e-Commerce

Marketing in the Digital Age

commerce
Commerce undertakes wide range of activities that contribute to the continued growth of the nations economy. Commerce gathers and develops economic and demographic data for business and government decisionmaking; This diversity of activities is reflected in Commerces strategic goals. Helps consumers benefit from open and fair international trade; Issues patents and trademarks that support innovation; helps set industrial standards and performs cutting-edge scientific research; Forecasts the weather to improve public safety.

The most recent development in commerce is e-commerce.

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Basic Supply Chain of commerce

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e-commerce
e-commerce is A way of doing real-time business transactions via telecommunications networks or over computer networks (such as the Internet) through which transactions or terms of sale are performed electronically when the customer and the merchant are in different geographical places.

E-Commerce is the conducting of business over computer networks and through individual computers linked to the Word Wide Web. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage.

Strictly defined, eCommerce is the buying and selling of goods and services, and the transfer of funds, through digital communications.
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e-commerce
E-commerce can be divided into four main categories: B2B, B2C, C2B, and C2C. B2B (Business-to-Business) Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. B2C (Business-to-Consumer) Businesses selling to the general public typically through catalogs utilizing shopping cart software. C2B (Consumer-to-Business) A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. C2C (Consumer-to-Consumer) There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell.

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Features of e-commerce
The following features should be present in e-commerce

Dynamic Site for easy updates Content Managed Pages Express Checkout for returning customers User friendly Shopping Cart Product Detail Page with ability to have multiple images and detailed description of products Integrable with Online Credit Card Payment Gateways Ability to integrate for real time shipping quotes

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Why E-Commerce is Important

The Internet is dramatically changing the way goods and services are produced, delivered, sold and purchased. Internet technologies have the potential to empower small and medium size business enterprises (SMEs). The potential benefits of e-commerce for the developing world are immense. Any company can enter global markets where size and location have become rather irrelevant.

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Steps of e-commerce

The Plan: All the pre-starting details, including what wed like to sell and how to sell. We also talk about coming up with a plan to get people buying from us. The Setup: Actual preparation of new business & discuss the many parts needed for an online business, including a domain name and hosting. The Website: Internet equivalent of leasing and setting up a store. The Sale: Deals with the actual selling of your merchandise and starts before the customer ever buys a thing. The Backend: This is an often overlooked aspect of any new business and probably causes the most problems if not worked out in the beginning.

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Internet & web

Exchange information, content, agreements, and services among parties that are connected to through the Internet is the main theme of e-commerce. 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 log file User information Requested documents Enables the site to identify the user. Enables targeted advertising
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Web communication function

e-commerce workflow

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4Ps of e-Commerce

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Historical background
The meaning of electronic commerce has changed over the last 30 years introduced in the late 1970s.The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. Online shopping was invented in the UK in 1979 by Michael Aldrich and during the 1980s it was used extensively particularly by auto manufacturers such as Ford, Peugeot-Talbot, General Motors and Nissan. In the 1990s onwards, electronic commerce would additionally include enterprise resource planning systems (ERP), data mining and data warehousing & www introduced. By the end of 2000, a lot of European and American business companies offered their services through the World Wide Web(www). BTTBs decision to itself offer Internet services since 1999 has caused concerns among

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Growth of e-commerce in south-Asia

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Evolution of New Businesses

New businesses were created that were not feasible earlier.The new economy poses threats to old economy firms that do not wish to adapt. The transformation is still in process & the evolution continues.

