PROJECT REPORT

on

“E-Commerce”
In fuifillment of the requirements for
Executive Graduate Diploma in Industrial Marketing

UNDER THE GUIDENCE OF:

Ms.Priya Chapte Mam
(2024-2025)

SUBMITTED TO: SUBMITTED BY:

Ms.Priya Chapte Mam Arsal Ahmad- Roll No. 22AH110434

Through
(SGBUA UNIVERSITY)
Takshashila Mahavidyalaya, Amravati.
Department of commerce
Amravati-444602
www.sgbuauniversity.com

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 Acknowledgement
We would like to extend our special gratitude to our ms.Priya chapte mam,
for his tremendous support and guidance all through the five Semester of SGBUA
2024. We would like to thank him once again for his dedication and commitment that
ensured all our concepts were cleared. We would not have been able to finish this
project without his guidance and encouragement.

Thank you very much mam.

You have been the inspiration and support for us aspiring 'Marketers'.

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 Table of Contents

S No. Contents Page Number

1 Objectives 4

2 Introduction 4

3 E Commerce History 6

4 Types of E Commerce 10

5 E-Commerce from the Buyer's Perspective 10

6 E-Commerce from the Seller's Perspective 11

7 Benefits and Challenges of E-Commerce 13

8 E Commerce Applications 14
9 E Commerce Security Issues 25

10 Conclusion 27

11 Bibliography 28

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 E-commerce as Marketing
Communications
Objectives of the Project:

• To define e-commerce and understand its role as a transaction processing system

• To list the three types of e-commerce, and explain how e-commerce supports the
stages of the buying process and methods of marketing and selling

• To discuss several examples of e-commerce applications and services

• To Define m-commerce, and describe several m-commerce services

• To list the components of an e-commerce system, and explain how they function
together to provide e-commerce services.

Introduction:
Electronic commerce (e-commerce)
Electronic commerce, commonly known as e-commerce. is a type of industry where buying
and selling of product or service is conducted over electronic systems such as the Internet and
other computer networks. Electronic commerce draws on technologies such as mobile,
.commerce, electronic funds, transfer, supply, chain, management. Internet marketing,
processing. electronic (EDI), inventory management systems, and automated data collection
systems. Modern electronic commerce typically uses the World Wide Web at least at one point
in the transaction's life-cycle, although it may encompass a wider range of technologies such
as e-mail, mobile .devices social media, and telephones as well.

Electronic commerce is generality considered to be the sales aspect of e-business. It also

consists of the exchange of data to facilitate the financing and payment aspects of business
transactions.

E-commerce can be divided into:

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 • E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered
into a "virtual mall"
• The gathering and use of demographic data through Web contacts and social media
• Electronic Data Interchange (EDI), the business-to-business exchange of data
• E-mail and fax and their use as media for reaching prospective and established
customers (for example, with newsletters)
. Business-to-business buying and selling
• The security of business transactions

TABLE 8.1 • Top 10 e-commerw developments of the last decade

R<rt.unt frorr. a 2097 Srft^afo 4 mfron-.V-cn Industry Assccw.cn po'. cl ndusSy nnd pclxr, experts

Deve'Qpmcni Description

Goo-g’e
Search engvte used by more than 30 percent of the Internet population to find anything
Bioadband
High-speed access used by mote than 50 percent of internet users making it much mote
convenient to shop

eBay Web see that otroduced tne masses to the power and benefits ot e-commerce
Amazon Pooec-r of e-commerce that sets the standard for ontne transactions

Google AdWords
Todays oiggest ontne advertsng vehicle that generates $68 txhon per year lor Google
Open Mandaras Standards such as HTML and XML that provde opportunities for everyone, not |ust a select
lew

Wr-A Wireless technology that helped move e-commerce from desktops Io mobile devices
User-generated content Contributions to tne ortmc commumry by anyone and everyone via Web stes Ike YouTube

iTunes Acpication that legitimized muse dstnbubon over the Internet

BlackBerry Devico that helped to create a new moWo business culture

Figure : Top 10 E commerce development in the past decade

The Above figure gives a glimpse of the Development of E Commerce as an Industry.

Various players all over the world are in the fight for that dominant position.

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A lot of Online trading or online Supermarkets have evolved with the time, these companies
include a wide range of products and services in their portfolio ranging from household to Kids
section to Kitchen Section to apparels to etc etc.
FIGURE 8.2 - U.S. o-commorco rovcnuos (billions ot dollars)

Figure : U.S E commerce values in Billion Dollars

The Above Figure denotes the amount of market share (U.S markets) e commerce industry has over the period
of years.

