Page 36 of 36

Contents

3E-Commerce Overview:

3History:

4Traditional Commerce and E-Commerce:

5International E-Commerce:

7Economic Forces and E-Commerce:

9Internet Overview:

9Origin of Internet:

11World Wide Web (WWW) Overview:

12Origin or Evolution of WWW:

14WWW Operation

15Creating an Effective Web Presence:

16Understanding the Basics of Building an Online Marketing Strategy:

16Search Engine Optimization

16Content Marketing

17Social Media Marketing

17Email Marketing:

18Advertising on Web and Effectiveness of Advertising:

20Branding & Elements of branding:

21Types of Branding:

22Online Auctions and Web portals:

22Types of Auctions:

23Web Portal Strategies:

23E-CRM:

24Supply Chain Management (SCM):

24Elements of SCM:

26Environmental Issues of E-Commerce:

26Environmental Effects of E-Commerce

28Disintermediation and Reintermediation

29Web Servers Overview:

30Types of Web Servers:

32Web Browser Functions:

33E-Payment Overview

33Types of E-Payments

36ERP System:

Comprehensive E-Commerce Notes

Prepared by:

Muhammad Saddam UddinContact Info:0334-5422353

Email:

Saddam_u@hotmail.comUseful for:

B.COM, BBA, M.COM, MBA, and MSCSHORT NOTES FOR ELECTRONIC COMMERCE (100 Marks):1. E-Commerce overview, History, Traditional Commerce and Electronic Commerce, International Electronic Commerce, Economic Forces and Electronic Commerce, Electronic Commerce advantages and disadvantages):

E-Commerce Overview:

In its simplest form ecommerce is the buying and selling of products and services by businesses or consumers over the World Wide Web (WWW). People use the term "E-Commerce" or "Online Shopping" to describe the process of searching for and selecting products in online catalogues and then "checking out" using a credit card and encrypted payment processing. Internet sales are increasing rapidly as consumers take advantage of;

Lower prices offered by vendors operating with less margin than a bricks and mortar store.

Greater convenience of having a product delivered rather than the cost of time and transport and parking of going to a store.

Sourcing product more cheaply from overseas vendors.

Great variety and inventory offered by online stores.

Comparison engines that compare and recommend product.

Auction sites, where they did for goods.

History:

Ecommerce was introduced 40 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 1970s.Ecommerce Timeline

1960-1982

Paving the way for electric commerce was the development of theElectronic Data Interchange(EDI). EDI replaced traditional mailing and faxing of documents with a digital transfer of data from one computer to another.Trading partners could transfer orders, invoices and other business transactions using a data format that met the ANSI ASC X12, the predominant set of standards in North America.

Once an order is sent, it is then examined by a VAN (Value-Added Network) and finally directed to the recipients order processing system. EDI allowed the transfer of data seamlessly without any human intervention.

Michael Aldrich, an English inventor, innovator and entrepreneur is credited with developing the predecessor to online shopping. The idea came about during a stroll with his wife and Labrador when Aldrich lamented about their weekly supermarket shopping expedition. This conversation sparked an idea to hook a television to their supermarket to deliver the groceries. Immediately after the discussion Aldrich quickly planned and implemented his idea.

In 1979 Aldrich connected a television set to a transaction processing computer with a telephone line and created what he coined, teleshopping, meaning shopping at a distance. 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 of PCs and the World Wide Web, also known as, the Internet. In 1982, France launched the precursor to the Internet called,Minitel.The online service used a Videotex terminal machine that was accessed through telephone lines. The Minitel was free to telephone subscribers and connected millions of users to a computing network.

By 1999, over 9 million Minitel terminals had been distributed and were connecting approximately 25 million users in this interconnected network of machines. The Minitel system peaked in 1991 and slowly met its demise after the success of the Internet 3 years later. Eventually, in 2011, France Telecom announced itsshutdown of the Minitel service system. Sadly, it had not become what it had hoped to be, the Internet.

90s To Present

In 1990 Tim Berners Lee, along with his friend Robert Cailliau, published a proposal to build a Hypertext project called, WorldWideWeb. The inspiration for this project was modeled after the Dynatex SGML reader licensed by CERN.

That same year, Lee, using a NeXTcomputer created the first web server and wrote the first web browser. Shortly thereafter, he went on to debut the web on Aug. 6, 1991 as a publicly available service on the Internet. When Berners Lee decided he would take on the task of marrying hypertext to the Internet, in doing that, the process led to him developing URL, HTML and HTTP.

When the National Science Foundation lifted its restrictions on commercial use of the NET in 1991, the Internet and online shopping saw remarkable growth. In September 1995, the NSF began charging a fee for registering domain names. 120,000 registered domain names were present at that time and within 3 years that number grew to beyond 2 million. By this time, NSFs role in the Internet came to an end and a lot of the oversight shifted to the commercial sector.Traditional Commerce and E-Commerce:

Due to the increased popularity and availability of Internet access many traditional small business are considering E-Commerce as a valid and profitable sales channel. However, E-Commerce and traditional commerce are very different, and it's important to weight carefully the differences between E-Commerce and traditional commerce in order to decide if it would be a good fit for your business or just a costly mistake.

Direct InteractionTraditional commerce is often based around face to face interaction. The customer has a chance to ask questions and the sales staff can work with them to ensure a satisfactory transaction. Often this gives sales staff an opportunity for upselling, or encourage the client to buy a more expensive item or related items,increasing the shop profits. On the other hand, E-Commerce doesn't offer this benefit unless features such as related items or live chats are implemented.

Lower CostsE-Commerce is usually much cheaper than maintaining a physical store in an equally popular location. Compared with costs such as commercial space rent, opening an online store can be done at a fraction of the price for less than $50 per month. This can prove invaluable for small business owners who don't have the startup capital to rent prime retail space and staff it to be able to sell their goods. ReachWith an online shop you can do business with anybody living on a country you are able and willing to send mail to, unlike traditional commerce where you are restricted to people who actually come to your shop. This also opens the door to many other forms of marketing that can be done entirely online, which often results in a much larger volume of sales and even foot traffic to the store. An online store has no capability limits, and you can have as many clients as your stock can serve.

Returns RateIn a traditional store, the customer will be purchasing the product in person, which has some benefits for both him and the store. The customer will be able to touch and check the items, to make sure they are suitable, and even try them on, which reduces the number of returned items or complaints due to an item not being as advertised on a catalogue. or promotional leaflet. Expect a significantly higher rate of returns if you start trading online, as many will just order and try the items at home, and won't hesitate to return them as they can do it by post without having to talk with anybody in person.

Credit Card FraudThe remote nature of E-Commerce makes much more difficult to detect fraud, which means stores can lose money due to fraud. While traditional commerce is not totally secure, it's easier for a sales attendant to verify that the person buying something is actually the owner of the credit card, by asking for photographic ID. However, the fight against card fraud is well underway and banks and responsible E-Commerce owners work together to verify that all card use is legitimate.

Selling online means learning new ways ofdealing with customers, marketing your products and fulfilling your orders, but the benefits are great. You can keep your costs lower, reach a wider audience and do business 24/7, having time to focus on improving your products and services and your customer experience instead of being on the store floor waiting for clients. Some products sell better online than others:selling jewelry for cash onlineis much easier than trying to sell houses or cars. However, having an online store can increase the customers on your traditional commerce as well, as people are now able to find you online and see what products you are offering.International E-Commerce:

International ecommerce is rapidly gaining momentum. According to a recent Internet Retailer survey, 75% of e-retailers already sell to customers abroad; of the remaining quarter, 70% plan to start doing so within a year. With over 80% of all online consumers living abroad, and global audiences eagerly taking advantage of America's rich product supply and favorable exchange rates, international ecommerce is especially on the rise in the US.

While going global is promising, it also poses considerable challenges, requiring retailers to thoroughly understand the needs, tastes, rules and regulations of their different target markets worldwide, offer localized websites and customer service solutions, manage the logistics behind international shipping and fulfillment, mitigate the risks of credit card fraud, and handle international chargebacks. All these tasks can seem daunting.

