The Emerging World of E Commerce
Shivani Zutshi
Vithika Sharma
Btech (CSE)
Dronacharya College of
Engineering, Greater Noida
Btech (CSE)
Dronacharya College of
Engineering, Greater Noida
shivaniiiii18@gmail.com
sharmavithika7@gmail.com
ABSTRACT
computers, office supplies and other consumer
electronics.
This paper provides an overview of e
commerce. The paper attempts to review the
definition of e commerce and how it is changing
the world. The paper further tries analyzing the
advantages and disadvantages of e commerce.
Finally this paper concludes with how the e
commerce companies can boost their business
by minimizing the disadvantages.
A glance at the E commerce history
NTRODUCTION
E commerce or we can say electronic
commerce, has become an integral part of our
daily life. Nowadays the thought of living
without ecommerce seems unfathomable,
complicated and an inconvenience to many.
By definition e-commerce refers to businesses
and consumers buying and selling products
online. The majority of e-commerce websites
on the internet are retail stores selling products
directly to the public. E-commerce does not
only refer to the selling of physical products, it
can also refer to the selling of services where
payments for the services are made online [1].
As a general rule an e-commerce website is a
website where a transfer of funds is completed
electronically - hence e-commerce.
Currently there are 5 largest and most famous
worldwide Internet retailers: Amazon, Dell,
Staples, Office Depot and Hewlett Packard.
According to statistics, the most popular
categories of products sold in the
World Wide Web are music, books,
Ecommerce was introduced 44 years ago and,
to this day, continues to grow with new
technologies, innovations, and thousands of
businesses entering the online market each
year. The convenience, safety, and user
experience of ecommerce has improved
exponentially since its inception in the
1970’s.
History of ecommerce is unthinkable without
Amazon and EBay which were among the first
Internet companies to allow electronic
transactions. Thanks to their founders we now
have a handsome ecommerce sector and enjoy
the buying and selling advantages of the
Internet [2].
One more company which has contributed
much to the process of e commerce
development is Dell Inc. an American
company located in Texas. Dell is a
straightforward company that, like a host of
others, sells custom-configured PCs to
consumers and businesses. Dell started as a
mail-order company that advertised in the
back of magazines and sold their computers
over the phone. Dell's e-commerce presence is
widely publicized these days because Dell is
able to sell so much merchandise over the
Web. According to IDG, Dell sold something
like $14,000,000 in equipment every day in
2000, and 25 percent of Dell’s sales were over
the Web [3].
the shoemaker to the retailer would be
considered a (B2B) transaction. While
the term e-commerce refers to all online
transactions, B2C stands for "businessto-consumer" and applies to any
business or organization that sells its
products or services to consumers over
the internet for its own use [5].
History of ecommerce is a history of a new,
virtual world which is evolving according to
the customer advantage. It is a world which
we are all building together brick by brick,
laying a secure foundation for the future
generations.
2. Types of E commerce:

Consumer to Business(C2B): C2B is an
e commerce business model in which
consumers (individuals) offer products
and services to companies and the
companies pay them. This business
model is a complete reversal of
traditional business model where
companies offer goods and services to
consumers. We can see this example in
blogs or internet forums where the
author offers a link back to an online
business facilitating the purchase of
some product (like a book on
Amazon.com), and the author might
receive affiliate revenue from a
successful sale [6]. Another example
where a consumer posts his project with
a set budget online and within hours
companies review the consumer's
requirements and bid on the project. The
consumer reviews the bids and selects
the company that will complete the
project [7].

Consumer to Consumer (C2C): C2C e
commerce involves the electronically
facilitated transactions between
consumers through some third party.
There are many sites offering free
classifieds, auctions, and forums where
individuals can buy and sell thanks to
online payment systems like PayPal
where people can send and receive
money online with ease. EBay’s auction
service is a great example of where
person-to-person transactions take place
everyday since 1995.
The major E commerce types are-


Business to Business (B2B): B2B
describes commerce transactions
between businesses, such as between a
manufacturer and a wholesaler, or
between a wholesaler and a retailer.
