PRACTICAL FILE

ON

E-COMMERCE

HINDU COLLEGE, SONIPAT

SUBMITTED TO SUBMITTED BY

MR. KAPIL GUPTA NEERAJ

CLASS BBA FINAL YEAR

ROLL NO. 182509

UNIVERSITY ROLL NO. ……………

SESSION (2018-19)
 INDEX

S.NO PARTICULARS SIGNATURE

1 INTRODUCTION TO E-COMMERCE

2 FEATURES OF E-COMMERCE

3 APPLICATIONS OF E-COMMERCE

4 BASIC TYPES OF E-COMMERCE

5 STEPS FOR ONLINE SHOPPING

6 E-PAYMENT METHOD

7 MARKET PLAYERS

8 ADVANTAGE

9 DISADVANTAGE
INTRODUCTION
E-commerce is the activity of buying or selling of products on online services or over
the Internet. 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. Typical e-
commerce transactions include the purchase of online books (such as Amazon) and music
purchases (music download in the form of digital distribution such as iTunes Store), and to a less
extent, customized/personalized online liquor store inventory services. There are three areas of e-
commerce: online retailing, electric markets, and online auctions. E-commerce is supported
by electronic business.
E-commerce businesses may also employ some or all of the followings:

 Online shopping for retail sales direct to consumers via Web sites and mobile apps,
and conversational commerce via live chat, chatbots, and voice assistants
 Providing or participating in online marketplaces, which process third-party business-to-
consumer or consumer-to-consumer sales
 Business-to-business buying and selling;
 Gathering and using demographic data through web contacts and social media
 Business-to-business (B2B) electronic data interchange
 Marketing to prospective and established customers by e-mail or fax (for example,
with newsletters)
 Engaging in pretail for launching new products and services
 Online financial exchanges for currency exchanges or trading purposes
 FEATURES OF E COMMERCE

Seven Unique features of E-commerce

1. Ubiquity- The traditional business market is a physical place, access to treatment by

means of document circulation. For example, clothes and shoes are usually directed to
encourage customers to go somewhere to buy. E-commerce is ubiquitous meaning that it
can be everywhere. E-commerce is the world reduce cognitive energy required to
complete the task.
2. 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. On
the e-commerce businesses potential market scale is roughly equivalent to the network
the size of the world’s population.
3. 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. Standard can greatly affect the market entry cost
and considering the cost of the goods on the market. The standard can make technology
business existing become more easily, which can reduce the cost, technique of indirect
costs in addition can set the electronic commerce website 10$ / month.
4. Richness- Advertising and branding are an important part of commerce. E-commerce can
deliver video, audio, animation, billboards, signs and etc. However, it’s about as rich as
television technology.
5. Interactivity- Twentieth Century electronic commerce business technology is called
interactive, so they allow for two-way communication between businesses and
consumers.
6. 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.
The electronic commerce technology, reduce the information collection, storage,
communication and processing cost. At the same time, accuracy and timeliness of the
information technology increases greatly, information is more useful, more important
than ever.
7. Personalization- E-commerce technology allows for personalization. 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.
Merchants can change the product or service based on user preferences, or previous
behavior.
 APPLICATIONS OF E-COMMERCE:

The applications of E-commerce are used in various business areas such as retail and wholesale
and manufacturing. The most common E-commerce applications are as follows:

1. Online marketing and purchasing

2. Retail and wholesale
3. Finance
4. Manufacturing
5. Online Auction
6. E-Banking
7. Online publishing
8. Online booking (ticket, seat.etc)
Online marketing and purchasing

Data collection about customer behavior, preferences, needs and buying patterns is possible
through Web and E-commerce. This helps marketing activities such as price fixation,
negotiation, product feature enhancement and relationship with the customer.
Retail and wholesale:

E-commerce has a number of applications in retail and wholesale. E-retailing or on-line retailing
is the selling of goods from Business-to-Consumer through electronic storesthat are designed
using the electronic catalog and shopping cart model. Cybermall is a single Website that offers
different products and services at one Internet location. It attracts the customer and the seller into
one virtual space through a Web browser.

Finance:
Financial companies are using E-commerce to a large extent. Customers can check the balances
of their savings and loan accounts, transfer money to their other account and pay their bill
through on-line banking or E-banking. Another application of E-commerce is on-line stock
trading. Many Websites provide access to news, charts, information about company profile and
analyst rating on the stocks.

