SIR C R REDDY COLLEGE, ELURU

(Autonomous)
Andhra Pradesh, India-534007
Affiliated to Adikavi Nannaya University, Rajamahendravaram
(Thrice accreditedat ‘A’ Grade by NAAC : Bengaluru)
AN ISO – 9001 : 2005 CERTIFIED INSTITUTION
DEPT OF COMPUTER SCIENCE
E– Commerce Application Development
UNIT-1

What is E-Commerce

E-Commerce, electronic commerce or internet commerce is the buying and selling

of products over the internet. It also refers to the transactions directed via the
internet. Online auctions, internet banking, payment gateways and online ticketing
are activities bounded by E-Commerce. It is expected that by 2040, all purchases
will be via E-Commerce.
E-Commerce is here to stay. Employees to handle online transactions, online
business practices are in need. They design programs for businesses to buy and sell
goods and services on the internet. Marketing is done digitally to ensure profit. E-
Commerce Automation is automating tasks and processes such that the system
executes what the business needs. The ultimate goal behind E-Commerce
automation is to simplify tasks for the end-user.
Many organizations are turning to E-Commerce owing to not only the quality
changes it brings to their business but also puts them up in the maps of the target
audience who due to the ever-increasing trend of being busy prefer to buy things
online.
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E-Commerce – Meaning, Concepts:

E-Commerce stands for electronic commerce and caters to exchange (buy or sell)
of products, services and information via internet. It is “doing business online”. It
includes any commercial activity that takes place directly between a business, its
partners, or its customers through electronic communication and digital
information processing technology.
E-Commerce offers an opportunity for performing profitable activities online. It
facilitates cooperation between different groups:

(a) Businesses sharing information to improve customer relations

(b) Organization working together to design and build new products /services;

(c) Multinational company sharing information for a major marketing

campaign.

The introduction of E-Commerce has seen a remarkable impact on the traditional

ways of doing business. It has brought producers and consumers closer together,
increased profitability by eliminating many of the costs previously encountered.

Electronic Commerce is the application of communication and information

sharing technologies among trading partners to the pursuit of business objectives.
Key element of E-Commerce is information processing. The effects of e-commerce
are already appearing in all areas of business, from customer service to new
product design. It facilitates modern types of information based business strategy
for reaching and interacting with customers such as online banking, online
shopping, online advertising and marketing, on line order taking and on-line
customer service etc.

It reduce costs in managing orders and interacting with a wide range of suppliers
and trading partners , areas that typically add significant overhead to the cost of
products and services . also E-Commerce enables the formation of new types of
information based products such as interactive games , electronic books ,and
information on demand that can be very profitable for content providers and useful
for consumers .So, E-Commerce is about doing business electronically and
encompasses many diverse activities both in the business to business market and in
the business – to- consumer market.
Activities include electronic trading of goods and services , online delivery of
digital content ,electronic fund transfers, electronic share trading , commercial
auctions collaborative design and engineering, online sourcing , public
procurement, direct consumer marketing, and after –sales service. It involves both
products (e.g. Consumer goods) and services (e.g. information services, financial
and legal services)

E-Commerce is not limited to the internet alone electronic transactions such as

discussing business over the telephone , sending a fax , withdrawing money from
an ATM machine , sending a text message confirming purchase (or) payment
through cellular phone , paying for groceries using a credit card , ordering a birth
certificate over the internet , among others , are different examples of e –
commerce.

Electronic commerce draws on technologies such as mobile commerce, electronic

funds transfer, supply chain management, internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and
automated data collection systems.

Advantages of E-Commerce:

 Global Accessibility: The business gains access to a worldwide market

instead of being limited to a certain geographical area which gives it the
advantage of a broader customer base and potential increase in sales.
 24 –Hour Availability: It can help organizations do business 7 days a week
and 24 hours a day. The time restrictions are nonexistent while conducting
business, as e- commerce empowers one to execute business transactions 24
hours a day and even on holidays and weekends. This in turn significantly
increases sales and profit.
 Increase Profits: Allowing customers to shop for the convenience and
comfort of their own homes at any time of the day or night can increase your
sales and potentially your profits while decreasing costs for your business.
 Lower Costs: One of the most tangible benefits of ecommerce is the
lowered cost. A part of these lowered costs could be passed on to customers
in the form of discounted prices.
 Lower Transaction Costs: It cut the costs on areas like documents
preparation, error detection and correction, reconciliation, mail order
catalogs, phone calls, data entry and supervision expenses.
 Lower Advertising and Marketing Costs: E-commerce can reduce
advertising and marketing costs because it is easier to update the
advertisement using software technology. The software technology is an
inexpensive advertising medium for organizations, that allows organizations
an opportunity for publicizing their products and services at minimal cost.
 Lower Labour Costs: The automation of checkout, billing, payments,
inventory managements, and other operational processes, lowers the number
of employees required to run an ecommerce setup.
 Lower Communication Cost: Most communication costs can be
significantly reduced with a combination of email, other internet tools,
phone answering machines, voice response systems, call diversion and
mobiles.
 Lower Inventory Management Costs: With e-commerce, the suppliers can
reduce costs to manage their inventory of goods because they can automate
the inventory management using web-based management systems. The
method indirectly can save their operational costs.
 No Infrastructure Cost: It also eliminates the cost and burden of
infrastructure required for conducting business. An ecommerce merchant
does not need a prominent physical location. The overhead costs to build the
 physical store front may be prevented to the suppliers who use e-commerce
as their business operation.
 Reduce Labour Costs: The labour costs can be reduced with e-commerce
because the sellers can automate their online store fronts.
 Customer Satisfaction: The accessibility and convenience of online
transactions for the customers is leading to increased customer image ,word
communication facilities not only saves money and provides greater
responsiveness, but can facilitate better supplier , customer and staff
relationships, because it can be used more often ,much more readily and
can provide so much more information at no cost.
 Time Saving: It reduces the time period involved with business process re-
engineering, customization of products to meet the demand of particular
customers , increasing productivity and customer care service .
 Create Market for Niche Products: E -Commerce is ideal for niche
products. Customers for such products are usually few. Buyers and sellers of
niche products can find it difficult to locate each other in the physical world.
But in the vast market place