E-Commerce History

- Uses private communications networks (VANs) to transmit standardized

transaction data between business partners and suppliers

• Automating transactions using EDI

- Drastically reduced the amount of paperwork and the need for human intervention

• Internet
Provided the ideal platform for conducting EDI transactions
FIGURE 8.3 • Electronic data interchange (EDI)
EDI uses private communications networks called value-added networks (VANs) to transmit standardzed transaction data between bus -'ess
partners and supplers.

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Figure : E-Commerce History

Transaction Processing
• Transaction
- An exchange involving goods or services

• Transaction processing system (TPS)

- Information system used to support and record transactions such as paying for
products or paying an employee (e.g. payroll system that calculates an employee
s pay and cuts a check)

- transaction processing systems share a common set of activities called the

transaction processing cycle

• Batch-processing
- Transactions are collected over time and processed together in batches

- useful in situations where transactions take place away from the computer
system

■ Online transaction processing

- Takes place at the point of sale

Critical to time-sensitive transactions such as selling concert tickets and making flight
reservations

The Transaction Processing Cycle

■ Data collection
- The process of capluring transaction related data

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 • Data editing
- Checking the validity of data entered

. Data ccrrectiQn
- Implemented if an error is found in the entered data

• Data manipulation
- Processing transaction data

. Datastorage
- Altering databases to reflect the transaction

• Data output
- Receipts, picking lists, and other documents

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FIGURE 8.5 • The Iransactlon processing cycle
Data processing activities of a transaction processing system

Figure : Transaction Processing System

Different Transaction Processing for Different Needs

- Order processing system
- Supports the sales of goods or services to customers
- Arranges for shipment of products

• Purchasing system
- Supports the purchase of goods and raw materials from suppliers

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 Types of E-Commerce

• Business-to-consumer e-commerce (B2C)

- Connects individual consumers with sellers , cutting out the middleman

- E.g. Amazon.com

• Business-to-business e-commerce (B2B)

- Supports business transactions on across private networks, the Internet, and the
Web

• Consumer-to-consumer e-commerce (C2C)

- Connects individual sellers with people shopping for used items

- E.g. ebay.com

E-Commerce from the Buyer’s Perspective

• ErQgg.ss.Qtbuying or acquiring good? or services
- Realizing a need

- Researching a product

- Selecting a vendor

- Providing payment

- Accepting delivery

- Using product support

Consumer review Web Sites like Epions.com help shopper’s avoid purchasing mistake and
pressure manufacturers to produce better products.

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E-Commerce from the Seller’s Perspective
■ Seller busines? practices
- Market research to identify customer needs

- Manufacturing products or supplying services that meet customer needs

- Marketing and advertising to make customers aware of available products and

services

• Sellers business practices

- Providing a method for acquiring payments

- Making arrangements for delivery of the product

- Providing after-sales support

• Supply chain management

- From the seller's perspective, the process of producing and selling goods

- Involves three areas of focus: demand planning, supply planning, and demand
fulfillment. Demand fulfillment is a process of getting the product or service to the
customer

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FIGURE 8.11 • Supply chain management
Supply chain management involves three areas of focus: demand planning, supply planning,
and demand fulfillment.

Demand planning Supply planning Demand fulfillment

Figure : Supply Chain Management

[•Commerce From The Seller's Point Of View

PattNinbef

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Description

Upertisc Adnce E •Commerce

Authenticawin Change Notices Transaction

Access Control Customer Support

Audit Special ued Tools

■ Customer Security Poky

* Dislribulot
•Partner
Profite Terms
VAN
Negotiated Pt Kt fmancia
InstitJtiorts
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==51 Irwoicw

Irternd
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MAutions
Sure simauMi

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Figure 6: E Commerce from the seller's point of view

Benefits and Challenges of E-Commerce

2.B2C e-commerce

a. Levels the playing field between large and small businesses

3.Challenges

1. Buyers enjoy the convenience of shopping from their desktop

a. Established businesses must alter systems and business practices

b. Security, privacy, reliability: E-commerce can survive only if all involved can
trust the system
c. Social concerns

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 FIGURE 8.12 - E-commerce can dramatically extend a business's market
Farmyard Nursmkou* cuutomcrs corwititcid ol moutly local ronidcntti taofora c-commetco, but oxpnndud to includo cuntornora
trom all over Iho world nltor implcmnntlng o commorco.
Before e-commerce sales
Rest of Wales

Local 2%
25%
Figure 7: E Commerce can dramatically extend a business's market

E-Commerce Applications
The Major applications of e-commerce are listed below:

