Capstone Project 2021-23

Phase 3 Report
Sem-III

Title of the Project:

Impact of Social Media on E-Commerce

Submitted by:

Name of Faculty Name of the

Guide: Vijay S Student: Amey
Karvande Hemant Khebade

Designation: Roll No:

20630021177
Program:
PGDM(Marketing
)
Batch: M3 – CKP
Semester: III

Impact of Social Media on E-Commerce

 Institute for Technology and Management
Plot No. 25 / 26, Institutional Area,
Sector – 4,
Kharghar, Navi Mumbai

CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that the Project Work titled …………………………………………………
……………………………………………………is a bonafide work carried out by

Mr./Ms,…………………………………………….
Roll No……………………………………………………….., a student of the PGDM program

2020 – 2022 of the Institute for Technology & Management, Kharghar, Navi Mumbai under my
supervision & guidance.

Signature of Guide :

Name of Guide: Dr/Prof. Vijay S Karvande

Designation: Assistant Professor/Associate Professor//Professor, ITM Kharghar

Date: Place: Kharghar, Navi Mumbai

Impact of Social Media on E-Commerce

 Abstract

Over the last decade, social media has gotten a lot of attention throughout the
world, and the emergence of new age social media like Facebook has given it
a new lease on life. Facebook, Twitter, LinkedIn, Instagram, and YouTube
are examples of social networking services that bring the entire world closer
to us. To be more specific, social media has become an integral part of our
life. E-commerce, on the other hand, has become one of the world's fastest
expanding industries. Especially since Amazon and Flipkart entered the
online market, life has been lot easier. It becomes very comfortable for
companies to reach the consumers easily and vice versa. The main objective
of this report is to highlight the impact of social media platforms on E-
commerce consumers and as well as E-commerce companies too.

Impact of Social Media on E-Commerce

 Objective of the study

Learn how to Leveraging the power of social networks, to understand

how the businesses can now understand their customers better, reach
the masses, and strengthen their connections. Social media platforms
aim at improving the interaction between the clients and e-commerce
businesses instead of just educating them about profitable deals and
new product launches.

Learn how A part of the social media platforms allows direct selling
by utilizing a couple of social groups and communities.

Impact of Social Media on E-Commerce

 ACKNOWLEDGEMENT

Execution of a project of this nature is impossible without active

support from the faculty guide and professors of the Institute. I
would like to express my sincere gratitude to my guide
Dr/Prof…………………………………… for his/ her guidance
during the entire project duration.

I also extend my sincere thanks to all those who directly and

indirectly helped me to complete the project.

Name of the Student ……… Signature of the Student……………

Impact of Social Media on E-Commerce

 6

Impact of Social Media on E-Commerce

 Content Page No.

Front Cover Page I

Certificate from the Faculty Guide II

Abstract III

Objective of the study IV

Acknowledgement V

Table of Contents VI- VII

Chapter 1 Introduction 8-28

1.1 Social networks and social media

1.2 Types of social media platforms

1.3 Social media marketing

1.4 Advantages of social media marketing

1.5 Uses of Social Media

1.6 E-Commerce

1.7 Types of E-Commerce

1.8 Uses of E-commerce

1.9 Online marketing and purchasing

1.10
Statistics and Facts of E-commerce

1.11
SWOT Analysis

Chapter 2 29-31
Literature Review

Chapter 3 32-34
Research Methodology

3.1
Types of Research methodology

3.2
Questionnaire

3.3
Sample size

Chapter 4 48-73
Data Collection, Analysis & Interpretation

4.1 Consolidation and Representation of results and analysis

7
4.2 of Social Media on E-Commerce
Impact Discussion of results and interpretation of results

Chapter 5 43-44
Recommendations & Conclusions
 Introduction
Background:

Interconnectivity between people has grown as a result of advancements in the web and the
advent of social media. This enhancement allows people and organisations to collaborate
online. This has evolved as a result of internet-based life, which allows customers to create
content and communicate with one another via social media. Several social media platforms
have pushed data sharing. For example, Wikipedia, a free online reference book, is one of the
most well-known media and includes a data-sharing office where clients can collaborate.
Clients can survey and rate things on other platforms that have the ability to make surveys
and evaluations, such as Amazon.com.

Furthermore, people in these stages are quite dependant. Customers can make valuable
contributions and provide valuable advice to others by employing internet networking. This
new advancement has seen a development in web networks and an electronic system of
people on social media, where people share material in an all-encompassing and speedy
8

Impact of Social Media on E-Commerce

 manner. With the growth of social networks, a new era of content creation has emerged, in
which people may easily share encounters and data with different users. The next generation
of online businesses will be built on networks, which will be an effective tool for attracting
new customers. The executives' framework, for example, offers access to another
advancement where firms can boost performance, and on the web networks provide a chance
for associations to have a better client interaction. Individuals can also become comfortable
with one another on those stages where shoppers have social collaboration, potentially
providing a wellspring of trust.

