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Introduction to E Commerce
What is E Commerce?
E Commerce stands for electronic commerce and caters to trading in goods and services through the
electronic medium such as internet, mobile or any other computer network. It involves the use of
Information and Communication Technology (ICT) and Electronic Funds Transfer (EFT) in making
commerce between consumers and organizations, organization and organization or consumer and
consumer. With the growing use of internet worldwide, Electronic Data Interchange (EDI) has also
increased in humungous amounts and so has flourished e-commerce with the prolific virtual internet
bazaar inside the digital world which is righty termed as e-malls.
We now have accessto almostevery knick-knackof ourdaily livesatcompetitive priceson the internet.
No matterone iseducated or illiterate, anurbane or a countryman, in India or in U.K; all you need is an
internetconnection andagreenbankaccount. With e-commerce then, youcanbuyalmostanythingyou
wishforwithoutactually touchingthe productphysically andinquiringthe salesman n number of times
before placingthe final order. Here isabeautiful picture depictinghow hashumanlife evolved to adapt
to the digital worldandhence tradingoverthe internet. As seen, from pizza and potted plant to pair of
shoes, we have everything on sale on the internet available in tempting offers..!! Snapdeal.com,
Amazon, eBay, Naaptol, Myntra, etc are some of the most popular e-commerce websites.
The Breakthrough Beginners
Tracing some steps back, it’s been recorded that some institutes of the western world started
exchanging information and data electronically by the late 1970s. But the concept of online trading of
goods was first witnessed much later with the dawn of 1990. In 1994, Jeff Bezos; an American
businessman started his e-commerce website Cadabra.com, now popularly known as Amazon.com.
Amazon was the first online firm to execute secured online transactions. At the onset, Amazon was
known as an online bookstore, but with the whelming customer-response it expanded to trading in
books, music, apparels, CDs/DVDs, electronics, MP3s, videogames andmanymore. Runningsuccessfully,
round-the-clocksince 1994, surprisingly Amazonrecorded itsfirstprofitinthe year2003 only. Although,

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Amazon proved to be a successful business model by late 2003, it’s no less than a fact stating its
tremendous popularity. The ‘enriched library’, online reviewsystemandauserfriendly website are still
the starred assets of this e-commerce company.
Dell Incemerged as the first company ever to record sales in millions of dollars in 1997. It was also the
first company to sell large number of assembled computers online. It is popularly known for its
successful business model and in the year 2007, it was listed as the 34th
largest company in the
Fortune500 list.
Types
Types of E-Commerce
Divulging the types of e-commerce requires throwing some light on the narrow line of distinction
between e-commerce and e-business on the first hand. While e-commerce uses ICT in making inter-
business, inter-organizational andbusiness-to-consumertransactions, e-business is a broader term and
usestechnology inenhancingone’sbusiness. It concentrates on adding customer value by using digital
media.
E-Commerce can be classified into the following categories:
· B2B e-commerce - B2B or business-to-business isthe type of e-commerce inwhichthe tradingtakes
place between twobusinesses ororganizations/companies without the involvement of consumer. The
product may then be sold to the consumer by any of the organization under its brand name. For
example, acar manufacturermaypurchase some of itsaccessories fromanothercompany and then sell
the finished product to its customers. Another, direct specimen is HP and Intel. HP computers are
integrated with processors made by Intel. A majority of such deals occurs over the internet. A lot of
revenue in e-commerce is garnered from B2B type of internet commerce.
· B2C e-commerce - In recent times, B2C or business-to-consumer e-commerce has grown into the
mostpopularand prolificformof online trade. Itiscommerce between businesses and consumers. It is
more commonly known asonline retailingandinvolves customers purchasinggoodsandservices online.
Amazon.com, Dell computers, Drugstore.com, Travelocity, etc are some of the flourishing examples of
B2C e-commerce. B2C e-commerce has facilitated a click and drag online store in place of the
conventional brickandmortarretailingstores. Ithasreduced transaction costsbyincreasingconsumers’
access to information thereby easing the whole procedure of buying and selling goods and
services. Consumers cannow easily compare various featuresoffered bydifferentbrandsoverthe same