The UK & the US are very strong markets from an online trading point of view: the US is secondin the world, and the UK third in the world in retail salesaccording to E-marketer. Thats a wonderful position to be in, but also means they are fairly saturated, with lots of competition.

One of the big opportunity areas for small/medium ecommerce businesses is therefore in international sales. While ASOS, Wiggle, Zappos, and some of the big online pureplays take selling overseas hugelyseriously, its still a relatively untapped market. For example its more common for continental European retailers to focus cross-border than for UK businesses to do so. And yet, the US & UKs recognised position as ecommerce leaders put independents in a good position to explore it.

At basic stages of maturity, the options for a small-to-medium business selling internationally are:

1. Prevent overseas shoppers from buying from you. (ie. avoid international altogether)

2. Simply turn on the ability for international users to purchase from you.

3. Localise currency, pricing, and catalogue.

4. Translate the site & tailor for particular high-opportunity countries. (still fairly reactive)

5. Proactively market to find & grow new customers internationally & serve other countries.

6. Open a localised site, and localise fulfilment.

7. Go full multi-channel, with both online and offline presence.

A big chunk of online traders sit at #2 there: If someone from another country reaches the checkout stage, they canprobablyenter their address successfully, and perhaps tax has been calculated properly, but in the main it is an accident if they make international sales rather than the result of careful planning & execution.

Yet its easy to change that and move up the maturity scaleifinternational retail is right for your business. This article therefore aims to help you step toward defining a loose plan to tackle international selling. It takes a look at the 3 largest benefits of doing so, plus the 3 largest negatives, before finishing with a 10 step 80/20 approach to testing the water & avoiding the big pitfalls.

As twocaveats:

Channels:there aremanyblog posts talking about international SEO, international CRM strategy, etc. I will try to avoid getting channel specific as I think those are topics that really deserve to be tackled in their own right.

Resourcing:I'll also steer clear of covering how to resource this (ie. people, agencies, etc). That varies hugely by business type so, again, would deserve covering in its own right.Economic Forces and E-Commerce:

Economic forces are factors such as inflation, interest rates, labor and government monetary policies that influence levels of production and demand for goods and services. These factors dictate the availability and affordability of production resources, as well as the abilities of consumers to afford your end products. E-commerce involves transacting business through the use of automated information technology applications. The outcomes of e-commerce activities are affected by economic forces, as was evidenced by the 2007-2009 global economic crisis. According to the Census Bureau of the U.S. Department of Commerce, e-commerce declined by 5.5 percent in the fourth quarter of 2008 compared to the same period in 2007. This clearly shows that economic factors affect e-commerce. Levels of Inflation:

Inflation is the sustained rise in the prices of products. Rising inflation affects the demand for e-commerce goods or services because it reduces the number of items consumers can afford. This affects your e-commerce business, particularly if you deal in nonessential or luxurious items. Consumers actually restrict their spending to essential items during periods of high inflation. Inflation also increases the costs of your inputs, such as electricity, Internet, online advertising and computer maintenance. The adverse effects of high costs of operations, coupled with falling demand for e-commerce products, reduce profits.

Rates of Interest:

Low interest rates encourage borrowing, while high interest rates discourage borrowing. Prevalence of low interest rates boosts e-commerce business because it increases the amount of money in circulation as a result of heightened lending and borrowing activities in the financial sector. Consumers can spend more on your e-commerce products when they have more money at their disposal. In contrast, high interest rates stifle money circulation and suppress demand for e-commerce products. They also increase the financing costs of your business, especially if you borrow loans with variable interest rates.

Trends of Employment:

Trends of employment are important indicators of economic progress. Low unemployment rates translate to growing demand for e-commerce products because more people earn income. High unemployment rates signal worsening economic conditions, as no new jobs are created and many people lose jobs. As a result, the demand for e-commerce products declines with increased rates of unemployment and vice versa. E-Commerce advantages:

Reduced costsby reducing labour, reduced paper work, reduced errors in keying in data, reduce post costs

Reduced time. Shorter lead times for payment and return on investment in advertising, faster delivery of product

Flexibility with efficiency. The ability to handle complex situations, product ranges and customer profiles without the situation becoming unmanageable.

Improve relationships with trading partners. Improved communication between trading partners leads to enhanced long-term relationships.

Lock in Customers. The closer you are to your customer and the more you work with them to change from normal business practices to best practice e-commerce the harder it is for a competitor to upset your customer relationship.

New Markets. The Internet has the potential to expand your business into wider geographical locations. E-Commerce disadvantages:

Technical Disadvantages

There can be lack of system security, reliability or standards owing to poor implementation of e-Commerce.

Software development industry is still evolving and keeps changing rapidly.

In many countries, network bandwidth might cause an issue as there is insufficient telecommunication bandwidth available.

Special types of web server or other software might be required by the vendor setting the e-commerce environment apart from network servers.

Sometimes, it becomes difficult to integrate E-Commerce software or website with the existing application or databases.

There could be software/hardware compatibility issue as some E-Commerce software may be incompatible with some operating system or any other component.

Non-Technical Disadvantages

Initial cost: The cost of creating / building E-Commerce application in-house may be very high. There could be delay in launching the E-Commerce application due to mistakes, lack of experience.

User resistance: User may not trust the site being unknown faceless seller. Such mistrust makes it difficult to make user switch from physical stores to online/virtual stores.

Security/ Privacy: Difficult to ensure security or privacy on online transactions.

Lack of touch or feel of products during online shopping.

E-Commerce applications are still evolving and changing rapidly.

Internet access is still not cheaper and is inconvenient to use for many potential customers like one living in remote villages.2. Internet and WWW (Internet and World Wide Web overview, Origins of the internet and WWW, Uses and Growth of internet, Advantages and Disadvantages of internet, Internet Protocols, Internet connection options, different types of Networks) Selling on the Web (Web Selling Revenue Models, Revenue models in transition, Revenue Strategy Issues, Channel Conflict and Cannibalization, Creating an Effective Web Presence, Identifying and achieving Web Presence Goals, Website Usability):Internet Overview:

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 namehttp://www.tutorialspoint.comto 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.

Origin of Internet:

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 ofAdvanced Research Project Agency Network (ARPANET).

ARPANETwas 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 calledHosts.

In 1972, theARPANETspread over the globe with 23 nodes located at different countries and thus became known asInternet.

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.

Advantages of Internet:

Internet covers almost every aspect of life, one can think of. Here, we will discuss some of the advantages of Internet:

Internet allows us to communicate with the people sitting at remote locations. There are various apps available on the wed that uses Internet as a medium for communication. One can find various social networking sites such as Facebook, Twitter, Yahoo, Google+, Flickr, Orkut etc. One can surf for any kind of information over the internet. Information regarding various topics such as Technology, Health & Science, Social Studies, Geographical Information, Information Technology, Products etc can be surfed with help of a search engine.

Apart from communication and source of information, internet also serves a medium for entertainment. Various modes for entertainment over internet are (Online Television, Online Games, Songs, Videos, and Social Networking Apps). Internet allows us to use many services like Internet Banking, Matrimonial Services, Online Shopping, Online Ticket Booking, Online Bill Payment, Data Sharing, E-mail. Internet provides concept ofelectronic commerce that allows the business deals to be conducted on electronic systems. Disadvantages of Internet:However, Internet has proved to be a powerful source of information in almost every field, yet there exists many disadvantages discussed below:

There are always chances to loose personal information such as name, address, credit card number. Therefore, one should be very careful while sharing such information. One should use credit cards only through authenticated sites.

Another disadvantage is theSpamming. Spamming corresponds to the unwanted e-mails in bulk. These e-mails serve no purpose and lead to obstruction of entire system.

Viruscan easily be spread to the computers connected to internet. Such virus attacks may cause your system to crash or your important data may get deleted.

Also a biggest threat on internet is pornography. There are many pornographic sites that can be found, letting your children to use internet which indirectly affects the children healthy mental life.

There are various websites that do not provide the authenticated information. This leads to misconception among many people.

World Wide Web (WWW) Overview:WWWstands forWorld 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 inventorTim Berners-Leehelped found, theWorld 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.

