By:Rachna Thakkar

Astt.Professor
St.Xavier’s College
What is Commerce?
 According to Dictionary.com
 Commerce is a division of trade or production which
deals with the exchange of goods and services
from producer to final consumer
 It comprises the trading of something of economic
value such as goods, services, information, or
money between two or more entities.
 What is E-Commerce?
 Commonly known as Electronic Marketing.
 “It consist of buying and selling goods and services over
an electronic systems Such as the internet and other
computer networks.”
 “E-commerce is the purchasing, selling and exchanging
goods and services over computer networks (internet)
through which transaction or terms of sale are performed
Electronically.
 TRADITIONAL BUSINESS
MANF. UNIT DISTRIBUTOR WHOLESALER RETAILER CUSTOMER
20% 10% 10% 10% 100%

ADVERTISEMENT
50%

DIRECT SELLING
COMPANY CUSTOMER
Why
Use
E-Commerce

…….?
 LOW ENTRY COST
 REDUCES TRANSACTION COSTS

 ACCESS TO THE GLOBAL MARKET

 SECURE MARKET SHARE

 Brief
History
Of
E-Commerce
 1970s: Electronic Funds Transfer (EFT)
Used by the banking industry to exchange account
information over secured networks
 Late1970s and early 1980s: Electronic Data
Interchange (EDI) for e-commerce within
companies
Used by businesses to transmit data from one
business to another
 1990s: the World Wide Web on the Internet
provides easy-to-use technology for information
publishing and dissemination
Cheaper to do business (economies of scale)
Enable diverse business activities (economies of
scope
Process of E-Commerce
 A consumer uses Web browser to connect to the home
page of a merchant's Web site on the Internet.

 The consumer browses the catalog of products featured

on the site and selects items to purchase. The selected
items are placed in the electronic equivalent of a
shopping cart.

 When the consumer is ready to complete the purchase of

selected items, she provides a bill-to and ship-to address
for purchase and delivery
 When the merchant's Web server receives this
information, it computes the total cost of the order--
including tax, shipping, and handling charges--and then
displays the total to the customer.

 The customer can now provide payment information,

such as a credit card number, and then submit the order.
 When the credit card number is validated and the order is
completed at the Commerce Server site, the merchant's
site displays a receipt confirming the customer's
purchase.

 The Commerce Server site then forwards the order to a

Processing Network for payment processing and
fulfillment.
Different types of E-Commerce
Business-to-business (B2B)
Business-to-Consumer (B2C)
Business-to-government (B2G)
Consumer-to-consumer (C2C)
Government to consumer (G2C)
Government-to-business (G2B)
Business to Business (B2B)
 B2B stands for Business to Business. It consists of largest
form of Ecommerce. This model defines that Buyer and
seller are two different entities. It is similar to manufacturer
issuing goods to the retailer or wholesaler.
E.g.:-Dell deals computers and other associated accessories
online but it is does not make up all those products. So, in
govern to deal those products, first step is to purchases them
from unlike businesses i.e. the producers of those products.
BUSINESS-TO-CONSUMER (B2C):
 It is the model taking businesses and consumers
interaction. The basic concept of this model is to
sell the product online to the consumers.
 B2c is the direct trade between the company and
consumers. It provides direct selling through online.
For example: if you want to sell goods and services
to customer so that anybody can purchase any
products directly from supplier’s website.
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.

Examples:

Business pay taxes, file reports or sell goods and services to Govt. agencies.
CONSUMER-TO-CONSUMER (C2C)
 There are many sites offering free classifieds, auctions,
and forums where individuals can buy and sell thanks to
online payment systems like PayPal where people can
send and receive money online with ease. eBay's auction
service is a great example of where person-to-person
transactions take place everyday since 1995.
G2CE-commerce
This Model is also a part of e-governance.
The objective of this model is to provide good and
effective services to each citizen.
The Government provides the following facilities to
the citizens through website.
Information of all government departments,
Different welfare schemes,
Different application forms to be used by the citizens.
G2BE-commerce
Government-to-business (G2B) is a business model
that refers to government providing services or
information to business organisation.

