6 chapter 06 e comerce

Chapter 6 E-commerce Page 10

Chapter -06

Electronic Commerce

Source: http://mashable.com/2012/11/26/twitter-black-friday/

Source: http://www.sunwebcare.com/servicesweb-development/e-commerce-solutions/


6.1 Introduction to Electronic Commerce.

Electronic commerce, commonly known as e-commerce, is the buying and selling of

product or service over electronic systems such as the Internet and other computer

networks. Electronic commerce draws on such technologies as electronic funds transfer,

supply chain management, Internet marketing, online transaction processing, electronic

data interchange (EDI), inventory management systems, and automated data collection

systems. Modern electronic commerce typically uses the World Wide Web at least at one

point in the transaction's life-cycle, although it may encompass a wider range of

technologies such as e-mail, mobile devices and telephones as well.

E-commerce is an entire online process of developing, marketing, selling, delivering,

servicing, and paying for products and services transacted on internetworked, global

marketplaces of customers, with the support of a worldwide network of business

partners.1

E-commerce

Source: http://www.luutaa.com/solutions/e-commerce-systems

Many Bangladeshi companies currently distribute their images through the Internet to

clients all over the world, but the monetary transactions take place through conventional


means. Some companies put messages on bulletin board, on ' internet yellow pages' with

email links, and sometimes web pages, but there never is a place to submit a credit card.

This is because currently the government does not permit credit card charges over the

internet. However, the ISPs in Bangladesh do have the technology for e-commerce, and

are anticipating governmental approval within the next year.

E-commerce sites needed too be hooked up to a merchant bank account. A merchant

bank account allows a company to accept and process credit card transactions. All

businesses that use electronic credit cards need to be hooked up to their merchant

account. For example, in a grocery store, when one swipes a card through the card swipe

machine, machine is hooked up to the grocery store's merchant account.

6.2 Define e-commerce. What are the B2B, B2C, C2C e-commerce? Explain.

Electronic commerce encompasses the entire online process of developing, marketing,

selling, delivering, servicing, and paying for products and services. The Internet and

related technologies and E-commerce web sites on the World Wide Web serve as the

technology and business platform for E-commerce among internet worked communities

of customers and businesses, including the use of Internet technologies to improve and

integrate the supply chain relationships and process among business partners.

a) Business -to Business (B2B) E-Commerce. This category of electronic commerce

involves both electronic business marketplaces and direct market links between

businesses. For example, amy companies offer secure Internet or extra net E-commerce


web sites for their business customers and suppliers. Others may rely on electronic data

interchange (EDI) via the Internet or extranets for computer-to computer exchanges of E-

commerce documents with their larger business customers and suppliers. Also very

important are B2B E-commerce portals that provide auction and exchange markets for

businesses.

b) Business-to Consumer (B2C) E-Commerce. In this form of electronic commerce,

businesses must develop attractive electronic marketplaces to entice and sell products and

services to consumers. For example, many companies offer E-commerce web sites that

provide virtual storefronts and multimedia catalogs, interactive order processing, secure

electronic payment systems, and online customer support.

c) Consumer-to -Consumer (C2C) E-Commerce. The huge success of online auctions

like e-Bay, where consumers (as well as businesses) can buy and sell with each other in

an auction process at an auction web site, makes this E-commerce model an important E-

commerce business strategy. Thus, participating in or sponsoring consumer or business

auctions is an important E-commerce alternative for B2C or B2B E-Commerce.

Electronic personal advertising of products or services to buy or sell by consumers at

electronic newspaper sites, consumer E-Commerce portals, or personal web sites is also

an important form of C2C E-commerce.

Source: http://iis100.tripod.com/s11.htm


6.3 Define e-commerce. Write importance of e-commerce in business.


servicing, and paying for products and services transacted on internet worked, global

marketplaces of customers, with the support of a worldwide network of business partners

E-commerce has been involved in developing high traffic solutions which are PCI

compliant and engineered for running profitable online stores.

The PCI Security Standards Council is an open global forum for the ongoing

development, enhancement, storage, dissemination and implementation of security

standards for account data protection.

E-Commerce solutions cannot run alone. It needs marketing strategy to drive traffic, and

then with traffic it needs proper UI/UX for user to find, compare, and review the product

easily and finally a very smooth checkout to process payments. Sounds so simple but

requires a lot more efforts to make it convert.


