E-Commerce - Shahin Sheikh

1
Title of the Project

E-COMMERCE
Class
B.Com final year, Sem- VIth
Project report submitted to
Royal Institute of Management and

Advanced Studies
Signature (Guide):
Signature (Student):
--------------------------------------------------------------------------1
-----------------Prepare by Shahin Sheikh, B.Com.(CA) VITh Sem
2
Name of the Guide: Prof. Nanalal Nagar
Name of Student: Shahin Sheikh

Students Roll No: 13133971
Declaration of the Student
I Shahin Sheikh D/o Sh. Salim Sheikh certify that the

project report entitled E- Commerce prepared by me is my
personal and authentic work under the guidance of Prof.
Nanalal Nagar.
Date :
Signature :
Place :Ratlam
Name : Shahin Sheikh

Class : B.Com VI th Sem
Roll No.:13133971
Mob.No.: 9111730990
--------------------------------------------------------------------------2
Guide Declaration
I certify that the project report entitled E-Commerce

has been prepared by Shahin Sheikh Class B.Com. VI Sem
under my supervision and bears the result of her original
work.
Date :
Signature :
Place :
Name : Prof. Nanalal Nagar

Designation : Asst.Professor
College: Royal College,
--------------------------------------------------------------------------3
Acknowledgement
I Shahin Shaikh Student of B.Com final year great fully

acknowledge the valuable contribution of various people
related to my project report.
I my deepest regard & gratitude to our HOD Prof Amit
Sharma. Hearty & sincere thanks to my guide Prof. Nanalal
Nagar, who is helping and guiding me.
The Support of entire staff of the institute where I have
worked has helped me a lot in growing in reason &
understanding. So, I shall like to pay my special thanks to the
staff member of Swayed Institution.
--------------------------------------------------------------------------4
Shahin Sheikh
B.Com VIth Sem
Index
S.No
Contents
Page
.
1
2
Project Title E- Commerce

Qualification/ Higher Education
No.
6
10
3
4
5
6
7
8
9
10
11
required
Procedure of Management
Management of Departmental Store
Existing problems
Solution for above problem
Future challenges and their solution
Future aspects of Business
Experience of the Student
Guidance of the Guide
Result ( I sem to V sem )
11
17
21
24
26
27
28
30
30
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Introduction
Learn how to put up and start your E-Commerce

Business. We made it simpler, faster and cheaper so that
you can start your business right away! Opening an Ecommerce portal is as easy as choosing a value meal in
your favorite restaurant:
WHY I SHOULD CHOOSE E-COMMERCE BUSINESS

- We
have been in the industry for over 7 years and counting
- We make it easy to setup an E-commerce business for

OFWs and non-OFWs
--------------------------------------------------------------------------6
- Our dedicated Computer Technicians are TESDA

certified
- Our I-Cafe package is the lowest in the market while

assuring you that the quality of our computers are not
compromise
- We are here not just to sell computers but to help you
start and setup your Internet Caf
- We provide free training for your staff or "bantay"
- All transactions are guaranteed to be successful.
Check our actual setup here (new window will open)
- The only Internet Caf setup that lets you access your
server wherever you maybe as if you are sitting infront of
it!
- Managed by seasoned professionals with extensive
knowledge
and
background
in
computers.
--------------------------------------------------------------------------7
Defination
Electronic commerce, commonly written as e-commerce, is
the trading or facilitation of trading in products or services using
computer networks, such as the Internet. Electronic commerce
draws on technologies such as mobile commerce, electronic funds
transfer, supply chain management, Internet marketing, online
transaction
processing, inventory
management
systems,
and
automated data collection systems. Modern electronic commerce

typically uses the World Wide Web for at least one part of the
transaction's life cycle, although it may also use other technologies
such as e-mail.
E-commerce businesses may employ some or all of the following:
Online shopping web sites for retail sales direct to consumers
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9
Providing or participating in online marketplaces, which
process third-party business-to-consumer or consumer-toconsumer sales
Business-to-business buying and selling
Gathering and using demographic data through web contacts

and social media
Business-to-business electronic data interchange
Marketing to prospective and established customers by e-mail

or fax (for example, with newsletters)
Engaging in pretail for launching new products and services
For a long time, companies had been troubled by the gap

