E-COMMERCE

INTRODUCTION OF E-COMMERCE

HISTORY AND ORIGINS OF E-COMMERC

Electronic commerce is exactly analogous to a market place on the

internet.Electronic commerce consists primarily of the distributing ,buying ,selling

,marketing and servicing of product of services over electronic system such as the internet

and other computer network .E-commerce follows the some basic principles that traditional

commerce follows that is buyers and sellers exchange and transport goods from one place to

another.But rather than conducting business in the traditional way -in stores and other

“Brick and motor “ buildings or through mail order catalog and telephone operators in E-

commerce buyers and sellers transact business over networked computer.

E-commerce offers buyers convence.They can visit the world wide web sites

of multiple vendors 24 hours a day and seven days a week to compare prices and make

purchases ,without having to leave their homes or offices. In some cases consumers can

immediately obtain a product or services such as an electronic book ,a music file ,or

computer software ,by downloading it over the internet .

For sellers ,e commerce offers a way to cut cost and expand their market.

They do not need to build staff or maintain a store or print and distribute mail order tracking

billing system cut additional labour cost ,and if the product for service can be downloaded ,e-

commerce firms have no distribution cost .

1
 E-COMMERCE

Because they sell over the global internet .Sellers have the potential to market

their products or services globally and are not limited by the physical location of a store.

Internet technologies also permit sellers to track the interest and preference of their

customers with the customers permission and then use this information to build an ongoing

relationship with the customers by customizing product and services to meet customer’s

needs.

At the close of the 20 century ,retail transaction made up the largest part of

e-commerce . Consumers purchased computers ,airline tickets ,food ,furniture and countless

other commodities over the internet . Business- to -business commerce represented one of

the fastest growing segments of E-commerce . Business ordered supplier and coordinated

project electronically

2
 E-COMMERCE

E-commerce also has some dis -advantages however ,consumers are reluctant

to buy some product online . Online furniture business , for examples ,have failed for the

most part because customers want to test the comfort of an expensive item such as sofa

before the purchased it . Many people also consider shopping a social experience . For

instance ,they may enjoy going to a store or a shopping mall with friends or family , an

experience that they cannot duplicate online consumers also need to reassured that credit

card transaction are secure and that their privacy is respected . E-commerce according to

person halls book e-commerce started in 1994 with the first banner and being placed on a

website.

MEANING

E -commerce is a transaction of buying or selling online . 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 system and automated data collection system .

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

.Typical e-commerce transactions include the purchase of online books (such as amazon

)and music purchase (music download in the form of digital distribution such as itunes

3
 E-COMMERCE

store ),and to ales extent ,customized /personalized online liquor store inventory services .

There are three areas of e-commerce :online retailing ,electronic market ,and online auctions

.E-commerce is supported by electronic business .

DEFINITION

Electronic commerce (e-commerce ) is the marketing ,buying ,selling of

merchandise or services over the internet .It encompasses the entire scope of online product

and service sales from start to finish .E-commerce tools include computer platform,

applications ,solutions, servers and various software formats manufactured by ecommerce

service providers and purchased by merchants to increase online sales .

E-commerce facilitates the growth of online business .It is categorised as

follows:-

 Online marketing

 Online advertising

 Online sales

 Product delivery

 Product service

 Online billing

 Online payment
4
 E-COMMERCE

HISTORY AND ORIGINS OF E-COMMERCE

E-commerce has a rich history .starting with primitive electronic data

transaction in the 1960s and the first online retail transaction in 1994 all the way upto the

present day popularity of e-commerce giants such as amazon and ebay .By looking at the

some of the landmark events in e-commerce history . It ‘s easy to see why the time is rip for

business leaders to take advantages of the myriod opportunities online retail provides.

Even during the 1960s businesses conducted electronic transaction via

primitive computer networks. Through electronic data interchange (EDI), they were able to

share business documents with other companies’ machines. During the same time period the

military created ARPA net ,which enabled important information to the circulated in the

event of nuclear attack .These innovations laid the ground work for e-commerce as it is

known today. In fact , when ARPA net switched to transmission control protocol and inter

net protocol (TCP/IP)in 1982 ,it utilised the same type of technology that powers the internet

of today.

In the yearly 1980s ,research universities were still the primary owners of

computers .However ,those who had access to computers could send emails and share

documents through networks like BITNET and USENET for home pc users ,computer serve

was the major service provider of message boards, chat rooms and more . computer serve
5
 E-COMMERCE

introduced the electronic malls in 1984 , which aloud users to purchase from more than

hundred online retailers . The service was not a big success ,but it was one of the first

examples of online retails. Then in 1991,the national science foundation listed its ban on

commercial internet use .This historic movement ecommerce possible .

