"RISE OF E-COMMERCE-THE INDIAN SCENARIO"

By
SUDHIR HARIJAN
Exam Roll no-011903CM345
Class Roll No-BC-19- 337

Under the guidance of

SMT. ANITA KUMARI PATRA
Assistant professor of Commerce Department

KHOLLIKOTE UNIVERSITY
DEPARTMENT OF COMMERCE

KHOLLIKOTE UNIVERSITY
BERHAMPUR,760001, ODISHA (2019-2022)
DECLARATION
I, Sudhir Harijan hereby declare that this Project entitled
“RISE OF E – COMMERCE – THE INDIAN
SCENARIO”, submitted to Khollikote University,
Cuttack, Odisha has been prepared by me under the valuable
guidance of Smt. Anita Kumari Patra, Faculty in
Commerce, Khollikote University, Berhampur, towards the
partial fulfilment of award of bachelor of Commerce as
required in the curriculum for UG VIth semester 2021-22.

I also declare that this project has not been submitted to any
other University for the award of any degree.

Date: 20/06/2022
Place: Berhampur

Name: Sudhir Harijan

Roll NO: 011903CM345
 Certificate of the Guide

This is to certify that Mr. Sudhir Harijan, bearing roll no

011903CM345, +3 3rd year, Commerce, Khollikote
University, Berhampur, Odisha has submitted the project
entitled “RISE OF E – COMMERCE – THE INDIAN
SCENARIO”.
The project is based on the original work done by the
candidate under my guidance and fulfils the requirement of
the project work which is necessary for the partial
fulfilment of B.Com. Degree.
It is to the best of my knowledge and belief that the work
has not been submitted elsewhere for the award of any
Degree.
Project Guide
Smt. Anita Kumari Patra
Faculty in Commerce,
Khallikote University, Berhampur, Odisha
 Acknowledgement

My heartfelt thanks are to my esteemed guide

Smt. Anita Kumari Patra, Faculty in Commerce,
Khallikote University, Berhampur, Odisha for having
guided me whole heartedly in preparing this project
entitled “RISE OF E – COMMERCE – THE INDIAN
SCENARIO”.

I also acknowledge the continuous encouragement by

my friends, non-teaching persons involved and finally
in my endeavour.

My deep sense of gratitude is for those who helped me

effortlessly in preparing this project.

Name: Sudhir Harijan

Roll No.: 011903CM345
ABSTRACT
E-commerce is trading of products and service through the
medium of internet. In this paper we present factors that are
fuelling growth in ecommerce sector in India. The methodology of
my study is from secondary sources such as articles, journals,
reports, papers, blogs, and conference proceeding. E-commerce
one of the highest growing business, with India having great
market potential for investments. There has been huge surge in
investment since last year and more is expected in coming years.
The rapid growth in use of mobile and internet users has facilitated
ecommerce business in both urban and rural cities. The topics
covered include the terms study of commerce, key drivers of
growth, market growth potential, investment, retail market,
logistics infrastructure, internet regulations, key challenges, and
future of ecommerce.
Index Terms-Ecommerce, Retail, Sales, Logistics, Internet
regulation

It has an impact over the economy of many countries of many

countries among which India is on the top of that list. It has named
as new gold rush in e-commerce. It has many reasons that why it is
very crucial in developing the country.
 Contents

1. Chapter 1- Introduction 1–3

2. Chapter 2- Literature Review 4-5

3. Chapter 3- Overview of the study 6 - 24

4. 3.1 Objectives of commerce 6

5. 3.2 Historical Development 7

6. 3.3 The elements of typical commerce 8

7. 3.4 The elements of E-commerce 9

8. 3.5 Models of E-commerce 10

9. 3.6 Types of E- commerce 11

10. 3.7 E-commerce - case studies leading the transformation 12-13

11. 3.8 Company profile 14-24

12. Chapter 4- finding, suggestion & conclusion 25-65

13. 4.1 Planning of online business 25

14. 4.2 Types of online business 30

15. 4.3 Deployment of the system for online or internet business 39

16. 4.4 E-commerce process 43

17. 4.5 E-commerce process cycle 46

18. 4.6 Problems 50

19. 4.7 Acceptance 53

20. 4.8 Conclusion 65

Bibliography
CHAPTER 1
INTRODUCTION
Electronic commerce is exactly analogous to a marketplace on the internet. Electronic Commerce
(also referred to as EC, e-commerce) consists primarily of the distributing ,buying ,selling
,marketing and servicing of products or services over electronic systems such as internet and other
computer networks .E- commerce follows the same basic principles that traditional commerce
follows -that is ,buyers and sellers exchange and transport goods from one place to another .But
rather than conducting business in the traditional way -in stores and other “brick and mortar’’
buildings or through mail order catalogues and telephone operators -in e-commerce buyers and
sellers transact business over networked computers.

E-commerce offers buyers convenience. They can visit the World Wide Web sites of multiple
vendors 24 hours a day and seven days a week to compare prices and make purchases, without
having to leave their homes or offices. In some cases, consumers can immediately obtain a product
or service, such as an electronic book, a music file, or computer software, by downloading it over
the Internet.

For sellers, e-commerce offers a way to cut costs and expand their markets. They do not need to
build, staff, or maintain a store or print and distribute mail order catalogues. Automated order
tracking and billing systems cut additional labour costs, and if the product or service can be
downloaded, e-commerce firms have no distribution costs. Because they sell over the global
Internet, sellers have the potential to market their products or services globally and are not limited
by the physical location of a store. Internet technologies also permit sellers to track the interests
and preferences of their customers with the customer’s permission and then use this information
to build an ongoing relationship with the customer by customizing products and services to meet
the customer’s needs.

At the close of the 20th century, retail transactions made up the largest part of e-commerce.
Consumers purchased computers, airline ticket, hotel rooms, automobiles, clothing, electronics,
books event tickets, food, furniture, and countless other commodities over the
internet. Business-to-business commerce represented one of the fastest growing
segments of e-commerce. Business ordered supplies and coordinated
complicated projects electronically.

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E-commerce also has some disadvantages, however consumers are reluctant to buy some products
online .Online furniture businesses, for example, have failed for the most part because customers
want to test the comfort of an expensive item such as a sofa before they purchase it .Many people
also consider shopping a social experience .For instance, they may enjoy going to a store or a
shopping mall with friends or family, an experience that they cannot duplicate online. Consumers
also need to be reassured that credit card transactions are secure and that their privacy is respected.
Ecommerce according to person Hall’s book E-commerce started in 1994 with the first banner ad
being placed on a website.

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WHAT DO YOU MEAN BY E-COMMERCE?

Commerce is the exchange of goods and services, usually for money. When you buy something at
a store you are participating in commerce.
Going to work each day for a company that produces a product, is a link in the chain of the
commerce such as:
• Buyers: These are the people or organization with money who want to purchase goods and
service products.

• Sellers : These are the people who offer goods and service to buyers .Sellers are recognizing in
different forms such as retailers who sell directly to consumers and wholesalers who sell to retailers
and others .Wholesalers are also known as distributors.

• Producers: These are the people organization that create the product and services that seller’s
offer to buyers.

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CHAPTER 2
LITERATURE REVIEW
Gupta (2014) in her paper “E-Commerce: Role of e-commerce in today’s business”, presents
a comprehensive definition of e-commerce while isolating it from e-business. The paper enlists
the different e-commerce models i.e. B2B, B2C, B2G and C2C, narratively analysing the
nitty gritties of each. Rina (2016)also elaborates the different applications of e-commerce in
“Challenges and Future Scope of E-commerce in India”, at the same time, defining the degree
to which they are operational in the country. Gunasekaran, Marri, McGaughey, & Nebhwani
(2002) give a broad outlook of electronic commerce within organisational systems in “E-
commerce and its impact on operations management”, defining it with reference to e-trading
and elaborating- how it has permeated every field of business. The paper identifies the
revolutionary role played by earlier internet applications like e-mail and electronic data interchange
and details the revolutionary changes brought by the internet technologies in manufacturing,
marketing, purchasing, design, production, selling and distribution, warehousing and human
resource management. Internet based technologies have enabled businesses to shorten
development, purchase and procurement cycles, maintain up to date product
and market information, significantly increase the speed of communications and increase
the quality of Customer relationships by facilitating close contact and constant communication.
The paper studies in depth, the significance of web based technologies in different business
operations, thus, improving their efficiency through effective B2B e-commerce.
Mishra & Kotkar(2015) trace the timeline and development of B2C e-commerce in “A Study
on Current Status of E-Commerce in India: A Comparative Analysis of Flipkart and Amazon “with
its inception in the mid-1990s through the advent of matrimonial and job portals. However, due
to limited internet accessibility, weak online payment systems and lack of awareness, the progress
was very slow. The Indian B2C e-commerce industry got a major boost in mid 2000s with the
expansion of online services to travel and hotel bookings which continue to be major contributors
even today. Das & Ara (2015) observe in “Growth of E-Commerce in India “that though online
travel and hotel bookings still control the lion’s share of e-commerce market, their share has
comparatively fallen over the years due to the recent augmentation and consequent rise of e-tailing
services. There has been a tremendous surge in the volume of investment in this sector. With the
e-commerce markets in the west reaching their saturation, investors see tremendous potential in
the Indian market, in the light of which, many start-ups have received funding from venture
capitalists and private equity firms.
China's Alibaba Group and affiliate Ant Financial became the largest shareholders of One97
Communications, the parent of Indian e-tailer Paytm, by investing $680 million, in 2015 (Aulakh,
2015).