between the benefits which supply chain technology has and
the solutions to deliver those benefits. However, the
emergence of e-commerce has provided a more practical and
effective way of delivering the benefits of the new supply
chain technologies.
E-commerce has the capability to integrate all inter-company

and intra-company functions, meaning that the three flows
(physical flow, financial flow and information flow) of the
supply chain could be also affected by e-commerce. The
affections on physical flows improved the way of product and
inventory movement level for companies. For the information
flows, e-commerce optimised the capacity of information
--------------------------------------------------------------------------9
10
processing than companies used to have, and for the financial
flows, e-commerce allows companies to have more efficient
payment and settlement solutions.
In addition, e-commerce has a more sophisticated level of

impact on supply chains: Firstly, the performance gap will be
eliminated since companies can identify gaps between
different levels of supply chains by electronic means of
solutions; Secondly, as a result of e-commerce emergence,
new capabilities such implementing ERP systems have
helped companies to manage operations with customers and
suppliers. Yet these new capabilities are still not fully
exploited. Thirdly, technology companies would keep
investing on new e-commerce software solutions as they are
expecting investment return. Fourthly, e-commerce would
help to solve many aspects of issues that companies may feel
difficult to cope with, such as political barriers or crosscountry changes. Finally, e-commerce provides companies a
more efficient and effective way to collaborate with each
other within the supply chain.
PROJECT COST/CAPITAL INVESTMENT

S.No
Description
Amount Rs.
1
Preliminary & Preoperative Expenses
1000
--------------------------------------------------------------------------10
11
2
3
Fixed Capital
Working Capital for 1 month(s)
Total Project Cost
101000
15700
117700
_______________________________________________
Qualification/Higher qualification required

No special education required for handling ecommerce. Software and hardware knowledge is must.
So B.Com with computer Application is sufficient for
handling e-commerce.
--------------------------------------------------------------------------11
12
Procedure of Management
One of the most popular activities on the Web is shopping.
It has much allure in it you can shop at your leisure,
anytime, and in your pajamas. Literally anyone can have
their pages built to display their specific goods and
services.
History of ecommerce dates back to the invention of the
very old notion of "sell and buy", electricity, cables,
computers, modems, and the Internet. Ecommerce became
possible in 1991 when the Internet was opened to
commercial use. Since that date thousands of businesses
have taken up residence at web sites.
At first, the term ecommerce meant the process of
execution of commercial transactions electronically with
the help of the leading technologies such as Electronic Data
Interchange (EDI) and Electronic Funds Transfer (EFT)
which gave an opportunity for users to exchange business
information and do electronic transactions. The ability to
use these technologies appeared in the late 1970s and
--------------------------------------------------------------------------12
13
allowed business companies and organizations to send

commercial documentation electronically.
Although the Internet began to advance in popularity
among the general public in 1994, it took approximately
four years to develop the security protocols (for example,
HTTP) and DSL which allowed rapid access and a
persistent connection to the Internet. In 2000 a great
number of business companies in the United States and
Western Europe represented their services in the World
Wide Web. At this time the meaning of the word
ecommerce was changed. People began to define the term
ecommerce as the process of purchasing of available goods
and services over the Internet using secure connections and
electronic payment services. Although the dot-com collapse
in 2000 led to unfortunate results and many of ecommerce
companies disappeared, the "brick and mortar" retailers
recognized the advantages of electronic commerce and
began to add such capabilities to their web sites (e.g., after
the online grocery store Webvan came to ruin, two
supermarket chains, Albertsons and Safeway, began to use
ecommerce to enable their customers to buy groceries
--------------------------------------------------------------------------13
14
online). By the end of 2001, the largest form of ecommerce,

Business-to-Business (B2B) model, had around $700
billion in transactions.
Along with the e-commerce and its unique charm that has
appeared gradually, virtual enterprise, virtual bank, network
marketing, online shopping, payment and advertising, such
this new vocabulary which is unheard-of and now has
become as familiar to people. This reflects that the ecommerce has huge impact on the economy and society
from the other side. For instance, B2B is a rapidly growing
business in the world that leads to lower cost and then
improves the economic efficiency and also bring along the
growth of employment.
To understand how the e-commerce has affected the society
and economy, this article will mention three issues below:
1. The e-commerce has changed the relative importance of
time, but as the pillars of indicator of the countrys
economic state that the importance of time should not be
ignored.
--------------------------------------------------------------------------14
15
2. The e-commerce offers the consumer or enterprise