i.e. the internet, even niche products could generate viable volumes.

 Target Market Segmentation: It allows the flexibility to target market

segmentation, allowing companies to focus on a select group of clients with
a competitive advantage by giving them what they want and the satisfaction
of unique needs.
 New Markets and Business Partners: E-commerce helps expand in to new
markets by virtue of its global reach. It helps organizations to gather and
compile market intelligence regarding general customers, suppliers and
customers.
  Flexibility for Adding and Changing Resources: For every organization ,
E- Commerce software allows business processes to be integrated in such a
way that the resulting system can deliver accurate, reliable information in
real time. It allows the flexibility for adding and changing resources. this
flexibility enables the organization to react quickly to new opportunities ,
reduce time to market , reduce cost and risk and better serve its customers.
The net result is a significant competitive advantage.
 Improved Customer Interaction: Keeping clients happy has now become
much more economical for the companies through their websites. By putting
information on frequently asked questions on their website, organizations
are saving costs by reducing the number of customer service representatives
 Easy Delivery of Information: Having an E-Commerce website that is user
friendly and available to vast number of clients is also helpful because it
provides easier delivery of information. Rather than calling to find our store
hours or more information about your company, your catalogue software can
display information, promotions, sales and real- time data on your products
or services.
 Faster Access to Information: E-Commerce provides organizations with
the ability to quickly share information with business partners and
customers.
 Improved Competitiveness: E-commerce enables organizations to improve
competitiveness by becoming closer to the customer. For example, many
companies are employing electronic commerce technology to improve levels
of support both before and after the transaction .

Disadvantages of E-Commerce:

1.Any one, good or bad, can easily start a business. And there are many bad sites
which eat up customers‟ money.
2.There is no guarantee of product quality.

3.Mechanical failures can cause unpredictable effects on the total processes.

4.As there is minimum chance of direct customer to company interactions,

customer loyalty is always on a check.

5.There are many hackers who look for opportunities, and thus an ecommerce site,
service, payment gateways; all are always prone to attack.

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E– commerce v/s Traditional Commerce

1.TraditionalCommerce:
Traditional commerce refers to the commercial transactions or exchange of
information, buying or selling product/services from person to person without
use of internet which is a older method of business style and comes under
traditional business. Now a days people are not preferring this as it is time taking
and needs physical way of doing business.
Example includes physical market/bazaar.
2. E-commerce :
E-commerce refers to the commercial transactions or exchange of information,
buying or selling product/services electronically with the help of internet which
is a newer concept of business style and comes under e-business. Now a days
people are preferring this as it is less time taking and does not need physical way
of doing business everything can be done with laptop or smartphone and
internet.
Example includes online shopping sites.
BASIS FOR TRADITIONAL COMMERCE E-COMMERCE
COMPARISON

Meaning Traditional commerce is a branch e-Commerce means

of business which focuses on the carryng out commercial
exchange of products and services, transactions or exchange
and includes all those activities of information,
which encourages exchange, in electronically on the
some way or the other. internet.

Processing of Manual Automatic

Transactions

Accessibility Limited Time 24×7×365

Physical Goods can be inspected physically Goods cannot be

inspection before purchase. inspected physically
before purchase.

Customer Face-to-face Screen-to-face

interaction

Scope of business Limited to particular area. Worldwide reach

Information No uniform platform for exchange Provides a uniform

exchange of information. platform for information
exchange.

Resource focus Supply side Demand side

Business Linear End-to-end

Relationship

Marketing One way marketing One-to-one marketing

Payment Cash, cheque, credit card, etc. Credit card, fund transfer
etc.

