E-commerce management system

Abstract: -
Electronic Commerce is process of doing business through computer networks. A person
sitting on his chair in front of a computer can access all the facilities of the Internet to buy or sell
the products. Unlike traditional commerce that is carried out physically with effort of a person to
go & get products, ecommerce has made it easier for human to reduce physical work and to save
time. E-Commerce which was started in early 1990’s has taken a great leap in the world of
computers, but the fact that has hindered the growth of ecommerce is security. Security is the
challenge facing e-commerce today & there is still a lot of advancement made in the field of
security. The main advantage of e-commerce over traditional commerce is the user can browse
online shops, compare prices and order merchandise sitting at home on their PC. For increasing
the use of e-commerce in developing countries the B2B e-commerce is implemented for
improving access to global markets for firms in developing countries. For a developing country
advancement in the field of e-commerce is essential. The research strategy shows the importance
of the e-commerce in developing countries for business applications.
Introduction
As the retail industry continues to change rapidly, retailers need increasingly sophisticated
ecommerce management solutions to stay competitive. Consumers today expect to engage in Omni
channel ecommerce, using multiple devices and moving between online and offline channels with
ease. Unaware of the complications this creates for retailers, consumers expect merchants to
seamlessly accommodate their Omni channel shopping experience. But only the most advanced
ecommerce management technology can deliver the infrastructure to meet consumer demands
today and to integrate the new ecommerce technologies that will emerge tomorrow. We are going
to highlight various constraints to commerce and trade in general and ecommerce in particular.
Many of these constraints are endemic across the business sector and demands major reforms
through strong political commitment and an ability to implement policy changes. A list of specific
constraints to e-commerce that policy makers can address in the short and medium term is
summarized below.

 Too few telephone connections.

 Absence of a strong independent regulatory body for the telecommunication sector.
 Absence of encryption law that precludes acceptance of digital signature.
 Strong dependence of Letter of Credit to conduct international transactions.
 Non-issuance of international credit cards for cross border transactions.
 Interest rate ceiling on export loans.

Now these days online order through shopping cart has made the life very straightforward
for both customers and shoppers. The customer can browse different items by sitting in their home
with comfort.
But this is on the form of
C2C (Consumer to Consumer) e-commerce area.
B2B (Business to Business) is getting very popular also and making the business very easy,
trouble free era.
B2C solution e-commerce portal. Through which buyers of every region of the word will
be able to get their products in one platform. This portal will be work as an online directory.
Government regulation
In the United States, certain electronic commerce activities are regulated by the Federal
Trade Commission (FTC). These activities include the use of commercial e-mails, online
advertising and consumer privacy. The CAN-SPAM Act of 2003 establishes national standards
for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of
advertising, including online advertising, and states that advertising must be truthful and non-
deceptive. Using its authority under Section 5 of the FTC Act, which prohibits unfair or deceptive
practices, the FTC has brought a number of cases to enforce the promises in corporate privacy
statements, including promises about the security of consumers' personal information. As a result,
any corporate privacy policy related to e-commerce activity may be subject to enforcement by the
FTC.
The Ryan Haight Online Pharmacy Consumer Protection Act of 2008, which came into
law in 2008, amends the Controlled Substances Act to address online pharmacies. Conflict of laws
in cyberspace is a major hurdle for harmonization of legal framework for e-commerce around the
world. In order to give a uniformity to e-commerce law around the world, many countries adopted
the UNCITRAL Model Law on Electronic Commerce (1996).
Internationally there is the International Consumer Protection and Enforcement Network
(ICPEN), which was formed in 1991 from an informal network of government customer fair trade
organisations. The purpose was stated as being to find ways of co-operating on tackling consumer
problems connected with cross-border transactions in both goods and services, and to help ensure
exchanges of information among the participants for mutual benefit and understanding. From this
came Econsumer.gov, an ICPEN initiative since April 2001. It is a portal to report complaints
about online and related transactions with foreign companies.
There is also Asia Pacific Economic Cooperation (APEC) was established in 1989 with the
vision of achieving stability, security and prosperity for the region through free and open trade and
investment. APEC has an Electronic Commerce Steering Group as well as working on common
privacy regulations throughout the APEC region.
In Australia, Trade is covered under Australian Treasury Guidelines for electronic
commerce and the Australian Competition and Consumer Commission regulates and offers advice
on how to deal with businesses online, and offers specific advice on what happens if things go
wrong.
In the United Kingdom, The Financial Services Authority (FSA) was formerly the
regulating authority for most aspects of the EU's Payment Services Directive (PSD), until its
replacement in 2013 by the Prudential Regulation Authority and the Financial Conduct Authority.
The UK implemented the PSD through the Payment Services Regulations 2009 (PSRs), which
came into effect on 1 November 2009. The PSR affects firms providing payment services and their
customers. These firms include banks, non-bank credit card issuers and non-bank merchant
acquirers, e-money issuers, etc. The PSRs created a new class of regulated firms known as payment
institutions (PIs), who are subject to prudential requirements. Article 87 of the PSD requires the
European Commission to report on the implementation and impact of the PSD by 1 November
2012.
In India, the Information Technology Act 2000 governs the basic applicability of e-
commerce.
 In China, the Telecommunications Regulations of the People's Republic of China
(promulgated on 25 September 2000), stipulated the Ministry of Industry and Information
Technology (MIIT) as the government department regulating all telecommunications related
activities, including electronic commerce. On the same day, The Administrative Measures on
Internet Information Services released, is the first administrative regulation to address profit-
generating activities conducted through the Internet, and lay the foundation for future regulations
governing e-commerce in China. On 28 August 2004, the eleventh session of the tenth NPC
Standing Committee adopted The Electronic Signature Law, which regulates data message,
electronic signature authentication and legal liability issues. It is considered the first law in China's
e-commerce legislation. It was a milestone in the course of improving China's electronic commerce
legislation, and also marks the entering of China's rapid development stage for electronic
commerce legislation.

