E-COMMERCE

PRESENTED BY:
SNIGDHARANI PANDA
What Is Electronic
Commerce (Ecommerce)?
 Electronic commerce (ecommerce) refers to companies
and individuals that buy and sell goods and services over
the Internet.
 Ecommerce operates in different types of market
segments and can be conducted over computers,
tablets, smart phones, and other smart devices.
 Nearly every imaginable product and service is available
through ecommerce transactions, including books,
music, plane tickets, and financial services such as
stock investing and online banking. As such, it is
considered a very disruptive technology.
Advantages and Disadvantages of Ecommerce

Ecommerce offers consumers the following advantages:

 Convenience: Ecommerce can occur 24 hours a day, seven days a week. Although
ecommerce may take a lot of work, it is still possible to generate sales as you sleep
or earn revenue while you are away from your store.
 Increased selection: Many stores offer a wider array of products online. And many
stores that solely exist online may offer consumers exclusive inventory that is
unavailable elsewhere.
 Potentially lower start-up cost: Ecommerce companies may require a warehouse or
manufacturing site, but they usually don't need a physical storefront. The cost to
operate digitally is often less expensive than needing to pay rent, insurance,
building maintenance, and property taxes.
 International sales: As long as an ecommerce store can ship to the customer, an
ecommerce company can sell to anyone in the world and isn't limited by physical
geography.
 Easier to retarget customers: as customers browse a digital storefront, it is easier
to entice their attention towards placed advertisements, directed marketing
campaigns, or pop-ups specifically aimed at a purpose.
The disadvantages include:
 Limited customer service: If you shop online for a computer, you cannot
simply ask an employee to demonstrate a particular model's features in
person. And although some websites let you chat online with a staff
member, this is not a typical practice.
 Lack of instant gratification: When you buy an item online, you must wait
for it to be shipped to your home or office. However, e-tailers like Amazon
make the waiting game a little bit less painful by offering same-day
delivery as a premium option for select products.
 Inability to touch products: Online images do not necessarily convey the
whole story about an item, and so ecommerce purchases can be
unsatisfying when the products received do not match consumer
expectations. Case in point: an item of clothing may be made from
shoddier fabric than its online image indicates.
 Reliance on technology: If your website crashes, garners an
overwhelming amount of traffic, or must be temporarily taken down for
any reason, your business is effectively closed until the ecommerce
storefront is back.
 Higher competition: Although the low barrier to entry regarding low cost
is an advantage, this means other competitors can easily enter the
market.
Types of Ecommerce
Depending on the goods, services, and organization of an ecommerce
company, there are several popular business models.
 Business to Consumer (B2C)
B2C ecommerce companies sell directly to the product end-user. Instead
of distributing goods to an intermediary, a B2C company performs
transactions with the consumer that will ultimately use the good. This
type of business model may be used to sell products (i.e. your local
sporting goods store's website) or services (i.e. a lawncare mobile app to
reserve landscaping services). This is the most common business model
and is likely the concept most people think about when they hear
ecommerce.
 Business to Business (B2B)
Similar to B2C, an ecommerce business can directly sell goods to a user.
However, instead of being a consumer, that user may be another company.
B2B transactions are often entail larger quantities, greater specifications,
and longer lead times. The company placing the order may also have a
need to set recurring goods if the purchase is for recurring manufacturing
processes.
 Business to Government (B2G)
Some entities specialize as government contractors providing
goods or services to agencies or administrations. Similar to a B2B
relationship, the business produces items of value and remits
those items to an entity. B2G ecommerce companies must often
meet government requests for proposal requirements, solicit bids
for projects, and meet very specific product or service criteria. In
addition, there may be joint government endeavors to solicit a
single contract through a government-wide acquisition contract.
 Consumer to Consumer (C2C)
Established companies are the only entities that can sell things.
Ecommerce platforms such as digital marketplaces connect
consumers with other consumers who can list their own products
and execute their own sales. These C2C platforms may be auction-
style listings (i.e. eBay auctions) or may warrant further discussion
regarding the item or service being provided (i.e. Craigslist
postings). Enabled by technology, C2C ecommerce platforms