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product and add genuineness to their decision. In addition to this, we also have some good online
reviewers like rottentomatoes, top10reviews, etc, thatprovides onlinereviews forvariousproducts and
services and helps consumers in making a best buy both online as well as offline.
· B2G e-commerce - B2G standsfor business-to-governmente-commerce. Whenthe commerce takes
place between companies and some government organization, it is called as business-to-government
commerce. These types of transactions are usually undertaken in public interest in order to make the
system more transparent and fidel.
· C2C e-commerce - Consumer-to-consumer commerce is the trade between two consumers or
private individuals. C2Ctransactions bearan analogywiththe traditional tradingmethods corresponding
to classified ads, auctions and other vertical industries. Popular websites facilitating C2C e-commerce
are eBay, BaZee.com, Napster, etc. The consumer commerce over online bazaar helps buyers to
negotiate and buy at a selective price.
· M-commerce - M-commerce or mobile commerce is the budding area of digital commerce which
useswireless technology foronlinetrading. Cellulartelephones, tablets, personal digital assistants and
other handheld devices are used for m-commerce. This imminent source of electronic commerce
facilitates a faster, cheaper, easily accessible and more secure method for exchange of goods and
services. Mobile commerce has stimulated other useful applications such as mobile/SMS banking, e-
recharge, application development and many more.
Framework
Conceptual Framework
Interneteconomy isabroaderterm whichincludes bothe-commerce ande-business. There are various
elements governingthe process of online tradingof goodsandservices. These elementsare classified as
differentlayersasperthe framework given by Center for Research and Electronic Commerce (CREC) at
the University of Texas in the following manner:
1. Layer1- Internet and Network Infrastructure
This layer is facilitated by the companies that provide enabling hardware, software and networking
devicesforthe internet, internet service providers (ISPs), fiber optic cable makers, PC manufacturers,
etc.Examples for such providers include CISCO, AT&T, AOL, etc. This layer also deals with the network
framework whichestablishes aneffectiveconnection betweenthe buyerandthe supplier. The network
lattice onwhichthe internetworkstoday isbasedonpacketswitchingtechnique. In this technique, the
message is broken down into small packets. Every packet bears the address of its source and

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destination. Thiswaythe message enjoys aflexibleandfastermediumof communication. Thesepackets
are then assembled in order at the destination computer for ultimate delivery. The internet
infrastructure works under the governance of certain protocols. These set of rules and regulations are
collectively termedasTCP/IP protocol. Here TCP stands forTransmission Control protocol and IP signify
Internet protocol.
2. Layer2- Internet Applications Infrastructure
Thislayerisfacilitated bycompanies thatdesignsoftware products for buyer’s web- interface with the
seller. Integrity atthislayerenablesasecure onlinetransaction. Such companies comprise IBM, Adobe,
Oracle, TCS, etc. These companies provide webdevelopmentdesignandconsultancy services to various
online businesses. It is at this layer where the type of e-commerce is determined.
3. Layer3- Internet Intermediaries
Thislayerfacilitates the real scenarioof e-commerce. Itincludes companies thatestablish linksbetween
the buyers and the sellers by creating the virtual market where the online trading takes place. It
interfaces the application layer to the users. Interactive catalogs and directory support services are
examples of this layer. While the interactive catalog deals with people, the directory catalog deal
interactsdirectly withsoftwareapplications. Online travel agents like Travelocity; Content Aggregators
like Yahoo! and Google, etc are examples of such intermediaries.
4. Layer4- Internet Commerce
Thislayerisfacilitated bycompanies thatsell products orservices directly toconsumers andbusinesses.
These companies include the online retailers or the E-tailers like Amazon, Dell, eBay, etc.
Application
Applications of e-commerce
The developmentine-commerce industry hasfuelled growthinmanyotherindustries aswell inparallel.
· E-banking - E-banking or internet banking is a sophisticated form of banking which facilitates
consumers tomake monetary transactions online usingtheirexisting bank accounts, credit cards, debit
cards, ATM cards or stored-value cards. One can view his/her account details, transfer funds, make
payments, and take mini statements for account history. The Electronic Payment System (EPS) via e-
bankingcompletes the loopof e-commerce by making payment thereby assuring sellers of the buyers

