ABSTRACT ………………………………………………………………………………………………………………………………1

INTRODUCTION..........................................................................................................................2
WORKING.....................................................................................................................................3
STAGES IN EVOLUTION............................................................................................................4
VARIOUS E-COMMERCE MODELS..........................................................................................5
E-COMMERCE CATALOUGE & PRODUCTS...........................................................................5
Ecommerce Administration........................................................................................................6
Ecommerce – Technical:............................................................................................................6
Ecommerce Customer Convenience...........................................................................................7
ELECTRONIC PAYMENT SYSTEMS.........................................................................................8
Electronic Data Interchange........................................................................................................8
POTENTIAL IMPACT OF BLUETOOTH ON E-COMMERCE................................................10
The potential Impact:................................................................................................................10
Bluetooth-facilitated e-commerce:............................................................................................10
SECURE ACCESS TO E-COMMERCE NETWORKS...............................................................12
E-SERVICE.....................................................................................................................................12
E-COMMERCE – SECURITY....................................................................................................15
CONCLUSION............................................................................................................................16
REFERENCES.............................................................................................................................17

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 ABSTRACT
E-commerce represents an ultimate state of the technology-driven market
structure. To know the technological and business realities that impact on the existence
and survival of a business venture is the concern of all. The Net is the backbone of the
emerging digital economy that is shaping the future of businesses, organizations, and
institutions of all kinds. Even individuals are at the mercy of these rapid changes. The
simplest way to view web services is as software that knows how to talk to other types of
software over a network.
A web service can be nearly any type of application that has the ability to define
to other applications what it does and can perform that action for authorized applications
or parties. Though e-commerce is growing at a very fast rate as well as reducing a lot of
information that needs to be repeatedly transferred from one location to another which
involves wastage of money as well as time has got many holes in it. The security is the
major criterion that has to be taken under consideration all times. The field of e-
commerce is not totally a secured one. Though online supply chains are becoming the
norm, electronic retailing requires an effective strategy for both B2B and B2C operations.

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 INTRODUCTION
E-commerce is a technology-induced market. E-commerce technologies enable
enterprises to exchange information instantaneously, eliminate paper work and advertise
their products and service range to global market. E-commerce covers inter and inter
company operations. E-commerce brings every business operation-finance, human
resources, marketing, or any other function-onto the electronic platform. E-commerce
may take many forms. It may include:

 Supply management/buying/auctioning.
 Internet order, status, and availability tracking.
 Placing Internet orders with suppliers.
 Accepting Internet orders from suppliers.
Some of the definitions of e-commerce often heard and found in publications and the
media are:

 Electronic Commerce (EC) is where business transactions take place via

telecommunications networks, especially the Internet.
 Electronic commerce describes the buying and selling of products, services, and
information via computer networks including the Internet.
 Electronic commerce is about doing business electronically.
 E-commerce, or electronic commerce is defined as the conduct of a financial
transaction by electronic means.6
The wide range of business activities related to e-commerce brought about a range of
other new terms and phrases to describe the Internet phenomenon in other business
sectors. Some of these focus on purchasing from on-line stores on the Internet. Since
transactions go through the Internet and the Web, the terms I-commerce (Internet
commerce), E-commerce and even Web-commerce have been suggested but are now
very rarely used. Other terms that are used for on-line retail selling include e-tailing,
virtual-stores or cyber stores. A collection of these virtual stores is sometimes gathered
into a ‘virtual mall’ or ‘cybermall’.

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 WORKING
The E-commerce process works in the following manner: A consumer uses a web
browser like the Internet Explorer to connect to the home page of a commercial website
on the Internet.

• The consumer browses through the product catalogue available on the site and
selects the item(s) to purchase. The selected items are placed in a shopping cart.
• When the consumer finalizes the list of elected items he/she provides a ship-to
and bill-to address for delivery and purchase.
• When commercial web server receives this information, it processes the order and
prepares a bill after totaling the items’ cost and adding tax and handling charges.
• The consumer may now provide payment information by mentioning the name
and number of his/her credit card and submit the order.
• When the credit card details are verified and authenticated and the order is
completed, the commercial web server displays the receipt for the just concluded
purchase.
• The commercial web server then forwards the order to a processing network for
fulfillment.

