Chapter 1

INTRODUCTION

Electronic Commerce or e-commerce is business transactions that take place by

communication networks. It is a process of buying and selling products, services, and
information over the computer network. E-commerce is a set of dynamic technologies,
applications and business process that link organizations, customers, suppliers, and
communities through electronic transactions and the electronic exchange of information
products and services

Electronic commerce that is conducted between businesses and consumers, on the other
hand, is referred to as business-to-consumer or B2C. This is the type of electronic
commerce conducted by companies such as Amazon.com.

Online shopping is a form of electronic commerce where the buyer is directly online to
the seller’s computer usually via the internet. There is no intermediary service. The sale
and purchase transaction is completed electronically and interactively in real-time such as
Amazon.com for new books. If an intermediary is present, then the sale and purchase
transaction is called electronic commerce such as eBay.com.

History of e-shopping

Originally, electronic commerce meant the facilitation of commercial transactions

electronically, using technology such as Electronic Data Interchange (EDI) and
Electronic Funds Transfer (EFT). These were both introduced in the late 1970s, allowing
businesses to send commercial documents like purchase orders or invoices electronically.
Online shopping, a form of electronic commerce, In 1979 Michael Aldrich, an English
inventor, connected a modified 26″ color domestic television to a real-time transaction
processing the computer via a domestic telephone line and invented online shopping. The
first recorded B2B was Thomson Holidays 1981 the first recorded B2C was Gateshead
SIS/Tesco in 1984. The world’s first recorded online home shopper was Mrs. Jane
Snowball, 72, of Gateshead, England in May 1984. During the 1980s Aldrich sold many
systems mainly in the UK including Ford, Peugeot, General Motors and Nissan. The
Nissan system of 1984/5 was revolutionary. It enabled a car buyer on a dealer’s lot to
both buy and finance the car, including a credit check, online. Aldrich invented both the
online shopping system and the business rationale for using it. His 1980s systems were as
fast as 2010 internet shopping systems. They used dial-up and leased telephone lines as
broadband was not available
From the 1990s onwards, electronic commerce would additionally include enterprise
resource planning systems (ERP), data mining and data warehousing.

An early example of many-to-many electronic commerce in physical goods was the

Boston Computer Exchange, a marketplace for used computers launched in 1982. An
early online information marketplace, including online consulting, was the American
Information Exchange, another pre Internet online system introduced in 1991.

The Internet became popular worldwide around 1994 when the first internet online
shopping started; it took about five years to introduce security protocols and DSL
allowing continual connection to the Internet. By the end of 2000, many European and
American business companies offered their services through the World Wide Web. Since
then people began to associate the word “eCommerce” with the ability to purchase
various goods through the Internet using secure protocols and electronic payment
services.
Historical Timeline

1979: Michael Aldrich invented online shopping

1981: Thomson Holidays, UK is first B2B online shopping
1985: Nissan UK sells cars and finance with credit checking to customers online from
dealers’ lots.
Pizza Hut offers online ordering on its Web page in 1992
1995: Jeff Bezos launches Amazon.com
2010: US e-Commerce and Online Retail sales projected to reach $173 billion, an
increase of 7 percent over 2009

Objectives of e-shopping

The main objectives of the e-shopping are given below:

1. To provide information about various products in a different category.

2. Customer can purchase Products Online.
3. Customer can log in and get various information about products and can purchase a
suitable product with price and quality comparison.
4. Customer can pay online, so security is must, therefore, e-shopping provide secure
transactions.
5. After-sale e-shopping also provide after-sales service in which customer problem is
solved.
6. Data security is maintained to a relatively high level by implementing it at the Database
level, so as to ensure that only authorized users have access to confidential client
information

Current e-shopping sites in Nepal

The current e-shopping sites of Nepal are:

1. KathmanduMart.com: This site will deliver state-of-the-art Online Solutions by bringing

technology and people together to resolve a wide range of shopping necessity.
2. NetForNepal.com: A site through which you can send gifts to your family & friends in
Nepal.
3. Nepa Rudraksha: Nepa Rudraksha is founded to achieve objectives of promoting Nepali
Rudraksha and Saligrams.
 4. Pashminarus.com: For the finest collection of the highest quality pashmina shawls from
Nepal.
5. Thamel.com: For all kinds of occasions, send gifts to Nepal
6. Muncha House – An e-commerce site to send gifts to loved ones in Nepal

Chapter 2
Purpose of the project

We cover a wide variety of topics which are:

1. Build a product catalog that can be browsed and searched

2. Implement the catalog administration pages that allow adding, modifying, and removing
products, categories, and departments, and other administrative features
3. Create your own shopping basket and check-out mechanism in PHP
4. Increase sales by implementing product recommendations and product reviews
5. Handle payments using PayPal and other electronic payment.
6. Implement a customer accounts system
7. Integrate Amazon.com web services to sell Amazon.com items through our web site.

