E-COMMERCE:

INTRODUCTION AND
BASICS

SUBMITTED BY: SUBMITTED TO:

CLASS:
SEMESTER:
ROLL NUMBER:
TUSHAR CHAUDHARY
MS. HARSIMRAN MAAM
BCOM I
II
1611380
TOPICS TO BE COVERED:
MEANING OF E-COMMERCE
HISTORY
E-COMMERCE TIMELINE
FEATURES
IMPORTANCE
ADVANTAGES
DIS-ADVANTAGES
TOOLSOF E-COMMERCE
E-COMMERCE VS TRADITIONAL COMMERCE
MEANING OF E-COMMERCE:
E-commerce is a transaction of buying or selling
online. 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 for at least one part of the
transaction's life cycle although it may also use
other technologies such as e-mail.
HISTORY:
Ecommerce was introduced 40 years ago and, to this day,
continues to grow with new technologies, innovations, and
thousands of businesses entering the online market each year. The
convenience, safety, and user experience of ecommerce has
improved exponentially since its inception in the 1970s.
As far back as the 1960s, businesses were using primitive
computer networks to conduct electronic transactions. Using
something called Electronic Data Interchange (EDI), a company's
computer system could share business documents (invoices, order
forms, shipping confirmation) with another company's computer. In
the beginning, each company had its own standards for formatting
these documents. But in 1979, the American National Standards
Institute came up with something called ASC X12, a universal
standard for sharing business documents over electronic networks.
 By the early 1980s, individual computer users (still mostly
at major research universities) were sending e-mails,
participating in listservs and newsgroups, and sharing
documents over networks like BITNET and USENET.
In 1990, a researcher named Tim Berners-Lee at the
European Organization for Nuclear Research proposed
a hypertext-based web of information that a user could
navigate using a simple interface called a browser. He
called it the "WorldWideWeb
In July 1995, Jeff Bezos boxed up the first book ever sold
on Amazon.com from his Seattle garage. Within its first 30
days of business, the self-proclaimed "Earth's largest
bookstore" sold books to online shoppers in all 50 U.S.
states and 45 countries.
In 1996, with two full-time employees, eBay sold $7.2
million worth of goods. By 1997, with the help of a Beanie
Babies frenzy, eBay sold $95 million in goods. In 2007,
eBay sold $52.5 billion in auctions, had more than 220
million registered users and 13,000 employees.
E-COMMERCE TIMELINE:
 1960-1982
Paving the way for electric commerce was the development of
the Electronic Data Interchange(EDI). EDI replaced traditional
mailing and faxing of documents with a digital transfer of data
from one computer. Michael Aldrich, an English inventor, innovator
and entrepreneur is credited with developing the predecessor to
online shopping to another. In 1979 Aldrich connected a television
set to a transaction processing computer with a telephone line and
created what he coined, teleshopping, meaning shopping at a
distance.
1982-1990
It was apparent from the beginning that B2B online shopping
would be commercially lucrative but B2C would not be successful
until the later widespread use of PCs and the World Wide Web,
also known as, the Internet. In 1982, France launched the
precursor to the Internet called, Minitel. By 1999, over 9 million
Minitel terminals had been distributed and were connecting
approximately 25 million users in this interconnected network of
machines. The Minitel system peaked in 1991 and slowly met its
demise after the success of the Internet 3 years later.
90s To Present
In 1990 Tim Berners Lee, along with his friend Robert
Cailliau, published a proposal to build a Hypertext
project called, WorldWideWeb. That same year, Lee,
using a NeXTcomputer created the first web server and
wrote the first web browser. Shortly thereafter, he went
on to debut the web on Aug. 6, 1991 as a publicly available
service on the Internet. When Berners Lee decided he
would take on the task of marrying hypertext to the
Internet, in doing that, the process led to him developing
URL, HTML and HTTP. In September 1995, the NSF began
charging a fee for registering domain names. 120,000
registered domain names were present at that time and
within 3 years that number grew to beyond 2 million.
FEATURES OF E-COMMERCE:
UBIQUITY- The traditional business market is a physical place, access to
treatment by means of document circulation. E-commerce is ubiquitous
meaning that it can be everywhere.
GLOBAL REACH- E-commerce allows business transactions on the cross
country bound can be more convenient and more effective as compared
with the traditional commerce.
UNIVERSAL STANDARDS- E-commerce technologies is an unusual
feature, is the technical standard of the Internet, so to carry out the
technical standard of e-commerce is shared by all countries around the
world standard.
INTERACTIVITY- They allow for two-way communication between
businesses and consumers.
INFORMATION DENSITY- The density of information the Internet has
greatly improved, as long as the total amount and all markets, consumers
and businesses quality information.
PERSONALISATION- Business can be adjusted for a name, a person's
interests and past purchase message objects and marketing message to a
specific individual. The technology also allows for custom.
IMPORTANCE OF E-COMMERCE:
INFLUENCES PURCHASE DECISIONS-When customers are deciding on
a purchase, they start by looking online. Your website is your showroom,
where customers can research your product and see all the reasons it is
right for them.
CONVENIENT-Whether they're just getting through the door after a 10-
hour work day, or getting the shopping done at the crack of dawn before
the kids get up, customers appreciate the convenience of online shopping.
CAN BROADEN YOUR BRAND-eCommerce can be used to broaden your
range of products for sale, bringing you more custom and diversifying
your sales.
PERSONALISED EXPERIENCE-There are many ways in which
eCommerce can be used to forge a more personal connection with
customers. Busy browsers can enter their brand preferences and size,
and receive regular personalized newsletters full of bargains to suit them.
CONCLUSION- eCommerce offers businesses a vital opportunity to offer
their customers round-the-clock convenience. A good eCommerce strategy
that adds excellent customer service and a dynamic social media presence
into the mix can spell higher traffic and better sales for your business.
ADVANTAGES OF E-COMMERCE:
Faster buying/selling procedure, as well as easy
to find products.
Buying/selling 24/7.
More reach to customers, there is no theoretical
geographic limitations.
Low operational costs and better quality of
services.
No need of physical company set-ups.
Easy to start and manage a business.
Customers can easily select products from
different providers without moving around
physically.
DISADVANTAGES OF E-COMMERCE:
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.
WEBSITE DESIGN AND
DEVELOPMENT
WEB HOSTING TOOLS
SHOPPING CARTS
CARD PROCESSING TOOLS
ONLINE SERVICE PROVIDERS
RESEARCH TOOLS