Figure: 1 Communicating through Internet

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 STAGES IN EVOLUTION
E-commerce is an evolving process. Based on the underlying technology and
business approach the following stages are recognized in the e-commerce evolution.
Brochureware: Despite the early technological limitations of the Internet, companies
were quick to recognize the value of the value of the Internet and the World Wide Web,
in particular, as a medium to reach out to customers around the world. Web presence
meant providing some static documents in simple multimedia. Customer interaction was
often limited to reading text and viewing pictures. Actual transactions and customer
interaction were still conducted over traditional media such as telephone or fax.
E-Commerce: In the e-commerce stage, companies focused on consumer applications
(B2C) that allow transactions and interaction between the company and the consumer
over the net. The dot-com boom was mostly due to such companies that were pure net
players; a kind of business model designed specifically for the purpose of buying and
selling to consumers online. Many variations of the application came into being like e-
retailing, consumer portals, bidding and auctioning and electronic bill payment.
E-Business: In this stage of e-commerce evolution, business started focusing on B2B
applications that allow transactions and interactions between the company and its
business customer’s partners over the Internet. Some of the unique applications of this
phase include customer relationship management (CRM), virtual market places and
extended value chain.
E-enterprise: In an e-Enterprise, the whole value chain from procurement of raw
materials on the supply side to consumer retailing and customer management on the
demand side happens by combining the traditional brick-and-mortar assets with
efficiency of cyber mediation. Fundamentally an e-Enterprise aims at engineering and re-
engineering inward and outward facing business processes by leveraging unique strengths
offered by the net.

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 VARIOUS E-COMMERCE MODELS
Business-to-Business model: This model visualizes gazing upon commercial
transactions of Business to Business.
Business-to-customers model: This model envisages a business organization
contemplating commercial transactions directly with individual customers.
Amazon.com and rediff.com are examples.
Customer-to-Customer model: It is a common platform where buyers and sellers meet.
This model envisages business transactions being carried out between several
individuals’ customers who are often consumers.
Business-to-Administration model: This model is where business organizations make
transactions with the administration or government agencies.

Individuals-to-administration model: This model envisages individuals making transactions

with the administration or government agencies.

Education-to-Students model: This model deals with an educational institute providing

educational information and learning experience to students through a website.Bn.com is a good
example.

Figure: 2 Interactions Model

E-COMMERCE CATALOUGE & PRODUCTS

Catalogue & Products are:

 Unlimited number of Products, Categories and Options.

 Item discounts based on quantity ordered.

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  Order discounts with single or multi use discount codes.
 Products can be linked to multiple categories, and multiple option groups.
 Product categories can be "nested" within each other.
 You can display the entire category tree, or only from a certain point in the tree.
 Link images or other HTML to the category display.
 Group products so that they are displayed together on the product detail page.
 Option Groups can be individually set to Optional or Required. This way you can
make sure that the Customer selects all the right options.
 Options can be given a weight which will be factored into the shipping cost
calculations along with the Product weight.
 Support for "text" options which allows a customer to enter text when they order a
product.
 Store can be run in "Catalogue Only" mode. This way, the store acts just like an
online catalog, without any links to a shopping cart.
 Dynamically create product listings on your "Home Page" by setting product(s) to
"Featured".
 Cross-Selling (related products)

Ecommerce Administration:
• On-Screen help is available for most functions.
• Easily manage Products, Categories, Options, Customers, Shipping, Locations,
Orders and much more.
• Upload Product Images from your browser to your web server.
• Store shipping rates are calculated by order weight and/or price. The amount
charged for shipping can be calculated via fixed price or percentage. Ability to
assign Free Shipping to an individual product.
• Activate/Deactivate individual customers.
• Manage your orders from an intuitive screen. Order stock levels can be adjusted
when the order ships.
• Add private comments to each order, or comments that the customer can also see.
• Statistical Charting tool.
• Emails sent to customer via the store can be customized to suit your requirements.
Dynamic replacement of text can also be done.