Supply chain management

For a long time, companies had been troubled by the gap between the benefits which supply
chain technology has and the solutions to deliver those benefits. However, the emergence of e-
commerce has provided a more practical and effective way of delivering the benefits of the new
supply chain technologies.
E-commerce has the capability to integrate all inter-company and intra-company functions,
meaning that the three flows (physical flow, financial flow and information flow) of the supply
chain could be also affected by e-commerce. The affections on physical flows improved the way
of product and inventory movement level for companies. For the information flows, e-commerce
optimized the capacity of information processing than companies used to have, and for the
financial flows, e-commerce allows companies to have more efficient payment and settlement
solutions.
In addition, e-commerce has a more sophisticated level of impact on supply chains: Firstly, the
performance gap will be eliminated since companies can identify gaps between different levels of
supply chains by electronic means of solutions; Secondly, as a result of e-commerce emergence,
new capabilities such implementing ERP systems, like SAP ERP, Xero, or Megaventory, have
helped companies to manage operations with customers and suppliers. Yet these new capabilities
are still not fully exploited. Thirdly, technology companies would keep investing on new e-
commerce software solutions as they are expecting investment return. Fourthly, e-commerce
would help to solve many aspects of issues that companies may feel difficult to cope with, such as
political barriers or cross-country changes. Finally, e-commerce provides companies a more
efficient and effective way to collaborate with each other within the supply chain.

Impact on employment
E-commerce helps create new job opportunities due to information related services,
software app and digital products. It also causes job losses. The areas with the greatest predicted
job-loss are retail, postal, and travel agencies. The development of e-commerce will create jobs
that require highly skilled workers to manage large amounts of information, customer demands,
and production processes. In contrast, people with poor technical skills cannot enjoy the wages
welfare. On the other hand, because e-commerce requires sufficient stocks that could be delivered
to customers in time, the warehouse becomes an important element. Warehouse needs more staff
to manage, supervise and organize, thus the condition of warehouse environment will be concerned
by employees.

Impact on customers
E-commerce brings convenience for customers as they do not have to leave home and only
need to browse website online, especially for buying the products which are not sold in nearby
shops. It could help customers buy wider range of products and save customers’ time. Consumers
also gain power through online shopping. They are able to research products and compare prices
among retailers. Also, online shopping often provides sales promotion or discounts code, thus it is
more price effective for customers. Moreover, e-commerce provides products’ detailed
information; even the in-store staff cannot offer such detailed explanation. Customers can also
review and track the order history online.
E-commerce technologies cut transaction costs by allowing both manufactures and consumers to
skip through the intermediaries. This is achieved through by extending the search area best price
deals and by group purchase. The success of e-commerce in urban and regional levels depend on
how the local firms and consumers have adopted to e-commerce.
However, e-commerce lacks human interaction for customers, especially who prefer face-to-face
connection. Customers are also concerned with the security of online transactions and tend to
remain loyal to well-known retailers. In recent years, clothing retailers such as Tommy
Hilfiger have started adding Virtual Fit platforms to their e-commerce sites to reduce the risk of
customers buying the wrong sized clothes, although these vary greatly in their fit for purpose.
When the customer regret the purchase of a product, it involves returning goods and refunding
process. This process is inconvenient as customers need to pack and post the goods. If the products
are expensive, large or fragile, it refers to safety issues.

