Tag: University of Mumbai BMS Notes

Online shopping is mainstream. Everyone does it and in lieu of recent in-store credit card security issues, it’s often viewed as more secure than going to a retail store or giving your credit card to a random customer service rep on the phone.

Trust in online shopping is not an issue anymore. The issue is getting your visitors to shop on your website over a competitor’s. In order to capture your audience and make the sales, your e-commerce website needs to be current and implement several very important elements.

Here are seven things to consider when developing or restructuring your e-commerce site:

1. User Friendly

If your store is easy to navigate, you will have a greater chance of making a sale from the start. The homepage should be inviting and encourage visitors to click on products or categories of items they are looking to purchase. Categories should be self-explanatory and should be broken down into subcategories so visitors can quickly find what they are looking for.

The search bar should be easy to find and quickly list all applicable items that are currently available for sale once the user types in their query.

2. Shopping Cart and Checkout Process

Adding items to the shopping cart should be simple. Color choices or style preferences should be easy to view and select. Customers like to view what they have in their cart while continuing to shop, so make sure you have a design and functionality that makes it easy.

Don’t confuse users during checkout. Keep things basic and value your customer’s time. The shopper should feel confident shopping on your website.

3. Mobile Compatibility

80% of all online adults own a smartphone. Mobile visits, in many cases now, outrank desktop use. Your e-commerce site needs to be designed and built for all devices, not just a personal computer or laptops.

4. Calls to Action (CTA)

Make sure to lead your customers through your site with calls to action that are specific to what you want them to do. For example, if you have a sale, your CTA button could be “Click Here to Save 20%!” It may be obvious to you and even to most people, but there are still a lot of people out there that have lives, raised kids or are raising kids, own or run businesses that don’t spend much time on the web. Adding that extra help builds confidence in your business, shows that you care about your customers and helps to make things less frustrating. Always avoid making your customer feel stupid because they not. If they are going to your website they must be smart enough to buy from the best company out there.

5. Images and Descriptions

When people are searching for a product to buy, they want to know all the details about it before making their purchase.

Shopping online can have it’s drawbacks because one cannot physically see or touch the items they are looking at. Because of this, it’s important to have professional quality images of your products and when applicable images from multiple angles, views, and even context.

It is also important to thoroughly describe the items in detail. Cover all aspects, including size, texture, uses, benefits, colors available, etc. You want your potential customer to feel confident that they know enough about your product to purchase it, instead of going elsewhere.

6. Customer Support

Some sort of customer support needs to be available in case of any problems or questions. There are several different types of customer support, such as 800 numbers, email support, and online chat. Decide which is the best choice for your budget and type of business. Keep in mind to always be friendly and respond in a timely manner to resolve any issues to keep your customers happy.

7. Security and Privacy

Last but not least is security. Make sure you have an SSL certificate installed to encrypt data coming and going to the browser. Today every website, e-commerce or not, should have one. Also, have a transparent privacy policy that tells your customers how their information is used on your site and by your company.

An e-commerce site needs to not only pleasing to the eye but a stress-free shopping experience as well. By developing an online store that is easy to navigate along with a seamless checkout process on any device, you will retain your customers and expand your business by acquiring new ones.

When you read the following list of advantages of e-commerce for businesses and customers, you will get the sense that e-commerce is the holy grail of retail.

1. Overcome Geographical Limitations

If you have a physical store, you are limited by the geographical area that you can service. With an e-commerce website, the whole world is your playground. Additionally, the advent of m-commerce, i.e., e-commerce on mobile devices, has dissolved every remaining limitation of geography.

2. Gain New Customers with Search Engine Visibility

Physical retail is driven by branding and relationships. In addition to these two drivers, online retail is also driven by traffic from search engines. It is not unusual for customers to follow a link in search engine results and land on an e-commerce website that they have never heard of. This additional source of traffic can be the tipping point for some e-commerce businesses.

3. Lower Costs

One of the most tangible positives of e-commerce is the lowered cost. A part of these lowered costs could be passed on to customers in the form of discounted prices. Here are some of the ways that costs can be reduced with e-commerce:

• Advertising and marketing: Organic search engine traffic, pay-per-click, and social media traffic are some of the advertising channels that can be cost-effective.
• Personnel: The automation of checkout, billing, payments, inventory management, and other operational processes lowers the number of employees required to run an e-commerce setup.
• Real estate: This one is a no-brainer. An e-commerce merchant does not need a prominent physical location.

4. Locate the Product Quicker

It is no longer about pushing a shopping cart to the correct aisle or scouting for the desired product. On an e-commerce website, customers can click through intuitive navigation or use a search box to narrow down their product search immediately. Some websites remember customer preferences and shopping lists to facilitate repeat purchase.

5. Eliminate Travel Time and Cost

It is not unusual for customers to travel long distances to reach their preferred physical store. E-commerce allows them to visit the same store virtually, with just a few mouse clicks.

6. Provide Comparison Shopping

E-commerce facilitates comparison shopping. There are several online services that allow customers to browse multiple e-commerce merchants and find the best prices.

7. Enable Deals, Bargains, Coupons, and Group Buying

Though there are physical equivalents to deals, bargains, coupons, and group buying, online shopping makes it much more convenient. For instance, if a customer has a deep discount coupon for turkey at one physical store and toilet paper at another, she may find it infeasible to avail of both discounts. But the customer could do that online with a few mouse-clicks.

8. Provide Abundant Information

There are limitations to the amount of information that can be displayed in a physical store. It is difficult to equip employees to respond to customers who require information across product lines. E-commerce websites can make additional information easily available to customers. Most of this information is provided by vendors and does not cost anything to create or maintain.

