2.0 Introduction E Commerce E Commerce E Commerce

2.0 Introduction
E-Commerce?
The word eCommerce seems to be one of those terminologies that technology geeks use and
there is a tendency for us regular mortals to be put off by ‘big grammar’. Therefore, let’s break it
down to its simplest form; understand the origin of the word, and how it is used today.
E-Commerce stands for electronic commerce. The ‘electronic’ component of it comes from the
use of electronic devices to engage in ‘commerce’ activities. The English word ‘commerce’ is
derived from the French word of the same pronunciation ‘commerce’, which in turn was derived
from the Latin word ‘commercium’. Commercium was formed by two Latin words of ‘com’
which means ‘together’ and ‘mercium’ (from ‘merx’) which means merchandise. Therefore, from
the etymology of the word ‘commerce’ we can derive that the original intention of the word is
the coming together to trade in merchandise.
E-Commerce started way back in the 1960s when organizations began to use Electronic
Data Interchange (EDI) to transfer documents of their business back and forth. The 1990s saw
the emergence of online shopping businesses, which is quite a phenomenon today. It has become
so convenient and easy, that anyone can shop for anything right from a living room, with just a
few clicks. This has evolved more with the emergence of smartphones, were now, you can shop
from anywhere and anytime, with a wireless device connected to the Internet. Now you can
search for almost any product or service online, without having to go anywhere physically.
The history of E-commerce can be traced back to the days of invention of electronics,
electricity and the invention of the world wide web. But could be said that it came into existence

in the year 1991 after the internet became usable for commercial purposes.
The E-commerce involved the usage of technologies like Electronic Data Transfer (EDI) and
the Electronic Funds Transfer for the commercial Transaction. Exchange of business data in an
understandable format is called the EDI and anteceded the internet today.
In the 1980's there was an intensification of the credit cards, ATMs and telephone banking.
This marked the beginning of E-commerce. And in the early 90's there was an enterprise resource
planning, data warehousing and data mining. Though the internet was quite popular in the early
days, there weren't enough security protocols which were developed at later stages in 1994. This
was a time when the history of E-commerce reached new heights and the security protocols
permitted easy, rapid and persistent access of the internet. There was a web browser developed in
1992 called the MOSAIC BROSWER which was named NETSCAPE. The history of Ecommerce had broadened after the invention of this browser.
There has been a rapid expansion of the internet in the late 1990s which have lead yo the
explosive growth in E-commerce over the world wide web. The industry analyst reported that

North American business-to-business E-commerce transaction grew from $11.5 billion in 1998
to $44.5 billion in 2000.

2.0.1 RELEVANCE OF ECOMMERCE IN OUR SOCIETY
At the close of the 20th century, retail transactions made up the largest part of E-commerce.
Consumers purchased devices, airline tickets, food, clothes and other commodities over the

internet. E-commerce.
E-commerce technology is different, more powerful than previous technologies, brings
fundamental changes to commerce and It's a sector that is currently in growth.
It’s relevance in the society includes;
1. It serves as a boost in productivity for each individual and by extension a boost in the
Nigeria’s Gross Domestic Product (GDP).
2.

Reduced prices on goods and services due to standardization of information

3.

More disposable income to households from savings on standardized prices

4.

Establishment and growth of more local organizations due to increased market access

5.


Job creation as a direct consequence of the establishment of more local organizations.

6. It encourages the adoption of an easy internet life. E-commerce business operates on the
internet platform and today with the internet’s power, you could get far more customers
than you could by running an actual shop.
7. E-commerce business reduces destination barriers. With the internet, distance never
becomes an issue because the consumer can buy anything that he wants with the click of
a mouse.
8. It helps people to actually perform more activities within a limited space of time.
9. Helps in reducing total expenses of citizens in a society. When compared to running an
actual shop, the expenses involved with running an ecommerce business is low. When
you run a store, you need to rent a place, hire employees and pay up for any peripheral
costs such as electricity, water, etc. With an ecommerce business, you are saved all this
trouble and thus can reduce your expenses considerably.

10. E-Commerce stores are known to offer goods and services that are equal in price and
sometimes even cheaper than those found in traditional stores. Essentially, e-commerce
stores are now contributing to the democratization of prices in Nigeria.
According to a July 2014 report from the Business Advisory Division of Phillips Consulting
Limited online shopping in Nigeria increased from N49.9billion in 2010 to N78 billion in 2012.