Impact on traditional retail

E-commerce has been cited as a major force for the failure of major U.S. retailers in a trend
frequently referred to as a "retail apocalypse." The rise of e-commerce outlets like Amazon has
made it harder for traditional retailers to attract customers to their stores and forced companies to
change their sales strategies. Many companies have turned to sales promotions and increased
digital efforts to lure shoppers while shutting down brick-and-mortar locations. The trend has
forced some traditional retailers to shutter its brick and mortar operations.

Timeline development of E-commerce

 1971 or 1972: The ARPANET is used to arrange a cannabis sale between students at
the Stanford Artificial Intelligence Laboratory and the Massachusetts Institute of Technology,
later described as "the seminal act of e-commerce" in John Markoff's book What the Dormouse
Said.
 1972: Mohamed M. Atalla files a patent for a secure transaction system
over telecommunications networks, utilizing encryption techniques to assure telephone link
security, a precursor to Internet-based e-commerce.
 1976: Atalla Technovation (founded by Mohamed Atalla) and Bunker Ramo
Corporation (founded by George Bunker and Simon Ramo) introduce products designed for
secure online transaction processing, intended for financial institutions.
 1979: Michael Aldrich demonstrates the first online shopping system.
 1981: Thomson Holidays UK is the first business-to-business (B2B) online shopping system
to be installed.
 1982: Minitel was introduced nationwide in France by France Télécom and used for online
ordering.
 1983: California State Assembly holds first hearing on "electronic commerce" in Volcano,
California. Testifying are CPUC, MCI Mail, Prodigy, CompuServe, Volcano Telephone, and
Pacific Telesis. (Not permitted to testify is Quantum Technology, later to become AOL.)
 1984: Gateshead SIS/Tesco is first B2C online shopping system[10] and Mrs Snowball, 72, is
the first online home shopper
 1984: In April 1984, CompuServe launches the Electronic Mall in the US and Canada. It is the
first comprehensive electronic commerce service.
 1989: In May 1989, Sequoia Data Corp. Introduced Compumarket, the first internet based
system for e-commerce. Sellers and buyers could post items for sale and buyers could search
the database and make purchases with a credit card.
 1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using
a NeXT computer.
 1992: Book Stacks Unlimited in Cleveland opens a commercial sales website
(www.books.com) selling books online with credit card processing.
 1993: Paget Press releases edition No. 3 of the first app store, The Electronic AppWrapper
 1994: Netscape releases the Navigator browser in October under the code
name Mozilla. Netscape 1.0 is introduced in late 1994 with SSL encryption that made
transactions secure.
 1994: Ipswitch IMail Server becomes the first software available online for sale and immediate
download via a partnership between Ipswitch, Inc. and OpenMarket.
 1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase
through NetMarket.
 1995: The US National Science Foundation lifts its former strict prohibition of commercial
enterprise on the Internet.
 1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield, Product Manager
for CompuServe UK, from W H Smith's shop within CompuServe's UK Shopping Centre is
the UK's first national online shopping service secure transaction. The shopping service at
launch featured W H Smith, Tesco, Virgin Megastores/Our Price, Great Universal Stores
(GUS), Interflora, Dixons Retail, Past Times, PC World (retailer) and Innovations.
 1995: Amazon.com is launched by Jeff Bezos.
 1995: eBay is founded by computer programmer Pierre Omidyar as AuctionWeb. It is the
first online auction site supporting person-to-person transactions.
 1995: The first commercial-free 24-hour, internet-only radio stations, Radio HK
and NetRadio start broadcasting.
 1996: The use of Excalibur BBS with replicated "Storefronts" was an early implementation of
electronic commerce started by a group of SysOps in Australia and replicated to global partner
sites.
 1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.
 1999: Alibaba Group is established in China. Business.com sold for US$7.5 million to
companies, which was purchased in 1997 for US$149,000. The peer-to-peer filesharing
software Napster launches. ATG Stores launches to sell decorative items for the home online.
 1999: Global e-commerce reaches $150 billion
 2000: The dot-com bust.
 2001: eBay has the largest userbase of any e-commerce site.
 2001: Alibaba.com achieved profitability in December 2001.
 2002: eBay acquires PayPal for $1.5 billion. Niche retail companies Wayfair and Net
Shops are founded with the concept of selling products through several targeted domains,
rather than a central portal.
 2003: Amazon.com posts first yearly profit.
 2004: DHgate.com, China's first online B2B transaction platform, is established, forcing other
B2B sites to move away from the "yellow pages" model.
 2007: Business.com acquired by R.H. Donnelley for $345 million.
 2014: US e-commerce and Online Retail sales projected to reach $294 billion, an increase of
12 percent over 2013 and 9% of all retail sales. Alibaba Group has the largest Initial public
offering ever, worth $25 billion.
 2015: Amazon.com accounts for more than half of all e-commerce growth, selling almost 500
Million SKU's in the US.
 2017: Retail e-commerce sales across the world reaches $2.304 trillion, which was a 24.8
percent increase than previous year.
 2017: Global e-commerce transactions generate $29.267 trillion, including $25.516 trillion for
business-to-business (B2B) transactions and $3.851 trillion for business-to-consumer (B2C)
sales.

