There is no denying the fact that e-commerce has re-entered India and is here to stay. Even the small and medium retailers of the country want to ride the wave and are ready to make a fortune out of the market place concept. It may be now that online shopping has become popular but the concept of e-Commerce was introduced long back in the 20th century.
India first came into interaction with the online E-Commerce via the IRCTC. The government of India experimented this online strategy to make it convenient for its public to book the train tickets. Hence, the government came forward with the IRCTC Online Passenger Reservation System, which for the first time encountered the online ticket booking from anywhere at any time. This was a boon to the common man as now they don’t have to wait for long in line, no issues for wastage of time during unavailability of the trains, no burden on the ticket bookers and many more.
Though online shopping has been present since the 2000 but it gained popularity only with deep discount model of Flipkart. In a way it re-launched online shopping in India. Soon other portals like Amazon, Flipkart, Jabong, etc. started hunting India for their businesses.
It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. It is a market entry strategy where the company may or may not have a physical presence.
Portal- gateways to internet, Offers powerful Web searching tools-effiency and ease, they offer user almost everything they want. They can offer news, sports as well as ability to web search. GOOGLE E tailer- Online version of traditional retailer , like Virtual merchants:online retail store only
B2B-It is defined as buying, selling trading, bartering.btween two or more business. E- distributor-An intermediary that connects manufacturers (suppliers) with buyers by aggregating the catalogs of many suppliers in one place and services directly to individual businesses
Let us now look at the figure with respect to Quicker. When a customer plans to sell his products to other customers on the Web site of Quicker, he first needs to interact with an Quicker site, which in this case acts as a facilitator of the overall transaction. Then, the seller can host his product on www.quicker.com. Any buyer can now browse the site of Quicker to search for the product he interested in.
Let us look at another example of the C2B model. I needs to buy an railway ticket for his journey from Roorkee to delhi. I needs to travel immediately. Therefore, I will search a irctc.com for a ticket. The Web site offers bidding facility to I will who want to buy tickets immediately. On the Web site, i will pay the price and gets the ticket.
Marketplace and space selling is not exactly same. Slight difference is that space selling is a bit place conscious like we can only order items offered for that place only (Zomato and food adda are examples of space selling)
Lets have some examples from our campus.
Unlike conventional ecommerce websites, marketplaces transfer the burden of maintaining inventories, logistics, images, product descriptions, and pricing to the seller.
2- he customer will not forgive you, the marketplace, if the product quality is not up to the mark.
Space selling is actually a concept selling the concept aims at building a lasting relationship of the brand ,the customer and the medium itself. Space selling generally aims to sell products that are region specific. Like Zomato sells space to restaurants to sell food and services.
Flipkart to host products from 50,000 small businesses, artisans
B2B – 100% allowed but in B2C it is not allowed.
e commerce business models
What is E-commerce
E-commerce around us
How E-commerce works
1995: Birth of internet in INDIA
2002: IRCTC teaches India to Book ticket online
2003: Introduction of Low Cost Airline with Air Deccan
2005-06 : Make My Trip ( online flight ticket booking begins)
2007: The Deep Discounted model of Flip kart is launched
2008: Smartphone launched ( Steve Jobs launches I phone 3G)
What is E-Commerce:
If the trade of goods and services takes place on computer with the help of computer
or payment is done electronically/COD, it is called E-Commerce.
It is a smart way of doing business.
Electronic commerce is generally considered to be the sales aspect of e-business.
This is an effective and efficient way of communicating within an organization and one
of the most effective and useful ways of conducting business.
E-commerce requires the careful planning and integration of a number of technology
E-commerce around us :
Travel Booking Hotel Booking site Other sites
Air ticket booking system :
Bus booking site:
Naukari.com (no.1 job site)
Classifications may be according to :
1. On the basis of goods and services
(i) E-travel (services)
(ii) E-tailing (products & goods)
2. Interacting participants
I. B2C (Business to Consumer)
II. B2B ( Business to Business)
III. C2C (Consumer to Consumer)
IV. C2B ( Consumer to Business )
3. Main theme, key processes
4. Customers’ role
B2C E-Business Models
Business-to-consumer (B2C) e-commerce: customers deal
directly with the organization, avoiding any intermediaries
Ex :- amazon.com
Consumer-to-consumer (C2C) e-commerce: participants are individuals,
with one serving as the buyer and the other as the seller
C2C Provide a way for consumers to sell to each other, with the help of a
online market maker. E.g. Quiker.com , eBay.com
Consumer-to-Business (C2B) Model
The C2B model involves a transaction that is conducted between a consumer and a business
organization. In this kind of a transaction, the consumers decide the price of a particular product
rather than the supplier. E.g.- naukari.com
For example, www.monster.com, is a Web site on which a consumer can post his bio-data for the
services he can offer.
