What

is E

-co

mm

erc

e?

Electronic Commerce or eCommerce is often misunderstood as buying and selling of goods and services over internet and financial transactions between organizations and customers. Though mostly known, this definition doesn’t cover all the business areas. In broad terms, eCommerce encompasses all transactions that take place electronically – buying, selling,customer service, inventory management, marketing, delivering, pre-sale and post-sales activities.

“eCommerce is the exchange of information across electronic networks, at any stage in the supply chain, whether within an organization, between businesses, between businesses and consumers, between the public and private sector, whether paid or unpaid” – Cabinet Office, UK government

The Different perspectives of e-Commerce:1. A Communication perspective – the delivery of information, product/services or payment by electronic means.2. A business process perspective – the application of technology towards the automation of business transactions and workflows.3. A service perspective – enabling cost cutting at the same time as increasing the speed and quality of service delivery.4. An online perspective – the buying and selling of products and information online.

We can look at those transactions from sell-side and buy-side.Buy-side e-Commerce – This section involves the supplier, manufacturer, intermediaries and the organization and its functional unitsSell-side e-Commerce – This section involves interactions between corporates, customers and the organization.backb

YEAR EVENT

1994 Netscape Launched; SSL encryption enabled shopping.

1995 Backbone of eCommerce formed;Amazon, eBay and Verisign launched.

1997 Dell first company to reach @ 1Mn in online sales.

1998 Google launched, USPS launched eStamps.

2000 Dot-com bubble burst.

2002 eBay acquired PayPal.

2003 Facebook launched for college students.

2006 Google acquired YouTube; iTunes became first digital music retailer.

2007-08 Private Sales Model, Social eCommerce, Mobile eCommerce, Daily Deals/Local eCommerce

Different formats of eCommerceeCommerce CategoriesThe Interactions between an organization and its customers can be classified into 3 categories:

Why is

it E

merg

ing?

Benefits of e-Commerce

Global Reach

Cost Reduction

MeasurementInteractivity

Personalization

Emerging Trend of e-Commerce

Latest Trends in e-Commerce

Social Media Driving

Consumption

Continued Consolidation

among private sales companies

Evolvement of deals / local e-

Commerce sector

Mobile Commerce catching up

with traditional online and

offline business

Emerging new business

models

Expansion of virtual goods

and currencies

3rdParty seller platforms

Retail Stores

Online Stores

Serv

ices

Off

ere

d

Online Stores

Internal EnvironmentAggressivenessInnovationRisk-Taking Attention To Detail

External EnvironmentGovt. Rules & RegulationsEconomicYoung demographyEmergence of new customer baseTechnologyNew Competitors

Exte

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Env

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Govt. Rules and Regulation & Legal Aspect(IT LAWS)

There are no specific e-commerce laws and regulations in India and they are still evolving. The Information Technology Act 2000 (IT Act 2000) governs the online issues of e-commerce in India. IT Act 2000 is the sole cyber law of India. The cyber law of India mandates that the e-commerce entrepreneurs and owners must ensure cyber law due diligence in India. E-commerce entrepreneurs and owners in India must understand that legal issues of e-commerce in India are different for different categories of e-commerce. The legal requirements for undertaking e-commerce in India also involve compliance with other laws like contract law, Indian penal code, etc. Further, online shopping in India also involves compliance with the banking and financial norms applicable in India. Perry4Law and Perry4Law Techno Legal Base (PTLB) recommend that all e-commerce entrepreneurs and owners must do a proper techno legal due diligence before opening an e-commerce website. Further, e-commerce websites in India must ensure privacy protection, data protection, data security, cyber security, confidentiality maintenance, etc as well.

Economic Condition

Total e-commerce revenue in India is expected to increase by more than five times by 2016, from $1.6 billion in 2012 to $8.8 billion in 2016. In 2011, venture capitalists invested $ 177 million in e-Commerce in India

(FDI) is limited to traditional brick-and-mortar stores. The entry of foreign-owned virtual stores – online e-commerce platforms – continues to be restricted

Foreign firms, which are merely a “listing platform for brands”, are welcome to operate in India. But, foreign firms that buy and sell any goods or services are still banned from conducting their activities.

e-commerce firms can though invest in warehousing and back end infrastructure, which allows 100 per cent FDI

e-commerce companies, which have FDI infusion, have created corporate structures which technically enable them to receive FDI infusion even while sticking to the regulatory guidelines.

