e-commerce is a transaction of buying or selling online. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle although it may also use other technologies such as e-mail.
e-commerce businesses may employ some or all of the following:
Online shopping web sites for retail sales direct to consumers
Providing or participating in online marketplaces, which process third-party business-to-consumer or consumer-to-consumer sales
Business-to-business buying and selling
Gathering and using demographic data through web contacts and social media
Business-to-business (B2B) electronic data interchange
Marketing to prospective and established customers by e-mail or fax (for example, with newsletters)
Engaging in pretail for launching new products and services
Online financial exchanges for currency exchanges or trading purposes
2. What is E-Commerce?
E- Commerce - Electronic commerce is a process which allows buyers and
sellers to directly buy or sell goods or services over the Internet using a
web browser.
Consumers find a product of interest by visiting the website of the retailer
directly or by searching among alternative vendors using a shopping
search engine, which displays the same product's availability and pricing
at different e-retailers.
3. Examples of E-Commerce?
Online Shopping
Buying and selling
goods on the Internet
is one of the most
popular examples of
e-commerce.
Amazon, flipkart,
ebay are few popular
online shopping
websites
Electronic Payments
When we are buying
goods online, there
needs to be a
mechanism to pay
online too. That is
where payment
processors and
payment gateways
come into the picture.
Online Ticketing
Air tickets, movie
tickets, train tickets,
play tickets, tickets to
sporting events, and
just about any kind of
tickets can be booked
online.
4. History of E-Commerce
History of ecommerce is
unthinkable without Amazon and
Ebay which were among the first
Internet companies to allow
electronic transactions.
It was founded in 1994 by Jeff
Bezos and was one of the first
American commerce companies to
sell products over the Internet.
5. Categories of E-Commerce
[1.] Business-to-Business(B2B)
B2B e-commerce is simply defined as e-
commerce between companies.
Benefits of B2B: E-commerce are
transaction cost are low.
[2.] Business-to-Consumer (B2C)
E-commerce, or commerce between
companies and involves customers
gathering information; purchasing
physical goods or information goods.
6. Categories of E-Commerce
[3.] Consumer-to-Business (C2B)
In C2B,consumers place an estimate
of the amount of Money he is willing
to spend for a particular Service. For
example comparison of interest rate
Of the personal loan/car loan
provided by various banks via website
[4.] Consumer-to-Consumer (C2C)
The C2C models involves transaction
between consumers. Here a consumer
sells directly to another consumer e-
bay.com, olx.com, etc. are some common
example of online auction websites that
provide selling and buying of goods from
one Consumer to another consumer.
7. Advantages of E-Commerce
Advantages for Customers
Convenience- every product is at the finger tip
of the customers on internet
Time saving- there is no driving in circle
products are easy to locate and can be delivered
at our doorstep in just few days
Easy to compare – side by side option of
comparison is also available and easy to do
Lots of deal and discounts – customers get best
products at very reasonable price
Advantages to Business
Increasing customers base – The base is very
important for every one be it online or offline
Rise in sell –Because of no geographical
boundation people get more business
24/7 365 days- These stores are open round the
clock
8. Disadvantages of E-Commerce
Disadvantages for Customers
Privacy and security –before making
transactions we should check the certificates of
security
Quality – Consumers can’t touch or see the
product until they are delivered so at times they
can be cheated also
Hidden cost –At times customers are cheated
with lots of taxes which are not mentioned
earlier
Wrong goods delivered
Delay in receiving goods
Lack of personal interaction
9. E-Commerce Application
As of 2016, for online shopping, customers have been using a range of different
devices like desktop computers, laptops, tablet computers and smart phones.
Online Catalogue -A catalogue of goods for sale
that is displayed on a computer or mobile screen
and from which you can order goods that allows
you to search for information on a particular
subject.
E Mail-Electronic mail is a method of exchanging digital
messages between computer users; Email first entered
substantial use in the 1960s and by the 1970s had taken
the form now recognised as email. Email operates across
computer networks, which in the 2010s is primarily the
Internet.
File Transfer Protocol-The File Transfer Protocol (FTP) is a standard network protocol
used to transfer computer files between a client and server on a computer network.
10. E-Commerce Application
Shopping Cart-A Shopping Cart is a piece of software that acts as
an online store's catalogue and ordering process. Typically, a
shopping cart is the interface between a company's Web site
and its deeper infrastructure, allowing consumers to select
merchandise; review what they have selected; make necessary
modifications or additions; and purchase the merchandise.
Web Service- the Web service typically provides an object-oriented Web-based
interface to a database server, utilized for example by another Web server, or by a
mobile application, that provides a user interface to the end user.
Social Media use web-based and mobile technologies on smart phones and tablet
computers to create highly interactive platforms through which individuals,
communities and organizations can share, co-create, discuss, and modify user-
generated content or pre-made content posted online.
11. E-Commerce in India
In 2015, the largest e-commerce companies in India were Flipkart, Snapdeal, Amazon
India, and Paytm.
India had an internet user base of about 354 million as of June 2015. and is expected
to cross 500 million in 2016.
Despite being the second-largest user base in world, only behind China (650 million,
48% of population), the penetration of e-commerce is low compared to markets like
the United States (266 million, 84%), or France (54 M, 81%), but is growing at an
unprecedented rate, adding around 6 million new entrants every month.
12. E-Commerce in India
The industry consensus is that growth is at an inflection
point.
In India, cash on delivery is the most preferred payment
method, accumulating 75% of the e-retail activities.
Demand for international consumer products (including long-tail items) is growing
much faster than in-country supply from authorised distributors and e-commerce
offerings.