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and vice versa. It facilitates a secure and swift payment gateway for any online transaction. The huge
input and public response for e-commerce has prompted almost every public and private bank to be
visibly active in the online market also.
· Shippingindustry- If there isone industry whichstandstogainwith the growing spirit of electronic
commerce, itsshippingandcourierindustry forsure. E-commerce hadinstigatedthe establishment and
growthof internationalandnational shippingfirms. FedEx (FDS) andUnitedParcel Service (UPS) are two
of the major shipping companies responsible for shipping a large sector of online purchase.
· Electronic Media - Visibly present as newspapers and news channels round the globe since years,
the printmediahas steadily butbeautifully occupied the digital worldwiththe growth of internet users
and internet economy hence, in recent times. In comparison to the on-paper news, electronic
newspaper can give latest/current news readily available at a click.
· ElectronicAuctions - The brick andmortar tradingstores have witnessed aninnovative approach for
making goods available at a market-negotiated price; called auction. The internet has added a new
dimension tothisareaas inE-Auction where buyers andsellerscanbidonline andtrade in a wide range
of products. eBay.com, Olx, and AuctionIndia.com are some of the popular e-auction websites.
Latest Trends and Future Scope
1. The social mediabuzz, needless tomention isaseraphicareaformaximizinge-commerce.More and
more businesses are available on SN sites to build as well as promote their brand names on the e-
bazaar. Integratingthe facebook applications such as ‘like’ and ‘share’ is the favorite customization for
e-commerce websites these days.
2. Search engine optimization for e-commerce website.
3. Withthe risinguse of internetonmobilehandsets, developmentof mobile specificwebsites isa god
idea to promote m-commerce.

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OBJECTIVES OF THE STUDY
This objective of this study is to use of e-commerce domain companies and consumers. This study is
conductedtoevaluate the perceptionandattentive andsecure recommending payment method based
on analysisandstudy.The resultsare expectedtocontribute significantly towards the current thinking,
security regarding e-commerce online transactions. The main objectives are involved an attempt to
determine the current awareness and alert in the particular area in ecommerce like security issues,
Screening, Recommended payment method, Internal order cancellations. This study provides best
solution to e-commerce domain companies/industries and alert and awareness to common man. For
safe and secure transaction consumers and e-commerce domain companies should follow some basic
rulesand regulations with latest technologies. Hacking is now a day’s very common so we consumers’
and companies they should maintain their transaction more secure and safe in this regards our study
proposingandrecommendingbestpayment method and discussing Internal order cancellation. This is
an alarmingsignforthe whole world.If rightstepsare nottakentoday, these new breed of hackers can
do such a level of damage, the world cannot even imagine.
3.1 Vision Statement
1. To meetthe altering&challengingneedsof societyinthe fieldof E-commerce Online transactions by
innovation, problem solving, eradicating threats;
2. To make Cyberworldsafer,bettermanagedandeasyfor the common man, E-commerce companies;
3. To STOP victimizing the innocent;
4. To promote the e-commerce transactions by making it Safe and Secure;
5. To enhance the confidence level of the common people to carry e-commerce activities like online
transactions, purchases, auctioning;
6. To look toward a next generation approach to security engineering by Research;
7. Safe and secure solution solutions in the payment method.
8. Simple and easy flow chart for Internal order cancellation to Companies. Our driving vision is a
networked world in which software and systems can be understood far better and faster is possible
today.

