E COMMERCE

INTRODUCTION
Buying and selling
goods and products over
internet.

But now the definition

of ecommerce has
widened. It is a not just
selling and buying but
also includes wide variety
of pre sale and post sale
activities.
Basis Traditional E Commerce
Commerce
Processing Manual processing Automated processing
of traditional of business transaction.
business
transaction.
Sources Face-to-face Using internet or other
,telephone lines or network
mail systems communication
technology
Cost Higher capital Very cheap as
investment compared to traditional
required. commerce as it can be
done at even $50 per
month.
Reach Restricted to people Wide reach as it can be
who actually have t accessed from
come to your shop anywhere in the world.
for buying.
 Global reach.
 Faster buying/selling procedure, as well as easy to find
products.
 Buying/selling 24/7.
 More reach to customers, no 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
 Lack of guarantee of product
quality.

Lack of security and reliability.

Lack of trust and user

resistance.

Prone to hacker attacks.

Lack of privacy.

Mechanical failures.

Customer loyalty always on a

 B2B

TYPES OF
C2C E- B2C
COMMERCE

C2B
 B
BUSINESS - 2 -CONSUMER
C
 Business or transactions
conducted directly between a
company and consumers who
are the end-users of its
products or services.
Offers directly to customer
an interface of activity.
Correspond to retail sale.
Typical examples-:
1. online book store
(amazon.com)
2. online car purchasing
(automall.com)
3. booking and purchase online tickets.
of (ryanair.com)
4. Online sale of merchandise.(walmart.com)
ADVANTAGES
oAllow company to extend existing
services to consumers.
o Allow company to increase its
customers.
oOffer a wider choice and cheaper
price.
o May give the company a worldwide
visibility.
o Easily accessible.

DISADVANTAGES
oLow order conversion rates.
o High risk.
 B
BUSINESS - 2 -BUSINESS
B
 Transactions between
businesses.
• Between
manufacturer and
wholesaler.
• Between wholesaler
and a retailer.

 volume of business
transactions is much higher
than B2C transactions.

 Examples- grainger.com
supplies industrial products
to small and large business
 ADVANTAGES
• helps to automate communication
between companies making them
easier and quicker.
• allow to cut prices drastically.
• help in reducing mistakes.

 DISADVANTAGES
• often need legacy integration.
 C
CONSUMER - 2 -CONSUMER
C
 Consumer-to-consumer (C2C) (or citizen-to-
citizen) electronic commerce involves the
electronically facilitated transactions between
consumers through some third party.

Concern the consumers who run negotiations

with other consumers sometimes utilizing the
intermediary a company.

Online marketplace for both consumers.

Examples-
• ebay.com
• autotrader.com
• online auction.
ADVANTAGES DISADVANTAGES
1. Allow customers to 1. Little earning
interact directly with capacity.
them.
2. Give them a new
way of purchasing
an selling of goods
and services.
 C
CONSUMER- 2 -BUSINESS
B
 The most recent E-
Commerce business model.

 In this model, individual

customers offer to sell
products and services to
companies who are
prepared to purchase them.

 This business model is

the opposite of the
traditional B2C model.

 Examples- Elance,
Peopleperhour and Guru
most recent E-Commerce business model. In this model, individual customers offer to sell products and services to companies who are prepared

Consumer- To- Business

E- Commerce
 MOBILE
COMMERCE
APPLCATION
Concern doing businesses by means o mobile
wireless devices.
 Can be both B2B or B2C.
 Have a growing importance in the future of e-
commerce application.
 Will introduce a completely new forms of e-
commerce.
 Examples- E-Tickets.
 The development of such applications faces
some of the greatest challenges in the security
area to secure the trust of consumers.
• Snapdeal.com is an online marketplace,
headquartered in New Delhi, India. The
company was started by Kunal Bahl,
a Wharton graduate, and Rohit Bansal, an
alumnus of IIT Delhi in February 2010.
• Snapdeal has recently launched its best mobile
app for iOS users. The app, already available for
Windows and Android users, provides users
access to Snapdeal's various product categories.
•Snapdeal has received 4 rounds of funding totaling to $240 million.

•Round 1: In January 2011, Snapdeal received a funding of $12 million from

Nexus Venture Partners and Indo-US Venture Partners.

•Round 2: In July 2011, the company raised a further $45 million from
Bessemer Venture Partners, along with existing investors Nexus Venture
Partners and Indo-US Venture Partners.

•Round 3: Snapdeal then raised a 3rd round of funding worth $50 million from
eBay and received participation from existing investors – i.e. Bessemer
Venture Partners, Nexus Venture and IndoUS Venture Partners.