9. Create Targeted Communication

Using the information that a customer provides in the registration form, and by placing cookies on the customer’s computer, an e-commerce merchant can access a lot of information about its customers. It, in turn, can be used to communicate relevant messages. An example: If you are searching for a certain product on Amazon.com, you will automatically be shown listings of other similar products. Also, Amazon.com may email you about related products.

10. Remain Open All the Time

Store timings are now 24/7/365. E-commerce websites can run all the time. From the merchant’s point of view, this increases the number of orders they receive. From the customer’s point of view, an “always open” store is more convenient.

11. Create Markets for Niche Products

Buyers and sellers of niche products can find it difficult to locate each other in the physical world. Online, it is only a matter of the customer searching for the product in a search engine. One example could be the purchase of obsolete parts. Instead of trashing older equipment for lack of spares, today we can locate parts online with great ease.

E-Commerce advantages can be broadly classified in three major categories:

• Advantages to Organizations
• Advantages to Consumers
• Advantages to Society

Advantages to Organizations

• Using e-commerce, organizations can expand their market to national and international markets with minimum capital investment. An organization can easily locate more customers, best suppliers, and suitable business partners across the globe.
• E-commerce helps organizations to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information.
• E-commerce improves the brand image of the company.
• E-commerce helps organization to provide better customer services.
• E-commerce helps to simplify the business processes and makes them faster and efficient.
• E-commerce reduces the paper work.
• E-commerce increases the productivity of organizations. It supports “pull” type supply management. In “pull” type supply management, a business process starts when a request comes from a customer and it uses just-in-time manufacturing way.

Advantages to Customers

• It provides 24×7 support. Customers can enquire about a product or service and place orders anytime, anywhere from any location.
• E-commerce application provides users with more options and quicker delivery of products.
• E-commerce application provides users with more options to compare and select the cheaper and better options.
• A customer can put review comments about a product and can see what others are buying, or see the review comments of other customers before making a final purchase.
• E-commerce provides options of virtual auctions.
• It provides readily available information. A customer can see the relevant detailed information within seconds, rather than waiting for days or weeks.
• E-Commerce increases the competition among organizations and as a result, organizations provides substantial discounts to customers.

Advantages to Society

• Customers need not travel to shop a product, thus less traffic on road and low air pollution.
• E-commerce helps in reducing the cost of products, so less affluent people can also afford the products.
• E-commerce has enabled rural areas to access services and products, which are otherwise not available to them.
• E-commerce helps the government to deliver public services such as healthcare, education, social services at a reduced cost and in an improved manner.

Technological advancements have had a huge impact on the ecommerce world, transforming the way consumers connect with brands and empowering them to shop more cost effectively. Driven by the convenience of getting products delivered to your doorstep, ecommerce has now become an integral part of everyday life.

Strategic plans, competitive marketing, and a skilled workforce aside, ecommerce organizations are expected to remain up to date with the latest technologies. These technological advancements have enabled people to meet their purchasing needs with ease, and as a result, the ecommerce sector continues to go from strength to strength.

Ecommerce is faster than ever and customers can get anything at the click of a button, all thanks to the latest available technology. Now customers can track their orders, find the best deals and much more besides. With all this progress, new business opportunities are inevitably emerging.

1. Omni-channel presence/support

Modern shopping habits involve a process of cross-channel research, consideration, and purchase. Indeed the statistics show that 90% of customers expect smooth interactions across multiple channels and devices, highlighting the importance of omnichannel readiness for today’s businesses.

Making use of the right technology means providing customers with not only what they want when they want it, but where they want it too.

• Video Chat: Allows your business to interact face-to-face with customers creating a personalized, cross-channel, visually demonstrative and consultative experience.
• Cobrowsing: A visual engagement system bringing your agents and customers together on the same page, at the same time, allowing agents to seamlessly guide your customers through complex procedures.
• Screen Sharing: A method of interacting where your customers share their screen with your agents to effortlessly resolve difficulties filling forms, completing transactions, etc.
• Document Interaction: Provides a platform for your agents to interact with your customers’ documents safely and includes e-signature technologies for enhanced security.

These methods all help to ensure an interconnected customer journey all the way through to purchase.

2. Extensive personalization

“The customer journey is changing. Consumers want everything, and they want it immediately. Experience matters than anything else and the technology at our fingertips enable such amazing experiences, only desired in today’s fast-paced world.” :Sam Hurley

Personalization is the biggest trend in ecommerce right now. Consumers have come to expect a relevant shopping experience based on their personal preferences.

The statistics show more than 78% of customers ignore offers that aren’t personalized or based on their previous engagement with the brand. This shows just how important personalization in marketing and customer support has become.

Effective personalization comes from understanding customers’ preferences and behavior. Fortunately, technology has now evolved to provide precisely that level of insight. The potential impact of ecommerce technology on your company is huge. Nearly every user action online is captured and stored, creating a vast pool of information known as big data.

Artificial Intelligence (AI) and machine learning analytics drive customer behavior patterns, whilst simultaneously interpreting this data, meaning businesses are provided with a cycle of desires and expectations, creating endless possibilities.

Big data, machine learning, and AI have made personalization the norm, with businesses catering their support and services to reflect this.

3. The shift to mobile

Mobile platforms have increased in importance, so much so that m-commerce has emerged as a concept in its own right.

