E - commerce m com
E Commerce
M Com Part One
Sem II
1
Syllabus - Modules
I. Introduction to e commerce –
evolution and models
II. World wide web and e enterprise
III. E marketing and electronic payment
system
IV. Legal and regulatory environment
and security issues of e commerce.
2
Introduction to E Commerce
Evolution and Models
3
Introduction.
•
•
•
•
•
B2B
B2C
B2G
C2B
C2C
4
EVOLUTION/HISTORY
• Conception stage (1960 - 1980)
• Introductory stage (1990s)
• Growth stage (2000 onwards)
5
Conception stage (1960 - 1980)
• Electronic Data Interchange - Electronic Data format
for sending info about cargo between Du Pont and
Chemical Leahman.
• Birth of Internet - 1969 – ARPANET to create network
that would allow researchers to communicate.
• Invention of Online Shopping – 1979 – Aldrich
connected television set to transaction processing
computer with a telephone line and called it
teleshopping.
• Introduction of Minitel – 1982 - online ordering,
online banking, travel reservations etc.
6
Introductory stage (1990s)
• Creation of W.W.W – HTML introduced
that supports links to other
documents
• Net Browser – Netscape launched
Navigator frst web browser
• First ever online order for Pizza Hut 1994
• Birth of C2C - eBay
• First ever sale by Amazon - 1995
• Introduction of Paypal – payments
7
Growth stage (2000 onwards)
• eBay acquires Paypal (2002)
• First yearly proft by Amazon (2003)
• Online purchases through mobile
phones (2008)
8
E commerce in India
• Phase I (19996 - 2005)
– 1995 dial up internet
– Online Matrimonial -1996
– Online Recruitment - 1997
• Phase II (2006 till date)
– Low cost carrier in Indian Aviation Sector fred up
Online Reservation
– Online retail 2007
– Group buying – venture capital fund into markets
– Social Networking
9
Main Activities of E
Commerce
1. Information sharing
2. Registration
3. Order Placement and Processing
4. Processing of payment
5. Shipment
6. Delivery
7. Service and support
8. Feedback.
9. Customers reviews
10.Advertising and Sales Promotion
10
Functions of E Commerce.
1. Registrations
2. Information search
3. EDI
4. Negotiations
5. Orders
6. Logistics
7. Payment
8. After sales activities
9. Promotions of products
10.Consumer research
11
Scope of e commerce
• Major applications
– Electronic markets
– EDI
– Internet commerce
12
Benefts of E Commerce
• Advantages to e marketers
– Global markets
– Audience sizing
– Lower investments
– Lower operating cost
– Improvement in productivity
– Customer relationship
– Benefts to the govt agencies.
13
• Advantages to customers
– Convenience in shopping
– Anytime shopping
– Lower prices
– Loyalty Incentives
14
Challenges of E Commerce
•
•
•
•
•
•
•
•
•
Declining in Proft Margins
Challenges of E Commerce laws in India
Low entry barriers
Problem for rural customers
Shortage of manpower
Challenges of Customer Loyalty
Challenges of Return of Goods
Challenges of Cash on Delivery
Problems of payment gateways
15
•
•
•
•
•
•
•
•
Problem of touch and feel
Problem of delivery
Problem of confdence
Unsuitability to certain products
Problem of negotiation
Problem of language
Low internet penetration
Privacy issues
16
E Commerce Business Strategies
•
•
•
•
•
•
•
Niche markets
Sell internet only merchandise
Personalize
Third party logistics
Invest in mobile platform
Consider subscription commerce
Consistency across channels
17
E Commerce Business Strategies
cont’d….
•
•
•
•
•
•
•
•
Implement a loyalty program
Make use of native language
Third party logistics
Consistency across
Implement a loyalty programmer
Make use of Native Language
Excellent customer services
Understand the customer
18
Business models of E Commerce
•
•
•
•
•
•
•
•
B2C – Flipkart, Amazon, etc
B2B
C2B
C2C
B2G
G2C
G2Citizen
P2P
19
Characteristics of B2B E Commerce
1. Higher volumes
2. Longer lead times
3. Credit sales
4. Price negotiations
5. Specialized promotion
6. Customized orders
7. Value addition
8. Activities involved in purchasing
9. Higher risk
10.High degree of personal selling.