Security was the next big issue ,and there lease of net scape 1.0 in 1994

featured a protocol called secure socket layer (SSL)that kept both the sending and

receiving side of an online transaction secure .SSL made sure that personal information

could be encrypted on the web .The first third-party credit card processing companies were

launched shortly after . This made the first ever secure online retail transaction possible .On

August 11,1994 , the new York times reported that a man named”PHIL BRANDEN

BERGER” from phila Delphia purchased a sting album from his computer . This opened up

a staggering opportunity for innovation entrepreneurs to capitalised on this emerging trends

with the advent of amazon and ebay the following year it’s an under statement to say that

the pace of e-commerce spread up soon after.

6
 E-COMMERCE
ADVANTAGES AND DIS ADVANTAGES OF E-COMMERCE

ADVANTAGES OF E-COMMERCE

E-commerce advantages can be broadly classified into three major category:-

 Advantages to organisation

 Advantages to consumer

 Advantages to society

ADVANTAGES TO ORGANISATION

 Using e-commerce ,organisation can expand their market to national and

international markets with minimum capital investments. An organisation can easily

locate more customers ,best suppliers, and suitable business partners across the globe.

E-commerce helps organisation to reduce the cost to creat process ,distribute retrieve and

manage the paper based information by digitizing the information .

 E-commerce improves the brand image of the company .

 E-commerce helps organisation to provide better customer service .

 E-commerce helps to simplify the business process and makes them faster and

efficient.

 E-commerce reduces the paper work .

7
 E-COMMERCE
 E-commerce increase the productivity of organisation .It supports “pull” type supply

management. In “pull”type supply management ,a business process start when a

request comes from a customer and uses just-in-time manufacturing way .

8
 E-COMMERCE

ADVANTAGES TO CUSTOMER

 It provides 24*7 hours support .Customer can enquiry about and service place any

time,any where from any location.

 E-commerce application provide users with more option and quicker delivery

products.

 E-commerce application provides users with more option to compare and select the

cheaper and better option.

 A customer can put review comments about a product and can see what others are

buying and see the review comments of others customers before making a final

purchase .

 E-commerce provides option of auctions.

 It provides readily available information .A customer can see the relevant detailed

information within seconds ,rather than waiting for a days or weeks.

 E-commerce increase the competition among organisations and as a result,

organisation provide substantial discount to customers.

9
 E-COMMERCE

ADVANTAGES TO SOCIETY

 Customer needs not travel to shop a product , thus less traffic on road and low air

pollution.

 E-commerce helps to reducing the cost of products, so affluent people can also afford

the products.

 E-commerce has enabled rural areas to access service and products which are

otherwise not available to them.

 E-commerce helps the government to deliver public services such as health care

education ,social service at a reduced cost in an approved manners.

10
 E-COMMERCE

DIS ADVANTAGES OF E-COMMERCE

The disadvantages of E-commerce can be broadly classified into two major

categories :-

1.Technical disadvantages.

2.Non-technical disadvantages.

TECHNICAL DIS ADVANTAGES

 There can be lack of system security,reliability or standards owing to poor

implementation.

 The soft were development industry is still evolving and keeps changes rapidly .

 In many countries ,network hand with might cause an issue.

 Special type of web servers or other software might be required by the vendor,

setting the E-commerce environment apart from network servers .

 Sometimes, it becomes difficult to integrate an E-commerce software or website with

existing applications or data bases.

 There could be soft ware /hardware compatibility issues ,as some e-commerce

software may be incompatible with some operating system or any other component.

11
 E-COMMERCE

NON TECHNICAL DISADVANTAGES

 Initial cost:-The cost of creating /buildings an e-commerce applications in house may

be very high .There could be delays in launching an e-commerce application due to

mistakes and lack of experience .

 User restistance:-Users may not trust the site being an unknown faceless seller.

Such miss trust makes it difficult to convience traditional users to switch from

physical stores to online /virtual stores.

 Security/ privacy:-It is difficult to ensure the security or privacy on online

transactions.

 Lack of touch or feel of products during online shopping is a drawback.

 E-commerce applications are still evolving and changing rapidly.

12
 E-COMMERCE

SCOPE AND CHALLENGES OF E-COMMERCE

Electronic commerce is more than just buying and selling products online .It also

includes the entire online process of developing marketing ,selling delivering ,servicing and

paying for products and services . India has shown tremendous growth in the e-commerce

segment with an internet user base of over 300 millions . India has third largest internet

population after USA and china.( see info graphic below)

13
 E-COMMERCE

India has witnessed a major break through e-commerce success stories particularly

in e-retail in consumer electronics and fashion apparel and home furnishing segments. E-

commerce creats new opportunities for entrepreneurial start ups. Ease of internet access safe

and secure payments modes coupled with aggressive marketing by e-commerce giants has

revolutionized this segment .Rapid development in mobile technology has given way to

mobile commerce with many e-commerce companies shifting to app only model.

