THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA (ICAI)

Bareilly Branch of CIRC

ITT PROJECT ON E-COMMERCE

Submitted To: Miss Arti Shukla

SUBMITTED BY: Somesh Rathi REG. NO. : CRO0440090 BATCH NO. : 66

Acknowledgement
Words often fail to express once inner feelings of gratitude and indebtedness to once benefactors. But then it is the only readily available medium through which the undersigned can express his/her sincere thanks to all those who are associated with the work in one way or the other. A project can never exist and thrive in solitude. Project work is never the work of an individual. It is more combination of use, suggestions, contribution and work involving many individuals. This project bears the impact of many people. Thus one of the most pleasant part of writing this report is the opportunity is to thank all those who have contributed towards it. I am grateful to Ms. Arti Shukla for giving me such a challenging project to work upon. I hope this challenge has brought the best out of me.

CONTENTS Introduction
What is Commerce What is E-Commerce Techniques Of Businesses Prevalent Why To Use E-Commerce Brief History Of E-Commerce The Process Of E-Commerce

 Types of E-Commerce B2B B2C

B2E
C2C Pros & Cons Of E-Commerce E-Commerce Law

Introduction
What Is Commerce???
Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer. It comprises the trading of something of economic value such as goods, services, information or money between two or more entities.

What Is E-Commerce???
Commonly known as Electronic Marketing. It consists of buying and selling goods and services over an electronic systems such as the internet and other computer networks. E-Commerce is the purchasing, selling and exchanging goods and services over computer networks (internet) through which transaction or terms of sale are performed electronically.

Techniques of Business Prevalent

WHY USE E-COMMERCE???

LOW ENTRY COST REDUCES TRANSACTION COSTS ACCESS TO GLOBAL MARKET SECURE MARKET SHARE PROVIDE COMPARISON SHOPPING LOCATE THE PRODUCT QUICKER ENABLE DEALS, COUPONS AND GROUP BUYING

BRIEF HISTORY OF E-COMMERCE

1970s: Electronic Funds Transfer (EFT) Used by the banking industry to exchange account information over secured networks. Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies. Used by businesses to transmit data from one business to another. 1990s: the World Wide Web on the internet provides easy-touse technology for information publishing and dissemination Cheaper to do business (economies of scale) Enable diverse business activities (economies of scope)

The Process Of E-Commerce

 A consumer uses web browser to connect to the home page of a merchants website on the internet.
The consumer browses the catalog of products featured on the site and selects items to purchase. The selected items are placed in the electronic equivalent of a shopping cart. When the consumer is ready to complete the purchase of selected items, she provides a bill-to and ship-to address for purchase and delivery. When the merchants web server receives this information, it computes the total cost of the order including tax, shipping, and handling charges and then displays the total to the customer. The customer can now provide payment information, such as a credit card number, and then submit the order. When the credit card number is validated and the order is completed as the Commerce Server site, the merchants site displays a receipt confirming the customers purchase.

TYPES OF E-COMMERCE

BUSINESS-TO-BUSINESS(B2B)
B2B stands for Business to Business. It consists of largest form of E-commerce. This model defines that buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler. E.G.:-Dell deals in computers and other associated accessories online but it does not make up all those products. So, in govern to deal those products, first step is to purchase them from unlike businesses i.e. the producers of those products.

BUSINESS-TO-CONSUMER(B2C)
It is the model taking businesses and consumers interaction. The basic concept of this model is to sell the product online to the consumers. B2C is the direct trade between the company and consumers. It provides direct selling through online. For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from suppliers website.

PROS

 No checkout queues Reduce prices You can shop anywhere in the world Easy access 24 hours a day Wide selection to cater for all consumers Overcome Geographical Limitations Gain New Customers With Search Engine Visibility Lower Costs Locate the Product Quicker Eliminate Travel Time and Cost Provide Abundant Information Remain Open All the Time

CONS
Unable to examine products personally Not everyone is connected to the internet There is the possibility of credit card number theft On average only 1/9th of stock is available of the net E-commerce is not free Security Customer Relations Problems Products People won't buy online

E-COMMERCE LAW

Cyber risk is now a board level responsibility1. The benefits of a cyber risk strategy to a business should be clear. Adopting a risk management approach to cyber security can result in significant benefits for an organization: strategic - risk identification and evaluation; financial - in particular reduced losses from cyber threats; and operational - including adequate contingency plans to deal with cyber threat.

The directors set the culture of a business. UK and EU legislation and regulation however also compel boards to be responsible for direct supervision of the business' conduct and reputation. Other examples include: Bribery and corruption: in particular following the advent of the Bribery Act 2010; Data protection: the new data protection regulation is likely to come into force in 2016 and will place explicit duties on the dataprotection officer, who must be associated with the board; Community and environment: the Companies Act 2006 requires directors to have regard to the community and environment (section 172(1)(b)).

Cyber security is a complex issue. To illustrate the complexity by analogy, a tank requires in its design a detailed evaluation against specific threats that it may encounter in the field of: (a) mobility (speed); (b) weight (armour); (c) firepower (weaponry). A balance of all three elements is required: without speed it will be destroyed, without armour it will be destroyed, without firepower it will be destroyed. The proper balance in the field against the threats it encounters results in increased survivability for tank and crew. Cyber security also has three corners: Physical security - protection of the assets, data centre networks and communications; People - personnel reliability; Data security - protection of data, which is the life blood of any business, including encryption and storage.

E-Commerce websites
Nowadays there are many websites which are offering

facilities to shop online and in metropolitan cities, its very popular to shop online. But still in less developed cities its not very popular but yes people have heard about it. It is a very helpful option to those people who dont get time to go out for shopping. Various websites are like-

 www.jabong.com

www.amazon.com
www.quicker.com www.myntra.com www.flipkart.com www.yebhi.com www.ebay.in www.homeshop18.com

Payment Mode In E-COMMERCE

Debit Card

Credit Card
Cash On Delivery

E-COMMERCE IN PRESENT