What is e-commerce?

E-commerce (electronic commerce) is the buying and selling of goods and

services, or the transmitting of funds or data, over an electronic network, primarily
the internet. These business transactions occur either as business-to-business
(B2B), business-to-consumer (B2C), consumer-to-consumer or consumer-to-
business.

The terms e-commerce and e-business are often used interchangeably. The term e-
tail is also sometimes used in reference to the transactional processes that make up
online retail shopping.

E-commerce or Electronic commerce is termed as selling and buying behaviour of

products and services over the internet. It is also referred to as the sales of different
items on the marketplaces in which money transaction activity takes place. There
are many e-commerce marketplace like Amazon, Flipkart, Paytm, Snapdeal,
Shopclues, etc. in which commercial transactional activity is going on.

How does e-commerce work?

E-commerce is powered by the internet. Customers access an online store to
browse through and place orders for products or services via their own devices.

As the order is placed, the customer's web browser will communicate back and

forth with the server hosting the e-commerce website. Data pertaining to the order
will be relayed to a central computer known as the order manager. It will then be
forwarded to databases that manage inventory levels; a merchant system that
manages payment information, using applications such as PayPal; and a bank
computer. Finally, it will circle back to the order manager. This is to make sure
that store inventory and customer funds are sufficient for the order to be processed.
Scope of Ecommerce
 The scope of ecommerce is really good now and in the future also because
of more number of online users on the internet.
 The scope of ecommerce is expanding day by day due to the heavy number
of internet users all over the world. People are spending more time in doing
online shopping for various products available on the ecommerce platforms.
According to Demand Sage, 2.14 billion people are shopping through e-
commerce as of 2022. People spend more time online shopping for various
products available on e-commerce platforms. Amazon offers items in almost
every category to all the users. Additionally, It also provides the best
promotion and discounts whenever seasonal sales come. The impact of e
commerce is really good in all the developing countries.

 The scope of ecommerce in India is really good for a long time online

business with trending ecommerce marketplaces.
 Many Sellers are joining the marketplaces like Amazon and Flipkart in order
to get more customers for their business.
 The traffic on these websites is in millions and Indian sellers are seeing this
as an opportunity to generate more revenue.

Reasons For Rising Scope of Ecommerce

1. Business Growth

Every business owner wants to see growth in the business. It seems so easy when
saying it, but it takes dedicated time and effort to see the expansion. Product
vendors and service providers can increase their revenue by making a website of
their own or else list the items on other e-commerce websites to reach the vast
audience. 

Nowadays, businesses have to operate offline and online. Online visibility of

products can generate sales as per listing optimization. It is definitely a good
choice when it comes to affiliating with some influencers in the business niche
category. Social media platforms like Facebook and Instagram play an important
role when choosing the best influencers in the market for increase in sales of
products and services. Influencers have made a good impact in the scope of
ecommerce trends all over the world.
The different sales channels implementation will definitely boost the revenue of
the business and thus It will help all the people in their growth. The scope of
ecommerce in future will see different approaches also when targeting more
number of customers.

2. Different Ecommerce Marketplaces

The Ecommerce marketplaces like Amazon, Paytm, Snapdeal, Shopclues,
Flipkart, etc. have their own policies to operate in the market. By agreeing
with their terms and conditions, Sellers can list the items in almost every
category they are interested in. Creating more listings in the inventory also
makes it possible to get good sales on the ecommerce platform. This is one
of the best opportunities sellers will get to showcase their products to large
audiences.
3. Offers and Discounts
Offers and discounts are also one of the reasons for soar in scope of ecommerce
industry. People look for huge discounts and special promo codes when they want
to shop online. As a result, they visit numerous ecommerce sites to get the best
deal for them. Online sellers can promote their products on instagram and facebook
with coupon codes and target the audience to generate the additional sales.

Big Brand E-commerce platforms periodically send emails to all their subscribers
to let them be notified about the latest deals and upcoming offers. This task is very
necessary for getting more and more customers to the deal pages. The future scope
of ecommerce will experience more advancement in gathering customers.

