Notes of E-Commerce

What is Data?

What Is E-Commerce?

Electronic commerce, commonly known as (electronic marketing) e-commerce consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well.

E-commerce can be divided into:

  • E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall"
  • The gathering and use of demographic data through Web contacts
  • Electronic Data Interchange (EDI), the business-to-business exchange of data
  • e-mail and fax and their use as media for reaching prospects and established customers (for example, with newsletters)
  • Business-to-business buying and selling (B2B)

Types (model) of E-Commerce

Ecommerce can be broken into four main categories: B2B, B2C, C2B, and C2C.

B2B (Business-to-Business)

Companies doing business with each other such as: manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable.

For Example:

                        www.tradeaccess.com is an example of B-2-B

B2C (Business-to-Consumer)

Businesses selling to the general public typically through catalogs utilizing shopping cart software. By dollar volume, B2B takes the prize, however B2C is really what the average Joe has in mind with regards to ecommerce as a whole.

The process of selling items to consumer through Internet is called B-2-C ecommerce. Or we say An activity performed to relate one business organization to a consumer through internet is called B2C e-commerce.

                                    www.amazon.com is an example of B2C

C2B (Consumer-to-Business)

A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project.

C2C (Consumer-to-Consumer)

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. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995.

Now the days Government also do dome business usein e-commerec such that:

G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with the government--from procurement to filing taxes to business registrations to renewing licenses. There are other categories of ecommerce out there, but they tend to be superfluous.


 

 

Unique features of e-commerce technology

Ubiquity: -

E-commerce is ubiquitous, meaning that it is available just about everywhere at all times. It liberates the market from being restricted to a e-commerce physical space and makes it possible to shop from your desktop. The result is called a market space. From consumer point of view, ubiquity reduces transaction costs.

Global Reach: -

E-commerce technology permits commercial transactions to cross cultural and national boundaries far more conveniently and effectively as compared to traditional commerce. As a result, the potential market size for e-commerce merchants is roughly equal to the size of world's online population.

Universal Standards: -

One strikingly unusual feature of e-commerce technologies is that the technical standards of the Internet and therefore the technical standards for conducting e-commerce are universal standards i.e. they are shared by all the nations around the world.

Interactivity: -

Unlike any of the commercial technologies of the twentieth century, with the possible exception of the telephone, e-commerce technologies are interactive, meaning they allow for two-way communication between merchants and consumer.

Information Density and Richness: -

 The Internet vastly increases information density. It is the total amount and quality of information available to all market participants, consumers and merchants. E-commerce technologies reduce information collection, storage, communication and processing costs. At the same time, these technologies increase greatly the accuracy and timeliness of information, making information more useful and important than ever.

Personalization: -

E-commerce technologies permit personalization. Merchants can target their marketing messages to specific individuals by adjusting the message to a person's name, interests and past purchases.

E-commerce technologies make it possible for merchants to know much more about consumers and use this information more effectively than ever before.

What is Business, Commerce, Industry, Trade and Ads in Trade?

Business: -

"Any legal activity to earning the  profit."

A business can be defined as an organization that provides goods and services to others who want or need them

A business (also called a company, enterprise or firm) is a legally recognized organization designed to provide goods and/or services to consumers.

Commerce: -

Commerce is the exchange of items of value between persons or companies. Any exchange of money for a product, service, or information is considered a deal of commerce.

Trade: -

Trade is the voluntary exchange of goods, services, or both. Trade is also called commerce or transaction. A mechanism that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services

A producer might sell items or provide a service, and a customer pays them for it. This is trade.

Industry: -

An industry (from Latin industries, "diligent, industrious") is the manufacturing of a good or service within a category. Although industry is a broad term for any kind of economic production.

Industry refers generally to areas of economic production which involve large amounts of upfront capital investment before any profit can be realized.

Aids in Trade:

All the activities, which    help    in    trade    e.g. Transportation, insurance, agents / brokers, banks etc.

What Are The Eight Key Elements Of Business Model?

A business model is extremely important to ensure a business is set up properly and has the ability to run smoothly. The business model is the main component of a business plan and this is necessary when looking for investors from both individuals or banks.

There are 8 components which make up Business Model:

Value Proposition: -

Value Proposition basically outlines why a customer would buy from you. There must be a definition of what product of service you provide and why customers would choose you.

Revenue Model: -

Stating exactly how the business will make money.  Earning revenue and generating profits is usually the primary objective of a business so this is particularly important.

