E-Commerce and Digital Markets Part-1

 

                 E-Commerce and Digital Markets

E-Commerce

E-Commerce or electronic commerce refers to the exchange of goods and services and the transmission of funds and data using the internet. To make buying and selling possible, it depends on technology and digital platforms.

It is the activity of buying or selling goods and services on online services or over the internet.

Types of E-Commerce

  • B2B or Business –to-Business
  • B2C or Business-to-Consumer
  • C2B or Consumer-to-Business
  • C2C or Consumer-to-Consumer

   Digital Markets

Digital markets are the online platforms where buyers and sellers engage in transactions often for services, goods or digital products.

These markets enable businesses to reach global audiences and consumers to access a wide variety of services and products without physical boundaries.

Types

  • App Stores – Google Play, Apple App Store
  • Online Marketplaces – Amazon
  •  Subscription Services – Netflix, Spotify
  • Service Platforms - Upwork
  •  Social Media Markets – Facebook Marketplace

    Need and Origin of E-Commerce

Need

  • Global Reach
  • Convenience
  •  Cost Efficiency
  •  Personalization and Customization
  •  24/7 Availability
  • Efficient Supply Chain Management
  • Ease of Comparison

    Origin

  • Early Beginnings – E-Commerce began in the 1960s with the development of Electronic Data Interchange or EDI which allowed businesses to share documents like invoices and purchase orders electronically.
  • The Birth of Online Shopping – The first recognizable e-commerce transaction occurred in 1994 when a man used his credit card to purchase  CD online through a website called NetMarket.
  • The rise of E-Commerce Giants – In the late 1990s and early 2000s, companies like Amazon and eBay emerged as major players in the e-commerce space. In 1995, Amazon started as an online bookstore and quickly expanded to sell a wide range of products. In 1995, eBay was founded and created an online marketplace for consumers to buy and sell goods.
  • Technological Advancements – The development of secure payment gateways such as PayPal and improvements in internet speed and accessibility further fueled the growth of e-commerce.
  • Global Expansion – E-Commerce has continued to evolve with the rise of social commerce, subscription services and digital marketplaces like Shopify.

    Factors affecting E-Commerce

There are several factors that can impact the success and growth of e-commerce.

These factors are :

  • Technological Innovation
  • Technology Infrastructure
  • Consumer Behavior
  •  Competition
  •  Logistics and Supply Chain
  •  Legal and Regulatory Environment
  •   Economic Factors
  •  Social and Cultural Factors
  •  Marketing and Branding
  •  Environmental Sustainability

   Business dimension and technological dimension of E-Commerce

Business Dimension of E-Commerce

  • Marketing and Sales
  •  Revenue Models
  • Supply Chain and Logistics
  • Customer Relationship Management
  • Legal and Regulatory Considerations
  •  Payment and Transactions

   Technological Dimension of E-Commerce

  •  Security Technologies
  •  E-Commerce Platforms
  • Mobile Commerce
  • Web Development and Design
  • Big Data and Analytics
  • Integration with Other Systems
  • Artificial Intelligence and Automation

   E-Commerce Framework

An E-Commerce framework  explains components, structure and processes required for establishing and running an online business successfully.

Components

  • Product Management – Catalog Management, Inventory Management, Pricing
  • Shopping Cart and Checkout – Shopping Cart, Checkout Process, Order Management
  •  Payment Gateway Integration – Payment Processing, Security
  • Marketing Tools – Email marketing, Coupons and Discounts, Affiliate Programs
  • Analytics and Reporting – Sales Reports, Customer Behavior
  • User Management – Customer Accounts, Roles and Permissions
  • Content Management System – Page Management, SEO Tools
  • Third-party Integrations – Plugins and Extensions, APIs
  • Mobile Responsiveness – Mobile Optimization, Mobile Apps
  •  Scalability – Cloud Hosting, Performance Optimization

   Some E-Commerce Frameworks

  •  WooCommerce
  • BigCommerce
  • OpenCart
  •   Shopify
  • Magento
  • PrestaShop

     Consider factors like scalability, cost, ease of use and the specific features our business needs while selecting an e-commerce framework.

Electronic Commerce Models

  •  Business-to-Business or B2B
  •  Business-to-Consumer or B2C
  •  Consumer-to-Business or C2B
  •  Consumer-to-Consumer or C2C
  • Government-to-Business or G2B
  • Business-to-Government or B2G
  •  Government-to-Consumer or G2C
  • Consumer-to-Government or C2G
  •  Direct-to-Consumer or D2C
  • Business-to-Business-to-Consumer or B2B2C
  •  Social Commerce
  • Mobile Commerce

   Value Chains in Electronic Commerce

In electronic commerce, value chain means the sequence of activities that businesses engage in to deliver a product or service to the market and create value for their customers.

