CHAPTER 1: EXECUTIVE SUMMARY Background of e-commerce Electronic commerce is the use of internet and the Web to transact business.

More formally digitally enabled commercial transactions between and among organizations and individuals it commonly known as (electronic marketing) e-commerce or ecommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. About Nepalibazar.com Nepalibazar.com is an online shopping C2C site that will be selling varieties of second hand products to the target customer via internet. The main objective of this site is to provide the product as per the customer demand and to satisfy the customer needs through implementing various means. Business model Nepalibazar.com is C2C (Consumer to Consumer) business model. Marketing Segmentation This site has segmented market on the various bases. Segmentation are done on the basis of demographic segmentation, income segmentation, psychographic segmentation and behavioral segmentation. Thus we will be targeting the people from different area and their capacity to invest money on product. Promotion The basis mean for promotion is through advertisement on various newspapers, magazines and through the means of electronic media. Thus internet itself can serve as the major means of promotion. For instance, advertising about our site is promoted via banner exchange, press release, SEO,blogging etc. Payment method Payments methods that will be used by Nepalibazar will be direct cash on delivery or different cards such as visa, master cards, and SCT cards.

Setup cost (Online payment) The total cost of around Rs 20,000 will incur which includes the cost of development of the website, set up cost, server, software used, administration and the maintenance cost. Since it is an open search it is relatively cheaper. Business problem analysis There are various problem related to the online transaction. The major problem that can be is the security problem. As we all know that online transaction is not so popular in Nepal so Nepal lack strict laws, rules and regulation related to online system i.e cyber law itself. the customer always demand for the strong and desirable security so if there is secure way of online transaction customer demand will be more. On contrary if online payment lacks security than customer may feel insecure will may cause harm to the business. Similarly every people are not educated so most of the people still do not know about the online payment and online transaction. There are people who dont know about the debit cards and credit card system itself. Hence, this concept is still unknown to many people so they may feel discomfort on using such mean payment. Along with that, there is lack of proper system and rules that binds the banks while doing the transaction so people feel doubtful about the online payment mode. Also, the information that is sent via internet isnt considered secure by many due to the hacking problem that surfaces every now and then. Also, there is the problem of continuous load shedding. Solution to the problem of online store The things that can be done to solve the problem of online store are as follows. Consumer awareness (making consumer aware about the online transaction and online payment) Easy process should be implemented while doing the transaction. Proper support from the government sector as online transaction is not an easy task Implementation of cyber law and proper online security.

CHAPTER 2: INTRODUCTION 2.1. Background of e-commerce Today in the world of technology e-commerce and e-business has become one of the major factor for business growth and powerful mechanism for the economic development. E-commerce is digitally enabled commercial transaction between and among organization and individuals. E-commerce is a modern business methodology that addresses the needs of organizations, merchants, and consumers to cut costs while improving the quality of goods and service and increasing the speed of service delivery. More commonly e-commerce is associated with the buying and selling of information products and services via computer networks today and in the future via any one of the myriad of networks that make up the information Superhighway. The various advantages of e-commerce are: Increase the speed and accuracy with which business can exchange information Electronic payments (tax refunds, paychecks, etc) cost less to issue and are more secure. Can make products and services available in remote areas. Enables people to work from home, providing scheduling flexibility

2.2. About Nepalibazar.com Nepalibazar.com is a well-liked website that allows both individuals and companies to sell various new or used products online on a free of charge basis. It is very beneficial from the seller point of view and an ideal place for seller to sell their products online. It helps in the proper and friendly interaction between buyers and sellers and help to execute their new or used products easily. It can be successful company I future through its variety of products and services offered in the market as well as its advertisements based on the customers visit. Through its effectiveness it can cover the wider range of market and will be able to gain maximum customer attention too. The main aim of Nepalibazar.com is an online shopping. This helps to connect buyers and sellers located at various locations. It is the mean to interact and work together though located diverse geographical locations which help in exchange their goods 3

and services. The customers can sell their second hand products to other customers who are eager to buy them. They can use this facility by simply logging into Nepalibazar.com and registering themselves. After registration, they can visit the product category section, enter information about the product and contact information as well as upload photo of the product. After this the buyer willing to buy the product can view the product details and contact the seller for further negotiations about pricing and other details. Nepalibazar.com also offer other services as follows: It provides necessary product detains and contact information through online product catalogue. Advertising can be done in the minimum cost. Sellers can exercise total control over products and services. It allows the sellers to easily update, add, edit & delete advertisements Product details in an effective and less time consuming way. The competitive advantage of Nepalibazar.com over other auctions in the following way:

It provide very easy access to the consumers as a result it help them to save
the time of customer for instance in order to get the product information or to purchase the product consumers do not have to fill forms. This help to develop good customer relationship.