various information they need, making information into
total transparency, will force enterprise no longer is able to
use the mode of space or advertisement to raise their
competitive edge. Moreover, in theory, perfect competition
between the consumer sovereignty and industry will
maximize social welfare.
3. In fact, during the economic activity in the past, large
enterprise
frequently
has
advantage
of
information
resource, and thus at the expense of consumers. Nowadays,

the transparent and real-time information protects the rights
of consumers, because the consumers can use internet to
pick out the portfolio to the benefit of themselves. The
competitiveness of enterprises will be much more obvious
than before, consequently, social welfare would be
improved by the development of the e-commerce.
4. The new economy led by the e-commerce change
humanistic spirit as well, but above all, is the employee
loyalty. Due to the market with competition, the employees
level of professionalism becomes the crucial for enterprise
in the niche market. The enterprises must pay attention to
--------------------------------------------------------------------------15
16
how to build up the enterprises inner culture and a set of

interactive mechanisms and it is the prime problem for
them. Furthermore, though the mode of e-commerce
decrease the information cost and transaction cost,
however, its development also makes human being are
overly computer literate. In hence, emphasized more
humanistic attitude to work is another project for enterprise
to development. Life is the root of all and high technology
are merely an assistive tool to support our quality of life.
The e-commerce is not a kind of new industry, but it is
creating a new economic model. Most of people agree that
the e-commerce indeed to be important and significant for
economic society in the future, but actually that is a bit of
clueless feeling at the beginning, this problem is exactly
prove the e-commerce is a sort of incorporeal revolution.
Generally speaking, as a type of business active procedure,
the e-commerce is going to leading an unprecedented
revolution in the world, the influence of this model far
exceeded the commercial affair itself. Except the mentioned
above, in the area of law, education, culture and also policy,
the e-commerce will continue that rise in impact. The e--------------------------------------------------------------------------16
17
commerce is truly to take human beings into the

information society.
--------------------------------------------------------------------------17
18
Management of E-commerce
According to all available data, ecommerce sales continued
to grow in the next few years and, by the end of 2007,
ecommerce sales accounted for 3.4 percent of total sales.
Ecommerce has a great deal of advantages over "brick and
mortar" stores and mail order catalogs. Consumers can
easily search through a large database of products and
services. They can see actual prices, build an order over
several days and email it as a "wish list" hoping that
someone will pay for their selected goods. Customers can
compare prices with a click of the mouse and buy the
selected product at best prices.
Online vendors, in their turn, also get distinct advantages.
The web and its search engines provide a way to be found
by customers without expensive advertising campaign.
Even small online shops can reach global markets. Web
technology also allows to track customer preferences and to
deliver individually-tailored marketing.
--------------------------------------------------------------------------18
19
History of ecommerce is unthinkable without Amazon and

Ebay which were among the first Internet companies to
allow electronic transactions. Thanks to their founders we
now have a handsome ecommerce sector and enjoy the
buying and selling advantages of the Internet. Currently
there are 5 largest and most famous worldwide Internet
retailers: Amazon, Dell, Staples, Office Depot and Hewlett
Packard. According to statistics, the most popular
categories of products sold in the World Wide Web are
music, books, computers, office supplies and other
consumer electronics.
Amazon.com, Inc. is one of the most famous ecommerce
companies and is located in Seattle, Washington (USA). It
was founded in 1994 by Jeff Bezos and was one of the first
American ecommerce companies to sell products over the
Internet. After the dot-com collapse Amazon lost its
position as a successful business model, however, in 2003
the company made its first annual profit which was the first
step to the further development.
--------------------------------------------------------------------------19
20
At the outset Amazon.com was considered as an online

bookstore, but in time it extended a variety of goods by
adding electronics, software, DVDs, video games, music
CDs, MP3s, apparel, footwear, health products, etc. The
original name of the company was Cadabra.com, but
shortly after it become popular in the Internet Bezos
decided to rename his business "Amazon" after the world's
most voluminous river. In 1999 Jeff Bezos was entitled as
the Person of the Year by Time Magazine in recognition of
the company's success. Although the company's main
headquarters is located in the USA, WA, Amazon has set up
separate
websites
in other
economically
developed
countries such as the United Kingdom, Canada, France,

