Practical File

On

E - Commerce
Submitted to
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
In partial fulfillment of the requirements for the award of the degree of
BACHELOR OF BUSINESS ADMISNISTRATION
(Regular Degree)
(6th SEMESTER)
Submitted by

Name: Anubhav pandey

REG. No: 2116241116

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 INDEX

Page
S No. Topic Name Remarks
No.
Who are the stakeholder in e -commerce 3 to 9
1 information system? Explain the
benefits and limitation of e- commerce ?
The public is highly concerned with the 9 to 12
safety of e-payments. What are the specific
2 measures put forward in the guidance in
this respect? Explain in detail.
Discuss the security requirements of 12 to 22
internet and E-Commerce applications and
3 how these requirements are fulfilled by
various hardware and software systems.
Explain.
4. What is EDI? Is it essential for growing 22 to 27
4 business? How it is linked to e-commerce?
Explain.
Explain in detail the application of 27 to 39
Ecommerce in the below mentioned
sectors? Also mention, real-time examples
5 of how ecommerce transformed the
commerce in each sector.
a) Manufacturing b) Wholesale c) Retail d)
Service
Elaborate the phases of business planning 39 to 42
6 in ecommerce project.
What is conceptual design? Explain the role 42 to 47
7 of conceptual design in ecommerce
projects?
Differentiate between Pure Online and 47 to 48
Brick & Click Businesses. Also, illustrate
8 few examples of the organizations that
successfully implemented both orientations
in their businesses.
What are the various tools used for 49 to 55
9 promotion of website. Explain in detail.
With the help of diagram explain in detail 55 to 62
10 the e-commerce process flow.

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1. WHO ARE STAKEHOLDERS IN E-COMMERCE
INFORMATION SYSTEM ? EXPLAIN THE BENEFITS
AND LIMITATIONS OF E-COMMERCE .
A Stakeholder is a person, or a group that has interest in an organisation's
activity. There are many different stakeholders in E-commerce. Some of the
main stakeholders are the buyers, designers, companies and competitors. They
can affect or be affected by E-commerce.

The following information shows the advantages and disadvantages of each

stakeholder:

Buyers
Advantages: can easily shop online and able to buy products overseas
Disadvantages: Safety and privacy are issues

Designers
Advantages: Can sell products online without a store.
Disadvantages: it is hard to convince people to buy their products

Companies
Advantages: Can quickly and easily inform customer of their new products
Disadvantages: Sell might decrease since people start buying online.

Competitors
Advantages: easily find out its competitors' sells and cost. Also can improve
itself
Disadvantages: customers might go to their shop
Electronic commerce, in a broad sense, is the use of computer networks to
improve organizational performance. Increasing profitability, gaining market
share, improving customer service, and delivering products faster are some of
the organizational performance gains possible with electronic commerce.
Electronic commerce is more than ordering goods from an on-line catalog. It
involves all aspects of an organization’s electronic interactions with its
stakeholders, the people who determine the future of the organization. Thus,
electronic commerce includes activities such as establishing a Web page to
support investor relations or communicating electronically with college students
who are potential employees. In brief, electronic commerce involves the use of
information technology to enhance communications and transactions with all of

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an organization’s stakeholders. Such stakeholders include customers, suppliers,
government regulators, financial institutions, mangers, employees, and the
public at large.

Advantages of E-Commerce

E-commerce offers advantages to businesses and customers. Let’s first take a

look at the benefits for businesses:

Greater Reach

One of the biggest advantages of e-commerce is that you can reach customers
globally. Customers can shop at their convenience as long as they have a device
connected to the internet. Rather than limiting yourself to the shoppers in a
specific locality, you can sell nationally and internationally.

Tracking, Analytics, and Insights

Track traffic and your customers’ buyer journeys and get insights into their
behaviour and expectations; you can shape your marketing strategy using these
insights as a base. Regardless of the source of the traffic—SEO, PPC, or
conventional methods like flyers and newsletters—you can track customer
behaviour. Analytics tools are mostly built into e-commerce sites, allowing you
to monitor your customer’s progress through the sales funnel without fuss. Data
like customer preferences and feedback, inventory management, marketing
strategy effectiveness, etc. is easily measured and converted into actionable
insights.

Respond Quickly to Trends and Demands

Businesses can leverage streamlined logistics to respond rapidly to market

trends and customer demands. It also allows businesses to launch campaigns
and offers on the go to attract more customers and boost sales. This is a
noteworthy point when we are discussing the pros and cons of e-commerce.

Lower Cost

As eCommerce platform technologies improve, setting up and maintaining an

online store has become super easy and affordable. Compare this with high
rentals, overheads, wages, insurance, utility payments, and more when you have
brick-and-mortar stores. These overheads can drain your finances. In
comparison, an e-commerce business is far easier to start.

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Detailed Product Information

You can get detailed information on products, demo videos, customer reviews,
etc. on e-commerce sites; this is not possible in physical stores as there is
limited space. This information makes it easier for customers to make a
purchase decision.

Personalised Messaging

Businesses can send personalised marketing messages as well as relevant

product recommendations to regular customers. Targeted communications have
a greater chance of converting visitors.

Easy Scalability

The ability to quickly scale up or down is one of the chief benefits of e-

commerce for businesses. As it is not defined by available space, businesses can
be scaled up or down to respond to consumer demand. You could say that e-
commerce stores have unlimited shelf space. You can improve your IT
infrastructure, add more channels of communication with customers, upgrade
your services and product offerings, and include more payment options. E-
commerce platforms are designed to handle extra traffic and transactions as
your business grows.

Unrestricted Space

E-commerce sites can display any number of products to consumers, as they are
not limited by physical space. Plus, you can make these available to your
customers at any time, allowing you to engage in global expansion.

Quicker and Innovative Marketing

When we talk about the advantages and disadvantages of e-commerce, it is

imperative to mention this point. You can market products quickly and in novel
ways, too. With just a few clicks, you can launch loyalty programmes, announce
new product launches, and place targeted ads on social networks. The
integration of a recommended product engine into your website can help you
cross-sell and upsell products. Omnichannel purchase rates are much higher
than single-channel rate.

More Sales Channels

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E-commerce offers multiple sales channels, like social media, mobile apps, web
portals, banner ads, click-through ads on Google and social networks, videos,
blogs, and so on. It

allows you to target the customer according to their preferred channel and to
provide more information about the product as well.

In addition, businesses can:

 Reduce paperwork
 Deliver better services
 Boost productivity
 Minimise investment
 Build, maintain and improve the brand image

Benefits of E-Commerce for Consumers

 Customers can shop and get responses to their queries around the clock,
regardless of where they are
 It provides more detailed product information, enabling them to make
informed choices
 Customers can compare prices and buy cheaper options
 Reviews and feedback left by actual users of the product helps visitors
make the right choice
 It saves time and effort as customers don’t have to commute through
traffic and can purchase from the comfort of their homes

Disadvantages of E-commerce
Like everything else, e-commerce is not a bed of roses. Let us see what the
limitations of e-commerce are:

LACK OF PERSONAL TOUCH

Many consumers still prefer the personal touch that they receive when they visit
an actual store Man and interact with salespeople. This is especially important
for stores like boutiques and those that sell couture or high-end products.
Customers want to be pampered and feel valued, not just buy the product.

No Tactile Experience

This is a major drawback and something that certainly crops up when we talk
about online shopping advantages and disadvantages. Regardless of how well a
demo video is made, when purchasing online, customers cannot touch and feel
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products. This is especially important when it comes to clothes and footwear;
being able to smell the fragrance is important when it comes to purchasing
perfumes. Unfortunately, this experience is impossible when shopping online.
Many people hesitate to buy online because they are unsure of the product
quality because they are unable to actually see and touch it.

Comparison

When customers shop online, they can easily compare several products, check
out the features, and select the ones with the best features or the lowest price.
This can lead to a price race, with businesses cutting prices to boost sales, and
this can impact their bottom line. This is one of the biggest disadvantages of e-
commerce for businesses.

Internet Access

But of course! Without access to decent internet services, your customers will
be unable to make purchases. Many e-commerce sites have numerous features
that necessitate high-speed internet access in order to provide a great experience
to customers. This means those with poor connectivity can be excluded. This
often means people living in remote areas and villages that have less
development cannot shop online.

Credit Card Fraud

Unfortunately, this is a problem that more and more online sellers are facing,
resulting in revenue loss, penalties, and even loss of reputation. Certain types of
businesses are at a higher risk than others; in such a case, you’ll need to decide
if e-commerce is the right model for you.

IT Security and Privacy Issues

Malicious organisations and individuals pose a threat to businesses in the form

of cyber attacks with ransomware, phishing, and data theft from databases.
Identify theft, fraud, and such incidents are on the rise globally. This can have
legal and financial ramifications for the business and damage their reputation
among consumers. Businesses must implement stringent security protocols to
protect critical information from being stolen and misused.

Website Issues

Online business is almost entirely dependent on its website. Even if the site is
down for just a few minutes, it can lead to unhappy customers, lost sales, and
huge issues for the business. System failure, human errors in data entry, and

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network outages can all lead to downtime, which can cause damage in the long
run.

Complex Taxation, Regulations, and Compliance

It is essential to comply with local, national, and international regulations when

you are selling to customers in different regions and nations. This means
keeping track of and adhering to complex compliance requirements with regard
to financial accounting and taxation. You may require permits or licences in
certain countries or regions.

Intense Online Competition

There are thousands of online stores, all vying for customer attention. It can be
difficult to get noticed in the crowd. You have to get your act together and do
something to stand out.

Shipping Times

Delivery times are often dicey with online shopping, and they can get delayed.
Shipping is mostly outsourced to third parties, with the seller not having much
control. Many people are reluctant to shop online as it takes too long for their
purchase to be delivered. It is vital, therefore, that you are upfront about your
delivery time, shipping methods, and even return policies with customers.

Other limitations include:

 There is no universal standard for quality or reliability

 Compatibility problems
 Public keys used by e-commerce are not very secure

To Sum Up

Now we have seen what e-commerce is and what the advantages and
disadvantages of e-commerce are. Despite its drawbacks, there is no doubt that
this model of business is here to stay and will be around for a long time to
come. With the world still not completely free from the deadly grip of COVID-
19, many people are still not comfortable being in crowded stores to make their
purchases.

