E Commerce

E-CommerceE-Commerce

Usman NisarUsman Nisar

Department of Computer Science and Information TechnologyDepartment of Computer Science and Information TechnologyUniversity of PeshawarUniversity of Peshawar

PakistanPakistan

E & CommerceE & Commerce

According to Dictionary.comAccording to Dictionary.com Commerce is defined as “The buying Commerce is defined as “The buying

and selling of goods, especially on large and selling of goods, especially on large scale.”scale.”

When we add “E” for “Electronic”.When we add “E” for “Electronic”. It derives the definition “buying and It derives the definition “buying and

selling of goods electronically.”selling of goods electronically.” This typically mean that orders and This typically mean that orders and

payments pass electronically.payments pass electronically.

What is E-CommerceWhat is E-Commerce

Commonly known as Electronic Commonly known as Electronic Marketing.Marketing.

““It consist of buying and selling goods It consist of buying and selling goods and services over an electronic and services over an electronic systems Such as the internet and systems Such as the internet and other computer networks.”other computer networks.”

““E-commerce is the purchasing, selling E-commerce is the purchasing, selling and exchanging goods and services and exchanging goods and services over computer networks (internet) over computer networks (internet) through which transaction or terms of through which transaction or terms of sale are performed Electronically. sale are performed Electronically.

DefiningDefining

E-CommerceE-Commerce

FromFrom

Different PerspectivesDifferent Perspectives

CommunicationsCommunications

From a communication perspective, From a communication perspective, e-commerce is the delivery of goods, e-commerce is the delivery of goods, services, information, or payments services, information, or payments over computer networks or by any over computer networks or by any other electronic meansother electronic means..

Commercial (trading)Commercial (trading)

From a commercial perspective, e-From a commercial perspective, e-commerce provides the capability of commerce provides the capability of buying and selling products, services buying and selling products, services and information on the Internet and and information on the Internet and via other online services.via other online services.

Business ProcessBusiness Process

From a business process perspective, From a business process perspective, e-commerce is doing business e-commerce is doing business electronically by completing business electronically by completing business processes over electronic networks.processes over electronic networks.

ServiceService

From a service perspective, e-From a service perspective, e-commerce is a tool that addresses commerce is a tool that addresses the desire of governments, firms, the desire of governments, firms, consumers, and management to cut consumers, and management to cut service costs while improving the service costs while improving the quality of customer service and quality of customer service and increasing the speed of service increasing the speed of service delivery.delivery.

LearningLearning

From a learning perspective, e-From a learning perspective, e-commerce is an enabler of online commerce is an enabler of online training and education in schools, training and education in schools, universities, and other organizations.universities, and other organizations.

CommunityCommunity

From a community perspective, e-From a community perspective, e-commerce provides a gathering commerce provides a gathering place for community members to place for community members to learn transact and collaborate.learn transact and collaborate.

BriefBrief

HistoryHistory

OfOf

E-CommerceE-Commerce

1970s: Electronic Funds Transfer (EFT)1970s: Electronic Funds Transfer (EFT)– Used by the banking industry to exchange Used by the banking industry to exchange

account information over secured networksaccount information over secured networks Late 1970s and early 1980s: Electronic Late 1970s and early 1980s: Electronic

Data Interchange (EDI) for e-commerce Data Interchange (EDI) for e-commerce within companieswithin companies– Used by businesses to transmit data from one Used by businesses to transmit data from one

business to anotherbusiness to another 1990s: the World Wide Web on the 1990s: the World Wide Web on the

Internet provides easy-to-use technology Internet provides easy-to-use technology for information publishing and for information publishing and disseminationdissemination– Cheaper to do business (economies of scale)Cheaper to do business (economies of scale)– Enable diverse business activities (economies Enable diverse business activities (economies

of scopeof scope

WhyWhy

UseUse

E-CommerceE-Commerce

………….?.?

Here are some of the most Here are some of the most common Reasonscommon Reasons

Low Entry CostLow Entry Cost

A company can establish itself on the A company can establish itself on the Internet, and open for business, with Internet, and open for business, with a relatively small investment. a relatively small investment. Thousands of companies operate Thousands of companies operate simple, inexpensive sites that are simple, inexpensive sites that are successful in their markets successful in their markets

Reduces Transaction Reduces Transaction CostsCosts

Dealing with customers over the Web, Dealing with customers over the Web, whether to process orders or to attend whether to process orders or to attend to customer support, is cheaper than to customer support, is cheaper than traditional marketing methods. For traditional marketing methods. For example, Dell Computer Corporation example, Dell Computer Corporation estimates that it saves eight dollars estimates that it saves eight dollars each time a customer checks the each time a customer checks the status of an order at the Dell Web site, status of an order at the Dell Web site, instead of calling the company. instead of calling the company.

