Zubair Report X (1) (Repaired) (Repaired) (Repaired) (Repaired)

8/18/2019 Zubair Report X (1) (Repaired) (Repaired) (Repaired) (Repaired)

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Internship report

on

Problems and prospects of E-Commerce in Bangladesh:

A Study on Rokomaricom

Submitted to

Prof. Dr. Md. Jakir Hossain

Chairman

Department of marketing

Jagannath University

Dhaka

Submitted by

Saifuddin Zubair

ID !""#$#%#"%

&th bat'h



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.

!etter of "ransmittal

$(th )ebruary $#"&


Supervisor



Dhaka

Sub#ect: Submission of Internship Report

Dear sir*

+ith due respe't * I am p,eased to submit my internship report on Prob,ems and prospe'ts of

-Commer'e in !ang,adesh / study on 0okomari.'om. to fu,fi,, the re1uirement of ba'he,or

degree under your supervision. It has been 2orth2hi,e e3perien'e for me in undertaking su'h

a report 2ork to get e3posure to the rea, ,ife -Commer'e organi4ation. I have given my best

effort satisfied the a'ademi' re1uirement.

In this report * I ana,y4ed 0okomari.'om and 2orked as their pub,i' re,ation and events and

a,so branding team as 2e,, . I 2ou,d ,ike to thank you for your en'ouragement and support

2hi'h inspired me to 2ork enthusiasti'a,,y. It 2ou,d be my p,easure to respond to any of

yours in1uiries regarding the report.

Sin'ere,y yours

Saifuddin Zubair

ID ""#$#%#"%

&th !at'h


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$eclaration

I* Saifuddin Zubair student of Department of Marketing * Jagannath University hereby de',are

that the internship report on 5 Prob,ems and Prospe'ts of -Commer'e in !ang,adesh / study

on 0okomari.'om.5 is an origina, and this report has not been submitted or pub,ished

e,se2here . 6his is report is done by me for the partia, fu,fi,,ment of !.!./ *as a part of my

a'ademi' 'urri'u,um.

.............................................

Saifuddin Zubair

ID !""#$#%#"%

&th bat'h

Department of Marketing


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.

!etter of Acceptance

6his is to 'ertify that * Saifuddin Zubair Student of !.!./ &th bat'h ID 7o. !""#$#%#"%*

Department of Marketing* Jagannath University Dhaka has prepared his report under my

guidan'e. 6his report 'an be a''epted for eva,uation . I 2ish him every su''ess in ,ife .


supervisor




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Ackno%ledgement

I am a,so gratefu, to the Human 0esour'e Department of 0okomari.'om for granting me the

opportunity to make my internship program in this organi4ation. /t first I 2ou,d ,ike toe3press my deepest sense of gratitude and gratefu,ness to a,mighty 'reator . I have 'omp,eted

my internship in 0okomari.'om at Moti8hee,. . My internship 2ont be possib,e 2ithout the

'ontribution of fe2 peop,e .+ith profound regard I gratefu,,y a'kno2,edge my respe'ted

tea'her and supervisor Prof. Dr. Md. Jakir Hossain* Chairman of Department of marketing*

Jagannath University for his generous he,p and suggestion in the pro'ess of my internship

report.

7e3t I 2ou,d ,ike to sho2 my gratitude to /bu !okor Siddi1ue 0a8u * head of pub,i' re,ation

and events for being e3treme,y supportive to me . I 'annot thank enough to a,, the personne,

of 0okomari.'om.. 6hey have e3p,ained everything I asked for in detai,s. 6hroughout time

they 2ere never impatien'e. 6hey did not a,,o2 me to fee, un'omfortab,e for even a sing,e

moment. I am rea,,y gratefu, to a,, for their supportive and friend,y behavior. I a,so sho2 my

appre'iation to my friends for their he,p in 'reating this report .


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E&ecuti'e Summary

6housands of deve,opment organi4ations have gone on,ine in the past five years* having

rea,i4ed the importan'e of the Internet for the e3'hange and distribution of information and

a,so good and servi'e . 6he topi' of my report is the prob,em and prospe'ts of -Commer'e

in !ang,adesh and a study on 0okomari.'om . 6he broad ob8e'tive of this report is to find out

2hat prob,ems does -Commer'e site fa'es * 2hat are the potentia, of these -Commer'e

sites in the e'onomy and as a -Commer'e site ho2 2e,, 0okomari.'om is doing .

6he first part of this report 'ontains the introdu'tory part * the rationa, of the study . +hat

inspired me in 'hoosing this topi' . 6his part a,so points out the ob8e'tives of this study * there

is genera, and four spe'ifi' ob8e'tive in this study . In this se'tion methods of data 'o,,e'tion

for study purpose is des'ribed as 2e,, as ,iterature revie2 and the ,imitation had to fa'e in

'reating this report.

In the se'ond part the origin of -Commer'e* its deve,opment in 2or,d perspe'tive is

presented and the 'urrent statues of -Commer'e in !ang,adesh and its potentia,s se'tor

2ise is put in detai,s . 6he transformation in the ,ife of average 'onsumers it has brought is

a,so summari4ed in this report .

6hird part 'over the overvie2 of 0okomari.'om its business pro'ess * 6he business mode,

it fo,,o2s and a,, the organi4ationa, a'tivities it e3e'utes . In this se'tion 2e 2i,, ,earn ho2 an

-Commer'e site 2orks . 6he main purpose of internship is to 2orking in a pra'ti'a,

environment and app,y the kno2,edge a'1uired during the studies in a rea, 2ord s'enario.

6his report a,so in',ude the servi'e the organi4ation provides * its pri'ing * its p,a'ing and its

promotiona, a'tivity a,ongside 2ith strength and 2eakness of the organi4ation

/t the end of the report I have pointed out and dis'ussed the so,ution to the 'ha,,enges the

'ompany fa'e and the prob,ems it has .


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Table of ContentsChapter 1: Introduction....................................................................................9

1.1 Preamble.......................................................................................................... 9

1.2 Rational of the Study......................................................................................10

1.3 Objective of the Study...................................................................................11

1.4 Methodoloy of the Study............................................................................. 11

1.! "iterature Revie#..........................................................................................12

1.$ Sco%e and "imitation& of the &tudy...............................................................13

"ac' of information........................................................................................... 14

Chapter 2: E-Commerce..................................................................................1!

2.1 (e)nition........................................................................................................1!

2.2 *i&tory of +,-ommerce...................................................................................1$

2.3 u&ine&& /%%lication of +,-ommerce............................................................21

2.4 y%e& of +,-ommerce.................................................................................... 32

2.! (river& of +,-ommerce.................................................................................3

2.$ he com%onent& of a ty%ical &ucce&&ful +,-ommerce tran&action................39

-ha%ter 3 +,-ommerce in anlade&h................................................................42

3.1 +volution of +,-ommerce in anlade&h........................................................42

3.2 +,-ommerce in (ierent Sector in anlade&h..............................................44

3.3 Major +,-ommerce eb&ite& in anlade&h...................................................43.4 he Role of +,-ommerce in anlade&h.......................................................4

3.$ Pre&ent Statu& Of +,-ommerce in anlade&h and it& Potential...................49

Chapter 4 E-commerce operation of Rokomari.com..................................!2

4.1 ac'round....................................................................................................!2

4.2 Orani5ation Oraniram...............................................................................!3

4.3 u&ine&& model.............................................................................................. !4

4.4 aret Mar'et.................................................................................................!!

4.! Mar'etin and Promotion............................................................................... !!

4.$ Payment Method............................................................................................ !$

4. -u&tomer Service...........................................................................................!$

4. Product (elivery.............................................................................................!

Chapter 5 nal!sis and "indin#......................................................................!

!.1 SO /naly&i& of Ro'omari.com....................................................................!


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Strenth 6............................................................................................................. !

!.2 eb 7&ability..................................................................................................!9

!.1.2 Problem& in Ro'omari #eb&ite..................................................................$0

Chapter $ Recommendations and Conclusion.............................................$1

Reference&...........................................................................................................$3


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Chapter 1: Introduction

1.1 %reamble

/n -Commer'e is a fa'i,itated on,ine environment that 'onne'ts mu,tip,e buyers and

supp,iers in a sing,e* +ebbased hub to more effe'tive,y mat'h supp,y and demand 2hi,e

redu'ing transa'tion 'y',es and 'osts. 6his is an Internet site 2here goods and servi'es

supp,iers pub,ish 'ata,ogues of their 2ares and servi'e offerings* 2hi'h 'an be a''essed by a

,arge number of buyers. 9a,ueadded servi'es and -Commer'e 'an offer in',ude the

provision of automated do'uments to speed up the negotiation pro'ess* de'isionsupport

information* and other -Commer'e servi'es : su'h as 'ompany profi,es and finan'ia,

servi'es for 'redit 'he'ks* on,ine transa'tion pro'essing* and a''ess to effi'ient means of

fu,fi,,ment.

/,, over the 2or,d there is none 'ountry 2hose popu,ation density is ,ike !ang,adesh. !ut

every first 2or,d 'ountry a,, kinds of institutions* firms* industry and organi4ation are proper

distributed. In !D a,, type of demand for popu,ation 'an be found either 'apita, ;Dhaka< or

'ity area. Conse1uent,y on,ine market is effe'tive in this 'ountry. /s mention that in this

'ountry market midd,emen are invo,ved in a,, type of business se'tor. 6hat 'reates an artifi'ia,

e3tra produ'ts 'ost. It is a deve,oping 'ountry* so the 'ommuni'ation infrastru'ture is not

suited. /s a resu,t physi'a,,y movement to buy a produ't is a time 'onsuming for the

'onsumer. 6his dis'ussion 'reates a demand for proper on,ine marketp,a'e.

6he present government=s vision of making a 5Digita, !ang,adesh5 by $#$" has brought about

an in'reased impetus in effi'ien'y and te'hno,ogi'a, improvement to2ards a greater

openness* transparen'y* and a''ountabi,ity in government system and performan'e. In this

'ir'umstan'e* !-I;!ang,adesh -nterprise Institute< has undertaken a rigorous study on the

status and possibi,ities of -Commer'e entit,ed 50ea,i4ing the 9ision of Digita, !ang,adesh

through ->overnment5* as a fo,,o2up to a study entit,ed ?/na,ysis of the Impa't of Cu,ture

and I6 ;Information 6e'hno,ogy< Infrastru'ture on gro2th of -Commer'e in !ang,adesh5

'arried out by !-I in $##%. 6his study aims to assist the >overnment of !ang,adesh and

deve,opment partners to rea'h the vision of =Digita, !ang,adesh= through more 'oordinated

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efforts. Deve,opment 'ountries smooth,y run 2or,d2ide brand -Commer'e site ,ike

/ma4on* e!ay* +a,mart.'om* @@!eandn.'om* Sony.'om et'. /s 2e,, as a ,arger number of

firms from deve,oping 'ountries su'h as South Aorea* 6ai2an* Israe,* !ra4i, and India have

a,ready be'ome g,oba, p,ayers in many industries . 6o fu,,y e3p,oit the potentia, of the

internet and -'ommer'e* po,i'y makers in deve,oping as 2e,, as industria,i4ed 'ountries aretaking initiatives to deve,op the g,oba, information infrastru'ture ;>II< and 'onne't their

nationa, infrastru'tures to the ;>II,oba, -Commer'e amounted to USB $& bi,,ion in

";E-CD $##"< and estimated to e3'eed USB F tri,,ion in $##".In $##* tota, !$C revenue

2ere about B$$F bi,,ion. @argest form of -Commer'e amounted BG.& tri,,ion in transa'tions

in US/* $## 2hereas* !D is ne2 born in -Commer'e business arena. !Ds e3isting sites

are not 2e,, organi4ed as 2e,, as they 'annot run on,ine business smooth,y though !D is in

no2 the fa'i,ity of Grd generation ;Gg< internet servi'es. In future* on,ine business strategy 'an

bring g,orious opportunity this deve,oping 'ountry if it 'an be app,ied in proper business

purposes in',uding a,, -Commer'e business dimensions su'h as !$!* !$C* C$C and M

'ommer'e.

