Dr. P.R.

K Degree College, BALLARI

Course: B.Com Sub: E – Commerce Sem: VI
Unit 1: E-commerce and its Technological Aspects
CONTENT

1.1 Introduction

1.2 Overview of Developments in Information Technology and Defining E-

Commerce
1.2.1 Definition and Meaning of E-Commerce
1.2.2 Overview of Developments in Information Technology

1.3 The Scope of E-Commerce

1.4 Electronic Data Interchange
1.4.1 Key Features of EDI
1.4.2 Common EDI Documents
1.4.3 Benefits of EDI
1.4.4 Challenges of EDI

1.5 Benefits and Limitations of E-Commerce

1.5.1 Benefits of E-Commerce
1.5.2 Limitations of E-Commerce

1.6 Generic framework for E-commerce

1.7 Architectural Framework of Electronic Commerce

1.8 Web Based E-Commerce Architecture

1.9 Difference between Generic Framework of E-Commerce, Architectural
Framework of E-Commerce and Web base E-Commerce Architecture
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
-INTENT-

1.1 Introduction

The advent of the digital age has transformed traditional business practices, giving rise
to E-commerce, a powerful and dynamic field that leverages information technology to
facilitate the buying and selling of goods and services over electronic systems, primarily the
internet. This unit delves into the core aspects of E-commerce and its technological
underpinnings, providing a comprehensive overview of its evolution, scope, and impact.

We start by defining the core concept i.e., E-commerce and explore the overview of
developments in information technology in Section 1, highlighting key technological
advancements that have revolutionized business operations.

Next, we examine its various forms, such as B2B, B2C, C2C, and C2B, in its expansive
scope in the modern marketplace in section 2.

The concept of the electronic market is introduced in Section 3, showcasing virtual

marketplaces where buyers and sellers interact, thereby reducing transaction costs and
enhancing convenience.

We delve into Electronic Data Interchange (EDI) in Section 4, a vital component of E-

commerce that enables the seamless exchange of business documents in standardized electronic
formats, streamlining business processes and reducing errors.

We provide a balanced view by discussing both the benefits and limitations of E-

commerce in Section 5, offering a realistic perspective on its adoption and implementation.

To help structure this knowledge, we present a generic framework for E-commerce in

Section 6, detailing the essential components required to establish and operate an effective E-
commerce platform.

The architectural framework of Electronic Commerce is explained in Section 7,

discussing various architectures like client-server and multi-tier models that support E-
commerce activities.

Finally, in Section 8, we explore web-based E-commerce architecture, covering the

technical aspects of building and maintaining an online presence, including the roles of web
servers, application servers, and database servers, along with considerations for scalability,
security, and user experience.

By the end of this unit, students will gain a thorough understanding of the technological
foundations of E-commerce, preparing them to analyse, design, and implement E-commerce
solutions effectively.
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
1.3 Overview of Developments in Information Technology and Defining E-
Commerce

In this section, we start by defining the core concept of E-commerce and explore the
overview of developments in information technology, highlighting key technological
advancements that have revolutionized business operations.

1.2.1 Definition and Meaning of E-Commerce

E-commerce refers to the buying and selling of goods and services over electronic
systems, primarily the internet. It involves online transactions, electronic data transfer, and
electronic funds transfer.

1.2.2 Overview of Developments in Information Technology

Information Technology (IT) involves the use of computers, telecommunications, and

other technologies to store, retrieve, transmit, and manipulate data. IT plays a crucial role in
modern business operations and has enabled the rise of E-commerce.

The following points explain in brief the overview of developments in Information

Technology.

1.2.2.1 The Internet: Development and widespread adoption of the internet, providing a global
platform for communication and commerce.
1.2.2.2 Mobile Technology: Proliferation of smartphones and tablets, allowing consumers to
shop online from anywhere at any time.
1.2.2.3 Cloud Computing: Offers scalable and flexible IT resources, enabling businesses to
manage and process data efficiently.
1.2.2.4 Big Data and Analytics: Techniques for processing and analyzing large volumes of
data to gain insights into consumer behaviour and improve business strategies.
1.2.2.5 Artificial Intelligence and Machine Learning: Enhances customer experiences
through personalized recommendations, chatbots, and predictive analytics.

1.2.2.6 Blockchain Technology: Provides secure and transparent transaction records,

particularly useful in financial transactions and supply chain management.

