E- Commerce

Lectureslides – I

© 2021 Er. Santosh Panth

 Introduction
• WE are living in e-century.
• The Internet and information and communications technologies (ICT) are central to
economic growth and productivity.
• Internet-based technologies and networks can increase productivity, decrease costs
and open new market opportunities.
E-commerce :
• The use of the Internet, the Web, and apps to transact business.
• More formally, digitally enabled commercial transactions between and among
organizations and individuals.

• E-Commerce or Electronics Commerce is a methodology of modern business which

addresses the need of business organizations, vendors and customers to reduce cost
and improve the quality of goods and services while increasing the speed of
delivery.
 Introduction
Electronic commerce or e-commerce refers to a wide range of online business
activities for products and services. It also pertains to “any form of business
transaction in which the parties interact electronically rather than by physical
exchanges or direct physical contact.”

E-commerce refers to paperless exchange of business information using following ways.

1. Electronic Data Exchange (EDI)
2. Electronic Mail (e-mail)
3. Electronic Bulletin Boards
4. Electronic Fund Transfer (EFT)
5. Other Network-based technologies
The concept of e-commerce is all about using the internet to do business better and
faster.
Introduction
Origin
Although e-commerce is not very old, it already has a tumultuous history. The history of e-
commerce can be usefully divided into three periods:

1995–2000, the period of invention;

2001–2006, the period of consolidation;

2007–present, a period of reinvention with social, mobile, and local expansion.

Introduction
Origin
Introduction
E- Commerce Trends
1. AR enhances the reality of online shopping.
2. There will be a growing volume of voice search.
3. AI helps shops learn about shoppers.
4. On-site personalization uses those insights to create individualized experiences.
5. Big data plays a big part in creating personalized experiences.
6. Chatbots improve the shopping experience.
7. Mobile shopping is still on the move.
8. More ways to pay.
9. Headless and API-driven ecommerce allow continued innovation..
10.Subscriptions keep customers coming back.
DIFFERENCE BETWEEN E-COMMERCE AND E-BUSINESS
E-Business encompasses executing all types of business transactions and services via
the web.
This includes procuring raw materials, online education, commercial transactions,
monetary transactions on the internet and more.

This indicates an online presence of all types of businesses and services.

DIFFERENCE BETWEEN E-COMMERCE AND E-BUSINESS
E-COMMERCE
Carrying out commercial
transactions online
Buying/ selling, monetary
transactions online
A sub-set of E-Business, it is also
a narrow concept
Limited transactions
Involves use of only one website
Mandatory use of internet
E-BUSINESS
Conducts all kinds of business activities and services
over the internet
Online presence of the business
A super-set of E-Commerce. Business transactions are
supported in E-Business
Transactions are not limited
Multiple websites and CRMs, ERPs that connect
different business processes are used
Internet, Intranet or Extranet are used
DIFFERENCE BETWEEN E-COMMERCE AND E-BUSINESS (CON.

It is more relevant in B2C, This is more appropriate to B2B or Business to

Business to customer context Business context
Also cover external or outward Covers internal as well as external business activities or
business processes processes
FEATURE OF E-COMMERCE
The unique features of e-commerce technology include:
1. Ubiquity:
e-Commerce is ubiquitous, It is available just about everywhere and at all times by using
internet and Wi-Fi hotspot such as airport, coffee cafe and hill station places.. Consumer can
connect it to the Internet at any time, including at their homes, their offices, on their video
game systems with an Internet connection and mobile phone devices. E-Commerce is
ubiquitous technology which is available everywhere Moreover, individuals who have cell
phones with data capabilities can access the Internet without a Wi-Fi connection.

1. Global reach:
The potential market size is roughly equal to the size of the online population of the world.
E-Commerce Technology seamlessly stretches across traditional cultural and national
boundaries and enables worldwide access to the client. E-Commerce website has ability to
translate the multilingual websites as well as allow the access to visitors all over the world,
purchase products and make business interactions
FEATURE OF E-COMMERCE

3. Universal standards:
The technical standards of the Internet are shared by all of the nations in the world. The
whole online tradition are growing and expanding their features in the world. To
development any kind of business need Internet and communication application which
make the business relationship more lovingly and attractive for secure business and
successful business.