Germany, Japan, and China. The company supports and
operates retail web sites for many famous businesses,
including Marks & Spencer, Lacoste, the NBA, Bebe
Stores, Target, etc.
Amazon is one of the first ecommerce businesses to
establish an affiliate marketing program, and nowadays the
company gets about 40% of its sales from affiliates and
third party sellers who list and sell goods on the web site. In
--------------------------------------------------------------------------20
21
2008 Amazon penetrated into the cinema and is currently

sponsoring the film "The Stolen Child" with 20th Century
Fox.
According to the research conducted in 2008, the domain
Amazon.com attracted about 615 million customers every
year. The most popular feature of the web site is the review
system, i.e. the ability for visitors to submit their reviews
and rate any product on a rating scale from one to five stars.
Amazon.com is also well-known for its clear and userfriendly advanced search facility which enables visitors to
search for keywords in the full text of many books in the
database.
One more company which has contributed much to the
process of ecommerce
development is
Dell Inc., an American
company located in Texas, which stands third in computer

sales within the industry behind Hewlett-Packard and Acer.
Launched in 1994 as a static page, Dell.com has made rapid
strides, and by the end of 1997 was the first company to
record a million dollars in online sales. The company's
unique strategy of selling goods over the World Wide Web
--------------------------------------------------------------------------21
22
with no retail outlets and no middlemen has been admired

by a lot of customers and imitated by a great number of
ecommerce businesses. The key factor of Dell's success is
that Dell.com enables customers to choose and to control,
i.e. visitors can browse the site and assemble PCs piece by
piece choosing each single component based on their
budget
and
requirements.
According
to
statistics,
approximately half of the company's profit comes from the

web site.
In 2007, Fortune magazine ranked Dell as the 34th-largest
company in the Fortune 500 list and 8th on its annual Top
20 list of the most successful and admired companies in the
USA in recognition of the company's business model.
History of ecommerce is a history of a new, virtual world
which is evolving according to the customer advantage. It is
a world which we are all building together brick by brick,
laying a secure foundation for the future generations.
-0-0-0--------------------------------------------------------------------------22
23
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24
Existing problems in marketing of E-commerce

E-commerce marketing is the practice of guiding online
shoppers to an e-commerce website and persuading them to
buy the products or services online. E-commerce marketing
can include practices like:
Search engine optimization to help a website to rank

higher in organic search engine listings
Affiliation with better-known websites through referral

marketing or banner advertising
Retention
of
current
customers
through
email
marketing
While there are many similarities between marketing an ecommerce website and marketing a brick and mortar store,
e-commerce marketing involves some unique challenges
and opportunities . Online, consumers dont feel invested in
a shopping venture the way they would if theyd gotten in
their car to visit a physical location, because visiting an ecommerce website requires no more effort than a mouse
click.
--------------------------------------------------------------------------24
25
Additionally,
e-commerce
businesses
dont
have
opportunities to draw customers in with the physical

enticements of a well-run store there is no soft music,
relaxing smell or helpful, well-dressed salesperson to help
them make their choice.
On the flipside, however, shopping online is faster, easier
and more private, which makes it very appealing to techsavvy consumers. With a fully-functioning, easy-to-use
website and effective customer engagement tools, an ecommerce website can make shoppers want to complete
their transactions online. This is financially beneficial, as ecommerce businesses require much less overhead to run
successfully.
Still, many e-commerce marketing companies use this lack
of investment in online shopping to justify high spending
on increasing traffic to the website. Often, if a marketing
firm puts thought into their e-commerce marketing strategy,
this high spending may not be necessary.
Who employs E-commerce Marketing?
All manner of retailers including clothing stores, fabric
wholesalers, furniture
manufacturers and technology
--------------------------------------------------------------------------25
26
companies employ e-commerce marketing. Sometimes,

