What is E Commerce Commonly known as Electronic Marketing It consist of buying and selling goods and services over an electronic systems Such as the internet and other computer networks ID: 914451
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Slide1
Prof. Anil
Khadse
NKTT College
Slide2What is E- CommerceCommonly known as Electronic Marketing
.
“It consist of buying and selling goods and services over an electronic systems Such as the internet and other computer networks
.”
“E-commerce is the purchasing, selling and exchanging goods and services over computer networks (internet) through which transaction or terms of sale are performed Electronically.
Slide3BriefHistoryOfE-Commerce
Prof. Anil
Khadse
Slide41970s: Electronic Funds Transfer (EFT)Used by the banking industry to exchange account information over secured networksLate 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companiesUsed by businesses to transmit data from one business to another1990s: the World Wide Web on the Internet provides easy-to-use technology for information publishing and disseminationCheaper to do business (economies of scale)Enable diverse business activities (economies of scope
Slide5UbiquityGlobal reachUniversal standard
Richness
Interactivity
Information Density
personalization
Features of E-Commerce
Slide6Types Of E-Commerce
Slide7Business-to-business (B2B) B2B stands for Business to Business. It consists of largest form of Ecommerce. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler.
E.g.:-shop2gether.com
Prof. Anil
Khadse
Slide8Business-to-consumer (B2C):It
is the model taking businesses and consumers
interaction.
The basic concept of this model is to sell the product online to the consumers.
B2C
is the
direct
trade between the company and consumers. It provides direct selling through online. For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from supplier’s
website.
e.g
amazon.com
Slide9Consumer-to-consumer (C2C)There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease.
e.g
: ebay.com
Slide10Advantages of e-commerceIt facilitate to assess information of any products without any restriction.Remain open for all the time national and international customers i.e
Availability of 24x7
Enables smaller companies to compete with larger companies
Reduces in staffing and/or high street stores thereby reducing costs
There is no limitation on geographical boundaries for doing business.
10
Slide11It reduces the cost of marketing and distribution and travel time.It facilitate comparison shopping.E-Commerce boost the possibilities for performing direct marketing.It is very convenient way of shopping for old age people. 11
Advantages of e-commerce
Slide12Limitations of E-CommerceProduct not bought onlineSecuritySystem and data integrityExpensive to maintain a scalable websiteFulfillment problemCorporate vulnerabilityTechnological Limitation
12
Slide13Business model in e-commerceAdvertising Revenue ModelSubscription
Revenue
Model
Transaction Fee
Revenue
Model
Sales
Revenue
Model
Affiliate
Revenue Model
13
Slide14Major b2c Models
14
Slide15B2C e-commerce transactions
VISA
Order form
Order placed by user
Shopping cart
credit card is charged
Order is competed
E-mail is sent to customer to merchant
Sent to warehouse
Shipping carrier picks up shipment
Slide16Major (B2C) Business Models
Prof. Anil
Khadse
Slide17Major B2C Business ModelsBusiness
Model
Description
Portal
Portals are “gateways” to the Internet
Offers powerful
Web
search
ing
tools
-effiency and ease
T
he portal business model is in addition to serving as a gateway to the Internet;
It is a destination site
provide an integrated package
of content and services all in one place
Prof. Anil
Khadse
Slide18B2C Business Models: PortalAn integrated package of content like News weather forecastscurrency ratesstock quotes
phone and map information
Services
likeEntertainmentChatGameDownloads
Shopping-auction
E-card
Sms service
search
Slide19Business Model
Example
Description
Portal
Yahoo.com
msn.com
Offers an integrated package of services and content such
as search,e-mail,chat etc.
Seeks to be a user’s home base.
iBoats.com
Offers services and products to specialized market place.
A
gateway or portal to information related to a particular industry, such as
human resources,
health care, insurance, automobiles, or food manufacturing.
Slide20Business Model
Example
Description
E-
tailer
Amazon.com,
ebooks.com
Online version of retail store where customers can shop 24/7 with comfort.
Walmart.com,
bestbuy.com
Online distributor channel for company that also has physical stores.
LandsEnd.com,
llbean.com
Online version of direct catalog. The catalog merchant has generally lower prices than other retailers and lower overhead
expenses due to the smaller size of store and lack of large showroom space.
Fashionmall.com
internetmall.com
Online version of mall.
Dell.com,
unionway.com
Online sales made directly by manufacturers.
