Ch 4- E- commerce

Notes

1. Introduction to E-commerce

Definition: E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. It also includes online transactions and electronic data interchange

Types of E-commerce:

• B2B (Business to Business): Transactions between businesses.
• B2C (Business to Consumer): Transactions between businesses and consumers.
• C2C (Consumer to Consumer): Transactions between consumers, usually facilitated by a third party.
• C2B (Consumer to Business): Transactions where consumers offer products or services to businesses.

2. Advantages of E-commerce

• Convenience: Customers can shop 24/7 from anywhere with internet access.
• Wider Selection: E-commerce allows access to a global marketplace, offering more choices.
• Lower Costs: Reduced overhead costs compared to physical stores, often leading to lower prices.
• Personalized Shopping Experience: Data collected through e-commerce can be used to personalize customer experiences.
• Efficient Transactions: Digital transactions are faster and more efficient, with immediate payments and confirmations.

3. Disadvantages of E-commerce

• Security Issues: Risks of data breaches, fraud, and cyber-attacks.
• Lack of Personal Interaction: Absence of face-to-face communication may deter some customers.
• Dependence on Technology: E-commerce relies heavily on the internet and digital infrastructure, which can be a disadvantage in areas with poor connectivity.
• Delivery Time: Unlike instant purchases in physical stores, e-commerce requires time for product delivery.
• Return and Refund Issues: Handling returns and refunds can be more complicated and time-consuming.

4. E-commerce Platforms

• Online Marketplaces: Websites like Amazon, eBay, and Alibaba that connect buyers and sellers.
• E-commerce Websites: Dedicated websites created by businesses to sell their products directly to consumers.
• Social Media Platforms: Using social media channels like Facebook, Instagram, and WhatsApp to promote and sell products.

5. E-payment Systems

• Definition: E-payment systems allow users to pay for goods and services electronically.
• Types of E-payment Systems:
• Credit/Debit Cards: Commonly used for online purchases.
• Digital Wallets: Mobile apps like PayPal, Google Pay, and Apple Pay that store payment information.
• Net Banking: Direct transfers from a customer's bank account to the seller.
• Cryptocurrency: Digital currency like Bitcoin used for transactions.

6. E-commerce Security

• Security Measures:
• SSL Certificates: Ensure secure communication between the user's browser and the website.
• Encryption: Protects sensitive data during transactions.
• Two-Factor Authentication (2FA): Adds an extra layer of security by requiring a second form of verification.
• Firewalls: Prevent unauthorized access to a website’s servers.
• Regular Audits: Ensures the e-commerce platform complies with security standards.

7. Legal and Ethical Issues in E-commerce

• Privacy Concerns: Protecting consumer data from unauthorized use.
• Intellectual Property Rights: Respecting copyrights, trademarks, and patents in online content and products.
• Consumer Protection: Ensuring fair trade practices and resolving disputes in online transactions.
• Taxation: Properly accounting for and paying taxes on e-commerce transactions.

8. Future of E-commerce

• Mobile Commerce (M-commerce): The growth of mobile device usage for shopping and transactions.
• Artificial Intelligence: Personalized recommendations, chatbots for customer service, and automation of processes.
• Omnichannel Retailing: Integration of online and offline channels to provide a seamless shopping experience.
• Global Expansion: E-commerce businesses expanding their reach to international markets.

M-commerce (Mobile Commerce)

1. Introduction

• Definition: Mobile commerce, or M-commerce, refers to the buying and selling of goods and services through mobile devices such as smartphones and tablets. It is a subset of e-commerce and is facilitated by mobile applications, websites, and SMS.

2. Types of M-commerce

• Mobile Shopping: Using mobile apps or websites to purchase products and services.
• Mobile Banking: Conducting banking transactions, such as transfers, bill payments, and account management, through mobile devices.
• Mobile Payments: Making payments using mobile devices, including through apps like Google Pay, Apple Pay, and mobile wallets.
• Mobile Ticketing: Purchasing and storing tickets for events, transportation, and other services directly on mobile devices.

3. Advantages of M-commerce

• Convenience: Allows users to shop, bank, and pay bills on the go, anytime, and anywhere.
• Personalization: Mobile apps can use data to offer personalized recommendations and deals based on user preferences and behavior.
• Accessibility: Expands access to online services for people in regions where mobile devices are more prevalent than computers.
• Quick Payments: Mobile payments are fast and often more secure, thanks to technologies like biometrics and NFC (Near Field Communication).

4. Challenges of M-commerce

• Security Concerns: Mobile devices are vulnerable to hacking, phishing, and malware, making secure transactions a priority.
• Limited Screen Size: The small screen size of mobile devices can make navigation and product viewing more challenging.

Model Questions

Short answer questions.

1. Define E-Commerce.

E-Commerce, or electronic commerce, refers to the buying and selling of goods and services over the internet. It involves various online transactions, such as online shopping, electronic payments, and online banking

2. What is the business done through the internet?

The business conducted through the internet encompasses a wide range of activities, including online retail, digital services, advertising, content creation, and more.

3. Mention the benefits and limitations of E-Commerce.

Benefits of E-Commerce include global reach, convenient shopping, reduced overhead costs, and the ability to operate 24/7. However, it also has limitations like security concerns, lack of physical interaction, and potential technical issues.

4.List the different types of E-Commerce.

There are several types of E-Commerce: 

B2C (Business-to-Consumer), 

B2B (Business-to-Business), 

C2C (Consumer-to-Consumer)

5.What is M-Commerce? Give some examples.

M-Commerce, or mobile commerce, refers to E-Commerce transactions conducted through mobile devices. Examples include mobile banking, mobile ticketing, and in-app purchases.

6.What is Online Payment? Write the different forms of e-payment in Nepal.

Online payment involves electronic transactions to pay for products or services. 

In Nepal, various forms of e-payment include bank transfers, mobile wallets like Khalti and eSewa, credit/debit card payments, and online banking.