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E Commerce

The document discusses the significance of Information Technology (IT) in modern business and society, highlighting its role in enhancing productivity, security, and communication. It outlines the evolution of IT in India, detailing its growth, challenges, and necessary reforms to maintain competitiveness. Additionally, it defines e-commerce, its functions, and its impact on traditional commerce, emphasizing the shift towards online transactions and digital business operations.

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0% found this document useful (0 votes)
15 views36 pages

E Commerce

The document discusses the significance of Information Technology (IT) in modern business and society, highlighting its role in enhancing productivity, security, and communication. It outlines the evolution of IT in India, detailing its growth, challenges, and necessary reforms to maintain competitiveness. Additionally, it defines e-commerce, its functions, and its impact on traditional commerce, emphasizing the shift towards online transactions and digital business operations.

Uploaded by

d6172057
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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UNIT-01

E-commerce and its Technological Aspects

Information technology is a new field combining information science,


computing, telecommunications and electronics. These century has been
defined by application of and advancement in information
technology. Information technology has play an integral part in our day
today life. Information technology is also defined as the study, design,
development, application, implementation, support or management of
computer-based information systems.

Today Information technology has served as a big change agent in


different aspect of business and society.

Information technology (IT) benefits the business world and it allows


organizations to work more efficiently and to maximize productivity…

Information Technology (IT) involves computers, software, networks,


and technology for storing, processing, securing, and managing
information. It includes hardware, software, networking, security,
databases, cloud computing, programming, and emerging technologies,
facilitating businesses, communication, and data-driven decision-making.
IT is essential for modern life and encompasses support, management,
and innovation in technology.
Information Technology uses computer systems or devices to access
information. It is a combination of both information and technology.
This system is responsible for a large portion of any workforce,
business operation, and other personal access information comprising
an individual's daily activities. It impacts our day-to-day life gravely.

It is a common technology used by every enterprise to upscale their


business skills. One can use this for both personal as well as
commercial purposes. Global companies incline towards using
Information Technology to manage and innovate data according to their
processes.

Information Technology plays a vital role in upscaling our professional


and personal lives. It is the pinnacle of the foundation of
communication, technologies, innovation, seamless sustainability, and
Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 1
other important aspects that helps the company to reach its full
potential. Information Technology is thereby used on a personal level to
connect and communicate with other people via playing games, sharing
media content, shopping, and of course, being social. From a career
perspective, Information Technology is the epitome of advancement in
business and commerce. It is responsible for business operations in
every industry. Information Technology has asserted its dominance
everywhere in health care to food service sectors, manufacturing and
sales. People rely on Information Technology to connect with others
and manage information and services with utmost proficiency.

Information Technology in Business

Information Technology consists of a plethora of advantages in


business. It helps in establishing communication among the people,
which helps with the expansion of businesses. Information Technology
in business helps secure the data and vital information of the business.
They also help in the creation of management databases with CRMs
and other tools to overcome any front operational challenges. This
helps boost efficiency and improve the business's speed and
convenience. In any business environment, Information Technology is
entrusted with three key areas:

 IT Hardware and Infrastructure: This department primarily


focuses on the functionality of the digital infrastructure.
 IT governance: This purely focuses on making up the policies and
rules of the organization and ensures any type of effective
operations. This, however, must happen with proper compliance
with government rules and regulations.
 IT Operations: This focuses on the everyday functionality of IT
operations and digital infrastructure.

Information Technology Services:


 Network: When two or more computers are connected wirelessly
via cables, it comprises a network.
 Compute: Through the method of computing, or data processing,
is an important aspect of Information Technology. It helps in
storing the data in the CPU.
 Data Storage: The place where the information is stated
somewhere safe without directly being processed. Storage
solutions like solid-state drives and cloud storage databases are
included in this drive.

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 2
 Security: Cyber security helps institutions to protect their data and
other technological assets to be saved from any unauthorized
access.
 Technical Support: This is used to fix hardware or software
issues. Technical support primarily ranges from unlocking a laptop
to solving network usage.

Benefits of IT in Business:
1. Productivity: Using Information Technology in business helps bring
productivity to the business. This helps in analyzing the data quickly,
without the need for any human touch, and maintains the equilibrium of
working in the IT sectors.
2. Security: With the help of global connectivity, everything is now in
the first of our hands. The security functions in the field of IT are
gravely looked after by the information technology people to ensure
database security.
3. Communication: Communication infrastructure is a pivotal aspect of
Information Technology and services. This helps in identifying
operational efficiency and resource utilization by establishing a strong
connection between the product handler and the business.
4. Online Recruitment: Online recruitment plays a vital role in the
field of Information Technology. Recruiting technology is often defined
and consists of sourcing, screening, and assessing candidates. With the
advent of Information Technology, it has become easier, and
technology recruitment ensures finding quality technical talent with the
help of a sourcing pipeline to match the requirements of the company.
5. Access to Information: This facilitates gaining huge amounts of
information at a quicker pace with the help of hardware and software
networks and workstations at minimal costs. It is a combination of
technology that enables combinations and configuration of data to
create distinctively new information that helps in making quick
decisions.
6. Better Decision-Making: Information and technology provide a
window to process immense amounts of data to make your business
grow to its full potential. The decisions that will be taken for the
business's sake will be extremely accurate. With the help of some
advanced tools like data analytics and data mining, it makes the
processing of consumer data easier and makes fine computerized
decisions with the help of this data.

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 3
7. Sustainability: They normally pose the question of whether and how
the ICTs contribute to safeguarding and protecting society from facing
any harm, thereby allowing future generations to have a satisfying life.

Information Technology Development in India:

India’s Information Technology (IT) development journey is a


remarkable success story. The establishment of prestigious institutions
like the Indian Institutes of Technology (IITs) and Indian Institutes of
Management (IIMs) in the 1950s and 1960s provided the groundwork for
excellence in technology and management. The 1980s saw the Indian
government’s policy initiatives, including Export Promotion Zones
(EPZs), which incentivized the software and IT services industry’s
growth. The 1990s witnessed the “Indian IT revolution” with companies
like TCS, Infosys, Wipro, and HCL rising to global prominence. India’s
cost-effective, skilled workforce, proficiency in English, and robust
educational institutions attracted multinational corporations to outsource
IT services.

The Y2K bug scare in the late 1990s further accelerated the industry’s
growth, leading to the outsourcing of various IT services, and making
India a global outsourcing hub. Substantial investments were made in IT
parks and infrastructure, including Electronic City and HITEC City, and
the education system produced a vast talent pool. Indian professionals
working abroad also contributed to the industry’s development.

