E Business Report Vinoj

Chapter 1
Introduction
The business is an area of great opportunity and the organization must need
strong capabilities to survive in this competitive world. e-business provides an
Institute of Management in Kerala
excellent opportunity for organization to manage information transparently and to

create an efficient integrated application that helps the organization to excel in their
respective field. e-business helps the organization to serve the customers differentiate
supply chains, integrating sales chains and nurture relationship
1.1 SCOPE OF THE STUDY

The scope of the study is limited within e-Bay; the selling system of the
organization was selected for the detailed study. The study helps to make a
comparison of theory and practice. The main aim of the study is to familiarize with
procedures and benefit of the selling system in e-Bay.
1.2 OBJECTIVES OF THE STUDY
To fulfil the requirements of the curriculum.

To get a clear picture about the e-business in a practical way
To study about the functioning of e-registration in the organization.
1.3 METHODOLOGY
Methodology represents the various methods used for the collection
of data. Since getting a direct interaction with the officials of e-Bay is out of scope of
my project, the methodology used is collecting data directly from the company
website and studying the facilities provided and various functions of e-Bay.
The provided details are based on

Data collected from annual report.

Data collected from company website.
Data collected from catalogues ,brochures, internet etc
I.4.
LIMITATIONS OF THE STUDY
Time constraint
Getting details about the complete procedure of cash transaction was not
possible due to security reasons.
1.5
CHAPTERISATION
Chapter 1- Introduction deals with the Introduction, scope of the study, objectives
of the study, methodology, limitation and chapterisation of the study.
Chapter 2- E-business- Theoretical Perspective is concerned with the e-business in
Theoretical Perspective
Chapter 3- Company Profile deals with the Company profile
Chapter 4- Online Selling through ebay deals with a detailed view of online selling
Chapter 5- Findings, Conclusions and Suggestions describes the outcomes of the
study
Chapter-2
E-business: Theoretical Perspective

E-business involves business processes spanning the entire value chain:
electronic purchasing and supply chain management, processing orders electronically,
handling customer service, and cooperating with business partners. Special technical
standards for e-business facilitate the exchange of data between companies. ebusiness software solutions allow the integration of intra and inter firm business
processes. e-business can be conducted using the Web, the Internet, intranets,
extranets or some combination of these.
Electronic Business, or "e-business", may be defined broadly as any
business process that relies on an automated information system. Today, this is mostly
done with Web-based technologies. Electronic business methods enable companies to
link their internal and external data processing systems more efficiently and flexibly,
to work more closely with suppliers and partners, and to better satisfy the needs and
expectations of their customers.
E-business can be defined from the following perspectives:

Communication From a communication perspective e-business is the
delivery of goods, services, information or payments over computer networks or by
any other electronic means.
Commercial (trading) From a commercial perspective e-business
provides the capability of buying and selling products, services and information on
the Internet and via other online services.
Business process From a business process perspective, e-business is doing
business electronically by completing business processes over electronic networks.
Service From the service perspective, e-business is a tool that addresses
the desire of government, firms, consumer and management to cut service costs while
improving the quality of customer service and increasing the speed of service
delivery.
Learning From the learning perspective, e-business is an enabler of online
training and education in schools, universities, and other organizations.
Collaborative From a collaborative perspective, e-business is the
framework of inter and intra organizational collaboration.
Community From a community perspective, e-business provides a

gathering place for community members to learn transact and collaborate.
2.1 EVOLUTION OF E-BUSINESS

The meaning of electronic commerce has changed over the last 30 years.
Originally, electronic commerce meant the facilitation of commercial transactions
electronically, using technology such as Electronic Data Interchange (EDI) and
Electronic Funds Transfer (EFT). These were both introduced in the late 1970s,
allowing businesses to send commercial documents like purchase orders or invoices
electronically. The growth and acceptance of credit cards, automated teller machines
(ATM) and telephone banking in the 1980s were also forms of electronic commerce.
Another form of e-commerce was the airline reservation system typified by Sabre in
the USA and Travicom in the UK. Online shopping was invented in the UK in 1979
by Michael Aldrich and during the 1980s it was used extensively particularly by auto
manufacturers such as Ford, Peugeot-Talbot, General Motors and Nissan. From the
1990s onwards, electronic commerce would additionally include enterprise resource
planning systems (ERP), data mining and data warehousing.
The earliest example of many-to-many electronic commerce in physical goods
was the Boston Computer Exchange, a marketplace for used computers launched in
1982. The first online information marketplace, including online consulting, was
likely the American Information Exchange, another pre-Internet online system
introduced in 1991.
Until 1991, commercial enterprise on the Internet was strictly prohibited.
Although the Internet became popular worldwide around 1994, it took about five
years to introduce security protocols and DSL allowing continual connection to the
Internet. And by the end of 2000, a lot of European and American business companies
offered their services through the World Wide Web. Since then people began to
associate a word "ecommerce" with the ability of purchasing various goods through
the Internet using secure protocols and electronic payment services.
2.1.1 E-BUSINESS ADVANTAGES

Some advantages that can be achieved from e-business include:
Being able to conduct business 24 x 7 x 365 - e-business systems can operate all day
every day. User physical storefront does not need to be open in order for customers
and suppliers to be doing business with you electronically.
Access the global marketplace - The Internet spans the world, and it is possible to
do business with any business or person who is connected to the Internet. Simple
local businesses such as specialist record stores are able to market and sell their
offerings internationally using e-business. This global opportunity is assisted by the
fact that, unlike traditional communications methods, users are not charged according
to the distance over which they are communicating.
Speed - Electronic communications allow messages to traverse the world almost

instantaneously. There is no need to wait weeks for a catalogue to arrive by post: that
communications delay is not a part of the Internet / e-business world.
Marketspace - The market in which web-based businesses operate is the global
market. It may not be evident to them, but many businesses are already facing
international competition from web-enabled businesses.
Opportunity to reduce costs - The Internet makes it very easy to 'shop around'
for products and services that may be cheaper or more effective than we might
otherwise settle for. It is sometimes possible to, through some online research,
identify original manufacturers for some goods - thereby bypassing
wholesalers and achieving a cheaper price.
Computer platform-independent - 'Many, if not most, computers have the
ability to communicate via the Internet independent of operating systems and

hardware. Customers are not limited by existing hardware systems' (Gascoyne
& Ozcubukcu, 1997:87).
Efficient
applications
development
environment
- 'In many respects,
applications can be more efficiently developed and distributed because the can
be built without regard to the customer's or the business partner's technology
platform. Application updates do not have to be manually installed on
computers. Rather, Internet-related technologies provide this capability
inherently through automatic deployment of software updates' (Gascoyne &

Ozcubukcu, 1997:87).
Allowing customer self service and 'customer outsourcing - People can interact
with businesses at any hour of the day that it is convenient to them, and
because these interactions are initiated by customers, the customers also
provide a lot of the data for the transaction that may otherwise need to be
entered by business staff. This means that some of the work and costs are
effectively shifted to customers; this is referred to as 'customer outsourcing.
Stepping beyond borders to a global view - Using aspects of e-business
technology can mean user business can source and use products and services
provided by other businesses in other countries. This seems obvious enough to
say, but people do not always consider the implications of e-business. For
example, in many ways it can be easier and cheaper to host and operate some
e-business activities outside Australia. Further, because many e-business
transactions involve credit cards, many businesses in Australia need to make
arrangements for accepting online payments. However a number of major
Australian banks have tended to be unhelpful laggards on this front, charging a
lot of money and making it difficult to establish these arrangements particularly for smaller businesses and/or businesses that don't fit into a
traditional-economy understanding of business. In some cases, therefore, it can
be easier and cheaper to set up arrangements which bypass this aspect of the
Australian banking system. Admittedly, this can create some grey areas for
legal and taxation purposes, but these can be dealt with. And yes these
circumstances do have implications for Australia's national competitiveness
and the competitiveness of our industries and businesses.
2.1.2 E-COMMERCE DISADVANTAGES AND CONSTRAINTS

