E-Commerce Basics Pure vs Partial e commerce Types of e commerce

1. E-COMMERCE
Dr.K.G.RAJA SABARISH BABU
Assistant Professor
Research Department of Business Administration
Sourashtra College, Madurai

2. E-Commerce-Meaning and Definition
Meaning
• "Ecommerce" or "electronic commerce" means exchange or
trading of goods and services on the internet.
• Ecommerce is a way how people buy and sell things in retail. Some
companies sell products online only, while other sellers use
ecommerce as a part of a broader strategy that includes physical
stores and other distribution channels.
• The transmission of funds and data are done over the internet. E-
commerce relies on technology and digital platforms, including
websites, mobile apps and social media to make buying and selling
possible.

3. Pure vs Partial Electronic Commerce
Pure E-Commerce
• ‘Pure E-Commerce,’ refers to business transactions conducted entirely
online or in a digital environment. It’s everything done online or
digitally for pure e-commerce when all of their items or services are
sold digitally.
• Example- Music and movies may be purchased through iTunes or
other internet retailers, as well as books.
• All three dimensions are digital

4. Contd..
Partial E-Commerce
• Click and mortar is another term for partial e-commerce, which refers
to a mix of online and offline operations in running a firm.
• E-commerce is used in this form of transaction to make offers and
orders of things through electronic means. In order to complete the
transaction, e-wallets or a bank account may be used, and this is
referred to as an electronic transaction.
• Example- Buying a shirt at Wal-Mart Online, or a book from
Amazon.com
• Atleast one dimension ins physical

5. Contd..
Difference based on Degree of Digitization
Dimension Pure e-commerce Partial e-commerce
Product Sold Software, Music Books, Clothes
Delivery Process Product or Service can be
downloaded from the
internet. Business
processes are automated
Delivery is physically done
through courier. Business
process are both manual
and automated
Agent Physical Presence is not
important
Brick and mortar. Some
require physical retail
outlet

6. Driving forces behind e-commerce
The growth of e-commerce is associated with three combined forces
1. Economic Forces
2. Technological Forces
3. Market Forces

7. Economic Forces
• E-commerce enables businesses to interact with suppliers, customers and
with players in the distribution channel at a lower cost.
• The cost of installing and maintaining a website is much cheaper than
owning a physical store. This motivates the growth of e-commerce.
• E-commerce generates greater profits due to less human intervention,
lower overhead cost, few clerical errors and more efficiency.
• The cost of advertising is cheaper and provides access to global market at
low cost. This is something which encourages people engaged in business
to promote their business through electronic medium.
• Increase in competition and the rise in consumer power, ‘globalization
wave’ have forced the business organizations to penetrate into internet
world.

8. Technological Forces
• Technological advances have made business communication faster,
easier, economical and efficient. It has enabled the business to switch
over from the local market to the global market.
• The growing popularity of mobile phones and social media has
created a big role in attracting internet population towards e-
commerce.
• Technological changes have given confidence to consumers to make
electronic payments in settlement of financial obligations.

9. Market Forces
• Business organizations are able to reach international markets by using
electronic medium for enhanced customer support and service.
• E-commerce enables customers to make product comparison, place
orders, track orders and make payments at ease. Due to convenience,
customers prefer to purchase their desired goods or services over internet
in the online marketplace.
• E-commerce also allows the customers to choose and order products
according to their personal and unique specifications. It paves way for mass
customization.
• The growing internet population stimulates business to switch over from
an additional business to e-business.
• Consumers often prefer shopping on the internet due to convenience and
the changes in consumer behavior pulls consumer towards e-commerce.

10. Impact of E-Commerce on Business
Technology
Rapid progress in E-Commerce will force companies to adapt quickly to the new technology and offer them an opportunity to
experiment with new products, services, and processes. New technologies require new organizational approaches
Trading
• The most fundamental economic transaction is the purchasing and selling of products; any changes to this have an
impact on supply chain management. With more people using the internet, there are increasingly more people making
purchases online. No longer are the customers and sellers limited to a physical location. A list of hundreds of goods
may be accessed with only a few clicks.
B2B e-commerce
• Small retail stores or companies that are not engaged in e-commerce have decreased as a result of the consumer’s
reduced need to shop at various retail establishments. The bigger companies may compete in this market, such as
bookstores, furniture stores, and car dealers. With a rise in internet users, B2B e-commerce has also developed in the
online industry.
Logistics Industry
• Since the e-commerce platform incorporates third-party logistics vendors, the increase in e-commerce sales has led to
exponential growth in the logistics industry.
Demand Landscape
• E-commerce regulates the demand landscape. E-commerce and technology are affecting how quickly sales
transactions are completed. There is a global impact of e-commerce on business and the economy. E-commerce has a
global impact on the economy. In the past, it took some time to influence the economies of the two dependent nations,
but now that e-commerce has greatly altered sales patterns, this impact is nearly immediate.
Consumers
• Today’s consumers use Google to research the things they want to buy. Being a great search engine, Google displays
hundreds of items that are suitable for customers’ demands. Customers may compare the pricing of the goods they
wish to buy on several websites before making a selection. Instead of visiting five different businesses to get the pricing,

