E-

Commerce
VIVEK BIRLA
A S S I S TA N T P R O F E S S O R
AMITY UNIVERSITY GURGAON

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 What is E Commerce ?
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About it ..!!
E-Commerce or Electronics Commerce is a methodology of
modern business, which addresses the requirements of
business organizations. It can be broadly defined as the
process of buying or selling of goods or services using an
electronic medium such as the Internet.

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 About it ..!!
It addresses the need of business organizations, vendors and customers to reduce cost and
improve the quality of goods and services while increasing the speed of delivery. Ecommerce
refers to the paperless exchange of business information using the following ways −
Electronic Data Interchange (EDI)
Electronic Mail (e-mail)
Electronic Bulletin Boards
Electronic Fund Transfer (EFT)
Other Network-based technologies

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 E-Commerce provides the following features −
Non-Cash Payment − E-Commerce enables the
use of credit cards, debit cards, smart cards,
electronic fund transfer via bank's website, and
other modes of electronics payment.
24x7 Service availability − E-commerce automates
Features ..!! the business of enterprises and the way they
provide services to their customers. It is available
anytime, anywhere.
Advertising / Marketing − E-commerce increases
the reach of advertising of products and services of
businesses. It helps in better marketing
management of products/services.

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Feature's continued ..!!
Improved Sales − Using e-commerce, orders for the products can be generated anytime,
anywhere without any human intervention. It gives a big boost to existing sales volumes.

Support − E-commerce provides various ways to provide pre-sales and post-sales assistance to
provide better services to customers.

Inventory Management − E-commerce automates inventory management. Reports get

generated instantly when required. Product inventory management becomes very efficient and
easy to maintain.

Communication improvement − E-commerce provides ways for faster, efficient, reliable

communication with customers and partners.

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 Comparison
between Traditional
& E Commerce
Business

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Driving Forces(Pressure) for E Commerce
Market &
Societal & Env Technological
Economic

Strong Competition Govt regulation Rapid technical changes

Global Economy Reduction in govt subsidies New Technologies

Low labour cost Political changes Information overload

Digital convergence – Convergence of

Market Demand Conflict , Convergence of
Transmission

Increasing expectations of consumer

Awareness among consumer

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E-Commerce
Advantages
E-Commerce advantages can be
broadly classified in three major
categories −

Advantages to Organizations

Advantages to Consumers

Advantages to Society

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 Advantages to Organizations
Using e-commerce, organizations can expand their market to national and international markets with minimum capital
investment. An organization can easily locate more customers, best suppliers, and suitable business partners across the
globe.

E-commerce helps organizations to reduce the cost to create process, distribute, retrieve and manage the paper based
information by digitizing the information.

E-commerce improves the brand image of the company.

E-commerce helps organization to provide better customer services.

E-commerce helps to simplify the business processes and makes them faster and efficient.

E-commerce reduces the paper work.

E-commerce increases the productivity of organizations. It supports "pull" type supply management. In "pull" type supply
management, a business process starts when a request comes from a customer and it uses just-in-time manufacturing way

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Advantages to Customers
It provides 24x7 support. Customers can enquire about a product or service and place orders anytime, anywhere from any
location.

E-commerce application provides users with more options and quicker delivery of products.

E-commerce application provides users with more options to compare and select the cheaper and better options.

A customer can put review comments about a product and can see what others are buying, or see the review comments of other
customers before making a final purchase.

E-commerce provides options of virtual auctions.

It provides readily available information. A customer can see the relevant detailed information within seconds, rather than
waiting for days or weeks.

E-Commerce increases the competition among organizations and as a result, organizations provides substantial discounts to
customers.

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Advantages to Society
Customers need not travel to shop a product, thus less traffic on road and low air pollution.

E-commerce helps in reducing the cost of products, so less affluent people can also afford the
products.

E-commerce has enabled rural areas to access services and products, which are otherwise not
available to them.

E-commerce helps the government to deliver public services such as healthcare, education, social
services at a reduced cost and in an improved manner.

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Various Advantages of E Commerce
Better
Greater Profit Knowledge
Economy Lower Cost Customer
Margin Market
Experience

Swapping of Convivence –
Quicker
Goods & Information Easy Control Team Work
Comparison
Service Sharing

Highly Ensure
Productivity
Customised Secrecy

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Component's of E Commerce
Institution's Process Network

Government Marketing

Merchant Sales

Supplier Payment

Consumer Support & Service

Bank
Financial
Institutions
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Disadvantages of E-Commerce
The disadvantages of e-commerce can be broadly classified into two major categories −

Technical disadvantages

Non-Technical disadvantages

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Technical Disadvantages

There can be lack of system security, reliability or standards owing to poor implementation of e-commerce.