While implementing these features, we’ll learn how to

1. Design relational databases and write MySQL queries and stored procedures.
2. Use the MySQL full-text search feature to implement product searching.
3. Use the Smarty templating engine to write structured and extensible PHP code.
4. Implement search engine optimization features
5. Use AJAX to improve the users’ experience utilizing your web site
6. Integrate external web services

Scope of the project

1. Increasing the value of the content with accessibility, reusability, and durability.
2. We will develop the necessary skills to get our business upon the Web and available to a
worldwide audience.
3. We’ll understand the concepts, and we’ll have the knowledge.
4. Affiliation program helps to generate many visitors and is one of the best marketing
strategies.

Phases of Development of project

1. Problem definition: pay by the customer for the product , advertisement,

2. Feasibility study
 3. Project analysis
4. Project design
5. Project coding and testing

Problem definition

Viewing the latest e-commerce sites implemented in Nepal there does not contain the
product reviews, marketing for the products and the sites as well as search engine
optimization which ultimately drive visitors to the site and increase the chances that
visitors will buy from the same site and not from the competitor.

The sites are also not implementing latest technology as Drupal, Magento, jquery and
ajax and are not user-friendly.

The sites are also not maintaining CRM (customer relationship management) for their
future reference

Feasibility study

With the problems addressed above we are making the e-shopping site removing the
problems and the technological feasibility of this project is that we are using known
technologies as well as open-source codes like the PHP and MySQL and the operational
feasibility is that we can be able to do as per the business requirement, and the economic
feasibility is that we are preparing the project as per the partial fulfillment of the BCIS so
the economic feasibility is fulfilled.

Project analysis

In this stage, we gather information from the different sources for project development.
The methods of collecting information are:

1. Interviewing
 2. Observations
3. Viewing of documents and manuals from different e-commerce sites

Project design

In this phase, we design the output of the project and its format, inputs, and procedures,
etc. In this stage we design

1. PayPal implementation(transactions through PayPal)

2. Product creation and recommendations
3. Product attributes
4. Creating own shopping cart
5. Implementing Ajax features
6. Searching the catalog and catalog administration
7. Search engine optimization
8. Advertisement with affiliation and other media

Project Coding and Testing

In this stage, we convert the system design to a final project using programming
language. In this stage format, error and logic error are eliminated and make complete
project without any error.
After completion of coding, the project will be tested to find out that all individual
programs perform correctly. The implementation of PayPal, affiliation program and other
services are performing correctly or not is tested.

Date July August September

Phase Week
Feasibility study
Project analysis
Project Design

Project coding and Testing

Documentation
Gantt chart for project

Chapter 3

Tools and techniques that are required

Tools and techniques Name

Text editor Macromedia Dreamweaver
Flash generator Dreamweaver Flash
Programming languages PHP, Mysql, Javascript, Facebook Markup Language, Paypal
Code, Jquery, Ajax, Smarty templating, HTML, XML, DHML, Style Sheets (CSS)
Guidance Oscommerce, Drupal, Magento, and other e-commerce sites
Web Server Apache

What are the requirements that we need?

1. Affiliation program creation

2. Basic knowledge about SEO and other marketing strategies such as facebook application
3. How Paypal Transactions works or the implementation of the sandbox.
4. Knowledge about the JavaScript, Ajax, Jquery, and flash.
5. Embedded code generation
6. Knowledge about the osCommerce, Drupal, Magento and other e-commerce sites.

Why go online?

1. Get more customers

2. Recognize worldwide
3. Reduce the costs of fulfilling demands or orders.
4. Increasing Business revenue
5. Increasing the operational value
6. Increase flexibility

Will the site generate revenue?

Of course, there are so many ways to generate revenue and draw customers to E-
shopping sites. Most common uses are:
a) Google Adsense
b) Referral Programs
c) Local Advertisements
d) Newspaper and Media
e) Customer Relation Management.

What’s new in our project?

Basically, e-shopping is a new concept and many projects have already been made and is
emerging in new eras and covers many techniques.
In our project E-shopping with affiliation program, the product in our site can be
advertised to the other sites and the affiliated account holder can earn money.
The strategy can be PPC (Pay Per Click) means the affiliated account holder can earn
money as per the clicks in our product.

Make money with an affiliate program that pays the account holder for every click
Affiliated account holder gets paid for every visitor that clicks on an advertisement. Our
goal is to enable you to make as much as possible from your advertising space, by letting
advertisers bid on your ad space. We pay monthly, either by check or instantly through
PayPal with a minimum of only $50. They can also promote our site with the banners
available and other promotional texts and click providers.

Risks and Threats

All this might make it sound as if your e-commerce business can’t possibly fail. Some
risks are particularly relevant to e-commerce companies, such as:

1. Hacking
 2. Credit card scams
3. Hardware failures
4. Unreliable shipping services
5. Software errors
6. Changing laws

Bibliography
http://en.wikipedia.org/wiki/Electronic_commerce
http://www.ecommerce-blog.org
http://www.phpwebcommerce.com/
https://developer.paypal.com/
http://www.webopedia.com/DidYouKnow/Internet/2007/Affiliate_Marketing.asp
http://www.webopedia.com/TERM/E/electronic_commerce.html
http://www.amazon.com