Introduction to E-

commerce
Module 1
Topics
• Meaning, Importance, Evolution of the concept.
• E-Commerce: Technology, Business, Society.
• Difference between e-commerce & e-business, features.
• Types of E-commerce: B2C, B2B, C2C, M-Commerce &
Social- E Commerce.
• Elements of business model, B2C Business Models, B2B
Business Models,
• E-commerce Business Strategy-
• Trends in E-commerce.

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TRADE VS
COMMERCE VS
BUSINESS

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Commerce Vs Trade
• Trade stands for selling and buying goods in
exchange for money. Two or more parties are
involved in it.
• However, commerce stands for the entire process
of delivering products from manufacturers to
consumers.
• It comprises factors like transportation, banking
and insurance, warehousing etc.

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Commerce Vs Business

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Meaning
4 technology pillars
E-Commerce involves the use of the Internet, Web, Mobile
apps, Browsers.
Internet - worldwide network of computer networks
Web – is one of internet popular services, provides access
to billion of webpages
An App is an software application
Browser - a software program used to locate and display
information on the Internet or an intranet. (search engine
is different – google is a search engine )safari is a browser)

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 E-Commerce
a software program
used to locate and
display information An App is an
on the Internet or software
an intranet. application

Internet - worldwide network of computer

networks
Web – is one of internet popular services,
provides access to billion of webpages

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Meaning

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Importance
• Ubiquity
• Global Reach
• Universal Standards
• Richness
• Interactivity
• Information Density
• Personalization/Customization
• Social Technology

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1. Ubiquity

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2. Global Reach

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3. Universal Standards
• Technical standards of the internet , shared by all the
nations around the world. / traditional commerce
technologies different from one nation to another
nation .
• Low market entry costs
• Reduce Search Costs
• Price Discovery
• Network Externalities – (Network externality is an economics term
that refers to how the demand for a product is dependent on the demand of
others buying that product. In other words, the buying patterns of consumers are
influenced by others purchasing a product.)

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4.Richness
• Information Richness – content of message
(video, audio ,text messages.
• Richness in the msg but the reach become more
simpler .

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5.Interactivity
• Two –way communication (in traditional it was
there but now they are working on it).
• Common forums, social sharing (Ex: Like, share,
3ddimensions, AR,VR)
• Chatting – Chatbot.

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6.Information Density
• Total amount and the quality of information
available (Traditional people hesitate to give the
information )
• Ex: Price Comparison, Product details, similar
products, suggest the size

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7. Personalization
/customization
• Designing the product based on the preference of
the customer
• Ex: Lenskart

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8. Social Technology
• Enables used to create content about the product
and share it in social media.

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Difference b/w E- Commerce & E-Business
E-Business E-Commerce
Running a business using internet Trading of Merchandise over
internet
Broader Concept Subset of E-business
Business Transactions Commercial transactions
Transactions are not limited Transactions are limited
Internet , Intranet , Extranet are Internet only used
used
Requires ERP,CRM, APPs Websites & Apps
Not limited to monetary Limited to monetary transactions
transactions but also marketing , only
operations, SCM.

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Types of E-Commerce
• B2C E-Commerce
• B2B E-Commerce
• C2C E-Commerce
• Mobile – E –Commerce
• Social E-Commerce
• Local E-commerce

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B2C E-Commerce
• Online Businesses Selling to Individual
Consumers
• From 1995, this is most familiar type E-
commerce which is encountered by consumers.
• B2C has different business Models

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First in india
• Fabmart.com
• K Vaitheeswaran started India's first e-commerce website
Fabmart.com back in 1999. Before there was Flipkart, Myntra, and
Snapdeal, there was Fabmart.
•

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First in world
• the Boston Computer Exchange
• In 1982, the Boston Computer Exchange (BCE)
marked the launch of the world's first
eCommerce company. As an online marketplace,
BCE enabled people to buy and sell used
computers.

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1. B2C E-Commerce

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B2C Business Models
1. E-Tailer i. Virtual Merchant
ii. Bricks & Clicks
iii. Catalogue Merchant
iv. Manufacturer-Direct
2.Community Provider

3. Content Provider

4. Portal i. Horizontal (General)

ii. Vertical (Specialized)
iii. Search
5. Transaction Broker

6. Market Creator

7. Service Provider

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i. E-Tailer/E-Retailer
Online distribution channel for a company that also
has physical store.
4 types
•Virtual Merchant
•Bricks & Clicks
•Catalogue Merchant
•Manufacturer-direct
EX: Reliance Trends, BATA, Westside, Fasttrack
Tanishiq etc…

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Virtual Merchant
Online version of retail store where customers can
shop at any hour of the day or night.

b)Bricks & Clicks

Online distribution channel for a company that
also has physical stores.

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• D. Manufacturer to Direct
• Manufacturer uses online channel to sell direct to
customer .

• Ex: Nike, Boat, mamaearth, Bata

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2.Community Provider
• Advertising
• Subscription
• Affiliate Referral Fees (3rd party products and
services has been promoted in the site)

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3. Content Provider
• Netflix
• Spotify

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4. Portals

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5. Transaction Broker

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• Monster is a global leader in connecting people and jobs–
• In india - Naukri
• Skyscanner Ltd. is a search aggregator and travel agency
based in Edinburgh, Scotland.
• Wotfi – gamming

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6. Market Creator

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7. Service Provider
• Envoy Global
is a global immigration services provider offering
the only immigration management platform that
makes it seamless for companies to hire and
manage an international workforce.
• Ex: Medlineplus in India .

