Subject E Commerce

Saif ali
Saif.csit@mul.edu.pk
03014287277
What is Commerce?
 Commerce is a division of trade or production which
deals with the exchange of goods and services from
producer to final consumer.
 It comprises the trading of something of economic value
such as goods, services, information or money between
two or more entities.
 Commerce primarily express the fairly abstract notions
of buying and selling.
What is E-Commerce?
 E-commerce is the use of electronic communications
and digital information processing technology in
business transactions to create, transform, and redefine
relationships for value creation between or among
organizations, and between organizations and
individuals.
 E-commerce refers to aspects of online business
involving exchanges among customers, business
partners and vendors. For example, suppliers interact
with manufacturers, customers interact with sales
representatives and shipment providers interact with
distributors.
Advantages of E-Commerce?
 Increased Access:  Now, consumers can buy and get access
to goods all around the country even the world.  Consumers
can sit at home and get all their products and services without
even leaving the house.  Businesses can not have to worry
about pickup and the use of e-commerce has made it easier
for businesses to run their operation without the hassle of
going to their supplier. 
 Cost of doing business is reduced is minimized by e-
commerce.
Advantages
 Convenience: Businesses and consumers now don't have to go out
of their way to buy products and services.  Businesses who buy
overseas are unable to physically go to buy their services. 
Businesses can go to their supplier's website and order the products
they need. 
 Expansion: Before e-commerce, businesses were restricted to
either their states or to certain areas because it was too costly to set
up offices in different areas.  With the coming of e-commerce,
businesses have access to consumers and other business in all 50
states and even the entire world!
Some other advantages
Faster buying/selling procedure, as well as easy to
find products.
Buying/selling 24/7.
More reach to customers, there is no theoretical
geographic limitations.
Low operational costs and better quality of services.
No need of physical company set-ups.
Easy to start and manage a business.
Customers can easily select products from different
providers without moving around physically.
Disadvantages of E-commerce?
 Security: Biggest problem of ecommerce, is the issue
on security. As cash is exchanged on the web across
borders and continents, many unscrupulous individuals
are enticed to target this activity to perform illegal
means to earn money. Identity theft and hacking of
personal information have become one of the serious
problems in the internet today.
 Tax to the government: As business can be done in the
internet just as easily as clicking a button, paying the
appropriate tax can be easily is evaded. 
E-Commerce – Meaning
 The term electronic commerce or e-commerce refers to
any sort of business transaction that involves the transfer
of information through the internet. By definition it
covers a variety of business activities which use internet
as a platform for either information exchange or
monetary transaction or both at times.
 For example, the numbers of consumer brand retail sites
like Amazon(dot)com and Flipkart(dot)com which
normally provides information about products and also
allows monetary transactions to happen over the
internet.
Continue
 On the contrary there are the auctions sites like
Quickr(dot)com and Ebay(dot)com where the
information about certain listed products and services
are provided but the monetary transactions normally
happen physically.
 Apart from these two categories of e-commerce sites,
there are some sites which enable businesses to
exchange trading goods and also service between two or
more companies. All of these forms of internet based
business platforms are known as e-commerce.
Comparison between E-commerce and Traditional Commerce

Traditional
Face to Face
Printed & written documents
Telephone communication
Postal mail
Payment by Cash, check or CC
Ads: print med, radio, tv
Merchandize deliver immediately.
Customer takes merchandise home.
E-Commerce

No personal contact

Documents on the web.
Web pages personalized for a particular
customer.
E-mail or webmail communication.
Ads on web, radio, tv
Payment: credit card, direct withdrawal,
fund transfer (paypal).
Merchandise deliver home 2-5 days.
E-Commerce – Objectives:
 1. Development of Business-Relationship : The business
development can be done through the e-commerce being the
primary and the basic object. As their direct contact in between the
company and the consumer, their business relationship will be
enhanced. Hence the area of the market can be increased.
 2. Better-Customer Service:
 As it is done round the clock, the customer will always have online
help regarding the products. As all the information is furnished to
the customer, it becomes easy to him to choose the best product
among all other alternatives. As even the service can also be done
through the net immediately, the customer service will be
ballooned. By highlighting the customer service, the companies are
trying to subjugate a lion-share in the market.
Objective
3. Getting more Customers:
In these days it becomes the mandate of
the companies to double its customers, and
this can be done by rendering the value add
service and maintaining the quality. Hence,
it is also one of the primary objectives of
the companies which supply impetus for the
robust growth in sales and overall profit.
E-Commerce – Important
Features:
 Feature # 1. E-Commerce is Technology-Enabled:
 Traditional commerce is taking place since times
immemorial but E-commerce is result of integration of
digital technology with business processes and
commercial transactions. The technological foundations
of E-commerce are internet, WWW and various
protocols.
 Feature # 2. Technology Mediated:
 In E-commerce buyers and sellers meet in cyber space
rather than physical place. Hence E-commerce does not
involve face to face contact.
E-Commerce – Important
Features:
 Feature # 3. Universality:
 Buying and selling take place through websites in E-
Commerce. The websites can be accessed from anywhere
around the globe at any time therefore it possess the feature
of universality.
 Feature # 4. Intercommunication:
 E-commerce technology ensures two way communications
between buyer and seller. On one hand by using E-
commerce firms can communicate with customers through
E-commerce enabled websites. On the other end,
customers can also fill order forms, feedback forms and
can communicate with business operating firms.
E-Commerce – Important
Features:
 Feature # 5. Delivery of Information:
 E-commerce serves as the best channel of
communication. E-commerce technologies ensure
speedy delivery of information at very low cost and
considerably increase information density as well.
 Feature # 6. Electronic Completion of Business
Processes:
 By using E- commerce we can perform business
transactions like accounting and inventory through
computers at global level.
E-Commerce – Important
Features:
 Feature # 7. Virtual Communities:
 Virtual Communities are online communities created by
means such as chat rooms and specifically designed
sites like, where people can interact with each other
having common interest using the internet.
 Feature # 8. Inter-Disciplinary in Nature:
 Implementation of E-Commerce needs a lot of
knowledge of managerial, technological, social and
legal issues. Besides this, understanding of consumer
behaviour, marketing tools and financial aspects is as
crucial as designing interactive E- Commerce websites.
E-Commerce – Important
Features:
 Feature # 9. Customization:
 With the use of E-commerce technology, the world is
moving from mass-production to mass-customization.
Product customization ensures that goods are tailor
made as per the requirements and preferences of
customers.
 Like Dell Computers Website www(dot)dell(dot)com
enables the consumers to mention configuration of a
Computer and then the product is made available and
delivered as per the configuration ordered by the
customer.
Business Models
 Brick-and-Mortar Businesses: Businesses that
have only a physical presence.
 Click-and-Mortar Businesses: Businesses that
have both an online and an offline presence.
 Combined Businesses: Businesses that have both
physical presence and online presence.
 Store Front Model Businesses: Enhance brick-and
mortar business through web presence.
Types of E-commerce
 The major different types of e-commerce are:
 Business-to-Business(B2B)
 Business-to-Consumer (B2C)
 Business-to-Government (B2G)
 Consumer-to-Consumer (C2C)
 Mobile commerce (m-commerce)
What is B2B e-commerce?

