Assignment Of E-commerce:

Executive

summary:

Utshob.com is one of the best website facilitating online shopping and sending gifts to all cities in Bangladesh. It starts journey from 2004. Its main office is in USA. Its operate business in Dhaka city to whole Bangladesh. Utshob website starts developing in India. Utshob combo is totally a new idea in e-commerce market. Most of the seller offer individual product in their webpage. But in Utshob combo customer can get more then 4 products in a click. So it is easier for buyer to choose the product rather then spending more time to find out product in different category.

This is only one way courier means whole over the world to Bangladesh. This is their main job. They are taking some initiative to expand their business area like wedding planner, travel agent etc and these will be lunch in very soon. In present day almost 4000 items are available in web page. Almost 3000 loyal customer they have in all over the world. assignment of e-commerce Utshob.com is one of the best website facilitating online shopping and sending gifts to all cities in Bangladesh. It offers incredible services in sending gifts to Bangladesh and makes shopping a memorable one. If any customer who is looking for some outstanding service providers facilitating online shopping Bangladesh, look no further than Utshob.com. Send gifts to Bangladesh conveniently and more easily using Utshob.coms online shopping mode. Customer can purchase different kind of products as Utshob.com houses more than 4000 items in their rack list. Customer can send gifts to Bangladesh such as flowers, sarees, cakes, cell phone, shalwar kameez, digital camera and many more to any city in Bangladesh.assignment of e-commerce

Chapter One

1.1What is ecommerce?

The online process of developing, marketing, selling, delivering, servicing, and paying for product & services transacted on internet worked, global marketplace of customer, with the support of a worldwide network of business partners. E-commerce describes the process of buying and selling or exchanging of product, services and information via computer networks including Internet.assignment of ecommerce 1.2 Present situation of eCommerce Electronic commerce has changed the outlook of traditional business trading behavior. It is now common to see business-to-business B2B business-to-consumer B2C and consumerto-consumer C2C commerce on the Internet. However another type of model consumer-tobusiness C2B is seldom found. A possible reason for this phenomenon is transaction cost to unite a group of candidate buyers common needs and preferences to buy a product or service is uneasy. To establish a successful business model in the electronic market however these processes have to be implemented. Collective purchasing is not new to the traditional business. Friends sometimes invite each other to go to a restaurant for a meal and share the expense. People join a tour to share the expense of transportation hotels and other expenditure. In these cases people scarify some of their personal preferences in order to gain benefits from the collectively purchasing behavior. Likewise can we transfer such consumer behavior to the e-market if with a suitable mode land mechanism we believe internet will be an enabler not an obstacle to collective purchasing behavior because people there get easier to setup a group with common interests? The term e-commerce emerged recently when businesses began to realize the role of the internet as a powerful business medium. Companies are increasingly interested in the application of e-commerce as a means to perform business transactions and to enhance their global competitiveness. The raw numbers tell only part of the story. According to Americas Department of Commerce online retail sales in the worlds biggest market last year rose by 26 to 55billion. That sounds a lot of money but it amounts to only 1.6 of total retail sales. The vast majority of people still buy most things in the good old bricks-and-mortar world. But the commerce departments figures deal with only part of the retail industry. For instance they exclude online travel services one of the most successful and fastest-growing sectors of ecommerce. InterActiveCorp IAC the owner of expedia.com and hotels.comalone sold 10 billion-worth of travel last yearand it has plenty of competition not least from airlines hotels and car-rental companies all of which increasingly sell online. Nor do the figures take in things like financial services ticket-sales agencies pornography 2 billion business in America last year according to Adult Video News a trade magazine online dating and a host of other activities from tracing ancestors to gambling worth perhaps6 billion worldwide. They also leave out purchases in grey markets such as the online pharmacies that are thought to

