Unit - I

E- commerce
concepts
E-COMMERCE – ANYTIME
COMMERCE
E-Commerce stands for ‘Electronic Commerce’. E-
Commerce is also known as ‘Internet Commerce’.It
refers to buying and selling of goods,products, or
services over the internet.
E-commerce as anytime commerce is the ability to
buy and sell goods and services online at any time of
day or night, from anywhere in the world. This is made
possible by the fact that e-commerce websites are
hosted on the internet, which is accessible 24/7.
E-commerce is a powerful tool that can be used to
improve the customer experience and increase sales. It
allows customers to shop whenever they want,
regardless of their time zone or work schedule. This can
be especially convenient for people who work long hours
FEATURES OF E-COMMERCE
Some of the features of E-Commerce are as
follows:
 Cashless Payment:It allows the transaction
from credit cards, debit cards, electronic fund
transfer via bank's website,and other
electronic payment methods.
 24x7 Availability:E-Commerce provides 24x7
service availability
 Improved Sales:Using e-commerce, orders
for the products can be generated anytime,
anywhere without any human intervention
 Advertising and Marketing
 Support: E-commerce provides various ways
to provide pre-sales and post-sales assistance
 Improvement in Communication:
Gives faster, efficient and reliable
communication with customers and
partners.
 Global Reach: It enables a business to
easily reach across geographic
boundaries.
DIMENSIONS OF E-COMMERCE
The dimensions of e-commerce refer to the
different aspects of e-commerce that
businesses need to consider in order to be
successful. These dimensions include:
 Products and services: The products
 Customers: The people who buy
products and services online. This
includes both individuals and businesses.
 Businesses: The companies that sell
products and services online. This
includes both large retailers and small
businesses.
 Technology: The technology used to
create and maintain an e-commerce
website or platform. This includes the
hardware, software, and
telecommunications infrastructure.
 Content: The content that is used to
attract and engage customers. This
Marketing: The strategies used to
promote an e-commerce website or
platform. This includes search engine
optimization (SEO), pay-per-click (PPC)
advertising, and social media marketing.
Shipping: The methods used to deliver
products to customers. This includes
shipping carriers, shipping rates, and
shipping tracking.
Payment processing: The methods used
to process payments from customers. This
includes credit cards, debit cards, PayPal,
and other payment methods.
phone support.
 Security: The measures taken to
protect customer data and prevent
fraud. This
includes encryption, firewalls, and fraud
detection software
Here are some of the key trends that are
shaping the dimensions of e-commerce:
The growth of mobile commerce: More
and more people are shopping online using
their mobile devices. This is driving the
growth of mobile commerce, which is the
buying and selling of goods and services
through mobile devices.
e-commerce. Businesses are using social
media to promote their products and
services, connect with customers, and
drive sales.
 The increasing importance of data
analytics: Businesses are using data
analytics to better understand their
customers and their needs. This data can
be used to improve the customer
experience, target marketing campaigns,
and make better business decisions.
 The growth of cross-border
commerce: More and more people are
shopping online from other countries.
E-COMMERCE BUSINESS MODELS /
TYPES OF
E-COMMERCE
Nowadays e-commerce has become very
popular among the people who want to
buy and sell different things online.
There are basically four main types of e-
commerce models that can describe
almost every transaction between
Consumers (C) and Businesses (B).
(1) Business to Consumer (B2C)
(2) Business to Business (B2B)
(3) Consumer to Consumer (C2C)
(4) Consumer to Business (C2B)
(1) Business to Consumer (B2C)
In Business-to-Consumer (B2C) e-commerce, the
company will sell their goods and/or services
directly to the consumer.In this type of e-
commerce, customers or consumers visit the
company’s website and look at products, pictures
and read reviews there. Then they place their
order and the company ships the goods directly
to them.
Example: An example of
B2C e-commerce would be
someone buying a pair of
shoes
online from Amazon or eBay.
2) Business to Business (B2B)
In Business-to-Business (B2B) e-commerce,
the companies are doing business with
each
other. B2B takes place between two
businesses where one business provides
services to
other business.
