Bcom-1st semester E Commerce
E –banking
Electronic banking, also known as electronic funds transfer (EFT), is simply the use of electronic
means to transfer funds directly from one account to another, rather than by cheque or cash. You
can use electronic funds transfer to:
have your paycheck deposited directly into your bank or credit union checking account.
withdraw money from your checking account from an ATM machine with a personal
identification number (PIN), at your convenience, day or night.
instruct your bank or credit union to automatically pay certain monthly bills from your
account, such as your auto loan or your mortgage payment.
have the bank or credit union transfer funds each month from your checking account to
your mutual fund account.
have your government social security benefits check or your tax refund deposited directly
into your checking account.
buy groceries, gasoline and other purchases at the point-of-sale, using a check card rather
than cash, credit or a personal check.
use a smart card with a prepaid amount of money embedded in it for use instead of cash
at a pay phone, expressway road toll, or on college campuses at the library's photocopy
machine or bookstores.
use your computer and personal finance software to coordinate your total personal
financial management process, integrating data and activities related to your income,
spending, saving, investing, recordkeeping, bill-paying and taxes, along with basic
financial analysis and decision making.
Automated Teller Machines (ATMs) also called 24-hour tellers are electronic terminals
which give consumers the opportunity to bank at almost any time. To withdraw cash,
make deposits or transfer funds between accounts, a consumer needs an ATM card and a
personal identification number. Some ATMs charge a usage fee for this service, with a
higher fee for consumers who do not have an account at their institution. If a fee is
charged, it must be revealed on the terminal screen or on a sign next to the screen.
Direct Deposit and Withdrawal Services allow consumers to authorize specific
deposits, such as paychecks or social security checks, to their accounts on a regular basis.
It is also possible to authorize the bank, for a fee, to withdraw funds from your account to
pay your recurring bills, such as mortgage payment, installment loan payments, insurance
premiums and utility bills.
Pay by Phone Systems let consumers phone their financial institutions with instructions
to pay certain bills or to transfer funds between accounts.
Prepared By:Ms Deepika Dhamija
Bcom-1st semester E Commerce
Point-of-Sale Transfer Terminals allow consumers to pay for retail purchase with a
check card, a new name for debit card. This card looks like a credit card but with a
significant difference the money for the purchase is transferred immediately from your
account to the store's account. You no longer have the benefit of the credit card "float",
that is the time between the purchase transaction and when you pay the credit card bill.
With immediate transfer of funds at the point-of-sale, it is easy to overdraw your
checking account and incur additional charges unless you keep careful watch on
spending.
Personal Computer Banking Services offer consumers the convenience of conducting
many banking transactions electronically using a personal computer. Consumers can
view their account balances, request transfers between accounts and pay bills
electronically from home.
E-Trading
Prepared By:Ms Deepika Dhamija
Bcom-1st semester E Commerce
E-Auction
Definition - What does Online Auction mean?
An online auction is a service in which auction users or participants sell or bid for products or
services via the Internet. Virtual auctions facilitate online activities between buyers and sellers in
different locations or geographical areas. Various auction sites provide users with platforms
powered by different types of auction software.
Prepared By:Ms Deepika Dhamija
Bcom-1st semester E Commerce
An online auction is also known as a virtual auction.
Online auctions mirror traditional auctions and usually involve multiple bidder participation. In
both scenarios, bidders and sellers buy and sell tangible and intangible products and services.
Starting bids are low but increase at steady rates to meet market demand and item popularity.
The time span of an online auction ranges from one to 10 days for items offered 24/7 worldwide.
Online auctions are a widely accepted business model for the following reasons:
No fixed time constraint
Flexible time limits
No geographical limitations
Offers highly intensive social interactions
Includes a large numbers of sellers and bidders, which encourages a high-volume online
business
Online auctions include business to business (B2B), business to consumer (B2C), and consumer
to consumer (C2C) auctions. Ebay is the best example of an auction site that uses all three
methodologies.
The online auction business model continues to evolve according to market needs. Examples
include eBay, WebStore, OnlineAuction and Overstock. Ebay and other providers encourage
legitimate bidding activity through bidder block lists. EBay also offers Dutch auctions for large
inventories, where auction bidders pay according to an item's highest sale price.
Like other online services and activities, online auctions can attract stolen or pirated products.
E-distribution
E-Distribution is a distribution concept which refers to electronic buying and selling of goods
and services over a public 1) network without the use of physical media, normally by
downloading from the internet straight2) to a consumer's device.
For E-Distribution it is possible to start from a wider and a narrower definition. The first refers to
the online ordering in conjunction with the physical delivery of the goods. In the narrower
definition, the products ordered online via the Internet that is delivered in digital form. In this
case we speak of digital distribution. The term E-Distribution is typically applied to freestanding
products; downloadable add-ons for other products are more commonly known as downloadable
content. An online service for distribution of application software is usually called application
store or app store.
The Content of E-Distribution can be books, music, software, games or multimedia content, also.
The technological advance of recent years makes it more significant strengths of the Internet for
the distribution digital products. The digital distribution offers the possibility of a global market
to operate, continuous availability of the products to guarantee the first time and creates a direct
Prepared By:Ms Deepika Dhamija
Bcom-1st semester E Commerce
access to consumers.3) E-Distribution is emerging as the most important distribution tool in
recent times. In fact, it has the potential of altering the very way business is conducted
Just in time delivery
Just in time (JIT) is an inventory management method whereby materials, goods, and labor are
scheduled to arrive or be replenished exactly when needed in the production process.
How it works/Example:
JIT works best for companies using repetitive manufacturing functions; hospitals, small
companies, and other entities may not find JIT feasible. For example, let's assume that Company
XYZ is a small car manufacturer. On Tuesdays the company assembles the car chassis, and the
workers put the windshield in on Thursdays. With a just in time inventorymethod, XYZ might
have parts delivered exactly one day before they need them. The chassis would be delivered on
Monday and the windshield on Wednesdays.
The goal of JIT is to decrease costs by keeping only enough inventory on hand to meet
immediate production needs. Thus, in order to effectively employ JIT a company must
accurately forecast demand. JIT's encouragement of planning, simplification, and standardization
is aimed at reducing carrying costs by eliminating the expense of housing idle materials and
lower the costs of defective products, wasted space, extra equipment, overtime, warranty repair,
and scrap. JIT also speeds the production process, thereby eliminating long lead times and
improving delivery performance.
Companies that utilize JIT often only have a few suppliers. Due to the importance of receiving
inventory when needed, a small number of suppliers make it easy to coordinate deliveries.
Additionally, the large orders placed by JIT companies encourage suppliers to be committed to
meeting delivery and quality requirements and offer bulk discounts, but long-term contracts may
counter this benefit.
Prepared By:Ms Deepika Dhamija
