Electronic Commerce

Electronic commerce encompasses the entire

online process of developing, marketing, selling, delivering, servicing, and paying for products and services. Basic categories of business and technology platforms for e-commerce marketplaces include: B2C, B2B, C2C. Many e-business enterprises are moving toward offering full-service B2C and B2B e-commerce portals supported by integrated customerfocused processes and internetworked supply chains.

Electronic commerce
B2C e-Commerce: Businesses typically sell

products and services to consumers at ecommerce websites that provide attractive Web pages, multimedia catalogs, interactive order processing, secure electronic payment systems, and online customer support. B2B e-Commerce: Business-to-business applications of e-commerce involve electronic catalog, exchange, and auction marketplaces that use Internet, intranet, and extranet websites and portals to unite buyers and sellers.

E-C0mmerce Applications
RETAIL AND WHOLE SALE : Electronic retailing (e-tailing )is the direct sale of

from business to consumer through electronic storefronts ,which are typically designed around familiar electronic catalogues and the shopping cart model.e.g. Wall Mart, Sears ,Amazon .com There are thousands of electronic web sites selling every thing from soup to nuts Cybermall :A single web site that offers many products and services at one location

B to C
An internet cyber mall pulls together multiple buyers

and sellers into one virtual place easily reachable through a Web browser Some giant Electronic retailers have given their customers the facility to order online and pick up the items from the store.

B to B
MANUFACTURING: One approach take by many manufacturers to raise

profitability and improve customer service is to move their supply chain operations on to the internet . Here they can form an Electronic Exchange to join with competitors and suppliers alike using computers and Web sites to buy and sell goods , trade market information and run back office operations such as inventory control)

B to B
With such an exchange , the business center is not a

physical building but a network based location where business interactions occur. This approach has greatly speeded up the movement of raw materials, and finished goods among all the members of the business community, thus reducing the amount of inventory that has to be maintained.

B to B
Private exchanges Owned and operated by a single

company. Public exchanges : are owned and operated by industry groups .

 MARKETING:: The nature of the web allows firms to

gather much more information about customer behavior and preferences Market segmentation : The identification of specific markets to target them with advertising messages

 Technology enabled relation ship management: The

use of detailed information about a customers behavior , preferences, needs and buying patterns , to set prices , negotiate terms , tailor promotions , add product features. And otherwise customize the entire relationship with the customer

 INVESTMENT AND FINANACE : On line stock trading On line banking : On line customers

1. can check balances of their savings

2. Checking and loan accounts 3. Transfer money among accounts 4. Can pay their bills ( Electronic bill payment)

 AUCTIONS 1. Forward auction : Bid a price for an article . Article

sold to the highest bidder 2. Reverse auction : Buyer invites prices from several suppliers for supply of an item . The lowest bidder gets the supply order

Electronic Payment systems

A key component in the e-business infrastructure Current e-commerce technology relies on user

identification and encryption to safeguard business transaction Authentication technologies are used to confirm the identity of the user Digital certificate :An attachment to the e-mail message or data embedded in a web page that verifies the Data of the sender. Certificate Authority: (CA) A trusted third party that issues a digital certificate

 2.Authentication systems: Determines if the person

he or she claims to be To prevent theft of credit card numbers and banking information, Secure Socket Protocol) SSL protocol is used 1.To secure the sensitive data 2.Authenticate the server 3.Determine the encryption Prevents sniffers from intercepting the data

Methods of payment
Electronic cash : An amount of money stored in the

computer and used as cash for e- commerce transaction. Providers :InternetCash, Mondex, Visa Cash, Veri Sign Electronic wallet :A computerized stored value that holds credit card information, electronic cash, owner identification and address information . This information is provided at the e-commerce check out counter

 Smart , credit , Charge , debit cards Credit card : Buy now pay latter Debit card : Buy now , Pay now

Smart card : A credit card sized device with an

embedded microchip to provide electronic memory and processing capabilities- very secure Charge card : No preset spending limits. The entire amount charged to the card at the end of the billing period. Do not involve lines of credit and do not accumulate interest charges

Technology Infrastructure for E- Commerce

Hardware: Web server hardware Web server software: for performing a number of

fundamental services including 1. Security and identification 2. Retrieving and sending Web Pages 3. Web site tracking 4. Web site development 5. Web page construction

 High speed connection to network Value added networks Virtual private networks

E-Commerce software
Catalogue management software :Software that

automates the process of creating a real time interactive catalogue and delivering customized content to users screen Product configuration software : Software used by a buyer to build a product they need on line. Electronic shopping cart : A model used by many ecommerce sites to track the items selected to purchase , allowing shoppers to view what is in their cart , add new items to it and remove items from it

 E- commerce transaction processing software

:Software that provides the basic connection between the participants in the e- economy, enabling communication between trading partners , regard less of their technical infrastructure Web site traffic data analysis software : Software that processes and analyzes data from the WEB log file to provide useful information to improve Web site performance

 Electronic store front software Cyber malls

Advantages of E- Commerce
Reduce transaction costs Speed flow of goods and information Improve level of customer service

Enable close coordination among manufacturers

suppliers and customers

Multistage model for Ecommerce

1. 2. 3.

4.
5.

Search and identification Selection and negotiation Purchasing products and services electronically Product and service delivery After Sales service

e-Commerce Success Marketplaces

One to Many

Many to Some Many to Many

Many to One Marketplaces Some to Many

e-Commerce Success Factors

Selection & Value

Performance & Service

Look & Feel Advertising & Incentives

Some Key Factors for Success in E-commerce

Personal Attention
Community Relationships Security & Reliability