Manufacturing:

E-commerce is also used in the supply chain operations of a company. Some companies form an
electronic exchange by providing together buy and sell goods, trade market information and run
back office information such as inventory control. This speeds up the flow of raw material and
finished goods among the members of the business community. Various issues related to the
strategic and competitive issues limit the implementation of the business models. Companies
may not trust their competitors and may fear that they will lose trade secrets if they participate in
mass electronic exchanges.

Auctions:
Customer-to-Customer E-commerce is direct selling of goods and services among customers. It
also includes electronic auctions that involve bidding. Bidding is a special type of auction that
allows prospective buyers to bid for an item. For example, airline companies give the customer
an opportunity to quote the price for a seat on a specific route on the specified date and time.

E-Banking:

Online banking or E- banking is an electronic payment system that enables customers of a

financial institution to conduct financial transactions on a website operated by the
institution, Online banking is also referred as internet banking, e-banking, virtual banking and by
other terms.
Online publishing:
Electronic publishing (also referred to as e-publishing or digital publishing) includes the digital
publication of e-books, digital magazines, and the development of digital libraries and catalogs.
Online booking (ticket, seat.etc)

An Internet booking engine (IBE) is an application which helps the travel and tourism industry
support reservation through the Internet. It helps consumers to book flights, hotels, holiday
packages, insurance and other services online. This is a much needed application for the aviation
industry as it has become one of the fastest growing sales channels.
 BASIC TYPES OF E - COMMERCE

Generally speaking, when we think of e-commerce, we think of an online commercial

transaction between a supplier and a client. However, and although this idea is right, we can be
more specific and actually divide e-commerce into six major types, all with different
characteristics.

There are 6 basic types of e-commerce:

1. Business-to-Business (B2B)
2. Business-to-Consumer (B2C)
3. Consumer-to-Consumer (C2C)
4. Consumer-to-Business (C2B).
5. Business-to-Administration (B2A)
6. Consumer-to-Administration (C2A)
1. Business-to-Business (B2B)
Business-to-Business (B2B) e-commerce encompasses all electronic transactions of goods or
services conducted between companies. Producers and traditional commerce wholesalers
typically operate with this type of electronic commerce.

2. Business-to-Consumer (B2C)
The Business-to-Consumer type of e-commerce is distinguished by the establishment of
electronic business relationships between businesses and final consumers. It corresponds to the
retail section of e-commerce, where traditional retail trade normally operates.

These types of relationships can be easier and more dynamic, but also more sporadic or
discontinued. This type of commerce has developed greatly, due to the advent of the web, and
there are already many virtual stores and malls on the Internet, which sell all kinds of consumer
goods, such as computers, software, books, shoes, cars, food, financial products, digital
publications, etc.
When compared to buying retail in traditional commerce, the consumer usually has more
information available in terms of informative content and there is also a widespread idea that
you’ll be buying cheaper, without jeopardizing an equally personalized customer service, as well
as ensuring quick processing and delivery of your order.
3. Consumer-to-Consumer (C2C)
Consumer-to-Consumer (C2C) type e-commerce encompasses all electronic transactions of
goods or services conducted between consumers. Generally, these transactions are conducted
through a third party, which provides the online platform where the transactions are actually
carried out.

4. Consumer-to-Business (C2B)
In C2B there is a complete reversal of the traditional sense of exchanging goods. This type of e-
commerce is very common in crowdsourcing based projects. A large number of individuals make
their services or products available for purchase for companies seeking precisely these types of
services or products.

Examples of such practices are the sites where designers present several proposals for a company
logo and where only one of them is selected and effectively purchased. Another platform that is
very common in this type of commerce are the markets that sell royalty-free photographs,
images, media and design elements, such as iStockphoto.
5. Business-to-Administration (B2A)
This part of e-commerce encompasses all transactions conducted online between companies and
public administration. This is an area that involves a large amount and a variety of services,
particularly in areas such as fiscal, social security, employment, legal documents and registers,
etc. These types of services have increased considerably in recent years with investments made
in e-government.

6. Consumer-to-Administration (C2A)
The Consumer-to-Administration model encompasses all electronic transactions conducted
between individuals and public administration.

Examples of applications include:

 Education – disseminating information, distance learning, etc.

  Social Security – through the distribution of information, making payments, etc.
 Taxes – filing tax returns, payments, etc.
 Health – appointments, information about illnesses, payment of health services, etc.
Both models involving Public Administration (B2A and C2A) are strongly associated to the idea
of efficiency and easy usability of the services provided to citizens by the government, with the
support of information and communication technologies.

Advantages of e-commerce
The main advantage of e-commerce is its ability to reach a global market, without necessarily
implying a large financial investment. The limits of this type of commerce are not defined
geographically, which allows consumers to make a global choice, obtain the necessary
information and compare offers from all potential suppliers, regardless of their locations.