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To tap and technology powerhouse Softbank invested $627 million into online retailing
marketplace Snap deal and $210 million in Ola cabs. (Mac, 2014). Similarly, New York firm
Tiger Global Management has funded
companies such MakeMyTrip, Flipkart, Myntra and Quickr. The availablity of funds has presented
a favourable ecosystem and growth opportunities for big as well as small companies. It has enabled
local startups to survive in cut throat competition against foreign giants and has facilitated the
penetration of e-commerce to every facet of human life; such that the differntiation between e-
commerce and traditional buisness is getting blurred.(Aggarwal, 2014).
Through “Probles and Prospects of E-Commerce”, Raghunath & Panga (2013) present a
comprehensive analysis of various nuances of e-commerce while accentuating that, in present time
every business activity, be it advertising, ordering, payment etc, can be performed in the digital
ecosystem. The paper also enlists numerous points on the importance of e-commerce which are
responsible for its development as the new convention. It has enabled the creation and exploitation
of new business opportunities, at the same time increasing the say of customers in the
development of new products and services. E-commerce has not only augmented the
Performance of internal business management, but, has also enabled better customer relationships
by promoting a business model that is essentially based on information sharing. The accessibility
of internet connectivity and other online tools herald a new revolution. SWOT analysis of e-
commerce conducted by Awais & Samin (2012) highlights ubiquity, low operating cost,
improved customer interaction and time saving as the unique strengths of e-commerce,but, at the
same timeaccentuates upon the necessity for the firms to adapt themselves to
The changing environment and innovate constantly to come up with better offerings for customers.
With an increase in the number of players in the B2C segment, competition for the first position is
set to intensify, making it imperative for the firms to enhance service quality and to invest in
logistics, so as to derive benefits from increase in the disposable income of houseolds, risein
internet subscriptions and infiltration of mobile commerce. (Das & Ara, 2015). In the face of
rising competition, the survival of the firms will depend upon how efficiently they are able to
bridge the exsting gaps in e-commerce transactions. The ubiquitous nature of internet has enabled
e-commerce to defy geographical boundaries and permeate different
markets,so as to elicit demand from sub-urban and rural areas, after having succesfully tapped its
potential in metropolitan cities. In anticipation of increasing demand from Tier 2 and 3 cities, many
e-commerce firms are undertaking efforts to widen their reach by investing in better infrastructure.
In the light of growing number of websites, offering similar goods and services, greater significance
is being attributed to Internet Marketing,
which shall play an unparalleled role in audience acquisition for e-commerce websites, by
displaying the advertisements on search engine result pages and other portals. Internet
Marketing shall not only propel e-commerce but will also emerge as an important support tool to
brick and mortar stores.(Gangeshwer, 2013). Apart from Internet Marketing, Deshmukh,
Deshmukh & Thampi (2013) recognise another important development: m-commerce, which
they identify as a subset of e-commerce. “Transformation from E-commerce to M-commerce
in Indian Context” reviews the current and potential status of e-commerce and m-commerce in the
Indian market, while projecting the latter as the potential future. The paper discerns ubiquity,
personalization, flexibility and immediacy as the singular advantages of m-commerce

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CHAPTER-3
OVERVIEW OF THE STUDY

3.1 Objectives OF E-commerce

The study of e-commerce is much broader that the current enthusiasm for home
shopping on the web. The objective behind the preparation of the project on
``E-Commerce &Internet’’ is: -
 To know the importance of E-commerce in today`s` environment.
 To make readers aware of the role played by E-commerce in big organizations.
 To make readers aware that E-commerce is double edged sword. If it is properly used it
can be a boon or a blessing if it is abused it can also act as a curse.
 Informal business to business transactions using internet Ecommerce.
 Consumer transaction with the business or other members of the public using internet or E-
commerce.

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3.2 HISTORICAL DEVELOPMENT
The meaning of the term electronic commerce has changed over the last 30 years. Originally
Electronic Commerce means the facilitation of commercial transactions electronically, usually
using technology like Electronic Data Interchange and Electronic Funds Transfer where both were
introduced in the late 1970`s, for example to send commercial documents like purchase orders or
invoices electronically.

The electronic or e in e-commerce refers to the technology systems; the commerce refers to be
traditional business models. E-commerce is the complete set of processes that support commercial
business activities on a network. In the 1970`s and 1980`s, this would also (ATM) and telephone
banking in the 1980`s was also forms of ecommerce. However, from the 1990`s onwards, this
would include enterprise resource planning systems (ERP), data mining and data warehousing.
In the dot corn era, it came to include activities more precisely termed ``web commerce’’ – the
purchase of goods and services over the World Wide Web, usually with secure connections with
shopping carts and with electronic payment services, like credit card payment authorization.
Today it encompasses a very wide range of business activities and processes from e-banking to
offshore manufacturing to e-logistics. The ever-growing dependence of modern industries on
electronically enabled business processes gave impetus to the growth and development of
supporting systems including backend systems, applications, and middleware. Examples are
broadband and fibrotic networks, supply chain management software, inventory control systems
and financial accounting software.

The emergence of E-commerce also significantly lowered barriers to entry in the selling of many
types of goods; accordingly, many small home-based proprietors are able to use the internet to sell
goods. Often, small sellers use online auctions sites such as eBay or sell via large corporate
websites like Amazon.com in order to take advantage of the exposure and set up convenience of
such sites.

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3.3 THE ELEMENTS OF A TYPICAL COMMERCE
The basic elements of a typical commerce activity are listed as below: -
Product or service: One must have a product or service to offer. The product may be from a place
of paper to an airplane.

 Place: One must have a place to store the product for marketing. Place can sometimes be
very ephemeral for example a phone number may be a place. For most physical product,
we tend to think of the place as a store or shop.

 Marketing: You need to figure out a way to get people to come to your place. This process
is known as marketing. It is very important component of commerce. If the people are not
aware of the place and way to reach the place, you will not be able to sell anything.

 Method of accepting orders: In a mail order company the orders com in by mail or phone
and processed by the employees in the organisations.

 Method of accepting money: If you are at Wal-Mart you can pay in cash or by cheque or
by credit card for your purchases. B to B transaction often user purchased orders. Many
businesses do not require the payment at the time of delivery and some of the products and
service are delivered continuously.

 Method of delivery: You need to have a way to deliver the product or service.

 Method of accepting return: If the customer is not happy with your product then you
need a way accept a return.

 Warranty Claims: Sometimes if the product breaks in the way before delivery or some
other problems crop up with the product, after its delivery during the warranty period, in
such a situation warranty claim are to be honoured.

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3.4 THE ELEMENTS OF E-COMMERCE
In case of an e-commerce, all the above listed elements are available, but they are having slight
variation in the real-life situation.
1. A product or service: In case of e-commerce, it is virtual product shown on a website.
One can demonstrate multimedia presentation of the product and its entire feature on
the web page itself, which may not be possible in case of physical product of commerce
activity.
2. A place to sell the product: In the e-commerce case, a website displays the products in
all ways and act as a place for e-commerce.
3. A way to get customers to visit your websites: In case of ecommerce search engines
and linkages with other websites play an important role in helping the customers to
reach websites of the organizations.
4. A way to accept orders: The orders are accepted on the websites itself. On the web
pages of the e-commerce companies shopping carts are being provided. One can click on
the icon and fill in the shopping card to order items to be purchased and it is accepted by
the e-commerce company as order from the customer.
5. A way to accept money- In case of traditional commerce, buyers and sellers are in direct
contact with each other. The payments in ecommerce are made using Electronic Fund
Transfer in various form using credit cards, smart cards, e checks etc. The information
payment is routed through value added networks and Payment Gateway Systems.
6. A way to handle warranty claims: Sometimes if the product breaks in the way or some
other problems crop up with the product. In such situation, warranty claims are to be
hosted on the webpages.

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3.5 MODELS OF E-COMMERCE
Most transactions in e-commerce may broadly be classified into two main categories:
1) Business to consumers
2) Business to business
3) Consumer to consumer

The vast majority of this activity to date has been taking place in countries with advanced
economies and infrastructure. For developing countries, electronic commerce presents new
opportunities to achieve a more level playing field vis-à-vis larger, more developed economies, as
it demises huge new markets for indigenous products and services. While many developing
countries are beginning to take advantage of the potential of e-commerce, critical challenges
remain to be overcome before the vision of a truly integrated and equitable world economy can be
realized.
Business to Consumer transactions (B2C)-These are the transactions that most of us are familiar
with today. It may be defining any business selling its product or services to consumers over the
internet for their own use. Like individual customers buying books and music’s CDs over the web,
or surfing the web and find the best deal for some particular item. The end customer could be
totally unknown to the merchant or might be visiting the shop for a few occasional purposes.
Business to Business transactions (B2B)-These are transactions between two business or
corporations, where the product traded is for business use. This category is characterised by limited
number of transactions, where each transaction is typically or larger volume. The end customer is
typically a previously approved or registered customer or at least known to the merchant. However,
they also differ in important ways, in characteristics and technologies as well as in the business
drivers for adopting ecommerce.
Consumer to Consumer transactions (C2C)-Consumer to consumer electronic commerce
promotes the opportunity for consumer to transact goods or services with other consumer presents
on the internet. The C2C, in many a situations models are the exchange systems with a modified
form of deal making.

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3.6 TYPES OF E-COMMERCE
A variety of business are conducted online, including retail businesses that sell products to
consumers, service providers that sell services to consumers, auctioneers that create a marketplace
for products and services and business to business commerce. Retail transactions make up the
largest part of ecommerce. Consumers can find computers, automobiles, clothing, books, music,
airline and event tickets, food, and just about anything else for sale on the internet.
Product transactions-
Retail websites typically include electronic catalogues that describe and display products for sale.
Consumers can search for individual items or randomly browse electronic catalogues, some much
larger than their mail order print counterparts. An intermediate book retailer for example, can offer
millions of different books titles for sale on its web sites, far more titles than could fit into a store
or that could be included cost effectively in a print catalogue. Service transactions-
Other e-commerce businesses offer services. Financial services represent a large segment of e-
commerce. For a small fee, online investment brokerages trade stocks on behalf of their clients.
Online stock brokerages typically charge customers lower fees than traditional stock brokerages.
Other sites provide consumers with a way to research and obtain mortgages and other loans online.
Travel sites offer a method of scheduling airline flights, renting cars and booing hotel room.
Travelers can plan all the details of their vacations or business trip, makes reservations, and
purchase tickets at the same site.

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3.6 E-COMMERCE – CASE STUDIES LEADING THE
TRANSFORMATION
B2B companies about 80-90 percent of all e-commerce by value. In this section we will present
three case studies that are leading this transformation in different areas.
Intel is an existing company that started using the internet as a distribution channel in the mid-
1990s. It transformed itself into an e-business. Amazon is a pure play Dotcom Company that
rediscovered itself, after initial emphasis of sales through website only, in the physical world by
incorporating a supply chain, warehousing and customer relationship to become a profitable
business.
EBay is another pure play Dotcom company that pioneered C2C e-commerce and became
profitable company from the very beginning.
Intel: In the mid-1990s, Intel adopted e-commerce technologies to reach out to its customer and
trading partners. Within a few years, Intel was handling over 3 million-page hits per day with online
revenue of $2 billion per month. Intel’s website delivers online information and support to a
complex network of customer, employees, channel resellers, suppliers and OEMs. Over 6000 users
in more than 50 locations around the world use the customized personalized and secure B2B
functionally.
Intel defined e-business in terms of what they called 100% e-corporation concept: a corporate
strategy to re-engineer and automate business processes using business system and internet
technology, aimed at significantly improving customer, employee and supplier business
interactions. Amazon: Amazon is a pure play B2C Dotcom website, opened as an online
bookstore in July 1995.Its mission was to use the internet to transform book buying into fasted,
easiest and most enjoyable shopping experience possible. Jeff Bezos, CEO of Amazon.com,
argued that retail store required lot of real estate in prime location to sell products to customers
and that the cost of real estate Was always going up.
Amazon also expanded in parallel into international market. Even in July 1995, it had customers
from 45 countries. By the year 2000, 13.8% of its revenues came from over 150 countries. It opened
distinct websites for its customers in Britain, Germany, France, and Japan with content in local
language for its customers. The company also became sensitive to local cultures. It also opened
local office in these countries to serve customers.
eBay: The eBay website proclaims that ``eBay is the world’s online marketplace, enabling trade
on a local, national and international basis. With a diverse and passionate community of individual
and small business, eBay offer an online platform where millions of items are traded each day.
``eBay enable a visitor to the site to find, buy and pay for an item by bidding as if he were
participating in an auction. For example, in India, eBay acquired successful auction site,
bazzee.com.