The charges are minimal in Nepalibazar.com. Most of the services provided by

Nepalibazar.com is free as a result customer pay less charge for the product.

Direct transaction can be made by the buyers with the desired parties and can
straightly bargain on the product prices too.

The most commendable part is there is a facility of selling the second hand
products. The sellers can sell their second hand products at a reasonable price.

Nepalibazar.com always focus on the customer service and implement the

ways that can be beneficial to the customer as well as the sellers too. It emphasizes on the trust worthy buyers as well as sellers. It also provides the safety suggestion to both the buyers and sellers. 4

 The cost of promoting the product through Nepalibazar.com is significantly

economical. Our special focus will be on building good relationship with the customers. As the existing customers are most likely to buy other new products of the company as well as can attract new customers through word of mouth, it is essential to satisfy and retain them. Hence ecommerce will help us satisfy these customers by helping to have direct access with customers. This will further help to get the customers complaints and to act on them promptly. We will be using CRM software to have direct link with customers. Vision: To be number one online product selling site 2.3. Business Model Business Model is set of planned activities designed to result in a profit in a marketplace. This business model is at the center of business plan. A business plan is a document that describes a firms business model. An e-commerce business model aims to use and leverage the unique qualities of the internet and the World Wide Web. The eight key elements of the business model are value proposition, revenue model, market opportunity, competitive environment, competitive advantage, market strategy, organization development and management team. Online businesses can be commonly categorized as business to consumer (b2c), consumer to consumer (b2b), and business to business (b2b) business models. Nepalibazar.com follows C2C model. C2C ecommerce is an internet facilitated form of commerce that brings in an online marketplace where they can buy and sell goods of each other. C2C would be a site like eBay where consumers are selling to consumers. When you buy an item from another individual (not a business) that is a C2C transaction. 2.4. Online Opportunities Online business is very popular in the present context and it has covered the wider market. In the context of Nepal online market was not so much but as the passage of 5

time it is increasing its market. People these days prefer new and new means of technology along with the easy access and potential benefit. The use of computer and means of new technologies has increased the opportunity of selling products through web. A secure online website can provide business with powerful competitive advantages, including retail sales as well as streamlined application processes for products such as insurance, mortgages or credit cards. By offering the product and services on the Web, business can gain unique benefits: New costumers Cost-effective delivery channel Streamlined enrolment Better marketing through better customer knowledge

No business can afford to ignore this opportunity. But businesses also cannot ignore the potential pitfalls. Before entering the fiercely competitive e-commerce arena, business must carefully assess and address the accompanying risks. Working online provides various opportunities to both the parties doing business. For the sellers: Increase sales/decreases cost Makes promotion easier for smaller firms Can be used to reach narrow market segments

For the buyers: Makes it easier to obtain competitive bids Provides a wider range of choices Provides an easy way to customize the level of detail in the information obtained Allows anonymity and fees pressure to buy

The other online opportunities can be We can even reach international market through internet 6

It helps to provide 24 * 7 service to customers Increases customer satisfaction as they as put forward their complaints directly to the company and get response very soon It also helps to have direct and immediate contact with suppliers, so there is low replenishment cost. Online catalogue for your product reaching to consumer effectively. Cheap way of advertising your product and services.

