UNIT -1 E-COMMERCE

E-Commerce, also known as electronic commerce or internet commerce, is an activity of

buying and selling goods or services over the internet or open networks. So, any kind of
transaction (whether money, funds, or data) is considered as E-commerce.

E-Commerce as retail sales to consumers for which the transaction takes place on open
networks. The buying and selling of products, services, and digital products through the
Internet all fall under the umbrella of e-commerce.

“All forms of transactions relating to commercial activities, including both organizations and
individuals, which are based on the processing and transmission of digitized data including
text, sound, and visual images.” According to this view, E-commerce does not necessarily
require the use of the Internet. E-commerce includes all forms of transactions that process
and transmit digitized data

E-commerce is the application of information technology and communication technology to

three basic activities related to commercial business, the three basic activities are as follows:

1. Production and support- which includes assisting production, distribution, and

maintenance of goods and services.
2. Transaction preparation- which includes getting product information into the
market-place and bringing buyers and sellers into contract with each other; and
3. Transaction completion- which includes concluding transactions, transferring
payments, and securing financial services.

Origin of E-commerce
Development of EC applications Started in the early 1970’s with electronic fund transfer
(EFT), which refers to computer-based systems used to perform financial transactions
electronically. However, the user of these applications was limited to financial institute, large
corporations, ad some daring businesses.
Electronic data interchange (EDI) was then developed in the late 1970s to improve the
limitation of EFT. EDI enlarged the pool of participating company from manufacturers,
retailers, services, and others. such systems were called Inter Organisational System (IOS).
An inter organisational system (IOS) allows the flow of information to be automated between
organisations to reach a desired supply-chain management system, which enables the
development of competitive organisations.
From the 1990s onwards, electronic commerce would additionally include enterprise resource
planning systems (ERP), data mining and data warehousing.
The term ‘Electronic Commerce’ was coined in the early 1990s when intent became
commercialised and users began flocking to participate in the world wide web. EC
application were the rapidly expanded.
Evolution of E-Commerce
E-Commerce was introduced 40 years ago, and to this day, continues to grow with new
technology, innovations, and thousands of businesses entering the online market each year.
The convenience, safety and user experience of E-Commerce has improved exponentially
since its inceptions in the 1970s.

1960-1982
Paving the way for electronic commerce was the development of the Electronic Data
Interchange (EDI). It replaced traditional mailing and faxing of document with a digital
transfer to data from one computer to another.

1982-1990
It was apparent from the beginning that B2B online shopping would be commercially
Lucrative but B2C would not be successful until the later widespread use PCs and the WWW,
also known as, the Internet. In 1982, France launched the precursor to the internet called.
Minitel.
90’s To Present
In 1990 Tim Berners Lee, along with his friend Robert Calilliau, published a proposal to
build a “Hypertext project” Called World Wide Web.
1994
NetSpace arrived. Providing users, a simple browser to surf the Internet and safe online
transaction technology called Secure Socket Layer.
Since 1995, many innovative applications, ranging from direct online sales to e-learning
experience had been developed. Almost every organisation in the world has a website. Two of
biggest names in E-Commerce are Launched Amazon.com and eBay.com.
1998
DSL or Digital Signature Line, Providers fast, always -on internet service to subscriber across
California. This prompts people to spend more time, and money, online.
In 1990, the emphasis of e-commerce shifted from B2C to B2B.
In 2001, form B2B to B2E, e-government, e-learning, and m-commerce.
In 2005, social network started to raise and so did e-commerce and wireless applications.
Meaning of E -Commerce
E-Commerce or Electronic Commerce means buying and selling of goods, products, or services
over the internet. E-commerce is also known as electronic commerce or internet commerce.
These services provided online over the internet network. Transaction of money, funds, and data
are also considered as E-commerce. These business transactions can be done in four ways:
Business to Business (B2B), Business to Customer (B2C), Customer to Customer (C2C),
Customer to Business (C2B). The standard definition of E-commerce is a commercial
transaction which is happened over the internet. Online stores like Amazon, Flipkart, Shopify,
Myntra, Ebay, Quikr, Olx are examples of E-commerce websites. By 2020, global retail e-
commerce can reach up to $27 Trillion.

E-commerce definition

Many people define e-commerce as selling or purchasing a physical product online. But the
meaning of e-commerce also encompasses the sale and purchase of non-physical goods, such
as services and digital products. Essentially, it's when a business sells online.

Some e-commerce retailers sell exclusively online. For example, let’s say an entrepreneur
sets up a company selling high-end pet products. In the pre-internet days, they would have
had 2 choices: retail their merchandise through their own boutique pet shop, or sell it
wholesale to national pet goods stores. Today, those business owners have a third option: e-
commerce. They can sell their products through their own website, a third-party site, or both.