The IT sector became a global leader in software development,


application maintenance, IT consulting, and business process outsourcing,
serving clients worldwide. The 21st century witnessed the emergence of
numerous IT startups, particularly in e-commerce, fintech, artificial
intelligence, and data analytics, attracting significant investments and
disrupting traditional industries.

The government’s initiatives such as “Make in India,” “Digital India,”


and “Startup India” aimed to promote entrepreneurship and technology
innovation. Indian IT companies gained international recognition and
some were listed on major global stock exchanges. While the industry has
made significant strides, it also faces challenges, including intensifying
competition, evolving global economic dynamics, and rapid technological
changes. Despite these challenges, the Indian IT industry remains

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 4
adaptable and innovative, ensuring it stays competitive on the global
stage.

Major Challenges to Indian Information Technology (IT):

1. Skills Shortage and Skill Mismatch: Despite a large pool of IT


professionals, there is often a gap between the skills required by
the industry and the skills possessed by graduates. The industry
needs to adapt quickly to emerging technologies like AI, machine
learning, and blockchain.
2. Competition from Other Countries: India faces increasing
competition from countries like China, the Philippines, and
Vietnam, which offer competitive IT services and labor costs.
3. Data Privacy and Security: India’s data protection and privacy
laws are still evolving and might not meet global standards. This
can be a barrier for international clients who are concerned about
data security.
4. Infrastructure Challenges: Issues like power cuts, inadequate
bandwidth, and poor physical connectivity can hinder the sector’s
efficiency and growth. Improved infrastructure is vital for
maintaining the sector’s competitiveness.
5. Protectionist Policies: Protectionist measures in countries like the
United States, which is a major market for Indian IT services, can
have a significant impact on the sector. Changes in visa policies,
for example, can affect the mobility of Indian IT professionals.
6. Global Economic Uncertainty: Economic downturns in key
markets like the US and Europe can reduce demand for IT services,
affecting the growth of Indian IT companies.
7. Cybersecurity Threats: The increasing digitization of businesses
and services exposes the sector to cybersecurity threats. A breach
in data security can erode trust in Indian IT services.

Reforms in the Indian Information Technology (IT) sector:


1. Skill Development and Education: Invest in modernizing and
updating the IT education system to align with industry needs.
Promote skill development programs, including reskilling the
existing workforce in emerging technologies like AI, ML, and
cybersecurity.
2. Research and Innovation: Encourage and fund research and
development initiatives, fostering innovation in IT. Collaborations

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 5
between academia, government, and industry can drive cutting-
edge technological advancements.
3. Data Privacy and Cybersecurity Regulations: Implement
comprehensive data protection and privacy laws that align with
international standards. Enhance cybersecurity measures to protect
sensitive data and build trust with global clients.
4. Infrastructure Improvement: Address infrastructure challenges,
such as power reliability, bandwidth, and physical connectivity.
Investing in robust digital infrastructure is crucial to support the
industry’s growth.
5. Promote Startups: Create a conducive environment for IT startups
by simplifying regulatory procedures, providing access to funding,
and offering incentives for innovation and entrepreneurship.
6. Global Trade Agreements: Negotiate favorable trade agreements
with key markets, reducing the impact of protectionist policies.
Diversify the client base to minimize dependency on specific
regions.
7. Environmental Sustainability: Encourage IT companies to adopt
eco-friendly and energy-efficient practices. Promote sustainability
and green data center initiatives.
8. Government Procurement: Promote the use of domestic IT
solutions and services in government projects, fostering the growth
of indigenous IT companies.
9. Digital Literacy: Invest in digital literacy programs to ensure that
a larger section of the population is tech-savvy and can contribute
to the digital economy.
10. Regulatory Compliance: Simplify and streamline regulatory
compliance for IT companies operating globally. This includes
taxation, intellectual property, and export-import regulations.
11. Collaboration with International Bodies: Collaborate with
international organizations to align Indian IT standards and
practices with global norms, enhancing India’s reputation in the
international IT arena.
12. Industry Associations: Encourage industry associations and
forums to facilitate knowledge sharing, best practices, and
advocacy for the sector.

Electronic Commerce (E-commerce):


Electronic commerce (e-commerce) refers to companies and individuals
that buy and sell goods and services over the internet. E-commerce
operates in different types of market segments and can be conducted over
computers, tablets, smartphones, and other smart devices. Nearly every

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 6
imaginable product and service is available through e-commerce
transactions, including books, music, plane tickets, and financial
services such as stock investing and online banking. As such, it is
considered a very disruptive technology.

 E-commerce is the buying and selling of goods and services over


the internet.
 It is conducted over computers, tablets, smartphones, and other
smart devices.
 Almost anything can be purchased through e-commerce today,
which makes e-commerce highly competitive.
 It can be a substitute for brick-and-mortar stores, though some
businesses choose to maintain both.
 E-commerce operates in several market segments including
business-to-business, business-to-consumer, consumer-to-
consumer, and consumer-to-business.
E-commerce may be thought of as a digital version of mail-order catalog
shopping. Also called online commerce, e-commerce is the transaction
between a buyer and a seller that leverages technology.
E-commerce has changed the way people shop and consume products and
services. More people are turning to their computers and smart devices to
order goods, which can easily be delivered to their homes.

Electronic Commerce commonly known as E-commerce or e-Commerce


which denotes different types of transactions involved in commercial
activities. It contains both organizational as well as individual activities
which include the processing and transmission of digitized data such as
text, pictures, sound and video, etc.

E-Commerce is buying and selling, marketing, servicing delivery and


payment of products, service and information over internet, intranets,
extranets and other networks, between an inter-networked enterprise and
its prospects, customers suppliers and other business partners. It differs
from the traditional commerce in the way that it enables the trading of
goods, money and information electronically from computer to computer.
Business is done electronically and there is no longer a need for physical
currency or goods to conduct business.

The functions included in e-commerce are:


1. Buying and selling of products.
2. Shipping of products.
3. Producing financial statements.

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 7
All these function are without human intervention, which is termed as
real ‘E-Commerce’. E-Commerce is a range of online business activities
that include explaining products or service and providing a mechanism
for customers to buy those products and services from a websites or
internet and it encompasses online shopping and online purchasing.

Electronic commerce is a combination of communication services, data


management and security mechanisms which provides a platform to
organizations where they can share information about the selling of goods
and services:

1) Communication Services: Electronic transfer of information from


buyer to seller is supported by communication services.

2) Data Management: It is exchange and storing of data in a constant,


format which enable easy exchange of information.

