Unit 5

Indian Perspective
Index
1. Benefits of E-Commerce
2. Drawbacks & Limitations of E-Commerce
3. Major Requirements of E-Commerce
4. Emerging Trends & Technologies of E-Commerce
5. Web Security
 Firewall
 Transaction Security

By: Charul Verma

Benefits of E-Commerce

1. Accelerated Time-to-Market
E-commerce platforms are now proficient in handling web hosting, PCI compliance, platform
upkeep, and other things. As a seller, you only need to create an account before you can start
selling on ecommerce marketplaces. This will make your online store presence more
advanced. It will definitely be better than brick and mortar stores.
These SaaS-based eCommerce platforms have made it feasible and easy for business owners
to build appealing and dependable sites with little work during the past few years. In just one
afternoon, you can launch a professional ecommerce website without having much technical
or eCommerce skills. Before you need to think about internal resources or hiring a digital
firm to advance your website, you may even see significant growth.
ECommerce solutions allow you to launch rapidly, and especially if you have a good social
media presence, this would get even bigger by spreading word-of-mouth.
2. Top Potential Customers and Overcome Geographical Limitations
There is no longer a geographic boundary. As long as they have an internet connection,
people can connect from anywhere in the world. Today, there is a technology that allows
everyone to communicate with a business partner in China from a coffee shop in New Jersey,
do clothing shopping online while lying in bed, and even attend a leadership course while on
vacation. There is a fact that physical stores limit your options and operations. The globe is
your oyster when you have an e-commerce website. Every last geographical restriction has
been removed by the introduction of e-commerce.
3. Lower Costs
It is quite certain that online shopping saves a lot of dollars than physical stores. The
decreased cost of online selling is one of its most obvious advantages for businesses to
quickly move the physical store to online business. Retailers and sellers of online businesses
definitely benefited but apart from even the consumers largely benefitted from the discounts.

By: Charul Verma

Customers can receive a portion of these cost savings in the form of price reductions. Some
of the ways that e-commerce can cut expenses are as follows:
 So if you are from an advertising and marketing company, you have a larger scope of
getting benefitted. There are parts such as Google Adwords for Pay-per-click, social
media, and organic search engine traffic are some of the advertising channels that can
be economical.
 The brick-and-mortar store has now migrated from physical stores to online
businesses because of the benefits it offers. The number of personnel needed to run an
ecommerce store is reduced by the automation of checkout, billing, payments,
inventory management, and other operational activities. A conspicuous physical
location is not necessary for an online retailer. This one should be obvious.
4. Variety, Convenience, and Secure Way of Selling Online
ECommerce businesses are capable of giving a plethora of goods, and products online.
Online shoppers can shop from their comfort zones like their homes or offices or any other
convenient place with affordable pricing. There are goods that are made in the USA, China,
England, Paris, the UAE, or any other country in the global online marketplace, that is the
internet. Online retailers offer an unmatched breadth and depth of products.
As seen in this COVID that you can buy anything online. You now inhabit post covid to shop
everything online. Whenever you want something and from wherever you want, it is
preferred and far safer. Putting the coronavirus aside, there’s something to be said about
buying from your bed, avoiding having to go outside, standing in lines, and all the other
hassles associated with consumers.
5. No Time Restrictions
In contrast to conventional stores, which frequently have set business hours, your e-
Commerce website won’t be subject to any time restrictions. The sales system can continue to
operate seven days a week, around the clock. As a result, since access to your products and
services is no longer limited by store hours, you as an e-Commerce business may see an
increase in sales and profits.
The growing use of chatbots in customer support will ensure availability around the clock
without paying for staff to be present. The normal consumer will always value that
availability around-the-clock.
6. Customer Data Insights
Your costs may be decreased via data analytics. You won’t squander your money on fruitless
activities because the analytics help you understand what is profitable and what is not. There
are lots of tools available for data analysis such as Crazy Egg, Google Analytics,
KISSmetrics, etc.
Data analysis opens up new avenues. Numbers conceal the requirements and desires of
consumers, giving you concrete evidence of what they truly want. When you are armed with
the information, change happens in the form of brand building and the introduction of new
products.
Data analytics trends can be useful to improve inventory management. Prior to the invention
of technology, it was challenging to forecast how much of each product will be required at a