Some disadvantages and constraints of e-commerce include the following.
Time for delivery of physical products - It is possible to visit a local music store
and walk out with a compact disc or a bookstore and leave with a book. E-commerce
is often used to buy goods that are not available locally from businesses all over the
world, meaning that physical goods need to be delivered, which takes time and costs
money. In some cases there are ways around this, for example, with electronic files of
the music or books being accessed across the Internet, but then these are not physical
goods.
Physical product, supplier & delivery uncertainty - When you walk out of a
shop with an item, it's users. You have it; you know what it is, where it is and
how it looks. In some respects e-commerce purchases are made on trust. This
is because, firstly, not having had physical access to the product, a purchase is
made on an expectation of what that product is and its condition. Secondly,
because supplying businesses can be conducted across the world, it can be
uncertain whether or not they are legitimate businesses and are not just going
to take user money. It's pretty hard to knock on their door to complain or seek
legal recourse! Thirdly, even if the item is sent, it is easy to start wondering
whether or not it will ever arrive.
Perishable goods - Forget about ordering a single gelato ice cream from a shop
in Rome! Though specialised or refrigerated transport can be used, goods

bought and sold via the Internet tend to be durable and non-perishable: they
need to survive the trip from the supplier to the purchasing business or
consumer. This shifts the bias for perishable and/or non-durable goods back
towards traditional supply chain arrangements, or towards relatively more
local e-commerce-based purchases, sales and distribution. In contrast, durable
goods can be traded from almost anyone to almost anyone else, sparking
competition for lower prices. In some cases this leads to disintermediation in
which intermediary people and businesses are bypassed by consumers and by
other businesses that are seeking to purchase more directly from
manufacturers.
Limited and selected sensory information - The Internet is an effective conduit
for visual and auditory information: seeing pictures, hearing sounds and
reading text. However it does not allow full scope for our senses: we can see
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pictures of the flowers, but not smell their fragrance; we can see pictures of a
hammer, but not feel its weight or balance. Further, when we pick up and
inspect something, we choose what we look at and how we look at it. This is
not the case on the Internet. If we were looking at buying a car on the Internet,
we would see the pictures the seller had chosen for us to see but not the things
we might look for if we were able to see it in person. And, taking into account
our other senses, we can't test the car to hear the sound of the engine as it
changes gears or sense the smell and feel of the leather seats. There are many
ways in which the Internet does not convey the richness of experiences of the
world. This lack of sensory information means that people are often much
more comfortable buying via the Internet generic goods - things that they have
seen or experienced before and about which there is little ambiguity, rather
than unique or complex things.
Returning goods - Returning goods online can be an area of difficulty. The
uncertainties surrounding the initial payment and delivery of goods can be

exacerbated in this process. Will the goods get back to their source? Who pays
for the return postage? Will the refund be paid? Will I be left with nothing?
How long will it take? Contrast this with the offline experience of returning
goods to a shop.
Privacy, security, payment, identity, contract - Many issues arise - privacy of
information, security of that information and payment details, whether or not

payment details (eg credit card details) will be misused, identity theft,
contract, and, whether we have one or not, what laws and legal jurisdiction
apply.
Defined services & the unexpected - E-commerce is an effective means for
managing the transaction of known and established services, that is, things that
are everyday. It is not suitable for dealing with the new or unexpected. For
example, a transport company used to dealing with simple packages being
asked if it can transport a hippopotamus, or a customer asking for a book order
to be wrapped in blue and white polka dot paper with a bow. Such requests
need human intervention to investigate and resolve.
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Personal service - Although some human interaction can be facilitated via the
web, e-commerce can not provide the richness of interaction provided by

personal service. For most businesses, e-commerce methods provide the
equivalent of an information-rich counter attendant rather than a salesperson.
This also means that feedback about how people react to product and service
offerings also tends to be more granular or perhaps lost using e-commerce
approaches. If user only feedback is that people are (or are not) buying user
products or services online, this is inadequate for evaluating how to change or
improve user e-commerce strategies and/or product and service offerings.
Successful business use of e-commerce typically involves strategies for
gaining and applying customer feedback. This helps businesses to understand,
anticipate and meet changing online customer needs and preferences, which is
critical because of the comparatively rapid rate of ongoing Internet-based
change.
Size and number of transactions - E-commerce is most often conducted using
credit card facilities for payments, and as a result very small and very large
transactions tend not to be conducted online. The size of transactions is also
impacted by the economics of transporting physical goods. For example, any
benefits or conveniences of buying a box of pens online from a US-based
business tend to be eclipsed by the cost of having to pay for them to be
delivered to you in Australia. The delivery costs also mean that buying
individual items from a range of different overseas businesses is significantly
more expensive than buying all of the goods from one overseas business
because the goods can be packaged and shipped together.
Along with these advantages and disadvantages online transactions or e-business
should follow the rules and regulations established from respective authorities.
The rules and norms are as follows. These laws commonly known as cyber laws.
In practice, e-business is more than just e-commerce. While e-business refers

to more strategic focus with an emphasis on the functions that occur using electronic
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capabilities, e-commerce is a subset of an overall e-business strategy. e-commerce

seeks to add revenue streams using the World Wide Web or the Internet build and
enhance relationships with clients and partners and to improve efficiency using the
Empty Vessel strategy. Often, e-commerce involves the application of knowledge
management systems.
Applications can be divided into three categories:

Internal business systems:
customer relationship management
enterprise resource planning
document management systems
human resources management
Enterprise communication and collaboration:
VoIP
content management system
e-mail
voice mail
Web conferencing
electronic commerce - business-to-business electronic commerce (B2B) or

business-to-consumer electronic commerce (B2C):
internet shop
supply chain management
online marketing
2.2 MODELS
When organizations go online, they have to decide which e-business models best
suit their goals. A business model is defined as the organization of product, service
and information flows, and the source of revenues and benefits for suppliers and
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customers. The concept of e-business model is the same but used in the online
presence. The following is a list of the currently most adopted e-business models:
e-shops
e-procurement
e-malls
e-auctions
Virtual Communities
Collaboration Platforms
Third-party Marketplaces
Value-chain Integrators
Value-chain Service Providers
Information Brokerage
2.3 CLASSIFICATION BY PROVIDER AND CONSUMER

Roughly dividing the world into providers/producers and consumers/clients one can
classify e-businesses into the following categories:
Business-to-Business (B2B)
Business-to-Consumer (B2C)
Business-to-Employee (B2E)
Business-to-Government (B2G)
Government-to-Business (G2B)
Government-to-Government (G2G)
Government-to-Citizen (G2C)
Consumer-to-Consumer(C2C)
Business-to-Business (B2B)
Consumer-to-Business (C2B)
2.3.1 B2B-Business to Business

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Business to Business e-commerce has been in use for quite a few years and is
more commonly known as EdI(electronic data interchange). 'Business-to-Business' (or
'B2B' for short) marketing strategy which involves the transaction of goods or
services between businesses (as opposed to relations between businesses and other
groups, for example consumers(B2C) or public administration (B2G)). B2B makes up
e-commerce is about 94% of all e-commerce transaction.
2.3.2 B2C-Business to Consumer

Business to Consumer e-commerce involves activities of commercial
organizations serving the end consumer with products and/or services. It is a two way
function but is usually done solely through the internet. IT helps the consumer access
the system of the supplier.
Users of B2C e commerce