By allowing direct interaction with the final consumer, e-commerce shortens the product
distribution chain, sometimes even eliminating it completely. This way, a direct channel between
the producer or service provider and the final user is created, enabling them to offer products and
services that suit the individual preferences of the target market.

E-commerce allows suppliers to be closer to their customers, resulting in increased productivity

and competitiveness for companies; as a result, the consumer is benefited with an improvement
in quality service, resulting in greater proximity, as well as a more efficient pre and post-sales
support. With these new forms of electronic commerce, consumers now have virtual stores that
are open 24 hours a day.

Cost reduction is another very important advantage normally associated with electronic
commerce. The more trivial a particular business process is, the greater the likelihood of its
success, resulting in a significant reduction of transaction costs and, of course, of the prices
charged to customers.
Disadvantages of e-commerce
The main disadvantages associated with e-commerce are the following:

 Strong dependence on information and communication technologies (ICT);

 Lack of legislation that adequately regulates the new e-commerce activities, both nationally and
internationally;
 Market culture is averse to electronic commerce (customers cannot touch or try the products);
 The users’ loss of privacy, the loss of regions’ and countries’ cultural and economic identity;
 Insecurity in the conduct of online business transactions.
 ELECTRONIC DATA INTERCHANGE(E.D.I)

Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents

in a standard electronic format between business partners.

By moving from a paper-based exchange of business document to one that is electronic,

businesses enjoy major benefits such as reduced cost, increased processing speed, reduced errors
and improved relationships with business partners. Learn more about the benefits of EDI here. »
Each term in the definition is significant:

 Computer-to-computer– EDI replaces postal mail, fax and email. While email is also an
electronic approach, the documents exchanged via email must still be handled by people
rather than computers. Having people involved slows down the processing of the documents
and also introduces errors. Instead, EDI documents can flow straight through to the
appropriate application on the receiver’s computer (e.g., the Order Management System)
and processing can begin immediately. A typical manual process looks like this, with lots of
paper and people involvement:
 The EDI process looks like this — no paper, no people involved:

 Business documents – These are any of the documents that are typically exchanged
between businesses. The most common documents exchanged via EDI are purchase orders,
invoices and advance ship notices. But there are many, many others such as bill of lading,
customs documents, inventory documents, shipping status documents and payment
documents.
 Standard format– Because EDI documents must be processed by computers rather than
humans, a standard format must be used so that the computer will be able to read and
understand the documents. A standard format describes what each piece of information is
and in what format (e.g., integer, decimal, mmddyy). Without a standard format, each
company would send documents using its company-specific format and, much as an
English-speaking person probably doesn’t understand Japanese, the receiver’s computer
system doesn’t understand the company-specific format of the sender’s format.
o There are several EDI standards in use today, including ANSI, EDIFACT,
TRADACOMS and ebXML. And, for each standard there are many different versions,
e.g., ANSI 5010 or EDIFACT version D12, Release A. When two businesses decide to
exchange EDI documents, they must agree on the specific EDI standard and version.
o Businesses typically use an EDI translator – either as in-house software or via an EDI
service provider – to translate the EDI format so the data can be used by their internal
applications and thus enable straight through processing of documents.
 Business partners – The exchange of EDI documents is typically between two different
companies, referred to as business partners or trading partners. For example, Company A
may buy goods from Company B. Company A sends orders to Company B. Company A and
Company B are business partners.
 STEPS TO FOLLOW WHILE SHOPPING ONLINE

From concert tickets to washing machines, groceries to holidays, there’s bound to be a website
that sells just what you want. If there’s a particular brand or store you like, you can go straight to
their website or you can visit a shopping website such as eBay or Amazon, which carry broad
ranges of new and second-hand items. If you’re a bargain hunter, you can use a price comparison
site such as moneysupermarket.com, which lists the websites that sell your product according to
price

In this guide, we’re going to show you how to find a product online and make a transaction.

You’ll need:

 a computer with an internet connection

 a credit or debit card.

Follow these step-by-step instructions to learn how to buy online

Step 1: Search for a product using Google shopping

Type the name of the item you want to buy into the search box of a search engine such as Google
– for example, ‘Roberts radio’ – and click Search or press enter on your keyboard.