If you have not yet got your e-commerce site up and running, get in touch with
us now. Just tell us your requirements, and we will be happy to recommend the
ideal platform and give you a quote.

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2. THE PUBLIC IS HIGHLY CONCERNED WITH THE
SAFETY OF E- PAYMENTS . WHAT ARE THE SPECIFIC
MEASURES PUT FORWARD IN THE GUIDENCE IN
THIS RESPECT ? EXPLAIN IN DETAIL .
From credit cards to mobile wallets to everything in between, digital payments
are a convenient (and increasingly popular) option for many consumers.
However, digital payments also carry the risk of data breaches and other
security risks, meaning consumers must take extra precautions to protect
themselves.

We asked the members of Forbes Technology Council to share their best advice
for consumers looking to stay safe while using digital payment methods. Below,
they share 14 security measures you should take.

1. Regularly check your financial statements.

A lot of consumers fail at the most basic security measure for digital payments,
which is to check your statements. If you do this regularly, you’ll spot any
inconsistencies. If you don’t recognize a charge, immediately question and/or
dispute it. Of course, this is a basic practice, but if you don’t do it, many other
practices become pointless. - Russell Smith, Rainforest QA, Inc.
PROMOTED

2. Turn on two-factor authentication.

With hacking attacks on the rise, consumers should turn on SMS-based two-
factor authentication to protect account takeovers that can lead to payment
fraud. Even if a user’s original password is leaked or stolen, only the user
receives the one-time password code via SMS that’s needed to log in to a digital
payment app or site. This measure protects accounts from unauthorized access.
- Andrea Giacomini, Mitto

3. Verify your payment recipient.

One simple but crucial operational security measure that everyone needs to
practice with digital payments is recipient verification. Many digital payment
systems lack the checks and balances we’re used to with more traditional
payments. If you send money to the wrong address/person it can be lost forever.
Try having the recipient send you a request for payment to ensure this doesn’t
happen to you. - Chris Grundemann, Myriad360

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4. Have a dedicated payment method for online transactions.

The best security measure is to keep a tab on what transactions you have
conducted. To do this easily, use only one credit card or payment method for all
online transactions, and do not use that card or payment method for anything
else. Make sure you have fraud insurance on that card and check your
statements against the online shopping you have done. You can then find
irregularities easily. - Afshin Doust, Advanced Intelligent Systems Inc.

5. Use biometric authentication when possible.

Ensure a secure authentication method is chosen. If the authentication method is

based solely on convenience, then it’s likely convenient to thieves too (e.g., not
requiring a pin for credit card transactions). Use a biometric when possible, as
this authentication method requires something unique to each person and
reduces the chances of stolen credit cards or phones being useful to thieves.
- Jay Marshall, Eyelock LLC

6. Double-check QR codes.

Before scanning a QR code—especially one on printed material in a public

place—make sure it hasn’t been pasted over with a different (and potentially
malicious) code. Hackers can easily replace a legitimate QR code used for
payment (at a point of sale, ATM, parking meter, etc.) with a malicious QR
code that will expose your banking or financial account information when
scanned. - Simon Biddiscombe, MobileIron

7. Take advantage of one-time passwords.

As I am traveling to India right now, I understand the value of one-time

passwords. It was annoying earlier but it is a security factor we all need to
adhere to. Our security matters when one-two-three-step authentication is
implemented. We need to live with it for our security. - Bhavna Juneja, Infinity,
a Stamford Technology Company

8. Be cautious with linked checking accounts.

Consumers are generally well-protected from fraud liability when using linked
credit card accounts, but the same is not always true of linked checking
accounts. When using checking account-linked services, consumers can protect
themselves from losses by linking to a secondary account that maintains a lower

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balance. Then, just transfer to and from a core account to consolidate funds.
- Ron Cogburn, Exela Technologies

9. Ensure your vendor is PCI DSS-compliant.

Make sure that your vendor is PCI DSS-compliant—and the higher the level of
their certification, the better. With security standards developing, it is important
that the vendor of your choosing follows all the trends and not only gets but
maintains cybersecurity certificates year after year. The bottom line for
consumers is to always check what security measures your vendor is taking
before paying. - Daria Leshchenko, SupportYourApp Inc.

10. Don’t reuse passwords.

New breaches happen a lot, and stolen credentials often show up in

underground markets. Once a criminal acquires stolen data, they could
potentially access any other accounts protected by the same username and
password. Stop reusing passwords and monitor your credentials for exposure
with one of the free tools that will check them against a continuously updated
collection of breached data. - David Endler, SpyCloud

11. Only use apps you trust.

As digital payments become mainstream, it is important to use trusted apps. In

addition, consider enabling transaction notifications and security features. I
would even go a step further and enable notifications for any cards associated
with the app so you can cross-reference transactions. There are instances where
folks opt for convenience rather than security and end up paying a steep price.
- Abishek Surana Rajendra, Course Hero

12. Never use a debit card.

You should always use a credit card for any transaction so that you are not
exposing your bank details directly to any point of sale. Credit card companies
insure your money; hence, if you have a problem, you can get your money back
with ease. If you get a fraudulent charge on your debit card, it can take up to 60
days to get your money back from your bank. - Giuliano Senese, DX Medical
Solutions B.V.

13. Submit minimal personal information.

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Submit only the absolute minimum of personal information. If overly invasive
and unnecessary details are being asked for, think twice. The financial risk is
generally covered by banks or other financial institutions, but identity theft
protection is left up to the individual. - Vaclav Vincalek, Future Infinitive

14. Look for SSL encryption.

One simple security measure every consumer can take while using a payment
method online is to check if the payment page is https-based (i.e., it uses SSL to
encrypt the transaction). This can be instantly done by checking the beginning
of the URL or Web address of the payment page, which should show “https://”
or a lock icon. - Ahmad (Al) Fares, Celitech Inc.

3. DISCUSS THE SECURITY REQUIREMENTS OF

INTERNET AND E-COMMERCE APPLICATIONS AND
HOW THESE REQUIREMENTS ARE FULFILLED BY
VARIOUS HARDWARE AND SOFTWARE SYSTEM .
EXPLAIN
Dimensions of e-commerce security refer to the different categories of
ecommerce security that businesses need to consider to protect their
website & customer information and ensure customer trust.

Look at the different dimensions of security.

12 Dimensions of Ecommerce Security

1. Integrity

We all have one common question, whether we have received the same
data from the sender. Now it is the duty of integrity for the correctness of
the information transmitted, received, or displayed on a website over the
internet.

Integrity can ensure that information on the internet has not been
altered in any way by an unauthorized party. It maintains the consistency,
accuracy, and trustworthiness of the information over its entire life cycle.

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Customer perspective on integrity: Is the information I have transmitted
or received altered?

Merchant perspective on integrity:Is the information present on the

website altered without authorization? Is the information received from the
customer valid or not?

Example: The most common threat will be - Would any unauthorized

person intercepts and redirects payment into a different account?; as
ecommerce sites prefer online transfer mostly.

Let us consider a subscription model, where you will give credit card
details for a bill payment to the merchant. If someone added extra cost to
your credit card bill without both your or the merchant’s knowledge, then
you need to pay extra money for something you haven't purchased.

2. Non-repudiation

Good business depends on both buyers and sellers. They must not deny
any facts or rules once they accept that there should not be any
repudiation.

Non-repudiation ensures that the sender of a message cannot deny having

sent the message and that the receiver cannot deny having received the
message.

In other words, it is an assurance that anyone cannot deny the validity of a

transaction.

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Most times, non-repudiation uses a digital signature for online transactions
because no one can deny the authenticity of their signature on a document.

Customer perspective: Can a party take action on me if I have denied the

action?

Merchant perspective: A customer can deny a product after ordering it.

Example: When a merchant does not have enough proof of customers who
have ordered with them during a credit card payment transaction, the
merchant cannot proceed further.

Sometimes customers claim that they haven't ordered the product from a
particular merchant if they disliked the product later.

3. Authenticity

In ecommerce, since both the customer and seller need to trust each other,
they must remain who they are in real life. Both the seller and buye r must
provide proof of their original identity so that the ecommerce
transaction can happen securely between them.

Every ecommerce site uses authenticity as a tool to ensure the identity of

the person over the internet. In ecommerce, fraudulent identity, and
authentication are also possible, which makes identity a difficult process.

Some common ways to ensure a person's identity are for customers to log
in using a password.

Customer perspective: Who am I dealing with? Who can I assure the

person I am dealing with is who they claim to be?

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Merchant perspective: Is the customer that I am communicating with a
real person? If not, what could be their identity?

Example: Some users can use a fake email address to access any of the
ecommerce services.

4. Confidentiality

Confidentiality refers to protecting information from being accessed by an

unauthorized person on the internet. In other words, only the people who
are authorized can gain access to view or modify or use the sensitive data
of any customer or merchant.

According to Juniper Research, nearly 146 billion records will be

exposed by criminal data breaches between 2018 and 2023.

One confidentiality breach will be sniffing. It's a program that steals all the
important files of the company, individual identity or email messages,
or personal reports of the internet user.

Customer perspective: Can someone other than the intended recipient or

a person read my message?

Merchant perspective: Has any unauthorized person accessed the

information on my site without my knowledge?

Example: Ecommerce uses a username and password to log in to their

account. Let’s consider this case for resetting the password, where an
ecommerce site sends a one-time password to their customer via email or
phone number if someone else reads it.

5. Privacy
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Where confidentiality is a concern about the information present during
communication, privacy concerns personal details. In general, privacy is
used to control the usage of information by the customers that they have
given to the merchant.

Canva faced data breaches in 2019 that included the attack on users'
information like name, email address, and more. for 139 million users.

Privacy is a major threat to any online transaction or internet user

since personal information has been revealed and there is no way back
to disclose it.

Customer perspective: Can I control the usage of information about

myself that I have transmitted to the ecommerce site?

Merchant perspective: What if anyone else uses personal data collected

as part of the ecommerce transaction? Is there any unauthorized person to
access a customer’s personal data?

