CSE- 409

E-Commerce & Web Engineering

Golam Mahmud
Lecturer, Dept. of CSE, DIU
How we define E-Commerce?

E-Commerce: Electronic Commerce or EC is the buying and selling of

goods and services, or the transmitting of funds or data, over an
electronic network, primarily the internet.

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.
Paperless exchange of business information:

Ecommerce refers to the paperless exchange of business information using the following
ways :−
1. Electronic Data Exchange (EDI):
▪ EDI is the electronic interchange of business information using a standardized format ;
a process which allows one company to send information to another company
electronically rather than with paper.
▪ Many business documents can be exchanged using EDI, but the two most common
are purchase orders and invoices.
▪ Most companies create invoices using a computer system, print a paper copy of the
invoice and mail it to the customer.
2. Electronic Mail (e-mail):
▪ E-mail is a way to converse privately with one or more people over the Internet;
electronic bulletin boards are public.
3. Electronic Bulletin Boards:
▪ It is also known as message boards or as computer forums are online
communication systems where one can share, request, or discuss information on
just about any subject.
4. Electronic Fund Transfer (EFT):
▪ EFT is the electronic transfer of money from one bank account to another, either
within a single financial institution or across multiple institutions, via computer-
based systems, without the direct intervention of bank staff.
▪ Direct deposit payroll moves money from your bank account into store's banking
account. Both of these transactions are examples of EFT, and so is online money
transfer.
5. Other Network-based technologies
Types of E-Commerce:
E-commerce business models can generally be categorized into the following
categories.
▪ Business - to - Business (B2B)
▪ Business - to - Consumer (B2C)
▪ Consumer - to - Consumer (C2C)
▪ Consumer - to - Business (C2B)
▪ Business - to - Government (B2G)
▪ Government - to - Business (G2B)
▪ Government - to - Citizen (G2C)
▪ 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.

▪ 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.
▪ 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.

▪ 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.
▪ 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.

▪ Government - to - Business (G2B):

Governments use B2G model websites to approach business organizations. Such
websites support auctions, tenders, and application submission functionalities.

▪ Government - to - Citizen (G2C):

Governments use G2C model websites to approach citizen in general. Such website
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.
Difference between Traditional Commerce and E-Commerce:

Traditional Commerce E-Commerce

Heavy dependency on information Information sharing is made easy via
exchange from person to person. electronic communication channels
making little dependency on person to
person information exchange.
Communication/ transaction are done Communication or transaction can be
in synchronous way. done in asynchronous way.
It is difficult to establish and maintain A uniform strategy can be easily
standard practices in traditional established and maintain in e-
commerce. commerce.
Communications of business In e-Commerce or Electronic Market,
depends upon individual skills. there is no human intervention.
No uniform platform for information E-Commerce provides a universal
sharing as it depends heavily on platform to support commercial /
personal communication. business activities across the globe
Advantages of E-Commerce:
1. A Larger Market
2. Customer Insights Through Tracking And Analytics
3. Fast Response To Consumer Trends And Market Demand
4. Lower Cost
5. More Opportunities To "Sell"
6. Personalized Messaging
7. Increased Sales With Instant Gratification
8. Ability to Scale Up (Or Down) Quickly And Unlimited "Shelf Space"

Disadvantages of E-Commerce:
1. Lack Of Personal Touch
2. Lack Of Tactile Experience
3. Price And Product Comparison
4. Need For Internet Access
5. Credit Card Fraud
6. IT Security Issues
Thank You!