20
Need and importance of
B2B E Commerce
1. Reduces distribution costs
2. Reduces inventory levels
3. Increases in productivity
4. Focused brand promotion
5. Customer loyalty
6. Wider geographical spread
7. Scalability
8. Reciprocal buying
9. Benefts of negotiations
10.Lower rejection rate.
21
Characteristics of B2C E Commerce
1. Large number of customer
2. Lower entry barriers
3. Lower volume per transaction
4. Possibilities of return of goods
5. Global reach
6. Anytime shopping
7. B2C process
8. Lower operating costs
9. Lower investment
10.Stif competition
11.Lower prices to customers.
22
Process to B2C E Commerce
1. Pre-purchase
2. Purchase
3. Post Purchase
23
Characteristics of B2G E Commerce
•
•
•
•
•
•
•
•
Mainly involves bidding
Transparency
Virtual work place
Improved efciency
High value per transaction
Rules and regulation
Absence of promotional tactics
International coverage
24
Models of B2B E Commerce
• Net Market Place Model
– Supplier oriented marketplace (few suppliers & many
buyers)
– Buyer oriented marketplace (few buyers face many
suppliers)
– Intermediary oriented marketplace (many buyers &
many suppliers)
• Private Industrial Network Model (PIN)
– Single frm industrial network operated by single
large purchasing frm
– Industry wide industrial network operated by a group
of large frms
25
Net Market Place Model
Supplier oriented marketplace
(few suppliers & many buyers)
•
•
•
•
•
•
•
•
•
Known as sell side e commerce system
Dell computers
CISCO network solutions
Customisation by confguration which buyer
intends to purchase.
Product catalogue
Procedure for order placement
Customer service
Shipment schedule and procedure
Invoicing and payment by buyers
26
Private Industrial Network Model
(PIN)
•
•
•
•
•
Single frm industrial network
Industry wide industrial network
Wal mart - retail industry
Nike – apparel industry
etc
27
Private Industrial Network Model
(PIN)
• Higher efciency in buying and
selling
• Reduction in business risks due to
closer linkages
• Facilitates resource and capacity
planning throughout the industry.
• Better communication between the
counter party.
28
E commerce sales life cycle
(ESLC)
•
•
•
•
•
•
•
Seed (Development) stage
Start-up (Introductory) stage
Growth stage
Established (Maturity) stage
Expansion Stage
Decline stage
Exit stage
29
Seed (Development) stage
• Generates idea to set up e commerce
biz
• Challenge – market acceptance
• Focus – business opportunities to link
with skills, experience and passion.
• Money sources – get funds to start
business may be crowdfundings.
30
Start-up (Introductory) stage
• Challenge – face cash fow crisis
• Focus – estb customer base and
market presence
• Money sources – should make best
use of available money resources
31
Growth Stage
• Challenge – efective management
along with new business plan
• Focus – maintain and enhance
customer relations with promotional
activities
• Money sources – may obtain funds
from banks, venture capital funding,
angle investor etc.
32
Established (Maturity) stage
• Challenge – may face stif
competition, changing customer
tastes, economic conditions
• Focus – improving efciencies
• Money sources – needs to maintain
best use of cash fows from sales and
ploughing back of profts
33
Expansion Stage
• Challenge – moving into new
markets, diversifcation, expansion
• Focus – new customer segments,
without losing focus on existing
customer segments
• Money sources – may enter into new
ventures with bank loans, fnd
investors for further expansions
34
Decline stage
• Challenge – decline in sales, profts,
customer base
• Focus – new opportunities, new
business ventures
• Money sources – make use of
retained earnings, suppliers credit
etc
35
Exit stage
• Challenge – fnal close down of
business
• Focus – proper valuations, value
brand equity
36
Conclusion.