Market Opportunity: -

 Market Opportunity refers to a company?s intended market space and the overall potential financial opportunities available to the firm in that market space.

Competitive Environment: -

Competitive Environment whereby other competition selling similar products and operating in the same market space are outlined along with additional information such as how large they are, their net profits, their share of the market space and the price of their product.

Competitive Advantage: -

To compete against established and well-trusted companies, your firm must have some kind of advantage over the competition, which will encourage customers to use you products or service. It may be a cheaper product or a higher quality.

Market Strategy: -

Market Strategy a Plan that details how a company intends to enter a new market and attract strategy such as promoting products or services to attract a target audience.

Organization Development: -

Organization Development Explaining what types of organizational structures within the business need to be in place to ensure it runs smoothly and all the necessary work is completed.

Management Team: -

Management Team whereby the credentials, experience and skills of the company leaders are explained in order to attract customers and investors.

E-Commerce Security

What do means by E-Commerce Security and what measure Taken for This Purpose?

When connecting your computer to a network, it becomes vulnerable (exposed) to attack.

In a typical e-Commerce experience, a shopper proceeds to a Web site to browse a catalog and make a purchase. This simple activity illustrates the four major players in e-Commerce security. One player is the shopper who uses his browser to locate the site. The site is usually operated by a merchant, also a player, whose business is to sell merchandise to make a profit. As the merchant business is selling goods and services, not building software, he usually purchases most of the software to run his site from third-party software vendors. The software vendor is the last of the three legitimate players. The attacker is the player whose goal is to exploit the other three players for illegitimate gains. Figure 2 illustrates the players in a shopping experience.

As mentioned, the vulnerability of a system exists at the entry and exit points within the system. In e-Commerce system with several points that the attacker can target:

  • Shopper
  • Shopper' computer
  • Network connection between shopper and Web site's server
  • Web site's server
  • Software vendor

Your system is only as secure as the people who use it. Education is the best way to ensure that your customers take appropriate precautions:

  1. Install personal firewalls for the client machines.
  2. Store confidential information in encrypted form.
  3. Encrypt the stream using the Secure Socket Layer (SSL) protocol to protect information flowing between the client and the e-Commerce Web site.
  4. Use appropriate password policies, firewalls, and routine external security audits.
  5. Use threat model analysis, strict development policies, and external security audits to protect ISV software running the Web site.

What is Internet

The Internet, sometimes called simply "the Net," is a worldwide system of computer networks - a network of networks in which users at any one computer can, if they have permission, get information from any other computer (and sometimes talk directly to users at other computers). It was conceived by the Advanced Research Projects Agency (ARPA) of the U.S. government in 1969 and was first known as the ARPANET. The original aim was to create a network that would allow users of a research computer at one university to be able to "talk to" research computers at other universities.

Today, the Internet is a public, cooperative, and self-sustaining facility accessible to hundreds of millions of people worldwide. Physically, the Internet uses a portion of the total resources of the currently existing public telecommunication networks. Technically, what distinguishes the Internet is its use of a set of protocols called TCP/IP (for Transmission Control Protocol/Internet Protocol). Two recent adaptations of Internet technology, the intranet and the extranet, also make use of the TCP/IP protocol.

?We define Internet also in the following word:

A global networks connecting millions of computers. More than 100 countries are linked into exchanges of data, news and opinions. Unlike online services, which are centrally controlled, the Internet is decentralized by design. Each Internet computer, called a host, is independent. Its operators can choose which Internet services to use and which local services to make available to the global Internet community. Remarkably, this anarchy by design works exceedingly well.

There are a variety of ways to access the Internet. Most online services, such as America Online, offer access to some Internet services. It is also possible to gain access through a commercial Internet Service Provider (ISP).

What is Web Browsers?

A Web browser is a software application for retrieving, presenting, and traversing information resources on the World Wide Web. An information resource is identified by a Uniform Resource Identifier (URI) and may be a web page, image, video, or other piece of content. Hyperlinks present in resources enable users to easily navigate their browsers to related resources.

Although browsers are primarily intended to access the World Wide Web, they can also be used to access information provided by Web servers in private networks or files in file systems.

The major web browsers are Internet Explorer, Mozilla Firefox, Apple Safari, Google Chrome, and Opera.

Internet Explorer: -

Internet Explorer (IE), sometimes referred to as Microsoft Internet Explorer (MSIE) is a series of graphical web browser and most widely used World Wide Web browser.

