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Q.1 Define E-commerce, discuss its components in detail and explain how they affect business world?

Electronic commerce or e-commerce refers to a wide range of online business activities for products and services. It also pertains to “any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact E-commerce is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network. Though popular, this definition is not comprehensive enough to capture recent developments in this new and revolutionary business phenomenon. A more complete definition is: E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals.

1.      Suppliers and supply chain management

2.      Warehouse operations

3.      Shipping and returns

4.      Client Relationship Management (CRM) – software and policies

5.      Ecommerce catalogue and product display

6.      Marketing and loyalty programs

7.      Showroom and offline purchases

Ecommerce businesses are fast gaining grounds and changing the way of doing business. The main aspect of ecommerce involves doing business on the web and includes:

·         Business to business (B2B) trading which involves a business such as a company trading with another business on the world wide web.

·         Business to consumer (B2C) trading which involves a business such as a company directly dealing with consumers over the world wide web.

Ecommercehas affected businesses positively and negatively. On the one side, ecommerce makes it easier for businesses to reach a much wider audience at less expense than would be required if the traditional retail method was to be applied. With ecommerce, there is no requirement to acquire expensive shops in high streets. You can produce or store your goods at a remote upcountry location and still advertise and sell them worldwide. While the cost of developing a good website may be substantial, it is much cheaper than letting expensive high street storefronts. Additionally, once you have your website operational, you will reach a wide client base. The next thing is to ensure that you have access to appropriate means of transporting goods to customers who make orders.

On the other hand, established enterprises, most of which are vertically integrated are finding it harder than before to retain their market share. More flexible competitors are entering the market traditionally dominated by these established companies, making competition fiercer than ever. To remain relevant, old school companies are having to adjust to the new technologies and incur capital expenditure in developing new capabilities. Blockbuster, a leading video rental and franchise in the world had enjoyed many years of success. However, Netflix, an ecommerce based firm entered the market and took away a considerable market share from Blockbuster which was forced to readopt its business model to offer ecommerce services. Another good example of how ecommerce is changing the business landscape is Amazon.com which grabbed a substantial market share from traditional booksellers forcing them to start selling online as well.

https://www.techbullion.com/impact-e-commerce-businesses/

Q. 2 Explain the role of E-commerce that how efficiently and effectively it evolves positive changes in organizations?

Convenience & Easiness:

For many people in the world, e-Commerce becomes one of the preferred ways of shopping as they enjoy their online because of its easiness and convenience. They are allowed to buy products or services from their home at any time of day or night.

The best thing about it is buying options that are quick, convenient and user-friendly with the ability to transfer funds online. Because of its convenience, consumers can save their lots of time as well as money by searching their products easily and making purchasing online.

Offer Product Datasheets:Attract New Customers with Search Engine Visibility:Comprise Warranty Information:Decreasing cost of inventory Management:Keep Eye on Consumers’ Buying Habit:Competence:Allow Happy Customers to Sell Your Products:Selling Products Across the World:Stay open 24*7/365:Economy:Boost Brand Awareness:Decrease Costs:Eliminate Travel Cost: Offer Huge Information:Analytics:

Expand Market for Niche Products:Scalability:Ability of Multi-site:

E-commerce is business activity carried out electronically on the Internet rather than at a physical location. Through websites, some businesses do business with other businesses, an e-commerce model known as B2B. Other businesses sell to consumers online, in a B2C e-commerce model. The advent of e-commerce has had both positive and negative effects.

Privacy

Retailers with an e-commerce presence can collect a lot of information about visitors to their websites. By setting up electronic trackers called cookies that track the surfing patterns of visitors, e-commerce merchants can develop individual profiles of online customers. This allows them to target advertisements to consumers based on what the merchants believe to be their needs. Some critics say this activity intrudes on consumers' privacy.

Security

Another negative effect of e-commerce is its potential threat to the security of consumers' personal information. When consumers buy online, they typically input a credit card number and other personal information. Unauthorized persons could access this information through flaws in the merchant's computer system. Merchants have become much more vigilant about information security than they were in the early days of e-commerce.

Energy Consumption

One positive effect of the emergence of e-commerce is that it may save energy. Consumers who shop online rather than drive to stores use less fuel and their cars emit less pollution. Also, because e-commerce reduces the need for warehouse space to house goods near retail stores, these warehouses use less energy.

Cost Reduction

E-commerce can reduce costs for consumers when companies cut down on middlemen involved in distributing goods, warehouse space to store the goods and personnel expenses. E-commerce also enables companies to manage their inventory better. To be competitive, businesses are likely to pass down at least some of these savings to consumers.

