BCA E-commerce PDF

DR.BABASAHEB AMBEDKAR OPEN UNIVERSITY BCA BCAR-601 E- commerce  E–COMMERCE DR. BABASAHEB AMBEDKAR OPEN UNIVERSITY AHMEDABAD Editorial Panel Author : Dr. Parimalkumar P. Patel I/c Principal, Khyati Sch...

DR.BABASAHEB AMBEDKAR OPEN UNIVERSITY BCA BCAR-601 E- commerce  E–COMMERCE DR. BABASAHEB AMBEDKAR OPEN UNIVERSITY AHMEDABAD Editorial Panel Author : Dr. Parimalkumar P. Patel I/c Principal, Khyati School of Computer Application, BCA Ahmedabad Editor : Dr. Kamesh R. Raval I/C Director Som-Lalit Institute of Computer Applications Ahmedabad Language Editor : Dr. Prakash Khuman Principal Lokmanya College of Commerce Ahmedabad ISBN 978-93-91071-14-1 Edition : 2021 Copyright © 2020 Knowledge Management and Research Organisation. All rights reserved. No part of this book may be reproduced, transmitted or utilized in any form or by a means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system without written permission from us. Acknowledgment Every attempt has been made to trace the copyright holders of material reproduced in this book. Should an infringement have occurred, we apologize for the same and will be pleased to make necessary correction/amendment in future edition of this book. ROLE OF SELF–INSTRUCTIONAL MATERIAL IN DISTANCE LEARNING The need to plan effective instruction is imperative for a successful distance teaching repertoire. This is due to the fact that the instructional designer, the tutor, the author (s) and the student are often separated by distance and may never meet in person. This is an increasingly common scenario in distance education instruction. As much as possible, teaching by distance should stimulate the student's intellectual involvement and contain all the necessary learning instructional activities that are capable of guiding the student through the course objectives. Therefore, the course / self–instructional material is completely equipped with everything that the syllabus prescribes. To ensure effective instruction, a number of instructional design ideas are used and these help students to acquire knowledge, intellectual skills, motor skills and necessary attitudinal changes. In this respect, students' assessment and course evaluation are incorporated in the text. The nature of instructional activities used in distance education self–instructional materials depends on the domain of learning that they reinforce in the text, that is, the cognitive, psychomotor and affective. These are further interpreted in the acquisition of knowledge, intellectual skills and motor skills. Students may be encouraged to gain, apply and communicate (orally or in writing) the knowledge acquired. Intellectual–skills objectives may be met by designing instructions that make use of students' prior knowledge and experiences in the discourse as the foundation on which newly acquired knowledge is built. The provision of exercises in the form of assignments, projects and tutorial feedback is necessary. Instructional activities that teach motor skills need to be graphically demonstrated and the correct practices provided during tutorials. Instructional activities for inculcating change in attitude and behaviour should create interest and demonstrate need and benefits gained by adopting the required change. Information on the adoption and procedures for practice of new attitudes may then be introduced. Teaching and learning at a distance eliminate interactive communication cues, such as pauses, intonation and gestures, associated with the face–to–face method of teaching. This is particularly so with the exclusive use of print media. Instructional activities built into the instructional repertoire provide this missing interaction between the student and the teacher. Therefore, the use of instructional activities to affect better distance teaching is not optional, but mandatory. Our team of successful writers and authors has tried to reduce this. Divide and to bring this Self–Instructional Material as the best teaching and communication tool. Instructional activities are varied in order to assess the different facets of the domains of learning. Distance education teaching repertoire involves extensive use of self–instructional materials, be they print or otherwise. These materials are designed to achieve certain pre–determined learning outcomes, namely goals and objectives that are contained in an instructional plan. Since the teaching process is affected over a distance, there is need to ensure that students actively participate in their learning by performing specific tasks that help them to understand the relevant concepts. Therefore, a set of exercises is built into the teaching repertoire in order to link what students and tutors do in the framework of the course outline. These could be in the form of students' assignments, a research project or a science practical exercise. Examples of instructional activities in distance education are too numerous to list. Instructional activities, when used in this context, help to motivate students, guide and measure students' performance (continuous assessment)  PREFACE We have put in lots of hard work to make this book as user– friendly as possible, but we have not sacrificed quality. Experts were involved in preparing the materials. However, concepts are explained in easy language for you. We have included many tables and examples for easy understanding. We sincerely hope this book will help you in every way you expect. All the best for your studies from our team!  E–COMMERCE Contents BLOCK 1 : REVOLUTION AND BASICS OF E–COMMERCE Unit 1 THE REVOLUTION IS JUST BEGINNING Introduction, What is Business ?, What is E–Business ?, What is E–Commerce ?, Advantages, Disadvantages, The Difference between E–commerce and E–business, Why E–commerce ?, Unique Features of Ecommerce, Types of E–commerce, Evolution of the Internet and the Web, Beginnings and Growth of E–commerce, Technology and E–commerce in Perspective Unit 2 A SHORT HISTORY OF DOT COM IPOS Introduction, Today's E–Commerce, Success, Failures, Future Forecasts, E–Commerce Infrastructure, The Internet and the Evolution of Commercial Computations, Academic Restraints with E–Commerce Unit 3 ELECTRONIC COMMERCE TECHNOLOGY Introduction, The Internet and the Web, Internet, World Wide Web, Packet Switching Networks, Intranet and Extranet, Internet–II, Internet Service Provider (ISP), Basics of Web Server, Hardware and Software for Web Servers, Electronic Mail (E–Mail), Electronic Commerce over the Internet, Examples of Internet E–Commerce Unit 4 ELECTRONIC COMMERCE AND INTERNET Introduction, What is a Network ?, More about Networks, Information Transfer, Packets and Protocol, Internet Protocols : The OSI Reference Model, Other Networks, Cable Type, Wireless Technology BLOCK 2 : E–COMMERCE PROCESS AND IMPLEMENTATION Unit 5 ELECTRONIC COMMERCE (EC) REVENUE STRATEGY AND IMPLEMENTATION Introduction, Strategic Planning for EC, Industrial and Economical Analysis, Strategic Formulation, Critical Success Factors for E–Commerce, Various issues in Revenue Strategy, Electronic Commerce Strategy in  Action, The Process for Successful E–Commerce Programs, Use of Internet in Competitive Intelligence, Implementation, Electronic Commerce Leadership, Creating a Web Team and Assigning Functional Skills to Subproject, Measuring Result, Collecting Information Unit 6 ONLINE SELLING TO CUSTOMERS Introduction, Online (Web) Marketing Strategies, E– Marketing, Promotion on the World Wide Web (WWW), Customer Relationship Management (CRM) Unit 7 ONLINE SELLING TO BUSINESSES Introduction, Supply Chain Management using Internet, Portals and Electronic Marketplaces, Electronic Data Interchange, Benefits of Electronic Data Interchange (EDI) Unit 8 SOCIAL NETWORKS, ONLINE COMMUNITIES AND AUCTIONS Introduction, What is Social Network ?, Features and Technologies used for Social Network, The future of Social Network, Distinguish between Social Network and Portals, What is Auction ?, Types of Auctions, Advantages of Auctions, Risk and costs of Auctions for consumers and business BLOCK 3 : E–COMMERCE PROCESS AND PAYMENT SOLUTIONS Unit 9 E–COMMERCE SOLUTION Introduction, Solutions, Internet Access Solutions, Professional Experts to Design Solutions, Areas of Solutions, Solutions Provider, Online Commerce Solution, Solutions for Successful E–commerce, Advantages of E– commerce Solution, Technology Standards for, E– commerce, Shopping Cart, Merchant Account – Meaning and Nature, Payment System, Internet Payment Features and, Internet Payment services (IPS) Unit 10 E–COMMERCE ETHICAL, SOCIAL AND POLITICAL PROBLEMS Introduction, A structure for organizing the problems or issues, Basic Ethical Concepts, Analysis of Ethical Dilemmas, Ethical Principles of Candidate Unit 11 INTELLECTUAL RIGHTS OF PROPERTY Introduction, Types of Intellectual property protections, Copyrights, Patents, Trademark Unit 12 LAW AND TAXATION Introduction, What is Law ?, Public Government and law, Introduction to Taxation, Types of taxes BLOCK 4 : E-COMMERCE WEBSITES AND E- BANKING Unit 13 E–COMMERCE WEBSITES Introduction, Website : The Concept, Types of Web Sites, Methods of Promoting Site and Searching the Web, Factors for Growth of Web, Web Page, Types of Web Design, Some–E–commerce Websites, Software Tools, Ecommerce Hosting Services, Website Service Providers, Some Popular Websites, Some Indian Websites, Working of Web Track Unit 14 PAYMENT SYSTEMS Introduction, Types of Payment Systems, Offline Payment Systems, Online Payment Systems Unit 15 E–BANKING ONLINE Introduction, The Concept and Meaning, The Electronic Delivery Channel Includes, Automatic Teller Machine (ATM), Electronic Fund Transfer, Computerization in Clearing Houses, Updating Bank Saving Accounts, Financial Transaction Terminals (FTT), E–Banking in India and E–Cheque, Security of Internet Banking  Dr. Babasaheb Ambedkar BCAR-601 Open University Ahmedabad E–COMMERCE BLOCK 1 : REVOLUTION AND BASICS OF E–COMMERCE UNIT 1 THE REVOLUTION IS JUST BEGINNING UNIT 2 A SHORT HISTORY OF DOT COM IPOS UNIT 3 ELECTRONIC COMMERCE TECHNOLOGY UNIT 4 ELECTRONIC COMMERCE AND INTERNET  REVOLUTION AND BASICS OF E–COMMERCE Block Introduction : E-commerce often refers to any business transaction carried out over a computer network that involves the transfer of ownership or usage rights for products and services. According to data compiled by Jay Ritter, IPOs were promoted at a typical price-to-sales ratio of about 6 cycles the level of the prior year at the height of the dot-com effervescence in 2000. We will go into detail about the fundamental idea of electronic commerce and where it came from in this block. The research and concept of e-commerce- related activities, as well as its features, will be the main topics of this block. You'll discuss the benefits and drawbacks of e-commerce. You will make an effort to acquire and comprehend the fundamentals of programmed DMA input output management methods in this module. The pupils will also be given an explanation of the idea of input output supervisors and input output drivers. By using given examples, the learner will see how e-commerce ideas are used realistically.  