Ecommerce For Business Growth India

ECOMMERCE FOR BUSINESS

GROWTHH O W T O S U S TA I N I N T O D AY ’ S C O M P E T I T I V E M A R K E T.

INTRODUCTION TO E-COMMERCED E F I N I T I O N , E V O LU T I O N A N D M O R E

WHAT IS E-COMMERCE• Also referred to as Electronic Commerce

• Electronic commerce, commonly written as e-commerce, is the trading or facilitation of trading in products or services using computer networks, such as the Internet.

Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail.

TYPES OF E-COMMERCE

B2C

B2C – BUSINESS TO CONSUMERSelling to the general public through shopping cart software, without needing any human interaction.

This is what most people think of when they hear "e-commerce."

Example:

TYPES OF E-COMMERCE

B2C C2C

C2C – CONSUMER TO CONSUMERTransaction of products or services between customers.This takes place within online classified ads, forums or marketplaces where individuals can buy and sell goods.

Examples:

TYPES OF E-COMMERCE

B2C C2C C2B

C2B – CONSUMER TO BUSINESSConsumers (individuals) create value and businesses consume that value.

Example:

• When a consumer writes reviews or gives a useful idea for new product development and if the business adopts the input.

• Excepted concepts are crowd sourcing and co-creation and also, consumers selling to businesses.

TYPES OF E-COMMERCE

B2C C2C C2B B2B

B2B –BUSINESS TO BUSINESSCompanies doing business with each other.• Manufacturers selling to distributors and wholesalers selling to

retailers.

• Business selling services to another business. Example:

EVOLUTION OF E-COMMERCE• From electronic billboards to a personalized shopping experience

EVOLUTION OF ECOMMERCE IN INDIA

When Indians began buying and selling with clicks

• Ecommerce drew India’s attention when eBay acquired bazee.com in 2004.

• The game changer was CASH ON DELIVERY.

• In 2010, Snapdeal’s Marketplace model came into existence.

• Since 2012, Ecommerce in India grew the fastest in Asia-Pacific region.

• By 2014, there were 243 million users and 185 million active mobile internet users.

India’s net access rates are far below world average.

• Individuals using the internet:World 43.4% | India 18%

• Households with internet access at homeWorld 46.4% | India 15.3%

• Active mobile-broadband subscriptions(per 100 inhabitants)World 47.2 | India 5.52

• Fixed broadband subsciptions (per 100 inhabitants)World 10.8 | India 1.24

CHALLENGES FOR GROWTH.

• India has the third-largest Internet user base in the world, with more than 300 million users, of which more than 50% are mobile-only Internet users.

• Mobile Internet users in India to double by 2017.

THE BRIGHTER SIDE…


The Indian digital commerce market is expected to reach

$128 billion in 2017 from current $42 billion

23.5% in 2013

29% in 2018

DIGITAL BUYERS IN INDIA (2011 – 2018)


WHY IS THE DEMAND FOR ECOMMERCE RISING?

• Technology has made it easy to shop online.

• Unlimited choices offered by online marketplace.

• Road traffic is taking the fun out of brick and mortar shopping.

THE DIGITAL INDIA INITIATIVEDigital India is an initiative by the Government of India to ensure that Government services are made available to citizens electronically by improving online infrastructure and by increasing Internet connectivity.

It was launched on July 1, 2015 by Prime Minister Narendra Modi. The initiative includes plans to connect rural areas with high-speed internet networks. Digital India has three core components. These include:

• The creation of digital infrastructure• Delivering services digitally• Digital literacy

(Source: Wikipedia.com)

GOING DIGITAL• What is digital?

• Do you want to take your business digital?

TECHNOLOGY DRIVING BUSINESS CHANGEW H Y A D A P T I N G T O T H E C H A N G E I S E SS E N T I A L

Nokia

TECHNOLOGY DRIVING BUSINESS CHANGE

Blackberry /

CD


DVD CloudUSB Drive

LP


Audio Tapes CD MP3 Cloud

Yellow Taxi


//

Source : Uber instagram pagePhoto by Ron Kurti- Flickr

https://www.flickr.com/photos/kurti/

https://www.flickr.com/photos/kurti/

Books


Travel agent TripAdvisor MakeMyTrip


Bazaar / Supermarket



Friends

DIGITAL MISCONCEPTIONS• My business is a monopoly, there are barriers to entry, I have

no competition• My customers are not online• My employees are not tech savvy• I am not tech savvy

DIGITAL QUESTIONS• What should I do?• How much should I spend?• Who can help me?• Is my business ready?

