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E commerce project

The document is a project report analyzing the impact of e-commerce strategies in building customer relationships. It discusses the meaning and types of e-commerce as well as the history and evolution of e-commerce in India. The report outlines the objectives, methodology, and limitations of the study, which involves a survey of 25 people. It analyzes the data collected on customer demographics, behaviors, and perceptions of e-commerce. According to the findings, customers are most concerned with security and quality when making online purchases.

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“ANALYZING THE IMPACT OF E-COMMERCE STRATEGIES IN BUILDING BETTER RELATIONSHIP WITH CUSTOMERS” PROJECT REPORT Submitted in partial fulfillment of the requirement for the Award of the Degree of B.Ed. COMMERCE UNIVERSITY OF CALICUT Submitted by AVYA ARAVINDAKSHAN
Design of the study
1.1 INTRODUCTION UNDERSTANDING WHAT IS E-COMMERCE E-Commerce is the process of buying and selling of goods and services by electronic means through mobile application and internet. E-Commerce refers to both online retail as well as electronic transactions. It has hugely increased in popularity over the last decades and in ways it’s replacing traditional brick and motor stores. E-Commerce enables you to buy and sell products on global scale, twenty-four hours a day without incurring the same overheads as you would with running a brick and motor store. For the best marketing mix and the best conversion rate, an E-Commerce venture should also have physical presence this is better known as click and motor store. While most of the people think of E-Commerce as business to consumer (B2C), there are many other types of E-Commerce. These include online auction sites, internet banking, online ticketing and reservations and business to business transactions; recently the growth of E-Commerce has expanded sale using mobile devices which is commonly known as M-Commerce and is simply a subset of E-Commerce.
1.2 OBJECTIVES OF THE STUDY  To understand the meaning of E-Commerce and E-Commerce strategy.  History of E-Commerce in the world and Evolution of E-Commerce in India.  Awareness of privacy policy and security issue.  Recent trends in E-Commerce  To explore new challenges and opportunities in E-Commerce.  To measure the customer perception and satisfaction regarding the usage of E-Commerce. 1.3 RESEARCH METHADOLOGY This project is based on the descriptive research design which is a fact finding investigation. The sampling survey uses non-probability methods and the sample size is limited to 25. The data needed for the study is collected through primary and secondary sources. 1.4 RESEARCH DESIGN The research gathers descriptive information through detailed analysis of primary and secondary data. A questionnaire is also
prepared as a part of sample survey for data analysis and fact finding purpose. 1.5 SOURCES OF DATA  Primary data - The primary data required for the study will be collected by conducting sample survey among 25 people for data analysis and interpretation relating to customer perception and satisfaction of adopting e-commerce.  Secondary data – The secondary data will be collected from the newspaper, journals, internet and e-library etc. 1.6 TOOLS FOR ANALYSIS Sample survey method is adopted and non-probability sampling techniques i.e. purposive and convenience sample method will be conducted. The size of sample survey is limited to 25 people.
1.7 LIMITATION OF THE STUDY  Sample size used in the survey is limited; it cannot be taken as final word for recommendations and suggestion for the subject.  Ignorance of people to spent time for filling questionnaire.
Theory of the topic
E-COMMERCE STRATEGY A strategy is a summary of how your store is planning to achieve its goal and improve its position in the market. There are different types of strategies depending on the goals. In these cases, we will focus on how to reach more customers for our E-Commerce business. For example make sure your online store is accessible from every device (PC, laptops, phones etc.), readable with clear design and information on it. Our E-Commerce store needs to have a responsive web design and a mobile friendly theme. Customers expect mobile friendly websites. Business with a mobile friendly website will make more sales over those which do not have one. HISTORY OF E-COMERCE History of e-commerce dates back to the invention of the very old notion of “sell and buy”, electricity, cables, computers, modems, and the internet. E-commerce became possible in 1991 when the internet was opened to commercial. Since that date thousands of businesses have taken up residence at websites. At first, the term e-commerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI), Electronic Fund Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transaction. The ability to use these technologies appeared in
the late 1970s and allowed business companies and organizations to send commercial documentation electronically. Although the internet began to advance in popularity among the general public in 1994, it took approximately four years to develop the security protocol (for example HTTP) and DSL which allowed rapid access and a persistent connection to the internet. In 2000 a great number of business companies in United States and Western Europe represented their services in the World Wide Web. At this time the meaning of the word e-commerce was changed. People began to define the term e- commerce as the process of purchasing of available goods and services over the internet using secure connections and electronic payment services. Although the dot-com collapses in 2000 led to unfortunate results and many of e-commerce companies disappeared, the “brick and mortar” retailors recognized the advantages of electronic commerce and began to add such capabilities to their websites. By the end of 2001, the largest form of e- commerce, Business to Business (B2B) model had around $700 billion in transactions. Amazon.com, Inc. is one of the most famous e-commerce companies and is located in Seattle, Washington (USA). It was founded in 1994 by Jeff Bezos and was one of the first American e-commerce companies to sell products over the internet. After the dot.com collapse Amazon lost its position as a successful business model, however in 2003 the company