Example: If a hacker breaks into the ecommerce site, they can gain access
to the customer's credit card details or any other customer information.
This also violates information confidentiality and personal privacy.

6. Availability

Continuous data availability is the key to providing a better customer

experience in ecommerce. It increases online visibility, search engine
rankings, and site traffic.

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Data present on the website must be secure and available 24x7x 365 for
the customer without downtime. Otherwise, gaining a competitive edge in
the digital market will be difficult.

Customer perspective: Can I access the site at any time from anywhere?

Merchant perspective: Whether my site is operating without any

downtime?

Example: An ecommerce website can be flooded with useless traffic that

causes it to shut down your site, making it impossible for the user to
access the site.

7. Risk Management

In ecommerce, the risk ever associates with the transaction.

Risk management involves identifying potential vulnerabilities and

implementing measures to ensure a safe and trustworthy transaction
between seller and buyer.

Fraudulent transactions are one common risks where someone uses fake
credentials to shop for an item. By using fraud detection features,
merchants can identify fraud threats and avoid the risk.

Customer perspective: Is my personal information and payment data

protected from potential security breaches?

Merchant perspective: Am I identifying potential threats and

implementing measures to eliminate risks?

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Example: Two-factor authentication is one of the best ways to reduce the
risk of unauthorized access.

For this step, users should provide a second login authentication by

confirming OTP sent to their email or mobile number other than a
password.

8. Application Security

Security should be the main factor when designing ecommerce apps or

websites as they handle personal data and payment details. App security
involves the practice of protecting ecommerce platforms and users from
data breaches that arise due to ecommerce apps.

Developers should take responsibility for secure coding practices,

vulnerability scanning, and penetration testing to identify and eliminate
security risks.

Customer perspective: Is my personal and payment data protected from

application-based threats like malware or hacking?

Merchant perspective: Are our applications and software used in

ecommerce operations protected from security threats?

Example: An ecommerce platform may conduct regular penetration testing

to identify and eliminate potential security risks in its applications and
software. It helps to know that the platform remains secure and protects
user data from potential threats.

9. Physical Security

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As an overlooked aspect of ecommerce security, Physical security
involves securing the physical infrastructure of ecommerce
operations, such as servers, data centers, and other facilities.

Ensuring the physical security of data centers and servers hosting

ecommerce websites is crucial.

Physical security measures include access controls, surveillance

cameras, and backup power supplies, to ensure that the data center
remains secure and operational at all times.

Customer perspective: Is my personal and payment data protected

from physical theft or damage?

Merchant perspective: Are our servers and other physical

infrastructure protected from theft, damage, or other physical threats?

Example: An ecommerce platform may use a secure data center that

requires biometric authentication and 24/7 surveillance to protect the
physical infrastructure that supports the platform.

10. Network Security

The network is a vital component of ecommerce security. With network

security, an ecommerce website is protected from vulnerabilities caused
due to network traffic.

For securing personal data and payment details, websites should

have strong and secured network security protocols such as firewalls,
encryption, and intrusion detection systems. It prevents sensitive
information from unauthorized access.

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Customer perspective: Is my personal and payment data protected from
unauthorized access during transmission over the network?

Merchant perspective: Is our network protected from unauthorized access

or other network-based threats?

Example: An ecommerce platform may use encryption to protect user data

during transmission over the network.

11. Compliance

As like in real life, ecommerce transactions have to follow certain rules

and regulations to ensure the privacy of both sellers and buyers.

Compliance involves adhering to legal requirements related to data

privacy. It ensures that the ecommerce platform operates within the
regulations and protects customer information.

Customer perspective: Is my personal information protected and used

according to data privacy laws?

Merchant perspective: Are we complying with legal and regulatory

requirements related to ecommerce operations? Are we protecting
customer data and privacy?

Example: An ecommerce platform that operates in Europe must comply

with the General Data Protection Regulation (GDPR) and other data
privacy laws.

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This means that the platform must obtain user consent before collecting
and processing personal data, provide users with access to their data, and
ensure that the data is stored securely .

12. Authorization

With authorization, a website can ensure that only author ized persons can
access sensitive information like the payment process.

It is about granting access to specific resources based on user identity.

As with other businesses, authorization is critical to identify user identity

in ecommerce business transactions.

Customer perspective: Am I authorized to access the information or

perform the action I am trying to do on the website?

Merchant perspective: Are users who access our website authorized to do

so? Are they allowed to perform particular actions on our we bsite?

Example: Suppose a customer tries to purchase using a credit card that is

not theirs. The authorization process should detect that the customer is not
the card owner and deny them access to the payment gateway.

It prevents fraudulent purchases and protects the customer and the

merchant from financial losses.

4. WHAT IS EDI ? IS IT ESSENTIAL FOR GROWING

BUSINESS ? HOW IT IS LINKED TO E- COMMERCE ?
EXPLAIN .
Electronic Data Interchange (EDI) is the computer-to-computer exchange of
business documents in a standard electronic format between business partners.

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By moving from a paper-based exchange of business document to one that is
electronic, businesses enjoy major benefits such as reduced cost, increased
processing speed, reduced errors and improved relationships with business
partners.

Computer-to-Computer
Computer-to-computer EDI replaces postal mail, fax and email. While email is
also an electronic approach, the documents exchanged via email must still be
handled by people rather than computers. Having people involved slows down
the processing of the documents and also introduces errors. Instead, EDI
documents can flow straight through to the appropriate application on the
receiver’s computer (e.g., the Order Management System) and processing can
begin immediately. A typical manual process looks like this, with lots of paper
and people involvement:

The EDI process looks like this — no paper, no people involved:

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Business documents
These are any of the documents that are typically exchanged between
businesses. The most common documents exchanged via EDI are purchase
orders, invoices and advance ship notices. But there are many, many others such
as bill of lading, customs documents, inventory documents, shipping status
documents and payment documents

Standard format

Because EDI documents must be processed by computers rather than humans, a

standard format must be used so that the computer will be able to read and
understand the documents. A standard format describes what each piece of
information is and in what format (e.g., integer, decimal, mmddyy). Without a
standard format, each company would send documents using its company-
specific format and, much as an English-speaking person probably doesn’t
understand Japanese, the receiver’s computer system doesn’t understand the
company-specific format of the sender’s format.

 There are several EDI standards in use today,

including ANSI, EDIFACT, TRADACOMS and ebXML. And,
for each standard there are many different versions, e.g., ANSI
5010 or EDIFACT version D12, Release A. When two businesses
decide to exchange EDI documents, they must agree on the specific
EDI standard and version.
 Businesses typically use an EDI translator – either as in-house
software or via an EDI service provider to translate the EDI format
so the data can be used by their internal applications and thus
enable straight through processing of documents.
Business partners
The exchange of EDI documents is typically between two different companies,
referred to as business partners or trading partners. For example, Company A
may buy goods from Company B. Company A sends orders to Company B.
Company A and Company B are business partners.

EDI integration software and solutions will not only help enterprises extend
their data management capabilities, but will deliver business benefits as well.

 Cost Savings: EDI integration, when implemented correctly, reduces

overhead and administrative costs for businesses of all sizes. EDI alone

23
 will reduce costs associated with paper, printing, storage, filing, postage,
and document management. When a cloud-based system is integrated
with a CRM, analytics tool, or other efficiency software, it can
significantly reduce administrative, resource, and maintenance costs.
 Faster Commerce. Integrated EDI helps your supply chain become more
efficient and productive by connecting order data directly to the
accounting or ERP system. This means less time spent on tedious manual
tasks, such as calculating invoices manually which can lead to errors that
cause problems in other areas of the company.
 Increase Accuracy. API-led connectivity allows for communication
between all disparate technologies and makes them work together as an
application network, reducing errors and improving the fulfillment
process with vendors.
 Data Enrichment. With data, accuracy comes data enrichment for the
CRM. Your CRM will be up-to-date at all times, including all relevant
information about recent changes in your existing customer's business.
With real-time data enrichment and tracking of the same, your customer
success team can identify customers in need of assistance or follow-up,
repeat orders, or make suggestions based on order data.
 Improve Productivity. Team members will no longer need to create
receipts for stock, track down invoices, track supplier performance, and
they can spend time on other tasks.
Electronic Data Interchange (EDI) plays a crucial role in standardizing and
automating the exchange of business documents between trading partners in the
e-commerce industry. By using standardized EDI formats and automated
systems, eCommerce businesses can improve the speed, accuracy, and cost-
effectiveness of their transaction processing. EDI streamlines the processing of
orders, invoices, and shipping notices, enabling businesses to provide better
customer service and enhance customer satisfaction.

Here is an example of a real-time scenario of how an EDI system helps

communication between an eCommerce company, its customer, and its trading
partner.

Let’s say that an e-commerce company named ABC sells a variety of products,
including computer hardware and software, and has a trading partner named
XYZ, which supplies the hardware products. ABC’s customer, Mark, wants to
buy a computer from ABC’s website. Here’s how the EDI system can facilitate
communication between all parties involved:

1. Mark visits ABC’s website and places an order for a computer.

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 2. ABC’s e-commerce platform generates a purchase order in EDI format,
which includes all the details of the order, such as the product description,
quantity, price, and delivery date.
3. The purchase order is automatically sent to XYZ’s EDI system, which
processes the order and generates an electronic invoice in EDI format.
4. The invoice is automatically sent to ABC’s EDI system, which processes
the invoice and generates an automated payment.
5. The payment is automatically sent to XYZ’s EDI system, which
processes the payment and ships the product.
6. Once the product is shipped, XYZ’s EDI system generates a shipping
notice in EDI format, which includes the tracking number and estimated
delivery date.
7. The shipping notice is automatically sent to ABC’s EDI system, which
processes the notice and sends a notification to Mark, including the
tracking number and estimated delivery date.

By using an EDI system, the entire process of ordering, invoicing, payment, and
shipping can be streamlined and automated, reducing the need for manual
intervention and human error. This, in turn, can improve the speed and accuracy
of communication between all parties involved, ultimately enhancing customer
satisfaction and loyalty.
Benefits of using EDI in eCommerce
EDI is a vital technology for businesses in eCommerce. It helps increase
business efficiency, improve accuracy, enhance customer service, save
thousands of dollars, and provide a competitive advantage.

