PPT of e-commerce BY Shareb Ismaeel DEPT. OF INFORMATION TECHNOLOGY CENTRAL UNIVERSITY OF KASHMIR

1. BY
SHABEER ISMAEEL
AND
ISHFAQ MAJID

2. WHAT IS COMMERCE
 According to Dictionary meaning.
 Commerce is a division of trade or production which
deals with the exchange of goods and services from
producer to final consumer
 It comprises the trading of something of economic
value such as goods, services, information, or money
between two or more entities.

3. WHAT IS E-COMMERCE
 Commonly known as Electronic Marketing.
 “It consist of buying and selling goods and services over
an electronic systems Such as the internet and other
computer networks.”
 “E-commerce is the purchasing, selling and exchanging
goods and services over computer networks (internet)
through which transaction or terms of sale are performed
Electronically.

4. TRADITIONAL BUSINESS
DIRECT SELLING
MANF. UNIT
20%
DISTRIBUTOR
10%
WHOLESALER
10%
RETAILER
10%
CUSTOMER
100%
ADVERTISEMENT
50%
CUSTOMERCOMPANY

5. Why
Use
E-Commerce
…….?

6. LOW ENTRY COST
REDUCES TRANSACTION COSTS
ACCESS TO THE GLOBAL MARKET
 SECURE MARKET SHARE

7. THE PROCESS
OF
E-COMMERCE

8.  A consumer uses Web browser to connect to the
home page of a merchant's Web site on the
Internet.
 The consumer browses the catalog of products
featured on the site and selects items to
purchase. The selected items are placed in the
electronic equivalent of a shopping cart.
 When the consumer is ready to complete the
purchase of selected items, she provides a bill-to
and ship-to address for purchase and delivery.

9. When the merchant's Web server receives
this information, it computes the total cost
of the order--including tax, shipping, and
handling charges--and then displays the
total to the customer.
The customer can now provide payment
information, such as a credit card number,
and then submit the order.

10. When the credit card number is validated
and the order is completed at the
Commerce Server site, the merchant's site
displays a receipt confirming the
customer's purchase.
The Commerce Server site then forwards
the order to a Processing Network for
payment processing and fulfillment.

11. TYPES
OF
E-COMMERCE

12. BUSINESS-TO-BUSINESS (B2B)
 B2B stands for Business to Business. It consists of largest
form of Ecommerce. This model defines that Buyer and
seller are two different entities. It is similar to manufacturer
issuing goods to the retailer or wholesaler.
E.g.:-Dell deals computers and other associated accessories
online but it is does not make up all those products. So, in
govern to deal those products, first step is to purchases them
from unlike businesses i.e. the producers of those products.

13. BUSINESS-TO-CONSUMER (B2C):
 It is the model taking businesses and consumers
interaction. The basic concept of this model is to
sell the product online to the consumers.
 B2c is the direct trade between the company and
consumers. It provides direct selling through online.
For example: if you want to sell goods and services
to customer so that anybody can purchase any
products directly from supplier’s website.

14. BUSINESS-TO-EMPLOYEE (B2E)
 Business-to-employee (B2E) electronic commerce
is an approach in which the focus of business is
the Employee. In a broad sense,B2E
encompasses everything that businesses do to
attract and retain well-qualified staff in a
competitive Market, such as benefits, education
opportunities, flexible hours, bonuses Etcetra….

15. CONSUMER-TO-CONSUMER (C2C)
 There are many sites offering free classifieds, auctions,
and forums where individuals can buy and sell. People
who come together to buy, sell or trade items online take
part in C2C e-commerce. Amazon and eBay's auction
service is a great example of where person-to-person
transactions take place every day since 1995.

16. ESSENTIAL E-COMMERCE PROCESSES

17. --Access Control and Security
E-commerce processes must establish mutual trust and secure access
between the parties in an e-commerce transaction by authenticating
users, authorizing access, and enforcing security features.
--Profiling and Personalizing
Processes that gather data on you and your website behavior and
choices, and build electronic profiles of your characteristics and
preferences. These profiles are then used to recognize you as an
individual user and provide you with a personalized view of the contents of
the site, as well as product recommendations and personalized Web
advertising
--Content and Catalog Management
Content Management software that helps e-commerce companies develop,
generate, deliver, update, and archive text data and multimedia information at e-
commerce websites.
Catalog Management software that helps generate and manage catalog content.