2.5. Marketing Strategies No matter how tremendous a firms qualities, its marketing strategy and execution are often just as implement. The best business concept or idea will fail if it is not properly marketed to potential customers. Market strategy is the plan you put together that details exactly how you intend to enter a new market and attract new customers. The main aim of NepaliBazar is an online shopping. This helps to connect buyers and sellers located at various locations. It is the mean to interact and work together though located diverse geographical locations which help in exchange their goods and services. The market can be segmented on the various ways like: demographic segmentation, income segmentation, psychographic segmentation and behavioral segmentation. Similarly, focusing on the target market with the differential strategy and positioning that fits the company. 2.6. Payment Method Payments methods that will be used by NepaliBazar will be direct cash that can be paid at the time of delivery. We will also accept different cards such as visa, master cards, and SCT cards.

CHAPTER 3: BUSINESS PROBLEM ANALYSIS AND SOLUTION 3.1. Problem Statement The sell and purchase of second hand product is common in our context but the entire task is traditionally operated. So, most of the time to reach the right person at the right time for purchase or sell of second hand product is difficult. Moreover, the traditional business system is tedious and inefficient. However, there are some emerging online business available offering the services for selling and purchasing of second hand products. So the major reason to bring our project into action is because there is insufficient market for online sale of second hand products for those who actually prefer to purchase and sell the product and take the benefit out of it. 3.2. Marketing Mix Product The product we offer is basically the second hand product. But its not only restricted to that we also offer the new products. The products that we offer are of different categories like from clothing to gadgets, from automobiles to real estate.

As an e-business builder, we are limited to visual and verbal techniques for presenting our product. We can only show a drawing (static or animated) and describe the features and benefits of our product. And this is done professionally. Price The price of the product that we offer are quoted by the seller who wants to place their product in our website however, a service charge will be charged by NepaliBazaar.com based on the transaction that has been occurred. The minimum service charge starts from 5% of the transaction amount. Place This has to do with location and making products available. On the internet, our store is as distant from customers computer screen. And they are greatly influenced by what they see. Therefore, the e-business builder should have a website that is convincing and professional so that shoppers will have the confidence to place orders. Promotion There are many promotional tools we can use. They include various types of advertising, press releases, publicity, buying leads, traffic exchanges, SEO techniques, article marketing and blogging. We should be guided by our skills set and budget in choosing and selecting the tools to deploy. 3.3. SWOT Analysis for nepalibazar.com Strengths The diversity of product categories within the marketplace that is providing product choice to its customers. Customer focused and user friendly websites that introduces a new interface between buyer and seller relationships. Weaknesses Nepalibazar.com recognizes that there is a potential for counterfeit products to be listed which can result in legal issues for nepalibazar.com and potential negative perceptions from consumers due to the nature of the model in which the seller who lists the product is responsible for the item. 9

 Due to the nature of the on-line buy/sell relationship within nepalibazar.com the ability to increase activity within the marketplace is limited and there is a reliance on those involved in the transaction to drive the sales unlike traditional retail models in which control can be flexed from the retailer. Opportunities Growth through the financial sector can be developed with various medium of electronic payment system such as PayPal, etc. Current practice for the nepalibazar.com places focus on the domestic market however there is the potential for wider business to business transactions which with potential large contracts could see a larger participation return for the business. Threats Low consumer confidence in on-line systems can lead to a decrease in participation also linked to the increasing media coverage of identity fraud and transactional fraud online. Lack of proper implementation of cyber laws ensuring privacy and security for the transactions incurred. 3.4. Competitors in the Market Despite of growth in technology and access over internet over past few years, the ecommerce is not widely practiced in context of Nepal due to various disadvantages and lack of infrastructure available for its operation. Further, the previously operated C2C websites like kinbech.com had to shut down in absence of proper infrastructure as well as due to the limited scope for the market expansion. Thus, the current competitor for nepalibazar.com is only hamrobazar.com. 3.5. Possible Solution Development of the e-commerce websites Implementation of online payment system.

