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Submitted To:
Sir Saif Ali Bajwa
Submitted By:
Muhammad Saad Majeed
M.COM (Weekend)
2ND Semester
Introduction
E-commerce has a significant impact on business costs and productivity. E-Commerce has a
chance to be widely adopted due to its simple applications. Thus it has a large economic
impact. Electronic Commerce provides the capability of buying and selling products and
information on the internet and other on-line service. Electronic commerce or e-commerce
refers to a wide range of online business activities for products and services. Electronic
commerce is transforming the marketplace by changing firms’ business models, by shaping
relations among market actors, and by contributing to changes in market structure. It is
difficult to single out the impact of electronic commerce.

Some businesses addresses three themes associated with electronic commerce and the
organizational changes it entails: changes in business models, changes in market structure
and opportunities for economic growth created by organizational change. Electronic
commerce creates the possibility of new models for organizing production and transacting
business, by offering inters modality and complementarily – not only substitution – in
business models. E-Commerce plays an important role in the economic growth and
development of nation. It is a purposeful activity includes in planning, controlling, promotion
and also distribution of various goods and services.

A more complete definition is: E-commerce is the use of electronic communications and
digital information processing technology in business transactions to create, transform, and
redefine relationships for value creation between or among organizations, and between
organizations and individuals. While some use ecommerce and e-business interchangeably,
they are distinct concepts. In e-commerce, information and communications technology
(ICT) is used in inter-business or interorganizational transactions (transactions between
among business organizations) and in business-to-consumer transactions (transactions
between business organizations and also individuals). E-commerce is a way of conducting
business over the Internet. Though it is a relatively new concept, it has the potential to alter
the traditional form of economic activities.

Already it affects such large sectors as communications, service, finance, retail trade and
holds promises in areas such as education, health, transport and government. The largest
effects may be associated not with many of the impacts that command the most attention but
with less visible, but potentially more effects on routine business activities E-commerce
presents opportunities to accelerate business processes, reduce costs, reach new customers
and develop new business models and markets in the business organization. The general
agreement is that electronic markets and digitalization of products will impact material flows.
Potential exists, above all, in the fields of demand and supply chain management and mass
customization. Potentials to increase resource productivity appear in outline particularly in
the business-to-business (B2B)

field, where there may be, for instance, reduction in quantities procured or stored, surplus
production, and error rates between supplier and manufacturer.

E-Commerce Models
Creating an e-commerce solution mainly involves creating and deploying an ecommerce site.
The first step in the development of an e-commerce site is to identify the ecommerce model.
Depending on the parties involved in the transaction, e-commerce can be classified into main
4 models. These are discuss as follows:

1. Business-to-Business (B2B)
This is said to be the fastest growing sector of e-commerce. The B2B model is predicted
to become the largest value sector of the industry within a few years. The B2B model
 involves electronic transactions for ordering, purchasing, as well as other administrative
tasks between houses. It includes trading goods, such as business subscriptions,
professional services, manufacturing, and wholesale dealings. Sometimes in the B2B
model, business may exist between virtual companies, neither of which may have any
physical existence. In such cases, business is conducted only through the Internet. The
main two advantages of the B2B model such as it can efficiently maintain the movement
of the supply chain and the manufacturing and procuring processes, and it can automate
corporate processes to deliver the right products and services quickly and cost-
effectively.
2. Business-to-Consumer (B2C)
The B2C model involves transactions between business organizations and consumers. It
applies to any business organization that sells its products or services to consumers over
the Internet. These sites display product information in an online catalog and store it in a
database. The B2Cmodel also includes services online banking, travel services, and
health information. The B2C model of e-commerce is more prone to the security threats
because individual consumers provide their credit card and personal information n the
site of a business organization. In addition, the consumer might doubt that his
information is secured and used effectively by the business organization. This is the main
reason why the B2C model is not very widely accepted. Therefore, it becomes very
essential for the business organizations to provide security mechanisms that can
guarantee a consumer for securing business information.
3. Consumer-to-Consumer (C2C)
The C2C model involves transaction between consumers. Here, a consumer sells directly
to another consumer. Online auction Web sites that provide a consumer to advertise and
sell their products online to another consumer. However, it is essential that both the
seller and the buyer must register with the auction site. While the seller needs to pay a
fixed fee to the online auction house to sell their products, the buyer without paying any
fee. (E.g. you sell your old furniture on eBay, Olx and etc. to another consumer).
4. Consumer to Business (C2B)
When a consumer sells their own products or services to a business or organization (e.g.
An influencer offers exposure to their online audience in exchange for a fee, or a
photographer licenses their photo for a business to use)

The Impact of Ecommerce on Business

E-Commerce and E-Business are not solely the Internet, websites or dot com companies. It is
about a new business concept that incorporates all previous business management and
economic concepts. As such, E-Business and E-Commerce impact on many areas of business
and disciplines of business management studies.

1. Management Information Systems

Analysis, design and implementation of e-business systems within an organization; issues of
integration of front-end and back-end systems
2. Human Resource Management
 Issues of on-line recruiting, home working and ‘Entrepreneurs’ works on a project by project
basis replacing permanent employees.

