Biief iuea about E-commeice

Wbot is F-commerce
ln lLs slmplesL form Lcommerce ls Lhe buylng and selllng of producLs and servlces by buslnesses
and consumers over Lhe lnLerneL eople use Lhe Lerm ecommerce Lo descrlbe encrypLed
paymenLs on Lhe lnLerneL
SomeLlmes Lhese LransacLlons lnclude Lhe realLlme Lransfer of funds from buyer Lo seller and
someLlmes Lhls ls handled manually Lhrough an Ll1 (LlecLronlc lund 1ransfer) Lermlnal once a
secure order ls recelved by Lhe merchanL
lnLerneL sales are lncreaslng rapldly as consumers Lake advanLage of lower prlces offer by
wholesalers reLalllng Lhelr producLs 1hls Lrend ls seL Lo sLrengLhen as web slLes address
consumer securlLy and prlvacy concerns
enefits of F-Commerce

O educed cosLs by reduclng labor reduced paper work reduced errors ln keylng ln daLa
reduce posL cosLs
O educed Llme ShorLer lead Llmes for paymenL and reLurn on lnvesLmenL ln adverLlslng
fasLer dellvery of producL
O llexlblllLy wlLh efflclency 1he ablllLy Lo handle complex slLuaLlons producL ranges and
cusLomer proflles wlLhouL Lhe slLuaLlon becomlng unmanageable
O lmprove relaLlonshlps wlLh Lradlng parLners lmproved communlcaLlon beLween Lradlng
parLners leads Lo enhanced longLerm relaLlonshlps
O ock ln CusLomers 1he closer you are Lo your cusLomer and Lhe more you work wlLh
Lhem Lo change from normal buslness pracLlces Lo besL pracLlce Lcommerce Lhe harder
lL ls for a compeLlLor Lo upseL your cusLomer relaLlonshlp
O -ew MarkeLs 1he lnLerneL has Lhe poLenLlal Lo expand your buslness lnLo wlder
geographlcal locaLlons