2. Existing Model
The working ecommerce customers can buy the products from there own place with their
compatibles in this processing C2C area is getting some security issues product and banking fraud
and also B2C is not unique contracted area in this medium some malware attacking are happening
By this attacks many consequences are happening and also wrong product distribution and banking
problems. And in existing process style no repayment process is available.

3. Proposed Model
The commonly listed functions and features revolve mainly around the transaction
processing capabilities of an e-commerce system. As noted earlier, however, e-commerce systems,
like most information systems, provide information to support the management of the
organization. It brings into being a virtual marketplace with new relationships among businesses
and consumers. E-commerce represents not only the ability to purchase and sell goods and services
via a digital medium such as the internet, but also the ability to automate the entire sales and
purchase process.
A typical goods or services business will have the following business processes:
 Customer support
 Sales
 Refunds
 Inventory management
 Customer information management
 Marketing
E-commerce can be divided into primarily three categories:
Business to consumer (B2C):
Where enterprises sell directly to the customer, often cutting out (‘disinter mediating’)
wholesalers or ‘bricks and mortars’ retail outlets. B2C is the most commonly understood form of
internet business (www.amazon.com). The most successful trading has been with standard
products such as CDs, Books, Software, downloadable music etc.
Business to Business (B2B):
it is larger, growing faster. This includes procurements of raw materials and supplies,
liaison with contractors, sales channels, servicing customers, collaborating with partners,
integrated management with data and knowledge.
Business to Government (B2G):
Here business trade directly with government offices and agencies for public procurement
(e.g. supplies for hospitals, school and other government contracts.
Consumer to consumer (C2C):
Online transaction between private individuals.
Consumer to business (C2B)

4.1 Components Of An E-Commerce System

An E-commerce system consists of a number of vital components:
  A database
 E-commerce website
 Security system
 Payment gateway
These 4 components make up the Content Management System, which is the core of the E-
commerce system.
The following diagram shows how these components fit together:

Each of the 4 components of a CMS will be described in more detail in the rest of this section.

4.1.1 Database
We are going to use MySQL because it is characterized as a free, fast, reliable open source
relational database. It does lack some sophistication and facilities, but it has an active development
team and, as it goes from release to release, more capabilities are added.
I choose this database because:
 Because of its unique storage engine architecture MySQL performance is very high and
lightweight.
 Supports large number of embedded applications which makes MySQL very flexible.

 Use of Triggers, Stored procedures and views which allows the developer to give a higher
productivity.  Allows transactions to be rolled back, commit and crash recovery.

4.1.2 Website
The website of the e-commerce system is the interface which a user, such as an online
shopper, will use to interact with the business. This means that all the information relevant to the
user has to be displayed on the website in a comprehensive manner. This information will include
product information, order status, shipping and billing addresses, etc. Much research has gone into
making e-commerce website interfaces more userfriendly and helpful to the online shopper.
Recommender systems are an example of this as they present the online shopper with product
recommendations based on the shopper’s purchase history. Studies have shown that by doing this,
e-commerce businesses can increase their sales volumes. An e-commerce front-end can be either
an application or a website. The former can be written in practically any programming language
that can interface with a database (C++, Java, Visual Basic, etc.). The latter can be developed using
a web language (PHP, HTML, ASP, etc.).

