E - COMMERCE

E - Electronic

COMMERCE – The exchange of good and services for money

Consists of-
 Buyers – these are people with money who want to purchase a good or services.
 Sellers – these are people who offer goods and services to buyers
 Producers – these are people who create the products and services that seller
offers to buyers

ECOMMERCE
COMMERCE
E process of
Exchange of buying and
Electronic goods and
services selling over
the Internet
 Definition of E - Commerce
E-commerce is the process of buying and selling over the Internet, or conducting any
transaction involving the transfer of ownership or rights to use goods or services through a
computer-mediated network without using any paper document.

 Electronic commerce refers to a wide range of online business activities for products and services.
 It also pertains to “any form of business transaction in which the parties interact electronically rather
than by physical exchanges or direct physical contact.”
 It is a methodology of modern business which addresses the need of business organizations, vendors
and customers to reduce cost and improve the quality of goods and services while increasing the
speed of delivery. E-commerce refers to paperless exchange of business information using following
ways.
 Electronic Data Exchange (EDI)
 Electronic Mail (e-mail)
 Electronic Bulletin Boards
 Electronic Fund Transfer (EFT)
 Other Network-based technologies
 Brief History of E - Commerce
1970s
• E- commerce meant the facilitation of commercial transactions electronically, using technology such as
Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT), allowing businesses to send
commercial documents like purchase orders or invoices electronically.

1980s
• The growth and acceptance of credit cards
• Automated teller machines (ATM)
• Telephone banking
• Airline reservation system

1990s
• The Internet commercialized users flocked to participate in the form of dot-coms, or Internet startups
• Innovative applications ranging from online direct sales to e-learning experiences

2000s
• Many European and American business companies offered their services through the World Wide Web.
• Since then, People began to associate a word "e-commerce"
Types of E - Commerce
The major different types of e-commerce are:
 Business-to-Consumer (B2C)
 Business-to-Business (B2B)
 Business-to-Government (B2G)
 Consumer-to-Consumer (C2C)
 Consumer-to-Consumer (C2C)
 Consumer-to-Consumer (C2C)
Business-to-Consumer (B2C)
B2C e-commerce companies sell directly to the product end-user. Instead
of distributing goods to an intermediary, a B2C company performs
transactions with the consumer that will ultimately use the goods.
Ex- Amazon, Mc Donald etc.

Business-to-Business (B2B)
An e-commerce business can directly sell goods to a user. B2B transactions
often entail larger quantities, greater specifications, and longer lead times.
The company placing the order may also have a need to set recurring goods
if the purchase is for recurring manufacturing processes.
Ex- Heinz selling ketchup to Mc Donald’s, Dell.co, sell products and
services to small, medium, and large enterprise businesses etc.

Business-to-Government (B2G)
Some entities specialize as government contractors providing
goods or services to agencies or administrations. B2G e-
commerce companies must often meet government requests
for proposal requirements, solicit bids for projects, and meet
very specific product or service criteria. Ex- Dell supplies
computers to public sector organization, ppra.org.pk Public
Procurement Regulatory Authority
Consumer-to-Consumer (C2C)
These C2C platforms may be auction-style listings or may warrant further
discussion regarding the item or service being provided (i.e. Craigslist
postings). Enabled by technology, C2C e-commerce platforms empower
consumers to both buy and sell without the need for companies.
Ex- ebay, Olx stc.

Consumer-to-Business (C2B)
A consumer may solicit bids or interact with companies that need particular
jobs done. In this way, the e-commerce platform connects businesses with
freelancers to enable consumers greater power to achieve pricing,
scheduling, and employment demands. For example, consider listings on
Upwork.

Consumer-to-Government (C2G)
Consumers can interact with administrations, agencies, or governments
through C2G partnerships. These partnerships are often not in the exchange
of service but rather, the transaction of obligation. For example, uploading
your federal tax return to the Internal Revenue Service (IRS) digital
 Process of E - Commerce
1. Attract customers
• Advertising, marketing

2. Interact with customers

• Catalog, negotiation

3. Handle and manage orders

• Order capture
• Payment
• Transaction
• Fulfillment (physical good,
service good, digital good)

4. React to customer inquiries

• Customer service
• Order tracking
 Advantages of E - Commerce
Benefits to organizations Benefits to consumers
 Global reach  Convenience
 Cost reduction  More products and services
 Supply chain improvements  Comparison Shopping
 Extended hours: 24/7/365  Cheaper products and services
 Customization  Instant delivery
 Improved customer relations  Ease of Returns and Refunds
 Lower Overheads  Access to Reviews and Ratings
 Increased Sales  Information availability
 Scalability  Participation in auctions
 Customer Insights  No Geographical Limitations
 Flexibility  Personalized Recommendations
Disadvantages of E - Commerce
 Security Concerns
 Lack of Personal Interaction
 Shipping Costs and Time
 Product Quality Concerns
 Dependency on Technology
 Market Saturation and Competition
 Digital Divide
 Returns and Refunds
 Fraudulent Activities
 Legal and Regulatory Challenges
 possibility of credit card number theft
 Not everyone is connected to the Internet
 Future prospect in India
 The future of e-commerce in India is promising, driven by technological advancements, increasing
internet penetration, and changing consumer behaviour.
 The Indian e-commerce market, estimated to be $75 billion in 2022, is projected to expand to
$111 billion by 2024 and $200 billion by 2026.
 The online retail market in India is expected to constitute 37% of the total organized retail market
by 2030.
 As more Indians turn to online shopping for convenience, value, and variety, the future of e-
commerce in India looks brighter than ever.

Key factors driving this growth include

• digital inclusion
• mobile commerce
• payment solutions, and
• the rise of Tier II and III cities

As the e-commerce market in India continues to evolve, it is clear that it

will play a significant role in the country's economy and retail landscape.