Origin or Evolution of WWW:World Wide Webwas created byTimothy Berners Leein 1989 atCERNin Geneva.World Wide Web came into existence as a proposal by him, to allow researchers to work together effectively and efficiently atCERN.Eventually it becameWorld Wide Web.

The following diagram briefly defines evolution of World Wide Web:

WWW Architecture:WWW architecture is divided into several layers as shown in the following diagram:

Identifiers and Character SetUniform Resource Identifier (URI)is used to uniquely identify resources on the web andUNICODEmakes it possible to build web pages that can be read and write in human languages.

Syntax

XML (Extensible Markup Language)helps to define common syntax in semantic web.

Data Interchange

Resource Description Framework (RDF)framework helps in defining core representation of data for web. RDF represents data about resource in graph form.

Taxonomies

RDF Schema (RDFS)allows more standardized description oftaxonomies and otherontologicalconstructs. Ontologies

Web Ontology Language (OWL)offers more constructs over RDFS. It comes in following three versions: OWL Lite for taxonomies and simple constraints.

OWL DL for full description logic support.

OWL for more syntactic freedom of RDF Rules

RIFandSWRLoffers rules beyond the constructs that are available fromRDFsandOWL.Simple Protocol andRDF Query Language (SPARQL)is SQL like language used for querying RDF data and OWL Ontologies.

Proof

All semantic and rules that are executed at layers below Proof and their result will be used to prove deductions.

Cryptography

Cryptographymeans such as digital signature for verification of the origin of sources is used.

User Interface and Applications

On the top of layerUser interface and Applicationslayer is built for user interaction.

WWW Operation

WWWworks on client- server approach. Following steps explains how the web works: User enters the URL (say,http://www.tutorialspoint.com) of the web page in the address bar of web browser.

Then browser requests the Domain Name Server for the IP address corresponding to www.tutorialspoint.com.

After receiving IP address, browser sends the request for web page to the web server using HTTP protocol which specifies the way the browser and web server communicates.

Then web server receives request using HTTP protocol and checks its search for the requested web page. If found it returns it back to the web browser and close the HTTP connection.

Now the web browser receives the web page, It interprets it and display the contents of web page in web browsers window.

Future

There had been a rapid development in field of web. It has its impact in almost every area such as education, research, technology, commerce, marketing etc. So the future of web is almost unpredictable.

Apart from huge development in field of WWW, there are also some technical issues that W3 consortium has to cope up with.

User Interface

Work on higher quality presentation of 3-D information is under development. The W3 Consortium is also looking forward to enhance the web to full fill requirements of global communities which would include all regional languages and writing systems.

Technology

Work on privacy and security is under way. This would include hiding information, accounting, access control, and integrity and risk management.

Architecture

There has been huge growth in field of web which may lead to overload the internet and degrade its performance. Hence better protocol are required to be developed.Creating an Effective Web Presence:Without a Web presence, your business or organization might as well not exist. A website is the modern equivalent of a business card. But becoming a recognizable name on the Internet takes more than just finding a place to list your contact info. Building a Web presence takes time, effort and persistence. Though there are some Web celebrities who have made their name without spending a dime, be prepared to invest in a few services to get the ball rolling.Step1

Purchase a unique domain name and sign up for a Web host. Although free Web hosts and portfolio sites are available, having your own domain name lends a bit of credibility to your business or online persona. Some people opt to make their favorite social network page their primary online profile, but social networks fall in and out of popularity every few years. Having a domain name ensures that your place on the Web is secure no matter what online trends come and go.

Step2

Design a stylish, user-friendly website. If you are not experienced in Web design, it's in your best interests to hire a professional. The Internet community takes note of how easy your site is to use, as well as how current your design trends are. Take a look at how some of your favorite online destinations or personal sites are set up to get ideas for your own design.

Step3

Create profile pages on popular social networks, such as Facebook, Twitter and Google+. Though these should not be your main online profile, using social media can greatly increase the amount of attention you receive. Link to your social profiles through your main website. Likewise, make sure that your website is featured prominently in your social profiles.

Step4

Update your social networks and/or blog regularly. Not only will your readers quickly lose interest if you don't post something once in a while, but search engines won't take notice of you until you start producing some material. That said, don't update too often, either. Readers are sensitive to being spammed with information, and they will go elsewhere if your posts are simply filler without much to say. Find a good balance between maintaining a strong presence and irritating your readers.Step5

Purchase advertising on sites relevant to your readers or followers. Set up link exchanges with similar or affiliated sites. Maximize your presence by getting your name out there. Be wary of deceitful means of marketing, such as "sock-puppeting" (creating fake user profiles to post positive comments about your own site). Such methods can create serious backlash against you and/or your business.3. Marketing on the web (Overview of Web Marketing Strategies, Market Segmentation E-Mail Marketing, Advertising on the web, Effectiveness of online Advertising;Understanding the Basics of Building an Online Marketing Strategy:Building a successful online marketing strategy is just like building anything it starts with a solid foundation. That foundation comes from understanding three basics of online marketing:

Search Engine Optimization

Content Marketing

Social Media Marketing

But knowing what each facet does for your website isnt enough. As many people discovered after the recent Google updates, applying even well-established marketing techniques incorrectly way can hurt your ranking. To maximize their benefits, you also need to understand their shortcomings.

Search Engine Optimization

When people think of online marketing and the search engines, SEO is usually the first thing that comes to mind. SEO is used to create a site that the search engines will rank as one of the most relevant pages for a given term. The fact is, 95 percent of searchers click on a page that appears on the first page results forGoogle, Yahoo! or Bing. You can see that search rank is a big deal!

Building a solid SEO strategy consists primarily of selecting relevant keywords and providing valuable content related to those keywords. In the past, SEO was driven by factors like keyword placement, keywords density, and even how many times a keyword was used to link to that page.

But the search engines quickly discovered that keywords could be easily manipulated. A page that had nothing to do with a keyword could be ranked in top three, just by optimizing the page. Today, this means that sites who rely solely on keywords are often ignored by the search engines.

Instead, SEO should include:

Relevant Keywords

Valuable Content that is Shared

A Website that Loads Quickly

Both Images & Content

Backlinks from Respected Websites

Content Marketing

Content marketing is not a new concept. In fact, John Deere started the trend in 1895 when they released The Furrow, an agricultural magazine. Other companies like Jell-O and Michelin followed suit with recipe books and automotive tips. Content marketing is important because it helps build your brand and inspire confidence in your company. In fact,six out of ten consumerssay that after reading a custom publication, they feel better about the company.

Online content marketing has expanded the field to include blogs, training videos, podcasts, and even video games. But like every other online strategy, content marketing has its downsides. Low quality content is the most common mistake and can affect your rankings and damage your brand. For example, content riddled with grammar and spelling errors makes you look careless and unprofessional. Providing statements without verifying the facts can make you look foolish. Remember that the content you put on your site might be the first impression a prospective client gets of your company.

Another mistake many businesses make is to pull away from content marketing all together. This likely results from a trend against guest blogging prior to the recent Google updates. Aggressive marketers were creating guest blog posts, and then submit them to anyone who would publish them in return for a backlink to their site. These backlinks were thought to be the perfect marriage of content marketing and good SEO.

Google, however, thought differently. They saw poor quality content of no value used for nothing more than backlinks. So Google took action against these aggressive marketers, and online marketers became concerned. Many dropped guest blogging and content marketing entirely, worried that their ranks would fall.

But Google never said guest blogging would result in poor rankings. They said marketers should provide valuable content and host it on reputable sites. Which should have been the plan for most marketers to being with.

Social Media Marketing

For some, social media is nothing more than a way to stay in touch with old friends. But for businesses, social media is a way to tie SEO and content marketing together. Search engines take into consideration thenumber of sharesa page receives when it ranks that particular piece of content.

Social media is also quickly becoming the primary way content is shared. Sites like Twitter, Google+, Stumble Upon, and Facebook all allow consumers to share valuable content with others in their network. Research shows people are more likely to trust content shared from people they know, so a share is akin to a 4 star rating!