Block Objectives : After learning this block, you will be able to understand : The requirements of E–commerce Seven Specific Features of E-Commerce Research the various e–commerce platforms. Concept of Internet and Web growth The History and Development of E–Commerce A Framework for E–Commerce Understanding Examining the development of corporate computing Elements of online trade Electronic Data Interchange: Basics Positive aspects of electronic data exchange Block Structure : Unit 1 : Revolution and Basics of E–Commerce Unit 2 : A Short History of Dot Com IPOS Unit 3 : Electronic Commerce Technology Unit 4 : Electronic Commerce and Internet  Unit THE REVOLUTION IS 01 JUST BEGINNING UNIT STRUCTURE 1.0 Learning Objectives 1.1 Introduction 1.2 What is Business ? 1.3 What is E–Business ? 1.4 What is E–Commerce ? 1.4.1 Advantages 1.4.2 Disadvantages 1.5 The Difference between E–commerce and E–business 1.6 Why E–commerce ? 1.7 Unique Features of Ecommerce 1.8 Types of E–commerce 1.9 Evolution of the Internet and the Web 1.10 Beginnings and Growth of E–commerce 1.11 Technology and E–commerce in Perspective 1.12 Let Us Sum Up 1.13 Answers for Check Your Progress 1.14 Glossary 1.15 Assignment 1.16 Activities 1.17 Case Study 1.18 Further Readings 1.0 Learning Objectives : After learning this unit, you will be able to understand : Idea about Business and E–Business About E–Commerce Advantages & Disadvantages of E–Commerce Difference between E–Commerce and E–Business Details of Types of E–Commerce Idea about unique features of E–Commerce Evolution of Internet and Web Detail of growth of E–Commerce Idea of Technology and E–Commerce in perspective 1  E-Commerce 1.1 Introduction : We are in the electronic century. Internet use and other information and communications technologies (ICT) are essential for productivity and economic growth. Networks and technologies based on the internet have the potential to boost output, save costs, and create new market opportunities. Individuals have an interest in shopping, and internet retail is progressing, allowing them to shop whenever they want and from anywhere in the world. Online shopping is accessible 24/7 and may be done at any time. This changes the company model and changes it in light of how retail customers approach it. On the other hand, although having a significant impact on the buying experience, e–commerce seems to be more innovative and evolves. Typically, specific producers and retailers may see particular opportunities brought forth by new technologies. It should be highlighted that several industries have not yet taken advantage of chances, such as internet shopping for consumer–packaged goods, which often comes after industries like media, electronics, and fashion.  Check Your Progress – 1 : 1. ICT stands for. a. Information and Communication Technologies b. Information and Communication Topology c. Information and Communication Transaction d. Information and Communication Transfer 1.2 What is Business ? An organization or enterprising entity engaging in commercial, industrial, or professional activity is referred to as a business. A business's goal is to coordinate some form of economic production (of goods or services). Businesses can be for–profit corporations or nonprofit organizations working to advance a social cause. Businesses varies in size and scope from small, local enterprises to enormous, global conglomerates. A person's efforts and operations to produce and sell goods and services for profit are also referred to as business. To make sure that everything runs smoothly and successfully, businesses engage in a variety of operations and activities. Employees can operate completely within their own field of expertise by grouping these operations. By concentrating on a number of important variables, including accounting, finance, production, research & development, and sales, these operations support the overall business structure. Accounting : maintaining track of all financial transactions for the company and assisting management in resource allocation choices. Finance includes controlling the company's finances, keeping track of its capital requirements, and assessing the potential effects of borrowing money on the health of the company. Manufacturing : creating goods and/or services to satisfy consumer need. Marketing : identifying consumer requirements to provide goods or create services. 2  Research and development : knowledgeable analysts assist the company The Revolution is in staying competitive. Just Beginning Sales : In order for a firm to remain profitable, its constant goals are to boost sales and income.  Check Your Progress – 2 : 1. An organization or enterprising entity engaging in commercial, industrial, or professional activity is referred to as a. a. Commerce b. Business c. Research d. Marketing 2. Business variables includes. a. Accounting b. Finance c. Manufacturing d. All of Above 1.3 What is E–Business ? E–business, often known as electronic business, is the practice of conducting business via the Internet, intranets, extranets, or a mix of these. Similar to e–commerce, e–business involves more than just the online purchase and sale of goods and services. Supply chain management, electronic order processing, and customer relationship management are just a few of the business activities that fall under the umbrella of e–business. Therefore, e–business procedures can aid businesses in running more successfully and effectively. 1.4 What is E–commerce ? E–commerce, or electronic commerce, is a modern business practice that aims to meet the needs of companies, suppliers, and clients by lowering costs, enhancing product quality, and accelerating delivery times. E–commerce describes the following methods for exchanging commercial information without using paper. Electronic Data Exchange (EDI) Electronic Mail (E–mail) Electronic Bulletin Boards Electronic Fund Transfer (EFT) Other Network–based technologies E–commerce is the idea of using the internet to do business more effectively and quickly. E–commerce is the practice of conducting transactions involving the sale and purchase of products and services over the Internet or via computer network without the need for paper documentation. Electronic commerce, sometimes known as e–commerce, covers a broad spectrum of online business ventures involving goods and services. Additionally, it applies to "any type of economic transaction in which the participants communicate electronically as opposed to through direct physical contact or exchanges". Business conducted without the exchange of paper–based documents using computers, telephones, fax machines, barcode readers, credit cards, or other electronic devices. It includes ordering, processing transactions, authenticating payments, maintaining inventories, and providing customer service. There are four categories of e–commerce which are as follows : 3  E-Commerce Business–to–Business Business–to–Consumer Consumer–to–Consumer Consumer–to–Business By offering a less expensive and more effective distribution channel for their goods or services, e–commerce has helped businesses create a market presence or strengthen an already strong position. Examples of E–Commerce are as follows :  Online book shopping is done by a person.  A government worker uses the internet to book a hotel room.  A company uses the seller's interactive telephone system to place an order for a computer by dialing a toll–free number.  A company purchases office supplies online or through a computerized auction.  A retailer places product orders through the extranet of a supplier or an EDI network.  Using the company's intranet, a manufacturing facility orders electronic components from another facility inside the organization.  A person uses an ATM to withdraw money.  Using credit cards for internet purchases for business.  Using an organization's network to distribute information  Using extranet partners to drive manufacturing and distribution along a value chain.  Offering products to customers on a pay–per–download basis via a website, etc. 1.4.1 Advantages : 1. Faster Buying Process : For consumers, e–commerce has sped up the entire purchasing process. They can buy goods while sitting at home instead of having to go to actual stores to accomplish their shopping. It speeds up transactions and saves a ton of time. 2. Reduces Operating Cost : The overall operational costs of firms have decreased as a result. The requirement for businesses to establish physical shops has been replaced by e–commerce. Rent, utilities, other bills, employee pay, and other running costs are very expensive. It avoids all of these costs and manages every aspect of corporate operations online. 