TOOLS OF E-COMMERCE:
 WEBSITE DESIGN AND DEVELEPMENT-
Building a website is first and foremost requirement to
start any e-business. It provides the business with an
interface with the customers. In order to be effective, this
interface should be attractive, contain relevant information
and should be easy to use. Website builders are the tools
that allow the construction of websites without manual
code editing. These tools are divided into two categories :
Online proprietary tools
Offline software tools
WEB HOSTING TOOLS- Web hosts are the
companies that provide space on a server owned or leased
for use by clients, as well as provide internet connectivity
in its data centers. They can also provide data center space
and connectivity to other servers located in their data
center, called colocation. If an organisation wants to set up
e-commerce application, it is very important for it to have
their website hosted on any of these web hosts.
SHOPPING CARTS- A shopping cart is a piece of
E-Commerce software on a web server that allows visitors
of the E-Commerce website to select items they are
interested to purchase and this is known as placing items
in the shopping cart or add to cart. These applications
provide a means of capturing a clients payment
information.
 CARD PROCESSING TOOLS: Card
processing tools are very important for an E-Business as
these have all the required infrastructure to provide
security to the customer information and at the same
time, to make sure that the business is also not duped.
In a single E-Commerce transaction, a number of
participants play a key role. These include the customer,
the merchant, the payment gateway, the acquiring
banks processor, the credit card interchange, the
customers credit card issuer and the merchants
acquiring bank.
O NLINE SEARCH PROVIDERS: There is
a constant need of keeping an update of customers,
suppliers, their issues and means to have effective
communication.
E-COMMERCE VS TRADITIONAL
COMMERCE:
CONCLUSION:
In general, todays businesses must always strive to create
the next best thing that consumers will want because
consumers continue to desire their products, services etc.
to continuously be better, faster, and cheaper. In this
world of new technology, businesses need to accommodate
to the new types of consumer needs and trends because it
will prove to be vital to their business success and
survival. E-commerce is continuously progressing and is
becoming more and more important to businesses as
technology continues to advance and is something that
should be taken advantage of and implemented.
 U! !
YO
AN K
TH