Online Art Gallery

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E Commerce
Online Art Gallery
What is E Commerce

Electronic Commerce or e-commerce refers to wide range of online business activities for products and services. It also pertains to “any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact”

E Commerce is usually associated with buying and selling over the internet, or conducting any transaction involving the transfer of owner ships or rights to use goods or services through a computer mediated network. Though popular this definition is not comprehensive enough to capture recent developments in this new and revolutionary business phenomenon. A more complete definition is: E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations and individuals.

Is e-commerce the same as e-business?

While some use e-commerce and e-business interchangeably, they are distinct concepts. In e-commerce, information and communications technology (ICT) is used in inter-business or inter-organizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals).

In e-business, on the other hand, ICT is used to enhance one's business. It includes any process that a business organization (either a for-profit, governmental or non-profit entity) conducts over a computer-mediated network. A more comprehensive definition of e-business is: “The transformation of an organization's processes to deliver additional customer value through the application of technologies, philosophies and computing paradigm of the new economy.”

Three primary processes are enhanced in e-business:

1. Production processes, which include procurement, ordering and replenishment of stocks; processing of payments; electronic links with suppliers; and production control processes, among others;

2. Customer-focused processes, which include promotional and marketing efforts, selling over the Internet, processing of customers' purchase orders and payments, and customer support, among others; and

3. Internal management processes, which include employee services, training, internal information-sharing, video-conferencing, and recruiting. Electronic applications enhance information flow between production and sales forces to improve sales force productivity. Workgroup communications and electronic publishing of internal business information are likewise made more efficient.

Is the Internet economy synonymous with e-commerce and e-business?

The Internet economy is a broader concept than e-commerce and e-business. It includes e-commerce and e-business. The Internet economy pertains to all economic activities using electronic networks as a medium for commerce or those activities involved in both building the networks linked to the Internet and the purchase of application services7 such as the provision of enabling hardware and software and network equipment for Web-based/ online retail and shopping malls (or “e-malls”). It is made up of three major segments: physical (ICT) infrastructure, business infrastructure, and commerce.

What are the different types of e-commerce?

The major different types of e-commerce are: business-to-business (B2B); business-to-consumer (B2C); business-to-government (B2G); consumer-to-consumer (C2C); and mobile commerce (m-commerce).

What is B2B e-commerce?

B2B e-commerce is simply defined as e-commerce between companies. This is the type of e-commerce that deals with relationships between and among businesses. About 80% of e-commerce is of this type, and most experts predict that B2B ecommerce will continue to grow faster than the B2C segment.

The B2B market has two primary components: e-frastructure and e-markets. Efrastructure is the architecture of B2B, primarily consisting of the following:

* logistics - transportation, warehousing and distribution (e.g., Procter and Gamble);

* application service providers - deployment, hosting and management of packaged software from a central facility (e.g., Oracle and Linkshare);

* outsourcing of functions in the process of e-commerce, such as Web-hosting, security and customer care solutions (e.g., outsourcing providers such as eShare, NetSales, iXL Enterprises and Universal Access);

* auction solutions software for the operation and maintenance of real-time auctions in the Internet (e.g., Moai Technologies and OpenSite Technologies);

* content management software for the facilitation of Web site content management and delivery (e.g., Interwoven and ProcureNet); and

* Web-based commerce enablers (e.g., Commerce One, a browser-based, XML enabled purchasing automation software).

E-markets are simply defined as Web sites where buyers and sellers interact with each other and conduct transactions.

The more common B2B examples and best practice models are IBM, Hewlett Packard (HP), Cisco and Dell. Cisco, for instance, receives over 90% of its product orders over the Internet.

Most B2B applications are in the areas of supplier management (especially purchase order processing), inventory management (i.e., managing order-ship-bill cycles), distribution management (especially in the transmission of shipping documents), channel management (i.e., information dissemination on changes in operational conditions), and payment management (e.g., electronic payment systems or EPS). eMarketer projects an increase in the share of B2B e-commerce in total global ecommerce from 79.2% in 2000 to 87% in 2004 and a consequent decrease in the share of B2C e-commerce from 20.8% in 2000 to only 13% in 2004 [below figure].

