Prerequisite: None

Course learning outcomes

At the end of the course candidates should be able to: -

(i) Explain business technologies, standards and processes involved in implementing e-commerce

(ii) Apply advance modes on usage of information technology in business activities Develop simple e-commerce applications for specific areas of business that had potential commercialization values.

Course Contents: 

History of e-Commerce: Development of telegraph, mail orders, call centres, EDI, web businesses, network economy, real and virtual network, Website design for commerce, Payment systems on E- commerce, Security aspects of e-Commerce, Legal issues on E- Commerce and E Businesses

Required Readings

1. Turban, E., Lee, J. K., King, D., Liang, T. P., & Turban, D. (2009). Electronic commerce 2010.Prentice Hall Press.

2. Lytras, M. D., Damiani, E., & De Pablos, P. O. (2008). Web 2.0: The business model.Springer.

Recommended Readings

1. Baltzan, P., & Phillips, A. (2009). Business Driven Technology with Premium Content Card. McGraw-Hill, Inc.

2. Gloor, P. (2011). Making the e-business Transformation. Springer Publishing Company, Incorporated.

3. Turban, E., King, D. R., Lang, J., & Lai, L. (2009). Introduction to electronic commerce.

4. Andam, Z. R. (2014). e-Commerce and e-Business.

 


WHAT IS ELECTRONIC COMMERCE?

Electronic commerce or e-commerce is a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet. Electronic commerce, commonly written as e-commerce or eCommerce, is the trading or facilitation of trading in products or services using computer networks, such as the Internet or online social networks. E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. In its simplest form e-commerce is the buying and selling of products and services by businesses and consumers over the Internet

People use the term "ecommerce" or "online shopping" to describe the process of searching for and selecting products in online catalogues and then "checking out" using a credit card and encrypted payment processing. Internet sales are increasing rapidly as consumers take advantage of:

  1. lower prices offered by vendors operating with less margin than a bricks and mortar store
  2. greater convenience of having a product delivered rather than the cost of time and transport and parking of going to a store
  3. sourcing product more cheaply from overseas vendors
  4. great variety and inventory offered by online stores
  5. comparison engines that compare and recommend product
  6. auction sites, where they did for goods

E-commerce can provide the following benefits over non-electronic commerce:

  1. Reduced costs by reducing labour, reduced paper work, reduced errors in keying in data, reduce post costs
  2. Reduced time. Shorter lead times for payment and return on investment in advertising, faster delivery of product
  3. Flexibility with efficiency. The ability to handle complex situations, product ranges and customer profiles without the situation becoming unmanageable.
  4. Improve relationships with trading partners. Improved communication between trading partners leads to enhanced long-term relationships.
  5. Lock in Customers. The closer you are to your customer and the more you work with them to change from normal business practices to best practice e-commerce the harder it is for a competitor to upset your customer relationship.
  6. New Markets. The Internet has the potential to expand your business into wider geographical locations.

BUSINESS TO CONSUMER MODEL

 B2C Model

In B2C Model, a consumer goes to the website, selects a catalog, orders the catalog and an email is sent to business organization. After receiving the order, goods would be dispatched to the customer. Following are the key features of a B2C Model

  1. Heavy advertising required to attract large no. of customers.
  2. High investment in terms of hardware/software.
  3. Support or good customer care service

 

ADVANTAGES AND DISADVANTAGES OF E-COMMERCE


Advantages for customers

  • Convenience. Every product is at the tip of your fingers on the internet, literally. Type in the product you are looking for into your favorite search engine and every option will appear in a well organized list in a matter of seconds.
  • Time saving. With e-commerce there is no driving in circles while looking and digging in hopes of finding what you need. Stores online offer their full line as well as use warehouses instead of store fronts—products are easy to locate and can be delivered to your door in just days.
  • Options, options, options! Without driving from store to store the consumer can easily compare and contrast products. See who offers the best pricing and have more options to choose from. While a physical store has limited space, the same store on the internet will have full stock.
  • Easy to compare. Side by side comparisons are readily available and easy to do. When products are placed online, they come with all the specifics, and they want you to compare them with others, know they have the best options and come back for more!
  • Easy to find reviews. Because the competition is high, companies online want you to look at other consumer reviews. Good and bad reviews are on every site, not only can you see if the product is liked, you can also see the reasons behind the thumbs up or down.
  • Coupons and deals. With every online business wanting you, more and more coupons and deals can’t be avoided, which are totally great for customers. With major sites that act as department store, you may find items up to 80% off! Take advantage of the competition and find the best price available.

