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E-Commerce Insights and Myths Explained

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0% found this document useful (0 votes)
70 views12 pages

E-Commerce Insights and Myths Explained

Uploaded by

worlddependsonme
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1, What are the Advantages of E- commerce

Faster buying process.


Store and product listing creation.
Cost reduction.
Affordable advertising and marketing.
Flexibility for customers.
No reach limitations.
Product and price comparison.
Faster response to buyer/market demands

2. What is web 2.0

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he second stage of development of the internet, characterized especially by the
change from static web pages to dynamic or user-generated content and the growth
of social media

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3. Differentiate intranet and internet
INTERNET INTRANET

Simultaneously link computers on different Owned by local or private


network / global network E organisations / companies

Support multiple users Users are limited


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Unsafe, not protected Protected and secured

It’s a public network with more traffic A private network and traffic is less

Can transfer unlimited data Can transfer only limited data


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4. Define extranet
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an intranet that can be partially accessed by authorized outside users, enabling


businesses to exchange information over the internet in a secure way.
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5. What is e-tailing?

E-tailing (less frequently: etailing) is the selling of retail goods on the Internet. Short for

"electronic retailing," and used in Internet discussions as early as 1995, the term seems an

almost inevitable addition to e-mail, e-business, and e-commerce.


6) Discuss the common Myths of e-business. (13)
E-commerce keeps getting more popular every year. Statistics show an increase in the number of people
that choose to do their shopping online. There are a lot of myths that appeared connected to both
e-commerce customers and businesses. We have made a list of ten e-commerce myths for businesses
and explained them.

1. It’s easy
A lot of people think that running an e-commerce business is easy, but the reality is different. There are a
lot of obstacles to overcome. If you open an online store, this doesn’t mean that buyers will come. You
need to take care not just of the website, but also of customer service, marketing, logistics, taxes,

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technical issues, delivery options, and many others.

2. You should focus on selling globally from the first day


It might be tempting to target everybody all around the world, but it’s not the best approach when you just

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started your business. A considerable benefit of e-commerce is that you can expose your business to
customers everywhere on the globe. But, especially in the beginning, it is better to focus on the local
market, and after you have established your presence and practices, you can start expanding towards
international markets. SEO is essential for selling both locally and globally.

3. It’s free E
Even if you start your store on an open platform, in the end, you will have costs. The costs include a
monetary part (for example for marketing and advertising) and non-monetary part (for example the time
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you spend on doing tasks that would be done by the developers if you would have chosen a custom
solution).

4. Pictures provided by your manufacturer are enough


Usually, manufacturers provide stock images to all of their sellers. If you want to differentiate yourself and
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make your website stand out, you should either take the pictures yourself or hire a photographer to take
them. Show your product from different angles. Make sure your customers are offered as many details as
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possible.
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5. I must have the lowest prices


Pricing is not the only thing customers take into account in the decision-making process. They take other
things into account, such as website design and responsiveness, complete information about ordering,
shipping and delivery, reviews, etc.

6. Personalization is a waste of time


Customers have a set of personal criteria they use when making a purchase. This is why you need to
appeal directly to each one of them. This problem can be solved by offering a good level of personalization
for everyone that visits your website. Make sure you have useful recommendation algorithms.
7. My products are excellent, so I don’t need to market them
Some people say that word of mouth is still the best form of advertising. Word of mouth is indeed very
powerful, but it’s not the only way your customers should find out about your products. Even if you have
the best products ever, people must know about them. Otherwise, your business will shut down. Build a
good marketing strategy and stick to it.

8. E-mail marketing is not important


Don’t underestimate the power of e-mail marketing. It is still one of the most effective ways of converting
customers. Also, it is easy, inexpensive, and effective. You can customize it and make it tailored to your
audience’s needs. Thanks to mobile phones, people still check their e-mail often. Make sure you don’t send
too many e-mails (every day is too much), but, also, not too rarely (once a month is not enough).

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9. Revenue is everything that you should care about
The ultimate goal of a business is profit, but you should take a close look at other metrics, such as
conversions rate, bounce rate, traffic per channel, and session durations. It is essential to see the
percentage of traffic that is converting, how long does traffic stick around once they get on your page,

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where your traffic is coming from and how long are your potential shoppers staying on your site.