Delivery of goods Instantly Takes time

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E– Business & E– Commerce

1. E-Commerce : E-Commerce refers to the performing online commercial activities,

transactions over internet. It includes activities like buying and selling product, making monetary
transactions etc over internet. Internet is used for E-commerce. Websites and applications (apps)
are required for e-commerce. it is mainly connected with the end process of flow means
connected with the end customer.

Examples of E-Commerce are online retailers like amazon, flipkart, Myntra, paytm mall, seller
of digital goods like ebooks, online service etc.

Activities of E-Commerce are :

 Buying and selling product online

 Online ticketing

 Online Payment

 Paying different taxes

 Online accounting software

 Online customer support

2. E-Business: E-Business refers to performing all type of business activities through internet. It
includes activities like procurement of raw materials/goods, customer education, supply activities
buying and selling product, making monetary transactions etc over internet. Internet, intranet,
extranet is used in e-business. Websites, apps, ERP, CRM etc are required for e-business.

Examples of E-Business are e-commerce companies and its various internal business activities,
auction site, classified site, software and hardware developer site etc.

Activities of E-Business are:

 Online store setup

 Customer education

 Buying and selling product

 Monetary business transaction

 Supply Chain Management

 E-mail marketing
BASIS FOR E-COMMERCE E-BUSINESS
COMPARISON

Meaning Trading of merchandise, over Running business using

the internet is known as E- the internet is known as
commerce. E-business.

What is it? Subset Superset

Is it limited to Yes No
monetary transactions?

What they carry out? Commercial transactions Business transactions

Approach Extroverted Ambiverted

Requires Website Website, CRM, ERP, etc.

Which network is Internet Internet, Intranet and

used? Extranet.
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History of E– Commerce

1969: CompuServe Founded

Amidst the landmark events of 1969, the history of eCommerce in the USA – and the world –
begins in Columbus, Ohio with the launch of CompuServe, the first eCommerce company.
Because there’s no internet, the company provides computer sharing services to businesses by
sending data through phone lines (known as Electronic Data Interchange, or EDI).

1972: Computers Facilitate the First Online Sale

You may hear that the first online sale was marijuana, but this is only partially true. While
Stanford University and MIT students do use an Arpanet account to make a marijuana sale,
money and product still exchanges hands in person. So while a computer facilitates the
transaction, it’s not truly “sold over the internet.”

1976: Online Transaction Processing Introduced

As our nation celebrates its bicentennial, Atalla Technovation and Bunker Ramo Corporation
introduce products designed for secure online transaction processing, intended for financial
institutions.
1979: Electronic Shopping Invented

Ten years after the founding of CompuServe, British inventor Michael Aldrich demonstrates
how electronic shopping could work by connecting a modified television to a transaction-
processing computer via telephone line.

1983: Electronic Commerce Acknowledged

California State Assembly holds its first hearing on "electronic commerce." Testifying are
CPUC, MCI Mail, Prodigy, CompuServe, Volcano Telephone, and Pacific Telesis. A year later,
California's Electronic Commerce Act would pass, imposing certain requirements on systems
designed "to conduct the purchase of goods and services via a telecommunications network."

1984: CompuServe Opens the Electronic Mall

One of the first examples of online retail, CompuServe introduces the Electronic Mall in 1984,
allowing its users to purchase products from approximately 100 different merchants. Check out
these vintage news clips highlighting this new way to shop. Think it will catch on?

1990: WorldWideWeb Launches

The first web browser launches, which will be a catalyst for online shopping as internet users can
quickly find what they’re looking for and retailers can reach a broader audience.

1994: The First Secure Online Transaction is Made

A full ten years after the launch of the Electronic Mall, Netscape 1.0 releases. Featuring a
protocol called Secure Socket Layer (SSL), it keeps both the sending and receiving side of online
transactions secure through encryption. A number of third-party credit card processing
companies launch shortly after as the internet becomes a truly commercial medium.

The first ever secure online transaction using encryption takes place on August 11, 1994, when
Phil Brandenberger purchases the Sting CD Ten Summoners’ Tales through NetMarket, as
reported in the New York Times story “Attention Shoppers: Internet is Open.”

1995: Amazon, eBay, and the Online Marketplace Boom

Online marketplaces begin opening up. This includes Jeff Bezos’ Amazon, initially designed for
selling books, and Pierre Omidyar’s AuctionWeb, the first online auction site which would soon
become known as eBay.

1998: PayPal Launches

Originally introduced as Confinity, PayPal debuts as a money transfer tool. By 2000, it would
merge with Elon Musk’s online banking company and mark its rise in popularity.
1999: Global eCommerce reaches $150 Billion

Startups proliferate, with entrepreneurs being seduced by the get-rich-quick promise of the
internet. Of course, the good times won’t last forever...

2000: The Dotcom Bust and Online Advertising

The bubble bursts with the NASDAQ falling 75% from March 2000 to October 2002, erasing
most of the gains made since the internet took off. Many online and technology entities declare
bankruptcy, including Webvan, an early grocery delivery service.