• Failing to provide a mobile-oriented shopping experience will lose your brand potential customers. Equipping yourself with mobile-friendly technology is therefore crucial in maximizing your chances of future success.
• Ecommerce mobile apps: Apps offer customers continuous engagement with your brand and the chance for your customers to familiarize themselves with new and relevant purchasing opportunities.
• Location-based marketing: Use your customers’ geographical whereabouts to market products relevant to their specific location.
• VR/AR guidance: Integrating VR and AR technologies provides an immersive mobile shopping experience for your customers, connecting them with your brand in a deeper and more meaningful way.
• Internet of Things (IoT): The IoT stems from the desire to better understand consumer trends across a range of connected devices. The scope it provides for delivering personalized mobile shopping experiences to your customers is almost limitless.

4. Conversational Marketing

Traditional marketing channels flow in only one direction. The new concept of conversational marketing has opened up two-way communication, creating numerous opportunities for ecommerce success.

Getting information directly from customers makes more sense than attempting to predict it. You can establish a personalized, real-time, one-on-one conversation on the back of this, safe in the knowledge you truly understand your customers’ needs.

Below are some of the most efficient technologies for nurturing customer conversations:

• Chatbots: Chatbots are excellent conversational marketing tools, capable of handling multiple conversations at any one time. They provide your customers with answers, drawing on knowledge pooled from multiple channels, whilst maintaining a consistent tone for your brand.
• Live chat: Live chat allows your support teams to communicate with customers through live messaging. You can initiate a preemptive chat invitation to particular customers based on their behavior.
• Mobile messaging: Smartphones are another way for your business to reach out to customers. With potential fatigue from the onslaught of promotional emails, talk with them through mobile messaging apps instead.

5. AI and chatbots for customer communications

Artificial Intelligence plays an important role in everyday life, having a major impact on how we live and work. There are several examples of AI and automation tools with customer service applications for your business, including voice-powered assistants such as Apple’s Siri, Google’s home and Amazon Echo. Research shows that 45% of millennials are already using this type of voice activated search for online shopping.

Chatbots and virtual assistants represent the future for businesses. Some are already integrating chatbots in their systems to improve their customers’ experience and boost brand image.

With the help of Chatbots you can order food, check in luggage at the airport, book a hotel room, schedule your flight, and get recommendations for almost anything you can think of. The Starbucks chatbot for example gives customers details regarding their order status, payment details etc.

6. Image search

Ecommerce businesses are integrating image search technology on their websites so customers can easily photograph products they are interested in and find similar examples on other sites that may be offering better deals.

Imagine someone sees a beautiful couch, but it costs too much for them. If your business offers similar products at a more reasonable price, integrating image search into your website will allow you to potentially pick up on this sale, creating an extra revenue stream.

7. Quick and easy checkout processes

Cart abandonment is the most frustrating reason for losing a sale because it means a user was considering buying your product, only to change their mind at the last minute. The latest data shows a 79.17% global rate of cart abandonment, highlighting how big a problem it is.

One of the main reasons customers abandon their carts is the checkout procedure itself. No matter how well the lead has been nurtured, inefficient checkout processes raise the chances your users will abandon their cart.

Therefore, if you want your ecommerce company to be successful, embrace technology that provides quick and efficient checkout solutions, such as:

• Speedy mobile payment solutions, including Apple Pay and Android Pay.
• Enabling your customers to save card details, streamlining repeat purchases.
• Providing one-page, hassle-free checkouts.
• Offering a range of payment options.

Equipped with this technology, your business can alleviate any potential difficulties customers may encounter at checkout.

Back in the day, you can sell just about anything and make crazy money.  Competition was minimal, technology wasn’t as affordable as it is now and access to product was limited.

Now, Amazon is a major competitor to everyone.  China is opening up to the world and technology is now affordable.

Here are the top 10 most common challenges faced by eCommerce businesses of all sizes.

1. Finding the right products to sell

Shopping cart platforms like Shopify have eliminated many barriers of entry.  Anyone can launch an online store within days and start selling all sorts of products.

Amazon is taking over the eCommerce world with their massive online product catalog.  Their marketplace and fulfillment services have enabled sellers from all over the world to easily reach paying customers.

Let’s not forget about Aliexpress. They’ve simplified product sourcing by giving access to Chinese manufacturers within a couple of clicks.

All of this has made it very difficult for retailers to source unique products unless you they decide to manufacture your own.

2. Attracting the perfect customer

Online shoppers don’t shop the same way as they used to back in the day.  They use Amazon to search for products (not just Google).  They ask for recommendations on Social Media. hey use their smartphones to read product reviews while in-store and pay for purchases using all sorts of payment methods.

Lots has changed including the way they consume content and communicate online. They get easily distracted with technology and social media.

Retailers must figure out where their audience is and how to attract them efficiently without killing their marketing budget.

3. Generating targeted traffic

Digital marketing channels are evolving. Retailers can no longer rely one type of channel to drive traffic to their online store.

They must effectively leverage SEO, PPC, email, social, display ads, retargeting, mobile, shopping engines and affiliates to help drive qualified traffic to their online store. They must be visible where their audience is paying attention.

4. Capturing quality leads

Online retailers are spending a significant amount of money driving traffic to their online store. With conversion rates ranging between 1% to 3%, they must put a lot of effort in generating leads in order to get the most out of their marketing efforts.

The money is in the list. Building an email subscribers list is key for long term success. Not only will help you communicate your message, but it will also allow you to prospect better using tools such as Facebook Custom Audiences.

Not all leads are created equally. Retailers must craft the right message for the right audience in order to convert them into leads with hopes of turning them into customers.

5. Nurturing the ideal prospects

Having a large email list is worthless if you’re not actively engaging with subscribers.