EDI in eCommerce facilitates business document exchange such as purchase

orders, invoices, and shipping notices between trading partners and customers in
a standardized format. EDI in eCommerce makes communication easier with
suppliers, distributors, and customers. For example, a retailer may use EDI to
receive purchase orders from their suppliers, send shipping notices to their
logistics providers, and receive invoices from their vendors. EDI allows these
transactions to be processed quickly and accurately, without the need for
manual data entry or paper-based documents.
1. Increased Efficiency

EDI eliminates the need for paper-based documents, manual data entry, and
human intervention, streamlining transaction processing and improving
operational efficiency

25
2. Improved Accuracy

EDI reduces the risk of errors that can occur with manual data entry, providing
businesses with more accurate and reliable information
3. Enhanced Customer Service

By enabling faster and more accurate processing of orders, invoices, and

shipping notices, EDI can help businesses provide better customer service and
improve customer satisfaction.
4. Cost Savings

EDI reduces printing, storage, and labor costs, while also minimizing the risk of
costly errors.
5. Competitive Advantage

Businesses that use EDI are better positioned to compete in e-commerce

markets by operating more efficiently, responding more quickly to customer
demands, and reducing costs

5. EXPLAIN IN DETAILS THE APPLICATIONS OF E-

COMMERCE IN THE BELOW MENTIONED SECTORS ?
ALSO MENTION THE REAL TIME EXAMPLES OF HOW
ECOMMERCE TRANSFORMED THE COMMERCE IN
EACH SECTOR .
A. MANUFACTURING
B. WHOLESALE
C. RETAIL
D. SERVICE
A. ROLE OF E-COMMERCE IN MANUFACTURING
SECTOR -
With the continual progression of digitization, the once distinct worlds of e-
commerce and manufacturing have begun to intertwine, creating a new business
landscape rich with opportunities and challenges. It's a fresh start, where
conventional manufacturing ways give way to the inventive realm of global
online commerce.

26
Unlocking Global Markets: Opportunities and Challenges

Against the backdrop of globalization, e-commerce presents manufacturers with

a robust platform to shrug off geographical boundaries and venture into
international markets. This aspect of e-commerce becomes increasingly
beneficial for small and medium-sized enterprises previously confined due to
limited access to world markets. The virtual marketplace lets them showcase
their products to a wider audience, significantly expanding their customer base.
However, this global reach does not necessarily equate to instant success. To
truly prosper beyond their domestic markets, manufacturers must navigate
various regions' cultural diversity and unique customer preferences. Deep
investments in market research and consumer analysis are crucial to grasp the
idiosyncrasies that define each market. Equipped with a culturally tuned
understanding, manufacturers can customize their offerings and advertising
strategies to resonate with global consumers.
For manufacturers, e-commerce isn't just restricted to connecting buyers and
sellers; it comes bundled with logistics responsibilities. Shipping costs, customs
tariffs, and local regulations can all significantly affect the price and viability of
the products offered in a specific market. Hence, factoring in these additional
logistics and regulatory considerations is instrumental for manufacturers when
venturing into e-commerce. [1]

Navigating the E-Commerce Space: The Direct-to-Consumer

(DTC) Framework and Logistical Complications

The direct-to-consumer (DTC) model, facilitated by e-commerce platforms,

enables manufacturers to eliminate middlemen, resulting in higher profit
margins. Moreover, they have better control over brand representation,
customer interaction, and pricing strategies.
On the flip side, the DTC model pushes manufacturers into a new role—taking
up responsibilities typically performed by retailers, such as marketing, customer
support, and logistics operations. Therefore, to leverage the benefits of DTC to
their advantage, manufacturers need to ensure they have the necessary skills and
resources to manage these functions efficiently.
Logistical complexities pose considerable challenges for manufacturers in the e-
commerce domain. Efficient product manufacturing is no longer enough; brands
must ensure quick and competent delivery. Manufacturers must up their game
and excel in logistics management, including stock control, dispatch
capabilities, and warehouse management, to meet growing customer
expectations. They need to develop an effective strategy to handle returns more
frequently in e-commerce than in traditional retail sales. [2]

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Smart Pricing in the E-commerce Landscape

Striking the right balance in e-commerce pricing is no simple task—

manufacturers must consider factors such as production costs, delivery charges,
taxes, and competition. The e-commerce environment is also characterized by
constant fluctuations in pricing, driven by frequent discounts and special deals.
Hence, keeping a close eye on competitor pricing strategies and adapting to
market changes cannot be overstated.

Equipping for the Future: Embracing New Tech

Future trends indicate a deepening convergence of manufacturing and e-

commerce fueled by technological advancements, specifically AI and machine
learning. These technologies promise to revolutionize how manufacturers
approach their operations. AI and machine learning can help predict customer
behavior and refine marketing strategies, while blockchain can enhance
transaction transparency.
However, a newer challenge in integrating these technologies can emerge from
issues concerning data security, regulatory compliance, and the need for digital
literacy. Investing in cybersecurity measures, adherence to data security laws,
and upgrading workforce skills is paramount to handling these challenges
efficiently.

Successful Integration: Companies Leading the Way

Warby Parker, Leesa, and Dollar Shave Club are noteworthy examples of
businesses successfully integrating e-commerce into their models. Companies
like these have carved out their unique space in highly competitive markets.
Their success stories give other manufacturers an insight into how e-commerce
can revolutionize the traditional approach to conducting business, with the
potential to reach more consumers, offer improved products, and disrupt
familiar markets.
Warby Parker, for instance, has disrupted the eyewear industry by offering
stylish and affordable glasses online. They've managed to cut out the
middleman and pass the savings onto the customers while maintaining high
quality and customer service. Their innovative home try-on program has helped
overcome one of the biggest challenges of selling eyewear online.
On the other hand, Leesa has revolutionized the mattress industry by selling
directly to consumers online. They've simplified the buying process, offering
one high-quality mattress type in different sizes. With a generous trial period

28
and free returns, they've given customers the confidence to buy a mattress
online, sight unseen.
Dollar Shave Club has taken a product as simple as a razor and turned it into a
subscription service sensation. By delivering high-quality razors directly to
customers' doors, they've offered a level of convenience that traditional retailers
can't match. Their success has sparked a wave of subscription services in
various industries.

The Road Ahead: Conclusion

The synergistic overlap of manufacturing and e-commerce brings exciting

opportunities and distinctive challenges. With a firm handle on these,
manufacturers can make strategic decisions and create robust plans to
incorporate e-commerce into their business models.
While plenty of opportunities exist, a cautious understanding of the trials
presents a more realistic picture of the dynamic e-commerce realm. The need of
the hour is to develop strategic narratives that chart the way forward, learn from
successful case studies, leverage technology, and adapt to an ever-evolving
market.
As we move forward, it's clear that integrating e-commerce in manufacturing is
not just a trend but a fundamental shift in how business is conducted.
Manufacturers must be willing to embrace this change, adapt their strategies,
and continually innovate to stay competitive. This prospective fusion of
manufacturing and e-commerce presents a vivid and promising future where
those able to invent, adapt, and innovate might redefine the industry's trajectory.
The digital age, enriched with e-commerce, promises to transform the
manufacturing landscape at an unprecedented scale and pace.
In conclusion, the journey of a manufacturer in the realm of e-commerce is not
simple. It requires a clear vision, a willingness to adapt, and the courage to
innovate. But for those who are willing to leap, the rewards can be immense.
The future of manufacturing lies in the successful integration of e-commerce,
and those who can navigate this path successfully will lead the way in the
industry.

B. ROLE OF E- COMMERCE IN WHOLESALE SECTOR - Let’s

get straight to the point… the reality is that being online is a must for businesses of all sizes
and all kinds. As a retailer, for example, it’s critical for merchants to gain online visibility to
help drive ecommerce sales, consumer attention and brand awareness. Yet retailers alone do
not benefit from these advantages. Wholesalers, as well, have tremendous potential when
positioning themselves online and in particular, when doing so with ecommerce goals.

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In other words, for wholesalers to remain competitive, they need to be prepared
to offer their clients the same level of customer service that we’ve come to
expect from retailers. To do this, you need to create an ecommerce presence to
complement the other channels you use to promote your business, such as
participating in tradeshows and using social media.

To help, explore five ways below on how adding ecommerce can help
accelerate your wholesale business.

#1: Consistent Buyer Interaction

The reality is that many wholesalers drop the ball on buyer relations between
tradeshows – hence, missing out on opportunities to connect with their retailers.
While many incorporate email marketing into their sales strategies to help stay
in touch, this is not a consistent or effective enough way to enhance buyer
interaction. Ecommerce, however, allows wholesalers to offer a 24|7 online
catalog that can keep buyers engaged and interested in products between shows
while helping to build hype for new products, as well. An added perk? This can
also help increase orders – something any wholesaler can appreciate.

#2: Create Room for Mobile Browsing

Retailers are beginning to expect wholesalers to provide them with the

convenience and consistency of an ecommerce operation. Interestingly, 3 in
5 consumers purchase on their smartphones and these same habits are often
enjoyed by retailers in their own inventory purchasing, as well. Buyers are often
constantly on the move, which means they need remote access to wholesale
product catalogs between shows to facilitate browsing and re-orders. By giving
buyers mobile access to your online catalog, you can easily accommodate the
preferences of retailers while giving your wholesale business a competitive
edge.

#3: Direct-to-Consumer Potential

Many wholesalers are deciding to skip the middleman and go direct-to-

consumer with online sales. In doing this, wholesalers create an online
component that gives them the option to easily add a direct-to-consumer option
to their wholesale operations. And yet, even if you do not want to sell to
consumers directly, you help strengthen your brand visibility. Thus, creating an
ecommerce element will give a wider pool of potential buyers the opportunity to
see your products. To further support this notion, The Balance reports that “it’s

30
obvious that customers no longer buy just what’s available; they are willing to
seek out very specific items to meet their needs and interests.” Keeping this in
mind, make sure your products are among those that are seen.