With consistent year-on-year growth of 25% in this sector, it is expected that online shopping
will hit N152.3 billion by 2015.
Data obtained from the National Bureau of Statistics shows that the Fast Moving Consumer
Goods sector (FMCG) of the economy accounted for 9% of Nigeria’s GDP which is more than
the contribution of the Oil & Gas sectors to GDP and second only behind Agriculture.
The growth in the ecommerce industry seems more remarkable when you consider that only 38%
of the Nigerian population has embraced online shopping.
2.1 E-COMMERCE FRAME-WORK?
The term e-commerce framework is related to software frameworks for e-commerce
applications. They offer an environment for building e-commerce applications quickly.
E-Commerce frameworks are flexible enough to adapt them to your specific requirements. As
result, they are suitable for building virtually all kinds of online shops and e-commerce related
(web) applications.
An e-commerce framework must;
1. allow replacing all parts of the framework code
2. forbid changes in the framework code itself
3. contain bootstrap code to start the application
4. be extensible by user-written code
E-Commerce frameworks should
1. define the general program flow

2. consist of reusable components
3. be organized in functional domains
4. They provide an overall structure for e-commerce related applications.

Furthermore, they implement the general program flow e.g. how the checkout process works.
Contrary to monolithic shop systems, existing program flow can not only be extended but
completely changed according to your needs.
E-Commerce framework architecture


E-commerce frameworks must be based on a strong architectural model. Usually, they
make heavy use of interfaces and design patterns like



Dependency Injection (make components independent of used object implementation)



Factories (create objects at a central place that instantiates the actual implementation)




Decorators (dynamically add functionality to existing objects)



Publish/Subscribe model (notify listening objects about changes instead of polling for
updates)

DESIGN PATTERN
A “design pattern” is re-usable solution that solves similar software design problems in an
elegant way. They require programming language templates which enforce public class methods
and their signatures called “interfaces”.
The basic requirement is independent, side-effect free components that form the building blocks.
One or more components care about the functionality of a business “domain”. Such a domain can
be the HTML front-end, a JSON REST API and the administration interface.
2.1.2 BASIC CONCEPT AND THEORY OF E-COMMERCE
Some fundamentals used in business economics and strategies dominating sales. Focus
on these basics and evaluate your chances to build effective digital products.

Meaning of e-commerce
E-Commerce stands for electronic commerce. E-commerce involves transactions which provide
customers with goods or services are done via electronic devices and the internet. This channel
of communication adds to the features of data management, advertising, sales channels etc.
which frame a full cycle of commerce operations, namely payments, delivery, and refunds.
E-commerce industry has witnessed a boom and opens opportunities for not only e-trade but
even online auctions and direct sales platforms. It has a wide domain and includes e-banking
through e-wallets and e-money as well as e-marketing and many other aspects that are quite
useful for users.
Design View

E-commerce activity is influenced by the quality of the product or service, content, channels
used for providing information on the electronic medium. So, it is evident that we can’t ignore
UI/UX design as it is these logical and systematic transitions, fluid micro interactions, prompt
feedback, catchy presentation and quick payment flow, which will affect the scaling profits of the
business dwelling on an e-commerce platform. Designers should always keep their focus on
operational simplicity, effectiveness.
eCommerce websites
These are online portals that facilitate online transactions of goods and services through means of
the transfer of information and funds over the Internet. In the early days, e-Commerce was done

partially through emails and phone calls. Now, with a single website, anything and everything
that a transaction needs, can be executed online.
There are different e-Commerce websites for every field. The most common type is retail selling,
but there are many others too, like auction websites, business-to-business services, music portals,
consultancy websites, finance management websites, and the like.
Different Types of eCommerce
Different e-commerce websites are labelled or referred to differently, based on the function they
fulfil.


Business-to-Business (B2B): Electronic transactions of goods and services between
companies.



Business-to-Consumer (B2C): Electronic transactions of goods and services between
companies and consumers.




Consumer-to- Consumer (C2C): Electronic transactions of goods and services between
consumers, mostly through a third party.



Consumer-to-Business (C2B): Electronic transactions of goods and services where
individuals offer products or services to companies.



Business-to-Administration (B2A): Electronic transactions of goods and services
between cSompanies and public administrations.



Consumer-to-Administration (C2A): Electronic transactions of goods and services
between individuals and public administrations.