B2B e-commerce is simply defined as e-

commerce between companies.
B2B E-commerce

 Logistics - transportation, warehousing and

distribution (e.g., Procter and Gamble).
Application service providers - deployment,
hosting and management of packaged
software from a central facility (e.g., Oracle
and Linkshare).
Outsourcing of functions in the process of e-
commerce, such as Web-hosting, security
and customer care solutions (e.g.,
outsourcing providers such as eShare,
NetSales, iXL Enterprises and Universal
Access).
B2B E-commerce

Auction solutions software for the operation and

maintenance of real-time auctions in the Internet
(e.g., Moai Technologies and OpenSite
Technologies).
Content management software for the
facilitation of Web site content management and
delivery (e.g., Interwoven and ProcureNet)
Web-based commerce enablers (e.g., Commerce
One, a browser-based, XMLenabled purchasing
automation software).
Examples of B2B E-Commerce
Importers.com
Alibaba.com
EC21.com
ECplaza.com
GlobalSources.com
TradeKey.com
Made-in-China.com
Busytrade.com
DIYtrade.com
TradeIndia.com
India-Mart.com
What is B2C e-commerce?
 Business-to-consumer e-commerce, or commerce
between companies and consumers, involves customers
gathering information; purchasing physical goods (i.e.,
tangibles such as books or consumer products) or
information goods (or goods of electronic material or
digitized content, such as software, or e-books); and, for
information goods, receiving products over an electronic
network.
B2C e-commerce
 B2C e-commerce reduces transactions costs
 model the cost of the product is reduced as we can
eliminate the middle men
 major thing in B2c model is customer care
Pre-Cautions of B2C E-commerce
Check for digital certificates of the site
and it hacker free.
Check for shipping price.
See the previous service going through
the reviews of the old customers
Purchasing with the appropriate cards.
Some of the examples of the B2C model are:

www.llbean.com
www.landsend.com
www.bestbuy.com
www.sony.com
www.dell.com
www.amazon.com
www.store.microsoft.com
What is B2G e-commerce?
 Business-to-government e-commerce or B2G is
generally defined as commerce between companies and
the public sector.
 It refers to the use of the Internet for public
procurement, licensing procedures, and other
government-related operations.
Examples of B2G E-commerce are:

 www.fcw.com
 www.washingtontechnology.com
 www.Gcn.com
 www.signalmag.com
 www.governmnmentexecutive.com
What is C2C e-commerce?
 Consumer-to-consumer e-commerce or C2C is simply
commerce between private individuals or consumers.
 This type of e-commerce is characterized by the growth
of electronic marketplaces and online auctions,
particularly in vertical industries where firms/businesses
can bid for what they want from among multiple
suppliers.
C2C e-commerce
 This type of e-commerce comes in at least three forms:
 auctions facilitated at a portal, such as eBay, which
allows online real-time bidding on items being sold in
the Web.
 peer-to-peer systems, such as the Napster model (a
protocol for sharing files between users used by chat
forums similar to IRC) and other file exchange and later
money exchange models.
 classified ads at portal sites such as Excite Classifieds
and eWanted (an interactive, online marketplace where
buyers and sellers can negotiate and which features
“Buyer Leads & Want Ads”).
Examples of C2C E-commerce are:

 www.ebay.com
 www.napster.com
What is m-commerce?

 M-commerce (mobile commerce) is the buying and

selling of goods and services through wireless
technology-i.e., handheld devices such as cellular
telephones and personal digital assistants (PDAs).
Applications of M-commerce are:

 Mobile Ticketing
 Information Services
 Mobile Banking