Factors affecting demand and supply Future post Covid

1. E-COMMERCE

3. WHAT IS E-COMMERCE?
E-Commerce refers to any form of business
transaction conducted online. It is a business
model that let firms and individuals buy and sell
things over internet.
Trading or facilitation of trading in products and
services electronically using computer networks,
such as internet.
E-Commerce draws on technologies such
as electronic funds transfer , internet marketing,
Online Transactions processing, inventory
management system and much more.
E-commerce can help in increasing reachability and
can offer new marketing opportunities .

4. Factors Affecting Demand
• Competitors Pricing- Offer reasonable price
along with incentivizing the customer to
ditch conventional mode of shopping with
ecommerce.
• Shipping time and cost - Shipping time and
charges encourages customer to buy a product
because of the convenience it offers.
• Easy Return- Easy return policy gives consumers
a feeling of security and a time-duration for
returning a product.
• Loyalty Rewards- Rewards help to maintain as
well as attract new customers.

5. • Easy Navigation- E-Commerce websites offer easy navigation and their vast knowledge base that
enhances consumer experience.
• Payment Services- Payments are central to building ecommerce ecosystems. E-Commerce provides
widely accepted payment services.
• Demographics- Understanding the target customer is paramount. Research shows that
majority of online shoppers are between 25 and 40 and frequent shoppers are females.
• Word of mouth- The customers can recommend the products to other customers which will
generate further demand.

6. Inward Shift Of demand CurveOutward Shift of Demand Curve
FIG 1 FIG 2
DEMAND CURVE

7. Factors affecting supply
• Technology Infrastructure – It is imperative to build an
open scalable infrastructure, develop the right value
added services and use it as effective sustainability
model.
• Government Initiative- The government wants to address
the concerns of the online giants. Policies to help and
also impose govt. oversight on how companies
handle data.
• Warehousing- Timely delivery and optimized
distribution system leads to increase in
customer satisfaction.
• Shipping and transportation- As an e- commerce
business, the business largely depends on the delivery
carriers efficiency and leverage to all modes of
transportation.
• Pool distribution- It reduces transit time and streamlines
of delivery hence leads to cost saving..

8. Outward Shift Of Supply Curve Inward Shift Of Supply Curve
FIG 3 FIG 4
SUPPLY CURVE

9. Future of E-Commerce
Post Covid
• India's e-commerce is empowering both sellers and consumers. For consumers it
will provide a wider variety of options to scroll through across
various geographies and income segments and for sellers like home grown
brands, kiranas, traders it will provide a huge base of consumers across the
country.
• Consumers prefer shopping from the safety of their homes due to the
covid outbreak.
• As people are gradually coming out of the quarantine phase, they are inclining
towards 'Revenge Spending', also called retail therapy. These are the people who
have missed shopping have now started spending online.
• Sharp spikes were seen in online grocery shopping, and digitized kirana shops
especially in metropolitan cities. Non- essential purchases also dropped, and
increased the sale of home upgrades and electronics.
• The usage of digital payments among Indian consumers rose by 45%.
• The sector is expected to witness increased penetration in tier one and tier two
cities, more than 50 percent of e-commerce platforms are focused on local
campaigns to increase buyers and sellers in smaller cities.

10. Presented By:
TARANNUM AURORA
VIKAS DAGAR
VAISHALI AGGARWAL
UTKARSH SINGHAL
YAMAN MITTAL
SAKSHAM CHAWLA