The lines between e-commerce and traditional retail overlap sometimes. When a customer
comparison shops with her smartphone while standing in a brick-and-mortar store browsing
its physical products, it’s hard to classify the experience as one or the other.

E-commerce has many benefits for businesses, as well as a few potential drawbacks. Online
stores can improve the customer experience because shopping online is easy and convenient.
Additionally, with a low startup cost and a wide range of tools available for entrepreneurs,
starting an e-commerce business is much easier than starting another type of business.

Features of E-Commerce:

 Ubiquity Internet/Web technology is The marketplace is extended beyond traditional

available everywhere: at work, at home, and boundaries and is removed from a
temporal and elsewhere via mobile devices, anytime. geographic location.
“Marketspace” is created; shopping can take place anywhere. Customer convenience
is enhanced, and shopping costs are reduced.

 Global reach: The technology reaches Commerce is enabled across cultural and
across national boundaries, around the earth. national boundaries seamlessly and
without modification. ―Marketspace includes potentially billions of consumers and
millions of businesses worldwide.
 Universal standards There is one set of There is one set of technical media standards
technology standards, namely Internet across the globe.

 Richness :Video, audio, and text messages Video, audio, and text marketing messages
are are possible. integrated into a single marketing message and consuming
experience.  Interactivity The technology works Consumers are engaged in a dialog
that through interaction with the user. dynamically adjusts the experience to the
individual, and makes the consumer a co participant in the process of delivering goods
to the market.

 Information density: The technology Information processing, storage, and reduces

information costs and raises quality. communication costs drop dramatically, while
 currency, accuracy, and timeliness improve greatly. Information becomes plentiful,
cheap, and accurate.

 Personalization/Customization :The Personalization of marketing messages and

technology allows personalized messages to customization of products and services
are be delivered to individuals as well as groups. based on individual characteristics.

Types of E-Commerce

1.Business-to-Business (B2B) – B2B e-commerce consists of all kinds of electronic

transactions, dealings and business related to the goods and services that are conducted
between two companies. This type of e-commerce exists between the producers of a product
and the conventional wholesalers who advertise the product to consumers for purchase. So, in
this kind of e-commerce the final consumer is not involved and the online transactions only
involve the manufacturers, wholesalers, retailers etc.
Business-to-business transactions and large corporate accounts are commonplace for firms
in manufacturing. Samsung, for example, is one of Apple's largest suppliers in the
production of the iPhone. Apple also holds B2B relationships with firms like Intel,
Panasonic and semiconductor producer Micron Technology.

B2B transactions are also the backbone of the automobile industry. Many vehicle
components are manufactured independently, and auto manufacturers purchase these parts to
assemble automobiles. Tires, batteries, electronics, hoses and door locks, for example, are
usually manufactured by various companies and sold directly to automobile manufacturers.

Service providers also engage in B2B transactions. Companies specializing in property

management, housekeeping, and industrial cleanup, for example, often sell these services
exclusively to other businesses, rather than individual consumers.

2.Business-to-Consumer (B2C) – It is the most common form of e-commerce, and it deals

with electronic business relationships between businesses and consumers. This kind of e-
commerce allows consumers to shop around for the best prices, read customer reviews and
find different products that they would not find otherwise in the retail world. This kind of e-
commerce is related to the transactions and relationships between businesses and the end
customers. Today, we find various online shopping sites and virtual stores on the internet, that
sell thousands of products, ranging from computers, fashion items to medicines and other
necessities.

Traditional B2C examples would include major retailers like Walmart or Target. Looking
specifically at e-commerce, there is no better example than Amazon. The storefront is entirely
electronic, and Amazon serves more consumers daily than any other business.

3.Consumer-to-Consumer (C2C) – This level of e-commerce consists of all electronic

transactions that take place between consumers. This consists of electronic transactions of
goods and services between two customers and is mainly conducted through a third party that
provides an online platform for these transactions. C2C e-commerce consists of sites where
old items are bought and sold, such as OLX, Quickr etc. Generally, these payment
transactions are provided by online platforms (such as PayTM, Google Pay etc), and are
conducted through social media networks (such as Facebook, Instagram etc) and websites.
some big names in C2C include eBay, Etsy, Craigslist, Ali Express, and Amazon
Marketplace. Some C2C payments companies include Venmo, Paypal, and Zelle.

How Does C2C Differ From P2P?

C2C stands for customer-to-customer; P2P stands for peer-to-peer. Both concepts involve
consumers or individuals dealing with one another. The main difference is that with C2C,
there is a company or other third party in between the buyer and the seller (or sender and
receiver). In a P2P platform, counterparties transact directly with one another without that
intermediary.