3) Security Mechanisms: Security mechanisms provides following


functions:
 Authenticates the source of information
 Guarantees the integrity and privacy of information.
E-commerce covers many services over the Internet for example,
customer service, banking, billing, marketing, retailing, secure
distribution of data, corporate sector purchasing and other value-added
services.

Definition of E-commerce:
The term e-commerce (Electronic Commerce) refers to all types of
business operations and transactions that are executed through Internet
and other electronic technologies.

"E-commerce is a virtual business environment in which information


moves electronically via Internet related to buying, selling, transportation
of goods and services".

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 8
According to P.T. Joseph: "E-Commerce comprises core business
processes of buying and selling, goods, services and information over the
internet".

According to Kalakota and Whinston: "Electronic Commerce can be


defined from following four perspectives:

1) Communications Perspective: Electronic commerce is the delivery of


information, products/services, or payments via telephone lines, computer
networks, or any other means.

2) Business Process Perspective: Electronic commerce is the application


of technology toward the automation of business transactions and
workflows.

3) Service Perspective: Electronic commerce is a tool that addresses the


desire of firms, consumers, and management to cut service costs while
improving the quality of goods and increasing the speed of service
delivery.

4) Online Perspective: Electronic commerce provides the capability of


buying and selling products and information on the Internet and other
online services."

Types of E-Commerce:

Much of the world's business today is carried out over digital networks
that connect people and companies. Several types of e-commerce models
are in use today. The major online marketing domains are given below:
1) B2C (Business to Consumer): In B2C model of e-commerce,
businesses sell products and services to individual consumers directly. All
the products and services are offered online through electronic channels
in e-commerce which supplements the traditional commerce. Internet acts
as an electronic channel.
E-Commerce Examples: www.flipkart.com, www.infibeam.com,
www.amazon.in, www.homeshop18.com are websites that comes under
this category. Through these websites individual can purchase clothes,
mobiles and electronic products etc.

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 9
Some of advantages of this model are as follows:
i) Provides better way to deal with suppliers
ii) Provides customer service centres that are physically located
iii) Provides opportunity to return purchase item
iv) Eliminates middlemen

2) B2B (Business to Business): Business-to Business (B2B) e-commerce


model describes electronic transactions between businesses such as
between manufacturer and wholesaler. The major factors in increasing the
acceptance of B2B e-commerce are Internet and dependence of many
business operations upon other businesses for supplying raw materials,
utilities and services. It is very fast developing segment in e-commerce.
Company can check and updates purchase orders, invoices, inventory and
shipping status directly through the Internet.

The advantages of B2B e-commerce model are as follows:


i)Reduces cycle tine of inventory and costs.
ii) Enables business partners to share relevant information timely with
accuracy.
iii) Improves supply-chain management among business partners.
iv) Eliminates manual activities and hence reduces errors.

3) C2C (Consumer to Consumer): Consumer-to-Consumer (C2C) e-


commerce is a business model that facilitates the transactions of product
and services between two consumers. In this e-commerce model,
consumers sell product and services directly to other consumers using
Internet and Web technologies. An individual customer uses classified
advertisements to advertise or promote different products and services on
web or through online auction sites.
E-Commerce Examples: eBay.com, quicker.com, craigslist.org,
gittigidiyor.com. It entails lower cost for both buyer and seller customers.
Using this e-commerce model, customers can also advertise and sell their
products and services to other employees over organizational Intranet.

4) C2B (Consumer to Business): Consumer-to Business (C2B) is an e-


commerce model where consumers (individuals) sell products and
services which are consumed by businesses and organizations. This
model is opposite to B2C model. In this model, price and value for
specific products and services are created by individuals.

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 10
For example: when a customer writes reviews for new product or gives a
useful idea for new product development then he/she is creating value for
the company if the company adopts the review or idea. Company can
facilitate C2B model by setting discussions forums on their websites.
For example: the websites such as www.mobshop.com,
www.pazaryerim.com and www.priceline.com are organizers of C2B
transactions.

5) Business-to-Government (B2G): In marketing context, B2G


marketing is also known as “public sector marketing". It is derived from
B2B marketing and is comprised of activities such as marketing of
products and services to government agencies. Such marketing is
undertaken via various integrated marketing techniques like advertising,
branding, managing public relations, online communication strategies,
etc.

Features of E-Commerce:

1) Ubiquity: E-commerce is widespread, that is, it is available


everywhere always. It sets free market from being restricted to a physical
space and makes it possible to shop from computer (such as desktop,
laptop). The result is called a market space.
For consumers, ubiquity cuts transaction costs for exploring products in a
market. Consumers can acquire any information whenever and wherever
they want, regardless of their location. It is no longer necessary that buyer
spend time and money for traveling to a market. In all, it saves the
cognitive energy needed to transect in a market space.

2) Global Reach: E-commerce technologies enable a business to easily


reach across geographic boundaries around the earth far more
conveniently and effectively as compared to traditional commerce.
Globally, companies are acquiring greater profits and business results by
expanding their business with e-commerce solutions. As a result, the
potential market size for e-commerce merchants is approximately equal
to size of online population.

3) Universal Standards: Universal Standards are standards shared by all


the nations around world. These are technical standards of Internet for
conducting e-commerce. It gives all the ability to connect at the same
"level" and it provides network externalities that will benefit everyone.
Universal technical standards lower entry costs and minimal search costs.

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 11
4) Interactivity: E-commerce technologies permits two-way
communication between customer and sellers which makes it interactive.
It proves as significant feature of e-commerce technology over the
commercial traditional technologies of the 20th century.

5) Information Density: Information density means total amount and


quality of information available over Internet to all market buyers and
sellers. Internet vastly increases information density. Information density
offers better quality information to consumer and merchants. E-
commerce technologies increase accuracy and timeliness of information.
For example, flipkart.com store has variety of products with prices.

6) Richness: Richness refers to the complexity and content of a message.


Richness means all commercial activity and experience, conducted
through a variety of messages. For example, text, pictures, videos, sound,
links, SMS (Short Message Services) etc.

7) Personalization: E-commerce technology offers personalization.


Personalization means designing marketing messages according to
particular individuals by customizing it as per customer personal details
like name, interests, and past purchases record. Products or services can
be modified or altered according to the user's choice or past buying
record.