1.2 Rational of the &tud!

6his is the era of information and 'ommuni'ation te'hno,ogy. 6he ,eading 'on'ern of

e,e'troni' revo,ution in this $"st 'entury is to estab,ish and ensure a better* easy and

'omfortab,e 2ay of management* 'ommuni'ation and deve,opment 2ith the use of

information te'hno,ogy. -Commer'e has be'ome a bu442ord of present information

te'hno,ogy. It is the pro'ess of 'ondu'ting a,, forms of business through 'omputer net2ork

and digita, 'ommuni'ation. 6oday the emerging trend of on,ine shipping and business has

ensured to 'reate a 2ho,e ne2 ,ine of industry 2here every 'ustomer have a''ess to a,, kinds

of produ'ts and servi'e at a ',i'k of a button 6his revo,ution 2hi'h started a fe2 years ba'k

has e3panded at ,ight speed . It is my outmost interest to kno2 more about -Commer'e and

its and its operation . 6hat 2hy i have 'hosen to do internship at 0okomari.'om and study

about prob,ems and perspe'tive of -Commer'e in !ang,adesh . 6his report I assume 2i,,

provide an insight about the sub8e't .

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1.' (b)ecti*e of the &tud!

6he main ob8e'tive of the study is to a''umu,ate a ',ear idea about -Commer'e in

!ang,adesh. 6he understanding of -Commer'e in 2idespread and find out the probab,e

so,ution for barriers. More ob8e'tives are as fo,,o2s

(eneral )b#ecti'e:

6o get e3perien'e in -Commer'e pra'ti'e* this 2i,, give us an opportunity to understand

the e,e'troni' transa'tion system and its ,imitations as 2e,, as the 2ay to over'ome them.

Specified )b#ecti'e:

• 6o Des'ribe about -Commer'e

• 6o -3p,ain the a'tivities of 0okomari.'om as an organi4ation invo,ved in

-'ommer'e

• 6o Identify prob,ems or 'onstrains in -Commer'e operation of 0okomari.'om.

• 6o put for2ard some suggestion to improve the performan'e of 0okomari.'om in

regards to -Commer'e a'tivity .

1.4 +ethodolo#! of the &tud!

In 'ondu'ting a resear'h on a 'ertain issue resear'her has to adopt some methods and

te'hni1ues. 6he ,ogi' of 'ertain methodo,ogi'a, approa'h depends on the nature and purpose

of the study* and 'ost fa'tors are a,so 'onsidered in any parti'u,ar approa'h. 6he present study

is designed to get an overa,, idea about the present s'enario of -Commer'e in !ang,adesh. In

this perspe'tive 1ua,itative method have been used during data 'o,,e'tion* and open ended

1uestion are asked to intervie2ee.

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$ata collection

a Primary data : Primary data in',udes the 'rude data or information 'o,,e'ted from

0okomari.'om emp,oyees

b. Secondary data : Se'ondary data in',ude 0okomari.'om data base and the internet

1.5 ,iterature Re*ie

/n e3pansion of the ,iterature and an ana,ysis of various kinds* arti',es and 'ommon re,ated

2ebsite in the fie,d -Commer'e are revie2ed in this study. Prin'ip,es and te'hni1ues are

used to introdu'e a genera, kno2,edge regarding to e,e'troni' transa'tion and its benefit and

advantages of the 'ustomer servi'e strategy.

-Commer'e is a narro2er part of ebusiness dea,ing 2ith the pur'hase and sa,e of goods

and servi'es over the internet* in',uding support a'tivities su'h as marketing and 'ustomer

support. 6he abi,ity to made transa'tion for persona, or professiona, use over the internet is

kno2n as e,e'troni' 'ommer'e or -Commer'e;Coursaris* et a,.* $##G< . Chaffey ;$##<

defined -Commer'e as ?6he e3'hange of information a'ross e,e'troni' net2orks* at any

stage in the supp,y 'hain* 2hether 2ithin an Ergani4ation* bet2een businesses* bet2een

businesses and 'onsumers or bet2een the pub,i' and private se'tor* 2hether paid or unpaid.

!uffam ;$#"$< depi'ted that 'ompanies that bui,d the better ebusiness so,utions 2i,,

outperform their 'ompetitors. Companies that bui,d the very best ebusiness so,utions 2i,,

transform themse,ves into 4ero,aten'y enterprises. Companies that 'hoose not to embra'e e

business* or do so ineffe'tive,y* 2i,, underperform or be driven out of business. 6urban et a,.

;$#"$< argued that fo,,o2ing points of manageria, issues are very important )o'us of

-,e'troni' 'ommer'e management Sa,es promotion Pur'hase pro'ess reengineering Justin

K6ime de,ivery ne2 e,e'troni' intermediary business Provision of so,utions !usiness ethi's.

Ho1* Aama, and Cho2dhury ;$#"$< argued that a key reason 2hy -Commer'e* espe'ia,,y

the businesstobusiness segment* is gro2ing so 1ui'k,y is its signifi'ant impa't on 'osts

asso'iated 2ith inventories* sa,es e3e'ution* pro'urement* intangib,es ,ike banking* and

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distribution 'osts. Uddin and Is,am ;$#"$< observed that the mu,tifarious pro8e'tions of IC6

in human ,ife p,ead a 2ining 'ase for institutiona, integration of IC6 re,ated 'omponents in

rura, support programs taken by >overnments and 7>Es. Chaffey ;$##&< dea,t 2ith strategy

and app,i'ations of -Commer'e in a ,ogi'a, but robust manner. He stressed -Commer'e is

very important for management imp,i'ations as su'h a bridge to ,ink ,eading edge resear'hand professiona, pra'ti'e is re1uired. )rom the a foresaid ,iterature revie2* it is evident that on

,ine banking 'an a't as a 'omp,ementary to2ards -Commer'e. +ith the he,p of -

Commer'e the 'ountry 'an 'reate opportunities as this 2i,, he,p both produ'ers and

'ustomers. !ut these theoreti'a, observations may not be feasib,e in this 'ountry. /s su'h the

study seeks to eva,uate 2hether the 'ountry has proper infrastru'ture for doing -'ommer'eL

+hat are the statuses of -Commer'e in our 'ountryL Does on ,ine transa'tion rea,,y 2orks as

a 'omp,ementary to -Commer'e in !ang,adeshL /foresaid 1uestions arises 2hi'h the study

intends to e3amine . 6his report is prepared in a stru'tured 2ay and it is fu,, of important

information. 6he present government=s vision of making a 5Digita, !ang,adesh5 by $#$" has

brought about an in'reased impetus in effi'ien'y and te'hno,ogi'a, improvement to2ards a

greater openness* transparen'y* and a''ountabi,ity in government system and performan'e. In

this 'ir'umstan'e* !-I;!ang,adesh -nterprise Institute< has undertaken a rigorous study on

the status and possibi,ities of -Commer'e entit,ed 50ea,i4ing the 9ision of Digita,

!ang,adesh through ->overnment5* as a fo,,o2up to a study entit,ed ?/na,ysis of the

Impa't of Cu,ture and I6 ;Information 6e'hno,ogy< Infrastru'ture on gro2th of -'ommer'e

in !ang,adesh 5 'arried out by !-I in $##%. 6his study aims to assist the >overnment of

!ang,adesh and deve,opment partners to rea'h the vision of =Digita, !ang,adesh= through

more 'oordinated efforts.

1.$ &cope and ,imitations of the stud!Ma3imum effort 2as given to make the study a su''essfu, one* but it suffers from some

,imitation those 2ere apparent,y unavoidab,y. 6he ma8or ones 2ere

&horta#e of time period:

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6he ma8or ,imitation fa'ed to 'arry out this pro8e't 2as main,y time 'onstraints. It hindered

the 'ourse of vast area and time for preparing a report 2ithin the mentioned period is rea,,y

diffi'u,t.

&ecrec! of +ana#ement6he authority of the organi4ations 'ou,dn=t provide mu'h information as it is an infant

organi4ation no annua, report or any sort of organi4ationa, report is 'urrent,y avai,ab,e .

us! orkin# en*ironment

6he offi'ia,s had some times been unab,e to provide information be'ause of their huge routine

2ork. So* 2e 'ou,d not gather vast kno2,edge about the 'riti'a, issues. It is rea,,y diffi'u,t to

gather data from the p,a'e 2here peop,e do not kno2 me for a ,ong time.

,ack of information

@imitation of information regarding the topi' 'reates 'ha,,enge in making this report . 6he

organi4ation ,a'ked organi4ed information about their a'tivities and profi,e 2ere avai,ab,e.

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Chapter 2: E-Commerce

2.1 /e0nition

-Commer'e is 'onsidered to be the right too, for gaining 'ompetitive advantage in the

'ompetitive g,oba, business 2or,d. - means anything doing via the Internet and Commer'e

means business. Simp,y e,e'troni' 'ommer'e is the pro'ess of doing business e,e'troni'a,,y

or over the Internet. @ike traditiona, 'ommer'e* -Commer'e does not invo,ve on,y in buying

and se,,ing of goods and servi'es via internet rather in',udes inter'ompany and intra

'ompany fun'tions ,ike negotiations and transa'tions* manufa'turing and marketing* using

emai,* -,e'troni' Data Inter'hange ;-DI


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2.2 istor! of E-Commerce

Ene of the most popu,ar a'tivities on the +eb is shopping. It has mu'h a,,ure in it : you 'an

shop at your ,eisure* anytime* and in your pa8amas. @itera,,y anyone 'an have their pages bui,t

to disp,ay their spe'ifi' goods and servi'es.

History of -Commer'e dates ba'k to the invention of the very o,d notion of 5se,, and buy5*

e,e'tri'ity* 'ab,es* 'omputers* modems* and the Internet. -Commer'e be'ame possib,e in

"" 2hen the Internet 2as opened to 'ommer'ia, use. Sin'e that date thousands of

businesses have taken up residen'e at 2eb sites.

/t first* the term -Commer'e meant the pro'ess of e3e'ution of 'ommer'ia, transa'tions

e,e'troni'a,,y 2ith the he,p of the ,eading te'hno,ogies su'h as -,e'troni' Data Inter'hange

;-DI< and -,e'troni' )unds 6ransfer ;-)6< 2hi'h gave an opportunity for users to e3'hange

business information and do e,e'troni' transa'tions. 6he abi,ity to use these te'hno,ogies

appeared in the ,ate "#s and a,,o2ed business 'ompanies and organi4ations to send

'ommer'ia, do'umentation e,e'troni'a,,y.