About 80% of e-commerce is of this
type, and most experts predict that B2B
e-commerce will continue to grow faster
than the B2C (i.e. Business 2
Consumer) segment. Most B2B
applications are in the areas of supplier
management (especially purchase order
processing), inventory management
(i.e., managing order-ship-bill cycles),
distribution management (especially in
the transmission of shipping
documents), channel management (i.e.,
information dissemination on changes in
operational conditions), and payment
management (e.g., electronic payment
systems or EPS) [4].
Business to Consumer (B2C): B2C
describes activities of businesses
serving end consumers with products
and/or services. An example of a B2C
transaction would be a person buying a
pair of shoes from a retailer. The
transactions that led to the shoes being
available for purchase, which is the
purchase of the leather, laces, rubber,
etc. However, the sale of the shoe from
There are other forms of ecommerce that
involve transactions with the government-from procurement to filing taxes to business
registrations to renewing licenses.
G2G (Government-to-Government), G2E
(Government-to-Employee), G2B
(Government-to-Business), B2G (Businessto-Government), G2C (Government-toCitizen), C2G (Citizen-to-Government).
3. Pros and Cons of E commerce:
the week, and every week of the year. Your
receptionist, greeter and front people are
always working for you because they are your
website. They do not complain about the long
hours.
Messages spreading (world wide market
space) – advertising on the web can make a
big or small firm’s promotional message reach
out to potential customers all over the world
quickly and at a small cost .
ProsTime saving – the number one reason for
using electronic commerce. People now have
access to their money and what they need to
buy from home and work all from a desktop
computer.
Consumers have an access to a
wider
range of products – company now can use
internet sites as shop fronts, so consumers can
browse, buy from many different sellers and
making it easier to find exactly what they are
looking for.
Allows small businesses to mix with the big
business online – with a relatively small cost,
a new business can set its self up to conduct
transactions online.
Provide benefits to suppliers of goods and
services – company now can target a wider
variety of consumers; even take the product or
service international, allowing them a means
of supplying their goods to places that were
before unreachable.
Business is Open 24 x 7 x 364 7/8 – it works
while you play or sleep. They are open for
business every hour of the day, every day of
Thinking Outside the Globe – selling
something made by someone else shipped by
yet another and the money handled by yet
another is the heart of the advantages e
commerce brings to the business world. You
can even employ an international staff. Some
work you may need done can be more
effectively done by companies or even
individuals in other countries.
Cons-
Purchase to Delivery – when making a
purchase at a brick and mortar business, you
get the product when you pay for it. On the
web, there may be a time lag from purchase to
actually being able to consume. The consumer
will have to wait for delivery of physical
goods.
Inability to Feel the Physical – it is nearly
impossible to sell things like furniture and
tires online. Furniture is something people like
to sit on and know the feel. Tires need to be
installed once purchased. In both instances,
there is a need for real actions to fulfill the
reason for the purchase.
Return-on-investment is difficult to
calculate [8].
Trouble recruiting and retaining
employees – the company needs well-expert
and skilled staff to keep up and create the
ecommerce facilities of the company. Many
companies favour to outsource their
improvement and programming tasks to
decrease labour costs [9].
Consumers feel less confident with their
credit card numbers – most of the consumers
are still not confident in providing their credit
card numbers for making payments on the
website while shopping on the Internet.
There is no guarantee of product quality.
Not every company can take the benefit –
some of the small companies may not be able
to take the benefit of E commerce for example
the lack of expertise and lack of technology.
The legal environment in which E-commerce
is conducted is full of unclear and conflicting
laws. It should be noted that mostly these
disadvantages stem from the newness and
rapidly growth of the technology.
Larger purchases per transaction – For
example many sites offer a feature that when
you read the description
of a book, you also can see "what other people
who ordered this book also purchased." That
is, you can see the related books that people
are actually buying. Because of features like
these it is common for people to buy more
books that they might buy at a normal
bookstore.
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. It is these sorts of
advantages that create the buzz that surrounds
e commerce right now.