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3.2 Mission Statement
To create and distribute knowledge through research, creative inquiry and learning to make our
contributiontothe society to eradicate global cyber crime. This awareness can be increased through a
seriesof seminarstomake the common man in the society ‘ALERT & AWARE’ of issues of Cyber attacks
and solutions thereof. And SAFE & SECURE transactions through online” To transfer our intellectual
findingstoenhance society in meaningful and sustainable ways. Main Mission of this study is to make
the entire society AWARE & ALERT, SAFE and SECURE transactions and knowledge on security and
safety. To give best solutions to E-commerce domain companies in the area of different kinds of
Screenings, safe and secure, trusted payment method, internal order cancellations for solving placed
orders.
E-Commerce strategy methodology
development and implementation
There has been a lot of media coverage on E-Commerce in recent years. However, the concept
of E-Commerce is still unclear to many people due to its newness. For business executives, it is
even more mysterious since there are no proven business models for generating profits.
Conducting research in the E-Commerce area reveals a few dominant trends:
 E-Commerce revenues will grow explosively.
 E-Commerce is crucial for business survival.
 E-Commerce decisions are complex.
 Consulting firms are experiencing rapid declines in key practice areas.
The implications for these trends are as follows:
 Organizations feel the need for expert advice.
 E-Commerce is the new business opportunity for consulting firms.
 Consulting firms need structured, proven, E-Commerce methodologies.
 These trends and implications are the driving forces for the project.

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Project description
For consulting firms to effectively develop E-Commerce strategies for its clients, it must have a
structured methodology custom made for this type of project. As with any methodology,
however, this E-Commerce strategy methodology will require constant refinement to
incorporate new experiences and to keep pace with change.
Thus, this project aims to develop the first version of an E-Commerce strategy methodology,
implement the methodology for a client, and make any necessary revisions to the methodology
subsequent to the client project.
Design methodology
The five phases of the project are as follows:
Scoping and planning
This phase focuses on the planning of the project’s overall direction, including the definition of
the project’s scope, objectives, and timelines. The deliverable from this phase is this Design
Plan.
Conceptual design and research
In this phase, the conceptual design of the methodology is developed and research on existing
methodologies is conducted. Research is performed from independent research firms, such as
the Gartner Group, Forrester Research, and CIO.com. These research firms sometimes publish
the methodologies that consulting firms use. Consulting firms’ websites are another source for
researching E-commerce strategy methodologies.
Development of methodology
The actual methodology is developed in this phase. Detailed descriptions of each task in the
methodology are documented, including the objectives, inputs, approach, relevant models,
applicable tools and techniques, outputs, and any references. The methodology is to be
documented in an appropriate format, be it a Word document or HTML pages.
Implementation of methodology
The methodology will be implemented with a client. This phase includes the marketing of E-
commerce strategy development services and the closing of the sale, followed by the actual
implementation.
Revision of methodology
Final touches and revisions to the methodology are made in this phase. The majority of these
revisions come from experiences on the client project. Sample reports and any additional
references are added to the methodology.

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RESEARCH DESIGN AND METHODOLOGY
Researchdesignandmethodologyformanintegral partof any researchstudy.The successful
completionof anyresearchworkisdependentonthe rightselectionof researchmethodsand
techniquestocollectall necessaryfacts,figuresanddatainformation.Forthisresearcherhastorelyon
the fieldsurveytechniqueaswell asonpublishedandunpublishedreports,records,journals,
periodicals,newspapersandmagazines.The presentstudyisconcernedwithevaluationanddescription
of adoptionpatternof E-commerce amongcustomersinIndia.Thischapterincorporatesfollowing
aspectsof researchdesignandmethodologyviz.objectives,hypotheses,datacollectionforms,pre-
testing,sample design,statistical toolsetc.Inthe presentstudyeverypossibleefforthasbeenmade to
obtaindata fromboth primaryandsecondarysources.
SOURCES OF DATA COLLECTION
The data for the study has been collected through both primary as well as secondary sources.
Primary Data - The primary data which is based on first hand information has been generated by
means of a standardized questionnaire from the customers who have beeninterviewedfrom the
select cities in India.
Secondary Data -The secondary data has been obtained from various research papers, articles,
books, doctoral thesis, dissertations, annual reports, magazines, newspapers etc. The information
has also been obtained from various websites related to the study.
SAMPLE DESIGN AND METHOD
The population for the study comprises of the computer literate customers in India and for the
purpose of the study the customers from selectcities have beenchosen as the sampling units. The
data has been obtained from the respondents through stratifiedsimple random sampling. For
making the data collection technique systematic and representative in nature, population has been
dividedinto four main strata viz.Northern, Western, Eastern and Southern India. The customers
have been surveyed from the five cities viz.Delhi, Chennai, Mumbai and Kolkata representing the
four zones of the country. Since the study is Jammu based, Jammu city from the Northern zone has
also been included in the study. The respondents have been contacted by visitingplaces in
University of Jammu, Delhi University, Jawaharlal Nehru University, Mumbai University, Kolkata