Exibit 2 growth forecast for online retailing and market place in india.

14
 E-COMMERCE

Challenges of E-commerce

E-commerce, in spite of the opportunities it presents also has poses certain challenges

which are sometimes too much to handle for start-ups:-

1.Finding the right product to sell:-Shopping cart platform like shopify have eliminated

many barriers of entry . Anyone can launch an online store within days and start of

products. Amazon is taking over the e-commerce world their massive online products

catalog .Their market place and fulfilment services have enable sellers from all over the

world to easily reach paying customers.

Let’s not forget about aliexpress. They have simplified products sourcing

by giving access to Chinese manufacturer within a couple of clicks .All of this has made it

very difficult for retailers.

15
 E-COMMERCE

2.Attracting the perfect customer:-Online shoppers do not shop the same way as they

used to back in the day .they use amazon to search for products (not just google) . They ask

for recommendation on social media .They use their smart phones to read product revies

while in store and pay for purchase using all sorts of payment method .Lots has changed

including the way they consume content and communicate online .They get easily distracted

with technology and social media .Retailers must figure out where their audience is and how

to attract them efficiently without killing their marketing budgets.

3.Generating targeted traffic:- Digital marketing channels are evolving .Retailors can no

longer really one type of channel to drive traffic to their online store .They must effectively

leverages ,SEO,PPC,Email,Social,display ads, retargeting ,mobile ,shopping engines and

affiliates to help drive qualified traffic to their online store. They must be visible where

there audience is paying attention.

4.Capturing quality leads:-Online retailers are spending a significant amount of money

driving traffic to their online store with conversion rates ranging between 1% to 3% they

must put a lot of effort in generating leads in order to get the most out of there marketing

efforts .The money is in the list . Building an email subscribers list is key for long term

success ,not only will help you communicate your message ,but it will also allow you to

present better using tools such as facebook custom audiences. Not all leads are created

16
 E-COMMERCE

equally . Retailers must craft the right message for the right audience in order to convert

them into leads with hopes of turning them into customers.

5.Nurturing the idle prospect:-Having a large email list is worthless if you are not actively

engaging with subscribers .As small percentages of your email list will actually convert into

paying customers. Nontheless, retailers must always deliver value with their email

marketing efforts . Online retailers put a lot of focus on communicating product offering as

well as promotion ,but prospects need more than that .Value and entertainment goes long

way but that requires more works.

6.Converting shoppers into paying customers :-Driving quality traffic and nurturing leads

is key if you want to close the sale .At a certain point , you need to convert those leads in

order to pay for your marketing campaigns. Retailers must constantly optimize their efforts

in converting both email leads as well as website visitors into customers .conversion

optimization is a continuous process.

7.Retaining customers:-Attracting new customers is more expensive than retaining the

current ones you already have .Retailers must implement tactics to help them get the most

out of their customer base in increase customer life time value.

17
 E-COMMERCE

8.Achieving profitable long term growth:-Increase sales is one way to grow the business

but in the end, what matter most is profitability . online retailers must always find way to

cut inventory costs ,improve marketing efficiency ,reduce overhead, reduce shipping costs

and control order returns .

9.Choosing the right technology and partners:-Some online retailers may face growth

challenges because their technology is limiting them or they have hired the wrong partners/

agency to help them manage their projects .Retailers wanting to achieve growth must be

built on a good technology foundation . They must choose the right shopping cart solution,

inventory management software ,email software, CRM system ,analytic and so much more.

10.Attracting and hiring the right people to make it all happens:-Lets face it,online

retailors may have vision and aspiration but one true fact remains ,they need the right people

to help them carry out there desires. Attracting the right talent is key in order to achieve

desirable online growth .Also having the right leader plays in even bigger role.

18
 E-COMMERCE

IMPORTANCE OF E-COMMERCE

1.Exploitation on new business:-

Broadly speaking ,electronic commerce emphasizes the generation and

exploitation of new business opportunities and to use popular phrases :”generate business

value” or” do more with less”.

2.Enabling the customers:-

Electronic commerce is enabling the customer to have an increasing say in

what products are made ,how products are made and how services are delivered. Movement

from a slow order fulfilment process with little understanding of what is taking place inside

the firm ,to a faster and explore open process with customer having greater control.

3.Improvement o business transaction:-

Electronic commerce endeavours to improve the execution of business

transaction over various networks.

4.Effective performance :-

It leads to more effective performance I.e ,better quality , greater

customers satisfaction and better corporated decision making .

5.Greater economic efficiency: -

We may achieve greater economic efficiency (lower cost) and more rapid exchange

(high speed ,accelerated, or real time interaction) with the help of electronic commerce.
19
 E-COMMERCE

6.Execution of information:-

It enables the execution of information -laden between two more parties

using inter connected networks .These network can be a combination of” plain old telephone

system “ (POTS),cable TV, lease line and wireless. Information based transaction

are creating new ways of doing business and even new types of business.