4. Fast Shipping
There are many shipping service companies which deliver the items in a very short
amount of time. However, sellers have to pay high fees for it. Customers generally
want their products to arrive in a very short period of time. Nowadays, the delays
in shipping only happen because of bad environmental conditions. The shipping
service companies have good manpower to process all their operations in a timely
manner.

It is always a good idea to go with the best shipping partner when dealing in an
ecommerce platform. As an ecommerce seller, you must have to process all the
orders within 24 to 48 hours. Shipping is also a big reason in the scope of the
ecommerce sector. 
For Timely shipping, It is always advisable to have the correct address in the
customers account panel. 

5. Customer Service
Customer service is what it takes to last long in online business. If proper service is
provided to the customers then it will certainly boost the customer satisfaction in
the customers mind. As soon as the product is delivered to the customer, It is
always recommended to send the feedback and rating emails so that you can
understand the user experience and also make some changes in product
improvement with feedback.

Whether you sell products on an ecommerce website or on your own website,

customer service is very important which will definitely provide a virtual customer
touch to understand the product satisfaction and needs.

6. Reach to More Audience

The best advantage of having your own website or on the ecommerce

website is that your business is not limited to just a single place. The
customers can visit your website through any part of the world and purchase
your items or services. There are people all around the globe who regularly
shops online. Social media have played a huge role in expanding e-business. 
7. Brand Exposure

Brand building is an important aspect whether you are doing an offline business or
online business. Ecommerce marketplace like Amazon has a special advertising
platform through which sellers can advertise their brand not just only products.
This will certainly help in brand exposure. If the seller has done good branding on
their products then It will definitely help in getting more customers coming back
again.

Sellers can sell the items with Generic brand also. But It is better to go with private
branding for the items. The reason for making a brand on the products is that
customers will get to know more about it.

8. Advertising
In the initial stage of selling your products online, Advertising is the best and first
priority option to go with. However, the advertising budget will totally depend on
the sellers. Sellers can generate more sales with advertising. On the other hand
promotion also helps in reaching a larger audience. It is very easy to advertise on
Google, Facebook, Instagram. 

Through advertising any seller can showcase the products on the first page of
search engines or on the e-commerce marketplaces. It is always recommended to
optimize the listings first and then make promotions and advertising tasks.

9. Less Employees

Setting up an online business does not require more employees to execute the
tasks. One or two account managers are enough to operate different marketplaces
at the same time. As the business remains completely online, Customer service is
the prime concern for any business owner. Along with that, It is always
recommended to start the online business on any e-commerce platform with their
policies in mind.

TYPES OF E-COMMERCE

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)
Business - to - Business
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.
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.
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.

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.
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.

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

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.
What Is E-Marketing?
E-Marketing (a.k.a. electronic marketing) refers to the marketing conducted over
the Internet. Two synonyms of E-Marketing are Internet Marketing and Online
Marketing which are frequently interchanged. E-Marketing is the process of
marketing a brand (company, product, or service) using the Internet through
computers and mobile devices mediums. By such a definition, eMarketing
encompasses all the activities a business conducts via the worldwide web with the
aim of attracting new business, retaining current business and developing its brand
identity.

Advantages of e-Marketing

 Ability to target your customers faster and cheaper

 Reduction of marketing costs through automation of electronic media
 Near real-time interaction between the marketer and the end user
 Ability to quantify and collect user data
 One-to-one marketing experience
 Increased interactivity
 Ability to implement marketing strategies in a short time-frame
 Ability to scale with the market
 Appeal to specific interests
 Geo-targeting

Types of E-Marketing

 Search Engine Optimization (SEO)

A search engine’s technology is very sophisticated and uses complex

algorithms to evaluate and rank your website. Search engine optimization
(SEO) is more than just backlinking and adding keywords to your website.
SEO no longer works effectively as a standalone service and now includes
elements of content marketing, social media marketing, user experience
 (UX), PPC, and even information technology (IT). This is where hiring a
good SEO Company is crucial for your growth.

 Paid Advertising 

(PPC) Are your paid advertising (PPC) campaigns managed by a certified

Google Premier Partner? Are your ads A/B split tested to determine key
messaging points? Are you day parting throughout the week to determine the
best cost per conversion? Are you shifting budget strategically throughout
the month based on KPI you set? Are you tracking all contact forms and
calls into your business based on source and medium?