Advantages for business

  • Increasing customer base. The customer base is every business’s main concern, online or off. When online, a business doesn’t have to worry about getting the best property in town, people from around the world have access to their products and can come back at anytime.
  • Rise in sales. By not managing a storefront, any business will have more sales online with a higher profit margin. They can redistribute money to make the consumer shopping experience faster and more efficient. While being available to international markets, more products will sell.
  • 24/7, 365 days. If it’s snowing and the roads are closed, or it’s too hot and humid to even step outside in the summer, or a holiday that every store in town closes, your online business is open for consumers 24/7 every day of the year. The doors never close and profits will keep rising.
  • Expand business reach. A great tool on the internet is…translation! A business online does not have to make a site for every language. With the right marketing, every consumer around the globe can find the business site, products and information without leaving home.
  • Recurring payments made easy. With a little research, every business can set up recurring payments. Find the provider that best suits your needs and billing will be done in a consistent manner; payments will be received in the same way.
  • Instant transactions. With e-commerce there is no more waiting for the check to clear, or a 30-day wait for certain other types of payment. Transactions are cleared immediately or at most two to three days for the money to clear through the banking system.

Disadvantages for customers

  • Privacy and security. Before making instant transactions online, be sure to check the sites certificates of security. While it may be easy and convenient to shop, no one wants their personal information to be stolen. While many sites are reputable, always do your research for those with less than sufficient security.
  • Quality. While e-commerce makes everything easily accessible, a consumer cannot actually touch products until they are delivered to the door. It is important to view the return policy before buying. Always make sure returning goods is an option.
  • Hidden costs. When making purchases, the consumer is aware of the product cost, shipping, handling and possible taxes. Be advised: there may be hidden fees that won’t show up on your purchasing bill but will show up on your form of payment. Extra handling fees may occur, especially with international purchases.
  • Delay in receiving goods. Although delivery of products is often quicker than expected, be prepared for delays. A snow storm in one place may throw off the shipping system across the board. There is also a chance that your product may be lost or delivered to the wrong address.
  • Need access to internet. Internet access is not free, and if you are using free wifi, there is the chance of information theft over an unsecure site. If you are wearing of your public library, or cannot afford the internet or computer at home, it may be best to shop locally.
  • Lack of personal interaction. While the rules and regulations of each e-commerce business is laid out for you to read, there is a lot to read and it may be confusing when it comes to the legalities. With large or important orders, there is no one you can talk to face to face when you have questions and concerns.

Disadvantages for business

  • Security issues. While businesses make great efforts to keep themselves and the consumer safe, there are people out there that will break every firewall possible to get the information they want. We have all seen recently how the biggest and most renown business can be hacked online.
  • Credit card issues. Many credit card businesses will take the side of the consumer when there is dispute about billing—they want to keep their clients, too. This can lead to a loss for e-commerce business when goods have already been delivered and the payment is refunded back to the consumer.
  • Extra expense and expertise for e-commerce infrastructure. To be sure an online business is running correctly, money will have to be invested. As an owner, you need to know transactions are being handled properly and products are represented in the most truthful way. To make sure you get what you need, you will have to hire a professional to tie up any loose ends.
  • Needs for expanded reverse logistics. The infrastructure of an online business must be on point. This will be another cost to the business because money will need to be invested to ensure proper handling of all aspects of buying and selling, especially with disgruntled consumers that want more than a refund.
  • Sufficient internet service. Although it seems that everyone is now on the internet all the time, there are still areas in which network bandwidth can cause issues. Before setting up an e-commerce business, be sure your area can handle the telecommunication bandwidth you will need to run effectively.
  • Constant upkeep. When a business has started as e-commerce, they must be ready to make changes to stay compatible. While technology grows, the systems that support your business must be kept up to date or replaced if needed. There may be additional overhead in order to keep data bases and applications running.

DESIGNING E-COMMERCE APPLICATION


 Objectives:

  1. Understand ICT Infrastructure
  2. Understand shopping basket for e-commerce
  3. Use scripting language to implement E-Commerce functionality

 

ICT INFRASTRUCTURE

1. SERVER COMPUTERS

SERVER COMPUTER for online web applications is called a web server. Web server is named so because it hosts web application. E-commerce is one of the web applications.

2. COMMUNICATION SYSTEM

3. CLIENT COMPUTER

 

 

 

 

ELECTRONIC PAYMENT SYSTEMS


 

 

Reference: http://www.tutorialspoint.com/e_commerce/e_commerce_payment_systems.htm

E-COMMERCE SECURITY


 

Ref: http://www.tutorialspoint.com/e_commerce/e_commerce_security.htm

 

 

 

References

www.w3schools.com

http://valentin.radulescu.me/simple-ecommerce-php-part2/

Tools: Xamp - Linux

Terminal command: 

wget http://sourceforge.net/projects/xampp/files/XAMPP%20Linux/1.8.3/xampp-linux-1.8.3-2-installer.run/download

 

http://sourceforge.net/projects/xampp/

http://sourceforge.net/projects/wampserver/

 http://ubuntuportal.com/2013/12/how-to-install-xampp-1-8-3-for-linux-in-ubuntu-desktop.html

 

MYSQL

http://www.rackspace.com/knowledge_center/article/mysql-resetting-a-lost-mysql-root-password