Ecommerce – Technical:
• ASP/ VBScript based software comes with full source code.
• No additional components needed for core functions.
• Runs on IIS 4.0/5.0 and PWS with Database support for MS Access 97/2000,
SQL Server 7.0/2000.
• Built-in support for 5 of the most popular email components.
• Database based cart, from start to finish.
• Admin tool comes with several troubleshooting tools to help novice users track
down web server configuration errors.

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 • Skinnable design allows for enormous flexibility in changing the look and feel of
your store, without impacting future upgrades.
• Separate customizable language file for the front-end of your store allows you to
present the front-end to your customers in the language of your choice.
• Newsletters to your customers directly from your store.

Ecommerce Customer Convenience:

• Customer can view and modify their personal info by logging on to their account.
Account can be created before or during Checkout process.
• Full order history and detail is available to the customer.
• Customer receives confirmation emails when they place the order, and when their
Order’s status changes.
• Password Reminder feature for Customers.
• Email a Friend" functionality allows customer to send a link to a Product via
email.
• Convenient Order Print function from the customer's account area.
• Advanced search function.
• Contact us" script to send queries via email from your store.
• "Save Cart" functionality.
• See shipping estimates before checkout.

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 ELECTRONIC PAYMENT SYSTEMS
For long banks have been using electronic fund transfers (EFT) which are
electronic transmissions of account exchange information over privately owned
communication networks. Electronic payment systems first emerged with the
development of wire transfers. Early wire transfer services enabled an individual to
deliver currency to a clerk at one location, who then instructed a clerk at another location
to distribute funds to a party at that second location who was able to identify as the
intended recipient. This is something similar to Telegraphic Money Order (TMO)done at
post office or telegraphic transfer (TT) done at banks. Electronic fund transfer systems
(EFT) shortened the time of payment instruction transfer between banks, and in the
process have reduced the float.
The EFT falls under the following broad categories.

• Banking and financial payments Bank to bank transfers.

• Retail payments Credit card like VISA (www.visa .com) or master card
(www.mastercard.com) for transactions between a customer and a business.
• Online electronic commerce payment Token-based payment systems
• Electronic cash/dig cash(www.digicash.com)
• Electronic cheque / netcheques (www.netcheque.com)

Electronic Data Interchange

Business is always cost-conscious and electronic commerce environment comes
as a boon in terms of reducing cost of transactions and increasing speed of transactions.
Hence businesses have been engaging in a form of electronic data interchange (EDI),
since 1960’s.EDIis a set of standards and services that enable computer systems to
exchange standardized relating to transactions across dedicated and private
communications lines without human handling. Documents representing purchase orders,
invoices, and so on are encoded and transmitted between computers belonging to
business. Businesses that engage in EDI with each other are called Trading Partners.
Quiet early business realized that many of the documents they exchange with
others, such as invoice, purchase orders, bills of lading, and many more included same set
of information for almost every transaction. Business also realized that it was spending a
great deal of time and money entering these data into computers, printing paper forms,
and re-entering the same data on the other side of transaction. Even though purchase
order, invoice, and the bill of lading for each transaction contained much the same
information, such as item names, quantities, descriptions, and so on-each paper form had
its own unique format for presenting that information. By creating a set of standard for
transmitting that information electronically, businesses were able to reduce errors, avoid
printing and mailing costs, and eliminate the need to repeated data entry.
EDI is the exchange of well-defined business transactions in a computer process
able format. EDI provides a collection of standard message format to exchange data
between companies computer via any electronic media. United Nations/electronic data

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interchange for Administration, commerce, and transport (UN/EDIFACT) standard for
messages was developed under the United Nations. EDI covers such regular business
facets as enquiries, planning, purchasing, acknowledgements, pricing, order status,
scheduling, test results, shipping and receiving, invoices, payments and financial and
business reporting. Additional standards cover industry specific requirements like in
Financial EDI or FEDI that is used by banking industry.
One serious drawback of EDI is the high upfront cost of implementation. For long
time, using EDI infrastructure means establishing direct networks connections using
dedicated telephone lines to all trading partners. Another way for small players is to
subscribe to service provider called VAN (Value-Added Network). A value added
network is third party that offers connection and EDI transaction forwarding services to
buyers and sellers engaged in EDI.