4.Consumer-to-Business (C2B) – In C2B e-commerce, a consumer or an individual makes

their goods or services available online for companies to purchase, so, in this kind of e-
commerce a complete reversal of the selling and buying process takes place. For example, a
graphic designer making a company site or logo or a photographer taking photos for an e-
commerce website. This is very relevant for crowd-sourcing projects.
Here are some example scenarios of C2B:
A food blogger who shares an affiliate link to a kitchen company’s cooking products on their
blog.
A tech blogger who displays a company's service ads to their audience in exchange for a cut
of the ad revenue.
Social media users who fill out surveys on Survey Junkie or promote products and services.
Large e-commerce websites or sellers who pay or otherwise reward consumers for reviewing
their products or when they share a review on their personal social media.

5.Business-to-Administration or B2G (B2A) – This e-commerce consists of electronic

transactions that takes place companies and bodies of public administration such as
government. Therefore, the B2A model is sometimes also referred to as B2G (Business-to-
Government). Many processes are becoming optimized through digitalization because of that
many administrations and governing bodies are implementing third-party technologies to
assist in the process. This involves many services in various areas such as social
security, fiscal measures, employment and legal documents.

Example: Business to government (B2G) is when a company markets its products and
services directly to a government agency. This agency could be a local, county, state, or
federal agency. An example of a B2G relationship is when an ammunition manufacturer
sells ammunition to the US Army

6.Consumer-to-Administration or C2G (C2A) – This e-commerce consists of electronic

transactions that takes place between people and bodies of public administration. This
relationship allows access for consumers to receive information, make payments, and
establish direct communication between the government or administrations and the
consumers. Many common C2A transactions may include paying taxes, fines, or paying
tuition to a University. The main objective of both the B2A and C2A types of eCommerce is
to increase flexibility, efficiency, and transparency in public administration.
For example:
 A web designer building a company's website.
 A photographer picturing product catalogs.
 A caterer working on corporate events, conferences or business meetings.

Advantages and Disadvantages of E-Commerce

E-commerce is an advanced way of conducting businesses online and across the borders and
because of that it has various advantages to it:

1. Its reach is across the global market and with minimum investments.
2. It enables sellers to sell their products on a global level and allows customers to
make a broader choice. Now sellers and buyers can meet in the virtual world,
without the barrier of borders.
3. E-commerce process reduces the product distribution chain to a considerable
extent.
4. It helps in making a direct and transparent business and transaction channel
between the producers, wholesalers and final customers.
5. It provides quick delivery of goods and customer complaints are also addressed
quickly. It also saves time, energy and effort for both the consumers and the
company.
6. E-commerce leads to increased productivity and better service as it brings sellers
and customers closer.
7. The customer can choose between different sellers.
8. Customers now have access to virtual stores all the time.
9. E-Commerce leads to considerable cost reduction of goods and services.
Transaction costs are also reduced in E-commerce and due to that customers get to
buy products at a comparatively lower rate.

Disadvantages

1. Its dependence on network connectivity and information technology.

2. There aren’t definite legislations both domestically and internationally to regulate
e-commerce transactions.
3. There can be a loss of the privacy of the customer.
4. Security is another issue. Issues like credit card theft, identity theft, etc. are some
of the security related concerns.
5. There can be fraudulent financial transactions on online platform.
 6. The costs of opening the e-commerce portal and maintaining it are very high. The
setup of the hardware and the software, the training cost of employees and the
constant maintenance are all expensive.

E-Commerce Vs E-Business
While most believe that E-Commerce and E-Business can be used interchangeably, it is not
so. While E-Commerce may refer to conducting online transactions, E-Business encompasses
all the business activities and services conducted using the web. Here, in this article, we have
attempted to explain the definitions and compare both these terms to understand their
differences.
The terms discussed in this article are:

 E-Commerce
 E-Business

What is E-Commerce?
E-Commerce is about conducting commercial transactions via the web or getting involved in
selling and buying items over the internet. It also covers monetary transactions. Some other
online e-commerce activities include:

 Ticketing over internet

 Paying different taxes
 Online payments
 Products purchased or sold online
 Online Accounting Software
 Online Customer Support
Meanwhile, also find examples of E-Commerce sites. They include Flipkart, Paytm Mall,
Amazon, Myntra and more.

