CSR Project
CSR Project
INTRODUCTION OF E-COMMERCE
OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
TYPES OF E-COMMERCE
DIFFERENCE BETWEEN E-COMMERCE & E-BUSINESS
OPPORTUNITIES OF E-COMMERCE
CHALLENGES OF E-COMMERCE
NEED FOR THE STUDY
CONCLUSION
BIBLIOGRAPHY
REFERENCE
Introduction of E-commerce
The term E-commerce was coined back within the 1960s, with the rise of electronic
commerce i.e. the buying and selling of products through the transmission of knowledge
which was made possible by the introduction of the electronic data interchange. E-
commerce has changed the way society sells goods and services in the last fifty years.
Simply put, E-commerce is the use of an electronic platform for business transactions. It is
also known as a 'Virtual Market Place.' E-commerce has become a significant business
process for Global organisations and Multi- National Companies. The use of an electronic
medium to conduct commercial transactions is referred to as electronic commerce (or e-
Commerce). A client who purchases on the online is known as a cyber consumer. E-
Commerce isn't only limited to online sales, but also covers: preparation of estimates
online, consulting of users, provision of an electronic catalogue, point-of-sale access plan,
real-time management of product availability (stock), online payment, delivery tracking,
and after-sales service.
Research Methodology
The foregoing aims were met using secondary sources, existing literature, reports, and data.
The data came from a number of sources, including books, reports, periodicals, and websites.
Data from the study has been analysed, and data interpretation is based on rigorous exercises
targeted at accomplishing the study's objectives and prior studies' conclusions, with a focus on
qualitative rather than quantitative terms.
Evolution of E-commerce
Commerce has evolved over the countries. Prior to the evolution of money, there was a
simple "barter process" in which things could be exchanged for example, milk for grains.
With the evolution of money came the concept of a "marketplace." Commerce in a
marketplace is a function of the four P's, i.e. Product, Place, Price, and Promotions. All
four of these elements are necessary for a transaction to take place. The various forms of
commerce are determined by different combinations of the 4P’s. Once the marketplace
came into existence, a few pioneers realized that people would be ready to pay extra if
they could deliver products to the customer’s doorstep. A slight modification in price and
place led to the convenience of getting products at their homes. This concept delighted the
customers and then the concept of “Street Vendors” was born. When the postal system
was established, sellers decided to focus on the new opportunity and began using mailers
with product descriptions. It gave rise to the idea of "Mail Order Cataloguing." From here
the evolution of the “Teleshopping” networks was thus inevitable with the development of
media vehicles. The most recent generation of commerce is done through the use of the
internet. The Internet provides a virtual platform where sellers and buyers can come in
contact for the sale and purchase of goods and services. They could be thousands of miles
apart, from different parts of the world, and speak different languages
Figure 1.1: Why do people buy online?
1. Business to Business(B2B)
This type of e-commerce includes all electronic transactions for goods and services
between two companies or businesses. They are not engaged in any sales to the
consumer public.
The above diagram explains the B2B model. There are 3 businesses wholesaler,
manufacturer, and retailer. Here manufacturer has a website using which wholesalers
can purchase products from the manufacturer. When a wholesaler places an order on
the website, the manufacturer receives the order information through the website.
Then after processing the order, the manufacturer will send the product to the
wholesaler. After receiving the products wholesaler can sell them to the retailers.
One can view products on the websites like Amazon, and Flipkart and can order them.
After receiving the order, the selling company of the products processes it and sends it.
Here a business company is selling their products to the customer with the help of an
e-commerce website.
In this business model, individual customers offer to sell products or services to the
companies who are prepared to purchase it. For example, if person is a software developer,
then one can show a demo of persons software or skills that one has on the sites like
freelancer, fiverr etc. If a company likes software or skills then the company will directly buy
the software from that person or can hire for their services
This consists of electronic product and service transactions between two customers.
These are mostly carried out via a third party that provides an online platform for these
transactions. For e.g. Sites, where old items are bought and sold, OLX, eBay etc.
Businesses can use the B2G business network to compete in government auctions, tenders,
and application submissions.
6. Consumer to Administration (C2A)
E-commerce E-business
1. E-commerce is a digitally enabled E-business is a digital enablement of
commercial transactions between transactions and processes within a
and among organizations and firm, involving information system
individuals. under
firm’s control.