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 POTENTIAL IMPACT OF BLUETOOTH ON E-
COMMERCE
As the number of computing and telecommunication devices used at home and in
business have increased, so has the complexity and difficulty of physical wiring. The
usual solution is to connect the device with a cable to make file transfer and
synchronization possible. The cable solution is often complicated, since it may require a
specific cable to the devices being connected as well as configuration software. Another
solution, infrared, eliminates cable but requires line-of sight. To solve some of these
problems, various other technologies have been created to provide the means of short-
ranged wireless (SRW) connection via embedded transceivers. One of the technologies
being developed is known as Bluetooth.
In essence, Bluetooth is a data communication specification designed to enable
wireless communication between small, mobile services. It allows transmission at 723
Kbits/second in the 2.4 GHz band over ranges of 10 to 100 meters (with graceful
degradation).

The potential Impact:

Bluetooth heralds a totally new era of wireless short range interactivity. The
promise of widespread adoption of the technology affords a considerable transformation
of existing channels for electronic commerce. In essence, a world without wired data
communications is likely to offer new models for flexibe interaction between user
devices.

Bluetooth-facilitated e-commerce:
The functional characteristics of Bluetooth feed directly into the ability of the
technology to transform existing forms of e-commerce and to develop new ones. E-
commerce without wires could look very different to the situation prevailing today:
Before Bluetooth and penetration of the mobile Internet, as we know it today; and, Where
Bluetooth becomes a key mode of SRW data exchange and mobile data.
In the current situation prior to widespread Bluetooth and mobile device use,
users are usually obliged to access networks through wired connections on their
computers at work, at home or though ad hoc facilities (e.g. a cyber café). The networks
used to conduct electronic commerce typically include the Internet, intranets and
extranets, with possible use of, for example, local area networks (LAN’s), wide area
networks (WAN’ s), value added networks (VAN’ s), or virtual private networks (VPN’
s). Through the network, services may be accessed from remote networked computers
and devices, such as those on the Internet, or from more local computers and devices,
such as those within an organizations LAN. The basic e-commerce activities offered
include those of sharing information, communicating, trading, and distributing products
between consumers and organizations and even between consumers. In the situation
where Bluetooth-enabled mobile devices become pervasive, a very different model of e-
commerce is likely to emerge.

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 The functional characteristics of Bluetooth afford a new mode of access without
wires. The user with a mobile Bluetooth device can access any other compatible devices
on Bluetooth networks within range. These networks can appear in many different
locations than has traditionally been the case for ad hoc computer networking, including
homes, airports, aircrafts, motor vehicles, ATM’ s. hotels, shopping malls and other
public ‘ infestations’ . Bluetooth network can even be created ad hoc by devices being
brought together in a new location, e.g. at a business conference.
Moreover, each separate Bluetooth network can be linked to a wired network,
such as the Internet, opening the door to full e-commerce capability via the short range
device, expanding the potential for informing, communicating, trading, and product and
service distribution by connection to other computers or devices, whether connected via
Bluetooth or not. In a situation where the businessperson is in a car, an in-vehicle
network based on Bluetooth could allow connectivity of personal devices; using a mobile
phone as the WAN connection, the employee could connect to the Internet or corporate
intranet to receive information such as e-mail (Miller 2000). Voice recognition and
Bluetooth headsets could automate this even further.
Microsoft and five Japanese companies recently agreed to develop software for
embedded wireless in the automobile industry, enabling in-car computers capable of
hands-free communication access to the Internet, and instant summoning of emergency
services or roadside assistance. Within an aircraft, subway or rail train device
connectivity provides similar benefits. Plane manufacturers such as Boeing have already
invested large sums in developing sophisticated in-flight entertainment and wok systems.
Here, connectivity can be provided for gaming, collaboration with fellow passengers, e-
mail and web access alternatively, offline data transfer can be used; every time the user
passes near an ‘ infestation’ , such as in the airport, selected information is transferred.
Unlike traditional e-commerce, which has tended to focus on remote services, Bluetooth
e-commerce (b-commerce) further enables interaction close physical proximity. It thus
has a much greater potential impact on the day-to-day physical activity of the roaming
user than traditional e-commerce.