4. Richness:
Users can access and utilize text messages and visual and audio components to send and
receive information. An individual may see information richness on a company's blog if a
post contains a video related to a product and hyperlinks that allow him to look at or
purchase the product and send information about the post via text message or email.
FEATURE OF E-COMMERCE

5. Interactivity:
E-commerce technologies allow two-way communication between the merchant and the
consumer. As a result, e-Commerce technologies can adjust to each individual’s experience.
For example, while shopping online, an individual is able to view different angles of some
items, add products into a virtual shopping cart, checkout by inputting his payment
information and then submit the order.

6. Personalization:
Technologies within e-Commerce allow for the personalization and customization of
marketing messages that groups or individuals receive. An example of personalization
includes product recommendations based on a user's search history on a Web site that
allows individuals to create an account.
FEATURE OF E-COMMERCE

5. Interactivity:
E-commerce technologies allow two-way communication between the merchant and the
consumer. As a result, e-Commerce technologies can adjust to each individual’s experience.
For example, while shopping online, an individual is able to view different angles of some
items, add products into a virtual shopping cart, checkout by inputting his payment
information and then submit the order.

6. Personalization:
Technologies within e-Commerce allow for the personalization and customization of
marketing messages that groups or individuals receive. An example of personalization
includes product recommendations based on a user's search history on a Web site that
allows individuals to create an account.
FEATURE OF E-COMMERCE

7. User-Generated Content:
Social networks use e-Commerce technologies to allow members, the general public, to
share content with the worldwide community. Consumers with accounts can share personal
and commercial information to promote a product or service
E-COMMERCE FRAMEWORK
The framework for e-Commerce consists of three parts as shown in below figure.
 E-COMMERCE FRAMEWORK

1. The first part consists of a variety of electronic commerce applications including

both inter- and intra-organizational and electronic market examples such as Supply
Chain Management, Video-on-Demand, Procurement and purchasing, On-line
marketing and advertising, Home shopping etc.

2. The second part of the building blocks of the infrastructure consists of:
➢ Common business services, for facilitating the buying and selling process.
➢ Messaging and information distribution, as a means of sending and retrieving
information ( ex-EDI, e-mail, P2P file transfer)
➢ Multi-media content and network publishing, for creating a product and a means
to communicate about it.
➢ Information Superhighway infrastructure consisting of telecommunication, cable
operator, ISPs , Wireless technologies and Internet.
 E-COMMERCE FRAMEWORK

3. The third part consists of the public policy and technical standards necessary to
support the applications and the infrastructure.

➢ Public policies govern issues like universal access, privacy, and information pricing.
The public policy infrastructure affects not only the specific business but also direct
and indirect competitors. It should take into consideration of:
▪ Cost of accessing information
▪ Regulation to protect consumers from fraud and protect their right to
privacy.
▪ Policies of global information traffic to detect information pirating and
obscene sites.
➢ Technical Standards governs issues like technology for communication and as
well as for Internet
TYPES OF E-COMMERCE

Although there are many different ways to categorize e-business models, they can
be broadlycategorized as:
✓ E-business model based on the relationship of transaction parties and
✓ E-business model based on the relationship of transaction types

Model based on the relationship of

transaction parties
1. business-to-consumer(B2C)
2. business-to-business(B2B)
3. consumer-to-consumer(C2C)
4. consumer-to-Business(C2B)
 TYPES OF E-COMMERCE
How does B2C work?
BUSINESS-TO-CONSUMER (B2C)
• Sells products or services directly to consumers. • Customer identifies a need
• Application • Searches for the product or services
✓ retail sales to satisfy the need
✓ online airline ticket purchasing • Selects a vendor
• Customer registers
✓ online share purchasing • Customer negotiates a price and buys
✓ online hotel rooms booking products
• Merchant processes the order
Examples: amazon.com, eDiets.com • Credit card processing
• Shipment and delivery
• Customer receives the product or
service
• Gets after sales service and
warranty claims
 TYPES OF E-COMMERCE

CONSUMER-TO-CONSUMER (C2C)
• It facilitates the online transaction of goods or services between two peoples.
• Consumers sell directly to other consumers.
• It includes Selling of personal services or expertise.
Example: ebay.com, hamrobazar.com

How does C2C work?