C - business to consumer
ln 82C (buslness Lo consumer) Lradlng acLlvlLy has been slow Lo Lake off as aL flrsL consumers
had doubLs abouL Lhe securlLy of credlL card LransacLlons
lnlLlal 82C Lradlng focused on muslc Cus sofLware and books lLems whlch were compacL and
easlly shlpped and where prlces could be slashed once Lhe reLallers cuL was Laken ouL of Lhe
margln 1he Amazon book sLore would be a good example of Lhls 1hese producLs pushed Lhe
perlmeLers of Lhe markeL ouL for goods boughL onllne
8ooks and Cus are relaLlvely generlc producLs A Cu boughL ln Lhe uS wlll have Lhe same muslc
and quallLy as one boughL locally (Lhe excepLlon ls Lhe cover arL) and so Lhere ls no doubL ln Lhe
consumers mlnd exacLly whaL Lhe producL ls 1hls ls noL Lhe case wlLh cloLhlng where slzes can
confuse Lhe purchase declslon and where LacLlle senses flgure sLrongly ln Lhe purchaslng
declslon
Lbay has really Lransformed purchaslng behavlor on Lhe web Many people have made Lhelr
flrsL ecommerce LransacLlon on Lbay Many people sell on Lbay Loo glven ralse Lo Lhe work
fromhome/drop shlpplng model of ecommerce
lnLeresLlngly Lhough 82C LransacLlons of prevlously locallzed or hard Lo flnd producLs can be
exLremely sLrong lf you have a unlque producL LhaL ls hlghly relevanL Lo a nlche audlence you
are llkely Lo do very well on Lhe web
AlLhough sales are lncreaslng rapldly on Lhe lnLerneL Lhe volume of Lurnover flgures conLlnues
Lo fall shorL of lndusLry esLlmaLes 8uL as reLall web slLes become more navlgable and prlvacy
pollcles are dlsplayed more people wlll be drawn Lo -eLbased purchaslng by lower prlces and
convenlence
- business to business
Cn Lhe lnLerneL 828 (buslness Lo buslness) ls Lhe exchange of producLs or servlces beLween
buslnesses raLher Lhan beLween buslnesses and consumers
AlLhough early lnLeresL cenLered on Lhe growLh of reLalllng on Lhe lnLerneL forecasLs are LhaL
828 revenue wlll far exceed 82C revenue ln Lhe near fuLure
Accordlng Lo sLudles publlshed ln early 2000 Lhe money volume of 828 exceeds LhaL of 82C by
10 Lo 1 Cver Lhe nexL flve years 828 ls expecLed Lo have a compound annual growLh of 41
Consumer to usiness {C
ln Loday's Lcommerce arena lL ls growlng Lrend whereln consumers demand speclflc producLs
or servlces from respecLlve buslnesses lor example l conLacL a Lour and Lravel operaLor vla
Lhelr webslLe for purchaslng a hollday package
Consumer Lo buslness Lcommerce ls growlng aL a rapld pace and Lhe Lrend ls seL Lo conLlnue ln
Lhe fuLure
Consumer to Consumer {CC
usually Lhls Lype of Lcommerce works as Consumer Lo 8uslness Lo Consumer (C282C) lL
essenLlally means LhaL a consumer would conLacL a buslness ln search for a sulLable cusLomer
MosL of Lhe aucLlon webslLes (llke e8ay) and maLrlmonlal webslLes are worklng on Lhls
meLhodology
eer to eer {
1hough lL ls an ecommerce model buL lL ls more Lhan LhaL lL ls a Lechnology ln lLself whlch
helps people Lo dlrecLly share compuLer flles and compuLer resources wlLhouL havlng Lo go
Lhrough a cenLral web server 1o use Lhls boLh sldes need Lo lnsLall Lhe requlred sofLware so
LhaL Lhey can communlcaLe on Lhe common plaLform 1hls Lype of ecommerce has qulLe low
revenue generaLlon as from Lhe beglnnlng lL has been lncllned Lo Lhe free usage due Lo whlch lL
someLlmes goL enLangled ln cyber laws
-Commerce
lL refers Lo Lhe use of moblle devlces for conducLlng Lhe LransacLlons 1he moblle devlce
holders can conLacL each oLher and can conducL Lhe buslness Lven Lhe web deslgn and
developmenL companles opLlmlze Lhe webslLes Lo be vlewed correcLly on moblle devlces

oyment 6otewoys
Both PayPal and Paymate oIIer credit card to bank account payments. Using one oI these
services you can invoice a customer, they can pay on Paymate and the Iunds will be deposited in
your bank account ... less a transaction Iee.
Unlike a credit card merchant Iacility you will not have ongoing, minimum monthly Iees... and
the transaction Iee is better than what most card companies oIIer small merchants. Additional
these service are being backed into other ecommerce sites and shopping carts. Ebay Ior example
uses Paypal to process some payments.
be Rise onJ Rise of Auction Sites
Auction sites such as Ebay and TradeMe have done an enormous amount to get ordinary people
involved in online trading. Today many Ebay merchants are establishing their own web sites to
avoid Ebay and Pay Pal Iees. They have learnt about how to present their product in their Ebay
store and what issues are important to their customers in purchasing their product and now they
are ready to start their own web site.