be responsible for a good proportion of the 700m that Americans spent last year on buying cut-price prescription drugs from across the border in Canada. And there is more. The commerce departments figures include the fees earned by internet auction sites but not the value of goods that are sold: an astonishing 24 billion-worth of trade was done last year on eBay the biggest online auctioneer. Nor by definition do they include the billions of dollarsworth of goods bought and sold by businesses connecting to each other over the internet. Some of these B2B services are proprietary for example Wal-Mart tells its suppliers that they must use its own system if they want to be part of its annual turnover of250 billion. So e-commerce is already very big and it is going to get much bigger. But the actual value of transactions currently concluded online is dwarfed by the extraordinary influence the internet is exerting over purchases carried out in the offline world. That influence is becoming an integral part of e-commerce. To start with the internet is profoundly changing consumer behavior. One in five customers walking into a Sears department store in America to buy an electrical appliance will have researched their purchase onlineand most will know down to a dime what they intend to pay. More surprisingly three out of four Americans start shopping for new cars online even though most end up buying them from traditional dealers. The difference is that these customers come to the showroom armed with information about the car and the best available deals. Sometimes they even have computer print-outs identifying the particular vehicle from the dealers stock that they want to buy. Half of the 60m consumers in Europe who have an internet connection bought products offline after having investigated prices and details online according to a study by Forrester are search consultancy see chart 1. Different countries have different habits. In Italy and Spain for instance people are twice as likely to buy offline as online after researching on the internet. But in Britain and Germany the two most developed internet markets the numbers are evenly split. Forrester says that people begin to shop online for simple predictable products such as DVDs and then graduate to more complex items. Used-car sales are now one of the biggest online growth areas in America. People seem to enjoy shopping on the internet if high customer-satisfaction scores are any guide. Websites are doing ever more and cleverer things to serve and entertain their customers and seem set to take a much bigger share of peoples overall spending in the future. This has enormous implications for business. http://www.guguji.cn a company that neglects its website may be committing commercial suicide. A website is increasingly becoming the gateway to a companys brand products and serviceseven if the firm does not sell online. A useless website suggests a useless company and a rival is only a mouse-click away. But even the coolest website will be lost in cyberspace if people cannot find it so companies have to ensure that they appear high up in internet search results. For many users a search site is now their point of entry to the internet. The best-known search engine has already entered the lexicon: people say they have Goggled a company a product or their plumber. The search business has also developed one of the most effective forms of advertising on the internet. And it is already the best way to reach some consumers: teenagers and young men spend more time online than watching television. All this means that search is turning into the internets next big battleground as Google defends itself against challenges from Yahoo and Microsoft. The other way to get noticed online is to offer goods and services

through one of the big sites that already get a lot of traffic. EBay Yahoo and Amazon are becoming huge trading platforms for other companies. But to take part a companys products have to stand up to intense price competition. People check online prices compare them with those in their local high street and may well take a peek at what customers in other countries are paying. Even if websites are prevented from shipping their goods abroad there are plenty of web-based entrepreneurs ready to oblige. Environment in the world says Daniel Rosenstein chief operating officer of Yahoo People want to use the internet whenever they want how they want and for whatever they want. Yahoo is not alone i n defining its strategy as working out what its customers 260munique users every month are looking for and then trying to give it to them. The first thing they want is to become better informed about products and prices. We operate our business on that belief says Jeff Bezos Amazons chief executive. Amazon became famous for books but long ago branched out into selling lots of other things too among its latest ventures are health products,jewellery and gourmet food. Apart from cheap and bulky items such as garden rakesMr Bezos thinks he can sell most things. And so do the millions of people who use eBay. And yet nobody thinks real shops are finished especially those operating in niche markets. Many bricks-and-mortar bookshops still make a good living as do flea markets. But many record shops and travel agents could be in for a tougher time. Erik Blachford the head of IACs travel side and boss of Expedia the biggest internet travel agent thinks online travel bookings in America could quickly move from 20 of the market to more than half. Mr Bezosreckons online retailers might capture 10-15 of retail sales over the next decade. That would represent a massive shift in spending. How will traditional shops respond Michael Dell the founder of Dell which leads the personal-computer market by selling direct to the customer has long thought many shops will turn into showrooms? There are already signs of change on the high street. The latest Apple and Sony stores are designed to display products in the full expectation that many people will buy online. To some extent the online and offline worlds may merge. Multi-channel selling could involve a combination of traditional shops a printed catalogue a home-shopping channel on TV a phone-in order service and an e-commerce-enabled website. But often it is likely to be the website where customers will be encouraged to place their orders. One of the biggest commercial advantages of the internet is a lowering of transaction costs which usually translates directly into lower prices for the consumer. So if the lowest prices can be found on the internet and people like the service they get why would they buy anywhere else One reason may be convenience another concern about fraud which poses the biggest threat to online trade. But as long as the internet continues to deliver price and product information quickly cheaply and securely e-commerce will continue to grow. Increasingly companies will have to assume that customers will know exactly where to look for the best buy. This market has the potential to become as perfect as it gets. The rapid growth of e-commerce has already led to many studies on the adoption and use of e-commerce by organizations. Firms decisions to adopt e-commerce particularly the factors influencing their decisions are of particular interest. Daniel and Grimshaw identified significant factors affecting adoption of ecommerce by organizations cited in previous research and grouped them based on similarity and face validity into four categories of activity. The first factor concerns