3. Customize Your Shopping Experience : Customers can enjoy a tailored buying experience thanks to e–commerce. Customers are free to look for a wide range of products that suit their preferences and demands. Online business shows products to clients according to their interest and their location. 4. 24 × 7 Accessible : The option to shop online is always available–24 hours a day, seven days a week. The ability of consumers to obtain online goods at any time is one of the main benefits of e–commerce. Here, unlike with real stores, there is no set opening or closing time. 4 5. World Wide Connection : Online enterprises are able to connect and The Revolution is reach customers from extremely remote locations without regard to Just Beginning geography. People can order from anywhere and have it delivered to their home or business. 6. Detailed Product Information : Online enterprises are able to connect and reach customers from extremely remote locations without regard to geography. People can order from anywhere and have it delivered to their home or business. 1.5.2 Disadvantages : 1. Lack of Personal Touch : In the case of internet shopping, customers cannot touch or feel the merchandise. When buying from real stores and thoroughly inspecting the thing before purchase, they are occasionally happier. 2. No Guarantee about Product Quality : Customers cannot be guaranteed that the things they purchase online are of a certain caliber. They could be duped by businesses and given subpar goods. 3. Security Issues : Customers who shop online run the risk of losing their crucial credentials. There are many online hackers that could steal customers' data and leave them with significant financial losses. 4. Long Delivery Period : The requirement for customers to wait extended periods of time for product delivery is another significant drawback of internet purchasing. Customers receive immediate product delivery when buying offline.  Check Your Progress – 3 : 1. EDI stands for. a. Electronic Data Exchange b. Electronic Document Exchange c. Electronic Data Expert d. Electronic Document Expert 2. EFT stands for. a. Electronic Fund Transaction b. Electronic Fund Transfer c. Electronic Fund Transport d. Electronic Fund Topology 3. EBB stands for. a. Electronic Business Boards b. Electronic Busy Boards c. Electronic Bulletin Boards d. Electronic Big Boards 1.5 The Difference between E–commerce and E–business : E–commerce is the practice of conducting business online or participating in the purchasing and selling of goods via the internet. It includes financial transactions as well. Other examples of online e–commerce operations are :  Purchasing tickets online  paying various taxes  Online transactions  Items bought or sold online  Accounting Software Online  Support for customers online 5  E-Commerce Find instances of e–commerce websites in the meantime. They include Amazon, Myntra, Flipkart, Paytm Mall, and others. E–business includes using the internet to conduct all forms of business transactions and services. These covers acquiring raw materials, online learning, business dealings, online financial transactions, and more. This shows that many different kinds of companies and services are present online. Examples include e–commerce businesses and their auxiliary internal operations, such as websites for classified ads, auctions, software or hardware developers, etc. In the meantime, the E–Business online activities consist of :  Establishing an internet store  Supply chain administration  Internet–based business transactions (buying and selling products)  Customer Education Financial Business Deals  Email Promotion E–Commerce E-Business E–commerce is the activity of carrying The word "E–Business" refers to out commercial activities and conducting any kind of business transactions online. transaction online. It required using the internet. The internet, intranet, and extranet have to be used. It includes limited transactions. It includes unlimited transactions. E-commerce covers outward/external Both internal and external business business procedures. activities and processes are included in e–business. E–commerce involves financial E–business includes both financial and transactions. non-financial activities. It includes purchases, sales, and It refers to the company's online internet transactions. presence.  Check Your Progress – 4 : 1. Explain the difference between E–commerce and E– business ? 1.6 Why E–Commerce ? Businesses change as a result of the growth and rising usage of Internet and online technology. Due to this change, many firms now do their transactions online. It should be remembered that e–commerce first gained traction when businesses switched from paper to digital formats for managing and controlling information in order to conduct business. As the government works on information technology as a method to transform electronic government, this business e– trend has gained significance in the world of e–commerce. 6  As online and internet services become more and more invasive, many The Revolution is company domains that are created as a result of information technology–enabled Just Beginning business transactions tend to adopt the most recent technology. E–commerce is mostly used in transactions that take place between : Businesses and Consumers Businesses and Businesses Internal company operations E–commerce technology is considered to be distinct from past technologies and to be more powerful since it causes fundamental shifts in commerce that are currently occurring. E–commerce is hugely popular today because :  Compared to conventional retailing, business on the internet generates an increasing number of clients.  The ability for consumers to purchase anything with a mouse click from anywhere in the world lowers business's barriers to entry.  Business eliminates costs associated with opening a store vs online sale, which will save all essential additional costs. 1.7 Unique Features of Ecommerce : There are seven different types of distinctive qualities that are used by e–commerce websites to function, including : 1. Ubiquity : Access to treatment is available in the general business sector through the distribution of documents. It has been observed that customers are typically influenced by clothing and footwear because they are essential elements for dressing. 2. International Spread : E–commerce makes it possible to conduct business throughout the nation, which is more convenient and effective than traditional trade. Businesses benefit from a prospective market through e–commerce, which may be carried out across a large network population. 3. Worldwide Standards : The technical standard of the Internet results in sharing between nations when using e–commerce technologies. The standard will have an impact on market entrance costs as well as the cost of items on the market, which lowers expenses applied with various indirect cost reduction strategies as well as the monthly cost of commerce websites and simplifies the technological company. 4. Richness : It is acknowledged that branding and advertising are crucial components of any business. You may transmit music, video, animation, billboards, signs, and more through e–commerce. 5. Interactive : Today's e–commerce industry is interactive because it enables two–way communication between firms and customers. 6. Knowledge Density : Since the creation of the internet, there has been a significant increase in information density as a result of consumer and industry trends toward bettering information quality across all industries. Time and accuracy are saved, and the cost of information gathering, storing, communicating, and processing is reduced. 7. Personalization : The personalization aspect of e–commerce technology arises from the tendency of businesses to modify name, interests, and buy message objects with marketing message that is delivered to the consumers. 7  E-Commerce  Check Your Progress – 5 : 1. Explain unique features of E–Commerce ? 1.8 Types of E–commerce : Typically, when we think about e–commerce, we picture online transactions between suppliers and customers. It can be shown that this theory is accurate at the same time since we can be precise and real based on the types of e– commerce qualities listed below, such as : 1. Business–to–Business (B2B) 2. Business–to–Consumer (B2C) 3. Consumer–to–Consumer (C2C) 4. Consumer–to–Business (C2B) 5. Business–to–Administration (B2A) 6. Consumer–to–Administration (C2A) 1. Business–to–Business (B2B) : Business–to–Business (B2B) E–commerce between businesses is viewed in a variety of ways that distinguish it from its consumer–facing competitors. In business–to–business markets, segmenting the market depending on firm size is a common strategy. Because business–to–business consumers have such a wide range of consumption levels, this often makes sense because huge organisations typically think and act differently than tiny ones. 2. Business–to–Consumer (B2C) : The formation of electronic business interactions between firms and actual clients is different from business– to–consumer e–commerce. It has to do with the e–commerce segment for retail, which is where typical retail trade takes place. 3. Consumer–to–Consumer (C2C) : The term consumer–to–consumer (C2C) e–commerce refers to any internet transaction involving customers for goods or services. These transactions are typically carried out with the aid of a third party that provides an internet platform for transactions. 