The back end: fulfillment, returns, customer
service - These processes make or break any
retail establishment.
They define, in a big way, your relationship
with your customer.
Affiliate Programs
4. How E commerce companies can boost
their business:
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.
A big part of today's e-commerce landscape is
the affiliate program (also known as associate
programs).
This area was pioneered by Amazon. Amazon
allows anyone to set up a specialty book store.
When people buy books from the specialty
store, the person who owns the specialty
bookstore gets a commission (up to 10 percent
of the book's list price) from Amazon. The
affiliate program gives Amazon great
exposure because it now has over 1,000,000
specialty bookstores all over the Web.
Therefore this model is now copied by
thousands of e-commerce sites. If you are
setting up an e-commerce site you will want to
consider an affiliate program as one way to get
exposure.
Another twist on affiliate programs is the CPC
Link (CPC=Cost Per Click), also known as
affiliate links or click-thru links. You put a
link on your site and the company pays you
when someone clicks on the link. A typical
payment ranges from 5 cents to 20 cents per
click.
You may want to consider setting up this sort
of affiliate program to gain exposure for your
e-commerce site.
Payment details, you can almost be sure that
you will lose them as a customer almost
instantly. (Your competitors are just a click
away, always.) If you are selling
internationally, use a service recognized
worldwide, e.g. PayPal or Worldpay. If you are
selling locally, use whatever service that is
well known, trustworthy and convenient in
that particular country.
Lastly, don’t forget to put up related Payment
Gateway Logo on your website! Survey shows
that more than 80% consumers feel safer
seeing all these logo prominently displayed
on your store. (Note: Use the logo only if the
store support the payment type) [11].
Simply the checkout processYou’ve heard it a million times: Keep it
simple. Why, then, do so many businesses
make it difficult to buy from them?
Ask the customers to create an account after
checkout. Many businesses don’t realize that
asking customers to register accounts can
actually increase cart abandonment. Most
people resent having to create another account
online: It is one more username and one more
password to keep track of and many perceive
that an account will sign them up for spammy
emails and newsletters.
According to study findings by Smashing
Magazine, every study participant showed
frustration when asked to register an account
during checkout and 30 percent of them gave
up and abandoned their cart altogether.
Instead of asking customers to register an
account with your site, include it as an option
only after they have completed the purchase
and checkout process [10].
Use a Reputable Payment Gateway Serviceif the online customers have a single doubt
about the security of the payment gateways
you are using to process their Credit Card or
Future Scope:
In this paper we looked at the definition of e
commerce its history. Then we looked at the
different types of e commerce. Finally we
provided with different ways to increase the
e commerce business. The future scope
definitely lies in making the E commerce
business safe and that can be partly achieved
if the customers also pay some attention and
try to avoid getting caught in the attacker’s
trap. The organizations should educate the
employees operating within the
organization. They should have an
understanding of the fraud and security risks
involved in an eCommerce transaction. They
should also have in-depth knowledge of the
organizations
e commerce risk management policies and
procedures.
The more informed an organization is, the
easier it will be to combat online threats and to
carry out risk mitigating measures.
There are a no. of ways in which the security
can be improved. And at the same time there a
no. of ways in which the security can be
compromised too. So we hope that we get a
secure e commerce world in the near future.
REFERENCES
[1] Definition of E commerce- wikipedia
[2] http://www.ecommerceland.com/history_ecommerce.html
[3]http://money.howstuffworks.com/ecommer
ce4.htm
[4] Business 2 Business – wikipedia.
[5] [6] Taking a look at different types of e
commerce – by Rania Nemat World Applied
Programming, Vol (1), No (2), June 2011.
100-104 ISSN: 2222-2510 ©2011 WAP
journal.
[7]http://www.digitsmith.com/ecommercedefinition.html
[8] [9] Disadvantages of E commerce –
Wikipedia.
[10]http://blog.crazyegg.com/2013/11/28/boos
t-e-commerce-traffic-sales/
[11]http://www.webshaper.com.my/learn/top10-ways-build-trust-online.php
I
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