On basis of B-plan (for e-tailers)
1. Inventory model
2. Virtual Marketplace(Space selling) model
Company keeps inventory of goods and list them on their website.
Customer will order product and company will provide it from its existing inventory.
Inventory Management techniques are used with data analysis to manage optimum
Example – Roorkee delivers ( instieshop )
They buy all student essentials from local market and sells in IITR campus like
broom , mug, Bedding items and many more through their website.
Virtual Marketplace Model
A virtual marketplace, also called an ecommerce marketplace, allows third party sellers to
sell their wares.
Virtual Marketplace is a type of e-commerce website where product and inventory
information is provided by multiple third parties, whereas transactions are processed by the
These third party sellers could be individual traders, large-scale manufacturers of goods, or
any kind of trader.
There is more than one operational model for marketplaces, but the most common method
involves marketplaces being merely an order booking mechanism.
Marketplaces display the seller's wares, collect orders and payments, forward orders to the
seller, track delivery, and release payment to the seller after deducting a fee.
E.g. – Snapdeal, Quiker, Flipkart, food panda
Advantages of a Marketplace Model
It can sell a large number of SKUs(Stock Keeping Units) without maintaining any
Operational efficiencies improve as some overheads are transferred to the seller.
Being a marketplace provider allows you to focus on developing ecommerce
Disadvantages of a Marketplace Model
To begin with it is tough to differentiate your ecommerce business. In the marketplace model, the
problem becomes still more acute as you are not even the seller of your own goods.
It is much tougher to implement product quality control in a marketplace model, as the seller is
primarily responsible for the products.
It is an idea or invention to help sell or publicize a commodity in the market.
In a website, there is some space which is specially meant to sell or for posting some
advertisements regarding a particular project is called Space Selling.
Space selling-A space is provided to sell product or service of other organizations or business.
It can be done through various mediums.
CASE STUDY (Flipkart )
Started as a book trader (buying books from local market and delivering to desired place).
Flipkart changed it’s business model with increasing demand. And maintained inventory of
W S Retailer came into existence as front end retailing solution to flipkart’s delivery needs and
flipkart became full fleshed inventory model.
Till 2013 Indian government was not clear about it’s FDI policy in retail.
In 2013 Indian government came clear about it’s FDI policy and only allowed FDI in
Marketplace model .
Hence Flipkart was forced to change it’s B-model from Inventory to Marketplace.
Flipkart sold W S retail in 2013 and it became an individual retailer.
Now flipkart is a full fleshed marketplace model hosting 50000 vendors.
Because of this Enforcement directorate sued flipkart with 1400 crore penalty.
Advantages of E-commerce
It can help increase profits; it can increase sales and decrease costs.
It can help organizations do business 7 days a week and 24 hours a day.
It can help organizations have customers all around the globe and not be limited to a
It helps organizations bring higher return on advertisements, if managed properly.
It helps organizations identify new suppliers, partners and customers.
It increases flexibility and ease of shopping for the customer.
It can help in low operational cost.
It can provide personalized product and customer customization.
Shoppers are given a broader range of products to choose from online.
Disadvantages of E-commerce
The buyer cannot touch or feel the product online.
The customer has to wait for delivery of their product.
Perishable goods bought online can get spoiled during delivery.
It is difficult to know when an online site is safe to use
No model is perfect, but company has to follow rules of country in which it is operating to
avoid legal complexities.
A SKU, or Stock Keeping Unit, is a number assigned to a product by a retail
store to identify the price, product options and manufacturer of the
merchandise. A SKU is used to track inventory in your retail store. They are
very valuable in helping you maintain a profitable retail business
a SKU is a series of numbers that track unique information related to that
SKUs are not universal. meaning that each retailer has its own set of SKUs
for its merchandise.