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University and Chennai University. Also select office complexes in these select cities as well as cyber
cafes were visitedfor potential respondents. Within these places respondents have been surveyed
randomly.
In order to investigate the research objectives, a sample size of 1000 customers was contacted in
five select cities i.e.200 from each city. The sample size of 1000 respondents has been found out by
applying the followingformula:
Sample size of 1000 was determinedby applying the following formula: (Malhotra, 2008, Pg. 371)
(SD) 2*Z2
n= ______________
D2
Where n stands for Sample Size; SD for Standard deviation(0.80);
Z is Confidence Level (1.96) and D is the Level of Precision (0.05) 68

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Thus, n = (0.80)2*(1.96)2/ (0.05)2
n = 983.4
n = 1000 (Approx.)
Out of 1000 questionnaires distributed,a total of 960 respondents filledup the questionnaires but
it has been found that only 927 were usable as 33 questionnaires have been found to be void
because of the incomplete data. The response rate was compiled at 92.7 % indicating a highly
favorable response. The valid questionnaires after sorting out for missing data are 180 from
Mumbai, 183 from Delhi, 176 from Kolkata, 188 from Chennai and 200 from Jammu, thus making
the exact response of 927 respondents out of the original target of 1000. Earlier studies (Suki,
Ahmad and Thyagarajan, 2002; Klopping,,Inge& McKinney, 2004; Hasslinger, Hodzic and Opazo,
2007; Alborz, Banafsheh, 2009) conducted in the fieldhave also selectedsimilar nature of samples
and thus support the choice exercisedin this research.
Findings :
1. There isno freedomtothe dealerstooperate ane-commerce site becausethe law permits
manufacturestolimitthe numberof dealersauthorizedtosell theirproductsinparticularplaces.
Dealersmaynot acceptsuch limitationwithoutafightif dealersbelievethattheyalreadyhave been
affordedthe righttosell onthe Net.
2. Manufacturersdon’thave freedomtooperate anE-commerce site because of the manufacturer's
individualagreementswithone ormore selecteddealersasnotto operate ane- commerce 231 site.It
shouldbe viewedasavertical managementandbe lawful.Howeverif amanufacturerwere toagree
witha group of dealersthatthe manufacturerwill notoperate anEcommerce site incompetitionwith
the dealers.
3. Customersdonothave whole informationaboutoperatinganecommerce site fore-buying
procedure.
4. Most of the people are unsuccessful touse Netbankingandemail accountbecause eithertheyare
ignorantor evendon’tremembertheirloginIDandpassword.
5. Plannersfail togive employeesthe whole pictureandinsuchcircumstancesthe trainingandsetting
up incentivesforworkerstoembrace the strategymayassist.
6. In case of personnel managementonlyatthe time of recruitmentandtrainingspecialskillsof internet
operationsare tobe incorporatedinthe specializations.