competition. Adoption of e-commerce by firms is driven by pressure resulting from adoption by their competitors. Firms believe that lack of adoption would lower their competitive position. The second factor concerns customers. Firms could provide enhanced service for customers through e-commerce such as by entering into a dialogue with customers and by keeping longer opening hours. Additionally adoption of e-commerce is being driven by pressure and by keeping longer opening hours. Additionally adoption of e-commerce is being driven by pressure from customers and suppliers who adopt e-commerce to improve communication and facilitate transactions. Hence the third factor concerns suppliers. Firms can use to find new suppliers and improve purchasing terms particularly with e-commerceadopted suppliers. Finally firms adopt e-commerce based on concerns about internal operations since they believe that e-commerce could lead to cost savings and improvements in internal communication. E-commerce is particularly valuable for enabling businesses to collaborate with suppliers to provide better service to customers and improve the supply chain as well as to compete effectively against major competitors. Many electronic markets have been set up to facilitate-organization transactions and to improve market access for both suppliers and buyers. 1.3 Why it is necessary in Bangladesh:assignment of e-commerce (Part- A)

IT can be very inconvenient for a consumer not getting a product in his locality when it is available in other places. It happens in Khulna and other areas. For example, Khulna residents need to come to Dhaka to buy rare medicines. Students of Rajshahi University need to come to Dhaka to get their reference books at Nilkhet. It would be convenient for them if they could order online. It would save their time as well as money as consumers. For the country, it would increase employment. Online transaction would boost the gross domestic product (GDP) growth and thus help Bangladesh achieve the Millennium Development Goals (MDGs). In the era of globalization, the Internet makes the world smaller and e-commerce facilitates marketing and shopping from home. E-commerce facilitates business with customers over the internet. In e-commerce, customers can buy goods and services over the internet.

We know that traffic jam is a big problem in Bangladesh. If we use ecommerce we can reduce the traffic jam, a question may be arise how eCommerce reduce traffic jam? If we use internet based buying and selling process, then we not need to go shopping mall for buy any product. As a result we will get two benefits no one is reduce traffic jam, and another one is it reduce our fuel cost. Telecommuting is a major advantage of ecommerce. assignment of e-commerce Most people of Bangladesh are poor. Many times we see that the ecommerce business gives discount and free product when we buy one product we get another free from the business. As a result the living standard of the people increases. 1.4 Literature Review 1.4.1 E-commerce business models definition a business concept that has been put into practice. Hamel A loose conception of how a company does business and generates revenue, Porter 1.4.2 E-commerce business models 1) The merchant 2) The service provider 3) The broker 4) The sales representative 5) The advertiser 6) The auction room 7) The virtual mall 8) The virtual community The merchant A merchant is a wholesaler or retailer of goods and services. The merchant provides a website with product information and an online ordering mechanism. Users select the products they want to buy and place an order. The product price can be fixed or negotiable. The merchant makes his money the same way as traditional "brick-andmortar" shops: through the profit margin in the product price. This model is mainly suited for physical goods and services, such as books, computers or a pizza delivery service. The merchant can directly reach end users and sell to them without needing wholesalers or retailers. Click-and-mortar merchants