A small percentage of your email list will actually convert into paying customers. Nonetheless, retailers must always deliver value with their email marketing efforts.

Online retailers put a lot of focus on communicating product offering as well as promotions, but prospects need more than that.  Value and entertainment goes a long way but that requires more work.

6. Converting shoppers into paying customers

Driving quality traffic and nurturing leads is key if you want to close the sale.  At a certain point, you need to convert those leads in order to pay for your marketing campaigns.

Retailers must constantly optimize their efforts in converting both email leads as well as website visitors into customers.  Conversion optimization is a continuous process.

7. Retaining customers

Attracting new customers is more expensive than retaining the current ones you already have.

Retailers must implement tactics to help them get the most out of their customer base in increase customer lifetime value.

8. Achieving profitable long-term growth

Increasing sales is one way to grow the business but in the end, what matters most is profitability.

Online retailers must always find ways to cut inventory costs, improve marketing efficiency, reduce overhead, reduce shipping costs and control order returns.

9. Choosing the right technology & partners

Some online retailers may face growth challenges because their techonology is limiting them or they’ve hired the wrong partners/agencies to help them manage their projects.

Retailers wanting to achieve growth must be built on a good technology foundation. They must choose the right shopping cart solution, inventory management software, email software, CRM systems, analytics and so much more.

In addition, hiring the wrong partners or agencies to help you implement projects or oversee marketing campaigns may also limit your growth.  Online retailers must choose carefully who to work with.

10. Attracting and hiring the right people to make it all happen

Let’s face it, online retailers may have visions and aspirations but one true fact remains, they need the right people to help them carry out their desires.

Attracting the right talent is key in order to achieve desirable online growth. Also, having the right leader plays an even bigger role.

Retailers should be out there getting their name out within the online community by attending eCommerce conferences, speaking at events and networking. Employees want to work for companies that care about them and their future.  Having a sense of purpose is key.

We are living in the age of technological advances. Development in our society began to happen post the World Wars, where in Industrial revolution started changing the face of economies. With evolution of Information Technology we first heard the Radio and later the TV that could capture pictures from the air and show it on the TV box. Then came the ‘Computer’ which was aptly the magic box. Computers and advancement of information and communication technology heralded the arrival of ‘Internet’ or ‘World Wide Web’ technology.

What a difference the Internet has made to our lives. No other invention has had such a mass transformational power over the entire human society, enterprise, business, economy as well as the political systems, education and the world communities and nations at large. The internet is rightly called the highway that has managed to erase the borders between countries and societies and taken the human society to a different level altogether.

Take a look at our lives today. There is no aspect of our life that is not interfaced with internet in one way or the other. From an individual’s need to find a date or a suitable life partner to one’s banking, insurance and other payments as well as dining out and not to forget the online shopping, internet has managed to become the mainstream facilitator to each and every individual.

Today millions of users access and use the internet for various purposes throughout the day. They use the internet for searching, browsing, writing & communication, listening, watching news, videos, publishing copying, printing, discussions, trading and selling etc. The list of activities and choices that the internet has got to offer to individuals is ever expanding. With millions of users actively looking for various products, information and services, there is a huge opportunity for the businesses to jump on to the internet bandwagon and cash in on the business opportunity that is presenting itself every minute.

Technology has helped build a platform that has enabled the businesses to cash in on the huge population and market that is now accessible over the internet and sell to them. Take the case of Online Banking, Mobile Banking, Debit| Credit Cards, ATMs as well as online trading and other business transactions, all these have grown and happened as a result of technological advancement in terms of communication, software as well as hardware technologies. From the time that one connected to Internet using a desktop, model and a telephone line to the Wi-Fi technology of today, we have graduated very fast making it possible to buy and sell at the click of a button. At another level the Business Processes as well as ERP coupled with various software and applications besides EDI, have enabled businesses to go ‘On Line’ with their business models.

Today no business, be it Business to Business or Business to Consumer, can ignore the huge ‘Online Market’ that exists on the internet. E Commerce was inevitable. Physical markets have literally been replaced with ‘Virtual Markets’. E Commerce has had far reaching impact on business organizations for it has redefined ‘Market’. E Commerce has made it possible for sellers to reach out to planet wide markets and consumers, thus changing the way business is conducted. For every prospective Management Professional, the in depth understanding of ‘Online Marketing’ and ‘E Commerce’ have become very important. Marketing managers have got to go back to the class rooms to learn the new rules of game in handling Online Marketing which is drastically and totally different from the traditional marketing, selling, distribution and advertising strategies. Understanding all about Internet, E Commerce mechanisms, technologies, learning how to market online, understanding E Customer and learning to identify, build and nurture a relationship with the E Customer become the building blocks of one’s new learning.

The Internet is a worldwide, publicly accessible series of interconnected computer networks that transmit data by packet switching using the standard Internet Protocol (IP). It is a “network of networks” that consists of millions of smaller domestic, academic, business, and government networks, which together carry various information and services, such as electronic mail, online chat, file transfer, and the interlinked web pages and other resources of the World Wide Web (WWW).

The Internet and the World Wide Web are not synonymous. The Internet is a collection of interconnected computer networks, linked by copper wires, fiber-optic cables, wireless connections, etc. In contrast, the Web is a collection of interconnected documents and other resources, linked by hyperlinks and URLs. The World Wide Web is one of the services accessible via the Internet, along with various others including e-mail, file sharing, online gaming and others described below.

America Online, Comcast, Earthlink, etc. are examples of Internet service providers. They make it physically possible for you to send and access data from the Internet. They allow you to send and receive data to and from their computers or routers which are connected to the Internet.

