E-Commerce

Usman Nisar

Department of Computer Science and Information Technology

University of Peshawar
Pakistan
 E & Commerce
 According to Dictionary.com
 Commerce is defined as “The buying and
selling of goods, especially on large
scale.”
 When we add “E” for “Electronic”.
 It derives the definition “buying and
selling of goods electronically.”
 This typically mean that orders and
payments pass electronically.
 What is E-Commerce
 Commonly known as Electronic Marketing.
 “It consist of buying and selling goods and
services over an electronic systems Such as
the internet and other computer networks.”
 “E-commerce is the purchasing, selling and
exchanging goods and services over
computer networks (internet) through which
transaction or terms of sale are performed
Electronically.
 Defining
E-Commerce
From
Different Perspectives
 Communications
 From a communication perspective,
e-commerce is the delivery of goods,
services, information, or payments
over computer networks or by any
other electronic means.
 Commercial (trading)
 From a commercial perspective, e-
commerce provides the capability of
buying and selling products, services
and information on the Internet and
via other online services.
 Business Process
 From a business process perspective,
e-commerce is doing business
electronically by completing business
processes over electronic networks.
 Service
 From a service perspective, e-
commerce is a tool that addresses
the desire of governments, firms,
consumers, and management to cut
service costs while improving the
quality of customer service and
increasing the speed of service
delivery.
 Learning
 From a learning perspective, e-
commerce is an enabler of online
training and education in schools,
universities, and other organizations.
 Community
 From a community perspective, e-
commerce provides a gathering
place for community members to
learn transact and collaborate.
 Brief
History
Of
E-Commerce
 1970s: Electronic Funds Transfer (EFT)
– Used by the banking industry to exchange
account information over secured networks
 Late 1970s and early 1980s: Electronic Data
Interchange (EDI) for e-commerce within
companies
– Used by businesses to transmit data from one
business to another
 1990s: the World Wide Web on the Internet
provides easy-to-use technology for
information publishing and dissemination
– Cheaper to do business (economies of scale)
– Enable diverse business activities (economies of
scope
Why
Use
E-Commerce
…….?
Here are some of the most
common Reasons
 Low Entry Cost
A company can establish itself on the
Internet, and open for business, with
a relatively small investment.
Thousands of companies operate
simple, inexpensive sites that are
successful in their markets
 Reduces Transaction
Costs
 Dealing with customers over the Web,
whether to process orders or to attend to
customer support, is cheaper than
traditional marketing methods. For
example, Dell Computer Corporation
estimates that it saves eight dollars each
time a customer checks the status of an
order at the Dell Web site, instead of
calling the company.
 Access to the global
market
 Witha traditional business, the
target market may be the local
community or, with a higher
advertising budget, it may extend to
neighboring communities. The Web
extends the reach of even the
smallest businesses by allowing them
to market products globally.
 Online distribution
 The Web enables businesses to
distribute data and software online
 Secure market share
 Gettinga business online protects its
current offline market share from
being eroded by an online
entrepreneur. If a business enters
the e-commerce market too late,
competitors who have already
established a Web presence may
make a successful market entry
more difficult.
The Process
Of
E-Commerce
 A consumer uses Web browser to
connect to the home page of a
merchant's Web site on the Internet.
 The consumer browses the catalog of
products featured on the site and
selects items to purchase. The
selected items are placed in the
electronic equivalent of a shopping
cart.
 When the consumer is ready to
complete the purchase of selected
items, she provides a bill-to and ship-
to address for purchase and delivery
 When the merchant's Web server receives
this information, it computes the total cost
of the order--including tax, shipping, and
handling charges--and then displays the
total to the customer.

 The customer can now provide payment

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

 The Commerce Server site then

forwards the order to a Processing
Network for payment processing and
fulfillment.
 Types

Of

E-Commerce
 Business-to-business
(B2B)
 Business-to-business is a term
commonly used to describe
electronic commerce transactions
between businesses
 Business-to-consumer
(B2C):
 Business-to-consumer describes
activities of E-businesses serving end
consumers with products and/or
services
 Business-to-Government
(B2G)
 Businessto Government is a
derivative of B2B marketing and
referred to as a market
definition of "Public Sector
Marketing" which encompasses
marketing products and services
to the U.S. Government through
Integrated Marketing
Communications techniques
 Business-to-Employee
(B2E)
 Business-to-employee
(B2E) electronic commerce uses
an intrabusiness network which
allows companies to provide
products and/or services to their
employees. Typically, companies
use B2E networks to automate
employee-related corporate
processes.
 Examples of B2E applications
include:
– Online insurance policy management
– Corporate announcement dissemination
– Online supply requests
– Special employee offers
– Employee benefits reporting
 Consumer-to-consumer
(C2C)
 Itinvolves the electronically-facilitated
transactions between consumers through
some third party. A common example is
the online auction, in which a consumer
posts an item for sale and other
consumers bid to purchase it; the third
party generally charges a flat fee or
commission. The sites are only
intermediaries, just there to match
consumers. They do not have to check
quality of the products being offered.
PROS AND CONS
OF
E-COMMERCE
PROS
 No checkout queues

 Reduce prices

 You can shop anywhere in the world

 Easy access 24 hours a day

 Wideselection to cater for all

consumers
CONS
 Unableto examine products
personally

 Noteveryone is connected to the

Internet

 There
is the possibility of credit card
number theft

 Onaverage only 1/9th of stock is

available on the net
 “Overview of E-
commerce In Pakistan”
 In Pakistan banking is helping E-
commerce to grow in Pakistan. Almost
all banks in Pakistan have converted
into online banking and helping their
clients by giving modern e-commerce
banking facilities such as online
banking, mobile banking, credit card,
ATM facility and also the online
payment of the utility bills
Growth of e-commerce in
Pakistan
 The number of Internet users in Pakistan is
growing fast.
 According to the government’s economic
survey for 2005/06, there were an estimated
2.1m Internet subscribers and about 10m
Internet users in June 2005 (latest figures
available).
 Internet access had expanded from 29 cities
in August 2000 to 2,339 cities and towns by
June 2006.
 Optical-fiber networks were available in 500
cities in June 2006, compared with 53 cities
in August 2000. Pakistan had 170 Internet
service providers in June 2006.
 Half of the country’s 7,000 commercial-
bank branches, including 90% of the
branches in urban areas, had been
computerized by August 2006.
 Many banks and exchange companies
offer online funds transfers from
overseas, such as for workers
remittances.
 A few of banks offer mobile-phone
banking, where customers can pay
utility bills using their mobile phones
 Websites doing e-
commerce business in
Pakistan
 AsE-commerce is not widely adopted
by the people of Pakistan, Some big
companies are still doing a
successful business in e-commerce.
Some of them include:

 MallBazar Private Limited

 Beliscity.com
 MallBazar Private Limited
 MallBazar is a Karachi-based business which
concentrates in auction, trading and classified-
services online for Pakistan.
 MallBazar offers the most convenient,
inexpensive, dependable online services.
Through consumer-satisfaction-driven sound
practices such as using the Internet to allow
perspective sellers and buyers to do trading
online without having to hassle anywhere else.
 MallBazar is able to offer competitive pricing
that is easily able to undercut competing
merchandise services in Pakistan.
 Beliscity.com
 Founded in 2001
 Beliscity.com is the leading online shopping
mall in Pakistan with an office in Dubai, UAE
offering a huge range of products from the
world's leading manufacturers to thousands
of retail and corporate customers across the
globe.
 The customers are privileged with a quick,
easy and reliable way of buying the
products they want, at the most competitive
prices with direct delivery to their door FREE
of cost in Pakistan and UAE.