/,though the Internet began to advan'e in popu,arity among the genera, pub,i' in "%* it

took appro3imate,y four years to deve,op the se'urity proto'o,s ;for e3amp,e* H66P< and

DS@ 2hi'h a,,o2ed rapid a''ess and a persistent 'onne'tion to the Internet. In $### a great

number of business 'ompanies in the United States and +estern -urope represented their

servi'es in the +or,d +ide +eb. /t this time the meaning of the 2ord -Commer'e 2as

'hanged. Peop,e began to define the term -Commer'e as the pro'ess of pur'hasing of

avai,ab,e goods and servi'es over the Internet using se'ure 'onne'tions and e,e'troni'

payment servi'es. /,though the dot'om 'o,,apse in $### ,ed to unfortunate resu,ts and many

of -Commer'e 'ompanies disappeared* the 5bri'k and mortar5 retai,ers re'ogni4ed the

advantages of e,e'troni' 'ommer'e and began to add su'h 'apabi,ities to their 2eb sites ;e.g.*

after the on,ine gro'ery store +ebvan 'ame to ruin* t2o supermarket 'hains* /,bertsons and

Safe2ay* began to use -Commer'e to enab,e their 'ustomers to buy gro'eries on,ine


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History of -Commer'e is unthinkab,e 2ithout /ma4on and -bay 2hi'h 2ere among the first

Internet 'ompanies to a,,o2 e,e'troni' transa'tions. 6hanks to their founders 2e no2 have a

handsome -Commer'e se'tor and en8oy the buying and se,,ing advantages of the Internet.

Current,y there are F ,argest and most famous 2or,d2ide Internet retai,ers /ma4on* De,,*

Stap,es* Effi'e Depot and He2,ett Pa'kard. /''ording to statisti's* the most popu,ar

'ategories of produ'ts so,d in the +or,d +ide +eb are musi'* books* 'omputers* offi'e

supp,ies and other 'onsumer e,e'troni's.

/ma4on.'om* In'. is one of the most famous -Commer'e 'ompanies and is ,o'ated in

Seatt,e* +ashington ;US/


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• "" or "$ 6he /0P/7-6 is used to arrange a 'annabis sa,e bet2een students at

the Stanford /rtifi'ia, Inte,,igen'e @aboratory and the Massa'husetts Institute of

6e'hno,ogy* ,ater des'ribed as 5the semina, a't of e'ommer'e5 in John Markoff =s

book What the Dormouse Said .Q"R

• " Mi'hae, /,dri'h demonstrates the first on,ine shopping system.Q$R

• "(" 6homson Ho,idays UA is first businesstobusiness on,ine shopping system to be

insta,,ed.QGR

• "($ Minite, 2as introdu'ed nation2ide in )ran'e by )ran'e 6,'om and used for

on,ine ordering.

• "(G Ca,ifornia State /ssemb,y ho,ds first hearing on 5e,e'troni' 'ommer'e5 in

9o,'ano* Ca,ifornia.Q%R 6estifying are CPUC* MCI Mai,* Prodigy* CompuServe* 9o,'ano

6e,ephone* and Pa'ifi' 6e,esis. ;7ot permitted to testify is Tuantum 6e'hno,ogy* ,ater

to be'ome /E@.<

• "(% >ateshead SIS6es'o is first !$C on,ine shopping system QFR and Mrs Sno2ba,,*

$* is the first on,ine home shopper Q&R

• "(% In /pri, "(%* CompuServe ,aun'hes the -,e'troni' Ma,, in the US/ and

Canada. It is the first 'omprehensive e,e'troni' 'ommer'e servi'e.QR

• "# 6im !erners@ee 2rites the first 2eb bro2ser* +or,d +ide +eb* using

a 7e6 'omputer.Q(R

• "$ !ook Sta'ks Un,imited in C,eve,and opens a 'ommer'ia, sa,es 2ebsite

;222.books.'om< se,,ing books on,ine 2ith 'redit 'ard pro'essing.

• "G Paget Press re,eases edition 7o. G QR of the firstQcitation needed R app store*

6he -,e'troni' /pp +rapper Q"#R

Pae 8 1

https://en.wikipedia.org/wiki/ARPANEThttps://en.wikipedia.org/wiki/Stanford_University_centers_and_instituteshttps://en.wikipedia.org/wiki/Stanford_University_centers_and_instituteshttps://en.wikipedia.org/wiki/Massachusetts_Institute_of_Technologyhttps://en.wikipedia.org/wiki/Massachusetts_Institute_of_Technologyhttps://en.wikipedia.org/wiki/Massachusetts_Institute_of_Technologyhttps://en.wikipedia.org/wiki/John_Markoffhttps://en.wikipedia.org/wiki/John_Markoffhttps://en.wikipedia.org/wiki/What_the_Dormouse_Saidhttps://en.wikipedia.org/wiki/What_the_Dormouse_Saidhttps://en.wikipedia.org/wiki/E-commerce#cite_note-1https://en.wikipedia.org/wiki/Michael_Aldrichhttps://en.wikipedia.org/wiki/Online_shoppinghttps://en.wikipedia.org/wiki/E-commerce#cite_note-2https://en.wikipedia.org/wiki/E-commerce#cite_note-3https://en.wikipedia.org/wiki/E-commerce#cite_note-3https://en.wikipedia.org/wiki/Minitelhttps://en.wikipedia.org/wiki/Orange_S.A.https://en.wikipedia.org/wiki/Orange_S.A.https://en.wikipedia.org/wiki/California_State_Assemblyhttps://en.wikipedia.org/wiki/E-commerce#cite_note-4https://en.wikipedia.org/wiki/Gatesheadhttps://en.wikipedia.org/wiki/Gatesheadhttps://en.wikipedia.org/wiki/Tescohttps://en.wikipedia.org/wiki/E-commerce#cite_note-5https://en.wikipedia.org/wiki/E-commerce#cite_note-Finding_Mrs_Snowball-6https://en.wikipedia.org/wiki/CompuServehttps://en.wikipedia.org/wiki/E-commerce#cite_note-7https://en.wikipedia.org/wiki/Tim_Berners-Leehttps://en.wikipedia.org/wiki/WorldWideWebhttps://en.wikipedia.org/wiki/NeXTSTEPhttps://en.wikipedia.org/wiki/NeXTSTEPhttps://en.wikipedia.org/wiki/E-commerce#cite_note-8https://en.wikipedia.org/wiki/Book_Stacks_Unlimitedhttps://en.wikipedia.org/w/index.php?title=Paget_Press&action=edit&redlink=1https://en.wikipedia.org/wiki/E-commerce#cite_note-9https://en.wikipedia.org/wiki/E-commerce#cite_note-9https://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttps://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttps://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttps://en.wikipedia.org/wiki/App_storehttps://en.wikipedia.org/wiki/Electronic_AppWrapperhttps://en.wikipedia.org/wiki/Electronic_AppWrapperhttps://en.wikipedia.org/wiki/Electronic_AppWrapperhttps://en.wikipedia.org/wiki/E-commerce#cite_note-PR-AW3-10https://en.wikipedia.org/wiki/ARPANEThttps://en.wikipedia.org/wiki/Stanford_University_centers_and_instituteshttps://en.wikipedia.org/wiki/Massachusetts_Institute_of_Technologyhttps://en.wikipedia.org/wiki/Massachusetts_Institute_of_Technologyhttps://en.wikipedia.org/wiki/John_Markoffhttps://en.wikipedia.org/wiki/What_the_Dormouse_Saidhttps://en.wikipedia.org/wiki/E-commerce#cite_note-1https://en.wikipedia.org/wiki/Michael_Aldrichhttps://en.wikipedia.org/wiki/Online_shoppinghttps://en.wikipedia.org/wiki/E-commerce#cite_note-2https://en.wikipedia.org/wiki/E-commerce#cite_note-3https://en.wikipedia.org/wiki/Minitelhttps://en.wikipedia.org/wiki/Orange_S.A.https://en.wikipedia.org/wiki/California_State_Assemblyhttps://en.wikipedia.org/wiki/E-commerce#cite_note-4https://en.wikipedia.org/wiki/Gatesheadhttps://en.wikipedia.org/wiki/Tescohttps://en.wikipedia.org/wiki/E-commerce#cite_note-5https://en.wikipedia.org/wiki/E-commerce#cite_note-Finding_Mrs_Snowball-6https://en.wikipedia.org/wiki/CompuServehttps://en.wikipedia.org/wiki/E-commerce#cite_note-7https://en.wikipedia.org/wiki/Tim_Berners-Leehttps://en.wikipedia.org/wiki/WorldWideWebhttps://en.wikipedia.org/wiki/NeXTSTEPhttps://en.wikipedia.org/wiki/E-commerce#cite_note-8https://en.wikipedia.org/wiki/Book_Stacks_Unlimitedhttps://en.wikipedia.org/w/index.php?title=Paget_Press&action=edit&redlink=1https://en.wikipedia.org/wiki/E-commerce#cite_note-9https://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttps://en.wikipedia.org/wiki/App_storehttps://en.wikipedia.org/wiki/Electronic_AppWrapperhttps://en.wikipedia.org/wiki/E-commerce#cite_note-PR-AW3-10


19/70

• "% 7ets'ape re,eases the 7avigator bro2ser in E'tober under the 'ode

name Mo4i,,a. 7ets'ape ".# is introdu'ed in ,ate "% 2ith SS@ en'ryption that made

transa'tions se'ure.

• "% Ips2it'h IMai, Server be'omes the first soft2are avai,ab,e on,ine for sa,e and

immediate do2n,oad via a partnership bet2een Ips2it'h* In'. and Epen Market.

• "% 56en Summoner=s 6a,es5 by Sting be'omes the first se'ure on,ine pur'hase.Q""R

• "F 6he US 7ationa, S'ien'e )oundation ,ifts its former stri't prohibition of

'ommer'ia, enterprise on the Internet.Q"$R

• "F 6hursday $ /pri, "F* the pur'hase of a book by Pau, Stanfie,d* Produ't

Manager for CompuServe UA* from + H Smith=s shop 2ithin CompuServe=s UA

Shopping Centre is the UA=s first nationa, on,ine shopping servi'e se'ure transa'tion.

6he shopping servi'e at ,aun'h featured + H Smith* 6es'o* 9irgin MegastoresEur

Pri'e* >reat Universa, Stores ;>US


20/70

• $### 6he dot'om bust.

• $##" /,ibaba.'om a'hieved profitabi,ity in De'ember $##".

•

$##$ e!ay a'1uires PayPa, for B".F bi,,ion. 7i'heretai, 'ompanies +ayfair and 7etShops are founded 2ith the 'on'ept of se,,ing produ'ts through severa, targeted

domains* rather than a 'entra, porta,.

• $##G /ma4on.'om posts first year,y profit.

• $##G !ossgoo !$! marketp,a'e estab,ished in China.