made its first annual profit which was the first step to further development E-COMMERCE EVOLUTION IN INDIA India first came into interaction with the online e-commerce through the IRCTC (Indian Railway Catering and Tourism). 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 IRCTC Online Passenger Reservation System which for the first time encountered the online ticket booking from anywhere at any time. After the unpredicted success of the IRCTC, the online ticket booking system was followed by the airlines (like Air Deccan, Indian Airlines, Spice jet etc.) Airline agency encouraged, web booking to save the commission given to agents and thus in a way made a major population of the country to try E- Commerce for the first time. Today the booking system is not just limited to the transportation rather hotel booking, bus booking, etc. are being done using the websites like Makemytrip and Yatra. Today, the online shopping has become a trend in India and the reason behind the adoption of the technique lies in the attractive online websites, user friendly interface, bulky online stores with new fashion, easy payment methods (i.e. secure pay online through gateway like PayPal or Cash on Delivery), no
bound on quantity and quality, one can choose the items based on size, color etc. Despite being a developing country, India has shown a commendable increase in the e-commerce industry in the last couple of years, thereby hitting the market with a boom. Though the Indian online market is far behind the U.S and the U.K, it has been growing at a fast page. Further the addition of discount coupons, offers, referral systems, 30 days return guarantee, 1-7 days delivery time, etc. to the online shopping and the E-market have added new flavors to the industry. Social media has now become the hub for the merchants which enable them to analyze the customer choice based on their purchase activities. Social network like LinkedIn, twitter, Google+, Facebook and others have become a medium for easy login and purchase. Moreover the clients can stay updated through the post published on this media. Further the advertising and promotions on social sites has increased the chances of success of generating transactions to many folds. The latest trend in e-commerce is to focus on mobile based shopping. Snap deal getting half of its traffic from mobile from 5% around a year back and flip kart gets 40% traffic from mobile up from 15%. As price of smart phone reduce, these figures will only increase. For this reason, the larger e- commerce firm has started focusing on mobile commerce. It is speculated that the next wave of digital commerce consumer will come through the mobile.
Data Analysis & Interpretation
Classification of respondents according to gender Gender N0. Of Respondents Percentage Male 10 40% Female 15 60% Total 25 100% Interpretation Out of 25 respondents 10 are male and 15 are female. From this it is understood that females have started using internet compared to the past years and their digital literacy is getting developed in these days. 40% 60% On the basis of gender MALE FEMALE
Classification of respondents on the basis of age Range No. of Respondents Percentage Below 25 11 44% 25-35 12 48% 35-50 1 4% 50 and above 1 4% Total 25 100% Interpretation Out of 25 respondents, the highest percentage of people using E- commerce comes under the age group 25-35 i.e. 44% and the lowest comes under 35-50 and 50 above i.e. 4%. From this it is understood that young adult people are more frequent users. 0 10 20 30 40 50 60 BELOW 25 25-35 35-50 50 AND ABOVE PercentageOf Respondents AgeOfRespondents On the basis of age
Classification of respondents on the basis of education Education No. Of Respondents Percentage Primary & Secondary 0 0 university 12 48% Professional Education 12 48% Diploma 0 0 Others 1 4% Total 25 100% Interpretation The chart shows majority users of E-Commerce are having university level and professional education qualification and least respondents with primary and secondary and diploma level. 0 10 20 30 40 50 60 Primary & Secondary University Proffessional Diploma Others Percentageofresopondents EducationOf Respondents On the basis of Education
Classification of respondents on the basis of occupation Occupation No. of Respondents Percentage Student 15 60% Professional Employee 6 24% Self Employed 0 0 Home maker 2 8% Other 2 8% Total 100% Interpretation Out of 25 respondents, majority is students of 60% followed by professional employees of 24% and least percentage of 8 comes under home maker and other occupation. 60% 24% 8% 8% On the basis of Occupation Student professional employee Self employed home maker other
Purpose of using E-Commerce Purpose No. of respondents Percentage For personal use 18 72% For business purpose 0 0 Both personal and business 7 28% Total 25 100% Interpretation Out of 25 respondents, 72% people uses e-commerce for personal use, 28% people uses e-commerce for both personal and business purposes. 0 10 20 30 40 50 60 70 80 Personal Use Business Purpose Personal & Business PercentageofRespondents Purposes Purpose of using E-Commerce
Various helps to the customers in the E-Business domain Helps No. of respondents Percentage Broadens consumer choice 15 60% Encourage price transparency 3 12% Fastens business process 7 28% Do not know 0 0 Total 25 100% Interpretation From this data it is understood that majority people of 60% consider E-commerce broadens their consumer choice, 28% believe that it fastens business process and at least people consider it encourages price transparency 0 20 40 60 Broadens Consumer Choice Encourage Price Transparency Fastens Business Process Do Not Know PercentageofRespondents Various helpsto the customers Various helps
Whether E-Commerce application has increased over past years Changes over the past year No. of respondents Percentage Yes 22 88% No 0 0 Maybe 3 12% Total 25 100% Interpretation From this data it is understood that majority people of 88% believe that changes have occurred in E-Commerce over the past years and 12% people are not certainly aware of the development and have chosen the option maybe. 0 20 40 60 80 100 Yes No Maybe percentage of respondents responseofpeople Application has Increased Over The Past Years
Advantages of E-Commerce over traditional commerce methods Range of agreeing No. of respondents Percentage Strongly disagree 1 4% Disagree 1 4% Neutral 5 20% Agree 10 40% Strongly agree 8 32% Total 25 100% Interpretation Out of 25 respondents, 40% people agree that e-commerce have advantages over traditional commerce and 32% strongly agree and rest 5% opt for neutrally and 4% of disagreement and strongly disagreement. 4%4% 20% 40% 32% Advantages over traditional commerce Strongly disagree Disagree Neutral Agree Strongly agree
