The document presents an overview of e-commerce in India, detailing various types such as B2B, B2C, C2C, C2B, and m-commerce, along with government participation in e-commerce. It states that about 25% to 30% of India's population are active e-commerce customers, driven by increasing internet usage and the growth of online services. The future of e-commerce is promising, with expected growth in online transactions, despite challenges related to credibility and cost for businesses.

1. E-Commerce from India Context
Presented by: Elamurugu Sundararaj
Title: Director
Company: Raj Competency Development Center
Website: http://www.rcdc.co.in

2. Contents
Types of E-Commerce
Population Spread
Internet Usage
Usage Classification
Market Spread
The Future – Pushing and Limiting Factors
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3. Types of E-Commerce
Definition:
1.Commercial transaction through a network
enabled medium is known as Electronic
Commerce.
2.E-commerce is the use of electronic
communications and digital information
processing technology in business transactions to
create, transform, and redefine relationships for
value creation between or among organizations,
and between organizations and individuals.
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4. Types of E-Commerce
• B2B: Business buying products / services from another business. Example:
Manufacturing units to Dealers
• B2C: Consumer buying products / services from Business. This form is
becoming popular now after amazing success by Flipkart, Amazon etc
• C2B (Consumer-to-Business) Consumers directly posting or publishing
requirements in a network medium and the business bid for it. Example:
Furniture requirement postings, Home purchase etc.
• C2C: Consumer buying products / services from another consumer.
Classifieds business for example, will fall into this category. Companies like
MyHome-MyNeeds.com are operating in this business space.
• M-Commerce: Mobile Commerce is the niche market which further
facilitates the commercial transaction on the fly, since the business is
done thru hand-held devices with wireless network. This takes all the
above formats. People say it is a subset of e-commerce.
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5. Government Participation
• B2G: Government Tenders, Auction Notices
are digitalized and business bid for them. This
can bring transparency in Order Selection and
Execution.
• C2G: Government can directly reach citizen
without any middlemen or offices to disperse
its schemes, subsidiesm etc.
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6. Population Spread
 As we look at the geo-
spread, nearly 8% of India
population, with each
5million people are living in
the tier1 cities and much of
e-commerce transactions
happening here.
 Approximately around 4% of
population from 32 cities,
with an average of 2.5
million each are
participating in this market.
 That sums up to the range
of 25% to 30% of 1.2 billion
people who are the active
customers in e-commerce
space.
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This is the census data as of 2011 and geo analysis done by Forester Research.

7. Internet Usage
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 As we see the present
and projected and
planned usage is getting
increased by multi-fold.
 As per the projection
given by TRAI, by 2020,
there will be an
estimated internet users
of 600 million with
minimum of 2MBPS data
speed. This target seems
to be quite realistic with
the advent of 4G in place.

8. Internet Usage Classification
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People get into internet for various purposes -
 Entertainment, to play games, listen to music
or movies etc
 To communicate with others, be it text chat
or video chat or send mails etc
 To avail any online services such as
scheduling appointment or to use
Government services and schemes etc
 Here comes the next big thing - eCommerce.
As we look at the data, the % of current
usage and the estimated future usage for
commercial transactio is more than 60%. But
the reality has surpassed all estimates and is
now more than 100%.
 People use it for Social Networking like
Facebook, Twitter etc
 To avail and record for Financial purposes
like tax paying, Insurance claim, Utility Bill
pay etc
 Other important sector, which could be the
next major sector is about integrating and
addressing all Rural needs such as Agri, loans,
subsidies etc. Since this works out at the
municipal or rural level, government
initiatives are already underway.

9. Market Spread
 Today, online ticket booking is the
major sector in eCommerce, which
takes the lion share of 71% from
overall market primarily because of
time saving, convenience to search,
compare and reserve, friendly
cancellation policies, acceptance of
e-tickets by operators, associated or
add-on facilities like hotel booking
etc make this segment more
attractive.
 The next major segment is eTailing.
Online product purchase is fast
picking up.
 6% of online eCommerce users use it
for Tax filing, Insurance, Share
trading, utility bill pay and banking
etc
 The classifieds business takes the
next big share from this market.
 Miscellaneous services like
scheduling appointment,
government schemes etc takes
remaining portion of it.. http://www.rcdc.co.in

10. The Future - Advantages
Advantages of E-Commerce
– Reduction of transaction costs such as:
• Logistics
• Intermediaries
– No Queue and No wait time
– Elimination of trade barrier, location divide.
– Price Consolidation. Since the buyers can cost compare,
the price variation will come down significantly.
– Employment Generation
– Government Initiatives
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11. The Future - Challenges
Consumer perspective:
• Credibility as the market is yet to mature. This problem is
more acute in service sector due to reliability of people.
• No defined or systematic way for product returns or payment
refunds in case of defects.
Business perspective:
• Availability of skilled resources and high attrition rate
• Risk of fraud and cyber issues
• Order fulfillment
• Cost of Advertisement or Reach is high with the thin margin.
This poses threat on Business scale-up and sustenance issues.
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12. Conclusion
• Both planned and ad-hoc purchases make this segment lucrative.
Convenience of order booking at one place and deliver at another place
without worrying on logistics, package and time (the Gift sector, for
example) make this market further attractive.
• Accelerated usage of Smart phones, gradual adoption or transition of pay
wallets, for example paytm.com, e-money will trigger this market move
upwards.
• Vast amount of data getting generated on the consumer preference and
spend power which in turn opens up other niche business segments such
as Analytics using BigData etc.
• Warehouses will be much more decentralized. The inventory control
might become a challenge due to demand volatility and competition
pressure.
• As the usage becomes more common and awareness increases, the
businesses will be interfacing with one another through tested API’s so as
to provide an integrated shopping experience.http://www.rcdc.co.in

13. Thank You
Presented by: Elamurugu Sundararaj
Title: Director
Company: Raj Competency Development Center
Website: http://www.rcdc.co.in