• $##% DHgate.'om* China=s first on,ine b$b transa'tion p,atform* is estab,ished* for'ing

other b$b sites to move a2ay from the 5ye,,o2 pages5 mode,.Q"FR

• $## !usiness.'om a'1uired by 0.H. Donne,,ey for BG%F mi,,ion.Q"&R

• $## Zappos.'om a'1uired by /ma4on.'om for B$( mi,,ion.Q"R 0etai, Convergen'e*

operator of private sa,e 2ebsite 0ue@a@a.'om* a'1uired by >SI Commer'e for B"(#

mi,,ion* p,us up to B"# mi,,ion in earnout payments based on performan'e through

$#"$.Q"(R

• $#"# >roupon reported,y re8e'ts a B& bi,,ion offer from >oog,e. Instead* the group

buying 2ebsites 2ent ahead 2ith an IPE on % 7ovember $#"". It 2as the ,argest IPE

sin'e >oog,e.Q"RQ$#R

• $#"" Tuidsi.'om* parent 'ompany of Diapers.'om* a'1uired by /ma4on.'om for BF##

mi,,ion in 'ash p,us B%F mi,,ion in debt and other ob,igations. Q$"R >SI Commer'e* a

'ompany spe'ia,i4ing in 'reating* deve,oping and running on,ine shopping sites

for bri'k and mortar businesses* a'1uired by e!ay for B$.% bi,,ion.

Q$$R

• $#"% Eversto'k.'om pro'esses over B" mi,,ion in !it'oin sa,es.Q$GR Indias -

Commer'e industry is estimated to have gro2n more than G#V from $#"$ to B"$.&

bi,,ion in $#"G.Q$%R US -Commer'e and En,ine 0etai, sa,es pro8e'ted to rea'h B$%

Pae 8 20

https://en.wikipedia.org/wiki/Dot-com_busthttps://en.wikipedia.org/wiki/Alibaba_Grouphttps://en.wikipedia.org/wiki/EBayhttps://en.wikipedia.org/wiki/PayPalhttps://en.wikipedia.org/wiki/PayPalhttps://en.wikipedia.org/wiki/Wayfairhttps://en.wikipedia.org/wiki/NetShopshttps://en.wikipedia.org/wiki/Amazon.comhttps://en.wikipedia.org/wiki/Bossgoohttps://en.wikipedia.org/wiki/DHgate.comhttps://en.wikipedia.org/wiki/DHgate.comhttps://en.wikipedia.org/wiki/Yellow_pageshttps://en.wikipedia.org/wiki/E-commerce#cite_note-15https://en.wikipedia.org/wiki/Business.comhttps://en.wikipedia.org/wiki/R.H._Donnelleyhttps://en.wikipedia.org/wiki/E-commerce#cite_note-16https://en.wikipedia.org/wiki/Zappos.comhttps://en.wikipedia.org/wiki/Zappos.comhttps://en.wikipedia.org/wiki/Amazon.comhttps://en.wikipedia.org/wiki/Amazon.comhttps://en.wikipedia.org/wiki/E-commerce#cite_note-17https://en.wikipedia.org/wiki/GSI_Commercehttps://en.wikipedia.org/wiki/GSI_Commercehttps://en.wikipedia.org/wiki/GSI_Commercehttps://en.wikipedia.org/wiki/E-commerce#cite_note-18https://en.wikipedia.org/wiki/Grouponhttps://en.wikipedia.org/wiki/Googlehttps://en.wikipedia.org/wiki/Initial_Public_Offeringhttps://en.wikipedia.org/wiki/E-commerce#cite_note-19https://en.wikipedia.org/wiki/E-commerce#cite_note-20https://en.wikipedia.org/wiki/Diapers.comhttps://en.wikipedia.org/wiki/Amazon.comhttps://en.wikipedia.org/wiki/E-commerce#cite_note-21https://en.wikipedia.org/wiki/GSI_Commercehttps://en.wikipedia.org/wiki/GSI_Commercehttps://en.wikipedia.org/wiki/Brick_and_mortar_businesshttps://en.wikipedia.org/wiki/EBayhttps://en.wikipedia.org/wiki/E-commerce#cite_note-22https://en.wikipedia.org/wiki/Overstock.comhttps://en.wikipedia.org/wiki/Overstock.comhttps://en.wikipedia.org/wiki/Bitcoinhttps://en.wikipedia.org/wiki/Bitcoinhttps://en.wikipedia.org/wiki/E-commerce#cite_note-Geekwire_2014-03-04-23https://en.wikipedia.org/wiki/E-commerce#cite_note-24https://en.wikipedia.org/wiki/E-commerce#cite_note-24https://en.wikipedia.org/wiki/Dot-com_busthttps://en.wikipedia.org/wiki/Alibaba_Grouphttps://en.wikipedia.org/wiki/EBayhttps://en.wikipedia.org/wiki/PayPalhttps://en.wikipedia.org/wiki/Wayfairhttps://en.wikipedia.org/wiki/NetShopshttps://en.wikipedia.org/wiki/Amazon.comhttps://en.wikipedia.org/wiki/Bossgoohttps://en.wikipedia.org/wiki/DHgate.comhttps://en.wikipedia.org/wiki/Yellow_pageshttps://en.wikipedia.org/wiki/E-commerce#cite_note-15https://en.wikipedia.org/wiki/Business.comhttps://en.wikipedia.org/wiki/R.H._Donnelleyhttps://en.wikipedia.org/wiki/E-commerce#cite_note-16https://en.wikipedia.org/wiki/Zappos.comhttps://en.wikipedia.org/wiki/Amazon.comhttps://en.wikipedia.org/wiki/E-commerce#cite_note-17https://en.wikipedia.org/wiki/GSI_Commercehttps://en.wikipedia.org/wiki/E-commerce#cite_note-18https://en.wikipedia.org/wiki/Grouponhttps://en.wikipedia.org/wiki/Googlehttps://en.wikipedia.org/wiki/Initial_Public_Offeringhttps://en.wikipedia.org/wiki/E-commerce#cite_note-19https://en.wikipedia.org/wiki/E-commerce#cite_note-20https://en.wikipedia.org/wiki/Diapers.comhttps://en.wikipedia.org/wiki/Amazon.comhttps://en.wikipedia.org/wiki/E-commerce#cite_note-21https://en.wikipedia.org/wiki/GSI_Commercehttps://en.wikipedia.org/wiki/Brick_and_mortar_businesshttps://en.wikipedia.org/wiki/EBayhttps://en.wikipedia.org/wiki/E-commerce#cite_note-22https://en.wikipedia.org/wiki/Overstock.comhttps://en.wikipedia.org/wiki/Bitcoinhttps://en.wikipedia.org/wiki/E-commerce#cite_note-Geekwire_2014-03-04-23https://en.wikipedia.org/wiki/E-commerce#cite_note-24


21/70

bi,,ion* an in'rease of "$ per'ent over $#"G and V of a,, retai, sa,es.Q$FR /,ibaba

>roup has the ,argest Initia, pub,i' offering ever* 2orth B$F bi,,ion.

2.' usiness pplication of E-CommerceSome 'ommon app,i'ations re,ated to e,e'troni' 'ommer'e are

$ocument automation in supply chain and logistics

Do'ument automation ;a,so kno2n as do'ument assemb,y< is the design of systems

and 2orkf,o2s that assist in the 'reation of e,e'troni' do'uments. 6hese in',ude ,ogi'based

systems that use segments of pree3isting te3t andor data to assemb,e a ne2 do'ument. 6his

pro'ess is in'reasing,y used 2ithin 'ertain industries to assemb,e ,ega, do'uments* 'ontra'ts

and ,etters. Do'ument automation systems 'an a,so be used to automate a,, 'onditiona, te3t*

variab,e te3t* and data 'ontained 2ithin a set of do'uments./utomation systems a,,o2 'ompanies to minimi4e data entry* redu'e the time spent proof

reading* and redu'e the risks asso'iated 2ith human error. /dditiona, benefits in',ude time

and finan'ia, savings due to de'reased paper hand,ing* do'ument ,oading* storage*distribution* postageshipping* fa3es* te,ephone* ,abor and 2aste.6here are many do'uments used in ,ogisti's. 6hey are 'a,,ed invoi'es* pa'king

,istss,ipssheets ;manifests


22/70

po,ybag or 'orrugated fiberboardrigid 'ontainer


23/70

Net banking

6his is a system* 2e,, kno2n in India* that does not invo,ve any sort of physi'a, 'ard. It is

used by 'ustomers 2ho have a''ounts enab,ed 2ith Internet banking. Instead of entering 'ard

detai,s on the pur'haser=s site* in this system the payment gate2ay a,,o2s one to spe'ify

2hi'h bank they 2ish to pay from. 6hen the user is redire'ted to the bank=s 2ebsite* 2here

one 'an authenti'ate onese,f and then approve the payment. 6ypi'a,,y there 2i,, a,so be some

form of t2ofa'tor authenti'ation. It is typi'a,,y seen as being safer than using 'redit 'ards*

2ith the resu,t that near,y a,, mer'hant a''ounts in India offer it as an option.

/ very simi,ar system* kno2n as iD-/@* is popu,ar in the 7ether,ands

Paypal

PayPa, is a g,oba, -Commer'e business a,,o2ing payments and money transfers to be made

through the Internet. En,ine money transfers serve as e,e'troni' a,ternatives to paying 2ith

traditiona, paper methods* su'h as 'he'k and money orders. It is sub8e't to the US e'onomi'

san'tion ,ist and other ru,es and interventions re1uired by US ,a2s or government. PayPa, is

an a'1uirer* a performing payment pro'essing for on,ine vendors* au'tion sites* and other

'ommer'ia, users* for 2hi'h it 'harges a fee. It may a,so 'harge a fee for re'eiving money*

proportiona, to the amount re'eived. 6he fees depend on the 'urren'y used* the payment

option used* the 'ountry of the sender* the 'ountry of the re'ipient* the amount sent and the

re'ipient=s a''ount type. In addition* e!ay pur'hases made by 'redit 'ard through PayPa, may

in'ur e3tra fees if the buyer and se,,er use different 'urren'ies. En E'tober G* $##$* PayPa,

be'ame a 2ho,,y o2ned subsidiary of e!ay. Its 'orporate head1uarters are in San Jose*

Ca,ifornia* United States at e!ay=s 7orth )irst Street sate,,ite offi'e 'ampus. 6he 'ompany

a,so has signifi'ant operations in Emaha* S'ottsda,e* Char,otte and /ustin in the United

States Chennai in India Dub,in in Ire,and !er,in in >ermany and 6e, /viv in Israe,. )rom

Ju,y $##* PayPa, has operated a'ross the -uropean Union as a @u3embourgbased bank.

Google wallet

Pae 8 23


24/70

>oog,e +a,,et 2as ,aun'hed in $#""* serving a simi,ar fun'tion as PayPa, to fa'i,itate

payments and transfer money on,ine. It a,so features a se'urity that has not been 'ra'ked to

date* and the abi,ity to send payments as atta'hments via emai,.

Mobile money wallets

In undeve,oped 'ountries the banked popu,ation is very ,ess* espe'ia,,y in tier II and tier III

'ities. 6aking the e3amp,e of India* there are more mobi,e phone users than there are peop,e

2ith a'tive bank a''ounts. 6e,e'om operators* in su'h geographies* have started offering

mobi,e money 2a,,ets 2hi'h a,,o2s adding funds easi,y through their e3isting mobi,e

subs'ription number* by visiting physi'a, re'harge points ',ose to their homes and offi'es and

'onverting their 'ash into mobi,e 2a,,et 'urren'y. 6his 'an be used for on,ine transa'tion and

-Commer'e pur'hases. Many payment options su'h as /irte, Money and MPesa are being

a''epted as a,ternate payment options on various -Commer'e 2ebsites.

Group buying

>roup buying* a,so kno2n as 'o,,e'tive buying* offers produ'ts and servi'es at signifi'ant,y

redu'ed pri'es on the 'ondition that a minimum number of buyers 2ou,d make the pur'hase.

