E-Commerce

BCA 305
 E-Commerce Syllabus
UNIT-I
Introduction: Definition of Electronic Commerce, Evolution of e-commerce, E-Commerce& E
Business, Unique features of e-commerce, applications of E-Commerce, advantages and
disadvantages of E-commerce, Types of ecommerce:B2B, B2C, C2C, M-commerce, Social
Commerce E-commerce infrastructure: Technological building blocks: Internet, web
and mobile applications.

UNIT II
Building an e-commerce presence: Planning, System Analysis, Design, Choosing Software,
Hardware, Other Ecommerce site tools: Tools For website design, Tools for SEO, Interactivity
and active contents (Server side scripting)
Important Components of E-commerce website: Product Cataloging, Product Listing Page,
Product description Page, Cart building and Checkout, Third party integrations: Payment
systems, Data Layer Integrations for analytics, Customer support integration, Order tracking,
Shipping, return and cancellation.
New Technologies for E-commerce: Chatbots, Recommendation systems (Personalisation),
Smart Search, Product Comparison, Augmented reality, Big data, Cloud computing
 E-Commerce Syllabus(Cont.)
UNIT III
Electronic Payment Systems Overview of Electronics payments, electronic Fund Transfer, Digital
Token based Electronics payment System, Smart Cards, Credit Cards, Debit Cards, Emerging
financial Instruments Smartphone wallet, Social / Mobile Peer to Peer Payment systems, Digital
Cash and Virtual Currencies, Online Banking, Payment Gateway, Electronic Billing Presentment
and Payment.

UNIT IV
Security Threats and Issues: Cyber crimes, Credit card frauds/theft, Identity fraud, spoofing ,
sniffing, DOS and DDOS attacks, Social network security Issues, Mobile Platform Security issues,
Cloud security issues Technology Solutions: Encryption :Secret Key Encryption, Public Key
Encryption, Digital Certificates and public key infrastructure Securing channels: Secured Socket
Layer (SSL), Transport Layer Security(TLS) , Virtual Private Network (VPN), Protecting Networks:
Firewalls, Proxy Servers, Intrusion detection and protection systems , Anti Virus software
 Definition of e-Commerce
• Type of industry where buying and selling of product or services is
conducted over electronic systems such as the internet and other
computer networks.

• General concept covering any form of business transaction or information

exchange executed using information and communication
technologies(ICTs). Electronic Commerce includes electronic trading of
goods, services and electronic material.

• ‘Formulating commercial transactions at a site remote from the trading

partner and then using electronic communications to execute that
transaction.’