This might have a significant impact on a client's desire to buy. As a result, it is critical for
businesses to establish a strategy that is tailored to social business. Another type of web-
based business is social business, which energises client social connections through web-
based social networking. Organizations might become increasingly enticing all over as a
result of internet-based live.
In later sections, I'll talk about the impact of social media on e-commerce customers.

Social networks and social media

The term "social network" was originally used to distinguish between

networks that were used for business and networks that were used for
socialising. However, the most widely accepted definition of social networks
relates to interactive websites that give users with message boards, chat
rooms, and the ability to submit comments and have a debate with other
people, particularly in the workplace, universities, and high schools.
Alternatively, a virtual community website that brings individuals together to
speak, share ideas and hobbies, or make friends is referred to as a social
9

Impact of Social Media on E-Commerce

 network. Social media refers to this form of collaboration and sharing on
social networking sites.Unlike traditional media that is typically created and
controlled by only a bunch of people, the social media allows users to share
their opinions, views and encourages interactions and community building
shaped by consumers.

The phrase "Social Media" was coined by combining the words "Social" and
"Media," which are defined as follows: The term'social' refers to engaging
with other individuals for the purpose of exchanging information and is
marked by amicable companionship or relationships. The term'media' refers
to any kind of communication that reaches a large number of people, such as
radios, television, newspapers, magazines, and the internet.
As a result, we can define social media as a web-based social communication
tool that allows people to communicate with one another through sharing and
consuming information. According to Safko and Brake, "social media" refers
to "activities, practises, and behaviours among groups of individuals who
gather online to share and exchange information, knowledge, and ideas via
communicational means."

Social media, according to Weinberg, refers to the sharing of information,

experiences, and viewpoints through community-oriented websites. Web-
based technology is used in social media to turn and broadcast media
monologues into social media discussions. Since the last decade, social
media has progressed from a simple communication hub to a change agent
that has influenced human behaviour and, as a result, changed people's lives.

10

Impact of Social Media on E-Commerce

 Politics and public service

The introduction of personal computers revolutionised the way businesses

were done. From politics and public service to business and customer
pleasure, social networks are changing the demographics of our society.
Non-profit organisations, environmental campaigners, and political factions
have all turned to Facebook to reach out to thousands of potential volunteers.
Almost every progressive politician makes use of Twitter to promote their
11

Impact of Social Media on E-Commerce

 causes. People may now express their worries and thoughts, discuss their
ideas, and even communicate with political leaders on a one-on-one basis,
thanks to social media platforms.

Marketing and advertising

Marketing and advertising techniques have shifted from mass market

channels like television and radio to the social platform as a result of the
introduction of social media. Today, all big brands and organisations boast
enormous fan bases and followers on major social media platforms such as
Facebook, Twitter, YouTube, and Instagram, among others. Social media
platforms are not only cost-effective, but they also bring the producer and
consumer closer together.

Journalism

People may quickly and easily share links and information with a huge
number of people via social media platforms such as Facebook and Twitter.
Because they know that a recommendation from a friend carries more
weight, several news websites include a list of news items recommended by
their friends. On the other hand, social media has ushered in a new era of
12

Impact of Social Media on E-Commerce

 citizen journalism. From traffic updates to natural disasters, everyone with
access to social networking sites is essentially a citizen journalist in only a
few clicks.

Business

Today, almost every big corporation has a social media presence. Existing
and new businesses are now aggressively utilising social networking sites to
market their products, services, and obtain valuable client feedback. In fact,
for businesses, social media participation has practically become the de-facto
norm for evaluating customer service. Small or home-based enterprises that
run purely through their Facebook pages have become commonplace.

Types of social media platforms

The most commonly used social media platforms are

Facebook

13

Impact of Social Media on E-Commerce

 In terms of both name recognition and total number of users, Facebook is the
most popular social networking site on the internet. It has almost 1.8 billion
active users and serves as a fantastic platform for connecting people all over
the world with your company. Facebook has evolved from a simple website
to a multi-dimensional network and mobile platform where anyone may
communicate with anyone else across the world in the previous decade.
Keeping in mind Facebook's Pages feature, it can be quite beneficial to one's
business.

Twitter

Twitter is a social media platform where users may express themselves using
short text messages and other media. Twitter is a fantastic platform for
communicating with virtually anyone in the globe just by mentioning their
usernames in postings. This social networking platform is a fantastic tool to
promote and market a company. It's also a good way to handle customer
service issues.

Instagram

Instagram is a visual social media website that only allows users to

publish photographs and videos. It is also owned by Facebook and
differs from the competition in terms of the various filters and photo
editing capabilities available.