4. Consumer–to–Business (C2B) : E–commerce of the consumer–to–business variety displays a reversal of the conventional pattern of transferring commodities, which is significant for initiatives involving crowdsourcing. Numerous stores participated in this by making their goods and services available to businesses who required them. 5. Business–to–Administration (B2A) : Online transactions between businesses and government agencies are referred to as business–to– administration e–commerce. It makes extensive use of a variety of services, including but not limited to those related to finances, social security, employment, and legal records. 8 6. Consumer–to–Administration (C2A) : All electronic transactions between The Revolution is citizens and the government will be handled by a model of consumer– Just Beginning to–administration e–commerce. 1.9 Evolution of the Internet and the Web : It has been discovered that government research laboratories appear to be connected via the internet. Since 1994, its growth has resulted in millions of users and a wide range of uses across the globe. In a nutshell, the internet functions as a potent platform that continues to transform how businesses operate and communicate. Because it is a powerful tool for communication, the internet has significant worldwide implications. Millions of individuals use it as a worldwide source of knowledge at work, school, and home. The internet is constantly evolving, and two key milestones of evolution include : Social web Mobile technology These developments changed how people use the Internet. In the social web community, people have access to new forms of communication. Beginning in 2004, Facebook first debuts in a global network with 1,100 million users. As mobile technology develops, more and more individuals can interact quickly and easily around the world. The internet seems to offer the most benefits for mass media activities in terms of demography. Anyone can create their own web page and publish it online for a minimal expenditure. This allows for direct, quick, and cheap business outreach to a vast market without the need for a certain business size model. People from all over the world are expressing and publishing their views and opinions like never before thanks to blogging, which has consolidated social media. The history and development of the Internet from 1995 to the present are shown in the table below. Date Numbers of World Population in Users Percentage December, 1995 16 million 0.4 % December, 1996 36 million 0.9 % December, 1997 70 million 1.7 % December, 1998 147 million 3.6 % December, 1999 248 million 4.1 % March, 2000 304 million 5.0 % July, 2000 359 million 5.9 % December, 2000 361 million 5.8 % March, 2001 458 million 7.6 % June, 2001 513 million 8.6 % April, 2002 558 million 8.6 % July, 2002 569 million 9.1 % September, 2002 587 million 9.4 % March, 2003 608 million 9.7 % September, 2003 677 million 10.6 % October, 2003 682 million 10.7 % 9  E-Commerce December, 2003 719 million 11.1 % February, 2004 745 million 11.5 % May, 2004 757 million 11.7 % October, 2004 812 million 12.7 % December, 2004 817 million 12.7 % March, 2005 888 million 13.9 % June, 2005 938 million 14.6 % September, 2005 957 million 14.9 % November, 2005 972 million 15.2 % December, 2005 1,018 million 15.7 % March, 2006 1,023 million 15.7 % June, 2006 1,043 million 16.0 % Sept, 2006 1,086 million 16.7 % Dec, 2006 1,093 million 16.7 % Mar, 2007 1,129 million 17.2 % June, 2007 1,173 million 17.8 % Sept, 2007 1,245 million 18.9 % Dec, 2007 1,319 million 20.0 % Mar, 2008 1,407 million 21.1 % June, 2008 1,463 million 21.9 % Sept, 2008 1,504 million 22.5 % Dec, 2008 1,574 million 23.5 % Mar, 2009 1,596 million 23.8 % June, 2009 1,669 million 24.7 % Sept, 2009 1,734 million 25.6 % Dec, 2009 1,802 million 26.6 % June, 2010 1,966 million 28.7 % Sept, 2010 1,971 million 28.8 % Mar, 2011 2,095 million 30.2 % Jun, 2011 2,110 million 30.4 % Sept, 2011 2,180 million 31.5 % Dec, 2011 2,267 million 32.7 % Mar, 2012 2,336 million 33.3 % June, 2012 2,405 million 34.3 % Sept, 2012 2,439 million 34.8 % Dec, 2012 2,497 million 35.7 % Dec, 2013 2,802 million 39.0 % June, 2014 3,035 million 42.3 % Dec, 2014 3,079 million 42.4 % June, 2015 3,270 million 45.0 % Dec, 2015 3,366 million 46.4 % 10  1.10 Beginnings and Growth of E–commerce : The Revolution is Just Beginning The practice of trading online is continued by electronic commerce (e– commerce), in which a customer enters a seller's website and initiates a transaction there. Less firmly, it includes methods where the Internet plays a part, such as favoring the customer when choosing or matching merchants and/ or products. The modernization process began in 1977, when the American Law Institute's fixed editorial board and the National Conference of Commissioners on Uniform State Laws established a committee to assess whether current payment categories posed a threat to the country's constitutional order because they were not covered by the UCC. The code, which has been established by all states with the exception of Louisiana, is jointly administered by the ALI and the NCCUSL. The responsibility for drafting anticipated changes to the code rests with the fixed editorial board, which is made up of lawyers from two delegations. An amendment must be reviewed and approved by two organizations after it has been drafted and before it can be submitted for adoption to state legislatures. Edward Guilbert, who was the director of the 1948 Berlin Airlift, had created the idea of electronic data interchange after finding it to be extremely unpleasant to manage corporate operations on paper. The documentation describing the products reached Berlin days after the things were shipped. Eighty years after the Hungarian airlift, Guilbert revised the procedure and included a requirement that proper documentation must come before a plane may take off. He was unable to use his international competence domestically until 1966. While working for the Department of Transportation, he gave the go– ahead for the Office of Facilitation to give company managers a project to show how businesses could increase productivity if the government would cut bureaucracy slightly. Guilbert was so taken aback by the explanation that he began to wonder whether it would be a good idea for business managers to actually implement what they had discussed. Because of this, he and a small group of colleagues founded the Transportation Data Coordinating Committee in 1968 to aid in the coordination of tariffs for international shipments. In the previous five years, e–commerce has experienced unprecedented growth in terms of both the number of participants and the variety and sophistication of features that e–tailers may use to facilitate their products. The impact of e–commerce is expected to continue to grow unabated for the foreseeable future as a result of extending developments in communications technology as well as approach devices and an ever–richer array of software expediencies that designers can use to carry their description across the internet. The momentum built up thus far makes it possible to find useful answers to ongoing issues like security concerns and representational complexity. Brilliant agents will no longer be able to take advantage of the advantage through artificially high pricing as the benefit becomes more elegant and widely distributed. Merchants of nearly identical products and services can seek to differentiate themselves from their rivals and gain market share by ascribing a variety of accompanying values to their core offering. For those who are successful in understanding this, the potential benefits are fantastic. 11  E-Commerce 1.11 Technology and E–commerce in Perspective : The e–commerce sector is steadily evolving and increasing its ability to attract clients by offering them new advantages and contradicting amenities as beneficial technologies emerge. Consumers today have greater access to conveniences than ever before. Due to this, it's essential for online agents to stay current with industry advancements in order to obtain the upper hand in the most recent, highly competitive online market. When looking for clothing, shoes, hats, jewelry, eyeglasses, and other accessories, many people still choose the traditional rout of visiting brick–and– mortar stores since it is effective to compare various designs, styles, sizes, colors, etc. to see which products fit best. If you sell anything made from this content online, you'll have a great chance of luring in a lot of new customers from this target market going forward. You will profit from being able to allow your clients to check on nearly anything they expect only online to find the best things from the comfort of their own homes or offices thanks to innovative solutions for virtual trying–on and fitting. The entire notion of virtual fitting and sizing is still quite simple and comfortable. Your visitors will be able to try on your products by using a standard webcam in addition to a specific application built into your online store. The most recent technological developments enable online business owners to offer this customized, customer–tailored purchasing experience in a relatively simple and affordable manner. Today's cutting–edge online technologies make it possible to connect with customers in a manner that is nearly identical to that found in a physical store. Many of them offer a variety of features, like personalized welcomes, client preference tracking, client–specific promotions creation, dynamic price adjustments, popularity ratings for each and every item in your inventory, real– time consulting, and many more. You can enable co–shopping for your clients by utilizing the most recent social networking tools. In other words, people will be able to shop together while debating items, costs, features, offers, and other details in real time, even from various places around the world. 