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E-commerce
GROUP MEMBER 
MR. Kuldeep Zala(66) 
MR. Kedar Sonawane(51) 
MR. Vishal Mishra(24) 
MR. Tabresh Sayed(44) 
(F. Y. BMS) 
SEM-I 
2013-2014
INTRODUCTION
HISTORY AND SCOPE 
 Started as a US government project in 1969. 
 The purpose was to create a net that can 
function even if one center is destroyed in a 
military attack. 
- Hub and spokes can be useless if the hub is 
destroyed. 
- Network can continue to be functional even if some 
nodes are destroyed, as long as information can pass 
through other nodes. 
 Effective in 1971 with computers on both coasts 
of the US.
CLASSIFICATION OF E-COMMERCE 
BUSINESS TO BUSINESS (B2B) 
CONSUMER TO CONSUMER(C2C) 
BUSINESS TO CONSUMER (B2C)
Business To Business(B2B) 
Business to Business e-commerce means 
transactions between businesses, such as 
between a manufacturer and a wholesaler, or 
between a wholesaler and a retailer. 
Two Distinct Aspects Of B2B 
 Flexibility in pricing 
 Integration of business systems
Consumer To Consumer (C2C) 
 The C2C model involves transaction between 
consumers. Here, a consumer sells directly to 
another consumer. It includes following 
things, 
1. Auction house sites 
2. Persons to person auction sites
Business To Consumer 
The B2C model involves transactions between 
business organizations and consumers. It applies to 
any business organization that sells its products or 
services to consumers over the Internet. Business to 
Consumer includes following things, 
1. Online banking 
2. Online stock trading 
3. Online shopping
IMPACT OF ELECTRONIC COMMERCE 
 Marketing 
 Computer sciences 
 Finance and accounting 
 Economics 
 Production and operations management
BENIFITS OF E- COMMERCE 
 To Organizations 
 To Customers 
 To Society
LIMITATIONS OF E-COMMERCE 
 Technical Limitations 
 Non-technical Limitations
Security of E-Commerce 
Network Security Using Firewall
Payment in E-Commerce 
 Credit Card Payment 
 Cash 
 Personal Cheque 
 Money orders (Bank note) 
 Debit cards
Sequence of Transactions in Manual 
Credit Card Payment 
 Step 1: Customer presents credit card after 
purchase. Merchant swipes it on his special 
phone and enters amount 
 Step 2: Data from merchants terminal goes to 
acquirer via a private telephone line 
 Step 3: Acquirer checks with the issuing bank 
validity of card and credit available 
 Step 4: Acquirer authorizes sale if all OK and 
sends approval slip which is printed at 
merchants terminal.
Cont. 
 Step 5: Merchant takes customers signature 
on the slip-verifies it with the signature on 
card and delivers the goods. 
 Step 6: The acquirer pays the money to 
merchant and collects it from the appropriate 
issuing bank. The bank sends monthly 
statement to customer and collects 
outstanding amount.
Credit Card in E-commerce 
Main Problems 
 1. Main Problem is: if a merchant had only a 
web presence, a Customer needs to be 
reassured that the merchant is genuine. 
 2. Customers Signature cannot be physically 
verified. Customer needs electronic signature. 
 3. Secrecy of credit card number has to be 
ensured. 
 4. Dispute settlement mechanism must be 
worked out.
CONCLUSION
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E-commerce

  • 2. GROUP MEMBER MR. Kuldeep Zala(66) MR. Kedar Sonawane(51) MR. Vishal Mishra(24) MR. Tabresh Sayed(44) (F. Y. BMS) SEM-I 2013-2014
  • 4. HISTORY AND SCOPE Started as a US government project in 1969. The purpose was to create a net that can function even if one center is destroyed in a military attack. - Hub and spokes can be useless if the hub is destroyed. - Network can continue to be functional even if some nodes are destroyed, as long as information can pass through other nodes. Effective in 1971 with computers on both coasts of the US.
  • 5. CLASSIFICATION OF E-COMMERCE BUSINESS TO BUSINESS (B2B) CONSUMER TO CONSUMER(C2C) BUSINESS TO CONSUMER (B2C)
  • 6. Business To Business(B2B) Business to Business e-commerce means transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Two Distinct Aspects Of B2B Flexibility in pricing Integration of business systems
  • 7. Consumer To Consumer (C2C) The C2C model involves transaction between consumers. Here, a consumer sells directly to another consumer. It includes following things, 1. Auction house sites 2. Persons to person auction sites
  • 8. Business To Consumer The B2C model involves transactions between business organizations and consumers. It applies to any business organization that sells its products or services to consumers over the Internet. Business to Consumer includes following things, 1. Online banking 2. Online stock trading 3. Online shopping
  • 9. IMPACT OF ELECTRONIC COMMERCE Marketing Computer sciences Finance and accounting Economics Production and operations management
  • 10. BENIFITS OF E- COMMERCE To Organizations To Customers To Society
  • 11. LIMITATIONS OF E-COMMERCE Technical Limitations Non-technical Limitations
  • 12. Security of E-Commerce Network Security Using Firewall
  • 13. Payment in E-Commerce Credit Card Payment Cash Personal Cheque Money orders (Bank note) Debit cards
  • 14. Sequence of Transactions in Manual Credit Card Payment Step 1: Customer presents credit card after purchase. Merchant swipes it on his special phone and enters amount Step 2: Data from merchants terminal goes to acquirer via a private telephone line Step 3: Acquirer checks with the issuing bank validity of card and credit available Step 4: Acquirer authorizes sale if all OK and sends approval slip which is printed at merchants terminal.
  • 15. Cont. Step 5: Merchant takes customers signature on the slip-verifies it with the signature on card and delivers the goods. Step 6: The acquirer pays the money to merchant and collects it from the appropriate issuing bank. The bank sends monthly statement to customer and collects outstanding amount.
  • 16. Credit Card in E-commerce Main Problems 1. Main Problem is: if a merchant had only a web presence, a Customer needs to be reassured that the merchant is genuine. 2. Customers Signature cannot be physically verified. Customer needs electronic signature. 3. Secrecy of credit card number has to be ensured. 4. Dispute settlement mechanism must be worked out.