Advantages of E-commerce:
1. Convenience: E-commerce can occur 24 hours a day, seven days a
week. Although eCommerce may take a lot of work, it is still
possible to generate sales as you sleep or earn revenue while you
are away from your store.
2. Increased Selection: Many stores offer a wider array of products
online than they carry in their brick-and-mortar counterparts. And
many stores that solely exist online may offer consumers exclusive
inventory that is unavailable elsewhere.
3. Potentially Lower Start-up Cost: E-commerce companies may
require a warehouse or manufacturing site, but they usually don't
need a physical storefront. The cost to operate digitally is often less
expensive than needing to pay rent, insurance, building
maintenance, and property taxes.

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 12
4. International Sales: As long as an e-commerce store can ship to
the customer, an e-commerce company can sell to anyone in the
world and isn't limited by physical geography.
5. Easier to Retarget Customers: As customers browse a digital
storefront, it is easier to entice their attention towards placed
advertisements, directed marketing campaigns, or pop-ups
specifically aimed at a purpose.

Disadvantages of E-commerce:
1. Limited Customer Service: If you shop online for a computer,
you cannot simply ask an employee to demonstrate a particular
model's features in person. And although some websites let you
chat online with a staff member, this is not a typical practice.
2. Lack of Instant Gratification: When you buy an item online, you
must wait for it to be shipped to your home or office. However, e-
tailers like Amazon make the waiting game a little bit less painful
by offering same-day delivery as a premium option for select
products.
3. Inability to Touch Products: Online images do not necessarily
convey the whole story about an item, and so e-commerce
purchases can be unsatisfying when the products received do not
match consumer expectations. Case in point: an item of clothing
may be made from shoddier fabric than its online image indicates.
4. Reliance on Technology: If your website crashes, garners an
overwhelming amount of traffic, or must be temporarily taken
down for any reason, your business is effectively closed until the e-
commerce storefront is back.
5. Higher Competition: Although the low barrier to entry regarding
low cost is an advantage, this means other competitors can easily
enter the market. E-commerce companies must have mindful
marketing strategies and remain diligent on SEO optimization to
ensure they maintain a digital presence.

Scope in E-Commerce:
1. Exchange of digitized information: The digitized information
exchange can represent communications between two parties,
coordination of the flow of goods and service, or transmission of
electronic orders. These exchange can be between organizations or
individuals.

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 13
2.Technology-enabled: E-Commerce is about technology-enabled
transactions. Web browsers are perhaps the best Know of these
technology-enabled customer interfaces. However, other interfaces
including automated teller machines (ATMs) also fall in the general
category of e-commerce. Business once managed transactions with
customers and markets strictly through human interaction; In e-
commerce, such transitions can be managed using technology.

3. Customers retention: E-Commerce enables organizations to get


classified and customized market information that helps in retaining
customers through fast order fulfilment and effective customers
relationship management (CRM). End-to-End supply chain management
in e-commerce provides the opportunity the overall flow of demand and
supply and results in fruitful customer’s retention.

4. Accounting: Financial accounting, treasury management and asset


management are best possible in e-commerce because of integrated
database. Financial planning and strategy determination become more
convenient in e-commerce.

5. Supplier integration: For lowering inventory-carrying costs and


broader availability of material and opportunities suppliers network can
be integrated through EDI to implement just-in-time (JIT) inventory
management.

6. Support the exchange: E-Commerce includes intra and


interorganizational activities that support the exchange. The scope of e-
commerce includes all electronically based intra and interorganizational
activities that directly or indirectly support marketplace exchange. In this
sense, we are talking about a phenomenon that affects both How business
organizations relate to external parties’ customers, suppliers, partners,
competitors, and markets and how they operate internally in managing
activities, processes and systems.

E-Marketing:

E-marketing is the marketing of goods and services through the


internet. It makes it easy for businesses to reach a wide range of potential
customers due to the large number of people using the internet today.

E-marketing is crucial for business for a few reasons, as it:

 Allows you to find and target potential customers online


Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 14
 Let’s you more efficiently communicate with your audience
 Personalize your marketing strategy based on customers’ interests
 Increase your brand’s visibility
 Get quality leads actually interested in your product
E-marketing refers to those strategies and methods which utilize online
ways to reach the target and potential customers. Millions of Internet users
access various websites using different tools like computers, laptops,
tablets, and smart or android phone devices. The number of internet users
is increasing day by day. So every business appears to be hopping on the
internet marketing. The internet is the most effective tool for any business
with market leaders. There are many accessible and economical ways on
the internet to boost your business. Successful companies must ask
themselves challenging questions about how to promote their business
online.

Types of E-Marketing:
E-marketing can be broken down into eight main categories:

 Search engine optimization (SEO)


 Pay-per-click (PPC)
 Social media marketing
 Content marketing
 Email marketing
 Mobile marketing
 Affiliate marketing
 Influencer marketing

1. Search Engine Optimization (SEO): SEO helps you achieve organic


(non-paid) traffic from search engines like Google. The goal of an SEO
strategy is to rank as highly on the search results page as possible.

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 15
2. Pay-Per-Click (PPC): Pay-per-click advertising is a digital method
where an advertiser pays a publisher every time the ad is clicked. What
differentiates pay-per-click from SEO is that you have to pay for the
results.

When planned strategically, PPC advertising can increase traffic to a


specific page or site.

The cost of running an ad or promoting your search results will vary


depending on how competitive your keywords are. A keyword with high
competition will likely cost more, while a low-competition keyword will
likely cost less.

Ads can be classified as pay-per-click if they appear on search results


pages, while browsing the web, before YouTube videos, and in social
media.

3. Social Media Marketing: Social media marketing includes everything


a business does through its social media channels to promote its products
or services.

A successful social media marketing strategy requires engaging posts,


interaction with the audience, and consistency.

Ensure that every piece of content you publish serves a distinct purpose
or solves a specific problem for your social media marketing efforts to be
effective.

Examples of social media marketing include posting on Facebook,


Instagram, LinkedIn, Twitter, etc.

Social Media Toolkit to help you accomplish the following:


 Research your competition to inform your strategy
 Distribute your content across social media platforms
 Monitor messages and engage with your audience
 Get analytical insights to improve your results

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 16
4. Content Marketing: Content marketing is a type of e-marketing that
focuses on creating, publishing, and distributing content for an online
targeted audience.

The purpose of content marketing is to increase brand awareness through


storytelling and information sharing and to get the reader to take action
toward becoming a customer, like requesting more information or joining
an email list.

Examples of content marketing include blog posts, white papers, e-books,


podcasts, articles, and case studies.

5. Email Marketing: In email marketing, businesses send out emails to


contacts informing them about products, services, sales, content, etc. Its
high return on investment (ROI) is a vital part of most businesses’
inbound strategy.