Ecommerce (or electric commerce) refers to the buying and selling of goods and services

via electronic channels, primarily the Internet. Online retail is decidedly convenient due

to its 24-hour availability, global reach and generally efficient customer service.

Electronic commerce is generally considered to be the sales aspect of e-business. It also

consists of the exchange of data to facilitate the financing and payment aspects of

business transactions.

E-commerce can be divided into:

E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes

gathered into a "virtual mall"

The gathering and use of demographic data through Web contacts and social

media

Electronic Data Interchange (EDI), the business-to-business exchange of data

E-mail and fax and their use as media for reaching prospects and established

customers (for example, with newsletters)

Business-to-business buying and selling

The security of business transactions

Sun web-care specializes in ecommerce web design, online stores and shopping carts and

has designed many successful e-commerce websites that are all running custom shopping

carts to automate the purchase of products online. We offer full online e-commerce

gateways that make it possible for sales to go smoothly from online purchase to direct

deposits into your business account.

Although we can create a custom online store to meet your needs, we have provided a

short list of some of the most popular e-commerce

features below.

Some of the key features our online stores provide:

Unlimited products and categories

Thumbnail and full size product display

Advanced search options

Shipping prices and tax calculated in order

Ability to add/edit/delete products

Email notifications

Sun web-care specializes in ecommerce web design,

online stores and shopping carts and has designed

many successful e-commerce websites that are all

running custom shopping carts to automate the purchase of products online. We offer full

online e-commerce gateways that make it possible for sales to go smoothly from online

purchase to direct deposits into your business account.


E-Commerce is generally thought of as the ability for a website to accept and process

credit cards in exchange for goods or services. ECommerce is also sometimes thought of

as conducting business over the Web. In the more traditional sense, e-commerce deals

with both accepting and processing credit cards where e-commerce software lists prices

for products or services, includes a shopping cart and the ability to accept personal

information and credit card information.

The actual processing of the credit card is done by a merchant account that hooks into the

site owner's bank account for the money to be deposited. The combination of the

shopping cart software and the merchant account make up an e-commerce enabled

website.

6.4 What is the future of e-Commerce in Bangladesh? Explain.


servicing, and paying for products and services transacted on internet worked, global

marketplaces of customers, with the support of a worldwide network of business partners

Competitive advantages determine whether a company can move forward. E-commerce

is the right tool for gaining competitive advantage nowadays. Business now goes online.

Some restrict the definition of e-commerce only to internet enabled transactions while

some others defined broadly saying not only internet rather telecommunication and

telecommunication based tools are also involved in ecommerce activities. In Bangladesh

perspective, the broader definition is accepted to all.

Like traditional commerce, e-commerce does not involved only in buying and selling of

goods and services rather includes inter-company and intra-company functions like

negotiations and transactions, manufacturing and marketing etc. using email, Electronic

Data Interchange (EDI), fax, file transfer, video conferencing etc. Depending on the

involvement with electronic means, a company can be either a complete or partial e-

commerce user. Usually e-commerce is done in four forms: Business to Business (B2B),

Business to Consumer (B2C), Consumer to Business (C2B) and Consumer to consumer

(C2C). However, Business to Government (B2G) transaction may also exist.

In the year 1997, private Internet Service Providers (ISP) launched Internet in

Bangladesh. Since then, the infrastructural development in the sector of

telecommunication has helped spread the Internet network around the country. Right now

more than 6.5 million people are using Internet in the country with the help of around 200

registered ISPs and dial-up services and the cost of using Internet is low. The increasing

number of user of Internet creates more opportunity of e-commerce in the recent years.

In order to cope with the present world, almost all of the financial organizations and

international businesses in Bangladesh enter in the information highway through hosting

website. Banks and other financial organizations have started online transactions like

fund transfer, payment etc.


6.5 What is online Banking (or Internet banking or E-banking)? Explain.

Online banking (or Internet banking or E-banking) allows customers of a financial

institution to conduct financial transactions on a secure website operated by the

institution, which can be a retail or virtual bank, credit union or building society.

To access a financial institution's online banking facility, a customer having personal

Internet access must register with the institution for the service, and set up some

password (under various names) for customer verification. The password for online

banking is normally not the same as for telephone banking. Financial institutions now

routinely allocate customer numbers (also under various names), whether or not

customers intend to access their online banking facility. Customer numbers are normally

not the same as account numbers, because a number of accounts can be linked to the one

customer number. The customer will link to the customer number any of those accounts

which the customer controls, which may be cheque, savings, loan, credit card and other

accounts. Customer numbers will also not be the same as any debit or credit card issued

by the financial institution to the customer.