World Wide Web is an example of an information protocol/service that can be used to send and receive information over the Internet. It supports:

• Multimedia Information (text, movies, pictures, sound, programs . . . ).
• Hypertext Information (information that contains links to other information resources)
• Graphic User Interface (so users can point and click to request information instead of typing in text commands).

The server software for the World Wide Web is called an HTTP server (or informally a Web server). Examples are Apache and IIS. The client software for World Wide Web is called a Web browser. Examples are: Netscape, Internet Explorer, Safari, Firefox, and Mozilla. These examples are particular “brands” of software that have a similar function, just like Lotus 123 and Excel are both spreadsheet software packages.

More than 1.8 billion people worldwide use the Internet in some way, shape or form, according to a December, 2009 study on internetworldstats.com. A significant portion of users are business owners who have learned the power of connecting with customers and colleagues electronically. Over time, a business owner’s consistent use of the Internet can help propel his company to the next level.

Research Competition

Some businesses use the Internet to research competitors. For instance, Hoovers.com allows searches for detailed information on businesses across the country. An Internet search on a competing company results in articles and news stories about the competition that may help a business owner prepare for changes in the industry.

Buy and Sell

One of the basic uses of the Internet for businesses is to sell products and services. Businesses create E-commerce websites to sell anything from cell phone contracts to books and CDs. Online selling eliminates the need for the business to maintain a brick-and-mortar store and in some cases they don’t have to hold an inventory. A business can also use the Internet to buy items and services online, such as bulk-buying office supplies or printed materials.

Gauge Customer Interest

Business owners use the Internet to monitor customer purchasing trends and interests. To discover what everyday people think about a particular product or service, business owners can visit online social networking sites and message boards. Taking in this feedback helps business owners make their products better. For example, car accessory businesses can visit car forums to find out what car enthusiasts want. A business owner can also use the Internet to connect and communicate with his customers through these same websites.

Advertising

Businesses also use the Internet to find new customers through online advertising. Offering text and banner ads on websites as well as informational pieces, the Internet allows advertisers to reach potential customers quickly and efficiently. Pay-per click advertisements are distributed on Internet search engines and websites, allowing business owners to reach potential customers using search terms related to their business. As the business pays only for each ad click, costs are lower. The affordability and reach of some Internet advertising puts even the smallest business owner in a position to compete with larger businesses.

Provide a Superior Customer Experience

Digital technologies enable businesses to attract, retain and engage their customers in a more effective manner and for lower costs. You can use your website and social media pages to connect with prospects and market your products to those who are most likely to buy. With pay-per-click advertising, you can reach the right people at the right time and adapt your campaigns to the needs of your target audience. Marketing automation allows you to track the customer journey and reach potential clients across multiple channels.

Customer relationship management software enables users to keep accurate records of their customers’ needs, transactions and buying behavior. With this data, you can personalize the customer experience and provide better service. According to Accenture, 91 percent of people are more likely to purchase from brands that remember their preferences and provide relevant offers.

Reach a Global Audience

The rise of e-commerce, social networking and other digital technologies allows companies to reach a global audience. Geographical boundaries are no longer an issue. Small businesses can now advertise and sell their products to customers worldwide. A well-designed social media campaign can go viral within hours, generating leads and revenue.

It’s estimated that over 1.9 billion people will make an online purchase in 2019. Regardless of your budget, you can put your business in front of millions of potential customers to raise brand awareness and generate revenue. Furthermore, you can leverage the power of email and video marketing, blogging, search engine optimization and other technologies to turn prospects into buyers. Without the internet, none of these things would be possible.

Other Business Advantages

There are many other advantages of using the internet in business. Web-based technologies can improve teamwork, free up employees’ time and increase your productivity. Depending on your needs, you may use collaboration tools, project management tools, website builders, video conferencing and much more.

The internet has changed the business world forever, becoming an indispensable part of our lives. Companies that want to remain competitive and grow can no longer ignore its impact.

A protocol is a standard set of rules that allow electronic devices to communicate with each other. These rules include what type of data may be transmitted, what commands are used to send and receive data, and how data transfers are confirmed.

You can think of a protocol as a spoken language. Each language has its own rules and vocabulary. If two people share the same language, they can communicate effectively. Similarly, if two hardware devices support the same protocol, they can communicate with each other, regardless of the manufacturer or type of device. For example, an Apple iPhone can send an email to an Android device using a standard mail protocol. A Windows-based PC can load a webpage from a Unix-based web server using a standard web protocol.

Protocols exist for several different applications. Examples include wired networking (e.g., Ethernet), wireless networking (e.g., 802.11ac), and Internet communication (e.g., IP). The Internet protocol suite, which is used for transmitting data over the Internet, contains dozens of protocols. These protocols may be broken up into four catagories:-

• Link layer: PPP, DSL, Wi-Fi, etc.
• Internet layer: IPv4, IPv6, etc.
• Transport layer: TCP, UDP, etc.
• Application layer: HTTP, IMAP, FTP, etc.

Link layer protocols establish communication between devices at a hardware level. In order to transmit data from one device to another, each device’s hardware must support the same link layer protocol. Internet layer protocols are used to initiate data transfers and route them over the Internet. Transport layer protocols define how packets are sent, received, and confirmed. Application layer protocols contain commands for specific applications. For example, a web browser uses HTTPS to securely download the contents of a webpage from a web server. An email client uses SMTP to send email messages through a mail server.

Protocols are a fundamental aspect of digital communication. In most cases, protocols operate in the background, so it is not necessary for typical users to know how each protocol works. Still, it may be helpful to familiarize yourself with some common protocols so you can better understand settings in software programs, such as web browsers and email clients.