Despite the bust, Google AdWords is introduced as a way for eCommerce companies to
advertise through short-text ad copy and display URLs. Pay-per-click (PPC) advertising efforts
of online retailers takes off.

2005: eCommerce Makes a Comeback

eCommerce bounces back from the bust big time, and Cyber Monday (the Monday after Black
Friday) is introduced to boost online holiday purchases. In addition, Amazon launches Amazon
Prime, giving members free 2-day shipping within the United States and making expedited
shipping a consumer expectation. Today, there are approximately 142 million Prime members in
the United States.

2006: Online Shopping Platforms Increase

Shopify as we know it today is founded by Tobias Lütke, Daniel Weinand, and Scott Lake,
making it easy for merchants to create online stores. Many other eCommerce platforms, such as
Magento and BigCommerce, quickly enter the space and make a name for themselves.

2012: Food Shopping Goes Virtual

Though the aforementioned Webvan and other grocery delivery services failed or struggled in
the past, food shopping finally finds its groove in 2012, with the founding of Instacart. Instacart
sends shoppers to local stores to pick out groceries that consumers order online. Today, with
advances in cold warehousing and delivery, online food shopping is big business.

Also in 2012, fulfillment solutions provider The Fulfillment Lab is founded by Rick Nelson,
giving eCommerce business owners further insight into their inventory, new methods of
customizing packaging, and more ways to increase sales.

2017: Ecommerce Remains Unstoppable

As brick-and-mortar sales decline, global e-commerce transactions soar, generating $29.267

trillion, including $25.516 trillion for B2B transactions and $3.851 trillion for B2C sales.
2020: The COVID-19 Boost

The coronavirus pandemic forces many physical stores to close their doors, and lockdowns keep
many citizens quarantined at home. To purchase essentials and combat boredom, people embrace
online shopping. According to data from IBM’s U.S. Retail Index, the pandemic accelerated the
shift away from physical stores to digital shopping by roughly five years.

***************

EDI – Importance, features

EDI stands for Electronic Data Interchange. EDI is an electronic way of transferring business
documents in an organization internally, between its various departments or externally with
suppliers, customers, or any subsidiaries. In EDI, paper documents are replaced with electronic
documents such as word documents, spreadsheets, etc.

EDI Documents

Following are the few important documents used in EDI −

 Invoices

 Purchase orders

 Shipping Requests

 Acknowledgement

 Business Correspondence letters

  Financial information letters

Steps in an EDI System

Following are the steps in an EDI System.

 A program generates a file that contains the processed document.

 The document is converted into an agreed standard format.

 The file containing the document is sent electronically on the network.

 The trading partner receives the file.

 An acknowledgement document is generated and sent to the originating organization.

Advantages of an EDI System

Following are the advantages of having an EDI system.

 Reduction in data entry errors. − Chances of errors are much less while using a
computer for data entry.

 Shorter processing life cycle − Orders can be processed as soon as they are entered into
the system. It reduces the processing time of the transfer documents.

 Electronic form of data − It is quite easy to transfer or share the data, as it is present in
electronic format.

 Reduction in paperwork − As a lot of paper documents are replaced with electronic

documents, there is a huge reduction in paperwork.

 Cost Effective − As time is saved and orders are processed very effectively, EDI proves
to be highly cost effective.

 Standard Means of communication − EDI enforces standards on the content of data

and its format which leads to clearer communication.

**************

E-Commerce Overview

E-Commerce or Electronics Commerce is a methodology of modern business, which addresses

the need of business organizations, vendors and customers to reduce cost and improve the quality
of goods and services while increasing the speed of delivery. Ecommerce refers to the paperless
exchange of business information using the following ways −

 Electronic Data Interchange (EDI)

 Electronic Mail (e-mail)

  Electronic Bulletin Boards

 Electronic Fund Transfer (EFT)

 Other Network-based technologies

Features

E-Commerce provides the following features −

 Non-Cash Payment − E-Commerce enables the use of credit cards, debit cards, smart
cards, electronic fund transfer via bank's website, and other modes of electronics
payment.

 24x7 Service availability − E-commerce automates the business of enterprises and the
way they provide services to their customers. It is available anytime, anywhere.

 Advertising / Marketing − E-commerce increases the reach of advertising of products

and services of businesses. It helps in better marketing management of products/services.

 Improved Sales − Using e-commerce, orders for the products can be generated anytime,
anywhere without any human intervention. It gives a big boost to existing sales volumes.

 Support − E-commerce provides various ways to provide pre-sales and post-sales

assistance to provide better services to customers.

 Inventory Management − E-commerce automates inventory management. Reports get

generated instantly when required. Product inventory management becomes very efficient
and easy to maintain.

 Communication improvement − E-commerce provides ways for faster, efficient,

reliable communication with customers and partners.