Infrastructure Telecommunications, hardware, cable, ISP Supporting services AOL, browsers, payment and banking systems, directories, security of systems and transactions. Content Media, portals, exchanges (EBAY)

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Infrastructure: Components
Internet (https)
eCommerce Web App

Web Server Java

Wintel Servers App Server
Payment Gateway

Database

Payment Mgr

Adventures: Merchants

40% merchants using eCommerce services today

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Adventures: Applications

ADMISSIONS Applications (Grad and Undergrad) TRANSCRIPTS (REGISTRAR) Large Volume, Low $ WORLD CAMPUS Registration

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Adventures: Applications
STUDENT ACCOUNT and eBILL

Tuition payments Smaller Volume, Large Amounts Integrated into Student System

Id+ OFFICE Add funds to meal plans

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eCommerce Applications
Product
Best EC Traditional Niche

Digital Digital Physical Physical Digital

Business Process

Physical

Person

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eCommerce Services:
The most popular services of ecommerce are as follows: ePayment ePay estore Hosting Generalized Interface Web Services

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ePayment

ePayment API for Credit Card Processing: HTTPS post with XML HTTPS requests & response are secured using SSL

Merchant Administration Tools:

Credit Card Search Issuing Refunds Reporting

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Payment Processing: Components

Cardholde r/ Customer Cardholder Issuing Bank

Processor

Payment Gateway
Acquiring Bank

Settlement

Credit Card Associations

Merchant

Merchant Bank

ePAY

Virtual Credit Card Terminal:

Web Based Authorization Reporting Tool Automatic Settlement for Merchant Troubleshooting Tool

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eStore Hosting

Include Shopping Basics: Home/category page Product page Shopping cart Checkout page Order status Provide Merchant Admin Tools: Reporting Category(dept) & product Price Order processing inventory
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Settlement
Acquiring Bank

Merchant Bank

Merchant

Payment Gateway

Processor

Cardholder Issuing Bank

Cardholde r/ Customer

Generalized Interface Web Services

New service offering Integrates ti ePay tools ePayment web services: ePayment authorization deposit
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Putting it all together: Authorization

Merchant
Cardholde r/ Customer
Payment Gateway

Processor

Merchant
Payment Gateway

Cardholder Issuing Bank

Processor

Private Sector Investment

Helping governments to create enabling conditions for business. Generating business opportunities in ADB-financed public sector projects. Catalyzing private investments through direct financing, credit enhancements, and risk mitigation instruments.

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Business applications
Some common applications related to electronic commerce are the following:

Email Enterprise content management Instant messaging Newsgroups Online shopping and order tracking Online banking Online office suites Domestic and international payment systems Shopping cart software Teleconferencing Electronic tickets

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Online Banking
Many Bangladeshi companies currently distribute their images through the Internet to clients all over the world. There are 28 banks in bangladesh, mostly head quartered in Dhaka have their own web pages. There put ATM machines. Some banks also put CDM(Cash Deposit Machine). The banks offering online banking are: DBBL Dhaka Bank Ltd. Brac Bank Ltd. HSBC Stadard Chattard Ltd Markentile Bank Ltd

Copyright Atomic Dog Publishing, 2002

e-commerce through facebook

Facebook.com a company that less than a year ago looked like fools for not accepting Yahoos bid to purchase it has become the powerhouse of social media websites. The success of e-commerce is due to Facebook , the latest version of online socialization. First of all we have to create a facebook profile & then a Facebook application (or app for short) can be placed on a users site to the generic interface. Applications are popular because individual users can customize pages to their needs and desires. These small programs need to have viral attributes & can be shared with friends. Creating an application is the key and the hardest part & doesnt have to be expensive or intensive.

Facebook makes e-commerce very easy to get an app up on its site because it wants as many apps as possible. We can provide a full range of facebook application strategy, design, development and marketing for our business.
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e-commerce through facebook

For exampleone of the most interesting recent apps is the Zombies app where users bite their friends, who then also become zombies if, of course, they add the app to their page. Its fun, simple, viral and monetized by horror movie advertisements in the app interface. BlueNile.com has created the Blue Nile Wish List app, which keeps friends informed about what jewelry an individual would like to purchase (or have gifted!) from the site.

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Potential Applications of ecommerce

Mobile commerce Location-based commerce Blog marketing Target marketing Information brokering

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Security Threats to eCommerce

Any act or object that poses a danger to computer assets is known as a threat. Countermeasure is a procedure that recognizes, reduces, or eliminates a threat.

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Security Threats to eCommerce

Computer Security threats. Copyright and Intellectual Property threats. Security Policy and Integrated Security threats.
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Types of Security
Physical security includes tangible protection devices such as alarms and guards. Protection of assets using nonphysical means is called logical security.