A common mistake in social media marketing is thinking a large number of followers is all you need. In fact, many businesses have sprouted up offering to sell you 100 or 1000 real friends or fans. Keep in mind that friends and fans are not enough you need to build engagement. Friends that are purchased are often not your target demographic or are fake accounts. Neither will help you accomplish your goals.

In order to make the most of a social media marketing strategy, you need to interact with your fans and create a true community. Show that you are accessible by allowing people to ask questions, voice concerns, and even complain. Then address these issues in a professional manner. Provide them with content that interesting, not just promotional. Remember, social media is first of all social!

Email Marketing:Email marketing has become a vital tool for small businesses that want to send regular marketing messages. The initial attractions are obvious - it's fast and cheap. But that's not all - email marketing offers sophisticated opportunities to target messages to the right people at the right time and bring in serious business.

Response rates for bulk emails are higher than for direct mailings, thanks to the immediacy of the medium. Results can be measured and used to make subsequent email marketing more tightly focused.

Direct marketing via email is an ideal communication method for any small firm that relies on itswebsitefor much of its business. Email messages can highlight special offers and new products and then prompt recipients to click through to the website.

Email marketing done badly does present some pitfalls, however. Indiscriminate emailing will be seen as spam. Responsibility and relevance are the watchwords. You must have permissionto email therecipient. And if you want them to respond positively, you must send messages that aregenuinely of valueto them.Advertising on Web and Effectiveness of Advertising:

Following are the 8 reasons which shows the effectiveness of online advertising for businesses;1. Digital Advertising Drives Sales & ROI

Nielsencompleted more than 800 studies over the past seven years, collaborating with more than 300 CPG brands and 80 companies to measure the correlation between online advertising and offline consumer purchases.

Nielsen concluded that brands can experience a return of almost three dollars in incremental sales for every dollar spent in online advertising that has been precisely delivered using purchase-based information.

2. Digital Advertising Enhances the Effectiveness of Non-Digital Media Channels

Aneconometrics study conducted by Brand Science and Microsoft shows that online advertising not only delivers excellent ROI efficiency itself, but it also makes other media spend work harder.

When the researchers compared the difference in ROI performance between studies that have an online element and those that do not, the results were striking adding online to the media mix has a positive impact on the campaign ROI for all media, from a delta of +4% for radio to +51% for outdoor and a whopping +70% for television.

3. Digital Advertising Is Effective Across The Entire Customer Journey

Automakers are sophisticated users of digital media, soMcKinseyanalyzed 24 customer touch-points for more than 9,000 new car buyers to better understand which points of engagement drive customers premium perceptions and purchase decisions.

Not only did theyfind that digital is key to driving premium perception (second only to live experiences), they discovered that digital channels dominate the path-to-purchase(in this case, McKinseys automotive consumer decision journey [CDJ]framework).

With traditional media, brands were constrained in their ability to influence prospects across the entire journey and to do so in a granular, discrete manner. Not so with digital media.

4. Digital Advertising Drives Word-Of-Mouth at Scale

According toNielsen, 92% of consumers believe recommendations from friends and family (word of mouth) over all forms of advertising, and there is little doubt that digital advertising turbo-charges this effective persuasion channel.

ShareThis has a unique view of the word of mouth phenomenon; its ubiquitous sharing tools allow it to touch the lives of 95% of U.S. internet users across more than 2 million publisher sites and 120+ social media channels.

In its quantitative study, Return on a Share, Quantifying the Monetary Value of Social Sharing, it found:

Recommendations have more impact on a consumers purchase decision than both brand and price57% of decisions are based on this.

Online shares are almost as valuable as in-person recommendationsa consumer is 9.5% more likely to buy a product with an excellent shared recommendation compared with 10.6% more likely via an excellent in-person recommendation. In contrast, a negative recommendation can reduce purchase intent by 11% for an online share and 11.2% for an in-person one.

The specific value of a share can be determined by measuring how much more a consumer will pay for a product if they have had an excellent online recommendation (via sharing). Share this calculated a delta of +$3,708 for a family size car, +$24.91 for tablets, and +$0.92 for household goods, for example.

5. Digital Creative Drives Interaction & Lifts Brands

It is well known that the quality of ad creative is the most important determinant of ad effectiveness. A seminalcomScore ARS studyshowed that creative quality drives more than half of the sales changes for brands analyzed, four times higher than the impact of the specific media plan.

Digital creative adds the dimension of interaction to sight, sound, and motionand greater interaction has been shown to drive brand effectiveness.

For example,IAB, comScore, and Vibrant Mediapartnered to study the effectiveness of mobile advertising for Oreo, Hellmans, and Microsoft Windows Phone. Standard banners were compared to the IAB Rising Stars, which include interaction.

Results across the three ad campaigns show that consumers are twice as likely to interact with a Mobile Rising Star ad as a standard mobile ad and have higher brand lift after interacting with a Mobile Rising Star ad (83% more likely to have an improved impression of the brand, 74% to recall the brand, 22% to recall the message, and 12% to recommend the brand).

6. Digital Advertising Is More Efficient Than Traditional Media

While it is dangerous to generalize about media costs given the wide array of choices within each medium, digital advertising can generally be seen to be among the most efficient means of reaching an audience.

Further, on a cost-per-conversion basis, the IAB estimates digital to be five to six times more efficient than direct mail.

7. Digital Advertising Is Essential To Reaching an Audience:

In 2013, time spent with digital media among U.S. adults surpassed time spent with TV, and this gap will likely continue to widen. U.S. adults are estimated to spend 4 hours, 28 minutes per day in front of their TV. Combining online and mobile devices, however, U.S. adults are expected to spend 5 hours, 46 minutes with digital media daily this year, increasing digitals lead over television to well over one hour per day.

8. Digital Advertising Is Even More Effective Than We Know:

It is highly likely that the tools used to measure return on investment for media today undervalue digital media.A consortium consisting mainly of leading CPG companies undertook a study together with Nielsen to better understand media attribution.

Consortium members, whichinclude Procter & Gamble,Unilever, Nestl, Kraft Foods, Mondelez, Kimberly-Clark, and Kellogg, found marketing-mix models undervalued digital ads.

For example, the ROI from Facebook ads were underestimated by as much as 48% and Google search ads by as much as 39%.

4. Creating and Maintaining Brands on the web. Elements of Branding, Branding types, Brand Leveraging Strategies) Online Auctions and Web portals (Auction overview, Its Origin, Types of Auctions, web portals and early web communities)Branding & Elements of branding:

Brandingis one of the most important aspects of any business, large or small, retail or B2B. An effective brand strategy gives you a major edge in increasingly competitive markets. But what exactly does "branding" mean? How does it affect a small business like yours?

Simply put, your brand is your promise to your customer. It tells them what they can expect from your products and services, and it differentiates your offering from your competitors'. Your brand is derived from who you are, who you want to be and who people perceive you to be.

The foundation of your brand is your logo. Your website, packaging and promotional materials--all of which should integrate your logo--communicate your brand.

Your designer does not define your brand identity. Your true brand identity is the view your customers have of your company. While your website and your logo are a large part of this, your customers will come from other avenues as well. When working on your branding, consider the following elements of your brand and identity.

1) Business Cards- This seems like an obvious place to start, but some clients and customers will first meet your employees inside or outside the office. Your business cards must not only include your logo and colors, but reflect the quality of your product and your business. Flimsy paper cards, while effective at distributing information, will reflect poorly on your brand.

2)Emails- You should create and use a uniform email signature for all of the employees. This creates immediate credibility for every employee who may have contact with a client with whom they have not previously interacted, and it helps your emails stand out in inboxes.

3)Workplace- Regardless of your industry, you will probably have clients and customers in your workspace. Your location and your logo on the wall are not the only thing that have an impact on clients. The sounds, smells, and cleanliness of your workplace can also affect their view of your company.

4)Customer Service- Everyone knows the importance of great customer service. If a company has bad customer service, it can often result in bad reviews and negative referrals. But sometimes its small components of your customer service that people remember most.

