understand ecommerce in this fast technological changing environment

1. Online/E-Commerce

2. SUBMITTED BY-
ASHISH AGARWAL
CRO-0521048
Roll no.- 16
SUBMITTED TO-
MS. NISHA AGARWAL

3. OBJECTIVES
 What is commerce?
 What is ecommerce?
 Modernization of business model
 Historic background of e commerce
 Why use ecommerce?
 Global trend
 Impact of ecommerce
 Social Impact
 On supply Chain Management
 On Market And Retailers
 Process of ecommerce
 Types of ecommerce
 Pros And Cons Of eCommerce
 eCommerce tips
 Traditional vs. ecommerce
 Future of ecommerce in India
 Conclusion
 References Can refer hyperlinks

4. WHAT IS COMMERCE?
• An organization or economic system where goods and services are exchanged for
one another or for money .

5. WHAT IS E-COMMERCE
• E-commerce, short for electronic commerce .
• Trading in products or services using computer networks, such as the Internet.
• E-Commerce is the purchasing , selling and exchanging goods and services over
computer networks through which transaction or terms of sale are performed
electronically.

6. EXAMPLES OF E-COMMERCE

7. MODERNIZATION IN BUSINESS MODES
Barter system
Commerce by
exchange of
money
eCommerce

8. HISTORY OF E-COMMERCE IN INDIA
 The rise of internet companies in India started in the mid-1990s.
 It was only in the mid-2000s, after the dot com bubble burst that e-commerce industry
in India started to take off. The first e-commerce services available were mainly
offered in the travel industry.
 A couple of years later, the online retail industry started taking shape and it is rapidly
growing today as brick and mortar stores are being replaced by click-only models or
brick cum click models of business.
 E-commerce space relating to the deals and discounts websites started becoming
popular towards 2009 and onwards .

9. GROWTH OF E-COMMERCE

10. WHY USE ECOMMERCE?
Low Entry Cost
Reduces transaction costs
Access to the global markets
Secure market share

11. GLOBAL TREND
In 2010, the United Kingdom had the biggest e-commerce market in the world when
measured by the amount spent per capita .
The Czech Republic is the European country where ecommerce delivers the biggest
contribution to the enterprises´ total revenue .
China's e-commerce presence continues to expand every year. With 384 million internet
users, China's online shopping sales rose to $36.6 billion in 2009 .
Brazil's eCommerce is growing quickly with retail eCommerce sales expected to grow at a
healthy double-digit pace through 2014 .
India has an internet user base of about 243.2 million as of January 2014. Despite being third
largest userbase in world, the penetration of Internet is low compared to markets like the United
States, United Kingdom or France but is growing at a much faster rate, adding around 6 million
new entrants every month .
Cont….

14. SOCIAL IMPACT
1. The e-commerce has changed the relative importance of time, but as the pillars of
indicator of the country’s economic state that the importance of time should not be
ignored .
2. The e-commerce offers the consumer or enterprise various information they need,
making information into total transparency, will force enterprise no longer is able to
use the mode of space or advertisement to raise their competitive edge .
3. Transparent and real-time information protects the rights of consumers, because the
consumers can use internet to pick out the portfolio to the benefit of themselves .

15. ON SUPPLY CHAIN MANAGEMENT
• E-commerce has the capability to integrate all inter-company and intra-company
functions .
• Technology companies would keep investing on new e-commerce software solutions
as they are expecting investment return .
• E-commerce would help to solve many aspects of issues that companies may feel
difficult to cope with, such as political barriers or cross-country changes .
• New capabilities such implementing ERP systems have helped companies to
manage operations with customers and suppliers .
• E-commerce provides companies a more efficient and effective way to collaborate
with each other within the supply chain .
• Performance gap will be eliminated since companies can identify gaps between
different levels of supply chains by electronic means of solutions .

16. ON MARKET AND RETAILERS
 Larger firms are able to use economies of scale and offer lower prices.
 Power of e-commerce allows geophysical barriers to disappear, making all
consumers and businesses on earth potential customers and suppliers
 Individual or business involved in e-commerce whether buyers or sellers rely on
Internet-based technology in order to accomplish their transactions

19. 1) Sitting at her computer, a customer tries to order a book online. Her Web browser
communicates back-and-forth over the Internet with a Web server that manages the
store's website.
2) The Web server sends her order to the order manager. This is a central computer
that sees orders through every stage of processing from submission to dispatch.
3) The order manager queries a database to find out whether what the customer wants
is actually in stock.
4) If the item is not in stock, the stock database system can order new supplies from the
wholesalers or manufacturers. This might involve communicating with order systems
at the manufacturer's HQ to find out estimated supply times while the customer is still
sitting at her computer (in other words, in "real time").
5) The stock database confirms whether the item is in stock or suggests an estimated
delivery date when supplies will be received from the manufacturer.
6) Assuming the item is in stock, the order manager continues to process it. Next it
communicates with a merchant system (run by a credit-card processing firm or linked
to a bank) to take payment using the customer's credit or debit card number.
7) The merchant system might make extra checks with the customer's own bank
computer.
8) The bank computer confirms whether the customer has enough funds.

