E Business
E Business
E Business
INTRODUCTION
MEANING OF E-COMMERCE
Electronic commerce is commonly known as E-commerce consist of selling and
purchasing of service and product over electronically such as internet or in
computer networks.
Definition
SIGNIFICANCE OF E-COMMERCE
1. Set up of website is economic comparing to market retail showroom set
up
2. Easy to create global market
3. Easy to access market and product
4. E-commerce provides multiple market opportunities like purchasing and
sales etc.,
5. Pre-sale enquires through internet
6. Easy to make advertisement of product
7. Easy fund transfer
8. After sales service become easy
9. E-commerce reduces the sales cost
10.Development of technology.
11.Others
Customer research
Public relations
Customer support
Consumer
Management
Compure Accounting Behaviour Business Law
Markating Management Finance information Economics
Sciences and Auditing and and Ethics
systems
Bsycology
E-COMMERCE E-BUSINESS
1. E-commerce involves commercial 1. E-business is conduct of business
transaction done over internet. processes on the internet.
E-commerce is use of electronic E-business also includes the exchange
transmission medium that caters for of information directly related to
buying and selling of product and buying and selling of products
services
E-commerce just involves buying and E-business includes pre and post sales
selling of products and services efforts
E-commerce is narrow concept it It is a broader concept that involves
restricts only buying and selling market surveying, supply chain and
logistics management and data
mining
Sale place/method Market space network, sale Market space is store, sales
based on information based on display
2. Ubiquity
It means e-commerce is available anywhere and at anytime there is no
physical place exist no restriction of geographical and time, it creates
market space.
3. Global Reach
E-commerce and technology permits commercial transaction to cross
cultural and national boundaries far more convenient and effectively as
compare to traditional commerce as a result it increases size of market as
equal to size of world population.
6. Interactivity
E-commerce is also enhanced with calls and text messages,E-commerce
is interactive and two way communication between merchants and
consumer.
Lower Sale and Marketing Costs: The internet allows businesses to reach
many customers globally at lower costs. Thus by shifting the sale and marketing
functions to the electronic processes, the organizations can bring down greatly
the marketing overheads. For example, advertisements on the internet can cut
down the cost of printing and mailing the pamphlets or brochure. Any charge in
product specifications in the case of paper- based advertisements may mean re-
printing, how-ever in web based advertisement it may mean changes only in the
web site.
Lower Telecommunication Costs: The Internet is much cheaper than value
added networks (VANs) which were based on leasing telephone lines for the
sole use of the organization and its authorized partners. It is also cheaper to send
a fax or e-mail via the Internet than direct dialling before the coming internet,
only few organizations were using the private networks and VANs for their
EDI. The cost of installation and running these systems was very high and
beneficial only to the larger firms and enough business volumes to justify the
cost.
Information sharing: It takes only few seconds to share information over
the internet. a firm can e-mail its customers relating new products and new
offers and can solve their product related quires and welcome suggestions.
Increase in variety of goods: As the market will expand the variety of goods
available will also expand. Wide variety of goods are available than ever before.
Ensure Secrecy: the various security measures that are in built are used in E-
Commerce transactions to prevent any unauthorised access to information on
the internet for ensure secrecy they maintain encoding, encryption and
passwords.
Ecommerce Lacks That Personal Touch: Not that all physical retailers
have a personal approach, but we do know of several retailers who value human
relationship. As a result, shopping at those retail outlets is reassuring and
refreshing. Clicking on “Buy Now”, and piling up products in virtual shopping
carts.
System and data integrity: A computer virus is a program that clones itself
when an injected piece of program code is executed. it is malicious program.
data protection from the viruses that causes unnecessary delays and can clean up
all stored information must. In order to create cost effective response to the
varied technical and human threats to web site security.
Products people won’t buy online: There are various products which the
customers would like to first touch and feel and then buy it. For example:
Furniture users want to touch ant they want to sit on it, feel the texture of the
fabric.