•Round 4: Snapdeal received its 4th round of funding of $133 million on Feb-
2014. The 4th round of funding was led by Ebay with all the current
institutional investors, including Kalaari Capital, Nexus Venture Partners,
Bessemer Venture Partners, Intel Capital and Saama Capital all participating.
• In the year 2012-13 Snapdeal had said that it
expects to garner revenues of about  6
billion (US$98 million).
• Betting big on the growth of mobile commerce,
Kunal Bahl, the CEO of Snapdeal, said at present
15-20 per cent of the sales on Snapdeal comes
through m-commerce.
• Snapdeal.com expects the total sale of products
traded on its platform to cross  20
billion (US$330 million) in the fiscal year 2013-14
helped by its robust growth in the past two years
and the growing popularity of e-commerce in India.
 Snapdeal eyes $1bn sales by FY'15
PTI | Jan 9, 2014, 06.46 PM IST

• Homegrown online market place Snapdeal

expects sales on its platform to cross $1
billion by March 2015, buoyed by boom in
the e-commerce segment. 

The company expects to close the

ongoing fiscal with over $500 million in
sales through its platform. 
• Myntra.com is an Indian online shopping
retailer of fashion and casual lifestyle
products, headquartered in Bangalore
• Myntra was established by Mukesh
Bansal, Ashutosh Lawania, and Vineet
Saxena in February 2007. All three are
IIT alumni, and have worked for several
start-ups
• Myntra has tied up with top fashion and
lifestyle brands in India, such as Nike,
 Reebok, Puma, Adidas, Asics, Lee, Levis, FILA,
CAT, Timberland, Steve Madden, Biba, FabIndia
etc. to offer a wide range of current season
merchandise from these brands. 
• Myntra.com currently offers close to 50,000
products from more than 600 Indian and
international brands
•Myntra.com is an aggregator of many brands. Its business
model is based on procuring current season merchandise from
various brands and making them available on the portal at the
same time as in respective retail brand outlets. All these
products are offered to customers on MRP.
•In October 2007, Myntra received a seed funding from Accel
Partners (formerly Erasmic Venture Fund), Sasha
Mirchandani from Mumbai Angels and another angel investor.
In November 2008, Myntra raised with its A funding of $5
million from NEA-IndoUS Ventures, IDG Ventures and Accel
Partners.
•In February 2014, Myntra raised additional $50 Million
Funding from Premji Invest and few other Private Investors.
 Let’s merge, Flipkart tells Myntra
Boby Kurian & Samidha Sharma, TNN | Jan 30, 2014, 07.15AM

• : Indian e-commerce biggie Flipkart has approached crosstown rival Myntra

with a merger deal propelled by the larger, common investors behind the
two Bangalore based e-tailers, people directly aware of the matter said. This
development unfolded even as Myntra was sealing a $50-million (around Rs
300 crore) fund-raise from a consortium of investors led by PremjiInvest,
first reported by TOI in its November 19 edition last year.

• Myntra is expected to post sales of about $100 million in fiscal

• 2014, with Flipkart hoping to clock similar numbers for its fashion business .
Myntra, which posted its best ever monthly sales of $14 million in December
last year, believes it has enough steam left for a ramp-up in the next two
years, and a sale would undermine its valuation upside in the future.
 Myntra talks up growth, opts for
Premji deal
TNN | Jan 31, 2014, 06.05AM IST
• BANGALORE/MUMBAI: The founders of online fashion
retailer Myntra on Thursday decided to go for a fund
raising deal with PremjiInvest led investor consortium,
overlooking a merger offer from its bigger

• e-commerce rival Flipkart.

• Myntra, which reported best ever monthly sales of $14

million in December, is expected to end the current fiscal
with more than $100 million in gross sales.
 India has an internet user base of about 137
million as of June 2012.The penetration of e-
commerce is low compared to markets like the
United States and the United Kingdom but is
growing at a much faster rate with a large
number of new entrants.
Unique to India (and potentially to other
developing countries), cash on delivery is a
preferred payment method. India has a vibrant
cash economy as a result of which 80% of Indian
e-commerce tends to be Cash on Delivery.
• India's e-commerce market was worth about $2.5 billion in
2009, it went up to $6.3 billion in 2011 and to $14 billion in
2012.
• e-commerce market grew at a staggering 88 per cent in 2013 to
$ 16 billion, according to a survey by industry body Assocham
• About 75% of this is travel related (airline tickets, railway
tickets, hotel bookings, online mobile recharge etc.).
• India has close to 10 million online shoppers and is growing at
an estimated 30%CAGR vis-à-vis a global growth rate of 8–10%.
• Electronics and Apparel are the biggest categories in terms of
sales.
• India's retail market is expected to grow to $675 Bn by 2016
and $850 Bn by 2020, – estimated CAGR of 7%. 
 The Growth Story of E-Commerce in India