11. Benefits of E-Commerce to Business
• Low costs
A significant advantage of ecommerce is that launching an online store is much less costly than opening a
physical store. You are not required to furnish your outlet, nor are you required to pay rent or hire
multiple workers.
• Speed & Flexibility
A person or business can easily open an ecommerce store in a matter of days. In contrast, a physical store
requires space, commercial leasing, and sufficient construction and decoration time before opening. In an
e-commerce platform, displays and product ranges can be changed instantly
• Wider Customer Base
Another advantage of e-commerce stores is that they are not geographically limited. Geographical
boundaries become irrelevant when conducting business online via ecommerce stores.
• Customer Data Insights
Another benefit of online selling that one might not have considered is the ease with which
consumer data can be collected, analysed, and acted upon.

12. Contd…
• Scalability
Scaling up or expanding a physical store needs additional floor space and resources, each
with a cost. In comparison, growing an online store is extremely easy, which is one of the
less apparent advantages of e-commerce for businesses.

13. Benefits of E-Commerce to Consumers
• Saves Time and Money
Products offered over the Internet are generally cheaper than those in the shops. So, you
can save your money.
Saving time is one of the major benefits of e-commerce. Customers can order anything
you need online, even groceries to cook. E-shops are open 24/7/365
• Wide Range of Goods
E-commerce allows customers to choose a product or service they want, from any supplier,
anywhere in the world. You have a much wider choice than in brick-and-mortar stores. And
the freedom to browse digital catalogs without any stress or hurry is priceless.
• Get Detailed Information
Everything that you need for making an informed decision is literally there, on the tip of your
finger – reviews from other users, tools comparing websites or prices, product descriptions,
usage videos, etc.

14. Contd…
• Comfort
Customers can buy any product from any e-commerce in the world without having to leave their
workplace or home. E-commerce is convenient for buying goods or services without creating
physical limitations. It requires just a few clicks from the comfort of your home to gain the
merchandise.

15. Disadvantages of E-Commerce
• Potential Security Threats
When you’re doing business online, there’s always the potential for security threats. Poor website security can allow
unauthorized users to gain access to the website and look at sensitive data.
• Competition
There’s a lot of competition in the world of e-commerce because it’s so easy for anybody to create an online store.
• Technical Issues
If the website suddenly crashes or is facing a problem with the payment processor, that downtime could potentially
cost money and customers. What’s even worse is that fixing these IT issues could cost even more.
• Shipping Logistics
With every e-commerce order the company has to ship the products from one place to other.
Shipping costs and dependency on shipping could have negative impact
• Limited Connection with customers
The company wont get a chance to communicate with the customer in person and hence the
connection cannot be made at the personal level to influence the customer.

16. Types of E-commerce
The following are the different types of e-commerce platforms:
• Business-to-Consumer (B2C)
• Business-to-Business (B2B)
• Business to Government(B2G)
• Consumer-to-Consumer (C2C)
• Consumer to Business (C2B)
• Consumer-to-Government (C2G)

17. Business-to-Consumer (B2C)
• B2C e-commerce companies sell directly to the product end-user. Instead of
distributing goods to an intermediary, a B2C company performs transactions with
the consumer that will ultimately use the good.
• This type of business model may be used to sell products (like your local sporting
goods store's website) or services (such as a lawn care mobile app to reserve
landscaping services). This is the most common business model and is likely the
concept most people think about when they hear the term e-commerce.
Business-to-Business (B2B)
• Similar to B2C, an e-commerce business can directly sell goods to a user.
However, instead of being a consumer, that user may be another company. B2B
transactions often entail larger quantities, greater specifications, and longer lead
times. The company placing the order may also have a need to set recurring
goods if the purchase is for recurring manufacturing processes.

