E-commerce Class 10 Computer Science New Syllabus

 E-commerce Class 10 Computer Science New Syllabus

Introduction

E-Commerce basically refers to electronic transactions such as buying, selling, and exchanging goods, services, and information over computer communication networks such as the Internet. Buying and selling goods and services online with the help of the internet is known as e-commerce. It consists of electronic retailing, electronic data interchange, and electronic fund transfer. The main goal of e-commerce is to reduce cost, lower the product cycle time, faster customer response, and deliver better quality service.

In the present time, E-Commerce is an emerging concept which describes the process of buying and selling or exchanging of products, services and information through the Internet. In Nepal too, there are many popular E-Commerce sites which are providing much online selling and buying services. Nowadays, we can order food from our Mobile phones or buy clothes or even sell our old television through the Internet. It is a modern business methodology that addresses the different drawbacks of traditional commerce. So, E-Commerce refers to the paperless exchange of business information using different information systems. 

Advantages of E-Commerce

1.      Faster buying/selling procedure, as well as easy to find products.

2.      Buying/selling anytime and anywhere

3.      As there are no geographical limitations, can deliver service globally

4.      Does not required physical stores

5.      Low operational costs and better quality of services

6.      No need of physical company set-ups.

7.      Easy to start and manage a business. One can sell online through social media as well.

8.      Customers can review the comments and compare in different sites without moving around physically.

Disadvantages of E-commerce

1.      Security issues.

2.      Site crash.

3.      No possibility of tried and tested product.

4.      Late delivery.

5.      Some products are difficult to buy online.

6.      Lack of privacy.

7.      Tax issues.

8.      Legal issues.

The technology used in E-Commerce

E-commerce is driven by Internet Technology. It’s a modern business concept and uses many different technologies. Some of them include:

1.      E-mail,

2.      Fax

3.      Online catalogs and shopping carts

4.      Electronic Data Interchange (EDI)

5.      Online Payment Gateway

6.      Online Security Tools

7.      Information sharing and distribution Protocol

8.      And different Web services

Types of E-Commerce

E-commerce can be run in different models. Here, we discuss the three basic types of

E-Commerce

1.  Business-to-Consumer (B2C)

Business-to-consumer

The most common type of E-Commerce is Business-to-Consumer.  B2C establishes the electronic business relationships between a business organization (merchant) and final consumers. It corresponds to the retail section of e-commerce, where traditional retail trade normally operates.

In the B2C model business E-Commerce website is the main platform where all the business transactions take place between a business organization and consumer directly. Amazon. com is a good example of B2C e-commerce.

2.  Business-to-Business (B2B)

Business-to-Business

Business-to-Business (B2B) e-commerce is conducted between companies. Individual customers cannot buy from this type of e-commerce. Producers and wholesalers typically operate with this type of electronic commerce.

In this model, the product is first sold to a wholesaler who then sells the product to the final customer. As an example, a wholesaler places an order from a company's website and after receiving the consignment, sells the end product to a final customer who comes to buy the product at the wholesaler's retail outlet. Alibaba.com is a good example of B2B e-commerce.

3.  Consumer-to-Consumer (C2C)

The Consumer-to-Consumer (C2C) type of e-commerce is conducted between consumers. Generally, these transactions are conducted through a third party, which provides the online platform where the transactions are actually carried out. Hamrobazaar.com is a good example of a C2C website in Nepal.

Website following C2C business model helps a consumer to sell their assets like residential property, cars, motorcycles etc. or rent a room by publishing their information on the website. The website may or may not charge the consumer for its services. Another consumer may opt to buy the product of the first customer by viewing the post/advertisement on the website.

4. Consumer to Business (C2B)

Consumer-to-business (C2B) is a business model in which consumers (individuals) create value and businesses consume that value. For example, when a consumer writes reviews or when a consumer gives a useful idea for new product development then that consumer is creating value for the business if the business adopts the input. In the C2B model, a reverse auction or demand collection model enables buyers to name or demand their own price, which is often binding, for a specific good or service. Inside of a consumer-to-business market, the roles involved in the transaction must be established and the consumer must offer something of value to the business.

Importance of E-commerce

1.      It helps to choose from a wide variety of products

2.      It helps to get the goods and services in low cost as compared to traditional shopping

3.      It provides exciting deals and offers

4.      It maintains transparency in the business.

5.      It helps to create more employment opportunities.

6.      It enhances digital products and services production.

7.      It needs low maintenance cost.

Traditional Commerce vs. E-Commerce

As we know, E-commerce is completely worked in a digital and an online mode whereas traditional commerce is done offline and through in person or face to face.

Similarities

1.   Both want to make a profit.

2.   Both aim to deliver a high-quality product or service.

3.   Both want to serve a large number of customers.

4.   Both try to quickly deliver products and services.

Differences Between E-commerce and Traditional Commerce

E-commerce	Traditional Commerce
E-commerce is a form of online business where a person can buy and sell products and services by using electronic devices such as laptops, mobile, etc.	Buying and selling are done with face-to-face dealing.
It is done to save time and money	It is ancient and used where a digital network is not accessible.
It is available 24x7	It can be done in a limited time.
Inspecting a product before purchasing is not possible.	Inspecting a product before purchasing is possible.
More business can be done easily.	Difficult to expand the business.