Manufacturers-to sell and retail the business buyers
Distributors-to take orders from the merchants they supply
Publisher-to sell subscriptions and books
Direct Sales Firms-as another channel to reach the buyers.
Entertainment Firms-to promote new products and sell copies.
Information Provider-to take payment for downloaded materials
2.3.3 C2B-Consumer to Business

Consumer to Business is growing arena where the consumer requests a
specific service from the business. It is an electronic commerce business model in
which consumers (individuals) offer products and services to companies and the
companies pay them. This business model is a complete reversal of traditional
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business model where companies offer goods and services to consumers (business-toconsumer).
2.3.4 B2E-Business to Employee

Business to employee is growing in use. This form of e-commerce is more
commonly known as an Intranet. An intranet is a web site developed to provide
employee of an organization with information. The internet is usually accessed
through the organizations network, though it can and is often extended to an entrant
who uses the Internet but restricts uses by sign on and password.
2.3.5 C2C-Consumer to Consumer

These sites are usually some form of auction site. The consumer lists items for sale
with a commercial auction site. Other consumers access the site and place bids on the items.
The site then provides a connection between the seller and buyer to complete the transaction.
The site provider usually charges a transaction cost.
2.4 RELATED AREAS OF E-BUSINESS

2.4.1 Online shop
Online shopping is the process consumers go through to purchase products or
services over the Internet. An online shop, e-shop, e-store, internet shop, web shop or
online store evokes the physical analogy of buying products or services at a bricksand-mortar retailer or in a shopping mall. It is an electronic commerce application
used for business-to-business electronic commerce (B2B) or business-to-consumer
electronic commerce (B2C). Online shopping is popular mainly because of its speed
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and ease of use. Some issues of concern can include fluctuating exchange rates for
foreign currencies, local and international laws and delivery methods.
2.4.2 E-procurement
Electronic Procurement is either the business-to-business or Business-toConsumer purchase and sale of supplies and services through the Internet as well as
other information and networking systems, such as electronic data interchange (EDI)
and Enterprise Resource Planning (ERP). An important part of many B2B sites, eprocurement is also sometimes referred to by other terms, such as supplier exchange.
Typically, e-procurement Web sites allow qualified and registered users to look for
buyers or sellers of goods and services. Depending on the approach, buyers or sellers
may specify costs or invite bids. Transactions can be initiated and completed.
Ongoing purchases may qualify customers for volume discounts or special offers. Eprocurement software may make it possible to automate some buying and selling.
Companies participating expect to be able to control parts inventories more
effectively, reduce purchasing agent overhead, and improve manufacturing cycles. Eprocurement is expected to be integrated with the trend toward computerized supply
chain management.
There are six main types of e-procurement:

Web-based ERP (Electronic Resource Planning): Creating and approving
purchasing requisitions, placing purchase orders and receiving goods and
services by using a software system based on Internet technology.
E-MRO (Maintenance, Repair and Operating): The same as web-based ERP
except that the goods and services ordered are non-product related MRO
supplies.
E-sourcing: Identifying new suppliers for a specific category of purchasing
requirements using Internet technology.
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E-tendering: Sending requests for information and prices to suppliers and

receiving the responses of suppliers using Internet technology.
E-reverse auctioning: Using Internet technology to buy goods and services
from a number of known or unknown suppliers.
E-informing: Gathering and distributing purchasing information both from and
to internal and external parties using Internet technology.
2.4.3 E-auction
The internet makers auctions more democratic allowing everyone with an
internet connection to bid for a good offered. A reverse auction (also called
procurement auction, e-auction, sourcing event, e-sourcing or eRA) is a tool used in
industrial business-to-business procurement. It is a type of auction in which the role of
the buyer and seller are reversed, with the primary objective to drive purchase prices
downward. In an ordinary auction (also known as a forward auction), buyers compete
to obtain a good or service. In a reverse auction, sellers compete to obtain business.
2.4.4 Virtual Community

Virtual Community e-community or online community is a group of people
that primarily interact via some form of mechanism such as letters, telephone, email
or Usenet rather than face to face. If the mechanism is a computer network, it is called
an online community. Virtual and online communities have also become a
supplemental form of communication between people who know each other primarily
in real life. A computer-mediated community (CMC) uses social software to regulate
the activities of participants. Significant socio-technical change has resulted from the
proliferation of Internet-based social networks. The agglomeration of all online
communities is sometimes called the metaverse.
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2.4.5 E-administration
E-administration, or electronic administration, refers to any of a number of
mechanisms at which convert what in a traditional office are paper process into
electronic processes, with a goal being to create a paperless office. This is helps to
improve productivity and performance. E-administration can encompass both intraoffice and interoffice communication for any organisation. Its objective is to introduce
total transparency accountability leading to better e-governance within any
organization.
2.4.6 Collaboration platforms

Collaboration platforms offer a set of software components and software
services that enable individuals to find each other and the information they need and
to be able to communicate and work together to achieve common business goals. The
core elements of a collaboration platform are messaging (email, calendaring and
scheduling, and contacts), team collaboration (file synchronization, ideas and notes in
a wiki, task management, full-text search), and real-time collaboration and
communication (e.g., presence, instant messaging, Web conferencing, application /
desktop sharing, voice, audio and video conferencing), and Social Computing tools
(e.g.: RSS, shared bookmarks). Vendors that offer collaboration platforms include
Advancing Insights enterprise social software), IBM (Lotus Notes/Domino, Quick
Place, and Sametime), iNovem etc
2.4.7 E- Registration
E-registration is a shortened form of the phrase electronic registration and is
common use in Tourism and Health care sector settings for the use of information
Technology systems enable to book the appointments electronically. It usually refers
to the Registration of an appointment into one service from another, e.g. primary care
physician to a hospital. It replaces archaic methods of referral which can take a
considerable length of time, and offer limited choice to patients.
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2.4.8 E-banking
It allows customers to access and execute orders through a simple to use
website. It makes banking activities simple
2.4.9 E-recruitment
E-recruitment covers a range of web based application tools used for the
provisioning (typically) of human resources. These applications assist in the
recruitment of suitable candidates for vacant positions .Some applications do this by
semi-automating the entire recruitment and hire processed-recruitment applications
(or software packages that are web enabled) typically enable recruitment teams to
create job postings, manage job application responses, schedule interviews and
manage other recruitment tasks.
2.4.10 E- Directories
It helps to finding a particular services or product. Telephone directories both
white pages (private telephone number) and yellow pages (commercial pages).
2.4.11 E- Franchising
It becomes much easier on the internet, Moving digital products or process
and branches. The advantages of the system are that there is no distribution.
2.4.12 E- Learning
The term e-learning refers to computer-enhanced training. e-learning is usually
delivered via a personal computer. It includes learning delivered by other
communications technologies methods include online lectures, tutorials, performance
support systems, simulations, job aids, games and more.
2.4.13 E-mailing
It is a method of composing, sending, storing, and receiving messages over
electronic communications systems. It is used for the computer exchange of messages
and is important tool for communication collaboration work.
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2.4.14 E-Supply
The internet reduces significantly the cost for starting up the digital business to
business communication through the open standards such that XML and JAVA.
Supply chain partners are able to share and exchange information more easily and
with the lower cost.
2.4.15 E-Trading
It is also called e-brokering offers the real times stock prices to every desk
through out the world .People are react in real time to change in the stock
market.
This enables everyone to participate in stock market and earn money by investigation.
2.4.16 E-Gambling
The companies who operate the gambling website are able to operate the full
programmed of game without any restrictions.
2.4.17 E-Purchase
Most of the companies purchases goods and services by electronically. They
used internet as a main sources of e-purchases.
2.4.18 E-marketing
Internet marketing, also referred to as online marketing or e-marketing, is
marketing hat uses the Internet. The Internet has brought many unique benefits to
marketing including low costs in distributing information and media to a global
audience. The interactive nature of Internet media, both in terms of instant response,
and in eliciting response at all, are both unique qualities of Internet marketing.
Internet marketing ties together creative and technical aspects of the internet,
including design, development, advertising and sales. Internet marketing methods
include search engine marketing, display advertising, e-mail marketing, affiliate
marketing, interactive advertising and viral marketing
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2.4.19 Electronic Commerce