In summary, this section provides a foundational understanding of E-commerce by

defining its core concepts and examining the pivotal role of information technology in its
evolution. The advancements in IT have not only enabled the rise of E-commerce but have also
transformed traditional business operations, leading to greater efficiency, improved data
management, and the creation of new business models.
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
1.4 The Scope of E-Commerce

E-commerce encompasses a wide range of activities or functions and models,

significantly impacting business and consumer interactions. The scope includes:

1.3.1 Business Models

o B2B (Business to Business): It Involves transactions between businesses, such

as manufacturers selling to wholesalers or wholesalers selling to retailers. This
model focuses on supply chain efficiency and large-scale transactions.
o B2C (Business to Consumer): It refers to transactions between businesses and
individual consumers. Online retailers like Amazon exemplify this model,
where businesses sell products or services directly to consumers, offering a
convenient shopping experience with features like customer reviews and
personalized recommendations.
o C2C (Consumer to Consumer): It encompasses transactions between
individual consumers. Platforms like eBay and OLX facilitate these peer-to-
peer transactions, allowing users to buy and sell items directly to each other,
often in an auction or classified ad format.
o C2B (Consumer to Business): It describes a model where individuals sell
products or services to businesses. Freelance platforms like Upwork and Fiverr
illustrate this model, where individuals offer their skills and services to
companies seeking specialized talent.

1.3.2 Online Banking and Finance: Online banking and finance services provide convenient
access to financial transactions and management. Platforms for online banking, investment,
and digital wallets offer users the ability to conduct banking activities, manage investments,
and make payments from anywhere with internet access. E-commerce has driven the growth
of fintech companies, which offer innovative financial solutions such as peer-to-peer lending
and crowdfunding, enhancing the efficiency and accessibility of financial services.

1.3.3 Digital Marketing and Advertising: Digital marketing and advertising leverage online
platforms to reach potential customers. Businesses use strategies such as social media
marketing, email marketing, search engine optimization (SEO), and pay-per-click (PPC)
advertising to target specific audiences. Platforms like Google Ads and Facebook Ads allow
businesses to create targeted campaigns based on user data and behavior, increasing the
effectiveness and reach of their marketing efforts.

1.3.4 Online Booking and Reservations: Online booking and reservation systems streamline
the process of securing services such as travel, event tickets, and restaurant reservations. E-
commerce platforms provide comprehensive options and real-time availability, making it easy
for users to book flights, hotels, car rentals, and other services. This convenience has
transformed industries like travel and hospitality, offering users a seamless and efficient
booking experience.

1.3.5 Subscription Services: Subscription services represent a significant portion of E-

commerce, providing recurring revenue streams for businesses and convenience for consumers.
These subscription services, such as streaming platforms like Netflix and Amazon Prime,
software offerings such as Adobe Creative Cloud, Zoom Cloud Meetings and innovative
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
models like Swiggy Super and Kindle Unlimited, play a crucial role in E-commerce. They
generate recurring revenue while enhancing customer convenience and engagement through
tailored benefits and services.

1.3.6 E-learning and Online Education: E-learning and online education platforms, such as
Edukart, BYJU’s, Vedantu and such others offer courses, certifications, and training programs
accessible from anywhere. E-commerce facilitates the sale and distribution of digital
educational content, expanding access to learning opportunities globally. These platforms
provide a diverse range of subjects and learning formats, catering to various educational needs
and preferences.

1.3.7 Healthcare and Telemedicine: Healthcare and telemedicine services have been
revolutionized by E-commerce, enabling the sale of healthcare products, pharmaceuticals, and
medical devices online. Telemedicine platforms offer remote consultations and healthcare
management, providing access to medical care regardless of location. This model enhances the
accessibility and efficiency of healthcare services, particularly in remote or underserved areas.

1.3.8 Digital Goods and Services: The sale of digital goods and services includes software, e-
books, music, and video games, facilitated through platforms like iTunes, Google Play, and
Steam. Additionally, online services such as web hosting, graphic design, and freelance work
are available through platforms like Fiverr and Upwork. This aspect of E-commerce allows for
the immediate delivery of digital products and services, catering to the growing demand for
digital content and online professional services.

The scope of E-commerce is extensive, encompassing a variety of business models and

activities that transform traditional commerce. From B2B and B2C transactions to digital
marketplaces, online banking, and telemedicine, E-commerce offers numerous opportunities
for businesses to reach broader audiences, improve operational efficiency, and provide
innovative services. As technology continues to evolve, the scope of E-commerce will expand
further, driving new trends and business models.