What is E-Business?
E-Business encompasses executing all types of business transactions and services via the
web. This includes procuring raw materials, online education, commercial transactions,
monetary transactions on the internet and more. This indicates an online presence of all types
of businesses and services.
Examples are E-Commerce companies and their additional internal business activities such as
classifieds, auction sites, software or hardware developer sites, etc. The E-Business online
activities, in the meantime, include:

 Setting up an online store

 Supply chain management
 Online commercial transactions (buying and selling products)
 Customer Education
 Monetary Business Transactions
 E-Mail Marketing
E-COMMERCE E-BUSINESS

Carrying out commercial transactions Conducts all kinds of business activities and
online services over the internet

Buying/ selling, monetary transactions Online presence of the business

online

A sub-set of E-Business, it is also a narrow A super-set of E-Commerce. Business

concept transactions are supported in E-Business

Limited transactions Transactions are not limited

Involves use of only one website Multiple websites and CRMs, ERPs that
connect different business processes are used

Mandatory use of internet Internet, Intranet or Extranet are used

It is more relevant in B2C This is more appropriate to B2B

Covers internal as well as external business

Also cover external or outward business activities or processes
processes

Internet

Internet is defined as an Information super Highway, to access information over the web.
However, It can be defined in many ways as follows:
 Internet is a world-wide global system of interconnected computer networks.
 Internet uses the standard Internet Protocol (TCP/IP).
 Every computer in internet is identified by a unique IP address.
 IP Address is a unique set of numbers (such as 110.22.33.114) which identifies a
computer location.
 A special computer DNS (Domain Name Server) is used to give name to the IP Address
so that user can locate a computer by a name.
 For example, a DNS server will resolve a name http://www.tutorialspoint.com to a
particular IP address to uniquely identify the computer on which this website is hosted.
 Internet is accessible to every user all over the world.

Evolution

The concept of Internet was originated in 1969 and has undergone several technological &
Infrastructural changes as discussed below:
 The origin of Internet devised from the concept of Advanced Research Project
Agency Network (ARPANET).
 ARPANET was developed by United States Department of Defense.
 Basic purpose of ARPANET was to provide communication among the various bodies
of government.
 Initially, there were only four nodes, formally called Hosts.
  In 1972, the ARPANET spread over the globe with 23 nodes located at different
countries and thus became known as Internet.
 By the time, with invention of new technologies such as TCP/IP protocols, DNS,
WWW, browsers, scripting languages etc.,Internet provided a medium to publish and
access information over the web.

characteristics and features of the internet, which are given below.

 Accessibility
 Flexibility
 Easy to Use
 Security
 Low Cost
 Share Anything
 Connectivity
 Things are Online
1. Accessibility
Internet accessibility refers to the ability of individuals to access and use the Internet. This
includes the ability to use the Internet for communication, education, employment, and other
activities.
There are a variety of factors that can impact an individual's ability to access and use the
Internet, including economic, social, and technological factors. In simple words, in this
present time, anyone accesses the internet easily.
There are a variety of organizations and initiatives that are working to improve Internet
access for everyone. These efforts include developing new technologies, providing financial
assistance, and creating awareness about the importance of Internet accessibility.

2. Flexibility
Flexibility on the internet is a big advantage. It makes it possible to work from home or
anywhere. No need to commute anywhere. Flexibility brings work-life balance.
The Internet is a technology, in which the help of you can work from anywhere at any time.
You can do a lot with the Internet that you do anywhere else, now you can do it from your
home too. You can be your own boss. You can run your own business.
You can continue your own professional education. You can follow up on a hobby or
passion. You can do whatever you want.
The Internet is a place where you are free to do anything you want. It’s your own world. No
boss, no time limits, no restrictions, no work, no office, no commute. It’s your freedom.

3. Easy to Use
The Internet is much more accessible and easier to use than other mediums – it’s fast, easy,
accessible, convenient, and cheap! The information you get is much more comprehensive and
up-to-date than what you get through newspapers, the radio and television.
You won’t have to drive to the library to look for a particular book or magazine to know what
is going on in the world. Today even small children are using the internet.
The internet is therefore a very powerful medium of knowledge. You can be connected to
people from all over the world while sitting in your home! It’s also possible to get up-to-date
information about businesses, governments, and many other organizations, as well as other
individuals.
4. Security
Security is the paramount issue of the Internet. Without security, no one will trust a
particular Internet-based service.
No one will use Internet banking, no one will trust any email that claims to be from your
bank/credit card provider. So, it's as important to make the Internet secure as it is to make it
usable.
For example, the security of credit card details should be of top priority for every business.
The credit card number should not be sent over the network (or the internet) in clear text, it
should be encrypted. It should be easy to use and not complex.