"Click-and-mortar" shops, combining a website with a physical store, have the additional advantages that they (usually) already have an established brand name, and that they can use their physical store to promote the website. Further, users can return unwanted or defective products simply by going to the store, rather than mailing it to a web site operator. Traditional mail-order businesses (catalog merchants) already have the necessary facilities to process orders over the Internet (basically, orders come in by e-mail rather than by letter or phone, the shipping and handling is the same). assignment of ecommerce Build to order merchants A manufacturer such as a computer vendor can use this model by not only offering his goods or services for sale, but also by offering the ability to order customized versions. The customized product is then assembled individually and shipped to the customer .This provides added value to consumers and allows the manufacturer to create only those products that will be sold. The service provider For some services, the merchant model is quite appropriate. A pizza delivery service can operate on a pay-per-item basis. However, many Internet-based services cannot easily be handled this way. It is often difficult to define the "product" that is sold, or to set a price for this product. For instance, a news site can offer the service of access to its archive, but even one dollar is probably too much for retrieving one article. Some service providers provide advertising-based access to their service, hoping to recover the costs through revenue from the advertisers. However, this appears to be a doomed strategy, since few ad-driven sites are able to get sufficient income (Yahoo! being one of the very few successful ones). Subscription-based access Many service operators provide subscription-based access to their service. A user pays a fixed amount per month or year and in return gets unlimited actions to the service. Alternatively, a base fee can be paid per month and all access beyond a certain limit is subject to a surcharge. This model is typically used when accessing databases with articles, news, and patents but also for online games or adult websites. However, the viability of subscription-based models is doubtful. A 2000 survey by Jupiter Communications found that almost half of all Internet users would not pay to view content on the web.

To entice users into subscribing, "teasers" or selective portions may be made available for free. For example, showing headlines for articles in a news archive or allowing access to patent documents one page at a time. Prepaid access Some services, in particular telephony, require payment by the minute. This can be handled via a subscription, but a viable alternative is prepaid access. In this scheme, users pay a certain amount of money, which gives them access to the service for a certain amount of time, or access to a certain amount of content. When the amount is spent, the user can prepay another amount for further access. assignment of ecommerce Often, implementations involve a smartcard on which the available credit is stored. Payment is realized by buying such a smartcard. The available credit on the smartcard is reduced during usage of the service. Prepay schemes have the advantages that they do not require subscription details to be maintained, and that they give users greater control over how much to spend on the service. The broker Brokers or intermediaries create markets by bringing buyers and sellers together and facilitating transactions between them. Those can be business-to-business (B2B), business-to-consumer (B2C), or consumer-to-consumer (C2C) markets. A broker makes money by charging a fee for every facilitated transaction, for instance as a percentage of the price of the transaction. Some special types of brokers are: Group buying - bringing individual potential buyers together in order to buy as a group, which should result in a lower price for each buyer (volume discounts, etc). Classified ads - sellers can advertise their product on a site where buyers can find it. The broker makes money in various ways: the seller pays a placement fee, or the broker receives a portion of the price paid by the buyer. Bounties - the broker offers a reward for finding a person, thing, idea, or other desired, but hard to find item. The broker may list items for a flat fee, or charge a percentage of the reward if the item is successfully found. An interesting example is Bounty Quest which offers rewards for uncovering prior art for particular patent. The sales representative Sales representatives often work on a commission basis: they sell an item for someone else and get a percentage of the price. On the Web, this model has developed into what is known as affiliate programs or referral fees. Someone creates a website on a particular topic and adds links to products on a merchant site which are related to his