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Seller and buyers meet through the eBay marketplace and interact through it as also directly. They
follow the auction or fixed price formats facilitated by the website. Payments are made by buyer
and goods are received by them from sellers. Most items require small payments to be exchanged.
Both buyer and seller found it inconvenient to deal with money orders or cheques. The service was
offered free to the buyer, but sellers were required to pay a small fee to pay pal, that was comparable
to credit card charge. There are other auction sites such as Yahoo! Auctions, half.com and
Amazon.com. But eBay is the world`s largest auctions C2C marketplace, just as Amazon.com is
the world`s biggest store.

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3.7 COMPANY
PROFILE
TOP 10 ECOMMERCE SITES IN INDIA
India is known for its large population. At 1.37 billion, it’s one of the most inhabited places in the
world, second only to China. Still, of its billion-plus people, internet penetration is quite low,
coming in at 41 percent of the total population, roughly 500 million of the 1.37 billion in the
country.
Despite the low internet penetration, the e-commerce sector in India is still massive, thanks to the
overall population size. It was worth US$ 48.5billion as of 2018 and is expected to quadruple to
reach US$ 200 billion by 2026.
It’s also worth noting that internet and smartphone adoption in India is growing rapidly. This
adoption of smartphones also shows trends toward mobile commerce as a preference for the vast
number of Indians who own a smartphone. Top 10 Indian Ecommerce Sites:
What’s interesting about the top 10 in the Indian e-commerce sector is the rich representation of
Indian-founded brands. While Amazon comes in at the top, there are very few other American
brands in these high ranks. It is Indian and Asian brands that dominate in the top 10.
Additionally, the Indian e-commerce scene has a nice mix between pure e-commerce players and
brick, and mortar retailers turned ecommerce giants.
While the Indian e-commerce sector is still in early development stages, it is a market rich
with opportunity; with so many people comes so much room for major players and small
players alike to take a giant chunk out of the Indian e-commerce pie. So far, it’s electronics
that make up the most significant online retail sales category in the country, at 48 percent, but
apparel is following not too far behind at 29 percent.
To demonstrate what the e-commerce sector in India looks like, we’ve compiled the top 10
performing e-commerce sites using data from Similar Web.

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1. Amazon India:

Estimated number of monthly visitors: 322.54 million American ecommerce giant, Amazon, is
said to have an audience reach of 89 percent in India, according to Statista. Since launching in
India in 2010, the site now generates an estimated 322.54 million monthly visitors, making it the
highest performing site in the country, by a long shot. True to the overall statistics that the primary
e-commerce category in India is electronics, the audience interests in Amazon lean toward this
category. However, they also provide a range of other products in categories including Echo and
Alexa, Amazon Prime digital media, men’s fashion, women’s fashion, home, grocery, sports,
automotive, and more.

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2. Flipkart:

Estimated number of monthly visitors: 242.62 million while it may be 100 million monthly visitors
behind Amazon, Flipkart is an Indian e-commerce success story, putting up fierce competition
against the international heavyweights. Founded in 2007 in India, Flipkart is a purely online variety
store that, in 2018, sold 77 percent of itself to Walmart for USD$ 16 billion. Following the same
trends as Amazon, Flipkart is most popular amongst its customers for goods in the electronics
category. However, it also stocks a wide variety of products, including TVs and appliances,
fashion, furniture, sports, books, and more.

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3. Alibaba:

Estimated number of monthly visitors: 175.95 million globally (4.19 percent in India) Alibaba is
an internationally recognized major player in the e-commerce market, founded in China in 1999.
Owned by Alibaba Group Holding, a massive multinational conglomerate holding company that
specializes in all things online from ecommerce to online retail, Internet, and technology, Alibaba
is a force in the international e-commerce space. Beat out significantly by its Indian competitor,
Flipkart, Alibaba has a similar offering with product categories including home and kitchen, tools
and hardware, rubber and plastics, electrical equipment and supplies, vehicles and accessories, toys
and hobbies, consumer electronics, apparel, and more.

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4. Snap deal:

Estimated number of monthly visitors: 56.41 million Another Indian-founded e-commerce giant,
Snapdeal is an online variety shopping platform that has garnered much attention from customers
and investors alike. Since launching in 2010, Snapdeal has attracted funding from big-name
investors Alibaba Group, Softbank, and Foxconn. While the largest category shopped from
Snapdeal is electronics, the online store also offers other product categories, including home and
kitchen, fashion, toys, beauty, health, books, and more.

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5. Myntra:

Estimated number of monthly visitors: 48.03 million. Myntra is a pure-play e-commerce site
launched out of India in 2007, which has since gone on to become one of the premier fashion,
home, and lifestyle e-commerce sites in the country. Its 2014 sale to Flipkart, in addition to the
acquisition of competitor Jabong.com has helped it to grow even further. As a fashion retailer,
Myntra stocks a range of goods from a wide variety of international and local brands, covering
menswear, women swear, kids wear, and home.

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6. Indiamart:

Estimated number of monthly visitors: 47.23 million. IndiaMART is the largest online business-
to-business marketplace in the country, founded in 1999 to connect buyers with suppliers. Today,
IndiaMART has around 60 percent market share of the online B2B classifieds sector in India.
IndiaMART connects manufacturers, suppliers, and exporters, allowing them to promote and
expose their products to one another via the platform. Covering just about anything you can
possibly imagine, IndiaMART has categories including building and construction, industrial
machinery, apparel, electronics, and even chemical, dyes, and solvents, to name just a few.

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7. Book My Show:

Estimated number of monthly visitors: 43.25 million. BookMyShow India is the number one online
ticket vendor in India. Since opening its doors in 2007, it has grown to provide ticketing services
in five countries, including the United Arab Emirates, Sri Lanka, the West Indies, and Indonesia.
Covering movies, events, plays, sports, activities, and tickets to monuments, as well as selling fan
merchandise, BookMyShow is India’s one-stop-show to book entertainment and look for fan
goods. Its major investor is the internationally renowned, TPG Growth.

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8. Nykaa:

Estimated number of monthly visitors: 20.84 million. Nykaa is another Indian founded brand which
bucked the norm beginning as a pure e-commerce platform and then expanding to open a brick and
mortar location in the Indira Gandhi International Airport in 2015. Founded in 2012, Nykaa started
as an online store selling beauty items in categories including makeup, skin, hair, appliances,
personal care, fragrance, and LUXE. In more recent years, the brand has expanded its range,
bringing on more brands as well as introducing its very own cosmetics and beauty line.

22
9. First Cry:

Estimated number of monthly visitors: 16.94 million. Founded in 2010, firstcry.com is a pure e-
commerce platform that specializes in goods for babies and children up to early teens. Owned by
the Mahindra Venture, firstcry.com is the biggest children’s goods ecommerce site in Asia and
now has brick and mortar stores across the country. Anything one could imagine needing for their
little ones can be found on the platform. Its categories include apparel, toys, books, feeding and
nursing items, as well as mom and maternity products.

23
10. 1mg:

Estimated number of monthly visitors: 14.62 million. 1mg is an Indian online pharmacy making
healthcare accessible, understandable, and affordable for its customers. Not only is the site a
platform to purchase medicine and other healthcare products, but it acts as a portal to find
information about the medication doctors prescribe them in order to better understand what they
are taking. Founded in 2015, 1mg provides services including online consultations, lab tests, and
medical information, as well as products including fitness and nutrition products and supplements,
healthcare devices, personal care, Ayurveda products, and homeopathy items.

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CHAPTER- 4
Finding, Suggestion & Conclusion
4.1 PLANNING OF ONLINE BUSINESS:
In modern times online business is more popular in the new generation
entrepreneur. Online business is working in the internet platform. It is also known
as e commerce business. In other words online business is that type of business
activity which is done with the help of internet. Planning of starting an online
business is similar to start of an offline or traditional business. All the activities
regarding for organizing, staffing, financing are similar in both business. Process
of Starting on line business: Process or Steps to starting an online business:
• Plan the business: Like any business planning process should include thorough
market analysis, plans for fund product production, and perhaps a SWOT analysis
to begin your planning process.
• Write the business plan: After completing the preliminary planning, it's time to
write the business plan. It is a formal statement of business goals, reasons they are
attainable, and plans for reaching them. It may also contain background
information about the organization or team attempting to reach those goals. •
Register domain name and set up the website: After the finalization the business
mode as online business or e commerce platform than it is time to register the
companies or business's domain name. The registration of domain name starts with
the availability of domain name. If the name is available and ready to use than the
investor will proceed to setting up the business website. 4. Make it legal: After the
registration of the domain name entrepreneur is interested to make his business
legal. In this regards there are a few steps entrepreneur will have to take to make
sure his business is legal. In India following minimum legal requirement are
essential for the starting the online business.
• Company registration (May include application of Pan Card)
• A working bank account with your company name
• Import/Export license (if you are importing/exporting products from to outside
country)
• Application to Payment Gateway (depending upon your target audience) (Some
payment gateways may ask you to show the website first that you are going to
launch)

25
• A toll free phone number (Optional)
• A professionally registered domain name with your company name is essential;
personal name as website is not permitted in law to do business. (Optional)
• Email servers setup with your professional domain like info@vrinda.com
(Optional)
PLANNING ONLINE BUSINESSES
Planning an online business is similar to planning for any start-up venture it will
work on the following components:
• Business Plan: Every new online business needs at least an informal business plan.
Business plan is a written document that identifies a company's goals and outlines
how the company intends to achieve the predetermined goals and at what cost. The
main reason to writes a business plan by an entrepreneur is to use it to acquire
funding from a bank, an angel investor, a venture capitalist, or the financial
markets. Similarly, in an existing business a business case needs to be written for
any new large E Commerce project so management can decide whether to fund it.
A business plan also is important for a new venture as a tool to recruit senior
management and to convince business partners to make a commitment to the
business. A business plan helps ensure a thriving business by encouraging an
entrepreneur to set goals, anticipate problems, set measures for success, and keep
the business on track after starting it. A business plan forces the entrepreneur to be
realistic about the business's prospects. Sometimes the most successful outcome of
a business plan is a decision not to proceed.
• The Business Case: An existing brick-and-mortar business looking to imove
online business by adds E-Commerce projects or to transform itself to an e business
entity needs a business case. Business case is a document that is used to justify the
investment of organizational resources in a specific application or project. A
business case for a large, resource-intensive E-Commerce project resembles a
business plan. For a small or medium-size project, the business case can be much
simpler. A high-level template for a business case that you can use to justify new
online applications, such as a new e-procurement, e-learning an extranet, or
participation in a social network, is shown next point.