1.5 Electronic Data Interchange

Electronic Data Interchange (EDI) is a standardized method for exchanging business

information and documents between organizations electronically, without the need for manual
intervention. EDI replaces traditional paper-based documents with electronic versions,
facilitating faster, more accurate, and efficient business transactions.

1.5.1 Key Features of EDI

The following are the key features of EDI.

1.4.1.1 Standardization: EDI uses standardized formats for electronic documents, such as
ANSI X12, EDIFACT, and XML. These standards ensure that all parties involved in the
exchange can interpret and process the data correctly.

1.4.1.2 Automation: EDI enables the automation of business processes by integrating with
enterprise resource planning (ERP) systems and other business applications. This reduces
manual data entry, minimizes errors, and speeds up transaction processing.
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
1.4.1.3 Security: EDI systems employ robust security measures, including encryption, secure
transmission protocols, and authentication, to protect sensitive business information during
transmission.
1.4.1.4 Speed and Efficiency: EDI significantly reduces the time required to exchange
business documents, enabling real-time or near-real-time communication between trading
partners. This leads to faster order processing, reduced lead times, and improved supply chain
efficiency.
1.4.2 Common EDI Documents
There are so many documents used in EDI. The following are the common ones.
1.4.2.1 Purchase Orders (PO): Electronic purchase orders are sent from buyers to suppliers
to request goods or services. EDI automates the creation, transmission, and processing of POs.
1.4.2.2 Invoices: EDI invoices are sent from suppliers to buyers to request payment for goods
or services delivered. Automated invoicing improves accuracy and speeds up the payment
process.
1.4.2.3 Advance Shipping Notes (ASNs): ASNs provide detailed information about a pending
delivery, including shipment contents, packaging, and expected arrival time. This helps buyers
prepare for incoming shipments and manage inventory effectively.
1.4.2.4 Shipping Schedules: EDI shipping schedules communicate delivery dates and
quantities between suppliers and buyers, ensuring better coordination and planning of
shipments.
1.4.2.5 Payment and Remittance Advice: EDI payment documents facilitate electronic funds
transfer (EFT) and provide detailed remittance information, improving cash flow management
and reconciliation.
1.4.3 Benefits of EDI
The following are the benefits of EDI.
1.4.3.1 Cost Savings: EDI reduces the costs associated with paper-based transactions,
including printing, mailing, and storage. It also minimizes labor costs related to manual data
entry and error correction.
1.4.3.2 Improved Accuracy: EDI eliminates manual data entry errors by automating the
exchange of information. This leads to more accurate order processing, invoicing, and
inventory management.
1.4.3.3 Enhance Business Relationships: EDI fosters better collaboration and communication
between trading partners by providing a reliable, efficient, and standardized method for
exchanging information.
1.4.3.4 Streamlined Supply Chain Management: EDI improves supply chain visibility and
coordination, leading to better inventory management, reduced stockouts, and optimized
production schedules.
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
1.4.3.5 Compliance and Reporting: EDI helps businesses comply with regulatory
requirements and industry standards. It also facilitates the generation of accurate and timely
reports for internal and external stakeholders.
1.4.4 Challenges of EDI
EDI is not away from its challenges. It has the following challenges.
1.4.4.1 Initial Setup Costs: Implementing EDI requires an initial investment in hardware,
software, and training. However, these costs are often offset by long-term savings and
efficiency gains.
1.4.4.2 Complexity: EDI can be complex to implement and maintain, especially for small and
medium-sized enterprises (SMEs). Ensuring compatibility between different EDI standards
and systems can be challenging.
1.4.4.3 Security Concerns: While EDI systems incorporate security measures, they are not
immune to cyber threats. Businesses must continuously monitor and update their EDI systems
to protect against data breaches and unauthorized access.
Electronic Data Interchange (EDI) is a powerful tool for modern businesses, enabling
efficient, accurate, and secure exchange of business information. By automating transactions
and standardizing data formats, EDI enhances operational efficiency, reduces costs, and
improves business relationships. As technology continues to evolve, EDI will likely integrate
with emerging technologies such as cloud computing, blockchain, and AI, further enhancing
its capabilities and benefits.