topic, so his visitors can buy those. For example, a music reviewer can add a link in a review to an online music store where the CD being reviewed can be ordered. If the reader likes the review, he can follow the link and buy the CD. The merchant then pays the reviewer a commission or referral fee to the reviewer for referring to his site .This model is realized as follows. The reviewer registers at the merchant site and receives a unique code. He adds this code to all the links to the merchant site whenever he links to a product at that site. When a reader follows the link, the merchant site sees the code and couples the reader's actions to the code. When the reader buys something the site registers the sale together with the code. Later all sales matching that code can be collected so the percentage can be computed and credit to the reviewer.assignment of e-commerce There are many variations on this theme. A fixed percentage can be paid to all sales resulting from the referral or a high percentage can be given to the actual product to which he linked, possibly with a low percentage on other sales that resulted from the link. This model is used by Amazon, Proxies, CD-Now and others. Some book authors link to their own book this way; making more money to the referral fee than to the royalties they get in. Subscription-based services also sometimes offer a referral fee to anyone who brings in a new subscriber. It is easy and safe to participate in an affiliate model, even for individuals. Anyone who can set up a website can link to a product, and if things go well, make money. If not, then no effort or investment is wasted. This explains the popularity of the model on the World-Wide Web. The advertiser Advertising-driven sites are currently one of the cornerstones of E-commerce. The principle is simple and well known. A site offers free access to something and shows advertisements on every page. When a user clicks on an advertisement, he goes to an advertiser's page. The advertiser pays the site operator for showing his advertisement (eyeballs) or for every time someone clicks on the advertisement (click-through). The same idea is popular in computer programs. Users can download and use the program for free but advertisements are shown during operation or startup of the program. In particular, advertisements can be shown when the user needs to wait for some time-consuming operation, such as printing or scanning. Targeted advertising It is well known that an advertisement related to the topic at hand on the site will get higher exposure and click through since such advertisements are targeted to the site visitors. So, the site operator earns more money if he places targeted advertisements .When displaying advertisements in a computer program, it is possible to target the advertisements to the purpose of the program, e.g., a spreadsheet shows

advertisements for a stock brokering service. Racing games, soccer games and the likes commonly show billboards in the game to emulate the look of the real playing field. The advertisements thereon can be chosen as "real" advertisements. assignment of ecommerce Search engines use this idea as well, but relate the advertisements to the keywords entered in a query. For instance, if someone searches information on holidays, an advertisement is shown for a hotel chain on the page with search results .The advertisement can further be targeted based on the user profile for the user doing the search (e.g., if the profile shows the user likes to swim, an advertisement is shown for a beach hotel). The existence of advertising-driven sites created a business opportunity for companies such as Double-Click, which collects advertisements from many sources and arranges for placements on different sites. The sources pay Double-Click for placing their advertisements, and this revenue is then shared with the site owners. Additionally, Double-Click tracks the users that view all the advertisements, which allows it to build a user profile. This profile can then be used to more accurately target advertisements to these users. Updating advertisements It is desirable to be able to present the user fresh advertisements periodically, even when he is not connected to the network. To this end, his browser or other client can download multiple advertisements simultaneously and display them one at a time when he is offline. A screensaver can also be used to present advertisements when the system is idle. The screensaver periodically downloads new advertisements and/or news messages, and presents them to the user. Portal sites A portal offers one-stop access to different content and services, such as searching, news, e-mail, stock information, message boards or chat. By offering the option to personalize the interface and presented content (see, for example, my.cnn.com or my.yahoo.com), the portal is made more attractive to the user. The portal site can target its advertisements based on the personalization information. Attention/incentive marketing In this model, a user downloads and views many advertisements and clicks on them, which generates revenue for the intermediary which provided these advertisements to the users. This revenue is then shared with the users in proportion to the number of advertisements they viewed and clicked on. Often, the user is asked to enter demographic information, which the intermediary shares with the advertisers.

