E-Commerce
BY
Gurpreet
Rohith
Shital
Overview
▪ Definition
▪ Models
▪ Organizations
▪ Benefits
▪ Disadvantages
▪ Challenges
E-commerce

▪ E-commerce or electronic commerce, a subset
of ebusiness, is the purchasing, selling, and
exchanging of good...
Models Of E-Commerce
1.
2.
3.
4.

Business to Business (B2B)
Business to Consumer (B2C)
Consumer to Business (C2B)
Consume...
Business to Business

Companies doing business with each other such as
manufacturers selling to distributors and wholesale...
Business to Business - Example
Business to Consumer
Businesses selling to the general public typically
through catalogs utilizing shopping cart software
Business to Consumer - Example
Consumer to Business
• A consumer posts his project with a set budget
online and within hours companies review the
consume...
Consumer to Business - Example
1. Monster.com
2. Fotolia
3. Shutterstock
Consumer to Consumer
In customer to customer markets the business
facilitates an environment where customers can sell
thes...
Consumer to Consumer - Example
Organizations
• brick-and-mortar organizations
Old-economy organizations (corporations) that perform most of
their busines...
Distribution Channels
• Pure-Click or Pure-play companies are those that
have launched a website without any previous
exis...
Benefits of E-Commerce – To Producers
•Global Reach
•Cost Reduction
•Extended Hours
•Customization
•New Business Models
•V...
Benefits of E-Commerce – To Consumers
▪
▪
▪
▪
▪
▪
▪
▪

Ubiquity
More Products and Services
Customized Products and Service...
Benefits of E-Commerce – To Society
▪ E-Commerce enables more individuals to work at home and to
do less travelling for sh...
Disadvantage of E-Commerce
1. Data Security
• Some peoples do not trust internet
• Credit card details can be stolen on th...
Disadvantage of E-Commerce
1. Some products do not sell well on internet
• You cannot see, touch, smell, try on items you
...
Operations Issues in Online Sales
▪ Inventory management
▪ Packaging orders for shipment
▪ Delivery

▪ Customer returns
Inventory aging is critical

Methods

▪ Poor infrastructure

▪ Sales On Return

▪ High Rentals

▪ back-to-back restoration...
Packing Orders for Shipment
▪ Items are identified by bar codes or radio frequency ID (RFID)
▪ Warehouse workers put order...
Delivery
▪ Objective: Deliver when promised, while minimizing
delivery costs
▪ Brick-and-mortar stores (like Sears) can sh...
Customer Returns
▪ Objective: minimize the cost of customer returns
and reduce "hassles" for customers
– 25% of Internet o...
Customer Returns (2)
▪ Online retailer must ship a replacement item or
issue credit to customer
▪ Online retailer must pro...
S3  E-commerce
S3  E-commerce
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S3 E-commerce

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Industry Week on E commerce
Presentation by Gurpreet Singh, Shital Kumar, Rohith Votarikari for OSM IIM Kashipur Session

Published in: Business, Technology
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S3 E-commerce