LinkedIn

LinkedIn is a social networking site devoted to professional and

employment-related services. LinkedIn allows people to create profiles

14

Impact of Social Media on E-Commerce

 in an online social network that can depict real-world professional
contacts, whether they are employees or employers.

Fig 1: Most Popular Social Networking Sites

The figure 1 shows the graph of top networking sites in the world as of
2022. As it is clearly visible, Facebook is leading the pack followed by
YouTube, whatsapp, Instagram

Social media marketing

Social media marketing is the most recent trend to emerge in recent years,
when it began to dominate internet communication. It's a type of online

15

Impact of Social Media on E-Commerce

 marketing that makes use of a variety of social media channels to reach
marketing and advertising goals. For the purposes of advertising, social
media marketing entails the sharing of content, videos, and photographs.
Businesses utilise a variety of marketing tactics to target the correct
audience, engage in consumer online brand activities, and spread electronic
word of mouth.

Advantages of social media marketing

The various advantages of using social media marketing are

• Social media posts can be used to bring targeted traffic to a specific
audience, and it can also be utilised to improve the SEO of a company's
website. Building traffic on a company's social media accounts will help
their websites rank higher in search engines.

• Social media may aid in the development of true producer-consumer

relationships, as tweets on Twitter and Facebook posts provide insight into
their consumers' everyday life, allowing them to develop stronger marketing
strategies.

• Because most users regard Twitter and Facebook as social media platforms
rather than advertising and marketing tools, they are more receptive to a
commercial proposition.

• The most significant benefit of using social media is brand recognition,

since the media becomes the brand's content and voice.

Uses of Social Media:

16

Impact of Social Media on E-Commerce

 As in the modern world, which is more commonly referred to as a
technologically driven world. We live in a society where social media has
become an integral part of our everyday routine. There are numerous benefits
to using social media. Let's have a peek.

Communication:

The technologies used in the communication section are essentially a well-

known form of social media. These tools include blogs and websites where
you can create articles and web diaries to connect, communicate, illuminate,
and engage your audience. Individuals who visit your websites will be able
to leave comments. Other applications include social media sites such as
Twitter, Facebook, and Instagram, which increase the chances of contact
between people by using personal details, comments, pictures, videos, and
much more. People can form strong personal relationships with one another
with the help of these stages. Organizations can effectively communicate
with their audiences.

Collaboration:

17

Impact of Social Media on E-Commerce

 The majority of us use a variety of tools that have a social component to
them, and we use these gadgets on a regular basis. Let's look at an example.
Do you know what Wikipedia is? All things considered, it is a stage of
information that allows people to refresh their perspectives. It is simply a
web-based reference book that can be accessed and updated by anyone.
There is also a model known as Google Docs, which allows users to edit and
share documents extensively over the internet. With the help of this
community-oriented device, you will also be able to download and transmit
records. It's known as online networking since it allows several users to share
a single platform. Various people can work together in the most tailored and
result-oriented way possible to achieve normal results in a highly
coordinated manner.

Brand Monitoring:
Currently, brand monitoring gadgets are not the ones that everyone thinks
about, but they are undeniably important. Brand monitoring systems are used
by all purchaser brands and organisations that control the open to understand
what is being discussed with their brands and organisations. With the help of
web-based existence, this kind of essence in the online world is possible.
These devices are invaluable when it comes to compiling all of the inputs
and comments regarding a given firm. Social media's uses are tremendous in
terms of allowing you to see what people are saying about your business,
product, or service. This will also enable you to manage the online reputation
of your image.
Indeed, if someone is disparaging your image online, you may quickly
address the problem, ensuring that your online reputation is unblemished.
Entertainment:

18

Impact of Social Media on E-Commerce

 Well, the gaming industry was never completely reliant on social media
networks, but it is today. On social media sites, games like Farmville and
Mafia Wars are popular. In addition, the entertainment sector is completely
reliant on social networking sites. Take, for example, entertainment-related
websites. Because of the widespread use of social media, there are numerous
outlets that promote live entertainment. These websites not only improve
people's contact, but they also keep them entertained. Different social media
portals are also used to advertise movies and television series.
Social media networks are used to launch television shows. Businesses also
produce a range of entertainment videos to inform, entertain, and engage
their audiences.

Media Sharing:

YouTube is, without a doubt, one of the most well-known and well-
recognized sites for sharing material. This site, which has more than 500
million users, is now on the top of the list because of the amazing services it
provides to its customers. Vimeo is another platform that facilitates the
sharing of media. These are also the sites that assist people in creating
channels and forming connections with one another. There are quite a few
websites that can assist with music sharing. Locales such as Spotify and
others come with explicit highlights of sharing music, which is good with
most people. We now have the ability to download and transfer media
content without difficulty thanks to web networking.

