EFFECT OF ECOMMERCE ON BUSINESS

ENVIRONMENT

SUBMITTED BY : GROUP MEMBERS

GROUP 8:
ANISHYA CARMEL PAUL B2508
CHRISTO FRANCIS B2520
JINNU ANNIE MATHEW B2530
NELSON VARGHESE B2541
RIYA PALLIPADAN GEORGE B2550
VISHNU A B2566
 “Effect of Ecommerce on Business Environment”

Introduction
In the recent times ecommerce has an impact on business negatively and positively.
Commerce is conducting of business physically and Ecommerce is conducting of
business over internet. It helps in reaching a wide range of consumers in much
lesser time. While using ecommerce, there is no requirement of outlet which incurs
huge cost. This helps in excluding the middlemen, since the product or service is
directly delivered to the customer. In Ecommerce, there is a need for the setting up
a website along with which we require technicians. A website will help in accessing
a wide range of clients. In Ecommerce, the business provides a number of choices
when compared to a traditional outlet or physical market. For example, a person
sitting in India can conduct a business with a person who is located in America.
Depending upon the parties involved there are mainly 4 types of ecommerce model
1)B2B,2) B2C, 3)C2C,4)C2B. By 2030, the contribution to GDP by ecommerce is
expected to reach by 300 billion dollar, which at present is around 20 billion dollar.
The impact of ecommerce is visible in various sectors like technology, travel and
tourism, education, service etc. Ecommerce has helped the consumer to get the
things that they wish to buy be delivered to home directly. Since everything is
available at the click of a mouse, the public or the customers prefer to go for
ecommerce rather than traditional method of business.
ISSUES
While working with Ecommerce there comes many issues related to privacy,
security, price war, returns and complaints etc. Once when a person performs a
transaction through ecommerce all of his details are automatically stored. This
creates an issue of privacy about the details of the customer. Online transactions
are inherently more insecure than those conducted in person because there's no
way to guarantee that the person making the payment is the actual owner of the
credit card used. The customer is not able to physically feel and trial the item. This
creates a sense of insecurity with the customer. Since there is no physical testing of
the item; there is a high chance of returns and complaints from the customer.

IMPACT ON WORK ENVIRONMENT

Ecommerce has a positive and negative impact on business. Ecommerce effects the
business in MIS, HRM, marketing finance and accounting, production and
operations etc. Ecommerce requires more personnels in marketing for to deal with
the selling process and meeting the requirements of the customers. They also need
enough personnels who are good at business laws so as to deal with copyright,
legality of electronic contracts etc. They also need workers good at predicting the
growth and fall and other changes in the e-world.

IMPACT ON SMALL SCALE INDUSTRIES

Since everything is available at the click of a mouse,the general public is moving
from traditional method of business to ecommerce model of business. The online
sites or the ecommerce business provides more offers and flexibility in terms of
time, place, payment, location etc. For example, a person sitting in India can do a
business deal with a person who is located in America. Irrespective of time and
place, business is being performed.
Small scale industries are situated only at a particular place which causes a
hindrance in access for the other public. Unlike traditional business, ecommerce is
available 24*7. Even they provide flexibility in terms of making payment like debit,
credit, cash , through any online application( Paytm, GooglePay etc).In most cases
most of the small scale businesses are not aware about the method of using
technology .These business also lack qualified personnel who will help them
technically. Small scale business also does not require an online site or space since
they do not variety of items to be offered to the customers. There are many giants
that outsmart the small businesses and start-ups .

OUR INTEREST IN ECOMMERCE AND THE CHANGES IT

BROUGHT IN INDUSTRY OR IN COMPETITION
The reason that attracted us to this topic was its relativeness to the current society.
Nowadays people want every thing at tip of their fingers and e commerce is one of
the biggest bridges between customers and retailers. Most of us think that e
commerce is timesaver an its convenient but by taking this topic we came to
realise that there is lot of negative impact of this on small scale industries and on
social living of people.
• Large discounts
• Huge collection.
• Doorstep delivery of e commerce
• Less time involvement
• Easy to find products and service
• 24/7 shopping
• No geographical limitation

THE PROFOUND EFFECT OF ECOMMERCE ON THE WAY

PEOPLE WORK
• Less communication between consumer and seller
• People became isolated because everything will be getting at tip of the finger
and they don’t want to go out .
• People working at physical outlet will have shortage of consumers and profit.
• Basically good for consumer and bad for business .

IMPACT OF ECOMMERCE ON INDUSTRY AND COMPANIES

Due to the pressure from offline retailers and wholesalers brands such as Lenovo,
Toshiba have made statements that Ecommerce sites are not authorized resellers.
ECommerce retailers are requested to reduce discount coupons ranging from 20-40
percent by several apparel brands. Canon stopped selling of its products from other
online websites. Adidas also banned its dealers from selling of its products in eBay
and Amazon. There is a fear among the brand that it will affect the image or brand
value due to its low price.

MEASURES ADOPTED BY THE INDUSTRIES

1) Building a platform of their own
Companies started considering selling items on their on-web site to expand
the reach. Independent site will help in building their on-brand value.
 2) Adding holiday coupons or unique gift
This kind of personal touch can help to set the business apart
3) Investing in customer service

Strong customer service is very important. Companies trying to invest more to

improve customer satisfaction which in turn improve the business

MISTAKE MADE BY COMPANIES

• Maintaining customer loyalty – The Ecommerce site is a difficult task for
creating the trust and loyalty among the customer.
• Product return and refund – When a product is returned due to the damage of
the product or dissatisfaction, the company suffers from huge loss of
reputation and money.
• Price and shipping – There is a high competition among the Ecommerce sites
where customers choose low priced products with free shipping.
• Purchasing of the products through face Id and phone number can lead to
huge revenue loss to the Ecommerce site.

LESSONS WE LEARNED FROM THE TOPIC

Ecommerce is a topic which all of us are familiar with. Everything is available a click
away on our mobile phone. By discussing this topic – “Impact of Ecommerce on
Business” each and everyone of us were able to share their view, opinion and
research on the same. It helped all the members of the group to have a deeper
knowledge on Ecommerce. Everyone gained knowledge about both the positive side
as well as negative side of Ecommerce. This group project gave us a clear picture
about how it affected the retailers and the people who do small scale business and
various issues regarding Ecommerce.
CONCLUSION
The way business operates has rapidly changed with
introduction of Ecommerce. While Ecommerce is helping to make
the lives of people easier as everything is available on fingertips,
it is affecting small scale industries and retailers.’’Adapt and
Evolve” is one of the best Ecommerce tips that can be adopted
for business. In today’s dynamic and hyper-competitive market
spaces, it isn’t sufficient for businesses to remain stable. They
have to keep on evolving, introducing new technologies and other
facilities to woo customers.
 My contributions to the topic “EFFECT OF
ECOMMERCE ON BUSINESS ENVIRONMENT” are as
follows
After conducting various
readings online, we the members of Group 8 arrived at a decision to take the topic
“Effect of Ecommerce on Business Environment” as the project topic. Topic was
equally divided among all the six members of the group. Being a member of this
group I . It is a very relevant topic currently where everything is available a touch
away. I have contributed to this project by providing my ideas and views on different
issues related to ecommerce. I also did some extensive research to find out the
steps industries can adopt or are adopting to improve the issue.This helped the
other group mates realise how industries are dealing with the issue. Different kinds
of sources helped us to look deep into the topic and helped us realise the how
Ecommerce affects the businesses.

NELSON VARGHESE
B2541