SUBJECT: ICT

TOPIC: E-COMMERCE MODEL, COMPONENT,

PLATFORM AND TOOLS

PRESENTED BY: GRADE 11B GROUP 4

TOPIC TO BE COVERED

I. Introduction of E-commerce
II. Definition of e-commerce system.
III. What does e-commerce work.
IV. How is e-commerce designed (hardware & software
components).
V. Advantages & disadvantages of e-commerce.
VI. Real examples & how it works.
 INTRODUCTION TO E-COMMERCE
 Electronic commerce is sharing business information, maintaining
business relationship and conducting business transaction by means
of internet network.

DEFINITION OF E-COMMERCE
E-commerce or electronic commerce is the process of buying and
selling goods and service over the internet.
It involves the exchange of products or service between businesses,
consumers, or both.
E-commerce business is facilitated through platforms such that
websites, mobile apps , or online market place.
Application of E- commerce
E-commerce is the buying and selling of goods and services
or transmitting of funds or data over an electronic network,
primarily the internet.
E-commerce involves in many online transactions. These are:
Online Retailing: is a type of e-commerce where by whereby a
business sells goods or services directly to the consumer from
a website. This website maybe their own, or its may be owned
by larger retailer or marketplace like Amazon.
Digital products: E-books, software, music, and courses can
be purchased and downloaded online.
Electronic market: information system which are used by
multiple separate organizational entities within one or among
multiple tiers in economic value chains.
Types of E - commerce
B2B Sales: e-commerce is also involves in B2B marketing.B2B sale
are a transactions between a two businesses rather than between a
business and an individual consumer for the consumer’s personal use.
B2C: in this, the company sale the product, goods or services to the
consumers.
C2B: in this, consumer post his products & services online and
company can bit on it and purchase it.
C2C: it means that a consumer would contact a business in search for
suitable customer.
Peer to peer: sharing of computer related files and resources. It can be
used in C2C,B2B,B2C.
 B2G: It is a process of business selling products or services to
government agencies through internet. Ex. Pay tax…
G2C: This model is also part of e-governance. The main objective of
this model is to provide good and effective services to each citizens
and facilities provides through websites.
G2B: It a relationship between government and business.
 How is the E-commerce system
designed?
Hardware components
Servers:
 Web Servers: Host the website and manage client requests.
 Application Servers: Process business logic and manage backend
functions.
 Database Servers: Store and manage data, such as product information
and customer details.
Networking Equipment:
 Routers: Direct traffic between the internet and the local network.
 Switches: Connect devices within the network, facilitating
communication.
Firewalls: Provide security by controlling incoming and outgoing network
traffic.
Storage Solutions:
 Hard Drives/SSDs: Store data for the web and application servers.
 Network-Attached Storage (NAS): Provides centralized data storage
accessible over the network.
Load Balancers: Distribute incoming traffic across multiple servers to
ensure no single server becomes overwhelmed, improving reliability and
performance.
Backup Systems: Ensure data is regularly backed up to prevent loss in
case of hardware failure.
Point of Sale (POS) Systems: For brick-and-mortar locations, these
systems handle transactions and inventory management.
Content Delivery Network (CDN): While technically a software solution,
CDNs often involve distributed hardware that caches content close to
users, improving load times.
Security Devices:
 Intrusion Detection Systems (IDS): Monitor network traffic for suspicious
activity.
 Encryption Hardware: Protect sensitive data, particularly during
transactions.
Customer Devices: While not part of the core infrastructure, the
devices customers use (computers, smartphones, tablets) are critical
for accessing e-commerce platforms.
Development and Testing Hardware: Includes workstations and
testing environments for developers to build and maintain the e-
commerce platform.