Prominent domains in which E-commerce is used in India Prominent Domains No of respondents percentage Online retail store 17 68% Banking 6 24% Bill payment 0 0 Travel & tourism 0 0 Entertainment 2 8% Others 0 0 Total 25 100 Interpretation From this chart it is understood that majority people of 68% use e-commerce for online retail store and then comes banking purpose of 24% and least 8% goes for entertainment. 0% 10% 20% 30% 40% 50% 60% 70% 80% percentage Prominent domains chosen Prominent domains
The challenges for implementing E-commerce in India Challenges No. of respondents Percentage Slow penetration of internet 2 8% Security concern 10 40% Lack of trust 7 28% Low consumer awareness 5 20% Other factors 1 4% Total 25 100 Interpretation From this chart it is understood that 40% people consider major challenges for implementing E-Commerce in India is due to security concern, 28% people considers it is due to lack of trust, 20% people opt low consumer awareness, 8% goes for slow penetration of internet and least have chosen other factors. 8% 40% 28% 20% 4% Challenges for implementing internet Slow penetration of internet Security concern Lack of trust Low consumer awareness Other factors
Trust towards online trade Trust No. of respondents Percentage Not at all 2 8% I’m confident enough 7 28% I’m fully confident 2 8% Kind of, but I keep being careful 14 56% Total 25 100% Interpretation From this data it is understood that majority people of 56% are concerned of trustiness and keeps being careful, 28% people are confident enough and 8% go for both not at all trust and fully confident. 0% 10% 20% 30% 40% 50% 60% Not at all I’m confident enough I’m fully confident Kind of, but I keep being careful Percentage of respondents Rangeoftrustiness Trust towards online trade
Website offers to stimulate purchase on internet Website offers No. of respondents Percentage Variety of choices 3 12% Cash back & discount offers 2 8% Time saving 5 20% All of the above 15 60% Others 0 0 Total 25 100 Interpretation Out of 25 respondents, 60% people agrees that website offers like variety of choices, cash back and discount offers and time savings all together stimulate purchase on internet, 12% opt variety of choices , 20% for time saving and least people of 2% thinks of cash back and discount offers. 0% 20% 40% 60% Variety of choices Cash back & discount offers Time saving All of the above Others Percentage of respondents websiteoffers Website Offers Percentage
Important criterions considered while buying online Criterions No. of respondents Percentage Delivery 4 16% Payment security 6 24% Price 2 8% Quality 8 32% Choice 5 20% Presentation 0 0 Re-contact with seller 0 0 Total 25 100% Interpretation Out of 25 respondents, 32% people considers quality as an important criterion while buying online, 24% considers payment security, 16% opt delivery option and rest 8% consider price. 16% 24% 8% 32% 20% 0 Criterionsfor buying online Delivery Payment security Price Quality Choice Presentation Re-contact with seller
Way of accessing E-Commerce sites through different devices Access devices No. of respondents Percentage Mobile phone 24 96% PC 0 0 Laptop 1 4% iPad 0 0 Total 25 100% Interpretation From this data it is understood that majority respondents of 96% person uses mobile phones for accessing the e-commerce sites, rest 4% people uses laptop. 0% 50% 100% 150% Mobile phone PC Laptop iPad Percentage of respondents Accessdeviceschosen Different devices used for accessing e- commerce sites
Place of accessing internet for E-Commerce purposes Places of access No. of respondents Percentages Home 24% 96% Work 0 0 School 0 0 Shopping mall 1 4% Total 25 100% Interpretation Out of 25 respondents, 96% people access internet for e- commerce purpose from their home and remaining 4% choose shopping malls for accessing internet and nobody uses internet from school or from work place. 0% 20% 40% 60% 80% 100% Home Work School Shopping mall Percentageofrespondents place of access Places of accessing internet
Frequency of making online payment/purchase Frequency of age No. of respondents Percentages Once per week or more 3 12% 2-3 times per month 5 20% Once per week 4 16% 6 times per year 13 52% Total 25 100% Interpretation From the data it is understood that most people are not continuous users, 52% uses it 6 times per year, 20% people uses 2- 3 times per month, 16% people uses once per week and remaining 16% uses once per month. 0% 20% 40% 60% Once per week or more 2-3 times per month Once per week 6 times per year percentageofrespondents frequency of usage Frequency of usage
Likeliness of recommending the usage of E-Commerce Likeliness to recommend No. of respondents Percentage 1 0 0 2 1 4% 3 11 44% 4 9 36% 5 4 16% Total 25 100% Interpretation From this data it is understood that 44% people likely to recommend on scale of 3, 36% people recommend on scale of 4, 16% recommend on scale 5 and remaining 4% choose scale 1. 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5 1 2 3 4 5 percentageofrespondents likeliness to recomend Likeliness of recomendingthe usage
Range of satisfaction while using E-Commerce Satisfaction range No. of respondents Percentage 1 1 4% 2 2 8% 3 7 28% 4 10 40% 5 5 20% Total 25 100 Interpretation Out of 25 respondents, 40% people choose scale 4 of satisfaction, 28% chooses scale 3, 20% chooses scale 5 of high satisfaction and 8% for scale 2 and remaining opt scale 1 of very low satisfaction. 4% 8% 28% 40% 20% Range of satisfaction 1 2 3 4 5
Findings, Recommendations & Conclusions
FINDINGS  On the basis of gender female responses are more compared to male, it is understood that female’s digital literacy have been developed over the past years.  Young adult people are major users of E-commerce.  Majority of E-Commerce users have university level and professional degree as their educational qualification.  In this survey the majority respondents are of students and professional employees only least people are home maker and self-employed.  Most of the people use e-commerce for personal purposes.  In business domain the important help considered by the respondent is broadening the consumer choice.  88% people consider that e-commerce application have increased over the past years.  40% people agree that e-commerce have advantages over the traditional commerce.  Online retail store is chosen by 68% is considered as major prominent domain in which e-commerce is used in India.  Security concern is the major challenge for implementing e- commerce in India.  Majority people of 56% are concerned of trustiness and keep being careful.