7.Incorporating transaction :-

Electronic commerce also include in corporates transaction management

,which organizes ,routes,processes and track transaction .It also includes consumers making

electronic payment and fund transfer.

8.Increasing of revenue :-

Firm use technology to either lower operating costs or increase revenue.

Electronic commerce has the potential to increase revenue by creating new markets for old

products ,creating new information based product and establishing new services delivery

channel to better serve and interact with customers. The transaction management aspects of

electronic commerce can also enables firm to reduce operating cost by enabling better

coordination in the sale , production and distribution process and to consolidate operation

arid reduce overhead.

9.Reduction of fraction:-Electronic commerce research and its associated implementation

is to reduce the “friction” in online transaction friction is after described in economics as

20
 E-COMMERCE

transaction cost. It can arise from inefficient market structures and inefficient combination

of the technological activities required to make a transaction .Ultimately, the reduction of

friction in online commerce will enable smoothed transaction between buyers, intermediaries

and sellers.

10.Facilitating of network forms:-

Electronic commerce is also impacting business to business transaction .

It facilitates the network form of organisation where small flexible firms really on other

partners ,companies for component supplier and product distribution to meet changing

customer demand more effectively .Hence, an end to relationship management solution is a

desirable goal that is needed to manage the chain of networks linking customers, workers

,suppliers ,distributors and even competitors .The management of “online transaction” in the

supply chain assumes a central role .

11.Facilitating for organizational model:-

It is facilitating an organizational model that is foundentaly different from

the past .It is a control organization to the information based organization . The emerging

forms of techno-organizational structure involve changes in managerial responsibilities ,

communication and information flows and work group structure.

21
 E-COMMERCE

E-COMMERCE PAYMENT SYSTEM

AND E-COMMERCE BUSINESS APPLICATION

When we purchase goods and services online ,you pay for them using an electronic

medium .This mode of payment ,without using cash or cheque ,is called an e-commerce

payment system and is also known as online or electronic payment system .

The growing use of internet -based banking and shopping has seen the growth of

various e-commerce payment system and technology has been developed to increase

,improved and provide secure e-payment transaction .

Paperless e-commerce payments have revolutionized the payment processing by

reducing the paper work , transaction costs ,and personal cost .The system are user friendly

and consume less time than manual processing and help businesses extend their market

reach.

Types of e-commerce payment system

1.CREDIT CARD:-

The most popular form of payment for e-commerce transaction in through

credit cards. It is simple to use ,the customer has to just enter their credit card number and

date of expiring in the appropriate area on the sellers web page .To improve the security

system ,increase security measures ,such as the use of a card verification number

22
 E-COMMERCE

(CVN)have been introduced to online credit cards payment . The CVN system helps detect

froud by comparing the CVN number with the card holders information.

2.DEBIT CARD:-

Debit card are second largest e-commerce payment medium in india.

Customer who want to spend online within their financial limits prefer to pay with their

debit cards.With the debit cards ,the customer can only pay for purchased goods with the

money that is already there in his/her bank account as opposed to the credit card where the

amount that the buyer spends are billed to him /her and payments are made at the end of

the billing periods.

3.SMART CARD:-

It is aplastic card embed with a microprocessor that has the customer personal

information stored in it and can be loaded with funds to make .Online transaction and instant

payment of bills .The money that is loaded in the smart card reduces as per the usage by the

customer and has to be reloaded from his/her bank account.

4.E-WALLET:-

E-wallet is a prepaid account that allows the customer to store multiple credit

card, debit cards ,and bank account number in secure environment .This eliminates the needs

23
 E-COMMERCE

to key in account information every time while making payments .Once the customer has

registered and created E-wallet profile ,he /she can make payment faster.

5.NET BANKING:-

This is another popular way of making e-commerce payments. It is a simple

way of paying for online purchases directly from the customer bank .It uses a similar

method to the debit card of paying money that is already there in the customers bank .Net

banking does not requires the user to have a card for payment purposes but the user needs to

registered with his her bank for the net banking facility. While completing the purchase the

customer just needs to put in their net banking ID and PIN.

6.MOBILE PAYMENT:-

One of the latest ways of making online payments in through mobile

phones. Instead of using a credit card or cash ,all the customer has to do in send a payment

request to his /her service provider via text message ,the customers mobile account or

credit card is charged for the purchase .To set up the mobile payment system ,the customer

just has to download a software from his/ her service provider’s website and then link the

credit card or mobile billing information to the software.

7.AMAZON PAY:-

24
 E-COMMERCE

Another convenient ,secure and quick way to pay for online purchases is through

amazon pay .Use your information which is already stored in your amazon account

credentials to log in and pay at lending merchant websites and apps. Your payment

information is safely stored with amazon and accessible on thousands of websites and apps.