1.12 Let Us Sum Up : In this lesson, we learned that e–commerce, also known as electronic commerce, is the buying and selling of products and services as well as commercial transactions that may be carried out over electronic networks, mostly with the aid of the Internet. E–commerce often refers to any business transaction carried out over a computer network that involves the transfer of ownership or usage rights for products and services. There are seven different types of special features that are used by e– commerce websites to function, such as. Business–to–Business (B2B), Business– to–Consumer (B2C), Consumer–to–Business (C2B), Business–to–Administration (B2A), and Consumer–to–Administration are just a few examples of the various sorts of e–commerce features that can be noticed (C2A). 12  1.13 Answers for Check Your Progress : The Revolution is Just Beginning  Check Your Progress 1 : 1 : a  Check Your Progress 2 : 1 : b 2 : d  Check Your Progress 3 : 1 : a 2 : b 3 : c  Check Your Progress 4 : 1 : Refer 1.5  Check Your Progress 5 : 1 : Refer 1.7 1.14 Glossary : 1. Business : An organization or enterprising entity engaging in commercial, industrial, or professional activity is referred to as a business. 2. E–Business : E–business, often known as electronic business, is the practice of conducting business via the Internet, intranets, extranets, or a mix of these. 3. E–Commerce : E–commerce, or electronic commerce, is a modern business practice that aims to meet the needs of companies, suppliers, and clients by lowering costs, enhancing product quality, and accelerating delivery times. 1.15 Assignment : 1. Explain Advantages and Disadvantages of E–Commerce. 1.16 Activities : 1. Explain types of E–Commerce. 2. Explain evolution of the Internet and the Web. 1.17 Case Study : 1. Study the beginnings and growth of the E–Commerce. 1.19 Further Reading : 1. Kenneth C. Laudon, Carol G. Traver (2008). E–Commerce : Business, Technology, Society, Second Edition. 2. Jim Collins (2001). Good to Great : Why Some Companies Make the Leap... and Others Don't. 13  E-Commerce Unit A SHORT HISTORY OF 02 DOT COM IPOS UNIT STRUCTURE 2.0 Learning Objectives 2.1 Introduction 2.2 Today's E–Commerce 2.2.1 Success 2.2.2 Failures 2.3 Future Forecasts 2.4 E–Commerce Infrastructure 2.5 The Internet and the Evolution of Commercial Computations 2.6 Academic Restraints with E–Commerce 2.7 Let Us Sum Up 2.8 Answers for Check Your Progress 2.9 Glossary 2.10 Assignment 2.11 Activities 2.12 Case Study 2.13 Further Readings 2.0 Learning Objectives : After learning this unit, you will be able to understand : Idea about the Today's E–Commerce About future forecasts Idea of E–Commerce Infrastructure About the Internet and the Evolution of commercial computations Idea about Academic Restraints with E–Commerce 2.1 Introduction : According to data compiled by Jay Ritter, IPOs (Initial Public Offering) were promoted at a typical price–to–sales ratio of about 6 cycles the level of the prior year at the height of the dot–com effervescence in 2000. When the Fed raised interest rates in late 1999, the economy slowed down and Internet company growth prospects were negatively impacted. This is when the dot– com crisis started. Established technology companies like Microsoft Corp. and Dell Inc. have failed to meet their financial targets and have alarmed investors in the present Internet marketplaces. In March 2000, shares started to decline as a result of remuneration and retail wants, which are modestly based on indicators like web traffic that, inadvertently, rose too high for many dot–com enterprises to gather. 14  Check Your Progress – 1 : A Short History of DOT COM IPOS 1. EDI stands for. a. Initial Public Offering b. Initial Price Offering c. Initial Program Offering d. Initial Private Offering 2.2 Today's E–Commerce : E–commerce is the modern method of conducting business today. Many businesses, both old and new, have started incorporating the electronic aspect. They have decided it is reasonable to set up a website as a tool for electronically locating occupancy. Additionally, it is a fact of life that not all enterprises succeed with elegance. In fact, the following are some crucial reasons why a firm might judge its success or failure : 2.3.1 Success : There are significant aspects that influence the e–commerce industry's success, and you must maintain a balance between all of those factors outlined. 1. Product : The creation, acquisition, fulfilment, or delivery of whatever is being offered are only a few of the many components that make up the initial element of your long–term success in the eCommerce sector. It doesn't matter what you are selling because you could be making and selling handcrafted goods, manufactured goods, or something else. 2. Target Audience : The products you have chosen for the aim of marketing are thought to be inspired by your target market. This is a terrific understanding of who and where your audience is, as well as how you will talk to them and increase sales. Additionally, if you have compiled a list of "must–have" goods or services, you can advertise using specific strategies that you are also offering "nice–to–have" goods and services. 3. Value plan : This is one of the factors that influences a customer's decision to purchase your product more than ever before. If consumers are trying to buy a particular type of solution, they may search on Google or look for it in a vending machine–like Amazon. This makes it difficult to obtain the customer's email address, and a lack of fundamental and owned email marketing channels makes it difficult or impossible to maintain a contact with customers. 4. Transparency : This element promotes trust–building. It helps make your website's contact information readily available. Every website should be able to allow visitors to locate an email address and a phone number at the bottom or top of the page. 5. Boosts overall appointment : Using natural social media outlets and then marketing the brand in realtime on various social media platforms, including as Instagram, YouTube, Facebook, Linkedin, and Pinterest, is the simplest way to increase engagement with your online store. 6. Strong Margin : A good gross margin enables the eCommerce industry to operate smoothly. Additionally, it allows for the investment of additional client acquisition opportunities. Revenue and cost are two aspects that affect this face. The costs associated with marketing must also be considered. There are additional expenses as well, such as : Product Cost, Shipping Cost, and Other Expenses. 15  E-Commerce 7. Low Customer Purchase Cost : It is important to anticipate the lucrative clients that serve as the holy grail for the majority of eCommerce enterprises. Additional elements that affect this one includes : Ideal Margin, Lifetime Value, and Your Competitors. 8. High Repurchase Rate : The most profitable orders, upon which the stores are based, are those that are placed repeatedly. According to the study, the top eCommerce businesses reach the point where recurring consumers account for more than 50% of their overall sales after about 20 months. Additionally, it begins to contribute more to the revenue than the new clients do later. 2.3.2 Failures : Today, the eCommerce sector is expanding quickly. But maintaining an online store is a difficult task. eCommerce startups typically fail for a variety of reasons. You will have worry over a number of concerns if you wish to launch a new eCommerce firm. Additionally, there will be a lot of misunderstanding when you first start your firm. Additionally, that uncertainty will lead to errors in your company. Therefore, you must grasp both how to launch an online business and the factors that led to the collapse of the most recent eCommerce firm. I'll now go over a few causes of e–commerce blunders and failures. 1. Lack of Planning : The secret to any business success is better planning. You must conduct thorough business planning before beginning an online store. You must therefore make plans for how to advertise your website. You must also develop a sound business concept. If not, you won't be able to survive in the real–world market. Furthermore, the process takes a while. As a result, you must continue your process quickly and effectively. It occasionally doesn't work the first time; in which case you must decide and re–plan your task. Your business plan should also include a monetization strategy. Otherwise, you don't achieve successful outcomes. So, the foundation of any business is sound planning. 2. Faulty Inventory Management : The most crucial component of every business is an eCommerce shopping cart software that is centered on inventory management. You will experience a product shortage if you manage the inventory system improperly. Additionally, if your inventory is overstocked when you first launch an online store, it will negatively affect your company's cash flow. Additionally, you will face issues with product shortages if your inventory is depleted. Customers are often highly frustrated when they are unable to find the things they are looking for. You must therefore set up your inventory system in accordance with your business model. In any other case, your online store will fail. 3. Lack of Maintenance : Proper maintenance is one of the eCommerce entrepreneurs' biggest worries. Your business won't last if you don't adequately maintain your system. You must thus draught some terms and conditions. Additionally, you need to update several privacy policies. Furthermore, you must continue the return policy in your terms and conditions. If a customer discovers a flaw in a product after you've sold it, you must either fix the goods or issue a refund. Additionally, you need to treat the customer with respect and be courteous. Additionally, you must check in all of your site's functionalities after 16  a specified amount of time. For update purposes, you must execute this A Short History of testing procedure regularly. You cannot provide the customer with a better DOT COM IPOS platform if the system is not updated. Therefore, you must properly manage your website to lower the likelihood of failure. 