• E-Commerce

- Playing an increasingly important role in our personal and professional lives

- Allows us to discover new and interesting products

- Allows us to find better deals

- Used to monitor bank accounts and transfer electronic funds

<■ Retail E-Commerce: Shopping Online

x E-tailing provides customers with

- Product information
- The ability to comparison shop
x E-tailing options

1- Commerce Project, Group 2, EPGDIM 14 Page 15

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 - Set up an electronic storefront
- Lease space in a cybermall
• Web site that allows users to browse through a wide variety of products
offered by several different retailers

The mySimon site provides the product price quotations from numerous eretailers to
help find out best deal on many different products

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Figure 9: The mySimon site provides the product price quotations from numerous eretailers
to help find out best deal on many different products
Online Clearing Houses, Web Auctions and Marketplaces

- www.ubid.com
• Provide a platform for businesses and individuals to sell their products and belongings
• Provides a method for manufacturers to liquidate stock and consumers to
find a good deal
- eBay.com
• Most popular auction/marketplace

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B2B Global Supply Management and Electronic Exchanges
• Global supply management (GSM)
- Businesses can find the best deals for raw materials and supplies needed to
manufacture their products on the global market

• Electronic exchange
- an industry-specific Web resource created to provide a convenient centralized
platform for B2B e-commerce among manufacturers, suppliers, and customers
Promotes cooperation between competing companies

Marketing
• Web is used for
- Unsolicited advertising
• Banner: A rectangular area embedded in the Web page content for
advertising, often across the top of the page

- Access to product information through business Web sites

• Get better deals and make informed decisions
- Market research
• Traditionally done by interviewing customers

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 • Market segmentation divides customer opinions based on various
criteria

• E-commerce allows market segmentation to take place on an

individual level

POc/JActw

Figure 10: Consumer Reports advertise unbiased product testing and reviews. Many
consumers find it worth the subscription fee to access its vehicle rating.

Banking, Finance, and Investment

• Online banking provides
- Convenient access to bank balance information
- Ability to transfer funds, pay bills, and obtain account histories
• Electronic funds transfer
- Popular for paying bills and receiving paychecks

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 • Online brokerages
- Able to execute trades fast, within seconds

Mobile Commerce (M- Commerce)

• A form of e-commerce
• Takes place over wireless mobile devices such as
- Handheld computers and cell phones
- takes place in emerging technologies such as dashtop computers embedded
in automobile dashboards
• Presents unique opportunities and challenges

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Figure 11: Most online services provide a simple form to buy and sell stocks
M-Commerce Technology
• Technologies and standards

- Wireless Application Protocol (WAP)

• a communication standard used by developers to create mcommerce

applications

- Wireless Markup Language (WML)

- Infrared or Bluetooth wireless networking technology

• Near Field Communications (NFC)

• Open Mobile Alliance (OMA)

- Hundreds of mobile operators, device and network suppliers and companies

have joined together to create standards and interoperability between mobile
devices

Type? of M-Commerce Applications

• Methods for delivering m-commerce services

- Directly from cell phone service providers

- Via mobile Internet or Web applications

• Location-based m-commerce applications

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 - Using Short Message Service (SMS) text messaging or Multimedia
Messaging Service (MMS)
- Using short-range wireless technology, such as infrared

• Proximity payment system

■EzCpmm.erc.e LmpJ.em.enlati.on
• Implementing e-commerce

- Requires large investment and expertise

• E-Commerce host

- A company that takes on some or all of the responsibility of setting up and

maintaining an e-commerce system for a business or organization

Infrastructure

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 • E-Commerce requires significant infrastructure changes
• Businesses must have employees who are technically savvy
• B2C e-commerce
- Often connects manufacturers directly with consumers, cutting out the
middleman
Requires shipping individual products directly to consumers

FIGURE 8.25 • Office Depot: A large e-commerce system

Office Depot contracted with IBM to design this e-commerce system to support both B2C and
B2B.

Order processing
application

B2C customer using IBM toolbox

officedepot.com

Oniceuepot
Web server farm
B2B automated ordering
system set up by business
customer
OfticeDepot mainframe

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Building Traffic
• Marketing
- Online advertising methods include banner ads, pop-up ads, and e-mail
- market segmentation: customer opinions are divided into demographic variables
such as race, gender, income, education, and age to determine which segment
a product appeals to most
- Offline advertising methods include magazines, newspapers, radio, and
television
Electronic Payment System
• proximity payment system
- allows customers to transfer funds wirelessly between their mobile device and a
point-of-sale terminal
• Electronic cash (e-cash or digital cash)
- Provides a private and secure method of transferring funds from a bank account
or credit card to online vendors or individuals

- PayPal
• Best-known e-cash provider
• E-cash benefits
- Privacy - hides account information from vendors
- Convenient if seller cannot process a credit card
• Smartcards
- Credit cards with embedded microchips that can store and process data and can
be used as electronic wallets

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FIGURE 8.30 • Online credit card transaction
Online vendors use payment processing systems to check credit and arrange for the transfer of
funds.