 

E-Commerce practices in Nepal

Now in Nepal too, you can sell and buy any type of goods and services such as mobile phones, laptops, air tickets, pay electricity bills through online services. There are many popular Nepali online shopping sites such as daraz.com.np, nepbay.com, BhatBhatenionline.com, Metrotarkari.com, kinmel.com.np, hamrobazaar.com, muncha.com, and many more. You can buy online and pay through a different local payment gateway like e-Sewa, Khalti or cash on delivery mode.

Below are some of the E-commerce trends in Nepal

1.      Practice of sending gifts

2.      Trending free classifieds and online market web portals

3.      Showcasing over internet/online shopping

4.      Get the latest Products from International Shopping portals

5.      Social Media Selling Platforms

Limitations of E-Commerce

Though E-Commerce has many benefits, it also has some limitations which are listed below:

1.   Lack of personal touch. We cannot touch the goods physically

2.   We cannot do any transaction without Internet access device. So, it is heavily dependent on Internet technologies

3.   Not all goods can be purchased online

4.   Easy to set up so anyone can start e-commerce site. We need to be careful about the quality of product and service delivery

5.   Security issues of customer’s information

6.   Not everyone is connected to the Internet so we cannot accommodate all the people

7.   Technical failures can cause unpredictable effects on the total processes.

M-Commerce

M-commerce

M-commerce (Mobile commerce) is the extended version of e-commerce. It refers to the process of buying and selling of goods and services through wireless handheld devices such as smartphones, tablets or personal digital assistants (PDAs). It is also known as next-generation e-commerce.

This includes purchases on websites or apps, paying for travel, hotel, events or bills or any type of commerce that is conducted using a mobile device.

Typical examples of M-commerce are

1.      Purchasing airline tickets

2.      Purchasing movie tickets

3.      Restaurant/Hotel booking and reservation

4.      Top-Up Charges

5.      Balance Enquiry

6.      Utility Payment

7.      Fund Transfer

Applications of M-commerce

Other than the straightforward m-commerce transactions of buying and selling of goods and services, they have so many applications. Let us take a look at a few examples,

1. Mobile Banking: Using a mobile website or application to perform all your banking functions. It is one step ahead of online banking and has become commonplace these days. For example, in Nigeria, the majority of banking transactions happen on mobile phones.
2. Mobile Ticketing and Booking: Making bookings and receiving your tickets on the mobile. The digital ticket or boarding pass is sent directly to your phone after you make the payment from it. Even in India now IRTC and other services provide m-ticketing services.
3. E-bills: This includes mobile vouchers, mobile coupons to be redeemed and even loyalty points or cards system.
4. Auctions: Online auctions have now been developed to be made available via mobile phones as well.
5. Entertainment: M-commerce can be used for mobile entertainment as well. We can watch movies and shows on an online platform such as Netflix, Amazon Prime, etc.

 

 

Advantages of M-commerce

1.    It creates a global customer base.

As long as an individual owns a mobile device and a cellular or internet connection, they are a potential customer for any e-commerce platform. People are able to shop from wherever they happen to be with m-commerce in place. That makes it convenient for businesses because they are providing information to the consumer wherever they happen to be. It is convenient for the customer because they can purchase items on a schedule that works for them. For buyers and sellers, it is easier to reach one other with this platform.

2. It opens up rural markets.

M-commerce eliminates the need to stand in a long line at a physical store location. For rural markets, m-commerce also removes the need to travel to a physical location to purchase something. These consumers can quickly purchase what they need, then have the items delivered directly to their home or business. Not only does this open up new rural markets, it is an opportunity to examine your current business model and seek out new opportunities.

3. It creates more access to user data.

Apps have revolutionized how the mobile commerce world contacts future customers. Flurry, which is an app analytics provider, discovered that 86% of all mobile activity usage comes from apps. Over 2 hours of time spent per day on a mobile device is spent on an app. By introducing an app to the m-commerce market, a business is able to gain access to more user data. That makes it easier to market future goods or services to each person, creating more opportunities for repetitive sales.

4. It provides easier inventory management.

When you have a m-commerce presence, then you can still maintain lower inventory levels for the goods you are selling. You still won’t face backorder situations because you can always know what is available when a product database is present. You can also source specific items only when purchased from a mobile device, which further reduces the need to carry certain types of inventory.

5. It allows you to scale a business very quickly.

When you have an m-commerce presence, then you can quickly scale your business to meet current needs. You can add money to your advertising budget when you see a campaign is performing well. You don’t need to worry about adding new space or inventory for shoppers because everything is available online. If you use drop-shipping, then you don’t even need to produce new products or services for your store, which allows you to quickly grow.

6. It provides a platform for large order processing.

M-commerce allows you to accept multiple orders at once throughout the day. You’re not forced to funnel customers through a checkout line for a physical transaction that takes time. A customer can log onto your platform, find what they want, and then check out at a time which is convenient for them. If the platform is operating as it should, then the wait time is measured in fractions of seconds.

