E-Commerce

Taught By- TEJASVI V PAWAR

 Main Activities in E-Commerce
● Registration
● Information Search
● Electronic Data Interchange (EDI)
● Negotiations
● Placing order
● Payment
● Logistics
● After-Sales Service
v
 Scope of E-Commerce
● Electronic Markets
1. Retail and Online Marketplaces (Amazon and Flipkart)
2. Niche Marketplaces (Nykaa)
3. Cross-Border E-Commerce (Shein)
4. Food Delivery and Grocery
● Electronic Data Interchange
● Internet Commerce
1. Emerging Technologies in E-Commerce (IKEA and Amazon Go)
v
2. B2B E-Commerce, B2C E-Commerce, B2G E-Commerce
 Examples of E-Commerce
● An individual purchases a book on the Internet.
● A government employee reserves a hotel room over the Internet.
● A business calls a toll free number and orders a computer using the seller's interactive telephone
system.
● A business buys office supplies on-line or through an electronic auction.
● Retailer orders merchandise using an EDI network or a supplier's extranet.
● A manufacturing plant orders electronic components from another plant within the company using
the company's intranet.
● An individual withdraws funds from an automatic teller machine (ATM).
● Accepting credit cards for commercial online sales
v● Driving information through a company via its intranet
● Driving manufacturing and distribution through a value chain with partners on an extranet
● Selling to consumers on a pay-per-download basis, through a Web site, etc
 Functions of E-Commerce
● Online Storefront – Amazon, eBay, Walmart
● Payment Processing – PayPal, Stripe, Square
● Order Fulfillment – Zara, Amazon (Prime Delivery), FedEx eCommerce services
● E-Marketing – Nike, Sephora, HubSpot
● E-Advertising – Coca-Cola, Pepsi, Airbnb
● E-Banking – Chase Bank, Revolut, Bank of America
● E-Learning – Coursera, Udemy, Khan Academy
● Mobile Commerce – Starbucks, Amazon (Mobile App), Uber Eats
● Customer Relationship Management – Shopify, Salesforce, Zoho CRM
v
● Data Analysis – Netflix, Spotify, Google Analytics
● Cross-Channel Integration – Apple, IKEA, Target
 Benefits/ Features of E-Commerce
● Lower Operational Costs - Amazon
● Facilitates Promotion - Flipkart
● Product and Price Comparison - Amazon, Flipkart, and Myntra
● Real-Time Analytics - Shopify
● Enables Easy Exports - Razorpay
● Creation of Global Value Chains - Alibaba
● Datafication - MyGlamm
● Ubiquity - Amazon
v● Change the Course of Industry and Markets - Netflix
● Optimum Use of Resources - Walmart
● Invention of Disruptive Technology - Netflix
 Benefits/ Features of E-Commerce
● Speedy Transactions - Paytm
● Quick Delivery - Amazon (One-Day Delivery), Ferns and Petals, Porter
● Use of New Techniques to Target Consumers - Amazon
● 24X7 Availability - Amazon
● Global Reach - Alibaba
● Scalability - Amazon
● Reviews and Ratings - Flipkart
● Door-to-Door Service - Amazon
v● One-Stop Option - BigBasket
● Personalized Experience - Domino's Pizza
● Encourages Impulse Buying - Zomato
 E-Commerce Business Strategies For Marketing, Sales And Promotions
● Customer Feedback Forms - Amazon's follow-up emails
● Daily Giveaways, Coupons, Contests - H&M's social media giveaways on Instagram
● Encouraging Bookmarking - Booking.com's personalized travel recommendations
● Utilizing Surveys - Airbnb's post-stay discount surveys
● Showcasing Awards and Testimonials - Tesla's website highlights industry awards and customer
testimonials
● Implementing Online Chat - Shopify's live chat support for merchants
● Offering Product Tours - IKEA's virtual room tours
v
● Utilizing Video Content - Sephora's YouTube makeup tutorials
● Building Relationships via Social Media - Gymshark's engagement on Instagram
● Streamlining Checkout Process - Apple's one-click checkout
 E-Commerce Business Strategies For Marketing, Sales And Promotions

● Providing Detailed Product Descriptions - Zappos' size guides and FAQs

● Implementing Retargeting - ASOS' personalized Facebook retargeting ads
● Harnessing Email Marketing - Airbnb's personalized accommodation recommendations
● Optimizing Social Media Marketing - Glossier's targeted Facebook ads
● Developing a Mobile App - Starbucks' app with push notifications and loyalty rewards
● Focusing on SEO - Moz's content optimization for search engines
● Optimizing Website Layout - Nordstrom's A/B testing for seamless navigation
● Engaging in Influencer Marketing - Revolve's collaborations with fashion influencers
v
● Exploring Affiliate Marketing - Amazon's affiliate program for partners
● Implementing Personalization Strategies - Spotify's personalized playlists
● Utilizing Virtual Reality (VR) Technologies - Warby Parker's virtual try-on feature
 E-Commerce Sales Product Life Cycle (ESLC) Model

ESLC Model provides a structured framework for understanding the evolution and challenges faced by
e-commerce businesses as they navigate through different phases of growth and maturity in the online
marketplace. The E-Commerce Sales Product Life Cycle (ESLC) Model outlines six distinct stages that
an e-commerce business typically progresses through.

● Seed (Development) Stage

● Start-up (Introductory) Stage
● Growth Stage
● Establishment (Maturity) Stage
v● Decline Stage
● Exit Stage
 B2C E-Commerce
● B2C (Business-to-Consumer) E-Commerce involves direct sales of goods and services from
businesses to individual customers through online platforms.
● Examples include retail, digital services, and subscriptions.

