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Guidelines & Laws Governing E-Commerce

Guidelines聽 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聽聽 聽guarantee聽聽聽聽聽聽聽 /聽聽聽聽 warranty:聽聽 聽Proper聽聽 聽display of聽聽 聽product聽聽 聽guarantee聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 / warranty online as well as documents sent along with the products.
  • Shipping: To ensure products are properly packed and timely shipped. Like聽 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.

路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聽 goods聽 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-聽 compliances. The important issues dealt in by the law include:
  • Legality of products / services being offered online.
  • Data Protection
  • Protecting Your Customer鈥檚 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聽 be followed聽 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聽 SBI聽 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.

路Advantages :

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

鈥isadvantages :

  • 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.

鈥-tier Architecture Three Tier Architecture

Three-tier is a client鈥搒erver 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:

鈥lient (presentation) tier

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

鈥pplication Server tier

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

鈥ata tier

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


  • Separation of User interface and application: Through this聽 separation聽 more聽 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聽 is聽 easy聽 in聽 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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