37
WORLD WIDE WEB AND E
ENTERPRISE
Chap 02
38
Introductory stage (1990s)
• Creation of W.W.W – HTML introduced
that supports links to other
documents
• Net Browser – Netscape launched
Navigator frst web browser
• First ever online order for Pizza Hut 1994
• Birth of C2C - eBay
• First ever sale by Amazon - 1995
• Introduction of Paypal – payments
39
40
Reasons for building own
website
•
•
•
•
•
•
•
•
•
•
Visibility
Easy to develop
Promotion of business
Online business
Refects creativity
Learning experience
Competitive advantage
Corporate image
Convenience to customers
Tie-ups
41
Benefts of website
•
•
•
•
•
•
•
•
•
•
•
Customer satisfaction
Competitive advantage
Corporate image
Organizational objectives
Benefts of online sales
Customer reviews
Promotional values
Customer loyalty
Tie-ups
Links
Cost reductions
42
Registering a domain name
• Name of the entity
• Type of the entity
• Entity's geographical location
43
Procedure for registration of a
domain name
• Domain name
• Indentify registrar
• Search for domain name on registrar’s
website
• Submission of information to registrar
• Verifcation by the registrar
• Submit an authorization letter
• Registration of domain name
• Payment to the registrar
44
Role of website in B2C e commerce
•
•
•
•
•
•
•
•
•
•
•
Customer satisfaction
Competitive advantage
Corporate image
Organizational objectives
Benefts of online sales
Customer reviews
Promotional values
Customer loyalty
Tie-ups
Links
Cost reductions
45
Push and pull approaches
• Push promotion approach
– Producer to wholesaler and to retailer
• Pull promotion approach
– Strategy directed towards consumers to
increase consumer demand.
46
Principles of website design
•
•
•
•
•
•
•
•
•
•
Typography
Usability
Simplicity
Visual hierarchy
Consistency
Accessibility
Conventionality
Credibility
Navigation
TETO priniciple
47
Concept of EDI
• Computer to computer business
documents exchange
• Purchase orders, Invoices, Shipping
documents etc.
• Business process & EDI electronically
buyers and suppliers are connected.
• Data processing and EDI
48
Pros and Cons of EDI
Pros
•
•
•
•
•
•
•
•
•
•
Faster transmission of info
Automated data entry
Receipt verifcation
Data validation
Availability of free software
Lower costs
Faster processing
Business growth
Reduction in errors
Customer service
49
Cons of EDI
•
•
•
•
•
•
•
•
•
Expensive
System setup is time consuming
EDI standard changes
Needs electronic protection
Staf training cost
Needs for back ups
Limits trading partners
Complex
Changing standards
50
Related new technologies use in ecommerce
•
•
•
•
•
•
•
•
•
Virtual ftting technology
Self check out tech
Drive in grocery store
Drone tech for delivery
Droid tech
Augmented reality tech
Smart refrigerators
Touch id tech
Social networking buttons
51
M Com Part One
Sem II
1
Syllabus - Modules
I. Introduction to e commerce –
evolution and models
II. World wide web and e enterprise
III. E marketing and electronic payment
system
IV. Legal and regulatory environment
and security issues of e commerce.
2
Introduction to E Commerce
Evolution and Models
3
Introduction.
•
•
•
•
•
B2B
B2C
B2G
C2B
C2C
4
EVOLUTION/HISTORY
• Conception stage (1960 - 1980)
• Introductory stage (1990s)
• Growth stage (2000 onwards)
5
Conception stage (1960 - 1980)
• Electronic Data Interchange - Electronic Data format
for sending info about cargo between Du Pont and
Chemical Leahman.
• Birth of Internet - 1969 – ARPANET to create network
that would allow researchers to communicate.
• Invention of Online Shopping – 1979 – Aldrich
connected television set to transaction processing
computer with a telephone line and called it
teleshopping.
• Introduction of Minitel – 1982 - online ordering,
online banking, travel reservations etc.
6
Introductory stage (1990s)
• Creation of W.W.W – HTML introduced
that supports links to other
documents
• Net Browser – Netscape launched
Navigator frst web browser
• First ever online order for Pizza Hut 1994
• Birth of C2C - eBay
• First ever sale by Amazon - 1995
• Introduction of Paypal – payments
7
Growth stage (2000 onwards)
• eBay acquires Paypal (2002)
• First yearly proft by Amazon (2003)
• Online purchases through mobile
phones (2008)
8
E commerce in India
• Phase I (19996 - 2005)
– 1995 dial up internet
– Online Matrimonial -1996
– Online Recruitment - 1997
• Phase II (2006 till date)
– Low cost carrier in Indian Aviation Sector fred up
Online Reservation
– Online retail 2007
– Group buying – venture capital fund into markets
– Social Networking
9
Main Activities of E
Commerce
1. Information sharing
2. Registration
3. Order Placement and Processing
4. Processing of payment
5. Shipment
6. Delivery
7. Service and support
8. Feedback.
9. Customers reviews
10.Advertising and Sales Promotion
10
Functions of E Commerce.