Likewise B2B growth is way ahead of B2C growth in the Asia-Pacific region. According to a 2001 eMarketer estimate, B2B revenues in the region are expected to exceed $300 billion by 2004.

Below Table shows the projected size of B2B e-commerce by region for the years 2000-2004.

Projected B2B E-Commerce by Region, 2000-2004 ($billions):






As a % of world wide B2B Commerce 2004

North America







Asia/Pacific Rim














Latin America







Africa/Middle East














Benefits of B2B E-Commerce in Developing Markets:

The impact of B2B markets on the economy of developing countries is evident in the following:

Transaction costs. There are three cost areas that are significantly reduced through the conduct of B2B e-commerce. First is the reduction of search costs, as buyers need not go through multiple intermediaries to search for information about suppliers, products and prices as in a traditional supply chain. In terms of effort, time and money spent, the Internet is a more efficient information channel than its traditional counterpart. In B2B markets, buyers and sellers are gathered together into a single online trading community, reducing search costs even further. Second is the reduction in the costs of processing transactions (e.g. invoices, purchase orders and payment schemes), as B2B allows for the automation of transaction processes and therefore, the quick implementation of the same compared to other channels (such as the telephone and fax). Efficiency in trading processes and transactions is also enhanced through the B2B e-market's ability to process sales through online auctions. Third, online processing improves inventory management and logistics.


Through B2B e-markets, suppliers are able to interact and transact directly with buyers, thereby eliminating intermediaries and distributors. However, new forms of intermediaries are emerging. For instance, e-markets themselves can be considered as intermediaries because they come between suppliers and customers in the supply chain.

Transparency in pricing. Among the more evident benefits of e-markets is the increase in price transparency. The gathering of a large number of buyers and sellers in a single e-market reveals market price information and transaction processing to participants. The Internet allows for the publication of information on a single purchase or transaction, making the information readily accessible and available to all members of the e-market. Increased price transparency has the effect of pulling down price differentials in the market. In this context, buyers are provided much more time to compare prices and make better buying decisions. Moreover, B2B e-markets expand borders for dynamic and negotiated pricing wherein multiple buyers and sellers collectively participate in price-setting and two-way auctions. In such environments, prices can be set through automatic matching of bids and offers. In the emarket place, the requirements of both buyers and sellers are thus aggregated to reach competitive prices, which are lower than those resulting from individual actions.

Economies of scale and network effects. The rapid growth of B2B e-markets creates traditional supply-side cost-based economies of scale. Furthermore, the bringing together of a significant number of buyers and sellers provides the demand-side economies of scale or network effects. Each additional incremental participant in the e-market creates value for all participants in the demand side. More participants form a critical mass, which is key in attracting more users to an e-market.

What is B2C e-commerce?

Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods (i.e., tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books); and, for information goods, receiving products over an electronic network.

It is the second largest and the earliest form of e-commerce. Its origins can be traced to online retailing (or e-tailing).13 Thus, the more common B2C business models are the online retailing companies such as,,, Barnes and Noble and ToysRus. Other B2C examples involving information goods are E-Trade and Travelocity.

The more common applications of this type of e-commerce are in the areas of purchasing products and information, and personal finance management, which pertains to the management of personal investments and finances with the use of online banking tools (e.g., Quicken).

eMarketer estimates that worldwide B2C e-commerce revenues will increase from US$59.7 billion in 2000 to US$428.1 billion by 2004. Online retailing transactions make up a significant share of this market. eMarketer also estimates that in the Asia-Pacific region, B2C revenues, while registering a modest figure compared to B2B, nonetheless went up to $8.2 billion by the end of 2001, with that figure doubling at the end of 2002-at total worldwide B2C sales below 10%.

B2C e-commerce reduces transactions costs (particularly search costs) by increasing consumer access to information and allowing consumers to find the most competitive price for a product or service. B2C e-commerce also reduces market entry barriers since the cost of putting up and maintaining a Web site is much cheaper than installing a “brick-and-mortar” structure for a firm. In the case of information goods, B2C e-commerce is even more attractive because it saves firms from factoring in the additional cost of a physical distribution network. Moreover, for countries with a growing and robust Internet population, delivering information goods becomes increasingly feasible.