Advertising:
19

Impact of Social Media on E-Commerce

 Paid adverts on numerous web-based social networking entrances are also
really effective for internet-based life jobs. You may run paid promos on
social media networks like Facebook, LinkedIn, Twitter, Snapchat, Pinterest,
and others. Social media channels today have a large audience base on which
you can demographically target to increase the online visibility of your brand,
product, and services. You may also monitor the progress of your paid
promotion campaigns and adjust your strategy as needed to achieve better
results. Online life promotions are also really reasonable, and you will see
evidence of increased returns on your investments. Paid adverts will display to
your target interest groups, assisting in lead generation and transformation.

E-Commerce:
Ecommerce, often known as electronic trade or web commerce, is the buying
and selling of goods and services through the internet, as well as the
exchange of money and information required to complete these transactions.
Ecommerce refers to the sale of actual goods over the internet, but it can also
refer to any type of business transaction that takes place over the internet.
While e-business encompasses all aspects of running an internet firm, E-
commerce specifically refers to the exchange of goods and services.
The first ever online sale took place on August 11, 1994, when a guy sold a
CD by the band Sting to a friend using his website Net Market, an American
retail platform. This is the first instance of a consumer purchasing a product
from a business over the Internet, or "ecommerce" as it is currently known.

Global retail ecommerce sales are projected to reach $5.5 trillion by 2022.

20

Impact of Social Media on E-Commerce

 Types of E-Commerce:

There are 5 types of E-Commerce

 Business to Consumer (B2C)
 Business to Business (B2B)
 Consumer to Consumer (C2C)
 Consumer to Business (C2B)

B2C (Business to Consumer) refers to when a company sells a product or

service to a single customer (for example You purchase a dress from an
online retailer).

Business to Business (B2B): When one company provides a good or service

to another company (for example, a bank). A company sells programming as
a service for other companies to use.)

Consumer to Consumer (C2C): When one client provides a product or

service to another customer (for example You sell your old vehicle on Olx to
another buyer).

Consumer to Business (C2B): When a customer sells their own products or

services to a company or organisation (for example An influencer offers
presentation to their online crowd in return for an expense, or a picture taker
licences their photograph for a business to utilize)

21

Impact of Social Media on E-Commerce

 Top E-commerce sites in India

 Amazon India
 Flipkart
 Myntra
 IndiaMART
 Book My Show
 Nykaa.
 Snapdeal
 FirstCry
 1mg

And many more companies which are growing in a rapid speed in E-

Commerce sector in India.

Uses of E-commerce:

As in the modern world, which is more commonly referred to as a

technologically driven world. We live in a society where e-commerce plays a
significant role in our day-to-day lives. E-commerce has numerous
advantages. Let's have a peek.

22

Impact of Social Media on E-Commerce

 Online marketing and purchasing:

Web and E-business allow for the collection of data about customer
behaviour, preferences, demands, and purchase habits. This aids promoting
exercises such as value fixation, exchange, item highlight upgrading, and
client relationship.
Retail and discount:

In the retail and discount industries, web-based business offers a variety

of uses. E-retailing, often known as online retailing, is the sale of goods
from a business to a consumer using electronic storefronts that are
designed around an electronic inventory and shopping basket paradigm.
Cybermall is a single website that offers a variety of products and
services in a single online location. It uses a Web software to bring the
client and the merchant together in one virtual location.

Finance:
The use of E-trade by financial institutions is extensive. Clients can use on-
line banking or E-banking to monitor the balances of their reserve funds and
advance accounts, transfer money to another account, and pay their bills. On-
line stock trading is another application of E-business. Several websites
provide news, summaries, information about the company's profile, and
analyst ratings on the stocks.

23

Impact of Social Media on E-Commerce

 Manufacturing:

Online business is also applied in an organization's gracefully chained tasks.

A few businesses set up an electronic trade by combining the purchase and
sale of goods, the interchange of display data, and the management of back
office data, such as stock control. This ranks the progress of raw materials
and finished goods among the members of the business network. The use of
plans of action is limited by a variety of concerns associated with critical and
serious issues. Organizations may be hesitant to trust their competitors and
fear losing exchange-privileged information if they participate in huge
electronic trading.

Statistics and Facts:

Statistics and Facts of Social Media:

India has embraced the internet with zeal, and its computerised population
has grown rapidly in the last decade, with over 680 million active internet
users. What began as simple email correspondence has evolved into a digital
universe, with social networking sites such as Google, Facebook, and Twitter
becoming a part of many Indians' everyday lives. Orkut was one of the
country's earliest and largest long-range social networking sites, owned by
Google and named for the employee who created it. It was one of the most
visited sites in the country in 2008 until its closure in 2014. For all intents
and purposes, this did not stop Indians from socialising — the country just
switched to Facebook. Starting in 2020, India had around 300 million
Facebook members, making it the most populous country on the planet.