Shopping is Social Experience: People love to shop in the mall because it
gives them an opportunity to have fun with friends and family. It’s something
online stores lack of.
Anyone one Can Set Up an Ecommerce Website: Where online storefront
providers bring the ability to set up an ecommerce store within minutes. The
lowered barriers to entry might be a great attraction to the aspiring ecommerce
entrepreneur. But for the buyer, reliability can be an issue. This could lead
customers to restrict their online purchases to famous ecommerce websites.
Too Many Competitors: If there are thousands of online stores selling
similar products, how company can attract visitors, so they actually but from it
and not from others? As the technology has boomed the competition is
increasing because more and more people are opening their businesses on
internet
Through B2B e-markets, suppliers are able to interact and transact directly with
buyers there by eliminating intermediaries and distributors.
Website following B2C business model sells its product directly to a customer.
A customer can view products shown on the website of business organization.
The customer can choose a product and order the same. Website will send a
notification to the business organization via email and organization will
dispatch the product/goods to the customer.
Website following C2C business model helps consumer to sell their assets like
residential property, cars, motorcycles etc. or rent a room by publishing their
information on the website. Website may or may not charge the consumer for its
services. Another consumer may opt to buy the product of the first customer by
viewing the post/advertisement on the website. consumer-to-consumer (C2C)
Consumers sell directly to other consumers.
www.olx.in
www.carwale.com www.gaadi.com
Peer–to–Peer(P2P)
P2P is not only a E-Commerce type, but also a technology that allows people to
share computer files and computer resources without going through a central
web server. The required software should be installed by both sides so that they
can communicate on the common platform. As from the beginning this type of
E-Commerce has been launched to the free usage, it has quite low revenue. It
consists in mutual help of consumers. The main disadvantage of this model of
transaction often entangles cyber laws.
Peer – to – to peer (P2P) technology enables the internet users to share the files
and computer resources directly without going to the central web server.
Therefore, P2P works without an intermediary.
REVENUE MODEL:
The subscription model applies to the companies that charge subscribers a fee,
normally to view text or graphical information. A range of documents can be
accessed for a period of a month or typically a year. Here, one of the main
challenges the companies are facing is, marketing to a much smaller niche
audience who are willing to pay the regular fees, as opposed to a much larger
audience that might use the services at no charge.
Here payment occurs for single access to a document, video or music clip which
can be downloaded. It may or may not be protected with a password or Digital
Rights Management.
This model relies on advertising to make money. CPM stands for "cost per
thousand" where M denotes "Mille". The site owner such as FT.com charges all
the advertisers a rate card price (for example 50 GBP CPM) according to the
number of its ads shown to site visitors. Ads may be served by the site owners'
E-BUSINESS AND ACCOUNTING 16
own ad server or more commonly through a third-party ad network service such
as Google Ad Sense as is the case with my site.
4. Revenue from CPC advertising on site (pay per click text ads):
CPC stands for "Cost Per Click". Advertisers are charged not simply for the
number of times their ads are displayed, but according to the number of times
they are clicked. These are typically text ads similar to sponsored links within a
search engine but delivered over a network of third- party sites by on a search
engine such as the Google Ad sense Network.
A company can pay to advertise a site channel or section. For example, bank
HSBC could sponsors the Money section on a media site. This type of deal is
often struck for a fixed amount per year. It may also be part of a reciprocal
arrangement, sometimes known as a "contra-deal" where neither party pays.
The data, a site owner has about its customers, is also potentially valuable since
it can said different forms of e-mail to its customers if they have given their
permission that they are happy to receive e-mail either from the publisher or
third parties. The site owner can charge for advertisements placed in its
newsletter or can deliver a separate message on behalf of the advertiser
(sometimes known as list rental). A related approach is to conduct market
research with the site customers.