7. It is easier to remarket to customers with m-commerce.

If a customer is shopping at a physical store and they change their mind about something, they’ll put the product down and walk away. You know they were interested in that item. A marketing or advertising push might convince them to purchase it. There just isn’t a way to contact that customer again. On m-commerce platforms, you do have that ability. You can remarket items abandoned in a cart or discovered during product searches to bring people back to your business.

8. It offers a platform that encourages impulse purchases.

M-commerce provides an experience that is similar to that of standing in a checkout line. Consumers look at pictures, information, and even the emotions around them as they wait, which creates the urge to make an impulsive purchase. That is why drinks and candy snacks are placed near the counter. That is also why you’ll find an emphasis on product photography, content which stirs emotions, and vibrant colors being used to present items to consumers. As an added advantage, m-commerce platforms can add a countdown timer or show a limited quantity of items to encourage a sale through scarcity too.

 

  9. Valuable customer data

In a traditional retail setting, a customer will walk into a store, make a purchase, and leave. We have no idea why they made the purchase or chose a specific product. Did they compare their purchases with other options? What factors influenced their choice? Was it the product’s price or unique features?

With mobile commerce, you can get answers to these and more questions. That’s because mobile analytics allow tracking consumer data from the moment of product discovery all the way to purchase. All the while, you can gain valuable knowledge about signals of purchase intent and learn more about the habits and preferences of your target audience.

10. Better customer experience

Companies are fighting for the attention of customers. The increased competition means that delivering a unique and personalized customer experience is more important than ever. The increasing importance of experiences is one of the most important trends in mobile development.

Disadvantages of M-Commerce

 

1. It requires technology access.

If a customer doesn’t have a mobile device, then they aren’t going to be part of the m-commerce experience a business provides. Even if a mobile device is owned, it must be capable of retrieving company information, providing product or service information, and transmitting a sales order for it to be a successful experience. If an app is used, these must be downloaded and upgraded to provide information access.

2. It offers a lack of personal touch.

Despite inviting graphics, in-depth product descriptions, and consumer discounts, brands must be careful when using mobile commerce. The first impression of a mobile website or app tends to become the foundation of customer reviews that are left. These reviews last forever, which means companies need to get that first impression right as often as possible. Because there is a lack of personal touch, there are fewer opportunities to reverse an initially poor experience.

3. It requires the app or website to be working.

If you’re trying to sell something through m-commerce, then your uptime percentage is going to be a key metric. If your platform crashes or cannot be accessed for some reason, then you’re not going to be generating any sales. Even something as simple as a temporary surge in traffic can be enough to take some platforms down. You must plan for the worst-case scenario here, then be ready to implement your measures immediately should something happen.

4. It requires faith in the product.

Even with augmented reality technologies hitting the m-commerce sphere, consumers are not able to try most products before purchasing them on this platform. Consumers might receive the product, discover it is not right for them, and then not have a way to return it for a meaningful refund or replacement item. Unless there is a clear, concise, and valuable return option (or a try before you buy option) available to consumers, some products and services will see potentially lower returns than they do with in-person sales.

5. It is a highly competitive marketplace.

Because m-commerce creates a global marketplace, the amount of competition you have for your products or services is enormous. There’s a good chance that you’ll be competing with several businesses around the world who do the exact same thing you do. Although you might be the only provider in your community, the build-up of sales from mobile commerce can require a lot of time. Consumers must find your quality through the white noise of everyone else saying they can do the same thing.

6. It must have fast services available at all times.

The amount of time that a consumer is willing to wait on a purchase from an m-commerce perspective is very small. Some consumers will stop using an app or website if it fails to load the information they need in 2 seconds. At best, you have an 8-second window to close a sale for most customers on this platform. If that doesn’t happen, then your competition is going to get the revenues that were initially yours. You must be vigilant as a business to maintain your mobile platform to avoid issues that could cost some business.

7. It requires you to ship products to consumers.

You’re forced to put your faith into third-party shipping companies when you sell products over an m-commerce platform. If the shipping company fails to deliver as they should, then the consumer is going to blame your business, not the shipper. Even digital products, delivered by email, are at the mercy of others to ensure a consistent delivery experience. Your solutions must be fully transparent to customers, so they can choose which options are right for their specific needs.

Online Payment

After purchasing something from the buyer, we need to pay money. Online payment or E-payment is one of the major components of an e-commerce transaction. It refers to the payment for buying goods or services through the Internet using different online payment gateway.

 

Likewise, different forms of e-payment in Nepal include

1.      Credit Cards (introduced by Nabil Bank in 1990)

2.      Debit Cards (all commercial banks)

3.      Automated teller machines (introduced by Himalayan Bank Ltd. in 1995)

4.      Electronic fund transfers at points of sale (EFTPOS)

5.      Internet banking (introduced by Kumari Bank Ltd. in 2002)

6.      Mobile banking; (introduced by Laxmi Bank Ltd. in 2004).

7.      Digital Wallet such as e-sewa, Khalti etc.

8.      Cash on Delivery (CoD) – if you don’t have any online payment system then you can pay cash when you receive the product from the delivery person.

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