As internet packages become more affordable and internet becomes more

widely available, more Indians are embracing the electronic lifestyle.
Simultaneously, cell phones are increasingly becoming the primary display
24

Impact of Social Media on E-Commerce

 for Indian customers. Indeed, it looks that India skipped the work area era
entirely and moved straight to versatile. In 2019, an astounding 99 percent of
India's provincial Internet users primarily used cell phones to access the
internet, indicating that smart phone applications are a burgeoning
commercial area in the country. Indians, being a sociable people, adore
social networking apps. India has the world's highest number of downloads
of WhatsApp and Tik-Tok smartphone applications in 2020. The average
web user in the country spends more than three hours each day on web-based
networking media. Furthermore, a large portion of this clientele was made up
of recent college graduates and Generation Z. In 2018, more than 73 percent
of Facebook clients in India were somewhere in the range of 18 and 24 years
old.

Apart from long-distance social networking tools, video streaming services

such as YouTube are well-known in India. With the Indian Premier League
blooming in 2010, YouTube usage in India skyrocketed, with more than two
billion views per day. From then on, this obviously increased with each IPL
season. Around the same time, T-Series, a relatively unknown (to the outside
world) Indian music label, was steadily but unflinchingly expanding on
YouTube by distributing old Bollywood and Indian popular music.
The substance took off, and T-Series is now the most watched and purchased
YouTube channel on the planet. According to estimates, there would be just
over 450 million informal organisation clients in the country by 2023, up
from just over 326 million in 2018. This rapid expansion in the division has
also boosted the public relations industry. The computerised advertising
sector in India is valued more than 160 billion Indian rupees today, and it is
expected to grow to 560 billion rupees by 2023.

25

Impact of Social Media on E-Commerce

 Statistics and Facts of E-commerce:

The Indian E-business industry has been growing at a rapid pace, and it is
expected to overtake the United States to become the world's second largest
E-commerce market by 2034. The E-trade market is expected to reach Rs
13,97,800 crore (US$ 200 billion) by 2027, up from Rs 2,69,076.5 crore
(US$ 38.5 billion) in 2017, thanks to rising pay and a surge in web users.
India's online clients reached 120 million in 2018 and are expected to reach
220 million by 2025. Out of nearly 100,000 pin numbers in the country,
online businesses deliver to 15,000-20,000. In 2019, it was estimated that
one out of every three Indians shopped on their phone.

A substantial portion of the company's growth has been fueled by the

expansion of web and mobile access. Cell phone users are expected to reach
859 million by 2022, while the E-commerce sector is expected to rise 1,200
percent by 2026. Mobile phone shipments in India increased 8% year over
year to 152.5 million units in 2019, making it the world's fastest growing
commercial sector among the top 20 cell phone markets.
In India, web infiltration grew from 4% in 2007 to 52.08 percent in 2019,
with a CAGR of 24% between 2007 and 2019. The number of internet users
in India is expected to rise from 687.62 million in September 2019 to 829
million in 2021.

This division's main drivers are a younger segment profile, increased web
infiltration, and comparatively superior financial execution. The Government
of India's policies and administrative frameworks, such as 100 percent
Foreign Direct Investment (FDI) in B2B E-commerce and 100 percent FDI

26

Impact of Social Media on E-Commerce

 in a programmed course under the commercial centre model of B2C E-
business, are expected to help the sector grow. According to the new FDI
strategy, online elements cannot sell things that are sold by shops in which
they have a value share through an outside venture.

The government released the Draft National E-Commerce Policy in February

2019, which encourages foreign direct investment in the commercial centre
model of E-business. It further states that the FDI policy for the E-business
industry was developed to ensure a level playing field for all participants.
According to the proposal, for E-commerce sites and applications to work in
India, an enrolled element is essential. The Indian government also suggested
the National E-business Policy to establish a legal framework for cross-
border information flow, stating that no information will be shared with other
governments without prior approval from the Indian government.

The government's Digital India project, as well as the overnight

demonetization of certain currency notes in November 2016, accelerated
digitization. Although the latter created tremendous economic disruption and
chaos in the weeks following the announcement, the shortage of currency
made digital use, particularly for payments, explode. Due to home
confinement measures, the economic effects of the coronavirus (COVID-19)
lockdown from late March enhanced the adoption of online payments in
2020.

The Indian government hopes to create a trillion-dollar internet economy by

2025 as part of its Digital India campaign.