Erigins of group buying 'an be tra'ed to China 2here a team buying 2as e3e'uted to get

dis'ount pri'es from retai,er 2hen a ,arge group of peop,e 2as 2i,,ing to buy the same item.

In re'ent times* group buying 2ebsites have emerged as a ma8or p,ayer in on,ine shopping

business. 6ypi'a,,y* these 2ebsites feature a 5dea, of the day5* 2ith the dea, ki'king in on'e a

set number of peop,e agree to buy the produ't or servi'e. !uyers then print off a vou'her to

',aim their dis'ount at the retai,er. Many of the groupbuying sites 2ork by negotiating dea,s

2ith ,o'a, mer'hants and promising to de,iver a higher foot 'ount in e3'hange for better

pri'es.

Automated online assistant

/n automated on,ine assistant is a program that uses artifi'ia, inte,,igen'e to provide 'ustomer

servi'e or other assistan'e on a 2ebsite. Su'h an assistant may basi'a,,y 'onsist of a dia,og

system* an avatar* as 2e,, an e3pert system to provide spe'ifi' e3pertise to the user.

Pae 8 24


25/70

/utomated on,ine assistants have the abi,ity to provide 'ustomer servi'e during $% hours a

day and days a 2eek* and may* at ,east* be a 'omp,ement to 'ustomer servi'e by humans.

Ene report estimated that an automated on,ine assistant produ'ed a G#V de'rease in the 2ork

,oad for a humanprovided 'a,, 'entre.

@arge 'ompanies su'h as @,oyds !anking >roup and 0oya, !ank of S'ot,and are no2 using

automated on,ine assistants instead of 'a,, 'enters 2ith humans to provide a first point of

'onta't. /,so* IA-/ has an automated on,ine assistant in their he,p 'enter./utomated on,ine assistants 'an a,so be imp,emented via 62itter * or +indo2s @ive

Messenger * su'h as* for e3amp,e* 0obo'oke for Co'a Co,aHungary. 6his automated on,ine

assistant provides users 2ith information about the brand Co'a Co,a* but he 'an a,so give

users party and 'on'ert re'ommendations a,, over Hungary.

Online shopping

En,ine shopping ;sometimes kno2n as etai, from 5e,e'troni' retai,5 or eshopping< is a form

of e,e'troni' 'ommer'e 2hi'h a,,o2s 'onsumers to dire't,y buy goods or servi'es from a

se,,er over the Internet using a 2eb bro2ser. /,ternative names are e2ebstore* eshop* e

store* Internet shop* 2ebshop* 2ebstore* on,ine store* on,ine storefront and virtua, store.

Mobi,e 'ommer'e ;or m'ommer'e< des'ribes pur'hasing from an on,ine retai,er=s mobi,e

optimi4ed on,ine site or app,i'ation

/n on,ine shop evokes the physi'a, ana,ogy of buying produ'ts or servi'es at a bri'ksand

mortar retai,er or shopping 'enter the pro'ess is 'a,,ed businessto'onsumer ;!$C< on,ine

shopping. In the 'ase 2here a business buys from another business* the pro'ess is 'a,,ed

businesstobusiness ;!$!< on,ine shopping. 6he ,argest of these on,ine retai,ing 'orporations

are /,ibaba* /ma4on.'om* and e!ay.

Customers are attra'ted to on,ine shopping not on,y be'ause of high ,eve,s of 'onvenien'e*

but a,so be'ause of broader se,e'tions* 'ompetitive pri'ing* and greater a''ess to information.

!usiness organi4ations seek to offer on,ine shopping not on,y be'ause it is of mu'h ,o2er 'ost

Pae 8 2!

https://en.wikipedia.org/wiki/IKEAhttps://en.wikipedia.org/wiki/Twitterhttps://en.wikipedia.org/wiki/Twitterhttps://en.wikipedia.org/wiki/Windows_Live_Messengerhttps://en.wikipedia.org/wiki/Windows_Live_Messengerhttps://en.wikipedia.org/wiki/Coca_Colahttps://en.wikipedia.org/wiki/Coca_Colahttps://en.wikipedia.org/wiki/IKEAhttps://en.wikipedia.org/wiki/Twitterhttps://en.wikipedia.org/wiki/Windows_Live_Messengerhttps://en.wikipedia.org/wiki/Windows_Live_Messengerhttps://en.wikipedia.org/wiki/Coca_Cola


26/70

'ompared to bri'ks and mortar stores* but a,so be'ause it offers a''ess to a 2or,d2ide market*

in'reases 'ustomer va,ue* and bui,ds sustainab,e 'apabi,ities.

En,ine 'ustomers must have a''ess to the Internet and a va,id method of payment in order to

'omp,ete a transa'tion. >enera,,y* higher ,eve,s of edu'ation and persona, in'ome 'orrespond

to more favorab,e per'eptions of shopping on,ine. In'reased e3posure to te'hno,ogy a,so

in'reases the probabi,ity of deve,oping favorab,e attitudes to2ards ne2 shopping 'hanne,s. In

a De'ember $#"" study* -1uation 0esear'h surveyed "*F## on,ine shoppers and found that

(V of tab,et o2ners made on,ine transa'tions 2ith their tab,et devi'es during the ear,y year

end shopping season.

Online banking

En,ine banking a,so kno2n as internet banking* ebanking* or virtua, banking* is an e,e'troni'

payment system that enab,es 'ustomers of a bank or other finan'ia, institution to 'ondu't a

range of finan'ia, transa'tions through the finan'ia, institution=s 2ebsite. 6he on,ine banking

system 2i,, typi'a,,y 'onne't to or be part of the 'ore banking system operated by a bank and

is in 'ontrast to bran'h banking that 2as the traditiona, 2ay 'ustomers a''ess banking

servi'es. 6o a''ess a finan'ia, institution=s on,ine banking fa'i,ity* a 'ustomer 2ith internet

a''ess 2ou,d need to register 2ith the institution for the servi'e* and set up a pass2ord and

other 'redentia,s for 'ustomer verifi'ation. 6he 'redentia,s for on,ine banking is norma,,y not

the same as for te,ephone or mobi,e banking. )inan'ia, institutions no2 routine,y a,,o'ate

'ustomers numbers* 2hether or not 'ustomers have indi'ated an intention to a''ess their

on,ine banking fa'i,ity. Customers= numbers are norma,,y not the same as a''ount numbers*

be'ause a number of 'ustomer a''ounts 'an be ,inked to the one 'ustomer number. 6he'ustomer number 'an be ,inked to any a''ount that the 'ustomer 'ontro,s* su'h as 'he1ue*

savings* ,oan* 'redit 'ard and other a''ounts.

6he 'ustomer visits the finan'ia, institution=s se'ure 2ebsite* and enters the on,ine banking

fa'i,ity using the 'ustomer number and 'redentia,s previous,y set up. 6he types of finan'ia,

Pae 8 2$


27/70

transa'tions 2hi'h a 'ustomer may transa't through on,ine banking usua,,y in',udes obtaining

a''ount ba,an'es and ,ist of ,atest transa'tions* e,e'troni' bi,, payments* and funds transfers

bet2een a 'ustomer=s or another=s a''ounts. Most a,so enab,e a 'ustomer to do2n,oad 'opies

of statements* 2hi'h 'an be printed at the 'ustomer=s premises ;2ith some banks 'harging a

fee for mai,ing hard'opies of bank statementsartner

>roup. Mean2hi,e* in the UA on,ine banking gre2 from &GV to #V of internet users

bet2een $#"" and $#"$.

Pae 8 2


28/70

Electronic tickets

/n e,e'troni' ti'ket ;'ommon,y abbreviated as eti'ket< is a digita, ti'ket. 6he term is most

'ommon,y asso'iated 2ith air,ine issued ti'kets. -,e'troni' ti'keting for urban or rai, pub,i'

transport is usua,,y referred to as trave, 'ard or transit pass. It is a,so used in ti'keting in the

entertainment industry.

/n e,e'troni' ti'ket system is a more effi'ient method of ti'ket entry* pro'essing and

marketing for 'ompanies in the rai,2ays* f,ight and other transport and entertainment

industries.

Social networking

/ so'ia, net2orking servi'e ;a,so so'ia, net2orking site or S7S< is a p,atform to bui,d so'ia,

net2orks or so'ia, re,ations among peop,e 2ho share simi,ar interests* a'tivities* ba'kgrounds

or rea,,ife 'onne'tions. / so'ia, net2ork servi'e 'onsists of a representation of ea'h user

;often a profi,e


29/70

2or,d. /pp,i'ations for so'ia, net2orking sites have e3tended to2ard businesses and brands

are 'reating their o2n* high fun'tioning sites* a se'tor kno2n as brand net2orking. It is the

idea that a brand 'an bui,d its 'onsumer re,ationship by 'onne'ting their 'onsumers to the

brand image on a p,atform that provides them re,ative 'ontent* e,ements of parti'ipation* and

a ranking or s'ore system. !rand net2orking is a ne2 2ay to 'apita,i4e on so'ia, trends as a

marketing too,.

6he po2er of so'ia, net2orks it beginning to permeate into interna, 'u,ture of businesses

2here they are finding uses for 'o,,aboration* fi,e sharing and kno2,edge transfer. 6he term

5enterprise so'ia, soft2are5 is be'oming in'reasing,y popu,ar for these types of app,i'ations.

Instant messaging

Instant messaging is a set of 'ommuni'ation te'hno,ogies used for te3tbased 'ommuni'ation

bet2een t2o or more parti'ipants over the Internet or other types of net2orks. IMK'hat

happens in rea,time. Ef importan'e is that on,ine 'hat and instant messaging differ from

other te'hno,ogies su'h as emai, due to the per'eived 1uasisyn'hrony of the 'ommuni'ations

by the users. Some systems permit messages to be sent to users not then =,ogged on= ;offline

messages


30/70

Pretail

Pretai, ;a,so referred to as pretai,* preretai,* pre,aun'h* or pre'ommer'e< is a sub'ategory

of -Commer' eand on,ine retai, for introdu'ing ne2 produ'ts* servi'es* and brands to market

by pre,aun'hing on,ine* from 'reating a interest 2ait,ist of signups before ,aun'h to

'o,,e'ting reservations or preorders in ,imited 1uantity before re,ease* rea,i4ation* or

'ommer'ia, avai,abi,ity. Pretai, in',udes presa,e 'ommer'e* preorder retai,ers* pre,aun'h

marketing servi'es* in'ubation marketp,a'es* 'ro2d funding 'ommunities* and demand 'hain

management systems. 0etai,ers today are in'reasing,y pretai,ing to test* promote* and

moneti4e 'onsumer demand in the initia, phase of the ne2 'ommer'e pipe,ine as first

introdu'ed in a $#"$ )orbes arti',e. Consumers engaging in pretai, are kno2n as an ear,y

adopter* fan* ba'ker* supporter* or presumer ;pre,aun'h 'onsumer


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te'hno,ogy but as three ma8or parts the system ;the e,e'troni' infrastru'ture< and the

app,i'ation ;the soft2are that operates on top< and the devi'e ;the individua, portionraphi' /rts Month,y* "< 6he digita, 2a,,et 'ombats this prob,em by giving users the

option to transfer their information se'ure,y and a''urate,y. 6his simp,ified approa'h to

'omp,eting transa'tions resu,ts in better usabi,ity and u,timate,y more uti,ity for the 'ustomer.