In this type of e-commerce, the final
consumer is not involved. The online
transactions
only involve the manufacturers,
wholesalers, retailers etc.
Example: A wholesaler places an order from a
company's website (manufacturer) and after receiving
the consignment, sells the end product to the final
customer who comes to buy the product at one of its
retail outlets.
(3) Consumer to Consumer (C2C):

In Consumer -to- Consumer (C2C) e-commerce, the

consumers are in direct contact with each other. No
company is involved. It helps people sell their personal
goods and assets directly to an interested party. C2C e-
commerce takes place between two consumers where
one consumer sells an item through an online auction
while the other consumer purchases the item by offering
Example: CUSTOMER 1 wants to sell a car, so he/she
can place his/her car on a website like- OLX or eBay, while
the CUSTOMER 2 wants to buy that car. So, the
CUSTOMER 2 can contact CUSTOMER 1 and buys the
car from him/her.
(4) Consumer to Business (C2B): This is the reverse of
B2C; it is a Consumer to Business.In Consumer -to-
Business (C2B) e-commerce, the consumer provides a
good or some service to the company. In this business
modethe consumer creates value, and the
business consumes that
value.
Example: A customer
places some of their services or products on the
website.If theservices or
products create value for
the business organization,
then they order these services or
When the deal is done,they receive services
orproducts, and the customer receives money.,
the consumer creates value, and the business
consumes that value.
M-COMMERCE – CONCEPT
M-commerce, also known as mobile commerce, is
defined as the process of conducting business
transactions using portable mobile devices
connected over wireless networks. The business
transactions can range from buying and selling
goods to mobile payments,downloading
audio/video content, playing online games, using
numerous software
applications and purchasing mobile tickets.
Mobile devices include cell phones, handheld
computers such as palmtops or tablets,
“Mobile commerce means doing commercial
transactions such as online banking,paying bills or
making purchases using wireless devices like-
mobile phones or tablets online.”
You can’t use your laptop or PC (Personal Computer)
everywhere, but you can use your mobile phones easily.
You can do online shopping while travelling, transfer
money easily with the help of mobile phones. Thus, this
wireless solution is very much helpful and rising
day by day.
Powered by emerging technology based on Wireless
Application Protocol (WAP), m commerce uses web-
enabled micro-browsers in these mobile devices to surf
the internet anytime, anywhere in the world. WAP-enabled
smartphones with Bluetooth technology
provide the user with FAX, e-mail and telephone functions
to facilitate business transactions in transit. Such
smartphones are becoming so popular that most business
cheaper. The reservation of flight/train/bus tickets via
mobile devices saves time and offers security for
numerous passengers.
Such services are gradually making m-commerce as the
method of choice for performing digital business
transactions. For these reasons, m-commerce is
sometimes referred to as next generation e-commerce.
M-commerce is actually just a subset of e-commerce. It is
a fast growing sector of e-commerce. The only difference
is that users don’t require a laptop or PC for this purpose.
They can use portable devices like- smartphones and
tablets. This way, users can access online shopping sites
as well as other online services anywhere and any
time .M-commerce can be categorized by function as-
mobile shopping, mobile banking or mobile
payment.
Mobile shopping allows a customer to purchase a product
online from a mobile device
M-COMMERCE: AN INFORMATION SYSTEMS
PERSPECTIVE
M-commerce from an information systems perspective
refers to the integration of mobile technologies and
systems into e-commerce processes, enabling users to
conduct business
transactions using mobile devices. It involves the use of
wireless networks and mobile applications to facilitate
buying, selling, and exchanging of goods and services.
Here are some key concepts related to m-
commerce from an information systems
perspective:
 Mobile Devices and Platforms: M-commerce
heavily relies on mobile devices like smartphones,
tablets, and wearables. These devices come with various
operating systems (iOS, Android, etc.) and require
compatible mobile applications to engage in mobile
transactions.
offers.
 Mobile Payment Systems: M-commerce payment
systems allow users to make payments for goods and
services using their mobile devices. These systems
include mobile wallets, NFC-based payment methods, and
mobile banking apps.