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 SECURE ACCESS TO E-COMMERCE NETWORKS
Sony has recently developed a Bluetooth compliant ‘wearable key’ replacing
traditional methods such as biometrics or card access. This allows people to identify
themselves to computers and mobile devices so that they can access e-commerce
networks from a terminal or a handset: a special wristband transmits user’s identification
numbers and passwords to the network system.

B-commerce telemetry:
In the utilities industry Bluetooth meters installed at customers homes connected
to a wired ‘hub’ have the potential to be read remotely. This saves considerable cost and
information can be used to create more advanced differential pricing structures, based on
the fuller understanding of the demand for resources and cost of supply.

B-commerce in after-sales servicing:

An interesting area where Bluetooth could play a role is in the service aspect of
the e-commerce lifecycle, e.g. field testing and reporting. As the cost of Bluetooth
devices false and performance increases, so impetus is provided for embedding chips in
products such as cars, refrigerators, washing machines, vacuum cleaners, industrial
equipments and many other devices and appliances.

B-commerce alerts:
With widespread Bluetooth access, the roaming phone user can be provided with
information, alerts or even advertisement based on the location. An alert could inform the
user of a security threat in a certain part of the city, or information could be given on an
exhibition outside an art gallery.

Electronic baggage tracking:

This enables the location of luggage to be tracked at any stage of a journey, from start to
finish. The commercial solution allows paying customers to electronically check their ‘
tagged’ bags with airline by using a special scanner and, upon arrival after a flight, to
receive messages about the whereabouts of those bags via PDA or mobile phone.

E-SERVICE
The Internet customer service, also called e-service, works by shifting repetitive
customer inquiries from a live incoming question allows CRS’s to quickly handle the
remaining few needing live assistance. E-service includes taking orders transparently,
putting them into fulfillment, replacing them from inventory, moving them through
shipping, and touches the accounts receivable lines and the financial lines. Since repeat
visitors are the key to any website’s success, it is crucial to keep them from going astray.
This means that the website needs to act like the best customer service employee-
responsive, knowledgeable, accurate and ready to help any time of the day or night.

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Good, up-to-date information needs to be easily accessible. This empowers customers to
help themselves; that is, find immediate answers to their questions on the website.

Implementing e-security through Biometric Technology:

A biometric system is a pattern recognition system that establishes the authenticity of
a specific physiological or behavioral characteristics possessed by a user. Logically, a
biometric system can be divided into two stages:

• Enrolment module: - This is responsible for training the system to identify a given
person.
• Identification module:-During this stage, the biometric sensor captures the
characteristics of the person to be identified and converts it into the same digital
format as the template. Template is the mathematical representation of biometric
data. The resulting template is fed to the feature matcher, which compares it
against the stored template to determine whether the two templates match.
Biometric encryption is a process of using a characteristic of the body as a method to
code data. Encryption is mathematical process that helps disguise the information
contained in the message that is either transmitted or stored in a database. The following
are the physiological techniques being used:

Fingerprint Recognition: - As the first step in the authentication process, a

Fingerprint impression is acquired, typically using an inkless scanner. The digital image
of the fingerprint includes several unique features in terms of ridge bifurcations and ridge
endings, collectively referred to as minutiae. The next step is to locate these features in
the fingerprint image using an automatic feature extraction algorithm. Each feature is
commonly represented by its location and the ridge direction at that location. However,
due to sensor noise and other variability in the imaging process, the feature extraction
stage may miss some minutiae and may generate spurious minutiae. Furthermore, due to
elasticity of the human skin, the relationship between minutiae may be randomly
distorted from one impression to the next. In the final stage, the matcher subsystem
attempts to arrive at a degree of similarity between the two sets of features after
compensating for the rotation, translation and scale. Fingerprint verification is a good
choice for in-house systems.