 60% people agrees that website offers like variety of choices, cash back and discount offers and time savings all together stimulate purchase on internet.  Majority people consider quality as an important criterion while buying online.  96% person uses mobile phones for accessing the e-commerce sites.  Most of the people access internet for e-commerce purpose from their home.  Most people are not continuous users, 52% uses e-commerce 6 times per year.  Likeliness of recommending the usage of e-commerce is on average scale of 3.  40% people have chosen satisfaction range for using e- commerce as scale 4.
Recommendations  Quality of goods and services is a concern. E-commerce firms need to focus on this.  Security is a promise, but not always delivered. Increased investment in security will bring more customers to the platform.  Establishing trust and winning confidence isn’t easy. Brick and mortar stores tend to be more trusted. It’s no surprise. E-commerce firms will have to work hard to gain consumer trust.  Delivery times tend to be a problem. Too many cases of late deliveries or damaged goods have made buyers suspicious. Logistics must improve.  Many sites lack detailed info mating about products and price. Transparency on this front is critical.
Conclusion In general, today’s businesses must always strive to create the next best thing that consumers will want because consumers continue to desire their products, services etc. to continuously be better, faster, and cheaper. In this world of new technology, businesses need to accommodate to the new types of consumer needs and trends because it will prove to be vital to their business’ success and survival. E-commerce is continuously progressing and is becoming more and more important to businesses as technology continues to advance and is something that should be taken advantage of and implemented. From the inception of the Internet and e-commerce, the possibilities have become endless for both businesses and consumers. Creating more opportunities for profit and advancements for businesses, and creating more options for consumers. However, just like anything else, e- commerce has its disadvantages including consumer uncertainties, but nothing that cannot be resolved or avoided by good decision-making and business practices. There are several factors and variables that need to be considered and decided upon when starting an e-commerce business. Some of these include: types of e-commerce, marketing strategies, and countless more. If the correct methods and practices are followed, a business will prosper in an e-commerce setting with much success and profitability.
Bibliography
 E-commerce an introduction by Amir Manzoor and published by Lambert Academic publications (Google books)  E-commerce book by Ritendra Goel (Google books)  Shodhganga educational site
APPENDIX
QUESTIONNAIRE Name: Age:  Below 25  25-35  35-50  50 and above Sex:  Male  Female Education:  Primary and Secondary Education  University Education  Professional Education  Diploma  Other Occupation:  Student  Professional Employee  Self-Employee  Home maker  Other
1. For what purpose do you use E-Commerce?  For Personal use  For Business Purpose  Both Personal & Business Purpose 2. According to you how is E-Commerce helpful to the consumer in the E-Business domain?  Broadens Consumer Choice  Encourage Price Transparency  Fastens Business Process  Do not Know 3. Do you think that application of E-Commerce has increased over the past years in India?  Yes  No  Maybe 4. Do you agree that E-commerce as commercial means has its advantages over traditional commerce methods?  Strongly Disagree  Disagree  Neutral  Agree  Strongly Agree
5. Which is the most prominent domain in which commerce is used in India?  Online Retail Store  Bill Payment  Banking  Entertainment  Travel & Tourism  Others 6. What are the challenges for the implementation of E- Commerce in India?  Slow penetration of internet  Security Concern  Lack of Trust  Consumer Level of Awareness is Low  Other Factors 7. Do you trust online trade?  Not at all  I’m fully confident  I’m confident enough  Kind of, but I keep being careful
8. What could a website offer to stimulate you to purchase on the internet rather than in traditional shops?  Variety Of Choices  Cash Back & Discount Offers  Time Saving  Others  All of the above 9. According to you what are the most important criterion when you buy online?  Delivery  Payment Security  Quality  Price  Presentation  Choice  Possibility to get back in touch with the seller 10. Where do you typically access internet for the online trade/purchase/payment?  Home  Work  School  Shopping mall
11. What devices are used frequently by you for online purchase/payment?  Mobile Phone  PC  Laptop  iPad 12. Approximately how frequently do you make online payment/purchase?  Once per week or more  2-3 times per month  Once per month  6 times per year 13. How likely are you to recommend using E-Commerce to a friend, family member or a colleague?  1  2  3  4  5 14. Overall how satisfied are you with E-commerce?  1  2  3  4  5
15. According to you what are the advantages and disadvantages of using online and traditional commercial activity? 16. Can you make any suggestion to promote E- commerce in India?

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E commerce project

  • 1.