 Mobile Shopping and User Experience: The focus of
m-commerce is to provide users with a seamless and
convenient shopping experience on mobile devices. User
experience (UX) is a critical aspect, ensuring that the
mobile interface is userfriendly, responsive, and tailored
to the specific needs of mobile users.
 Mobile Marketing and Personalization: M-
commerce leverages mobile marketing strategies to reach
a wider audience. Location-based services and user data
analysis enable personalized marketing messages,
promotions, and recommendations for
individual users.
 Mobile Analytics and Customer Insights:
Information systems in m-commerce collect and
analyze data from mobile transactions and interactions.
This data helps businesses gain valuable insights into
customer behavior, preferences, and purchasing
patterns, aiding in decision-making and marketing
strategies.
 Mobile Supply Chain Management: Information
systems play a vital role in managing the mobile supply
chain. Mobile technologies help track inventory,
streamline logistics, and enable real-time
communication between stakeholders involved in the
supply chain.
 Integration with E-Commerce Systems: M-
commerce information systems often need to integrate
with existing e-commerce platforms and backend
systems. This integration ensures seamless data flow,
consistent customer experiences, and unified
enhance their loyalty.
 Mobile Social Commerce: Social media integration is
increasingly significant in mcommerce. Social
commerce features leverage social platforms to
facilitate product discovery, user reviews, and sharing,
enhancing user engagement and trust.
 Mobile Innovations and Emerging Technologies:
As technology evolves, mcommerce information
systems must adapt to new innovations such as
augmented reality (AR), virtual reality (VR), and voice-
based interactions to enhance the overall mobile
shopping experience.
M-COMMERCE: ANYTIME, ANYWHERE COMMERCE
M-commerce, often referred to as "anytime, anywhere
commerce", is a form of electronic commerce that
enables users to conduct business transactions using
mobile devices, such as smartphones and tablets,
regardless of their location or the time of day. It
a desktop computer. This is a major advantage over
traditional
e-commerce, which is typically limited to the home or
office.
The key characteristics of "anytime, anywhere commerce"
are as follows:
 Mobility: M-commerce leverages the mobility of
smartphones and other portable devices, enabling
users to shop and interact with businesses on the go.
Users can access online stores and services from
virtually anywhere, as long as they have a reliable
internet connection.
 Convenience: M-commerce offers unparalleled
convenience for consumers. Whether they are
commuting, waiting in line, or relaxing at home, users
can access ecommerce platforms and make purchases
instantly, without the need to visit a physical store or
use a desktop computer.
 Personalization: M-commerce platforms often employ
personalization techniques, using data from user
interactions and behavior to offer tailored product
recommendations, promotions, and discounts.
 Mobile Payment Solutions: M-commerce relies on
mobile payment solutions to facilitate secure and
convenient transactions. Mobile wallets, digital
payment apps, and other contactless payment methods
make it easy for consumers to complete purchases with
just a few taps on their mobile devices.
 Location-Based Services: M-commerce leverages
location-based services to provide users with localized
information, such as nearby stores, deals, and
promotions based on their current location.
 Real-Time Communication: Mobile devices enable
real-time communication between businesses and
customers. This allows for immediate customer support,
order updates, and feedback.  Integration with other
reality (AR) and virtual reality (VR), to enhance the
shopping experience and bridge the gap between the
digital and physical worlds.
 Social Commerce: Social media platforms play a
significant role in m-commerce, enabling businesses to
engage with customers and leverage user-generated
content to influence purchasing decisions.
 Seamless User Experience: The success of anytime,
anywhere commerce relies on providing a seamless
user experience across different mobile devices and
operating systems. Mobile applications and websites
must be user-friendly, responsive, and easy to navigate
 Global Reach: M-commerce breaks geographical
barriers, allowing businesses to reach a global
audience. Customers from different parts of the world
can access and interact with online stores, expanding
the market reach for businesses.
IMPACT OF MOBILITY ON E-COMMERCE
The advent of wireless and mobile technology and the
rapid arrival of mobile devices in modern society have
created new opportunities for the corporate world.
In general, mobile commerce or m-commerce is viewed
as an extension of traditional internet-based e-commerce.
The impact of mobility on e-commerce has been
significant.
Mobile devices have become increasingly popular, and
people are using them to shop online more and more.