Components of the E-Commerce Value Chain

  • Operations
  • Inbound Logistics
  • Outbound Logistics
  • Customer Service
  • Marketing and Sales

    Supporting Activities in the E-Commerce Value Chain

  • Technology Development
  • Human Resource Management
  •  Procurement
  • Firm Infrastructure

   Optimizing the E-Commerce Value Chain

  • Technology Investment
  •  Customer Focus
  • Automation
  • Sustainability

   Internet and E-Business

The Internet refers to a globally connected network system that facilitates communication and data  services through a vast collection of private, public, business, academic, and government networks.

It is a global network of interconnected computers and servers that communicate using standardized protocols such as TCP/IP.

 

Electronic business or online business or e-business refers to any kind of business or commercial transaction that includes sharing information across the internet.

It refers to using digital technologies to conduct business processes online.

 

Internet and E-Business refers to the integration of internet technologies into business operations and the rise of online-based businesses.

 

Internet Technologies in E-Business

  •  Websites
  •   E-Commerce Platforms
  • Digital Marketing
  • Payment Gateways
  • Cloud Computing

   Benefits of E-Business

  • Cost-Effective
  • Global Reach
  •  Personalization
  • Convenience

   Trends in E-Business

  • Artificial Intelligence
  •  Mobile Commerce
  •  Sustainability
  •  Social Commerce

    Examples of E-Business Models

  •  Business-to-Consumer or B2C
  • Consumer-to-Consumer or C2C
  • Business-to-Business or B2B
  • Consumer-to-Business or C2B

    The internet has revolutionized how businesses operate, creating new challenges and opening new opportunities.

Introduction to Internet and its application

The  Internet refers to a vast global network which connects millions of computers and devices around the world.

Components  of the Internet

  •  Protocols
  • Internet Service Providers or ISPs
  •  Network Infrastructure
  • World Wide Web or WWW

     The internet has revolutionized how we work, live and interact with world.

As technology advances, the Internet will  play an important role in shaping the future.

Applications

  •  Information Access – Search Engines, Online Libraries and Databases
  • Communication- Email, Social Media, Instant Messaging and Video Calls
  • Entertainment- Online Gaming, Streaming Services
  • Education- Online Classrooms, E-Learning
  • Remote Work-Freelancing Platforms, Collaboration Tools
  • E-Commerce-Online Shopping, Online Banking
  • Health and Fitness-Telemedicine, Health Apps
  •  Social Impact and Advocacy-Campaigns and Movements, Crowdfunding
  •  Cloud Computing-Software as a Service or SaaS
  •  IoT or Internet of Things-Wearables, Smart Homes

   Intranet and Extranets

Intranet

An intranet refers to a private network used by an organization.

Its primary purpose is to help employees securely communicate with each other, to store information, and to help collaborate.

Modern intranets use social intranet features which allow employees to create profiles and to submit, like, comment, and share posts.

The intranet is often protected by firewalls and other security measures to prevent unauthorized access.




Features

  •  Collaboration Tools
  •  Security
  • Company Information
  •  Document Sharing
  •  Internal Communication

     Applications

  •  Knowledge Management
  • Employee Portals
  • Project Collaboration

   Extranets

An extranet refers to a private network which is similar to an intranet, but typically open to external parties, such as business partners, suppliers, key customers, etc. The main purpose of an extranet is to allow users to exchange data and applications, and share information.

It is a controlled private network that allows access to certain parts of an organization’s intranet to external users or organizations.




Features

  • Collaboration
  • Secure Communication
  • Extended Access
  • Access Control

          Applications

  • B2B Communication
  •  Partner Collaboration
  • Customer Portals
  •  Supplier Portals

  World Wide Web

The World Wide Web or WWW, commonly referred to as “the Web” is a system of interlinked hypertext documents and multimedia resources that we can access using the Internet.

Components

  • Web Browsers
  • Web Pages
  • URLs
  •  Web Servers
  •  HTTP/HTTPS

     Working of WWW

  • User Requests a Web Page
  • Browser sends a Request
  • Server Responds
  • Browser Displays the Page
         

   Internet Architectures

Internet architecture is the structural design of the Internet, encompassing the various layers, protocols and systems that enable global connectivity and data exchange.

The architecture of the Internet is based on a layered model with each layer serving a specific purpose in data communication.



Key Components of Internet Architecture

  • Physical Layer-It is the lowest layer consisting of the physical infrastructure which carries data.
  •  Data Link Layer-It is responsible for the direct transfer of data between devices on the same network.
  • Network Layer-It manages routing, ensuring data packets are forwarded from the source to the destination across multiple networks.
  • Transport Layer-It ensures reliable data transfer between hosts, providing error checking and flow control.
  •  Application Layer-It is the top layer where end-user applications interact with the network.

    Internet Applications

Internet applications refer to software programs which utilize the Internet to provide a wide range of services and functions to users.