Sending out mass emails that “fit all” to your contacts is easy but no
longer effective. Modern email marketing focuses on consent,
segmentation, and personalization. It can build a community around the
brand through a well-designed email marketing strategy.

Marketers should strive to improve two metrics regarding email


marketing software:

1. Open rates (how many people opened an email) and


2. Click-through rates (how many people clicked a link after opening it)

Examples of email marketing include sending out a weekly newsletter


linking to your latest blog post, emailing customers when there is a
limited offer or sale, and emailing your customers about a new product or
service.

6. Mobile Marketing: In mobile marketing, websites, e-mail, SMS,


MMS, social media, and apps are used to reach a target audience through
smartphones, tablets, and other mobile devices.

Some examples include:

 Promotions sent through text messages (SMS marketing)


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 Promotions sent through instant messaging or chat platforms
 Promotions sent through push notifications
 In-app advertisements
 Mobile banner ads

Mobile marketing can help drive brand value and demand for your
products or services by connecting with more consumers in real time at
any point in the customer lifecycle.

7. Affiliate Marketing: Affiliate marketing is a marketing agreement


between a web retailer and an external website in which the retailer pays
the external website a commission for the site visitors or sales generated
by its referrals.

Affiliate marketing allows businesses to effectively market their products


at a low cost and effort, with high return on investment and increased
brand awareness and business growth.

8. Influencer Marketing: Influencer marketing refers to the partnership


between a brand and an influencer. Influencers receive payment and/or
products in exchange for creating or sharing content about a brand with
their followers.

It doesn’t necessarily need to reach out to the influencer with the largest
following. It can actually be more beneficial to find an influencer within
the niche with a high engagement rate.

Features of E-marketing:

1. E-marketing Is Cheap Than Traditional Marketing: Comparing


its cost with traditional marketing media such as newspaper ads
and billboards is much more reasonable and efficient. You can
reach a wide range of audiences with minimal resources.

2. Tangible ROI: Small business owners can now check the turnover
rate with the help of Keep. It explores numerous things like views
of videos, the number of emails opened, and per click on the link.
Most importantly, it notifies that how much sales the business has
made due to e-marketing.
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3. 24/7 Approach: It works 24 hours a day, seven days a week, and
365 days a year. Whether its homesick, sleeping, or attending
casual meetings, it doesn’t matter, but e-marketing is always hard
at work.

4. Eliminate Follow-up Failure: Elimination of follow-up-failure is


the main secrete behind the success of the small business. It is done
by entering your business figures into the Keap. Then its automatic
marketing system will provide custom-tailored details about your
business, which areas to enhance, and what product to quit.

Advantages of E-marketing:

1. Fast Response: The response rate of internet marketing is fast; for


example, you upload something, and it goes viral. Then it would
reach millions of people overnight.

2. Cost-Efficient: Compared to the other media of advertising, it is


more reasonable. If you’re using unpaid methods, then there is
almost zero cost.

3. Less Risky: What does one have to lose when your cost is zero,
and the instant rate is high? No risk at all.

4. Greater Data Collection: In this way, you have a remarkable


ability to manage a broad range of data about your customers. You
can use these customer details later.

5. Interactive: One of the essential elements of digital marketing is


that it’s very interactive. People can leave their comments, and
you’ll get feedback from your target market.

6. Way to Personalized Marketing: Online marketing opens the


door to personalized marketing. With the proper planning and
marketing strategy, customers feel that this ad is directly speaking
to them.

7. Greater Exposure to Your Product: Going viral with one post


can provide greater exposure to your product or service.

8. Accessibility: The beauty of the online world and e-marketing is


that it’s available from everywhere all over the world.

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Disadvantages of E-marketing:

1. Technology Dependent: E-Marketing is entirely dependent on


technology and the internet; a slight disconnection can risk your
whole business.

2. Worldwide Competition: When you launch your product online,


you face global competition because it’s available everywhere.

3. Privacy & Security Issues: Privacy and security issues are very
high because your information is open to everyone; therefore, one
has to be very careful about what goes online.

4. Higher Transparency & Price Competition: When privacy and


security issues are high, you must spend a lot to be transparent.
Price competition also increases with higher transparency.

5. Maintenance Cost: With the fast-changing technological


environment, you have to grow consistently with the speed of
technology, and the maintenance cost is very high.

Electronic Data Interchange (EDI):

Electronic data interchange (EDI) is a technology used for sending


business documents between organizations. Through the exchange of
structured, digital documents, EDI enables data to be quickly and
accurately moved from one computer to another.

EDI is a secure, reliable way to exchange necessary business data quickly


and accurately. It streamlines processes by automating many of the
manual tasks associated with traditional data exchange.

By providing a secure, efficient means of exchanging data between


companies, EDI eliminates much of the manual effort that was previously
required to transmit data manually. It also reduces errors due to its
automated nature and can save both time and money spent on labour costs
associated with manual processes.

With increased accuracy and speed of data transfer, businesses can access
important customer information more quickly and accurately than ever
before.

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EDI transactions consist of both hardware and software components that
are used to send messages between computers. The most common form
of EDI is based on standard documents such as purchase orders, invoices,
and shipping notifications.

These documents are created in a specific format that can be interpreted


by the recipient’s system. Once sent, the data is validated against
predefined rules to ensure accuracy.

The use of EDI standards helps ensure the security and reliability of data
exchanges across different systems, networks, and eCommerce platforms.
Additionally, these standards provide a framework for establishing
uniform practices for exchanging information within an organization or
between business partners.

EDI formats also define how data elements within messages must be
organized, formatted, and validated.

The EDI process involves sending electronic messages from one system
to another via an EDI network. An EDI network acts as an intermediary
between business partners and provides them with secure links for
exchanging data.

After the message has been sent, it must be processed by each trading
partner’s system before it can be used for further actions or decisions.
Once the message has been processed, both parties can take appropriate
action based on the information contained in the message.

Benefits of the EDI Format:


1. Increased Efficiency: EDI automates the exchange of business
documents between business partners, reducing manual processing
and improving efficiency.
2. Improved Accuracy: EDI eliminates errors that can occur during
manual processing, leading to more accurate data exchange and
improved business processes.
3. Enhanced Communication: EDI provides a standardized
electronic format that is easily understood by both parties, reducing
misunderstandings and improving communication.
4. Real-Time Inventory Updates: EDI automates the exchange of
inventory data between business partners, providing real-time
updates on inventory levels and enabling informed decision-
making.