Prof. Anil
Khadse
Slide21Major B2C Business ModelsBusiness
Model
Example
Description
Content Provider
Sportsline.com,
Timesofindia.com
expressindia.com
Information and entertainment providers like newspapers, sports sites or other online sources offering up-to-date information (news, special
interest ,
photos,
video, artwork
et
c
) to customers.
Infomediaries
:
electronic
intermediaries
that
control
information
flow
in
cyberspace
,
often
aggregating
information
and
selling
it
to othersThey do not own but aggregate and distribute the content produced by others
Prof. Anil Khadse
Slide22Business Model
Example
Description
SERVICE PROVIDER
Google maps Gmail
Companies that make money by selling users a service, rather
than a product.
Offers services online
, like consultancy, trade knowledge, expertise
etc.
Eg
. Window updates offered by Microsoft
Prof. Anil
Khadse
Slide23Processors of online sales transactions, such as stock brokers and travel agents that increase customer `s productivity by helping them do things faster.It assists buyers, sellers, or both during transaction and acts as an agent for larger markets.
Furthermore, they sell others products rather than their own product.
Transaction brokers receive commissions for every transaction that had been successfully concluded in order to sustain their business.
One legal advantage to sellers is that the seller is usually not legally responsible for the actions of transaction brokers acting within the scope of the transaction.
ExE-Trade.com, Monster.com
Transaction broker
Prof. Anil
Khadse
Slide24Business Model
Example
Description
Community Provider
About.com,
iVillage.com
Sites where
individuals with particular interests, hobbies and common experience can come together and compare.
Communities utilize electronic tools such as forums, chat rooms, e-mail lists, message boards, and other interactive Internet mechanisms, which are usually tailored to the particular community.
Prof. Anil
Khadse
Slide25Business ModelExample
Description
MARKET CREATOR
eBay.com,
Priceline.com,
upperbid.com
Web-based businesses that use internet technology to create markets that bring buyers and sellers together.
The
success
factor
is:
->A
ttracting sufficient critical number of sellers and buyers to the marketplace.
->
Speed, ability to become operational quickly
Prof. Anil
Khadse
Slide26E-Commerce security26
Prof. Anil
Khadse
Slide2727Q. Discuss various security issues in E-CommerceIntegrity
Non-repudiation
Authenticity
Confidentiality
Availability
Prof. Anil
Khadse
Slide28Encryption:28Encryption means protecting internet messages from being read by anyone
It transform message and data to protect their meaning.
Encryption means converting the plain / readable text into code
i.e
Chiper
text.
Prof. Anil
Khadse
Slide29What is Cryptography?
Cryptography derived its name from a Greek word called “
Kryptos
” which means “Hidden Secrets”.
Cryptography is the practice and study of hiding information. It is the Art or Science of converting a plain intelligible data into an unintelligible data and again retransforming that message into its original form.
It provides Confidentiality, Integrity, Accuracy.
Prof. Anil
Khadse
Slide30What is Encryption / Decryption
Encryption :
Encryption means converting the plain / readable text into code
i.e
Chiper
text
.Encryption means protecting internet messages from being read by anyoneIt transform message and data to protect their meaning.
Plain Text
Encryption using Key
Chiper
Text
Slide31Decryption – The process of converting cipher text into a plain text is called Decryption.31
Chiper
Text
Decryption using Key
Plain Text
Slide32What are the Types of Cryptography
Symmetric Key Cryptography (Secret Key Cryptography)
Same Key is used by both parties
Advantages
Simpler and Faster
Disadvantages
Less Secured
Image taken from :-
www.google.com
Prof. Anil
Khadse
Slide33Private Key
Public
Keys
Prof. Anil
Khadse
Slide34What is Secure Socket Layer ?Secure Socket Layer (SSL) is a protocol developed by Netscape for transmitting private documents via the Internet. The SSL Security protocol provides data encryption, server authentication, message integrity, and optional client authentication for a TCP/IP connection. SSL is built into all major browsers and web servers.Use HTTPS instead of HTTP
Slide3535What is SSL? (cont’d)Both Netscape Navigator and Internet Explorer support SSL, and many websites use the protocol to obtain confidential user information, such as credit card numbers. The primary goal of SSL is to provide privacy and reliability between two communicating applications.
Slide36Secure Electronic transaction36SET is developed by an association led by
Mastercard
and Visa
It is protocol designed for handling credit Card transactions over the Internet
It ensures the identities of all parties involved in the transaction.
It also encrypts Credit Card and transaction information before transmitting on the internet.
Prof. Anil
Khadse
Slide37Payment systemDigital CashOnline Stored Value PayPal Smart CardDigital Accumulating Balance PaymentDigital Cheque
Payment System
37
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