3. Finance and Accounting

On-line banking; issues of transaction costs; accounting and auditing implications where
‘intangible’ assets and human capital must be tangibly valued in an increasingly knowledge
based economy.
4. Economics
The impact of e-commerce on local and global economies; understanding the concepts of a
digital and knowledge-based economy and how this fits into economic theory
5. Production and Operations Management
The impact of on-line processing has led to reduced cycle times. It takes seconds to deliver
digitized products and services electronically; similarly the time for processing orders can be
reduced by more than 90 per cent from days to minutes. Production systems are integrated
with finance marketing and other functional systems as well as with business partners and
customers.
6. Marketing
Issues of on-line advertising, marketing strategies and consumer behavior and cultures. One
of the areas in which it impacts particularly is direct marketing. In the past this was mainly
door-to door, home parties and mail order using catalogues or leaflets.
7. Computer Sciences
Development of different network and computing technologies and languages to support e-
commerce and e-business, for example linking front and back office legacy systems with the
‘web based’ technology.
8. Business Law and Ethics
The different legal and ethical issues that have arisen as a result of global ‘virtual’ market
issues such as copyright laws, privacy of customer information, legality of electronic
contracts etc.

Predictions for the Future of Ecommerce

1. Shift from Traditional Retailing

There are places located in the interiors of the country that simply do not make it worthwhile
to open a store. The electricity bill, maintenance staff, and salesmen alone all involve a
significant financial commitment. In comparison, a dedicated group of online assistants are
enough to run an online website for several places at once. And even where it’s convenient,
it’s likely that e-commerce will change how people buy transforming shops to places
reserved for product demos.
2. Growth of Mobile E-Commerce

We’ve already begun to see the seeds of mobile e-commerce being sown by giants like
Amazon, but we can predict a big bang in the growth of mobile commerce structures. With
apps becoming friendlier to use, and smart phones becoming a norm, this segment is set to
grow by leaps and bounds. At present, mobile e-commerce is rather limited to businesses that
have well-established websites and power-packed smart phones with good web connectivity
features. From being secondary, we will see mobile devices as becoming the primary
resource for the smart, urban, mobile shopper.

3. Better Software Implementation

The present online shopping experience leaves a lot to be desired. Most online retailers have
a similar structure and pattern, with a series of marketplace-based price listings, five or six
photographs, and a short product description. With technological advancements allowing for
a better look and feel, we can expect e-commerce to create a more immersive online
experience for the end-user.
4. Utilization of Near Field Communication (NFC)

The latest fascination with near field communication could turn out to be a boon for the
future of e-retailing markets. With NFC-enabled Google wallets, for example, one may
simply tap and pay for an object of their choice. This innovative technology would promote
the online shopping experience to the urban consumer, changing the way we shop forever.

5. Increased Customer Care

According to a survey conducted by Global Response the one issue that all e-commerce
setups face is fear of lack of control among users; all centers and customer support desks are
the perfect solution for this. Budding e-commerce businesses would do well to setup
dedicated customer support desks to ensure that their end-users always have a point of
contact to reach out to. Customer lifetime value is integral to web commerce success and
customer support centers are pre-requisites to that.

The Following Models For Commercial Face:

Poster Model
 A poster is a large notice or picture that you stick on a wall or board, often in order to
advertise something like a Electronics posters etc.

Yellow Pages
 Electronic Yellow Pages are online versions of traditional printed business directories
produced by telephone companies around the world. Typical functionalities of online
yellow pages include the alphabetical listings of businesses and search functionality
of the business database by name, business or location. Since Electronic Yellow Pages
are not limited by space considerations, they often contain far more comprehensive
business information such as vicinity maps, company profiles, product information,
and more.

 An advantage of Electronic Yellow Pages is that they can be updated in real time;
therefore, listed businesses are not constrained by once-a-year publishing of the
printed version which leads to greater accuracy of the listings since contact
information may change at any time.
Brochure Model
 They show the products or services your company provides, however, unlike an e-
commerce website, they do not sell the product or service online. With
 a brochure website, the goods and services are only displayed, so customers will have
to contact the company to place an order.

Storefront Model
 This model is a basic form of e-commerce in which the buyer and the seller interact
directly.
 It combines transaction processing, security, online payment and information storage
to enable merchants to sell their products online.
 To conduct storefront e-commerce, merchants need to organize online catalogs of
products, take orders through their Web sites, accept payments securely, send
merchandize to customers and manage customer data.
 The storefront should be marketed to potential customers. Many of the leading
storefront model companies are B2C (Business to consumer).

Subscription Model
 The Ecommerce subscription model is a business model in which a company provides
ongoing services on a regular basis in exchange for regular payments from the
customer. Nowadays, companies in the fashion, entertainment, and even food
industries adopt this approach into their overall operations.

Conclusion
This research paper involves a study of the inability to find the product or services of interest
quickly is the biggest barrier to effective marketing this problem may be overcome through
E- commerce, where number of companies offer several products thought the net. In Short,
Pakistani e-commerce has to face many difficulties in web marketing because of
infrastructural difficulties and computer illiteracy. Majority of the customers live in rural
areas do not sufficient knowledge about computer and internet. Some of customers in urban
areas do not have credit facilities and therefore online buying and selling of goods is limited
to urban class having knowledge of computer internet if Pakistani marketers take into account
essentials of good website they can definitely make success marketing in international
markets.