E commerce

Basic requirements
✖ Internet:

• A collection of computers that speak a common

• language TCP/IP.

• The computers are all connected to each other.

• Information can pass from one computer to

• another through several other computers.

✖ World Wide Web (Web):

✖ A collection of multimedia hypertext documents that

reside on computers, and that can be accessed by other
computers on the Internet.
Web Servers

Computers that run server software.

A server waits for request to arrive from a user.

• The request is typically for a document.

The server sends (serves) the document to the requesting computer.

Sometimes the server allows a user to fill in information on a

document, and the then transfers the information to another
program or a server.
What is Commerce
Traditional commerce may be defined as:

The exchange or buying and selling of commodities; esp. the exchange

of
merchandise, on a large scale, between different places or
communities; extended trade or traffic.

‘Formulating commercial transactions at a site remote from the trading

partner and then using electronic communications to execute that
transaction.’

The three e-Commerce technologies are:

Electronic Markets

Electronic Data Interchange

Internet Commerce
Electronic markets

The use of information and communications technology to present a range of

offerings available in a market segment and hence enable:

•the purchaser to compare the prices (and other

attributes);

• make a purchase decision.

 The usual example of an electronic market is an airline booking system.

 There is the potential for new electronic markets to be created using Internet
technologies.
Electronic Data Interchange (EDI)

• EDI provides a standardised system for coding trade transactions so that

they can be communicated directly from one computer system to another.

• EDI removes the need for printed orders and invoices and avoids the
delays and errors implicit in paper handling.

• EDI is used by organisations that make a large number of regular

transactions. Examples are the large supermarket chains and the vehicle
assemblers which use EDI for transactions with their suppliers.
Internet commerce

Information and communications technologies can also be used to advertise

and make once-off sales of a wide range of goods and services.

This type of e-Commerce is typified by the commercial use of the Internet.

The Internet can,for example, be used for the purchase of books that are then
delivered by post or the booking of tickets that can be picked up by the
clients when they
arrive at the event.

It is to be noted that the Internet is not the only technology used for this type
of service and this is not the only use of the Internet in e-Commerce.
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REASONS FOR TRANSACTING ONLINE:-

1. NEW ECONOMY
Internet has created a new economy, which by its explosive growth and sheer size already changed our perception of traditional way of
doing business. Companies like Amazon and Ebay have successfully created domination on areas, where just few years ago
traditional brick-and-mortar companies were kings. However, in order to be successful on the net, you
don’t have to be a giant like them. Many small and mid
-size companies managed to build online businesses quite profitably. In fact, studies show small and mid-size companies will be the
main growth force of e-commerce in coming years.
2. INTERNET IS A PERFECT VENUE FOR BUSINESS.
In order to make a sale you need visitors to come to your shop. On the Internet, your shop could be only a click away from your
prospective customers. With proper marketing your Internet storefront can have more buyers than you ever can get in a brick and mortar
shop.
3. COMPANY’S IMAGE.
Whether you sell products or services online or not, in today’s world you have to have a
corporate presence on the Internet. Otherwise, as you must have noticed that people simply
don’t take your business seriously if you tell them that your company does not have a
website. A nice corporate site definitely increases the image of a company especially if it has great product or service related content to
go with.
4. PROVIDE BETTER CUSTOMER SUPPORT.
Customer accusation and retention is one of the key factors of business value chain. Thanks to Internet technology, business can
provide customer support more effectively. This means better customer satisfaction and increase of profitability.
5. MAKE INFORMATION MORE EASILY AVAILABLE TO CUSTOMERS.
Just a couple of years ago, companies used to require days to deliver products or services update information to their customers. Things
have changed since then. Today you can add or make any changes to your company and product related content virtually in a matter of
couple of hours, publish on your site and share with the whole world.
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6. CUT COSTS.
New technologies allow you to take virtually any part of your business online, that include supply chain management, billing, shipping,
procurement etc. Streamlining these business processes through online systems will allow companies to cut costs significantly in almost every
sphere of any business. For example: companies can reduce more than five percents of their maintenance, repair and operation costs by
adopting e-business solutions. This five percent savings can turn into 50% of a company’s net profit!
7. ABILITY TO DO BUSINESS 24 HOURS.
How else you can continue making sales, while your stuffs are sleeping! The biggest advantages of online shops are that they are open 24 hours
a day year round. Thanks to Internet off time, when your shop is generally closed, sales in some cases can be more than your regular business
hours!
8. LOW START UP COSTS.
Building a web site does not require big investments. There are many low cost tools available today, which can help you create sites from very
scratch.
9 YOU PHYSICAL PRESENCE COULD BE IN ANY LOCATION.
The World Wide Web allows you to do business from any part of the world. Your physical location, except for few cases is not that important
since you conduct your business online.
10. GO GLOBAL
Thanks to Internet you can instantly become a global player. In fact, you don’t have to invest
large sums of money to do this. There are literally hundreds of vertical and horizontal e-marketplaces available on the net.
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FUTURE AND PROSPECTS OF E-COMMERCE IN INDIA

1.Opportunity for retailers: A retailer can save his existence by linking his business with the
on-line distribution. By doing so, they can make available much additional information about
various things to the consumers, meet electronic orders and be in touch with the consumers
all the time. Therefore-Commerce is a good opportunity
2. Opportunity for whole sales/distributer: In the world of Ecommerce the existence of the
wholesalers is at the greatest risk because the producer can easily ignore them and sell their
goods to the retailers and the consumers. In such a situation those wholesalers can take
advantage of E-Commerce who are capable of establishing contractors with reputed
producers and linking their business with the on- line.
3.Opportunity for producers: Producers can take advantages of e-commerce by linking
themselves with on-line, by giving better information about their products to the other links in
the business chain and by a having a brand identity.

4. Opportunity for people: As more people are getting linked with E-commerce, the demand
for center providing internet facility or cyber cafe is also increasing. Hence, the people who
wish to take advantage of it can establish cyber and have their benefits.