#4: Eliminate Unnecessary Costs

Want to save some overhead in you company expenses? Consider how a

physical showroom or warehouse can be reduced in size or eliminated
completely by incorporating a strong ecommerce business. With the
right website design, you can provide interactive experiences for buyers to
explore your inventory and identify what makes sense for their stores. Also,
consider how creating marketing videos for your products and enabling reviews
to help future online clients feel comfortable writing an order for your
ecommerce merchandise can add value to your online business.

#5: Increase Promotional Opportunities

Do you share images of your products with buyers on social media? If not, is
the reason because you don’t have the right product images to share, or that you
don’t have the images uploaded to your computer? This problem is easily
remedied with an ecommerce wholesale operation. With ecommerce, you can
simply download and stream any image you want to social media from your
online catalog, making it easier to manage social media and to create email
blasts. This provides ease and efficiency in your business operations – thus,
reinforcing why creating an ecommerce business simplifies product promotion.
The best part? It also frees up your time to focus on more important things…
such as building relationships with buyers and tending to your customer care.

Final Thoughts
It is a digital world and buyers are coming to expect the same considerations
from wholesalers that they would give to their retail customers. By creating an
ecommerce presence, you can attract buyers and give your business a leg up on
the competition between tradeshows — leveraging the opportunity to maximize
profitability and keep your wholesale business thriving all year long.

C. ROLE OF E-COMMERCE IN RETAIL SECTOR - The biggest

benefits of eCommerce in retail

1. 24/7 access

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The internet never closes. Your customers don’t have to be limited by the hours
that your retail location is open. Ecommerce in retail allows businesses better
flexibility of being able to offer products and services to their customers on the
schedule that works best for them.

2. Increased revenue
Your e-commerce presence serves as an additional storefront, giving you
increased opportunity for revenue and sales. Online stores also offer your
organization the chance to offer web-only products and exclusive deals that
customers can’t get in stores. That means that even customers who do visit your
physical location will be incentivized to shop online as well, giving you a
greater opportunity for sales and revenue growth.

3. Greater brand awareness

The internet landscape can give your brand greater visibility. In some cases, e-
commerce only businesses, including Amazon, have grown so substantially that
they found it brand-smart to create physical locations to highlight the best of
their products and features. The eCommerce experience gives your brand a ton
of potential real estate – people are much more likely to find you on an online
search or through another eCommerce vendor than randomly driving by your
space.

4. Expanded market
ECommerce in retail gives businesses access to just about the whole global
market – even small businesses, like Etsy shops, have the ability to send their
products worldwide. Location doesn’t have to limit your business with
eCommerce in retail.

5. Personalization
ECommerce sites like Amazon give recommendations to customers based on
their previous purchases and search history. This creates a customer experience
that’s more personalized to their likes, dislikes, and other habits, making it less
generic experience than many people have in stores.

6. Convenience and flexibility

One of the biggest benefits of e-commerce in retail is an experience that centers
around the customer. Maybe times, retail locations are limited by their space for
fixtures or inventory. An eCommerce experience allows for brands to offer their

32
customers the ability to shop at their leisure, in the comfort of their own home
or office. This means that people who are unable to travel, who have varying
schedules, or who simply want to more time to peruse their options can take
their time and enjoy the convenience of a digital experience. It also offers better
flexibility in terms of payment – online retailers, for instance, have the ability to
offer payment through PayPal and other finance options.

7. Easily scalable
If you have a physical retail location, you are limited to the confines of that
space for as long as your lease term. If you experience a lot of growth, parts of
your business may suffer because of these limitations. ECommerce in retail
allows businesses to grow without fear of outgrowing a space and it allows
businesses to scale as needed.

8. Decreased costs
If you’re online-only retailer, you don’t have to contend with the costs of
physical space, staff, and more. While there is still the likely cost of
warehousing and shipping product, most businesses find that they save
significantly when they use the mode of eCommerce in retail. Brands also find
that advertising for their online presence is cheaper than traditional methods that
physical retail has used, such as direct mail, billboards, magazine ads, and more.

Ecommerce has long been a driver of business, sales, and revenue. It’s become
such a central part to the customer experience that retail businesses that might
not otherwise exist, such as niche organizations, can thrive. Start-ups, creators,
and other entrepreneurs can more easily start and run a business successfully
due to eCommerce.

D. ROLE OF E-COMMERCE IN SERVICE SECTOR - E-

commerce is not only a way of selling products online, but also a source of
innovation and transformation for service operations. Service operations are the
activities that deliver value to customers through intangible processes, such as
consulting, education, health care, entertainment, and hospitality. E-commerce
enables service providers to reach new markets, create new service models,
enhance customer experience, and optimize operational efficiency. In this
article, we will explore some of the ways e-commerce is changing the service
operations industry and what challenges and opportunities it brings.

33
1 New markets and segments
One of the main benefits of e-commerce for service operations is that it
expands the potential customer base and allows service providers to target
different segments and niches. For example, online education platforms
can offer courses to learners from different countries, backgrounds, and
levels of expertise. Online health care platforms can provide telemedicine
services to patients who live in remote areas or have limited access to
health facilities. Online entertainment platforms can offer personalized and
interactive content to viewers who have diverse preferences and tastes. E-
commerce also enables service providers to leverage data and analytics to
segment and customize their offerings based on customer behavior,
feedback, and preferences.,Boosting profitability often hinges not just on
escalating revenue, but also on reducing operational expenses. The
prevalence of manual tasks in order management and fulfilment results in
elevated costs, error susceptibility, and lapses in customer communication.
By fully automating numerous tasks and deploying sturdy human-to-
machine APIs, both sellers and customers can reap the rewards of a
swifter, more transparent, and error-resistant fulfilment process.
This is one of the amazing outcomes of e-commerce, creating new markets
and segments. In fact this comes with an expansion into other market
dynamics because e-commerce enables producers and manufacturers as
well as suppliers to extend their base into other territories in the global
space. Meaning that businesses can further diversify the segments
depending on the geographical location and surrounding customs. E-
commerce has made it possible for the world to become regionally
integrated on many levels.

2 New service models and delivery modes

Another way e-commerce is changing the service operations industry is that it

enables service providers to design and deliver new service models and modes
that are more convenient, flexible, and cost-effective for customers. For
example, online consulting platforms can offer on-demand, project-based, or
subscription-based services to clients who need specific expertise or solutions.
Online education platforms can offer self-paced, blended, or live online courses
to learners who have different learning styles and schedules. Online health care
platforms can offer preventive, diagnostic, or therapeutic services to patients
who have different health conditions and needs. Online entertainment platforms
can offer streaming, downloading, or interactive services to viewers who have
different devices and bandwidths. E-commerce also enables service providers to

34
integrate physical and digital channels to create seamless and omnichannel
experiences for customers. Many large enterprises boast thousands of patrons
within their ERP or CRM systems, yet a mere 20% contribute to 80% of the
revenue, primarily due to a focus on monetizing newly-acquired customers.
Leveraging modern eCommerce platforms can pivot this approach, enabling
revenue generation from existing clientele through valuable digital offerings.
For instance, mechanical engineering firms might introduce automated
maintenance, digital twins, or an online storefront for spare parts, enhancing
both customer retention and revenue streams.

3 Enhanced customer experience and value

A third way e-commerce is changing the service operations industry is that it

enhances the customer experience and value by providing more choice,
convenience, personalization, and engagement. For example, online consulting
platforms can provide customers with access to a wider pool of experts, more
transparent pricing and reviews, and more interactive communication and
collaboration tools. Online education platforms can provide learners with access
to a variety of courses, materials, and instructors, more flexible payment and
enrollment options, and more feedback and support mechanisms. Online health
care platforms can provide patients with access to more accurate and timely
information, diagnosis, and treatment, more convenient scheduling and delivery
options, and more follow-up and monitoring services. Online entertainment
platforms can provide viewers with access to more diverse and original content,
genres, and formats, more customized and adaptive recommendations, and more
social and interactive features. Mental health care is a very important category
for everyone today, because we live in a VUCA world. In Vietnam, this field is
only just beginning to receive the attention it deserves. I believe that e-
commerce will be the key to promoting and accelerating the development of this
field. Customers seeking mental health care can schedule consultations with
experts via mobile app and track their health details on that platform. Another
example, retailers are increasingly focusing on order processing and delivery
speed. This opens up further development opportunities for fulfillment and last-
mile delivery providers. The upcoming competition in this domain will be based
on the speed and friendliness of the delivery person.
This is especially true for transportation services like Uber and food delivery
services because customers can choose their preferred style and standard, from
economy to comfort plus. This actually makes the customer feel that she/he is
the queen/king. Moreover, e-commerce helps companies to deliver on their
service promises.

35
4 Optimized operational efficiency and performance

A fourth way e-commerce is changing the service operations industry is that it

optimizes the operational efficiency and performance by reducing costs,
improving quality, and increasing productivity. For example, online consulting
platforms can reduce the overhead costs of travel, office space, and equipment,
improve the quality of service delivery by using standardized processes and
tools, and increase the productivity of consultants by using automation and
artificial intelligence. Online education platforms can reduce the operational
costs of course development, delivery, and administration, improve the quality
of education by using adaptive learning and assessment methods, and increase
the productivity of educators by using learning management systems and
analytics. Online health care platforms can reduce the operational costs of
health care delivery, improve the quality of health care by using evidence-based
and data-driven practices, and increase the productivity of health care
professionals by using telehealth and remote monitoring technologies. Online
entertainment platforms can reduce the operational costs of content production,
distribution, and marketing, improve the quality of content by using user-
generated and crowdsourced content, and increase the productivity of content
creators by using cloud computing and blockchain technologies. Growing on
revenue alone is a mistake! Optimizing operational efficiency and performance
is crucial, as we never want to grow without profit. Acquiring new customers is
not difficult, but operational problems such as order management, fulfillment,
delivery, returns, and after-sales can hold back our growth. Therefore, it is
nearly impossible to achieve strong omnichannel or e-commerce growth
without focusing on operations. Otherwise, you will face the dangerous problem
of growth without profit. When choosing a technology solution, be practical and
set targets for automation to free up human resources from routine tasks. GenAI
makes this easier than ever. Don't just use AI as a tool; integrate it deeply into
your system. Boosting profitability often hinges not just on escalating revenue,
but also on reducing operational expenses. The prevalence of manual tasks in
order management and fulfillment results in elevated costs, error susceptibility,
and lapses in customer communication. By fully automating numerous tasks
and deploying sturdy human-to-machine APIs, both sellers and customers can
reap the rewards of a swifter, more transparent, and error-resistant fulfillment
process.
5 Challenges and opportunities