What is B2G e-commerce?

Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. This kind of e-commerce has two features: first, the public sector assumes a pilot/leading role in establishing e-commerce; and second, it is assumed that the public sector has the greatest need for making its procurement system more effective.

Web-based purchasing policies increase the transparency of the procurement process (and reduces the risk of irregularities). To date, however, the size of the B2G ecommerce market as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped.

What is C2C e-commerce?

Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. This type of e-commerce is characterized by the growth of electronic marketplaces and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers.

It perhaps has the greatest potential for developing new markets. This type of e-commerce comes in at least three forms:

* auctions facilitated at a portal, such as eBay, which allows online real-time bidding on items being sold in the Web;

* peer-to-peer systems, such as the Napster model (a protocol for sharing files between users used by chat forums similar to IRC) and other file exchange and later money exchange models; and

* classified ads at portal sites such as Excite Classifieds and eWanted (an interactive, online marketplace where buyers and sellers can negotiate and which features “Buyer Leads & Want Ads”).

Consumer-to-business (C2B) transactions involve reverse auctions, which empower the consumer to drive transactions. A concrete example of this when competing airlines gives a traveler best travel and ticket offers in response to the traveler's post that she wants to fly from New York to San Francisco. There is little information on the relative size of global C2C e-commerce. However, C2C figures of popular C2C sites such as eBay and Napster indicate that this market is quite large. These sites produce millions of dollars in sales every day.

What is m-commerce?

M-commerce (mobile commerce) is the buying and selling of goods and services through wireless technology-i.e., handheld devices such as cellular telephones and personal digital assistants (PDAs). Japan is seen as a global leader in m-commerce.

As content delivery over wireless devices becomes faster, more secure, and scalable, some believe that m-commerce will surpass wireline e-commerce as the method of choice for digital commerce transactions. This may well be true for the Asia-Pacific where there are more mobile phone users than there are Internet users.

ü Industries affected by m-commerce include:

ü Financial services, including mobile banking (when customers use their handheld devices to access their accounts and pay their bills), as well as brokerage services (in which stock quotes can be displayed and trading conducted from the same handheld device);

ü Telecommunications, in which service changes, bill payment and account reviews can all be conducted from the same handheld device;

ü Service/retail, as consumers are given the ability to place and pay for orders on-the-fly; and

ü Information services, which include the delivery of entertainment, financial news, sports figures and traffic updates to a single mobile device.

Forrester Research predicts US$3.4 billion sales closed using PDA and cell phones by 2005 (See Below Table).

E Commerce Models:

E-commerce has made it possible for customers to contact a business at any time of the day at the customer's convenience. It makes use of the Internet's communication capabilities through product displays, sales presentations and order processing and delivery. Using a website as the storefront, a business carries out the same interactions and transactions as occur within a physical storefront, minus the face-to-face interaction. Products are selected and placed in shopping carts, then customers purchase their selected items through an order form or payment page. These pages are typically set up through a merchant account provider and provide security encryptions that protect the customer's payment information.

The actual e-commerce transaction is where the sale is made. This is where the customer provides her financial information--credit card information, e-check data and shipping information (if applicable), in exchange for delivery of the product. In the case of electronic products, such as e-books or software applications, product delivery is immediate. The seller has set up some form of automated delivery by which customers are redirected to a download page or sent an email with the download link. With physical products, retail sites typically go through a third party distributor that handles the shipping and delivery process


In actuality, five distinct eCommerce business models form the basic structure for the wide variety of websites today. The five categories are called vanity, billboard, advertising, subscriptions, and storefront sites. While not all drive revenue directly, they all incur costs. In addition, many sites combine several of the five identified business models. Each of the five models has unique characteristics which make it different from the other types. Therefore, it is important to understand their differences.

Vanity: Many web sites are started as vanity sites. These sites are often created by individuals as an outlet of self expression, to share a hobby, promote a cause, or find others with similar interests. These sites are created with no intentions of deriving revenue and no illusions of grandeur. It could be as simple as a one page family site or a complex forum on a specific topic. The costs are borne either by the individual or by some altruistic enterprise such as universities, libraries, communities, associations, and even businesses. Nevertheless, the costs are real of these "free" sites.

