among the members of the business community. Various issues
related to the strategic and competitive issues limit the implementation of the business models.
Companies may not trust their competitors and may fear that they will loss trade secrets if they
participate in mass electronic exchanges.
5. Auctions
Customer-to-Customer E-commerce is direct selling of goods and services among
customers. It also includes electronic auctions that involve bidding. Bidding is a special type of
auction that allows prospective buyers to bid for an item. For example. Airline companies give
the customer an opportunity to quote the price for a seat on a specific route on the specified date
and time.
6. E-banking
Online banking or E-banking is an electronic payment system that enables customer of a
financial institution to conduct financial transactions on a website operated by the institution,
online banking is also referred as internet banking, e-banking, virtual banking and by other
terms.
7. Online Publishing
Electronic publishing (also referred to as epublishing or digital publishing) includes the
digital publication of ebooks, digital magazines, and the development of digital libraries and
catalogs.
8. Online Booking (ticket, seat etc.)
An Internet Booking (IBE) is an application which helps the travel and tourism industry
support reservation through the internet. It helps consumers to book flights, hotels, holiday
packages, insurance and other services online. This is a much needed application for the aviation
industry as it has become one of the fastest growing sales channels.
9. Distribution
E-commerce has grown in importance as companies have adopted pure-click and brick-
and-click distribution channel systems. The pure-click and brick-and-click channel system
adopted by companies are stated as follows:
Pure-click companies launch a website without any previous existence as a firm. Brick-
and-click companies are existing ones that have later added an online site for e-commerce
Click-to-brick are online retailers that later open physical locations to supplement their
online efforts.
Nowadays, modern technologies are used for delivery of ecommerce products such as
drone technology, droid technology.
10. Inventory Management
E-business facilitates inventory management. Should inventory reach a specific
threshold, a company’s inventory management system can be programmed to tell managers to
recorder that product. This helps companies avoid running out of products or blocking too much
capital in inventory.
For instance, Inventory management software is a computer-based system for tracking
inventory levels, orders, sales and deliveries. It can also be used in the manufacturing industry to
work order, bill of materials and other production-related documents. Companies use inventory
management software to avoid product overstock and outages. It is a tool for organizing
inventory data that before was generally stored in hard-copy form or in spreadsheets.
MANAGING THE E- ENTERPRISE
An-e-business of e-enterprise is a company operating via the Internet. This business can
have off-line counterparts, or be a stand-alone enterprise entirely of Internet operations. E-
Business can fill a number of roles, from the buying and selling of goods to providing various
services. In addition, e-business firms can also provide customer service and support for real-
world firms, and collaborate with business partners.

FEATURES OF E-ENTERPRISE
1. Flat Organization Structure
The nature of organization structure in e-enterprise is flat. There are limited levels of
management. There is limited number of workforce including managers, also the administration
and managent overheads are lower.
2. Global Reach
E-enterprise permits global reach. Due to internet and web technology , traditional
business organization definition has undergone a change where scope of the enterprise now
includes other company location, business partners, customers and vendors.
3. Information Driven
Due to Internet and web, the e-enterprise is information driven rather than paper driven
organization. E-business enterprises is open twenty four hours, and being an public domain;
managers, suppliers, customers and business partners can transact business anytime from
anywhere.
4. Competitive Advantage
Internet capabilities have given ebusiness enterprise a competitive advantage to increase
the business value. It has opened new channels of business as buying and selling can be done on
internet. It enables to reach new markets across the world anywhere due to communication
capabilities. It has empowered customers and suppliers through secured access to information to
act, wherever necessary. The cost of business operation has come down significantly due to the
elimination of paper-driven processes, faster communication and effective collaborative
working. The internet based transactions resulted in the reduction of administrative and
management overheads, reduction in inventory, quicker delivery of products.
5. Absence of Command Control
In e-enterprise, organizations are empowered by information and knowledge to perform various
activities. In e-enterprise, people work in a network environment or in a virtual mode. The
decision in e-enterprise is supported by information systems, application packages and decision-
support systems.
6. Process driven
E-business enterprise is more process driven, technology enabled and uses its own
information and knowledge to perform activities. In E-business enterprise, most of the activities
are electronic-based, use of digital technologies and work on databases, knowledge bases,
directories and document repositories. The business process are conducted through enterprise
software like ERP(Enterprise Recourse Planning), SCM(Supply chain management) and e-CRM
supported by data warehouse, decision support and knowledge management systems.
7. E-business Solutions
E-business enterprises are using Internet technology, network, and wireless technology
for improving the business performance measured in terms of cost, efficiency, competitiveness
and profitability. E-enterprise are using e-business solutions to reach faraway locations to deliver
product and services. The enterprise solutions like ERP, SCM and e-CRM run on Internet and
Wide Area Network (WAN).
8. Transformation
The paradigm shift to e-enterprise has brought four transformations, namely:
 Domestic business to global business.
 Industrial manufacturing economy to knowledge-based service
 Economy.
 Enterprise resource management to Enterprise network
 Management.
 Manual document driven business process to paperless automated,
 Electronically transacted business process.
9. Trading of goods and services
In E-enterprise, business is conducted electronically. Buying and selling is possible for a
wide range of products such books, readymade garments, jewellery, electronic items, white
goods and many such goods are bought and sold on internet. Also, a number of services such as
banking, insurance, healthcare, education, tourism industry are being managed through internet.
10. Management Information Systems
MIS for e-business is different compared to conventional MIS design of an organization.
The role of MIS in e-business organization is to deal with changes in global market and
enterprises. MIS produce more knowledge-based products. Knowledge management system is
normally recognized as a part of MIS. It is effectively used for strategic planning for survival and
growth, increase in profits, productivity.