• A high-level business case template: High level business case template shows the
justification for the expenditure of resources on a specific online project or online
initiative in an existing business. If the business is considering a number of
different initiatives, you should prepare a separate business plan or case for each
initiative. If the initiative is for a new business, it will require a more
comprehensive business plan. The high level business case template includes the
following components:
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(a) Goals: High level business case starts with a specific description of what the
business wants to achieve through the online initiative. It will be expressed in terms
of increased sales, reinforcement of the brand or corporate image, improved
customer support, reduction in communications and marketing costs, and so forth.
A useful approach is to define the problem, propose a solution, and describe the
expected outcomes or impacts.

(b) Cost savings: Saving of cost is another important component in the high level
business case template. Through the use of High level business case template the
calculation of the reduction in existing expenditures taken as follows:
• An itemized and quantified list of existing costs that the project will affect and
• The estimated levels of savings that the project will generate (e.g., reduce
longdistance telephone costs by 45 percent). Multiply the costs by the saving levels
to find the expected reduction of expenditures. You should estimate these savings
for a short-term time frame, perhaps the first three years of the project's operation.
• New revenue: Creation of new revenue is another important component in the high
level business case template. Through the use of High level business case template
an increased revenue stream may be calculate as follows:
(1) An itemized and quantified list of existing net income (revenue from sales
minus cost of sales) the application or project will affect.
(2) The estimated levels of new sales that company expect (e.g.. increase product
sales by 12 percent). When company multiply the net income by the increased sales
levels, they get the expected amount of increased revenue. Do this for the same
multi-year time frame as used in the cost savings calculation.

(A) Extra benefits: List and, if possible, quantify any additional fiscal benefits
that are associated with the project like improved staff productivity, faster collection
of outstanding debts. If these benefits are difficult to estimate, it is best to list them,
but don't quantify them nor add them to the benefits identified previously. This
approach will produce an overall more conservative estimate of

Benefits, building in an extra cushion for project success in the event that the
business does not realize all quantified benefits.
An angel investor may provide the developer with an office, hardware, software,
salary, and access to human, financial resources and management expertise. In
addition to sometimes altruistic goals, the angel investor is looking for a reasonable
return on the investment made by them. Another important source of support, if not
direct funding, for pre venture capital firms is an incubator. An incubator is a
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company, university, or non-profit organization that supports promising businesses
in their initial stages of development. Although some incubators offer start-up
funding, the primary purpose of most incubators is to offer a variety of support
services-office space, accounting services, group purchasing, reception services,
coaching, and information technology consulting-at little or no cost. In return, the
incubator receives a modest fee, equity in the company, or both

(B) Second Round Financing (Venture Capital): One major source of funding
new ventures is venture capital. Venture capital (VC) is known as money invested
in a business by an individual, or a group of individuals (venture capitalists), or a
funding company in exchange for equity in the business. Venture capitalists tend to
invest in companies that have identified what seems to be an outstanding
opportunity, have taken some action to make the opportunity happen like written a
new software application, secured a patent, built an interesting social network that
attracts many visitors, conducted some promising experiments, or recruited key
personnel, and need an infusion of funds and management expertise to expand the
business. Venture capitalists usually invest large sums of money and expect. In
return, some management control and a profit on their investment within three to
five years, when the successful start-up goes public (an IPO) or when a larger
company merges with it or acquires it. The downside for the start-up business to
acquire Venture Capital is minimal; it loses some control over the business in return
for funds it is unlikely to acquire from any other source.

(C) Additional Funding (A Large Partner): As part of a Venture Capital

investment or after the depletion of Venture Capital money, one or more large
companies may step into the process. For example, Yahoo!, IBM, Microsoft,
Motorola, Google, Time Warner News Corp., and Oracle have invested in hundreds
of E Commerce start-up companies. Eventually, they may acquire the start-up
completely. Such investments are frequently done in complementary or competing
areas. For example, Yahoo! is a major investor in Google and in Baidu in China;
News Corp. acquired the start-up Myspace; and Google invested in dozens of
companies related to advertising, including the purchase of YouTube

In 2006. In recent years Rattan Tata and Tata & sons invested more than 100 start-
ups in India.

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(D) The IPO: Once the company is well known and successful, it will go to a
stock exchange to raise money via an initial public offering (IPO). In such offerings,
investors will pay a much larger amount of money per share than that paid by the
initial and secondary funding source, sometimes 5 or 10 times more per share. A
vivid example is the launch of Alibaba; its IPO was valued in the billions of U.S.
dollars on the Hong Kong stock exchange in October 2007. (The stock is now listed
on the OTC market in the United States.) 5. Adding e-commerce initiatives or
transforming to an e-business: Creating an e-business start-up certainly is exciting,
but it also is very risky. As with any other business, the failure rate is very high.
However, in cyberspace the uncertainties, plus lack of experience, may result in an
even higher rate of failure. Almost all medium-tolarge organizations have added or
plan to add E-Commerce initiatives to the existing business. The most common
additions are discussed as follows:
i. A Web store: Web store is an application used for electronic commerce. It is
hosted on the web and the customer accesses the store and makes a purchase over
the web. Generally it is known as an Addition in sales channel as an online sales
channel commonly used in both B2C (e.g., godiva.com, walmart.com) and B2B
(e.g., ibm.com). The required investment is fairly low, because inexpensive Web
store hosting and software is available from many vendors. A Web store can be built
fairly quickly, and the damage in case of failure may not be too large.

ii. A portal: A web portal is most often one specially designed web site that
brings information together from diverse sources in a uniform way. Usually, each
information source gets its dedicated area on the page for displaying information (a
portlet); often, the user can configure which ones to display. In modern era of
business almost all companies today have one or several portals that they use for
external and/or internal collaboration and communication.

iii. E-procurement: E-procurement (electronic procurement, sometimes also

known as supplier exchange) is the business-to-business or business-to consumer or
business-to-government purchase and sale of supplies, work, and services through
the Internet as well as other information and networking systems, such as electronic
data interchange and enterprise resource planning. E-procurement frequently
requires a business plan and extensive integration (both internally and externally),
so E-Commerce architecture must be place.
iv. Auctions and reverse auctions: Large corporations need to consider building
their own auction or reverse auction (for e-procurement) sites. Although forward
auctions can be added to a Web store at a reasonable cost, a reverse auction usually

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requires more integration with business partners and, consequently, a larger
investment and a business case.

v. M-commerce: M-commerce (mobile commerce) is the buying and selling of

goods and services through wireless handheld devices such as cellular telephone and
personal digital assistants (PDAs). In modern business many companies are
embarking on wireless applications inside the organization and on selling and
advertising via m-commerce technologies. vi. Enterprise social networks and Web
2.0 tools: In modern times social networking is an important tool for the business.
Therefore many large companies now offer blogs and wikis: others (e.g., Toyota,
Coca Cola, Wells Fargo Bank) operate enterprise social networks.

4.2 TYPES OF ONLINE BUSINESS:

The most important problem is to be taken consideration at the time of planning of
online business is. Which type of online business entrepreneur wants to start? There
are a few different options, and the best type to start will largely depend on the nature
of specific business, and the product. Some important types of online business are
discussed as follows:

1. An e-Commerce site: An e-Commerce site is the most direct form of online

business that can start: with a self-hosted e-Commerce site, on which. Companies
will be selling their goods and services directly to your customers, without a
"gobetween" such as eBay or Etsy. The best part about a direct e-Commerce site is
the level of Control Company has over the store. Companies will be able to
customize virtually all the options. When setting up their own e-Commerce site, such
as the complete look and feel of the store, but this flexibility makes the process that
much more complicated, too.

2. An Etsy store: Etsy is a peer-to-peer (P2P) e-commerce website focused on

handmade or vintage items and supplies, as well as unique factory-manufactured
items. These items cover a wide range, including art, photography, clothing,
jewellery. Food, bath and beauty products, quilts, knick-knacks, and toys. An Etsy
store is relatively easy to set up. The format of an Etsy store remains relatively
similar store to store, though you will have the ability to customize your layout a
little. However, all customers will buy through the Etsy interface, and the legwork
to get your site up and running is minimal. This may be a positive or a negative to
business, depending on how much control you wish to maintain over the site.

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3. An eBay store: An eBay Store is a comprehensive ecommerce solution that
helps to get more out of the eBay marketplace and the millions of buyers worldwide
who shop on eBay. It provides exclusive marketing and merchandising tools, plus
great customization features to build a strong brand that keeps customers coming
back. In comparison to Etsy, an eBay store has some significant advantages. Which
are also at the same time potential downsides. As with Etsy, company won't have to
set up a website, customize the online storefront, or choose shopping cart software-
when business use eBay to-sell the products, that are all included. However this
means, like Etsy, the customers will have to go through eBay to buy from the
company, and company will also have little control over the visual layout of the
store. As with Etsy, this may be a pro or a con for company, depending on the
business.

4. A site with no physical goods sold: The all above mention store is related to
the physical goods. In the contrary if the company is not selling the physical goods
or working in the field of services or consulting. In this case the business still needs
to accept payment via your site; you're most likely better off setting up your own
website, with very simplistic shopping cart software. However, Etsy is home to
plenty of web design businesses. Works on the virtual system which is operated
through the network of computers, and mobile phones. Therefore it is known as
virtual network.

5. Unique address to all associated people or systems: If any person wants to

work on internet than a unique address is to be assign to the system on he or she
wants to work. This address is known as Internet protocol (IP) address. IP address
is all system is unique and it specifies the Physical location of the system.

6. Means of communications: Internet provides the means of communication

to the public and business through email, fax, video chat, Teleconferencing, websites
etc. these means of communication is very popular in the modern life.