Your payment information is safely stored with amazon and accessible on thousands of

websites and apps where you love to shop.

If you are planning to sell your product online , amazon would be happy to

help you in setting up payment gateway for your products and services . You can also

consider selling on amazon ,one of the most popular e-commerce platform in the world .

To sell on amazon ,please register yourself for free.

E-COMMERCE BUSINESS APPLICATION

Now a days nearly every company and organization makes the use of the

internet to perform business deals and transaction, let us take a look at this a little more

closely.

E-commerce or electronic commerce that is business done online or

electronically with the use of internet or any other computer networking system is applied

into the four main section of business given below :-

 E-commerce applications in the manufacturing sector.

 E-commerce applications in the wholesale sector.

 E-commerce applications in the retail sector.

25
 E-COMMERCE

 E-commerce applications in the service sector.

1.E-commerce applications in manufacturing sector :-Manufacturing can be

defined as the process of collecting and then converting raw material into finished

,qualitative goods or product for the consumer.

Manufacturing requires a web of various components ,contracts personnel

etc ,working intricately together and in synch in order to produce goods or services.

Manufacturing requires components ,assemblies ,transportation ,storage paper work ,etc.

E-commerce applied to the supply chain management process helps in reducing the overall

costs directly and improve quality and efficiency by automating most of the supply chain.

2.E-commerce application in wholesale sector:-

Selling goods or product in large quantities to anyone other than the

consumers, take for examples the retailers ,industrial ,commercial or other business users or

even distributors are known as wholesalers.

Physical assembling ,sorting and gradding goods in large lots ,breaking

bulk,re packing and re-distributing in smaller lots is all a part whole sale.

 Traditional system of wholesale:-Problems faced by the

The local whole seller could not complete with the foreign wholesale

enterprises who had acquired highly advanced management and operational skills over due

time .

26
 E-COMMERCE

The wholesale sector was characterized for its high input and low output.

whole sale operating cost which include staffing ,setting up and acquiring land for local were

houses establishing distribution centre ,etc were extremely high.

Role of e-commerce in wholesale :-

 Reduce operating cost ,access to accurate and correct information on time and quick

response helps in qualitative and efficient decision making .

 Ability if doing global marketing in less time and cheaper.

 Gaining and catching upto the competitive edge held by foreign wholesaler such as

MNC’S.

 Offers a wide and extensive range of information ,intermediary and business services.

3.Ecommerce application in retail sector:-

Selling of goods and services to the consumer for their personal consumption

and use is known as retailing .

Take for example ,E bay .com, Departmental stores , then service like dentist

,doctors, hotels etc. Retailor provider link between the consumer and the manufacturers and

add value to the products and services by making there sales easier.

27
 E-COMMERCE

Retailor answer any quartiers that you may have they display and

demonstrate products to the consumer before selling it to them this makes the services by

retailors less risky and more fun to buy poducts .They even provide extra services from

personal shopping to gift wrapping and home .

Role of e-commerce in retailing :-

The internet has made retailing an exciting and challenging field in recent

days with various companies hosting their stores online via the internet. people can now sit

at their computers open the website they they desire to do so on add browsers there

catalogue put up by the company (retailers),choose there products and either pay for it online

itself or on delivery .You don’t need to step out your room to make a purchase now a days.

Having your store online helps drastically in cost cutting as companies don’t need to

purchase store , they can cut down on staff ,provide services to a much wider audience ,etc.

4.E-commerce application in the service sector :-

One of the three main industrial category of a developed economy is

the is the service sector. It involves basically the provision of all services such as distribution

and sell of goods to other businesses and consumer such as pest control ,entertainment and

even services such as transportation .It also includes the public utilities and the soft parts of

the economy such as insurance ,banking education etc. the service sector focus mainly on

people to people services.

28
 E-COMMERCE

Issues faced by the service sector:-

Since service are intangible ,it’s extremely difficult to make customer

understand and aware about there benefits. Equality of services depends solety on the quality

of the individual providing the services. There is no special technology or anything like in

manufacturing to attract people.

Role of e-commerce in the service sector:-

E-commerce helps in improving and increasing the speed of transaction

,reduces management expenditure ,and increase efficiency and increase competitiveness .

Help the insurance ,banking mainly all the financial sectors ,real estate ,telecommunication

,tourism ,logistic,and postal services.E-commerce also helps services gain a competitive

advantages by providing strategies for differention,cost leadership and customer satisfaction.

29
 E-COMMERCE

TOP 10 E-COMMERCE COMPANY IN 2019

GROWTH OF E-COMMERCE IN INDIA

IMPACT OF E-COMMERCE ON THE INDIAN ECONOMY

CONCLUSION

India is one of the best places to launch an online shopping websites. A huge

number of people are now adopting this model of buying product online and few E-

commerce giants are cashing this huge market in some style .Most valuable and biggest Top

10E-commerce companies in india as of 2019.Top shopping websites in india by market

value and visit.