Network Protocols

Network protocols are sets of established rules that dictate how to format, transmit and receive data so computer network devices from servers and routers to endpoints can communicate regardless of the differences in their underlying infrastructures, designs or standards.

To successfully send and receive information, devices on both sides of a communication exchange must accept and follow protocol conventions. Support for network protocols can be built into software, hardware or both.

Standardized network protocols provide a common language for network devices. Without them, computers wouldn’t know how to engage with each other. As a result, except for specialty networks built around a specific architecture, few networks would be able to function, and the internet as we know it wouldn’t exist. Virtually all network end users rely on network protocols for connectivity.

How network protocols work?

Network protocols break larger processes into discrete, narrowly defined functions and tasks across every level of the network. In the standard model, known as the Open Systems Interconnection (OSI) model, one or more network protocols govern activities at each layer in the telecommunication exchange.

A set of cooperating network protocols is called a protocol suite. The TCP/IP suite includes numerous protocols across layers such as the data, network, transport and application layers working together to enable internet connectivity. These include:

Transmission Control Protocol (TCP), which uses a set of rules to exchange messages with other internet points at the information packet level;

User Datagram Protocol (UDP), which acts as an alternative communication protocol to TCP and is used to establish low-latency and loss-tolerating connections between applications and the Internet.

Internet Protocol (IP), which uses a set of rules to send and receive messages at the Internet address level; and

additional network protocols that include the Hypertext Transfer Protocol (HTTP) and File Transfer Protocol (FTP), each of which has defined sets of rules to exchange and display information.

Every packet transmitted and received over a network contains binary data. Most protocols will add a header at the beginning of each packed in order to store information about the sender and the message’s intended destination. Some protocols may also include a footer at the end with additional information. Network protocols process these headers and footers as part of the data moving among devices in order to identify messages of their own kind.

Network protocols are often set forth in an industry standard — developed, defined and published by groups such as:

• The International Telecommunication Union
• The Institute of Electrical and Electronics Engineers
• The Internet Engineering Task Force
• The International Organization for Standardization
• The World Wide Web Consortium.

Major types of network protocols

Generally speaking, networks have three types of protocols communication, such as Ethernet; management, such as the Simple Mail Transfer Protocol (SMTP); and security, such as Secure Shell (SSH).

Falling into these three broad categories are thousands of network protocols that uniformly handle an extensive variety of defined tasks, including authentication, automation, correction, compression, error handling, file retrieval, file transfer, link aggregation, routing, semantics, synchronization and syntax.

Implementing network protocols

In order for network protocols to work, they must be coded within software, either a part of the computer’s operating system (OS) or as an application, or implemented within the computer’s hardware. Most modern operating systems possess built-in software services that are prepared to implement some network protocols. Other applications, such as web browsers, are designed with software libraries that support whatever protocols are necessary for the application to function. Furthermore, TCP/IP and routing protocol support is implemented in direct hardware for enhanced performance.

Whenever a new protocol is implemented, it is added to the protocol suite. The organization of protocol suites is considered to be monolithic since all protocols are stored in the same address and build on top of one another.

Vulnerabilities of network protocols

One major vulnerability found in network protocols is that they are not designed for security. Their lack of protection can sometimes allow malicious attacks, such as eavesdropping and cache poisoning, to affect the system. The most common attack on network protocols is the advertisement of false routes, causing traffic to go through compromised hosts instead of the appropriate ones.

Network protocol analyzers have been designed and installed in response to these vulnerabilities. Network protocol analyzers protect systems against malicious activity by supplementing firewalls, anti-virus programs and anti-spyware software.

Uses of network protocols

Network protocols are what make the modern Internet possible since they allow computers to communicate across networks without users having to see or know what background operations are occurring. Some specific examples of network protocols and their uses are:

• Post Office Protocol 3 (POP3), which is the most recent version of a standard protocol that is used for receiving incoming e-mails.
• Simple main transport Protocol, which is used to send and distribute outgoing e-mails.
• File Transfer Protocol (FTP), which is used to transfer files from one machine to another.
• Telnet, which is a collection of rules used to connect one system to another via a remote login. In this protocol, the system that send the request for connection is the local computer and the system that accepts the connection is the remote computer.

An e-payment system is a way of making transactions or paying for goods and services through an electronic medium, without the use of checks or cash. It’s also called an electronic payment system or online payment system.

The electronic payment system has grown increasingly over the last decades due to the growing spread of internet-based banking and shopping. As the world advances more with technology development, we can see the rise of electronic payment systems and payment processing devices. As this increase, improve, and provide ever more secure online payment transactions the percentage of check and cash transactions will decrease.

Methods of electronic payment system

One of the most popular payment forms online is credit and debit cards. Besides them, there are also alternative payment methods, such as bank transfers, electronic wallets, smart cards or bitcoin wallet (bitcoin is the most popular crypto currency).

E-payment methods could be classified into two areas, credit payment systems and cash payment systems.

1. Credit Payment System

• Credit Card: A form of the e-payment system which requires the use of the card issued by a financial institute to the cardholder for making payments online or through an electronic device, without the use of cash.
• E-wallet: A form of prepaid account that stores user’s financial data, like debit and credit card information to make an online transaction easier.
• Smart card: A plastic card with a microprocessor that can be loaded with funds to make transactions; also known as a chip card.