You will see a range of websites, from actual department stores such as John Lewis to large
websites simply devoted to shopping, such as Amazon. You can also use the Shopping option on
Google itself. Clicking on this will give you items available based on product reviews and price.
You can also ask only for results available in shops near to you by clicking on 'Available nearby'.
Step 2: Find an item you like using Google shopping

If you click on one of the suggested items you will see product details as well as details of the
sellers available. Do bear in mind that these are sponsored by the merchants and there may be
other sellers available in your area or online.
Step 3: Search via Google

If you’ve searched for a particular brand, you may also see the brand’s own website. Choose one
of these websites and click on the link.
Step 4: Searching for and buying a product from a website

A new page will open, taking you to the website. You can now narrow down your search by
typing in more specific details such as a model name (for example “revival”) in the search box,
which is usually at the top right of the screen.

Then click on the magnifying glass in the top right hand corner. Some websites will
have Go or Search next to the search box. Alternatively, you can click into a specific category
(such as “Retro radios”) and browse until you find a product you like. Most websites will have a
global navigation where you can explore the rest of the website this is normall located at the top
of the web-page with drop down menus.
We have clicked into “Retro radios” and a selection of matching products is now shown. Click
on any of them to see more details. We have selected the Revival Mini.
Step 5: Adding a product to your basket

Many websites let you have a closer look at the product by hovering your mouse over the image.
There are two boxes next to the image one to choose the quantity that you want to buy and one to
choose the colour that you want.

Once you have chosen the amount and colour click on ADD TO BASKET. Doing this will save
the details of this item until you’re ready to buy it, just as if you’ve popped something you want
to buy into a real shopping basket.

Step 6: Continue shopping or buy your product

You now have two choices either to Continue Shopping if you wanted to buy other items from
this website or to click on Go To Cart and pay for the item you have chosen.
Step 7: Checkout and pay

To pay for your item click on the Checkout button.

Some websites ask that you create an account; some give you a choice whether you want an
account and some allow you to buy items without creating an account. If you intend using a site
that gives you a choice on a regular basis then signing up for an account will make paying for
items much quicker as your basic information is stored

Step 8: Create an account before you buy

On this website you have to create an account in order to buy your item. Click Create An
Account.

Most websites will let you checkout as a guest.You can choose to create an account at a later
time.
Step 9: Finalise checking out

You will need to complete all the boxes marked with an asterisk such as your email, name and
address. If the item you are buying is a gift then complete the box with the address of the person
you are sending it to. Please note however that some websites will only send items to the same
address as that of the bill payer so this might not be possible.

If the item is coming to you make sure there is a tick in this box to save having to enter
information twice.
Don’t forget to tick this box too and then click on Continue To Next Step.

Next you will be given an opportunity to Review Your Purchase. This is your chance to make
sure that you have ordered the item you want and the right quantity as well as given the correct
name and address that the item is to go to.

If all is OK click on Continue To Next Step.

Finally, enter your credit or debit card details and any other information required. Click Confirm
Card Details if you’re happy to make the payment.
At this point, you may be asked for another password if you’ve signed up for 3-D Secure, an
added layer of security for online credit and debit card transactions. This includes Visa’s
‘Verified by Visa’ and MasterCard’s ‘Secure Code’. Once you’ve given the right password, your
order will go through.

You should receive an email confirming that your order has been received. Retailers often send a
second email once an item has been posted.

Sign within has produced this great guide on Tips for Safe Online Shopping and we highly
recommend following this info graphic to make sure you protect yourself from identity fraud and
online theft.
TOP MARKET PLAYERS OF E COMMERCE
  Flipkart Internet Pvt Ltd

It is one of the best e-commerce companies in India. Flipkart is founded in 2007 by SACHIN
and Binny Bansal. The company is registered in Singapore, but has its headquarters in
Bangalore. Flipkart has launched its own product range under the name “DigiFlip” with products
including tablets, USBs, and laptop bags. The company is leading e-commerce Industry with
several product categories. It has also launched several in house products.

 Amazon Development Centre India Pvt Ltd

Amazon.com, Inc. often referred to as simply Amazon, is an American electronic commerce and
cloud computing company with headquarters in Seattle Washington. It is the largest Internet-
based retailer in the world by total sales and market capitalization. Amazon.com started as an
online bookstore, later diversifying to sell DVDs, Blu-rays CDs, video downloads/streaming,
MP3 downloads/streaming etc. Some of the specific website features of Amazon.com are as
follows-

Also Read- Top Digital Marketing Agencies in India

Reviews- It gives you the option to write product reviews. Many are benefiting from the product
reviews given on amazon.com. Amazon product reviews are helping customers to take decision
related to purchase.

Content Search- “Search Inside the Book” is a feature which allows customers to search for
keywords in the full text of many books in the catalog.

Third Party Sellers- Amazon is also working through third party sellers. It also runs associate
program in which third party is allowed to put AMAZON links. Associate gets commission if
link generate sales.