Wednesday, February 5, 2020

Introduction to E-COMMERCE


E-COMMERCE

PGDCA
        Internet and Web Technology
(E-Commerce & HTML)

DCA
E-Commerce
HTML & Internet Application


E-Commerce:
> Electronic Commerce
> Doing Business activities using Internet.
> Going online for services like Selling, Purchasing & Ordering of Products, Payment and other services (Order acknowledgement, auction, etc.)
> Applications of Internet:
-      Information gathering
-      Information sharing
-      E-mail
-      Chatting – Text, Voice & Video
-      Online shopping
-      Online payment
-      Online Business
-      Online Reservation
-      Online Education (classes, admission, exam, library) NPTEL
-      Entertainment
-      Gamming
-      Social Network / Sites

Network:
-      LAN / WAN / MAN
-      Internet (Public)
-      Intranet (Private)
-      Extranet (Private)
-      VAN (Value Aided Network)

Types of Business:
-      B2B (Honda with CEAT tyres)
-      B2C (Flipkart, amazon, snapdeal, ebey, shopclues, homeshop18, myntra, yepme, etc.)
-      C2C (OLX,  Quicker)

Advantages of E-Commerce:
-      Globalization
-      Lower Production Cost
-      Serve as an Equalizer
-      Mass customization Possible
-      Allows Network Production
-      Helpful to Consumer in B2C (Customize Production)
-      Team Work
-      Better Customer Service
-      System Scalability (Customer Interaction)
-      Lot of Varieties
-      Easy modification on Product Catalog & its prices
-      Easy payment mode
-      Cashless Payment System
-      Security/Privacy
-      Time saving
-      7 x 24 product availability
-      Low transportation cost
-      Free Home delivery
-      Easy sales & Purchase
-      Easy return, exchange & refund policy

Limitation:
-      Customer Relation problem
-      Economic & Social problem
-      Lack of technical knowledge
-      No bargaining
-      Look & Feel problem of products like cloths, etc.
-      Quality issues in Cloths like products
-      Time taking process in Replacement & Refund

B2B à EDI & FEDI

EDI is used to exchange Business Information between organizations in a standard format. EDI applications area:
-      Finance & Accounting
-      Insurance
-      Inventory Management
-      Manufacturing
-      Purchasing
-      Marketing

EDI (Electronic Data Interchange)
Advantages:
-      Secure/Privacy
-      Paperless
-      Fast
-      Time saving
-      Low communication cost
-      Errorless work
-      Auto matching of Bills
-      Payment acknowledgement & reminding
-      Better Cash flow
-      Does not required large stock of products
-      Better Inventory management
-      Increasing no. of customers
-      Better demand & supply process of product

Disadvantages:
-      Costly system establishment
-      Difficult to operate
-      Network related problems
-      Heavy cost to make a communication network (PN)
-      Required a large network system

Main components of EDI:
-      Application Server
-      Translation
-      Communication

Cryptography:
-      Encryption (Coded Format)
-      Decryption (Decoded Format)
-      Key
-      Public Key (2) and Private Key (1)
-      Plain Text
-      Cipher Text

HELLO  ---- +1 -à IFMMP                               (Private Key)


HELLO (+1) à IFMMP (+2) à KHOOR           (Public Key)


FEDI (Financial Electronic Data Interchange)
-      Payment related activities
-      FEDI is performed among:
o   Buyers
o   Sellers
o   Buyers Bank Process Automated
o   Sellers Bank Process Automated
o   ACH Clearing House Process Automated
-      Different payment modes:
o   Online Banking / Net Banking / Mobile Banking
o   Debit Card
o   ATM
o   Credit Card
o   Master Card
o   NEFT (National Electronic Fund Transfer)
o   RTGS (Real Time Gross Settlement)
o   Wallet Payment (Google Pay, PayTM, PhonePe, Freecharge, Mobikwik, Oxygen)

Electronic Payment System
-      Should complete following requirements:
o   Acceptability
o   Convertibility
o   Flexibility
o   Reliability
o   Scalability
o   Usability
o   Security
-      Features:
o   Convenience
o   Security
o   Anonymity
o   Universality
-      Types:
o   Instant paid or Cash – eCash
o   Prepaid or Debit – Smart Card, Debit Card, ATM, Virtual Wallet, etc.
o   Postpaid or Credit – Credit Card, Electronic Cheque, etc.
-      ECS (Electronic Clearing System)

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