5. Low Cost
Cost is an important factor when thinking about using the Internet. The Internet is an open-
source technology, which means its base is open to public view and anyone can take
advantage of it to develop their own software.
Due to the development of open-source technology, the Internet has been able to have huge
savings in comparison to other forms of technology.
It also enables users to access open-source software for free. This makes it possible for
businesses to dramatically reduce their operating costs and to give consumers much greater
value from their products.

6. Share Anything
The Internet has so many features that it is impossible to list them all. You can share
anything, anywhere. What kind of subject are you specifically interested in?
You can go to read the news, talk to your friends, and do many other things. The Internet is a
network of computers that communicate with each other.
Using the Internet, you can send and receive emails, share pictures, watch videos, meet
people, keep in touch with your friends, get the weather forecast, play games, chat with
people, send money, receive payments, and more.

7. Connectivity
Connectivity is one of the main features of the Internet, allowing people to connect with each
other in many ways. It provides an interface for electronic communication through various
networks, including the net and mobile phone networks.
Two-way connectivity, bidirectional communication, is the most common form of
connectivity, especially for Internet services.

8. Things are Online

The Internet is a constantly growing network connecting computers throughout the world.
The Internet is a great medium to shop for anything.
With the help of internet you can easily do many things such as - sending and receiving
emails, sharing photos and videos, watching videos, meeting people, keep in touch with your
friends & family members.
You can check weather forecasts and play games and chat with people, send money and
receive payments and much more things.
Today many digital and physical items and services are available online, and many items or
services can get at very cheapest prices through the Internet.
Internet shopping is hassle-free and efficient. You can research a lot of products, compare
prices, and check out customer reviews, all at your convenience.
WWW Overview

WWW stands for World Wide Web. A technical definition of the World Wide Web is : all
the resources and users on the Internet that are using the Hypertext Transfer Protocol (HTTP).
A broader definition comes from the organization that Web inventor Tim Berners-
Lee helped found, the World Wide Web Consortium (W3C).
The World Wide Web is the universe of network-accessible information, an embodiment of
human knowledge.
In simple terms, The World Wide Web is a way of exchanging information between
computers on the Internet, tying them together into a vast collection of interactive multimedia
resources.
Internet and Web is not the same thing: Web uses internet to pass over the information.

Evolution

World Wide Web was created by Timothy Berners Lee in 1989

at CERN in Geneva. World Wide Web came into existence as a proposal by him, to allow
researchers to work together effectively and efficiently at CERN. Eventually it
became World Wide Web.
The following diagram briefly defines evolution of World Wide Web:

What is M-Commerce?

Mobile commerce or simply M-Commerce means engaging users in a buy or sell process via
a mobile device. For instance, when someone buys an Android app or an iPhone app, that
person is engaged in m-commerce. There are a number of content assets that can be bought
and sold via a mobile device such as games, applications, ringtones, subscriptions etc.

How does M-Commerce Work?

Before you sell your products or services via m-commerce, you need to decide what type of
outlets or stores suit your business best. Let us suppose you have created ringtones − you can
sell them either at specific third-party outlets or to independent aggregators who charge you a
commission for the service.
You can also sell your ringtones on mobile stores or app stores such as Android marketplace
or App store (Apple). These stores are frequently visited by many buyers and hence ideal for
making sales easily and efficiently. Finally, you can also sell via your own mobile store by
creating a mobile website specifically for sales or as by setting-up an m-commerce page on
your main website.
Set up Mobile Billing
Once you have decided where to sell, the next step is to set up your merchant account. For
instance, you can use third-party services such as PayPal. This is ideal for small businesses or
also large companies. A third-party application makes it really easy for you as well as your
customers to make the payments, but then they do charge commission on the transaction.
You can also set-up your own billing and payment gateway, but make sure that you make it
really easy for users. Mobile users do not use keyboards or a mouse so make sure that the
design of your m-commerce site is intuitive, with easy navigation tools and the right display
sizes. Basically, make your m-commerce site optimized for Smartphone users.

Benefits of M-Commerce

The major benefit of engaging in m-commerce is the sheer size of potential sales. The
probability of your potential customers owning a Smartphone is very high, so you can safely
assume that you will get much more positive response from mobile devices than your
website. M-commerce is recommended for every business irrespective of its type, scale, and
size.
Mobile devices help users to navigate the world. Customers use mobile devices for all aspects
of their needs. They act on the information they see. So advertisers need to extend online
advertising and should strive to be seen on mobiles.

EDI
EDI stands for Electronic Data Interchange. EDI is an electronic way of transferring business
documents in an organization internally, between its various departments or externally with
suppliers, customers, or any subsidiaries. In EDI, paper documents are replaced with
electronic documents such as word documents, spreadsheets, etc.