10. Mobile users do not convert


The truth is that in recent years, online traffic from mobile devices has grown significantly. Make sure that
your website is optimized for mobile devices. Otherwise, you will lose customers in favor of other
competitors.
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E-commerce is fun, but you know what else is fun and interesting? Artificial intelligence. In business,
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artificial intelligence has a wide range of uses. As technology evolves, it becomes mandatory for
companies to integrate it into their current business if they want to maintain a competitive advantage.

7) Explain the benefits and limitations of e-business . (13)


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E-business stands for electronic business. Electronic business is also


known as online business. Online business is a business where the
transaction takes place online. Here, the buyer and the seller don’t meet
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personally. The term “e-business” was coined by IBM’s marketing and


Internet team in 1996. E-business is a part of e-commerce. E-commerce
means electronic commerce.

Advantages of e-business
There are actually innumerable advantages of e-Business, the most
obvious one being the ease of doing business. Some of the major
advantages of e-business are as follows :
 Easy to Set Up: It is easy to set up an electronic business. You can set
up an online business even by sitting at home if you have the required
software, a device, and the internet.

 Cheaper than Traditional Business: Electronic business is much


cheaper than traditional business. The cost taken to set up an e-business
is much higher than the cost required to set up a traditional business.
Also, the transaction cost is effectively less.

 No Geographical Boundaries: There are no geographical boundaries for


e-business. Anyone can order anything from anywhere at any time. This is

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one of the benefits of e-business.

 Government Subsidies: Online businesses get benefits from the


government as the government is trying to promote digitalization.

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 Flexible Business Hours: Since the internet is always available.
E-business breaks down the time barriers that location-based businesses
encounter. As long as someone has an Internet connection, you may be
able to reach and sell your product or service to these visitors to your
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business website.
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Limitations of e-Business
But it isn’t all good news. E-business does have certain disadvantages
when compared to the traditional way of doing business. Some of the
limitations of e-business are as follows :
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 Lack of Personal Touch: E-business lacks the personal touch. One


cannot touch or feel the product. So it is difficult for the consumers to
check the quality of a product. Also, the human touch is missing as well.
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In the traditional model, we have contact with the salesperson. This lends
it a touch of humanity and credibility. It also builds trust with the
customer. An e-Business model will always miss out on such attributes.

 Delivery Time: The delivery of the products takes time. In traditional


business, you get the product as soon as you buy it. But that doesn’t
happen in online business. This lag time often discourages customers.
However, e-businesses are trying to resolve such issues by promising
very limited delivery times. For example, Amazon now assures one-day
delivery. This is an improvement but does not resolve the issue
completely

 Security Issues: There are a lot of people who scam through online
business. Also, it is easier for hackers to get your financial details. It has
a few security and integrity issues. This also causes distrust among
potential customers.

8) Explain characteristics of payment of systems


(13)
Characteristics of online payment system:

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Security Since payments involve actual money, payment systems will be a prime target for criminals.
Since Internet services are provided today on networks that are relatively open, the infrastructure
supporting electronic commerce must be usable and resistant to attack in an environment where
eavesdropping and modification of messages is easy.

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Reliability As more commerce is conducted over the Internet, the smooth running of the economy
will come to depend on the availability of the payment infrastructure, making it a target of attack for
vandals. Whether the result of an attack by vandals or simply poor design, an interruption in the
availability of the infrastructure would be catastrophic. For this reason, the infrastructure must be
highly available and should avoid presenting a single point of failure.
Scalability As commercial use of the Internet grows, the demands placed on payment servers will
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grow too. The payment infrastructure as a whole must be able to handle the addition of users and
merchants without suffering a noticeable loss of performance. The existence of central servers
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through which all transactions must be processed will limit the scale of the system. The payment
infrastructure must support multiple servers, distributed across the network.
Anonymity For some transactions, the identity of the parties to the transaction should be protected;
it should not be possible to monitor an individual's spending patterns, nor determine one's source of
income. An individual is traceable in traditional payment systems such as checks and credit cards.
Where anonymity is important, the cost of tracking a transaction should outweigh the value of the
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information that can be obtained by doing so.
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Acceptability The usefulness of a payment mechanisms is dependent upon what one can buy with
it. Thus, a payment instrument must be accepted widely. Where payment mechanisms are supported
by multiple servers, users of one server must be able to transact business with users of other
servers.
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Customer base The acceptability of a payment mechanism is affected by the size of the customer
base, i.e. the number of users able to make payments using the mechanism. Merchants want to sell
products, and without a large enough base of customers using a payment mechanism, it is often not
worth the extra effort for a merchant to accept the mechanism.
Flexibility Alternative forms of payment are needed, depending on the guarantees needed by the
parties to a transaction, the timing of the payment itself, requirements for auditability, performance
requirements, and the amount of the payment. The payment infrastructure should support several
payment methods including instruments analogous to credit cards, personal checks, cashier's
checks, and even anonymous electronic cash. These instruments should be integrated into a
common framework.
Convertibility Users of the Internet will select financial instruments that best suit their needs for a
given transaction. It is likely that several forms of payment will emerge, providing different tradeoffs
with respect to the characteristics just described. In such an environment it is important that funds
represented by one mechanism be easily convertible into funds represented by others.
Efficiency Royalties for access to information may generate frequent payments for small amounts.
Applications must be able to make these "micropayments" without noticeable performance
degradation. The cost per transaction of using the infrastructure must be small enough that it is
insignificant even for transaction amounts on the order of pennies.
Ease of integration Applications must be modified to use the payment infrastructure in order to
make a payment service available to users. Ideally, a common API should be used so that the
integration is not specific to one kind of payment instrument. Support for payment should be
integrated into request-response protocols on which applications are built so that a basic level of
service is available to higher level applications without significant modification.
Ease of use Users should not be constantly interrupted to provide payment information and most
payments should occur automatically. However, users should be able to limit their losses. Payments