***********

Challenges & Limitations of E– Commerce

1. Security
One of the main limitations of eCommerce is security. In most cases, people are hesitant to
provide their personal and financial details in spite of advanced data encryption security systems
in place. Moreover, there are some websites that do not have the capability and features installed
to authenticate transactions. As such, there are instances of fraudulent activities. The fear of
providing financial information like credit card details hinders the growth of eCommerce.
2. Lack of Privacy
To some extent, the privacy of a customer is compromised in eCommerce. You need to provide
your personal details, such as an address, telephone number, and so on to the seller. There are
still lots of sites that do not have the advanced technology to protect sensitive information.
Moreover, there are also sites that illegally collect consumer statistics without permission. This is
one reason why people get skeptical while using eCommerce.

3. Tax Issue
In the case of different geographical locations, sales tax becomes an issue. Many a time sellers
have faced problems in the computation of sales tax. Moreover, physical stores have a risk of
losing business if online transactions are exempted from taxation.

Ship Faster, Cheaper, Smarter

4. Fear
In spite of the popularity, there still resides an element of doubt in the mind of people when it
comes to online shopping. This is because the customer cannot physically examine the product
and is not sure about the features and attributes. This is why a lot of people prefer shopping from
physical stores.

5. Product Suitability
As already mentioned, it is not possible for people to physically examine the product in
eCommerce. In many cases, the original product may not match the picture or specifications in
the eCommerce site. This absence of ‘touch and feel’ creates a discouraging effect.

6. Cultural Obstacles
As the process of eCommerce encompasses customers across the globe, the habits, traditions,
and culture differ. There may also be linguistic problems and all these may lead to issues
between the seller and buyer.

7. High Labor Cost

In order to get the whole eCommerce and delivery process right, a specialized workforce is
required. To get all these in the right shape, companies have to shed a good amount of money
and employ a talented pool of people.

8. Legal Issues
A lot of legal compliances and cyber laws need to be taken care of in an eCommerce business.
These regulations may vary from country to country. All these reasons deter businesses from
going electronic.
9. Technical Limitations
eCommerce requires advanced technology platforms for better performance. Some limitations,
such as lack of proper domain, network and software issues, and so on can affect the seamless
performance of an eCommerce site.

10. Huge Technological Cost

Last but not the least; a lot of money needs to be invested to be built up the technical
infrastructure needed to run an eCommerce business. Moreover, they need to be upgraded based
to keep abreast with the changing technology.

11. Delivery Guarantee

Many people fear that their product might not be shipped or the website might be a fraud.
Businesses need to work to build customer trust with reviews, testimonials, etc. to add more
value to their website.

In order to minimize these limitations, an eCommerce business should have a proper business
plan and implement them with proper strategies.
 Unit-2
Business models of E – Commerce

Business models of E – Commerce:

Business - to - Business
A B2B business model sells its products to an intermediate buyer who then sells
the product to the final customer. As an example, a wholesaler places an order
from a company's website and after receiving the consignment, sells the end
product to the final customer who comes to buy the product at one of its retail
outlets.
Business - to - Consumer
A B2C business model sells its products directly to a customer. A customer can
view the products shown on the website. The customer can choose a product and
order the same. The website will then send a notification to the business
organization via email and the organization will dispatch the product/goods to the
customer.

Consumer - to - Consumer

A C2C business model helps consumers 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.

Business - to - Government
B2G model is a variant of B2B model. Such websites are used by governments to
trade and exchange information with various business organizations. Such websites
are accredited by the government and provide a medium to businesses to submit
application forms to the government.
Business-to-employee (B2E)
Electronic commerce uses an intra business network which allows companies to
provide products and/or services to their employees. Typically, companies use B2E
networks to automate employee-related corporate processes. B2E portals have to
be compelling to the people who use them. Companies are competing for eyeballs
of their employees with eBay, yahoo and thousands of other web sites. There is a
huge percentage of traffic to consumer web sites comes from people who are
connecting to the net at the office.

Government - to – Citizen(G2C):
Governments use G2C model approach citizen in general. Such websites support
auctions of vehicles, machinery, or any other material. Such website also provides
services like registration for birth, marriage or death certificates. The main
objective of G2C websites is to reduce the average time for fulfilling citizen’s
requests for various government services.

Government - to – Business:
Governments use B2G model websites to approach business organizations. Such
websites support auctions, tenders, and application submission functionalities.

*********
Influencing factors of successful E– Commerce
There are many aspects that can alter the success of an E-commerce business, and
pointing them out is not easy at times. Entrepreneurs have tried different tactics to
get their business up and running but not many have succeeded. The article
expounds on the main aspects that contribute to the success of an e-commerce
business.
 Brand Name:
Create a Memorable Brand Name: Like Amazon, eBay, Flip kart, etc., your
business name and domain name should be simple (maybe just one word) and
catchy. It should be easy to remember and pronounce. The reason is, most of the
customers want to shop the things in brand stores. Therefore, choosing a
memorable brand name is the key first step in starting the ecommerce business
 Mobile Friendly Site
More people today are using their mobile phone to purchase products online.
Research shows that mobile users worldwide have reached close to 3 billion.
People are no longer using laptops, desktops for interaction and online shopping.