2. Cash Payment System

• Direct debit: A financial transaction in which the account holder instructs the bank to collect a specific amount of money from his account electronically to pay for goods or services.
• E-check: A digital version of an old paper check. It’s an electronic transfer of money from a bank account, usually checking account, without the use of the paper check. E-cash is a form of an electronic payment system, where a certain amount of money is stored on a client’s device and made accessible for online transactions.
• Stored-value card: A card with a certain amount of money that can be used to perform the transaction in the issuer store. A typical example of stored-value cards are gift cards.

Advantages of electronic payment systems

1. Time savings

Money transfer between virtual accounts usually takes a few minutes, while a wire transfer or a postal one may take several days. Also, you will not waste your time waiting in lines at a bank or post office.

2. Expenses control

Even if someone is eager to bring his disbursements under control, it is necessary to be patient enough to write down all the petty expenses, which often takes a large part of the total amount of disbursements. The virtual account contains the history of all transactions indicating the store and the amount you spent. And you can check it anytime you want. This advantage of electronic payment system is pretty important in this case.

3. Reduced risk of loss and theft

You can not forget your virtual wallet somewhere and it can not be taken away by robbers. Although in cyberspace there are many scammers, in one of the previous articles we described in detail how to make your e-currency account secure.

4. Low commissions

If you pay for internet service provider or a mobile account replenishment through the UPT (unattended payment terminal), you will encounter high fees. As for the electronic payment system: a fee of this kind of operations consists of 1% of the total amount, and this is a considerable advantage.

5. User-friendly

Usually every service is designed to reach the widest possible audience, so it has the intuitively understandable user interface. In addition, there is always the opportunity to submit a question to a support team, which often works 24/7. Anyway you can always get an answer using the forums on the subject.

6. Convenience

All the transfers can be performed at anytime, anywhere. It’s enough to have an access to the Internet.

Disadvantages of electronic payment systems

1. Restrictions

Each payment system has its limits regarding the maximum amount in the account, the number of transactions per day and the amount of output.

2. The risk of being hacked

If you follow the security rules the threat is minimal, it can be compared to the risk of something like a robbery. The worse situation when the system of processing company has been broken, because it leads to the leak of personal data on cards and its owners. Even if the electronic payment system does not launch plastic cards, it can be involved in scandals regarding the Identity theft.

The problem of transferring money between different payment systems- Usually the majority of electronic payment systems do not cooperate with each other. In this case, you have to use the services of e-currency exchange, and it can be time-consuming if you still do not have a trusted service for this purpose. Our article on how to choose the best e-currency exchanger greatly facilitates the search process.

3. The lack of anonymity

The information about all the transactions, including the amount, time and recipient are stored in the database of the payment system. And it means the intelligence agency has an access to this information. You should decide whether it’s bad or good.

4. The necessity of Internet access

If Internet connection fails, you can not get to your online account.

1. Sophisticated (and Zero-Day) Malware

Malware has gotten very sophisticated, tracking everything from keystrokes to learning passwords, to infiltrating laptop cameras and microphones. URL scraping can see where you’ve been online, and bots can be installed in your system without you ever knowing it. This all adds up to bad actors knowing who you are, what you do, your passwords, etc. This is all bad news.

With malware and ransomware (encrypting your files until you pay a ransom to a hacker) on the rise, you must have the latest and greatest security software installed and running. You also must be vigilant in the links you click, the pages you visit and the people you interact with online.

2. Poor Patching

Patching is a critical activity for any progressive, security-conscious organization. Unfortunately, patching demands must be addressed on operating systems, applications and network infrastructure, making it a bit of a hindrance in some minds.

It’s important to patch often and completely. Back in 2014, about half of all exploits went from the publishing of the vulnerability to being hacked in less than a month. Last year, 99.99 percent of vulnerabilities compromised were done so more than one year after they were identified.. You must patch frequently and patch often.

3. Application/Middleware Vulnerabilities

Breaching the perimeter is no longer the preferred attack vector. Attackers are now taking advantage of the proliferation of applications across the typical enterprise. Most vendors will do the right thing with vulnerabilities and patches, but you must remain vigilant.

Establish an application security program to address this need. Scan internal apps and do frequent code reviews. Keep your security program up to date by always installing the latest versions of all security solutions.

4. Service Providers

Third parties have become a large part of many infrastructures owing to their cost-savings, expertise and capabilities. Many are trusted with sensitive info, making them a very tight extension of your organization. Sadly, the Ponemon Institute states that third-party organizations accounted for (or were involved in) 42 percent of all data breaches.

Be strict in your third-party service provider evaluations. Ensure they have a solid track record of security.

5. Failed Understanding of InfoSec and Cyber Risk

We’re sometimes our own worst enemies and what we don’t know can hurt our organizations. Risk is always seen through the eyes of the risk-taker, and if you’re unable to articulate the risks, people won’t see them.

Make education a priority. Don’t assume that everyone will value security as highly as you do. Put yourself in the shoes of the risk-taker and formulate a plan to address their risks.

6. Mobile and BYOD

Mobile devices are prevalent in our enterprises, and not all of them are company issued (bring your own device). Unmanaged mobile devices present many threats. Non-compliant and jail-broken devices are often easy to exploit, and employees frustrated by multiple-authorization requests may simply get around your controls.

Anticipate this by developing a comprehensive mobile device management (MDM) strategy and stick to it. Work to understand how your employees are using these devices and implement policies to address said usage. Also, make it a priority to know all the devices using your network.

7. Smarter Phishing and Spear Phishing

Phishing used to be easy to identify. Poor spelling and grammar were dead giveaways, as was the non-personal nature of the email. Well the “Dear sir/madam” intro has been replaced by very targeted messaging. “CEO Wire Fraud” attacks accounted for $2.3 billion in losses, according to the FBI. This “spear phishing” features language that is very specific to the recipient, and often high-level folks with top access and the ability to authorize payments.