 Email Marketing

Online Marketing, especially email marketing, will increase a Small

Business’ bottom line more than by traditional means.   Beginning an email
marketing campaign is the first step towards freeing up the company or
organizational resources that may be underutilized by other types of
marketing such as direct mail campaigns, print, radio, and television
advertising.  Even if resources are not being dedicated to these types of
marketing, small and medium-sized business owners and entrepreneurs will
want to embark upon an email campaign – because it’s so cost-effective and
the Return on Investment is high if it is done properly.

 Social Media Marketing

 Social Media is a huge part of your digital footprint and leveraging it for
marketing allows you to hyper-target those users who don’t even know they
need your products & services and engage directly with those who already
support your brand.
 An active presence and engagement with customers on social media create
trust and can acquire “brand ambassadors” that will share, like, and even
become advocates for your business. A strong social media presence also
has the added benefit of increasing social signals throughout the web which
helps with SEO.

 Mobile Marketing
 Mobile marketing & advertising is growing faster than all other digital
advertising formats in the US, as advertisers begin allocating dollars to catch
the eye of a growing class of “mobile-first” users.

Importance of E-Marketing
The return on investment (ROI) from E-Marketing can far exceed that of
traditional marketing strategies. Also, the transparency of the internet allows the
marketer to have access to analytics and data in a near real-time fashion which will
allow the marketer to make changes to align with the market’s reaction thus
making E-Marketing a preferred solution for Marketing Professionals.

The Future of Emarket

The electronic marketplace is a global one, and it's changing every aspect of
the consumer-vendor relathionship.
 An electronic marketplace can span two rooms in the same building, or two
continents.
 The marketplace is the place of exchange between buyer and seller.
 How individuals, firms, and organizations approach and define the electronic
marketplace of the future depends on people's ability to ask the right
questions now and to take advantage of the opportunities that will arise over
the next few years.
 The contributors to this volume are prime movers in major industries that are
remaking themselves in order to shape the global marketplace. 

 1) Revenue of $ 3,4 trillion in 2025

 2) Delivery drones

 3) Omnichannel experience

 4) Various payment options

 5) M-commerce on the rise

  6) Experience customization

 7) Visual stimuli

 8) Automated service

 9) Sustainability and social responsibility

 10) Voice search and voice commerce

Electronic Payment System

electronic payments allow customers to pay for goods and services electronically.
This is without the use of checks or cash.

Normally e-payment is done via debit cards, credit cards or direct bank deposits.
But there are also other alternative payment methods such as e-wallets and
cryptocurrencies.

So if you’re looking to move your business online and create an online store, you’ll
need to have an eCommerce payment system in place to accept payments.

Common Methods of E-Payment

As mentioned above, there are a number of ways to carry out an electronic
payment. Here are some of the more common methods.

Credit or Debit Card Payments - When paying by card, an electronic payment

device initiates the online payment transfer. The consumer will have to fill out
their card details and have their transfer cleared by their bank.

Internet Banking - This is done by digitally transferring funds over the internet
from one bank account to another. This method tends to be used by smaller
businesses or freelance workers.
Direct Debit - Direct debit transactions transfer funds from a customer’s account
with the help of a third party.

E-Wallet - An E-Wallet is a form of prepaid account where the customer’s account
information is stored electronically. This means you can quickly and seamlessly
pay for goods online without having to constantly fill out your information.

Store Credit Card - A store credit card is a card that has a prepaid monetary
value. A more common name for this type of payment is a gift card.

SECURITY THREADS WITH ECOMMERCE

E-commerce Security:

 E-commerce Security basically deals with a set of protocols specially designed

for E-commerce platforms to process electronic transactions with security. E-
commerce Security helps to buy and sell goods over the Internet with full
protection and security.
 The absence of E-commerce Security leads to the loss of the banking
credentials of the customers, the leaking of private sensitive information of
users, phishing attacks, stealing of money, and frauds related to credit cards.
 Electronic payment system which is an essential part of E-commerce Security
helps to operate in a user-friendly manner and avoids difficult documentation
procedures and also saves some cost of transactions.
 E-commerce Security enables to provide security to Electronic payment
systems so that they can easily process the data and transfer electronic funds
with security in an easy manner.