EDI Documents

Following are the few important documents used in EDI −

 Invoices
 Purchase orders
 Shipping Requests
 Acknowledgement
 Business Correspondence letters
 Financial information letters

Steps in an EDI System

Following are the steps in an EDI System.
 A program generates a file that contains the processed document.
 The document is converted into an agreed standard format.
 The file containing the document is sent electronically on the network.
 The trading partner receives the file.
 An acknowledgement document is generated and sent to the originating organization.

Advantages of an EDI System

Following are the advantages of having an EDI system.

 Reduction in data entry errors. − Chances of errors are much less while using a
computer for data entry.
 Shorter processing life cycle − Orders can be processed as soon as they are entered
into the system. It reduces the processing time of the transfer documents.
 Electronic form of data − It is quite easy to transfer or share the data, as it is present
in electronic format.
 Reduction in paperwork − As a lot of paper documents are replaced with electronic
documents, there is a huge reduction in paperwork.
 Cost Effective − As time is saved and orders are processed very effectively, EDI
proves to be highly cost effective.
 Standard Means of communication − EDI enforces standards on the content of data
and its format which leads to clearer communication.

Key elements of business model:

1. Value Proposition
It is the description of what your product or service does to fulfill the customers’ needs. It
should clearly define why a customer would buy from your company. The value proposition
should be personalized and customized to include the reduction of product search, discovery
costs on price, and how you’ll manage product delivery.

2. Revenue Model
This portion relates to how you plan to make money from your business through revenue and
producing a good return on capital invested. It could potentially include advertising revenue,
subscription revenue, transaction fees, sales revenue, and affiliate revenue. The type of
revenue you bring in depends on your business, of course, but whatever your income plan is,
it’s important to lay it out clearly for yourself and investors.

3. Market Opportunity
You want to lay out your company’s market space and include your target market and the
overall number of people in this audience. If there is a lot of demand for your
services/products across a large demographic, it warrants creating a business around this
demand. In addition, the market opportunity allows you and others to understand the potential
financial possibilities, and it’s essential to do enough research to have realistic financial
numbers.

4. Competitive Environment
If you’ve determined that you have a large target audience, you also want to ensure that the
market isn’t saturated with your product or service. For example, you want to figure out who
your competition is. Who is offering a similar product or service in your market space? Then,
find out who they are and how big they are. Know their market shares, what they provide,
and how much they charge for the product they sell.

5. Competitive Advantage
By knowing who your competition is, what they offer, and how much they charge, you can
work to differentiate yourself from them. First, figure out how you’re different to encourage
customers to choose your company. It might be selling a similar product or service for less or
having a specific company culture that resonates with people.

6. Market Strategy

You want to figure out how you plan to enter the market and attract customers, so it’s
important to know how you will make your first impression. It needs to be a well-thought-out
process, and you may wish to follow a sales funnel process.

Think of your target audience and how you can reach them with the most impact. You may
choose to use social media influencers, do a campaign with a social media platform that
makes the most sense for your business, and, of course, create a brand.

7. Organization Development
It’s also imperative to organize how your business will run to avoid chaos and keep things
streamlined. You want to have organizational structures in place as this will help ensure that
essential work is completed. In addition, you want to have a process that defines functions in
the workplace, which will make it easy for employees to understand their roles and help them
be as efficient as possible. Finally, organization development will directly influence how
satisfied your customers are as orders and support are dispatched as quickly as possible.
Management Team
This business model aspect will explain the experiences and background that a company
leader should look for. Whether you have your management team together or not, you want
to consider what you need from them. If you have a strong team, they can change the
business model and the business when necessary. Knowing how to pivot gives a management
team credibility to investors.

Reasons for transacting online:

1. Providing practical payment system: Online transactions provide convenience for

both consumers and business owners. This is because online transaction payment
systems such as BRIVA and Direct Debit allow an instant process of payment
verification. Consumers don’t need to manually send their proof of payment. So as a
business owner, you don’t have to manually record it as well. This process can
minimize errors that may occur due to human error, such as incorrectly entering buyer
data or losing records due to damaged files.

2. Reducing human resources’ need: Instant verification processes will certainly

reduce the need for human resources on your team, especially to do the bookkeeping
process. Thus, your work as a team will be easier. You can even allocate your
resources to other needs.

3. Providing a sense of security for consumers: A trusted online transaction system

will give consumers a sense of security notably when making payments since they
have legal evidence when doing transactions. For example, in an e-commerce
business, payment funds will not be sent to the seller if the goods have not been
received by the buyer. This can reduce the possibility of fraud that can be carried out
by dishonest sellers.