brick and mortar retailers make conscious decisions not to
build e-commerce websites, because they want the
experience of visiting their store to be a unique, elite
experience. These retailers are often not interested in
expanding their businesses or selling for a competitive
price.
However, any other business that is interested in increasing
their sales should not only build an e-commerce website,
but put thought and effort into marketing it effectively. For
example, Door-to-Door Organics is a business that partners
with local farmers to deliver fresh, organic produce to
customers doorsteps. While fresh produce is not the first
product that comes to mind for an e-commerce website, the
usability and intuitive functionality of the website
contributes to Door-to-door Organics success .
What kinds of customers are effectively marketed to with
E-commerce Marketing?
Young, Internet-savvy consumers are the most likely to be
affected by an e-commerce marketing campaign. Older
--------------------------------------------------------------------------26
27
consumers who are not as familiar with the Internet are less
likely to make their purchases online in the first place. But
when they do, they are also less particular about the quality
of the e-commerce website.
Solution for above problems
One thing that is universally important to e-commerce
consumers is security. Because buying online necessitates
the transfer of personal information including a credit card
number and personal shipping address, it is extremely
important to ensure that your e-commerce website takes
great care with customer information. Nothing can damage
an e-commerce marketing campaign and a reputation faster
than a slew of stolen identities or other financial security
breaches.
An e-commerce marketing plan is developed by focusing
on three objectives: helping new visitors to find the
website, turning visitors into customers, and enhancing
your websites usability and after-sale marketing to
encourage repeat visitors.
Enticing visitors and converting visitors work hand in hand.
One
without
the
other
dramatically
reduces
the
--------------------------------------------------------------------------27
28
opportunities for creating new customers. A website needs

to entice new visitors to visit and then provide sufficient
incentive to turn those visitors into a buying customers.
Helping new visitors find a companys e-commerce website
is largely dependent on search engine positioning and
banner advertising. A successful e-commerce marketing
team needs to have expertise in search engine optimization,
pay-per-click marketing, social media marketing, and
display advertising to reach the top of search results.
Search engine optimization, better known as SEO, is

one of the most critical parts of e-commerce marketing. It is
based on special algorithms that analyze the instances of
specific keywords on your website. Because users navigate
the Internet through search engines like Google, these
results play a large role in the success of your website. A
good SEO campaign can position your e-commerce website
to rise to the top of the Google rankings. For example,
Googling pretty yarn brings up Dragon Tale Yarns sold
by the e-commerce branch of Earth Guild, a store based in
North Carolina, as the fourth result. Earth Guild is not a
large, well-known craft store, nor does it have a particularly
--------------------------------------------------------------------------28
29
appealing web presence. What it does have is excellent

SEO because it shows up so quickly in the search results,
it likely experiences much more traffic than its competitors.
--------------------------------------------------------------------------29
30
Future challenges and their solution of E-Commerce

We have a lot faster internet connectivity now, and we also
get much more powerful tools on websites. It makes
increase on the numbers of e-commerce fans. You may
want to learn on the advantages and disadvantages so you
can earn more benefits from there.
#1. Cost Effective The entire financial transactions will eventually become
electronic, so sooner conversion is going to be lower on
cost. It makes every transaction through e-commerce
payment a lot cheaper.
#2. Higher MarginE-commerce also enables us to move better with higher
margin for more business safety. Higher margin also means
business with more control as well as flexibility. You can
also save time from the e-commerce.
#3. Better ProductivityProductivity here means productivity for both companies
and customers. People like to find answers online because it
is faster and cheaper, and it costs a lot cheaper expense as
well for the company.
#4. Quick ComparisonE-commerce also enables you to compare price among
several providers. In the end, it leads you to smart
shopping. People can save more money while they shop.
--------------------------------------------------------------------------30
31
#5. Economy BenefitE-commerce allows us to make transaction without any

needs on stores, infrastructure investment, and other
common things we find. Companies only need well built
website and customer service.
Future aspects of Business
#1. SecurityCustomers need to be confident and trust the provider of
payment method. Sometimes, we can be tricked. Examine
on integrity and reputation of the web stores before you
decide to buy.
#2. Scalability of SystemA company definitely needs a well developed website to
support numbers of customers at a time. If your web
destination is not well enough, you better forget it.
#3. Integrity on Data and SystemCustomers need secure access all the time. In addition to it,
protection to data is also essential. Unless the transaction
can provide it, we should refuse for e-commerce.
#4. Products PeoplePeople who prefer and focus on product will not buy
online. They will want to feel, try, and sit on their new
couch and bed.
#5. Customer Service and Relation Problem-
--------------------------------------------------------------------------31
32
They sometimes forget how essential to build loyal

relationship with customers. Without loyalty from
customers, they will not survive the business.
Experience of the Student
Ive been keeping a close eye on innovation in the
ecommerce sector for more than a decade now, and it seems
to me that we're living in exciting times. We have hit some
kind of purple patch.
Why is this? Well, ecommerce has massively matured. It's

big business. Digital teams are smarter, and more agile.
As such I wanted to raise a toast to innovation by
highlighting a bunch of - hopefully inspiring - examples to
you.
But first, a massive caveat: I would severely and
mercilessly beat a few of these sites with a big best practice
--------------------------------------------------------------------------32
33
stick. There are product pages with missing information.

