Assignment

Fundamental of e- commerce

Bba 3 year

Submitted to

Keerti mam

Submitted by

Bhavna pathak

Q1). What is e-commerce? What are its advantages and disadvantages? Also discuss its scope.

Ecommerce, also known as electronic commerce or internet commerce, refers to the

buying and selling of goods or services using the internet, and the transfer of money
and data to execute these transactions.

Advantages of e commerce

E-commerce eliminates the need for physical stores and allows businesses to
expand their customer base. On top of eliminating the possibility of long lines, e-
commerce sites offer a huge advantage to both shoppers and stores that aren't located
in major urban areas. Even if you are located in a big city, e-commerce opens up new
markets, allowing you to develop a new business model geared toward your expanding
consumer base. Many businesses have found particular success in developing good

Digital products can be sold online with little-to-no overhead cost. Thanks to e-
commerce, consumers can purchase music, videos, or books instantaneously. Stores
can now sell unlimited copies of these digital items, without having to worry about where
they'll store the inventory.

E-commerce also allows your business to scale up easier than physical retailers.
When a brick-and-mortar store grows, it needs to consider how it will serve more
customers in the same small space. More employees are needed to expedite check-
outs, more of the floor gets dedicated to forming lines, shoppers feel more crowded as
customer base and inventory grows. Of course, logistics always get tougher as a
business grows, no matter how the business operates. With the right choice of a third-
party logistics provider, however, e-commerce companies can manage this growth
without worrying about the physical store aspects.

Keeping in contact with customers is often easier for e-commerce businesses.

Since the e-commerce merchant captures contact information in the form of email,
sending out both automated and customized emails is simple. Let customers know
about a sale, promote a new product, or just check in with customers for a personal
touch—all with minimal effort. Additionally, web tools like cookies allow for superior
store customization and consumer behavior analysis.

Disadvantages of e commerce

Many consumers still prefer the personal touch and relationships formed at a
brick-and-mortar shop. This can be especially valuable to customers shopping for
specialized products, as they may want to consult an expert about the best product for
their needs. A solid customer service hotline can't replace face-to-face interaction with a
specialized sales rep. Additionally, many customers want to experience the product
before purchase, like when shopping for clothes.

Security and credit card fraud are also huge risks when dealing with online
shopping. Consumers run the risk of identity fraud and similar hazards every time they
enter their details into a site. If your site doesn't convince shoppers that the check-out
process is secure, they could get scared out of buying. On the other hand, businesses
run the risk of phishing attacks and other forms of cyberattacks. If one of your
employees opens just one malicious link, it could compromise your website
functionality, financial information—or worst of all, your customers' information.

If shopping is about instant gratification, then consumers are left empty-handed.

They often have to either pay more for expedited shipping or wait for several days until
the product arrives. The wait could drive away customers. For businesses, the shipping
 becomes extra complicated when a customer wants a refund. Growing e-commerce
businesses need to expand their reverse logistics functions, meaning the shipping back
of goods and refunding of costs.

Speaking of costs, there's a multiplicity of regulations and taxes that come with

opening an e-commerce shop (and a fair amount of confusion, as well). On June
21, 2018, the U.S. Supreme Court ruled that states can charge sales tax on e-
commerce transactions. But the Supreme Court left it up to states to decide what size of
online retailers must pay sales tax, and what that tax rate will be. That's just one
example of the regulatory confusion that has stemmed from e-commerce's rapid growth,
and it doesn't even touch on international trade laws. The result is a regulatory
patchwork that retailers are responsible for learning, no matter how complicated.

Scope of e commerce

1. Selling can be centered around the Global client

2. Pre-deals, subcontracts, and supply
3. Financing and protection
4. Commercial exchanges, requesting, conveyance installment
5. Product administration and support
6. Cooperative item improvement
7. Distributive co-employable working
8. Use of open and private administrations
9. Business to organization (client)
10. Transport and coordinations
11. Public acquisition
12. Automatic exchanging of computerized merchandise
13. Accounting
Q2. Define EDI (Electronic Data Interchange). Explain its main characteristics.

Electronic Data Interchange (EDI) is the electronic interchange of business

information using a standardized format; a process which allows one company to
send information to another company electronically rather than with paper.
Business entities conducting business electronically are called trading partners.

Characterstistics of edi

 It reduces inventory costs.

 It displays information globally.
 Connects customer and seller at long distances.
 It automates the transaction process.
 It saves time, cost and energy.
 It transmits structured messages and provides
strategic benefits.
Q3. Define the value chain in business.
 A value chain is a set of activities that a firm
operating in a specific industry performs in order to
deliver a valuable product (i.e., good and/or service)
for the market. ... The concept of value chains as
decision support tools, was added onto the
competitive strategies paradigm developed by Porter
as early as 1979.