Electronic commerce, commonly known as e-commerce, consists of the
buying and selling of products or services over electronic systems such as the Internet
and other computer networks. The amount of trade conducted electronically has
grown dramatically since the wide introduction of the Internet.
A wide variety of commerce is conducted in this way, including things such as
electronic funds transfer, supply chain management, e-marketing, online marketing,
online transaction processing, electronic data interchange (EDI), automated inventory
management systems, and automated data collection systems. Modern electronic
commerce typically uses the World Wide Web at least some point in the transaction's
lifecycle, although it can encompass a wide range of technologies such as e-mail as
well.
A small percentage of electronic commerce is conducted entirely
electronically for "virtual" items such as access to premium content on a website, but
most electronic commerce eventually involves physical items and their transportation
in at least some way
2.4.20 Mobile Commerce

Mobile Commerce (also known as M-Commerce, M-commerce or UCommerce, owing to the ubiquitous nature of its services) is the ability to conduct
commerce, using a mobile device e.g. a mobile phone ( or cell phone), a PDA, a smart
phone while on the move, and other emerging mobile equipment, like dash top mobile
devices.
2.4.21 Mobile Ticketing

Tickets can be sent to mobile phones using a variety of technologies including
bCODE and NFC. Users are then able to use their tickets immediately by presenting
their phones at the venue. Recently, WiMAX-enabled dashtop mobile payment
platforms made a debut, enabling users to enter 7-digit alphanumeric ID on kiosk
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keypads at the entrance of ballparks, airports and expos instead of physical tickets, but
this dashtop mobile equipment will take some years to get commercially
implemented.
The travel industry, in realizing the possible benefits of m-commerce, is
working on technologies that will take care of travel arrangements, update customers
on flight status, notify them when this information changes and will offer to make
new arrangements based on preset user preferences requiring no input from the user.
Therefore, a customers entire trip can be scheduled and maintained using only their
mobile devices.
2.5 Advantages of e-business Applications

Catalogue flexibility and Online fast updating
Shrinks the Competition Gap
Reduced marketing/advertising expenses compete on equal footing with much
bigger companies; easily compete on quality, price, and availability.
Unlimited Market Place and Business Access Which Extend Customer
Base
The Internet gives customers the opportunity to browse and shop at their
convenience and at their place.
A 24 Hour Store Reduced Sale Cycle
Reduce unnecessary phone calls and mailings.
Lower Cost of Doing Business
Reduce inventory, employees, purchasing costs, order processing costs associated
with faxing, phone calls, and data entry, and even eliminate physical stores. Reduce
transaction costs.
Eliminate Middlemen
Sell directly to the customers.
Easier Business Administration
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With right software, store inventory levels, shipping and receiving logs, and other
business administration tasks can be automatically stored, categorized and updated in
real-time, and accessed on demand.
Frees the work of the Staff
Reduce customer service and sales support.
Customers will love it
Gives customers control of sales process. Builds loyalty.
More Efficient Business Relationships
Better way to deal with dealers and suppliers.
Workflow automation
Shipping, real time inventory accounting system which adjusts stock levels
and site, location availability instantaneously
Secured, automated registration verification, account entry and transaction
authorization features
Banking and accounting features customized for pre-approved third party
direct sales, vendor, consignment or internal transfer transactions.
Secure Payment Systems
Recent advancements in payment technologies allow encrypted, secure
payment
online.
2.6 Enterprise Networking

Internet
Internet represents one of the most successful examples of the benefits of
sustained investment and commitment to research and development of information
infrastructure. The internet has become such an integral part of our lives such
powerful capabilities, that it is easy to forget that this is technological marvel was
created by the long, hard, dedicated efforts of human beings.
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Intranet
An intranet is a private computer network that uses Internet protocols, network
connectivity, and possibly the public telecommunication system to securely share part
of an organizations information or operations with its employees. Intranet is being
uses to deliver tools and applications, e.g.: collaboration (to facilitate working in
groups and for teleconferences) or sophisticated corporate directories, sales and CRM
tools, Project management etc to advance productivity.
Enterprise Resource planning systems (ERP)

The term ERP originally implied systems designed to plan the utilization of
enterprise wide resources. ERP systems typically attempt to cover all basic functions
of an organization, regardless of the organization business or charter .ERP integrate
all data and processes of an organization into a single unified system. The
introduction of an ERP system to replace two or more independent applications
eliminates the need for interfaces previously required between systems, interfaces
previously required between systems, and provides additional benefits that range from
standardisation and lower maintenance (one system instead of two or more) to easier
and/or greater reporting capabilities.
ERPs are cross-functional and enterprise wide. All functional departments that
are involved in operations or production are integrated in one system.ERP
standardized and reduced the number of software specialist required within a large
organisation.ERP
systems
handle
the
manufavturing,logistics,distribution,inventory,shipping,invoicing,and accounting for a

company.ERP aid in the control of business activities like sales, marketing etc
25
e-business benefits to customers

Customers benefits primarily from the structural characteristics of the medium
and include availability of information provision of search mechanism and online
product, trial all of which can lead to reduced uncertainty in the purchase decisions.
The major benefits to customers include
Access to more information
An important consumer benefit associated with marketing on the web
is the access to greater amounts dynamics information to support the queries for
consumer decision making. That is it delivers relevant and detailed information in
seconds.
Rapid Response to Needs

The customer benefits partly arise from the use of the web as the distribution
channel. It provides the customer an ability to rapidly obtain the precise product that
is required, without being limited to those currently in stock at local suppliers.
Lower Costs and prices

Increased competition in procurement, as more suppliers are able to compete in
electronically, open market place cause a greater competition that lower prices and
costs. This increase in competition, leads to better quality and variety of goods
through expanded markets and ability to produce customized goods. That is it
provides less expensive products and services by allowing customers to conduct quick
online searches and comparisons.
Global Choice
The global nature of e-commerce provides a benefit of global choice to the
customers.
26
Easier Market Research and Comparison

The ability of the web to accumulate ,analysis and control large quantities of
specialized data can enable comparison shopping and speed the process of finding
items. The web facilities trial and provides instant gratification. And the customers
can test digital products through online, which may stimulate purchase
It enables the customers to shop or make other transactions 24 hours a day.
Make Possible electronic auctions that benefit buyers and sellers
Allows customers to interact in electronic form and to exchange ideas and
compare experiences.
Benefits and Opportunities to Suppliers