For instance, Gates, a popular BBQ restaurant here in Kansas City, has their employees ask, Hi, may I help you? to every one of their customers. While this seems standard, their cashiers are so consistent about doing this that it has become a part of their brand. Now their logo proudly features the phrase Hi, may I help you? Their business became so well known for something so simple that it became a major part of their brand.

5)Forms- A lot of businesses use forms to gather information on their clients and customers. While it may be easy to simply throw something together in order to gather the information needed, it is worth it to spend some time designing the forms so they fit with your logo and branding. This goes for Web forms, too. Using tools like WuFoo can help create beautiful and effective forms that you can send via links.Branding is something about which you should always be aware. These are just a few examples of what goes into branding. Take some time to think about how your customers first interact with your company and whether or not you are doing a good enough job branding it. You may be surprised by the results.Types of Branding:

Product

Products enjoy some of the most common types of branding. Walking through supermarket or retail store aisles is an easy way to understand product branding. Certain labels will jump off the shelves because they have achieved their marketing goals. Successful product branding is what nudges a consumer to choose one brand over another. The brand has established a reputation as the best or most popular in its class. Think of soft drinks, athletic shoes, computers or jeans and see what brand names pop into your head first. These are prime examples of product branding.

Personal

Personal branding is a popular marketing tool among athletes, musicians, politicians and other celebrities. A politician will attempt to brand himself into the type of person the voters want to put in office. A celebrity often becomes self-branded based on his own personality, while others are molded by public relations firms and agents. In addition to a personal brand, a celebrity might become associated with products bearing his name.

Corporate

Corporate branding is essential for any business that wants to develop a reputation in the marketplace. Everything the company does has an effect on its image. A corporation markets its product or service, its corporate culture, its employees and its contributions to the community. A corporation's branding can become tarnished overnight because of an industrial disaster or a poor decision by management. If the damage is severe, a corporation might start over with an entirely new strategy for branding a completely new image.

Geographic

Geographic or regional branding conjures images of certain products or services when the name is mentioned. While the Southwest region of the U.S. might be known for spicy foods, the Midwest is known for steaks. The tourism industry uses branding to lure travelers to the area. Southern states boast their sunshine and beaches, while mountainous areas become known for winter sports such as skiing and snowboarding.

Cultural

Cultural branding develops a reputation about the environment and people of a particular location or nationality. New Englanders are thought to be hard-working, and perhaps too serious, while New Yorkers are viewed as people always on the go and moving at a rapid-fire pace. Cultural branding is another tool in tourism such as inviting travelers to experience the Amish country.

Online Auctions and Web portals:Online auctions provide a business opportunity that is perfect for the Web. An auction site can charge both buyers and sellers to participate, and it can sell advertising on its page. Web auctions can provide a general auction site that has sections devoted to specific interests. Origin of Auctions:

Auctions became common activities in 17th-Century England. The 18th Century saw the birth of two British auction houses Sothebys in 1774 and Christies in 1766. Colonial auctions were used to sell farm equipment, animals, tobacco, etc. In an auction, a seller offers an item up for sale, but does not establish a price. Potential buyers are given information about the item or some opportunity to examine the item; they can then offer bids.

Types of Auctions:

English Auctions:

Bidders publicly announce their successive higher bids until no higher bid is forthcoming in the English auction. The auctioneer pronounces the item sold to the highest bidder at that bidders price. An English auction is an open auction because the bids are publicly announced. An English auction has a minimum bid or reserve price. English auctions that offer multiple units of an item for sale and that allow bidders to specify the quantity they want to buy are called Yankee auctions.

Dutch Auctions:

The Dutch auction is a form of open auction in which bidding starts at a high price and drops until a bidder accepts the price. Dutch auctions are also called descending-price auctions. Dutch auctions are particularly good for moving large numbers of commodity items quickly.

Web Auctions:

Web auctions are one of the fastest-growing segments of online business today. Business analysts predict that Web auctions will account for 40% of all electronic commerce by 2004. Three broad categories of auction Web sites are emerging: general consumer auctions, specialty consumer auctions, and business-to-business auctions.

General Consumer Auctions:

One of the most successful consumer auction Web sites is eBay. The eBay home page includes links to categories of items. Sellers pay eBay a listing fee and a sliding percentage of the final selling price. Buyers pay nothing to eBay. The most common format used on eBay is a computerized version of the English auction. Another auction type offered by eBay is an increasing-price format for multiple item auctions that eBay calls a Dutch auction. In either type of eBay auction, bidders must constantly monitor the bidding activity. Times Mirror started Auction Universe in 1997 and sold it in 1998 to the Classified Ventures. It then closed in August 2000. Portal sites, such as Yahoo! and Excite, have created auctions. Amazon.com has also recently expanded its business to include auctions. Amazons Auction Guarantee agreed to reimburse any buyer not satisfied with listed merchandise that cost $250 or less. A third party escrow service holds the buyers payment until he or she receives and is satisfied with the purchased item.Web Portal Strategies:

By the late 1990s, virtual communities were selling advertising to generate revenue. Search engine, entertainment, and Web directory sites were also selling advertising to generate revenue. Beginning in 1998, a wave of purchases and mergers occurred among these sites. The new sites that emerged still used an advertising-only revenue generation model and included all the features offered by virtual communities, search engines sites, Web directories, and information entertainment sites.Industry observers predicting success for Web portals may be correct. The companies that run Web portals certainly believe in the power of portals. Many large organizations have built internal Web portals to provide information to their employees. This creates an online community and saves significant amounts of money that would normally be spent on printing and distributing memos. Early Web Communities:

One of the first Web communities was the WELL community. Member of the WELL pay a monthly fee to participate in its forums and conferences. In 1995, Beverly Hills Internet opened a virtual community site. Virtual communities for consumers can continue as money-making propositions, or at least cover their expenses if they offer something sufficiently valuable to justify a charge for membership. Most virtual communities have been unable to support themselves. Most virtual communities have closed or been sold to companies like Yahoo!5. E-Commerce Application regarding business management (E-CRM overview, CRM and E-Commerce, CRM Strategies, SCM overview, Element of SCM, SCM strategies / Models:E-CRM:

Electronic customer relationship management (e-CRM)involves the integration of Web channels into the overall enterprise CRM strategy with the goal of driving consistency within all channels relative to sales, customer service and support (CSS) and marketing initiatives. It can support a seamless customer experience and maximize customer satisfaction, customer loyalty and revenue.

Scope of Social CRM:

Monitoring, analysing and responding to conversations through social listening tools Find the best ways to get involved, influence sales and generate leads by understanding social platforms Develop customer relationship tools/self help/service and support Using CRM based conversations to enhance online offers Supporting collaboration within the organisation through eBusiness processesEnhance customer experience and add value to the businessBenefits of e CRM

Reducing costs in customer targeting (customising emails on large scale therefore reducing costs for direct mail)

Increasing the meaning of information

Better and relevant understanding of customers and relationship dynamics

Encouraging customer relationship/customer development and retention through loyalty programmesSupply Chain Management (SCM):

Supply chain management integrates the management of supply and demand. According to the Council of Supply Chain Management Professionals, it encompasses the planning and management of all activities involved in sourcing and procurement, conversion and logistics. Supply chain management also covers coordination and collaboration with channel partners, such as customers, suppliers, distributors and service providers.Elements of SCM:

Demand Management

Demand management is an essential element in supply chain management, focusing companies and their partners on meeting the needs of customers, rather than the production process. The lead company in the supply chain makes partners aware of customers needs, encouraging them to maximize component or supply quality and add value to the finished product. By raising awareness of customers needs and increasing collaboration, companies can improve the competitiveness of the whole supply chain and increase business opportunities for all members.

Communication

Effective communication helps the entire supply chain improve the efficiency and productivity of its operations by enabling all members to share the same demand and operational information. Communication keeps all members informed of developments that affect their contribution to the supply chain, enabling them to quickly adjust their operations in line with changing demand conditions. Effective communication also enables members to respond rapidly to new business opportunities, helping to get new products to market quickly or increasing supply levels following a successful marketing campaign.