CHALLENGES FOR E-ENTERPRISE:-

 The organization structure should be lean and flat
 Employees should allow to work from anywhere
 Re-engineer the processes to cut down process cycle time
 Make use of groupware technology on internet platform for faster
 Response processing.
 Enlarge the scope of organisation where customers, suppliers, and
 Others become a part of the organisation with the help of etechnology.
 Change the organisation behaviour to gain competitive advantage by
 Using e-technology to communicate, coordinate and collaborate with
 Customers, suppliers and business partners.
b) Comparison between Conventional Design and E-organization.

DISTINGUISH BETWEEN CONVENTIONAL ENTERPRISE V/S E-ENTERPRISE

S.No Conventional Organisation E-Enterprise
1 Meaning :- It is traditional form of It is a modern form of organisational
organizational structure wherein business structure wherein business activities
activities take place in a physical environment take place in a virtual environment.
2 Nature of Organisation Structure: - Tall Flat organisational structure is followed
organisational structure is followed in most of in most of the Eenterprise
the conventional Organisations.
3 Paper Work: - There is greater use of paper In e-enterprise, there is more emphasis
work in conventional business organisation. on electronic process, and there is
limited use of paper work.
4 Technology: - There is limited use of modern There is greater use of internet, wireless
technology. and networking technologies.
5 Marketing Research: - There is less There is greater emphasis on marketing
emphasis on marketing research and if research and it is mostly done online.
conducted, it is mostly done offline.
6 Business Process Systems :- Public business process systems for
Private business process systems for organisation’s use, the customers,
organisation’s use. The customers, suppliers, suppliers and business partners are
and business partners are not allowed to use allowed to use them.
them.
7 Payment :- The payment is done through The payment is done electronically
physical means such as cash, cheque, and to with the help of credit cards, debit
Lesser extent credit cards. cards, and other forms of digital
payment. COD is also allowed under
B2C.
8 EDI: - There is less emphasis on EDI. Lot of There is greater emphasis on electronic
Paper work is involved in placement of data interchange, which involves
orders, invoices, and other related activities. paperless trading
9 Investments: - Higher investments are Lower investments are required
required to set up conventional organisations. to set up E-Enterprise.
10 Promotion: - Conventional organisations E-enterprise may make more use of
may place emphasis on traditional forms of promotions.
promotions such as advertising, salesmanship,
and sales promotion.

E- ORGANISATION
An E-commerce organisation is the organisational structure with which a company
operates its online business. The basic parameters and requirements for this organisation are
usually defined within the framework of an e-commerce distribution strategy or the individual
channels strategies. Regardless of which of the three e-commerce pillars i.e online marketplaces,
third party e-retailers, direct sales + affiliate. Are actively being pursued by a company, certain
basic rules exist for ensuring high performance. According to our experience, the most important
of these is that a global, dedicated e-commerce organisational unit is set up for the successful
pursuit of online business.