To access online banking, the customer would go to the financial institution's website,

and enter the online banking facility using the customer number and password. Some

financial institutions have set up additional security steps for access, but there is no

consistency to the approach adopted. Online banking facilities offered by various

financial institutions have many features and capabilities in common, but also have some

that are application specific.

The common features fall broadly into several categories:-

A bank customer can perform some non-transactional tasks through online banking,

including -

viewing account balances

viewing recent transactions

downloading bank statements, for example in PDF format

viewing images of paid cheques

ordering cheque books

download periodic account statements

Downloading applications for M-banking, E-banking etc.

Bank customers can transact banking tasks through online banking, including -

Funds transfers between the customer's linked accounts

Paying third parties, including bill payments (see, e.g., BPAY) and

telegraphic/wire transfers

Investment purchase or sale

Loan applications and transactions, such as repayments of enrollments

Register utility billers and make bill payments

Financial institution administration


Management of multiple users having varying levels of authority

Transaction approval process

the process of banking has become much faster

6.6 Define Electronic Fund Transfer (EFT) Systems. Explain.

Electronic funds transfer (EFT) is the electronic exchange, transfer of money from one

account to another, either within a single financial institution or across multiple

institutions, through internet and computer-based systems.

The term covers a number of different concepts:

Wire transfer via an international banking network

Cardholder-initiated transactions, using a payment card such as a credit or

debit card

Direct deposit payment initiated by the payer

Direct debit payments, sometimes called electronic checks, for which a

business debits the consumer's bank accounts for payment for goods or

services

Electronic bill payment in online banking, which may be delivered by EFT

or paper check

Transactions involving stored value of electronic money, possibly in a

private currency

Electronic Benefit Transfer

6.7 What is E-commerce Payment System? Explain.

An Electronic commerce payment system facilitates the acceptance of electronic payment

for online transactions. Also known as a sample of Electronic Data Interchange (EDI), e-

commerce payment systems have become increasingly popular due to the widespread use

of the internet-based shopping and banking.


Over the years, credit cards have become one of the most common forms of payment for

e-commerce transactions. In North America almost 90% of online B2C transactions were

made with this payment type. Turban et al. goes on to explain that it would be difficult

for an online retailer to operate without supporting credit and debit cards due to their

widespread use. Increased security measures include use of the card verification number

(CVN) which detects fraud by comparing the verification number printed on the signature

strip on the back of the card with the information on file with the cardholder's issuing

bank. Also online merchants have to comply with stringent rules stipulated by the credit

and debit card issuers (Visa and MasterCard) this means that merchants must have

security protocol and procedures in place to ensure transactions are more secure. This can

also include having a certificate from an authorized certification authority (CA) who

provides PKI (Public-Key infrastructure) for securing credit and debit card transactions.

Despite widespread use in North America, there are still a large number of countries such

as China, India and Pakistan that have some problems to overcome in regard to credit

card security. In the meantime, the use of smartcards has become extremely popular. A

Smartcard is similar to a credit card; however it contains an embedded 8-bit

microprocessor and uses electronic cash which transfers from the consumers card to the sellers device. A popular smartcard initiative is the VISA Smartcard. Using the VISA Smartcard you can transfer electronic cash to your card from your bank account, and you

can then use your card at various retailers and on the internet.

There are companies that enable financial transactions to transpire over the internet, such

as PayPal. Many of the mediaries permit consumers to establish an account quickly, and

to transfer funds into their on-line accounts from a traditional bank account (typically via

ACH transactions), and vice versa, after verification of the consumer's identity and

authority to access such bank accounts. Also, the larger mediaries further allow

transactions to and from credit card accounts, although such credit card transactions are

usually assessed a fee (either to the recipient or the sender) to recoup the transaction fees

charged to the mediary.

The speed and simplicity with which cyber-mediary accounts can be established and used

have contributed to their widespread use, although the risk of abuse, theft and other

problemswith disgruntled users frequently accusing the mediaries themselves of wrongful behavioris associated with them.

1 O Brien, James A.(2004). Management Information Systems, New delhi:Tata McGraw-Hill Publication Co. Ltd.p.218

6 chapter 06 e comerce

Documents