Integration

Integrating supply chain processes helps each member reduce its inventory costs a key to successful chain management, according to a case study on the retailer Wal-Mart by the University of San Francisco. Suppliers share up-to-date information on demand to route their products to Wal-Marts warehouses for onward shipment to stores with minimum time in inventory. This reduces Wal-Marts costs significantly, enabling them to offer customers highly competitive pricing. To achieve this level of integration, companies develop single information networks that enable all members to access and share supply and demand data securely. The networks are based on open standards, such as Internet Protocol, so all members can communicate, even if they have different internal networks.

Collaboration

Collaboration in the supply chain strengthens relationships between members, improving teamwork and helping all members increase their business. Lead companies run business development and training programs to improve supply chain partners market and product knowledge. They also undertake joint new product development programs with partners contributing specialist knowledge of components and materials.6. E-Business by Daniel Amore Environmental Issues of E-Commerce (Legal Issues, Cyber Crimes and related issues, Ethical Issues, Web Privacy and obligation. Taxation Issues) Technological Issues of E-Commerce (Web Servers overview, Importance and use of web servers, Client/ Server Architectures, Different type of server computers, Server Computer Performance and Evaluation):Environmental Issues of E-Commerce:

The environmental effects of e-commerce may be described in terms of first-, second-, and third-order effects. Data for these effects are scarce, partly because research on environmental effects of e-commerce and e-business is still in its infancy, although it is evolving very rapidly. Until now, positive environmental consequences of ecommerce have generally been coincidental. Two crucial questions that must be addressed are (1) How do we improve our understanding and management of the environmental effects of e-commerce? and (2) Which approaches are best suited to the development of sustainable e-solutions? Three approaches to developing sustainable e-commerce solutions are discussed: the extension of environmental performance measurement and management to e-commerce activities, the use of new cooperative forms of innovation management, and the provision of customer choice. Finally, an outlook on future research demands is presented. The technology itself (information and communication technologies, Internet) does not determine sustainability, but rather its design, use, and regulation does

Nineteen ninety-three is regarded as the year when the Internet economy was born with the breakthrough of the World Wide Web. Since then, the Internet has developed into a service integrated global network with a diversity of multimedia uses (Picot et al. 2000). The initial euphoria over the new economy has in the meantime given way to more realistic market valuations after the failure of many Internet start-ups and the still low proportion of e-commerce in the overall trade turnover. E-business will not be the be-all and end-all in the future, but e-commerce will certainly gain in importance. In 2001, we already had over 300 million Internet users worldwide. According to forecasts of the European Commission, there will be more than 500 million users by 2003 and a rapid increase in ecommerce turnover, rising from US$500 billion worldwide in 2001 to more than US$3 trillion in 2004 (eMarketer 2001). More than three quarters of all on-line sales and purchases for the years 20002003 are in the business-to-business (B2B) sector.At present, a second wave of the Internet economy is approaching. Until now, Internet use has almost exclusively relied on a global network of stationary computers and terminal devices. With new standards in the field of mobile telecommunication systems (for example, the Universal Mobile Telecommunications System) and Internet-compatible mobile devices (mobile phones, personal digital assistants), the number of users worldwide with mobile Internet access is projected to rise from 16 million in 2001 to almost 500 million in 2005 (NFO 2002, 27). Mobile e-commerce (known as m-commerce) will rapidly gain in importance. In addition, falling chip prices, novel access channels (e.g., Internet access via power lines), and mobile application technologies (e.g., smart tags4) are expected to link everyday products such as refrigerators, cars, and clothing to the Internet and to relate them to Web-based services such as remote control, metering, measurement, diagnostics, and dynamic software updates to devices, appliances, and systems. The Internet revolution continues.

Environmental Effects of E-Commerce

Three main categories of environmental effects of e-commerce can be distinguished (Fichter 2001; Berkhout and Hertin 2001), as presented in figure 1:

First-order effects. E-commerce presupposes the availability of an ICT infrastructure (PCs, mobile phones, servers, routers, etc.). The production and use of the ICT infrastructure cause material flows, use hazardous substances, and lead to energy consumption and electronic waste.

Second-order effects. E-commerce is transforming economic processes and markets. E-markets, virtual business networks, and the digitalization of products and services entail environmental consequences, for example, for resource productivity, transportation, and land use. These effects may be either beneficial or damaging to the environment.

Third-order effects. E-commerce causes structural change of the economy and affects lifestyles and consumption patterns, which, in turn, indirectly affect the environment. If the rate of efficiency improvements (e.g., the miniaturization of devices) is lower than the growth rate of consumption (e.g., more devices used), we have the so-called rebound effect.

Ethical and Legal Issues:The vastness of Internet advertising offers a solid platform for Electronic Commerce (or e-commerce) to explode.E-Commercehas the ability to provide secure shopping transactions coupled with instant verification and validation of credit card transactions. E-Commerce is not about the technology itself, it is about doing business leveraging the technology.A technological innovation is followed by frequent incorporation of ethical standards into law. New forms of E-Commerce that enables new business practices have many advantages but also bring numerous risks. Lets discuss about the ethical and legal issues related to e-business. Ethical Issues

In general, many ethical and global issues of Information Technology apply to e-business. So, what are the issues particularly related to e-commerce? Lets list some of the ethical issues spawned with the growing field of e-commerce Web tracking

E-businesses draw information on how visitors use a site through log files. Analysis of log file means turning log data into application service or installing software that can pluck relevant information from files in-house. Companies track individuals movement through tracking software and cookie analysis. Programs such as cookies raise a batch of privacy concerns. The tracking history is stored on your PCs hard disk, and any time you revisit a website, the computer knows it. Many smart end users install programs such as Cookie cutters, Spam Butcher, etc which can provide users some control over the cookies.

The battle between computer end users and web trackers is always going on with a range of application programs. For example, software such as Privacy Guardian, My Privacy, etc can protect users online privacy by erasing browsers cache, surfing history and cookies. To detect and remove spyware specially designed programs like Ad-Aware are present. A data miner application, SahAgent collects and combines Internet browsing history of users and sends it to servers. The battle goes on!

Privacy

Most Electronic Payment Systems knows the identity of the buyer. So it is necessary to protect the identity of a buyer who uses Electronic Payment System.

A privacy issue related to the employees of company is tracking. Monitoring systems are installed in many companies to monitor e-mail and other web activities in order to identify employees who extensively use business hours for non-business activities. The e-commerce activities performed by a buyer can be tracked by organizations. For example, reserving railway tickets for their personal journey purpose can be tracked. Many employees dont want to be under the monitoring system even while at work.

As far as brokers and some of the company employees are concerned, E-Commerce puts them in danger zone and results in elimination from their jobs. The manner in which employees are treated may raise ethical issues, such as how to handle displacement and whether to offer retraining programs.

Disintermediation and Reintermediation

Intermediation is one of the most important and interesting e-commerce issue related to loss of jobs. The services provided by intermediaries are

(i) Matching and providing information.

(ii) Value added services such as consulting.

The first type of service (matching and providing information) can be fully automated, and this service is likely to be in e-marketplaces and portals that provide free services. The value added service requires expertise and this can only be partially automated. The phenomenon by which Intermediaries, who provide mainly matching and providing information services are eliminated is called Disintermediation.

The brokers who provide value added services or who manage electronic intermediation (also known as info mediation), are not only surviving but may actually prosper, this phenomenon is called Reintermediation.

The traditional sales channel will be negatively affected by disintermediation. The services required to support or complement e-commerce are provided by the web as new opportunities for reintermediation. The factors that should be considered here are the enormous number of participants, extensive information processing, delicate negotiations, etc. They need a computer mediator to be more predictable.

Legal Issues

Where are the headlines about consumers defrauding merchants? What about fraud e-commerce websites? Internet fraud and its sophistication have grown even faster than the Internet itself. There is a chance of a crime over the internet when buyers and sellers do not know each other and cannot even see each other. During the first few years of e-commerce, the public witnessed many frauds committed over the internet. Lets discuss the legal issues specific to e-commerce.

