Understand the intricacies of setting up an online E-Commerce store. Learn the basic fundamentals of B2B vs B2C E- Commerce portal and major components in an EC Development process.

1. Ms. Anubha Rastogi
Astt. Prof, Vidya School Of Business
2017-18

2. Web Chain of Events
Anubha Rastogi | VSB
Introductory Notes
Web Chain Analysis

3. Web Chain Analysis
Anubha Rastogi | VSB

4. Customer Lifetime Value
Customer Lifetime Value is the present value of future cash flows attributed to the customer
relationship. It depends on:
• the customer’s activity level
• duration
• the firm’s retention spending
• other related costs and benefits attachable to a specific customer or customer segment.
The Internet can be used as a tool for Customer Value Analysis.
Valuable sources of data are:
• The Consumer Demographic profile
• The Consumer search and browsing history
• The Consumer Click behaviours
• The Consumer Online Transaction
Anubha Rastogi | VSB

5. Customer Lifetime Value
Customer Value Analysis
Anubha Rastogi | VSB

6. Internet and Its Benefits to Organizations
Business Models
Revenue Benefits
• Advertising Models
• Subscription Models
• Transaction Models
Anubha Rastogi | VSB

7. Pricing in the Virtual World
Three Pricing Questions are
Important for E-marketers
• How does the presence of the internet change the price sensitivity
of products and services?
• How can online content be used to influence the price sensitivity of
customers?
• What new pricing tools and methods work better on the internet
than through more traditional methods?
Price Effects in Online Domain
• Reference price effect
• Difficult comparison effect
• Switching cost effect
• Price quality effect
• Value uncertainty
• Purchase importance
Anubha Rastogi | VSB

8. 8
• Development sites:
A test site; low-cost
• Intranets:
Available internally only
• B2B and B2C commerce sites
• Content delivery site
Each type of site has a different
purpose, requires different hardware
and software, and incurs varying costs.
Types of Web sites
Commerce sites must be available 24 hours a
day,
7 days a week. Requirements include:
• Reliable servers
• Backup servers for high availability
• Efficient and easily upgraded software
• Security software
• Database connectivity
B2B sites also require certificate servers to
issue
and analyze electronic authentication
information.
Commerce Sites
Anubha Rastogi | VSB

9. • E-mail service
• Use of FTP to upload and download information
• Shopping cart software
• Multimedia extensions (sound, animation, movies)
• Secure credit card processing
Web hosts are Internet service providers
who also allow access to:
• E-commerce software
• Storage space
• E-commerce expertise
You can choose:
• Managed hosting: the service provider
manages the operation and oversight of all
servers
• Unmanaged hosting: the customer must
maintain and oversee all servers
What is Web hosting?
Will the site be hosted in-house or by a provider?
Factors to consider:
• The bandwidth and availability needed for the
expected size, traffic, and sales of the site
• Scalability: If the Web site needs to grow or has
a sudden increase in traffic, can the provider
still handle it?
• Personnel requirements or restraints
• Budget and cost effectiveness of the solution
• Target audience: Business-to-customer (B2C) or
business-to-business (B2B)
Hosting Considerations
Services provided
• Access to hardware, software, personnel
• Domain name, IP address
• Disk storage
•Template pages to use for designing the site Anubha Rastogi | VSB

10. E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the
transmitting of funds or data, over an electronic network, primarily the internet. These business
transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer
or consumer-to-business. The terms e-commerce and e-business are often used interchangeably.
The term e-tail is also sometimes used in reference to transactional processes for online
shopping.
EXAMPLES
• ATM
• Selling physical goods using websites, e.g. flowers, shoes, magazines, electronic items.
• Reserving a hotel room online.
• Buying an oil pump from a supplier for car engine assembly.
• Buying a component from a plant within the same company using Intranet.
What Is E-Commerce ?
Anubha Rastogi | VSB