7. Information super highway: Internet creates the information super highway

for its user because on one click you have all the information available. In other
words internet provides the information very fast to its user in the text, graphics,
video and audio format. Therefore it is termed as information super highway.

8. Helpful in the doing business: Internet is also helpful in the doing business
in modern times. E-commerce is an important form of business in the world. In

31
modern times every business units want to make their own website for present their
business online.
9. Helpful in governance: In the modern times internet helps in the governance
by providing the online system for all the government works. Internet is originated
only for the government works in the form of Arpanet in US. In the present day all
government works done through internet like online form filling for recruitments,
tax collection, tendering process, etc.

Dynamics of internet: Internet is a reality of modern days. It is a global network of

computers that, potentially, will connect most of world's individuals, firms, and
organizations. It is envisioned to provide very high speed access to information in
all forms (text, graphics, audio, and video) via a telephone or wireless connection.
The dynamics of internet are discussed as follows:

1. Public, cooperative and self-sustaining facility: The Internet is a public,

cooperative and self-sustaining facility accessible to hundreds millions of people
worldwide in present days.

2. Uses a portion of total resource: Physically, the Internet uses a portion of

the total resources of the currently existing public telecommunication networks.

3. Protocols: Technically, what distinguishes the Internet is its use of a set of

protocols called TCP/IP (for Transmission Control Protocol/Internet Protocol). Two
recent adaptations of Internet technology, the intranet and the extranet, also make
use of the TCP/IP protocol.

4. Replace the postal services: For most Internet users, electronic mail (email)
practically replaced the postal service for short written transactions. People
communicate over the Internet in a number of other ways including Internet Relay
Chat (IRC), Internet telephony, instant messaging, video chat or social media.

5. Hypertext dynamics: The most widely used part of the Internet is the World
Wide Web (often abbreviated "WWW" or called "the Web"). Its outstanding feature
is hypertext, a method of instant cross-referencing. In most Web sites, certain words
or phrases appear in text of a different colour than the rest: often this text is also
underlined. When you select one of these words or phrases, you will be transferred
to the site or page that is relevant to this word or phrase. Sometimes there are buttons,
images, or portions of images that are "clickable." If you move the pointer over a

32
spot on a Web site and the pointer changes into a hand, this indicates that you can
click and be transferred to another site.

6. Web browser dynamics: Using the Web, you have access to billions of pages
of information. Web browsing is done with a Web browser, the most popular of
which are Chrome, Firefox and Internet Explorer. The appearance of a particular
Web site may vary slightly depending on the browser you use. Also later versions

Of a particular browser are able to render more "bells and whistles" such as
animation, virtual reality, sound, and music files, than earlier versions.

7. Unique identifier Dynamics: The Internet has continued to grow and evolve
over the years of its existence. For example. Internet Protocol Version-6 (IPV6) was
designed to anticipate enormous future expansion in the number of available IP
addresses. In a related development, the Internet of Things (lot) is the burgeoning
environment in which almost any entity or object can be provided with a unique
identifier and the ability to transfer data automatically over the Internet.

Basic concept of internet: The basic concepts of internet are discussed as follows:

1. Controller of Internet: The prime question arises in the minds of general

people that who controls this web, this cloud, this network of networks? The answer
is no one. The Internet seems to be both institutional and anti-institutional at the
same time, massive and intimate, organized and chaotic. In a sense the Internet is an
international cooperative endeavour. With its member networks kicking in money,
hardware, maintenance, and technical expertise.

2. Names and Addresses: On Internet every system has a unique address just
like the address of a person in a city or village. Most computers on the Internet can
be identified in two ways. Each computer, or host, has a name and a and services,
trade fairs and conferences, market information, new ideas and technical support.

3. Services: In modern business many companies provides their services online

or e commerce platform for example online banking, job seeking and applications,
and hotel reservations. Often these services are not available offline or cost more in
offline mode...

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4. Buy or sell products: The internet is a very effective way to buy and sell
products all over the world. Olx.com, quicker.com, flipcart.com, etc are some
important example for buy and sell online companies.

5. Communities: Communities of all types have sprung up on the internet. It's

a great way to meet up with people of similar interest and discuss common issues.
Face book, twitter, LinkedIn, local circle are most common example of communities
in internet.

6. Improved Customer Service: The Internet never sleeps. Therefore the

companies are available to their customers 24 hours a day, 7 days a week.Whenever
customer needs information about any company, products or services, they can
access the company's Web Page.

7. Market Expansion: The Internet is a global system. Latest estimates are that
there are about 40 million people with access to the Internet, and this number is
growing every day. By simply posting a Web Page you are also addressing
International markets.

8. Low Cost Marketing: Internet provides a low-cost marketing system to the

business houses and companies. For example the offline companies having heavy
expanses on the developing the brochure of the company. But in the internet
marketing developing a full colour brochure without having to incur the costs of
proofs, printers, wasted paper, long lead times between revisions, and more. Then
imagine a full colour product or services brochure that is interactive and which
incorporates text, graphics, audio, and/or video. One that can be immediately
updated without incurring the usual costs of product material updates. With the use
of internet companies or organizations are able to present their product to millions
of Internet users worldwide with a minimum cost.

9. Low Cost Selling: Without the cost of direct selling potential customers can
get detailed information about the products or services of the company at any time.
Apart of getting information they can easily order products over the Internet, or
request additional information is sent to them via a request form on the Web page of
company or e mail.

34
10. Lower Communication Costs: Most businesses and organizations spend
their time to answering the same questions again and again. With a Web page
companies are able to answers to everyone immediately.

ASSESSING REQUIREMENT FOR AN ONLINE BUSINESS DESIGNING

AND DEVELOPING AND DEPLOYING THE SYSTEM
ASSESSING. REQUIREMENT FOR AN ONLINE BUSINESS DESIGNING
After considered the methodologies of Internet Business Strategy, assessed the
current situation, and created vision and goals, it's time to figure out all the
requirements. Requirements in terms of an Internet strategy plan are much broader
than normal project requirements. These requirements need to encompass everything
needed by the organization to reach the predetermined vision and goals of the
business. The main requirements are discussed as follows:

1. Data Requirements: Data is the most important requirement of the internet

business. The requirement of the data for particular business is based on the
following things:
(i) What data and information do we need to attain our goals?
(ii) What information do we need for monitoring our efforts?
(iii) What content do we need?
(iv) Where can we get access to this data and information?
(v) How does the data and information need to be analysed?

2. Technology Requirements: Internet business is based on the technology

therefore the technology requirement is another important area of assessment at the
time of starting the business. The assessment of technology requirements is base on
the following things:
(i) What infrastructure do we need to support our strategy (network, servers, etc)?
(ii) What system architecture is needed (operating systems, web browsers, etc)?
(iii) What applications need to be supported (or purchased)?
(iv) Do any of the systems or applications need to work together? How? (v) Do
company have any legacy systems that need to be integrated?

3. Resource Requirements: Running the business on any platform human resource

is required. At the time of starting internet business the requirement of human
resource is based on following things:
(i) What skills and expertise are needed for company’s strategy? (ii)
Are the skills available within the organization?

35
(iii) Will new staff need to be hired?
(iv) Are consultants required?
(v) Are there any other resources we can use to meet our requirements (voluntary,
part-time, interns)?

4. Standards Requirements: At the time of starting any business some standard

requirements is necessary. If any company is not fulfils these requirements than the
company is not able to start the business. In the internet business the Following
standard requirements is necessary:
(i) Are there any organizational or external standards that require compliance?
(ii) What standards should be required or created in order to assure quality? (iii)
How will these standards be monitored?

5. Organizational Requirements: Over the-all organizational resource

requirements are the most serious requirements in the life of any business
organization. The assessments of organizational resources is based on following
Things:
(i) Are there any organizational changes needed to meet our goals?
(ii) Are the people resources required spread out throughout the organization? (iii)
How will they be organized and managed?
6. Executive Support: Executive resource is the back bone of any business
organization. Requirements Executive support is assessed on the following bases:
(i) What is required to ensure top-level executive support and buy-in?
(ii) How will executives be briefed on progress?
(iii) What involvement is required by executives to ensure success?

7. Coordination & Oversight Requirements: Coordination and oversight or

supervisory requirements is another area through the business organization performs
their work smoothly. The assessment of coordination and oversight requirements is
based on following things:
(i) Who is responsible for coordinating strategy efforts?
(ii) Who is responsible for making decisions related to strategy implementation?
(iii) Who is the champion of the strategy?
(iv) What responsibilities are required and how are they assigned?
(v) Who is monitoring progress and how is progress reported?

36
(vi) Who in these cases does not need to be an individual? A team may be more
effective especially if diverse departments are involved.

8. Policy Requirements: Policies are the basic guideline on which the business
organization works and take their decisions. In general following things required for
the internet business for the formulation of policies:

(i) Are there any existing policies that need to be considered and possibly altered
to attain our goals?
(ii) Do any policies need to be put into place?
(iii) Are there any external policies that need to be followed? 9. Staffing
Requirements: Staffing is one of most crucial area in the business. Every company
wants to optimum utilize their staff to get maximum profit. In this view an internet
business asses their staffing requirements on the following consideration:

(i) If we need more staff, how do we justify them?

(ii) What qualifications should new staff have? What support personnel are needed
for implementation and supporting new staff?
(iii) Can volunteers be used as Part-time personnel and Interns?
(iv) Are there any professional credentials or certifications that are relevant?
(v) What are the job descriptions for any new positions (or changes)?
10. Budget Requirements: Budgeting is a very useful tool for the control of the
financial resources for the attainment of the goal. For efficient budgeting the answer
of the following question required:
(i) What funding is required? How will we be funded?
(ii) Can we redirect existing funding?
(iii) Are there opportunities for cost sharing?
(iv) How do we get more funding/money?
(v) How will staff positions be allocated?
(vi) How will expenses and profits be 2.iocated?
(vii) How can we mitigate any future budget shortfalls?

11. Communication & Outreach Requirements: we are living in the world of

communication. All companies are engaged to communicate their brand to their
customer and prospective customer through their add campaign. Apart of the add
campaign companies are communicating with their employees and stake holders for

37
their plan and other related works. The assessment of communication requirement
of the company are based on the following things:

(i) What communications are required to keep implementation of our goals on

track?
(ii) Who will be responsible for coordinating any communications? (iii) Who
needs to be informed of progress? Are any external organizations or stakeholders
involved?