Security
Cn Lhe lnLerneL securlLy ls handled by passlng keys beLween lnLerneL server and cllenL
browser When enLerlng a secure slLe your browser ls passed a publlc key by whlch LransacLlons
beLween you and Lhe web server are encrypLed 1he servers key ls always kepL prlvaLe
Cn your web slLe securlLy can be handled Lwo ways dependlng on your budgeL ?ou can
plggyback on someone elses key or you can reglsLer and pay for your own key or SS
cerLlflcaLe aL 1hwaLe or verlslgn
Cenerally Loday buslnesses who hosL web slLes offer access Lo a secure server and you can use
Lhelr server and secure cerLlflcaLe for less Lhan lf you reglsLered and pald for your own key
Powever Lhe person browslng your slLe wlll noLlce Lhe u change Lo one Lhey do noL recognlse
or LrusL 1hls may puL your cusLomers off (alLhough Lhere ls no evldence of Lhls) 1herefore
one of Lhe advanLages of buylng your own key would be Lo have a u for your secure pages
LhaL ls conslsLenL wlLh Lhe resL of your slLe
resenLly ln AusLralla verlslgn may sell you a key for over $800 whlle forelgn ecommerce
provlders llke lnsLanL SS can sell lL for $130 AlLhough verlslgn wlll argue LhaL Lhelr key comes
wlLh a range of value add beneflLs Lhe boLLom llne ls Lhe producL le Lhe key ls Lhe same
CreJit CorJ Security
1he credlL card companles are consLanLly evolvlng more secure credlL card purchaslng on Lhe
lnLerneL
O CfLen you wlll be asked Lo glve a Lhree dlglL verlflcaLlon code on Lhe reverse of your
card 1hls ls Lo prove you have Lhe card ln your hand aL Lhe Llme you made Lhe purchase
O Card companles also monlLor your card acLlvlLy Lo check for susplclous or ouL of ordlnary
purchases 1hey wlll conLacL you Lo verlfy lL ls you creaLlng Lhe usually break ln Lhe
purchaslng paLLern
O A range of blomeLrlc securlLy measure have been proposed for credlL cards -one are ln
wldespread use aL Lhls Llme
O SmarLcards house a chlp LhaL has exLra daLa ln lL abouL Lhe card holder or carry an publlc
key
1o glve cusLomers confldence ln purchaslng on Lhe lnLerneL however card companles generally
sLand by cusLomers who have had Lhelr card or card number sLolen 1hls ls noL exacLly Lhe case
for merchanLs Lhough 1he card company wlll alerL Lhe merchanL Lo sLolen cards and fraudulenL
LransacLlon buL do noL lndemnlfy Lhe merchanL from losses
inJinq on ecommerce roviJer,ortner
Cenerally your web developer wlll advlse you on Lhe varlous securlLy opLlons 1helr
recommendaLlon wlll conslder Lhlngs llke
O volume of sales
O amounL of daLa LhaL needs Lo be capLured per sale
O number of producLs ln your sLore
O how ofLen you need Lo change Lhe producL prlces or oLher deLalls
O your speclal frelghL requlremenLs
O wheLher orderlng has Lo lnLerface wlLh your banklng/accounLlng sysLem and so on
Smaller buslnesses generally only requlred a secure form LhaL reLurns resulLs Lo Lhe buslness
owner whlle a larger company wlLh mulLlple producLs and locaLlons wlll requlre a soluLlon LhaL
Lakes Lhe order banks Lhe money and sends a message Lo ouLwards goods Lo dlspaLch Lhe
goods Who you choose as an ecommerce provlder ls Lherefore very much dependenL on Lhe
slze of your buslness and Lhe range of your producLs
onks
8anks were slow aL flrsL Lo embrace lnLerneL Lechnologles clLlng securlLy fears More recenLly
Lhough ln Lhe drlve for hlgher proflLs and greaLer shareholder reLurn Lhey have been movlng
more and more of Lhelr buslness onllne
MosLly Lhls LranslLlon has gone smooLhly 1he only real dlfflculLy ls phlshlng scams where
people are Lrlcked lnLo logglng lnLo a web slLe deslgned Lo look llke Lhelr bank buL lnsLead Lraps
Lhelr logln deLalls 8anks have warned people noL Lo cllck llnks ln Lhelr emall Lo logln lnLo Lhe
banks web slLe buL Lo Lype Lhe u lnLo Lhelr browser wlndow every Llme
8anks wlll soon lssue a uS8 devlce requlred ln con[uncLlon wlLh a l- Lo access a bank accounL
1hls wlll LlghLen securlLy furLher