Q4. Write short notes on :

 Search engine
 ISP

Digital certificate

a).Search engine: A search engine is a web-based

tool that enables users to locate information on the
World Wide Web.

b).ISP: An Internet service provider (ISP) is an

organization that provides services for accessing,
using, or participating in the Internet. Internet
service providers can be organized in various
forms, such as commercial, community-owned, non-
profit, or otherwise privately owned.

c).digital marketing; Digital marketing is the use of

the Internet, mobile devices, social media, search
engines, and other channels to reach consumers.

Q5. Write short note on:

 Security in electronic payment system

 Encryption policies in e-commerce

 Internet protocols

 Web based client/server

a).security in electronic payment system: The Secure Electronic Transaction

system (SET) is a set of security protocols used to facilitate electronic
payments. With SET, a few components are integrated to authenticate and
 ensure confidentiality: digital wallet software, merchant software, and
payment gateway server software.

b),encryption policy in e commerce: encryption system each user has two

keys-public key and private key. The encryption and decryption algorithms
are designed in a way so that only the private key can decrypt data that is
encrypted by the public key. And the public key can decrypt data, encrypted
by the private key.

c).internet protocols: nternet Protocol (IP) – a set of rules that dictate how
data should be delivered over the public network (Internet). Often works in
conjunction with the transmission control protocol (TCP), which divides
traffic into packets for efficient transport through the Internet; together they
are referred to as TCP/IP.

d).web based client server: Client–server model is a distributed application

structure that partitions tasks or workloads between the providers of a
resource or service, called servers, and service requesters, called clients. ...
Examples of computer applications that use the client-server model are
Email, network printing, and the World Wide Web.

Q6. What is supply chain? What are its advantages in e-commerce?

A supply chain is a network between a company and its suppliers to produce and
distribute a specific product to the final buyer. ... The supply chain also represents the
steps it takes to get the product or service from its original state to the customer.

Advantages of supply chain

1. HIGHER EFFICIENCY RATE:

When your business is able to incorporate supply chains, integrated logistics, and product
innovation strategies, you’ll be in a great position to not only predict demand as well as to act
accordingly. And this is, without any doubt, one of the main supply chain management benefits.
Why? When your business implements supply chain management systems, it will be able to
adjust more dynamically to the fluctuating economies, emergency markets, and shorter product
life-cycles.
2. DECREASE COST EFFECTS:

One of the advantages of supply chain management is the costs decrease in different areas. The
most important ones are:

 Improves your inventory system;

 Adjusts the storage space for finished goods which eliminates damage resources;
  Improves your system’s responsiveness to the actual customer’s requirements;
 Improves your relationship with both distributors and vendors.

3. INCREASES OUTPUT:

One of the main benefits of supply chain management is the communication improvement. This
adds up to the coordination and collaboration with shipping and transport companies, vendors,
and suppliers.
Disadvantage of supply chain

Mismanaged Implementation – Changing a supply chain management system takes financial

investment, time, and human resources. If not implemented properly, there will be wasted
labor, service redundancy, and missed deadlines that result in significant costs.

To avoid these unnecessary costs, high-quality logistics providers always complete a thorough
analysis before implementing changes to the supply chain. This ensures that they fully
understand the client’s freight schedule, consolidation opportunities, and last-mile logistics
needs before developing and implementing a new system.

Inadequate Training – Integrating a new system into a working supply chain is complex and
often requires restructuring and team-member training. This process must include detailed
planning and clear, meaningful communication, or it could result in costly mistakes and
excessive employee turnover.

If searching for logistics providers, always inquire about the training process and the usability of
their tools and technology. An experienced provider should start with a clearly defined
onboarding or transition process that can then be customized to fit unique teams and timelines.

One & Done Mentality – Short-sighted logistics providers (focused on ‘getting the contract’ and
nothing more) miss out on consolidation opportunities and other ways to improve their clients’
supply chain efficiency. The initial savings are realized, but any additional savings or growth
opportunities get neglected. A company that relies on this type of provider will eventually fall
behind their competitors and may not even realize why.

Industry-leading logistics providers focus on continual analysis. They are always looking for new
ways to reduce their clients’ supply chain expenses or improve frequency and effectiveness.

A company that can provide quality supply chain management will have a good understanding
of these examples and what disadvantages would follow. A good supply chain management
system will reduce costs and allow each dollar to be used efficiently and effectively. With
effective management, cost reduction, and risk mitigation, your supply chain and your business
can stay ahead in a competitive market and reach a higher level of success than ever before.