E-commerce also poses some challenges and opportunities for service

operations, such as managing customer expectations and satisfaction, ensuring
service quality and reliability, complying with legal and ethical regulations, and
fostering innovation and differentiation. Service providers need to adapt to the
changing customer needs and preferences, deliver consistent and high-quality

36
service across different channels and platforms, protect customer privacy and
security, and create value propositions that stand out from the competition. E-
commerce also offers some opportunities for service operations, such as
collaborating with other service providers, leveraging network effects and
economies of scale, enhancing customer loyalty and retention, and developing
new capabilities and competencies. Service providers can benefit from
partnering with other service providers to offer complementary or integrated
services, exploiting the positive feedback loops and cost advantages of e-
commerce, creating long-term relationships and communities with customers,
and acquiring new skills and knowledge to improve their service operations.
The demographic shift among buyers presents both a significant opportunity
and a formidable challenge. In B2C, virtually every age group has shopped on
platforms like Amazon, acclimating to the eCommerce model. However, B2B
eCommerce is relatively nascent, with many traditional B2B buyers still relying
on email, phone, or other conventional methods for placing orders. Yet, as the
next generation of B2B buyers ascends to leadership roles within purchasing
departments, a digital channel for engaging with suppliers becomes imperative.
In the coming years, the focus should be on establishing a robust eCommerce
platform to digitalize customer service operations and transition the customer
base toward this modernized approach.
How can we manage the cost of the product? whereas we are working on
product development as well. In kid’s clothing category, we have big
opportunities.

6. ELABORATE THE PHASES OF BUSINESS PLANNING

IN E-COMMERCE PROJECT ?

7 Phases of eCommerce Project Management Planning

eCommerce management plans are guidelines and procedures to help a company
manage its online store. It is a document that outlines all the steps needed to
launch an e-commerce store successfully. It includes the marketing strategy,
customer journey, budgeting and forecasting, and other vital components.
They help companies get the most out of their eCommerce stores by providing
them with guidelines on managing the business from start to finish. These plans
can also help companies maximize all growth opportunities,
including marketing, customer service, and product development.
If you want to start an eCommerce business by developing a plan, then here are
seven phases of it that you should include.

37
1. Research and Strategy
The research and strategy phase is about understanding the client's needs,
determining the best approach for the project, and gathering knowledge about the
client's competitors.

It is essential to understand a client's needs before developing a plan. This phase

will help you determine the best approach for your project and gather information
on your competitor's strategies. It is a deep dive into the target market,
competition, and industry.

This phase of the eCommerce project management plan involves researching

and understanding the target market, competition, and industry. The goal is to
identify opportunities for differentiation to create a unique selling proposition
(USP).
2. Laying Out A Workflow Process
The layout of a workflow process can vary depending on the project you are
working on now. For example, tasks may need to be completed in sequential order
in a software development project, while in a marketing campaign, you can do
different functions concurrently.

In this phase, you are laying out your workflow process and deciding what type
of project you are working on and what kind of task list you want to have for it.
You need to identify who the stakeholders are and what their roles are in this
process. It would be best if you also remembered which tasks you will be assigned
to which team members or external stakeholders.

3. Align With Strategic Plan

Companies can align the eCommerce project management plan with the
company's strategic plan for better results. The eCommerce project management
plan is a roadmap that includes all the steps your eCommerce efforts need to reach
the desired goal.

38
The company strategic plan outlines the path you need to take for the company
to achieve its goals and objectives. It is a document that defines where a company
wants to go and how it will get there.

Companies need to have an eCommerce project management plan aligned with

their strategic plan because it helps them understand how they can use
eCommerce as an opportunity for growth and revenue generation.

4. Design Your Ecommerce Website

This phase is where you can start your eCommerce website and the foundations
you want it to have. This phase is where you will be able to create the design and
development of your eCommerce website. This stage starts with the idea that you
have for an eCommerce website.
You can then get in touch with a web designer to help you create a mock-up of
your idea and find out how much it would cost to make this idea a reality.
The web designer will work with you to create a mock-up, which will show the
layout of your store, the pages included on the site, and any specific features you
want on it.
They will also estimate how much it would cost to build this site based on their
experience building similar sites for other clients.

It's where you create the designs for your web pages. It's important to note that
this phase doesn't include the actual content of your site, which we will discuss
in a later step. The website designing phase includes making decisions about
colors, fonts, and layout and creating wireframes and mock-ups of what your site
will look like on different screens.

5. Develop The Website

The website construction phase is building the website from conception to
completion. In this phase, you'll need to apply your decisions on the design,
layout, and functionality. Many people think this is about developing a website,
but it's not. It's about ensuring your site does what it wants for your business.

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A website should be easy for visitors and customers to navigate and present a
professional image of your company. This concept means that site navigation
should be intuitive, so customers can find what they want quickly and easily.

6. Testing Phase
Testing and checking are crucial to your eCommerce management plan. It helps
you identify and fix problems before they become significant issues.
The first step in the testing and checking process is to create a test environment
for your website. The test environment will allow you to simulate what happens
on your website without actually affecting it. You can do this using a virtual
private server or an independent computer with no other applications.

All product requirements are implemented and checked for errors in the testing
and checking phase. This phase includes ensuring that all the features are
functioning correctly, that you've fixed all the bugs, and made all the necessary
changes.

7. Migration and Launching

A migration and launching phase is when a project manager needs to start
planning for the project's future. You do this by determining what resources are
necessary for the next stage, what tasks need completion to get there, and how
you will complete these tasks.

In this phase, the team will be migrating all of their data from one system to
another. This stage is also when you launch your new website and ensure that
everything works as expected.

These phases of the eCommerce project management plan should be well-

researched and thought out. That way, the launch of your eCommerce business
will be a success, and you can prepare for any delays or hurdles you encounter
along the way. Therefore, if you haven't yet, make sure that you incorporate these
into your eCommerce project management plan.

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7. WHAT IS CONCEPTUAL DESIGN ? EXPLAIN THE
ROLE OF CONCEPTUAL DESIGN IN E-COMMERCE
PROJECTS ?
Conceptual design is the framework setting the intention and idea behind a
visual plan. The concept design happens early in the design process. It is the
first step before defining the specific details of the technique, like the exact
illustration style and particular color choices.

As such, conceptual design streamlines all the other aspects of design down the
road and determines the viability of the product. This will ultimately shape how
the final project will be realized.

Purpose of Concept Design

These are the goals of a conceptual design:

Basis of Logic
Concept design establishes the basis of logic. It grounds the “why” and “how”
of a design project. From software to logos, any design is devised to accomplish
a practical objective while being aesthetically pleasing. This involves
communicating information and expressing brand identity.

Design Language Creation

The concept design bridges the gap between an intangible, theoretical design
idea and its visual representation, defining the design “vocabulary,” so to say.
While the conceptual design process does not go as far into planning the
smallest stylistic details, it lays the groundwork for significant design choices in
the subsequent phases of design development.

Originality
The conceptualization stage of the design process is also when the most unique
aspects are defined and where the designer has the most creative freedom. It is
when you determine the innovative aspects to focus on, formulating an original
design roadmap.

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Conceptual Design Process
While concept design leaves plenty of space for creativity, it’s most effective
when divided in predefined stages. As such, the conceptual design process
ideally consists of four steps:

Step #1: Defining the Problem

Defining the problem your design intends to solve or the specific goals it wants
to achieve is essential. You may start your project by asking why it is necessary
to pursue and complete it.

While defining the problem can be complex and tricky, it is essential to move
beyond the surface and present the problem and the “why” that will drive
forward your design solution. When you pinpoint the “why,” you will have a
deeper understanding of the intrinsic purpose that will propel your project to
succeed.

Step #2: Conducting Research

That being said, the context of the problem should also be well-defined, and that
requires plenty of research.

However, it also entails learning about the brand you’re designing for.

For example, if you’re working for a client, gathering the following information
is a good starting point:

 What is the brand’s value and purpose?

 What is the story behind the brand?

 What is the company’s mission and vision?

 What brand personality do you want to adopt?

 Who is the target audience?

 What designs do you want to take inspiration from?

 What do you want to do to make your brand stand out?

Using this checklist to find answers will help you explore the possibilities of
your concept design while showing you the limitations it may have. It will also

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iron out any inconsistencies in brand voice and approach. Another useful tool is
putting together the data you will have collected on a mood board.

Step #3: Brainstorming

After you’ve gathered all the information you need, state and describe your
concept verbally. Organize your ideas and thoughts into words so that you have
a sense of structure and an idea for what’s to be emphasized.

Brainstorming can be as straightforward as stating the problem and then

enumerating its potential solutions on a list while keeping them aligned with the
brand and its audience. You can also use word-based techniques to help with
brainstorming, namely:

 Mind-mapping

 Free association

In both cases, you will start with a keyword or phrase to draft a creative brief.
These techniques are beneficial for logo creation and product naming.

Populating this list will work better when done within a time limit, as it’ll
prevent you from overthinking and allow your design instincts to come to the
fore. You can also write complete sentences from this list of associated ideas
that will articulate your concept and its goals more clearly.

Toward the end of your brainstorming process, you should have a fleshed-out
concept for the remaining stages of the design process, but there’s still one more
step.

Step #4: Visual Exploration

At this point, you should be relatively certain of how competitive the design
concept is, but it’s still very valuable to sketch all your ideas on a digital canvas
where you can compare them side by side. A viable method is to use several
smaller thumbnails that will fit on the same page for more convenient
comparison and analysis.

Putting your ideas on a blank page will make abstract thoughts turn into
something more substantial — a visual statement.

Visual exploration is the graphic counterpart of verbal exploration or

brainstorming where you iron out all the details. This means you don’t have to

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spend too much time on them during your first sketches. This will also provide
one final layer of insight whether the idea is valid, reasonable, and feasible.