Internet Explorer (IE) is the name of Microsoft's browser that enables you to view Web pages on the Internet using a graphical interface. Internet Explorer was first introduced in 1995 and it is the most popular browser used today. The latest official release, Internet Explorer 8 (IE8) was made available for Windows XP, Windows Server 2003, and Windows Vista. Internet Explorer supports Java and JavaScript and also supports ActiveX.

Mozilla ( Netscape's browser): -

The original name for Netscape's browser, now called Navigator. Some people claim that the term is a contraction of Mosaic Godzilla (e.g., Mosaic killer), since Mosaic was the number one Web browser at the time Netscape began developing its product. The term Mozilla is still used by many Web developers and appears in server log files that identify the browsers being used.

In 1998, Netscape decided to make the source code for Navigator freely available to the public, or open source. The Netscape group responsible for releasing the code is called mozilla.org, and its Web site is www.mozilla.org.

Protocols

These are the software set of instructions or rules that are managing all data communication setup. It controls the sequence and flow of data and the route through which data is to be transmitted. It detects errors and maintains the order of precedence of data along with data security. It also develops a log table having information of all the jobs or tasks that have taken place.

TCP/IP: -

Abbreviation of Transmission Control Protocol, and pronounced as separate letters. TCP is one of the main protocols in TCP/IP networks. Whereas the IP protocol deals only with packets, TCP enables two hosts to establish a connection and exchange streams of data. TCP guarantees delivery of data and also guarantees that packets will be delivered in the same order in which they were sent.

The TCP operates at the transport layer and the IP operates at the network layer. The IP provide two basic services. Breaking the message up into transmission packets and addressing. The IP is also responsible for packet routing.

2)       HTTP: -

The hypertext protocol (HTTP) is a protocol used menially to access data on the word wide web. The protocols transfer data in the form of plain text, hypertext, audio, video and so on. Short for Hypertext Transfer Protocol, the underlying protocol used by the World Wide Web. HTTP defines how messages are formatted and transmitted, and what actions Web servers and browsers should take in response to various commands. For example, when you enter a URL in your browser, this actually sends an HTTP command to the Web server directing it to fetch and transmit the requested Web page.

3)       FTP :-

Short for File Transfer Protocol, the protocol for exchanging files over the Internet. FTP works in the same way as HTTP for transferring Web pages from a server to a user's browser and SMTP for transferring electronic mail across the Internet in that, like these technologies, FTP uses the Internet's TCP/IP protocols to enable data transfer.

FTP is most commonly used to download a file from a server using the Internet or to upload a file to a server (e.g., uploading a Web page file to a server).

4)       SMTP: -

Short for Simple Mail Transfer Protocol, a protocol for sending e-mail messages between servers. Most e-mail systems that send mail over the Internet use SMTP to send messages from one server to another; the messages can then be retrieved with an e-mail client using either POP or IMAP. In addition, SMTP is generally used to send messages from a mail client to a mail server. This is why you need to specify both the POP or IMAP server and the SMTP server when you configure your e-mail application.

5)       POP: -

Short for Post Office Protocol, a protocol used to retrieve e-mail from a mail server. Most e-mail applications (sometimes called an e-mail client) use the POP protocol, although some can use the newer IMAP (Internet Message Access Protocol). There are two versions of POP. The first, called POP2, became a standard in the mid-80 and requires SMTP to send messages. The newer version, POP3, can be used with or without SMTP.

6) MIME (Multipurpose Internet Mail Extensions): -

Short for Multipurpose Internet Mail Extensions, a specification for formatting non-ASCII messages so that they can be sent over the Internet. Many e-mail clients now support MIME, which enables them to send and receive graphics, audio, and video files via the Internet mail system. In addition, MIME supports messages in character sets other than ASCII.

There are many predefined MIME types, such as GIF graphics files and PostScript files. It is also possible to define your own MIME types.

What is Web Page

A webpage or web page is a document or resource of information that is suitable for the World Wide Web and can be accessed through a web browser and displayed on a computer screen.

This information is usually in HTML or XHTML format, and may provide navigation to other webpages via hypertext links.

Web pages may be retrieved from a local computer or from a remote web server.

Static Web Page

A Web page (HTML page) that contains the same information for all users. Although it may be periodically updated from time to time, it does not change with each user retrieval.