The supplier benefits arise from the potential of the web as a communication
medium for marketing. These efficiencies are associated with web technology and the
interactive nature of the medium .The major benefits include the following
Shortened Supply Chain
e-commerce often allows traditional supply chain to be shortened dramatically.
This will make the products cheaper and vendors profits become higher.
Substantial Cost Savings
Buyers and sellers can access and contact each other directly, potentially
eliminating some of the marketing cost and constraints imposed by such interactions
in the terrestrial world. It enables companies to procure materials and services from
other companies rapidly at less cost. It also reduces the telecom cost because internet
is much cheaper than Value Added Network.
Mass Customization
27
With electronic interaction suppliers are able to gather detailed information on

the needs of each individual customer and automatically generate the required
products and services to those individual needs.
Global Presence
The boundaries of e-commerce are defined only by the coverage of computer
networks and not by the geographical or national borders. It expands a companys
market place to national and international market.
Competition on Specialty
The web offers opportunity for competition on the Specialty axis instead of the
prices axis. Such opportunities arises when the offerings is differentiated by elements
of the marketing mix other than price. It helps some small business to compete with
the large companies.
Improved Competitiveness
e-commerce enables suppliers to improve competitiveness by becoming closer
to the customer. As a simple example many companies are employing electronic
commerce technology top offer improved levels of presales support, with increased
levels of product information, guidance on product use and rapid response to
customer enquiries.
28
Chapter-3
29
Company Profile
ebay
Founded in September 1995, e-Bay is a global online marketplace where
where practically anyone can trade practically anything. ebay is a platform for the sale
of goods and services by a diverse community of individuals and businesses. Today,
the ebay community includes more than 222 million registered members from all
around the world.
At any given time, there are approximately 100 million listings on ebay
worldwide, approximately 6.6 million listings are added per day. ebay users trade in
more than 50000 categories including collectibles, antiques , sports memorabilia,
computers, IT and office, art, toys, dolls, stamps, comics, magazines, music, pottery,
glass, photography, electronics, jewellery and gemstones.
ebay India (formerly Baazee.com) was launched in India in 2000 and has
become one of Indias leading online shopping destinations. ebay India has a
community of over 2 million registered users across over 670 towns in India.
Approximately 12,800 sellers use ebay India as primary or secondary source of
income.
Although ebay is a global company, ebay.in offers a trading platform tailored
to the unique needs of Indians. The ebay community consists of passionate Indians as
well as International buyers and sellers trading in a variety of goods.
ebay in India
30
The ebay Portfolio in India includes the ebay India Marketplace and the
ebay India Motors Marketplace .
ebay India Marketplace
ebay India (www.ebay.in) is India 's leading online marketplace. It is a
unique and exciting marketplace with the largest person-to-person trading community
in the country. ebay India is a trading platform offering auctions, fixed price and
classifieds modes of person-to-person trading. ebay India has 2 million registered
users from 2471 cities in India . ebay India (formerly Baazee.com) is a 100%
subsidiary of ebay Inc.
The popular categories on ebay India include technology, lifestyle, media and
collectibles. Thousands of sellers sell on ebay India daily across 2,000 categories of
products.
ebay India Motors Marketplace
ebay India Motors is the leading online marketplace for sale of second hand
cars, bikes & commercial vehicles in India . It is a B2B Motors Marketplace where
corporate, financial institutions, large dealers and fleet owners sell vehicles to
automobile dealers across the country. ebay India Motors hosts online auctions for the
sale of vehicles in an efficient and transparent manner on http://b2bmotors.ebay.in .
ebay India Motors' strength lies in its dealer base of over 12,500 dealers, who
are registered to buy on the platform, across 250 cities. The B2B Motors Marketplace
on ebay India , is an independent and neutral platform, which provides a level playing
field to all buyers on the platform. For sellers, the platform provides an excellent
medium of realizing efficient market prices, quick throughput and a transparent
process for the sale of used vehicles.
Employees
As of December 31, 2008, ebay Inc. and its subsidiaries employed

approximately 16,200 people (including temporary employees), approximately 9,950
of whom were located in the U.S.
31
Competition
We encounter vigorous competition in our businesses from numerous sources.

Our users can find, buy, sell and pay for similar items through a variety of competing
channels. These include, but are not limited to, online and offline retailers,
distributors, liquidators, import and export companies, online and offline auctioneers,
catalog and mail-order companies, classifieds, directories, search engines, products
of search engines, virtually all online and offline commerce participants (consumerto-consumer, business-to-consumer and business-to-business), online and offline
shopping channels and networks. As our product offerings continue to broaden into
new categories of items and new commerce formats, we expect to face additional
competition from other online and offline channels for those new offerings. We
compete on the basis of price, product selection, and services. Our growth rates in
our most mature markets have significantly slowed and we are losing market share in
some segments. For our Payments segment, our users may choose to pay through a
variety of alternative means, including other online payment services, offline
payment methods such as cash, check or money order, and traditional online or
offline credit card merchant accounts. For our Communications segment, our users
may choose to use their local telephone companies, cable providers and other VoIP
providers.
To compete effectively, we may need to expend significant resources in
technology and marketing. These efforts may be expensive and could reduce our
margins and have a materially adverse effect on our business, financial position,
operating results and cash flows and reduce the trading price of our stock. We believe
that we will be able to maintain profitability by preserving and expanding the size
and diversity of our users online community and enhancing our user experience, but
despite our efforts, we may not be able to continue to manage our operating expenses
to avoid or reduce a decline in our consolidated net income.
The ebay Community
The ebay community is made up of individual buyers and sellers who come to
the site to do more than just buy or sell-they have fun, shop around, and get to know
each other, for example, by chatting on the ebay discussion boards.
32
Through the discussion boards, members meet and get to know each other,
discuss topics of mutual interest, and help each other to learn all about ebay. These
discussion boards are public forums that encourage open communication between
users.
ebay becomes a part of members' lifestyles. Many members have created
second businesses, or left day jobs altogether, by selling items on ebay. For hundreds
of thousands of others, ebay is the place to share a passion for items that are special.
The community is also self-policing, and users frequently form
"neighbourhood watch" groups to help guard against misuse or violations of site
etiquette.
ebay also encourages open and honest communication between the community
and the company. Frequently, members of the community give their feedback to
improve the environment in which they work and play.
The sense of community is alive and well offline too. In the past few months,
ebay users have planned evenings out together, chipped in and bought a special item
for another user, and a couple have even found love through the discussion boards!.
ebay Trust and Safety

The ebay Trust & Safety team is devoted to making ebay a safe and reliable
place to trade. The team helps build trust in the community through various
educational resources, rules and policies, and trust-building programmes, all of which
help maintain general marketplace security and prevent and combat fraud.
ebay works behind the scenes to develop the technology and skills to fight
fraud and empower the community to understand and conduct safe trading practices.
ebay also proactively works with law enforcement and government agencies
throughout the world to enforce its policies. ebay's trading policies are rooted in the
values of the ebay marketplace. ebay strives for a level playing field and information
33
transparency, enabling economic opportunity for the community and encouraging

open, honest, and accountable transactions.
Following are various tools, programmes and resources that ebay offers buyers
and sellers to protect themselves and build trust with one another:
ebay Feedback
Feedback is each user's reputation on ebay. It fosters trust between people by
acting as both an incentive to do the right thing and as a mark of distinction for those
who conduct transactions with respect, honesty and fairness. Every ebay member has
a feedback profile-it includes a rating number in parentheses, as well as comments
from other members you've bought from and sold to.
ebay Toolbar with Account Guard
The ebay Toolbar now features "Account Guard," a tool that enables members
to protect their account by indicating when they are on a genuine ebay site and
warning them when they are on a potentially fraudulent (spoof) website.
e-business Model of ebay

ebay adopts C2C e-business model, in which the consumer lists items for sale
with ebay. Other consumers access the site and place bids on the items. The site then
provides a connection between the seller and buyer to complete the transaction. ebay
usually charges a transaction cost.
When an item is listed on ebay, a non refundable insertion fee is
charged based on the sellers opening bid on item.
Once the auction is completed, a final value fee is charged. This fee
generally ranges from 1.25 % to 5% of the final sale price.
Chapter 4
34
Online Selling through ebay