This looks at the total they can charge (or cost to advertisers) for each page or
site. Through increasing the number of ad units on each page this value will
increase. This is why you will see some sites which are cluttered with ads. The
other alternative to assess page or site revenue generating effectiveness is
Revenue per click (RPC), which is also known as Earnings Per Click (EPC).
This is particularly important for affiliate marketers who make money through
commission when their visitors click through to third party retail sites such as
Amazon, and then purchase there.
Web Auction:
Online auctions are places that people can go in order to buy or sell goods or
services online for a small fee. Anyone can sell an item and anyone can bid on
an item. The highest bidder wins the auction and pay for the good or service
and then expects for to receive their winning in the next couple of days through
the mail or some other way of delivery.
The largest online auction website is E-Bay followed by other sites such as
Yahoo ad Amazon. These sites allow ordinary web citizens to sell their goods.
The sale is generally based on a system of trust, but some people are finding
profit in abusing the trust of others, while some are stretching the limits of the
law via online auctions. Below is a listing of some of the major online auction
sites on the Internet.
WEB AUCTION
Online auction is sales transaction that result from a competitive biding process
conducted over the internet
BASIC TERMINOLOGY
Online auctions are a widely accepted business model for the following reasons:
No fixed time constraint
Flexible time limits
No geographical limitations
Offers highly intensive social interactions
Includes a large numbers of sellers and bidders, which encourages a high-volume online
business
VIRTUAL COMMUNITY:
Gain knowledge from other online community members: The second benefit
of online community is that you gain knowledge from other members of the
online community you will join. Interact with other people who are members of
your online community and put their principles into practice, whenever it is
appropriate.
Maximize your presence in your online community: Keep in mind that you
are not only building a relationship when you join an online community you are
also marketing your business in a subtle way. So as a marketer be sure that your
online profile is complete, which means that you need to include more
information about yourself and of course your business.
Be wise in choosing your online community: Verify who the members are in
the online community you are planning to join. Be selective with the online
community you will join to avoid mixing in with the wrong type of
people/business. It would be to your advantage if you go with people/businesses
that are highly relevant to your business. Also be sure that the other members of
Builds relationships: The last and probably the most important benefit of
online community is that it gives you a chance to build a relationship with
people. We all know the importance of relationships when it comes to business.
And one of the least expensive ways to build a relationship with
customers/prospects is through the use of online communities. The major
comfortable your customers/prospects with your business the bigger
opportunities that you will get. Keep in mind that this relationship that you
build is not for a one time sale only but you are building a relationship through
online communities for the long term.
WEB PORTAL
WEB PORTAL:
A web portal or Public portal refers to a Web site or a service, that offers a
broad array of resources and services, such as E-Mail, forums, search engines
and online shopping malls.
A web portal is specially-designed Web page at a website which brings
information together from diverse sources in a uniform way.
The portals can be differentiated on the basis of their content and intended
users. There are different types of portals, they can be categorized into:
These are web portals which focus only on one specific industry, domain or
vertical. Vertical portals provide tools, information, articles, research and
These are web portals which focus on a wide array of interests and topics. They
focus on general audience and try to present something for everybody.
Horizontal portals try act as an entry point of a web surfer into the internet,
providing content on the topic of interest and guiding towards
Web Server
Meaning
The Hardware
Operating system software
web server software
Web Hosting
Thus web hosts are companies that provide space on a server owned or leased
for use by clients.
E-commerce Requirement
Financial Infrastructure -
i) Dependable telecommunication network
ii) Use of integrated banking software for back office and front office data
processing
iii) Use of WAN and internet for banking operations
iv) Availability of legal infrastructure supporting online payment mechanism.
V) Availability of EFT
Legal and Policy framework – policies that ensure legal certainty, security and
consumer protection for online transactions and interactions should be enacted.
These include the resolution of issues such as transactional security, electronic
contract enforceability and authentication of individuals and documentation.
E-BUSINESS AND ACCOUNTING 23
Shopping Cart
Meaning
A server is any computers