Fraud on the Internet

E-commerce fraud popped out with the rapid increase in popularity of websites. It is a hot issue for both cyber and click-and-mortar merchants. The swindlers are active mainly in the area of stocks. The small investors are lured by the promise of false profits by the stock promoters. Auctions are also conductive to fraud, by both sellers and buyers. The availability of e-mails and pop up ads has paved the way for financial criminals to have access to many people. Other areas of potential fraud include phantom business opportunities and bogus investments.

Copyright

The copyright laws protect Intellectual property in its various forms, and cannot be used freely. It is very difficult to protect Intellectual property in E-Commerce. For example, if you buy software you have the right to use it and not the right to distribute it. The distribution rights are with the copyright holder. Also, copying contents from the website also violates copy right laws.

Domain Names

The competition over domain names is another legal issue. Internet addresses are known as domain names and they appear in levels. A top level name isqburst.comormicrosoft.com. A second level name will beqburst.com/blog.Top level domain names are assigned byacentral non-profit organization which also checks for conflicts or possible infringement of trademarks. Problems arise when several companies having similar names competing over the same domain name. The problem of domain names was alleviated somewhat in 2001 after several upper level names were added to com.

Another issue to look out for is Cybersquatting, which refers to the practice of registering domain names with the desire of selling it at higher prices.Security features such as authentication, non-repudiation and escrow services can protect the sellers in e-commerce.

One needs to be careful while doing e-commerce activities. The need to educate the public about the ethical and legal issues related to e-commerce is highly important from a buyer as well as seller perspective.

Web Servers Overview:

A Webserveris a program that usesHTTP(Hypertext Transfer Protocol) to serve the files that form Web pages to users, in response to their requests, which are forwarded by their computers' HTTP clients. Dedicated computers and appliances may be referred to as Web servers as well.

The process is an example of theclient/servermodel. All computers that host Web sites must have Web server programs. Leading Web servers includeApache(the most widely-installed Web server), Microsoft's Internet Information Server (IIS) and nginx (pronounced engine X) from NGNIX. Other Web servers include Novell's NetWare server, Google Web Server (GWS) and IBM's family of Domino servers.

Web servers often come as part of a larger package of Internet- and intranet-related programs for serving email, downloading requests for File Transfer Protocol (FTP) files, and building and publishing Web pages. Considerations in choosing a Web server include how well it works with the operating system and other servers, its ability to handle server-side programming, security characteristics, and the particular publishing, search engine and site building tools that come with it. Importance of Web Servers:This means that the high availability of your website is very important. If users constantly find it difficult to access the content in your site, they are not likely to come back. If your website applications have poor uptimes, it means that users lose confidence in your product. It is important for your web apps and site to be constantly accessible to users. It is also essential to note that Google will penalize your website if your site is slow and offers a poor experience for the users. One of the best ways of monitoring the downtime and protecting the reputation of your business is by monitoring your website. You can do this through a web server monitoring service which consistently watches your websites uptime. Other reasons why you should use these services include:

Protect the image of your business

It doesnt matter whether yours is a brick and mortar or an online business; a good reputation is important .If your website cannot be found because it is down, you lose customer leads, sales and credibility. Frequent downtime will spoil the reputation of your business.

Keep customers happy

You should ensure that you maintain the customers who have subscription to your products and services that they access through the website. If you use a cloud-based software service, it will require a high level of uptime if your customers are to remain happy. If there is a downtime in your services and they remain unresolved for a long period of time, there are high chances of your customers moving away. With your competitor only one click away, you should not give your customers a reason to move.

Prevent losing sales

If your website experiences frequent breakdown, it can lead to loss in sales. In a survey that was conducted in 2007, it was noted that Amazon had a profit of $14.8 billion. This means that the site was making around $29,000 per minute. In June 2007, the website suffered a 2 hour downtime which caused a loss of $3.48 million. This means that if you are an online store or an eCommerce website, it is important to ensure the uptime of your website.

Types of Web Servers:

Every Website sits on a computer known as a Web server. This server is always connected to the internet. Every Web server that is connected to the Internet is given a unique address made up of a series of four numbers between 0 and 255 separated by periods. For example, 68.178.157.132 or 68.122.35.127.

There are four leading web servers Apache, IIS, lighttpd and Jagsaw. Now we will see these servers in bit more detail.

Apart from these Web Servers, there are other Web Servers also available in the market but they are very expensive. Major ones are Netscape's iPlanet, Bea's Web Logic and IBM's WebSphere.

Apache HTTP Server:This is the most popular web server in the world developed by the Apache Software Foundation. Apache web server is an open source software and can be installed on almost all operating systems including Linux, Unix, Windows, FreeBSD, Mac OS X and more. About 60% of the web server machines run the Apache Web Server. You can have Apache withtomcat moduleto have JSP and J2EE related support.

Internet Information ServicesThe Internet Information Server (IIS) is a high performance Web Server from Microsoft. This web server runs on Windows NT/2000 and 2003 platforms ( and may be on upcoming new Windows version also). IIS comes bundled with Windows NT/2000 and 2003; Because IIS is tightly integrated with the operating system so it is relatively easy to administer it. You can have detailed information about this server atMiscrosoft IISlighttpdThelighttpd, pronouncedlightyis also a free web server that is distributed with the FreeBSD operating system. This open source web server is fast, secure and consumes much less CPU power. Lighttpd can also run on Windows, Mac OS X, Linux and Solaris operating systems.

You can have detailed information about this server atlighttpdSun Java System Web Server:This web server from Sun Microsystems is suited for medium and large websites. Though the server is free it is not open source. It however, runs on Windows, Linux and Unix platforms. The Sun Java System web server supports various languages, scripts and technologies required for Web 2.0 such as JSP, Java Servlets, PHP, Perl, Python, Ruby on Rails, ASP and Coldfusion etc.

You can have detailed information about this server atSun Java System Web ServerJigsaw Server:Jigsaw (W3C's Server) comes from the World Wide Web Consortium. It is open source and free and can run on various platforms like Linux, Unix, Windows, Mac OS X Free BSD etc. Jigsaw has been written in Java and can run CGI scripts and PHP programs.7. E-Commerce Softwares (Basic Function of E-Commerce Softwares, Web Browser Functions and features, E- Commerce Softwares for small, Medium and large Businesses, Websites and internet utility programs)Web Browser Functions: Windows and Tabs

When Web browsers serve up the pages and sites you visit during your online sessions, they load your content into windows and tabs. Although the pictures and graphics you see on an individual page may load in from various websites, the window typically displays only one page, unless one site loads content from another into a captive frame within the window. If your Web browser supports tabs, you can open multiple destinations in docked windows that share the same window controls.

Address Bar or Location Line

To visit an online destination, you must tell your browser where you want to go. The address bar, also known as the location line, displays the URL the address of the page you're visiting and accepts typed or pasted input to determine the next site to display. Depending on how you set up your Internet browser preferences, you can use a process known as auto completion to transform part of a Web address into the complete address for the page in question as you're typing into the location line.

Controls

Along with the standard window controls that close and maximize application and document windows in all computer software, Web browser windows incorporate controls specific to browser operation. Some browsers allow you to specify which controls to display and which to omit, but the basics include buttons to navigate back to the last page you viewed or forward to the next in a sequence of destinations. Other controls stop a site from loading or reload the current content in the window. A "home" button loads a page you specify in your preferences as the default location to display each time you launch your browser. In a tabbed interface, you also may see navigation arrows to move from one tab to another.

History

Unless you change your preferences so your browser doesn't track the sites you visit, the software includes a menu, list, palette or window that shows a chronological list of your browsing destinations. When you reveal this list, you can click on individual items in it to return to those sites or pages.

Favorites or Bookmarks

As you traverse the Internet, you find sites that offer insights, news, commentary, humor, purchase options and other useful content. When you save a destination address as a favorite or bookmark, your browser stores the URL, along with its site or page name, so you can access it again with a single click. Most browsers present bookmarks in much the same way they display history states, sometimes in a floating panel that shows both.

