EXPERIMENT NO.

01

DATE OF PERFORMANCE: GRADE:

DATE OF ASSESSMENT: SIGNATURE OF LECTURER/ TTA:

AIM: INTRODUCTION TO E-COMMERCE

THEORY:

E-Commerce: “Sale / Purchase of goods / services through electronic mode is e- commerce.”

This could include the use of technology in the form of Computers, Desktops, Mobile
Applications, etc.
The greatest change due to technology innovations in last five years has been theway users
perform their daily chores / activity of life. E-Commerce and its related technologies are
unquestionably the current leading-edge business and finance delivery systems.

E-Commerce is the process of doing business electronically. It refers to the use of technology
to enhance the processing of commercial transactions between a company, its customers and
its business partners. It involves the automation of a variety of Business-To-Business (B2B)
and Business-To-Consumer (B2C) transactions through reliable and secure connections.

Traditional Commerce and E-Commerce

The greatest change due to technology innovations in last five years.

BASE FOR TRADITIONAL E-COMMERCE

COMPARISON COMMERCE

Definition Traditional commerce E-Commerce means carrying out

includes all thoseactivities commercial transactions or exchange of
which encourage information, electronically on the
exchange, in some way or internet.
the other of goods /
services which are manual
and non-electronic.

Transaction Manual Electronically

Processing

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Availability for For limited time. This 24×7×365
commercial time may be defined by
transactions law. Like special stores
which may run
24 hours, but in general
available for limited time.

Natureof Goods can be inspected Goods cannot be inspected physically

purchase physically before before purchase.
purchase.

Customer Face-to-face Screen-to-face

interaction

BusinessScope Limited to Worldwide reach

particular area.

Information No uniform platform for Provides a uniform

exchange exchange of information. platform for information
exchange.

Resourcefocus Supply side Demand side

Marketing One way marketing One-to-one marketing

Payment Cash, cheque, Credit card, fund transfer, Cash in

credit card, etc. Delivery, Payment Wallets, UPCI
application etc.

Delivery of Instantly Takes time, but now e-commerce

goods websites have created options of same
day delivery, or delivery within 4 hours.
This option is restricted to number of
cities as of now. AMAZON has already
started delivery in United States of
America through drones.

Illustration of E-Commerce Transaction

STEP 1: Go to website (like www.snapdeal.com, www.flipkart.com, www.amazon.in, etc) and

create your user ids (identifications). Those who have social media ids, can directly link
through those ids.
OR
Go to Google Play Store in your hand-held device and download the special software needed
for e-commerce transaction called as APP (Application). Once downloaded, user needs to press
OPEN. The APP is installed on the handheld device. For example: OYO (Hotel Booking
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APP), IRCTC (Train ticket booking APP), Foodpanda (Food ordering APP) and millions of
App like this.

STEP 2: Select the type of product you wish to buy. Each such e-commerce vendor has huge
display of product inventory. User needs to make sure that s/he selects the right product type.
STEP 3: From the products listed, user needs to select the correct product s/he needs to buy.
STEP 4: User makes the final choice and goes for making payment online.
STEP 5: At the time of making payment, e-commerce vendor shows all details including the
product being bought and the final price of the same for review ofthe customer and
confirmation before final payment.
STEP 6: Once user goes for online payment, the e-commerce vendor displays the payment
options. Payment options can be cash on delivery, Payment by Debit/Credit Cards, etc.
STEP 7: Once the user selects the payment option, he is directed to the payment gateway where
he enters the OTP or the password and the payment is made videthe Credit Card. Once the
payment is made, the confirmation email / SMS is received by the user.
STEP 8: Based on the delivery terms, the product is delivered to the customer in specified
time.

Benefits of E-Business

E-business benefits individuals, businesses, government and society at large. The major
benefits from e-business are as follows:
A. Benefits to Customer / Individual / User
 Convenience: Every product at the tip of individual’s fingertips on internet.
 Time saving: Number of operations that can be performed both by potential
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 buyers and sellers increase.
 Various Options: There are several options available for customers which are
not only being easy to compare but are provided by different players in the
market.
 Easy to find reviews: There are often reviews about a particular site or
product from the previous customers which provides valuable feedback.
 Coupon and Deals: There are discount coupons and reward pointsavailable
for customers to encourage online transaction.
 Anytime Access: Even midnight access to the e commerce platforms is
available which brings in customer suitability.
B. Benefits to Business / Sellers
 Increased Customer Base: Since the number of people getting onlineis
increasing, which are creating not only new customers but also retaining the
old ones.
 Recurring payments made easy: Each business has number of operations
being homogeneous. Brings in uniformity of scaled operations.
 Instant Transaction: The transactions of e commerce are based on real time
processes. This has made possible to crack number of deals.
 Provides a dynamic market: Since there are several players, providinga
dynamic market which enhances quality and business.
 Reduction in costs:
 To buyers from increased competition in procurement as more
suppliers are able to compete in an electronically open
marketplace.
 To suppliers by electronically accessing on-line databases of
bid opportunities, on-line abilities to submit bids, and
on-line reviewof rewards.
 In overhead costs through uniformity, automation, and large-
scale integration of management processes.
 Advertising costs.
 Efficiency improvement due to:
 Reduction in time to complete business transactions, particularly
from delivery to payment.
 Reduction in errors, time, for information processing by
eliminating requirements for re-entering data.
 Reduction in inventories and reduction of risk of obsolete
inventories as the demand for goods and services is electronically
linked through just-in-time inventory and integrated
manufacturing techniques.
 Creation of new markets: This is done through the ability to easily and
cheaply reach potential customers.
 Easier entry into new markets: This is especially into geographically remote
markets, for enterprises regardless of size and location.
 Better quality of goods: As standardized specifications and competition have
increased and improved variety of goods through expanded markets and the
ability to produce customized goods.
 Elimination of Time Delays: Faster time to market as business processes are
linked, thus enabling seamless processing andeliminating time delays.
C. Benefits to Government
 Instrument to fight corruption:-In line with Government’s vision, e
commerce provides a pivotal hand to fight corruption.
 Reduction in use of ecologically damaging materials through electronic
coordination of activities and the movement of information rather than physical
objects).
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