6lobol trenJs
8uslness models across Lhe world also conLlnue Lo change drasLlcally wlLh Lhe advenL of
Lcommerce and Lhls change ls noL [usL resLrlcLed Lo uSA CLher counLrles are also conLrlbuLlng
Lo Lhe growLh of Lcommerce
lor example Lhe unlLed klngdom has Lhe blggesL Lcommerce markeL ln Lhe world when
measured by Lhe amounL spenL per caplLa even hlgher Lhan Lhe uSA 1he lnLerneL economy ln
uk ls llkely Lo grow by 10 beLween 2010 Lo 2013 1hls has led Lo changlng dynamlcs for Lhe
adverLlslng lndusLry
AmongsL emerglng economles Chlnas Lcommerce presence conLlnues Lo expand WlLh 384
mllllon lnLerneL users Chlnas onllne shopplng sales rose Lo $366 bllllon ln 2009 and one of Lhe
reasons behlnd Lhe huge growLh has been Lhe lmproved LrusL level for shoppers
1he Chlnese reLallers have been able Lo help consumers feel more comforLable shopplng
onllne Lcommerce has become an lmporLanL Lool for buslnesses worldwlde noL only Lo sell Lo
cusLomers buL also Lo engage Lhem

lmpoct on morkets onJ retoilers
LconomlsLs have Lheorlzed LhaL Lcommerce oughL Lo lead Lo lnLenslfled prlce compeLlLlon as lL
lncreases consumers ablllLy Lo gaLher lnformaLlon abouL producLs and prlces esearch by four
economlsLs aL Lhe unlverslLy of Chlcago has found LhaL Lhe growLh of onllne shopplng has also
affecLed lndusLry sLrucLure ln Lwo areas LhaL have seen slgnlflcanL growLh ln ecommerce
bookshops and Lravel agencles Cenerally larger flrms have grown aL Lhe expense of smaller
ones as Lhey are able Lo use economles of scale and offer lower prlces
1he lone excepLlon Lo Lhls paLLern has been Lhe very smallesL caLegory of bookseller shops
wlLh beLween one and four employees whlch appear Lo have wlLhsLood Lhe Lrend
18

istribution cbonnels
Lcommerce has grown ln lmporLance as companles have adopLed ureCllck and 8rlck and
Cllck channel sysLems We can dlsLlngulsh beLween purecllck and brlck and cllck channel
sysLem adopLed by companles
ureCllck companles are Lhose LhaL have launched a webslLe wlLhouL any prevlous
exlsLence as a flrm lL ls lmperaLlve LhaL such companles musL seL up and operaLe Lhelr
Lcommerce webslLes very carefully CusLomer servlce ls of paramounL lmporLance
8rlck and Cllck companles are Lhose exlsLlng companles LhaL have added an onllne slLe for
ecommerce lnlLlally 8rlck and Cllck companles were skepLlcal wheLher or noL Lo add an
onllne Lcommerce channel for fear LhaL selllng Lhelr producLs mlghL produce channel
confllcL wlLh Lhelr offllne reLallers agenLs or Lhelr own sLores Powever Lhey evenLually
added lnLerneL Lo Lhelr dlsLrlbuLlon channel porLfollo afLer seelng how much buslness Lhelr
onllne compeLlLors were generaLlng
F-commerce rivers
be economy, consumer spenJinq, onJ retoil spenJinq
AL a macro level overall economlc acLlvlLy LoLal reLall spendlng and change ln consumer
llfe sLyle are ln general are key drlvers Lo Lhe growLh of ecommerce AL a mlcro level
for lnsLance rlslng oll prlces and gasollne cosLs could beneflL Lcommerce players eg
lL ls more expenslve drlvlng Lo Lhe offllne reLall sLore Lhan shopplng onllne 1he
recesslon beglnnlng ln 2008 has slowed ecommerce buL overall sales are sLlll growlng
uS onllne reLall sales grew 11 ln C1 2008 compared Lo a growLh of 169 ln C1 2007
0nline oxotion
Several proposals have been made aL Lhe uS sLaLe and local level LhaL would lmpose
addlLlonal Laxes on Lhe sale of goods and servlces Lhrough Lhe lnLerneL 1hese proposals
lf adopLed could subsLanLlally lmpalr Lhe growLh of ecommerce

