A MINOR PROJECT REPORT
ON
e- Commerce
Submitted in partial fulfillment of requirement of
Bachelor of Business Administration (B.B.A)
B.B.A VIth Semester
Batch 2012-2015
Submitted To : Submitted By :
Irfan Ali
Roll No. 3166516Ritu Mam

PROJECTED BY IRFAN ALI

INTRODUCTION OF E-COMMERCE
 What is E-Commerce?
 Why use E-Commerce ?
 Brief History of E-Commerce
 Process of E-Commerce
 Limitations of E-Commerce
 Types of E-Commerce
 Different Definitions of E-Commerce
 Scopes of E-Commerce
 Difference of E-Commerce and Traditional Commerce
 Benefits of E-Commerce
 Advantages & Disadvantages of E-Commerce
 Impact of E-Commerce

What is “E-Commerce”?
 According to Dictionary.com
 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.
 Commonly known as Electronic Marketing.
 “It consist of buying and selling goods and services over an
electronic systems Such as the internet and other computer
networks.”

E-COMMERCE
 It is commonly known as electronic marketing.
 It consist of buying and selling goods and services over an
electronic system such as the internet.
 E-commerce is the purchasing , selling & exchanging goods
and services over computer network or internet through
which transactions or terms of sale are performed
electronically.

Different Definitions of Electronic
Commerce
 Daniel Minoli and Emma Minoli gave their view of
Internet-based commerce as follows:
 “… This revolution is known as electronic commerce, which
is any purchasing or selling through an electronic
communications medium.
 … Internet-based commerce, in general, and Web-based
commerce, in particular, are important sub-disciplines of
electronic commerce.”

Why
Use
E-Commerce
…….?

• Low Entry Cost
• Reduces Transaction Costs
• Access to the global market
• Secure market share

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-
to-use 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

The process of E-commerce

The Process of E-commerce
 A consumer uses Web browser to connect to the home page
of a merchant's Web site 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

 A consumer uses Web browser to connect to the home
page of a merchant's Web site 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 merchant's 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 Scope of Electronic Commerce
 Electronic Commerce encompasses one or more of the
following:
 EDI
 EDI on the Internet
 E-mail on the Internet
 Shopping on the World Wide Web
 Product sales and services on the Web
 Electronic banking or funds transfer
 Outsourced customer and employee care operations
Outsourced customer and employee care operations

Limitations of E- Commerce
 Technical Limitations:
 Lack of security, reliability,standards
 Insufficient bandwidth
 Rapid change in software development tools
 Difficult to integrate the Internet and EC s/w with existing
applications and databases
 Venders require special web servers and other
infrastructures
 Incompatibility of certain operating systems with certain
h/w or s/w.

E-commerce Applications
 Supply Chain Management
 Video-on-demand
 Procurement and purchasing
 On-line Marketing and Advertising
 Home Shopping

Types
Of
E-Commerce

Different types of E-Commerce
 Business-to-business (B2B)
 Business-to-Consumer (B2C)
 Business-to-government (B2G)
 Consumer-to-consumer (C2C)
 Government to consumer (G2C)
 Government-to-business (G2B)

What is B2B e-commerce?
 B2B e-commerce is simply defined as ecommerce between
companies. About 80% of e-commerce is of this type.
 Examples:
 Intel selling microprocessor to Dell
 Heinz selling ketchup to Mc Donald's

Business-to-business (B2B)
 B2B stands for Business to Business. 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.
E.g.:-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.

B2B E-commerce

What is B2C ecommerce?
 Business-to-consumer e-commerce, or commerce between
companies and consumers, involves customers gathering
information; purchasing physical goods or receiving
products over an electronic network.
 Example:
 Dell selling me a laptop

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
supplier’s website.

B2C E-commerce

Business-to-Employee (B2E)
 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.

What is C2C ecommerce?
 Consumer-to-consumer e-commerce or C2C is
simply commerce between private individuals or
consumers.
 Example:
 Mary buying an iPod from Tom on eBay
 Me selling a car to my neighbour

Consumer-to-consumer (C2C)
 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.