Figure 12: Online Credit card Transaction

E-cash systems such as PayPal allow users to purchase product online without the vendor
with a credit card number. You can also use e-cash to transfer funds between individuals.

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Figure 13: Pay pal Service

International Markets
• Internet users of all nationalities will have access to your products
• First consideration of a global e-commerce strategy
- Visitors of all nationalities and cultures should feel comfortable while viewing
your Web content
• Costly approach
- Create multiple vers.ions of your Web site, each in a different language
• Once the international market is won over, e-tailer faces other challenges
- Foreign Currency, shipping, national taxes

E-Commerce Security Issues

Security is another important aspect which was not a concern in an offline commercial market

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but since the number of threats, virus, hackers have grown so the protection of ecommerce
platforms have just changed and new software’s are used with firewall protection to
completely safeguard the security of the commerce online. The transaction and payment
systems too are secured and governed by cyber law and privacy as per company guidelines.
The data security is difficult to control on the internet. As there are no specific cyber laws and
varies from one state to another so implementation of data tasks can cause private data
hampering.
• There are significant privacy and security concerns
- Public network
- No buyer or seller identity verification
- Hacker attacks

E-Commerce Security Issues

• Digital certificate
- A type of electronic business card
- Attached to Internet transaction data
- Verifies the sender of the data
- Provided by certification authorities
- Encryption
• Uses high-level mathematical functions and computer algorithms to
transform data so that it is unintelligible to all but the intended recipient
• Securing data in transit
- Secure Sockets Layer (SSL)
• Digital certificates combined allows for encrypted communications to
occur between Web browser and Web server
• Transport Layer Security (TLS)
• A URL associated with this begins with https
• Allow for encrypted communication to occur between browsers and servers
• Secures usernames, passwords, credit card information

Business Resurnption^Planning
• Great pains are taken to ensure that transaction processing systems remain in working
order
• Business resumption planning (BRP)

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 - Takes into account every possible disaster and provides courses of action to
minimize negative effects

- The goal is to protect data and keep key systems operating until order is
resume

Conclusion:
With the study conducted with this project, we came to understand what actually is e-
commerce and what is its importance in our lives, in today's world where no one has time, e
commerce proves to be the best solution as it provides ease of transaction and minimal
engagement time, because of these two major advantages e-commerce has made its
footprints strong in the world economy.

E-commerce has taken the technology resource by storm by enabling the business to grow
wide and reach further audiences. E-commerce have made global communication better and
fused the energies in the right direction. After several years technology has made the world
come close and exchange trade secrets. E-commerce has surpassed the geographical
boundaries.

Decrease in operational cost:

E-commerce is breath taking which has lead significant impact on every process. The
operation cost earlier which involved many systems, documents and all is free from materials
and it has now only been limited to Intel mini case which stands out as perfect e-commerce
gadget.

Customization is another aspect which has been affected greatly as now personalization after
e-commerce is just at your finger clicks and no one connecting emotionally to someone is
just part which has changed the thought process of buying and selling of products on the
web. Earlier e-commerce during the emergence was not safe but now has shredded new
aspects. E-commerce has really improved sales, organized the company process and helped
in drawing fruitful results.

There are inventory storage problems, stack issues and calculation problems which were
pertinent before when only the manually valuation of things was done. The e-commerce
solutions have reduced all these shortcomings and made processing, distribution of all
expensive goods from electronics to other valuables easy.

The listing is done on the website portals of the order released. The components use has
now been counted and authentication of every step is quite possible which was unlike earlier.
There are stocks which are obsolete have taken the place in listing and status is always being

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updated. E-commerce solutions have been are not only part of the technology sector but
finance, marketing and many allied professions today. Life has changed with e-commerce
solutions as every step using online methods are well guarded. Every company has so many
products the technology oriented e-commerce trade has really simplified various aspects
including the features and characteristics of customer products. E-commerce is climbing the
popularity charts rapidly.

E-commerce is now new to the entire world but the increase in its dynamics has certainly
made it the best mode of communication and. E- commerce solution also have affordable
rather cheap telecommunications cost. Internet communication is quite cheap and reliable
too when compared to VAN’s. The internet does not comprise of leasing the cables unlike
other communication media. The laying down of cables is difficult rather sending any fax,
mail, message or the direct calling.

It is because of e-commerce the world trading is possible at such extensive level and people
have come closer.

Bibliography:
> Internet
> Online e commerce websites
x Kotler, P., Wong. V., Saunders. J. and Armstrong. G. (2005). “Principles
of Marketing." 4th European ed.. Pearson Education Limited. Essex.

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