1he uS federal governmenLs moraLorlum on sLaLes and oLher local auLhorlLles
lmposlng access or dlscrlmlnaLory Laxes on Lhe lnLerneL explred ln -ovember 2007 1he
LaxaLlon slLuaLlon ls a dynamlc one and one whlch ls carefully belng waLched by many
sLakeholders
ifferentiotion vs. Click-onJ-ortors
Many Lcommerce webslLes have esLabllshed Lhelr leadershlp poslLlons Lhrough low
prlces hlgh cusLomer saLlsfacLlon and convenlenL lnLerfacesbuL LhaL poslLlon ls
becomlng less and less unlque 1he largesL reLallers such as WalMarL 1argeL and 8esL
8uy are presslng harder Lo galn markeL share onllne

1he lnroads Lhe cllckandmorLar reLallers have been maklng ls evldenL ln recenL come
daLa whlch shows Lhe unlque user Lrafflc aL Lhe aforemenLloned slLes lncreaslng aL
greaLer yearoveryear raLes vs pure Lcommerce players 1hose pure play eLallers LhaL
develop and deploy Lhe mosL unlque web Lechnologles Lo enhance consumer
experlences and keep prlces compeLlLlve wlll be ln Lhe besL poslLlon Lo ward off Lhe
cllckandmorLar convoy
lnternet enetrotion onJ Fmerqinq orkets
Clobal lnLerneL peneLraLlon raLes have an enormous lmpacL on Lcommerce growLh
raLes CurrenLly more Lhan 302 of Lhe world has access Lo Lhe lnLerneL and hence e
commerce

educed lnLerneL surflng charges lnLerneL Lechnology developmenL coverlng expanded
bandwldLh and lncreased speeds rellablllLy could make Lcommerce avallable Lo a
large pool of emerglng markeL consumers ln lndla only abouL 60 mllllon (or 32) of a
LoLal 1 bllllon person populaLlon currenLly have access Lo Lhe lnLerneL ln Chlna Lhe
lnLerneL peneLraLlon raLe ls now aL 19 as of !une 2008

1he companles LhaL are able Lo galn slgnlflcanL LracLlon flrsL ln emerglng markeLs wlll be
aL greaL advanLage Lo compeLlLors