2. It conducts commercial transactions. It carries out business transactions
E-commerce requires the use of the E-business requires the use of the
internet for the connection of the extranet, intranet and internet
3.
external environment
4. E-commerce is subset of E-business. E-business is superset of E-commerce.
5. E-commerce usually requires the E-business involves the use of CRM'S,
use of just a website. ERP'S that connect different business
processes.
1. Online Storefronts
2. Online Marketplaces
1. Online Storefronts
a. Magento
● It’s available as a free download - this means that one can download it
● It’s available as a hosted service – this means that one doesn’t have to
install anything on own, but there’s also a much higher price tag.
● Inventory management.
● Coupon management.
● Customer groups.
b. Oracle Commerce
c. Shopify
Shopify includes features that allow you to sell online, on social media, and in
person. It allows merchants to build and customise their e-commerce site using
simple interfaces and templates. It also includes inventory management,
reporting, buy buttons, and other features. It also has social selling features for
those who use sites like Facebook and Pinterest. Monthly billing is used for
payment plans.
beginners
● The whole tool is very affordable, so it’s an attractive choice for small
businesses that are just starting out and want to minimize on costs.
advantage of, so you don’t have to hire anyone to help you with the
store.
d. WooCommerce
e. BigCommerce
● Banners
● Coupon Codes
● Accept all major credit cards, as well as PayPal and Amazon Payments.
● iOS, Android and smartwatch apps make it possible to manage your store
on the go.
● Secure hosting.
● PCI compliance.
2. Online Marketplaces
a. eBay
The goal of any eBay business owner is to become a Power Seller. These
seller’s standout from the crowded marketplace and are recognised for
providing a high-quality service and excellent professionalism throughout the
year. eBay created this programme to reward businesses that strive for
complete customer satisfaction at all times. To become a Power Seller on
eBay, your company must be registered and meet the eligibility requirements.
b. Alibaba
c. Fiverr
In the first stage, one has to take the biggest decision i.e. which product one wants to sell,
this is touted to be the most challenging decision which one has to take. After selection of
product is done, one wants to sell over the internet one has to register thebusiness and
have to set them all up.
Then the second step comes choosing a fabulous domain name of one’s online store,
which will describe the business that would have the catchy name with which the
customer will relate to them, far easier.
After selecting a domain name, it is necessary to determine whether the desired domain
name is available for the ecommerce store, if it is, then what can be awesome than that,
elsecheck for the other.
The next step after buying the domain for one’s ecommerce is purchasing the hosting
services to setup the ecommerce store, find the compatible ecommerce choices in order to
work. In this Magento ecommerce will help in listing the items, set the suitable price for
them andalso adding the shopping cart to the website.
After one have selected and registered the name of the business and have also purchased
the hosting services the next step towards the making of one’s online store comes the
making of a fanatic, the eye-catching amazing logo which would act as a symbol of one’s
e-commerce business.
The next step after following the four comes, the most important one that is designing a
website for the e-commerce business. Where one has to first design a blueprint or
prototype of the website one wants which is sketched into the mind. Now a day’s people
prefer to use
WordPress and WooCommerce for it A great website that engages the user attracts more
visitors and traffic to the website; in other words, a great and beautiful website plays an
important role in Ecommerce SEO
After creating a website prototype by designing it with outlines, the second and most
important phase begins, which is website development. In this step, the site is developed
with the help of website developers those give the ideas a new life and make the
imagination real. The functionalities are added to that ideas and hence the end result gives
one a perfect running ecommerce store.
The digital marketing phase is the seventh step after the development phase is completed.
At this point, one has to decide how one want to introduce that product or business in
front of the customers. The marketing of the business digitally is done with the
Ecommerce SEO, SMO, SEM. SMO stands for social media optimization, and it is
carried out through a Facebook ads campaign that also includes Instagram, a YouTube ad,
and the use of Google ads. Following the completion of the website, the next critical step
is to comprehend search engine optimization, also known as Ecommerce SEO.
The final and most important step is to build an online store with a better understanding
of Ecommerce SEO, in which one must write a valuable and compelling product
description for the business. Where the e-commerce business is launched on the social
platform over social media as everyone has become so much connected to the world of
social media like Facebook, Twitter, Instagram and other websites where they give new
business a chance to get introduced to the audiences, as without marketing the customers
would be limited to a specific area, so building a marketplace for the new business is
essential for the global reach.