4. Reaching a wider range of consumers: By presenting online transaction services,

your consumers will not be limited to those who are around your offline store. You
can present your product to anyone through the internet with no worries. It is because
online transactions allow consumers to buy whatever they want directly from your
 website or application. For example, if you are targeting the international market, you
should be able to reach it by international shipping services.

5. Doing easier promotion: In running a business, you shall have a crystal clear
marketing strategy that needs to be updated regularly. By providing online transaction
services, you can present promos and discounts that cater to your target consumers.
Furthermore, you can analyze the habits of your consumers when making digital
transactions to create appropriate promos.

6. Increasing customer retention rate: To be able to transact online, consumers have

to register on your website or application. When doing that, they must fill in their
personal data such as name, delivery address, phone number, and email address. You
can ask consumers first if they would or would not agree that the personal data will be
used for marketing purposes.

One clear example is the use of email address data for newsletter delivery and
customer satisfaction assessments. You can send questions to consumers about how
they rate your product. You can use their feedback as a benchmark to continue to
improve your products or services.

Besides, you can send newsletters containing promo offers that are related to the
products they previously purchased. For example, if they previously bought shoes,
you might be able to offer them shoe polish products you sell.

This pattern is called customer retention. After they make their first purchase, we
successfully invite them to make a second one and forth because they are satisfied
with our services while feeling close to us. Of course, this will be easier to do if you
have an online transaction service rather than just relying on offline visits.

7. Providing fast and easy integration: No more worries on building a complex system
to provide an excellent online transaction service for your business. With BRIAPI,
everything can be done in four easy steps.

Factors affecting e-commerce:

Political factors:

It includes the role of government legislation, initiatives and funding to support the use and
development of e-commerce and information technology. Several aspects of government
policy can affect e-commerce business. All firms must follow the law. Managers must find
how upcoming legislations can affect their activities. The government's role in developing
countries is an important one as it facilitates the essential requirements for the development
of E-Commerce such as providing robust secure on-line payment options, ensuring a solid
ICT infrastructure, providing educational programs and building up awareness using different
means such as media and education institutions.

2.Economic factors:

It includes the general wealth and commercial health of the nation and the elements that
contribute to it. Economic efficiency results in the reduction of communications costs,
lowcost technological infrastructure, speedier and more economic electronic transactions with
suppliers, lower global information sharing and advertising costs, and cheaper customer
service alternatives. Economic integration is either external or internal. External integration
refers to the electronic networking of corporations, suppliers, customers/clients, and
independent contractors into one community communicating in a virtual environment (with
the Internet as medium). Internal integration, on the other hand, is the networking of the
various departments within a corporation, and of business operations and processes. This
allows critical business information to be stored in a digital form that can be retrieved
instantly and transmitted electronically. Internal integration is best exemplified by corporate
intranets. Among the companies with efficient corporate intranets are Procter and Gamble,
IBM, Nestle and Intel.

3.Social factors:

Incorporating the level and advancement in IT education and training which will enable both
potential buyers and the workforce to understand and use the technology. Rising standards of
living and a burgeoning, upwardly mobile middle class with high disposable incomes, Busy
lifestyles, urban traffic congestion and lack of time for offline shopping have given boost to
e-commerce. Evolution of websites such as Flipkart, Snapdeal, ebay etc. has become a
market place where seller register with them and pays commission on every sale

4. Technological factors:
The development of ICT is a key factor in the growth of e-commerce. It has made
communication more efficient, faster, easier, and more economical as the need to set up
separate networks for telephone services, television broadcast, cable television, and Internet
access is eliminated. Due to technological advances economic transactions have become
much easier and faster and this has given boost to the development of e-commerce

Electronic Fund Transfers (ETFs):

Electronic fund transfer (EFT) is the electronic exchange of cash starting with an individual
account in the bank to another individual account of the same bank, or within or with other
financial institutions or with multiple institutions, by means of personal computers based
frameworks, without the immediate intercession of bank staff.

An electronic funds transfer is the electronic transfer of money between people, banks and
companies. This payment technology is used to pay bills, send money to friends and family
and compensate workers each payday.

EFT payments are a speedier alternative to physical payment methods like cash and checks.
Direct deposit, credit card transactions, ATM transactions, electronic checks and phone
payments are all types of EFT payments.

Working:

EFT payments need two parties to work: a sender and a receiver. When the sender commits
to sending funds to the receiver, that payment goes out through the appropriate payment
network and moves money from the sender’s account to the receiver’s account.

Here are two examples to help you understand how money moves across payment networks.

1. Let’s say you’re at the grocery store and ready to pay. At checkout, you slide your
debit card into the payment terminal to settle your bill. Once you enter your PIN
and approve the transaction, money is moved in real time from your checking
account to the grocery store’s account. You can grab your groceries and head
home.