12. Risk Assessment Requirements - Risk taking is the prime concern of

entrepreneur. Without risk taking he is not able to start or expand his business. The
following points are taking consideration at the time of risk assessment in the internet
business:
(i) What major challenges could affect the outcome of our strategy (both internally
and externally)? (ii) How will we recognize risks and overcome them? might if we
do not overcome obstacles?

PROCESS OF THE DEVELOPMENT OF SYSTEM FOR ONLINE

BUSINESS
Online or Internet business is based on the software useful in the business. These
software’s are also known as the system requirement of the business. Development
of the software or system for the successful running online business is discussed as
follows:
1. Assessment of business need and nature: Every business has their own
characteristics and these characteristics are the base for the running of the business.
The development of the online system and their software is entirely depends upon
the nature of the business. Therefore understanding of the business needs and nature
is most important for the any software developer. Due to this fact software developer
starts his work with the assessment of the business needs and nature For the
assessment of business needs developer meets with all departments of the business.

2. Development of software framework: After the assessment of the nature

and need of the business, developer makes a framework of software. In the frame
work of the software, developer defines the no of the programme and the
environment of the software or the language in which the programme is written.

38
3. Formation or writing of programme: After developing the software
framework developer starts the writing of the programmes. It includes the coding of
the programme.

4. Running or execution of the programme: After the writing of the

programme developer try to run the programme. In this process he faces some error
and he removes the all error. When all the error is removed than his programme is
successfully executed. At the end of this process all programme is written and
executed.

5. Testing of the programme: After the successful execution at the programme

end these programmes are tested with the end user or the different department of the
business. When developer receives a positive feedback than he proceeds further
otherwise he makes the changes which are recommended by the end user.

6. Integration or compiling of the all programme into software: After

receiving positive feedback form the end users on the programme developers starts
the compiling or integrating different programme into software.

7. Test of demo software: After compiling the all programmes into software
developer make a demo software for testing and send it to the company and all
departments test the software and make recommendation if satisfy otherwise hey
give suggestions for improvement. 8. Make desired improvement and ready for
deployment: After receiving the suggestion developer make correction and
adjustment in the functioning in the software. After making all correction and
adjustment the software is ready for deployment.

4.3 DEPLOYMENT OF THE SYSTEM FOR ONLINE OR INTERNET

BUSINESS
System deployment is a complex endeavour which is a critical aspect of the software
development lifecycle (SDLC) for online business. The following techniques should
help in deploying the system for online business:

1. Identify and understand your deployment audience: There are at least three
distinct groups that developers need to consider:
(i) End users of the company,

39
(ii) The operations staff responsible for running the software once it is in
production.
(iii) The support staff which is responsible for aiding users with the software Once
it is in production. Apart of these groups the company needs to identify the level
of control hat each group has over the actual deployment.

2. Identify the deployment strategy early: Will the company run the new stem in
parallel with the existing system or perform a cutover? Both systems ave a different
strategy for their deployment which is discuss as follows: (i) Parallel deployment
strategy: Running the system in parallel offers the advantage that the company can
easily back out to the original system if the new one runs into problems. However,
a parallel operation requires significant effort on the part of everyone involved in the
exciting process as follows:
(a) Users need to do double entry.
(b) Operations staff need to run both systems,
(c) Support staff need to support both systems, and
(d) Development staff may need to create integration code that temporarily works
behind the scenes to synchronize data.
(ii) Cutover strategy: Cutover means a rapid transition from one phase of a business
enterprise or project to another. In an e commerce platform many systems are
supporting online customers via the Internet: a cutover is the only option available
to the company. For example few customers would be willing to place their order
with both Amazon version N and with Amazon version N+1. With a straight cutover
you will need to plan for a downtime period in which the cutover occurs, anywhere
from a few seconds to a few hours, or even a few days depending on the nature of
the system being deployed.

3. Installation testing: Before the installation of the software and its execution
in the business the functionality of the software is require to test. This test is known
as test of software scripts. A good way to do this is to develop the installation scripts
and use them to promote the software between the team sandboxes. This process is
known as pre-production testing environments the software which is shown in
Figure-!

40
4. Release regularly: In general software developers typically deliver
development releases at the end of each stage into pre-production staging area(s)
(see Figure 1). A development release of an application is something that could
potentially be released into production if it were to be put through the preproduction
quality assurance (QA), testing, and deployment processes granted.
This won't be true earliest development releases because term won't have delivered
sufficient functionality to make deployment worthwhile. Furthermore at the
beginning of a project company often stub out interfaces to shared services - such as
security, persistence, or even reusable legacy functionality - so technically company
still have some clean up to do before you're ready to release to production. This is
why in Figure 2 shows that the first production release often takes longer to deliver
than subsequent releases: in the first release of a system company likely need to get
a lot of the "plumbing" in place and the team likely hasn't "gelled" yet enabling them
to become efficient at collaboration. The first production release may take you
twelve months to deliver, the second release nine months, and then other releases
are delivered every six months. An early focus on deployment issues not only
enables you to avoid problems it also allows you to take advantage of your
experiences during development. For example, when you are deploying software
into your staging area you should take notes of what works and what doesn't. Notes
that can serve as the backbone of your installation scripts

5. Start planning early: Deployment can be quite complex, especially when the
user base is physically dispersed or there is a wide range of system configurations,
you often find that you need to start planning early in the project lifecycle to be
successful. There is nothing worse than rushing to finish software on time only to
have it put on the shelf to await installation due to lack of deployment planning.

41
6. Recognize that deployment is harder than it looks: It is a feeling of software
expert that the deployment is a harder process than it feels in public. Figure 3 depicts
the workflow of the Agile Unified Process (AUP)'s Deployment discipline.
Regardless of it whether the company has adopted the AUP or not, the fact is that as
shown in figure 3 there are several activities which you need to consider when
deploying a system production.

Growth of online retailing in India:

India e-commerce has grown at a compounded annual growth rate of 30% since
09, and is expected to be $18 billion (around Rs 1,116,00crore) opportunity by
FY15. The findings part of report: Indian Ecommerce-Tip of the Iceberg, by
Macquarie Equities Research back this high growth rate on rising internet
population, over 300 million middle class population, increasing mobile penetration
and low levels of e-commerce activity.
"Compared to the west, India's ecommerce industry is still in its infancy. E
commerce contributes only 0.6% of the country's GDP vs 1-3% for other countries,
with only 12% of India's online population transacting online vs 64% for the US and
over 50% for China," said Atul Soni and NitinMohta in the report. This growth will
further be accentuated by companies going in for public listing. In the Indian context,
only two intimate-based companies are listed on the markets, including Info edge,
which runs India's largest job portal (naukri.com), and just dial, which is India's
largest local search site. The nature of Indian e-commerce is also different. Travel
has the lion's share of 71% of Indian e-commerce, but e-tailing has grown the fastest,
at a 59% CAGR between FY09-13E, to reach 16% market share. Compared to the
west, India's ecommerce industry is still in its infancy, but we believe that it may
become a bigger part of the entire retail universe than in the west. "We believe that
for many young Indians, Online shopping may become their primary way to shop
throughout their lives. Whenever significant opportunities such as e commerce
present themselves, many market participants compete aggressively to try to emerge
as undisputed leaders to gain brand recognition and customer loyalty, and oftentimes
these players change their business model along the way to grow with the market,"
said the report.

42
4.4 E-COMMERCE PROCESS
E-commerce process involves via three logical entities- the storefront, the payment
mechanism and the supply. The storefront is nothing but a series of HTML, web
pages that display the products. The development of the same is quite simple and
easy, with thousands of software available in the market. The third is more of a
physical world operation which were all familiar with- like supply chain, logistics
etc., However the second part, the payment mechanism, is very crucial, and the entire
e-commerce depends on this.
E-payments are central to the whole business cycle, as they would allow the
companies to service customers faster, innovative and at lower costs. This is also the
crucial part, because if the claims and debits of the various participating companies’
customers, servicing companies, and the bank are not balanced, because of payment
delays, or even worse payment defaults then the whole process is disrupted. Hence
the central to the problem is prompt and secure payment, clearing and settlement of
credit and debit claims.
The company’s world over utilizing credit cards for payments. This is a time-tested
solution for all the problems. There is nothing new in the process, its very basic the
consumer who buys a service from merchant pays by entering his credit card details
and the credit card organization will handle the payments.
The elements that go into the payment mechanisms are:
 Cardholder- The individual who is making the purchase (either goods or
services) using the credit card.
 Merchants- the Company that is selling goods and services to cardholders.
 Issuing Bank- The bank that has issued the credit card to the cardholder. The
issuing bank provides the monthly billing statements to the cardholder.
 Acquiring Bank- The bank that enables the merchants to accept the credit/card
payments. This works in conjunction with the payments gateway to accept or decline
the cardholders purchase request.
 Card Association- An association has such as VISA International and master
card, which issues credit card through its members. All American
Express and Discover are not Card Association, as

They are not issued by any bank and are offered directly to the cardholder. They are
referred to as Card Issuer.
43
 Payment Application- An application used by the merchants to represent
credit card authorization and settlement of funds between the merchant and
acquiring bank.
There are two types of processes that are utilized by the payment mechanism:
 Authorization Process-The credit card details as entered by the cardholder are
verified and confirmed with the issuing banks.
 Settlement Process- The transfer of funds between the issuing banks and the
acquiring banks.

Authorization Process
When making purchases over the web, the cardholder uses a web browser to procure
information from the merchant. The merchant captures the product information as
well as credit card information and then communicates the credit card information
to the acquiring bank through the payment application.
The authorization process in a typical e-commerce cycle. These are two cycles-
Authorization and settlement. Using a web browser, the cardholder visits the
websites of the merchant, where goods or services are displayed.
E-commerce Payment Mechanism
Under e-commerce payment mechanism, the customer selects the product, which he
intends to purchase by clicking on the ``Purchase’’ button. A form opens up on the
web browser, which would be secure, status bar of the browser indicates that the site
from that point on is secure and encrypted in which cardholder enters his credit card
information.
 The payment application encrypts and transmits the credit card information to
the acquiring bank through secure communications with secured sockets layer.
 The system in the acquiring bank received the information and forwards this
information to the card association to the card associations for verification as
well as authorization.
 If the card information is incorrect or if the credit card number is invalid, then
a message declining the transaction is generated and transmitted to the customer
through the merchant.
 The information encrypted and sent to the merchant through the payment
application and then on to the cardholder.
 Apart from the verification of credit card, the acquiring bank also verifies the
address whereby the shipping details provided by the cardholder at the time of
sale`s compared to the billing information. This whole end to end process
takes only a few seconds based on the payment applications, traffic, and internet
connections and the client and others.
44
After successful authorization of the credit card, the merchant initiates the fulfilment
process of the product or services as requested by the cardholder.
Settlement Process
The settlement process of the orders fulfilled by the merchant:
 The merchant on a periodic basis compiles a list of fulfilled orders and transmits
the details to the acquiring bank. This is a typical batch process.
 The merchant`s payment application encrypts the purchase information and
transmits the encrypted information to the acquiring bank.
 The acquiring bank sends settlement instruction to the appropriate card
association for verification.
 The merchant receives a notification with the fund transfer.