1.6 Benefits and Limitations of E-Commerce

E-commerce, the buying and selling of goods and services over the internet, has
transformed the business landscape. It offers numerous advantages, such as increased reach
and convenience, but it also comes with challenges and limitations. Understanding both sides
is crucial for businesses looking to succeed in the digital marketplace.
1.6.1 Benefits of E-Commerce
The benefits of E-Commerce
1.5.1.1 Global Reach: E-commerce allows businesses to reach a global audience, breaking
geographical barriers and expanding their market presence beyond local boundaries. This
access to a broader customer base can significantly increase sales opportunities.
1.5.1.2 Convenience and Accessibility: Online shopping provides customers with the
convenience of browsing and purchasing products 24/7 from any location with internet access.
This flexibility caters to the modern consumer's busy lifestyle, enhancing customer satisfaction.
1.5.1.3 Cost Reduction: E-commerce reduces operational costs by eliminating the need for
physical storefronts, reducing staffing requirements, and minimizing overhead expenses like
rent and utilities. This can lead to lower prices for consumers and higher profit margins for
businesses.
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
1.5.1.4 Personalization and Customer Engagement: E-commerce platforms use data
analytics and customer insights to offer personalized recommendations, targeted marketing,
and tailored shopping experiences. This enhances customer engagement and loyalty.
1.5.1.5 Efficient Inventory and Supply Chain Management: Advanced e-commerce
systems integrate with inventory and supply chain management tools, allowing for real-time
tracking and efficient stock control. This reduces the risk of overstocking or stockouts and
improves order fulfilment accuracy.
1.5.1.6 Increased Sales through Digital Marketing: E-commerce leverages various digital
marketing strategies, including search engine optimization (SEO), social media marketing,
email marketing, and pay-per-click (PPC) advertising, to drive traffic and increase sales.
1.5.1.7 Enhanced Customer Insights: E-commerce platforms collect valuable data on
customer behaviour, preferences, and purchasing patterns. Businesses can use this data to refine
their marketing strategies, improve product offerings, and enhance the overall customer
experience.
1.5.1.8 Scalability and Flexibility: E-commerce businesses can easily scale their operations
to accommodate growth. Adding new products, expanding to new markets, or increasing order
volume can be managed more efficiently than in traditional retail settings.
1.5.1.9 Speed and Efficiency: E-commerce transactions are processed quickly and efficiently,
reducing the time from order placement to delivery. Automated systems handle tasks like
payment processing, order confirmation, and inventory updates.
1.5.2 Limitations of E-Commerce
The following are the limitations of E-Commerce.
1.5.2.1 Security Concerns: Cybersecurity threats, such as data breaches, hacking, and fraud,
pose significant risks to e-commerce businesses and consumers. Protecting sensitive
information and ensuring secure transactions are critical challenges.
1.5.2.2 Lack of Personal Interaction: The absence of face-to-face interaction can make it
difficult to build trust and provide personalized customer service. Some consumers still prefer
the tactile experience of shopping in physical stores.
1.5.2.3 Technical Issues and Downtime: E-commerce platforms rely heavily on technology,
and any technical issues, such as website crashes, server downtime, or slow loading times, can
disrupt business operations and negatively impact the customer experience.
1.5.2.4 Delivery and Logistics Challenges: Efficient order fulfilment, shipping, and handling
returns can be complex and costly. Delays in delivery, damaged goods, and logistical
inefficiencies can lead to customer dissatisfaction.
1.5.2.5 Intense Competition: The low barrier to entry in e-commerce means that businesses
face intense competition from both local and international players. Differentiating products and
maintaining competitive pricing are ongoing challenges.
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
1.5.2.6 Regularity and Compliance Issue: E-commerce businesses must navigate various
regulations related to data privacy, consumer protection, taxation, and international trade.
Staying compliant with evolving laws can be burdensome and costly.
1.5.2.7 Dependence on Internet Access and Technology: E-commerce is heavily reliant on
internet access and technology infrastructure. In regions with poor connectivity or
technological limitations, reaching potential customers can be challenging.
1.5.2.8 Handling Returns and Refunds: Managing returns and refunds efficiently is crucial
for maintaining customer satisfaction. However, it can be logistically challenging and costly
for e-commerce businesses, especially with high return rates in certain product categories.
E-commerce offers significant benefits, including global reach, convenience, cost
reduction, and enhanced customer insights, making it a powerful tool for modern businesses.
However, it also presents challenges such as security concerns, intense competition, and
logistical complexities. By understanding and addressing these limitations, businesses can
effectively leverage e-commerce to drive growth and success in the digital age.

