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