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CHAPTER 4: SYSTEM DESIGN AND IMPLEMENTATION 4.1. System Development Methodology A system development methodology in software engineering is a framework that is used to structure, plan, and control the process of developing an information system. A systems development methodology executes the systems development stage of the system life cycle. The Systems Development Life Cycle (SDLC) is a conceptual model used in project management that describes the stages involved in an information system development project from an initial feasibility study through maintenance of the completed application. In software engineering the SDLC concept includes many kinds of software development methodologies. These methodologies form the framework for planning and controlling the creation of an information system in the software development process. Various software development methodologies are available such as waterfall model, RAD model, spiral model, incremental model and prototyping approaches. We designed Nepalibazar.com using the Waterfall Model of system development. Developing an ecommerce portal using CMS (Content Management System) was easy as compared to coding all the codes ourselves, hence we used the simple waterfall model to develop our system. 11

Waterfall Model The waterfall model is a sequential software development process, in which progress is seen as flowing steadily downwards (like a waterfall) through the phases of Conception, Initiation, Analysis, Design, Construction, Testing and Maintenance.

Implementin g

Maintenance

4.1.1. Requirement Analysis Despite of growth in technology and access over internet over past few years, the ecommerce is not widely practiced in context of Nepal due to various disadvantages and lack of infrastructure available for its operation. Even though there is no payment gateway support by Nepali banks, C2C websites with payment at delivery will obviously be in demand, hence to capture those niche who are in search of C2C website we have planned to develop a website nepalibazar.com. 4.1.2. Design Since we are using OSCommerce an opensource, we had not much choice on design except to use its default design. Since OSCommerce is meant purely for an online ecommerce purpose, there are not much themes as we can find on other CMS like Drupal and Joomla. And since there was no any node or CSS to customize, we used 12

the default theme of OSCommerce. OSCommerce also prepares an maintains all its database itself so we did not have to design the database too. 4.1.3. Coding Nepalibazar.com is build using OSCommerce, a CMS, hence we had not much to do on coding. 4.1.4. Testing Various testing strategies and techniques were used to test the proper functioning of the system. The overall aim to testing was to find errors yet undiscovered so that the software at the users site would function properly without causing any disturbances. Testing Techniques White Box Testing Individual programs were tested with test data to ensure the correctness of the programs .To ensure the correctness of each field of the form, data was entered to check whether the program was properly functioning. Black Box Testing For the validity of the functional requirements of the system, black box testing was conducted. Black-box testing was attempted to incorrect or missing functions, interface errors, behavior or performance errors, and initialization and termination errors. Testing Strategies Unit Testing Initially, tests focus on each component individually, ensuring that it functions properly as a unit. The unit test is white-box oriented, and the step can be conducted in parallel for multiple components. As coding was completed for small components of the programs testing was conducted using test data to ensure the proper working of the component . For example, after the add, update and delete work was completed in the website, to check the data validity and the proper working of the form. Likewise, test data was entered and validated for each form completed. Integration Testing 13

After the testing of individual units, the units were integrated and tested as a part of integration testing. The whole system was scrutinized for proper symbols of the users module and individual screens. Black Box testing techniques are used during integration testing. Validation Testing It was conducted to provide final assurance that software meets all functional, behavioral, and performance requirements. Black-box testing techniques were used exclusively during validation. Validation testing was completed after it is ensured that the software meets the requirements dictated earlier. Beta Testing This testing was conducted by the users after the ecommerce portal was successfully configured. They tested the portal by entering valid data to ensure proper functionality of the portal. In this testing method, the environment is not controlled by the developer. They reported us with all the problems they encountered during the testing phase. Modifications were made to the portal to solve the problems occurred. System Testing The software and other system elements such as hardware, people and information were incorporated with each other and a series of system integration and validation tests were conducted. The primary purpose was to verify that system elements have been properly integrated and perform allocated functions Security mechanisms built into the system i.e. user login, user privileges and authentication of the users were tested to verify the proper functioning of system security mechanisms. Performance testing was done to test the run-time performance of software within the context of an integrated system. 4.1.5. Implementing After the website is tested, the final stage is to implement the system. Nepalibazar.com is hosted by YIPL (Young Innovations Pvt. Ltd) with 10gb web space. 4.1.6. Maintenance Maintenance is ongoing process throughout the life. Maintenance is required to correct the flaws and prevent any flaws on the system.

