UNIT - 1 E- COMMERCE NOTES

 UNIT - 1

 E- COMMERCE NOTES 

Introduction to E-Commerce Concepts and significance of E-commerce

E-commerce, or electronic commerce is an emerging concept that describes the buying and selling or exchanging of products, services and information via computer network including the Internet. It has been defined broadly as the transacting of business over the Web. E-commerce will first pass through the phase of "electrification" of current trading practices, and only later evolve into something radically different from its physical counterpart. The emergence of electronic commerce started in the early 1970s with the earliest example electronic funds transfer (EFT), which allows organizations to transfer funds electronically. It helps to extend inter business transactions from financial institutions to other types of business and also provides transactions and information exchanges from suppliers to the end customers.

Driving forces of E-commerce

The Internet's massive growth during the past 10 years, which is completely a creation of market forces, will continue. E-commerce ties together the industrial sector, merchants, the service sector, and the content provider using text, multimedia, video, and other technologies. Customers are collectively demanding higher quality and better performance, including a customized way of producing delivering, and paying for goods and services.

E-Commerce Business models-key elements of a business model & categories

Electronic commerce Business Model has been divided into four distinct categories

1 B2B: Companies can conveniently and Quickly check their suppliers inventory or make instant purchases.

2. B2C: B2C is selling of goods and services to a customer and the transaction take place through Internet. In this model sellers sell products and services directly to customers B2C e-business models include virtual moles which are websites include virtual males which are websites that host many on line transactions. B2C e- commerce refers to the buying and selling of goods via the web retailers to web customer.

3. C2B: Also called supply chain management or "demand collection model, enables buyed to name their own prices, often binding for a specific good or service generating demand. The web site collect the demand bids and then offers the bids to the participating sellers.

4. C2C : C2C E-Commerce allows unknown, contrasted parties to sell goods and services to one another.

Mechanism Dynamics of World Wide Web and internet-evolution and features

During the 1990s, the Internet was opened for commercial use; it was also the period that users started to participate in World Wide Web, and the phenomenon of rapid personal computer (PCs) usage growth. Due to the rapid expansion of the WWW network; e-commerce software; and the peer business competitions, large number, of dot-corns and Internet starts-ups appeared.

Framework of E-Commerce

E-commerce is not just having a web site, but EC is more than that. There are no. of applications.

E-Commerce framework

Common business services infrastructure (security/authentication, electronic payment, directories/catalogs)

The messaging & information distribution infrastructure

Multimedia content & network publishing infrastructure

The information superhighway infrastructure (telecom, cable TV, wireless, Internet)

The EC management coordinates the applications, infrastructures, and pillars. Their implementation is dependent on people, public policy, technical standards and protocols, and other organizations. It also includes Internet marketing and advertisement. To execute these applications, it is necessary to have supporting information and organizational infrastructure.

Design and launch of E-commerce website - decisions regarding Selection of hardware and software

For Design and launch of Website there are many decisions not only software and hardware but also for payment mechanism, cost of ship integration using credit card / debit card, Order are delivered with delivery company and most important is payment methods like cash on delivery, payment by UPI's, debit card, credit card.

These points are very important-

1. Payment: This Company provides the different payment methods as credit card, debit card or cash on delivery.

2. Time: Orders are delivered within 24 hours.

3. Cost: Shipping is not free of cost

4. Integration: Ease Integration using credit and debit cards.

5. Scalability: Only in India.

6. Customization: Ease Customization, Registration to dealsandycu.com is free User pay only hilled when purchase a deal from Deals and You Company.

7. Challenges: Deals and you Company makes no warranty for the quality, safety, nord of the product or service marketed through Deals and You.

8. Platform: E-mail support and Phone support.

9. Hardware: servers used for online order for 24x7. Big companies uses clouds for fast access of data at any time any where.

10. Software: software must be easy for customers and must be customer friendly. Today most of the software's are used in mobile. So mobile apps must be easier and consumer friendly.

Some of the popular mobile apps are:

1. Amazon

2. Flipkart

3. Myntra

4. Jio Mart

Outsourcing VS in house Development of a website

Website can be maintained by two popular methods:

1. Outsourcing: This way website maintained by expert and professionals and all they need money to maintain the website. If the business type is small then this method is very good but in case of large volume of business then the other method will be better.

2. In house Development: In house development is used when all the professionals and experts worked for their own company in which they are working and provide services to all outside as a outsourcing company.

Unit-2 Lesson-1 Online Business Transactions

NOTES IN PDF

INCOME TAX BASIC CONCEPTS

The summary of Unit-1 E-commerce summarise from the content of Book of School of Open Learning. © School of Open Learning