Chapter 1 Online Shopping

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CHAPTER 1

INTRODUCTION
Online shopping is the process of buying goods and services from
merchants who sell on the Internet and people can purchase just about
anything from companies that provide their products online. Online
shopping is a form of Electronic Commerce . E-commerce or Electronic
commerce, is a subset of E-Business (a company that does all or most of
its transactions through the Internet), is the purchasing, selling, and
exchanging of goods and services over computer networks (such as the
Internet) through which transactions or terms of sale are performed
electronically.
These business transactions occur either as business-to-business (B2B),
businessto-consumer (B2C), consumer-to-consumer (C2C) or consumer-
to-business (C2B). The terms e-commerce and e-business are often used
interchangeably. The term ETail (electronic retailing) is also sometimes
used in reference to transactional processes for E-Shopping or Online
Shopping.
Online Shopping is the browsing and purchase of goods using
computer (Internet) also called Home Shopping.
This chapter consists of four sections: section one, explores background
of the project. section two , project objectives were listed. Section three,
the scope of the project . section four, significant of the project were
viewed.
Background of the project
In the last decade, online shopping has experienced an explosive growth
due to the fact that it represents a more economic and convenient
approach to purchasing in comparison to traditional shopping.
In the twenty-first century, trade and commerce have been so diversified
that multichannel has taken place and online shopping has increased
significantly throughout the world (Johnson, Gustafsson, Andreassen,
Lervik, & Cha, 2001). Globally, e-commerce constituted about 2.29
trillion dollar market (John, 2018) and expected to reach 4 trillion dollar
by 2020 (eMarketer, 2016) due to the double-digit worldwide growth in
sales (15%) and order (13%) (eMarketer, 2018) in all sorts of e-
commerce such as business-to-business (B2B), business-to-consumer
(B2C) (Zuroni & Goh, 2012).

The last two years got off to a good start. For many, 2019 was the year
in which online retail would finally make its big breakthrough in Africa.
In April, the e-commerce platform Jumia went public on the New York
Stock Exchange. Founded in Nigeria, the company specializes in online
retail, operating in more than ten African countries.
And the African market offers great potential. "If you compare with
Europe for instance: There typically 60% to 80% of the population will
buy things online," the head of the Department of E-Commerce and
Digital Economy at the United Nations Conference on Trade and
Development (UNCTAD), Torbjörn Fredriksson, told DW. "But in
Africa, with very few exceptions, less than 5% of the population is
currently buying things online."

In the early 2010s, African tech ecosystems were defined by the promise
of e-commerce with a simple mission; getting hundreds of millions of
young Africans to make purchases.
Adecade on, the mission still remains a work in progress with question
marks lingering around logistics and last mile delivery problems- and
that’s reflected in the level of spending among African shopping.
(QUARTZ AFRICA, 2020).
Statistics portal Statista reported that the total value of e-commerce in
Africa reached $16.5 billion in 2017 and is expected to reach $29 billion
by 2022. Although e-commerce is spreading steadily in Sub-Saharan
Africa, three economies continue to dominate the e-commerce
landscape.( theasianbanker, 2021).
According to the UNCTAD E-commerce Index Report 2018, Nigeria,
South Africa and Kenya account for more than half of the online
shoppers in Africa in 2017. Nigeria is Africa’s largest business to
consumer e-commerce market in terms of both number of shoppers and
revenue.
On African continent, owing to poverty, cultural obstacles, lack of
addresses and well-marked roads, security problems, poor internet
infrastructure, low literacy levels and insufficiency of regulative
framework, poor banking facilities and among others, the process of
adopting this recent technology of online shopping is slow amid
customers (Abiodun, and Suraju, 2013).
E-commerce in Somalia is nascent, and across Africa generally, online
shopping remains niche, says Matthew Reed, a consultant at research
firm Ovum.
"Many people are still living on desperately low incomes, so e-
commerce is really just for the middle classes. And there are other big
challenges for e-commerce firms, not just in Somalia," he says(BBC,
2017).

PURPOSE OF ONLINE SHOPPING SYSTEM


Online shopping is an application of internet as electronic commerce.
From the business perspective, customers usually find the products more
attractive, on websites, as they get all the details available there.
The mainpurpose of the online shopping system is to manage the details
of shopping , internet, payment, Bills,Customer. It manages all the
information about Shopping, Products, Customer, shopping. The project
is totally built at administrative end and thus only the administrator is
generated the access.
To increase the quantity of sales by making the new technology of web
pages design more attractive and to search a lot of customers and
company to their location
the project aimed at creating a virtual shop environment for users, in
some handy form, which will be available to them through the internet.

Objectives of the project


General

 To shop while in the comfort of your own home, without having to


step out of the door.

 Time and energy saving : It is time saving and energy saving.


Person can easily login to online site while sitting at home. So by
this we can say that it is time as energy saving.
 Availability: People while sitting at one place, can reach to number
of products with different varieties and can order them and would
get them at their door step.
 Comparison of products: Online shopping gives the benefit of
comparing the products on the various attributes like pricing,
substitution of products etc…
Specific objects
 The goal of this application is to develop a web based interface for
online retailers where users can search for products, view a
complete description of the products and order the products.
 A search engine that provides an easy and convenient way to
search for Products specific to their needs. The search engine
would list a set of products based on the search term and the user
can further filter the list based on various parameters.
 Add To Shopping Cart feature which would allow the users to add
a product to or remove a product from the shopping cart by
dragging the product in to the shopping cart or out of the shopping
cart.
 A user can view the complete specification of the product along
with various images so they can visualize and compare the
products properly.
Scope of the project
Online shopping system is just like a retail store shopping that we do by
going to the market, but it is done through the internet.
The system has made shopping painless and added more fun.
The system has Online stores offer product description, pictures,
comparisons, price and much more.
The system makes use of digital technology for managing the flow of
information, products, and payment between consumer, site owners and
suppliers.
Shopping cart is one of the important facility provided in online
shopping, so that this system lets customer to browse different goods
and services and once they select an item to purchase they can place the
item in shopping cart, and continue browsing till the final selection.
Customers can even remove the items from shopping cart that were
selected earlier before they place the final order.

Significant of the project


The significance of the project is to create an online shop management
system that will provide secure services to customers, easy to use and
provide management with features of store(products) management.
the system provides real time data and analytics about products and
customers. You can see how people interact with the site, what products
interest them, what they left in their cart and how much the average
purchase was.

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