These 10 E-commerce giants are biggest and most valuable online shopping

market place in india right now based on their market capitalization as of 2019. Have look on

some of the best e-commerce sites in india :-

1. Amazon india:-

30
 E-COMMERCE

Amazon is an American electronic commerce and cloud computing company

,based in seattle,was founded by JEFF BEZOS’on july 5,1994. This online site started is

selling being a look store but slowly adding to its cart more variables like the DVD’S,CD’S,

software for downloading ,video games ,apparels ,food ,toys, etc. Amazon is also known for

the notable consumer electronic goods like the kindle books reader , fire tablets ,TV and

phones. It also into selling cheap USB cables which are branded and best in quality .

World leader E-commerce company amazon has emerged as the top most e-

commerce in india as well ,in last few years.

With a wide range of product Amazon has also started focusing on their delivery

service by providing delivery within one day to their customers. To counter its competitors

,more than 8500 crores has been invested by amazon global in amazon india.

31
 E-COMMERCE

2.FLIPKART:-

Founded in 2007 by SACHIN BANSAL and BINNY BANSAL ,FLIPKART

is one of the best e-commerce companies in india. It has set a perfect examples for all start

up aspirant by growing a thousand times over a decade .FLIPKART provides all kinds of

product ,from product basic needs to stylish and luxurious product that are feasible .The

market value of FLIPKART is US $15 billion presently.

3.SNAPDEAL:-

32
 E-COMMERCE

Started in 2010 by two graduates KUNAL BAHL and ROHIT BANSAL,

SNAPDEAL ranks third in the top ten list of e-commerce companies. Headquarter in new

Delhi, SNAPDEAL. Provides a wide variety in it’s products along with attractive daily

local deals such as on restaurant ,spas, travelling apps etc.

4.PAYTM:-

33
 E-COMMERCE

PAYTM the 4th largest commerce companies, journey of the paytm started from

mobile wallet that provide features like online recharge of mobile .2 years back paytm has

entered in the e-commerce industry by launching its e-commerce plat form paytm mall ,

from paytm customer has the opportunity to buy approvals , electronic products , mobiles

and tablets .PAYTM was founded on january 1st 2010 and has become lending ecommerce

company within 7year ,in the year 2017 paytm have raised 4.4 billion US dollar funding

from soft bank .

5.JABONG:-

Jabong .com is founded by ARUN CHANDRA MOHAN , PRAVEEN

SINHA,LAKSMI POTLURI and MONU KUMAR JAIN. Jabong .com is an indian fashion

and life style e-commerce portal. The portal sales appareal foot wear fashion accessories

34
 E-COMMERCE

,beauty products, fragrance home accessories and other fashion and life style product . As

per rocket internet investors presentation ,jabong had a net revenue of 32.6 million euros in

the year 2016, up 14%from 28.6 million euros in the years ago period .for financial year

2015 , its revenue were at 122.1 million euros .

6.EBAY:-

The action web was founded in California on September 3,1995, by

FRENCH BORN .Iranian American computer programmer pierre omidyar as part of a

larger personal site .One of the first item sold on auction web was a broken laser pointer for

$14.83. Astonished ,omidyar contacted the winning bidder to ask if he understood that the

35
 E-COMMERCE

laser pointer was broken . In his responding email the buyer explained I’m a collector of

broken laser pointer.

Reportedly , e bay was simply aside hobby for omidyar until his internet

service provider informed him he would need to upgrade to a business account due to the

high volume of traffic to his websites .The resulting price increase (from$30/month to$250)

forced him to start charging those who used ebay, and was not met with any unimosity.It

resulted in the hiring of chris Agarpao as ebay first additional employee to process mailed

checks coming in for fees.

7.SHOPCLUES:-

36
 E-COMMERCE

SHOPCLUES is another prominent player of e-commerce industry . It was started

in the year 2011 by SANDEEP and RADHIKA AGARWAL. SHOPCLUES deliver product

at more than 30,000 pin code across the india and 60% business generating in shopclues

from mobile app.Company has three fulfilment centre in an india till date company has

raised over 10 million dollars from different VC funds and presently it has valuation of 1.1

billion US dollar .More than 5 lakh sellers are associated with the company and they are

setting their products in 9 different categories that include mobile ,electronics ,computers

,camera etc.

8.MAKE MY TRIP:-

MAKE MY TRIP is leading Ecommerce company that basically

sales air tickets ,bus tickets ,holiday packages train tickets .Make my trip started in the year

37
 E-COMMERCE

2000 and has head office in GURGAON. Company was founded by DEEP KALRA who

was man alumina of indian institute of management.