Characteristics of B2C E-Commerce

● User-Friendly Interfaces
● Personalization
● Multiple Payment Options
● Mobile Optimization
● Wide Product Range (Amazon)
v ● Customer Reviews and Ratings (Tripadvisor)
● Fast and Flexible Delivery (Zomato-Blinkit)
● Return and Refund Policies (Myntra)
● Social Media Integration (Instagram Shopping)
 Challenges in B2C E-Commerce
● Cybersecurity and Data Privacy (2019 Flipkart Dataleak)
● Intense Competition (Snapdeal in India, Amazon in China)
● Logistics and Delivery Issues (Meesho)
● Customer Retention (Shopclues)
● Payment Failures and Frauds
● High Return Rates (Myntra reported high returns during its “End of Reason Sale” )
● Building Customer Trust (Meesho)
● Managing Customer Expectations
v
● Cross-Border Challenges (e-Bay)
● Technology Adaptation (Etsy)
 B2B E-Commerce
B2B e-commerce refers to the exchange of goods, services, or information between businesses rather
than between businesses and consumers. It typically involves transactions between manufacturers,
wholesalers, distributors, and retailers conducted through online platforms.

Characteristics of B2B E-Commerce

● Real-Time Inventory Updates
● Larger Order Volumes
● Detailed Analytics and Reporting
● Recurring Purchases ● Customer Support Channels
● Customized Pricing ● Scalability
● Personalized Product Catalogs ● Multi-Currency and Multi-Language
● Complex Decision-Making Process Support
● Robust Security Measures
v ● Integration with Enterprise Systems
● Credit and Payment Terms ● Automation Capabilities
● Mobile Accessibility
● Bulk Discounting and Tiered Pricing
● Advanced Supply Chain and Logistics
● Multiple Account and User Roles
Management
 B2G E-Commerce
B2G (Business-to-Government) eCommerce refers to the practice of businesses selling products or
services directly to government agencies through digital platforms. This model leverages technology
to streamline procurement, manage contracts, and simplify transactions between businesses and
government entities.

Characteristics of B2G E-Commerce

● Centralized Procurement Portals
● Regulatory Compliance
● Bulk and Long-Term Contracts
● Transparent Bidding and Tendering
v ● Digital Payment and Invoicing
● Niche Product and Service Markets
● Environmentally and Socially Responsible
● Procurement
● Real-Time Tracking and Reporting
 B2G E-Commerce
Characteristics of B2G E-Commerce
● Customized Solutions for Government Needs
● Lengthy Sales Cycle
● Emphasis on Trust and Credibility
● Focus on National Security and Data Privacy
● Performance-Based Contracts
● International Collaboration and Trade Agreements
● Integration with Emerging Technologies
● Transparent Reporting and Auditing Requirements
● Diversity and Inclusion Initiatives
v ● Focus on Public Interest and Social Impact
● Heavy Documentation and Bureaucracy
● Local Supplier Preferences
 World wide web
● World Wide Web was created by Timothy Berners Lee in 1989 at CERN in Geneva.
● World wide web came into existence as a proposal by him, to allow researchers to work together
effectively and efficiently at CERN. Eventually it became World Wide Web.
● World wide web is an information space where documents and other web resources are identified
by URIs, interlinked by hypertext links, and can be accessed via the internet.
● Hypertext documents are commonly called web pages, which are primarily text documents
formatted and annotated with the Hypertext Markup Language (HTML).
● Web pages may contain links to images, video and software components that are rendered to users
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of a web browser application.
● It is to be noted that all internet servers are part of the World Wide Web.
● WWW is a global collection of documents and other resources linked by Hyperlinks and URLs
 Reasons for building own website
● Brand Control and Customization
● Showcasing Products, Services, and
● Improved Credibility and Professionalism
Portfolios
● Increased Online Visibility
● Competing in the Digital Age
● Ownership of Content and Data
● Analytics and Insights
● 24/7 Accessibility
● Building Customer Loyalty
● Cost-Effective Marketing
● Independence from Third-Party
● Direct Communication with Customers
Platforms
● E-commerce Opportunities
v ● Reinforcing Branding Through Content
● Scalability for Growth
● Global Reach
 Website design principles
● User-Centered Design
● Responsive Design
● Visual Hierarchy
● Fast Load Times
● Intuitive Navigation
● Consistency in Design
● Call-to-Action (CTA) Focus
● Accessibility
● Search Engine Optimization (SEO)
● Minimalism and Clarity
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● Emphasis on Content
● Feedback and Interactivity
 Related New use of Technologies
● Chatbots & Virtual Assistants- H&M’s chatbot on Kik
● AI-Powered Fraud Detection-
● Augmented Reality (AR)- L’Oréal’s AR Makeup Try-On (ModiFace), IKEA Place App
● Virtual Reality (VR)-
● Voice Commerce- Walmart Voice Ordering
● Personalization - Amazon , Netflix
● Social Commerce- Instagram Checkout
● Storefront Digitizing- Nike’s House of Innovation