However, because the number of mobile device owners is
far larger than that of internet users, mobile commerce
has a huge impact on the daily activities of
both customers and business owners. In fact, m-
commerce is now a major part of the ecommerce
landscape.
There are a number of reasons why mobility has had such
a big impact on e-commerce.
This is a major advantage over traditional e-commerce,
which is typically limited to
the home or office.
 Second, mobile devices are becoming more powerful
and feature-rich. This means that we can now shop
online using a wider range of features, such as touch
screens, cameras, and GPS. This makes the shopping
experience more convenient and enjoyable.
 Third, mobile payment methods are becoming more
popular. This makes it easy and secure to make
purchases online using our mobile devices
Here are some of the specific impacts of mobility on e-
commerce:
 Increased Sales: Mobile commerce has led to
increased sales for many e-commerce businesses. This
is because mobile devices make it easier for people to
shop online, and because more people are using mobile
devices to shop.
 Anytime, Anywhere Shopping: As mentioned earlier,
mobility enables "anytime, anywhere" commerce.
Consumers can shop and make purchases 24/7, without
being restricted to traditional store hours. This
convenience has led to increased online shopping
activity and higher sales for e-commerce businesses.
 Improved Customer Service: Mobile commerce has
also helped businesses to improve customer service.
This is because businesses can now use mobile devices
to provide customer support 24/7.
 New Business Models: Mobile commerce has also led
to the development of new business models. For
example, some businesses are now offering mobile-only
products and services.
 Mobile-Friendly Websites and Apps: The rise of
mobility has compelled businesses to adopt responsive
web design and create mobile applications to ensure an
optimal user experience on smaller screens. Mobile-
Global Market Reach: Mobility has opened up e-
commerce to a global market. Businesses can reach
international customers and expand their customer base
beyond geographical boundaries, increasing sales and
revenue potential.
M-COMMERCE BUSINESS MODELS:
The four major mobile commerce business models are
described below:
(1) Payment Model:
In this model, mobile payment service providers offer
mobile payment services that enable users to conduct
cashless payment transactions including bank
transactions, stock trading, tax / bill payments, and ticket
or other retail purchases using a credit / debit card or
bank PIN. The payment service providers work with banks
(or other financial institutions) and / or mobile network
operators and accordingly receive a bank-controlled
mobile payment model or an operator-controlled mobile
(2) Advertiser Model
This model is an extension of traditional e-commerce
advertiser model and provides mobile websites that can
be viewed by mobile users on their portable mobile
devices. Advertising companies can display their
advertising messages on the website and pay a
rental fee to the hosting website for displaying their
messages. These mobile advertising websites usually
offer users some basic services such as email services,
search engines, news services or social networking
services, and publish promotional messages on these
websites for wider reach. The advertisements often come
with purchase buttons that allow users to purchase the
product directly from their mobile devices. The mobile
payment service is also
provided to facilitate mobile purchase directly from the
advertising websites
(3) Shopping Model
websites on their WAP enabled mobile screens and select
and
purchase any product of their choice. Mobile payment
option is also provided in the website so that the users
can make mobile payment for the purchased product and
complete the deal even while in transit or far away from
the actual store location. Thus, shopping model allows
retailers to generate additional revenues through mobile
shopping and can improve their profit margins.
(4) Content Provider Model
In this model, mobile service providers offer a variety of
entertainment content such as breaking news, weather
forecast, traffic information, music, mobile games, TV
shows, video content, movies, etc., which can be
downloaded to users' mobile devices. Network operators
are connected to various content providers and offer
mobile customers both subscription based services and
pay-per-use services. Location-based services, such as
M-COMMERCE VALUE CHAIN
The m-commerce value chain is a model that represents
the various stages and actors involved in the process of
conducting mobile commerce transactions.
The value chain includes the following key
components:
 Content and Service Providers: These are the
entities that create and offer digital content, products,
and services that are made available to mobile users.
They can be app developers, content creators, or
service providers offering a range of services like
mobile apps, games, streaming services, mobile
banking, etc.
 Mobile Device Manufacturers: These companies
design, manufacture, and market the mobile devices
used by consumers to access m-commerce services.