9.HOMESHOP 18:-

The HOMESHOP18 television channel was launched on 9th april

2008.the television network can be currently seen on cable ,satellite and some terrestrial

channels in india.It also becomes the countries first ever 24/7 home shopping channels to to

be available on DD free dish reach ,a free-to -air direct -to -home (DTH)broad casting

platform of Prasar bharati . The channel has been made available from November 1st 2015.

Homeshop 18 is an indian online and on air shopping channel owned by the network 18

group division of reliance industries.Having launched india ‘s first 24 hour Home shopping

38
 E-COMMERCE

TV channel , this e-commerce enjoy the whole variety of home appliances doing with a

simple way.

10.BOOK MY SHOW:-

Book my show is placed at 10th position the list of top 10 E-

commerce companies in india . the first websites that comes to our mind while booking

movies tickets online in book my show.Launched in 2007,BOOK MY SHOW is an online

movie and event ticketing brand. It is head quarter in Mumbai ,Maharashtra also has

offered in new Delhi ,Bangalore ,Hyderabad ,Chennai and Kolkata . The websites caters to

tickets sales for movies ,plays concerts and sporting event via the online platform .Born as

big three entertainment ,BOOK MY SHOW was founded by ASHISH

HEMARAJANI,PARIKSHIT DAR and RAJESH BALPANDE,all three alumni of

Sydenham institute of management studies ,research and entrepreneurship education

,university of Mumbai.
39
 E-COMMERCE

GROWTH OF E-COMMERCE IN INDIA

According to report published by international monetary fund (IMF)assess

central statistics office (CSO), India is among the fastest growing economies of the world

Among several fectors ,A conscious patronization of online commerce and and an

emergence of retail as dominant market segment have contributed to the unprecedented

growth of e-commerce in india .For the financial year 2016-17, e-commerce sales reached

the US $16 billion with a projection of a seven fold growth within the next two fiscal as

40
 E-COMMERCE

estimated by morgan stanlay by 2020 online commerce sales is expected to across $120

billion.

The three principle driving factors for this growth in e-commerce sector of india are :-

 Participation of niche companies in online trading

 Unmatched FDI(foreign direct investment)

 Uniform GST(goods and service tax)

The above points describe bellow:-

1.Participation of niche companies:-

With the increase in awareness about the benefit of online trading

,there has been a significant rise in investment in commerce business .Hand in hand with

offline trading ,many established ,business houses have set up online transaction channels

.Online retailing is the “in thing “in today’s commerce .Every other day a new company is

being set in the online retail segment.

Specialization and customization are the under lining features of

online trading .E-commerce companies are specializing in exclusive items and have

consciously moved away from the “one for all “concept. Every new company is focusing on

a definite item or targeting a particular demographic segment .so instead of addressing

universally ,it is better to concentrate on a single area and execute it to your best ability.

Consumer prefers this kind of preferential treatment and personalised attention.

41
 E-COMMERCE

India, being a land full of diversity offer simple scope for new companies to join this e-

commerce business trade .Business opportunities are limitless considering the innumerable

clothing ,food, and cultural habits of indian communities .

2.ROLE OF FDI:-

Foreign direct investment (FDI’s) till lately was not allowed in

ecommerce for the single brand or multi brand retail companies. It was only allowed for

business to business (B2B) .Now ,FDI is allowed in case of wholesale trading or in cases

where involvement is limited to use of technology platform . The ever expanding indian

e-commerce market has extracted companies from Europe and united state who are

joined as conglomerates .

Through FDI has been successful in lending variety to online market

of india ,their full participation is limited by government laws.

3.IMPLIMENTATION OF GST:-

A uniform taxation structure ,which GST(goods and service

tax)purports to achieve would contributes to the success of e-commerce business in

india. Online business is carried out pan india ,and a uniform tax structure makes

calculation easier and uniform . some tax for same products or services across indian

territory would certainly help in maintaining price uniformity.For online business

operators ,differential tax structure was a deterrent.

42
 E-COMMERCE

IMPACT OF E-CMMERCE ON THE INDIAN ECONOMY

E-commerce is a growing sector in india . just like the growth of IT industry

in india through the 1990s , the 2010s will be remembered for the growth in the e-

commerce industry. In its present state the contribution of e-commerce to GDP is around

0.2% which is expected to grow 15 times to around 2.5% by 2030.

The main impact is so huge that the present web of de-monetization could

have not been throught if e-commerce did not exist E-commerce to a large extent helped

absorb its shock as well as gained the maximum out of its as well.

By 2030 the contribution to GDP by E-Commerce is expected to reach to around 300 Billion

Dollars which is around 20 Billion Dollars in its present state.

43
 E-COMMERCE

After the initial wave of B2C E-Commerce, the B2B sector is gaining a lot of traction. 95%

of the business in the B2B sector is still unroganised and E-Commerce will help organise by

use of technology and other support functions.

