Notes and Study Materials

Advantages of E-Commerce:



Electronic commerce, better known as E-commerce, refers to the commercial activities—such as on-line shopping and payment transactions—carried out using computers and the Internet.


Advantages and disadvantages of E-Commerce:


E-commerce covers the global information economy, which includes electronic trading goods and services, electronic fund transfer, online procurement, direct marketing and electronic Billing. E-commerce provides the procedures or the ways for generating profits by increasing the number of transactions. Some of the main advantages of E-commerce are as follows:

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Advantages of using e commerce in business are motivating lot of businesses to use E-Commerce for their business. Various business areas such as retail, wholesale and manufacturing are using E-Commerce.

The most common Applications of E-commerce are as follows:

Retail and wholesale:


E-commerce has a number of applications in retail and wholesale.

E-retailing or on-line retailing is the selling of goods from Business-to-Consumer through electronic stores that are designed using the electronic catalog and shopping cart model.

Cybermall is a single Website that offers different products and services at one Internet location. It attracts the customer and the seller into one virtual space through a Web browser.

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E-commerce Architecture



E-commerce is based on the client-server architecture.

A client can be an application, which uses a Graphical User Interface (GUI) that sends request to a server for certain services.

The server is the provider of the services requested by the client.

In E-commerce, a client refers to a customer who requests for certain services and the server refers to the business application through which the services are provided.

The business application that provides services is deployed on a Web' server.

The E - Commerce Web server is a computer program that provides services to "other computer programs and serves requested Hyper Text Mark-up Language (HTML) pages or files.

 In client-server architecture, a machine can be both a client as well as a server.

There are two types of client server architecture that E-commerce follows: two-tier and three-tier.

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Different Components of E-commerce



 The technology and infrastructure used to develop the E-commerce application is the key to its success.

The hardware and software must be selected in such a way that they can fulfill the needs of the E-commerce application.

The following figure shows the components involved in E-commerce infrastructure.


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Business Models Of E-Commerce



In E-commerce, business models are models that define the way in which business is' done over the Internet. Creating and deploying an E-commerce Website is a prerequisite for creating any E-commerce solution. Identification of the business model is first step in the development of an E-commerce Website.
Business models in E-commerce can be categorized into the following four types, depending on the type of parties involved in transaction:


1. Business-to-Business:

It is defined as E-commerce between any two companies. Business-to-Business (B2B) E-commerce, which deals with relationships among businesses that have two primary components, E-frastructure and E-market. E-frastructure is the architecture of B2B, and E-market refers to a Website where buyers and sellers interact with each other and conduct transactions. Some of the application areas of B2B are supplier management, inventory management, distribution management, channel management and payment management.


2. Business-to-Consumer:


It is defined as E-commerce between companies and consumers. Business-to-Customer (B2C) involves selling and buying of goods and services over the Internet from Web retailers to Web customers. With B2C E-commerce, the retailer sells the products and the services to unknown and un trusted strangers. Therefore, extra effort must be made to capture customer and payment information. The most common application areas of this type of E-commerce are purchasing product and information and personal finance management.



3. Business-to-Government:


It is defined as E-commerce between companies and the public sector. Business-to-Government (B2G) E-commerce refers to the use of the Internet for public procurement, licensing procedures and the other government-related operations. Internet-based purchasing policies increase the transparency of the procurement process and reduce the risk of irregularities.


4. Consumer-to-Consumer:


It is defined as E-commerce between consumers. Customer-to-Customer (C2C) E-commerce is characterized by the growth of the E-marketplace and on-line auctions, particularly in industries where business firms can bid for what they want from multiple suppliers. 

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Advantages of E-Commerce 

Applications of E-Commerce

E-Commerce Architecture

Components of E-Commerce

B2C Model

Back to E-Commerce Questions



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B2C Model



The B2C model basically involves business houses and consumers. B2C Websites display product and service information in an on-line catalogue and store it in a database. The B2C model generally refers to on-line trading and auctions such as on-line stock trading markets and on-line auctions' for any product. The B2C model basically involves business houses and consumers.


B2C Websites display product and service information in an on-line catalogue and store it in a database. The B2C model generally refers to on-line trading and auctions such as on-line stock trading markets and on-line auctions' for any product. The following Figure  shows the flow of information between consumers and business organizations.

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E-Commerce With WWW/Internet:



Web-based E-commerce is one of the fastest-growing segments of the technology that defines the business strategy. Web-based E-commerce provides easy and better communication between geographically separated buyers and sellers. E-commerce is a way of doing business by enabling better interaction among customers, business partners and business relationship managers using electronic tools. The Web provides an array of electronics tools such as e-mail and Web pages for E-commerce and its related processes. Web-based E-commerce continues to improve convenience and versatility using increased processing power and expanded cellular capabilities and makes it more reachable to the customers.


To design a Web-based E-commerce architecture, the following steps are performed:


1. Planning for Web-based E-commerce architecture.

2. Understanding the roles of buyers and sellers.

3. Analyzing the requirements of buyers and sellers.

4. Resolving the issues in Web-based E-commerce.


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