E - C O M M E RC E M O D E L S A N D S O LU T I O N SF R O M L E A D G E N E R AT I O N T O O N L I N E S A L E S

MODELS OF E-COMMERCE• Sales• Lead Generation• Product Information Availability• Customer acquisition• Customer service

DIFFERENT TYPES OF BUSINESSES…Different businesses have different needs• FMCG• Pharma• White Goods• Industrial Goods• Services

Businesses in different parts of the supply chain• Manufacturer• Importer• Distributor• Retailer• Buyer

…HAVE DIFFERENT NEEDS OF E-COMMERCE• General Marketplaces – Flipkart, Amazon, eBay, Jabong, etc.• Websites / eCatalogues - http://www.samsung.com• Online Stores – Zodiac, Indigo,

https://www.samsungindiaestore.com, etc.• Service Aggregators – Makemytrip, Uber, Grofers, easyfix.in, etc.• eCatalogues and Listing – TradeIndia, IndiaMart

http://www.samsung.com/

http://www.samsung.com/

https://www.samsungindiaestore.com/

MARKETPLACES• Products provided by multiple sellers• Registration of products required – may charge a listing fee• Inventory needs to be provided to the marketplace• May require stock to be placed with a 3PL for management and shipment –

distributor fee• Strict SLA on shipment compliance• Participations in promotions is required to promote sales• Need to ensure high visibility in internal searches and promotions,

competitiveness, ratings• Cash on delivery has risks of non-acceptance, damage risk• Returns policy

MARKETPLACES

• No technical infrastructure required

• Payments are handled by marketplace

• Logistics are provided by marketplace generally

• Traffic and visibility through promotion of the marketplace

• Standardized offering suitable for B2C / C2C e-Commerce

• Marketplace brand is prominent• Pricing is skewed sometimes• High commissions, logistics cost

and promotions• Disconnect between offline and

online sales channel• Multiple sellers and register the

same product leading to conflicts in pricing and specifications

ADVANTAGES DISADVANTAGES

WEBSITES / E-CATALOGUES• Listing of products and specifications• Works for products where online buying would be limited, e.g. industrial

products, products requiring customization, installation services• May provide list of resellers, retailers• Can be built using web templates similar to building a website• Suited for B2B e-Commerce and B2C where online buying is not prevalent

WEBSITES / E-CATALOGUES

• SEO and Digital Marketing tools can be used to drive traffic

• Buyer is not confused by competing brands

• Feedback can be managed• Can be built according to specific

needs• Options can be given for

customized offering, e.g. Ford car website

• Some technical work required along with website hosting

• Transactions have to be managed offline

• Ensure leads are captured and followed up in time

• Gaining visibility on web is difficult

• Regular updates may be difficult


ONLINE STORE• Create your own online store using commonly available tools or a custom

built one• Popular options are Magento, Shopify and others• Magento offers a customizable store which can be on-prem or cloud hosted• Shopify is a cloud based service using which one can sign up and open an

online store in minutes• Payment gateway would be integrated with the store• Can be suited for B2C and B2B e-Commerce• B2B e-Commerce offerings are growing in the market

ONLINE STORE

• SEO and Digital Marketing tools can be used to drive traffic

• Buyer is not confused by competing brands

• Feedback can be managed• Can be built according to specific

needs (Magento – customization)• Buyer can complete transaction

online

• Some technical work required – greater in Magento type stores and little to none in cloud based ones

• Gaining visibility on web is difficult

• Regular updates may be difficult• Ensure high degree of security

and minimal downtime


SERVICE AGGREGATORS• May allow third party services, e.g. Makemytrip, Uber or only their

selected service providers, Easyfix• Service aggregators which allow third party services would charge a

commission on sales• Service quality guidelines are generally strict to maintain quality of the

brand• Payments are collected by the aggregators and passed on the service

provider less commission• Work in a model similar to marketplaces and hence similar advantages

and disadvantages

E-CATALOGUE AND LISTING• Sites providing listing and web hosting services for corporate website,

product catalogues• Unstructured data is permitted with some degree of customization• Search allowed to potential buyer across multiple sellers• Lead generation is the primary aim• Leads may be shared with competitors• Registration is generally free with paid models for higher visibility and

lead sharing options

E-CATALOGUE AND LISTING

• Technical infrastructure is managed by service provider

• Customizable to a certain extent• Generate enquiries and leads

• Unstructured data is permitted leading to poor quality of data in the overall system

• Multiple sellers and register the same product leading to conflicts in pricing and specifications

• Competition products may confuse buyers

• Free listing leads to discontinued products / sellers continuing to show


CONCLUSIONLO O K B E F O R E YO U L E A P

BEFORE YOU JUMP

• Select your model according to your business and customer needs• Work out the logistics including returns• Manufacturers are sometimes not geared to handle small quantity orders

• Inventory and SKU management• How to drive traffic?• Take some time out for your tax advisor – Excise, VAT, CST, Service Tax, Octroi / Entry Tax / LBT• Payment gateways and security considerations• Customer data and privacy protection• Offline infrastructure• Technical infrastructure or cloud

DISRUPT

In the words of ex-CEO of CISCO, Chambers:"Either we disrupt or we get disrupted"

CISCO RETIRING CEO – WEBINAR WITH BUSINESS LEADERS• "40% of businesses in this room, unfortunately, will

not exist in a meaningful way in 10 years," he told the 25,000 attendees, adding that 70% of companies will "attempt" to go digital, but only 30% of those that try it "will be successful."

• "If I'm not making you sweat, I should be," he said.• "It will become a digital world that will change our

life, our health, our education, our business models at the pace of a technology company change," Chambers said. He warned companies that they could not "miss a market transition or a business model" or "underestimate your competitor of the future - not your competitor of the past."

• "Either we disrupt or we get disrupted," he said.

http://www.businessinsider.in/Retiring-Cisco-CEO-delivers-dire-prediction-40-of-companies-will-be-dead-in-10-years/articleshow/47594202.cms






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