E-commerce involves buying and selling of goods over the internet. It was introduced in the late 1970s and allowed businesses to exchange information and execute transactions electronically. Major growth occurred in the mid-1990s with the launch of Amazon and other companies. E-commerce provides opportunities for businesses of all sizes but also faces challenges regarding security, privacy, inventory management, and payments. The future of e-commerce depends on addressing these challenges and protecting consumers.

1. E-COMMERCE
YOGESH KAMBOJ

2. E-COMMERCE
 Buying and selling goods and products over the internet
 Can be range from ordering online, through online delivery of paid content, to
financial transactions such as movement of money between bank accounts
 From the business point of view, Ecommerce provides better connectivity for
its potential customer
 From the customer standpoint, Ecommerce is much more convenient as they
can browse through a whole directories of catalogues from home
 Also gives opportunity for small scale companies to achieve worldwide market

3. History
 Introduced 40 years ago
 Late 1970’s, allowed for the exchange of information and the
execution of electronic transactions between businesses, typically in
the form of electronic purchase orders and invoices
 Early 90’s, e-commerce would also include things such as enterprise
resource planning (ERP), data warehousing and data mining.
 From the beginning, there were many hesitations and concerns with
online shopping but the development of a security protocol – the
Secure Socket Layers (SSL) – encryption certificate by Netscape in
1994 provided a safe means to transmit data over the Internet.

4. Cont.…
 The mid-nineties to 2000’s saw major advancements in the commercial use of
the Internet.
 The largest online retailer in the world Amazon, launched in 1995 as an online
bookstore
 Also in 1995, was the inception of Yahoo followed by Google in 1998, two
leading search engines in the US.
 Global ecommerce company, PayPal, began its services in 1998 and currently
operates in 190 markets.
 In 2004, the Payment Card Industry Security Standards Council (PCI) was
formed to ensure businesses were meeting compliance with various security
requirements.

5. Amazon
 Amazon.com Inc. is the leading online retailer that sells almost everything a
consumer want on their website
 Started by Jeff Bezos in 1994 but the website was launched in 1995
 Started as an online bookstore
 Amazon has separate retail websites for United States, United Kingdom and
Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil,
Japan, China, India and Mexico
 Also offers international shipping to certain other countries for some of its
products

6. Flipkart
 Flipkart.com is leading e-commerce marketplace with over 40 million
products across 80 plus categories
 Founded by Sachin Bansal and Binny Bansal in 2007, who were working for
Amazon.com
 Introduce cash on delivery and payment by card on delivery
 Flipkart also acquired few companies like Myntra.com, LetsBuy.com etc., to
better their presence in the market
 Flipkart’s story proves that if you have a great idea, and you are a doer and
not a thinker, success is not far off

7. Types of E-Commerce
B2B
 Most popular type of e-commerce
 Companies can also sell directly from this site, e-tailing to other businesses
 Some B2B companies provide software for building B2B websites, thus
becoming a B2B for B2Bs
 The second category is product supply and procurement exchanges, otherwise
known as e-procurement sites
 The final category is information sites, or "infomediaries," which provide
specialized information

8. B2C
 B2C is business or transactions conducted directly between a company and
consumers who are the end-users of its products or services
 Most popular and widely known of sales models
 That sells products or services direct to the consumer
 Idea was first utilized by Michael Adrich in 1979, who used television as the
primary medium to reach out to consumers
 Companies with website presence are continuing to dominate over their
traditional brick-and-mortar competitors
 B2C companies have been shifting attention to mobile users and capitalizing
on the popular technology

9. C2C
 People who come together to buy, sell or trade items online take part in C2C
e-commerce
 This type of e-commerce is the modern version of using the classified
advertising section of your local newspaper
 Because consumers interact directly with each other
 Buyers can shop for free, but sellers sometimes have to pay a fee to list their
products
 The C2C model entails lower costs and higher profits for buyers and sellers
 Both new and used goods are sold through C2C e-commerce, and fewer
middlemen are involved in the transactions.