v
● Beacon Technology- Macy’s Beacon Program
● Self-Checkout Technology- Amazon Go, McDonalds
● Drive-in Grocery Store- Walmart Grocery Pickup
● Drone Technology for Delivery- Amazon Prime Air
 C2C E-Commerce
Consumer-to-Consumer (C2C) e-commerce is a business model where consumers sell goods or
services directly to other consumers using an online platform. These platforms act as
intermediaries, facilitating transactions between individuals.
Characteristics of C2C E-Commerce
● Peer-to-Peer Transactions
● Use of Third-Party Platforms
● Auctions & Negotiation
● Lower Costs & Minimal Business Operations
● Variety of Products & Services
v ● Trust-Based Transactions
● Payment Processing & Security
● Direct Communication Between Buyers & Sellers
● Limited Customer Support & Refund Policies
● Sustainability & Second-Hand Market Growth
 C2B E-Commerce
The C2B (Consumer-to-Business) model is a type of business transaction where individual consumers
offer products or services to businesses. In contrast to the more traditional B2C (Business-to-Consumer)
model, where businesses sell goods or services to consumers, C2B inverts this relationship and allows
consumers to create value for businesses..
Characteristics of C2C E-Commerce
● Consumers Provide Value to Businesses
● Platforms Facilitating the Exchange
● Flexibility and Customization
● Consumer Control Over Offerings
● Direct Interaction Between Consumers and Businesses
v ● Monetization of Consumer Contributions
● Consumer-Centric Feedback Loop
● Use of Consumer Data for Business Growth
● Peer-to-Peer Business Transactions
● Innovation Through Consumer Input
 Hacking
● Hacking refers to the process of identifying and exploiting vulnerabilities in
computer systems, networks, or software to gain unauthorized access or
control.
● While often associated with cybercrime, hacking can also be ethical when used
to improve security.
● A Hacker is a person who finds and exploits the weakness in computer
systems and/or networks to gain access.
● Hackers are usually skilled computer programmers with knowledge of
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computer security.
 Types of Hackers
● White Hat Hackers (Ethical Hackers) – Kevin Mitnick
● Black Hat Hackers (Malicious Hackers) – Albert Gonzalez
● Grey Hat Hackers – Khalil Shreateh
● Script Kiddies – Mafiaboy (Michael Calce): Launched DDoS attacks on major websites like
Amazon and CNN as a teenager.
● Hacktivists – Anonymous
● State-Sponsored Hackers – Lazarus Group (North Korea)
● Cyber Terrorists – ISIS-affiliated hackers
●v Whistleblower Hackers – Edward Snowden: Exposed NSA’s global surveillance programs by
leaking classified documents.
● Green Hat Hackers – Aspiring Hackers
● Blue Hat Hackers – Microsoft BlueHat Program
 Web Vandals
● The term "web vandals" can refer to individuals who engage in malicious activities on the internet,
such as hacking, spreading malware, or defacing websites.

● Web or Digital vandals can be defined as defacing the digital assets of a company or individual to
cause nuisance or permanent damage.

● Web vandalism involves unauthorized actions that disrupt, damage, or deface websites and online
platforms.

● In Web /digital vandalism rather than physically damaging technology, digital vandals hack the
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technology to create issues within the technology itself.

● Digital vandalism can target a single computer or an entire company, creating simple pranks within
websites or altering masses of data and information.
 Forms of Web Vandals
● Website Defacement

● Distributed Denial of Service (DDoS) Attacks: A DDoS attack floods an e-commerce website with
traffic, overwhelming its servers and causing the website to crash or become inaccessible.

● Credential Stuffing & Account Takeover: This happens when attackers use stolen usernames and
passwords from a data breach (e.g., from another platform) to try and log into e-commerce sites,
often with the goal of stealing customer data or making fraudulent purchases.

● Malware Injection & Script Injections: Hackers inject malicious code or scripts (such as JavaScript
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or PHP) into e-commerce websites. This can redirect customers to phishing sites, steal sensitive
customer information, or cause damage to the site's functionality.

● Fake Reviews and Reputation Manipulation

 Forms of Web Vandals
● Credit Card Skimming: This type of web vandalism involves the insertion of malicious scripts
(skimming code) on e-commerce sites to steal customers’ credit card details during the checkout
process.
● Phishing & Social Engineering Attacks: Phishing attacks trick customers into revealing personal
information, such as login credentials or payment details, often by pretending to be a legitimate
e-commerce site. Attackers may use emails, fake login pages, or pop-ups to gather sensitive data.
● Product Counterfeiting and Fraudulent Listings: In 2018, Alibaba's platform AliExpress faced issues
with counterfeit goods being sold through third-party sellers. Though the platform took steps to crack
down on such products, counterfeit items in categories like electronics and apparel were a concern
for both sellers and customers.
●v Damaging Computer Hardware: Under this vandalism occurs when a disk drive is removed in an
attempt to disable a computer system. This could happen internally by some employee or externally
from a thief attempting to steal company data or intellectual property.
 E-mail Abuse
● E-mail abuse refers to the malicious or improper use of email systems for various harmful
purposes.
● It typically involves sending unsolicited, inappropriate, or harmful emails that can affect
individuals, organizations, or online systems.
● Email abuse is one of the most common forms of online misconduct and can lead to security
breaches, financial loss, and reputational damage.

Forms of E-mail Abuse

● Spam (Unsolicited Bulk Emails) ● Scams and Fraudulent Emails

v● Phishing ● Business Email Compromise (BEC)

● Spoofing ● Social Engineering via Email
● Malware Distribution ● Data Breaches via Email
● Email Bombing ● Harassment and Cyberbullying
 E-CRM
● E-CRM (Electronic Customer Relationship Management) refers to the use of digital
technologies to manage and enhance customer relationships.
● It enhances customer interactions, improves service quality, and boosts customer
satisfaction by automating processes, analyzing data, and providing personalized
experiences.
● It integrates online communication channels such as websites, social media, email,
chatbots, and mobile apps with traditional CRM systems to create a seamless customer
v experience.
● Businesses use E-CRM to personalize interactions, optimize customer journeys, and
increase loyalty through automated workflows, AI-driven insights, and multi-channel
engagement.
 Operational E-CRM

● Operational E-CRM focuses on automating and improving customer-facing processes, making

interactions smoother and more efficient.
● It includes sales, marketing, and customer service automation to enhance engagement, streamline
operations, and boost customer satisfaction.