While the authorization process takes only few seconds, the settlement process may
take several days, depending on the funds availability with the issuing bank, as well
as other procedures and policies.
Currently HDFC Bank and ICICI Bank have launched payments gateways for online
transactions. Payments can be affected through credit cards or directly by debiting
the accounts of customer of the respective banks.

45
 4.4 E-COMMERCE PROCESS CYCLE
Pay seal Indian (ICICI`s) Payment Gateways: ICICI `s gateway has been developed along

Card holder clicks on Merchant captures Payment

purchase button the information application
encrypts the
information and
forwards to the
acquiring bank

Acquiring bank
forwards the
information to
the card
association or
card issuer

Payment
application
encrypts the
Card holder is notified Merchant receives
information
with confirmation confirmation
and forwards to
number message the acquiring
bank
Examples of e-Commerce
with Compaq and QSI. Financial software system is implementing the project in India. The
acquiring is implemented in two mode: Offline purchasing Process, Online Purchasing Process.
I I. The offline purchasing process: This is an example of business to consumer credit card
transactions. The transaction process is being explained in the below diagram of transaction with
the pay seal. The customer presents his card at the merchant`s shop. The merchant uses a point of
sale service to send the card information over a dial up connection to his acquiring bank. The
acquiring bank then sends his information to the issuing bank through the card networks. The
issuing bank than authorizes or rejects the transaction and sends the messages back to the merchant
over the path.
II II. The online purchasing process: In the online market place buyers and sellers are often
unknown to each other in the process of purchasing a product with a credit card by telephone. In
the environment, the customer cannot validate the card usage with his signature, which is the norm
in offline transactions. The authentication of the card in the absence.

46
BENEFITS OF E-COMMERCE
Important benefits are as follows: -
• • Larger purchases per transaction
• • Integration into business cycle
• • People can shop, in different ways
• • Ledger Catalogues
• • Improved customer interactions
• • Reduction in inventions
• • Access tom more geographically dispersed customer base
• • Lower procurement processing cost

Some of the benefits are very specific to the consumers such as

• • Increased choice of vendors and products
• • Convenience from shopping at home or office
• • Greater amounts of information that can be accessed on demand
• • More competitive and increased price comparison capabilities
• • Greater customization in the delivery of services.

47
SUCCESS FACTORS IN E-COMMERCE
In many cases, an e-commerce company will survive not only based on its product,
but by having a competent management team, good post sales services, well
organized business structure, network infrastructure and a secured, well designed
website. A company that wants to succeed will have to perform two things:
Technical and organizational aspects and customers oriented.
Technical and organizational aspects:
• • Sufficient work done in market research and analysis. E-commerce is not
exempt from good business planning and the functional laws of supply and
demand. • • A good management team armed information technology strategy. A
company`s IT strategy should be a part of the business re design process.
• • Providing an easy and secured way for customers to effect transactions.
Credit cards are the most popular means of sending payments on the internet,
accounting for 90% of online purchases. In the past, card numbers were transferred
securely between the customer and merchant through independent payment
gateways, such independent payment gateways are still used by most small and
home business. • • Providing reliability and security. Parallel servers,
hardware redundancy, fall safe technology, information encryption and
firewalls can enhance this requirement.

48
• • Providing an attractive website. The tasteful use of colour, graphics,
animation, photographs, fonts, and white space percentage may aid success in this
respect.
• • Streamlining business processes, possibly through reengineering and
information technologies.
• • Providing complete understanding of the products or services offered, which
not only includes complete product information but also sound advisors and
selectors.

Naturally, the e-commerce vendor must also perform such mundane task as being
truthful about its product and its availability, shipping reliably and handling
complaints promptly and effectively. A unique property of the internet environment
is that individual customers have access to far more information about the seller than
they would find in brick-and-mortar situation.
Customer Oriented:
A successful e-commerce organisation must also provide an enjoyable and
rewarding experience to its customers.
• • Providing an incentive to its customer to buy and to return sales promotion
to this end can involve coupons, special offers, discounts.
• • Providing personal attention, personalised websites, purchase suggestions
and personalised special offers may go some of the way to substituting for the face
to face human interaction found at a traditional point of sale.
• • Providing a sense of community, chat rooms, discussion boards, soliciting
customer input and loyalty programs can help in this respect.
• • Owning the customer`s experience. E-sellers fosters this by treating any
contacts with a customer as part of a total experience, an experience that becomes
synonymous with brand.
• • Helping customers do their job of consuming. E-sellers and online shopping
directories can provide such help through ample comparative information and good
search facilities. Provision of component information and safety and health
comments may assist e-sellers to define their job.

49
4.5 PROBLEMS
Even if a provider of e-commerce goods and services rigorously follows these key
factors to devise an exemplary e-commerce strategy, problems can still arise. •
• Failure to understand customers, why they buy and how they buy. Even a product
with sound value proposition can fail if producers and retailers do not understand
customer’s habits, expectations and motivations. E-commerce could potentially
mitigate this potential problem with proactive and focused marketing research just
as traditional retailers may do. • • Inability to predict environmental reaction.
What will competitors do? Will they introduce competitive brands or competitive
websites? Will they supplement their service to offerings? Will they try tom sabotage
a competitor`s site?
• • Over estimation of resource competence. Can staff, hardware, software, and
processes handle the proposed strategy? Have e-sellers failed to develop employee
and management skills? These issues may call for through resources planning and
employee training.
• • Failure to coordinate. If existing reporting and control relationships do not
suffice, one can move towards a flat, accountable and flexible organizational
structure, which may or may not aid coordination.
• Failure to obtain senior management commitment. Thus, often results in a
failure to gain sufficient corporate resources to accomplish a task. It may help to get
top management involved right from the start.
• • Failure to obtain employee commitment. If planners do not explain their
strategy well to employees, or fail to give employees the whole picture, then
training and setting up incentives for workers to embrace the strategy may assist.
50
• • Failures to expect the unexpected. Too often new businesses do not take into
account the amount of time, money or resources needed to complete a project and
often find themselves without the necessary components to become successful.

PRODUCT SUITABILITY
Certain products or services appear more suitable for online sales, others remain
more suitable for offline sales.
Many successful purely virtual companies deal with digital products, music, movies,
office supplies, education, communication, software, photography and financial
transactions. Examples of this type of company includes Google, eBay and Pay pal,
other successful marketers such as use drop shipping affiliate marketing techniques
to facilitate transactions of tangible goods without maintaining real inventory.
Virtual marketers can sell some non-digital products and services successfully. Such
products generally have a high value to weight ratio, they may involve embarrassing
purchases, they may typically go to people in remote locations and they may have
shut-ins as their typical purchasers. Items which can fit through a standard letter box
such as music CDs, DVDs and books are particularly suitable for a virtual marketer
and indeed Amazon.com, one of the few enduring dot.com companies have
historically concentrated on this field.
Products such as spare parts, both for consumer items like washing machines and for
industrial equipment’s like centrifugal pumps, also seem good candidates for selling
online. Retailers often need to order spare parts specially, since then typically do not
stock them at consumer outlets- in such cases e-commerce solution in spares do not
compete with retail stores, only with other ordering systems.
Purchases of pornography and of other sex related products and services fulfil the
requirements of both virtually and potential embarrassments unsurprisingly
provision of such services has become the most profitable segment e-commerce.
There are also many disadvantages of e-commerce one of the main ones is fraud.
This is where your details are entered into what look to be a safe site but really it is
not. These details then can be used to steal money from you and can be used to buy
things online that you are completely unaware of until it is too late. If this
information is leaked into the wrong hands. People are able to steal your identity and
commit more fraud crimes under your name.
Products less suitable for e-commerce include products that have a low value to
weight ratio, products that have a smell, taste or touch component. Products that
need trial fittings most notably clothing and products where colour integrity appears
important. Nonetheless, Tesco.com has had success delivering groceries in the UK,
51
that many of its goods are of a generic quality and clothing sold through the internet
is the big business in the US. Also, the recycling program cheap cycle sells goods
over the internet but avoids the low value to weight ratio problem by creating
different groups for various regions so that shipping costs remain low.
➢ Shipping profile

-Collection of attributes that affect how easily a product can be packaged and
delivered
➢ High value-to-weight ratio

-Can make overall shipping cost a small fraction of the selling price
➢ Commodity item

-Hard to distinguish from the same products or services provided by other sellers
-Features have become standardized and well known

52
4.6 ACCEPTANCE
Consumers have accepted the e-commerce business model less readily than its
proponents originally expected. Even in product categories suitable for ecommerce,
electronic shopping has developed only slowly. Several reasons might account for
the slow uptake, including:
• • Concerns about security. Many people will not use the credit cards over the
internet due to concerns about theft and credit card fraud.
• • Lack of instant gratification with most e-purchases. Much of a consumer`s
reward for purchasing a product lies in the instant gratification of using and
displaying that product. This reward does not exist when one`s purchases does not
arrive for days or weeks.
• • The problem of access to web commerce, mainly for poor households and
for developing countries. Low penetration rates of internet access in some sectors
greatly reduce the potential for e-commerce.
• • The social aspects of shopping, some people enjoy taking to sales staff, to
other shoppers or to their cohorts, this social reward side of retail therapy does not
exist to the same event in online shopping.
• • Poorly designed, bug infested e-commerce web sites that frustrate online
shoppers and drive them away.
• • Inconsistent return policies among e-sellers or difficulties in
exchange/return.

53
E-COMMERCE TECHNOLOGIES
Some of the important e-commerce technologies are discussed as follows: -
➢ Electronic Data Interchange- EDI is the preparation, communication and
processing of business transactions and data electronically. In a predefined structure
format using computers and telecommunication links. Large corporations mostly use
it and their satellite suppliers working together over a private network called a
Value-Added Network. These VAN offer reliability and security and that is difficult
to on the internet so far. An EDI services provide maintains a VAN with mailboxes
for each business partner. The provider stores then forward EDI messages between
partners.