Types of threats to E-commerce:

 Tax Evasion: Organizations show the legal paper records of revenue to the

IRS. But in the case of E-commerce shopping, online transactions take place
due to which funds get transferred electronically due to which IRS is not able
to count the transactions properly and there are high chances of tax evasions
by these organizations.
 Payment conflict: In E-commerce, payment conflicts can arise between users
and the E-commerce platforms. These electronic funds transferring systems
might process extra transactions from the users which will lead to a payment
conflict by the users due to some glitches or errors.
 Financial fraud: Whenever an online transaction or transfer of funds takes
place, it always asks for some pin or passwords to authenticate and allows
only the authorized person to process the transactions. But due to some
spyware and viruses used by attackers, they can also process the transactions
of the users by allowing the unauthorized person, which will lead to causing a
financial fraud with the user.
 E-wallets: E-wallets are now an essential part of E-commerce platforms.
Attack on E-wallets can lead to the leak of the sensitive banking credentials of
the users which can be used by the attackers for their own profit. Regulators
tend to monitor all the activities related to the financial security of the money
of the users.
 Phishing:  It is one of the most common attacks nowadays on the users, where
the attackers send emails and messages to a large number of users which
contain a special link in it. When the users open that link in their browser, the
malware starts downloading in the background and the attacker gets full
control over the financial information about the users. They make fake
websites to make the users believe their website and fill out their financial
credentials.
 SQL injections: SQL injections are used by attackers to manipulate the
database of large organizations. Attackers enter malicious code full of
malware into the database and then they search for targeted queries in the
database and then they collect all the sensitive information in the database.
 Cross-site scripting (XSS): Hackers target the website of E-commerce
companies by entering malicious code into their codebase. It is a very harmful
attack as the control of the entire website goes into the hands of the attackers.
It can enable the attackers to track the users by using their browsing activity
and their cookies. For More details please read the what is cross-site scripting
XSS article.
 Trojans: Attackers make software that may appear to be useful before
downloading, but after downloading the software it installs all the malicious
programs on the computer. It collects data like personal details, address,
email, financial credentials and it may cause data leaks.
 Brute force attacks: Hackers draw patterns and use random methods to crack
into someone else’s account as an unauthorized user. It requires the use of
multiple algorithms and permutations and combinations to crack the password
of an account by the attacker.
 Bots: The hackers use a large number of bots on E-commerce websites to
track the competitor in the E-commerce industry rankings and his user’s
buying policies in order to scrap the sales and revenue of the competitor. It
also decreases the ranking of their E-commerce website as compared to the
competitors due to bad experiences faced by the users. It results in overall
price decreasing and less revenue overall in sales.
 DDoS attacks: Distributed Denial of Service (DDoS) attacks are most
commonly used by hackers to not allow original legitimate users to access and
buy and sell products from the E-commerce platforms. Hackers use a large
number of computers to flood the number of requests to the server so that at
one time the server crashes out.
 Skimming: Skimming is a popular method to spread out the malware on the
website’s main pages which are used by a large number of people. It steals and
leaks all information entered by the users on that webpage and all this
information goes to the attacker through skimming.
 Middlemen attack: In this type of attack, the attacker can clearly get all the
information in the conversation taking place between the consumer and the E-
commerce platform itself. The attacker sees the conversation between both of
them and uses this as an opportunity to make the user face some vulnerability.

Prevent threats:

We can prevent the following E-commerce threats in the following ways:

 Anti-malware: We can deploy Anti-malware and Anti-virus  software on all
our computer systems so that we can prevent these conditions to happen. Anti-
malware and Anti-virus software prevent all types of malware and viruses to
infect the data on our computer.
 HTTPS:  HTTPS helps to keep the website data secure from any kind of
digital attack. SSL and HTTPS encrypt all the data of the users which is harder
to crack by the hackers.
 Payment gateway: We can secure the payment gateway used on the E-
commerce websites which very high security and strict policies against
leaking of any financial credentials of any user.