E-COMMERCE

Presented By:-Girdhar NagoriMBA (Finance) 14104004

Meaning of e-commerce Features of e-commerce Elements of e-commerce Types of e-commerce Benefits of e-commerce Limitations of e-commerce

CONTENTS

Electronic commerce is an emerging concept that describe the process of buying and selling or exchange of products , services and information via computer network including the internet.

Meaning of E-commerce

Features of E-Commerce

Non-Cash Payment 24X 7 availability Advertising and Marketing Sales

Types of E-Commerce

• Business-to-Business (B2B)• Business-to-Consumer (B2C)• Consumer-to-consumer (C2C)• Consumer-to-Business (C2B)• Mobile commerce- M- commerce

Business-to-Business (B2B)

CUSTOMER

WHOLESALER

WEBSITE

BUSINESSORGANIZATION

ORDER PROCESSING

ORDER

SUPPLIES

Business to Business web sites sell the product to the intermediate buyer who takes the product to the final consumer. For example, Intel is selling its chips to other businesses. The below fig. shows B2B transaction:

Business-to-Consumer (B2C)

CUSTOMER

B2C is a web site where all transactions take place between a business organization and the final consumer. The below fig. shows B2C transaction:

RECEIVES GOODS

BUSINESSORGANIZATION

PROCESSES ORDER WEBSITE

PLACESORDER

Consumer-to-Consumer (C2C)

CUSTOMERLOCATED IN

HISAR

CUSTOMERLOCATEDIN NEW DELHI

In this category consumers sell directly to consumers.For example, olx.in

www.olx.in

PLACES AN ADVERTISEMENT

RECEIVES PRODUCTS

RECEIVES MONEY

WANTS TO SELL

WANTS TO BUY

Consumer-to-Business (C2B)In such sites, the consumer places an estimate of the

amount of money he is willing to spend for a particular service. For example, comparison of interest rates of personal loan/ car loan provided by various banks via website.

CUSTOMER

PROCESSES ORDER WEBSITE

PLACES MONEYFOR A PARTICULARSERVICE

BUSINESSORGANIZATION

RECEIVES PRODUCTS

RECEIVES MONEY

M-COMMERCEM-commerce refers to the use of wireless digital devices to enable transactions on the Web. M-commerce involves the use of wireless networks to connect cell phones, handheld devices such Blackberries, and personal computers to the Web.

•Seller•Transaction partners•Consumers•Firms/Businesses•Government

Components of E-commerce:

Existing practices in developing countries with respect to buying and paying online

1. Traditional Payment Methods:• Cash on delivery• Bank payments

2. Electronic Payment Methods:• Innovations affecting consumers• Innovation enabling online commerce

Unique features of e-commerce:

•Ubiquity•Global reach•Universal standards•Richness•Interactivity•Information density•Personalization/Customization

Benefits of E-Commerce

•Benefits to organizations•Benefits to consumers•Benefits to society

Benefits to Organizations• Expands the market place to national and international market• Improves brand image• Better customer services• Fast access to information• Eliminating paper

Benefits to Customers 24 hours shopping.

Less expensive product and services Provide detailed information in seconds Allows quick delivery Customers can interact with other customers Provides customers with more choices

Benefits to Society Less travelling for shopping resulting in less traffic on the roads and lower air pollution. Enables people in rural areas to enjoy products and services that otherwise are not available to them. Facilitates delivery of public services, such as health care, education services etc at a reduced cost and of improved quality. Increase standard of living of the society.

Limitations of E-Commerce

• Technical Limitations

• Non-Technical Limitations

Technical Limitations• Lack of system security• Software development tools are still evolving and changing rapidly• Vendors may need special web servers and other infrastructures, in addition to the network servers• Some e-commerce software might not fit with some hardware

Non-Technical Limitations

•Initial cost•User resistance•Security / Privacy•Lack of touch or feel of products during online shopping.•E-Commerce applications are still evolving and changing rapidly.•Internet access is still not cheaper and is inconvenient to use for many potential customers like one living in remote villages.

Future of E-commerce in India

India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011 and to $14 billion in 2012.

India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn by 2016 and $850 Bn by 2020.

The Indian e-commerce market is estimated at Rs 28,500 Crore ($6.3 billion) for the year 2011.

Online travel market in India is expected to grow at a rate of 22% over the next 4 years and reach Rs 54,800 Crore ($12.2 billion) in size by 2015.

Indian e-tailing industry is estimated at Rs 3,600 crore (US$800 mn) in 2011 and estimated to grow to Rs 53,000 Crore ($11.8 billion) in 2015.

Overall e-commerce market is expected to reach Rs 1,07,800 crores (US$24 billion) by the year 2015 with both online travel and e-tailing contributing equally.

Founded- 6 October, 2007CEO - Sachin BansalHeadQuarter- Banglore, IndiaCustomer Service- 08049400000Founders- Sachin, Binny BansalMarket Capture- Rs. 43 ,000 Crore

Founded- February, 2010CEO - Kunal BahlHeadQuarter- New Delhi, IndiaCustomer Service- 09212692126Founders- Rohit Bansal, Kunal BahlMarket Capture- Rs. 6 ,000 Crore

Founded- March, 2006

CEO - Amarjeet Singh Batra

Founders-   Fabrice Grinda Alec Oxenford

Founded- 5 July, 1994CEO - Jeff BezosHeadQuater- Seattle, WA, USA Founders- Jeff BezosGross Sale- $ 1 Bn

Founded- 1999CEO - Jonathan LuHeadQuater- Hong KongFounders- Peng Lie, Jack MaStock Price- US$ 88.31 @ NYSE

Non-Technical Limitations Cost and Justification Lack of Trust and user Resistance Security and Privacy Lack of touch and feel online Still evolving and changing rapidly. Not yet enough sellers and buyers Accessibility to the internet is still expensive and inconvenient for many potential customers Breakdown of human relationships