1. Registrations
2. Information search
3. EDI
4. Negotiations
5. Orders
6. Logistics
7. Payment
8. After sales activities
9. Promotions of products
10.Consumer research
11
Scope of e commerce
• Major applications
– Electronic markets
– EDI
– Internet commerce
12
Benefts of E Commerce
• Advantages to e marketers
– Global markets
– Audience sizing
– Lower investments
– Lower operating cost
– Improvement in productivity
– Customer relationship
– Benefts to the govt agencies.
13
• Advantages to customers
– Convenience in shopping
– Anytime shopping
– Lower prices
– Loyalty Incentives
14
Challenges of E Commerce
•
•
•
•
•
•
•
•
•
Declining in Proft Margins
Challenges of E Commerce laws in India
Low entry barriers
Problem for rural customers
Shortage of manpower
Challenges of Customer Loyalty
Challenges of Return of Goods
Challenges of Cash on Delivery
Problems of payment gateways
15
•
•
•
•
•
•
•
•
Problem of touch and feel
Problem of delivery
Problem of confdence
Unsuitability to certain products
Problem of negotiation
Problem of language
Low internet penetration
Privacy issues
16
E Commerce Business Strategies
•
•
•
•
•
•
•
Niche markets
Sell internet only merchandise
Personalize
Third party logistics
Invest in mobile platform
Consider subscription commerce
Consistency across channels
17
E Commerce Business Strategies
cont’d….
•
•
•
•
•
•
•
•
Implement a loyalty program
Make use of native language
Third party logistics
Consistency across
Implement a loyalty programmer
Make use of Native Language
Excellent customer services
Understand the customer
18
Business models of E Commerce
•
•
•
•
•
•
•
•
B2C – Flipkart, Amazon, etc
B2B
C2B
C2C
B2G
G2C
G2Citizen
P2P
19
Characteristics of B2B E Commerce
1. Higher volumes
2. Longer lead times
3. Credit sales
4. Price negotiations
5. Specialized promotion
6. Customized orders
7. Value addition
8. Activities involved in purchasing
9. Higher risk
10.High degree of personal selling.
20
Need and importance of
B2B E Commerce
1. Reduces distribution costs
2. Reduces inventory levels
3. Increases in productivity
4. Focused brand promotion
5. Customer loyalty
6. Wider geographical spread
7. Scalability
8. Reciprocal buying
9. Benefts of negotiations
10.Lower rejection rate.
21
Characteristics of B2C E Commerce
1. Large number of customer
2. Lower entry barriers
3. Lower volume per transaction
4. Possibilities of return of goods
5. Global reach
6. Anytime shopping
7. B2C process
8. Lower operating costs
9. Lower investment
10.Stif competition
11.Lower prices to customers.
22
Process to B2C E Commerce
1. Pre-purchase
2. Purchase
3. Post Purchase
23
Characteristics of B2G E Commerce
•
•
•
•
•
•
•
•
Mainly involves bidding
Transparency
Virtual work place
Improved efciency
High value per transaction
Rules and regulation
Absence of promotional tactics
International coverage
24
Models of B2B E Commerce
• Net Market Place Model
– Supplier oriented marketplace (few suppliers & many
buyers)
– Buyer oriented marketplace (few buyers face many
suppliers)
– Intermediary oriented marketplace (many buyers &
many suppliers)
• Private Industrial Network Model (PIN)
– Single frm industrial network operated by single
large purchasing frm
– Industry wide industrial network operated by a group
of large frms
25
Net Market Place Model
Supplier oriented marketplace
(few suppliers & many buyers)
•
•
•
•
•
•
•
•
•
Known as sell side e commerce system
Dell computers
CISCO network solutions
Customisation by confguration which buyer
intends to purchase.
Product catalogue
Procedure for order placement
Customer service
Shipment schedule and procedure
Invoicing and payment by buyers
26
Private Industrial Network Model
(PIN)
•
•
•
•
•
Single frm industrial network
Industry wide industrial network
Wal mart - retail industry
Nike – apparel industry
etc
27
Private Industrial Network Model
(PIN)
• Higher efciency in buying and
selling
• Reduction in business risks due to
closer linkages
• Facilitates resource and capacity
planning throughout the industry.
• Better communication between the
counter party.