Billboard: Billboard sites (also called brochure or information sites) are designed to derive economic benefit through indirect means from either referred sales, reduced cost, or both. Revenue comes from creating awareness of its products or services via the web, with the actual purchase transaction occurring off-line. Just like a billboard on a highway, success is measured on viewership as net citizens "surf" by and are influenced to purchase product. Most corporate sites today put up these electronic brochures to provide information about their products, employment information, or public information. Economic benefit is created through the indirect purchase of goods or services from existing physical outlets and cost savings through the elimination of infrastructure or inefficiency. Finally, some businesses feel this is the best way to avoid channel conflict' a potential pricing disparity between different supply chains.

Advertising: Network television, radio, and many periodicals follow the advertising model. All programming and content is funded by advertising dollars, with consumer viewership measuring value. Agencies conduct sophisticated surveys to measure the value and establish the pricing. For eCommerce, advertising can be in the form of banners, sponsorships, ezine ads, and other promotion methods.

This is a much-ballyhooed but still largely unproven model on the web. While there are a few sites that are entirely supported by advertising dollars, the lack of web-savvy viewership statistics hinder the mass adoption by advertisers. As the knowledge of consumer behavior is further understood, experts will prepare purchase pattern analyses providing advertisers with empirical data to support their promotion campaigns.

Subscriptions: In other media, the subscription models are well established' accepted by subscribers and nurtured by publishers. On the web, subscriptions are not yet widely accepted by consumers. Of those that are accepted, the subscription model caters to sites targeted to particular niches of individuals who have specific needs. These sites are often specialized with expert content and timely information. The subscriptions fund the development and maintenance of the site.

Subscriptions can be paid on a weekly, monthly, or annual basis. Payment through a credit card account is a common payment scheme for subscription sites because of the ability to periodically process the purchase transaction electronically.

Storefront: To some people, a products-offered site is narrowly defined as a "true" eCommerce site. A website that offers products for sale is the electronic version of a catalog. These virtual storefronts are built to describe the offering with pictures and words, offer promotions, provide a "shopping cart," and complete the purchase transaction. Once the product is purchased, the cyber enterprise arranges for product fulfillment including shipping and handling. The fulfillment is sometimes completed by the website enterprise or directly from the manufacturer in a drop shipping arrangement. Some manufacturers are now passing up the intermediary wholesalers and retailers by offering their products directly to consumers. This collapsing of the supply chain is called disintermediation.

Technologies Chosen to develop E-Commerce Online Art Gallery

Technologies used to develop Online Art Gallery:

ü ASP.Net

ASP.NET is a rich programming framework for building web-based applications. It offers outstanding support for both developers and administrators, providing improved ease-of-use, tool support, reliability, scalability, administration and security.

ASP.NET aims for performance benefits over other script-based technologies (including Classic ASP) by compiling the server-side code to one or moreDLLfileson theweb server.[18]This compilation happens automatically the first time a page is requested (which means the developer need not perform a separate compilation step for pages). This feature provides the ease of development offered by scripting languages with the performance benefits of a compiled binary. However, the compilation might cause a noticeable but short delay to the web user when the newly-edited page is first requested from the web server, but won't again unless the page requested is updated further.

The ASPX and other resource files are placed in a virtual host on anInternet Information Servicesserver (or other compatible ASP.NET servers; see Other Implementations, below). The first time a client requests a page, the .NET framework parses and compiles the file(s) into a .NET assembly and sends the response; subsequent requests are served from the DLL files. By default ASP.NET will compile the entire site in batches of 1000 files upon first request. If the compilation delay is causing problems, the batch size or the compilation strategy may be tweaked.

Developers can also choose to pre-compile their code before deployment, eliminating the need for just-in-time compilation in a production environment. This also eliminates the need of having the source code on the web server.

ü XHtml

Extensible Hypertext Markup Language, orXHTML, is a family ofXMLmarkup languagesthat mirror or extend versions of the widely usedHypertext Markup Language(HTML), the language in whichweb pagesare written.