18. Contd…
Business-to-Government (B2G)
• Some entities specialize as government contractors providing goods or services to
agencies or administrations. Similar to a B2B relationship, the business produces
items of value and remits those items to an entity.
• B2G e-commerce companies must often meet government requests for proposal
requirements, solicit bids for projects, and meet very specific product or service
criteria. In addition, there may be joint government endeavors to solicit a single
contract through a government-wide acquisition contract.
Consumer-to-Consumer (C2C)
• Established companies are the only entities that can sell things. E-commerce
platforms such as digital marketplaces connect consumers with other consumers
who can list their own products and execute their own sales.
• These C2C platforms may be auction-style listings (i.e. eBay auctions)

19. Contd…
Consumer-to-Business (C2B)
• Modern platforms have allowed consumers to more easily engage with companies and
offer their services, especially related to short-term contracts, gigs, or freelance
opportunities. For example, consider listings on Upwork.
• A consumer may solicit bids or interact with companies that need particular jobs done. In
this way, the e-commerce platform connects businesses with freelancers to enable
consumers greater power to achieve pricing, scheduling, and employment demands.
Consumer-to-Government (C2G)
• Less of a traditional e-commerce relationship, consumers can interact with
administrations, agencies, or governments through C2G partnerships. These partnerships
are often not in the exchange of service but rather, the transaction of obligation.
• For example, uploading your federal tax return to the Internal Revenue Service (IRS)
digital website is an e-commerce transaction regarding an exchange of information.

20. Business to Consumer(B2C)
• Business-to-consumer refers to the process of businesses
selling products and services directly to consumers, with no
middle person.
• B2C typically refers to online retailers who sell products and
services to consumers through the internet.
• Business-to-consumer (B2C) is among the most popular and
widely known sales models. Michael Aldrich first utilized the
idea of B2C in 1979 and used television as the primary medium
to reach out to consumers.

21. B2C Model

22. B2C Model
• In B2C model, a business website is a place where all the transactions take place directly
between a business organization and a consumer
• In the B2C model, a consumer goes to the website, selects a catalog, orders the catalog, and
an email is sent to the business organization. After receiving the order, goods are dispatched
to the customer.
• B2C Steps to Purchase
A consumer −
• determines the requirement.
• searches available items on the website meeting the requirment.
• compares similar items for price, delivery date or any other terms.
• places the order.
• pays the bill.
• receives the delivered item and review/inspect them.
• consults the vendor to get after service support or returns the product if not satisfied with the
delivered product.

23. Factors that influence the consumers to buy
in B2C
• Personal Factors
Personal factors include the individual characteristics, motivations, attitudes, and values of your
customers, as well as their lifestyles, preferences, and needs. These factors affect how they perceive
and respond to your products and services, as well as their level of involvement, loyalty, and
satisfaction.
• Social Factors
Social factors include the influence of other people, such as family, friends, peers, celebrities, or
experts, on your customers' behavior and preferences. These factors affect how they seek, receive,
and trust information, recommendations, and reviews about your products and services, as well as
how they conform to social norms, values, and expectations.

24. Contd…
• Psychological Factors
Psychological factors include the cognitive, emotional, and subconscious processes that shape your
customers' behavior and preferences. These factors affect how they process and interpret information,
make decisions, form attitudes, and express emotions about your products and services, as well as how
they are influenced by biases, heuristics, and triggers.
• Environmental Factors
Environmental factors include the external conditions and stimuli that affect your customers' behavior
and preferences.
• Competitive Factors
Competitive factors include the presence, performance, and positioning of your competitors in the
market, as well as the availability, differentiation, and substitution of your products and services. These
factors affect how your customers compare and contrast your value proposition, features, benefits, and
prices with those of your competitors, as well as how they switch or stay loyal to your brand.

25. Impact of E-Commerce on Traditional Retail
Business

26. Impact of e commerce on traditional business
Increasing Competition:
• Traditional retail businesses face intense competition from various sources, including
online retailers, e-commerce platforms, and big-box stores. These competitors often offer
a wide range of products, competitive pricing, and convenient shopping experiences,
attracting customers away from traditional brick-and-mortar stores.
• For example, A local bookstore faces competition from online retailers like Amazon,
which offers a vast selection of books at competitive prices.
Changing Consumer Behaviour:
• The shift in consumer behaviour towards online shopping and digital experiences has posed a
significant challenge for traditional retail businesses. Today, consumers increasingly prefer the
convenience of shopping from their homes, comparing prices online, and having products
delivered to their doorstep.
• For example, A traditional clothing retailer faces challenges as more customers prefer to browse
and purchase clothes through online platforms.

27. Contd…
Comparing Product Options:
• As compared to traditional business, e-commerce provides customers with a wide range of alternatives
while shopping. It gives the customers an opportunity to check out the merchandise and simultaneously
compare similar products on different websites.
• For example, it is easy to compare clothes and their prices (including discounts) on different websites
like Flipkart, Amazon, Myntra, etc., than to go to a physical marketplace and search for clothes at
different shops.
Changes in Supply Chain
• With the rise in e-commerce, there have been numerous changes in the supply chain. It is because
retailers have had to adapt to the increased demand for efficient and fast shipping. This change in the
supply chain has resulted in new logistics and fulfilment challenges for traditional retailers.
Integration
• E-commerce has given traditional businesses some opportunities. It includes integration between the
online and offline channels. With e-commerce, traditional retailers have successfully developed
omnichannel strategies allowing their customers to shop online and pick up products in-store or to order
the product online, and then return them (if required) at the physical store. Examples of businesses using
omnichannel strategy include Decathlon, H&M, etc.