1.6 Generic framework for E-commerce

A generic framework for e-commerce encompasses various components and processes
that facilitate online transactions, from initial customer interaction to order fulfilment and post-
sale support. Below is a comprehensive framework outlining these key elements
1.6.1 User Interface (UI) and User Experience (UX) Design: A successful e-commerce
platform must consider several key aspects to ensure a seamless and efficient user experience.
User Interface (UI) and User Experience (UX) design are critical, with website design needing
to be attractive, intuitive, and responsive for a smooth experience across devices. Navigation
should be straightforward with easy-to-use menus, search functionality, and well-organized
product categories.
1.6.2 Product Management: Product management is essential, requiring detailed product
listings that include descriptions, images, videos, and specifications. Effective inventory
management is necessary to track and manage stock in real-time, preventing stockouts and
overselling. Catalog management should organize products into categories and subcategories
for easy browsing.
1.6.3 Customer Management: Customer management involves features like user accounts for
registration, login, and account management. Customer profiles store data, preferences, and
purchase history for personalized experiences, while customer service support is available
through chatbots, live chat, email, and phone.
1.6.4 Shopping Cart and Wish List: The shopping cart should allow users to easily add,
remove, and edit items in their cart. The wish list feature enables users to save items they are
interested in for future purchase, providing a convenient way to keep track of desired products.
Integration with multiple payment gateways, including credit/debit cards, digital wallets, and
bank transfers, is crucial.
1.6.5 Order Management: Order management includes automated order processing and
confirmation emails, real-time order tracking, and status updates for customers. An easy return
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
and refund process enhances customer satisfaction. Payment processing should involve secure
payment gateways and systems for fraud detection to prevent fraudulent transactions.
1.6.6 Payment Processing: Payment processing ensures secure and efficient transactions by
using secure payment gateways and fraud detection systems. Gateways like PayPal, Stripe, and
Razorpay encrypt sensitive data to protect customer information. Fraud detection employs
algorithms and machine learning to flag suspicious activities, verify transactions, and monitor
spending behaviour, enhancing customer confidence and preventing financial loss.
1.6.7 Shipping and Logistics: Shipping and logistics management offer multiple shipping
methods and carriers, efficient logistics and supply chain management for timely delivery, and
real-time shipment tracking and notifications for customers. Marketing and promotions require
SEO and content marketing to drive organic traffic, email marketing for promotions and
newsletters, social media marketing for engagement, and discounts and promotions to attract
and retain customers.
1.6.8 Marketing and Promotions: Marketing and promotions drive traffic and sales through
various strategies. Email marketing sends promotional emails, newsletters, and personalized
offers to engage customers directly. Social media marketing leverages platforms like Facebook,
Instagram, and Twitter to reach a broader audience and foster customer engagement.
Additionally, discounts and promotions, such as special offers and coupons, attract and retain
customers, boosting sales and customer loyalty.
1.6.9 Analytics and Reporting: Analytics and reporting track sales performance, conversion
rates, and customer behaviour, analyse customer data to identify trends and preferences, and
monitor inventory levels, order fulfilment rates, and supply chain efficiency. Security and
compliance involve implementing SSL certificates, encryption, and other measures to protect
customer data, and ensuring compliance with data protection regulations and industry
standards.
1.6.10 Security and Compliance: Security and compliance are crucial for protecting customer
data and adhering to regulations. Data security involves implementing measures like SSL
certificates and encryption to safeguard sensitive information against unauthorized access.
Compliance ensures that the business adheres to data protection regulations such as GDPR and
industry standards, maintaining legal and ethical standards to protect customer privacy and
build trust.
1.6.11 Customer Relationship Management (CRM): Customer Relationship Management
(CRM) integration manages customer interactions and improves relationships, using CRM data
to personalize marketing efforts and customer experiences. The technology infrastructure
should include reliable and scalable web hosting, a robust content management system (CMS),
and third-party API integration for extended functionality.

1.6.12 Post-Sale Support: Post-sale support enhances customer satisfaction and loyalty
through various strategies. Customer feedback is collected and analyzed to improve products
and services, ensuring they meet customer expectations. Loyalty programs reward repeat
customers with benefits, discounts, or points, encouraging ongoing engagement. After-sales
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
service includes support such as installation, maintenance, and troubleshooting, ensuring a
positive customer experience even after the purchase.