Pae 8 31


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2.4 T!pes of E-Commerce

/''ording to the 2iki book arti',e -Commer'e is 'ategori4ed in % ma8or 'ategory +hi'h

are

usiness to usiness 23

!usinesstobusiness -Commer'e dea,s bet2een the businesses or among the businesses.

Most of !$! app,i'ations are used in the area of distribution management* inventory

management* 'hanne, management* supp,ier management and payment management. !$! -

Commer'e is simp,y defined as -Commer'e bet2een 'ompanies. 6his is the type of -

Commer'e that dea,s 2ith re,ationships bet2een and among businesses. /bout (#V of -

Commer'e is of this type* and most e3perts predi't that !$! -Commer'e 2i,, 'ontinue to

gro2 faster than the !$C segment. 6he !$! market has t2o primary 'omponents -

infrastru'ture and -markets. -infrastru'ture is the ar'hite'ture of !$!* primari,y 'onsisting

of the fo,,o2ing,ogisti's transportation* 2arehousing and distribution ;e.g.* Pro'ter and >amb,e


33/70

-Marketer pro8e'ts an in'rease in the share of !$! -Commer'e in tota, g,oba, -Commer'e

from .$V in $### to (V in $##% and a 'onse1uent de'rease in the share of !$C -

Commer'e from $#.(V in $### to on,y "GV in $##% .

+igure , Share of BB and BC E-Commercein "otal (lobal E-Commerce./// and //01

source : https://en.wikibooks.org/wiki/E-Commerce_and_E-usiness/Concepts_and_Definitions

Benefits of BB E-Commerce in $e'eloping *arkets

6he impa't of !$! markets on the e'onomy of deve,oping 'ountries is evident in the

fo,,o2ing6ransa'tion 'osts. 6here are three 'ost areas that are signifi'ant,y redu'ed through the 'ondu't

of !$! e'ommer'e. )irst is the redu'tion of sear'h 'osts* as buyers need not go through

mu,tip,e intermediaries to sear'h for information about supp,iers* produ'ts and pri'es as in a

traditiona, supp,y 'hain. In terms of effort* time and money spent* the Internet is a more

effi'ient information 'hanne, than its traditiona, 'ounterpart. In !$! markets* buyers and

se,,ers are gathered together into a sing,e on,ine trading 'ommunity* redu'ing sear'h 'osts

even further. Se'ond is the redu'tion in the 'osts of pro'essing transa'tions ;e.g. invoi'es*

pur'hase orders and payment s'hemes


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intermediaries are emerging. )or instan'e* emarkets themse,ves 'an be 'onsidered as

intermediaries be'ause they 'ome bet2een supp,iers and 'ustomers in the supp,y 'hain.6ransparen'y in pri'ing. /mong the more evident benefits of emarkets is the in'rease in

pri'e transparen'y. 6he gathering of a ,arge number of buyers and se,,ers in a sing,e emarket

revea,s market pri'e information and transa'tion pro'essing to parti'ipants. 6he Internet

a,,o2s for the pub,i'ation of information on a sing,e pur'hase or transa'tion* making the

information readi,y a''essib,e and avai,ab,e to a,, members of the emarket. In'reased pri'e

transparen'y has the effe't of pu,,ing do2n pri'e differentia,s in the market. In this 'onte3t*

buyers are provided mu'h more time to 'ompare pri'es and make better buying de'isions.

Moreover* !$! emarkets e3pand borders for dynami' and negotiated pri'ing 2herein

mu,tip,e buyers and se,,ers 'o,,e'tive,y parti'ipate in pri'esetting and t2o2ay au'tions. In

su'h environments* pri'es 'an be set through automati' mat'hing of bids and offers. In the emarketp,a'e* the re1uirements of both buyers and se,,ers are thus aggregated to rea'h

'ompetitive pri'es* 2hi'h are ,o2er than those resu,ting from individua, a'tions.-'onomies of s'a,e and net2ork effe'ts. 6he rapid gro2th of !$! emarkets 'reates

traditiona, supp,yside 'ostbased e'onomies of s'a,e. )urthermore* the bringing together of a

signifi'ant number of buyers and se,,ers provides the demandside e'onomies of s'a,e or

net2ork effe'ts. -a'h additiona, in'rementa, parti'ipant in the emarket 'reates va,ue for a,,

parti'ipants in the demand side. More parti'ipants form a 'riti'a, mass* 2hi'h is key in

attra'ting more users to an emarket.

usiness to Consumer 2C3

!usinessto'onsumer e'ommer'e* or 'ommer'e bet2een 'ompanies and 'onsumers*

invo,ves 'ustomers gathering information pur'hasing physi'a, goods ;i.e.* tangib,es su'h as

books or 'onsumer produ'ts< or information goods ;or goods of e,e'troni' materia, or

digiti4ed 'ontent* su'h as soft2are* or ebooks


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retai,ing 'ompanies su'h as /ma4on.'om* Drugstore.'om* !eyond.'om* !arnes and 7ob,e

and 6oys0us. Ether !$C e3amp,es invo,ving information goods are -6rade and 6rave,o'ity.

6he more 'ommon app,i'ations of this type of -Commer'e are in the areas of pur'hasing

produ'ts and information* and persona, finan'e management* 2hi'h pertains to the

management of persona, investments and finan'es 2ith the use of on,ine banking too,s ;e.g.*

Tui'ken


36/70

• /u'tions fa'i,itated at a porta,* su'h as e!ay* 2hi'h a,,o2s on,ine rea,time bidding on

items being so,d in the +eb

• PeertoPeer systems* su'h as the 7apster mode, ;a proto'o, for sharing fi,es bet2een

users used by 'hat forums simi,ar to I0C< and other fi,e e3'hange and ,ater money

e3'hange mode,s and

• C,assified ads at porta, sites su'h as -3'ite C,assifieds and e+anted * Pak2hee,s.'om ;an

intera'tive* on,ine marketp,a'e 2here buyers and se,,ers 'an negotiate and 2hi'h features

?!uyer @eads +ant /ds


37/70

supp,ies in',uding art* photography* ',othing* 8e2e,ry* food* bath and beauty produ'ts* 1ui,ts*

kni'kkna'ks* and toys.

$isad'antage of CC Site

6here are a 'oup,e of disadvantages to these type of sites as 2e,,. Doing transa'tion on these

type of 2ebsites re1uires 'ooperation bet2een the buyer and se,,er .It has been noted many

times that these t2o do not 'ooperate 2ith ea'h other after a transa'tion has been made. 6hey

do not share the transa'tion information 2hi'h may be via 'redit or debit 'ard or internet

banking. 6his 'an resu,t in on,ine fraud sin'e the buyer and se,,er are not very 2e,, versed

2ith ea'h other. 6his 'an ,ead to ,a2suit being imposed on either ends or a,so on the site if it

has not mentioned the dis',aimer in its terms and 'onditions. 6his may a,so hamper the C$C

2ebsite=s reputation. Companies 2hi'h hand,e 'onsumer to 'onsumer e'ommer'e

2ebsites seem to have be'oming very 'autious to prevent on,ine s'ams.

usiness to o*ernment 23

!usinesstogovernment -Commer'e or !$> is genera,,y defined as 'ommer'e bet2een

'ompanies and the pub,i' se'tor. It refers to the use of the Internet for pub,i' pro'urement*

,i'ensing pro'edures* and other governmentre,ated operations. 6his kind of -Commer'e has

t2o features first* the pub,i' se'tor assumes a pi,ot,eading ro,e in estab,ishing e'ommer'e

and se'ond* it is assumed that the pub,i' se'tor has the greatest need for making its

pro'urement system more effe'tive.

+ebbased pur'hasing po,i'ies in'rease the transparen'y of the pro'urement pro'ess ;and

redu'es the risk of irregu,arities -Commer'e market

as a 'omponent of tota, -Commer'e is insignifi'ant* as government epro'urement systems

remain undeve,oped.

2.5 /ri*ers of E-Commerce

6here are at ,east three ma8or for'es that drive 'ommer'e e'onomi'* marketing and 'ustomer

intera'tion* and te'hno,ogy* parti'u,ar,y mu,timedia 'onvergen'e.

Pae 8 3

http://www.techved.com/best-company-for-e-commerce-uae-and-dubaihttp://www.techved.com/best-company-for-e-commerce-uae-and-dubaihttp://www.techved.com/best-company-for-e-commerce-uae-and-dubaihttp://www.techved.com/best-company-for-e-commerce-uae-and-dubai


38/70

Economic

Ene of the most evident benefits of -Commer'e is e'onomi' effi'ien'y resu,ting from the

redu'tion in 'ommuni'ations 'osts* ,o2'ost te'hno,ogi'a, infrastru'ture* speedier and more

e'onomi' e,e'troni' transa'tions 2ith supp,iers* ,o2er g,oba, information sharing and

advertising 'osts* and 'heaper 'ustomer servi'e a,ternatives.

-'onomi' integration is either e3terna, or interna,. -3terna, integration refers to the e,e'troni'

net2orking of 'orporations* supp,iers* 'ustomers',ients* and independent 'ontra'tors into one

'ommunity 'ommuni'ating in a virtua, environment ;2ith the Internet as mediumamb,e* I!M* 7est,e and Inte,.

+arket

Corporations are en'ouraged to use -Commer'e in marketing and promotion to 'apture

internationa, markets* both big and sma,,. 6he Internet is ,ike2ise used as a medium for

enhan'ed 'ustomer servi'e and support. It is a ,ot easier for 'ompanies to provide their target

'onsumers 2ith more detai,ed produ't and servi'e information using the Internet.

"echnology

6he deve,opment of IC6 is a key fa'tor in the gro2th of e'ommer'e. )or instan'e*

te'hno,ogi'a, advan'es in digiti4ing 'ontent* 'ompression and the promotion of open systems

te'hno,ogy have paved the 2ay for the 'onvergen'e of 'ommuni'ation servi'es into one

sing,e p,atform. 6his in turn has made 'ommuni'ation more effi'ient* faster* easier* and more

e'onomi'a, as the need to set up separate net2orks for te,ephone servi'es* te,evision

broad'ast* 'ab,e te,evision* and Internet a''ess is e,iminated. )rom the standpoint of

firmsbusinesses and 'onsumers* having on,y one information provider means ,o2er

'ommuni'ations 'osts.

Pae 8 3


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Moreover* the prin'ip,e of universa, a''ess 'an be made more a'hievab,e 2ith 'onvergen'e.

/t present the high 'osts of insta,,ing ,and,ines in sparse,y popu,ated rura, areas is a

disin'entive to te,e'ommuni'ations 'ompanies to insta,, te,ephones in these areas. Insta,,ing

,and,ines in rura, areas 'an be'ome more attra'tive to the private se'tor if revenues from these

,and,ines are not ,imited to ,o'a, and ,ong distan'e te,ephone 'harges* but a,so in',ude 'ab,e

69 and Internet 'harges. 6his deve,opment 2i,, ensure affordab,e a''ess to information even

by those in rura, areas and 2i,, spare the government the troub,e and 'ost of insta,,ing

e3pensive ,and,ines.