AJvontoqes AnJ isoJvontoqes 0f F-commerce
AJvuntugex Of F-commerce
ower Cost
uolng ebuslness ls cosL effecLlve lL reduces loglsLlcal problems and puLs a small buslness on a
par wlLh glanLs such as Amazoncom or Ceneral MoLors ln a commerclal bank for example a
baslc overLhecounLer LransacLlon cosLs 030 Lo process over Lhe lnLerneL Lhe same
LransacLlon cosLs abouL 001 Lvery flnanclal LransacLlon evenLually Lurns lnLo an elecLronlc
process 1he sooner lL makes Lhe converslon Lhe more cosLeffecLlve Lhe LransacLlon becomes
Fconomy
unllke Lhe brlckandmorLar envlronmenL ln ecommerce Lhere ls no physlcal sLore space
lnsurance or lnfrasLrucLure lnvesLmenL All you need ls an ldea a unlque producL and a well
deslgned web sLorefronL Lo reach your cusLomers plus a parLner Lo do fulflllmenL 1hls makes
ecommerce a loL more economlcal
Eiqber orqins
Lcommerce means hlgher marglns lor example Lhe cosL of processlng an alrllne LlckeL ls 3
Accordlng Lo one Lravel agency processlng Lhe same LlckeL onllne cosLs 1 Along wlLh hlgher
marglns buslnesses can galn more conLrol and flexlblllLy and are able Lo save Llme when
manual LransacLlons are done eleLronlcally
etter Customer Service
Lcommerce means beLLer and qulcker cusLomer servlce Cnllne cusLomer servlce makes
cusLomers happler lnsLead of calllng your company on Lhe phone Lhe web merchanL glves
cusLomers dlrecL Lo Lhelr personal accounL onllne 1hls saves Llme and money lor companles
LhaL do buslness wlLh oLher companles addlng cusLomer servlce onllne ls a compeLlLlve
advanLage 1he overnlghL package dellvery servlce where Lracklng numbers allow cusLomers Lo
check Lhe whereabouLs of a package onllne ls one good example
uick Comporison Sboppinq
Lcommerce helps consumers Lo comparlson shop AuLomaLed onllne shopplng asslsLanLs
called hopboLs scour onllne sLores and flnd deals on everyLhlng from apples ro prlnLer rlbbons
roJuctivity 6oins
Weavlng Lhe web LhroughouL an organlsaLlon menas lmproved producLlvlLy lor example l8M
lncorporaLed Lhe web lnLo every corner of Lhe flrm producLs markeLlng and pracLlces 1he
company flgured lL would save $730 mllllon by leLLlng cusLomers flnd answers Lo Lechnlcal
quesLlons vla lLs webslLe 1he LoLal cosL savlngs ln 1999 alone was close Lo $1 bllllon
eomwork
Lmall ls one example of how people collaboraLe Lo exchange lnformaLlon and work on
soluLlons lL has Lransformed Lhe way organlsaLlons lnLeracL wlLh suppllers vendors buslness
parLners and cusLomers More lnLeracLlons means beLLer resulLs
KnowleJqe orkets
Lcommerce helps creaLe knowledge markeLs Small groups lnslde blg flrms can be funded wlLh
seed money Lo develop new ldeas lor example ualmlerChrysler has creaLed small Leams Lo
look for new Lrends and producLs A Slllcon valley Leam ls dolng consumer research on elecLrlc
cars and advlslng car deslgners
lnformotion Sborinq, Convenience, AnJ Control
LleLronlc markeLplaces lmprove lnformaLlon sharlng beLween merchanLs and cusLomers and
promoLe qulck [usLlnLlme dellverles Convenlence for Lhe consumer ls a ma[or drlver for
changes ln varlous lndusLrles CusLomers and merchanLs save money are onllne 24 hours a day
7 days a week experlence no Lrafflc [ams no crowds and do noL have Lo carry heavy shopplng
bags
xuJvuntugex Of F-commerce
Security
SecurlLy conLlnues Lo be a problem for onllne buslnesses CusLomers have Lo feel confldenL
abouL Lhe lnLegrlLy of Lhe paymenL process before Lhey commlL Lo Lhe purchase
System AnJ oto lnteqrity
uaLa proLecLlon and Lhe lnLegrlLy of Lhe sysLem LhaL handles Lhe daLa are serlous concerns
CompuLer vlruses are rampanL wlLh new vlruses dlscovered every day vlruses cause
unnecessary delays flle backups sLorage problems and oLher slmllar dlfflculLles 1he danger of
hackers accesslng flles and corrupLlng accounLs adds more sLress Lo an already complex
operaLlon
System Scolobility
A buslness develops an lnLeracLlve lnLerface wlLh cusLomers vla a webslLe AfLer a whlle
sLaLlsLlcal analysls deLermlnes wheLher vlslLors Lo Lhe slLe are oneLlme or recurrlng cusLomers
lf Lhe company expecLs 2 mllllon cusLomers and 6 mllllon show up webslLe performance ls
bound Lo experlence degradaLlon slowdown and evenLually loss of cusLomers 1o sLop Lhls
problem from happenlng a webslLe musL be scalable or upgradable on a regular basls
F-commerce ls Not ree
So far success sLorles ln ecommerce have forced large buslness wlLh deep pockeLs and good
fundlng Accordlng Lo a reporL small reLallers LhaL go headLohead wlLh ecommerce glanLs
are flghLlng loslng baLLle As ln Lhe brlckandmorLar envlronmenL Lhey slmply cannoL compeLe
on prlce or producL offerlng 8rand loyalLy ls relaLed Lo Lhls lssue whlch ls supposed Lo be less
lmporLanL for onllne flrms 8rands are expecLed Lo lower search cosLs bulld LrusL and
communlcaLe quallLy A search englne can come up wlLh Lhe besL muslc deals for example yeL
consumers conLlnue Lo flock Lo LrusLed enLlLles such as PMv
Consumer Seorcb ls Not Ffficient or Cost-effective
Cn Lhe surface Lhe elecLronlc markeLplace seems Lo be a perfecL markeL where worldwlde
sellers and buyers share and Lrade wlLhouL lnLermedlarles Powever a closer look lndlcaLes LhaL
new Lypes of lnLermedlarles are essenLlal Lo ecommerce 1hey lnclude elecLronlc malls LhaL
guaranLee leglLlmacy of LransacLlons All Lhese lnLermedlarles add Lo LransacLlon cosLs
Customer Relotions roblems
-oL many buslnesses reallse LhaL even ebuslness cannoL survlve over Lhe long Lerm wlLhouL
loyal cusLomers
roJucts eople wont buy online
lmaglne a webslLe called furnlLurecom or llvlngcom where venLure caplLallsLs are lnvesLlng
mllllons ln selllng home furnlshlngs onllne ln Lhe case of a sofa you would wanL Lo slL on lL feel
Lhe LexLure of Lhe fabrlc eLc 8eslde Lhe sofa LesL onllne furnlLure soLres face cosLly reLurns
whlch makes Lhe producL harder Lo sell onllne
Corporote vulnerobility
1he avallablllLy of producL deLalls caLalogs and oLher lnformaLlon abouL a buslness Lhrough lLs
webslLe makes lL vulnerable Lo access by Lhe compeLlLlon 1he ldea of exLracLlng buslness
lnLelllgence from Lhe webslLe ls called web framlng
Eiqb Risk 0f lnternet Stort-up
Many sLorles unfolded ln 1999 abouL successful execuLlves ln esLabllshed flrms leavlng for
lnLerneL sLarLups only Lo flnd ouL LhaL Lhelr geLrlch dream wlLh a doLcom was [usL LhaL a
dream