Access to the global Access to the global marketmarket

With a traditional business, the With a traditional business, the target market may be the local target market may be the local community or, with a higher community or, with a higher advertising budget, it may extend to advertising budget, it may extend to neighboring communities. The Web neighboring communities. The Web extends the reach of even the extends the reach of even the smallest businesses by allowing them smallest businesses by allowing them to market products globally. to market products globally.

Online distributionOnline distribution

The Web enables businesses to The Web enables businesses to distribute data and software online distribute data and software online

Secure market shareSecure market share

Getting a business online protects its Getting a business online protects its current offline market share from current offline market share from being eroded by an online being eroded by an online entrepreneur. If a business enters entrepreneur. If a business enters the e-commerce market too late, the e-commerce market too late, competitors who have already competitors who have already established a Web presence may established a Web presence may make a successful market entry make a successful market entry more difficult. more difficult.

The ProcessThe ProcessOfOf

E-CommerceE-Commerce

A consumer uses Web browser to A consumer uses Web browser to connect to the home page of a connect to the home page of a merchant's Web site on the Internet.merchant's Web site on the Internet.

The consumer browses the catalog of The consumer browses the catalog of products featured on the site and products featured on the site and selects items to purchase. The selects items to purchase. The selected items are placed in the selected items are placed in the electronic equivalent of a shopping electronic equivalent of a shopping cart.cart.

When the consumer is ready to When the consumer is ready to complete the purchase of selected complete the purchase of selected items, she provides a bill-to and ship-items, she provides a bill-to and ship-to address for purchase and delivery to address for purchase and delivery

When the merchant's Web server When the merchant's Web server receives this information, it receives this information, it computes the total cost of the order--computes the total cost of the order--including tax, shipping, and handling including tax, shipping, and handling charges--and then displays the total charges--and then displays the total to the customer.to the customer.

The customer can now provide The customer can now provide payment information, such as a payment information, such as a credit card number, and then submit credit card number, and then submit the order.the order.

When the credit card number is When the credit card number is validated and the order is completed validated and the order is completed at the Commerce Server site, the at the Commerce Server site, the merchant's site displays a receipt merchant's site displays a receipt confirming the customer's purchase.confirming the customer's purchase.

The Commerce Server site then The Commerce Server site then forwards the order to a Processing forwards the order to a Processing Network for payment processing and Network for payment processing and fulfillment.fulfillment.

TypesTypes

OfOf

E-CommerceE-Commerce

Business-to-business Business-to-business (B2B)(B2B)

Business-to-business Business-to-business is a term is a term commonly used to describe commonly used to describe electronic commerce transactions electronic commerce transactions between businessesbetween businesses

Business-to-consumer Business-to-consumer (B2C):(B2C):

Business-to-consumerBusiness-to-consumer describes describes activities of E-businesses serving end activities of E-businesses serving end consumers with products and/or consumers with products and/or servicesservices

Business-to-Government Business-to-Government (B2G)(B2G)

Business to GovernmentBusiness to Government is a is a derivative of B2B marketing and derivative of B2B marketing and referred to as a market referred to as a market definition of "Public Sector definition of "Public Sector Marketing" which encompasses Marketing" which encompasses marketing products and services marketing products and services to the U.S. Government through to the U.S. Government through Integrated Marketing Integrated Marketing Communications techniquesCommunications techniques

Business-to-Employee Business-to-Employee (B2E)(B2E)

Business-to-employee Business-to-employee (B2E)(B2E) electronic commerce uses  electronic commerce uses an intrabusiness network which an intrabusiness network which allows companies to provide allows companies to provide products and/or services to their products and/or services to their employees. Typically, companies employees. Typically, companies use B2E networks to automate use B2E networks to automate employee-related corporate employee-related corporate processes.processes.

Examples of B2E applications Examples of B2E applications include:include:– Online insurance policy management Online insurance policy management – Corporate announcement dissemination Corporate announcement dissemination – Online supply requests Online supply requests – Special employee offers Special employee offers – Employee benefits reporting Employee benefits reporting

Consumer-to-consumer Consumer-to-consumer (C2C)(C2C)

It involves the electronically-facilitated It involves the electronically-facilitated transactions between consumers transactions between consumers through some third party. A common through some third party. A common example is the online auction, in which example is the online auction, in which a consumer posts an item for sale and a consumer posts an item for sale and other consumers bid to purchase it; the other consumers bid to purchase it; the third party generally charges a flat fee third party generally charges a flat fee or commission. The sites are only or commission. The sites are only intermediaries, just there to match intermediaries, just there to match consumers. They do not have to check consumers. They do not have to check quality of the products being offered.quality of the products being offered.