2.2 VARIOUS TECHNOLOGIES DEVELOPED OVER THE YEARS TO SUPPORT
ONLINE SHOPPING SYSTEM OPERATIONS.




Web Server

A web server is used to host an e-commerce website. All the Html, JavaScript, PHP files,
databases, media files that make up the entire website are stored on this server. The web server
runs on Windows or Linux operating system. Managing a web server is a very specific job.
The website development companies host the site on their own web server or pay a hosting
company to provide space on a secure web server.
 Server Software
When a user visits any website on a web browser, the web server knows the client is requesting
some specific information. So it processes that request and serves the correct files to the client.
The web browser then displays these files to the user.
There are many types of server software available including application software, database
server, file server software and cloud computing software. The popular web server software
includes Apache and Windows IIS. Server software can either use on a physical server or on a
virtual / cloud server.
 Web Tools
A web authoring tool is used to create the front end of an e-commerce website. They range from

basic HTML text editors (like Notepad++) to more complex graphic authoring tools and CMS
(content management system) with built-in frameworks and debugging tools.
Html files are created by Dreamweaver along with the CSS (cascading style sheet) which
enhance the visual appearance of the site. Another web authoring tool would be Visual Studio
.net that can be used to make the sites which have integrated databases in it. Graphic design
packages are also web authoring tools which design the skin for a user interface.
 Database System
A database is an integral part of an e-commerce website. The database is used to store the
information about the products and services of the website such as pricing, description, image,
details, and sales. In addition to this, the customer details are also stored in the database like what
they ordered, their payment details, shipping details, and contact information.
It is necessary to program the website to connect securely to the database so that all the orders
are processed correctly and your business runs smoothly. Technologies like PHP and MySQL are
the communication route between the website and the DBMS (database management system).
 Networking
TCP (transfer control protocol) and IP (internet protocol) define as how computers should
connect with each other through the internet and how they share information. Common TCP/IP
protocols are HTTPS, HTTP and FTP. We use these protocols to access the website without even
realizing it. FTP (file transfer protocol) used to download files from a browser.
HTTPS (where the “S” stands for security) responsible for the secure communication between a
server and a browser like an account information or personal information.
For an e-commerce website or online store, it is considered essential to provide a secure
connection. SSL (secure sockets layer) and TLS (transport layer security) are the protocols
associated with trust and security of any e-commerce website.



Browser Compatibility

A web browser is a software application that is used to locate, receive and display content
received from the web servers. Popular web browsers include Mozilla Firefox, Google Chrome,
Internet Explorer and Safari. Web developers and Web development agencies test the website see
how it displays on multiple browsers across multiple devices and screen sizes before launching
the website.
The Tip: To analyze website traffics, use tools like Google Analytics to get an idea as what
browsers people are using and which one is the most popular.
 Ports
Ports allow one device to connect with the other through a different and unique IP address. A
device can have more than one port.
Port 25 (SMTP) is usually reserved for email. It is used to transmit data from remote email
servers. If that port is blocked no emails can be sent. Some other common port numbers are
80(HTTP), 443 (HTTPS), 21 (FTP), 22 (SSH). Firewalls can often block a port to tighten the
security.
 Domain Names
Domain names link to a company or a brand. Successful e-commerce companies have
recognizable domain names. If you have any smaller business then it is best to select the domain
name as per your business name. This would help to rank highly in search engines.
If a business becomes successful online, it is important to protect the brand by doing multiple
registrations of domain names such as .com, .net, .uk, .org, .co
EVOLUTION OF E-COMMERCE SYSTEMS
Since the beginning of (internet) e-commerce around 1995, a lot has changed on the technology
side. The first generation of e-commerce systems evolved from existing ERP and related
systems. This was followed by the generation of standalone shop systems between 2004 and
2008. E-commerce frameworks are the latest generation of e-commerce systems and started
around 2012.
Hybris, the shop system owned by SAP is one of the representatives of the generation. It’s
strongly connected to the SAP ERP system and Hybris is mainly a shop front-end for SAP.
Customer relationship (CRM) and content management (CMS) tools are available in the ERP
system but very limited.
The Magento shop system represents the generation of standalone e-commerce systems. They
usually contain CRM and CMS and some other functionality but also only at a very basic level.
They might be enough for the smallest shops but are unusable for shop owners who run for real
profits.
Aimeos is one of the few real e-commerce frameworks that are currently available. These 3rd
generation systems excel in their own domain: Present and sell products. For all other e-

commerce related tasks, they connect to specialized systems and exchange data in both ways.
Thus, shop owners can choose the best systems for their needs.
.

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