2. Another example is a paycheck direct-deposited into your checking account. For

this transaction, your employer is the sender and you’re the receiver. When you set
up direct deposit, you provide your employer with your bank account and routing
 number. Your employer inputs your banking information into their payroll
provider’s system. The payroll provider then initiates a transaction that debit’s
your employer’s bank account and sends funds directly to your account. These
transactions happen over the ACH network and take a few days to complete.

What Is an EFT Payment?

An EFT payment is another name for an EFT transfer. if you’ve used an app on your
smartphone to send money to a friend for a restaurant tab, you’ve used EFT technology.

Apps like Cash App, PayPal and Venmo make it easy to send funds from person to person in
a flash. These peer-to-peer (P2P) payment systems use EFT technology to move money.
When you register to use one of these applications, you can link your debit card, bank
account, or both. Some apps allow you to connect your credit card (usually for a charge per
transaction). When you want to send a payment, you open the app, enter the information for
the receiving party, confirm your transaction and send money.

EFT payments need two parties to work: a sender and a receiver. When the sender commits
to sending funds to the receiver, that payment goes out through the appropriate payment
network and moves money from the sender’s account to the receiver’s account.

In 1978, the U.S. government passed the Electronic Fund Transfer Act (EFTA), which
outlined consumer protections around specific types of electronic conveyances of money.

Here are the EFT payment types protected by the EFTA:

Electronic Checks: This EFT payment type replaces paper checks. Typically, you’ll tell a
vendor it’s okay to use your checking account information to create a virtual check and
submit it for payment.
Direct Deposit: Instead of receiving a monthly physical check, this EFT payment method
electronically deposits your payroll funds into your bank account.
Phone Payments: You can pay bills over the phone by giving a company your banking
information. The company then initiates a debit to your bank account for the agreed-upon
amount.
ATM Transactions: When you withdraw or deposit money from your accounts or move
money between accounts at an ATM, you’re using an EFT payment method.

Credit Card Transactions: You can make payments toward your credit card balances using
EFT payments. You can also use EFT to transfer balances from one credit card to another.
What Are the Benefits of EFT?

Electronic funds transfers allow you to send and receive money faster than you would with a
check.

And EFT technology makes it easy to do business where you want. You can buy groceries
from your living room and tip your Uber or Lyft driver from your mobile device. You can put
all of your household bills on auto-pay each month, avoiding late charges. You can pay
friends, family and colleagues quickly and efficiently by using a peer-to-peer payment app.

Automated data collection software has helped businesses streamline their document
management, amongst other benefits. Improvements to their business processes include:
Faster Turnaround Times
Processing paper forms such as medical claims can take up significant amounts of time.
One must wait for documents to be processed, proofread, scanned, mailed out to the
proper parties, only to go through further steps on that end. Automation can shave down
the time it takes to process paper claims from days to minutes.
Saving time on mundane, slow processes means freeing up time to spend on more training
for employees, getting more work done, and applying more energy to data quality
assurance and other critical tasks.
Fewer Manual Processes
Automated data collection will help businesses eliminate outdated manual processes. As
technology continues to enhance and grow, paper forms and documents seem to be going
away, almost completely. The manual processing of paper forms is old news.
Automation reduces the time it takes to process data manually and saves on space
required to file and store paper documents. Thanks to automated data capture, those files
are now all digital and can be kept securely for years and years while being easily
accessible.
Reduction in Errors
Manual data entry brings a much higher risk of the inevitable human error. Despite
diligent training and expertise, mistakes can still happen. During automated data
processing, however, artificial intelligence and optical character recognition can help
alleviate these errors.
Data collection software can quickly read through documents and compare them to other
files and templates to ensure all data is complete, and things like names and date of birth
match up on sensitive documents. OCR can even read handwritten forms and translate
them to correct digital formats.
Increased Efficiency
Another advantage of automatic data collection systems is that it simplifies complex tasks
into fewer steps, which increases efficiency in those tasks, as well as others. When the
need for extra steps taking place during manual processes is removed, businesses can
dedicate more time to other workflows, increasing productivity.
Cost Savings
Automation can rid your business of extensive costs related to extra labor, ongoing
training, equipment maintenance, system updates, and document storage. It can also allow
for funds to be redistributed to other departments, enhancing internal processes, updating
computers and other machines, etc.
Businesses can see significant cost savings by choosing to hire an outside organization to
handle their data capture rather than an in-house team. This is becoming incredibly more
popular as businesses see the incredible advantages of paying a flat rate to get the same, if
not better, data processing as they did doing it themselves