Sunday, 5 June 2016

What is e-commerce ?


Commerce is the whole system of an economy that constitutes an environment for business. This refers to the exchange of goods and services. usually for money. There are three parties to any such exchange: Buyers - Sellers and - producers.

Buyers:- are the people with money who want to pucchase goods or services.

Sellers:- are the people who offer goods and services to buyers. Sellers are generally recognized in two different forms - retailers who sell directly to consumers and wholesalers or distributors who sell to retailers and other businesses.

Producers:- are the people who create the products and services that sellers offer to buyers. A producer is always, by necessity, a seller as well. But, the producer may sell the products to wholesalers, retailers, or direclty to the consumer.

We can also say that commerce refers to the buiying and selling of a product.

E-Commerce is a simply an extension of this concept. e-commerce refers to the facility of being able to purchase various goods through the internet using secure transmission of data and electronic payment services. in other words, E-Commerce or Electronic Commerce means buying and selling of any product online.
It is a way of enabling business over the Net. Companies set up websites providing details of their products and services. and users can purchase whatever they want through credit cards.


E-Commerce can provide the following benefits over non-electronic commerce. like;-
  • Reduced costs by 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 comples 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.
  • New Markets. The Internet has the potential to expand your business into wider geographical locations.

TYPES OF e-Commerce ::

Four types of E-Commerce have been defined. They are;-
  1. Business-to-Business (B2B)
  2. Business-to-Consumer(B2C)
  3. Consumer-to-Consumer(C2C)
  4. Consumer-to-Business(C2B)
1. B2B;- Companies doing business with each other such as manufacturer selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable

2. B2C;- Companies provide information about products and services on their website for the direct benefit of the actual consumers who can order any product or to take any information from this site.

3. C2C;- There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell things to online payment systems like payPal where people can send and receive money online with ease. e-Bay's auction service is a great example to show where person-to-person transactions take place everyday since 1995. and now a days PAYTM is also very popular.

4. C2B;- A consumer posts his project with a set budget online and within hours, companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions.

Shopping on the Web ::

An Internet-based retail business is similar to the mail-order business, where you are required to select the products you are interested in bying, and the quantity needed, from a catalogue.
How ever the difference only is that instead of mailing the selected product list along with your cheque or credit card number, you type in your credit card number and click Buy with your mouse.

Difference between Internet and Intranet

The networking process can be divided into Three types;-
  1. Internet

  2. Extra-net

  3. Internet

1. Internet is a private network using internet protocols and technology. It is meant to share information amongst the employees of an organization.

2. An Extranet is a semi-private network that also uses Internet technology. It is essentially an Internet that has been extended to allow a select group of people outside the organization such as, vendors and business partners to gain access to relevant information.

3. The Internet' is a world-wide network of computers linked together by telephone wires satellite links and other means. It helps even dissimilar computers with different operation systems to communicate with each other using a standard set of Protocols (means - Rules).

How the Internet works?

All Computers within any network are connected to each other with the help of cables. A message travels across the network with the lelp of networking protocols. A Protocol is a set of rules which computers use to communicate with each other accross a network. The protocols used over the internet provide addresses for the computers attached to a network. In this way different types of networks communicate with each other using the same protocol.

To interpret the information being transmitted., it is essential that the right software and hardware be used. The commonly used protocols are;-

IP- Internet Protocol
TCP- Transmission Control Protocol

They are together known as the TCP or IP protocols. This has a simple naming and addressing scheme which helps in locating information on the internet. Each network and computer system has an address called the IP address. The address is used to exchange information.

When information is passed from one computer system to another, it is broken up into pieces called packets using the IP protocol. Each packet has an address called the IP Address that refers to the Sender  and the Destination. These packets are passed from one network to the packets into a complete message.

If packets are damaged or lost, a request is sent to resend them. It is not necessary for all the packets in a single message to take the same route through the Internet, or for the same message to take the same route each time it is sent.


Now a days in our routine life we come across various types of networks like network of roads. communication network of telephone system network of banks, radio networks, television networks, library networks, etc.,

What is networking?

The computer network is a group of two or more computers connected to each other electronically. This means that computers can talk and share the information to each other.

Advantages of Networking:

Networking in computers brings efficiency, economy and effectiveness in any organization.

Preserving Information:- It is difficult to maintain regular backups on a number of stand alone computers. When you keep backups on a central location, you have one place to look for the lost information.

Reduction of Hardware costs:- in the network, the hardware devices which are not used very often, like modems, printers, scanners, CD devices etc., can be shared. This reduces the cost of hardware.

Quick Document Delivery:- Internet provides a facility to instantly deliver soft copies from one computer to other computers throughout the world.

Efficent Use of Storage Media:- It s better to sotre a shareable application data on a network drive than to store a copy of the application on eacch user's storage device. it is better to have one big hard disk in the server than to have small hard disks in different computers.

Efficiency:- In a network, the deletion, modification or upgradation of the software or data is to be done at a single point only. This brings more efficiency and effectiveness into working system.

Redundancy:- Networks reduce the need for hard copies of all documents. By sharing files over the network, the need to share paper copies of reports or any other information can be eliminated or greatly reduced.

A computer network can be categorized depending on geographical area as;-

  1. LAN (Local Area Network)
  2. MAN (Metropolitan Area Network)
  3. WAN (Wide Area Network)
1. LAN - A network is said to be Local Area Network if it is confined relatively to a small area It is generally limited to a building or a geographical area, expanding not more than a mile apart to other computers.

2. MAN - Metropolitan Area Network covers larger geographic areas, such as cities. Often used by local libraries and government agencies to connect t citizens and private industries.

3.WAN - Wide Area Networks connect larger geographic areas, such as London, the UK or the world. In this type of network, dedicated transoceanic cabling or satellite uplinks may be used.