10. B2G
 Businesses selling products, services or information to governments or
government agencies
 Provide a way for businesses to bid on government projects or products that
governments might purchase or need for their organizations
 B2G activities are increasingly being conducted via the Internet through real-
time bidding
 B2G is also referred to as public sector marketing

11. G2C
 G2C model is a part of e-governance and objective of this model is to provide
goods or effective services to each citizen
 Government to consumer markets provide numerous opportunities for
consumers, both private and commercial, to take advantage of the many
government offerings available
 G2C business involves everything from grants and loans to copies of property
transactions and credit reports. Government contracts can be very lucrative
and constitute a huge market
 The correspondence join between a government and people

12. Opportunities
 Doing business from home
 Increasing number of internet users
 Rising middle-class disposable income
 Continuous reduction in the cost of internet access
 Integrating mobile into your website
 M-Commerce

13. Increasing number of internet users
 India and China will add 1 billion internet users in next coming years
 This internet usage is mostly through the smartphones
 In India two-third and in China three-fifth of the internet access is through
the smartphones
 250 million internet users and around which 12% are an online shopper
 Amazon is getting a large number of new customers in India after the United
States
 Snapdeal and Flipkart, along with Amazon India, they are getting benefits
from increasing large number of internet users

14. Continuous reduction in the cost of
internet access
 The tariffs of data plans and prices of data cards/USB dongles are on a
decline, thus facilitating a wider coverage
 India is one of the 29 countries with an average connection speed of 1 mbps
or less
 Indians are increasingly logging on to internet on mobile devices that have
fairly low speeds
 Therefore, reduction in the price of data plans augurs well for internet
adoption across the country

15. M-Commerce
 M-commerce is known as next generation e-commerce
 BI Intelligence report states that by 2020, mobile commerce will make up 45
percent of total e-commerce, equaling $284 billion in sales
 A holistic mobile approach needs to be the first consideration for retailers
because it’s the first consideration for their customers.
 Mobile commerce is on the rise, its conversion rates are still behind
desktop’s, Tablet 15%, Mobile 20% and Desktop 65%
 A smaller screen, harder-to-find product details and finicky credit card form
fields, it’s easy for shoppers to give up on a purchase

16. Challenges
 High inventory/Poor Supply Chain
 High cash burn rate
 Poor payment Method
 Privacy
 Security
 Cash on Delivery (CoD)

17. Privacy
 Many individuals discuss privacy and security as if they are the same
 Privacy has become a major concern for consumers with the rise of identity
theft and impersonation
 Under current American law, companies are not legally obligated to post
privacy policies
 Indeed, privacy policies may actually put companies at legal risk
 The FTC has investigated and sued companies for failure to comply with their
stated policies
 Despite the legal risks, many sites voluntarily choose to adopt privacy policies

18. Security
 Hacking, identity theft, credit card stealing, bank information stealing, etc.
are some of the greatest security issues that hinder the consumer from
trusting
 Increasing concerns on security risks and have become a global issue
 Future developments in e-commerce will solely depend on IT security and risk
management
 Many sites opt for SSL security certificate to showcase their security
 Ethical hackers or security consultants have emerged as the newest solution
for ecommerce security challenges
 Regular online shoppers must know the https or the lock symbol and that it
denotes the security of the payment transaction

19. Cash on Delivery (CoD)
 COD accounts for 50 to 80 per cent of online transactions in India
 Used in other emerging markets such as China, Russia and Vietnam, too.
 Delay in receiving cash from shipping companies due to unforeseen
conditions.
 Cash on delivery orders get more rejections from customers, 35% more, So,
sellers need to be ready to face high shipping costs
 Courier companies in India still don’t offer COD facility in many areas. This
limits revenue and opportunities to generate sales
 Sellers have to wait not weeks, but even months to receive money from
courier companies

20. Conclusion
 E-Commerce in the near future will be in every business
 Creating new opportunities for every business, but it requires careful
application for consumer protection issues
 New ethical issues related to business will emerge
 These ethical issues must be identified and immediate steps and actions
should be taken
 Growth of e-commerce would also depend to a great extent on effective IT
security systems for which necessary technological and legal provisions need
to be put in place and strengthened constantly