54
Store and forward messages

VAN Translation

EDI standard
EDI standard messages
messages

Business
Application
Business
Application

➢ Electronic Fund Transfer-It involves the electronic transmission of financing

transactions between banks, banks and companies, banks and consumers, or
companies and consumers. EFT adds another dimension to EDI allowing for direct
deposit of payments without cheque writing, receiving, processing or cancelling.
Examples of EFT systems: - Large scale or wholesale payments, small scale or retail
payments, home banking, credit cards, private label credit\debit cards, smart cards
or credit cards, token based payment systems and etc.

55
➢ Debit Cards-With a magnetic strip and an embossed identification number,
debit cards are used by consumers to obtain money from automatic teller machines,
to pay for goods or services at retail locations, and to access home banking or bill
payment services. The major point is that debit cards provide no line of credit,
purchases are directly debited to a consumer`s bank account or to the prepaid amount
encoded on the card.
➢ Smart Cards- Smart card is a plastic card with an embedded chip and a tiny
display that provides user with new password each time they log in a system. The
smart card is portable data storage device with provision for identity and security.
Smart cards are designed to replace the traditional magic strip credit or bank cards
introduced at the end of 1960s.

➢ E-Mail-Electronic mail provides for the electronic transmission of letters,

messages and other documents. There is a large installed base of email users in the
corporate environment the learning curve has proved to be relatively short for new
users.
➢ Bulletin Board System-Bulletin board system or BBS are computer network
accessible by modern that offers the facility for multiple subscribers to use
information electronically. They provide access to computer files, games, email
discussion groups and other services.
➢ Electronic Image Processing-This is not a recent innovation. It is the result
of bringing together several older technologies to facilitate the following: -
• Converting images from paper to electronic code.
• Classifying images to later retrieval storing the images.
• Distributing the images.

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E-COMMERCE STANDARDS
1) Electronic Data Interchange-EDI is a common document structure designed
to let large organizations transmit information over the private networks. EDI is now
finding the role on corporate websites as well.
2) Open buying on the internet-This standard is created by the internet
purchasing round table, is supposed to ensure that al the different e-commerce
systems can talk to one another. This was released by OBI consortium is backed by
leading technology companies such as Microsoft, Open market and Oracle.
3) The Open Trading Protocol-It is intended to standardize a variety of
payments related activities including purchase agreements, receipt for purchases,
and payments. It was created as a computing standard to OBI by a group of
companies Cyber cash, Hitachi. I&M, Oracle, and British Telecom.
4) The Open Profiling Standard-A standard backed by Microsoft and Firefly,
OPS let users create a personal profile of preferences and interests that they want to
share with merchants. The idea behind it is to help consumers protect their privacy
without banning online collection of marketing information.
5) Secure Socket Layer-This protocol is designed to create a secure connection
to the server. SSI uses public key encryption, one of the strongest encryption
methods around to protect data as it travels over the internet.
6) Secure Electronic Transaction-SET encodes the credit cards number stored
on merchant servers. This standard created, by visa and master card enjoys wide
support in the banking community. The first enabled commerce is already being
tested in Asia.
7) Trust-This partnership of companies seeks to build public trust in e-
commerce by putting a good housekeeping style seal of approval on sites that do not
violate consumer privacy.

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E-COMMERCE AND INTERNET
According to Cathey J. Medich, Executive Director of commerce Net. `The Internet
is redefining the model for electronic commerce to one that supports the complete
seller to buyer relationship. This model includes promoting and communicating
company and product information to a global user base, accepting orders and
payments of goods and services online, delivering software and product information
online. Providing ongoing customer support and engaging in online collaborations
for new product development.’
Electronic Commerce System rely on the resources the internet, intranet, extranet,
and other computer networks to support every step of titles process. For example, e-
commerce can include interactive marketing, ordering and payment processes on the
World Wide Web. Extranet access to inventory data bases by customers and
suppliers. Internet access of customer records by sales representatives and customer
service and involvement in products developing via internet news groups and e-mail
exchanges.

58
E-COMMERCE SOFTWARE SOLUTION
Solutions like Inters hop’s` e-pages, I Cats Lemonade stands, Yahoo`s stores
provide storefronts that are ready to go. Just pick a design and pop in your products:
you are ready for business.
Other applications such as Intershop3.0 and ICat professionals allow you to change
standard templates that came with the packaged software so that you can customize
the way your storefront will look and feel. These solutions also let you extend the
standard features and behaviours contained in the templates- assuming you can
speak their application language.

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ELECTRONIC STOCK TRADING
Electronic commerce creates threats and opportunities for brokers and
intermediaries of all kinds not only travel agents, but insurance brokers, loan
brokers, stock brokers, and brokers of food and mechanical parts as well. The threat
to these intermediaries is that their customers will bypass them by obtaining
information and meeting their purchasing needs through new online channels. The
opportunity for intermediaries is to use electronic commerce to create one of those
new channels, thereby providing better service than a customer could otherwise
obtain.
By 1997 Web based information and transaction capabilities spanned most of the
customer involvement cycle for buying and selling stocks and bonds. Private
Investors could obtain readily available data and analysis software to identify stocks
they wanted to buy and sell. Some of it could be accused for free from the home
pages of companies providing search engines and other services not specifically
related to finance. Investors could make the purchases through web transactions,
touch tone phones, or human agents. Their stock and bond holdings and transactions
could be tracked. They could obtain customer service information about the status
of buy and sell orders.

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ELECTRONIC BANKING
The banking industry relied on computers for decades before electronic banking
created new way and to provide service. A first step in electronic banking for
consumers was the advent of automatic teller machine populated by Citibank in the
late 1970s. Citibank tripled its depositors from 1978 to 1987, increasing its local
consumer market share from 4.5% to 13%.
More recently several national ATM networks permit customers to withdraw money
from ATMs in all major cities in the United States and some cities abroad.
The next step in electronic banking for consumers to provide additional banking
services and transactions through personal computers linked to the web or to private
networks.
In addition to providing history and bank balance information, electronic banking
permits people to pay bills without writing cheques. The electronic banking
customer starts by identifying cheques that are written to the same payee. The
electronic banking system makes it possible to enter the amount of cheques and then
have the bank transfer the money to the payee`s account without ever handling a
physical cheque.
To pay the bill, you need to specify which account at which bank should receive the
funds. The bank may be out of state and the payee`s accounts receivable systems
may not be setup to receive payments detected to its banks, it may require that
payments go to its accounts receivable department.
Electronic banking has advantages for people who write a lot of cheques but for
others it is simpler to slip physical cheques into preaddressed reply envelops.

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SECURE ELECTRONIC TRANSACTION
Secure Electronic Transactions is a standard protocol for securing credit card
transaction over insecure networks, specifically, the internet.
SET is not itself a payment system but rather a set of security protocols and formats
that enables users to employ the existing credit card payment infrastructure on an
open network in a secure fashion.
SET was developed by VISA and Mastercard (involving other companies such as
GTE, IBM, Microsoft, Netscape, RSA and Verisign) starting in 1996.
SET was said to become the de facto standard of payment method on the internet
between the merchants, the buyers and the credit card companies. When SET is used
the merchant itself never has to know the credit card numbers being sent from the
buyer which provide a benefit for e-commerce.

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FUTURE EXPECTATION ABOUT THE
ECOMMERCE
The internet serves a great number of functions and not all of them should be
classified as e-commerce. The e-business application of the internet is developing
but they are a long way from fulfilling the predictions of the pandits. Internet
ecommerce has changed the life of a few web entrepreneurs but its effect on the lives
of most other people has been very slight.
Everyone agrees that electronic commerce is going to be very bigor enormous. But
nobody knows when there is considerable disagreement about the historic impact of
electronic commerce, let alone the future one.
Although all commentators present forecasts for the short term which contain truly
eye-catching growth, their figures fail to achieve anything remotely approaching the
size of existing modes of trade. And yet no commentator doubts the power of
electronic commerce to challenge those existing modes.
In order to explain this paradox, many observers allude to technical cost and
infrastructural impediments. For electronic commerce to deliver its full promise,
there will have to be business, social and cultural changes and these will take more
than two or three years to complete.

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DRIVING BUSINESS ON THE INTERNET
E-commerce will be the key driver of the Indian Economy and will be the key
revenue stream for companies in the days to come, many experts like Malaya
Sengupta, CMD, MSTC, Ltd. R.S. Pandey, steel secretary and Dr Debesh Das, IT
Minister, WB at the ingural session of Ecom, the seminar on e-commerce organised
by MSTC Limited with The Economics Time on June 2009in Kolkata have agreed
in this statement.
A case study in point was Host Company MSTC limited that has successfully
increased business manifold with the use of e-commerce.
1. WHY E-COMMERCE?

When MSTC has adopted e-commerce initiative then it given them returns far
above anyone`s expectations.
• • It is a paperless process and it does not give any unfair advantageous to any one party.
• • E-commerce users have now is that digital signatures are recognised by all courts of law
and that electronic contracts are legally valid.
• 2. THE LOOPHOLES
• • In a country like India band width is a major problem, the internet is slow and for bidders
it takes long to just log on.
• • The poor power supply in various part of the country that makes e-trading difficult.
• • Electronic fraud might even happen at a night club when the card is handed over to the
cash counter.
• 3. THE WAYFORWARD
• • E-commerce is poised to take over the country in the next few years. Now people have
started buying cars through net which in itself is a pointer that electronic trade is here to
stay.
• • E-commerce will be driven by personalised and niche thing that are not available in stores.
• • We have facilities like secured socket layering and firewalls that are impossible to hack.
These will make e-transaction safer and promoted ecommerce.

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4.7 CONCLUSIONS
At last the conclusion comes that now a day by day e-commerce are getting lots of
success. Today many companies have adopted the e-commerce because ecommerce
has become the buzzword for successful businesses across the world as also in India.
So, it will, be concluding that in the future e-commerce has growing faster. That
means in the future e-commerce is one most important key factor to success of any
company.
The Indian Economy is expected to even overtake the US economy by 2045 and
ecommerce. I am sure will play a major part in that.

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 22. Rao ‘Financial appraisal of Indian Automotive Tyre Industry’. 1993
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BOOKS: -
• E-COMMERCE
• ENTERPRENURESHIP DEVELOPMENT

The cutting Edge of Business

KAMLESH K BAJAJ
DEBJANI NAG
• E-COMMERCE

STRATEGY, TECHNOLOGIES ANDAPPLICATIONS

DAVID WHITELEY
• MANAGEMENT INFORMATION SYSTEMS & CORPORATE
COMMUNICATION (PAPER 4)

THE INSTITUTE OF COMPANY SECRETARIES OF INDIA

NEWSPAPER: -``ECONOMIC TIMES’’
MAGAZINE: -``digit’’
WEBSITES: -
1) www.goggle.com
2) www.e-commerce.com

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