E-Enterprises organisation flow chart

The two main aspects of this are as follows:-
Global
A feature of online commerce that is easily apparent but typically goes unconsidered
from an organisational perspective is that it essentially has no national boundaries. Particularly in
the case is simplified international trading within Europe, this means that end consumers,
presented with an ever-greater decline in shipping costs, perceive cross-border trade to be
completely normal. What is true for end consumers also applies to international purchasing
organisations, such as those from large online marketplace like Amazon. In the case of cross
border sourcing, the manufacture’s organisational structure is exploited by buyers, who purchase
from different country organisations (e.g Poland, Austria) depending on the destination country
(e.g. Germany). Against this backup, a global e-commerce organisational unit is needed to
control and coordinate online business in the interests of the company as a whole.
Dedicated
In many companies, online business accounts for a smaller share than brick-and-mortar
business, at least initially. Companies tend to approach the online segment as an additional
business area that can be accommodated for with the existing organisational Structure and
resources. Successful e-commerce development can only be achieved with a dedicated
organisational unit and corresponding resources. Existing sales force typically lack both the
necessary global reach and resources to develop the business quickly and sustainably. In
simplified terms, a global, dedicated relate to organisation of business in e-enterprise consists of
the three core areas.
E-Commerce Sales
Depending on the e-commerce distribution strategy, the roles of different channel-
specific key account managers can be combined. Sub-organisation may exists depending on the
size of the individual channels (e.g Amazon unit with vendor account management)
Digital Marketing
Central coordination of online marketing activities. This foundation may be modified
slightly for specific channels, but does not deviate significantly from a set of key tasks.
Product data management
As an interface between product management and marketing, this section is responsible
for the central provision and administration of product data required for various online channels.
BENEFITS OF ECOMMERCE TO ORGANIZATION
1. Reach & attract new customers
E business provides you an opportunity to reach more and new customers. In a
traditional market, retailers run a majority of their business with personal relations, branding &
references. While because of SEO, it is quite common for any e-commerce portal to get unique
visitors landing on their page just because they were searching for some specific product or
service online not because they were especially browsing that website.
2. Accessibility & easiness
Availability is another important benefit of having an e-commerce website. For many
people in the world, e-commerce becomes one of the most preferred ways of shopping as they
enjoy their shopping due to its easiness and convince. The best thing that caters to e-commerce is
buying options which are quick, user-friendly, and convenient. So if you are not present online
you will miss those potential customers who want to shop but can’t go to the market because of
their busy schedule or time constraint.
3. Keep an eye on Buyer’s Habit
E-commerce traders effortlessly keep an eye on the behavior of their buyer's habit and
customize their offerings to suit the buyer's requirement. They can retarget their customers
online with the same products or new products with the help of their past browsing history. By
satisfying their needs instantly, one can build a strong & long-term relationship with their
customers.
4. Sell across the globe
Online stores are not restricted to geographical boundaries like a physical store and so it
gives you a platform to sell your product & services across the globe and target your customers
without any location limit & restriction.
5. Platform for interaction & real-time feedback
E-commerce provides an opportunity to the retailers to get real-time feedback,
suggestions & testimonials of their customers. Positive reviews will create a strong brand image
of the brand and will build trust in more customers to buy that product while negative reviews
will help you to understand the areas of improvement and satisfy your customers in a better way.
6. Stays Open 24*7
One of the most important benefits of e-business is the availability of the products for
24*7/365. By this way, the seller can increase their sales by boosting numbers of orders.
However, this will be beneficial for the customer’s also, as they can purchase their products
whenever they need, no matter whether it is early morning or mid-night and they can make the
purchase from anywhere be it their office or their home.
7. Cost efficient
Last but not the least is its cost efficiency. Creating & managing an online store is much
more cost effective in comparison to a physical store as it optimizes the cost of land, rent, water,
electricity etc. An online store also eliminates the travel cost of a customer and provides ease full
shopping experience both to the customers as well as the seller.