This generic framework for e-commerce covers the essential components and processes
required to run a successful online business. By implementing and optimizing these elements,
businesses can provide a seamless and secure shopping experience, attract and retain
customers, and achieve sustainable growth in the competitive digital marketplace.

1.7 Architectural Framework of Electronic Commerce

The architectural framework of electronic commerce (e-commerce) refers to the
structured design of technologies, systems, and processes that support online transactions and
business activities. This framework ensures that e-commerce platforms operate efficiently,
securely, and seamlessly. Below is a detailed explanatory note on the architectural framework
of e-commerce.
1.7.1 Client-Server Architecture: The client-server architecture consists of two main
components. The client side involves the user's device and browser, which interface with the
server to request and display information. The server side handles the processing and delivery
of data and services to the client, maintaining the back-end infrastructure.
1.7.2 Presentation Layer: The presentation layer focuses on the front end of the e-commerce
platform. It includes the User Interface (UI), which involves the visual elements, ensuring the
platform is attractive and easy to navigate. It also encompasses the User Experience (UX),
emphasizing usability, accessibility, and overall user satisfaction.
1.7.3 Business Logic Layer: This layer is responsible for handling core business processes. It
includes e-commerce applications that manage tasks such as product catalog management,
shopping cart functionality, and the checkout process. Middleware in this layer facilitates
communication and data management between different systems and applications within the e-
commerce architecture.
1.7.4 Data Management Layer: This layer deals with data storage and management.
Databases are used to store and manage transactional data, ensuring data integrity and
accessibility. Data warehouses aggregate large volumes of data for analysis and reporting
purposes.
1.7.5 Integration Layer: The integration layer enables seamless connectivity between various
systems. Application Programming Interfaces (APIs) allow different software components to
communicate and share data. An Enterprise Service Bus (ESB) manages the integration and
flow of information across multiple applications and services.
1.7.6 Security Layer: Ensuring the security of the e-commerce platform is critical. This layer
includes Secure Sockets Layer (SSL) and Transport Layer Security (TLS) to encrypt data
transmitted over the internet. Firewalls protect against unauthorized access, and authentication
and authorization mechanisms verify user identities and control access to resources.
1.7.7 Payment Processing: This component handles financial transactions securely. It includes
payment gateways that facilitate online payments by connecting the e-commerce platform with
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
financial institutions. Fraud detection systems monitor transactions to identify and prevent
fraudulent activities.
1.7.8 Order Management System (OMS): The OMS oversees the entire order lifecycle. Order
processing automates the handling of customer orders from placement to fulfillment. Inventory
management tracks stock levels in real-time to ensure products are available for purchase and
delivery.
1.7.9 Content Management System (CMS): The CMS manages the creation and publication
of digital content. It supports content creation and management, allowing administrators to
update website content easily. SEO optimization ensures that content is search engine friendly,
improving the platform's visibility and ranking.
1.7.10 Analytics and Reporting: This layer provides insights into the performance of the e-
commerce platform. Web analytics track user behavior and traffic patterns. Sales and
performance reports analyze data to measure business success and identify areas for
improvement.
1.7.11 Scalability and Performance: Ensuring the platform can handle growth and maintain
performance is vital. Load balancing distributes incoming traffic across multiple servers to
prevent overload. Caching stores frequently accessed data for quick retrieval. Cloud services
offer scalable resources to accommodate varying levels of demand.
The architectural framework of electronic commerce is a multi-layered structure that
integrates various technologies and systems to support online business activities. Each layer
plays a crucial role in ensuring that the e-commerce platform is secure, efficient, and user-
friendly. By understanding and implementing this framework, businesses can create robust e-
commerce solutions that meet the demands of modern consumers and drive sustainable growth.