Face Recognition
Face recognition analysis facial characteristics. An image of a person’s face is
stored digitally when the person opens an account. At each transaction, a tiny camera
feeds a live image of the person to the database, which compares the image to the one
stored in and to the account figure. The most famous early e.g. of a face recognition
system is that of Keuvo Kohonen of the Helsinki University of Technology.

Optical Recognition
The two common types of optical biometrics are the retina and iris. Retina and iris
biometric devices are more accurate than fingerprint and hand biometric devices because

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both the retina and iris have more characteristics to identify and match than those found
on the hand. A retina-based biometric involves analyzing the layer of blood vessels
situated at the back of the eye. It involves using a low intensity light source through an
optical coupler to scan the unique pattern of the retina. An iris-based scan on the other
hand involves analyzing features found in the colored ring of tissues that surround the
pupil. The iris code is calculated using the eight circular bands that have been adjusted to
confirm to the iris and pupil boundaries and a 512-byte code is generated. Iris codes
derived from this process are compared with the previously generated iris codes.

Voice Authentication
Voice authentication products create a voice print based on the inflection points of
the speech, emphasizing the highs and lows, specific to the way of talking. Voice
authentication is not based on voice recognition but on voice to print authentication.
Vector quantification is used to classify the audio sequence.

Keystroke Recognition
This concept is based on the current password system and adds an extra
dimension of keystroke dynamics. An intruder must know the correct password as well as
replicate the rate of typing interval between the letters to gain access to the information.

Signature Recognition
Signature verification analyses the way a user signs his name. Signing features
such as speed, velocity and pressure are as important as the finished signature’ s static
shape. Signature recognition operates in a three-dimensional environment where height ,
width and depth of pen stroke are measured.
Its Applications are:

• e-commerce uses
• Covert surveillance
• Driver’s license
• Immigration
• Airport security
• Welfare

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 E-COMMERCE – SECURITY
• Support for SSL, including most "shared" SSL certificates.
• Encryption of Passwords and Credit Card numbers in the database.
• Robust user input validations throughout the store to trap possible SQL string
hacks.
• Critical information (such as the RC4 key) is kept separate from the database.
• Assign additional login to the admin for staff that can't modify the store’s
configuration settings.

Merits:
• Increased customer satisfaction-customer’s get answers faster.
• Reduced costs-the cost of delivery self-help via a knowledge base on the Internet
is significantly less than a human answering an e-mail or phone.
• Increased revenue –the right information at the right time means more orders.
• Reduce shopping cart abandonment.
• Retain more customers.
• We can base campaigns on facts rather than on opinions.

Demerits:
• Security: the security still remains a major fact that needs a lot of attention. The
data not secure totally.
• Data mismanagement.

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 CONCLUSION
E-commerce is a technology-induced market. E-commerce technologies enable
enterprises to exchange information instantaneously, eliminate paper work and advertise
their products and service range to global market. E-commerce covers inter and inter
company Operations. E-commerce is growing at a very fast rate with new technologies
like Bluetooth, Biometrics. E-commerce has reduced the amount of information to be
transferred as well as time and money considerably.
E-commerce has played a vital role in the field of business and customer
satisfaction but still needs a secure environment. Besides, the demerits people still prefer
e-commerce. Thus, at this point of time we would like to say that e-commerce requires an
overall improvement in terms of security.

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 REFERENCES
 Wilson
 Swapna Veldanda
 Chakravarty Borah
 S. S. Thatte
 Stuart J. Barnes

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