E-commerce - AKHIB22011

E-COMMERCE Electronic commerce (also referred to as EC, ecommerce or ecommerce) consists primarily of the distributing, buying, selling, marketing, and servicing of products or services over electronic systems such as the Internet and other computer networks.

Elements of E-commers • Electronic Payment Systems • E-tailing • E-banking • Online Publishing

• It can involve electronic funds transfer, supply chain

management, e-marketing, online marketing, online transaction processing, electronic data interchange (EDI), automated inventory management systems, and automated data collection systems. It typically uses electronic communications technology such as the Internet, extranets, e-mail, e-books, databases, catalogues and mobile phones.

Teleshopping • Teleshopping is shopping in a virtual mall with payment

using your credit card. • Infomercials are long-format television commercials, typically five minutes or longer. Infomercials are also known as paid programming • Stations in most countries around the world have instituted similar media structures. According to tapebeat.com, over $150 billion of consumer products in the U.S. are sold through infomercials.

Online Marketing • is the marketing of products or services over the internet. • The Internet has brought media to a global audience. The

interactive nature of Internet marketing in terms of providing instant responses and eliciting responses are the unique qualities of the medium. Internet marketing is sometimes considered to be broad in scope because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media. • Internet marketing also refers to the placement of media along many different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, email marketing, and Web 2.0 strategies.

Advantages • Internet marketing is relatively inexpensive when

compared to the ratio of cost against the reach of the target audience. • Internet marketers also have the advantage of measuring statistics easily and inexpensively. • Because exposure, response, and overall efficiency of Internet media are easier to track than traditional off-line media—through the use of web analytics for instance— Internet marketing can offer a greater sense of accountability for advertisers.

• Improved customer interactions - With automated tools it is

possible to interact with a customer in richer ways at virtually no cost. For example, the customer might get an email when the order is confirmed, when the order is shipped and after the order arrives. A happy customer is more likely to purchase something else from the company. • People can shop in different ways.For example ordering large numbers of products from the web instead of going to the normal shop. • Lower transaction costs - if an e-commerce site is implemented well, the web can significantly lower both order-taking costs up front and customer service costs after the sale by automating processes. • Wider market diffusion

Limitations • From the buyer's perspective, the inability of shoppers to

touch, smell, taste or "try on" tangible goods before making an online purchase can be limiting. • The buyer can also be biased in case there is not sufficiently reliable product information available online.

• Getting traffic to come to the company's Web site, it is not

easy to function with e-commerce without customers. • Getting traffic to return to the company's Web site is another thing , people must be attracted by the idea of eshopping. • Getting people to buy something from the company's Web site. Having people look at the site is one thing. Getting them to actually type in their credit card numbers is another.

Data mining • Data mining is the process of extracting patterns from

data. Data mining is becoming an increasingly important tool to transform this data into information. • It is commonly used in a wide range of profiling practices, such as marketing, surveillance, fraud detection and scientific discovery.

• A primary reason for using data mining is to assist in the

analysis of collections of observations of behaviour. • Data mining commonly involves four classes of task: • Classification - Arranges the data into predefined groups. For example an email program might attempt to classify an email as legitimate or spam. Common algorithms include Decision Tree Learning, Nearest neighbor, naive Bayesian classification and Neural network. • Clustering - Is like classification but the groups are not predefined, so the algorithm will try to group similar items together.

• Regression - Attempts to find a function which models the

data with the least error. • Association rule learning - Searches for relationships between variables. For example a supermarket might gather data on customer purchasing habits. Using association rule learning, the supermarket can determine which products are frequently bought together and use this information for marketing purposes. This is sometimes referred to as market basket analysis.

Social and ethical issues • Data mining requires data preparation which can uncover

information or patterns which may compromise confidentiality and privacy obligations. The threat to an individual's privacy comes into play when the data, once compiled, cause the data miner, or anyone who has access to the newly-compiled data set, to be able to identify specific individuals, especially when originally the data were anonymous.