Government uses B2G model website to approach

business organizations. Such websites support
auctions, tenders and application submission
functionalities.
ADVANTAGESOFE-COMMERCE TO CONSUMER
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.
 Advantages to Organization
 E- commerce decreases the cost of creating,
processing, distributing, storing and
retrieving paper-based information.
 E commerce reduces the time
 Improved Image
 Improved customer service
 New found business partners.
Disadvantages Of E-commerce to Consumer

Unable to examine products personally

Not everyone is connected to the Internet
There is the possibility of credit card number theft
Mechanical failures can cause unpredictable effects on
the total processes.
Disadvantages Of E-commerce to Organization
Technical disadvantage
 Lack of System Security
 Network Bandwidth(Internet Speed)
 Software / Hardware compatibility issue
 Difficult to integrate with existing application or databases.

Non-Technical Disadvantage
 Initial Cost (If e-commerce application developed in-house)
 User Resistance(Not Trusting the site being an unknown faceless
Seller.
 Security and privacy
 Lack of Touch n Feel.
Future of E-Commerce In India
• The Indian e-commerce industry has been on an upward growth trajectory
and is expected to surpass the US to become the second largest e-commerce
market in the world by 2034.

• The e-commerce market is expected to reach US$ 64 billion by 2020 and

US$ 200 billion by 2026 from US$ 38.5 billion as of 2017.

• With growing internet penetration, internet users in India are expected to

increase from 481 million as of December 2017 to 829 million by 2021.

• Rising internet penetration is expected to lead to growth in ecommerce.

• India’s internet economy is expected to double from US$125 billion as of

April 2017 to US$ 250 billion by 2020, majorly backed by ecommerce.
Basic Requirement of e-
Commerce
• Telecommunication Infrastructure
Requirement
• Hardware Requirement for e-Commerce
• Software Requirement for e-Commerce
• Technical Skill Requirement
• Financial Infrastructure
• Legal & Policy Framework
Categories of e-Commerce

•Electronic Markets

•EDI

•Internet Commerce
Electronic Market
• It is use of information and communication technology to present
a range of offerings available in a market segment so that the
purchaser can compare the prices of the offerings & make a
purchase decision.
• It is an inter-organisational information system that provides
facilities for buyers and sellers to exchange information about
price and product offerings.
• An effective electronic market increases the efficiency of the
market it reduces the search cost for the buyer & makes it more
likely that buyer will continue the search until the “Best Buy” is
found .
• Example: Electronic Market is an Airline Booking system.
Electronic Data Interchange
• It is the electronic exchange of structured business information in
standard formats between computers.
• EDI eliminates the need for a proper-based system by providing
an electronic link between companies. This reduces data entry
tasks and improves business cycles times.
• EDI is an automated exchange of structured business documents
such as purchase orders or invoices between an organization and
its trading partners.
• The structured, machine readable format allows business
documents to be transferred, without re-keying, from an
application is one location to an application in another location,
without human intervention or interpretation.
• In EDI information is passed electronically from one computer
network without having to be read, retyped or printed. Any
company or group which uses EDI is called a trading partner.

• Examples of current uses of EDI include :

• ATM’s in bank
• Airline Reservation System
• Stock Exchange Transaction
• Car Reservation System
Internet Commerce
• Information & Communication Technologies can also be used to
advertise and make once-off sales of a wide range of goods and
services.
• This type of e-Commerce is identified by the commercial use of
the internet.
• Example:- Internet can be used for the purchase of books that
are then delivered by post or the bookings of tickets that can be
picked up by the clients when they arrive at the event.
Features of e-commerce as
an Electronic Trading System
• Ubiquity
• e-Commerce is Technology enabled
• Technology Mediated
• Universality
• Intercommunication
• Delivery of Information
• Electronically completion of business processes
• Multimedia
• Intra and Inter Organizational Activities
• Virtual Communities
• Inter-Disciplinary in Nature
• Customization
Three Pillars of e-Commerce
• Pillar 1-Web Properties
• Pillar 2- Traffic
• Pillar 3- Conversion