Components of operational E-CRM

1. Sales Automation
v2. Marketing Automation
3. Service Automation
 Analytical E-CRM
● Analytical E-CRM focuses on collecting, analyzing, and interpreting customer data to gain insights
into customer behavior, preferences, and trends.
● Analytical E-CRM enables companies to predict customer needs, segment audiences effectively,
and personalize interactions, ultimately leading to increased customer loyalty and revenue growth.

Components of Analytical E-CRM

1. Customer Data Collection & Integration

2. Customer Segmentation & Profiling
v
3. Predictive Analytics & AI-Based Insights
4. Customer Feedback & Sentiment Analysis
 Collaborative E-CRM
● Collaborative E-CRM focuses on improving communication and information sharing between
different departments within a business, as well as with external stakeholders like customers,
suppliers, and partners.
● It ensures that all teams—such as sales, marketing, and customer support—have access to the same
customer data, enabling a seamless and personalized customer experience.

Components of Collaborative E-CRM

1. Multi-Channel Communication
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2. Internal Collaboration & Data Sharing
3. Customer Self-Service Portals
4. Partner Relationship Management (PRM)
 Social E-CRM
● Social E-CRM (Social Customer Relationship Management) integrates traditional CRM with social
media platforms like Facebook, Twitter, Instagram, and LinkedIn to enhance customer engagement,
brand loyalty, and business growth.
● It enables businesses to interact with customers in real-time, gather insights from social
interactions, and personalize customer experiences.

Components of Social E-CRM

1. Social Listening & Sentiment Analysis

v
2. Social Media Customer Engagement
3. Influencer & Community Management
4. Social Media Analytics & Personalized Marketing
 Mobile E-CRM
● Mobile E-CRM (Mobile Customer Relationship Management) refers to the use of mobile devices,
applications, and platforms to manage customer relationships efficiently.
● It enables businesses to engage with customers in real-time, provide personalized experiences, and
enhance accessibility to CRM functionalities on-the-go.

Components of Mobile E-CRM

1. Mobile CRM Applications

2. SMS & WhatsApp Marketing
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3. Push Notifications & In-App Messaging
4. Location-Based Services (LBS) & Geo-Targeting
 Software Piracy
● Software Piracy refers to the unauthorized use, duplication, or distribution of software
programs.
● In the context of e-commerce, software piracy can impact businesses that rely on software to
manage their online platforms, customer data, and transactions.
● It undermines intellectual property rights and can result in significant financial losses for
software developers and e-commerce companies.
● Copying software to multiple computers or sharing it without multiple licenses is considered
v illegal software piracy.
● The majority of software today is purchased as a single-user license, meaning that only one
computer may have that software installed on it at one time
 Types of Software Piracy
● End-User Piracy -A company purchasing a single-user license for an accounting software but
installing it on multiple workstations, thereby violating the licensing terms.
● Counterfeit Software- Street vendors or unauthorized online marketplaces selling “genuine”
copies of Microsoft Office or Windows at a fraction of the legitimate cost, which are often
packaged with poor documentation and no support.
● Cracked Software- Popular PC games like “Call of Duty” or professional software like Adobe
Photoshop often appear on torrent sites in “cracked” forms that allow users to bypass
v activation keys and use the software for free.
● Online Piracy- Websites like The Pirate Bay or other torrent sites frequently host
downloadable copies of operating systems, design software, and games, making it easy for
users to obtain pirated versions online.
 Types of Software Piracy
● Client-Server Overuse -magine a company licensed to allow 10 concurrent users for its
enterprise resource planning (ERP) software. However, in practice, the company has 30
employees logging in throughout the day via a central server. This overuse violates the
licensing agreement because more than 10 users are simultaneously accessing the software,
which can lead to legal and financial repercussions if audited by the software vendor.
● Hard-Disk Loading - This occurs when a business sells new computers with illegal copies of
software loaded onto the hard disks to make the purchase of the machines more attractive.
v● Softlifting- Some educational institutions have been reported to use a single license of
software in computer labs, allowing more users to access it simultaneously than the license
permits.
 Patents in E-Commerce
● Patents are a form of intellectual property protection that grants the inventor exclusive rights
to an invention, process, or technology for a specific period (usually 20 years).
● In the context of e-commerce, patents protect software, online platforms, business methods,
and technology innovations that are integral to a business's success.
● Patents are crucial in protecting innovative technologies and business methods in the
e-commerce sector.
● They help companies safeguard their intellectual property, providing exclusive rights to use or