Selling procedure in ebay
35
ebay allows users to sell products online. The step by step procedure of the
selling procedure is explained below.
1) Go to ebay, open an ebay selling account.
2) Check out some of the listings already active in ebay.
3) When starting off for the first time, enter the desired listing, add a picture,
and perhaps add a gallery picture. No need to get fancy.
4) Pay special head to the title, make sure it is explanatory, and catchy, and has
enough information for the buyer
5) Make sure in the "description" we disclose full details pertaining to the
item. Do not hide or try to cover anything. Also, try to write our description in a way
that will grab the attention of the readers. Don't be boring in our writing. MAKE the
buyer want to buy our product.
6) Do research, it's easy with ebay.
7) Learn, always learn! There are many places on the internet where we can
teach ourself for free.
8) When selling, write a title that accurately describes the item. Use
manufacturers name and model number within the title if applicable. Write a detailed
description that allows prospective bidders to make a decision about purchasing the
item. A basic tip of the description can never be too long as long as it is describing the
item. Host our own pictures. By hosting our own pictures, we will save money, and,
more importantly, is able to use as many pictures as we need to adequately show ebay
bidders our item. This is the simplest thing to do, and yet 70 percent of ebay sellers
ignore this simple tip. List our item in the most appropriate category.
Many buyers only search ebay by looking at listings within categories. If we

are not in the right ebay category we will not be seen by lots of potential bidders and
our item may end up selling for less than it's worth. Systemize our ebay selling. Using
36
a system to sell on ebay will lower the amount of time spent selling each item, and
insure we don't forget any important activities. Know the fair price and our maximum
ebay includes an option in their advanced search to search for completed auctions.
Use the completed auction search feature to find similar items and their final price.
Search other stores like Amazon.com, overstock.com, and other online stores
to see if they are selling it for less than the auction. You can also use sites like
Shopping.com and PriceGrabber.com to find existing non-auction deals. And most
importantly, know our maximum bid. Determine the price you're willing to pay for the
item. If it sells to someone else for a penny more that our maximum, you should be
able to think "They overpaid!" You should also feel that if you win it for one penny
less than our maximum, you can think "I got a deal!" our maximum bid should be our
true maximum bid.
Review seller feedback before ever placing a bid, we must review the seller's
feedback. The seller should have very few negative feedbacks, if any. With items
worth only a few dollars, we can be more lenient with new sellers. If it's an expensive
item, be very careful bidding if the seller has a low feedback rating or any number of
recent negative ratings.
Is the seller using an anonymous e-mail address (eg Yahoo! hotmail),

spammers often use anonymous e-mail accounts. Seller and buyer leave feedback on
the same day the auction ended. Feedback left by the buyer and seller the same day
the auction ended, often for more than one auction. This might indicate the buyer was
a shill. The other side of buying is the selling. Anyone can sell anything on ebay.
Open an account, list our product, and wait for the bids to start coming in. There are
secrets to being a power seller on ebay. If we have any questions, ask again, a seller
who does not respond to our e-mail, is not much of a seller.
Drop Ship Selling
37
Drop ship selling on ebay can allow a retailer/seller to earn reasonable profits,
simply by promoting the selected items, and routing them directly from the source to
customers.
It is a very simplified form of retailing; a retailer does not have to maintain stocks and
inventories, and spend extra money on packaging and shipment. This business has
helped many people to earn a reasonable livelihood, especially after the recession hit
the US economy. In today's world of economic downturn, this business can allow
people to earn a reasonable income, by selling items on the internet.
This business is also suitable for those people; who due to some reason, can not work
outside the premises of their homes. It is similar to ordinary business, with minor
differences.
The whole process of drop shipping starts with registration on a directory

website, which provides the retailer with everything he/she needs. A wholesale
directory contains detailed listings of wholesaler, with products they are offering.
Once a retailer gets registered with a directory website, he/she gets access to these
listings, and is free to select products of his/her choice. Once the products are
selected, the next important step is to promote these products on the internet, so that
more and more people can view the products offered. For the purpose of promotion, a
retailer can always develop a dedicated website, or can use other methods of
promotion. Drop ship selling on ebay is also one of the available options; it allows a
retailer to promote and sell products on such a large platform, which is viewed by a
large number of people. Although, a lot of people visit ebay for buying stuff available
in auctions and this is a trap that a retailer must be aware of.
I did not use this word trap to promote any negative ideas about ebay;
however, this is an option, a retailer must never use. Because if he/she offers her
products for auction selling, it can lead the prices of products to fluctuate, i.e. they can
go up, as well as come down the desired level. So in order to avoid any loss in profits,
a retailer must always use the option of fixed price selling. This will allow a retailer to
38
earn
decent
profits,
through
drop
ship
selling
on
ebay.
A retailer must always try to avoid scam directory websites, because they
seriously injure his/her efforts towards profitability. It is also important to read
reviews on directory websites; this can allow a retailer to select the best directory
website, to get registered with.
Rules for Sellers

ebay's policies are rules and guidelines that help to create a safe, fair and
enjoyable trading environment for all ebay members. As a seller, the customer is
responsible for reviewing and understanding ebays selling policies, as well as all
applicable laws and regulations as outlined in the User Agreement.
Learning about ebay's selling policies before you list an item will help you to
avoid unintentionally breaking rules. ebays selling policies are updated to respond to
marketplace, Community and security issues, so it is important to check them
regularly for changes.
Violations of these policies may result in a range of actions, including:
Listing cancellation
Limits on account privileges
Account suspension
Forfeit of ebay fees on cancelled listings
Loss of PowerSeller status
Every seller must know and follow:
Rules about Prohibited and Restricted Items What items can and cannot be
listed
Rules about Intellectual Property Items and listings that have the potential of
violating certain copyrights, trademarks, or other rights. Intellectual property
39
owners can report listings as part of ebays Verified Rights Owner (VeRO)
Program.
Rules for Listings Actions that are not allowed in listings
Rules for Accepted Payments - Forms of payment that sellers may accept from
buyers
In addition to the above rules, here are some additional policy violations not permitted
on ebay:
Seller Non-performance Sellers cannot fail to deliver an item for which

payment was accepted, significantly misrepresent an item by not meeting the
terms and item description outlined in the listing, or refuse to accept payment
for an item at the end of a successful sale.
Shill Bidding Sellers must not bid on their own item, or have family
members, roommates or employees bid on their item.
Unpaid Item/Final Value Fee Credit Abuse Sellers may not file for a Final
Value Fee credit on a transaction where the buyer paid for the item.
Tax Policy Sellers must pay relevant fees and taxes.
ebays VeRo Program Reporting Listing Violations

ebay created the Verified Rights Owner (VeRO) Program so that intellectual
property owners could easily report listings that infringe their rights. It is in ebays
interest to ensure that infringing items are removed from the site, as they erode buyer
and good seller trust.
If you are a Verified Rights Owner and want to report a listing issue, see
Reporting Intellectual Property Infringements.
Prohibited and Restricted Items