18. --Search Management
Efficient and effective search processes provide a top e-commerce
website capability that helps customers find the specific product or
service they want to evaluate or buy.
--Workflow Management
It ensures that the proper transactions , decisions and work activities are
performed, and correct data and documents are routed to the right
employees , customers and other business stakeholders.
--Event Notification
Software that notifies customers, suppliers, employees, and other
stakeholders of their status in a transaction based on events initiated by
one of the parties.
--Collaboration and Trading
Processes that support the vital collaboration arrangements and trading
services needed by customers, suppliers, and other stakeholders to
accomplish e-commerce transactions.

19. ELECTRONIC PAYMENT PROCESSES
 Payments for the products and services purchased are an obvious
and vital step in the electronic commerce transaction process.
 Varieties of electronic payment systems have evolved. New
payment systems are being developed and tested to meet the security
and technical challenges of electronic commerce over the Internet.
Some include...
--Credit Card
 Payment using credit card is one of most common mode of electronic
payment.
 Credit card is small plastic card with a unique number attached with an
account. When a customer purchases a product via credit card, credit card
issuer bank pays on behalf of the customer and customer has a certain time
period after which he/she can pay the credit card bill.
 The card brand - for example , visa or MasterCard.

20. --Debit Card
 Debit card, like credit card is a small plastic card with a
unique number mapped with the bank account number.
 It is required to have a bank account before getting a debit
card from the bank.
 The major difference between debit card and credit card is
that in case of payment through debit card, amount gets
deducted from card's bank account immediately and there
should be sufficient balance in bank account for the
transaction to get completed. Whereas in case of credit
card there is no such compulsion.
 Debit cards free customer to carry cash, cheques and even
merchants accepts debit card more readily.

21. --Smart Card
 Smart card is again similar to credit card and debit card in
appearance but it has a small microprocessor chip
embedded in it.
 It has the capacity to store customer work related/personal
information. Smart card is also used to store money which
is reduced as per usage.
 Smart card can be accessed only using a PIN of customer.
Smart cards are secure as they stores information in
encrypted format and are less expensive/provides faster
processing.
 Mondex and Visa Cash cards are examples of smart cards.

22. --E-Money
 E-Money transactions refers to situation where payment is
done over the network and amount gets transferred from
one financial body to another financial body without any
involvement of a middleman.
 E-money transactions are faster, convenient and saves a
lot of time.
 Online payments done via credit card, debit card or smart
card are examples of e-money transactions.
 Another popular example is e-cash.
 In case of e-cash, both customer and merchant both have
to sign up with the bank or company issuing e-cash.

23. --Electronic Fund Transfer
 It is a very popular electronic payment method to transfer money from
one bank account to another bank account.
 Accounts can be in same bank or different bank. Fund transfer can be
done using ATM (Automated Teller Machine) or using computer.
 Nowadays, internet based EFT is getting popularity. In this case,
customer uses website provided by the bank.
 Customer logins to the bank's website and registers another bank
account. He/she then places a request to transfer certain amount to that
account.
 Customer's bank transfers amount to other account if it is in same bank
otherwise transfer request is forwarded to ACH (Automated Clearing
House) to transfer amount to other account and amount is deducted
from customer's account.
 Once amount is transferred to other account, customer is notified of the
fund transfer by the bank.

24. PROS AND CONS
OF
E-COMMERCE

25. PROS

26.  No checkout queues.
 Reduce prices.
 You can shop anywhere in the world.
 Easy access 24 hours a day.
 Wide selection to cater for all consumers .

27. CONS

28.  Unable to examine products personally.
 Not everyone is connected to the Internet.
 There is the possibility of credit card number theft .
 On average only 1/9th of stock is available on the net.