There are search boxes with tiny fonts. There are usability
issues galore.
Secondly, for ecommerce sites, it is all about the data. If
youre not constantly testing, measuring and refining, then
you arent doing it right. What works for one brand might
not work so well for another.
The disadvantages are not impossible to avoid. If we have
enough management on risks, we may really get a lot more
advantages from e-commerce. The advantages are surely
teasing, and we will enjoy such easy transaction these days.
Enjoy more your internet browsing and enjoy more your ecommerce activities!
--------------------------------------------------------------------------33
34
Co-operation of Guide - Very Good

Getting Award/ Reward during course- Nothing
Results ( From I sem to V sem ) :

Sr.No.
1
2
3
4
5
Class
B.Com. I Sem
B.Com. II Sem
B.Com. III Sem
B.Com. IV Sem
B.Com. V Sem
Obtained
274
318
283
300
270
Out of
500
500
500
500
500
Result (%)
Pass [54.00%]
Pass [63.00%]
Pass [56.60%]
Pass [60.00%]
Pass [54.00%]
THE END
--------------------------------------------------------------------------34

E-Commerce - Shahin Sheikh

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1

Title of the Project

Project report submitted to

Royal Institute of Management and

Name of Student: Shahin Sheikh

Declaration of the Student

I Shahin Sheikh D/o Sh. Salim Sheikh certify that the

Name : Shahin Sheikh

I certify that the project report entitled E-Commerce

Name : Prof. Nanalal Nagar

I Shahin Shaikh Student of B.Com final year great fully

Project Title E- Commerce

Learn how to put up and start your E-Commerce

WHY I SHOULD CHOOSE E-COMMERCE BUSINESS

have been in the industry for over 7 years and counting

- We make it easy to setup an E-commerce business for

- Our dedicated Computer Technicians are TESDA

- Our I-Cafe package is the lowest in the market while

automated data collection systems. Modern electronic commerce

Online shopping web sites for retail sales direct to consumers

process third-party business-to-consumer or consumer-toconsumer sales

Business-to-business buying and selling

Gathering and using demographic data through web contacts

Business-to-business electronic data interchange

Marketing to prospective and established customers by e-mail

For a long time, companies had been troubled by the gap

E-commerce has the capability to integrate all inter-company

In addition, e-commerce has a more sophisticated level of

PROJECT COST/CAPITAL INVESTMENT

Qualification/Higher qualification required

allowed business companies and organizations to send

online). By the end of 2001, the largest form of ecommerce,

2. The e-commerce offers the consumer or enterprise

resource, and thus at the expense of consumers. Nowadays,

how to build up the enterprises inner culture and a set of

commerce is truly to take human beings into the

History of ecommerce is unthinkable without Amazon and

At the outset Amazon.com was considered as an online

countries such as the United Kingdom, Canada, France,

2008 Amazon penetrated into the cinema and is currently

Dell Inc., an American

company located in Texas, which stands third in computer

with no retail outlets and no middlemen has been admired

approximately half of the company's profit comes from the

Existing problems in marketing of E-commerce

Search engine optimization to help a website to rank

Affiliation with better-known websites through referral

opportunities to draw customers in with the physical

manufacturers and technology

companies employ e-commerce marketing. Sometimes,

opportunities for creating new customers. A website needs

Search engine optimization, better known as SEO, is

appealing web presence. What it does have is excellent

Future challenges and their solution of E-Commerce

#5. Economy BenefitE-commerce allows us to make transaction without any

They sometimes forget how essential to build loyal

Why is this? Well, ecommerce has massively matured. It's

stick. There are product pages with missing information.

Co-operation of Guide - Very Good

Results ( From I sem to V sem ) :

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