Afterward, you can cherry-pick the best sketches that are most representative of
your end goal and refine them into a more extensive, detailed study — a version
you can present to your stakeholders from whom you will collect feedback.

Conceptual Design Benefits

As we’ve ascertained, the conceptual design process is a vital phase in
the product design and development process. It will help produce the initial
concepts in the form of studies and outline specifications for technical
evaluation.

Here are the benefits of having a concept design in place before jumping into
production:

Identifying Customer Needs

The designers and developers decide if a product concept is viable enough to
meet consumer demands through a concept design. If there is an existing
product, they must review its performance and assess if the new concept can
offer a better, more convenient solution.

Testing Feasibility
A conceptual design can help the design and dev team analyze the resources and
skills necessary for formulating, developing, executing, and marketing the new
product. They will also evaluate its value to the customers and, if applicable, its
potential price point.

Considering the project's feasibility — from development to completion —

within an ideally set timeframe will position your company at an advantage.
This includes assessing the marketability of the new product.

Practicality
Since you will initially deal with abstract ideas, you need the conceptual design
process to refine the steps to get to a clear direction for the output. Based on the
project goals, you should focus on and follow the logical and practical approach
to breaking down the concept into fine details.

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Like all concept models, your conceptual design should reflect the future
product’s goals and objectives.

Establishing Relationships
Your concept design can tie together the strategies for creating templates,
modules, components, and other underlying structures of the project. It will
piece together the different parts of the framework and design model. This can
help:

 Identify the components of the new product

 Determine the content type included in the final output

 Get rid of ambiguous areas of the concept proposal

 Uncover the more relevant parts

 Map out relationships between the design elements

 Explain the dependencies that need to be addressed concerning the

overall project goals

Conclusion: What Conceptual Design Does and How It Works

Conceptual design is the beating heart of a design project. This outline on which
you will base the design process that follows can significantly help with
production efficiency as well as the effectiveness of the final product.

8. DIFFERENTIATE BETWEEN PURE ONLINE AND

BRICK AND CLICK BUSINESS ?
The Bricks & Clicks Business Model
The Bricks & Clicks business model is a hybrid model that combines both
offline and online operations. It means that the business has both a physical
brick-and-mortar presence as well as an online presence. This model allows
customers to shop either in-store or online, providing a seamless shopping
experience. In this model, customers can purchase online and pick up the
products in-store, or they can visit the store to see and try the products before
making a purchase online. Bricks & Clicks retailers have the advantage of
leveraging their physical presence to create a brand image and a loyal customer
base, while also enjoying the benefits of an online platform that enables them to
reach a wider audience.

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Pure Online Business
On the other hand, a Pure Online business model operates entirely online,
without any physical stores. Pure online businesses are often referred to as e-
commerce businesses, and they rely on the Internet to sell products or services
to customers. This model is ideal for businesses that do not require a physical
presence, such as software or digital product companies. In the Pure Online
model, the entire customer journey takes place online, from product browsing to
checkout, and delivery.
There are a few significant differences between the two models, including
the following:
1. Reach: Pure online businesses have a broader reach than Bricks & Clicks
businesses. This is because they are not limited by physical store
locations and can reach customers all over the world. Bricks & Clicks
businesses, on the other hand, are limited by their physical location and
may not be able to reach customers outside their geographic area.
2. Branding: Bricks & Clicks businesses have the advantage of leveraging
their physical presence to create a brand image and a loyal customer base.
In contrast, Pure Online businesses have to rely on online marketing to
build their brand and create customer loyalty.
3. Cost: Bricks & Clicks businesses require a more significant investment
upfront, as they need to invest in physical store locations, inventory, and
staffing. Pure online businesses, on the other hand, have lower overhead
costs as they don't require a physical store, and the inventory is often
drop-shipped or fulfilled by a third party.
4. Customer experience: Bricks & Clicks businesses provide customers with
the option of shopping both online and offline, creating a seamless
shopping experience. In contrast, Pure Online businesses may not have
the same level of customer service as they lack physical interaction with
customers.
Conclusion
In summary, Bricks & Clicks and Pure Online business models have different
strengths and weaknesses. Bricks & Clicks businesses have the advantage of
leveraging their physical presence to create a brand image and a loyal customer
base, while Pure Online businesses have a broader reach and lower overhead
costs. Ultimately, the choice of which model to adopt depends on the type of
business, the target audience, and the company's overall strategy.

9. WHAT ARE THE VARIOUS TOOLS USED FOR

PROMOTION OF WEBSITE ? EXPLAIN IN DETAIL.
1. Search engine optimization

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Search engine optimization, or SEO, is arguably the biggest thing you can do to
promote your website. With more than 1.13 billion websites on the internet, and
more being created every second, you can easily risk your website getting lost
in the ocean of content if you don’t make your website search engine friendly.

Thousands of free online guides can help you improve your website’s SEO, so
you don’t necessarily need the budget to hire an SEO professional. More often
than not, you can fix most SEO problems on your website yourself with a few
simple optimizations.

When you’re looking at your website’s SEO, there are two main things to be
aware of: on-page and off-page SEO.

On-page SEO is, as you might expect, everything you can see on your website.
This covers things like your website copy, images, videos, meta descriptions,
responsive design, and even how your website is structured.

Off-page SEO, refers to what’s going on behind the scenes. This covers aspects
of your website like who’s linking to it, how authoritative it is, and the
engagement it’s getting from readers.

If you’re using Webflow, most of the technical aspects of being an SEO-

friendly and responsive website are already done for you. This way, you only
have to worry about making great content.

Search engine optimization is one of the most cost-effective ways to promote

your website because while you will need to make adjustments from time to
time, this method largely generates traffic without much input once everything’s
been optimized. However, you should also know that it can take months to see
results from this method, so don’t expect a quick fix.

2. Guest blogging
Guest blogging is an underutilized yet fantastic way of building links to your
new website. With this method, you write a guest post for an authoritative blog
in your industry (or an adjacent one) to showcase your expertise. With each
guest post linking back to your website at least once, you’ll be able to direct
traffic from a reputable source back to your new website.

Whether you’re a new business or you’re in marketing, you might find it

difficult to secure a guest posting spot on certain websites through no fault of
your own. Given that writing guest posts for other publications used to be a
massively popular SEO tactic, many websites either carefully vet who guest
blogs for them or they don’t accept submissions at all.

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The key thing to remember with guest blogging is that it’s less about SEO and
more about building relationships, both with the publisher and with your
audience. If you can build a relationship with a publisher and regularly
contribute new content, it won’t just drive traffic to your website, but it’ll also
help you to build contacts within your industry.

3. Content marketing
Content marketing is a great way to promote your website because it both
improves your SEO and generates content that your audience will find useful. A
common misconception is that to do content marketing, you need to blog, but
that’s not necessarily true. While blogs are the tried-and-true content marketing
avenue, you can produce videos, create a podcast, or even start a newsletter
around something related to your work.

With content marketing, the biggest thing to remember is the content you create
needs to be useful, interesting, or entertaining for your audience. The best way
to make sure you’re answering questions people have is to do plenty of keyword
research before you get started.

If you don’t have the budget to pay for an SEO specialist, or SEO tools, to
conduct keyword research for you, a great free resource is AnswerThePublic.
By searching for your chosen word or phrase, AnswerThePublic will show you
different questions, statements, and location-based searches that users have
typed into search engines. This ensures that whatever content you’re making
addresses a genuine customer need.

Content marketing is a promotion method that doesn’t work in isolation,

however. To get the most out of your content marketing, you’ll need to make
sure you work on your website’s SEO strategy and promote your content
through other channels like social media or paid advertising. You should also
make sure that you continually create new content so your customers have a
reason to keep coming back.

4. Social media
Social media is the best-known free method of promoting new websites — and
for good reason. Platforms like Facebook, Twitter, and Instagram have billions
of users each, and it’s easy to connect with other local businesses and promote
your own through these platforms.

Before you get started with social media, though, you should consider what
your business’s brand voice is, who you’re marketing to, and who you’re trying

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to reach. Here’s a quick summary of the platforms you need to consider, as well
as what kind of businesses they’re good for:

 Facebook: A good all-rounder for both B2B and B2C companies,

regardless of brand voice. Facebook has the biggest user base, so it’s
good for posting regular updates about your business.
 Twitter: Good for B2C companies that can promote themselves with
short, snappy statements. Best for sharing links, creating conversations,
and getting involved with your audience.
 Instagram: Great for both B2B and B2C. The best platform to use if
your work is highly visual or if you want to reach younger adults as your
primary audience.
 Reddit: Best for B2C, but it takes time to cultivate. Before you begin
promoting your website on Reddit, you’ll be expected to join in
conversations on subreddits (specific interest forums) and only share
links to your website where it’s necessary.
 LinkedIn: Best for B2B. Often used as a hybrid social media and
blogging platform, so it’s great for reaching other professionals and
showcasing your expertise.

If you’ve got some budget available for promoting your website, then Facebook
Ads is brilliant for promoting your website through social media. Through
Facebook Ads, you have a wide array of targeting options available, making it
easy to narrow down your target audience. You can even choose to target users
who follow specific other pages or are friends of your current followers.

5. Email marketing
If you’re looking for a tried-and-tested method of promoting directly to your
customers, then email marketing is a great option. Once you’ve got your
website up and running, it’s easy to start an email marketing campaign, and
many email marketing services are available that you can use for free or on a
limited budget.

While this article can’t cover everything you need to know about email
marketing here, the internet is packed with free guides to email marketing, like
this one from DreamHost.

The great thing about email marketing is that users don’t even have to have
visited your website to sign up for your email newsletter, so you can start
promoting your new website before it’s launched. Most email marketing
services will let you share a signup URL with your followers so they can
subscribe to your email list without having to visit your website.