v
implement certain processes, systems, or technologies.
● Role: Protection of Unique Technologies, Encouraging Innovation, Enhancing Consumer
Confidence, Defending Market Position, Attracting Investments and Partnerships, Monetizing
Intellectual Property, Preventing Infringement and Legal Disputes
 Types of Patents in E-Commerce
● Utility Patents - Amazon One-Click Ordering
● Design Patents- Apple’s iPhone
● Business Method Patents- Amazon’s Marketplace
● Software Patents- Google Search Algorithm, E-commerce Fraud Detection
● Patent for Data Protection and Security- SSL Encryption Technology, Two-Factor
Authentication
● Patent for Mobile E-Commerce Technologies-Mobile Payment Systems: Google pay and
v Apple pay
● Patent for Logistics and Delivery Innovations- Amazon’s Drone Delivery System, Ocado, a
UK-based online grocery store, patented its automated warehouse robot systems that help
process orders more efficiently.
 EDI (Electronic Data Interchange)
● Electronic Data Interchange (EDI) is the electronic exchange of business documents and
data between organizations in a standardized format, replacing paper-based
communication.
● EDI allows companies to securely transmit data, such as purchase orders, invoices,
shipping notices, and payment details, directly from one computer system to another
without the need for human intervention.\
● EDI functions by electronically transmitting standardized business documents between
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organizations through a secure, structured format.
 EDI Process
Document Creation: A business creates an electronic document (e.g., purchase order) within its internal
system (e.g., ERP).

Translation: The EDI software or translator converts the document into a standardized format (e.g.,
ANSI X12 or EDIFACT).

Transmission: The document is sent over a communication network (such as a VAN or the internet) to
the trading partner's system.

Receipt & Acknowledgment: The trading partner's EDI system receives the document, processes it, and
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acknowledges receipt. This can include verifying the document's integrity and checking for errors.

Document Integration: The trading partner’s system (e.g., ERP or accounting system) then integrates
the EDI document, updating inventory, customer orders, and other necessary business operations.
 How EDI Works in E-Commerce
● EDI Data Formats and Standards:Businesses use standardized data formats like ANSI X12
(commonly used in the U.S.), EDIFACT (widely used in Europe), and XML to ensure that the data
is understandable by both sender and recipient systems.
● EDI Components: Trading Partners, EDI Translator, EDI Communication Network, EDI Software

EDI Communication Methods:

1. VAN (Value-Added Network): A private, third-party network that facilitates the secure
exchange of EDI documents between businesses.
v2. Direct EDI: An internet-based direct communication system between trading partners, which
is faster and more cost-efficient.
3. Web EDI: A cloud-based version of EDI that allows smaller businesses to send and receive
EDI documents over the web, without the need for expensive software.
 EDI and Paperless trading
● Electronic Data Interchange (EDI) plays a pivotal role in enabling paperless trading, which
refers to the exchange of business documents and transactions electronically without the need
for physical paperwork.
● EDI has made it possible for businesses to exchange various forms of data, such as purchase
orders, invoices, shipment details, and contracts, in a standardized, secure, and automated
manner.
● This shift to digital documents significantly reduces the reliance on traditional paper-based
v processes and promotes more efficient, cost-effective, and environmentally friendly business
operations.
 Contributions of EDI to Paperless Trading
● Elimination of Paper Documents
● Automated Data Processing
● Improved Accuracy and Reduced Errors
● Faster Transactions
● Enhanced Security
● Cost Savings
● Lower Costs and Improved Resource Management
v● Better Visibility and Tracking
● Environmental Benefits
● Regulatory Compliance
 E-Marketing
● E-Marketing, also known as digital marketing, refers to the use of online platforms and digital
technologies to promote products or services to consumers.
● It encompasses various strategies that help businesses reach a wider audience, engage customers
effectively, and drive sales.
Techniques
● Search Engine Optimization (SEO)
● Content Marketing
● Social Media Marketing
● Email Marketing
● Pay-Per-Click (PPC) Advertising
v● Affiliate Marketing
● Influencer Marketing
● Mobile Marketing
● Viral Marketing
● Reputation marketing
 Role of Social Media in E-Commerce
● Brand Awareness & Visibility
● Targeted Advertising
● Influencer Marketing
● Social Commerce (Direct Selling on Social Media)
● Customer Engagement & Support
● User-Generated Content & Reviews
● Flash Sales & Promotions
v● Live Streaming & Product Demonstrations
● Data-Driven Insights & Analytics
 Managing the E-Enterprise
● Business Model & Strategy
● Technology & Infrastructure
● Digital Marketing & Customer Acquisition
● E-Commerce & Payment Solutions
● Cybersecurity & Data Privacy
● Supply Chain & Logistics Management
● Customer Experience & Support
● Data Analytics & Business Intelligence
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● Remote Workforce & Collaboration
● Innovation & Future Trends
 Comparison between Conventional and E-organization
Aspect Conventional Organization E-Organization
Structure Hierarchical, rigid structure Flat, flexible, and technology-driven

Operations Manual processes, paperwork-based Automated, digital workflows

Communication Face-to-face meetings, letters, phone calls Emails, video conferencing, chat apps
Work
Environment Physical office spaces Remote work, cloud-based collaboration
Customer Online chat, AI-powered bots, self-service
v Interaction In-person service, phone support portals

Market Reach Limited to local or regional markets Global reach through the internet
Sales & E-commerce, online payments, digital
Transactions Physical stores, cash transactions wallets
 Comparison between Conventional and E-organization