E-commerce Industry in India
E-commerce in India is the world's fastest growing economy. Even though ecommerce
was used in India prior to the 1990s, its contribution was insignificant. Recently a lot of
blue-chip PE firms have invested a huge money on India e-commerce as there is
significantly huge potential and opportunity to success. In India, 100 percent FDI is
permitted in B2B e-commerce, demonstrating the government's intention and contribution
to the Indian e-commerce industry. When it comes to the e-commerce industry in India,
the growth of e-commerce in India is highly dependent on the following sub-factors that
have an impact on the Indian economy. Some of these factors are:
● Unmatched FDI
● Uniform GST
The Indian e-commerce industry has been on an upward trajectory, and it is expected to
surpass the United States to become the world's largest E-commerce market by 2034.
Internet has become important part of major population mainly because: -
● Increase in netizens
Starting with Artificial Intelligence i.e. AI is a branch of computer science that focuses on
creating intelligent machines that work and react like humans. It is capable of manipulating
and moving objects. The majority of people associate it with the term "robotic." Now, AI is
making a splash in ecommerce now too, as its technologies really help to stand out from the
crowd in the competitive online retailworld. This is because customer wants according to
their comfort, choice and preferences and sometimes it is tough to explain this so for this AI
is what e- commerce needs. Retail brands are expected to use AI throughout the entire
customer journey in the future, as technology becomes more democratised: for visual search,
recommender systems (to exactly match users' personal taste, shopping personalization, and
even for virtual buying assistants that can be pre-set to purchase on a customer's behalf if a
beloved product goes on sale.
Chatbot is also known as smartbot, talkbot, chatterbot, Bot, IM bot, interactive agent,
conversational interface, Conversational AI, or artificial conversational entity. It is basically
a computer program designed to simulate conversation with human users, especially over the
Internet. So, this chatbot helps to use in restaurants, cafeteria to take order with the
preferences of the customers. Like it helps to skip the lines, make an order as soon as
possible, and have a name spelled correctly on the cup. So, the bottom line is:
Nowadays instant, fast delivery is needed by the customer. Same-day delivery is quickly
becoming huge not only because people appreciate the efficiency, but also because it
combines the best of brick-and-mortar i.e. getting products right here, right now with the
best of e-commerce. For e.g., Amazon introduced the same-daydelivery option to its Prime
users in some of the cities.
4. Get new customers from loyal fans
The best way to attract more of these ideal customers is to make it simple and
worthwhile for them to refer their friends. The immediate network is full of people
just like them, and those are the people who will buy and buy again. There are lots
of good products out there to help one manage a referral program.
Assume that no one really needs what one sell, because they probably don’t. In a
little over 25 years, market gone from an economy based on scarcity of goods and
services to one that offers unimaginable abundance. There’s very little one can sell
that can’t be gotten elsewhere. Completely differentiate one’s customer
experience and make sure it’s remarkable. Products come and go, but there is
always a demand for truly exceptional experiences.
Credit card companies have been doing this for years, but products are finally
recognising the benefits of providing a points system. Rewards programmes are a
great way to stay in touch with customers and build loyal fans, much like the
rewards programme at their favourite lunch spot that they keep returning to
because they are so close to that free lunch.
There are numerous other places where people can see your packaging, including
the following:
Packaging can be a great tool because it puts one’s business’s brand (and
hopefully website link) in front of new and repeat customers. This opens the door
to a slew of new sales opportunities.
Challenges of E-commerce
If you place an online order in India, the logistics company will almost certainly
contact you to inquire about your exact location. Clearly, your address is
insufficient. This is due to the lack of standardisation in the way postal addresses
are written. Last-mile logistics issues exacerbate ecommerce logistics issues.
b. Legal barriers
Many e-commerce ventures have had to close their doors due to legal violations.
The rapid growth of e-commerce also raises new legal issues, giving rise to e-
commerce challenges in India. These are important to be aware of as an online
seller.
c. Cash on delivery
Instead of making online payments, Indian online shoppers prefer to place 'cash on
delivery' orders. Though the COD option increases sales, it is also a risky option
for sellers because some customers may refuse to accept goods at the time of
delivery for a variety of reasons. Fake buyers are also a source of frustration for
sellers, causing them to lose money.
There are some areas where internet access is limited and people do not use
smartphones. As a result, these customers are unable to purchase online. This is
something that sellers have no control over.
e. English specific
The software so far in the country is English specific. However, in order for e-
commerce to reach small businesses, it must be available in the languages
(regional) of the small business owners, allowing them to integrate e- commerce
processes into their operations. The sooner it is completed, the easier it will be for
small businesses to adopt e-commerce.