    “ANALYZING THE IMPACTOF E-COMMERCE STRATEGIES IN BUILDING BETTER RELATIONSHIP WITH CUSTOMERS” PROJECT REPORT Submitted in partial fulfillment of the requirement for the Award of the Degree of B.Ed. COMMERCE UNIVERSITY OF CALICUT Submitted by AVYA ARAVINDAKSHAN
  • 2.
  • 3.
    1.1 INTRODUCTION UNDERSTANDING WHATIS E-COMMERCE E-Commerce is the process of buying and selling of goods and services by electronic means through mobile application and internet. E-Commerce refers to both online retail as well as electronic transactions. It has hugely increased in popularity over the last decades and in ways it’s replacing traditional brick and motor stores. E-Commerce enables you to buy and sell products on global scale, twenty-four hours a day without incurring the same overheads as you would with running a brick and motor store. For the best marketing mix and the best conversion rate, an E-Commerce venture should also have physical presence this is better known as click and motor store. While most of the people think of E-Commerce as business to consumer (B2C), there are many other types of E-Commerce. These include online auction sites, internet banking, online ticketing and reservations and business to business transactions; recently the growth of E-Commerce has expanded sale using mobile devices which is commonly known as M-Commerce and is simply a subset of E-Commerce.
  • 4.
    1.2 OBJECTIVES OFTHE STUDY  To understand the meaning of E-Commerce and E-Commerce strategy.  History of E-Commerce in the world and Evolution of E-Commerce in India.  Awareness of privacy policy and security issue.  Recent trends in E-Commerce  To explore new challenges and opportunities in E-Commerce.  To measure the customer perception and satisfaction regarding the usage of E-Commerce. 1.3 RESEARCH METHADOLOGY This project is based on the descriptive research design which is a fact finding investigation. The sampling survey uses non-probability methods and the sample size is limited to 25. The data needed for the study is collected through primary and secondary sources. 1.4 RESEARCH DESIGN The research gathers descriptive information through detailed analysis of primary and secondary data. A questionnaire is also
  • 5.
    prepared as apart of sample survey for data analysis and fact finding purpose. 1.5 SOURCES OF DATA  Primary data - The primary data required for the study will be collected by conducting sample survey among 25 people for data analysis and interpretation relating to customer perception and satisfaction of adopting e-commerce.  Secondary data – The secondary data will be collected from the newspaper, journals, internet and e-library etc. 1.6 TOOLS FOR ANALYSIS Sample survey method is adopted and non-probability sampling techniques i.e. purposive and convenience sample method will be conducted. The size of sample survey is limited to 25 people.
  • 6.
    1.7 LIMITATION OFTHE STUDY  Sample size used in the survey is limited; it cannot be taken as final word for recommendations and suggestion for the subject.  Ignorance of people to spent time for filling questionnaire.
  • 7.
  • 8.
    E-COMMERCE STRATEGY A strategyis a summary of how your store is planning to achieve its goal and improve its position in the market. There are different types of strategies depending on the goals. In these cases, we will focus on how to reach more customers for our E-Commerce business. For example make sure your online store is accessible from every device (PC, laptops, phones etc.), readable with clear design and information on it. Our E-Commerce store needs to have a responsive web design and a mobile friendly theme. Customers expect mobile friendly websites. Business with a mobile friendly website will make more sales over those which do not have one. HISTORY OF E-COMERCE History of e-commerce dates back to the invention of the very old notion of “sell and buy”, electricity, cables, computers, modems, and the internet. E-commerce became possible in 1991 when the internet was opened to commercial. Since that date thousands of businesses have taken up residence at websites. At first, the term e-commerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI), Electronic Fund Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transaction. The ability to use these technologies appeared in
  • 9.
    the late 1970sand allowed business companies and organizations to send commercial documentation electronically. Although the internet began to advance in popularity among the general public in 1994, it took approximately four years to develop the security protocol (for example HTTP) and DSL which allowed rapid access and a persistent connection to the internet. In 2000 a great number of business companies in United States and Western Europe represented their services in the World Wide Web. At this time the meaning of the word e-commerce was changed. People began to define the term e- commerce as the process of purchasing of available goods and services over the internet using secure connections and electronic payment services. Although the dot-com collapses in 2000 led to unfortunate results and many of e-commerce companies disappeared, the “brick and mortar” retailors recognized the advantages of electronic commerce and began to add such capabilities to their websites. By the end of 2001, the largest form of e- commerce, Business to Business (B2B) model had around $700 billion in transactions. Amazon.com, Inc. is one of the most famous e-commerce companies and is located in Seattle, Washington (USA). It was founded in 1994 by Jeff Bezos and was one of the first American e-commerce companies to sell products over the internet. After the dot.com collapse Amazon lost its position as a successful business model, however in 2003 the company
  • 10.
    made its firstannual profit which was the first step to further development E-COMMERCE EVOLUTION IN INDIA India first came into interaction with the online e-commerce through the IRCTC (Indian Railway Catering and Tourism). 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 IRCTC Online Passenger Reservation System which for the first time encountered the online ticket booking from anywhere at any time. After the unpredicted success of the IRCTC, the online ticket booking system was followed by the airlines (like Air Deccan, Indian Airlines, Spice jet etc.) Airline agency encouraged, web booking to save the commission given to agents and thus in a way made a major population of the country to try E- Commerce for the first time. Today the booking system is not just limited to the transportation rather hotel booking, bus booking, etc. are being done using the websites like Makemytrip and Yatra. Today, the online shopping has become a trend in India and the reason behind the adoption of the technique lies in the attractive online websites, user friendly interface, bulky online stores with new fashion, easy payment methods (i.e. secure pay online through gateway like PayPal or Cash on Delivery), no
  • 11.