• Electronic Commerce can be applied to all or to different phases, of the

trade cycle.
 Evolution of eCommerce
1. Launch of CompuServe in 1969
2. Computers Made the First Online Sale Possible 1972
3. Introduction of online transaction processing in 1976
4. Electronic shopping was created in 1979
5. Electronic commerce in 1983 Acknowledged
6. CompuServe inaugurated the Electronic Mall in 1984
7. World Wide Web Starts in 1990
8. The first secure online transaction occurred in 1994
9. 1995: The Internet Market, Amazon, and eBay Boom
 Evolution of eCommerce(Cont.)
10.Launch of PayPal in 1998
11.1999: $150 billion is spent globally online
12.2000: Internet Advertising and the Dotcom Bust
13.2005: Online shopping returns
14.2006 saw an increase in online shopping platforms
15. Online grocery shopping 2012
16. The Inexorable Growth of Ecommerce 2017
Evolution of eCommerce(Cont.)
E-Commerce Vs E-Business
Unique Features of eCommerce
 Unique Features of eCommerce
1. UBIQUITY: It is available just about everywhere, at all times. It liberates the
market from being restricted to a physical space and makes it possible to shop
from your desktop, at home, at work, or even from your car, using mobile e-
commerce.
2. GLOBAL REACH: Supports commercial transactions to cross cultural, regional,
and national boundaries far more conveniently and cost-effectively than is true
in traditional commerce. As a result, the potential market size for e-commerce
merchants is roughly equal to the size of the world’s online population.
3. UNIVERSAL STANDARDS: the technical standards for conducting e-commerce,
are universal standards—they are shared by all nations around the world.
4. RICHNESS: Information richness refers to the complexity and content of a
message. E-commerce technologies have the potential for offering considerably
more information richness than traditional media such as printing presses, radio,
and television because they are interactive and can adjust the message to
individual users.
 Unique Features of eCommerce
5. INTERACTIVITY: Interactivity allows an online merchant to engage a consumer in
ways similar to a face-to-face experience. Comment features, community forums, and
social networks with social sharing functionality such as Like and Share buttons all
enable consumers to actively interact with merchants and other users.
6. INFORMATION DENSITY: The total amount and quality of information available to
all market participants, consumers and merchants alike. E-commerce technologies
reduce information collection, storage, processing, and communication costs.
7. PERSONALIZATION AND CUSTOMIZATION: Personalization: merchants can target
their marketing messages to specific individuals by adjusting the message to a
person’s name, interests, and past purchases. Customization—changing the delivered
product or service based on a user’s preferences or prior behavior.
8. SOCIAL TECHNOLOGY: USER-GENERATED CONTENT AND SOCIAL NETWORKS: e-
Commerce technologies have evolved to be much more social by allowing users to
create and share content with a worldwide community. Using these forms of
communication, users are able to create new social networks and strengthen existing
ones.
 Applications of E-Commerce
1. E-Marketing
2. E-Selling
3. E-Service
4. E-Analytics
5. Process Management
6. Transactional Capabilities
7. Communicate, Interact, Attract & Inform
8. Payment Handling
9. Product Delivery
 Advantages of E-Commerce
• General Benefits
- Greater Reach
- Tracking, Analytics, and Insights
- Respond Quickly to Trends and Demands-
- Lower Cost
- Detailed Product Information
- Personalised Messaging
- Easy Scalability
- Unrestricted Space
- Quicker and Innovative Marketing
- More Sales Channels
 Advantages of E-Commerce
Benefits of E-Commerce for Consumers
• Customers can shop and get responses to their queries
around the clock, regardless of where they are
• It provides more detailed product information, enabling them
to make informed choices
• Customers can compare prices and buy cheaper options
• Reviews and feedback left by actual users of the product helps
visitors make the right choice
• It saves time and effort as customers don’t have to commute
through traffic and can purchase from the comfort of their
homes
 Disadvantages of E-Commerce
• Cost
• Value
• Lack Of Personal Touch
• Internet Access
• Credit Card Fraud
• IT Security and Privacy Issues
• Website Issues
• Complex Taxation, Regulations, and Compliance
• Intense Online Competition
• Shipping Times
 Types of E-Commerce
• B2B : Business to Business
• B2C : Business to Consumer
• C2B : Consumer to Business
• B2E : Business to Employee
• C2C : Consumer to Consumer
• Mobile E-Commerce(M-Commerce)
• Social E-Commerce
• Local E-Commerce
 Ecommerce Infrastructure
• Internet is an interconnected network of thousands of
networks and millions of computers, linking businesses,
educational institutions, government agencies, & individuals.
• The Internet provides approximately 3.3 billion people around
the world with services such as e-mail, apps, newsgroups,
shopping, research, instant messaging, music, videos & news.
• No single organization controls the Internet or how it
functions, nor is it owned by anybody, yet it has provided the
infrastructure for a transformation in commerce, scientific
research, and culture.
 Trends in Ecommerce
Infrastructure 2016-17
BUSINESS:
• Mobile devices- social network, location-based web services and
business models.
• Explosion of Internet content services and mobile access devices.
• Growth in cloud computing and bandwidth capacity enables new
business models for distributing music, movies, and television.
• Search becomes more social and local, enabling social and local
commerce business models.
• Big data produced by the Internet creates new business
opportunities for firms with the analytic capability to understand it
 Trends in Ecommerce
Infrastructure 2016-17(C)
Technology:
• Mobile devices such as smartphones and tablet computers.
• Explosion of mobile apps
• Cloud computing reshapes computing and storage.
• Internet runs out of IPv4 addresses; the transition to IPv6
continues.
• Online data collection known as big data reduce storage costs.
• Internet of Things, with millions of sensor-equipped devices.
• Augmented reality applications such as Pokemon GO & VR
hardware, Google’s Cardboard, and Samsung’s Gear VR.
• Artificial intelligence technologies explode e.g, self-driving
cars.
• HTML5 grows in popularity among publishers and developers.
 Trends in Ecommerce
Infrastructure 2016-17(C)
SOCIETY:
• Governance of the Internet becomes more involved with
conflicts between nations.
• Government control over, and surveillance of, the Internet is