By: Charul Verma

particular time, such as the holiday season. Additionally, measured data shows a precise
supply and demand formula.
7. Streamline and Manage the Inventory Management
It is significantly simpler to scale your online business and manage inventory when you have
an e-Commerce website.
To establish an eCommerce store, all you theoretically need is one person and one website,
and then you can expand. Your profit margins will improve as your sales grow. You can
expand your product line and your firm with little additional expense as your revenue grows.
E-commerce websites also make it easy to monitor inventories and modify the product line in
response to general business performance. The bottom line is that you can expand your
eCommerce business as and when your sales increase. For any business owner, managing
your inventory might seem like something you can put off, but doing so could harm your
company. This article will lead you through practical inventory management advice that will
enhance your interactions with retailers.
Optimizing your warehouse layout is another technique to simplify inventory management.
You might discover that having a consistent method better benefits your brand when you
grow your firm to serve additional customers, particularly retail clients and other business-to-
business transactions.
1. For better inventory management, rack and organize all stock.
2. Product updates and listing throughout all sales channels at once.
3. Follow the fulfillment of orders across various sales channels and locations.
4. Continually monitor the rate at which particular products are sold online.
5. Get alerts when a purchase is made or when it’s time to restock critical stock.
6. When you reach your reorder milestones, create buy orders to avoid running out of
stock and missing out on offers.
8. Expanding the Reach for New Customers
Up to 87% of your potential clients will begin their search for particular goods or services
online, to be exact. The present information suggests that online marketplaces are the area
where potential clients are doing the majority of their shopping. Thus your company should
make an effort to meet them there. Pushing a cart through the store, attempting to find the
appropriate aisle, or finding the item are no longer the main aspects of shopping.
There are many ways to expand your consumer base, but consulting with specialists may help
you create effective marketing plans that really resonate with your target demographic.
Additionally, it’s a smart idea to interact with prospects, brand-new clients, and devoted
clients using social media and a number of digital marketing tactics. Furthermore, combining
offline and online marketing strategies increases the visibility of your business among a
wider demographic. You may reach a larger audience with the aid of a multi-channel strategy,
which will also help you boost traffic and sales.
9. E-Commerce Business Can Go Global

By: Charul Verma

Scaling up a business with more floor space and the associated cost, staff, and shelf space is a
tough task. In contrast, one of the less obvious benefits of eCommerce is how easy it is to
expand an online store.
The things you need are digital adjustments, and perhaps more storage space, which is much
less expensive than storefront space. Being online also eliminates the need to establish a new
location because you are already accessible to a worldwide market.
A specialized, constrained audience is served by physical retail, which is geographically
constrained. Your customer base’s location and the areas you can serve are determined by
where you are. Without switching your office-based firm to the Internet, there is no way to
circumvent these geographical limitations and go worldwide.
The problem with eCommerce platforms is that they can turn the entire world into a possible
market for your company, making where you are irrelevant. You can reach and engage a far
wider target audience when you operate on a global basis. It creates extra chances to expand
your clientele, manage your company remotely, and generate revenues before your regional
rivals.
10. Business Growth
With the help of ecommerce, it is simpler to advance and carry out your day to day selling.
Product management costs are lower, you can easily highlight the goods you want to sell,
advertising is more readily available, and there are numerous tips and tricks for generating
more sales.
Keep transparency in mind throughout the process. If you want to grow your business, you
must constantly be sincere with your clients. The reason for this is quite simple.
In order to keep up with the growth of your online store, businesses might have to take a few
steps in favor of their consumers. Start with creating a mobile-responsive website, so it
automatically adapts to different device sizes. You can also run a quick quality check to
ensure all the buttons are easily clickable, displaying the content correctly, and the scrolling is
a breeze. This will improve digital customer experience and ultimately benefit enterprises for
business growth. Businesses can try to streamline the browsing experience, search, and
checkout processes with autofill suggestions to improve the customer experience. Feedbacks
are another essential milestone which contributes successfully to businesses.
Drawbacks And Limitations For eCommerce Businesses?
1. People’s Resistance
One of the main limitations of eCommerce is data security and privacy. In most cases, people
are hesitant to provide their personal and financial details in spite of advanced data
encryption security systems in place.
Moreover, there are some websites that do not have the capability and features installed to
authenticate transactions. As such, there are instances of fraudulent activities. The fear of
providing financial information like credit card details hinders the growth of eCommerce.
2. Lack of Privacy
To some extent, the privacy of a customer is compromised in eCommerce. You need to
provide your personal details, such as an address, telephone number and so on to the
seller. There are still lots of sites that do not have the advanced technology to protect