27

Impact of Social Media on E-Commerce

 SWOT Analysis

STRENGTHS WEAKNESSES
 Lucrative brand loyalty  Psychological Impact
 Engagement with customer  High customer expectations
 Marketing - advertising is cost-effective  Low margins
with high ROAS  Trust
 Low level entry barriers

OPPORTUNITIES THREATS
 24/7 availability  Rapidly evolving technology
 Global Reach  Fierce competition
 Better Customer Targeting  Authenticity concerns
 E-commerce growth  Increase of B2C on social media
 Social Media E-commerce Integrations  Fraud
 Branding  Privacy concerns
 Awareness

 Better customer service

By conducting we understand that with social media we can advertise our

brand and services at an effective cost with a high return on advertisement
spend and with a low barrier entry into social media it's simpler for new
start-ups and businesses to grow. But they have to consider the weakness
such as Psychological impact- the absence of direct interaction between the
customer and seller affects decision making. HIGH CUSTOMER
EXPECTATIONS - Some consumers expect the same level of service from
small businesses (1-4 employees) and industry giants like amazon.com, as
the result it leads to customer dissatisfaction. Also the margin on products
remains slim due to presence of major small scale and big competitors who
are undercutting the margins and profits. Trust is also a major look out for
28

Impact of Social Media on E-Commerce

 any brand Trust of customer while buying though social media is the most
important aspect. Social Media does allow companies and brand to increase
awareness about brands and also branding and make brands trustful and
faithful. The major issue of social media is increasing fraud activity Some
consumers have concerns about fraud and misuse of their financial data. This
fact forms a whole segment that is not likely to do business or make
purchases via the Internet. Considering the growth of e-commerce and the
amount of tax revenue lost to it, the government could write legislation to
impose a tax on all online sales. This would remove one incentive to
conducting business online.

29

Impact of Social Media on E-Commerce

 Literature Review:

A literature review, often known as a narrative review, is a type of review

paper. A literature review is a thought-provoking article that summarises
current knowledge, including significant discoveries as well as hypothetical
and methodological contributions to a certain area. A literature review is a
collection of secondary materials that does not report on fresh or original
research. Such audits, which are frequently associated with intellectual
writing, can be found in scholarly journals and should not be confused with
book reviews, which can also appear in a similar distribution. In almost
every academic discipline, a literature review is a justification for study. A
thin extension writing audit might be incorporated as a component of a friend
explored diary article introducing new exploration, serving to arrange the
current investigation inside the body of the important writing and to give
setting to the pursuer. In such a case, the survey for the most part goes before
the strategy and results in segments of the work.
I have collected some research papers and journals and done analysis.

30

Impact of Social Media on E-Commerce

 The review of these papers is as follows:
A study of the impact of social media on consumers by M. Nick Hajli

In this research paper, the author discussed about multidisciplinary model,

building on the technology acceptance model and relevant literature on trust
and social media. The model has been validated by SEM-PLS, demonstrating
the role of social media in the development of e-commerce into social
commerce. The data emerging from a survey show how social media
facilitate the social interaction of consumers, leading to increased trust and
intention to buy.

https://www.lyfemarketing.com/wp-content/uploads/2015/05/Compressed-
PDF.pdf

The Role Of Social Media As A Platform For E-Commerce By Vaasan

Ammattikorkeakoulu

In this research paper, the author discussed the awareness and usage patterns
of social media tools to users, to establish if social media has reduced firms
operating cost and to analyse the impact of social media on customer
relationship. In addition, this research revealed that e-commerce has brought
about a reduction in distribution costs through the elimination of
31

Impact of Social Media on E-Commerce

 intermediaries. It also revealed that the multi-media nature and real-time
capabilities of the internet have fostered an environment that is conducive for
relationship building between firms and their customers.

https://docplayer.net/80907808-The-role-of-social-media-as-a-platform-for-
e-commerce.html
The Impact of Social Media on E-Commerce Decision Making Process by
University of Economics in Bratislava

The authors of this article demonstrate how social media influences e-commerce
decision-making by first reasoning on theoretical concepts about online
customers' behaviours and the factors that influence their purchasing decisions,
and then by illustrating useful statistics that show how social media marketing
has grown exponentially over the last decade.

http://68.183.220.147/index.php/journal/article/view/128/55

32

Impact of Social Media on E-Commerce

 RESEARCH METHODOLOGY
The methodology is generally a guideline system for solving a problem, with specific
components such as phases, tasks, methods, techniques, and tools. Research
methodology is the way to systematically solve the research problems. In simple
words, it describes the way the research has been carried out. It includes overall
research design, setting objectives, the format for data collection, the data collection
method, the sample design, the various tools and techniques used to present the data,
and last but not least the analysis procedure. In the case of the present study, we are
studying “Impact of Social Media on E-Commerce”

Types of Research methodology:

Types of research methods can be broadly divided into two quantitative and qualitative
categories.