While HTML (prior toHTML5) was defined as an application ofStandard Generalized Markup Language(SGML), a very flexible markup language framework, XHTML is an application ofXML, a more restrictive subset of SGML. Because XHTML documents need to bewell-formed, they can be parsed using standard XML parsers—unlike HTML, which requires a lenient HTML-specificparser.

XHTML 1.0 became aWorld Wide Web Consortium(W3C)Recommendationon January 26, 2000. XHTML 1.1 became a W3C Recommendation on May 31, 2001. XHTML5 is undergoing development as of September 2009, as part of theHTML5specification.

ü JavaScript

JavaScriptis anobject-orientedscripting languageused to enableprogrammaticaccess to objects within both theclient applicationand otherapplications. It is primarily used in the form of client-side JavaScript, implemented as an integrated component of theweb browser, allowing the development of enhanceduser interfacesand dynamicwebsites. JavaScript is adialectof the ECMA Scriptstandard and is characterized as adynamic,weakly typed,prototype-basedlanguage withfirst-class functions. JavaScript was influenced by many languages and was designed to look likeJava, but to be easier for non-programmers to work with.

Marketing Online Art Gallery

Contextual advertisement

Advantages of context ads are:

ü your get targeted traffic;

ü context ads are very flexible: you may focus to the specific group of people. For example, only to those living in United States;

ü one may set up context ads very fast and start getting potential customers at once.

There are also some disadvantages:

ü ads are ads: there is a belief, that people trust to ads less than to links from search engines results page.

ü if you have targeted ads poorly, you will not only get indifferent visitors, but also waste your budget.

ü in a highly competitive niche clicks may cost a fortune.

SEO (search engine optimization)

Search engine optimization “promotes website to search engines”, so it shows up higher in search results. Then mechanism is as described: someone queries a phrase related to your site, they see your site in results and visits it. The traffic you get from search engines is called natural traffic. For highly competitive niches it's harder to promote a website and, hence, it could be more expensive.

SEO techniques have much in common with contextual advertisement. For example, if we sell red cars in Wisconsin only, then showing ad by keyword “car” is waste of money. The same situation with promotion: it's very hard to get to the first ten results (TOP10) by the query “car”, but it's much simpler to get your site shown up in TOP10 by the query “buy red car Wisconsin”.

SEO budgets are often more moderate, that ones for contextual advertisement, but search engine optimization in comparison with contextual advertisement has certain disadvantages. For example, you can't focus on the specific group of people, only on the specific queries. But it's not so important, because you pay for the promotion only regardless of how many visitors were actually driven to our site.
Affiliate programs

Affiliate programs or CPA (cost per action) advertising models are widespread in the Internet. The mechanism is quite simple. Webmasters advertise your site by any legal means and you pay them for actual results: client made a purchase, filled up a form, etc. The popular middleman for affiliate programs in the Internet isCommission Junction.

Payment Gateway

We have chosen PayPal as payment gateway.

The benefits in using paypal for Online Art Gallery:

1. Shopping can be done without sharing financial information

2. PayPal uses latest Anti-Fraud Technology

3. Withdrawing money from Paypal is very easy

4. Sending money with PayPal is free and easy Legislations

The rules & regulations regarding website operation are there to improve trading standards, security & privacy, as well as ensuring accessibility for users with disabilities.

1. The Data Protection Act 1998

The Data Protection Act 1998 establishes a framework of rights and duties which are designed to safeguard personal data.

2. Distance Selling Regulations

3. E-Commerce Regulations

The E-Commerce (EC) Directive came into force in 2002, and lays out some of the regulations an online retailer must adhere to. They state that Online marketing, selling and advertising is subject to UK law, if the business is UK based or established.

Users of internet services have to get clear information about the business, commercial communications, and how to complete a transaction.

4. Distance Selling Regulations

Online businesses should have knowledge of the obligations set out in the Distance Selling Regulations 2000 (SI 2000 No. 2334), on consumer protection in distant contracts.

Online Art Gallery Process Flow

Check out Page.

User can check out the items added to the cart from the above shown page. The check out now page redirects the user to

Payment gateway option.

Here we have given PayPal option. By clicking on the pay pal image it redirects to pay pal web site where the user can pay for the items.