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Security Policy includes

Authentication Access control Secrecy Data integrity Audit

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Dimensions of Authentication in eCommerce

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e-commerce solution
ecommerce is to enable every business to use the Internet to build rich customer experiences. It is a means of establishing a closer relationship with customers and direct process links with trading partners-anytime, anywhere, and on any device. It enables the company to import the order information directly to the carriers applications, thereby eliminating the need for manual entry.

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Advantages of e-commerce

Catalog flexibility and Online fast updating: Direct "link" capabilities to content information and visual displays already existing on other client web site. You can update your E-Catalog anytime, whether it's adding new products, or adjusting prices, without the expense of time as in a traditional print catalog. Shrinks the Competition Gap: Reduced marketing/advertising expenses, compete on equal footing with much bigger companies; easily compete on quality, price, and availability. A 24 Hour Store Reduced Sale Cycle: Reduce unnecessary phone calls and mailings. Lower Cost of Doing Business: Reduce inventory, employees, purchasing costs, order processing costs associated with faxing, phone calls, and data entry, and even eliminate physical stores. Reduce transaction costs. The direct cost-of-sale for an order taken from a web site is lower than through traditional means.

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Advantages of e-commerce
Eliminate Middlemen:

Sell directly to customers. Easier Business Administration: With right software, store inventory levels, shipping and receiving logs, and other business administration tasks can be automatically stored, categorized and updated in real-time, and accessed on demand. More Efficient Business Relationships: Better way to deal with dealers and suppliers. Workflow automation: Shipping, real time inventory accounting system which adjusts stock levels. Secured, automated registration verification & account entry. Customers will love it: Gives customers control of sales process. Builds loyalty. Because itReduct their sorting out time. Helps to make Better descisions Increased opportunities for buying alternative products.

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Limitations of e-commerce
Some disadvantages and constraints of e-commerce include the following. Time for delivery of physical products: Physical goods need to be delivered, which takes time and costs money. Physical product, supplier & delivery uncertainty: When you walk out of a shop with an item, it's yours. You have it; you know what it is, where it is and how it looks. In some respects e-commerce purchases are made on trust. A purchase is made on an expectation of buyer. It's pretty hard to knock on their door to complain or seek legal recourse if the product fails to fulfill the expectation. Limited and selected sensory information: The Internet provides us visual & auditory information. It does not allow full scope for our senses. When we pick up and inspect something, we choose what we look at and how we look at it. This is not the case on the Internet. If we were looking at buying a car on the Internet, we would see the pictures the seller had chosen for us to see but not the things we might look for if we were able to see it in person.
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Limitations of e-commerce
Returning goods: Returning goods online can be an area of difficulty. The uncertainties delivery of goods can be exacerbated with the following questions: Will the goods get back to their source? Who pays for the return postage? Will the refund be paid? Will I be left with nothing? How long will it take? Contrast this with the offline experience of returning goods to a shop. Privacy, security, payment, identity, contract: Many issues arise - privacy of information, security of that information and payment details, whether or not payment details (e.g. credit card details) will be misused.

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Future of e-commerce

Much more than a shopping cart is a comprehensive and powerful E-Commerce engine that can support the entire E-Commerce operations of small-to-mid sized companies. It includes never-before-seen innovations such as matrix pricing. It also simplifies the selling of products in bulk, perfect for manufacturers, wholesalers and distributors who need to sell supplies by length, area or volume. Until now, such features have been found only on high-end Enterprise E-Commerce engines that only 7% of businesses could afford. With its powerful databasedriven architecture,it makes businesses easy for all sizes to have a robust and powerful E-Commerce.

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How Will E-Commerce Reduce Poverty in Asia and the Pacific?

Economic growth is the engine of poverty reduction, trade can be enhanced using E-commerce. Promotes transparency and governance by giving more opportunities for competition. Benefits of inclusion in the global economy are as high as the risks of exclusion.

Copyright Atomic Dog Publishing, 2002