20. 9) The merchant system authorizes the transaction to go ahead, though funds will not be
completely transferred until several days later.
10) The order manager confirms that the transaction has been successfully processed
and notifies the Web server.
11) The Web server shows the customer a Web page confirming that her order has been
processed and the transaction is complete.
12) The order manager sends a request to the warehouse to dispatch the goods to the
customer.
13) A truck from a dispatch firm collects the goods from the warehouse and delivers
them.
14) Once the goods have been dispatched, the warehouse computer e-mails the
customer to confirm that her goods are on their way.
15) The goods are delivered to the customer.

21. TYPES OF ECOMMERCE
I. Business-to-business (B2B)
II. Business-to-consumer (B2C)
III. Consumer-to-business(C2B)
IV. Consumer-to-consumer (C2C)
V. Business-to-government (B2G)
VI. Business-to-employee (B2E)
Can refer hyperlinks

22. BUSINESS –TO-BUSINESS (B2B)
• A type of commerce transaction that exists between businesses, such as those
involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to
business refers to business that is conducted between companies, rather than
between a company and individual consumers. This is in contrast to business to
consumer (B2C) and business to government (B2G). A typical supply chain involves
multiple business to business transactions, as companies purchase components and
other raw materials for use in its manufacturing processes. The finished product can
then be sold to individuals via business to consumer transactions.

23. BUSINESS-TO-CONSUMER (B2C)
• Business-to-consumer (B2C) is an Internet and electronic commerce (e-commerce)
model that denotes a financial transaction or online sale between a business and
consumer. B2C involves a service or product exchange from a business to a
consumer, whereby merchants sell products to consumers.

24. CONSUMER-TO-BUSINESS(C2B)
• Consumer-to-business (C2B) is a business model in which consumers (individuals)
create value and businesses consume that value. For example, when a consumer
writes reviews or when a consumer gives a useful idea for new product development
then that consumer is creating value for the business if the business adopts the input.
Excepted concepts are crowd sourcing and co-creation.
• C2B model, also called a reverse auction or demand collection model, enables
buyers to name or demand their own price, which is often binding, for a specific good
or service. The website collects the demand bids then offers the bids to participating
sellers.
• Another form of C2B is the electronic commerce business model in which consumers
can offer products and services to companies, and the companies pay the
consumers.

25. CONSUMER-TO-CONSUMER(C2C)
 Customer to Customer (C2C) markets are innovative ways to allow customers to
interact with each other. While traditional markets require business to customer
relationships, in which a customer goes to the business in order to purchase a
product or service. In customer to customer markets the business facilitates an
environment where customers can sell these goods and or services to each other.
 Consumer to Consumer (or citizen-to-citizen) electronic commerce involves the
electronically facilitated transactions between consumers through some third party. A
common example is the online auction, in which a consumer posts an item for sale
and other consumers bid to purchase it; the third party generally charges a flat fee or
commission. The sites are only intermediaries, just there to match consumers. They
do not have to check quality of the products being offered.
Cont……

26. EXAMPLES OF C2C

27. BUSINESS-TO-GOVERNMENT (B2G)
 Business-to-government (B2G) is a derivative of B2B marketing and often referred to
as a market definition of "public sector marketing" which encompasses marketing
products and services to various government levels - including federal, state and local
- through integrated marketing communications techniques such as strategic public
relations, branding, marcom, advertising, and web-based communications.
 B2G networks provide a platform for businesses to bid on government opportunities
which are presented as solicitations in the form of RFPs in a reverse auction fashion.
Public sector organizations (PSOs) post tenders in the form of RFPs, RFIs, RFQs,
Sources Sought, etc. and suppliers respond to them.

28. BUSINESS-TO-EMPLOYEE (B2E)
• Business-to-employee (B2E) electronic commerce uses an intrabusiness network
which allows companies to provide products and/or services to their employees.
Typically, companies use B2E networks to automate employee-related corporate
processes. B2E portals have to be compelling to the people who use them.
Companies are competing for eyeballs of their employees with eBay, yahoo and
thousands of other web sites. There is a huge percentage of traffic to consumer web
sites comes from people who are connecting to the net at the office .

30. PROS
 Cost Effective
 Higher Margin
 Better Productivity
 Quick Comparison
 Economy Benefit
Can refer hyperlinks

31. COST EFFECTIVE
• The entire financial transactions will eventually become electronic, so
sooner conversion is going to be lower on cost. It makes every transaction
through e-commerce payment a lot cheaper.

32. HIGHER MARGIN
• E-commerce also enables us to move better with higher margin for more
business safety. Higher margin also means business with more control as
well as flexibility. You can also save time from the e-commerce.

33. BETTER PRODUCTIVITY
• Productivity here means productivity for both companies and customers.
People like to find answers online because it is faster and cheaper, and it
costs a lot cheaper expense as well for the company.

34. QUICK COMPARISON
• E-commerce also enables you to compare price among several providers.
In the end, it leads you to smart shopping. People can save more money
while they shop.