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B2B E-Commerce

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B2B E-Commerce Models

1. Net market place i. E-distributor

ii. E-Procurement
iii. Exchange
iv. Industry Consortium
2. Private Industrial
Network.

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B2B Business Models

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B2B e-commerce includes the following business
process (knowing Purpose)

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2 models
• NET MARKETPLACE
• PRIVATE INDUSTRIAL NETWORK

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Net market place
• Internet enabled marketing , distribution and
sales systems (b/w one company to another)
• Types
• E-distributor
• E-procurement
• Exchange
• Industry Consortium

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1. Net Marketplace

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i. E-Distributor
Single –firm having in online .
Specifically for Retail and Wholesale store.
(Cisco Systems).
Cisco develops, manufactures, and sells
networking hardware, software,
telecommunications equipment and other high-
technology services and products.

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ii. E-Procurement
• Electronic procurement, also known as e-
procurement or supplier exchange, is the
process of requisitioning, ordering and
purchasing goods and services online. It is a
business-to-business process.
• Direct – to manufacture steel products , steel is
the direct good
• Indirect – relating to that steel(maintenance ,
shipping, importing charges )

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Difference between
• Purchasing, a part of procurement, is more
transaction-focused, dealing with the buying and
receiving goods. On the other hand, procurement
is an all-encompassing process, dealing with
supplier selection, risk management, contract
negotiation, and even supplier performance
evaluation.

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iii. Exchange
Ex: Go2paper
•Software solution technology for the management
of paper orders, inventory and print quotes for
print and paper buyers and suppliers.
•In an era of technological innovation and exchanges built to facilitate activity among the
paper industry supply chain, it was recognized by the founders of Go2Paper that a
practical yet effective tool did not exist to manage the communication and process needs
of paper manufacturers, printers, converters, merchants, and most importantly the end
user. The paper industry veterans of Go2Paper have used their own day-to-day market
experiences built upon the dynamic and volatile nature of locating supply, effectively
pricing and managing paper resources to create a suite of services that will be your
solutions to buying, selling, and managing your paper inventory.

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iv. Industry Consortium

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2. Private Industry Network
• Company –owned network.
• That company coordinates the supply chains
with a limited set of partners.

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• C2C
• Amazon , OLX, Ebay,

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• Local –E-commerce
• Ex: Groupon, Inc. is an American global e-
commerce marketplace connecting subscribers
with local merchants by offering activities, travel,
goods and services in 13 countries
• Meesho, Myntra…..many other

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Mobile E-Commerce
M-commerce – Mobile e –commerce
Mobile Commerce
Apple Pay, Google Pay and Samsung Wallet. Examples of m-commerce use in
specific industries include the following: Financial services.
•Use of mobile devices to enable the online transactions
•Retail on M-commerce reached almost 3 trillion in 2020.
•Now its reached 4.5 trilllion in 2024.
•It is also called as conversational Commerce. Involves, use of chatbots on
mobile messaging apps suchas FB messenger, mail, whats app etc.
•Mobile banking, mobile shopping

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Social E-Commerce
• Enabled by social networks and online social
relationships.
• Often Interwined with m-commerce.

• Facebook , Instagram , Pinterest

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Local E-Commerce
• Engaging the consumer based on his or her
current geographic location
• Local Merchants use a variety of online
marketing techniques to drive consumers to their
stores.

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E-Commerce Business Strategy
• Differentiation
• Cost competition
• Scope
• Focus/Niche Market
• Customer Intimacy

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Differentiation
• Opposite – commoditization (a situation where
there is no difference between product and
services).
• But there is a difference in price only.

• Ex: Clothing – what are the differentiation a

competitor can bring in and play in the market ?
• Quality , making , design , ……..

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• The solution is to differentiate your product and
serives and to create a monopoly-like situation
where you are the only supplier

• Ex: TATA
• Croma – Electronics and Home appliances
• Voltas – Electronics and home appliances

• Zudio – smaller – have more casual feel

• Westside – Larger – have more upscale/Luxury feel

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E-Commerce Differentiation
• Ubiquity
• Global reach
• Richness & Interactivity
• Information density

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2. Cost competition

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Value chain
• Inbound (Receiving , Storing , distribution)
Replaced with Dropping shipping
• Operations (Resources & Transfer)
• Outbound (Storage, Collection)
• Market & Sales (Branding, social, engage)
• Services (services after sales, Maintain values)

• Backward Integration & forward Integration

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3.Scope
• Strategy is to compete in all markets around the
globe rather than merely in local , regional or
national Markets.
• Apple I devices

• (Global Reach , Universal Standards, and

ubiquity)

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4.Focus/Niche Market
• Competing with narrow market or product
segment
• Firms can leverage richness and interactivity to
create highly focused messages to different
market segments.
• Information density

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5. Customer intimacy
• Customer intimacy, strong ties with the customer,
(switching costs will be reduced).

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• Artificial Intelligence AR
• Social Commerce
• Voice Assistance
• Buy now Pay later
• Omni Channel Retail
• Global Market
• E-CRM
• Sustainability

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• B2B e-commerce
• Mobile Commerce
• Social Commerce
• Chatbots
• Live Commerce
• Subscription Models
• Personalization

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