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beyond a certain threshold should require approval. Users should be able to monitor their spending
without going out of their way to do so.

9) discuss in details the basics of web server hardware and software

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The term web server can refer to hardware or software, or both of them
working together.
1. On the hardware side, a web server is a computer that stores web server software and a
website's component files (for example, HTML documents, images, CSS stylesheets, and
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JavaScript files). A web server connects to the Internet and supports physical data
interchange with other devices connected to the web.
2. On the software side, a web server includes several parts that control how web users access
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hosted files. At a minimum, this is an HTTP server. An HTTP server is software that
understands URLs (web addresses) and HTTP (the protocol your browser uses to view
webpages). An HTTP server can be accessed through the domain names of the websites it
stores, and it delivers the content of these hosted websites to the end user's device.
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At the most basic level, whenever a browser needs a file that is hosted on a web server, the
browser requests the file via HTTP. When the request reaches the correct (hardware) web
server, the (software) HTTP server accepts the request, finds the requested document, and
sends it back to the browser, also through HTTP. (If the server doesn't find the requested
document, it returns a 404 response instead.)
To publish a website, you need either a static or a dynamic web server.

A static web server, or stack, consists of a computer (hardware) with an HTTP server
(software). We call it "static" because the server sends its hosted files as-is to your browser.

A dynamic web server consists of a static web server plus extra software, most commonly
an application server and a database. We call it "dynamic" because the application server
updates the hosted files before sending content to your browser via the HTTP server.

For example, to produce the final webpages you see in the browser, the application server
might fill an HTML template with content from a database. Sites like MDN or Wikipedia have
thousands of webpages. Typically, these kinds of sites are composed of only a few HTML

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templates and a giant database, rather than thousands of static HTML documents. This
setup makes it easier to maintain and deliver the content.

Deeper dive

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To review: to fetch a webpage, your browser sends a request to the web server, which
searches for the requested file in its own storage space. Upon finding the file, the server
reads it, processes it as-needed, and sends it to the browser. Let's look at those steps in
more detail.

Hosting files
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First, a web server has to store the website's files, namely all HTML documents and their
related assets, including images, CSS stylesheets, JavaScript files, fonts, and video.

Technically, you could host all those files on your own computer, but it's far more convenient
to store files all on a dedicated web server because:
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 A dedicated web server is typically more available. (up and running)
 Excluding downtime and systems troubles, a dedicated web server is always connected to
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the Internet.
 A dedicated web server can have the same IP address all the time. This is known as
a dedicated IP address. (not all ISPs provide a fixed IP address for home lines)
 A dedicated web server is typically maintained by a third-party.
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For all these reasons, finding a good hosting provider is a key part of building your website.
Examine the various services companies offer. Choose one that fits your needs and budget.
(Services range from free to thousands of dollars per month.) You can find more details in
this article.

Once you have web hosting service, you must upload your files to your web server.

Communicating through HTTP

Second, a web server provides support for HTTP (Hypertext Transfer Protocol). As its name
implies, HTTP specifies how to transfer hypertext (linked web documents) between two
computers.