Quantitative research “portrays, induces, and settles issues utilizing numbers. Accentuation is
put on the assortment of numerical information, the rundown of those information and the
drawing of inductions from the information"

Qualitative research, then again, depends on words, sentiments, feelings, sounds and other
non-numerical and unquantifiable components. It has been noticed that "data is viewed as
subjective in nature on the off chance that it can't be examined by methods for numerical
strategies. This trademark may likewise imply that an episode doesn't occur regularly enough
to permit dependable information to be gathered"

Methodological Approach:

My research topic is “Impact of Social Media on E-Commerce”. Social media plays a key
role in influencing e-commerce consumers in many ways. Many E-commerce companies use
social media platforms for advertisements about the products, brands according to interest,
and preference of consumer. According to the data 70-80 of the business people are using
Social media platforms for advertisements. And also 80% and above consumers are being
influenced by social media platforms in buying products from e-commerce sites.

33

Impact of Social Media on E-Commerce

 Methods of data collection

Quantitative Methods A. Surveys

I conducted survey through online. I prepared questionnaire in google forms

Questionnaire

1. Your Name-

2. Your Gender-

3. Are you aware of the various Social Media Sites?

 Yes
 No

4. How much time do you spend on social media?

 Less than 30 minutes
 30 minutes to an hour
 1-2 hours
 3 or more hours

5. Does the online visibility of a business affect your purchase?

 Yes
 No

6. Do you currently follow any businesses on social media?

 Yes
 No

7. Do you believe that business will achieve better results when it comes to customer
loyalty and profits if social media is integrated into marketing?
 Yes
 No

8. How often do you flip through these sites?

 1-2 Times
 3-4 Times
 5-6 Times
 more than 6 times

9. Are you aware of the various online shopping sites?

 Yes
34

Impact of Social Media on E-Commerce

  No

10. Do you prefer online buying?

 Yes
 No
 Sometimes

11. What made you prefer online buying?

 Advertisements
 Family
 Friends
 any other (please specify)

12. Does Social Media impact your online buying preferences?

 Strongly Disagree
 Disagree
 Partially Agree
 Strongly Agree
 Agree

13. Social media usage creates an opportunity for customers to interact with the firm
 Maybe
 Yes
 No

14. Why do you prefer online buying?

 Easy availabilty
 Variety
 Pricing
 Others

15. What is your opinion regarding EFFECTIVENESS OF SOCIAL MEDIA ON THE

PROCESS OF E-COMMERCE

35

Impact of Social Media on E-Commerce

 Survey Result

The survey found that 70% of respondents were men, 25% women, and 5% preferred not to
answer.

36

Impact of Social Media on E-Commerce

 According to a recent survey, 92.2% of people are aware of social media sites. The rest are
not sure.

According to a recent survey, nearly half of all people (47%) spend at least 1-2 hours online
every day, with 33% spending 3 hours or more. Only 15.7% of people said they spend 30
minutes or less each day, while the rest said they spend less than 30 minutes online.

37

Impact of Social Media on E-Commerce

 According to our latest survey, 78.4% of respondents reported spending the most time on
Instagram, while 39.2% said they used Facebook the most. Twitter came in at a close third
with 35.3%, and the remaining 19.6% said they were most active on Reddit.

According to a recent survey, 72.5% of people prefer shopping from Instagram ads, while
39.2% said they prefer shopping from Facebook ads. 9.8% of respondents said they prefer
shopping from ads on Reddit, and the remaining 5.9% said they prefer shopping from ads on
Twitter.

38

Impact of Social Media on E-Commerce

 As per a survey, 31.4% of people face difficulty making payments, 21.6% face internet
connectivity issues, and 66.7% feel that social media is unsecured.

39

Impact of Social Media on E-Commerce

 According to a recent survey, 70.6% of people follow businesses on social media. However,
21.6% don't follow businesses on social media, and the rest (7.8%) are unsure.

According to a recent survey, the majority of respondents (80.4%) believe that businesses can
achieve better results in terms of customer loyalty and profits if social media is integrated
into marketing. 11.8% of respondents were unsure about this, while the rest did not agree.

This suggests that integrating social media into marketing could be a beneficial strategy for
businesses to pursue, in order to improve their chances of success. However, further research
is needed in order to confirm this theory.

40

Impact of Social Media on E-Commerce

 According to the survey, 35.3% of people browse through these websites 1-2 times a day,
35.3% pf people swipe 3-4 times a day, 19.6% of people browse through these websites 5-6
times a day, and 9.8% of people browse through these website more than 6 times a day.

Majority of the people, 86.3% as per the survey, are aware of various shopping sites. 11.8%
of people are unsure about it and the remaining 1.9% doesn't know about any.

41

Impact of Social Media on E-Commerce

 Most people prefer buying online, according to a survey. 72.5% of respondents said they
prefer to buy online, while 19.6% said they aren't sure or don't prefer to buy online.

According to a recent survey, the majority of people (54.9%) said they had bought something
after seeing it advertised on social media. 19.6% said they had done so after a friend's
recommendation, and 9.8% after a family member's recommendation. The remaining
respondents cited convenience, fast delivery, variety, and discount as their reasons for
preferring online shopping.

