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Guidelines & Laws Governing E-Commerce

Guidelines  for E-Commerce

All entity going for e-commerce / m-commerce business needs to create clear policy guidelines for the following:


  • Format of bill
  • The details to be shared in bills.
  • Applicable GST.
  • Product    guarantee        /     warranty:    Proper    display of    product    guarantee                          / warranty online as well as documents sent along with the products.
  • Shipping: To ensure products are properly packed and timely shipped. Like  Shipping time, frequency & packing.


  • Mode of delivery: Like courier / third party had delivery / delivery by own staff.
  • Time of delivery
  • Place of delivery like office / home or through dedicated delivery shops.

·Return Policy:

  • Goods on which return is accepted.
  • The number of days within which returns can be accepted.
  • The process of verifying the authenticity of products received back.
  • The time within which buyer shall be paid his/her amount back for  goods  returned.
  • Payment: Policy guidelines need to be created for the following payment related issues:
  • Mode of payment.
  • For which products, specific payment mode shall be there. Organization restricts cash on delivery for few consumable products.



Information Technology Act, 2000

  • This law governs all internet activities in India. The law is applicable to all online transactions in India, and provides for penalties, prosecution for non-  compliances. The important issues dealt in by the law include:
  • Legality of products / services being offered online.
  • Data Protection
  • Protecting Your Customer’s Privacy Online
  • Online Advertising Compliance
  • Compliance with Information Technology Act, provisions.


Reserve Bank of India, 1932

  • Reserve Bank of India (RBI), from time to time frames guidelines to  be followed  by e-commerce / m-commerce merchants allowing online paymentsthrough


various modes. The example:


merchant needs to comply with these guidelines. For


  • The conversion of all Credit / Debit cards to be made CHIP based.
  • An OTP / PIN for all transactions done on point of sale machines through debit/ credit cards.
  • The compliance with capital adequacy norms for payments wallet like  SBI  BUDDY/ PAYTM etc.




Two Tier Systems

  • A Two Tier system consists of Clients and Server.
  • The database is stored on server and the application resides at client end.


·Advantages :

  • Since processing is shared between the client and server, more userscould interact with system.
  • It is easy to setup and maintain.

•Disadvantages :

  • Performance deteriorates with the increase in the number of users.
  • Since logic resides at client end all the clients has to be updated in case of application logic revision.


•n-tier Architecture Three Tier Architecture

Three-tier is a client–server architecture in which the user interface, functional process logic ("business rules"), and computer data storage developed and maintained as independent modules on different machines.


The Components of 3-Tier Architecture are:

•Client (presentation) tier

This is the topmost level of the application. user interface runs on a client.

•Application Server tier

Business logic runs on application server, i.e. performing detailed processing.

•Data tier

This tier consists of database servers. Database server  contains  the  computer data storage.



  • Separation of User interface and application: Through this  separation  more  clients are able to be served by server.




  • Load Balancing: Capability to transfer work load to different server depending on the load and availability of server.
  • Change Management: To update the program logic, it  is  easy  in  this environment in comparison to update in each and every workstation.



  • It creates an increased need for network traffic management, server load balancing, and fault tolerance.
  • It is more complex.

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