Aspect Conventional Organization E-Organization

Marketing Print media, billboards, TV ads Digital marketing, social media, SEO
Higher overhead costs (rent, utilities, Lower costs due to automation and
Cost Structure
staff) remote operations
Data Big data, real-time analytics, cloud
Paper records, limited data analysis
Management storage

v
 Types of payment systems
● Cash Payment System – Street vendors accepting cash.
● Credit Card Payment System – Visa, MasterCard, American Express.
● Debit Card Payment System – RuPay, Maestro, Visa Debit.
● Online Banking (Net Banking) System – ICICI Net Banking, SBI Online.
● Mobile Payment Systems – Google Pay, PhonePe, Paytm.
● Digital Wallets & E-Wallets – PayPal, Amazon Pay, MobiKwik Wallet.
● UPI (Unified Payments Interface) System – BHIM UPI, Google Pay, Paytm UPI.
● Contactless Payment System (NFC-Based Payments) – Apple Pay, Visa payWave.
● Cryptocurrency Payment System – Bitcoin (BTC), Binance Pay.
v● Buy Now, Pay Later (BNPL) Payment System – Amazon Pay Later, Klarna.
● Automated Clearing House (ACH) & Electronic Fund Transfer (EFT) Systems – NACH in
India, Direct Debit.
● Point of Sale (POS) Payment System – Paytm POS, Pine Labs, Square POS
 E-payment systems
● An E-Payment System (Electronic Payment System) enables online financial transactions,
allowing customers and businesses to send and receive payments digitally. It is an essential
component of e-commerce and modern business operations.
Characteristics
● Digital & Paperless Transactions
● Speed & Instant Processing
● Convenience & Accessibility
● Security & Encryption
● Multiple Payment Options
● Global Transactions & Currency Support
v● Integration with E-Commerce Platforms
● Transaction Tracking & Digital Receipts
● Cost-Effective & Reduced Handling Costs
● Contactless & Mobile Payment Support
 Prepaid e-payment systems
● Prepaid e-payment services are digital financial solutions that allow users to load funds onto a card,
wallet, or account before making purchases online or in-store.
● Unlike credit or debit cards linked to bank accounts, prepaid payment methods require users to
pre-fund their accounts, ensuring controlled spending and reducing the risk of overdrafts or interest
charges.
● These services cater to a wide range of consumers, including those without traditional banking
access, making e-commerce more inclusive and accessible.
● The rise of e-commerce and digital transactions has significantly increased the demand for prepaid
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e-payment solutions.
● They offer enhanced security by reducing the exposure of sensitive banking details during online
transactions, thereby minimizing fraud risks.
 Prepaid e-payment systems
● Prepaid Cards – Visa Prepaid, PayPal Prepaid MasterCard
● E-Wallets – Google Pay, Apple Pay, Paytm
● Gift Cards & Vouchers – Amazon Gift Card, Steam Wallet Gift Card
● Prepaid Mobile & Internet Accounts – M-Pesa, Globe GCash
● Cryptocurrency-Based Prepaid Services – Binance Card, BitPay Prepaid Card
● Virtual Prepaid Cards – Revolut Virtual Card, Netspend Virtual Prepaid Card
● Merchant-Specific Prepaid Accounts – Starbucks Card, Uber Cash
v● Prepaid Travel Cards – Wise Travel Card, Travelex Money Card
● Prepaid Transit Cards – Oyster Card (London), MetroCard (New York)
● Retailer Store Cards – Walmart MoneyCard, Target RedCard Prepaid
 Prepaid e-payment systems

Category Examples Description

Closed System Amazon Gift Card, Steam These instruments can only be used on the specific
Payment Wallet Gift Card, Starbucks issuer's platform and do not allow cash withdrawal
Instruments Card, Uber Cash or transfer.

Semi-Closed Paytm, Google Pay, Apple Can be used at a network of partnered merchants,
System Pay, M-Pesa, Globe GCash but do not allow cash withdrawals.
Payment
Instruments
v
 Prepaid e-payment systems
Category Examples Description

Semi-Open Visa Prepaid, PayPal Prepaid Can be used at any card-accepting merchant (POS
System MasterCard, Revolut Virtual or online), but do not allow cash withdrawals.
Payment Card, Netspend Virtual
Instruments Prepaid Card

Open System Wise Travel Card, Travelex Can be used for purchases anywhere and also
Payment Money Card, Binance Card, allow cash withdrawals at ATMs.
Instruments BitPay Prepaid Card, Walmart
MoneyCard, Target RedCard
v Prepaid

Mobile Prepaid M-Pesa, Globe GCash Prepaid balances used primarily for mobile
Instruments recharges and payments, sometimes extending to
third-party services.
 Postpaid e-payment systems
● Postpaid e-payment services allow consumers to make purchases online and pay for them at a later date,
usually through monthly billing or installment plans.
● These services provide flexibility by enabling users to shop without immediate payment, making them
ideal for those who prefer deferred payments or need time to manage their finances.
● Unlike prepaid services, which require an upfront deposit, postpaid payments operate on a credit-based
system, where users are given a spending limit and billed at the end of a cycle.
● The popularity of postpaid e-payment services has grown significantly with the rise of Buy Now, Pay
Later (BNPL) solutions, digital credit lines, and subscription-based billing.
v● These services improve accessibility for customers who may not have sufficient funds at the time of
purchase but can repay in installments or after a set period.
● Postpaid payments also provide businesses with increased sales opportunities, as customers are more
likely to complete purchases when given flexible payment options.
 Postpaid e-payment systems
● Buy Now, Pay Later (BNPL) Services – Afterpay, Klarna, Affirm
● Credit Cards – Visa, MasterCard, American Express
● Digital Credit Lines – Amazon Pay Later, PayPal Credit
● Mobile Carrier Billing – Google Play Carrier Billing, Apple Carrier Billing
● Subscription-Based Payment Models – Netflix, Spotify, Amazon Prime
● Postpaid Wallets – Paytm Postpaid, Lazada Wallet Credit
● EMI (Equated Monthly Installments) on Debit & Credit Cards – Bajaj Finserv EMI Card,
v HDFC Bank EMI on Credit Cards
 SET (Secure Electronic Transaction) Protocol for Credit Card Payment
● The Secure Electronic Transaction (SET) protocol is a security standard developed by Visa and
MasterCard in collaboration with companies like IBM, Microsoft, and Netscape to ensure safe
credit card transactions over the internet.
● SET protects sensitive credit card details by encrypting data and verifying both the buyer and the
seller.