According to a recent survey, nearly half of respondents (46.3%) agreed that social media has
at least some impact on their online buying decisions. 22.2% of people strongly disagreed,
while 16.7% and 14.8% disagreed and strongly disagreed, respectively.

42

Impact of Social Media on E-Commerce

 According to the survey, 68.6% of respondents belive that social media usage creates an
opportunity for customers to interact with the firm. 23.5% of respondents were unsure, and
the rest do not belive that social media provides such an opportunity.

43

Impact of Social Media on E-Commerce

 Summary & Recommendations

Social media is an integral asset for e-commerce sites. The capacity to not just direct
customers toward another item or an alluring arrangement, yet to draw in with them and
make a feeling of the network, is staggeringly valuable. A total web-based life nearness
additionally incorporates direct deals through certain systems, just as having the back-end
devices set up to let clients share items and late buys with companions and supporters
through only a single click.

While it's occasionally difficult to gauge solid profits for the circuitous parts of utilizing
social networks, for example, asking queries and taking part in discussions with followers,
these segments help to construct brand reliability and a feeling of network. When it comes to
dealing with consumer care issues, these social media interactions are important in retaining
customers and demonstrating a commitment to resolving problems.

Just as social media advances an e-commerce storefront, the store fronts need to feature a
social presence. Investing significant energy making posts for one or numerous systems isn't
powerful if customers aren't coordinated toward and urged to follow these pages. Utilize
online networking symbols at the base of every site page and give connections to sharing
explicit items.

It's additionally imperative to have a procedure before jumping into web-based life.
Beginning with only a couple of channels is best for new organizations, truth be told. Making
a steady tone that mirrors the disposition of the business additionally makes a difference.
Examination and instinct both have an impact on a web-based life system since posts are
based principally around discussions. Figure out where the time and exertion that goes into
online networking will be the best. Setting aside the effort to include top-notch item photos
and a business logo to the image and foundation fields of web-based social media accounts
will also help to unify branding and craft a consistent presence.

Social media needs to be a part of your company’s marketing budget because it gives you a
powerful way to create a connection with your target audience. From Instagram to LinkedIn,
there are virtually limitless ways for you to interact, give and share information as well as
market your products. When you perform social marketing effectively, it adds instant value.

Social networks enable you to connect with new customers and stay in touch with the
customers you already have. They also give you the opportunity to provide access to your
brand in an enjoyable and convenient way. The content that you offer through social
networks is just as significant as a sign at the entrance of a store or a displayed poster.

To be more precise we can say that Social media influences (attracts) consumers through
their posts, advertisements in choosing products and brands. Based on the search history
using data an analytics post has been displayed accordingly in social media sites. Over all
more than 70% people says that social media helps them in purchasing online. This implies
that social media plays a key role in e-commerce consumers.

44

Impact of Social Media on E-Commerce

 7. Conclusion:

In this project, I performed survey on how social media impacts on e-commerce consumers
by circulating questionnaire to among 113 people from different ages and different sectors.
The findings and results of my survey clearly signifies that social media helps in building
strong relationship between companies and consumers. Social media influences consumers
by suggesting and displaying brands and products on their respective social media page.
Social media helps e-commerce sites to design a marketing strategy for their products.

It can be concluded that daily usage of social media applications like Facebook, Instagram,
and Twitter builds a engagement between consumer and companies. This study concludes
that social media can be used to increase customer loyalty through its ability to communicate
directly to the consumer

References:
1. Double Tap: How Social Media Has Changed E-Commerce
https://www.licenseglobal.com/new-mediasocial/double-tap-how-social-media-has-changed-e-
commerce

2. What is the Impact of Social Media on Ecommerce?

45

Impact of Social Media on E-Commerce

 https://www.ecomz.com/blog/what-is-the-impact-of-social-media-on-ecommerce

3. THE ROLE OF SOCIAL MEDIA AS A PLATFORM FOR E-COMMERCE - Moses

Kwame Kumah
https://core.ac.uk/download/pdf/161423643.pdf

4. The Impact of Social Media on E-Commerce Decision Making Process

https://www.econstor.eu/bitstream/10419/194865/1/19106-78062-1-10-20190316.pdf

5. The Effects of Social Media on E-Commerce: A Perspective of Social Impact Theory

https://www.computer.org/csdl/proceedings-article/hicss/2012/4525b814/12OmNvk7JJ7

6. The positive impact of social media on eCommerce

https://blog.clover.com/the-positive-impact-of-social-media-on-ecommerce/

7. Types of Ecommerce Business Models: Traditional and Innovate New Ones to

Consider
https://www.bigcommerce.com/articles/ecommerce/types-of-business-models/

46

Impact of Social Media on E-Commerce

 47

Impact of Social Media on E-Commerce