The impact of E-Commerce industry are still in very nascent stage but are visible. The

impact at the moment can be seen in the following sectors:-

1. Technology- One of the major drivers of technology will be E-Commerce industry

and vice versa. We are seeing new age technological solutions(AI/Machine Learning)

being taken up to solve the business problems to bring commerce to everyone

digitally. This is seen in both B2C and B2B sector. Investment into technology sector

is happening to drive growth in the E-Commerce domain.

2. Logistics- Logistics industry is both a bottleneck and a driver for e-commerce

industry. For the same we see how last mile and inter-city logistics solutions have

come up to digitally connect the different stakeholders across the country. The Uber

model of moving passengers is implemented in some form or the other in the logistic

44
 E-COMMERCE

sector. The growth of E-Commerce will drive innovation in the logistic sector to make

the products available to the end user.

3. Travel- At the moment 70% of the contribution to E-Commerce comes from the travel

sector which includes the online ticket bookings to other travel arrangements. This has

made the market competitive by bringing all players on the same platform and has also

given consumer more options. Travel industry will be earliest adopters to become

completely digitised and that is thanks to E-Commerce.

4. Education- One of the industries to have the most profound impact of E-

Commerce is the education. The ability of E-Commerce to provide quality

education to everyone is immense. India will have one of the biggest set of youth

population and hence the scope for education sector to be the biggest achievers

because of E-Commerce is sure.

5. Etail- The flag bearers of the E-commerce wave have been the various E-Retail

commerce platforms. Etail sector is projected to contribute to around 3% of the total

Retail sells by 2020 and is at present around 1%. This wave is seen in both B2C and

C2C model and is bound to grow further. This is not only for goods but also has

captured the food sector.

1. Other Industries- The way of working in the Real Estate sector is already seeing the

change because of the E-Commerce industry. This will change further with all

property related transactions coming online and getting closed online as well. Banking
45
 E-COMMERCE

in health care has brought health related solutions to the urban India and will further

penetrate deep into Tier I and Tier II cities.sector is benefiting as well with reduced

operations cost of online transactions. E-Commerce

2. Support Industries- There are various support industries which have developed

because of E-Commerce. These are digital advertising, analytics, payment gateways

etc.. These will become billion dollars sectors as E-Commerce grows exponentially.

Besides the impact to these industries, E-Commerce is helping make the market more

competitive, driving better customer experience and driving accessibility of goods to all. E-

Commerce is also bringing transactions online which makes the system more transparent and

to an extent may further drive technological adoption. This will also help in driving

corruption levels down with everything coming online. The impact are profound and will

evolve with time.

CONCLUSION

After careful observation ,it has come to my conclusion that E commerce has

undenjably become an important part of our society . The world wide web is and will have a

large part in our daily lives.It is therefore critical that small businesses have their own to

keep in competition with the largest websites.Since web developers have lowered down the

prices for their services,it has become more affordable for small businesses to use the world

wide web to sell their products. Although there are negative aspects of e commerce ,small
46
 E-COMMERCE

businesses have tried to accommodate to the need of the consumer .For examples ,one of the

negative aspects of e commerce is that consumers lack the advice and guidance of sellers ,to

accommodate that ,they have customer services through the phone of online to answer any

question .It is also an important to note that e commerce does not benefit all small companies

equally.

How much revenue a business gets from e commerce depends on what kind of

service it gives . For examples,most people would like to try on clothes before they buy

them,so it probably would not benefit a small business that sells clothes as much as a small

business have tried to accommodate to the need of the consumers.For examples,one of the

negative aspects of e commerce is that consumers lack the advice and guidance of sellers,to

accommodate that they have customer service through the phone of online to answer any

questions. It is also an important to note that e commerce does not benefit all small

companies equally.How much revenue a business gets from e commerce depends on what

kind of service it gives. For examples, most people would like to try on clothes before they

buy them.so it probably would not benefit a small business that sells clothes as much as a

small business that sells home supplies or specialty books ,Novelties e commerce does

benefit any business even in small ways. This is why it is crucial to understand home e

commerce affects small business because it is becoming such a huge part of how society

functions that it affects the economy greatly and whatever happens to the economy affect us.

This is why is it important to understand this subject because in the long run , it will affect

all of us.
47
 E-COMMERCE

BIBLIOGRAPHY

BOOKS:-

E-COMMERCE

KAMLESH BAJAJ

DEBJANI NAG

E-COMMERCE

DIKSHA KAKKAR

SAVITA SINDHU

TAMINDER KAUR

WEBLIOGRAPHY

 WWW,E-COMMERCE.COM

 WWW.TUTORIALS POINT.COM

 WWW.BUSINESS TO BUSINESS .COM

 WWW.AGT INDIA.COM

48
E-COMMERCE

49