11. E-commerce business models
Anubha Rastogi | VSB
Alibaba.
Amazon Business.
Zendesk.
OverDrive.
Medline.
Grainger.
eBay.com
Olx
Etsy
Facebook
Hiring Websites
Monster
Career builder
Glassdoor
All Major sites AADHAR,
Passport
Company registration
E-tenders
Online filing of tax returnsTaxes, reports E-Governance (RARE)

12. Basic E-Commerce Strategies
• Reach (access and connection with customers)
• Richness (depth and detail of information to/from customers)
• Affiliation (advancing customers’ interests)
Multistage Model for E-commerce
• Search and identification
• Selection and negotiation
• Purchasing products and services electronically
• Product and service delivery
• After-sales service
Anubha Rastogi | VSB

13. 13
Model of an Electronic Exchange
Anubha Rastogi | VSB

14. Principles of Information Systems, Seventh Edition 14
Model of Supply Chain Management
Anubha Rastogi | VSB

15. • Early e-commerce shopping used forms-based check out methods. Required writing down product codes, unit prices, etc.
• A shopping cart:
– Keeps track of items selected
– Allows you to view the items in a cart
– Allows you to change quantities of items
• Because the Web is stateless, information must be stored for retrieval. One way to do this is to use cookies, bits of
information stored on the client’s computer.
Requirements:
• A catalog display
• Shopping cart capabilities
• Transaction processing
• Tools to populate the store catalog and to
facilitate storefront display choices
Any e-commerce software must be integrated
with existing systems:
– Database
– Transaction processing software
B2C e-commerce
• Small storefront (fewer than 35 items)
– Simple listing of products
– No particular organization
• Larger catalog
– Store product information in database
– More sophisticated navigation aids
– Better product organization
– Search engine
Catalog display
Shopping carts

16. • Usually performed with a secure connection.
• May require the calculation of:
– Sales tax
– Shipping costs
– Volume discounts
– Tax-free sales
– Special promotions
– Time sensitive offers
• Details about transactions must be tracked for
accounting, sales reports.
Transaction processing
Business-to-business e-commerce requires
tools and
capabilities different from those required for
business-
to-customer systems.
• Encryption
• Authentication
• Digital signatures
• Signed receipt notices
• The ability to connect to existing legacy
systems, including Enterprise Resource
Planning (ERP) software. ERP integrates all
facets of a business including planning,
sales, and marketing.
B2B e-commerce
Integration
Three sources require integration:
• Downstream : between firms and customers,
including channel intermediaries(distributors)
• Upstream : between the firm and its suppliers
• Internal : Information held internally within
the organisation and ideally shared and
accessible across functions.
Advantages of the Internet

17. The nature of the channels and the support required will vary for the following reasons:
• The Complexity of the products on offer
• Their monetary value
• The competitive advantage offered by the channel
• Known customer service expectations
Online Value Paradigms
New Intermediaries
Playing vital roles in two key areas
of the purchasing process:

18. Functions of Shopping Carts Payment Service Providers
E-procurement

19. E-procurement Value Chain
5 Useful E-commerce Applications on Facebook

20. Measuring E-commerce Success-
The DeLeone and McLean Model
Monitoring Social Media
Presence of E-commerce Brands
E-Commerce Applications:
Retail and Wholesale
• Electronic retailing (e-tailing): the
direct sale from business to
consumer through electronic
storefronts, typically designed
around an electronic catalog and
shopping cart model
• Cybermall: a single Web site that
offers many products and services
at one Internet location
• Manufacturing, repair, and
operations (MRO) goods and
services

