PRESENTED TO:

Mr. MANISH KUMAR

PRESENTED BY: DUSHYANT KUMAR DINESH GUPTA HARSHIT AGARWAL GULSHAN KUMAR

 Introduction of e-commerce History of e-commerce Types of e-commerce Electronic Data Interchange Advantage of e-commerce Disadvantage of e-commerce Future of e-commerce

E-Commerce is a type of industry where the buying & selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI),inventory management systems and automated data collection systems. Modern electronic commerce typically uses the World Wide Web.

1. 1970s: Electronic Funds Transfer (EFT) -Used by the banking industry to exchange account information over secured networks. 2. 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. 3. 1990s: the World Wide Web on the Internet provides easyto-use technology for information publishing and dissemination. -Cheaper to do business (economies of scale). -Enable diverse business activities (economies of scope).

B2B (Business-to-Business):
Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. It consists of largest form of Ecommerce. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler. For example:-Dell deals computers and other associated accessories online but it is does not make up all those products. So, in govern to deal those products, first step is to purchases them from unlike businesses i.e. the producers of those products.

B2C (Business-to-Consumer):

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.

C2B (Consumer-to-Business):
Business-to-employee (B2E) electronic commerce uses an intrabusiness network which allows companies to provide products and/or services to their employees. Typically, companies use B2E networks to automate employee-related corporate processes.

C2C (Consumer-to-Consumer)
There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995.

Electronic Data Interchange is the computer-tocomputer exchange of routine business data between trading partners in standard data formats.

This definition contains 3 key concepts about EDI:

Computer-to-computer: EDI in its most efficient form flows directly out of a senders computer system directly into a receivers computer system without any human intervention; however, it is not always possible for EDI to flow in this most efficient manner. Routing business data: EDI is used for routine business documents like Purchase Orders and Invoices. It is not used for non-routine business documents like complicated contracts or information meant for humans to read and analyze.

Standard data formats: A standard definition of the location and structure of the data is provided.

The diagram above illustrates how much slower the conventional paper process than the EDI process. Additionally, the conventional paper process includes substantially more human intervention to move business information from one company to another.

Benefits of EDI
Speed Data can move directly out of one computer system and into another with little to no delay.

Accuracy Errors are reduced because data is not being rekeyed. Error rates from entering data are between .5 3%. On large volumes of transactions, the possibility for the introduction of errors is enormous.
Simplicity EDI standards specify how data will be formatted and where it can be found.

Security Much less likely to lose information transmitted through EDI than information sent via mail. EDI can be accessed only by authorized users, and then there are audit trails and archives of data. EDI data cannot be easily changed by unauthorized users. It is also not subject to viruses.

Faster buying/selling procedure, as well as easy to find products. To consumers: 24/7 access, more choices, price comparisons, improved delivery, competition To organizations: International marketplace (global reach), cost savings, customization, reduced inventories, digitization of products/services To society: flexible working practices, connects people, delivery of public services Low operational costs and better quality of services. No need of physical company set-ups. Easy to start and manage a business.

Any one, good or bad, can easily start a business. And there are many bad sites which eat up customers money. There is no guarantee of product quality.

Mechanical failures can cause unpredictable effects on the total processes.

As there is minimum chance of direct customer to company interactions, customer loyalty is always on a check. There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways, all are always prone to attack.

E-COMMERCE TODAY
The Internet allows big businesses to act like small ones and small businesses to act big. The challenge to businesses is to make transactions not just cheaper and easier for themselves but also easier and more convenient for customers and suppliers. No other mechanism has been created that allow organizations to reach out to anyone and everyone like the Internet. Its cheap and relatively easy to use it as a medium for connecting customers, suppliers, and employees of a firm.

LIMITATIONS OF E-COMMERCE
To organizations: lack of security, reliability, standards, changing technology, pressure to innovate, competition, old vs. new technology To consumers: equipment costs, access costs, knowledge, lack of privacy for personal data, relationship replacement To society: less human interaction, social division, reliance on technology, wasted resources, JIT manufacturing.

According to business world estimate near about Sixty thousand new jobs will be created for the internet world alone in the next two years. E-Commerce transactions are expected to cross the Rs. 3500 crore milestone in 2010-11, a jump of around 350 percent from the 2008-09 figure of Rs. 1000 crore. E-Bay said that consumers were trading goods worth almost three crore rupees everyday, across the globe.