    bound on quantityand quality, one can choose the items based on size, color etc. Despite being a developing country, India has shown a commendable increase in the e-commerce industry in the last couple of years, thereby hitting the market with a boom. Though the Indian online market is far behind the U.S and the U.K, it has been growing at a fast page. Further the addition of discount coupons, offers, referral systems, 30 days return guarantee, 1-7 days delivery time, etc. to the online shopping and the E-market have added new flavors to the industry. Social media has now become the hub for the merchants which enable them to analyze the customer choice based on their purchase activities. Social network like LinkedIn, twitter, Google+, Facebook and others have become a medium for easy login and purchase. Moreover the clients can stay updated through the post published on this media. Further the advertising and promotions on social sites has increased the chances of success of generating transactions to many folds. The latest trend in e-commerce is to focus on mobile based shopping. Snap deal getting half of its traffic from mobile from 5% around a year back and flip kart gets 40% traffic from mobile up from 15%. As price of smart phone reduce, these figures will only increase. For this reason, the larger e- commerce firm has started focusing on mobile commerce. It is speculated that the next wave of digital commerce consumer will come through the mobile.
  • 12.
  • 13.
    Classification of respondentsaccording to gender Gender N0. Of Respondents Percentage Male 10 40% Female 15 60% Total 25 100% Interpretation Out of 25 respondents 10 are male and 15 are female. From this it is understood that females have started using internet compared to the past years and their digital literacy is getting developed in these days. 40% 60% On the basis of gender MALE FEMALE
  • 14.
    Classification of respondentson the basis of age Range No. of Respondents Percentage Below 25 11 44% 25-35 12 48% 35-50 1 4% 50 and above 1 4% Total 25 100% Interpretation Out of 25 respondents, the highest percentage of people using E- commerce comes under the age group 25-35 i.e. 44% and the lowest comes under 35-50 and 50 above i.e. 4%. From this it is understood that young adult people are more frequent users. 0 10 20 30 40 50 60 BELOW 25 25-35 35-50 50 AND ABOVE PercentageOf Respondents AgeOfRespondents On the basis of age
  • 15.
    Classification of respondentson the basis of education Education No. Of Respondents Percentage Primary & Secondary 0 0 university 12 48% Professional Education 12 48% Diploma 0 0 Others 1 4% Total 25 100% Interpretation The chart shows majority users of E-Commerce are having university level and professional education qualification and least respondents with primary and secondary and diploma level. 0 10 20 30 40 50 60 Primary & Secondary University Proffessional Diploma Others Percentageofresopondents EducationOf Respondents On the basis of Education
  • 16.
    Classification of respondentson the basis of occupation Occupation No. of Respondents Percentage Student 15 60% Professional Employee 6 24% Self Employed 0 0 Home maker 2 8% Other 2 8% Total 100% Interpretation Out of 25 respondents, majority is students of 60% followed by professional employees of 24% and least percentage of 8 comes under home maker and other occupation. 60% 24% 8% 8% On the basis of Occupation Student professional employee Self employed home maker other
  • 17.
    Purpose of usingE-Commerce Purpose No. of respondents Percentage For personal use 18 72% For business purpose 0 0 Both personal and business 7 28% Total 25 100% Interpretation Out of 25 respondents, 72% people uses e-commerce for personal use, 28% people uses e-commerce for both personal and business purposes. 0 10 20 30 40 50 60 70 80 Personal Use Business Purpose Personal & Business PercentageofRespondents Purposes Purpose of using E-Commerce
  • 18.
    Various helps tothe customers in the E-Business domain Helps No. of respondents Percentage Broadens consumer choice 15 60% Encourage price transparency 3 12% Fastens business process 7 28% Do not know 0 0 Total 25 100% Interpretation From this data it is understood that majority people of 60% consider E-commerce broadens their consumer choice, 28% believe that it fastens business process and at least people consider it encourages price transparency 0 20 40 60 Broadens Consumer Choice Encourage Price Transparency Fastens Business Process Do Not Know PercentageofRespondents Various helpsto the customers Various helps
  • 19.
    Whether E-Commerce applicationhas increased over past years Changes over the past year No. of respondents Percentage Yes 22 88% No 0 0 Maybe 3 12% Total 25 100% Interpretation From this data it is understood that majority people of 88% believe that changes have occurred in E-Commerce over the past years and 12% people are not certainly aware of the development and have chosen the option maybe. 0 20 40 60 80 100 Yes No Maybe percentage of respondents responseofpeople Application has Increased Over The Past Years
  • 20.
    Advantages of E-Commerceover traditional commerce methods Range of agreeing No. of respondents Percentage Strongly disagree 1 4% Disagree 1 4% Neutral 5 20% Agree 10 40% Strongly agree 8 32% Total 25 100% Interpretation Out of 25 respondents, 40% people agree that e-commerce have advantages over traditional commerce and 32% strongly agree and rest 5% opt for neutrally and 4% of disagreement and strongly disagreement. 4%4% 20% 40% 32% Advantages over traditional commerce Strongly disagree Disagree Neutral Agree Strongly agree
  • 21.