• Started in India in the year with the introduction of B2B portals in 1996, now
E-Commerce is all set to become one of the successful medium for business
transactions.
• Between 2000 and 2005: The first wave of E-Commerce in India was
characterized by a small online shopping user base, low internet
penetration, low consumer acceptance of online shopping and inadequate
logistics infrastructure.
• Between 2005 and 2010:There were two major transitions that aided in
the build of E-Commerce story in India. They were: 
• Online Travel:The entry of Low Cost Carriers (LCCs) in the Indian aviation
sector in 2005 marked the beginning of the second wave of e-Commerce in
India.
• Online Retail: The growth of online retail was partly driven by changing
urban consumer lifestyle and the need for convenience of shopping at
home. This segment developed in the second wave in 2007 .New businesses
were driven by entrepreneurs who looked to differentiate themselves by
enhancing customer experience and establishing a strong market presence.
• 2010 onwards:
• Group buying: Starting in 2010, the group buying and daily
deals models became a sought after space for entrepreneurs
in India, emulating the global trend.
• Social Commerce: It is a key avenue for E-Commerce players
to reach out to target customers. Companies have started
establishing their presence in the social media space for
branding activities, connecting with customers for feedback
and advertising new product launches.
• Present Scenario: India’s E-Commerce market grew at a
staggering 88% in 2013 to $16 billion, riding on booming
online retail trends and defying slower economic growth,
according to a survey by industry body ASSCHOM.
Key drivers in Indian e-commerce are:
• Increasing broadband Internet and 3G penetration.
• Rising standards of living 
• Availability of much wider product range compared to what
is available at brick and mortar retailers 
• Busy lifestyles, urban traffic congestion and lack of time for
offline shopping
• Increased usage of online classified sites, with more
consumer buying and selling second-hand goods
• Evolution of the online marketplace model with sites like
eBay,Flipkart, Snapdeal, Infibeam,qnetindia.in and Tradus.
• As of 2012, most of the e-commerce
companies are yet to start making money.
However, due to their growth prospects, many
venture capital firms such as Accel Partners
have invested considerably.
• In one of the biggest fund
raising, Flipkart.com, in August 2012,raised
about 822 crores.
• Entertainment ticketing website
BookMyShow.com raised  100 crore investment
by Accel Partners.
In 2012, Ernst & Young
conducted a research
study on the Indian e-
Commerce sector,
The report focused on the
key e-Commerce segments
— travel, retail and
classifieds — along with
elaborating on the
ecosystem, investment
scenario and operational
challenges.
• The e-Commerce market in India has enjoyed
phenomenal growth of almost 50% in the last five years.
• Although the trend of e-Commerce has been making
rounds in India for 15 years, the appropriate ecosystem
has now started to fall in place.
• The considerable rise in the number of internet users,
growing acceptability of online payments, and the
proliferation of internet-enabled devices are the key
factors driving the growth story of e-Commerce in the
country.
• The number of users making online transactions has
been on a rapid growth trajectory, and it is expected to
grow from 11 million in 2011 to 38 million in 2015.
 A SURVEY TO STUDY THE TRENDS OF E-COMMERCE AMONG
STUDENTS

•  What services do you avail online?

•  What mode of shopping do you prefer (rank your preference)?
•  Online shopping
• traditional offline shopping
•  
• What products do you usually shop online for?
•  Which online stores do you visit?(list in decreasing order of preference)
•   Are you satisfied with the
•  Time taken to deliver the product?
• Condition in which product is delivered?
 
•  Did you face any problem/ malfunction (time delay, bad condition of product)?
Did
the service provider compensate for the inconvenience? If yes then how?
 According to the above given questionnaire a survey conducted on 20
students gave the following information:
The different online services that people avail are-
Service percentage of people availing service
Online Banking 20%
Shopping 60%
E-ticketing 60%
Phone recharge 15%
Mode people prefer for shopping-
Mode percentage of people availing
service
Online 25%
Offline 75%
Products people shop online for-
 
Products percentage of people
Clothes 50%
Footwear 25%
Accessories 10%
Electronic goods 25%
Books 35%
Stores they shop online for-
 
Store percentage of people
Flipkart 70%
Ebay 20%
Snapdeal 15%
Jabong 55%
Amazon 15%
Myntra 45%
30

25

20

number of people
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banking shopping e-ticketing recharge phone
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clothes footwear accessories electronic books
goods
• http://articles.economictimes.indiatimes.c
om/2013-11-24/news/44412771_1_e-
commerce-space-marketplace-model-cent-
fdi
• www.ey.com/...eCommerce_in_India/.../EY
_RE-BIRTH_OF_ECOMME...IBEF Report
on E-Commerce
• ASSOCHAM Report on E- Commerce
• timesofindia.indiatimes.com