Social

Young Demography•According to a 2007 report by McKinsey & Co., “India is set to grow into the fifth largest consumer market in the world by 2025”, McKinsey & Co Report, 2007•Today, over 35% of our population is below the age of 20 •In 2020, the average Indian will be only 29 years old, compared with 37 in China and the US, 45 in West Europe •By 2020, 325 million people in India will reach working age, largest in the world. With a huge working population there will be huge consumption boom, as it has happened in China.•India is and will remain for some time one of the youngest countries in the world.

Emergence of new Customer baseThe 'bird of gold': The rise of India's consumer market

-By McKinsey Global Institute

“Who are the new consumers?...... The Urban Indian Woman & The Youth

The Indian Woman“The Indian woman is perhaps less homogenous and more conflicted as a consumer group compared to the Indian man.” — jacob kurian, neW silk route

•E commerce offers variety of women products•In the past five years, there has been a large increase in the product categories specifically targeted towards the urban woman. •Be it mobile phones, computers, apparel, jewellery or even financial products, women in the cities are finding themselves spoilt for choice.

The Indian Youth: charting their own path

•With the majority of its population below the age of 25 years, it is the primary target of every consumer goods company•Increased brand awareness •A larger number of younger people now have cash in hand •Technology Oriented•Spends on leisure and personal gratification•Concept of saving for a rainy day is alien to most of them

Technology

E payment is a subset of an e-commerce transaction to include electronic payment for buying and selling goods or services offered through the Internet.

The Internet has the potential to become the most active trade intermediary within a decade. Internet shopping may revolutionize retailing by allowing consumers to sit in their homes and buy an enormous variety of products and services from all over the worlds.

Many businesses and consumers are still wary of conducting extensive business electronically. However, almost everyone will use the form of E Commerce in near future.

“The rural consumer will have his debit card within his phone and will use the device to transfer funds between his and the seller’s accounts.”— Mr Vaghul, chairman, icici banking corporation

Competition from New Competitors

100% commitment to qualityMost competitive priceDoorstep delivery of products under strict supervisionRight weight/quantity100% disclosure policy across all productsConvenience of phone shoppingState-of-the-art Quality Control labs in Delhi (NCR), Mumbai, Lucknow, Nagpur, Hyderabad, Kolkata and PatnaPan-India quality team of 800 people, comprising 50 Quality Experts and Associates, 150 Quality Control Executives, 30 Quality Assurance Managers and 500 Quality Advisors305 warehouses in 285 cities

In 2007, Walmart announced an agreement with Bharti Enterprises to establish a Bharti Walmart Private Limited, a wholesale cash-and-carry and back-end supply chain management operations in India. A typical wholesale cash-and carry facility stands between 50,000 and 100,000 square feet and sells a wide range of fruits and vegetables, groceries and staples, stationery, footwear, clothing, consumer durables and other general merchandise items. The first Best Price Modern Wholesale opened in 2009.

Inte

rnal

Env

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Aggressiveness

Free Vouchers

Out of stock notification on new arrival via

e-Mail

Extensive ads on primetime

networks

Ads on Facebook which has 8Mn users

Innovation

COD

30 day return policy

3D-View

Online Chat with

executives

Risk-Taking Attitude

Attention to detail

• Specification

• Minute detail of the product

• Customer Feedback

Conc

lusi

on

Impacts of e-commerce and e-business in developing countries :

For SMEs in developing countries e-commerce poses the advantages of reduced information search costs and transactions costs .

IFAT: Empowering the Agricultural Sector through B2C E-Commerce.

Offshore Data Processing Centres: E-commerce at Work in the Service Sector

E-Mail and the Internet in Developing Countries

Women and Global Web-Based Marketing: The Case of the Guyanan Weavers’ Cooperative

The main issues of concern that act as barriers to the increased uptake of information technology and e-

commerce. Lack of awareness and understanding of the value of e-commerce.

Lack of ICT knowledge and skills.

Financial costs

Infrastructure.

Security

Other privacy-security-related issues.

Evoluti on of e-Commerce