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5. Improved Order Fulfilment: EDI automates the exchange of
order data between business partners, reducing processing times
and improving accuracy, leading to faster and more accurate order
fulfilment.
6. Cost Savings: EDI eliminates the need for manual processing of
paper-based documents, reducing labour costs and improving
efficiency, leading to cost savings and improved profitability.
7. Competitive Advantage: The use of EDI in eCommerce can
provide a competitive advantage by improving operational
efficiency and enhancing the customer experience.

Challenges of EDI:
 Initial Setup: Setting up an EDI system may require a significant
financial investment for software purchase and implementation, which
can be prohibitive for smaller companies.
 Maintenance: An EDI system needs regular maintenance and updates
to keep up with changing technologies, which adds to the cost burden.
 Training: Employees need to be trained on how to use an EDI system,
which may require significant time and resources.
 Software Incompatibility: Different organizations may have different
versions of software or standards that can cause data entry errors if
they do not match exactly.
 Human Error: Manual data entry is more prone to mistakes than
automated processes. Also, employees need to understand the rules of
data entry in order for it to be accurate and successful.
 Technology Failure: If there is a technology failure, such as a power
outage or server crash, any data that has not been backed up or saved
could be lost.

The potential problems associated with EDI cannot be overlooked.


Companies need to weigh these issues against the advantages that EDI
provides in terms of speed and accuracy before deciding whether it is
right for them.

The Benefits of EDI and eCommerce Together:


 Improved Efficiency: Streamlining data exchange processes helps
reduce manual labour costs associated with order processing and
inventory management.
 Increased Speed: Automating document transmissions decreases the
time used on manual tasks such as manually entering data into multiple
systems.

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 Increased Accuracy: Automation reduces errors due to manual
inputting of data into various systems which results in fewer
discrepancies between parties involved in transactions.
 Reduced Cost: Reducing time spent manually entering data saves on
labour costs associated with manual processes. Additionally,
automating document transmissions eliminates printing costs
associated with physical documents.
 Reduced Risk: Automating data transfers increases accuracy while
reducing errors associated with manual entry of data across multiple
systems which reduces risk for all involved parties.

Types of EDI:
EDI can happen in various ways depending on the business use case and

the parties exchanging the information (usually financial data and related
documents).

The most notable types of EDI transactions are:

Internet Commerce:

Internet Commerce is the use of the Internet for all phases of creating and
completing business transactions. Various surveys suggest that the
amount of business conducted online will increase ten-fold over the next
few years, from around $500 million in 1996 to over $6 billion in 2000.
However, this still represents less than 10 per cent of the business
conducted by mail order.
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In our view too much focus of electronic commerce to date has been put
on carrying out the final transactional phases - the ordering and payment.
While such a perspective is all right when there are established supply
chains for regular and routine purposes, this overlooks the wider
perspective. It is often said, that the formal placement of an order is
preceded by as many as 30 previous information exchanges. Thus, in its
broadest sense we view Internet Commerce as also including:

 The full sales and marketing cycle - for example, by analysing


online feedback to ascertain customer's needs
 Identifying new markets - through exposure to a global audience
through the World Wide Web
 Developing ongoing customer relationships - achieving loyalty
through ongoing email interaction
 Assisting potential customers with their purchasing decision -
for example by guiding them through product choices in an
intelligent way
 Providing round-the-clock points of sale - making it easy for
buyers to order online, irrespective of location
 Supply Chain Management - supporting those in the supply
chain, such as dealers and distributors, through online interaction
 Ongoing Customer Support - providing extensive after-sales
support to customers by online methods; thus increasing
satisfaction, deepening the customer relationship and closing the
selling loop through repeat and onging purchases.

This wider perspective of Internet Commerce - as an ongoing iterative


relationship that uses email, discussion lists, and other Internet facilities
as well as the World Wide Web - is the strategy of most successful
'Netrepreneurs'. As in other marketing, the main categories of Internet
Commerce are business-to-business and business-to-consumer.

Features of Internet Commerce:


 Information-intensive products
 Medium to high value
 Global in applicability
 May require sourcing or delivering at a distance
 Often highly specialised
 Dispersed potential customer base
 Are attractive to Internet early adopters

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Opportunities and Benefits:

Those who trade via the Internet cite the following benefits:

 Timeliness - Your Web site is accessible round the clock. Email


queries can be handled more expeditiously and completely than is
often possible by mail or phone.
 Reduced Marketing Costs - Online catalogues are cheapre to
produce and maintain that paper catalogues.
 Better Targetting - Internet communities are self selecting. People
with particular interests tend to visit particaulr places in
Cyberspace. Customers find you, rather than vice versa.
 Greater Market Reach - Distance is no object. Sending
information or exchanging messages costs virtually the same as
someone locally. You don't need to pay expensive courier bills.
 Reduced communications costs - With electronic networking it
cost virtually the same to send a message to 100 people as to one.
 Improved After Sales Service - By providing online support,
customers can serve themselves for many of the common post-
sales information needs.

Produce a generic framework for E-Commerce:


E-Commerce framework is related to software framework for E-
Commerce applications. They offer an environment for building e-
commerce applications quickly. They are flexible enough to adopt them
to the specific requirement.

They define:

• Define the general program flow


• Consist of reusable components
• Be organized in functional domain.

Features of framework for E-Commerce:


• Quality search functionality: This is one of the functions which
play a very big role in the market with search functions that help in
conversion rates. Basically this function is kind of filtering which

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processes keywords and help you to get precise effect over search
and into sales too.
• Content management system: It is the system which makes your
website unique in searches across the global markets. This is one of
the features which highly impact over the website as speed key to
efficiency.
• Multi-channel functionality: In current retail market and
environment, it is highly considered that the business is spread all
across global and though it is possible to get done through
managing products, listing and orders in a multi-channel
environment.
• Mobile supported E-Commerce: The fact is that everyone is
looking forward to have easy browsing on mobile than to go for
getting an efficacious platform, which will surely help to grow user
and customer’s attraction.
• Third party system and plug-ins: It must have ability to use the
third party plug-ins which is meant to provide adaptability,
customization and innovation. These features can be used while
developing a website and though some may not be the part of the
standard package.
• Business intelligence: When it comes to managing the data, it is
mandatory to get precise and accurate details over the data. The
tempo should be maintained while managing the data, business
intelligence helps to get that done on the website because only
through the tempo and flow, will be able to analyses the depth of
transactions and then take advantages of the opportunities that
comes up.

Architectural Framework for Electronic Commerce:


• The architectural framework of e-commerce refers to the structural
design and components that collectively enable the functionality of
an e-commerce system.
• It involves various layers and elements working together to provide
a seamless and secure online shopping experience for both
businesses and customers.
• This architectural framework is the backbone of e-commerce
systems, ensuring that online stores are functional, secure, and
capable of delivering a smooth shopping experience to customers
while also enabling efficient management for businesses.

