E-Commerce
E-commerce, the buyingand selling of products and
services online, has fundamentally transformed the
traditional retail experience. It's moving transactions
from physical storefronts to dynamic digital
platforms, offering unparalleled convenience and
accessibility.
Technology has reshaped every aspect of the
shopping journey, from initial product discovery
and detailed comparison to secure payment
processing and real-time delivery tracking. This
digital evolution makes online shopping not just an
alternative, but an essential part of modern
commerce due to its efficiency, speed, and
widespread global adoption.
4.
The Historical Trajectoryof Online Retail
Key milestones include the development of
secure transaction protocols, the speculative dot-
com boom and bust, and the advent of mobile
commerce. Today, e-commerce has evolved into
vast global marketplaces, driven by advanced
personalization technologies and artificial
intelligence, continually redefining how
consumers interact with brands and make
purchases.
1970 EDI
Electronic
Data
Interchange
1990’s
Internet
wide-
spread
Invention
of Mobile
Phones
5.
The E-Commerce
Revolution: Past,Present,
and Future
E-commerce has fundamentally reshaped global
retail, transforming how businesses connect with
customers and how consumers shop.
Driven by continuous technological
advancements in AI, mobile, and data analytics, it
offers unparalleled convenience and access.
Looking ahead, the digital marketplace presents
vast opportunities for innovation, sustainable
growth, and expanding global economic
participation.
6.
Core Concepts
Digital Transactions
Theprocess of buying
and selling goods or
services exclusively
through digital
channels such as
websites, mobile
applications, and other
online platforms.
Tech-Driven Infrastructure
E-commerce operations are powered by advanced
Information and Communication Technology (ICT) tools,
including robust internet infrastructure, secure server
networks, sophisticated databases, and widespread
mobile connectivity.
Key Activities
Encompasses the entire
consumer journey:
browsing product
catalogs, placing
orders, executing digital
payments, and
managing the reception
of deliveries, all
facilitated virtually.
7.
Technologies Powering ModernE-Commerce
AI & Machine Learning
Drives personalized
recommendations, fraud
detection, and enhances
customer service through
chatbots.
Big Data
Collects and analyzes vast
amounts of customer data to
identify buying patterns,
market trends, and optimize
operations.
Cloud Computing
Provides scalable
infrastructure, ensuring 24/7
store availability, high-speed
performance, and secure data
storage without extensive
hardware investments.
Blockchain
Offers secure and transparent
transaction processing,
enhancing supply chain
visibility and significantly
reducing the risk of fraud.
Mobile Technology
Enables convenient, on-the-go
shopping experiences through
dedicated apps and mobile-
optimized websites, anytime
and anywhere.
8.
How E-Commerce Works:Simple Steps
01
Browse & Discover
Customers navigate to a
website or mobile application,
utilizing search functions and
categories to find desired
products.
02
Add to Cart
Once satisfied, selected items
are placed into a virtual
shopping cart, allowing for
review and modification before
purchase.
03
Payment Selection
Shoppers choose their
preferred payment method,
ranging from secure online
gateways to cash-on-delivery
options.
04
Order Processing
The seller confirms the order, initiates
fulfillment, and manages inventory within their
warehouse or distribution center.
05
Delivery & Receipt
A courier service transports the product from
the warehouse directly to the customer's
specified address.
9.
Types of E-CommerceModels
1
B2C: Business-to-Consumer
Online retailers selling directly to individual
shoppers (e.g., Amazon, Apple.com).
2
B2B: Business-to-Business
Companies transacting goods and services in bulk
with other businesses (e.g., Alibaba, Salesforce).
3
C2C: Consumer-to-Consumer
Individual consumers selling directly to other
individuals (e.g., eBay, Etsy, Poshmark).
4
C2B: Consumer-to-Business
Freelancers or individuals offering services or
products to companies (e.g., Upwork, Shutterstock
contributors).
10.
Real-Life E-Commerce
Examples
Amazon
A globalgiant that leverages advanced AI for highly
personalized product recommendations, employs
sophisticated robotics in its warehouses for
efficient packing and logistics, and boasts an
extensive global fast delivery system.
11.
Daraz (Pakistan)
A leadinge-commerce platform in South Asia,
known for popularizing cash on delivery, facilitating
easy returns, and offering nationwide delivery. It
empowers small and medium-sized sellers to
establish online shops without needing physical
storefronts.
12.
Impact of E-Commerce:
Benefitsfor Businesses
• Reduced operational costs by minimizing the
need for large physical retail spaces.
• Wider market reach through effective digital
marketing strategies.
• Ability to access national and international
customer bases, expanding growth
opportunities.
• Enhanced data collection for better
understanding customer behavior and
optimizing sales strategies.
13.
Benefits for Customers
•Enjoy 24/7 shopping convenience from the
comfort of their homes.
• Benefit from easy price comparisons across
multiple sellers, leading to better deals.
• Access a wider selection of products from
global markets.
• Utilize fast and secure digital payment options
for seamless transactions.
14.
Challenges & Limitationsin E-Commerce
Cybersecurity Risks
Ongoing threats of hacking, data breaches, and other
cyberattacks that compromise sensitive customer information
and business operations.
Fraud & Product Quality Concerns
Prevalence of fake sellers, scam attempts, and issues with the
quality or authenticity of products, leading to consumer distrust.
Delivery Delays & Logistics
Challenges arising from complex logistics, unforeseen shipping
disruptions, or high order volumes, resulting in delayed
deliveries.
Privacy Concerns
Increasing worries about the misuse of personal and financial
data collected during online transactions.
Returns & Customer Support
Difficulties for customers in managing product returns,
obtaining refunds, or receiving adequate and timely customer
service.
15.
The Future ofE-Commerce:
Emerging Trends
AI Personalization
Advanced AI algorithms will further refine product
recommendations, tailor user experiences, and provide
proactive customer support, making online shopping
hyper-individualized.
Augmented Reality (AR) Shopping
AR technology will allow customers to virtually 'try on'
clothes, visualize furniture in their homes, or interact with
products in 3D before making a purchase, bridging the
physical-digital gap.
Sustainability Focus
E-commerce will increasingly prioritize eco-friendly
packaging, ethical sourcing, and carbon-neutral delivery
options as consumer demand for sustainable practices
grows.
Blockchain Integration
Blockchain will enhance supply chain transparency, enable
secure and verifiable transactions, and facilitate new
models like NFTs for digital goods and authenticity
tracking.
16.
Conclusion: The Futureis
Digital
E-commerce relentlessly evolves, reshaping global
commerce with unprecedented convenience and
reach. It has transformed markets, driving
innovation and expanding access worldwide,
offering both vast opportunities and evolving
challenges.
As we navigate its dynamic landscape, embracing
continuous digital transformation is paramount to
unlocking new growth and solidifying our place in
this ever-expanding digital frontier.
17.
RReferences :
Zwass,V. (1996). Electronic commerce: Structures and issues. International Journal of Electronic Commer
ce, 1(1), 3–23.
World Economic Forum. (2022). Shaping the Future of Digital Economy and New Value Creation.
Adobe Digital Insights. (2023). E-Commerce Trends and Consumer Behavior Report.