Introduction to E-Commerce and M-Commerce Study Notes

Electronic Commerce (E-Commerce) is defined as the buying, selling, transferring, or exchanging of products, services, or information via computer networks, with a primary focus on the Internet.
The focus of E-Commerce is largely on external, customer-facing transactions.
Examples of E-Commerce include:
- Purchasing a jacket on the Daraz platform.
- Booking a flight ticket online through Buddha Air.
Electronic Business (E-Business) is a broader concept that encompasses E-Commerce (buying and selling goods online) but also includes:
- Conducting internal business operations.
- Serving customers.
- Collaborating with business partners.
- Managing electronic workflows within an enterprise.
The relationship between the two is defined by the following formula: $E\text{-Commerce} \subset E\text{-Business}$ This indicates that E-Commerce is a formal subset of E-Business.
Example of E-Business: A manufacturing plant that utilizes an integrated web system to track raw material inventory, coordinate supply chain logistics, and manage internal Human Resources (HR) functions.

Every commercial transaction consists of $3$ primary dimensions:
1. Product (Physical or Digital).
2. Process (Physical or Digital).
3. Delivery (Physical or Digital).
Pure E-Commerce occurs when all $3$ dimensions are entirely digital.
- Examples: Purchasing a software license, downloading an eBook, or buying a gaming key online where the ordering, payment, and delivery all occur digitally.
Partial E-Commerce occurs when at least one of the three dimensions is physical.
- Example: Ordering a physical pair of shoes on Daraz. Even if the ordering and payment processes are digital, the product itself and the delivery method are physical.

The E-Commerce framework serves as the structural foundation necessary to build and support electronic transactions across an enterprise.
Structure of the Framework:
- E-Commerce Applications: These sit at the top and include Online Banking, Shopping, Auctions, and Travel.
- Supporting Pillars: These provide the necessary environment and include:
  1. People: Buyers and Sellers.
  2. Public Policy: Laws and Privacy regulations.
  3. Technical Standards: Protocols.
  4. Organizations: Partners.
- Infrastructure: The base layer consisting of Hardware, Networks (Telecom, Wi-Fi), Software, and Web Servers.

Business-to-Consumer (B2C): Businesses selling directly to individual end-users. An example is Daraz selling a smartphone to a customer.
Business-to-Business (B2B): Transactions taking place between two business entities. An example is a textile mill selling raw fabric to a clothing factory.
Consumer-to-Consumer (C2C): Individual consumers selling directly to other consumers. An example is selling a used laptop on Hamrobazar.
Consumer-to-Business (C2B): Individuals offering products or services to organizations. An example is a freelance programmer selling custom scripts on Upwork.
Government-to-Citizen (G2C) / Citizen-to-Government (C2G): Government entities delivering digital services directly to citizens. Examples include paying vehicle revenue tax or renewing licenses via the Nagarik App.

An Electronic Market is a virtual platform where buyers and sellers meet online to exchange goods, services, or information.
Core Components of an E-Marketplace:
- Buyers and Sellers.
- Digital Catalogs.
- Front-End Interface.
- Back-End Logistics and Database.
- Intermediaries, such as Payment Gateways.
Private E-Marketplace: This is owned and operated by a single company for its select network of buyers and suppliers.
Public E-Marketplace: These are B2B or B2C portals operated by third parties and are accessible to all buyers and sellers. Examples include Amazon and Alibaba.

Global Reach: The Internet eliminates geographical boundaries, which enables even small businesses to operate on a $24/7$ basis globally.
Operational Cost Reduction: Expenditures for physical storefronts are minimized, and processes like catalog updates and order processing are automated.
Interactivity and Personalization: The web facilitates rich multimedia experiences, such as $3D$ previews, video demonstrations, and live chat, while allowing for personalized user journeys.

Benefits for Businesses:
- Reduced operational overhead.
- Direct access to global markets.
- Automated stock tracking.
Benefits for Consumers:
- Anytime and anywhere shopping convenience.
- Rapid price comparisons across different vendors.
- Access to a broader product catalog.
Technical Limitations:
- Server downtime occurring during traffic spikes.
- Vulnerability to various cyber threats.
- A lack of universal software standards.
Non-Technical Barriers:
- Consumer fears regarding privacy.
- The inability to physically inspect or touch products before purchase.
- A lack of trust in online payment channels.

Social Networks (SNS): These are virtual platforms designed specifically to connect users and build communities. Examples include Facebook, Instagram, and TikTok.
Social Commerce (S-Commerce): This is a subset of E-Commerce that leverages social media platforms to facilitate direct product browsing, marketing, and sales transactions. Examples include Facebook Marketplace and Instagram Shopping shops.

Mobile Commerce relates to commercial transactions conducted specifically through wireless handheld devices like smartphones and tablets.
Key Attributes of M-Commerce:
- Ubiquity: Services can be accessed anywhere and at any time without a desktop setup.
- Personalization: Information is customized based on the user's profile and mobile habits.
- Convenience and Speed: Users have instant access through specialized applications and contact-free QR payments.
- Reachability: Direct, real-time push notifications can be sent to users at any time.

L-Commerce is a specialized segment of M-Commerce that delivers targeted products, services, or information based on the user's real-time physical location.
L-Commerce Infrastructure:
- Location Tracking: Utilizing GPS, Wi-Fi, and Cell-Towers.
- Wireless: Utilizing $4G$ , $5G$ , and generic Telecommunications.
- Applications: Platforms such as Maps, Pathao, and Foodmandu.
Location-Based Services (LBS) and Applications:
- Positioning Systems: These identify physical coordinates using GPS, Wi-Fi triangulation, or cell tower signals.
- Navigation and Mapping: These systems calculate routes, distances, and monitor real-time traffic conditions.
- Ride-Hailing Applications: Platforms like Pathao or InDrive that match users with nearby drivers.
- On-Demand Logistics: Apps like Foodmandu that track the live positions of delivery riders on a map.
- Geofenced Marketing: The practice of sending automated promotional messages when a user enters a designated geographical zone.