Participants in SET :
● Cardholder – customer
v● Issuer – customer financial institution
● Merchant
● Acquirer – Merchant financial
● Certificate authority – Authority which follows certain standards and issues certificates (like
X.509V3) to all other participants.
 SET (Secure Electronic Transaction) Protocol for Credit Card Payment
● Cardholder Authentication – When a customer purchases a laptop on Flipkart using a credit card,
SET verifies the customer's identity using a digital certificate or OTP-based authentication.
● Merchant Authentication – When booking a flight on MakeMyTrip, the SET protocol ensures that
MakeMyTrip is a verified merchant before processing the payment, reducing risks of phishing
scams.
● Data Confidentiality – When a user enters credit card details on Amazon, SET encrypts the data so
even Amazon cannot see the actual card number, preventing misuse.
● Transaction Integrity – When a customer buys a mobile phone from Myntra, SET ensures that the
amount debited remains exactly the same as what was displayed, preventing fraud.
● Dual Signature Mechanism – When buying shoes from Nike's official website, the merchant gets
v the order details (size, color, address), but only the payment gateway (Visa/MasterCard) sees the
credit card number.
● Secure Communication Between Parties – During an Uber ride payment, SET ensures secure
communication between Uber, the customer’s bank, and the payment gateway (e.g., Razorpay),
preventing hacking attempts.
 SET (Secure Electronic Transaction) Protocol for Credit Card Payment
● Non-Repudiation – When a customer books a hotel on Booking.com, SET ensures that both the
customer and the merchant cannot deny making the transaction, as digital signatures and certificates
act as proof of transaction.
● Payment Authorization – When buying a smartphone on Croma’s website, SET ensures that the
card-issuing bank verifies and approves the payment, preventing unauthorized transactions.
● Confidential Order Information – When purchasing groceries on BigBasket, SET ensures that only
BigBasket sees the order details, while the payment gateway processes the financial transaction
securely.
● Prevention of Eavesdropping & Tampering – When a user enters credit card details on Zomato for
v
food delivery, SET prevents hackers from intercepting or modifying the payment information
during transmission.
● Interoperability – When a PayPal user pays a merchant accepting Visa/MasterCard, SET ensures
seamless communication between different payment systems, banks, and merchants, allowing
smooth transactions.
 Importance of Electronic Records as Evidence
● Legally Recognized and Admissible – Apple vs. Samsung (2016) patent case
● Tamper-Resistant and Secure – Blockchain-Based Copyright Cases (China)
● Efficient and Easily Accessible – Forensic Investigations in Cybercrime Cases
● Crucial in Corporate and Financial Disputes – Enron Scandal (2001)
● Essential for Fraud and Cybercrime Investigations – WhatsApp & Telegram Chat Logs in
Financial Scams
● Used in Criminal and Civil Cases – CCTV Footage in 2011 London Riots
v● Supports Regulatory Compliance – Bernie Madoff Ponzi Scheme (2008)
 Taxation Issues in E-Commerce in India
● Goods and Services Tax (GST) Compliance – Platforms like Amazon and Flipkart are required to
collect Tax Collected at Source (TCS) under GST and remit it to the government.
● Tax Collected at Source (TCS) under GST – E-commerce operators must deduct 1% TCS (0.5%
CGST + 0.5% SGST or 1% IGST) on sales made through their platforms before paying sellers,
increasing compliance burdens for small businesses.
● Place of Supply Rules & Interstate Taxation – If an online seller in Delhi ships goods to a buyer in
Mumbai, IGST (Integrated GST) applies instead of CGST and SGST, making tax liability complex.
● Equalization Levy on Foreign E-Commerce Players – A 6% equalization levy applies to digital ad
v
revenues of companies like Google and Facebook, and a 2% digital tax is imposed on e-commerce
sales by foreign players like Amazon, Alibaba, and eBay.
 Taxation Issues in E-Commerce in India
● GST on Digital Services & Online Content – Streaming platforms like Netflix, Spotify, and Hotstar
must pay 18% GST under the Online Information and Database Access or Retrieval (OIDAR)
services, even if they don’t have a physical presence in India.
● Customs Duties on Cross-Border E-Commerce – Imports through e-commerce attract custom duties
and IGST, making international purchases costly, while Indian exporters face GST refund and
export documentation challenges.
● Tax Evasion & Compliance Burden – Many small sellers on platforms like Meesho and Flipkart
struggle with complex GST filings, while some unregistered sellers evade taxes, leading to revenue
v
losses for the government.
 Protection of Cyber Consumers in India
● Consumer Protection Act, 2019
● Information Technology (IT) Act, 2000
● Personal Data Protection Bill (Draft)
● E-Commerce Rules, 2020
● Reserve Bank of India (RBI) Guidelines on Digital Payments
● Cyber Crime Cells & Helplines
● Right to Refund & Return Policies
v● Data Privacy & Security Measures
 Problems Faced by Consumers in E-Commerce
● Fraudulent Sellers & Fake Products – Consumers on Amazon and Flipkart have reported
receiving counterfeit or inferior-quality products instead of the original ones they ordered.
● Payment Frauds & Phishing Attacks – Users of Google Pay and Paytm have fallen victim
to fake payment links and phishing scams, leading to unauthorized transactions and financial
losses.
● Delayed or Failed Deliveries – Customers on platforms like Myntra and Snapdeal often
experience delayed deliveries or orders getting lost in transit without proper resolution.
v● Misleading Advertisements & False Claims – E-commerce sites like Nykaa and Meesho
have been criticized for displaying edited product images or exaggerated claims, leading to
buyer dissatisfaction.
 Problems Faced by Consumers in E-Commerce
● Privacy & Data Security Issues – Platforms like Facebook and Zomato have faced data
breaches, exposing users’ personal and payment details to hackers.
● Difficult Return & Refund Policies – Consumers on Shein and Club Factory (before their
ban in India) struggled with delayed refunds or outright refusal of returns for defective
products.
● Hidden Charges & Overpricing – Some online stores, like MakeMyTrip and Goibibo, add
hidden service fees at checkout, making purchases more expensive than advertised.
v● Lack of Customer Support & Redressal – Users of Snapdeal and Flipkart have reported
poor customer support, with unresolved complaints and no proper escalation mechanism.
 Social Media Marketing
Social Media Marketing (SMM) refers to using social media platforms to:

● Build brand awareness

● Drive traffic to websites
● Generate leads and sales
● Engage and interact with audiences
● Improve customer relationships

Social
v media marketing is important because it has massive audience reach, cost-effective, it helps
in engagement & interaction, enhances brand loyalty and provides SEO Benefits
 Advantages of Social Media Marketing to E-Commerce
● Increased Brand Awareness – Nike’s "You Can’t Stop Us" Campaign; Daniel Wellington’s
Influencer Marketing Strategy
● Cost-Effective Marketing Strategy – Glossier’s Community-Driven Growth; Gymshark’s Viral
Challenges
● Higher Customer Engagement & Interaction – Starbucks’ #RedCupContest; Wendy’s Twitter
Roasts
● Increased Website Traffic & Sales – Kylie Cosmetics’ Instagram Shopping Feature; Fashion
Nova’s Facebook & Instagram Ads
v
● Better Targeting & Personalization – Spotify’s Personalized Ads on Social Media; Amazon’s
Retargeting Ads
 Advantages of Social Media Marketing to E-Commerce
● Improved Customer Trust & Brand Loyalty – Tesla’s Engaging Social Media Presence;
Airbnb’s User-Generated Content (UGC)
● Boosts SEO & Search Engine Rankings – HubSpot’s Blog and Social Sharing Strategy;
Sephora’s Social Media Engagement
● Opportunity for Influencer & Affiliate Marketing – Fashion Nova’s Influencer
Partnerships; Amazon Associates Program
● Real-Time Insights & Analytics – Coca-Cola’s Social Listening Strategy; Netflix’s
v Personalized Content Promotion
● Social Commerce & Direct Selling – Instagram Checkout for H&M; TikTok Shop for Small
Businesses
 Types of Threats in E-Commerce- Cybersecurity Threats
● Phishing Attacks – Amazon Phishing Scams; PayPal Phishing Attack
● Malware & Ransomware Attacks – WannaCry Ransomware (2017); Maersk Ransomware Attack
(2017)
● SQL Injection Attacks – British Airways Data Breach (2018); Yahoo Data Breach (2014)
● Distributed Denial of Service (DDoS) Attacks – AWS DDoS Attack (2020); GitHub Attack (2018)
● Man-in-the-Middle (MITM) Attacks – Public Wi-Fi Eavesdropping; Vodafone Germany Hack (2013)
● Credential Stuffing – Spotify Credential Stuffing Attack (2020); Zoom Credential Leak (2020)
● Insider Threats – Tesla Insider Sabotage (2020); Shopify Insider Data Breach (2020)
v
● Zero-Day Exploits – Microsoft Exchange Hack (2021); Google Chrome Zero-Day Vulnerability
● Data Breaches & Identity Theft – Equifax Data Breach (2017); Facebook Data Leak (2019)
● IoT & Smart Device Attacks – Mirai Botnet Attack (2016); Ring Camera Hacks (2019)
 Types of Threats in E-Commerce- Financial Threats
● Payment Fraud – eBay Payment Fraud (2014); Ticketmaster Credit Card Breach (2018)
● Chargeback Fraud (Friendly Fraud) – Apple App Store Chargeback Abuse; Shopify Merchant Chargebacks
● Account Takeover (ATO) Fraud – DoorDash Account Takeover (2019); PayPal Account Hacking Cases
● Cryptocurrency Scams & Fraud – OneCoin Ponzi Scheme (2016-2019); Twitter Bitcoin Scam (2020)
● Fake Online Stores & Scam Websites – LuxStyle Scam (2018); COVID-19 PPE Scams (2020)
● Money Laundering via E-Commerce – eBay & PayPal Money Laundering Cases; Crypto Wash Trading on
Binance
● Gift Card Fraud – Target Gift Card Scam (2015); Walmart Gift Card Scams
● Affiliate Marketing Fraud – Uber Affiliate Fraud (2017); Amazon Associates Click Fraud
v
● Business Email Compromise (BEC) & Invoice Fraud – Google & Facebook Invoice Scam (2013-2015); Toyota
BEC Attack (2019)
● Stock Market Manipulation & Pump-and-Dump Scams – GameStop Short Squeeze (2021); Crypto
Pump-and-Dump Scam