expanded in most advanced nations, and in many nations the
Internet is nearly completely controlled by government
agencies.
• The growing infrastructure for tracking online and mobile
consumer behavior conflicts with individual claims to privacy
and control over personal information
THE EVOLUTION OF THE INTERNET:
1961—THE PRESENT
The history of the Internet can be segmented into three phases.
During the Innovation Phase, from 1961 to 1974, the fundamental building
blocks of the Internet—packet-switching hardware, a communications
protocol called TCP/ IP, and client/server computing were conceptualized and
then implemented in actual hardware and software.
During the Institutionalization Phase, from 1975 to 1995, large institutions
such as the U.S. Department of Defense (DoD) and the National Science
Foundation (NSF) provided funding and legitimization for the fledging
Internet.
During the Commercialization Phase, from 1995 to the present, the U.S.
government encouraged private corporations to take over and expand the
Internet backbone as well as local service beyond military installations and
college campuses to the rest of the population around the world.
THE EVOLUTION OF THE INTERNET:
1961—THE PRESENT
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 THE INTERNET: KEY TECHNOLOGY
CONCEPTS
• Packet Switching: Packet switching is a method of slicing
digital messages into discrete units called packets, sending the
packets along different communication paths as they become
available, and then reassembling the packets once they arrive
at their destination. For example
 THE INTERNET: KEY TECHNOLOGY
CONCEPTS
• Transmission Control Protocol/Internet
Protocol (TCP/IP):
• Client/Server Computing
• Domain Names, DNS, and URLs
• Client/Server Computing
 Cloud Computing: Characteristics
• On-demand self-service: Computing capabilities such as
server time or network storage as needed automatically on
their own.
• Ubiquitous network access: Standard network and Internet
devices, including mobile platforms.
• Location-independent resource pooling: Pooled to serve
multiple users, with different virtual resources dynamically
assigned according to user demand.
• Rapid elasticity: Computing resources can be rapidly
provisioned, increased, or decreased as per user demand.
• Measured service: Charges for cloud resources are based on
the amount of resources actually used.
CLOUD COMPUTING MODELS
 INTERNET PROTOCOLS AND
UTILITY PROGRAMS
• HyperText Transfer Protocol (HTTP): the Internet protocol used
for transferring web pages.
• Simple Mail Transfer Protocol (SMTP): the Internet protocol
used to send mail to a server.
• Post Office Protocol 3 (POP3): a protocol used by the client to
retrieve mail from an Internet server.
• Internet Message Access Protocol (IMAP): a more current e-mail
protocol that allows users to search, organize, and filter their
mail prior to downloading it from the server.
• File Transfer Protocol (FTP): one of the original Internet services.
Part of the TCP/IP protocol that permits users to transfer files
from the server to their client computer, and vice versa
 INTERNET PROTOCOLS AND
UTILITY PROGRAMS
• Telnet: a terminal emulation program that runs in TCP/I.
• Secure Sockets Layer (SSL) /Transport Layer Security (TLS):
protocols that secure communications between the client and
the server.
• Ping: a program that allows you to check the connection
between your client and the server.
• Tracert: one of several route-tracing utilities that allow you to
follow the path of a message you send from your client to a
remote computer on the Internet.
 INTERNET PROTOCOLS AND
UTILITY PROGRAMS
• Network Technology Substrate layer: layer of Internet
technology that is composed of telecommunications networks
and protocols.
• Transport Services and Representation Standards layer: layer
of Internet architecture that houses the TCP/IP protocol.
• Applications layer: layer of Internet architecture that contains
client applications.
• Middleware Services layer: the “glue” that ties the
applications to the communications networks and includes
such services as security, authentication, addresses, and
storage repositories.
 THE INTERNET BACKBONE
• Internet Service Providers (ISPs) own and control the fiber-
optic cable networks comprising the Internet’s backbone.
• Backbone high-bandwidth fiber-optic cable that transports
data across the Internet.
• Bandwidth measures how much data can be transferred over
a communications medium within a fixed period of time; is
usually expressed in bits per second (bps), kilobits per second
(Kbps), megabits per second (Mbps), or gigabits per second
(Gbps).
• Redundancy multiple duplicate devices and paths in a
network.
 THE INTERNET BACKBONE
• Internet Exchange Point (IXP) hub where the backbone
intersects with local and regional networks and where
backbone owners connect with one another.
• Internet Service Provider (ISP) firm that provides the lowest
level of service in the multi-tiered Internet architecture by
leasing Internet access to home owners, small businesses, and
some large institutions.
• Narrowband the traditional telephone modem connection,
now operating at 56.6 Kbps
• Broadband refers to any communication technology that
permits clients to play streaming audio and video files at
acceptable speeds
 THE INTERNET BACKBONE
• Digital Subscriber Line (DSL) delivers high-speed access through ordinary
telephone lines found in homes or businesses.
• FiOS (fiber-optic service) a form of DSL that provides speeds of up to 500
Mbps cable Internet piggybacks digital access to the Internet on top of the
analog video cable providing television signals to a home
• T1 an international telephone standard for digital communication that
offers guaranteed delivery at 1.54 Mbps
• T3 an international telephone standard for digital communication that
offers guaranteed delivery at 45 Mbps satellite Internet high-speed
broadband Internet access provided via satellite
• Campus/corporate area network (CAN) generally, a local area network
operating within a single organization that leases access to the Web
directly from regional and national carriers
 THE INTERNET BACKBONE
• Intranet a TCP/IP network located within a single organization
for purposes of communications and information processing.
• Internet Governing Body:
– Internet Corporation for Assigned Names and Numbers (ICANN)
– Internet Engineering Task Force (IETF)
– Internet Research Task Force (IRTF)
– Internet Engineering Steering Group (IESG)
– Internet Architecture Board (IAB)
– Internet Society (ISOC)
– Internet Governance Forum (IGF)
– World Wide Web Consortium (W3C)
– Internet Network Operators Groups (NOGs)
 LIMITATIONS OF THE CURRENT
INTERNET
• Bandwidth limitations
• Quality of service limitations