Dynamic Web Page

A dynamic web page is a page that changes based on the user. It responds to the user's needs, and provides relevant information to meet them, by accessing information in a connected database. A dynamic web page allows users to go beyond reading text and looking at graphics. It allows for an interactive experience, with the user being in control of the information he views.

What is ISP

An ISP (Internet Service Provider) is a company that collects a monthly or yearly fee in exchange for providing the subscriber with Internet access.

An ISP might provide dial-up service, cable, DSL, or other types of Internet access. Some ISPs are local while others are national. A national ISP will provide access throughout most of the nation, while a local ISP will only serve subscribers in a limited geographical region.

What is E-Mail

Electronic mail, often abbreviated as email, e.mail or e-mail, is a method of exchanging digital messages, designed primarily for human use. E-mail systems are based on a store-and-forward model in which e-mail computer server systems accept, forward, deliver and store messages on behalf of users, who only need to connect to the e-mail infrastructure, typically an e-mail server, with a network-enabled device (e.g., a personal computer) for the duration of message submission or retrieval. Originally, e-mail was always transmitted directly from one user's device to another's; nowadays this is rarely the case.

An electronic mail message consists of two components, the message header, and the message body, which is the email's content. The message header contains control information, including, minimally, an originator's email address and one or more recipient addresses. Usually additional information is added, such as a subject header field.

Originally a text-only communications medium, email was extended to carry multi-media content attachments.

Creating, Sending and Reading E-mail

On internet we have many email serevr which provid the facility of creating , sending and reading the email. Depending on your email account.

Open the email login web page on internet. For example open www.mail.yahoo.com

Sign in by providing you e-mail ID and Password.

Click on New option in the upper left corner and select E-mail Message.

On the page that opens, click in the blank box beside

To: and type the email address of the person you re writing.

Inside Subject:, give your message a title a reason for being.

Then write whatever you want to in the message window. That s the big box below To: and Subject:.

If you want to send the same mail to Multiple Recipients then:

Send your message to more than one person.

Add additional email addresses after To: and separate them with commas (e.g., johndoe@yahoo.com, janedoe@yahoo.com, etc.).

Cc:

Add addresses in the Cc: field if you want to send a copy of your message to anyone. To show the Cc: box, click Add CC above the To: line. Others receiving this message will be able to see anyone listed in the Cc: line.

Bcc:

If you want to send a copy of your message to someone, but NOT let anyone else see that they re getting a copy, click Add BCC above the To: line. Bcc is blind carbon copy. Bcc: recipients are invisible to the To: and Cc: recipients of the message, as well as to each other. For example, if you send a message to johndoe@yahoo.com with a Bcc: to janedoe@yahoo.com, johndoe will see himself as the message's only recipient. janedoe will also get the message, and she will see that you addressed and sent the message To: johndoe. Shhhh!

Attach Photos and Files:

Click Attach Files below Subject:. In the window that opens, click Browse to find and select the file you want. When you've got it, click Open. Repeat these steps to attach more files, and when you re finished, click Attach Files.

Now sending it is the easy part. Once you re done writing (and attaching photos or files if you want... see below), just click Send. It s above the message window.

Click on Send Option in the upper left corner or bottom Left corner.

Reading E-Mail: -

After Sign In Click on Inbox Option from Left side windows.

Now on the windows right side you email is listed Lines by lines with their subject.

Click on the subject on that e-mail which you want to read.

In next windows selected email opened and you can view.

What is Search Engine?

A computer program that retrieves documents or files or data from a database or from a computer network (especially from the internet).

A web search engine is a tool designed to search for information on the World Wide Web. The search results are usually presented in a list and are commonly called hits. The information may consist of web pages, images, information and other types of files. Some search engines also mine data available in databases or open directories. Unlike Web directories, which are maintained by human editors, search engines operate algorithmically or are a mixture of algorithmic and human input.

What is Domain Name

Domain names are used in URLs to identify particular Web pages. For example, in the URL http://www.yahoo.com, the domain name is yahoo.com.

Every domain name has a suffix that indicates which top level domain (TLD) it belongs to. There are only a limited number of such domains. For example:

gov - Government agencies

edu - Educational institutions

org - Organizations (nonprofit)

mil - Military

com - commercial business

net - Network organizations

ca - Canada

th - Thailand

Basically every website have a unique IP address and it difficult that user remember the IP address of each website so a name is given to each IP address on Internet.  Name that identifies one or more IP addresses. For example, the domain name microsoft.com.