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Here are some ideas for how you can use email marketing to promote your new
website:

 Set a countdown timer for the launch of your website, with one email
every few days showing sneak peeks of what’s to come
 Send a coupon to all users who sign up to your email list before your
website launches
 Invite users to a scavenger hunt, where they have to find a hidden item on
your website, with winners receiving a prize or a discount on your
products
 Share your first blog post as soon as your website launches

And once your website is live, you can integrate email signups into the web
design so that new visitors can get updates about your business. For example,
you can easily integrate Mailchimp’s email marketing automation into your
Webflow design with no HTML embeds or added scripts.
6. Google My Business
If your business relies on local footfall, or if you’re looking to generate more
local traffic for your website, Google My Business is a must.

Creating a Google My Business profile is free, easy, and makes your business
easier to find when people make location-based searches. With a Business
profile, you can attach your new website to other information about your
business like opening hours, contact details, and your location, making it easy
for customers to find your business among the search engine results.

One of the great things about Google My Business is that you can see how users
are interacting with your business profile, so you can easily change your
promotion strategy if you find out it’s not driving as much traffic as you hoped
for.

7. Quora
If you’re a regular internet user, then you probably already know about Quora
because of how often it shows up in your search results. While Quora can seem
spammy sometimes, it’s a surprisingly good place to promote your new website.

For those of you unfamiliar with Quora, this website allows users to post
questions for the community to answer. Because this website is so popular with
both users and people marketing their business, Quora results tend to be shown
on the first page of Google for long-tail keyword searches.

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The main reason why Quora is considered spammy is that it’s a good place for
promoting your business. And, as with most other promotional avenues, once
something is shown to be successful, you’ll always have bots and low-quality
marketers using it without any care for the value it brings to the user.

If you use Quora well, it’s a great promotional tool to promote your website and
showcase your expertise, and can be a great distribution tool for your content
marketing strategy. All you have to do is sign up for an account and start
answering questions relating to your industry or niche while remembering to
link back to your website at some point in your answer. This could be linking to
a blog post where you’ve already answered someone’s question or linking to
your About Us page to show other users what qualifications you have.

8. Online communities and aggregators

There are dozens of online communities that let you post content to their site.
For example, everyday thousands of people visit Product Hunt to find new and
trending products. Posting your website on Product Hunt is a great way to
organically get the ball rolling.

Another great community that lets you post content on, similar to Reddit, is
Hacker News. This is a great place to share information about what’s happening
in tech and the developer community. In fact, some of the first ever Webflow
users came from a Hacker News post made by the founders.

Besides just online communities, there are also many different media
aggregators where you can post to. These websites focus on creating a directory
of content related to a specific niche. For example, Designer News allows users
to publicly share links related to design.

The great thing about online communities and media aggregators is that they’re
easy to post on, they can give you a link back to your website, and if your posts
include content that is useful it has the potential to be shared.

9. Pay-per-click advertising
Pay-per-click, or PPC, advertising, is an easy way to promote your website,
even if you’ve only got a tiny budget to work with. Digital marketing in this
way might be one of the more traditional channels, but it remains prevalent
because it’s a great way to build website traffic as well as target specific
demographics.

Google AdWords, the best-known PPC advertising platform, is a great place to

get started with PPC advertising. With Google AdWords, you can quickly
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create adverts around the keywords you’ve found through keyword research,
and you’ll only pay for that advertising when a user clicks on the link.

However, there’s no set amount you’ll pay with Google AdWords. When you
run an ad through this platform, it’s entered into an automatic auction that
happens whenever a user searches for your keyword. Typically, the advertiser
who is offering more per click will win, but their ad positioning (or where it
shows up on the search results) will be determined by other factors like
keyword relevance, your click-through rate (CTR), and your overall ad
performance.

If you’ve got a strict advertising budget to meet, then you can easily set up
Google AdWords so that once you’ve spent your budget for a certain period,
your ads won’t be entered into another auction until that period renews. So, you
don’t have to worry about endlessly spending money with little control.

For a small business looking to invest capital into distribution, Google

AdWords is one of the best ways to promote your website or blog.

10. Giveaways
Finally, giveaways are one of the best ways for your business to build a rapport
with your customers while promoting your website. While giveaways can often
be seen as a cheap trick for driving website traffic, they’re a great way to get
people interested in your products, generate interest in your website, and even
make other industry connections.

The key thing to remember with giveaways is that you’re doing it for marketing
purposes. So, they need to generate a positive return on investment (ROI) for
them to be worthwhile. When you’re designing your giveaway, you should keep
this in mind when you choose a product or service to offer up as a prize.

Along a similar vein, you also need to make the entry cost equal to or less than
the perceived value of the prize, or customers won’t take the time to enter the
giveaway. Make sure the rules are clear upfront so you don’t face any issues
later. If your end goal is to drive website traffic, then make the entry cost
something relating to this. Liking a certain Facebook page, subscribing to an
email newsletter, or even visiting a certain landing page are common entry costs
that help drive website traffic.

It’s important to run a giveaway focused on the goals you want to reach. Given
that you want people to visit your website, it should be the “hub” of your
giveaway and where people go to investigate the full details. When it’s over,

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you’ll find you have a good number of new followers who can’t wait for the
next giveaway.

Promoting your website no matter your budget

There have never been more options to promote your website, even if your
budget is limited or nonexistent. With tons of digital marketing courses and free
channels like social media and SEO, in combination with paid email marketing
and PPC advertising, the barrier to increasing website traffic has never been so
low. However, you should make sure that you’re exploring multiple
promotional avenues to get the maximum benefit from each method of
promotion .

10. WITH THE HELP OF DIAGRAM EXPLAIN IN

DETAIL THE E-COMMERCE PROCESS FLOW ?

What is an eCommerce process flow?

An eCommerce process flow can often be an area of online retail that is
overlooked. In order to maximise sales opportunities and stay cost competitive,
mapping out your eCommerce processes can help your business highlight key
areas that may require automation or modification, and ultimately, improve
performance.

The following article will help you to produce an eCommerce process flow that
is unique to the way your business operates. An additional mapping eCommerce
processes workbook is also available for you to use as a starting point to model
your own processes and outlines an automated eCommerce process flow.

Top-Level eCommerce Process Flow

Unless you are already automating your eCommerce processes, managing
eCommerce orders is a manual process. Employees have to log in and out of
different business systems and databases, which is both time-consuming and
prone to errors.

Each top-level process highlighted below holds a number of additional

subprocesses (+). For example, when a sales order hits your back office
operations employees have to manually process the information into your
business software. This can result in administration errors and create process
bottlenecks further down the line. In an automated process employee intensive
administration tasks are removed.

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Diagram: Overview of a typical eCommerce process flow

Subprocess: Receiving Orders

When a customer places an order within your eCommerce system the order
details need to be extracted and placed into your business software. Manually
dealing with information held within a sales order can detract from the
businesses planned objectives. Data entry errors can surface, employee
efficiency is reduced and order processing costs increase.

The process of receiving the order is mapped below.

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Diagram: Receiving orders from an eCommerce system and placing into
business software

 Sales order details are manually extracted from your eCommerce system.

Information includes customer information, description and ID of product

ordered, payment details and transaction ID

 Employee manually checks sales order data for a correlation with your

business rules e.g. full address, contact details, products ordered

 Employee manually enters order and customer details into your business

software

 Employee manually creates and sends an order received notification to

the customer

 If an employee identifies any anomalies they will need to contact the

customer to resolve the issue

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  If an issue cannot be resolved the employee may have to manually cancel

the order

 Order is passed to warehouse for processing

How automation can help this process:

By automating this process the employee is removed from the scenario. If
required, orders can be pulled on a timed or scheduled basis e.g. every 15
minutes. Orders are automatically entered into your business software and the
customer receives and automated order confirmation notification. For a detailed
overview of automated eCommerce processes,download the workbook.

Subprocess: Processing an Order in the Warehouse

Once an order has been checked and processed in your business software, the
order is passed onto the warehouse for processing. Here, employees will have to
manually check the order against your pick list business rules (stock
availability, item location etc.) and create and print a pick list.

Diagram: Processing orders in the warehouse

 Employee notifies warehouse of an order that needs to be processed

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  Employee manually checks the order against pick list criteria e.g. stock

availability, item location in warehouse etc.

 Employee creates and prints pick list

 If products are in stock and available, the order is picked and packed

 Order is now ready for the shipping process

How automation can help this process:

An automated process will reduce employee time in cross-referencing your

business software for stock availability and product location. It will dynamically
automate the creation and printing of your pick lists. For a detailed overview of
automated eCommerce processes,download the workbook.

Subprocess: Processing an Order for Shipping

Once an order has been processed in the warehouse it is now ready to be passed
to shipping for fulfilment with a courier. Here, your business rules will
determine which shipping route the employee chooses. Package data, such as
weight, size, destination and costs, needs to be obtained. An employee will also
need to manually print the shipping labels and contact the courier for fulfilment.

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Diagram: Shipping products for fulfilment

 Employee enters package data, such as weight, size and destination into

your courier provider system

 Employee prints shipping labels and delivery notes

 Shipping confirmation sent to customer

 Employee may or may not update your business software with tracking

numbers

 Order handed over to courier for fulfilment

How automation can help this process:

An automated fulfilment process will remove the manual administration in this

process as all package data and courier details will be in your business software.
Your business systems will be integrated with your courier service providers
solution, enabling them to ‘talk to each other’. An automated process will also
provide you with the ability to automatically print shipping labels. The customer

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will receive an automated ‘dispatched’ notification, and tracking details will
automatically synchronise with your business software. For a detailed overview
of automated eCommerce processes,download the workbook.

Workbook: Mapping your eCommerce Process Flow

Mapping your eCommerce process flow provides you with a clear overview of
where your processes start and end. It will make it easier for you to identify
gaps within your process models and highlight areas where your business could
benefit from automation or improvement.

In this article we have touched on the key areas within a typical eCommerce
process flow. To help you model your own eCommerce process model we have
created a workbook that details an automated eCommerce process flow. This
workbook can be used as a starting point to map your eCommerce process and
to help you identify areas where your business can improve its processes.

The workbook includes:

 Top-level eCommerce process flow

 Subprocess model: Automating the retrieval of sales orders and

automatically placing them into your business software

 Subprocess model: Automating the processing of sales orders in the

warehouse

 Subprocess model: Automating the placement of sales orders with courier

services for shipping

 Notes for you to map and modify your process models

 Process automation and data integration recommendations and

considerations

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