PROS AND CONSPROS AND CONSOFOF

E-COMMERCEE-COMMERCE

PROSPROS

No checkout queuesNo checkout queues

Reduce pricesReduce prices

You can shop anywhere in the worldYou can shop anywhere in the world

Easy access 24 hours a dayEasy access 24 hours a day

Wide selection to cater for all Wide selection to cater for all consumers consumers

CONSCONS

Unable to examine products Unable to examine products personallypersonally

Not everyone is connected to the Not everyone is connected to the InternetInternet

There is the possibility of credit card There is the possibility of credit card number theft number theft

On average only 1/9th of stock is On average only 1/9th of stock is available on the net available on the net

““Overview of E-Overview of E-commerce In Pakistan”commerce In Pakistan”

In Pakistan banking is helping E-In Pakistan banking is helping E-commerce to grow in Pakistan. commerce to grow in Pakistan. Almost all banks in Pakistan have Almost all banks in Pakistan have converted into online banking and converted into online banking and helping their clients by giving helping their clients by giving modern e-commerce banking modern e-commerce banking facilities such as online banking, facilities such as online banking, mobile banking, credit card, ATM mobile banking, credit card, ATM facility and also the online payment facility and also the online payment of the utility bills of the utility bills

Growth of e-commerce in Growth of e-commerce in PakistanPakistan

The number of Internet users in Pakistan is The number of Internet users in Pakistan is growing fast.growing fast.

According to the government’s economic According to the government’s economic survey for 2005/06, there were an survey for 2005/06, there were an estimated 2.1m Internet subscribers and estimated 2.1m Internet subscribers and about 10m Internet users in June 2005 about 10m Internet users in June 2005 (latest figures available).(latest figures available).

Internet access had expanded from 29 Internet access had expanded from 29 cities in August 2000 to 2,339 cities and cities in August 2000 to 2,339 cities and towns by June 2006.towns by June 2006.

Optical-fiber networks were available in Optical-fiber networks were available in 500 cities in June 2006, compared with 53 500 cities in June 2006, compared with 53 cities in August 2000. Pakistan had 170 cities in August 2000. Pakistan had 170 Internet service providers in June 2006.Internet service providers in June 2006.

Half of the country’s 7,000 Half of the country’s 7,000 commercial-bank branches, including commercial-bank branches, including 90% of the branches in urban areas, 90% of the branches in urban areas, had been computerized by August had been computerized by August 2006.2006.

Many banks and exchange companies Many banks and exchange companies offer online funds transfers from offer online funds transfers from overseas, such as for workers overseas, such as for workers remittances.remittances.

A few of banks offer mobile-phone A few of banks offer mobile-phone banking, where customers can pay banking, where customers can pay utility bills using their mobile phones utility bills using their mobile phones

Websites doing e-Websites doing e-commerce business in commerce business in

PakistanPakistan

As E-commerce is not widely adopted As E-commerce is not widely adopted by the people of Pakistan, Some big by the people of Pakistan, Some big companies are still doing a companies are still doing a successful business in e-commerce. successful business in e-commerce. Some of them include:Some of them include:

MallBazar Private Limited MallBazar Private Limited

Beliscity.com Beliscity.com

MallBazar Private Limited MallBazar Private Limited MallBazar is a Karachi-based business which MallBazar is a Karachi-based business which

concentrates in auction, trading and concentrates in auction, trading and classified-services online for Pakistan.classified-services online for Pakistan.

MallBazar offers the most convenient, MallBazar offers the most convenient, inexpensive, dependable online services. inexpensive, dependable online services. Through consumer-satisfaction-driven sound Through consumer-satisfaction-driven sound practices such as using the Internet to allow practices such as using the Internet to allow perspective sellers and buyers to do trading perspective sellers and buyers to do trading online without having to hassle anywhere online without having to hassle anywhere else.else.

MallBazar is able to offer competitive MallBazar is able to offer competitive pricing that is easily able to undercut pricing that is easily able to undercut competing merchandise services in Pakistan. competing merchandise services in Pakistan.

Beliscity.comBeliscity.com

Founded in 2001Founded in 2001 Beliscity.com is the leading online shopping Beliscity.com is the leading online shopping

mall in Pakistan with an office in Dubai, UAE mall in Pakistan with an office in Dubai, UAE offering a huge range of products from the offering a huge range of products from the world's leading manufacturers to thousands world's leading manufacturers to thousands of retail and corporate customers across the of retail and corporate customers across the globe.globe.

The customers are privileged with a quick, The customers are privileged with a quick, easy and reliable way of buying the easy and reliable way of buying the products they want, at the most products they want, at the most competitive prices with direct delivery to competitive prices with direct delivery to their door FREE of cost in Pakistan and UAE. their door FREE of cost in Pakistan and UAE.