28. On-line Purchasing Process
• There are many good reasons to shop online. Not only does online shopping allow you
the convenience of shopping for what you need, when you need it, in the comfort of your
own home, but you can also compare prices, find discounts or check reviews
instantaneously. And what you buy can be delivered right to your doorstep.
Step 1 – Finding the right website and product
• The easiest way to search the website is to simply type the shop or the product that one is
looking for into your search bar. One should then get the best-matched results which you
can click through to.
• Alternatively, many search engines also have a handy ‘shopping’ feature that directly link
to online stores selling the product they want. Not only can one compare prices within the
search, they can also sometimes see how customers rate for customer service.

29. Contd…
Step 2: Adding a product to basket(Cart)
• So, one have done the hard work and found the item he is looking for. From here we can
select the quantity, colour or size, then add to the basket. Sometimes, purchasing multiple
items or investing in a subscription can reduce the shipping costs.
Step 3 – Completing your purchase at checkout
• Once the customer has added the item to your basket, then they can proceed to
‘checkout’. Depending on the site one may need to set up an account using their email
address. This is useful for regular purchases, such as groceries, as one can store their
card and address details for a faster checkout next time he buy online. At this point, the
site will guide through to the payment steps.

30. Step 4 – Pay it safe
• When paying at an online shop’s checkout for the first time, the customer has to enter the card
number mentioned in the Debit/ Credit card, card expiry date as well as the CCV (card verification
value), which is usually located on the back of your card and often consists of three digits. One
may also have to enter their mailing address or just the post code, which is an additional way that
the bank can verify it is the right customer making the purchase.
Step 5 – Taking delivery
• Some shops let the customers to book a delivery slot, while others will send an email or a text
when the order has been dispatched. It’s hard for delivery companies to ensure the delivery at a
certain time, but many now provide a window of time or the ability to track where the order is –
which means one can plan their day accordingly. Where the customer can choose a time, always
try to pick a time slot when someone is home to receive the parcel.

31. Best Practices for effective customer service
• E-commerce customer service is served to customers through a structured framework.
The aim is to help shoppers via online platforms. We mean the eCommerce website that
you are running to operate your business by the online platform.
Some best practices for effective customer service:
• Maintain Consistent Customer Service
• Meet customers on their terms
• Develop a Multichannel Strategy
• Deliver Real-time Support with Live Chat
• Leverage Customer Reviews to Boost Your Brand
• Measure, optimize, repeat

32. Contd…
Maintain Consistent Customer Service
• To maintain consistent customer services that surpass the overall customer experience cost of
developing an eCommerce site is an essential subject an eCommerce business needs to focus on
while building an eCommerce site for their targeted customers. When a consumer has an initial
positive engagement with your company, it’s realistic to anticipate the same quality of service in
future interactions.
Meet Customers on Their Terms
• Customers demand a tailored approach that treats them as individuals. Businesses must maintain
constant contact with their clients through customer service. As a result, they will have a deeper
understanding of their clients and will be able to establish a long-term and meaningful
relationship with them.

33. Contd…
Develop a Multichannel Strategy
• More than 85% of customers prefer multi-channels for completing their shopping journey. It is
clear that customers want to peruse business-related communication via multi-channels that
includes:
• eCommerce website,
• Shopping-related search engines (Google Shop, Bing Shopping, Shopzilla, etc.)
• Social networks (Facebook, Twitter, Instagram, Pinterest, and many more)
• Email
• Over Phone
• WhatsApp

34. Contd…
• So, the approach should include a multi-channel communicational approach to serve the
customers. Customers feel comfortable communicating in their preferred channel because they
can multitask under one significant channel.
Deliver Real-time Support with Live Chat
• Real-time communication with a natural person intensifies customers’ buying intentions.
As a result, they are more engaged with you and won’t leave your site to get the service
from others.
Leverage Customer Reviews to Boost Your Brand
• Customer reviews can significantly influence other customers who will buy the products.
Viewing other customers’ comments and reviews, they finalize their buying decision.
Additionally, review improves the customer experience by minimizing the customers’
effort.

35. Contd..
Measure, optimize, repeat
• The company can evaluate their customer service team’s capabilities on each channel and
improvise based on it. Find out the busiest hours of the business when they can assist more
customers. Additionally, always keep the business and customer service options updated with
trending topics.
• In this way, you can improvise your customer service approach and resolve issues flexibly.