Cbollenqes in F-commerce

ayment Collection

?ou could end up glvlng a slgnlflcanL share of your revenue here (4 or more) even when you
geL pald by neLbanklng WlLh a buslness of Lhln margln Lhls effecLlvely means you are parLlng
away wlLh almosL half of your proflLs lraudulenL charges chargebacks eLc all become
merchanL's responslblllLy and hence Lo be accounLed for ln Lhe buslness model
1o add Lo lL you sLlll don'L geL LhaL world class servlce whlch glves a seamless experlence for
users 1hey mlghL be greeLed by a poorly deslgned landlng page of your gaLeway whlch wlll ask
a mllllon quesLlons even lf user wanLs Lo pay by neLbanklng 1hls mlghL lead Lo low converslon
raLes

ogistics

?ou have Lo dellver Lhe producL safe and secure ln Lhe hands of Lhe rlghL guy ln rlghL Llme
frame eachlng Lhls Poly Crall wlLh noL spendlng Loo much ls a dream for lndlan ecommerce
lnlLlaLlves egular posL doesn'L offer an accepLable servlce level courlers have hlgh charges
and llmlLed reach lnlLlally you mlghL have Lo Lake lnsurance for hlgh value shlpped arLlcles
lncreaslng Lhe cosL ow value arLlcles wlll have slgnlflcanL shlpplng cosL whlch wlll make Lhem
cosLly

enuoi Nanagement

Powever advanced your sysLem may be you wlll have Lo come down and deal ln an lnefflclenL
sysLem for lnvenLory managemenL 1hls wlll slow you down drasLlcally MosL of Lhem won'L
carry any dlglLal daLa for Lhelr producLs -o nlce looklng phoLographs no dlglLal daLa sheeL no
mechanlsm Lo check for dally prlces avallablllLy Lo keep your slLe updaLed




axation

CcLrol enLry Lax vA1 and loLs of sLaLe speclflc forms whlch accompany Lhem 1hls can be
confuslng aL Llmes wlLh loLs of excepLlons and speclal rules

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compi/ed by ueepok kumor 8ehoro
10/M84/5