Never authorize access or payments to people you don’t recognize. Follow up with people in your organization responsible for such things.

8. Cloud Unpreparedness

Everybody is rushing to put their data into the cloud, and it makes sense. The cloud offers many benefits and is undeniably the way forward, but migrating to the cloud should be done with care.

It all starts with asking the right questions. Who will own the data? What data should be in the cloud? What data should be omitted from the cloud? How is data handled once it is no longer needed? Finally, take the time to understand what data protection controls YOU are responsible to provide.

9. Over-trusting Encryption

Encryption is a great thing, but it’s not everything. Encryption of data is only as safe as the encryption type you use and how the keys are managed. Payment Card Industry (PCI) compliance does not allow encryption to take data out of PCI scope.

Simply put, encryption should be employed as part of a total solution, not as the only solution.

10. Internet of Things (IoT) Attacks

As a society, we certainly don’t seem to have trust issues when it comes to IoT devices. But the fact is, if something is internet-enabled, it can be hacked. Cars, refrigerators and even children’s toys can be accessed by bad actors.

With Gartner estimating that 50 trillion gigs of data will be sent by IoT devices by 2020, hackers are sensing a massive opportunity. Always change passwords and factory security settings when employing these devices.

Electronic banking has many names like e banking, virtual banking, online banking, or internet banking. It is simply the use of electronic and telecommunications network for delivering various banking products and services. Through e-banking, a customer can access his account and conduct many transactions using his computer or mobile phone.

Types of Electronic Banking

Banks offer various types of services through electronic banking platforms. These are of three types:-

Level 1: This is the basic level of service that banks offer through their websites. Through this service, the bank offers information about its products and services to customers. Further, some banks may receive and reply to queries through e-mail too.

Level 2: In this level, banks allow their customers to submit instructions or applications for different services, check their account balance, etc. However, banks do not permit their customers to do any fund-based transactions on their accounts.

Level 3: In the third level, banks allow their customers to operate their accounts for funds transfer, bill payments, and purchase and redeem securities, etc.

Most traditional banks offer e-banking services as an additional method of providing service. Further, many new banks deliver banking services primarily through the internet or other electronic delivery channels. Also, some banks are ‘internet only’ banks without any physical branch anywhere in the country.

Importance of e-banking

We will look at the importance of electronic banking for banks, individual customers, and businesses separately.

For Banks

• Lesser transaction costs: electronic transactions are the cheapest modes of transaction
• A reduced margin for human error: since the information is relayed electronically, there is no room for human error
• Lesser paperwork: digital records reduce paperwork and make the process easier to handle. Also, it is environment-friendly.
• Reduced fixed costs: A lesser need for branches which translates into a lower fixed cost.
• More loyal customers: since e-banking services are customer-friendly, banks experience higher loyalty from its customers.

For Customers

• Convenience: a customer can access his account and transact from anywhere 24x7x365.
• Lower cost per transaction: since the customer does not have to visit the branch for every transaction, it saves him both time and money.
• No geographical barriers: In traditional banking systems, geographical distances could hamper certain banking transactions. However, with e-banking, geographical barriers are reduced.

For Businesses

• Account reviews: Business owners and designated staff members can access the accounts quickly using an online banking interface. This allows them to review the account activity and also ensure the smooth functioning of the account.
• Better productivity: Electronic banking improves productivity. It allows the automation of regular monthly payments and a host of other features to enhance the productivity of the business.
• Lower costs: Usually, costs in banking relationships are based on the resources utilized. If a certain business requires more assistance with wire transfers, deposits, etc., then the bank charges it higher fees. With online banking, these expenses are minimized.
• Lesser errors: Electronic banking helps reduce errors in regular banking transactions. Bad handwriting, mistaken information, etc. can cause errors which can prove costly. Also, easy review of the account activity enhances the accuracy of financial transactions.
• Reduced fraud: Electronic banking provides a digital footprint for all employees who have the right to modify banking activities. Therefore, the business has better visibility into its transactions making it difficult for any fraudsters to play mischief.

E-banking in India

In India, since 1997, when the ICICI Bank first offered internet banking services, today, most new-generation banks offer the same to their customers. In fact, all major banks provide e-banking services to their customers.

Popular services under e-banking in India

• ATMs (Automated Teller Machines)
• Telephone Banking
• Electronic Clearing Cards
• Smart Cards
• EFT (Electronic Funds Transfer) System
• ECS (Electronic Clearing Services)
• Mobile Banking
• Internet Banking
• Telebanking
• Door-step Banking

Further, under Internet banking, the following services are available in India:

1. Bill payment

Every bank has a tie-up with different utility companies, service providers, insurance companies, etc. across the country. The banks use these tie-ups to offer online payment of bills (electricity, telephone, mobile phone, etc.). Also, most banks charge a nominal one-time registration fee for this service. Further, the customer can create a standing instruction to pay recurring bills automatically every month.

2. Funds transfer

A customer can transfer funds from his account to another with the same bank or even a different bank, anywhere in India. He needs to log in to his account, specify the payee’s name, account number, his bank, and branch along with the transfer amount. The transfer is effected within a day or so.

3. Investing

Through electronic banking, a customer can open a fixed deposit with the bank online through funds transfer. Further, if a customer has a demat account and a linked bank account and trading account, he can buy or sell shares online too. Additionally, some banks allow customers to purchase and redeem mutual fund units from their online platforms as well.

4. Shopping

With an e-banking service, a customer can purchase goods or services online and also pay for them using his account.