Software requirements
E-commerce Platform:
 Shopping Cart Software: Manages product selections, pricing, and
checkout processes .
 Content Management System (CMS): Allows for easy management
of website content.
Payment Gateway:
 Integrates with payment processors to handle transactions securely
Database Management System (DBMS):
 Manages and stores data, such as product details, customer
information, and transaction records .
Customer Relationship Management (CRM):
 Helps manage customer interactions, track sales, and analyze customer
data.
Inventory Management Software:
 Monitors stock levels, manages product listings, and tracks orders.
Marketing Tools:
 Email marketing software, social media management tools, and analytics
platforms for tracking performance.
Security Software:
 SSL certificates for secure connections, antivirus software, and firewalls to
protect against cyber threats.
Shipping and Fulfillment Solutions:
 Software that integrates with shipping carriers to manage logistics and
track shipments
User Experience (UX) and User Interface (UI) Design Tools:
 Tools for designing and optimizing the look and feel of the website
Analytics and Reporting Tools:
 Platforms that provide insights into user behavior, sales trends, and
website performance .
Mobile Applications:
 Native or hybrid apps that provide users with a mobile shopping
experience (developed using tools like React Native or Flutter).
Chatbots and Customer Support Software:
 Tools for providing customer service and support through live chat or
automated responses.
Front-End: This refers to the client side of an application—the part that
users interact with directly. It includes everything the user sees on their
screen, such as the layout, design, and user interface elements.
Technologies commonly used for front-end development include HTML,
CSS, and JavaScript.
Back-End: This refers to the server side of an application, where the
logic, database interactions, and server configuration occur. It handles
data processing, storage, and communication with the front end.
Technologies often used for back-end development include programming
languages like Python, Ruby, Java, and databases like MySQL or
MongoDB.
 The advantage and disadvantage
of E-commerce
Advantages of E-commerce
Convenience: customer can any order that they want at anytime
and any place.
Avoiding intermediaries: this mode of business allows customers
to buy products directly from manufacturers at a cheaper price
avoiding wholesalers and retailers.
Wider reach: the internet made it possible for merchants to
expand their customers.
Varity and Availability: E-commerce platforms offer a wide variety
of products and services, often wit better stock availability
compared to physical stores.
E-commerce helps buyers by saving their time and to find what
they want.
Lower operating cost: E-commerce has reduced overhead costs
compared to maintaining a physical store.
Data analytic: Bussinesses can collect and analyze customer data to
improve marketting strategies and enhance customer experience.
Comparison shopping: shoppers can easily compare price and products
across multipplr vendors.
Disadvantages of E-commerce
1. Security Issues:
 Data Breaches: E-commerce sites can be targets for cyber attacks, risking
customer data like credit card information and personal details.
 Fraud: Online transactions can lead to fraudulent activities, including identity
theft and chargebacks.

2. Lack of Personal Interaction:

 Customer Experience: The absence of face-to-face interaction can lead to a
lack of personalized customer service, making it harder to build trust with
customers.
 Product Experience: Customers cannot physically examine products before
purchase, which can lead to dissatisfaction.

3. Logistics and Delivery Challenges:

 Shipping Issues: Delays, lost packages, and high shipping costs can frustrate
customers and impact business reputation.
 Returns Management: Handling returns can be complex and costly for
businesses, affecting profitability.
4. High Competition:
 Market Saturation: The low barrier to entry means many
businesses compete online, making it difficult to stand out.
 Price Wars: Intense competition can lead to price reductions,
eroding profit margins.

5. Technology Dependence:
 Website Downtime: Technical issues can result in website
outages, preventing customers from making purchases.
 Maintenance Costs: Regular updates and maintenance are
required to ensure security and functionality, which can be costly.

6. Customer Trust and Loyalty:

 Building Trust: New e-commerce businesses may struggle to gain
customer trust without an established reputation.
 Brand Loyalty: Customers may be less loyal to online brands
compared to brick-and-mortar stores, frequently switching based on
price or convenience.
7. Legal and Regulatory Compliance:
 Complex Regulations: E-commerce businesses must navigate
various laws and regulations, including data protection, consumer
rights, and tax compliance, which can be challenging and time-
consuming.
8. Limited Payment Options:
 Payment Barriers: Not all customers have access to credit cards or
online payment systems, potentially limiting the customer base.
 Transaction Fees: Payment processors often charge fees that can
add up, especially for small businesses.