    Prominent domains inwhich E-commerce is used in India Prominent Domains No of respondents percentage Online retail store 17 68% Banking 6 24% Bill payment 0 0 Travel & tourism 0 0 Entertainment 2 8% Others 0 0 Total 25 100 Interpretation From this chart it is understood that majority people of 68% use e-commerce for online retail store and then comes banking purpose of 24% and least 8% goes for entertainment. 0% 10% 20% 30% 40% 50% 60% 70% 80% percentage Prominent domains chosen Prominent domains
  • 22.
    The challenges forimplementing E-commerce in India Challenges No. of respondents Percentage Slow penetration of internet 2 8% Security concern 10 40% Lack of trust 7 28% Low consumer awareness 5 20% Other factors 1 4% Total 25 100 Interpretation From this chart it is understood that 40% people consider major challenges for implementing E-Commerce in India is due to security concern, 28% people considers it is due to lack of trust, 20% people opt low consumer awareness, 8% goes for slow penetration of internet and least have chosen other factors. 8% 40% 28% 20% 4% Challenges for implementing internet Slow penetration of internet Security concern Lack of trust Low consumer awareness Other factors
  • 23.
    Trust towards onlinetrade Trust No. of respondents Percentage Not at all 2 8% I’m confident enough 7 28% I’m fully confident 2 8% Kind of, but I keep being careful 14 56% Total 25 100% Interpretation From this data it is understood that majority people of 56% are concerned of trustiness and keeps being careful, 28% people are confident enough and 8% go for both not at all trust and fully confident. 0% 10% 20% 30% 40% 50% 60% Not at all I’m confident enough I’m fully confident Kind of, but I keep being careful Percentage of respondents Rangeoftrustiness Trust towards online trade
  • 24.
    Website offers tostimulate purchase on internet Website offers No. of respondents Percentage Variety of choices 3 12% Cash back & discount offers 2 8% Time saving 5 20% All of the above 15 60% Others 0 0 Total 25 100 Interpretation Out of 25 respondents, 60% people agrees that website offers like variety of choices, cash back and discount offers and time savings all together stimulate purchase on internet, 12% opt variety of choices , 20% for time saving and least people of 2% thinks of cash back and discount offers. 0% 20% 40% 60% Variety of choices Cash back & discount offers Time saving All of the above Others Percentage of respondents websiteoffers Website Offers Percentage
  • 25.
    Important criterions consideredwhile buying online Criterions No. of respondents Percentage Delivery 4 16% Payment security 6 24% Price 2 8% Quality 8 32% Choice 5 20% Presentation 0 0 Re-contact with seller 0 0 Total 25 100% Interpretation Out of 25 respondents, 32% people considers quality as an important criterion while buying online, 24% considers payment security, 16% opt delivery option and rest 8% consider price. 16% 24% 8% 32% 20% 0 Criterionsfor buying online Delivery Payment security Price Quality Choice Presentation Re-contact with seller
  • 26.
    Way of accessingE-Commerce sites through different devices Access devices No. of respondents Percentage Mobile phone 24 96% PC 0 0 Laptop 1 4% iPad 0 0 Total 25 100% Interpretation From this data it is understood that majority respondents of 96% person uses mobile phones for accessing the e-commerce sites, rest 4% people uses laptop. 0% 50% 100% 150% Mobile phone PC Laptop iPad Percentage of respondents Accessdeviceschosen Different devices used for accessing e- commerce sites
  • 27.
    Place of accessinginternet for E-Commerce purposes Places of access No. of respondents Percentages Home 24% 96% Work 0 0 School 0 0 Shopping mall 1 4% Total 25 100% Interpretation Out of 25 respondents, 96% people access internet for e- commerce purpose from their home and remaining 4% choose shopping malls for accessing internet and nobody uses internet from school or from work place. 0% 20% 40% 60% 80% 100% Home Work School Shopping mall Percentageofrespondents place of access Places of accessing internet
  • 28.
    Frequency of makingonline payment/purchase Frequency of age No. of respondents Percentages Once per week or more 3 12% 2-3 times per month 5 20% Once per week 4 16% 6 times per year 13 52% Total 25 100% Interpretation From the data it is understood that most people are not continuous users, 52% uses it 6 times per year, 20% people uses 2- 3 times per month, 16% people uses once per week and remaining 16% uses once per month. 0% 20% 40% 60% Once per week or more 2-3 times per month Once per week 6 times per year percentageofrespondents frequency of usage Frequency of usage
  • 29.
    Likeliness of recommendingthe usage of E-Commerce Likeliness to recommend No. of respondents Percentage 1 0 0 2 1 4% 3 11 44% 4 9 36% 5 4 16% Total 25 100% Interpretation From this data it is understood that 44% people likely to recommend on scale of 3, 36% people recommend on scale of 4, 16% recommend on scale 5 and remaining 4% choose scale 1. 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5 1 2 3 4 5 percentageofrespondents likeliness to recomend Likeliness of recomendingthe usage
  • 30.
    Range of satisfactionwhile using E-Commerce Satisfaction range No. of respondents Percentage 1 1 4% 2 2 8% 3 7 28% 4 10 40% 5 5 20% Total 25 100 Interpretation Out of 25 respondents, 40% people choose scale 4 of satisfaction, 28% chooses scale 3, 20% chooses scale 5 of high satisfaction and 8% for scale 2 and remaining opt scale 1 of very low satisfaction. 4% 8% 28% 40% 20% Range of satisfaction 1 2 3 4 5
  • 31.
