Electronic Commerce (E-Commerce) refers to the buying and selling of goods and services using the internet. It covers various models like B2B, B2C, C2C, and C2B.
E-Commerce is defined as any commercial transaction conducted electronically over the internet.
Example:
Amazon, Flipkart - B2C Models
Alibaba - B2B Marketplace
Trade Cycle in E-Commerce includes the following stages:
Electronic markets facilitate online exchange of goods and services through digital platforms.
EDI is a system that allows the exchange of business documents between organizations electronically in a standard format.
Example:
Purchase orders, invoices, shipping documents
Internet Commerce involves the use of the internet to carry out E-Commerce transactions. It includes secure payment gateways, online catalogs, and real-time inventory management.
E-Commerce is not limited to online shopping; it includes digital marketing, CRM, ERP integration, mobile commerce, and more.
Business strategy adapts in the E-age by embracing online operations, reducing cost, and enhancing reach. Strategic planning involves IT alignment, market analysis, and risk management.
This model helps analyze a company's activities and identify where value can be added through E-Commerce.
Primary Activities:
- Inbound Logistics
- Operations
- Outbound Logistics
- Marketing and Sales
- Services
Porter's Five Forces:
- Threat of new entrants
- Bargaining power of suppliers
- Bargaining power of buyers
- Threat of substitutes
- Industry rivalry
Strategy planning involves analyzing business goals, IT capability, and execution through digital tools and platforms.
Successful E-Commerce implementation needs infrastructure setup, payment systems, logistics, and constant evaluation using KPIs like conversion rate, bounce rate, and customer feedback.
Companies create internal systems for employees to buy from approved vendors efficiently.
JIT ensures goods arrive exactly when needed, reducing storage costs and increasing efficiency.
Models include one-to-many, many-to-one, and many-to-many auctions with features like bidding and negotiation.
EDI evolved from VANs to Internet-based solutions with XML, reducing cost and increasing compatibility.
ERP and CRM integration helps synchronize data and improve business operations.
Software agents assist in automated negotiation, order tracking, and dynamic pricing.
Involves SEO, email campaigns, webinars, and digital catalogs targeted at other businesses.
Include selecting partners, managing IT infrastructure, ensuring cybersecurity, and measuring ROI.
Components include standards (X12, EDIFACT), translation software, communication protocols, and document formats.
EDI increases efficiency, reduces manual errors, and improves data accuracy in transactions.
Example:
Walmart uses EDI for inventory updates and purchase orders with suppliers.
EPS facilitate financial transactions over electronic systems. They are crucial for E-Commerce operations.
EFT allows transfer of money from one bank account to another electronically, using systems like NEFT, RTGS.
Payment gateways authenticate, authorize, and process transactions securely via card networks like Visa/Mastercard.
Wallets store payment info securely, enabling fast checkouts and peer-to-peer transactions.
Plastic cards embedded with chips used for secure, contactless transactions.
Example:
Metro Travel Cards, Prepaid Meal Cards
Represents money exchanged electronically. It is anonymous and untraceable in certain implementations.
Involves identifying and mitigating fraud risks using firewalls, tokenization, AI monitoring systems.
Focuses on secure architecture, real-time processing, and integration with banking infrastructure.
Compliance with PCI-DSS, RBI guidelines, and KYC/AML laws is mandatory for EPS providers.
Automated inventory, supply chain management, and real-time data sharing improve efficiency.
Online shopping, digital catalogs, order tracking, and CRM enhance B2C and B2B transactions.
Online banking, insurance, education, and consulting via web-based platforms for better reach.
Includes net banking, mobile banking, ATMs, UPI, and chatbot-based customer services.
MOOCs, e-learning platforms, LMS (Learning Management Systems), and virtual classrooms.
OTT platforms, digital music stores, and live-streaming services providing digital media content.
Protects online assets through firewalls, SSL certificates, antivirus, intrusion detection, etc.
Encryption secures data by converting it into unreadable form, while decryption restores original data.
Example:
Plaintext: Hello
Encrypted (Caesar Cipher +3): Khoor
Ensures authenticity and integrity of electronic documents using private key encryption.
Monitors and controls incoming/outgoing network traffic to prevent unauthorized access.
Provides encrypted link between web server and browser for safe data transmission.
Standard protocol to ensure secure credit card transactions in EC platforms.
Strategic planning involves goals, business models, competitive analysis, and alignment with technology.
Performance is measured using KPIs like traffic, conversion rate, ROI, average order value, bounce rate.
Important for compliance and trust. Includes intellectual property, consumer protection, and taxation.
In India, IT Act 2000 governs EC transactions. Covers digital signatures, cyber crimes, and data protection.
Regulations to prevent cyber crimes, ensure security, and protect privacy. Includes penalties and legal procedures.
Protects creations of the mind like inventions, literary and artistic works, symbols, and designs.
ICANN manages domain names. Disputes resolved via UDRP (Uniform Domain-Name Dispute-Resolution Policy).
GST in India applies to online goods and services. Sellers must comply with invoicing, registration, and filing rules.