Q. 3 Comparison of OSI Reference Model and TCP/IP Reference Model

Following are some major differences between OSI Reference Model and TCP/IP Reference Model, with diagrammatic comparison below.

OSI(Open System Interconnection)	TCP/IP(Transmission Control Protocol / Internet Protocol)
1. OSI is a generic, protocol independent standard, acting as a communication gateway between the network and end user.	1. TCP/IP model is based on standard protocols around which the Internet has developed. It is a communication protocol, which allows connection of hosts over a network.
2. In OSI model the transport layer guarantees the delivery of packets.	2. In TCP/IP model the transport layer does not guarantees delivery of packets. Still the TCP/IP model is more reliable.
3. Follows vertical approach.	3. Follows horizontal approach.
4. OSI model has a separate Presentation layer and Session layer.	4. TCP/IP does not have a separate Presentation layer or Session layer.
5. Transport Layer is Connection Oriented.	5. Transport Layer is both Connection Oriented and Connection less.
6. Network Layer is both Connection Oriented and Connection less.	6. Network Layer is Connection less.
7. OSI is a reference model around which the networks are built. Generally it is used as a guidance tool.	7. TCP/IP model is, in a way implementation of the OSI model.
8. Network layer of OSI model provides both connection oriented and connectionless service.	8. The Network layer in TCP/IP model provides connectionless service.
9. OSI model has a problem of fitting the protocols into the model.	9. TCP/IP model does not fit any protocol
10. Protocols are hidden in OSI model and are easily replaced as the technology changes.	10. In TCP/IP replacing protocol is not easy.
11. OSI model defines services, interfaces and protocols very clearly and makes clear distinction between them. It is protocol independent.	11. In TCP/IP, services, interfaces and protocols are not clearly separated. It is also protocol dependent.
12. It has 7 layers	12. It has 4 layers

Q4. What security risk does ecommerce involve?

Security risks would depend on several factors:

·         Your Web Hosting provider, is their web server secure? Any vulnerability which the hacker can take advantage of a server will compromise your website.

·         CMS (content management system) you are using - If you are using e.g WordPress make sure your installation and plugins are always kept up to date to prevent vulnerabilities. Same applies for other installations to keep them upto date.

·         SSL (secure socket layer) - For establishing an encrypted link between a web server and a browser. Definatly required if you are selling goods/products online.

·         Hackers getting credit card details

·         Hackers getting customer details such as email addresses

·         With mail-order, credit card details aren't sent and neither are email addresses, so no, the risks aren't really similar.

Q5. Should vendors maintain their own sites?

affiliates are there for a reason. for a small cut, the distribution is much much wider and off the vendors shoulders.

Vendor can,t maintain their sites they assigned a task if possible

The brands can manage the sites.

Q6. Is ecommerce profitable?

In a recent article for Forbes, retail expert Steven Dennis lays out his claim that eCommerce simply isn’t profitable. Flash-sale eCommerce sites are going the way of the dinosaur. For example, ModCloth, the retro-inspired eCommerce brand for women, recently sold to Jet.com, a subsidiary of Walmart, for about $3 million shy of its investment. It’s uncertain whether fans of ModCloth will continue to support the brand after this move.

Even Amazon’s most profitable vertical is AWS (Amazon Web Services), the cloud computing service, and not eCommerce. While Alibaba has seen both huge growth and profits in China, Indian industrialist Kumar Mangalam Birla has doubts about eCommerce in India. “One thing I am sure is that you can't have unlimited access to capital funding. Therefore the question that comes to my mind is whether the deep discount model is sustainable,” he said.

It’s a good question. It’s easy for a new pure-play eCommerce site to draw an initial batch of loyal customers who love a product or style. But to expand beyond that base is hard. Customers who come for deep discounts are less likely to become loyal customers. They are also more likely to return products.

Omnichannel brands are better off than pure-play eCommerce sites. Customers still love going to brick-and-mortar stores. While many may love the deep discounts of online shopping, if those discounts don’t make for sustainable businesses then the draw for eCommerce must be more than price point. When retailers can leverage their sales associates on all channels, they’ve hit the win-win solution. Physical stores and eCommerce must work together. They must both be able to play off of each other and direct customers across channels. Neither online nor brick-and-mortar channels can be a drain on the other if a brand wants to thrive.

But even pure-play eCommerce brands can win in the long run if they give customers an exceptional experience. They need to provide customers easy ways to get answers to their every question, sell quality products, and take customer feedback seriously.