Types of Internet Applications

·        Email Services

·        Web Browsing

·        Messaging and Communication Tools

·        Social Media Platforms

·        E-Commerce Platforms

·        Streaming Services

·        Online Gaming

·        Cloud Storage and Collaboration Tools

·        Content Management Systems or CMS

·        Search Engines

·        Online Banking and Finance

·        File Sharing and Peer-to-Peer or P2P Applications

·        Remote Work and Learning platforms

·        Virtual Private Networks or VPNs

·        News Aggregators and Portals

Characteristics of Internet Applications

  • Accessibility
  •  Interactivity
  • Scalability
  •  Security

   Business Applications on Internet

Business applications on the Internet have become necessary tools for companies of all sizes enabling them to operate more efficiently, interact with customers  and reach global markets in new ways.

Types of Business Applications on the Internet

  • Enterprise Resource Planning or ERP Systems
  • Customer Relationship Management or CRM Systems
  • Online Payment Systems
  • E-Commerce Platforms
  •  Cloud-Based Productivity Suites
  • Project Management and Collaboration Tools
  •  Marketing Automation Tools
  • Supply Chain Management or SCM Systems
  • Human Resource Management or HRM Systems
  • Virtual Private networks or VPNs for Business
  •  Accounting and Finance Software
  • Business Intelligence or BI and Analytics Tools
  •   Help Desk and Customer Support Systems
  •  Online  Advertising  Platforms
  • Video Conferencing and Webinars
  •  Content Management Systems or CMS for Business
  • Online Learning and training Platforms
  • Document Management Systems or DMS

   Benefits of use of Internet for Business Applications

  •  Scalability
  • Accessibility
  •  Cost Efficiency
  •  Real-Time Data
  • Integration

   E-Shopping

E-Shopping, also known as electronic commerce or online shopping is the process of buying and selling goods or services using the Internet.

Features

  • Online Stores
  • Shopping Cart and Checkout
  •   Product Listings
  •   Shipping and Delivery
  • Payment Options
  • Customer Reviews and Ratings
  • Customer Accounts
  • Return and Refund Policies

     Types

  • Business-to-Business or B2B
  • Business-to-Consumer or B2C
  • Consumer-to-Business or C2B
  • Consumer-to-Consumer or C2C
  • Direct-to-Consumer or D2C

    Trends in E-Shopping

  • Subscription Services
  • Mobile Shopping
  • Social Commerce
  •  Augmented Reality or AR
  • Video Commerce
  • Sustainability

    Benefits

  • Wide Selection
  •   Price Comparisons
  •    Convenience
  •   Access to Reviews
  • Personalization
  •  Deals and Discounts

     Technology affects E-Shopping.

 Electronic Data Interchange

Electronic data interchange or EDI refers to the automated exchange of business documents between organizations. Daily business workflows need the exchange of documents like invoices, shipping forms and purchase orders.




Benefits

  • Save time
  • Increase security
  • Reduce errors
  • Enhance connectivity
  • Increased efficiency
  •  Reduced Costs
  •  Improved Accuracy
  • Scalability
  • Sustainability

    Future Trends in EDI

  • Integration with IoT
  • Cloud-Based EDI
  • Artificial Intelligence or AI and Automation

   Components of Electronic Data Interchange

EDI involves several components which work together to facilitate the exchange of business documents in a standardized electronic format between organizations.

Components

  • EDI Documents- Purchase Order, Invoice, Payment order, Advanced Shipping Notice
  •  EDI Standards-XML, TRADACOMS, EDIFACT
  •  Communication Networks
  •  EDI Software or Translator
  • Trading Partner Agreements or TPAs
  •   EDI Middleware
  • EDI Communication Protocols
  •  EDI Translation and Mapping Tools
  • Audit Trail and Monitoring
  • Security Measures
  • EDI Integration with Back-End Systems

   Creating  Web Pages using HTML

Web Page

A web page refers to a document which is part of the World Wide Web or WWW and is typically written in HTML and accessed via a web browser.

HTML

HTML or Hypertext Markup Language refers to the standard language used to create and structure content on the web.

Basic Structure of an HTML Document

<!DOCTYPE html>

<html>

<head>

<title>Basic structure</title>

</head>

<body>

<h1>Welcome to Business and Technology</h1>

<p>This is a paragraph of text on my web page.</p>

<img src=”image.jpg” alt=”A description of the image”>

<a href=https://bandtwithaashutoshkumar.blogspot.com/>Read Blog Posts</a>

</body>

</html>

Explanation

  •  <!DOCTYPE html> : This declaration defines the document as HTML5.
  • <html> : The root element of the HTML document.
  • <head> : Contains meta-information about the document, like its title, character set and linked resources.
  •  <title> : It defines the title of the web page that appears in the browser tab.
  • <body> : The content of the webpage. It is where we put all visible elements like text, links and images.
  • <h1> : A heading element. Headings range from <h1>(most important) to <h6> (least important).
  • <p> : A paragraph element. It is used to define blocks of text.
  •  <img> : Embeds an image into the webpage. The src attribute defines the image source and alt provides alternative text for accessibility.

  •      <a> : It creates a hyperlink. The href attribute defines the target URL.

    There are so many HTML elements.

      Note : Please wait for its next part.

 

                     Thank You

     





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