They include brands like- Apple, Samsung, Google, and
various other smartphone manufacturers.
 Mobile Payment Providers: These are the companies
or services that facilitate secure and convenient mobile
payment options for customers. Examples include
digital wallets (e.g., PayTm, Google Pay), mobile
banking apps, and other payment processors that
handle transactions.
 Mobile Commerce Platforms: These platforms act as
intermediaries between content and service providers
and consumers. They offer a marketplace or ecosystem
where businesses can list their products and services
for mobile users to discover and purchase.
 Advertising and Marketing: This aspect involves
mobile advertising agencies,marketing companies, and
ad platforms that promote m-commerce offerings to the
target audience through mobile devices.
 Regulatory and Security Bodies: These are entities
responsible for ensuring compliance with regulations,
protecting consumers' privacy and data, and
 Logistics and Delivery: In case of physical goods, this
stage involves shipping and delivery services
responsible for fulfilling orders and delivering products
to the customers.
 Customer Support and After-Sales: Companies and
services that handle customer inquiries, complaints,
and support for mobile commerce products and
services after the sale has been made.
Here are some of the key attributes of the m-commerce
value chain:
 Ubiquity: Mobile devices can be used anywhere,
which makes m-commerce a very convenient way to
shop.
 Convenience: M-commerce transactions can be
completed quickly and easily, which makes them a
popular choice for consumers who are on the go.
 Instant connectivity: Mobile devices are always
connected to the internet, which means that m-
 Localization: M-commerce platforms can be localized
to specific regions, whichmakes it easier for consumers
to find and purchase products and services that are
relevant to their needs.
M-COMMERCE INFORMATION SYSTEM FUNCTIONAL
MODEL
The M-commerce Information System Functional Model
outlines the key functionalities and components required
to support mobile commerce operations. It describes the
various
aspects of an information system that enable businesses
to conduct m-commerce transactions and provide a
seamless experience to mobile users.
Below are the primary components of the M-commerce
Information System Functional Model:
User Interface: The user interface is the front-end
component that interacts with mobile users. It should be
designed to be responsive, user-friendly, and optimized
through which users can access m-commerce services
and products. It should support various functionalities
such as product browsing, search, shopping cart
management, and payment processing.
 Mobile Payment Gateway: The mobile payment
gateway facilitates secure and convenient payment
processing for mobile transactions. It integrates with
various payment methods like- credit/debit cards,
digital wallets, mobile banking, etc., to enable smooth
and secure payments.
 Product and Service Catalog: The information
system should maintain an up-to date catalog of
products and services offered in the m-commerce
platform. This includes detailed product descriptions,
images, pricing, availability, and other relevant
information.
 User Accounts and Authentication: The system
should support user registration, login, and
including order placement, order status updates, order
tracking and coordination with logistics for delivery.
 Inventory Management: The inventory management
system tracks the availability of products and services,
updating the stock levels in real-time, and ensuring that
customers are not sold items that are out of stock.
 Mobile Analytics: Mobile analytics tools provide valuable
insights into user behavior, preferences, and
purchasing patterns. This information can be used to
optimize the m-commerce platform, enhance user
experience, and refine marketing strategies.
 Security and Encryption: Security measures, such as
data encryption, secure socket layers (SSL), and two-
factor authentication, are vital to protect sensitive user
information and ensure secure transactions.
 Customer Support: This component offers customer
support features like- chat support, FAQs, and contact
forms, allowing users to seek assistance or resolve
 Push Notifications and Alerts: The system can
utilize push notifications to inform users about new
products, special offers, order updates, and other
relevant information.
 Mobile Marketing and Promotions: The system
should support targeted marketing and promotional
activities, allowing businesses to reach their mobile
customers with personalized offers and campaigns.
 Feedback and Reviews: This functionality enables
users to provide feedback, ratings, and reviews for
products and services, helping other customers make
informed decisions.
The M-commerce Information System Functional Model
serves as a blueprint for designing, developing, and
operating an effective and efficient mobile commerce
platform,ensuring a seamless and engaging experience
for mobile users while supporting the
business's growth and success in the mobile marketplace