2.$ The components of a t!pical successful E-Commerce

transaction

-Commer'e does not refer mere,y to a firm putting up a +eb site for the purpose of se,,ing

goods to buyers over the Internet. )or -Commer'e to be a 'ompetitive a,ternative to

traditiona, 'ommer'ia, transa'tions and for a firm to ma3imi4e the benefits of e'ommer'e* a

number of te'hni'a, as 2e,, as enab,ing issues have to be 'onsidered. / typi'a, -Commer'e

transa'tion ,oop invo,ves the fo,,o2ing ma8or p,ayers and 'orresponding re1uisites

6he Seller shou,d have the fo,,o2ing 'omponents

• / 'orporate +eb site 2ith -Commer'e 'apabi,ities ;e.g.* a se'ure transa'tion server


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• 7ationa, and internationa, freight 'ompanies to enab,e the movement of physi'a, goods

2ithin* around and out of the 'ountry. )or businessto'onsumer transa'tions* the system

must offer a means for 'osteffi'ient transport of sma,, pa'kages ;su'h that pur'hasing

books over the Internet* for e3amp,e* is not prohibitive,y more e3pensive than buying

from a ,o'a, store


41/70

• / pri'ing stru'ture that doesnt pena,i4e 'onsumers for spending time on and buying

goods over the Internet ;e.g.* a f,at month,y 'harge for both ISP a''ess and ,o'a, phone

'a,,s


42/70

history of 'omputer and Internet this region. In "(FG* the !ritish estab,ished te,egraph servi'e

in India. /fter one hundred year Pakistan 6e,egraph and 6e,ephone board 2as estab,ished.

0adio 'ame to !ang,adesh in "G. 6e,evision 'ame in "&% and !ang,adesh got its first

'omputer that same year. /tomi' -nergy Commission of !ang,adesh brought the first

mainframe 'omputer I!M"&$#. 6his mode, had transistor* magneti' disk and magneti' 'ore.

!ang,adesh /gri'u,tura, University 2as the first edu'ationa, institution in the 'ountry to use

and 0adio Sha'k 60S(# &%A mode, 'omputer. 6he mode, is sti,, preserved in /gri'u,ture

Museum. Sti,, then* the use of 'omputer 2as very ,imited be'ause of ,arge si4e and higher

'ost.

Computer started to be'ome popu,ar in the ,ate "(#s. 6he printing and pub,i'ation industry

embra'ed this te'hno,ogy. Pub,i'ation 'ost de'reased signifi'ant,y.

Rise of computer in the 4/s

6hroughout the #s* use of 'omputer on,y gre2. Some of the ma8or mi,estones of this de'ade

2ere

• Internet 'ame to !ang,adesh in "G. Initia,,y* it 2as Uni3toUni3 Copy Proto'o,

;UUCP< emai,. 6hey 2ere rep,a'ed by Internet Proto'o, a''ounts in "&. In June* "&

the government de'ided to a,,o2 private 'ompanies to a't as Internet Servi'es Providers

;ISPs< using 9S/6s.

• )rom "&* Computer 2as a,so being introdu'ed as a sub8e't in se'ondary ,eve,

edu'ation. Sub8e'ts ,ike Computer S'ien'e* Computer -ngineering be'ame very popu,ar.

In addition* numerous organi4ations 2ere offering short 'ourses or one year dip,oma

'ourse.

• In "(* the then government of !ang,adesh removed a,, types of ta3 and duty from

'omputer.

!ang,adesh Computer Coun'i, and !ang,adesh !ureau of Statisti's 'ondu'ted a survey 2hi'h

revea,ed that there (#### PCs in the 'ountry by the end of "( 2ith more than "$#*###

,i'ensed soft2are. Dhaka had the highest 'on'entration of 'omputer ;$V


43/70

Mobi,e phone 'ame into the 'ountry in the #s. Sheba 6e,e'om 2as the first Mobi,e phone

servi'e provider but the servi'e 2as very e3pensive. In "* >rameenphone introdu'ed

affordab,e mobi,e servi'e. Sin'e then the usage of mobi,e on,y 'ontinued to gro2.

Beginning of E-commerce in Bangladesh

-'ommer'e started in !ang,adesh in the ,ate #s. 6he ear,ier -'ommer'e sites 2ere a'tua,,y

gift sites targeted to2ards the 7on0esidentia,!ang,adeshis ;70!< ,iving in abroad. /,, the

sites 2ere based in abroad and had bran'hes in !ang,adesh. 70!s 2ou,d buy various

produ'ts for their fami,ies or ,oved ones and pay in 'redit 'ard. 6he site 2ou,d then de,iver

the produ't to their fami,y or friend in !ang,adesh.

)rom $### to $##( the -'ommer'e se'tor observed s,o2 gro2th. 6here 2ere fe2 -

'ommer'e 2ebsites but there 2ere no system for on,ine transa'tion 2hi'h is the first

'ondition for -'ommer'e. In addition* high 'ost of Internet and ,o2er penetration meant that

fe2 peop,e kne2 about these sites. /''ording to !ang,adesh !ank* payments and transa'tions

by 'redit 'ards 2ere near,y 6k"" bi,,ion in June $##( one of the ,o2ests in the 2or,d.

6he 'ountry had on,y about %##*### 'redit 'ard ho,ders at the end of June $##. )rom $##(*

things started to ,ook bright as !ang,adesh !ank took various initiatives in',uding

imp,ementation of ePayment >ate2ay.

'.2 E-Commerce in /ierent &ector in an#ladesh

6hough being a under deve,oped 'ountry* se,e'ted segments of the !ang,adeshi business

'ommunity has embra'ed te'hno,ogy 2ith reasonab,e su''ess. Persona, 'omputers and the

Internet are a,so emerging as daytoday business too,s. 6hese positive indi'ators are favoring

the prospe'ts of e'ommer'e in !ang,adesh. Some se'tors are given be,o2

Banking sector

6he rea, 'hange 'ame in $## 2hen !ang,adesh !ank a,,o2ed on,ine payment in the 'ountry

thus* offi'ia,,y opening up the -'ommer'e se'tor. In 7ovember that year* !ang,adesh !ank

issued a 'ir'u,ar 2here it gave permission for fo,,o2ing types of on,ine transa'tion in the

'ountry

Pae 8 43


44/70

W En,ine uti,ity bi,, payment from ',ients a''ounts to re'ipients a''ounts.

W En,ine money transfer from on,ine of a ',ient to hisher another a''ount in the same bank

W Co,,e'tion of money fromto buyers bank a''ount to se,,ers bank a''ount for Pur'hasesa,e

of produ'ts under e'ommer'e system transa'tion via internet using 'redit 'ards in ,o'a,

'urren'y.

/nother ma8or in'ident of $## 2as introdu'tion of +iMa3 internet in !ang,adesh. It be'ame

1uite popu,ar in the 'ountry.

Readymade (arments .R*(1

6he 0M> se'tor emerged during the ear,y "(#s in !ang,adesh and information has

been the strategi' partner in its phenomena, gro2th. 6e,e3 2as the on,y too, of 'ross

border data 'ommuni'ation in those days. Internationa, 'ourier servi'es 2ere the

means of re'eiving the approved designs from the buyers. 6he )a'simi,e ma'hine* in

the mid (#s* radi'a,,y rep,a'ed both of these orthodo3 'ommuni'ating media ;i.e.

te,e3 and 'ourier e3ports. )aster and 'heaper data 'ommuni'ations 'oup,ed 2ith

rea,time designpattern deve,opment enab,ed the buyer and manufa'turer e3pediting

business negotiations.

/ spe'ifi' use of internet te'hno,ogy 2ou,d be to a''ess 6he !ang,adesh >arment

Manufa'turer -3porter /sso'iations ;!>M-/< 2ebsite* 2hi'h provides a ,ist of

member 'ompanies and key information regarding those firms. In addition* it updates

and reports on the United States and Canadian 1uota used for the year on a given date.

Con'urrent,y* through the 2eb site of the 7orth /meri'an port authorities* the vo,ume

of 1uota items that have entered their respe'tive 'ountries 'an be found. /

!ang,adeshi produ'er may prefer to stop shipment and 2ait for the ne3t year ;2hen

ne2 1uota privi,eges begin< to avoid the risk of 'o,,e'ting demurrage at a foreign port

in 'ase the 1uota has been e3hausted.!>M-/ 'an p,ay a vita, ro,e in authenti'ation of buyers and se,,ers through

en'ryption method. /uthenti'ation by !>M-/ 'an ensure the 'onfiden'e of the

importers regarding the genuineness of the manufa'turers. 6his 2ou,d dis'ourage

uns'rupu,ous enterprises from making fa,se ',aims on their 2eb pages.

Pae 8 44


45/70

)o,,o2ing the 2ithdra2a, of the 1uota system and the >SP in $##F* the 0M> se'tor 2i,,

inevitab,y be'ome more 'ompetitive. /s e3pe'ted de,ivery time de'reases* 'onsidering

a,ternative payment me'hanisms be'omes imperative. 6he effe'tive use of e'ommer'e both for p,a'ing orders* pur'hasing ra2 materia,s and for 1ui'k and effi'ient payment 2ou,d

be the ne'essary ingredients for any 'ountry to enhan'e its abi,ity to de,iver ear,y. 7e'essary

infrastru'tura,* ,ega, and regu,atory reforms 2i,, be essentia, to avai, of the e'ommer'e

te'hno,ogy in dea,ing 2ith the internationa, market p,a'e./''ess to the market depends on the buyers and se,,ers 2i,,ingness and abi,ity to market

through mediums that are mutua,,y 'ost effe'tive* re,iab,e* and rep,i'ab,e. / foreign buyer*

say in the readymade garments se'tor* e3presses a preferen'e to use e'ommer'e for its

pur'hases* thereby 'ir'umventing the @etter of Credit ;@C< me'hanism to p,a'e an order.

Sin'e the overseas finan'ia, institutions often insist for ?/dd Confirmation it in'reases the

'ost of @C. /dd Confirmation is basi'a,,y a matter of payment guarantee depending on the

'ountrys 'redit rating* asset status et'.* 2here !ang,adesh genera,,y ,ags behind. If

!ang,adeshi produ'ers are unab,e to a''ommodate e,e'troni' transfer of payment and other

fa'ets of e'ommer'e* the business opportunity 2i,, move on to 'ountries that have deve,oped

su'h systems.

-'ommer'e usage 2i,, be'ome attra'tive 2hen entrepreneurs 2i,, be 'onvin'ed that this

medium is 'apab,e of obtaining orders as 2e,, as in'reasing profitabi,ity by e,iminating the

ro,e of midd,emen. Ho2ever* 'onfiden'e and trust bet2een the buyers and se,,ers is an

important determinant. If the ,o'a, produ'er fai,s to ensure ade1uate 1ua,ity or time,y de,ivery

of produ'ts* the benefits of an effi'ient sear'h and 'ommuni'ation pro'ess 2i,, be

undermined. 6hus* authenti'ation of both buyer and se,,er is a prere1uisite for su''essfu,

imp,ementation of this medium.6he servi'es of organi4ations ,ike M7et* 7et /SM* et'. 'an be uti,i4ed in order to obtain

information regarding authenti' supp,iers* manufa'turers and buyers. M7et is an

organi4ation that provides the servi'e of verifying the ',aims of se,,ers 2ith e3'ess goods.