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To sell and buy the goods and services we have to develop a system that
helps the seller to connect with customers or customers can connect with
multiple sellers. For this, we developed different E-Commerce
architectures. E-commerce architectures have evolved from simple
client-server models to sophisticated multi-tier architectures in order to
support the massive growth in online transactions and demands for
scalability. The separation of concerns between presentation, business
logic and data tiers enables E-commerce platforms to be highly robust,
secure and extensible.Key architectural patterns like service-oriented
architecture (SOA), microservices and the use of cloud computing have
further increased flexibility and scalability of modern E-commerce
platforms. Companies can now quickly provision or deprovision
computing resources from the cloud to handle changes in traffic.

E-Commerce Architecture types


 Client-Server Architecture
 Two-Tier Architecture
 Three-Tier Architecture
Client-Server Architecture
In this architecture, the client(browser) sends the requests to the server,
and the server processes the request if a request is valid then it responds
with the requested data to the client. The client hosts the user
interface(UI) while the server hosts the business logic and database.
Advantages:
 This architecture has a clean separation of concerns between the client
and server.
 The server becomes overloaded with many client requests.
 It is easy to manage, and the data can be easily delivered to the client.
Disadvantages:
 Clients systems can get a virus or any malicious scripts if any are
running on the server.
 Extra security must be added so that the data does not get spoofed in
between the transmission.
 The main problem can be server down. When the server is down, the
client loses its connection and will not access the data.

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Two-Tier Architecture
The two-tier architecture have consist of mainly two components:
1. Client layer: It consists of the web browser, mobile application, or the
other UI that user interacts with.This front-end client makes requests
to the server.
2. Server layer: It handels both the application logic and data
storage/management.This single back-end server acts as a both the
application server and the database server.
Advantages:
 It is simple to develop and deploy
 The client only communicates with one backend system
 All data logic and validation is handled on the server
Disadvantages:
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 The server has to handle client requests, business logic and data
storage. This can result in performance bottlenecks.
 Scalability is limited since it is not easy to scale client and data tiers
independently.
 Less flexibility since presentation and data logic are coupled on the
server side.

Three-Tier Architecture
The three-tier architecture is best architecture to develop a good E-
commerce site. In three-tier architecture we seprates database and server
that eliminate the problems we found in two-tier architecture. Three-tier
architecture separates the presentation(UI), business logic and data
storage layer into three distinct tiers.
 Client tier: Client tier is frontend layer consisting of components like
a web browser, mobile application or other interfaces. This layer sends
the users request and displays the response of server.
 Middel tier: This application server layer handles all the business
logic and computational tasks. It receives requests from the client,
communicates with the database to get or update data,performs
calculations and other application specific tasks, and passes results
back to the client.

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 Data tier: This backend layer consists of the database servers that
store and manage data. It can be a relational database like Oracle or a
NoSQL database like MongoDB. The application server uses
protocols like JDBC, ODBC to interact with this database tier.
Advantages:
 Separation of concerns between tiers makes application modular,
flexible and easier to maintain.
 Each tier can scale independently to handle increasing loads.
 Web server can connect to multiple app servers, which in turn can
connect to multiple database servers, allowing high scalability.
 Supports redundancy and failover capabilities for high availability.
Disadvantages:
 It can introduce complexity into a project. Managing three separate
layers (presentation, application, and data) can be challenging,
especially for small-scale applications, and it might lead to increased
development and maintenance costs
 The additional layers can introduce performance overhead. Each
request or transaction has to pass through the different tiers, which can
slow down the system, particularly if there’s a lot of data to be
transferred between layers
 Scaling can be more challenging in a three-tier architecture. While it’s
possible to scale each layer independently, it often requires significant
effort and resources to ensure that the system scales seamlessly
 Communication between layers can introduce latency in the system.
When requests and responses need to traverse multiple layers, it can
result in slower response times

Components of E-Commerce Architecture


Client Tier
This front-end tier consists of the interfaces customers interact with to
shop online. It includes:
 Web browser: The web app frontend accessible from a browser.
 Mobile app: Native iOS or Android apps for mobile shopping.
 Payment gateways: For processing credit card and online payments.
Web Server Tier

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The web server tier handles HTTP requests from clients:
 Web servers like Apache, Nginx serve the website pages and assets.
 Application servers like Tomcat, JBoss host the backend application
logic.
 Reverse proxy servers provide security, load balancing, and caching.
Application Tier
This middleware tier implements the core business logic:
 Components for catalog management, order processing, inventory
management.
 Application middleware and services.
 Authentication, authorization and accounting systems.
Database Tier
 This back-end tier stores and manages all data:
 Relational databases like MySQL, Oracle, and SQL Server.
 NoSQL databases like MongoDB for big data storage.
 Caching systems like Redis and Memcached.
 Data analytics systems.
Advantages of E-Commerce Architecture
 Scalability: The architecture allows each component like web servers,
app servers and databases to scale up or out independently to handle
increasing traffic and load.
 Availability: E-commerce architectures often incorporate redundancy
and failover to ensure high uptime. For example, multiple web servers
can be provisioned behind a load balancer for redundancy.
 Performance: Caching mechanisms like Redis and CDNs help boost
performance by reducing load on the databases. Asynchronous
processing and message queues also improve response times.
 Security: Firewalls, SSL encryption, access control and other security
mechanisms can be incorporated in the architecture. Segregation of
components also limits damage in case of breaches.
 Maintainability: Modular tiers and well-defined interfaces between
components allow easier maintenance and upgrades. Individual tiers
can be modified without affecting others.
 Flexibility: Components can be provisioned and scaled dynamically
to account for traffic fluctuations. Cloud infrastructure provides
flexibility to spin resources up and down.
 Cost efficiency: Scalable architecture implemented on cloud
infrastructure allows paying only for required resources reducing
overall costs.
 Reliability: The architecture can incorporate redundancies and
failover to deliver reliable services with minimal downtime.
 Compliance: Architecture can be designed to comply with regulations
related to data security, privacy etc.