Before you list user item, you need to find out if user item is allowed on ebay and if
the type of item is subject to certain restrictions to avoid potential issues with user
40
listing. As an ebay seller, you are ultimately responsible for making sure that selling
an item is legal in the eyes of the law.
Account suspension
Loss of Power Seller status.
When policy violations occur, ebay emails the seller, as well as bidders, that a listing
has been ended. You may contact ebay to report violations by using the Report or
Contact Us links found on most policy pages.
Understanding the rules about prohibited and restricted items
Policies about listing items are often based on country and state laws.
However, many restrictions may involve the sale of dangerous or sensitive
items and are not necessarily prohibited by law. The limitations are the result
of input by numerous stakeholders, including the Community. For example,
see Offensive Material Policy.
When selling across borders, be aware of international trading and import

restrictions. Certain items may be legal in user country, but may be illegal
elsewhere.
Just because a particular type of item is listed below, it does not mean that it is
completely prohibited. For example, in the Used Medical Devices Policy,
many items are prohibited (for example, contact lenses), but many others are
allowed under certain circumstances (for example some medical
instruments).
41
Note: Examples are designed to help explain the policy and should not be
viewed as an exhaustive list.
It is also important to review the Rules for Listings and the Rules about
Intellectual Property to check if user type of item has additional restrictions
that would affect user listing.
Listing of Items
To promote a safe, fair and enjoyable trading experience, ebay has established
a set of rules and policies for item listings. These restrictions involve how certain
items are described, and practices that would provide an unfair advantage or result in
a negative buyer experience.
Learning about ebay's listing policies before you list an item will help you to
avoid unintentionally breaking rules.
Account suspension
Loss of Power Seller status.
When policy violations occur, ebay emails the seller, as well as bidders, that a listing
has been ended.
In addition to the Rules for Listings, you should also review the rules for Prohibited
and Restricted Items and the Protection of Intellectual Property to check if user type
of item is allowed or has additional restrictions that would affect user item listing.
42
The following are the Rules for Listing with links to the specific policy pages that
have examples, any exceptions, and a link that you can use to report a violation of that
policy.
Listings must not misrepresent items.

Except as noted in the specific policy as exceptions, sellers cannot:
List items in inappropriate categories.
Misrepresent the item location from which their item will be shipped.
Include brand names or other inappropriate keywords in a title or description.

This is known as keyword spamming.
Have misleading titles that do not accurately describe the item for sale.
Listings cannot use techniques to avoid or circumvent ebay fees.

Offer a catalogue from which buyers may directly order.
Allow buyers a choice of items.
Exceed multiple listing limits.
List a single item but offer additional identical items for sale in the item
description.
Include separate payment surcharges that buyers pay to use ordinary forms of
payment.
Misuse the Reserve Price option.
Charge excessive shipping.
Offer the opportunity through ebay to purchase the item or other merchandise
outside of ebay.
Use their About Me Page to promote outside-of-ebay sales or prohibited items.
43
Listings must promote a fair and level playing field, and provide an enjoyable
and safe experience for buyers.
Solicit buyers to mail cash or use other payment methods not specifically
permitted by ebay as accepted payment methods.
Include links that do not conform to ebay's Links Policy. Specific types of
links that are limited include links to further descriptions, email address,
photos, user About Me page, listing terms and conditions and ebay Shops.
Use certain types of HTML and JavaScript in item listings, Shops pages,
About Me pages, or Want-It-Now ads.
Promote giveaways, random drawings, raffles, prizes or bonuses.
Create a listing that does not offer an item or service.
Advertise a desire to buy or trade items, except as allowed in non-binding bid

categories and in Want It Now.
Include third-party endorsements of ebay members.
Include third party credits beyond what is acceptable.
Use profanity in a listing, except as allowed in media titles.
Listings that involve the following situations or types of item, must conform to
limitations specified in the policy:
Compilation and Informational Items
ebay Pilot Programs
Home Page Featured Items
Jewellery, Precious Metals and Loose Beads
Pre-Sale Listings
Prohibited and Restricted Items List:
44
Adult Material (see Mature Audiences)
Alcohol (see also Wine)
Animals and Wildlife Products - examples include live animals, mounted

specimens, and ivory
Artifacts
Beta Software
Bootleg/Pirated Recordings
Brand Name Misuse
Catalogue and URL Sales
Clothing, Used
Comparison Policy
Compilation and Informational Media
Contact Information
Contracts
Copyrights
Counterfeit Currency and Stamps
Downloadable Media
Drugs
Electronic Surveillance Equipment
Event Tickets
Firearms, Ammunition, Militaria, Weapons and Knives
Fireworks, Explosives and Explosive Substances
45
Food
Games Software: Sony, Sega, and Nintendo
Government IDs and Licenses
Hazardous, Restricted, and Perishable Items
Human Parts and Remains
Importation of Goods - examples include CDs that were intended only for
distribution in a certain country
International Trading
Items Encouraging Illegal Activity examples include an eBook describing

how to create methamphetamine
Mature Audiences
Medical Devices - examples include contact lenses, pacemakers, and surgical

instruments
Misleading Titles
Mod Chips
Movie Prints
OEM Software
Offensive Material - examples include ethnically or racially offensive material
Police, Army, Navy and Air force Related Items
Pre-Sale Listings
Prohibited Services
Promotional Items
Real Estate
46
Recordable Media
Replica and Counterfeit Items
Ringtones
Stocks and Other Securities
Stolen Property
Surveillance Equipment
Tobacco
Trademarks
Travel
Weapons & Knives
Wine (see also Alcohol)
Payment methods used by ebay sellers include:

PaisaPay is the fast, easy, and secure way to pay on ebay. When you list user
item with PaisaPay as a payment method, user buyers can securely pay you online
with a credit card or online banking account.
Buyers pay from the item listing page and payment is deposited directly into
user PaisaPay account. The payment is transferred online to user registered bank
account after the buyer confirms that the item was delivered. When you use PaisaPay,
you dont need to wait for cheques or demand drafts to arrive in the mail, to be
processed, or to deal with processing buyer credit cards.
47
PaisaPay also offers buyers several conveniences like immediate payment and
checkout. In addition, purchases with PaisaPay enjoy other conveniences like:
EMI payments: You will now be able to offer user buyers the convenience of
paying in 3 or 6 monthly installments. Buyers choosing to pay using EMI will
need to pay with ICICI credit cards. Shopping cart: Buy It Now items offered
with PaisaPay can be added to the buyers shopping cart and combined with
other purchases.
Faster buying: Buy It Now items offered with PaisaPay have a shorter buying
process, which is simple and fast to use.
ebay gift vouchers: Buy It Now items offered with PaisaPay can be partly
paid for with ebay gift vouchers. If a buyer pays a part of user order using an
ebay gift voucher, you will still receive the full amount of the order.
ebay has powerful programs to avoid fraudulent. ebay feedback system is one of
those.
ebay Feedback
Every ebay member has a Feedback Profile, which includes basic information about
the member and the Feedback that their trading partners have left for them. Learning
to trust a member has a lot to do with what their past buyers or sellers have to say.
For each transaction, buyers and sellers can rate each other by leaving Feedback. Each
Feedback consists of a positive, negative, or neutral rating, and a short comment.
A buyer can also rate the seller on additional criteria accuracy of item description,
communication, shipping time, and shipping and handling charges. These detailed
seller ratings do not count toward the Feedback Score and are anonymous. This means
48
that sellers can't tell which buyer left which detailed rating, so buyers can feel free to
leave ratings that honestly tell the story about their experience.
Leaving honest comments about a particular ebay member gives other Community
members a good idea of what to expect when dealing with that member. Once it's left,
Feedback becomes a permanent part of the member's Feedback Profile.
Buyers can leave Feedback for a seller after a transaction ends. But if they are
leaving Feedback for a specific seller again, that repeat Feedback will not be
calculated in the seller's Feedback Score unless the repeat transaction occurred in a
separate week.
With this Feedback approach, buyers can reward their favorite sellers not only with
sales but also with helping spread the word about the seller's services. And sellers can
return the favor by leaving similar Feedback for favorite buyers once a week.
Feedback scores and stars
Feedback ratings are used to determine each member's Feedback Score.
A positive rating adds one point to the Feedback Score.
A neutral rating has no impact on the Feedback Score.
A negative rating subtracts one point from the Feedback Score.
The higher the Feedback Score, the more positive ratings a member has received.
The Feedback Score and the corresponding Feedback star are shown next to every
member's user ID. A Feedback Score of at least 10 earns you a yellow star (
). As
user Feedback Score increases, you can earn different colored stars all the way to a
red shooting star (
) for a score above 100,000! User star is user symbol of trust and
experience in the ebay Community.
49
ebay Buyer Protection Program