empower consumers to both buy and sell without the need of
companies.
 Consumer to Business (C2B)
Modern platforms have allowed consumers to more easily
engage with companies and offer their services, especially
related to short-term contracts, gigs, or freelance
opportunities. For example, consider listings on Upwork. A
consumer may solicit bids or interact with companies that need
particular jobs done. In this way, the ecommerce platform
connects businessess with freelancers to enable consumers
greater power to achieve pricing, scheduling, and employment
demands.
 Consumer to Government (C2G)
Less of a traditional ecommerce relationship, consumers can
interact with administrations, agencies, or governments
through C2G partnerships. These partnerships are often not in
the exchange of service but rather the transaction of
obligation. For example, you may pay your tuition to your
university online or remit property tax assessments to your
county assessor.
Example of Ecommerce
 Amazon : it is the world's largest online retailer and
continues to grow. As such, it is a huge disrupter in the
retail industry, forcing some major retailers to rethink
their strategies and shift their focus. The company
launched its business with an ecommerce-based model
of online sales and product delivery.
 Alibaba: Launching in 1999, The Chinese company
Alibaba is by far the world’s most successful e-
commerce company and retailer, hosting the largest
B2B (Alibaba.com), C2C (Taobao.com), and B2C (Tmall)
marketplaces across the globe. Their online profits have
surpassed all US retailers – including Walmart and
Amazon – combined since 2015.
 Walmart, eBay, Wayfair etc.
Benefits of e-commerce
 Convenience: Online commerce makes purchases simpler,
faster, and less time-consuming, allowing for 24-hour sales,
quick delivery, and easy returns.
 Personalization and customer experience: E-commerce
marketplaces can create rich user profiles that allow them
to personalize the products offered and make suggestions
for other products that they might find interesting. This
improves the customer experience by making shoppers feel
understood on a personal level, increasing the odds of brand
loyalty.
 Global marketplace: Customers from around the world can
easily shop e-commerce sites – companies are no longer
restricted by geography or physical barriers.
 Minimized expenses: Since brick and mortar is no longer
required, digital sellers can launch online stores with
minimal startup and operating costs.
Common Ecommerce Security
Issues
 Online businesses experienced 32.4% of all successful cyber
attacks in 2018. A serious business should, therefore, employ
solid-rock ecommerce security protocols and measures. It will
keep the business and customers free from attacks.
 E-Commerce security is the guideline that ensures safe
transactions through the internet. It consists of protocols that
safeguard people who engage in online selling and buying
goods and services. You need to gain your customers’ trust by
putting in place e-Commerce security basics. Such basics
include:
 Privacy
 Integrity
 Authentication
 Non-repudiation
 Privacy
Privacy includes preventing any activity that will lead to the sharing of
customers’ data with unauthorized third parties. Apart from the online
seller that a customer has chosen, no one else should access their
personal information and account details.
A breach of confidentiality occurs when sellers let others have access to
such information. An online business should put in place at least a
necessary minimum of anti-virus, firewall, encryption, and other data
protection. It will go a long way in protecting credit card and bank details
of clients.
 Integrity
Integrity is another crucial concept of eCommerce Security. It means
ensuring that any information that customers have shared online remains
unaltered. The principle states that the online business is utilizing the
customers’ information as given, without changing anything. Altering any
part of the data causes the buyer to lose confidence in the security and
integrity of the online enterprise.
 Authentication
The principle of authentication in eCommerce security requires
that both the seller and the buyer should be real. They should be
who they say they are. The business should prove that it is real,
deals with genuine items or services, and delivers what it
promises. The clients should also give their proof of identity to
make the seller feel secure about the online authentication and
identification. Among the standard solutions include client login
information and credit card PINs.
 Non-repudiation
Repudiation means denial. Therefore, non-repudiation is a legal
principle that instructs players not to deny their actions in a
transaction. The business and the buyer should follow through on
the transaction part that they initiated. Non-repudiation gives
eCommerce security another layer. It confirms that the
communication that occurred between the two players indeed
reached the recipients. Therefore, a party in that particular
transaction cannot deny a signature, email, or purchase.