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Applications of E-Commerce Architecture
 Online retail: E-commerce architectures are most commonly used to
build online retail stores and shopping websites like Amazon,
Walmart, eBay etc.
 Travel portals: Airlines, hotels, car rentals, and travel aggregators
like Expedia use E-commerce architectures for their booking
platforms.
 Food delivery: Food ordering and delivery platforms like Grubhub,
Seamless leverage these architectures.
 Media streaming: Netflix, Hulu and other video/music streaming
applications are built using E-commerce architectures.
 Marketplaces: Architectures power multi-vendor marketplaces like
Etsy, Craigslist.
 On-demand services: Uber, Lyft, UrbanClap and other on-demand
platforms use these architectures.
 Crowdfunding: Crowdfunding sites like Kickstarter and GoFundMe
are also built on similar models.
 SaaS delivery: SaaS services leverage E-commerce architectures with
payment gateways integrated to support subscription billing.
 Gaming: In-app purchases in games rely on E-commerce flows in the
game’s architecture.

Web based Ecommerce Architecture:

Web-based E-commerce is one of the fastest-growing segments of the


technology that defines the business strategy. Web-based E-commerce
provides easy and better communication between geographically
separated buyers and sellers. E-commerce is a way of doing business by
enabling better interaction among customers, business partners and
business relationship managers using electronic tools. The Web provides
an array of electronics tools such as e-mail and Web pages for E-
commerce and its related processes. Web-based E-commerce continues to
improve convenience and versatility using increased processing power
and expanded cellular capabilities and makes it more reachable to the
customers.
To design a Web-based E-commerce architecture, the following steps are
performed:

1. Planning for Web-based E-commerce architecture.

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2. Understanding the roles of buyers and sellers.
3. Analyzing the requirements of buyers and sellers.
4. Resolving the issues in Web-based E-commerce.

1. Planning for Web-based E-commerce architecture: The basic idea


of designing and building of any architecture is not only to describe the
computational steps but also the description of task. To design the
architecture of a Web-based system, the following points must be kept in
mind:
1. Understanding the various roles and the kinds of users to ensure that
the maximum users can get the maximum advantages of the system to
accomplish their aim Understanding the functions of the different
modules of the system and their interfaces, i.e. how the different
functions perform a special task by exchanging information and how the
functions are related to each other in a single unit
2. Recording the links of the transaction details of the business in a
database. The transaction details contain information such as transition
type, purchased item information, i.e. price, item identification and stock
information.
3. Specifying the trust model for the system: Every system must have at
least an implicit trust model that helps maintain the security of the system
by providing the details of the relationships between the components.

2. Understanding the roles of buyers and sellers: As a Web-based E-


commerce system is used by different users for different purposes, the
roles of the buyers and the sellers need to be considered. The roles
consideration helps you to recognize the various operations in designing
and analysing the architecture of-a Web-based Ecommerce system that
satisfies all the requirements of the business.
Roles of a buyer: In Web-based E-commerce, customers have different
roles with respect to the services they require or the action they perform.
A buyer plays the roles of a Specifier, an approver and a recipient. A
specifier selects' the hem to be "purchased, an approver is the person who
agrees for purchase and a recipient is the person who gets the delivered
items and services. Buyers' roles are also distinguished according to the
relation with the seller such as anonymous buyers and member buyer. An
anonymous buyer is a walk-in buyer who uses the system to deal with the
seller only once for a simple purchase. A member buyer establishes a
membership with the seller by repeatedly purchasing goods.

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Roles of a seller: On the other side of Web-based E-commerce, the
sellers also have many roles on the basis of the responsibility assigned to
the person in the company. The most important business roles are as
follows:
a. Business manager: They are responsible for all the business
approaches such as deciding on-line products and services,
determining pricing and establishing business relationships. The
success of on-line business mostly depends on this role.
b. Internet commerce architect and the systems analyst: They create
and manage the contents of the transaction process, the technical
needs of the
buyer and all the outer business requirements into a system design.
c. Content designer: They are concerned about the look and feel of
the Web-based E-commerce system such as graphic designs, page
layout and user experience.
d. Content author: They work within the design of the content
designer by creating and adapting the product information to a
form.
e. Implementer: An implementer implements the software and the
program, which are used to work with the Web-based E-commerce
system.
f. Database administrator: They are responsible for maintaining the
correctness, consistency and integrity of data stored in t database.
g. Sales and marketing team: They focus on all the efforts to promote
Inter-net-based E-commerce.
h. Buyer service representative: Buyer service representatives handle
all the buyer dealings.

3. Analysing the requirements of buyers and sellers: The different


requirements of buyers and sellers affect Web-based E-commerce
applications. .Web-based E-commerce systems include a client system, a
merchant system, a transaction system and a payment gateway. A client
system is a computer system that is connected directly or indirectly to the
Internet and always used by buyers for browsing and purchasing items. A
merchant system is the computer system that contains the electronic
catalogue of the sellers of online goods or products. A transaction system
is the computer system that processes an order and stores the information

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 34
about the transactions. A payment gateway is the computer system that
controls the financial networks—for example, authorization and
settlement of credit cards used by the buyers.
Requirements of a buyer: The Web-based E-commerce architecture is
influenced by the structure and presentation of the Website and the
facilities provided by the Web browsers that are commonly used by
buyers to deal with sellers. Client wallets are used for different payment
methods—such as cash and E-payment—by keeping track of the
transactions. These payment methods require additional processing such
as cryptographic operations. This application is used by only a few
buyers, so they are irrelevant for most of the Web-based E-commerce
systems. Some buyers use third-party systems such as server-side wallets
that are Websites used for buyer payment credential registration for the
sellers without using special client software.
Requirements of a seller: In a Web-based E-commerce architecture, the
seller is involved in all the stages of E-commerce sales life cycle. Two
things are common for every Web- based E-commerce architecture: one,
creative presentation of products and two, payment service. Some of the
seller requirements are stated as follows:
• Content management system is responsible for the creation and
management of dynamic updated contents of the Website and the whole
Web presentation.
• Transaction processing system is used to track the transaction
information such as item, buyer, cost of item, type of the payment and
status of the service.
• Payment processors control the money movement. For example, in the
credit card payment system, the seller connects to a credit card processor
for the authorization.
• Fulfillment systems are used to handle the packing and the shipping
orders of the deliverable products.

4. Resolving the issues in Web-based E-commerce: Before designing


an Internet-based E-commerce application, a developer must consider the
various issues that will arise if the problems are not handled on time.
Security is a very important aspect of any Web application; therefore, if a
developer does not consider points of security, the application might fail
to deliver the desired services to its full potential. On the Internet, buyers
are always concerned about their social security number and credit card
details. Other than E-commerce security, there are some other issues,
which are as follows:

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 35
1. Security issues
2. General issues
3. Legal issues

Deepa M, Asst., Prof.,, Dept., of Com., & Mgt., Vvfgc., Mysuru. Page 36

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