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4.2. SQA Plan Purpose: To specify how the software quality assurance plans will be handled in the software development life-cycle of the project. The following tasks will be conducted during the development phases in order to ensure quality assurance:

Requirements Review: The team will review the specification continuously to ensure that software requirement specification clearly states the functionality of software and unambiguously declares the requirements that must be satisfied. Design: The team will conduct reviews and conduct analysis of the construction of the software. Strengths and weaknesses of various design techniques will be discussed and scrutinized. Implementation: Informal code reviews will be conducted by the team on a regular basis to ensure consistency with the design and the detection of any error. Testing: Team will conduct tests as presented in the Software Test Plan to ensure the requirement satisfaction and reliability of the software.

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Diagrams 1. Sequence Diagram for Login Description: 1. Login class starts by passing the message Authenticate (Username, password) to the Authenticate class. 2. If the authentication becomes successful,

If user type=Admin, the user enters the Admin class and if user type=user, it enters the User class. 3. If the authentication becomes unsuccessful, User cannot log into the system .Error Message box appears displaying error message.

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Figure: Sequence Diagram for Login (Administrator and other User)

2. Activity Diagram of Nepalibazar.com

Buyer: 1. Can create account 2. Searches listing for item 3. Places Bid 4. Purchase item Seller: 1. Creates Account 2. Searches listing for item 3. Creates an auction 4. Ships item

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CHAPTER 5: INTRODUCTION TO XAMPP OSCOMMERCE AND OPEN SOURCE 5.1. XAMPP XAMPP is an integrated server package of Apache, mySQL, PHP and Perl (the AMPP in XAMPP) that all run from a removable drive. Everything is pre-configured and ready to go just by unzipping or installing it. Features: XAMPP is a complete web, database and FTP server package for Windows that's ready to go in minutes and completely portable. The full XAMPP package includes:

Apache MySQL PHP + PEAR MiniPerl OpenSSL phpMyAdmin XAMPP Control Panel Webalizer Mercury Mail Transport System FileZilla FTP Server SQLite ADODB Zend Optimizer XAMPP Security

5.2. osCOMMERCE osCommerce is an online shop e-commerce solution that offers a wide range of outof-the-box features that allows online stores to be setup fairly quickly with ease, and is available for free as an Open Source based solution released under the GNU General Public License. osCommerce was started in March 2000 and has since matured to a solution that is currently powering 11,862 registered live shops around the world. 18

Today, osCommerce has been taken to the next level, moving towards an ecommerce framework solution that not only remains easy to setup and maintain, but also making it easier for store administrators to present their stores to their customers with their own unique requirements. The success of osCommerce is secured by a great and active community where members help one another out and participate in development issues reflecting upon the current state of the project. 5.3. Open Source Open source software is defined by its attached license guaranteeing anybody rights to freely use, modify, and redistribute the software. Open Source is a certification mark owned by the Open Source Initiative. Developers of software that is intended to be freely shared and possibly improved and redistributed by others can use the Open Source trademark if their distribution terms conform to the OSI's Open Source Definition. To summarize, the Definition model of distribution terms require that:

Free Redistribution: No restrictions are placed on parties from selling of giving away the software. Source Code Availability: The software must include source code and must also allow for binary distributions when there is a well-publicized means of obtaining the source code.

Derived Works: Modifications and derived works must be allowed, and must be distributed under the same terms as the license of the original software. Integrity of the Authors Source Code: The distribution of modified source code must be allowed although restrictions to ensure the possibility to distinguish the original source code from the derived works are tolerated. For example, the possibility of using different software names.

No Discrimination Against Persons or Groups: The license must not discriminate against any person or group of persons. No Discrimination Against Fields of Endeavor: The license must not restrict anyone from making use of the program in a specific field of endeavor. 19

For example, it may not restrict the program from being used in a business, or from being used for genetic research.

Distribution of License: The rights attached to the program must apply to all to whom the program is redistributed without the need for execution of an additional license by those parties.

License Must Not Be Specific to a Product: The rights given by the license must not be different for the original distribution and any other one even when it takes place in a totally different context.

License Must Not Contaminate Other Software: The license must not place restrictions on other software that is distributed along with the licensed software. For example, the license must not insist that all other programs distributed on the same medium must be open-source software.

5.4. Configuring XAMPP for nepalibazar.com Step1: Installation of XAMPP Location: C:\xampp Step2: Copying OSCommerce at htdocs Location: C:\xampp\htdocs\oscommerce Step3: Run xampp_start.exe to start XAMPP Step4: Open the browser and enter address http://localhost/xampp/ at a left panel in Tools, click on phpMyAdmin to create new database.