By: Charul Verma

sensitive information. Moreover, there are also sites that illegally collect consumer statistics
without permission. This is one reason why people get sceptical while using eCommerce.
3. Tax Issue
In the case of different geographical locations, sales tax becomes an issue. Many a time
sellers have faced problems in the computation of sales tax. Moreover, physical stores have a
risk of losing business if online transactions are exempted from taxation.
4. Fear
In spite of the popularity, there still resides an element of doubt in the minds of people when
it comes to online shopping. This is because the customer cannot physically examine the
product and is not sure about the features and attributes. This is why a lot of people prefer
shopping from physical stores.
5. Product Suitability
As already mentioned, it is not possible for people to physically examine the product in
eCommerce. In many cases, the original product may not match the picture or specifications
on the eCommerce site. This absence of ‘touch and feel’ creates a discouraging effect.
6. Cultural Obstacles
As the process of eCommerce encompasses customers across the globe, the habits, traditions
and cultures differ. There may also be linguistic problems and all these may lead to issues
between the seller and buyer.
7. High Labour Cost
In order to get the whole eCommerce and delivery process right, a specialized workforce is
required. To get all these in the right shape, companies have to shed a good amount of money
and employ a talented pool of people.
8. Legal Issues
A lot of legal compliances and cyber laws need to be taken care of in an eCommerce
business. These regulations may vary from country to country. All these reasons deter
businesses from going electronic.
9. Technical Limitations
eCommerce requires advanced technology platforms for better performance. Some
limitations, such as lack of proper domain, network and software issues and so on can affect
the seamless performance of an eCommerce site.
10. Huge Technological Cost
Last but not least; a lot of money needs to be invested to be built up the technical
infrastructure needed to run an eCommerce business. Moreover, they need to be upgraded to
keep abreast with the changing technology.
11. Delivery Guarantee

By: Charul Verma

Many people fear that their product might not be shipped or the website might be a fraud.
Businesses need to work to build customer trust with reviews, testimonials, etc. to add more
value to their website.
In order to minimize these limitations, an eCommerce business should have a proper business
plan and implement them with proper strategies.
12. Cybersecurity Threats
eCommerce businesses and cybersecurity threats are hard to separate. Businesses face an
ever-evolving landscape of cybersecurity risks, including data breaches and hacking attempts.
Safeguarding sensitive customer information and protecting the integrity of online
transactions are ongoing challenges.
13. Marketplace Fee Structures
If you operate your own website, mobile app, or a similar platform, you may not need to be
concerned about this issue. However, for those who sell their products through eCommerce
marketplaces, it’s common to face charges associated with listing products and facilitating
sales. Getting a comprehensive understanding of these fee structures and finding ways to
optimize them can significantly influence profit margins and enhance overall
competitiveness.
14. Customer Retention
Getting new customers can be challenging, but retaining them is often harder. While the
acquisition of new customers holds its significance, the retention of existing ones is equally
important.
Major Requirements in E-Commerce
Step 1. Choose Your Content Management System (CMS)
The foundation of every website is a content management system (CMS). There are a number
of different content management systems to choose from open-source platforms such as
WordPress to beginner-friendly all-in-one website builders such as Shopify or Squarespace.
Which is right for you and your online store will depend on your budget, experience, and
unique e-commerce needs.
Here are the most popular content management systems for e-commerce websites:
 WordPress: The world’s leading CMS that is also one of the most customizable.
 Shopify: An ideal e-commerce solution for building a dropshipping business.
 Squarespace: One of the best website builders for beginners who want to easily build
a professional website with no previous web design experience.
 Square Online: Best for existing retailers that are looking to sell in-person and
online.
 Wix: An all-in-one website builder that is both easy to use and highly customizable.