22. B2C STOREFRONTS
• A product presentation function
• An order entry function
• An electronic payment function: credit card, debit
card, COD, check (before delivery), and invoice
(after delivery).The function should provide the
necessary security through Secure Socket Layer
(SSL), Secure Electronic Transactions (SET), or some
other protocol
• An order fulfillment function
• A customer service function: include FAQs,toll-free
telephone numbers, e-mail, and chat rooms.
• A product support function: initial setup and
installation, regular operation, troubleshooting,
return policy, ongoing maintenance, and warranty
or non warranty repair or replacement.
SUPPLIER SELL-
SIDE B2B SITES
• Personalized catalogs and Web pages
for all major buyers
• A B2B payment gate
• Electronic contract negotiation
features
• Product configuration by customers
(e.g., Cisco or Dell)
• Affiliate program capabilities
• Business alerts (e.g., to special sales,
to news)

23. Reverse Auctions and Tendering Systems
• Catalog of items to be tendered and their content management
• Search engine (if the site has many items)
• Personalized pages for potential large bidders
• Reverse auction mechanisms, sometimes in real time
• Facility to help prepare, issue, manage, and respond to a buyer’s request for quotes (RFQs)
• Ability to bid dynamically
• Automatic vendor approval and workflow (e.g., SmartMatch’s supplier identification technology)
• Electronic collaboration with trading partners
• Standardization of RFQ writing
• Site map
• Mechanism for selecting suppliers
• Automatic matching of suppliers with RFQs
• Automatic business process workflow
• Ability for bidders to use m-commerce for bidding
• Automated language translation

24. Forward Auctions
• Both the seller and the buyer complete the online registration process, including providing
shipping points and regulatory and banking information.
• The seller starts an auction by listing the product, the asking price, and the quantity on a
form.
• The buyer chooses a bid product and indicates a bid price and quantity. The buyer may
also set the maximum price and bid increments.
• Sophisticated software determines the auction winner, based on price, volume, and
timing.
• A funds transfer from the bidder takes place immediately.
• Upon successful funds transfer, a freight company is dispatched to the seller’s location; the
product is loaded and delivered to buyer’s location.
• The buyer inspects and accepts the product.
• Funds are released to the seller.
The capabilities of forward auctions can be best viewed at ebay.com.

25. Development Options
Developers have three major options for developing an EC application:
• Build from scratch. This option is used rarely. It should be considered only
for specialized applications for which components are not available. It is
expensive and slow, but it may provide the best fit.
• Build from components. The required applications are often constructed
from standard components (e.g., Web servers such as Apache or Microsoft’s
IIS) using Web scripting languages, such as PHP, Microsoft’s Active Server
Pages (ASP), JavaServer Pages ( JSP), or ColdFusion.
• Enterprise application integration. The enterprise application integration
(EAI) option is similar to the build from components option, but instead of
using components, an entire application is employed. This is an especially
attractive option when applications from several business partners need to
be integrated.

29. Potential Benefits of E-
Business
• More product/service selections
• Higher Productivity
• Improved accessibility and convenience
• Better availability of information
• Shorter lead time
• Improved communication
• Stronger competitive position
Trends
• Dissintermediation
• Static content:
• Prepared pages that are sent to a customer on
request.
• Must be re-created whenever the information
changes.
• Dynamic content:
• Generated at the time of the request.
• Taken from information sources such as databases.
• Used when the content changes frequently or when
the natural storage medium for the information is a
database.

30. India Plaza – India’s first e-commerce store
India got its first e-commerce store in the form of
India plaza in 1999, which then offered only music
CDs for sale. Back then; India had less than 3
million users on the internet. Between February and
October 2000,
Megamall – Your favourite departmental store but online
Marketplace – Where you know you will get a good deal, you only need to look
The Deal-Maker – When going to the same place for an expensive haircut is not your thing
Vertical Marketplace – The shopping mall for a specific segment Going once, going twice.
Auctioned! – For those that like the thrill of the chase
Community Buying – For when buying alone is just no fun (and expensive!)
The Aggregators – The ‘Know-All Aunty’ of the Internet
Facebook Commerce – To cater for the Facebook addicts of the world
The Single Brand Crossover – Your not-so-local brick store that now has a click store
For a detailed E commerce In INDIA : https://www.digit.in/technology-guides/fasttrack-to-e-commerce/what-is-e-commerce.html