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E CommerceBY R.SRI TEJA
Contents
Introduction
Types of E- Commerce
Segments
E- Commerce penetration
E- Commerce growth in India
Introduction
• Electronic commerce, commonly known as E-commerce
• E- commerce can be easily said as buying and selling of products through
internet.
• The concept of e-commerce is all about using the Internet to do business
better and faster.
…
• Electronic commerce draws on technologies such as mobile commerce,
electronic funds transfer, supply chain management, Internet marketing,
online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems.
• 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
Business-to-business (B2B)
Consumer (B2C)
Business-to-government (B2G)
Consumer-to-consumer (C2C)
Mobile commerce (m-commerce)
What is B2B e-commerce?
B2B e-commerce is simply defined as ecommerce between companies. About
80% of e-commerce is of this type.
Examples:
Intel selling microprocessor to Dell
Volkswagen selling automobile glasses to Skoda.
What is B2G e-commerce?
Business-to-government e-commerce or B2G is generally defined as
commerce between companies and the public sector. It refers to the use of the
Internet for public procurement, licensing procedures, and other government-
related operations
Example:
Business pay taxes, file reports, or sell goods and services to Govt. agencies.
What is c2c e-commerce ?
Consumer-to-consumer e-commerce or C2C is simply commerce between
private individuals or consumers.
Example:
Mary buying an iPod from Tom on eBay
Me selling a car to my neighbour
What is M- commerce
M-commerce (mobile commerce) is the buying and selling of goods and
services through wireless technology-i.e., handheld devices such as cellular
telephones
Mobile Ticketing
Information Services
Mobile Banking
TOP E Commerce brands in
India
E-Commerce growth in India
E- Commerce penetration
Segments
Below are the industry segments that have shown a major growth
during last few years
Online Travelling
e-Tailing
Financial Services
Classifieds
Other Segments
Industry Segments
Online Travelling – This segment consists of Domestic & International Air
tickets, Railway tickets, Bus tickets, Hotel Bookings and Tour
Packages/Travel Insurance.
e-Tailing– This includes electronic retailing of consumer items like Books,
Apparels & Footwear, Jewellery & Personal/Healthcare Accessories, Camera
& Camera Accessories, Consumer Durables & Kitchen Appliances, Home
Furnishings, Mobile Phones & Mobile Accessories, Laptops/Net
Books/Tablets etc.
Ctnd..
Financial Services – The elements here include Insurance related services,
Utility Bill payments including Mobile Bill Payments and Online transactions
for Shares & Securities trading.
Classifieds – This segment includes B2C Classifieds like Online Jobs &
Matrimony, Other B2C categories like Car, Real Estate and B2B Classifieds.
Other Segments – This comprises emerging online services like Online
Entertainment Ticketing, Online Food & grocery Delivery.
Online travelling
Online Travelling has on an average grown by 32% from INR 14,953 Crores
in 2009 to INR 34,544 Crores in 2012 and is estimated to grow by another
30% and be valued at INR 44,907 Crores by the end of December 2013.
E tailing
The e-Tailing category has grown from INR 1,550 Crores in the year 2009
(Jan-Dec 2009) to INR 6,454 Crores in year 2012 (Jan-Dec 2012). This
category is estimated to cross the INR 10,000 crore mark in the year 2013
Financial services
Financial services market was valued at INR 2,886 Crores in 2012 and
is expected to grow by 25% and reach to INR 3,607 Crores by the end
of year 2013
Classifieds
Classifieds market has seen a significant growth and is estimated at
INR 2,354 Crores in 2012 and reach to INR 3,061 Crores by the end
of year 2013.
Mode of payment
Majority of the online shoppers use Debit cards/Internet banking as their
preferred mode of payment for shopping online. Payment through credit cards,
follow closely at second position and Cash on Delivery on third position.
30.00%27.00%
24.00%19.00%
0
DEBI T CARD CREDI T CARD CASH ON
DELIVERY
MOBILE PAYMENTS
AND OTHER
METHODS
MODE OF PAYMENT
ADVANTAGES OF ECOMMERCE
Faster buying/selling procedure, as well as easy to find products.
Buying/selling 24/7.
More reach to customers, there is no theoretical geographic
limitations.
Low operational costs and better quality of services.
No need of physical company set-ups.
Easy to start and manage a business.
Customers can easily select products from different providers
without moving around physically.
DISADVANTAGES OF E-COMMERCE
Any one, good or bad, can easily start a business. And there are
many bad sites which eat up customers’ money.
There is no guarantee of product quality.
Mechanical failures can cause unpredictable effects on the total
processes.
As there is minimum chance of direct customer to company
interactions, customer loyalty is always on a check.
There are many hackers who look for opportunities, and thus an
ecommerce site, service, payment gateways, all are always
prone to attack.