Unit 3 : Web commerce module notes

ELECTRIC MARKET PLACE

An electronic marketplace (e-marketplace) is a digital platform connecting multiple buyers and sellers to conduct transactions, exchange information, and collaborate online for goods and services. These platforms, such as Amazon or eBay, host various vendors and serve as a single point of access for them to find customers and for buyers to find products. 

FEATURES

Wide product selection

: Buyers can find a diverse range of products from various sellers in one location

Price comparison

: The platform offers real-time price comparison across different vendors, allowing buyers to find the best deals. 

Search and filtering

: Advanced search functions with filters help buyers quickly locate the specific items they need. 

Reviews and ratings

: User-generated content like reviews and ratings build trust and help buyers make informed decisions. 

Convenient shopping

: A one-stop shopping experience simplifies the process of buying multiple items from different sellers.

ADVERTISING 

Advertising is the paid promotion of a product, service, or idea to a target audience, using various media such as print, television, and digital platforms.

 Its primary goal is to influence the behavior of the audience, whether by increasing sales, building brand awareness, encouraging a specific action, or enhancing reputation.

 Through strategic messaging and media placement, advertising aims to capture attention, educate consumers about benefits, foster desire, and ultimately persuade people to purchase, interact with, or support the advertised offering

ONLINE MARKETING

Online marketing, also known as digital marketing or internet marketing, is the practice of using digital channels and technologies to promote products, services, and brands to a target audience.

FEATURES

1.Global Reach

Unlike traditional marketing, online marketing allows businesses to reach a global audience, expanding their market presence and potential customer base with minimal geographical barriers. 

2.Cost-Effectiveness:

Digital marketing strategies can be more affordable than traditional methods, with lower costs for advertising and campaign execution, making it accessible for businesses of all sizes. 

3.Targeted Advertising:

Businesses can precisely target specific audiences based on demographics, interests, online behavior, and location, ensuring that marketing messages reach the most relevant potential customers. 

4.Rich Media:

The ability to use text, images, audio, and video provides a creative and expressive way to convey marketing messages across various digital platforms. 

5.Speed:

Messaging and campaigns can be delivered quickly, allowing for immediate engagement with customers and a faster return on investment

PURCHASE ONLINE

An online purchase is the act of buying goods or services over the internet by visiting websites or using mobile apps, rather than in a physical store.

HANDLING MONEY ON NET

Handling money on the internet involves using various online and digital platforms to manage funds, including Internet Banking for traditional banking tasks like transfers and bill payments, digital wallets (like Google Pay or Paytm) for quick peer-to-peer (P2P) payments and shopping, and UPI (Unified Payments Interface) for instant transactions using virtual payment addresses or QR codes. 

For secure transactions, always use a secure internet connection, strong passwords, and enable two-factor authentication. 

ELECTRIC PAYMENT SYSTEM

An electronic payment system (EPS) facilitates financial transactions electronically, eliminating the need for cash or checks by transferring funds between parties through digital channels like mobile apps, online banking, or payment terminals.

 Common examples include credit/debit card payments, digital wallets, bank transfers, and cryptocurrencies, which offer speed, security, and convenience for both consumers and businesses

Types of Electronic Payment Systems

👉Credit and Debit Cards: 

Widely used for in-person and online purchases. 

👉Digital Wallets:

 Mobile applications that store payment information for quick, contactless transactions (e.g., Apple Pay, Google Wallet). 

👉Bank Transfers: 

Direct electronic movement of funds between bank accounts. 

👉Mobile Payment Apps:

 Apps like Venmo that allow direct money transfers between individuals. 

👉Cryptocurrencies:

 Digital currencies that enable decentralized, borderless transactions. 

👉Online Payment Gateways:

 Platforms that facilitate secure online payments for e-commerce businesses. 

Benefits 

Convenience: Easy and accessible payments anytime, anywhere.

Speed: Faster transaction processing compared to traditional methods.

Security: Enhanced security through encryption and authentication protocols.

Cost-Effectiveness: Reduced costs associated with handling physical cash and paper-based payments.

CREDIT CARD

a small plastic card that allows somebody to get goods or services without using money. You usually receive a bill once a month for what you have bought.

ELECTRONIC CHEQUE

An electronic check is an electronic version of the conventional paper check.

FEATURES

Faster Processing

: E-cheques are processed much faster than paper cheques, often clearing within one business day. 

Cost-Effective

: Eliminates costs associated with printing, mailing, and physical handling of paper cheques. 

Reduced Paper wastage

: Contributes to environmental benefits by reducing the need for paper and printing. 

Electronic Data Interchange (EDI) is the automated, computer-to-computer exchange of standard business documents, such as purchase orders and invoices, between trading parSystem

The 4 Core Components of an EDI System

1. EDI Translator

Converts business data from your system into standard EDI formats – and back again. 

2. EDI Mapping Tables

Define how data should be translated between  internal system and  partners’. These mappings tell the translator where to find and place each data point – so information ends up in the right place, every time.

3. Secure Transaction Network

Enables  to send and receive EDI documents over a reliable network. This ensures fast delivery, traceability, and data protection.

4. Support and Maintenance Services 

EDI standards and partner requirements evolve. A managed EDI provider like TrueCommerce offers ongoing updates, proactive monitoring, and technical supports.

Key Business Applications
EDI is applied across various functions and industries: 

• Supply Chain Management:Facilitates efficient material management in manufacturing and inventory replenishment in retail. 
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• Financial Services:Streamlines the processing of invoices, payments, and other financial documents, as seen with Electronic Fund Transfers (EFTs). 
• Logistics and Shipping:Automates the exchange of shipping notices and other crucial logistics information. 
• Healthcare:Improves efficiency by automating processes related to claims, billing, and other critical documents. 
• E-commerce:Helps reduce waste and improve operations by streamlining order fulfillment and inventory management.