While the vast majority of ebay transactions are trouble-free, there are occasions
when transactions do not work out as expected. When buyers face any transaction
problems, our Buyer Protection Program can be of great help.
Buyer transaction problems could be of the following two types:
Paying for an item and never receiving it; or
Receiving an item that is significantly different than what was described, such
as winning a solid gold necklace but receiving a copper one instead.
Features of the Program
Buyer Protection Coverage Limit
Eligible Transactions
Non-Eligible Transactions
How to request Standard Buyer Protection
Escalating a Dispute to a Claim
Important timelines
Leaving Feedback after requesting Standard Purchase Protection
Handy Tips
Buyer Protection Coverage Limit
Up to Rs. 50,000 in case of PaisaPay payment (minus Rs. 50.00 for processing
costs)
o
PaisaPay buyer protection will be applicable to all completed

transactions paid through PaisaPay.
50
Buyer can claim full refund on a PaisaPay within the timelines to

report that the item was not delivered.
Up to Rs. 10,000 in case of other safe payment modes (minus Rs. 50.00 for
processing costs)
Coverage for the amount which you have paid using ebay Gift Vouchers
would be paid in the form of ebay Gift Vouchers only.
Eligible transactions
Under the Buyer Protection Program, the following transactions or items are eligible
for protection coverage:
The final price of the item is over Rs. 50.00. Multiple listings cannot be
combined into one claim to become eligible, even if purchased from the same
seller. Items purchased through Multiple Item Auctions (Dutch Auctions) are
eligible, provided the combined value of all items purchased through a single
listing is over Rs. 50.00
Buyer paid through PaisaPay and the time to confirm that the item was
delivered or not has elapsed.
Buyer will not be eligible for protection if he/she have already raised a refund
claim with PaisaPay.
Buyers are winning bidders or fixed price buyers of an item listed on the ebay
site.
Both buyer and the seller had a Feedback rating of zero or above at the close
of the listing.
Buyers item is legal and in accordance with ebay's Listing Policies and User
Agreement.
Payment was sent to the seller in good faith and proof of payment can be
documented.
You have not exceeded the three claims per six-month limit.
51
If you paid with a credit card (either directly to the seller or through an online
payment service other than PaisaPay) you must have already contacted user
credit card issuer and sought reimbursement from the issuer prior to filing a
claim.
Non-eligible transactions
The following items are not eligible for protection coverage under the Buyer
Protection program:
Items which are not significantly different from the item description (the value
of the item is not affected)
In case of a PaisaPay payment, if the timeline to confirm that the item was
delivered or not has not yet elapsed.
Items paid for with cash or instant money transfer services such as Western
Union
Items damaged or lost in shipping
Items that have been altered, repaired, discarded or resold
Items which are picked up or delivered in person
Intangible items, such as services or digital items
Double payment or overpayment
Shipping and handling fees
Buyer's remorse (items bought by mistake or if you change user mind)
Items purchased with BidPay: Please contact user credit card provider to file a
chargeback
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Chapter 5
53
Findings, Suggestions and Conclusions

5.1 Findings
Online selling is made more flexible and safer by introducing new safety
measures such as feedback and buyer protection program
Buyers can choose from a wide range of methods of payment, which makes
the payment procedure very simple and anybody can handle through any
means easily.
By providing online selling and buying users are attracted towards ebay so that
they can get anything in the world at a compromised price.
54
By providing auctioning buyers can get products cheaper where the sellers get
their products sold at a reasonable price.
Money back policy offered by Paisa Pay adds more trust to the transactions
5.2 Suggestions
Quality of the low priced products must be assured
The identity of the sellers must be properly exposed
Proper monitoring of Sellers and Buyers has to be done in a better way to
avoid spamming.
An online chat facility will be more useful for the bidders who are online to
chat directly to the sellers.
5.2 CONCLUSION
e-business offers many advantages of over traditional business. They help

business to overcome the physical constraints like space. They can offer the widest range of
products to customers-business offer fast and accurate transactions to the satisfaction of their
customers without making a huge satisfaction of their customers. Online selling through ebay
helps the users to sell their products at a reasonable price in a short time. It also allows
thousands of users to check availability of a particular product and details of that product and
auction on that. Online transaction of money also helps the company to reduce a lot of paper
works during the audit process. Also this facility offers automated real-time internet
registrations for retailers for a particular product which is available from the company. eInstitute of Management in Kerala
55
business helps the company, to achieve better, faster and cost-competitive business processes,
simplification and standardizations of forms, procedures.
BIBLIOGRAPHY
Web Pages
http://www.ebay.in/
http://www.clickfire.com/ebay-online-auction-tips/
http://www.apdip.net/publications/iespprimers/eprimer-ecom.pdf
http://en.wikipedia.org/wiki/Electronic_business
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http://pages.ebay.com/sellerinformation/starting.html
57

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Chapter 1

excellent opportunity for organization to manage information transparently and to

1.1 SCOPE OF THE STUDY

1.2 OBJECTIVES OF THE STUDY

To fulfil the requirements of the curriculum.

The provided details are based on

Data collected from annual report.

LIMITATIONS OF THE STUDY

Institute of Management in Kerala

Institute of Management in Kerala

E-business: Theoretical Perspective

E-business can be defined from the following perspectives:

Institute of Management in Kerala

Community From a community perspective, e-business provides a

2.1 EVOLUTION OF E-BUSINESS

2.1.1 E-BUSINESS ADVANTAGES

Some advantages that can be achieved from e-business include:

Speed - Electronic communications allow messages to traverse the world almost

Marketspace - The market in which web-based businesses operate is the global

Computer platform-independent - 'Many, if not most, computers have the

ability to communicate via the Internet independent of operating systems and

- 'In many respects,

inherently through automatic deployment of software updates' (Gascoyne &

Stepping beyond borders to a global view - Using aspects of e-business

2.1.2 E-COMMERCE DISADVANTAGES AND CONSTRAINTS

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in Rome! Though specialised or refrigerated transport can be used, goods

Limited and selected sensory information - The Internet is an effective conduit

Returning goods - Returning goods online can be an area of difficulty. The

uncertainties surrounding the initial payment and delivery of goods can be

Privacy, security, payment, identity, contract - Many issues arise - privacy of

information, security of that information and payment details, whether or not

Defined services & the unexpected - E-commerce is an effective means for

web, e-commerce can not provide the richness of interaction provided by

Size and number of transactions - E-commerce is most often conducted using

In practice, e-business is more than just e-commerce. While e-business refers

capabilities, e-commerce is a subset of an overall e-business strategy. e-commerce

Applications can be divided into three categories:

content management system

electronic commerce - business-to-business electronic commerce (B2B) or

2.3 CLASSIFICATION BY PROVIDER AND CONSUMER

2.3.1 B2B-Business to Business

2.3.2 B2C-Business to Consumer

Users of B2C e commerce

2.3.3 C2B-Consumer to Business

2.3.4 B2E-Business to Employee

2.3.5 C2C-Consumer to Consumer

2.4 RELATED AREAS OF E-BUSINESS

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There are six main types of e-procurement:

E-tendering: Sending requests for information and prices to suppliers and

2.4.4 Virtual Community

2.4.6 Collaboration platforms

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2.4.19 Electronic Commerce

2.4.20 Mobile Commerce

2.4.21 Mobile Ticketing

2.5 Advantages of e-business Applications

Institute of Management in Kerala

Secure Payment Systems

Recent advancements in payment technologies allow encrypted, secure

2.6 Enterprise Networking