By: Charul Verma

For help deciding which is the best CMS for your e-commerce needs, learn more about
the best e-commerce platforms.
Step 2. Create an Account (Or Get Web Hosting)
Once you have decided which CMS to use, the next step is to create an account–unless you
choose WordPress. If you are planning to build your e-commerce site with WordPress, your
next step is to get a web hosting plan. The best web hosting services come with a free domain
name, a free SSL certificate and one-click WordPress installation, eliminating the need to
manually connect your domain and hosting to WordPress.
If you’re using a website builder such as Shopify, Squarespace, Square Online or Wix, simply
navigate to the provider’s website and register for an account. If your chosen CMS allows,
register your domain name through the CMS to eliminate the need for manual domain
configuration process.
In the instance where your chosen CMS does not give you the option to get a domain name,
register your domain using a domain name registrar. For help choosing one, check out our
article on the best domain name registrars.
Step 3. Select an E-commerce Theme or Template
The first thing you need to consider is a theme for your website. Themes are ready-made
templates that give your website a consistent look and feel. All subscription platforms have
tons of templates to choose from, so whether you’re building your e-commerce website with
WordPress, Shopify, Wix or anything else, you will have prebuilt templates and themes to
choose from.
Keep in mind that while free templates are generally available across most platforms, some
also offer paid (or premium) templates. For example, both WordPress and Shopify offer
premium themes that range in price from around $30 to over $200. The benefit is that many
offer more unique designs, which can help businesses that want a specific look to reduce the
amount of time spent customizing their chosen theme.
Step 4. Customize Your Site and Build Out Web Pages
After you have found the perfect theme or template for your online store, the next step is to
begin customizing it. This is where you will be updating your header and footer, configuring
your site’s navigation, and building out pages from your homepage to your refunds and return
policy page.
Step 5. Create Product Listings
No online store is complete with product listings. So once you have built out your website,
the next step is to create your product catalog, complete with all of your individual product
listings. In this process be sure to organize and categorize your listings so they are easy for
your future site visitors to find and for you to manage.
Step 6. Set Up a Payment Gateway, Inventory and Tax Tools

By: Charul Verma

After you have populated your e-commerce website, there are a few key aspects of building
an e-commerce site to attend to from setting up a payment processor to adding inventory and
tax tools.
Choose a Payment Gateway
When it comes to choosing and setting up a payment gateway, many online retailers opt for
third-party tools such as Stripe or PayPal to make the process easier and more secure. If you
are redirecting the customer to other websites, you must ensure that the data is fully
encrypted before transfer.
If you are choosing payment integrations, consider these points:
 How easy is it to integrate the tool with your platform?
 Is the tool secure?
 Is the tool PCI-compliant?
 What are the fees you and the customer must pay?
Step 7. Test and Launch Your E-Commerce Site
Before launching the e-commerce site to your customers, you must check the site thoroughly.
Every button and every link on the site must be working. Even 404 error web pages should be
designed according to the theme.
Run tests to see if you can add products to the cart and process the payment. Most platforms
will allow you to test payment processing without charging your credit card. Be sure to check
if all the emails are getting sent to the right inboxes after a purchase has been made or
declined. And last but not least, check how your site looks and functions on mobile devices.
If possible, try to check out the site’s performance on different web browsers.
Once you have tested and double-checked everything, from product descriptions to category
pages, you are ready to launch.
Announce the launch of your e-commerce store through your social media pages, guest posts
on popular retail blogs in your niche, influencer marketing and to your email lists. If you have
the budget, you can also go for paid advertising on Facebook, Google and other platforms.
Emerging Technologies and Trends E-Commerce
Let's take a look at some emerging technologies and trends that are set to shape the future of
e-commerce.
1. Artificial Intelligence (AI) and Machine Learning (ML)

By: Charul Verma

AI and ML are not just buzzwords anymore; they're transforming the e-commerce landscape.
These technologies are helping businesses personalize the shopping experience like never
before. Imagine walking into a store where the salesperson knows exactly what you want -
that's what AI does for online shopping. It analyzes your browsing behavior, purchase history,
and even the time you spend looking at products to offer personalized recommendations.
Moreover, ML algorithms are being used to predict future buying behavior, helping
businesses to manage inventory efficiently. And let's not forget chatbots! These AI-powered
assistants provide round-the-clock customer service, answering queries, and even helping
with product selection.
2. Augmented Reality (AR) and Virtual Reality (VR)

AR and VR are set to revolutionize the way we shop online. These technologies provide an
immersive shopping experience, allowing customers to 'try before they buy'. For instance,
you can see how a sofa looks in your living room or how a pair of glasses looks on your face,
all from the comfort of your home.
Virtual showrooms are another exciting application of these technologies. They allow
customers to explore products in a 3D environment, providing a shopping experience that's as
close to a physical store as it gets.
3. Internet of Things (IoT)

By: Charul Verma

The Internet of Things is all about connectivity, and it's making its way into e-commerce too.
Smart devices are being used to gather data about customer preferences and shopping habits,
providing valuable insights to businesses.
For instance, smart refrigerators can track what items you run out of and automatically
reorder them from your preferred online store. Similarly, wearable devices can provide data
about your lifestyle and fitness habits, helping businesses to offer personalized health and
wellness products.
4. Blockchain Technology