  1. 1. E-Commerce BY Gurpreet Rohith Shital
  2. 2. Overview ▪ Definition ▪ Models ▪ Organizations ▪ Benefits ▪ Disadvantages ▪ Challenges
  3. 3. E-commerce ▪ E-commerce or electronic commerce, a subset of ebusiness, is the purchasing, selling, and exchanging of goods and services over computer networks (such as the Internet) through which transactions or terms of sale are performed electronically ▪ Contrary to popular belief, ecommerce is not just on the Web
  4. 4. Models Of E-Commerce 1. 2. 3. 4. Business to Business (B2B) Business to Consumer (B2C) Consumer to Business (C2B) Consumer to Consumer (C2c)
  5. 5. Business to Business Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable
  6. 6. Business to Business - Example
  7. 7. Business to Consumer Businesses selling to the general public typically through catalogs utilizing shopping cart software
  8. 8. Business to Consumer - Example
  9. 9. Consumer to Business • A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project • The consumer reviews the bids and selects the company that will complete the project
  10. 10. Consumer to Business - Example 1. Monster.com 2. Fotolia 3. Shutterstock
  11. 11. Consumer to Consumer In customer to customer markets the business facilitates an environment where customers can sell these goods and or services to each other
  12. 12. Consumer to Consumer - Example
  13. 13. Organizations • brick-and-mortar organizations Old-economy organizations (corporations) that perform most of their business off-line, selling physical products by means of physical agents • virtual (pure-play) organizations Organizations that conduct their business activities solely online • click-and-mortar (click-and-brick) organizations Organizations that conduct some e-commerce activities, but do their primary business in the physical world
  14. 14. Distribution Channels • Pure-Click or Pure-play companies are those that have launched a website without any previous existence as a firm • Bricks-and-Clicks companies are those existing companies that have added an online site for ecommerce
  15. 15. Benefits of E-Commerce – To Producers •Global Reach •Cost Reduction •Extended Hours •Customization •New Business Models •Vendors’ Specialization •Lower Communication Costs •Efficient Procurement •Improved Customer Relations •Up-to-Date Company Material •No City Business Permits and Fees
  16. 16. Benefits of E-Commerce – To Consumers ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Ubiquity More Products and Services Customized Products and Services Cheaper Products and Services Instant Delivery Information Availability Participation in Auctions Electronic Communities
  17. 17. Benefits of E-Commerce – To Society ▪ E-Commerce enables more individuals to work at home and to do less travelling for shopping resulting in less traffic on the roads and lower air pollution ▪ E-Commerce enables people in rural areas to enjoy products and services that are not available to them ▪ EC facilitates delivery of public services such as health care education and distribution of Government social services at a reduced cost and or improved quality
  18. 18. Disadvantage of E-Commerce 1. Data Security • Some peoples do not trust internet • Credit card details can be stolen on the net, unless the company is secure 2. Data Privacy • Many consumers worry about sending information on the net • Identity theft
  19. 19. Disadvantage of E-Commerce 1. Some products do not sell well on internet • You cannot see, touch, smell, try on items you purchase from net 2. Some customers like to shop in the high street • Color and shape look different in pictures
  20. 20. Operations Issues in Online Sales ▪ Inventory management ▪ Packaging orders for shipment ▪ Delivery ▪ Customer returns
  21. 21. Inventory aging is critical Methods ▪ Poor infrastructure ▪ Sales On Return ▪ High Rentals ▪ back-to-back restoration ▪ Lack of technologies ▪ environment differences  On an average they left 13-16% unsold inventories at end of year. These unsold inventories furthermore give losses and add 3-5% toll in terms of cost.
  22. 22. Packing Orders for Shipment ▪ Items are identified by bar codes or radio frequency ID (RFID) ▪ Warehouse workers put ordered items in crates ▪ Sorter sends each item to the correct, bar-coded box for the customer who ordered it ▪ Packing slip is printed ▪ Boxes are packed, taped, weighed ▪ Boxes are put on trucks for shipment to customers
  23. 23. Delivery ▪ Objective: Deliver when promised, while minimizing delivery costs ▪ Brick-and-mortar stores (like Sears) can ship items to stores for customer pickup. ▪ Other online merchants ship via a package delivery service (like UPS) or U.S. postal service ▪ Online merchants use package delivery services for most shipments to other countries. ▪ Customers usually pay a standard shipping cost – different for U. S. and other countries
  24. 24. Customer Returns ▪ Objective: minimize the cost of customer returns and reduce "hassles" for customers – 25% of Internet orders result in a customer return – Problems in returning goods are the 2nd biggest reason that consumers don't buy online ▪ Customer usually pays for return shipping ▪ Variety of approaches used to return goods: postal service, contract package delivery service, brickand-mortar store
  25. 25. Customer Returns (2) ▪ Online retailer must ship a replacement item or issue credit to customer ▪ Online retailer must process returned items – Return defective items to supplier for a credit – Good items can often be repackaged, priced, and resold.

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