• Purchasing anything online from another person via an ad posting on an electronic
board or an online auction, instead of a business makes you a participant of
consumer to consumer E-Commerce. By far, the most popular form of consumer-to-
consumer E-Commerce is in the form of online auctions, through the mammoth eBay
auction site, where anyone can put goods online for sale to the highest bidder.
 TYPES OF E-COMMERCE
CONSUMER-TO-BUSINESS (C2B)
• Consumers fix price on their own, which businesses accept or decline
• This mechanism is also known as demand collection system
• Example: Priceline.com

How does C2B work?

• It enables buyers to name their own price, often binding, for a specific good or
services generating their demand.
• A consumer posts his project with a set of budget online, and often within hours
companies review the customers’ requirements and bid for the project.
• Then the customer will review the bids and selects the company that will complete
the project.
 TYPES OF E-COMMERCE

BUSINESS-TO-BUSINESS (B2B)

• Sells products or services to other businesses or bring multiple buyers and sellers
together in a central marketplace.

• Example: SHOP2gether.com,MetalSite.com, dell.com

TYPES OF E-COMMERCE

E-COMMERCE BASED ON TRANSACTION TYPES

1. Brokerage
2. Aggregator
3. Info-mediary
4. Community
TYPES OF E-COMMERCE

BROKERAGE MODEL
• They bring buyers and sellers together and facilitate transactions.
• Brokers are market-makers: they bring buyers and sellers together and facilitate
transactions. Brokers play a frequent role in business-to-business (B2B), business-
to-consumer (B2C), or consumer-to-consumer (C2C) markets. Usually a broker
charges a fee or commission for each transaction it enables.
• The price-discovery mechanism is its key-principle
• Auction and exchange are the mode of transaction
TYPES OF E-COMMERCE

AGGREGATOR MODEL
• Based on the e-market place, the aggregator model bypasses distributors so that
the buyers and sellers come together.
• They are involved in the overall process of selection, organization, matching the
buyer's requirement with that of the available goods, fulfillments of orders and
enable the customer to create a value about the sellers.
TYPES OF E-COMMERCE

INFO MEDIARY MODEL

• They helps to collect, manage ,and maximize the value of information about
consumers and Business.
• Examples: NYTimes.com , Gomez

• Data about consumers and their consumption habits are valuable, especially when
that information is carefully analyzed and used to target marketing campaigns.
Independently collected data about
TYPES OF E-COMMERCE

COMMUNITY MODEL

• Make group of people come on-line to serve their common interest and needs,
exchange information, share interest, trade goods and service, entertain and seek
help.

• The viability of the community model is based on user loyalty. Users have a high
investment in both time and emotion. Revenue can be based on the sale of ancillary
products and services or voluntary contributions; or revenue may be tied to
contextual advertising and subscriptions for premium services.

• The Internet is inherently suited to community business models and today this is
one of the more fertile areas of development, as seen in rise of social networking.
PURE VS. PARTIAL COMMERCE

• Traditional Commerce also known as Brick-and-mortar where selling physical

products by means of physical agents
• Partial E-Commerce also known as Click-and-mortar where organizations conduct e-
commerce activities, but do their primary business in the physical world.
• Pure E-Commerce where organizations sell products or services only online
• Electronic commerce can take several forms depending on the degree of digitization
(the transformation from physical to digital) involved. The degree of digitization
can relate to:
– the product (service) sold,
– the process,
– the delivery agent (or intermediary).
 M-COMMERCE

• Mobile Commerce is any transaction, involving the transfer of ownership or rights to

use goods and services, which is initiated and/or completed by using mobile access to
computer-mediated networks with the help of an electronic device.

• M-commerce (mobile commerce) is the buying and selling of goods and services
through wireless handheld devices such as cellular telephone and personal digital
assistants (PDAs). Known as next- generation e-commerce, m-commerce enables
users to access the Internet without needing to find a place to plug in.