It is recommended that an individual is made aware of the following before data are collected: • the purpose of the data collection and any data mining projects, • how the data will be used, • who will be able to mine the data and use them, • the security surrounding access to the data, and in addition, • how collected data can be updated

Spyware • Spyware is computer software that collects personal

information about a user of a computer without their informed consent. • Sometimes it uses the techniques of saving the keystrokes , sometimes it saves the web history of the user to later send it to the hackers and spammers. Many of the purposes for spyware are that they collect the personal information and send it to the advertising agencies so they are kind of linked to the whole idea of ecommerce.

• We can divide spyware into few categories. The term

adware frequently refers to any software which displays advertisements, whether or not it does so with the user's consent. Those are usually used to promote the companies or simply display the unwanted content to the user. • Spyware usually gets onto your machine because of something you do, like clicking a button on a pop-up window, installing a software package or agreeing to add functionality to your Web browser. These applications often use trickery to get you to install them, from fake system alert messages to buttons that say "cancel" when they really do the opposite.

• Another use of spyware is to steal the credits from the

company. Major shopping sites like Amazon.com and Ebay.com offers money to a Web site that successfully directs traffic to their item pages. • Certain spyware applications capture your requests to view sites like Amazon and EBay and then take the credit for sending you there. • This whole idea could be linked to the e-commerce as spyware is sort of trying to improve the standings of the websites on the internet and promote them.

Social and ethical issues Reliability • The data on the website could be unreliable if it is designed wrong. • Spyware and adware is unreliable as it sends your information to the hacker without your knowledge. Integrity • Poorly designed, bug-infested e-commerce web sites that frustrate online shoppers and drive them away. Also causes the original to change. Ex.Ebay's or PayPal's original template websites could be altered and infested with adware and spyware. • Some spyware programs has to do with the replacement of banner ads on viewed web sites. Spyware that acts as a web proxy or a Browser Helper Object can replace references to a site's own advertisements

Security • Many people will not use the e-commerce over the Internet because they are afraid of card theft and internet fraud. • Need to forfeit financial records because they could be stolen during the e-transactions Privacy and anonymity • Financial details could be revealed • Anonymous shopping or bank transitions could be done if the privacy would be broken

Equality of access • The problem of access to web commerce, particularly for poor households and for developing countries. • Low penetration rates of Internet access in some sectors greatly reduces the potential for e-commerce. • High Internet access costs, including connection service fees, communication fees, and hosting charges for websites with sufficient bandwidth would discourage some of the customers to use the e-commerce. • In some of the countries underdeveloped transportation infrastructure results in slow and uncertain delivery of goods and services

Authenticity • Becoming the victim of organized crime. Many syndicates have caught on to the potential of the Internet as a new revenue stream. Two main methods are as follows: (1) Using identity theft techniques like phishing to order expensive goods and bill them to some innocent person, then liquidating the goods for quick cash; (2) Extortion by using a network of compromised "zombie" computers to engage in distributed denial of service attacks against the target Web site until it starts paying protection money.

People and Machines • Some people enjoy talking to the staff in the retail stores or enjoy the shopping with the social aspect invloved. The online shopping does not provide that aspect when using e-commerce. • Over-estimation of resource competence. Can staff, hardware, software, and processes handle the proposed strategy? Have e-tailers failed to develop employee and management skills?

Globalization and cultural diversity • Cross-border issues, such as the recognition of transactions under laws of other ASEAN membercountries, certification services, improvement of delivery methods and customs facilitation • Introduction of global markets • Wider choice of products in foreign countries Control • The way that people shop could be altered and changed by the e-commerce

Policies and Standards • Inconsistent return policies among e-tailers or difficulties in exchange/return. • Content restriction on national security and other public policy grounds, which greatly affects e-commerce in the field of information services, such as the media and entertainment sectors. • Many users complain about irritating or offensive advertisements as well. Pop-up ads for pornography often display offensive material, including when children use the computer(possibly in violation of anti-pornography laws).

Done By: • Maulik Ruparelia • Maulik Ruparelia • Maulik Ruparelia • Maulik Ruparelia

• Maulik Ruparelia • Maulik Ruparelia • Maulik Ruparelia • Maulik Ruparelia • Maulik Ruparelia • Maulik Ruparelia • Maulik Ruparelia

Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia

Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia Maulik Ruparelia

Refrences • http://www.ruthtrumpold.id.au/itgswiki/pmwiki.php?n=Main

.E-commerce • Wikipedia