  • 32.
    FINDINGS  On thebasis of gender female responses are more compared to male, it is understood that female’s digital literacy have been developed over the past years.  Young adult people are major users of E-commerce.  Majority of E-Commerce users have university level and professional degree as their educational qualification.  In this survey the majority respondents are of students and professional employees only least people are home maker and self-employed.  Most of the people use e-commerce for personal purposes.  In business domain the important help considered by the respondent is broadening the consumer choice.  88% people consider that e-commerce application have increased over the past years.  40% people agree that e-commerce have advantages over the traditional commerce.  Online retail store is chosen by 68% is considered as major prominent domain in which e-commerce is used in India.  Security concern is the major challenge for implementing e- commerce in India.  Majority people of 56% are concerned of trustiness and keep being careful.
  • 33.
     60% peopleagrees that website offers like variety of choices, cash back and discount offers and time savings all together stimulate purchase on internet.  Majority people consider quality as an important criterion while buying online.  96% person uses mobile phones for accessing the e-commerce sites.  Most of the people access internet for e-commerce purpose from their home.  Most people are not continuous users, 52% uses e-commerce 6 times per year.  Likeliness of recommending the usage of e-commerce is on average scale of 3.  40% people have chosen satisfaction range for using e- commerce as scale 4.
  • 34.
    Recommendations  Quality ofgoods and services is a concern. E-commerce firms need to focus on this.  Security is a promise, but not always delivered. Increased investment in security will bring more customers to the platform.  Establishing trust and winning confidence isn’t easy. Brick and mortar stores tend to be more trusted. It’s no surprise. E-commerce firms will have to work hard to gain consumer trust.  Delivery times tend to be a problem. Too many cases of late deliveries or damaged goods have made buyers suspicious. Logistics must improve.  Many sites lack detailed info mating about products and price. Transparency on this front is critical.
  • 35.
    Conclusion In general, today’sbusinesses must always strive to create the next best thing that consumers will want because consumers continue to desire their products, services etc. to continuously be better, faster, and cheaper. In this world of new technology, businesses need to accommodate to the new types of consumer needs and trends because it will prove to be vital to their business’ success and survival. E-commerce is continuously progressing and is becoming more and more important to businesses as technology continues to advance and is something that should be taken advantage of and implemented. From the inception of the Internet and e-commerce, the possibilities have become endless for both businesses and consumers. Creating more opportunities for profit and advancements for businesses, and creating more options for consumers. However, just like anything else, e- commerce has its disadvantages including consumer uncertainties, but nothing that cannot be resolved or avoided by good decision-making and business practices. There are several factors and variables that need to be considered and decided upon when starting an e-commerce business. Some of these include: types of e-commerce, marketing strategies, and countless more. If the correct methods and practices are followed, a business will prosper in an e-commerce setting with much success and profitability.
  • 36.
  • 37.
     E-commerce anintroduction by Amir Manzoor and published by Lambert Academic publications (Google books)  E-commerce book by Ritendra Goel (Google books)  Shodhganga educational site
  • 38.
  • 39.
    QUESTIONNAIRE Name: Age:  Below 25 25-35  35-50  50 and above Sex:  Male  Female Education:  Primary and Secondary Education  University Education  Professional Education  Diploma  Other Occupation:  Student  Professional Employee  Self-Employee  Home maker  Other
  • 40.
    1. For whatpurpose do you use E-Commerce?  For Personal use  For Business Purpose  Both Personal & Business Purpose 2. According to you how is E-Commerce helpful to the consumer in the E-Business domain?  Broadens Consumer Choice  Encourage Price Transparency  Fastens Business Process  Do not Know 3. Do you think that application of E-Commerce has increased over the past years in India?  Yes  No  Maybe 4. Do you agree that E-commerce as commercial means has its advantages over traditional commerce methods?  Strongly Disagree  Disagree  Neutral  Agree  Strongly Agree
  • 41.
    5. Which isthe most prominent domain in which commerce is used in India?  Online Retail Store  Bill Payment  Banking  Entertainment  Travel & Tourism  Others 6. What are the challenges for the implementation of E- Commerce in India?  Slow penetration of internet  Security Concern  Lack of Trust  Consumer Level of Awareness is Low  Other Factors 7. Do you trust online trade?  Not at all  I’m fully confident  I’m confident enough  Kind of, but I keep being careful
  • 42.
    8. What coulda website offer to stimulate you to purchase on the internet rather than in traditional shops?  Variety Of Choices  Cash Back & Discount Offers  Time Saving  Others  All of the above 9. According to you what are the most important criterion when you buy online?  Delivery  Payment Security  Quality  Price  Presentation  Choice  Possibility to get back in touch with the seller 10. Where do you typically access internet for the online trade/purchase/payment?  Home  Work  School  Shopping mall
  • 43.
    11. What devicesare used frequently by you for online purchase/payment?  Mobile Phone  PC  Laptop  iPad 12. Approximately how frequently do you make online payment/purchase?  Once per week or more  2-3 times per month  Once per month  6 times per year 13. How likely are you to recommend using E-Commerce to a friend, family member or a colleague?  1  2  3  4  5 14. Overall how satisfied are you with E-commerce?  1  2  3  4  5
  • 44.
    15. According toyou what are the advantages and disadvantages of using online and traditional commercial activity? 16. Can you make any suggestion to promote E- commerce in India?