What is Commerce?
What is e-commerce?
The process of e-commerce
History of e-commerce
Different Types of e-commerce
Advantages of e-commerce
Disadvantages of e-commerce
Future of e-commerce
3. “I think a simple rule of business is,
if you do the things that are easier
first, then you can actually make
a lot of progress.”
4. What is Commerce?
According to Wiki, commerce is defined as
Commerce is the whole system of an economy that constitutes an
environment for business. The system includes legal, economic, political,
social, cultural and technological systems that are in operation in any
As per businessdictionary.com,
Exchange of goods or services for money or in kind, usually on
a scale large enough to require transportation from place to place or
across city, state, or national boundaries.
5. What is e-commerce?
Electronic commerce, commonly known as e-commerce or e-
Commerce, is a type of industry where the buying and selling of products
or services is conducted over electronic systems such as the Internet and
other computer networks.
E-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 at least
at one point in the transaction's life-cycle, although it may encompass a
wider range of technologies such as e-mail, mobile devices, social media,
and telephones as well
7. The process of e-commerce
1. Customer can browse through e-commerce and add the selected
products to virtual shopping cart. And Order can be placed via
internet or phone call.
2. Customer shall be charged for Order.
3. After successful payment, Order is confirmed for further processing.
4. Email containing Ordered product’s details will be sent to Customer
5. Further Order is sent to Warehouse for order fulfillment.
6. After the shipment is ready from Warehouse, it is picked by Shipping
7. Shipment is sent to Customer and Order is completed.
8. History of e-commerce
1979: Michael Aldrich demonstrates the first online shopping system.
1981: Thomson Holidays UK is first business-to-business online shopping system to be
1995: Jeff Bezos launches Amazon.com and the first commercial-free 24-hour,
internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and
Cisco begin to aggressively use Internet for commercial transactions. eBay is
founded by computer programmer Pierre Omidyar as AuctionWeb.
1996: IndiaMART B2B marketplace established in India.
2000: The dot-com bust.
2012: US eCommerce and Online Retail sales projected to reach $226 billion, an
increase of 12 percent over 2011
2012: US eCommerce and Online Retail holiday sales reach $33.8 billion, up 13
2014: India’s e-commerce industry is estimated to have grown more than 30% from a
year earlier to $12.6 billion in 2013
9. Different Types of e-commerce
10. Business-to-Business (B2B)
Business-to-business (B2B) describes commerce transactions
between businesses, such as between a manufacturer and a
wholesaler, or between a wholesaler and a retailer.
An example that illustrates the business to business concept is
automobile manufacturing. Many of a vehicle's components are
manufactured independently and the auto manufacturer must
purchase these parts separately. For instance, the tires, batteries,
electronics, hoses and door locks may be manufactured elsewhere
and sold directly to the automobile manufacturer.
Ex: McMaster-Carr, Fastenal, Grainger, Quill
11. Business-to-Consumer (B2C)
B2C e-commerce is a business-to-consumer type of e-commerce
where a consumer in the general public can simply purchase a
product or a service that is advertised on a catalogue placed on a
Few examples of B2C Comemerce
Retail: amazon.com, ebay.com, flipkart.com
Services: (Online travel reservations) redbus.in, makemytrip.com
Financial Services: Online banking, Telephone banking.
12. Business-to-government (B2G)
Business-to-government (B2G) is a business model that refers to
businesses selling products, services or information to governments
or government agencies.
For example, a Web site offering B2G services could provide
businesses with a single place to locate applications and tax forms
for one or more levels of government (city, state or province,
country, and so forth); provide the ability to send in filled-out forms
and payments; update corporate information; request answers to
specific questions; and so forth. B2G may also include e-procurement
services, in which businesses learn about the
purchasing needs of agencies and agencies request proposal
B2G is sometimes called e-government.
13. Consumer-to-Consumer (C2C)
Customer to Customer (C2C) markets are innovative ways to allow
customers to interact with each other.
Website following C2C business model helps consumer to sell their
assets like residential property, cars, motorcycles etc. or rent a room
by publishing their information on the website. Website may or may
not charge the consumer for its services. Another consumer may opt
to buy the product of the first customer by viewing the
post/advertisement on the website.
Example: olx.in, quikr.com
14. Mobile-Commerce (m-Commerce)
Also known as Mobile E-Commerce
Mobile e-commerce (m-commerce) is a term that describes online
sales transactions that use wireless electronic devices such as hand-held
computers, mobile phones or laptops.
Mobile e-commerce is just one of the many subsets of electronic
15. Advantages of e-commerce
Faster buying/selling procedure, as well as easy to find products.
More reach to customers, there is no theoretical geographic
No need of physical company set-ups.
Easy to start and manage a business.
Customers can easily select products from different providers
without moving around physically.
Low operational costs and better quality of services.
16. Disadvantages of e-commerce
Lack of Personal Touch
Inability to Experience the Product Before Purchase
Need for an Internet Access Device
Need for an Internet Connection
Any one, good or bad, can easily start a business. And there are
many bad sites which eat up customers’ money.
There are many hackers who look for opportunities, and thus an
ecommerce site, service, payment gateways, all are always prone
As there is minimum chance of direct customer to company
interactions, customer loyalty is always on a check.
17. Future of e-commerce
Credit cards will soon become a thing of the past. In the future, e-wallets
will be synched to an individual’s fingerprint, making the
online checkout process streamlined, safe, secure and easy.
Customers are your best salespeople. Social media is growing in
importance for big and small business alike.
Online purchases are delivered in 30 minutes…faster than a pizza.
Companies like Corning Glass are revolutionizing the tech industry
by pioneering responsive, touch-driven display glass that will soon
be used to make just about everything in our lives interactive.
Another key area is 3-D printing in the future of ecommerce. Pretty
soon we should be able to offer the option where customers can
actually print out their own clothing. This is very much in the early
stages but we could definitely see this happening within the next 2
to 5 years.