1.8 Web Based E-Commerce Architecture

Web-based e-commerce architecture is the structural design of the systems that enable
online businesses to conduct transactions over the internet. It involves various components and
layers that work together to deliver a seamless and secure shopping experience to users. Here’s
a detailed look at the key elements and layers involved in web-based e-commerce architecture.
1.8.1 Presentation Layer: The presentation layer in web-based e-commerce architecture is
crucial as it directly interacts with users, influencing their perception and experience of the
platform. This layer encompasses design and user experience, front-end technologies, web
servers and hosting, SEO optimization, and web security.
1.8.2 Design and User Experience Aspects of the Web Interface: The design and user
experience (UX) aspects focus on creating an attractive, intuitive, and seamless interface. A
well-designed UI ensures that users can navigate the site easily, find products quickly, and
complete transactions smoothly. This includes elements such as layout, color schemes,
typography, and interactive elements like buttons and menus. Good UX design emphasizes
usability, accessibility, and satisfaction, aiming to make the user's interaction with the website
as pleasant and efficient as possible.
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
1.8.3 Front-End Technologies: The presentation layer relies on various front-end technologies
to create dynamic and responsive web interfaces. HTML (HyperText Markup Language)
provides the basic structure of web pages, CSS (Cascading Style Sheets) is used to control the
presentation, formatting, and layout, and JavaScript enables interactive features and
functionalities. Modern frameworks like React, Angular, and Vue.js further enhance the
development process by providing reusable components, efficient state management, and
improved performance. These technologies collectively ensure that the website is visually
appealing, functional, and responsive across different devices and browsers.
1.8.4 Web Servers and Hosting: Web servers and hosting are essential for handling web
requests, serving web pages, and managing web traffic. Web servers like Apache, Nginx, and
Microsoft IIS receive requests from users' browsers, process these requests, and return the
appropriate web pages. Hosting services provide the necessary infrastructure to store website
files and data, ensuring that the site is accessible to users around the clock. Reliable web hosting
like Google, Amezon, Microsoft etc. is crucial for maintaining uptime, speed, and performance,
directly affecting the user experience and site reliability.
1.8.5 SEO Optimization: SEO (Search Engine Optimization) optimization is vital for
enhancing the visibility of web content on search engines like Google, Bing, and Yahoo. This
involves optimizing various aspects of the website, including meta tags, headings, URL
structure, content quality, and keyword usage, to improve search engine rankings. Good SEO
practices help drive organic traffic to the site, making it easier for potential customers to find
products and services. This not only increases visibility but also boosts credibility and
trustworthiness in the eyes of users.
1.8.6 Web Security: Web security is a critical aspect of the presentation layer, ensuring the
protection of sensitive data transmitted between the user's browser and the web server.
Implementing SSL (Secure Sockets Layer) and its successor, TLS (Transport Layer Security),
encrypts data during transmission, preventing unauthorized access and data breaches. These
protocols establish a secure connection, indicated by "https://" in the website URL, assuring
users that their information is safe. Additionally, web security measures include regular
updates, security patches, and monitoring for vulnerabilities to safeguard the website against
cyber threats.
The architectural framework of web-based e-commerce is a complex and multi-layered
structure that ensures the smooth operation of online businesses. By integrating various
components and layers, it supports the seamless interaction between the user and the system,
ensures secure transactions, and maintains high performance and scalability. Understanding
this architecture is crucial for building and maintaining a robust and efficient e-commerce
platform.

1.9 Difference between Generic Framework of E-Commerce, Architectural

Framework of E-Commerce and Web base E-Commerce Architecture
The generic framework outlines the overall structure and benefits of e-commerce. The
architectural framework includes all technical aspects that work behind the scenes. The web-
based e-commerce architecture is a part of the architectural framework that focuses specifically
 Dr. P.R.K Degree College, BALLARI
Course: B.Com Sub: E – Commerce Sem: VI
on web-related aspects like design and security. The following table differentiate these
concepts.
Table 1.1: Difference between Generic Framework, Architectural Framework and
Web-Based E-Commerce
Aspect Generic Framework of Architectural Web-Based E-
E-Commerce Framework of E- Commerce architecture
Commerce
Focus Overall e-commerce Technical infrastructure Web-specific
structure and and interactions technologies and
components design
Audience End users and business Developers and IT Web developers and
stakeholders professionals designers
Components Business models, Client-server UI/UX design, front-
electronic markets, architecture, data end technologies, web
benefits, limitations management, integration servers, hosting,
layers security
Purpose High-level view of e- Detailed technical User interaction and
commerce functions infrastructure of e- web interface aspects
and benefits commerce systems of e-commerce
Integration Various e-commerce Technical components Web design,
activities and models for smooth operation development, and
security strategies

Summary
This unit covers the foundational concepts of E-commerce and its technological
aspects. It begins with an overview of developments in information technology and a definition
of E-commerce, followed by exploring its scope, electronic markets, and electronic data
interchange (EDI). The unit also discusses the benefits and limitations of E-commerce, and
presents both a generic and an architectural framework for E-commerce, including web-based
architecture with clear portrayal of its difference.