Designing your e-commerce website to be mobile friendly is crucial. Remember to

use a simple and clear mobile version to enhance easy navigation. Buttons on the
page should have sufficient space for a person’s finger to press on.
 Search Bar
This enables customers to quickly find what they want and save time. Buyers don’t
like skimming over pages to find what they what to buy. An advanced search bar
turns your site into an automatic search engine for your products. Giving result
suggestions from the typed search helps the client find what they are looking for.
 Convenient Payment Method
Any eCommerce web design needs a payment process. When developing your
website, ensure that you pick a convenient payment platform for your users. One of
the major difficulties e-commerce sites face is having a reliable source of payment.
Setting multiple payment plans can cater to your users depending on your
audience. Consider simple facts like the geographic location of your clients.
 Quality Images
This is the first experience that buyers have with your product, make it count.
Present good quality pictures so that the client can be able to see what they want.
Provide multiple pictures of the product for clients to view all the features.
Include a photo of the product being used or in context. This will make the
customers relate to the experience of using the product. Zooming in feature
eliminates any haziness of the product in terms of quality, design, and color.
 Live Chats
Live chat makes it easier for clients to make inquiries and get answers in real time.
It is convenient and time-saving compared emailing a question or calling the
support team. Direct interaction with the client can not only increase sales of the
store but also form a trusting relationship with the customer.
Direct feedback shows the client that the site is reliable and trusting. This will
motivate them to return to shop more. Other than that, it will cut down the cost of
handling a bunch of buyers’ queries. Ensure that the hotline and live chat are
visible in the site and available 24/7.
  Clear Return Policy
When outlining a return policy, first ensure that they are no chances of returns.
People return products because they are unsatisfied. Make sure that the products on
the site are clearly described to the customers.
A well-structured return policy should be customer friendly. The purpose of it is to
make the client feel confident that they can buy the product and they can get a
refund they are not pleased with it. The policy should aim at seeking customer’s
satisfaction rather than making profits.
Write the policy in a language that the buyers will understand, simple and clear, no
policy jargon. It is advisable not to include return cost, but if there are state them
out. Clarify the terms of refund, will it be cash or credit.
Even though there are struggles, running an ecommerce business amidst these
competitions is feasible. For this, you have to implement the following successful
ecommerce strategies.
 Easy Checkout
A poorly designed checkout is the prime conversion killer to your e-commerce site.
You risk losing up to 67% of your clients if the checkout process is long and
confusing. Customer will end up leaving without making a purchase.
To prevent this make the checkout process simple and short. Do not present
additional costs at the last minute. Give shipping information clearly and make
sure the loading time of your site is short.
.
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Architectural Framework for Electronic-Commerce:
Architectural framework of e-commerce means the synthesizing of various existing
resources like DBMS, data repository, computer languages, software agent-based
transactions, monitors or communication protocols to facilitate the integration of
data and software for better applications.

The architectural framework for e-commerce consists of six layers of functionality

or services as follows:
1.Application Services.
2.Brokerage Services, Data or Transaction Management.
3.Interface and Support Services.
4.Secure Messaging, Security and Electronic Document Interchange.
5.Middleware and Structured Document Interchange
6.Network Infrastructure and the Basic Communication Services.

1. Applications Services: In the application layer services of e-commerce, it is

decided that what type of e-commerce application is going to be
implemented. There are three types of distinguished e-commerce
 applications i.e., consumer to business application, business-to-business
application and intra-organizational application.
2. Brokerage Services, Data or Transaction Management: This layer is
rapidly becoming necessary in dealing with the voluminous amounts of
information on the networks. This layer works as an intermediary who
provides service integration between customers and information providers,
given some constraint such as low price, fast services or profit maximization
for a client. For example, a person wants to go to USA from India.

The person checks the sites of various airlines for the low-price ticket with the best
available service. For this he must know the URLs of all the sites. Secondly, to
search the services and the best prices, he also has to feed the details of the journey
again and again on different sites.
If there is a site that can work as information broker and can arrange the ticket as
per the need of the person, it will save the lot of time and efforts of the person.
This is just one example of how information brokerages can add value.
Another aspect of the brokerage function is the support for data management and
traditional transaction services. Brokerages may provide tools to accomplish more
sophisticated, time-delayed updates or future-compensating transactions.