Online Seller Finance in India
The online selling industry has enormous growth potential. It is critical to respond quickly
to a business opportunity. To achieve unprecedented growth on B2C marketplaces, it
requires a finance partner who can provide with the right credit solutions for the business.
"Online Seller Finance" is the financing option that has been sought in order to
exponentially increase marketplace sales. It is intended to meet the needs of the business
in a timely and efficient manner.
Features:
Avail Funds from ₹1 Lakh - ₹1 Crore
With Online Seller Finance, one can be eligible for credit of up to INR 1 Crore, ensuring that
one is never too short of funds.
Online Seller Finance has partnered with leading e-commerce marketplaces that align with
the company's goals. This facilitates the possibility of greater growth across various
marketplaces such as Amazon, PayTM, Snapdeal, Myntra, Shopclues, eBay, Craftsvilla,
Jabong, and others.
A mere 10 minutes of a time is all it takes to apply for Online Seller Finance. Just fill in the
details and upload the necessary documents.
72-Hour Disbursal
The data-driven competencies and team of highly skilled professionals assess the
creditworthiness optimally, and disburse credit within three working days.
No Pre-Closure Charges
An important feature of this product is that it doesn’t charge any penalty for closingthe loan
before the completion of the repayment period. One can pay the remainingbalance of the
loan amount before the end date of the loan tenure without worryingabout additional
charges.
To finance potentially lucrative opportunities, Online Seller Finance allows one to avail
credit up to twice of one’s monthly sales across marketplaces. This way, one can always
have enough funds to finance revenue growth as sales increase.
Benefits:
One can apply for Online Seller Finance from the comfort of one’s home or office.
All one need is a computer system or a smartphone with an internet connection.
One can download mobile app from the Play Store or the App Store. This app is
packed with features which will add to the convenience.
Where banks and NFBCs have monthly EMIs, Online Seller Finance allows one to
repay on a fortnightly basis. This way, one wouldn’t feel burdened by hefty
instalments at the end of the month and are able to manage cash flows as per the
business requirement.
4. Zero Collateral
Eligibility Criteria:
The eligibility criteria for Online Seller Finance is fairly simple, and doesn’t require to
pledge any assets in order to access credit.
● Receive the best working capital finance offer that is tailored to the business
Consumers are demanding digital Retailers must meet these consumers where they expect to
find them which means delivering a great ecommerce experience that’s easy to use and
trustworthy which also Offers a wide range of competitively-priced products and provides a
seamless journey from purchase to fulfilment. To be ahead of the competitors Faced with such
overwhelming demand from consumers the retailers are moving quickly to evolve and
enhance their online offerings. This drive for innovation and optimisation in order to achieve
digital leader status is further raising expectations of ecommerce platforms. Consumer
expectations today are driven by the very best interactions they experience from across the
web to deliver ecommerce websites with the strong pulling factor needed to secure
engagement, conversions and repeat visits. Reduces costs and helps to grow more revenue
Without the high overheads of bricks-and-mortar premises and in-store staff. Ecommerce
platforms are a cost-effective alternative or complement to physical stores. Making useful
product and policy information clear on the site also encourage increased customer self-
service, reducing pressure on customer service teams.
This requires a strong focus on accessibility to ensure all customers have the choice over how
they interact with brands, and can find the information they need in a way that works for
them. Innovative retailers are using artificial intelligence to adapt to individual interests and
preferences, help customers achieve their goals, and enrich the experience Focusing on
bottom-line benefits, investing in an ecommerce platform can help deliver you higher basket
values and more return visits, by offering a convenient way for the customers to buy products
and services from them.
Today’s businesses must always strive to create the next best thing that consumers will
want because consumers continue to desire their products, services etc. to continuously be
better, faster and cheaper. In this world of new technology, need to accommodate to the
new types of consumer needs and trends because it will prove to be vital to their
business’s success and survival. E- commerce is continuously progressing and is
becoming more and more important to businesses as technology continues to advance and
is something that should be taken advantage of and implemented. From the internet and e-
commerce, the possibilities have become endless for both businesses and consumers.
Creating more opportunities for profit and advancements for businesses while creating
more options for consumers.
With the development of computer technology, the World Wide Web has become the
connection medium for the networked world. Computers from locations that are
geographically dispersed can talk with each other through the Internet. As with any new
technology, there are positives and negatives associated with its use and Adoption.
Finally, an e-marketplace can serve as an information agent that provides buyers and
sellers with information on products and other participants in the market
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