4.1.3 SECURITY
As electronic commerce grows, so does the number of online commercial transactions
involve the exchange of sensitive information, such as credit card details and people’s personal
information. This brings a need for better privacy and security as more and more online shoppers
are exposed to hacking and fraud. A widely used solution to the problem of fraud in e-commerce
is certification authorities such as Thawte and VeriSign. These authorities can issue a certificate
to an e-commerce business only if it meets certain security standards. This ensures that the two
parties involved in an online commercial transaction are really who they claim to be. A widely
used solution to the hacker problem is a Secure Socket Layer (or SSL) , which allows information
exchanged between two parties to be encrypted. This can help prevent any unauthorized third party
from intercepting sensitive information.

4.1.4 PAYMENT GATEWAY

An online business transaction cannot occur without some sort of payment gateway. A
payment gateway allows funds to be transferred electronically from the purchaser to the seller. In
the late 90’s a non-bank payment service was introduced to electronic commerce: PayPal [14].
Today, this eBay owned service allows consumers to make online credit purchases and even
transfer funds to another person (called C2C or consumer to-consumer transactions).
4.3DEVELOPMENT PROCESS
 There are many ecommerce systems but most don’t have some features like SMS
confirmation in Bangladesh based and export date for other software use available on the market.
However, if I want to develop online e-commerce system from scratch, one can use a 5-step
development process
Step 1: Requirements analysis
Step 2: Sub-system selection
Step 3: Prototype development
Step 4: GUI development
Step 5: Integration and system test.

IV. System Models

The E-commerce portal will consist of a set of many interacting objects or entities. Using
Object Oriented Analysis, the following objects were extracted from the project requirement
1. CUSTOMER
  First name and surname
 Shipping address
 Billing address
 Telephone number
 E-mail address
2. Product
 Price
 Product description
 Supplying vendor
 Quantity available
 Category
3. Order
 List of products
 Customer who placed the order
 Total value
 Payment method
 Date created
 Status
4. Image
 Image description
 Filename.

V. Business process modeling

VI. Data flow diagram
VII. process modeling

Use case diagram for buying product

Here the user will come to the shop and view the product information. Then the user will
add the product to the cart and finally place the payment information.

1. Use Case Diagram for Admin

 Use case diagram for admin

Admin can add edit categories and products and control the stock. They can check the payment
status and update the payment status if required.
7.2 Admins Add product and category
Admins Add product and category
7.2.3 Sequence diagram for product shopping

Sequence diagram for product shopping

 5. Product Shopping Feature
Shopping cart seems to be a web pages containing products this will contain a link "Add to
Cart" button; selecting an item for purchase this will add the product and you will be able to see
the products quantity are increased and similarly you will be able add multiple products. On the
inside, a shopping cart is maintained by PHP Sessions allows you to add and delete products, set
up categories, take orders, and sometimes other functionalities such as allowing you to email
shipping information to customers etc. On the Shopping Cart Page, the users can modify modifies
the quantity of an Item in the Shopping Cart, and then presses the Update button. The system stores
the new quantity, and then computes and displays the new cost for that Item.

Use case diagram for product shipping

9. Conclusion
This paper represents the full development and evaluation process of the e-commerce
portal. The aim of the paper was to create an e-commerce portal that allows products buyer’s a
single one stop marketplace or home to purchase their products. They can also manage their
products, payments, currencies etc. The design process involved usability studies into how the e-
commerce website should be presented to the users as well as to determine the best design for the
customer administration feature and the vendor portal. Using use-cases, website models, and
database models, a final design for the system was successfully developed. The implementation
process involved setting up a ecommerce System. All the features were developed in PHP, to
maintain consistency with the rest of the System and to ensure seamless integration of the new
features with the original System. The vendor feature gave customers access to their personal
details, their product information.
Future Work
The country needs intermediary institutions to complete transactions. And fortunately,
banks, Visa and Master Card operating in Bangladesh, can do it. Bangladesh has the infrastructure
to start. Stable internet connection and a law supporting e-commerce are prerequisites. The
government needs to make a realistic ecommerce law. It should work in collaboration with the
private sector to ensure a stable and reliable internet connection. E-commerce facilitates payment
of utility bills, fees etc. Limited time and resources were the key bindings for this project. While
doing the project many important features had been skipped for the simplicity of the project.
Below some points showing the future considerations of this project:
 The involvement of local bank credit card transaction can be implemented.
 The entire project can be implemented online to get the realistic feedback from its users.
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