28
E commerce sales life cycle
(ESLC)
•
•
•
•
•
•
•
Seed (Development) stage
Start-up (Introductory) stage
Growth stage
Established (Maturity) stage
Expansion Stage
Decline stage
Exit stage
29
Seed (Development) stage
• Generates idea to set up e commerce
biz
• Challenge – market acceptance
• Focus – business opportunities to link
with skills, experience and passion.
• Money sources – get funds to start
business may be crowdfundings.
30
Start-up (Introductory) stage
• Challenge – face cash fow crisis
• Focus – estb customer base and
market presence
• Money sources – should make best
use of available money resources
31
Growth Stage
• Challenge – efective management
along with new business plan
• Focus – maintain and enhance
customer relations with promotional
activities
• Money sources – may obtain funds
from banks, venture capital funding,
angle investor etc.
32
Established (Maturity) stage
• Challenge – may face stif
competition, changing customer
tastes, economic conditions
• Focus – improving efciencies
• Money sources – needs to maintain
best use of cash fows from sales and
ploughing back of profts
33
Expansion Stage
• Challenge – moving into new
markets, diversifcation, expansion
• Focus – new customer segments,
without losing focus on existing
customer segments
• Money sources – may enter into new
ventures with bank loans, fnd
investors for further expansions
34
Decline stage
• Challenge – decline in sales, profts,
customer base
• Focus – new opportunities, new
business ventures
• Money sources – make use of
retained earnings, suppliers credit
etc
35
Exit stage
• Challenge – fnal close down of
business
• Focus – proper valuations, value
brand equity
36
Conclusion.
37
WORLD WIDE WEB AND E
ENTERPRISE
Chap 02
38
Introductory stage (1990s)
• Creation of W.W.W – HTML introduced
that supports links to other
documents
• Net Browser – Netscape launched
Navigator frst web browser
• First ever online order for Pizza Hut 1994
• Birth of C2C - eBay
• First ever sale by Amazon - 1995
• Introduction of Paypal – payments
39
40
Reasons for building own
website
•
•
•
•
•
•
•
•
•
•
Visibility
Easy to develop
Promotion of business
Online business
Refects creativity
Learning experience
Competitive advantage
Corporate image
Convenience to customers
Tie-ups
41
Benefts of website
•
•
•
•
•
•
•
•
•
•
•
Customer satisfaction
Competitive advantage
Corporate image
Organizational objectives
Benefts of online sales
Customer reviews
Promotional values
Customer loyalty
Tie-ups
Links
Cost reductions
42
Registering a domain name
• Name of the entity
• Type of the entity
• Entity's geographical location
43
Procedure for registration of a
domain name
• Domain name
• Indentify registrar
• Search for domain name on registrar’s
website
• Submission of information to registrar
• Verifcation by the registrar
• Submit an authorization letter
• Registration of domain name
• Payment to the registrar
44
Role of website in B2C e commerce
•
•
•
•
•
•
•
•
•
•
•
Customer satisfaction
Competitive advantage
Corporate image
Organizational objectives
Benefts of online sales
Customer reviews
Promotional values
Customer loyalty
Tie-ups
Links
Cost reductions
45
Push and pull approaches
• Push promotion approach
– Producer to wholesaler and to retailer
• Pull promotion approach
– Strategy directed towards consumers to
increase consumer demand.
46
Principles of website design
•
•
•
•
•
•
•
•
•
•
Typography
Usability
Simplicity
Visual hierarchy
Consistency
Accessibility
Conventionality
Credibility
Navigation
TETO priniciple
47
Concept of EDI
• Computer to computer business
documents exchange
• Purchase orders, Invoices, Shipping
documents etc.
• Business process & EDI electronically
buyers and suppliers are connected.
• Data processing and EDI
48
Pros and Cons of EDI
Pros
•
•
•
•
•
•
•
•
•
•
Faster transmission of info
Automated data entry
Receipt verifcation
Data validation
Availability of free software
Lower costs
Faster processing
Business growth
Reduction in errors
Customer service
49
Cons of EDI
•
•
•
•
•
•
•
•
•
Expensive
System setup is time consuming
EDI standard changes
Needs electronic protection
Staf training cost
Needs for back ups
Limits trading partners
Complex
Changing standards
50
Related new technologies use in ecommerce
•
•
•
•
•
•
•
•
•
Virtual ftting technology
Self check out tech
Drive in grocery store
Drone tech for delivery
Droid tech
Augmented reality tech
Smart refrigerators
Touch id tech
Social networking buttons
51