A difficult problem in this area is how to guard against fraud. A user could employ a computer program that automatically clicks on all advertisements sent by the intermediary. This way, he collects a large amount of money without actively seeing the advertisements. Thus, it is recommended to measure the time between showing the advertisement and the user's reaction. If that time is too short, or the same every time, it is likely that something is amiss. If the advertisement is in the form of a video or audio fragment, the user could also be asked to press a particular button or answer a question at some point during the advertisement. Another solution involves the use of a smartcard. The user must insert a smartcard in a television system or the like, and the reward (usually in the form of credits, although digital cash can also be used) is recorded on the smartcard. When the advertisement has been shown, the card is ejected, so that the user must re-insert the card for the next advertisement. Free access Users are given something for free, but the something comes with advertisements. A few examples: free web space providers typically provide advertising banners at the top or bottom of its users' sites (or as a separate, pop-up window). Free Internet access providers show advertisements on the starting page its users see when they go online. Electronic greeting cards are sent with a personal message and an advertisement. Since the user base is very diverse, it is hard to accurately target advertisements, making the expected revenue low. The auction room In an auction, the price of a product is made dependent on what buyers are willing to pay. There are a number of models for performing an auction, the two most well-known being the "open" auction and the "reverse" auction. Open auctions In the "open" auction, participants repeatedly place higher bids for a product under auction. The person who places the highest bid is awarded the product. Networks such as the Internet make it possible for a large number of bidders to participate simultaneously in one auction. Handling bids can even be automated, so that no human auctioneer is necessary. Famous auction site eBay offers the option to participate in an auction automatically. The bidder enters an initial bid, an amount with which to increase the bid and a maximum amount. The system then automatically raises the bid with the indicated

amount whenever someone else places a higher bid, until either the bidder has won the auction or his maximum is reached. Reverse auctions In a "reverse" or "Dutch" auction, the price is initially set at a very high level, and drops at regular intervals. Participants can pick the price at which they want to buy, and have to determine the chance that someone else will find a higher price acceptable. In a variant of the reverse auction, customers indicate a product or service and a price, which they are willing to pay. Suppliers indicate a price at which they are willing to provide that product or service, and the auction service tries to match customers and suppliers. The intermediary pockets the difference between the price paid by the customer and the price paid to the supplier . This model is popular with high-priced items like automobiles or airline tickets. The virtual mall A virtual mall is a site that hosts many merchants, service providers, brokers and other businesses. The virtual mall operator typically charges a fee for setting up and maintaining the merchant's "booth", and for including him in the site-wide catalog. Additionally, he may charge a fee for every transaction the merchant performs. Virtual malls can operate within the context of a larger site, such as a portal. The virtual mall can act as an intermediary between individual customers and the business it hosts, for instance by facilitating payment and guaranteeing a full refund if a merchant does not deliver in time. When the virtual mall offers services such as payment facilitation or catalog browsing, it has the ability to create aggregated user profiles on the customers that visit any of the businesses in the mall. This can lead to the development of highly specialized malls (e.g., oriented at kids or sports lovers). The virtual community A virtual community is a website which has gathered a group of users with a common interest who work together on the site. Typically, users will share information and make contributions in other ways. Since they have contributed to it themselves, users feel highly loyal to the site and will visit it regularly. This offers possibilities for advertising. Probably the largest virtual community can be found on Slashdot, a Linux-oriented site on which users share interesting news articles and websites (which invariably fail under the load of hundreds of thousands of people visiting it shortly after its URL got posted on Slashdot - this is called "slashdotting"). A specialized type of virtual community is the knowledge network or expert site, where people, layman and expert, share their expertise and experiences. These sites are typically ran like a forum where participants can get questions answered or raise topics

for discussion. Long-time participants often meet together in real life. Usenet newsgroups are a good example of such a community.