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Components for E-Commerce

  • User
  • E-commerce vendors
  • Technology Infrastructure
  • Internet/ Network
  • Web Portal
  • Payment Gateway



I.            User: This may be individual / organization or anybody using the e-commerce platforms.


  1. E-commerce Vendors: This is the organization/ entity providing the user, goods/ services. E.g.:

E-commerce Vendors further needs to ensure following for better, effective and efficient transaction.

  • Suppliers and Supply Chain Management: For effectiveness, they need to ensure that –
    • Enoughand the right goods suppliers.
    • Suppliers should be financially and operational safe.
    • Suppliers are able toprovide real-time stock inventory.
    • Order to delivery time is short.
  • Warehouse operations: From this place online retailers pick products, pack them and prepare those products to be delivered. Many e-commerce companies are investing huge amounts of money in automating the warehouses.
  • Shipping and returns: Shipping is supplementary and complementary to warehouse operations. Fast and safe returns is also very important for e- commerce vendors.
  • E-Commerce catalogue and product display: Proper displayincluding product details, technical specifications, is necessary for better sales.

Marketing and loyalty programs: Loyalty programs  is  to  establish a long- term relationship with customer.E.g. In airline industry, customer can get good discount/ free tickets based on loyalty points accumulated.

  • Showroom and offline purchase: Few e-commerce vendors over period have realized that their products can be sold fast if customers are able to feel / touch / see those products. These vendors have opened outlets for customer experience of their products.
  • Different Ordering Methods: These are the way  customer  can  place his/her order, say Cash on Delivery is today most preferred method.
  • Guarantees: The product/service guarantee associated  with product/service being sold e.g. Money back guarantees.
  • Privacy Policy: Customers are very concerned about the information that they are sharing. E - commerce vendors need to clearly explain them what the vendor plan to do with the information they have collected.
  • Security: Vendor website needs to state that online data used to transact is safe that vendors is using appropriate security including security systems  like SSL (Secure Socket Layer). This guarantees that the data provided by customer will not fall into the hand of a hacker.


  1. Technology Infrastructure: This includes Server computers apps etc.

Computers, Servers and Database

These are the backbone for the success of the venture. They store the data/program used to run the whole operation of the organization.


Mobile Apps

  • Smartphone’s and tablets have become a dominant form of computing,  with  many more smartphones being sold than personal computers.
  • Developing mobile app is expensive,and it will have to be developed  on  two  major platform i.e. iPhone and Android. Another option is to  create a  website  that is mobile-friendly.

Digital Libraries: Digital libraries can vary immensely in size and scope, and can be maintained by individuals, organizations, or affiliated with established physical library buildings or institutions, or with academic institutions. The digital content may be stored locally, or accessed remotely via computer networks.

Data Interchange: Data Interchange is an electronic communication of data. For ensuring the correctness of data interchange between multiple players in e- commerce, business specific  protocolsare being  used.  There  are defined standards  to ensure seamless communication in e-commerce.


  1. Internet / Network: This is the key to success of e-commerce transactions.
  • Internet connectivity is important for any e-commerce  transaction  to  go through.
  • The faster net connectivityleads to better e-commerce. Many mobile companies  in India have launched 4G services.
  • The success of e-commerce trade depends upon the internet capability of organization. The latest communication technologies like 4G, 5G have already made in-roads in India.


  1. Web portal: This shall provide the interface through which an individual/organization shall perform e-commerce transactions.

Web Portal is the application through which user interacts with  the  e- commerce vendor. The front end through which user interacts for an e- commerce transaction. These web portals can be accessed through desktops/ laptops/PDA/hand- held computing devices/ mobiles and now through  smart TVs.


  1. Payment Gateway: The payment mode through which customers shall make payments. Payment gateway represents the way e-commerce / m-commerce vendors collects their payments. Examples are :

Credit / Debit Card Payments, Online bank payments, Vendors own payment wallet, Third Party Payment wallets, like SBI BUDDY or PAYTM, Cash on Delivery (COD) and Unified Payments Interface (UPI).

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