3. Interface and Support Services: The third layer of the architectural

framework is interface layer. This layer provides interface for e-commerce
applications. Interactive catalogs and directory support services are the
examples of this layer. Interactive catalogs are the customized interface to
customer applications such as home shopping. Interactive catalogs are very
similar to the paper-based catalog. The only difference between the
interactive catalog and paper-based catalog is that the first one has the
additional features such as use of graphics and video to make the advertising
more attractive.
4. Secure Messaging, Security and Electronic Document Interchange: In
any business, electronic messaging is an important issue. The commonly
used messaging systems like phone, fax and courier services have certain
problems like in the case of phone if the phone line is dead or somehow the
number is wrong, you are not able to deliver the urgent messages. In the case
of courier service, if you want to deliver the messages instantly, it is not
possible as it will take some time depending on the distance between the
source and destination places. The electronic messaging has changed the
way the business operates. The major advantage of the electronic messaging
is the ability to access the right information at the right time across diverse
work groups.
5. Middleware and Structured Document Interchange: The enormous
growth of networks, client server technology and all other forms of
 communicating between/among unlike platforms is the reason for the
invention of middleware services. The middleware services are used to
integrate the diversified software programs and make them talk to one
another.
6. Network Infrastructure and the Basic Communication Services:We
know that the effective and efficient linkage between the customer and the
supplier is a precondition for e-commerce. For this a network infrastructure
is required. The early models for networked computers were the local and
long distance telephone companies. The telephone company lines were used
for the connection among the computers.

As soon as the computer connection was established, the data traveled along that
single path. However, circuit switching does not act well for sending data across a
large network. In order to implement circuit switching, point-to-point connections
for each pair of senders/ receivers has to be established which is both expensive
and difficult to manage.
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Web Based E-Commerce Architecture:
Web server and web client are the two main elements in all internet applications.
The web client sends requests and the web server listens to those requests and
responds/accomplishes the required task. The web server and web client
communicate with each other through a common protocol.

The request response communication between a web client and a web server
•A web client (or browser) sends requests to a web server. Every retrievable piece
of information on the web is identified by a URL, which includes the hostname, its
location, port and the protocol used to get it.
•For example, in the URL http://www.yahoo.com/docs/index. Html, the
communication protocol is HTTP; the hostname is www.yahoo.com. The port
number takes default number, which is TCP port 80 for HTTP. The path and file
name for the resources to be located is “/docs/index.html”.
•The web server is responsible for document storage, manage and retrieval. The
web server interprets the request message, and returns the document requested (or
an error message) back to the requesting client.
•The browser interprets and presents the document. The browser is responsible for
document presentation.
The language that web clients and servers use to communicate with each other is
called hypertext transfer (HTTP). All web clients and servers must be able to speak
HTTP in order to send and receive hypermedia documents.
Web-based E-commerce is one of the fastest-growing segments of the technology
that defines the business strategy. Web-based E-commerce provides easy and
better communication between geographically separated buyers and sellers. E-
commerce is a way of doing business by enabling better interaction among
customers, business partners and business relationship managers using electronic
tools.
The Web provides an array of electronics tools such as e-mail and Web pages for
E-commerce and its related processes. Web-based E-commerce continues to
improve convenience and versatility using increased processing power and
expanded cellular capabilities and makes it more reachable to the customers.
To design Web-based E-commerce architecture, the following steps are performed:
1. Planning for Web-based E-Commerce architecture.
2. Understanding the roles of buyers and sellers.
3. Analyzing the requirements of buyers and sellers.
4. Resolving the issues in Web-based E-Commerce.
1. Planning for Web-based E-Commerce Architecture: The basic idea of
designing and building of any architecture is not only to describe the
computational steps but also the description of task. To design the
architecture of a Web-based system, the following points must be kept in
mind:
 Understanding the various roles and the kinds of users to ensure that the
maximum users can get the maximum advantages of the system to
accomplish their aim Understanding the functions of the different modules
of the system and their interfaces,
 Recording the links of the transaction details of the business in a database.
The transaction details contain information such as transition type,
purchased item information, i.e., price, item identification and stock
information.
 Specifying the trust model for the system: Every system must have at least
an implicit trust model that helps maintain the security of the system by
providing the details of the relationships between the components.
2. Understanding the Roles of Buyers and Sellers:As a Web-based E-
commerce system is used by different users for different purposes, the roles
 of the buyers and the sellers need to be considered. The roles consideration
helps you to recognize the various operations in designing and analyzing the
architecture of-a Web-based Ecommerce system that satisfies all the
requirements of the business.
 Roles of a Buyer: In Web-based E-commerce, customers have different
roles with respect to the services they require or the action they perform. A
buyer plays the roles of a Specifier, an approver and a recipient. A specifier
selects' the hem to be "purchased, an approver is the person who agrees for
purchase and a recipient is the person who gets the delivered items and
services. Buyers' roles are also distinguished according to the relation with
the seller such as anonymous buyers and member buyer.