Preferences

Browsers offer a wide set of customization options within their configuration options. You can determine what the browser does when it first loads, control add-ons that extend browser function, set up tab behavior, block pop-ups, turn image display and JavaScript on or off, choose which applications handle specialized website content such as audio and PDF files, manage history and cookies, establish security settings and tweak many other aspects of browser performance.

Cache

Internet browsers use a special storage area on your hard drive to file away website elements they can reload to speed up page delivery. When these cached elements become stale, the content on the sites you visit may display incorrectly. If a website consultant suggests that you empty your cache, she's trying to help you force your browser to load new content instead of reloading old cached files.8. E-Payment systems (E-Payments overview, Different modes of E-Payments, Advantages and Disadvantages, Internet technology and banking industry) E-Commerce Security (Overview of Security Risk, Different Security issues for clients and servers, Communication Channel security issues, Security Policies/Measures to reduce security risks) Advanced Topics of E-Commerce (ERP overview, Business integration with ERP systems, ERP as a complete tool for businesses, Issues regarding the implementation of ERP systems, Mobile Commerce, M-Commerce impacts on businesses)E-Payment Overview

An electronic payment is any kind of non-cash payment that doesn't involve a paper check. Methods of electronic payments include credit cards, debit cards and theACH (Automated Clearing House) network. The ACH system comprises direct deposit, direct debit and electronic checks (e-checks).Types of E-Payments

The following types of electronic payments are most common today. That said, it is important to realize that new payment types are continual being discovered and there are additional methods that exist or are being developed continuously.

Cards

Credit cards, debit cards and prepaid cards currently represent the most common form of electronic payments. For all 3 types of cards the consumer or the business most often uses a plastic card, commonly with a magnetic stripe. The cardholder gives his or her card or card number to a merchant who swipes the card through a terminal or enters the data to a PC. The terminal transmits data to his or her bank, the acquirer. The acquirer transmits the data through a card association to the card issuer who makes a decision on the transaction and relays it back to the merchant, who gives goods or services to the cardholder. Funds flow later for settlement with credit cards and are debited immediately for debit or pre-paid cards.

Along with magnetic stripe cards, smart cards are and will increasingly be used for payments. Smart cards are at present overwhelmingly plastic credit cards with an embedded computer chip. Until recently, many smart cards operated using proprietary rather than common standards. A standard set of specifications, EMV, has been developed and is being used increasingly so that the chips on smart cards are interoperable. Korea and Japan are among the most advanced countries in Asia for smart card payments, with Malaysia catching up fast due to government mandates for banks to issue smart cards. Most credit and debit cards are expected to be issued or reissued as smart cards by 2008 or earlier.

Over time, the chip for payment can be expected to move onto other devices. A smart card might then become the computer chip in a phone, PDA or other device that can perform the same function as chip in a plastic card, eliminating the need for the actual plastic card. Smart cards could thus evolve into smart phones, smart PDAs or other smart devices.Internet

Online payments involve the customer transferring money or making a purchase online via the internet. Consumers and businesses can transfer money to third parties from the bank or other account, and hey can also use credit, debit and prepaid cards to make purchases online.

Current estimates are that over 80% of payments for online purchases are made using a credit card or debit card. At present, most online transactions involve payment with a credit card. While other forms of payment such as direct debits to accounts or pre-paid accounts and cards are increasing, they currently represent a less developed transaction methodology.

Mobile Payments

Mobile phones are currently used for a limited number of electronic transactions. However, the percentage seems likely to increase as mobile phone manufacturers enable the chip and software in the phone for easier electronic commerce.

Consumers can use their mobile phone to pay for transactions in several ways. Consumers may send an SMS message, transmit a PIN number, use WAP to make online payments, or perform other segments of their transaction with the phone. As phones develop further, consumers are likely to be able to use infrared, Bluetooth and other means more frequently to transmit full account data in order to make payments securely and easily from their phone.

Additionally, merchants can obtain an authorization for a credit or debit card transaction by attaching a device to their mobile phone. A consortium in the US also recently announced PowerSwipe, for example, which physically connects to a Nextel phone, weighs 3.1 ounces, and incorporates a magnetic stripe reader, infrared printing port, and pass-through connector for charging the handset battery.

Financial Service Kiosks:Companies and service providers in several countries, including Singapore and the US, have set up kiosks to enable financial and non-financial transactions. These kiosks are fixed stations with phone connections where the customer usually uses a keyboard and television-like screen to transaction or to access information.

At AXS stations in Singapore, for example, consumers can make electronic bill payments, send email or SMS message and make phone calls. Kiosks in the United States enable the customer to send money via wire transfers, cash checks, make purchases using cash, and make phone calls.

Located at convenient public locations such as bus or subway stations, convenience stores or shopping malls, these kiosks enable electronic payments by individuals who may not have regular access to the internet or mobile phones.

Television Set-Top Boxes and Satellite Receiver:Specialized boxes attached to a television can also be used for payments in some locations. The set-top box attaches to the television and a keyboard or other device, and customers can make purchases by viewing items on the television. Payment is made electronically using a credit card or other account. While usage is presently low, it could grow substantially in countries with a strong cable or satellite television network.

Biometric Payments:Electronic payments using biometrics are still largely in their infancy. Trials are underway in the United States, Australia and a limited number of other countries. Most biometric payments involve using fingerprints as the identification and access tool, though companies like Visa International are piloting voice recognition technology and retina scans are also under consideration. Essentially, a biometric identifier such as a fingerprint or voice could replace the plastic card and more securely identifies the person undertaking the transaction. The electronic payment is still charged to a credit card or other account, with the biometric identifier replacing the card, check or other transaction mechanism.

Electronic Payments Networks:Various countries have electronic payments networks that consumer can use to make payments electronically. ACH (Automated Clearing House) in the US, domestic EFTPOS networks in Australia and Singapore, and other networks enable electronic payments between businesses and between individuals. The consumer can go online, to a financial service kiosk or use other front-end devices to access their account and make payments to businesses or other individuals.

Person-to-Person (P2P) Payments:P2P payments enable one individual to pay another using an account, a prepaid card or another mechanism that stores value. PayPal in the US, which was recently purchased by Ebay, is one of the most frequently used P2P mechanisms. The Tower Group estimates that the volume of P2P payments will grow from 105 million transactions in 2002 to 1.4 billion transactions by 2005. P2P payments can be made through a variety of means, including services like PayPal, transfers using card readers, or other. In the future other devices, such as mobile phones or PDAs, could also be used to enable P2P electronic payments.

ERP System:ERP is an industry acronym for Enterprise Resource Planning. Broadly speaking,ERP refers to automation and integration of a company's core business to help them focus on effectiveness & simplified success.SYSPRO defines the meaning of ERP

As one of the longest standing ERP vendors, we often get asked by prospects (and potential employees) to define ERP. The Information Technology industry is renowned for its adoption of acronyms, which are often widely used, but not fully understood. The term 'ERP' itself is not self-explanatory and refers to the business software that has been designed to record and manage your enterprise data.

AnERP System automates and integrates core business processessuch as taking customer orders, scheduling operations, and keeping inventory records and financial data. ERP systems can drive huge improvements in the effectiveness of any organisation by:

assisting you in defining your business processes and ensuring they are complied with throughout the supply chain;

protecting your critical business data through well-defined roles and security access

enabling you to plan your work load based on existing orders and forecasts

providing you with the tools to give a high level of service to your customers

translating your data into decision making information

Benefits of ERP for your Business

Integration across all business processes- To realize the full benefits of anERP systemit should be fully integrated into all aspects of your business from the customer facing front end, through planning and scheduling, to the production and distribution of the products you make.

Automation enhances productivity -By automating aspects of business processes, ERP makes them more efficient, less prone to error, and faster. It also frees up people from mundane tasks such as balancing data.

Increase overall performance- By integrating disparate business processes, ERP ensures coherence and avoids duplication, discontinuity, and people working at cross purposes, in different parts of the organisation. The cumulative positive effect when business processes integrate well is overall superior performance by the organisation.

Quality Reports and Performance Analysis -Analysis on ERP will enable you to produce financial and boardroom quality reports, as well as to conduct analysis on the performance of your organisation.

Integrates across the entire sup