4. Lack of Customer Support : A good customer experience is an indication of a successful business. You must always be prepared to assist the customer. Additionally, if any consumers have any questions, you must answer them as soon as you can. Because all firms place a high priority on client pleasure. Additionally, if you do not promptly respond to customer service requests, those clients will disregard your website the next time. Additionally, they won't recommend anyone to this website. As a result, you must promptly and effectively provide customer service. Otherwise, it will have a detrimental effect on your company. 5. Selling Wrong Product : Selecting the ideal product is every company's main strategy. You must understand client demand and choice if you want to launch new eCommerce businesses. If you don't put the needs of the customer first, they won't make any purchases from your website. Your startup will then fail, and you will suffer a tremendous loss. 6. Bad Quality Photos : Customers will see product images for purchasing things when they visit your website. Customers will have an unfavorable image of your company if your product photos are of poor quality. Some buyers find the product description tedious to read. Additionally, customers may judge the quality of your product from the image. Therefore, you must make sure that your website has high–quality images. Otherwise, your eCommerce companies will fail and you will lose a number of clients. 7. Aggressive Competition : There are numerous eCommerce platforms accessible today. However, different platforms can't compete in the real– world market. Only those whose platforms can deliver high–quality services can survive in the current cutthroat industry. In any other case, your company will initially fail. You must therefore provide superior service in order to lower the likelihood that your eCommerce company will fail. 8. Mismatch of Price & Cost : Your firm will continue to run smoothly if you make a profit. However, aiming for excessive profit is bad for business. You must set the pricing of each product in accordance with its cost. Otherwise, you won't be able to balance pricing and cost. You will lose clients if you charge a hefty price in exchange for a significant profit. Your eCommerce companies will fail as a result. 9. Lack of Proper Website : You require a top–notch platform to help your eCommerce startups develop. Moreover, you can build this platform using the right website. Additionally, even if your system is quick, safe, and adaptable, using a quality website will make these qualities meaningless. Lack of a suitable website is one of the main reasons why many startups fail. Therefore, if you do not select an effective website, your organization will have a number of challenges. 10. Lack of Patience : You require a top–notch platform to help your eCommerce startups develop. Moreover, you can build this platform using the right website. Additionally, even if your system is quick, safe, and 17  E-Commerce adaptable, using a quality website will make these qualities meaningless. Lack of a suitable website is one of the main reasons why many startups fail. Therefore, if you do not select an effective website, your organization will have a number of challenges.  Check Your Progress – 2 : 1. E–Commerce success includes. a. Product b. Target Audience c. Transparency d. All of Above 2. E–Commerce failures includes. a. Selling wrong product b. Bad quality photos c. Lack of Customer supports d. All of Above 2.3 Future Forecasts : The eCommerce industry is expanding and will soon undergo a significant evolution. It significantly alters consumer behavior, demands, and shopping trends. In just 25 years, this industry has generated global revenues of more than 2 trillion US dollars. The eCommerce sector has been completely transformed by the adoption of new technology, extensive customization, policy evolution, and clever integration with cutting–edge solutions. Additionally, you may now combine the physical and online selling processes to maximize your use of these two channels. We'll talk about future e–commerce trends today, which will illustrate how the sector will develop over the coming years. You must stay current with the upcoming eCommerce trends in this area if you want to keep up with this fast–paced market. You can use it to boost the client purchasing experience. 1. The Growth of Global Retail eCommerce Sales : Worldwide, e–commerce sales have been steadily increasing. In the past 25 years, it has completely transformed the retail industry. Statista projects that sales will rise from $1.3 trillion in 2014 to $4.5 trillion in 2021. With the development of technology and the shift in consumer demand, it has undergone significant change. Online shopping has recently risen to the top of the list of web activities. Therefore, business owners place a strong emphasis on improving the user experience. They are constantly implementing innovative procedures that give their customers a more pleasant online purchasing experience. Websites today are easier to navigate and more user–friendly. It enables users to choose their items and carry out the relevant tasks with ease. Additionally, these websites provide a variety of secure payment channels that have been validated. The majority of them feature refund policies and a committed support staff. The companies also implement stringent security measures to guarantee the privacy of all customer data. These facts are encouraging customers to shop more on eCommerce sites than in brick–and–mortar stores because they eliminated all the trouble of going to stores. 18 2. Increase in Online Shopping : A Short History of DOT COM IPOS In recent years, mobile shopping has grown significantly. Customers from all over the world plan to use their smartphones or tablets to buy goods and services. As mobile shopping increases, online businesses also adopt the mobile– first strategy. For online purchases, people are more likely to use their smartphones. In 2020, there are expected to be 7.26 billion mobile users worldwide. And in the upcoming years, this e–commerce trend will continue. Nowadays, customers frequently verify the merchandise on their portable devices before placing their orders. For online retailers, it necessitates the use of mobile optimization. Online sales are expected to be dominated by mobile devices by more than 50% share by 2022. Therefore, if eCommerce businesses wish to experience rapid company growth, they must make their websites mobile–friendly. 3. B2B eCommerce will remain more successful than B2C eCommerce : Both B2B and B2C businesses are changing their strategies in response to the emerging trend of eCommerce. It is believed that B2B eCommerce is outperforming B2C and will do so in the near future. In business–to–business eCommerce, suppliers sell products to other business owners. Additionally, B2B reduces the inconvenience of manual procedures by employing an online sales gateway. Through internet platforms, it enables businesses to sell and distribute their goods to other businesses. However, a larger online presence at a reduced cost will enhance your sales. Additionally, they estimated that B2B eCommerce will increase at a 10% compound annual growth rate (CAGR) during the following five years. This paper illustrates the potential for US B2B eCommerce. Due to the growing popularity of B2B eCommerce, online retailers are entering this industry. Customers will have seamless online shopping experiences thanks to it. 4. Personalized Multichannel Distribution : Modern sales strategies like omnichannel retail make sure that customers have a seamless purchasing experience. Multi–channel eCommerce refers to the promotion and sale of goods through various channels, including marketplaces, online stores, and even physical stores. It will interestingly muddy the lines between offline and online outlets. More opportunities will exist for customers to learn more about your goods or services. Additionally, when you advertise your brand through various media, it may lead to new potential for sales and brand recognition. Customers may, however, use a variety of channels when purchasing. It enables a user to begin their adventure on one channel and finish their purchase on another. To help their eCommerce businesses grow, many marketing methods have used the Omnichannel retail approach. 5. Voice Shopping Will Take the Lead : Online shoppers of the next generation are increasingly using voice shopping. By 2022, more than 50% of all searches, according to researchers, will be voice–driven. Voice shopping has already been implemented in online grocery stores run by major players like Amazon, Alibaba, Walmart, and other enormous corporations. When Amazon introduced its smart speaker, Echo, in 2014, this eCommerce trend began to gain popularity. 19  E-Commerce You'll be shocked to learn that more than 30% of internet users in the US have used voice assistants to research products or make purchases. Because of this, internet merchants haphazardly incorporate voice commerce into their operations. As a result, customers may effortlessly make purchases using their voices. The purchasing procedure will be more streamlined with voice shopping. By providing a vocal description, users can search for, evaluate, compare, and buy things. These data and figures demonstrate that there will be a significant rise in voice shopping over the next few years. 