The software development industry is still evolving and keeps changing rapidly.

In many countries, network bandwidth might cause an issue.

Special types of web servers or other software might be required by the vendor, setting the e-commerce
environment apart from network servers.
Sometimes, it becomes difficult to integrate an e-commerce software or website with existing applications
or databases.
There could be software/hardware compatibility issues, as some e-commerce software may be
incompatible with some operating system or any other component.

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 Non-Technical Disadvantages
Initial cost − The cost of creating/building an e-commerce application in-house may be very high. There
could be delays in launching an e-Commerce application due to mistakes, and lack of experience.
User resistance − Users may not trust the site being an unknown faceless seller. Such mistrust makes it
difficult to convince traditional users to switch from physical stores to online/virtual stores.
Security/ Privacy − It is difficult to ensure the security or privacy on online transactions.

Lack of touch or feel of products during online shopping is a drawback.

E-commerce applications are still evolving and changing rapidly.

Internet access is still not cheaper and is inconvenient to use for many potential customers, for example,
those living in remote villages.

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E-commerce business Models
E-commerce business models can generally be categorized into the following categories.

Business - to - Business (B2B)

Business - to - Consumer (B2C)

Consumer - to - Consumer (C2C)

Consumer - to - Business (C2B)

Business - to - Government (B2G)

Government - to - Business (G2B)

Government - to - Citizen (G2C)

Peer – to - Peer (P2P)

M Commerce

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B2B Business Model
A website following the B2B business
model sells its products to an intermediate
buyer who then sells the product to the final
customer. As an example, a wholesaler
places an order from a company's website
and after receiving the consignment, sells
the endproduct to the final customer who
comes to buy the product at one of its retail
outlets.

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Business - to - Consumer
A website following the B2C business
model sells its products directly to a
customer. A customer can view the products
shown on the website. The customer can
choose a product and order the same. The
website will then send a notification to the
business organization via email and the
organization will dispatch the product/goods
to the customer.

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Consumer - to - Consumer
A website following the C2C business model
helps consumers 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.

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Consumer - to - Business
In this model, a consumer approaches a
website showing multiple business
organizations for a particular service. The
consumer places an estimate of amount
he/she wants to spend for a particular service.
For example, the comparison of interest rates
of personal loan/car loan provided by various
banks via websites. A business organization
who fulfills the consumer's requirement
within the specified budget, approaches the
customer and provides its services.

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Business - to - Government
B2G model is a variant of B2B model. Such websites are used by
governments to trade and exchange information with various business
organizations. Such websites are accredited by the government and
provide a medium to businesses to submit application forms to the
government.

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Government - to - Business
Governments use B2G model websites to
approach business organizations. Such
websites support auctions, tenders, and
application submission functionalities.

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Government - to - Citizen
Governments use G2C model websites to
approach citizen in general. Such websites
support auctions of vehicles, machinery, or
any other material. Such website also
provides services like registration for birth,
marriage or death certificates. The main
objective of G2C websites is to reduce the
average time for fulfilling citizen’s requests
for various government services.

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Opportunities of E Commerce
Commercial

Social

Entertainment
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 Commercial Opportunities ..

Property Good’s Sale & Delivery of Electronic Banking & Insurance

Import & Export Transportation
Transactions Purchase Goods Payments Money Trfr Business

International Online Share Mutual Funds & Online Tourism & Hotel Payment of Renewal of
Taxes Payment
Finance Trading Public Issues Depositories Industry Services Licenses

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Social Opportunities
Statistics / Data
Mining & Data
Analytics

Online
Submission of
Education &
Taxes / Bills
Training
Sharing
Research work
– Academic /
Industrial &
Scientific
Online Medical
consultation &
practice

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Entertainment & Other Opportunities
E Ticketing
for Cinemas /
Concerts /
Matches etc

Online Games
& Events

Refresher
Courses &
Digital
Education

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Structure of E
Commerce

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Topics to be covered

LOREM IPSUM DOLOR SIT NUNC VIVERRA IMPERDIET PELLENTESQUE HABITANT

AMET, CONSECTETUER ENIM. FUSCE EST. VIVAMUS MORBI TRISTIQUE
ADIPISCING ELIT. A TELLUS. SENECTUS ET NETUS.

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