While blockchain is most commonly associated with cryptocurrencies, its application in e-

commerce is equally promising. Blockchain provides a secure and transparent way to track
transactions, making it an excellent tool for managing supply chains.
It can provide a detailed record of a product's journey from the manufacturer to the consumer,
ensuring authenticity and reducing the chances of fraud. Moreover, blockchain can also be
used for secure payment processing, customer loyalty programs, and even creating
decentralized marketplaces.
5. Automation in Logistics and Delivery

The future of e-commerce also lies in how products reach consumers. Automation and
robotics are being used to streamline warehouse operations, reducing errors and improving
efficiency. Drones and autonomous vehicles are being tested for delivering packages,
promising faster delivery times.
Moreover, technologies like AI and IoT are being used for real-time tracking of shipments
and predicting delivery times, enhancing the customer experience.
6. Green e-commerce

By: Charul Verma

As consumers become more environmentally conscious, businesses are also looking for ways
to reduce their carbon footprint. Green e-commerce is an emerging trend where businesses
focus on sustainable practices like using eco-friendly packaging, carbon-neutral shipping, and
selling environmentally friendly products.
Green e-commerce can involve a variety of strategies, including:
1. Selling Eco-Friendly Products: Green e-commerce businesses often focus on selling
products that are environmentally friendly. This could include products made from
recycled or sustainable materials, products that are designed to be long-lasting to
reduce waste, or products that help consumers reduce their own environmental
impact, such as reusable water bottles or energy-efficient appliances.
2. Sustainable Packaging and Shipping: Green e-commerce businesses also strive to
minimize the environmental impact of their packaging and shipping practices. This
could involve using minimal packaging, choosing packaging materials that are
recycled and/or recyclable, and offsetting the carbon emissions associated with
shipping.
3. Energy Efficiency: E-commerce businesses can also reduce their environmental
impact by making their operations more energy efficient. This could involve using
energy-efficient servers for their websites, choosing green web hosting providers that
use renewable energy, or implementing energy-saving practices in their offices and
warehouses.
4. Supply Chain Management: Green e-commerce also involves considering the
environmental impact of the entire supply chain. This could involve choosing
suppliers who use sustainable practices, sourcing locally to reduce transportation
emissions, or implementing a take-back program for used products.
5. Transparency and Education: Many green e-commerce businesses also focus on
educating their customers about the environmental impact of their purchases and
being transparent about their own sustainability practices. This can help consumers
make more informed choices and can build trust in the brand.
By implementing these strategies, e-commerce businesses can not only reduce their own
environmental impact, but also cater to increasingly eco-conscious consumers and
differentiate themselves in a competitive market.
Web Security
Web security is a broad category of security solutions that protect your users, devices, and
wider network against internet-based cyberattacks—malware, phishing, and more—that can
lead to breaches and data loss. It reduces the security risk to your organization when your
users accidentally access malicious files and websites through some combination of firewall

By: Charul Verma

inspection, intrusion prevention system (IPS) scanning, sandboxing, URL filtering, and
various other security and access controls.
Web security protects networks, servers, and computer systems from damage to or the theft of
software, hardware, or data. It includes defending computer systems from misdirecting or
disrupting the services they are designed to provide.
Web security is synonymous with cybersecurity and also covers website security, which
involves protecting websites from attacks. It includes cloud security and web application
security, which defend cloud services and web-based applications, respectively.
Firewall
A Firewall is a network security device that monitors and filters incoming and outgoing
network traffic based on an organization’s previously established security policies. At its most
basic, a firewall is essentially the barrier that sits between a private internal network and the
public Internet. A firewall’s main purpose is to allow non-threatening traffic in and to keep
dangerous traffic out.

Transactional Security
Transactional Security refers to the safe, professional handling of confidential information or
goods during a given business transaction (credit card payments, cashing paychecks, etc.).
Any banking services which play a significant role in the functioning of a banking institution
are known as Transactional Banking, or Transaction Banking. For such services,
Transactional Security enables the safe distribution of money, cash management services, and
other operational needs for day-to-day banking transactions.
Who Typically Handles Transactional Security?
A bank’s Transactional Banking Division is usually responsible, in both corporate and
financial institutes, for providing these services and commercial banking products. Its
functions include cross-border and/or domestic payments, international trade finances and
trusts, risk management, depositary, and other related services. The Transactional Banking
Division of a bank is composed of Trade Finance, Trust & Securities Services, and Cash
Management businesses.

By: Charul Verma