6. Social Media is used in online retail : Social media is no longer just a tool for bringing people together. Social networking platforms enable retailers to sell their goods directly while also advertising their goods and services. Shoppers on social media can now buy items by clicking the Buy button on Facebook or Instagram Checkout. The social media platform is frequently the initial point of contact for many customers with any company. Consumers today prefer to read reviews written by actual people. They support the brands and are more likely to purchase goods from such businesses. However, Facebook and Instagram influencers can assist online store owners in widely promoting their business. Your audience's interaction with your brand will be continuously influenced by social media exposure. As a result, social media emerges as a remarkable marketing technique to boost client loyalty and maximize sales for your company. Both social media users and social influencers are steadily growing in number. Therefore, in order to explore more chances for their stores, online retailers need develop stronger social marketing techniques. 7. More Ecommerce Use of AI : With the aid of artificial intelligence, e–commerce or digital shops have advanced business prospects. Your company may evaluate customer behavior and store data more effectively by incorporating AI technology. Additionally, AI has given users access to a variety of cutting–edge experiences. They may use voice assistant, visual search, personalized recommendations, and other functions thanks to it. The purchasing experience will be worthwhile with these cutting–edge gadgets. Additionally, an online retailer can use AI to enhance the price module and product depiction. In fact, a recent report by Business Insider predicts that by 2020, chatbots would handle more than 85% of client contacts. Numerous eCommerce business owners are currently utilising AI tools to increase lead generation, improve user experience, and better understand their customers. 8. A game using headless eCommerce : Due to its simplicity, headless eCommerce is becoming more and more popular among store owners. Both the front end and the back end–use different types of technology. Regular front ends make the most of content while eCommerce back ends can efficiently manage your business's operations. Your eCommerce platform's frontend and backend are separated by headless eCommerce. Let's say a customer clicks the Buy Now button; as soon as that happens, the store receives a call to fetch data from the backend. This 20 is basically how traditional eCommerce works. By leveraging an API to access A Short History of the data, headless eCommerce will speed up the transaction. DOT COM IPOS Using Headless eCommerce has a lot of benefits for online retailers.  The ability to use successful marketing campaigns without negatively impacting the backend eCommerce operation;  Familiarity with the web developer;  Ownership of the site structure;  Lower costs for customer acquisition and retention; and  Higher conversion rates compared to traditional websites and eCommerce platforms  Once more, it is compatible with open–source programs that facilitate expansion. 9. Using augmented reality to see purchases : Having everything delivered to your door thanks to online shopping makes modern living simpler. You can now make the purchase in only a few clicks, saving time on traffic and line waiting. You also have the freedom to quickly compare the price and quality of many different things as you shop. The eCommerce buying experience is now better than ever thanks to quick delivery. Online purchasing does have a significant drawback in addition to its many advantages. Not every time can you see the product in great detail. Customers can make incorrect assumptions about the goods and experience high unhappiness. Virtual and augmented reality, however, can close this gap. It gives you a 360–degree view of any object or location. As a result, it is simple for you to see how it will help you achieve your goals in real life. As a result, VR offers customers a virtual tour of how a thing appears in real life. In order to determine whether it satisfies their demands or not, AR provides additional details. Take the well–known beauty retailer Sephora as an example. Customers can try on various products and create different looks using their "Virtual Artist" tool. This gives them more self–assurance and guarantees a unique shopping experience. Anyone is unlikely to say no to this facility, especially fashion enthusiasts. 10. Growing Adoption of Subscription Models : Customers that use digital products prefer subscription–based business models to one–time purchases. It gives them self–assurance regarding their expenditures. Additionally, eCommerce business owners find it to be a simpler approach to bring in new customers and keep them coming back. Over the past few years, this eCommerce model has gained popularity. You may lay the groundwork for your internet business by having a solid understanding of how it operates and by establishing a reasonable pricing strategy. Customers can pay recurrent fees on a monthly or annual basis to access a good or service. Customers need not pay a significant sum all at once as a result. Instead, customers have a limited time during which to use the goods. With the option to choose whether to renew the subscription after it ends. 21  E-Commerce Companies like Netflix and Apple Music are converting to subscription business models in order to develop enduring relationships with their customers and recurrent income. Additionally, digital payment systems like PayPal, Stripe, and WePay make it simple to set up regular payments. Start considering this cutting–edge method right away if you want to keep this business going!  Check Your Progress – 3 : 1. CAGR stands for. a. Compound Annual Growth Rate b. Cost Annual Growth Rate c. Continue Annual Growth Rate d. Commerce Annual Growth Rate 2.4 E–Commerce Infrastructure : In a rapidly evolving environment, it is essential to adapt corporate needs to reflect shifting client needs, market trends, and technological demands. Whether you are new to e–commerce or are currently involved, improving organizational efficiency should be your top focus. When attempting to increase productivity, it is essential to have a plan in place as well as a flexible infrastructure that can cater to the needs of the user. Ecommerce Infrastructure Categorization : 1. Ecommerce environment : This outlines the broad principles and structures that will qualify your company to operate online. It adheres to the same standards as technical tools, legal and regulatory frameworks, and service provider participation. 2. Infrastructure services : These are the ones that define e–commerce features. The ecommerce business will receive specific functions from one or more providers working in concert. When a user checks out their purchases, services like user authorization, payment processing, order validation, etc. are helpful. The services that the infrastructure services offer to a user or an organization can be used to further categories them. Common infrastructure service suppliers to the customer include network services, directory services, payment services, and security services. 3. Ecommerce solution providers : They provide a full solution for online retailers without an implementation crew. Ecommerce Infrastructure Components : The hardware, software, and network functions of each component are listed along with their primary functions in e–commerce infrastructure. You can set up the e–commerce platform more effectively if you are aware of how the various components work. 1. Hardware : Hardware has many functions, one of which is giving you access to the internet and your network. You can store, retrieve, and utilize your data thanks to it. Several significant hardware elements include : Computers, hubs, routers, data centers, and other devices. Servers : A server is a software that gives other applications the functionality they need. It might be a tool or a computer software, and 22  it can serve a variety of functions. Proxy servers, web servers, application A Short History of servers, etc. are a few examples of common servers. DOT COM IPOS 2. Software : Services like system management tools, analytical tools for predicting your business, and service providers are examples of software components. Management Tools : Running an e–commerce company requires managing a number of services, including content, databases, and resources. Data centers, enterprise resource planning, and content management are a few examples of software services that aid in effectively managing a company's resources. Analytical Tool : Since e–commerce is expanding daily, it is more competitive. In order to improve your system's performance, it is crucial to assess your capacity. Tools for text and web analytics will aid in determining the value of your e–commerce website. Middleware : Between service providers and service customers, middleware serves as an intermediary. Data access for components, communication protocols, specialized servers, or a combination of all of them, could be the cause. API : The construction of software applications uses a protocol or tool known as an application program interface. It outlines the appropriate interactions between various software components. 3. Network : Through the Internet, the network offers the communication channel and services needed to connect users, processes, applications, services, and external networks. Internet Connectivity : Establishing the link between diverse processes and equipment. Firewalls : Your networks are shielded from outside intruders by firewalls. It provides an additional degree of protection by allowing you to choose the types of traffic that are allowed through. Security Services : Even firewalls occasionally may fall short in defending against hackers, including security services. DNS : A system for naming your website is the domain name system. They find your domain name's internet protocol address. Effective Planning and Management : Ignoring the value of organizing and creating an ecommerce infrastructure is a huge short–term mistake for an owner of an online store. Your infrastructure must be based on the requirements and priorities of your business. Even managing your e–commerce infrastructure can be difficult, but with clear planning and management, risk can be minimized and availability can be guaranteed.  