An anonymous buyer is a walk-in buyer who uses the system to deal with the seller
only once for a simple purchase. A member buyer establishes a membership with
the seller by repeatedly purchasing goods.
 Roles of a Seller:On the other side of Web-based E-commerce, the sellers
also have many roles on the basis of the responsibility assigned to the person
in the company.
The most important business roles are as follows:
•Business Manager: They are responsible for all the business approaches such as
deciding on-line products and services, determining pricing and establishing
business relationships. The success of on-line business mostly depends on this role.
•Internet Commerce Architect and the Systems Analyst: They create and
manage the contents of the transaction process, the technical needs of the buyer
and all the outer business requirements into a system design.
•Content Designer: They are concerned about the look and feel of the Web- based
E-commerce system such as graphic designs, page layout and user experience.
•Content Author: They work within the design of the content designer by creating
and adapting the product information to a form.
•Implementer: An implementer implements the software and the program, which
are used to work with the Web-based E-commerce system.
•Database Administrator: They are responsible for maintaining the correctness,
consistency and integrity of data stored in the database.
•Sales and Marketing Team: They focus on all the efforts to promote Internet
based E-Commerce.
•Buyer Service Representative: Buyer service representatives handle all the
buyer dealings.

3. Analyzing the Requirements of Buyers and Sellers:The different

requirements of buyers and sellers affect Web-based E- commerce
applications. .Web-based E-commerce systems include a client system, a
merchant system, a transaction system and a payment gateway. A client
 system is a computer system that is connected directly or indirectly to the
Internet and always used by buyers for browsing and purchasing items. A
merchant system is the computer system that contains the electronic
catalogue of the sellers of online goods or products. A transaction system is
the computer system that processes an order and stores the information about
the transactions. A payment gateway is the computer system that controls
the financial networks. for example, authorization and settlement of credit
cards used by the buyers.

 Requirements of a Buyer: The Web-based E-commerce architecture is

influenced by the structure and presentation of the Website and the facilities
provided by the Web browsers that are commonly used by buyers to deal
with sellers. Client wallets are used for different payment methods, such as
cash and E-payment by keeping track of the transactions. These payment
methods require additional processing such as cryptographic operations.
This application is used by only a few buyers, so they are irrelevant for most
of the Web-based E-commerce systems.

Some buyers use third-party systems such as server-side wallets that are Websites
used for buyer payment credential registration for the sellers without using special
client software.

 Requirements of a Seller:In Web-based E-commerce architecture, the

seller is involved in all the stages of E-commerce sales life cycle. Two
things are common for every Web- based E-commerce architecture: one,
creative presentation of products and two, payment service. Some of the
seller requirements are stated as follows:
 Content management system is responsible for the creation and
management of dynamic updated contents of the Website and the
whole Web presentation.
 Transaction processing system is used to track the transaction
information such as item, buyer, and cost of item, type of the payment
and status of the service.
 Payment processors control the money movement.
 Fulfillment systems are used to handle the packing and the shipping
orders of the deliverable products.

4. Resolving the Issues in Web-Based E-Commerce: Before designing an

Internet-based E-commerce application, a developer must consider the
various issues that will arise if the problems are not handled on time.
Security is a very important aspect of any Web application; therefore, if a
 developer does not consider points of security, the application might fail to
deliver the desired services to its full potential. On the Internet, buyers are
always concerned about their social security number and credit card details.
Other than E-commerce security, there are some other issues, which are
1.Security issues
2.General issues
3.Legal issues

 Payment facilities to accept credit card information or online

electronic cash
 Secure interfaces are needed to prevent un-authorized access to critical
systems
 Redesigned business processes are also needed to accommodate online
interaction via email and online transactions.
Trading via internet offers following benefits:
 Timeliness
 Reduced Marketing Costs

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Internet Commerce
Internet Commerce is the use of the Internet for all phases of creating and
completing business transactions. Various surveys suggest that the amount of
business conducted online will increase ten-fold over the next few years, from
around $500 million in 1996 to over $6 billion in 2000. However, this still
represents less than 10 per cent of the business conducted by mail order.

In our view too much focus of electronic commerce to date has been put on
carrying out the final transactional phases - the ordering and payment. While such
a perspective is all right when there are established supply chains for regular and
routine purposes, this overlooks the wider perspective. It is often said, that the
formal placement of an order is preceded by as many as 30 previous information
exchanges. Thus, in its broadest sense we view Internet Commerce as also
including:

 The full sales and marketing cycle - for example, by analysing online
feedback to ascertain customer's needs
 Identifying new markets - through exposure to a global audience through
the World Wide Web
 Developing ongoing customer relationships - achieving loyalty through
ongoing email interaction
  Assisting potential customers with their purchasing decision - for
example by guiding them through product choices in an intelligent way
 Providing round-the-clock points of sale - making it easy for buyers to
order online, irrespective of location
 Supply Chain Management - supporting those in the supply chain, such as
dealers and distributors, through online interaction
 Ongoing Customer Support - providing extensive after-sales support to
customers by online methods; thus, increasing satisfaction, deepening the
customer relationship and closing the selling loop through repeat and
ongoing purchases.

his wider perspective of Internet Commerce - as an ongoing iterative relationship

that uses email, discussion lists, and other Internet facilities as well as the World
Wide Web - is the strategy of most successful 'Netrepreneurs'. As in other
marketing, the main categories of Internet Commerce are business-to-business and
business-to-consumer.