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Step5: Go to address http://localhost/oscommerce Install website for the first time.

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Step6: Give database detail

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Database Server = localhost Username = root Password = null Database Name = Nepalibazar

Then click continue Step7: Enter online store setting

Store name = NepaliBazar.com Store owner name = Sanam/Dixit/Sujata/sheela Store Owner E-Mail Address = none@none.com Administrator Username = Sanam Administrator Password = xhrestha 23

Then click continue

Step8: OSCommerce is successfully configured.

You can click catalog to view your page or can click Administration tool to Edit/Add/Delate products in a site. 5.5. User Manual User Manual: A user manual is developed to instruct on how to use the software. User Manual for User: To visit the site go to url: http://localhost/oscommerce/

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Once the page is opened you can view the products on sale by browsing through the category and and browsing by manufacturer. Similarly you can use features like search and other features, but you cannot buy products or add products to your cart until and unless you create your account and start using logging to your account. To create new account/Logging to your account: To create a new account or log to existing account click My account to the upper right corner.

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To create new account, on a new customer panel click continue:

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Add all information in the field and click continue.

If you already have account , then go to returning customer, enter your email id and password and log into your account. To Make Purchase: Once you log with your email id and password, you can browse the product you want to buy through various category and by manufacturer. Example: If I need to buy Toyota Hilux, then in the category Automobiles I will choose cars and I will click on buy now to add the product in my shopping cart.

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Once I click on buy now, the product will be added on my shopping cart and all the product I have added to shopping cart till now will be shown in the shopping cart.

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After you have decided on the products to be bought you can check out by giving the shipping address and continue.

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While providing the shipping address all the products in a cart and total amount of the entire product is showed in the right corner. User Manual for Admin: To go to the admin section visit Url: http://localhost/oscommerce/admin/

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Enter Username and Password: Username: Sanam Password: xhrestha

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Once you logged into the system now you can use all the features. Among various features, we will discuss only about the steps on: 1. Adding new category 2. Adding new Product 3. Adding new manufacturer How to add new category: To add new category, go to content and category (dropdown), at right side click on insert.

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After you click on insert you will be navigated to the page to insert new category. Parent category: Leave parent category as it is if you want to add new category, Eg: Automobiles If you want to add new category under the parent category (Eg: car under the parent category Automobiles) then hover the mouse to parent category and choose automobiles Type the category name in the box name to add the category

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How to add new Product: To add new product go to content >Product>new product

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Enter each field and save the data, to enter price and enable the product listing go to Data next to General and check button Enable in a status. Similarly you can add manufacturer and image and on a category you can add category. Save it.

How to add new Manufacturer: Go to content > Manufacturer

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To add new manufacturer click on insert and add new manufacturer.

CHAPTER 6: CONCLUSION 36

The growth of the internet, the globalization of trade, and the rise of information economies has increased the role of information system (IS) in business and management. With the increasing importance of information systems, most of the organizations are moving towards acquiring and developing information system. The system that we have developed is to overcome the traditional way of doing business through implementation of e-commerce websites for C2C business transactions. The main target of our website is the customers who are willing to purchase and sell second-hand product. However, we also do offer new products. Before the development of the website, people were having problem in reaching the right person at the right time. However, our websites have helped our customers to overcome the disadvantages of traditional way of doing business providing with efficiency and effectiveness. After the development of the website, now the customer can get the information with a single click. Through our website customer can add their choices in the shopping cart. This has helped the customer to save their time and money as well. Our website is C2C model developed on XAMMP web server where osCommerce is used to design frontend and MYSQL is used to design backend. XAMPP is a free and open source cross-platform web server package, consisting scripts mainly written of the in Apache, MySQL database, and interpreters for

the PHP and Perl programming languages. Thus we can say that Nepalibazar.com facilitates the speed and efficiency with which information regarding the purchase and sell of the product required by the users can be processed, stored and retrieved. In addition to this it is cost effective, user friendly, facilitate access to information to customers, provide 24-hours service and more reliable and secured for performing transaction.

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