35. ECONOMY BENEFIT
• E-commerce allows us to make transaction without any needs on stores,
infrastructure investment, and other common things we find. Companies
only need well built website and customer service.

36. CONS
 Security
 Scalability of System
 Integrity on Data and System
 Products People
 Customer Service and Relation Problem
Can refer hyperlinks

37. SECURITY
• Customers need to be confident and trust the provider of payment method.
Sometimes, we can be tricked. Examine on integrity and reputation of the
web stores before you decide to buy.

38. SCALABILITY OF SYSTEM
• A company definitely needs a well developed website to support numbers of
customers at a time. If your web destination is not well enough, you better
forget it.

39. INTEGRITY ON DATA AND SYSTEM
• Customers need secure access all the time. In addition to it, protection to
data is also essential. Unless the transaction can provide it, we should
refuse for e-commerce.

40. PRODUCTS PEOPLE
• People who prefer and focus on product will not buy online. They will want to
feel, try, and sit on their new couch and bed.

41. CUSTOMER SERVICE AND RELATION
PROBLEM
• They sometimes forget how essential to build loyal relationship with
customers. Without loyalty from customers, they will not survive the
business.

42. E-Shopping Tips
• Personal recommendations
- Friends or Co-workers who have online shopping experiences to share.
• Use consumer reviews and internet to get informed
• Bizrate.com, amazon.com, etc.

44. ON THE BASIS OF -
 Direct Interaction
 Lower Costs
 Reach
 Returns Rate
 Credit Card Fraud
 Distribution channel
Can refer hyperlinks

45. DIRECT INTERACTION
• Traditional commerce is often based around face to face interaction. The customer
has a chance to ask questions and the sales staff can work with them to ensure a
satisfactory transaction. Often this gives sales staff an opportunity for up selling, or
encourage the client to buy a more expensive item or related items, increasing the
shop profits. On the other hand, eCommerce doesn't offer this benefit unless features
such as related items or live chats are implemented.

46. LOWER COSTS
• eCommerce is usually much cheaper than maintaining a physical store in an equally
popular location. Compared with costs such as commercial space rent, opening an
online store can be done at a fraction of the price for less than $50 per month. This
can prove invaluable for small business owners who don't have the startup capital to
rent prime retail space and staff it to be able to sell their goods.

47. REACH
• With an online shop you can do business with anybody living on a country you are
able and willing to send mail to, unlike traditional commerce where you are restricted
to people who actually come to your shop. This also opens the door to many other
forms of marketing that can be done entirely online, which often results in a much
larger volume of sales and even foot traffic to the store. An online store has no
capability limits, and you can have as many clients as your stock can serve.

48. RETURNS RATE
• In a traditional store, the customer will be purchasing the product in person, which
has some benefits for both the him and the store. The customer will be able to touch
and check the items, to make sure they are suitable, and even try them on, which
reduces the number of returned items or complaints due to an item not being as
advertised on a catalogue. or promotional leaflet. Expect a significantly higher rate of
returns if you start trading online, as many will just order and try the items at home,
and won't hesitate to return them as they can do it by post without having to talk with
anybody in person.

49. CREDIT CARD FRAUD
• The remote nature of ECommerce makes much more difficult to detect fraud, which
means stores can lose money due to fraud. While traditional commerce is not totally
secure, it's easier for a sales attendant to verify that the person buying something is
actually the owner of the credit card, by asking for photographic ID. However, the fight
against card fraud is well underway and banks and responsible ecommerce owners
work together to verify that all card use is legitimate.

50. DISTRIBUTION CHANNEL

51. FUTURE OF ECOMMERCE IN INDIA
 According to business world estimate near about sixty thousand new jobs will be
created for the internet world alone in the next two years.
 E commerce transactions are expected to cross the Rs 3500 crore milestone in 2010-
11 , a jump of around 350 percent from the 2008-09 figure of Rs 1000 crore.
 Ebay said that consumers were trading goods worth three crore rupees everyday ,
across the globe.

52. CONCLUSION

53. “E-commerce is an evolution”.
• By using electronic technology through the internet, it achieved.
• More competitions, more marketplaces, faster transactions and more advanced
technologies.
• To make activities between customers and producers more active.
• We as customers and internet users are responsible to keep our e-commerce healthy
and safe so that e-business can be more reliable in future.

54. REFERENCES
• http://www.networksolutions.com/education/what-is-ecommerce/
• https://en.wikipedia.org/wiki/E-commerce#Examples_of_new_e-commerce_systems
• https://www.google.co.in/search?
q=history+of+ecommerce+in+india&biw=1280&bih=657&tbm=isch&tbo=u&source
• http://www.synaxiom.com/impact-of-ecommerce-in-todays-business-world/
• http://www.investopedia.com/terms/b/btoc.asp
• http://www.techopedia.com/definition/1424/business-to-consumer-b2c
• http://searchcio.techtarget.com/definition/B2G
• http://www.triua.com/100/5-advantages-and-disadvantages-of-e-commerce.html