Check Your Progress – 4 : 1. Explain E–Commerce Infrastructure ? 23  E-Commerce 2. DNS stands for. a. Domain Name Server b. Domain Name System c. Domain Name Service d. Domain Name Structure 3. API stands for. a. Application Program Instruction b. Application Program Information c. Application Program Interface d. Application Program Infrastructure 2.5 The Internet and the Evolution of Commercial Computations : Every type of commercial communication, including those involving the purchase of products or services handled electronically by telephones, televisions, computers, and the Internet, is taken into consideration by electronic commerce. It is believed that these are the channels through which many businesses should advance in the future. With more people using the Internet to connect, electronic commerce is becoming more widely accepted among them. Many individuals consider online shopping or other forms of electronic trade, which are considerably more prevalent than these. More ways than we can imagine will be impacted by electronic commerce. The current commercialization of the Internet has substantially sped up the development of electronic commerce, even though it encompasses all forms of electronic commercial communication. The U.S. government's development of and investment in computer networking technologies, which first surfaced in the 1960s, laid the groundwork for the modern Internet. The Internet was initially used to link and communicate information between colleges and scientists conducting government–sponsored research in various regions. On the other side, the network became commercialized in the 1990s. Given that the volume of corporate communication conducted electronically has increased at an unreasonable rate. According to projections, electronic commerce will generate an amount ranging from $8 billion in 1997 to over $327 billion in 2002. On the Internet, services and goods are arranged in a variety of ways. As an illustration, many retail establishments and catalogue businesses currently provide their produce for client selection and purchase online. There are also numerous new online or "virtual" retailers operating on the World Wide Web, offering everything from old cars and computer hardware to CDs and books. Additionally, service providers including real estate agents, insurance providers, and travel agencies have online presences. For instance, some airlines offer passengers who book tickets online affordable "cyberfares." However, online shoppers are not required to make a direct trip to the store of their choice in order to make a purchase. Numerous media websites, ISPs, and search engines prominently acknowledge retailers and provide direct links to their websites. Specialty retailers, big discounters, services, and malls/ marketplaces from around the globe all have a presence online. 2.6 Academic Restraints with E–Commerce : E–commerce–related academic disciplines relate to both technical and behavioral approaches : 24  Technical strategy : A Short History of DOT COM IPOS Information technology Science in management Information technology Academic Disciplines  Behavioral approach : Information system Economics Marketing Management Finance/accounting Sociology 2.7 Let Us Sum Up : While studying this unit, we discovered that IPOs, which were promoted at a traditional price–to–sales ratio of six cycles over closing year's level, serve as an elevated of the dot–com effervescence since 2000. It should be emphasized that e–Commerce is a modern method of conducting business, and many organizations–both old and new–have started implementing electronic elements. As the Internet has eliminated the geographical aspect from the transaction, the quantity to quality affinity of e–commerce is also becoming more and more apparent. E–commerce has continued to expand more than any other technologically enabled phenomenon over the past 50 years, dreaming of a variety of information technologies as well as fundamental computer science ideas. 2.8 Answers for Check Your Progress :  Check Your Progress 1 : 1 : b  Check Your Progress 2 : 1 : d 2 : d  Check Your Progress 3 : 1 : a 25  E-Commerce  Check Your Progress 4 : 1 : Refer 2.4 2 : b 3 : c 2.9 Glossary : 1. Server : A server is a software that gives other applications the functionality they need. It might be a tool or a computer software, and it can serve a variety of functions. 2. Firewalls : Your networks are shielded from outside intruders by firewalls. It provides an additional degree of protection by allowing you to choose the types of traffic that are allowed through. 2.10 Assignment : 1. Explain the causes for success and failure of E–commerce. 2.11 Activities : 1. Study evolution of commercial computing. 2.12 Case Study : 1. Study the academic disciplines where E–commerce can be used ? 2. Study future forecasts of E–Commerce. 2.13 Further Reading : 1. Kenneth C. Laudon, Carol G. Traver (2008). E–Commerce : Business, Technology, Society, Second Edition. 2. Jim Collins (2001). Good to Great : Why Some Companies Make the Leap...and Others Don't. 26  Unit ELECTRONIC COMMERCE 03 TECHNOLOGY UNIT STRUCTURE 3.0 Learning Objectives 3.1 Introduction 3.2 The Internet and the Web 3.2.1 Internet 3.2.2 World Wide Web 3.3 Packet Switching Networks 3.4 Intranet and Extranet 3.5 Internet–II 3.6 Internet Service Provider (ISP) 3.7 Basics of Web Server 3.8 Hardware and Software for Web Servers 3.9 Electronic Mail (E–Mail) 3.10 Electronic Commerce over the Internet 3.11 Examples of Internet E–Commerce 3.12 Let Us Sum Up 3.13 Answers for Check Your Progress 3.14 Glossary 3.15 Assignment 3.16 Activities 3.17 Case Study 3.18 Further Readings 3.0 Learning Objectives : After learning this unit, you will be able to understand : Idea about the Internet and Web About Packet Switching Networks Idea of Internet, Internet–II and Extranet About the Hardware and Software for Web Servers Idea about E–mail Detail of Electronic Commerce on Internet and its example Idea of Starting of New Business 27  E-Commerce 3.1 Introduction : Electronic commerce, sometimes known as ecommerce, is the umbrella term for a variety of economic activities or commercial exchanges that include the transfer of information over the Internet. It includes a wide range of diverse business types, including customer–based retail websites, sale or music websites, and commercial deals transferring stocks and services between corporations. It is currently one of the most important arrangements to appear on the Internet. Customers can swap goods and advantages inductively through e–commerce without being constrained by time or location. Electronic commerce has advanced quickly over the previous five years and is expected to keep growing at this rate or perhaps accelerate. As more companies move parts of their activities online, the boundaries between "customary" and "electronic" trade will gradually disappear in the near future. 3.2 The Internet and The Web : 3.2.1 Internet : The latest buzzword in computer world is "Internet". The term Internet has been copied from two terms : Interconnection and Network. Internet is short form of the term Internetwork. A network is simply a group of computers that are connected together for sharing information and resources. Using internet, organizations on all over the world can exchange data, people can communicate with each other in a faster and effective way, and researchers can gather information in their respective areas of research. With the help of video conferencing over internet, it has become possible that people can even see each other while communicating. Even one can do all his shopping sitting back at home. He does not bother to go to the crowded market place. Internet is the largest network spread across the world, linking together thousands of individual networks of universities, educational, research institution, military and government agencies, industrial and financial organization. Internet offers many services like WWW, E–Mail, Discussion Groups, Chat, File Sharing, Instant Messenger, Games, and E–Commerce. In short slowly market or businesses take place over the "Internet". It is an unlimited commercial opportunity. It is a set of computers talking over fiber optics, phone lines, satellite links, and other media. It is a cyber space where data surfing can be done. It is an ocean of information. It is a gold mine of professionals from all fields sharing information about their work. It is a worldwide interconnected system of thousands of computer networks, each network in turn links thousands of computers together. Definition of Internet : "Internet is a global system of interconnected computer networks that use the standard internet protocol suits". "Internet is a collection of networks or network of networks". "It is the name for a vast, worldwide system consisting of people, information and computers". 28  Electronic Commerce Technology The Internet 3.2.2 World Wide Web : WWW is stand for World Wide Web and also known as W3 or Web. The web began in 1989 at CERN, was invented by Tim Berners–Lee, the European center for nuclear research. WWW is hypertext–based information retrieval tool. The internet includes a browsing service that expands the concept of hypermedia like Text, Movies, Pictures, and Sounds to include many computers known as World Wide Web or WWW, the service is a mec