6hey send inspe'tors to readymade garment fa'tories 2or,d2ide to 'he'k on mer'handise and

produ'tion ,ines* and a,so use independent agen'ies to 'he'k produ't 1ua,ity. En the other

hand* they a,so provide the se,,er 2ith the 'redit history of the buyer to he,p them ,o'ate

genuine buyers. )or a reasonab,e fee* a great dea, of information 'an be found from the 7et

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/sian Sour'es Media >roup ;/SM< 2ebsite.+ith improvements in infrastru'tura, fa'i,ities ;e.g. 'heaper and better a''ess to Internet

servi'e mobi,e internet boosted theon,ine retai, industry signifi'ant,y. 6he main items so,d are ',othing* e,e'troni's* toi,etries and

gifts. 6here is a number of free ',assified 2ebsites in !ang,adesh* in',uding -khanei*

!ikroy.'om* @amudi* Carmudi* Aaymu* ',i'k!D and some 2ebsite has made 2hi'h in',uded

a,, on,ine shopping address on a porrta, ,ike /,, on,ine shopping site ,ist and others.

/''ording to Prothom /,o in $#"%* about ".F to $ mi,,ion peop,e shopped on,ine every year*

and the market 2as gro2ing by "FV to $#V. /''ording to Metri3@ab* internet users in

!ang,adesh had " bi,,ion used goods in their sto'ks 2orth !D6 "% bi,,ion in $#"%./''ordingto !ang,adesh !ank* around " mi,,ion versati,e ',ients a''essed mobi,e banking* and over "##

'rore transa'tions are made through mobi,e banking a''ounts by $#"%.

'.' +a)or E-Commerce 6ebsites in an#ladesh

In spite of various barriers many e'ommer'e 2ebsites are estab,ished in !ang,adesh. In Ju,y*

$#"G* an arti',e pub,ished on )inan'ia, -3press 2ith tit,e ?e'ommer'e e3panding at faster

pa'e yet no PayPa, operation a,,o2ed in !ang,adesh. -'ommer'e in !ang,adesh is

e3panding rapid,y* thanks to a fast gro2ing number of Internet and mobi,e users* peop,e

fami,iar 2ith the business. 6he vo,ume of e'ommer'e in terms of transa'tions in monetary

va,ue is e3pe'ted to rea'h !D6$### mi,,ion in $#"G against around !D6.%F# mi,,ion of

$#"$. 6he produ'ts and servi'es that no2 dominate the 'ountry=s e'ommer'e are rai,2ay

ti'kets* domesti' air ti'kets* hote, booking* e,e'troni' produ'ts* books* gift items* 8obs* hote,

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reservation ',othing and some food items. Ma8or e'ommer'e 2ebsites in !ang,adesh are

given be,o2

• 222.bang,amart.'om

•

222.bikroy.'om• 222.akhoni.'om

• 222.a8kerdea,.'om

• 222.soho8shopping.'om

• 222.'e,,ba4aar.'om

• 222.rokomari.'om

• 222.bd8obs.'om

• 222.mutoba4aar.'om

'.4 The Role of E-Commerce in an#ladesh

6he Phenomenon of -,e'troni' Commer'e has found in every aspe't of our ,ife. In the ,ast

t2o de'ades* -,e'troni' Commer'e is revo,utioni4ing the 2ay firms 'ondu't business around

the 2or,d. Internet based e,e'troni' 'ommer'e is p,aying a 'ru'ia, ro,e in addressing strategi'*

mission 'riti'a, business needs of the 'ompanies. 6hats 2hy the 'ompanies are taking it as an

integra, part of their business strategies. -Commer'e provides severa, benefits for the

fo,,o2ing parties

ene0ts to or#ani7ations

-,e'troni' 'ommer'e e3pands the marketp,a'e from nationa, to internationa, ,eve, and

redu'es the 'ost of 'rafting* pro'essing* distributing* storing and retrieving paper Kbased

information. It a,,o2s de'reased inventories and overhead by fa'i,itating pu,, Ktype supp,y

'hain management. It a,so redu'es the time bet2een the out,ay of 'apita, and the re'eipt of

produ'ts and servi'es and te,e'ommuni'ation 'ost. !usiness pro'ess reengineering is another

important benefit to the organi4ation. ;6urban* $##"<

ene0ts to consumers

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-,e'troni' 'ommer'e enab,es 'ustomers to shop or do other transa'tions $% hours a day* from

a,most any ,o'ation. It provides 'ustomers 2ith more 'hoi'es and ,ess e3pensive produ'ts and

servi'es. It a,so a,,o2s 1ui'k de,ivery of goods and servi'es makes it possib,e to parti'ipate in

virtua, au'tions. It is true that -,e'troni' 'ommer'e fa'i,itates 'ompetition. ;6urban* $##"<

ene0ts to societ!

-,e'troni' 'ommer'e enab,es more peop,e to 2ork at home and to do ,ess trave,ing for

shopping and a,,o2s some mer'handise to be so,d at ,o2er pri'es resu,ting in improving

standard of ,iving of our 'ountry. It enab,es peop,e in rura, areas to en8oy produ'ts and

servi'es that are not avai,ab,e to them. It a,so fa'i,itates de,ivery of pub,i' servi'es su'h as hea,th 'are* edu'ation and distribution of

government so'ia, servi'es at a redu'ed 'ost and improved 1ua,ity. ;6urban* $##"


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'.$ %resent &tatus (f E-Commerce in an#ladesh and

its %otential

7o2adays the on,ine possib,y took for a huge marketp,a'e possib,y ab,e of dea,ing the

popu,ation of the 2ho,e 2or,d. 6his is the 1uestion 2hy 'ome -Commer'e is so magneti' for

a ,ot of traditiona, businesses. -Commer'e is modifying the te'hni1ue peop,e do business.

!y ,arge 'orporations to sma,, industries* businesses are going a2ay internet* opening their

produ'ts and servi'e offers to ne2 groups of peop,e 2or,d. /t that p,a'e* there are severa,

paths to get your produ'ts and servi'es internet* from simp,e shopping 2eb site to highend

database driven* data'apture and on,ine 'redit 'ard 'onfirmation so,utions.

In !ang,adesh* there is a great dea, of interest in ebusiness ho2ever* due to various

e'onomi'* infrastru'tura, and ,ega, reasons it has not spread. Most important 'ompanies*

asso'iations* 'hambers and government offi'es have set up 2ebsites. 6hese sites main,y

provide information about the organi4ation* and its produ'ts and servi'es. 6here are very fe2

sites 2here finan'ia, transa'tions 'an be 'omp,eted.

Main reasons for ,o2 -Commer'e transa'tions are absen'e of ,ega, frame2ork for

'omp,eting an e,e'troni' business or finan'ia, payment system* ,o2 Internet usage due to ,a'k

of ade1uate te,e'om fa'i,ities* and overa,, ,a'k of 'onfiden'e in the se'urity and re,iabi,ity of

-Commer'e transa'tions.

!ang,adesh internet shopping as the internet be'omes more usab,e to !ang,adesh it=s ',ear

'ut that on,ine sa,es 2i,, spring up. 6his is ahead to more a''essibi,ity of on,ine buys.

Competitor 2i,, be'ome fastgro2ing as on,ine shopping raises and so !ang,adeshi retai,ers

shou,dn=t be ,eft a,one. 6he on,ine retai, industry is getting more signifi'ant as the internet

'arries on rising in signifi'ation in !ang,adesh. !ang,adesh internet site Dire'tory for En,ine

Shopping espe'ia, 2ho,esa,e retai, 'hoi'e of -Commer'e internet site and first',ass

stores* Dhaka shops for fashion ',othing* shoes 8e2e,ry. Chittagong on,ine retai, stores for

desktops* ,aptops* tab,ets netbooks* Au,na -Commer'e sites for toys* kids baby* and

0a8shahi musi'* movies games 2ho,esa,ers Sy,het 2ebsites for sports outdoors* -

Commer'e ebusiness from !arisa,. /t present* as a started out 2ith -Commer'e they

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attempt to estab,ish an effe'tive p,atform in !ang,adesh. /dditiona,,y* they are 2ishing

'ustomer support to estab,ish a 2e,, p,atform to -Commer'e in !ang,adesh.

Current,y many peop,e of !ang,adeshi ,ive,ihood abroad in severa, 'ountries in',uding US/*

Canada in 7orth /meri'a* UA* /ustra,ia* China* Midd,e -ast and other parts in the 2or,d.

Severa, times they 2ou,d ,ike to shop on,ine from abroad to pur'hase !ang,adeshi produ'ts.

6his may be for gifts shopping* for shipping gro'eries to !ang,adesh or to take the produ'ts in

their ,iving 'ountries. !e'ause the purpose they a,, of the time try to get a re,iab,e

!ang,adeshi on,ine shop and for future shopping. En,y Ce,,!a4aar offers an e3amp,e of a

su''essfu, mobi,e based e,e'troni' marketp,a'e in !ang,adesh. It is a mobi,e app,i'ation that

brings buyers and se,,ers together in a mobi,e environment 2here they 'an pub,ish and

retrieve information on goods or servi'es.

It is a rea,time 'o,,e'tion of ',assified advertisements that is a''essib,e through a mobi,e

phone 'onne'ted to >rameenphones mobi,e net2ork* or through a 'omputer via the Ce,,

!a4aar 2ebsite ;222.'e,,ba4aar.'om


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!ikroy.'om (*F"& $F

C,i'kbd.'om "#*G%% %%

Ce,,ba4aar.'om "#*%& G&

0okomari.'om &*F$ $%#

Hutba4ar.'om $&*(#" "*#$#

"able +oremost Bangladeshi E-commerce Sites

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Chapter 4 E-commerce operation of

Rokomari.com

4.1 ack#round

0okomari.'om one of the first on,ine book store in the 'ountry * it is the sister 'on'ern of

onnorokom 2eb servi'e ,imited a part of onnorokom group . 0okomari.'om 'ame into being

in January " * $#"$ . 6oday a reader from 6eknaf is re'eiving the same book another reader

from Dhanmondi is re'eiving at their doorsteps. 6he su''ess of 0okomari.'om from its

beginning makes us be,ieve that the peop,e of !ang,adesh never ,ost the habit of reading

from the deep 'ores in their minds. 6he habit of reading is reviving. 6oday* most internetaddi'ted youngsters are often having a g,an'e through 0okomari.'om 2eb site. 6he

'ompany is headed by a board of dire'tors and a 'hairmen * Mahmudu, Hasan Shohag a,so

the founder of Udvash 'oa'hing 'enter . Mahmudu, Hasan Shohag is 'onsidered as one of the

su''essfu, entrepreneur in !ang,adesh . 6he 'ompany is headed by a Chief e3e'utive offi'er

2ho is a 2e,, kno2n professiona, . 6he head offi'e of 0okomari.'om is ,o'ated in Moti8hee, *

the main 'ommer'ia, 'enter of Dhaka. 0okomari.'om is never obsessed 2ith se,,s and

marketing on,y. 6o make ski,,ed and trained manpo2er is another 'ha,,enge and the

organi4ation is 2orking best for it. 6hey have three types of deve,opment programs

• Oouth Deve,opment Program

• Menta, Hea,th Deve,opment Program

• Ski,, Deve,opment Program

5ision :

6o invo,ve books 2ith the dai,y,ives of the peop,e of so'iety is their 'ha,,enge.

*ission :

/,ong 2ith books to de,iver other ne'essary servi'e and produ'ts . 6o ensure servi'e

1ua,ity and enri'h ,ives * 'reate va,ue and 'ontribute to2ards so'io e'onomi'

deve,opment of the 'ountry .

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