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7. In case of informationmanagementthere isthe processof receivingthe orders,complaintsand
suggestionsisperformedbutthere isnoproperforwardingof thisinformationreceived.Andaccurate
interpretationof the dataandsubmittingitforthe decisionmakingshouldbe properlychannelized.
8. In case of office managementE-commerce offeredasapaperlessoffice aseverytransactionis
recordedinthe computer.Paperrecordsare completelyeliminatedfromthe marketingoffice
managementinE-commerce.
9. In the job of controllinginternetordersare tobe processedproperlyandonlyafterconfirmationof
the receiptof the cash goodsare to be dispatchedcorrectlyine - commerce.
10. In case of marketingmanagementine-commerce attractive presentationof the productsonthe
website andone operatoronthe companycomputerare enoughtocarry out the transactionof E-
commerce andtheyare sufficienttoeffectthe sales.
11. Attractive andinformative webdesignsplayanimportantrole inthe developmentof anybusiness
on the account of applicable of E-commerce inthe business.The attractive andinformative website
provesto be newadditionsinthe growthof the business.
12. In staffingparticularlyinthe salesdepartmentalongwithtraditional salesman,Internetoperating
salesforce isneeded.
13. Alongwiththe traditional methodsof communicationslikeletters,telephones,Fax,intenet
negotiationswiththe targetcustomersorthe potential customerare tobe incorporatedinthe business
as a meansof communication.Thisisthe fastestmethodof communicationrequiringanall together
differentskill of teleconveniencing.
14. Productdevelopmentsandintroductionof modifiedproductuptoa greatextentdependuponthe
complaintsandsuggestionsof the consumers.Thistype of informationshouldbe carefullyprocessedas
it isa "Feedback " usedinthe designof a new product.In the traditional business,marketresearchis
233 conductedforthispurpose.InE-commerce thisinformationcanbe had fromthe consumerat the
time of dialogue withhim.
15. E-bankingwiththe advancementinthe technology,the new bankingfacilitiessuchasEFT and
InternetBankinghave provedtobe a majorbreakthroughinbankingtechnology.Ithasbecome more
sophisticatedwithenormousopportunityof vertical andhorizontal developments.Thisisall together
differentfromthe traditional bankingatthe same time itis risky.Growthof e-bankingisslow inurban
area and itis totallyabsentinthe rural area.But it istotallyabsentinthe rural area.But it hasbecome
indispensable forbigindustrialconcernsandthe multinationals.

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Suggestions:
Therefore the suggestionsprovidedinthischapterare clarifyingthe prospectsof E - commerce.
1. ManagementshouldimproveitsknowledgeaboutE - commerce process.
2. To give the trainingandinformationtocustomersforE - commerce processandoperatinganE -
commerce site.
3. To developemployee'smanagementsskills.
4. To improve the co-ordinationof producers,dealersandcustomers.
5. To give the quickonline supporttocustomers.
Conclusion :
1. In the controllingprocessresponsibilityof the businessincreasestremendouslybecause online
ordersare to be processedproperlyandonlyafterconfirmationof the receiptof the cashgoodsare to
be dispatchedcorrectly.
2. Paper recordsare completelyeliminatedfromofficemanagementinE-commerce because every
transactionisrecordedinthe computer.
3. E-commerce chargesentire procedure of marketingmanagementbecausethe attractive
presentationof the productsonthe website andone operatoronthe companycomputerisenoughto
carry on the transactionand he is sufficienttoeffectsales.
4. In information managementreceivingthe feedback,suggestions,corrections,complaintsare tobe
processedandproperforwardingof thisinformationistobe undertakenforitsaccurate interpretation
and submittingitforthe decisionmaking.
5. In the organizationa completelynewtechniqueof electronici.e.internetistobe introduced.
6. The use of E-commerce haschangedthe entire procedure of businessinE-commerece becausethe
computers,internetconnection,attractive andinformative websitesare the new additionsinany
business.
7. It has changedthe entire transactionprocedure inbankingsystem, cheque systemandcreditsystem
inE-commerce.

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8. It has beenobservedthatthe managementslackthe properabilitytoexplaintheirstrategywell to
theiremployeesresultinginmiscommunicationandignorance of objectives.
9. Major customershave nocorrect informationaboutthe use of internetandoperatingwebsitesfor
commercial purpose.
10. Producersand dealersdonotunderstandcorrecthabits,expectationsandmotivationsof the
customers.
11. The changesin the processof managementandthe changesinthe functional areasof E - commerce
add some newconceptstothe business.
12. The advertisementoncompany’swebsitesistobe made fruitful withFREDwhere "F"means
familiarity"R"- indicatesrelevance,E- representsesteemandD- denotesdifferentiation.
13. E - cash - electroniccashisanothernew conceptinonline paymentsystemsbecauseitcombines
computerizedconveniencewithsecurityandprivacyasa resultof whichitimprovesonpapercash and
it opensupa host of newmarketsand applicationinview of itsversatility.Itisanattractive alternative
for paymentoverthe internetbyreplacingcashas the principle paymentvehicle inconsumeroriented
electronicpayment.