C2C E-commerce

What is B2G ecommerce?
 Business-to-government e-commerce or B2G is generally
defined as commerce between companies and the public
sector. It refers to the use of the Internet for public
procurement, licensing procedures, and other government-
related operations
 Example:
 Business pay taxes, file reports, or sell goods and services
to Govt. agencies.

Business-to-government (B2G)
 B2G networks provide a platform for businesses to bid on government
opportunities which are presented as solicitations in the form
of RFPs in a reverse auction fashion. Public sector organizations (PSOs)
post tenders in the form of RFPs, RFIs, RFQs, Sources Sought, etc. and
suppliers respond to them.

B2G E-commerce

G2B E-commerce
 Government-to-business (G2B) is a business model
that refers to government providing services or
information to business organisation.
Government uses B2G model website to approach
business organizations. Such websites support
auctions, tenders and application submission
functionalities.

Government-to-business (G2B)
 The objective of G2B is to reduce burdens on business, provide one-
stop access to information and enable digital communication using the
language of e-business (XML). Moreover, the government should reuse
the data reported appropriately and take advantage of commercial
electronic transaction protocols.

G2B e-commerce

G2C E-commerce
 This Model is also a part of e-governance.
 The objective of this model is to provide good and
effective services to each citizen.
 The Government provides the following facilities to
the citizens through website.
 Information of all government departments,
 Different welfare schemes,
 Different application forms to be used by the citizens.

Government to consumer (G2C)
 The electronic commerce activities performed between
the government and its citizens or consumers, including paying
taxes, registering vehicles, and providing information and services

G2C E-commerce

The Scope of Electronic Commerce
 Electronic Commerce encompasses one or
more of the following:
 EDI
 EDI on the Internet
 E-mail on the Internet
 Shopping on the World Wide Web
 Product sales and services on the Web
 Electronic banking or funds transfer
 Outsourced customer and employee care
operations

TRADITIONAL BUSINESS
DIRECT SELLING

Differences between Electronic Commerce and
traditional commerce
 The major difference is the way information is exchanged
and processed:
Traditional commerce:
 face-to-face, telephone lines , or mail systems
 manual processing of traditional business transactions
 individual involved in all stages of business transactions
E-Commerce:
 using Internet or other network communication
technology
 automated processing of business transactions
 individual involved in all stages of transactions
 pulls together all activities of business transactions,
marketing and advertising as well as service and customer
support

Benefits of E- Commerce
Benefits to Organizations:
 Market expansion to national and international markets
 Reduced cost of creating, processing, distributing, storing and
retrieving
 paper based information
 Reduced inventories.(Just-in –time manufacturing)
 Automated business processing
 Cost-effective document transfer
 Reduced time to complete business transactions, speed-up the
delivery time
 Improved customer service.
 Increased productivity
 Reduced transportation Costs

Benefits of E- Commerce
Benefits to Consumers:
 Tranactions can be done 24 hrs. a day, all year round and
from any
 location
 Customer has more choices
 Rapid inter-personal communications and information
accesses
 Wider access to assistance and to advice from experts
 Save shopping time and money
 Fast services and delivery

E-commerce vs. E-business
 We use the term e-business to refer primarily to the digital
enablement of transactions and processes within a firm,
involving information systems under the control of the
firm.
 E-commerce include commercial transactions involving an
exchange of value across organizational boundaries

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
 Unable to examine products personally
 Not everyone is connected to the Internet
 There is the possibility of credit card number theft
 Mechanical failures can cause unpredictable effects on the
total processes.

Impact of E- Commerce
 Improving Direct Marketing
 Product Promotion
 New Sales Channels
 Direct Savings
 Reduced Cycle Time
 Customer Service
 Brand or Corporate Image

Impact of E- Commerce
 Transforming Organizations
 Technology and Organizational Learning
 Changing Nature of Work
 Transforming
 New Product Capabilities
 New Business Models

Impact of E- Commerce
 Impact on Manufacturing
 Manufacturing systems are changing from mass
production to demand-driven
 Just –In-time Manufacturing
 Web-based systems
 Flexible sytems
 Impact on HRM, Training and Education
 Impact on HRM, Training and Education

By Irfan Ali