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.