• “Mobile Business”, signifies an “anytime and anywhere access” to business processes

managed by computer-mediated networks.
M-COMMERCE
Advantage of M-Commerce
▪ Mobility
▪ Broad reach
▪ Ubiquity
▪ Conveniences
▪ Instant connectivity
▪ Personalization
Limitations of M-Commerce
• Usability Problem
1. small size of mobile devices (screens,
keyboards, etc)
2. limited storage capacity of devices
3. hard to browse sites
• Technical Limitations
1. insufficient bandwidth
2. transmission and power consumption
limitations
– poor reception in tunnels and certain
buildings
– weather, and terrain problems and
distance-limited connections
U- COMMERCE
• U-commerce extends traditional commerce to a world of ubiquitous networks and
universal devices, a world in which users can access networks at any time from
any place, using a range of devices to invoke unique and personalized services.

• Specifically, four constructs are discussed that form the fundamental dimensions
of u-commerce: ubiquity, uniqueness, universality, and unison.
• It is proposed that future developments of information systems will be framed by
these constructs.
CHALLENGE IN E- COMMERCE

25 Major Challenges E-commerce Businesses in Nepal are Facing

https://lakshmanbasnet.com/nepal/ecommerce-business-challenges/
STATUS OF E- COMMERCE IN NEPAL
• Online E-Commerce Activities is mainly concentrated on Kathmandu
Valley and some major cities.

• However with the increase of internet penetration the number of mobile

users are increasing in rural areas and so is online activities.

• Today there are many E-Commerce Websites that are providing e-

commerce in Nepal along with delivery service
 STATUS OF E- COMMERCE IN NEPAL
• In Nepal, online shopping sites like Daraz, Hamrobazar, SastoDeal and
many other sites have increased their business during the pandemic and it
seems to be increasing even right now.

• After the beginning of pandemic, 70 percent of total transactions have

been online by means of E-Banking, Khalti and E-Sewa.

• Online booking of vehicles through Pathau has been greater than before
compared to people.

• Hamrobazar Online classified has seen 40 percent increase in overall

traffic since the pandemic and the case is similar for other online
shopping sites as well.

• People are slowly reverting to going local but in the online platform.
OVERVIEW OF ELECTRONIC TRANSACTION ACT OF NEPAL

Objectives of the Electronic Transaction Act 2063

1.To make legal provision for authentication and regulation of electronic data.
2.To make a reliable date generation, communication, and transmission.
3.To make a secured and authentic means of electronic communication.
4. To regulate all the relating matters of electronic transactions.

Scopes of the Electronic Transaction Act 2063

1.Creation and use of digital signature
2.Control cyber/computer-related crimes.
3.Protection of intellectual property.
4.Protection of confidentiality.
5.Regulations of an electronic transaction by establishing regulating bodies –
such as
– Office of Certificate Control (OCC)
– Certificate Agencies (CA)
– Subscribers
OVERVIEW OF ELECTRONIC TRANSACTION ACT OF NEPAL

Major provisions of the Electronic Transaction Act 2063

1. It has the provision relating to electronic records and digital signature.
2. It has the provision relating to dispatch, receive an acknowledgment of electronic
records.
3. It has the provision of few regulating bodies and their functions, rights, and duties such
as –
– Office of Certificate Control (OCC)
– Certification Agencies (CA)
– Subscriber
4. It has the provision relating the use of digital signature and certificate.
5. It has the provision relating to government use of the digital signature.
6. It has a provision relating to the computer network and network services providers.
7. It has the provision relating to computer-related crimes and punishments.
 OVERVIEW OF ELECTRONIC TRANSACTION ACT OF NEPAL

8. Provision of IT tribunal is defined as the first jurisdictional and appellate

jurisdiction. IT tribunal (सूचना प्रविधि न्यायाधिकरण )
– First Jurisdictional (पहिलो क्षेत्राधिकार )
– Appellate Jurisdictional (परु ािेदकीय क्षेत्राधिकार )
9. It defines a few documents which this act is not applicable for
– All the negotiable instrument defined by the “Negotiable Instrument Act 2034”
– All the documents related to the ownership of properties (dhanipurja, laalpurja
ect).
– Any documents which are used as a primary document in the court process
OVERVIEW OF ELECTRONIC TRANSACTION ACT OF NEPAL

New e-commerce law in Nepal:

Here are 9 key provisions
https://english.onlinekhabar.com/new-e-commerce-law-in-nepal-key-provisions.html

Thank you !