A Protocol is a set of rules for communication between two computers. HTTP is a textual,
stateless protocol.

Textual

All commands are plain-text and human-readable.

Stateless

Neither the server nor the client remember previous communications. For example,
relying on HTTP alone, a server can't remember a password you typed or remember

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your progress on an incomplete transaction. You need an application server for tasks
like that. (We'll cover that sort of technology in other articles.)

HTTP provides clear rules for how a client and server communicate. We'll cover HTTP itself
in a technical article later. For now, just be aware of these things:

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 Usually only clients make HTTP requests, and only to servers. Servers respond to a client's
HTTP request. A server can also populate data into a client cache, in advance of it being
requested, through a mechanism called a server push.
 When requesting a file via HTTP, clients must provide the file's URL.
 The web server must answer every HTTP request, at least with an error message.
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On a web server, the HTTP server is responsible for processing and answering incoming
requests.
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1. Upon receiving a request, an HTTP server first checks if the requested URL matches an
existing file.
2. If so, the web server sends the file content back to the browser. If not, an application server
builds the necessary file.
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3. If neither process is possible, the web server returns an error message to the browser, most
commonly 404 Not Found. The 404 error is so common that some web designers devote
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considerable time and effort to designing 404 error pages.

Static vs. dynamic content


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Roughly speaking, a server can serve either static or dynamic content. Remember that the
term static means "served as-is". Static websites are the easiest to set up, so we suggest
you make your first site a static site.

The term dynamic means that the server processes the content or even generates it on the
fly from a database. This approach provides more flexibility, but the technical stack is more
complex, making it dramatically more challenging to build a website.

There are so many application server technologies that it's difficult to suggest a particular
one. Some application servers cater to specific website categories like blogs, wikis, or
eCommerce; others are more generic. If you're building a dynamic website, take the time to
choose technology that fits your needs. Unless you want to learn web server programming
(which is an exciting area in itself!), you don't need to create your own application server.
10) , What is social media marketing ? Discuss the guide lines
for using social media to promote your business. (14)

Social media marketing is a powerful way for businesses of all sizes to reach
prospects and customers. People discover, learn about, follow, and shop from
brands on social media, so if you’re not on platforms like Facebook, Instagram,
and LinkedIn, you’re missing out! Great marketing on social media can bring
remarkable success to your business, creating devoted brand advocates and even
driving leads and sales.

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In this complete guide to social media marketing, you’re going to learn:
 What social media marketing is, with benefits, stats, and tips.

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 How to build a social media marketing strategy and a plan to carry it out.
 The seven best social media marketing platforms and how to use them

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What is social media marketing?

Social media marketing is a form of digital marketing that leverages the power
of popular social media networks to achieve your marketing and branding goals.
But it’s not just about creating business accounts and posting when you feel like it.
Social media marketing requires an evolving strategy with measurable goals and
includes:
 Maintaining and optimizing your profiles.
 Posting pictures, videos, stories, and live videos that represent your brand
and attract a relevant audience.

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 Responding to comments, shares, and likes and monitoring your reputation.
 Following and engaging with followers, customers, and influencers to build
a community around your brand.

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Social media marketing also includes paid social media advertising, where you
can pay to have your business appear in front of large volumes of highly targeted
users.
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Benefits of social media marketing

With such widespread usage and versatility, social media is one of the most
effective free channels for marketing your business today. Here are some of the
specific benefits of social media marketing:

 Humanize your business: Social media enables you to turn your business
into an active participant in your market. Your profile, posts, and interactions with
users form an approachable persona that your audience can familiarize and
connect with, and come to trust.

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 Drive traffic: Between the link in your profile, blog post links in your posts,
and your ads, social media is a top channel for increasing traffic to your
website where you can convert visitors into customers.
 Generate leads and customers: You can also generate leads and

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conversions directly on these platforms, through features like
Instagram/Facebook shops, direct messaging, call to action buttons on profiles,
and appointment booking capabilities.
 Increase brand awareness: The visual nature of social media platforms
allows you to build your visual identity across vast audiences and improve brand
awareness. And better brand awareness means better results with all your other
campaigns.
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Build relationships: These platforms open up both direct and indirect lines
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of communication with your followers through which you can network, gather
feedback, hold discussions, and connect directly with individuals.
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The bigger and more engaged your audience is on social media networks, the
easier it will be for you to achieve your marketing goals.

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