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E-COMMERCE

Presented by : Anubha

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CONTENT 1. Introduction.2. What is E-commerce?3. Advantages/benefits of e-commerce4. Disadvantages of e-commerce.5. e-commerce in india(video) CENSUS 20126. Drivers of e-commerce.(info )7. Myths related to e-commerce.8. Realities related to e-commerce.9. Consumer research: good customer service trumps price in purchasing

decisions.10. Myntra: Offline store for private brands.11. Conclusion.12. Reference.

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WHAT IS -COMMERCE?

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• “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.

• Modern electronic commerce uses the WORLD WIDE WEB although it may also use other technologies such as E-MAIL.

http://www.slideshare.net/munishsingla71/e-commerce-ppt-10713485

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Advantages/benefits to Organizations• organization can expand their market to

national and international markets with minimum capital investment.

• helps organization to reduce the cost by digitizing the information.

• improves the brand image of the company.

• helps organization to provide better customer services

• helps to simplify the business processes and make them faster and efficient.

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http://www.tutorialspoint.com/e_commerce/e_commerce_advantages.html

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Advantages to Customers• 24x7 support.• provides user more options and quicker

delivery of products.• provides user more options 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 or see the review comments of other customers before making a final buy.

• increases competition among the organizations and as result organizations provides substantial discounts to customers.

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Advantages to Society• Customers need not to travel to

shop a product thus less traffic on road and low air pollution.

• E-Commerce helps reducing cost of products so less affluent people can also afford the products.

• E-Commerce has enabled access to services and products to rural areas as well which are otherwise not available to them.

• E-Commerce helps government to deliver public services like health care, education, social services at reduced cost

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Disadvantages to

customers

Disadvantages to

business

IMAGE SOURCE: 1) http://www.businessnewsdaily.com/43-customer-service-trumps-pricing.html 2) http://technode.com/2013/04/24/chinas-consumer-protection-law-amended-for-online-shopping/

DISADVANTAGES

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DISADVANTAGES TO CUSTOMERS Delay in receiving goods. Chances of product loss.Delivery to wrong address.

Quality . Cannot touch or feel the product

until delivered.

Hidden costs. Extra handling cost in case of

international purchase.

Image source: http://e-commerce2012spring.blogspot.in/2012/03/advantages-and-disadvantages-of-e.html

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(Contd.) Privacy and security Be sure to check for sites certificates of security

before making instant transactions online.

Need access to internet. Basic requirement. Internet access not free. Chance of information theft over an unsecure site

in case of free Wi-Fi usage.

Lack of personal interaction. Chances of queries while using any e-commerce

site. Lots of rules and regulations to read ,may be

confusing when come to legalities. No one to talk to face to face to resolve queries.

Image source: https://e-commerce202.wikispaces.com/Advantages+and+Disadvantages+of+Ecommerce

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DISADVANTAGES TO BUSINESSSecurity issues Hackers break every firewall to get the information they want. Misuse the hacked information. Secure network is required.

Extra expenses & expertise for e-commerce infrastructure. Need technician & warehouse staff. Hire professional to tie up loose ends. Payment of their wages.

Credit card issues. Dispute about billings. Payment refunded back to consumer. Heavy losses.

Image source: http://cyberalert.gr/feelsafe/

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(Contd.)Constant upkeep. Use of additional overhead to keep data bases and

applications running. Must be ready to make changes . System must be kept up-to-date.

Sufficient internet service. Be sure that your area can handle the

telecommunication bandwidth you will need to run effectively.

Delay in delivery. Product loss or damage in transit. Delivery to wrong address. Delay will dissatisfy consumer.

Image source: http://www.thisweknow.org/tag/ecommerce-business-trends

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E-COMMERCE CENSUS 2012 INDIA

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image key drivers 16

KEY DRIVERS OF E-COMMERCE

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Political pressure

1. Government Regulations: Every country have its own rules and regulations but now a days almost every country have well defined cyber laws which provides a right environment for the e commerce.2. Reductions in Government subsidies: Now world is very open, some countries provides lot of rebate in tax and in other forms to do business. But some other countries reducing the soaps for business. E-commerce provides the opportunity to take these challenges.3. Rapid Political Changes: Whenever government changes n any country there are some changes in guidelines and polices towards the business. It is also work as driving force for the e-commerce

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Market and Economic Pressures1. Strong competition: Now competitions the part of any business and companies are implementing new techniques every day to bear their competitors. E-Commerce which is adopted by the companies.2. Global Economy: world becomes a global village.There is huge gap between the growth rate of developed and developing nation, so more and more developed nations are investing in every part of world. E-Commerce is the need of such a scenario.3. Extremely Low Labour Cost in Some Countries: business that companies are having manufacturing units in one are of the world and the same products is marketed in other part of the world. some medium is required to maintain it and e commerce is providing such medium.4. Frequent Changes in Market demands5. Increase Expectation of Consumers: The expectation of consumers about quality and services are very high, so it works like driving force for e-commerce.6. Awareness Among Consumers: Internet, print media and electronic media keep update the consumers about new products and their rates

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Technological pressuresPage speed – each additional second to load has a direct impact on conversion rate.Overall flow from homepage to checkout – do some A/B testing to see how buttons and different elements affect your conversion rate. .Product assortment – offer what customers want Payment methods –your payment methods have a smooth checkout flow have all the payment methods you customers are likely to use.Design and Content - good design and a good content likely to increase conversions. products have clear pictures, a good descriptionGrowth of mobile commerceInternet penetration and usage.

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Social drivers• User experience is different on social commerce. • The key differentiator is user experience. The successful ones use the tools of the social

platform versus replicating the features of their web stores. A retailer investing in a social commerce presence should start with a clean slate, designing a fresh experience

• . Social marketplaces are a good starting point. . Payment and Moonfruit offer Facebook-enabled marketplaces. Each offers a low starting cost. Each say over 150,000 retailers have signed up — claiming to add about 1,000 retailers every week

• Growing living standards of the people.

• Internet and 3G penetration

• availability of much wider range od products and • prices for different section of society

• Busy lifestyle and no time for online shopping

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MYTHS

REALITIES Image source :http://thecoders.vn/latest-trends-and-add-ons-in-e-commerce/

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Myths of e-commerce.

Set up is easy and expensive.

Build it, they will come.Easy money.Privacy not an important

issue.Technology is a vital

element.No need of strategy.

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( contd.)

IMAGE SOURCE: http://www.ecbilla.com/press-release/

Customer service is not important.

Bling Bling makes a website better.

Its what’s in front that counts.

Disappear brick and mortar retail stores.

Great opportunity in retail sector.

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Realities related to e-commerce

Experience is required. Proper understanding of: I. Type of e-commerce you are

starting.II. Fundamentals on e-commerce i.e.

Electronic payment, Shopping carts, Products catalogs, Networking, Social proof, Marketing and advertising.

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(Contd.) Substantial content is essential.

Clever name & high resolution picture are not suffice.

Solid substance is needed. a. Provision to answer their

their question and solve their problems

IMAGE SOURCE: http://indianexpress.com/article/business/business-others/e-commerce-firms-face-new-challenge-as-losses-force-reality-check

/

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(Contd.)Business plans are essential It’s a blueprint and a first step in

creating e-comm. b/s.It includes:1) The overall vision and mission of

the company.2) Biographies of essential personnel. 3) Market research.4) Financial requirements and

consideration.5) Legal and regulatory requirements

for your business.

IMAGE SOURCE: 1) http://info.soapwarehouse.biz/blog-0/december-is-national-business-plan-month 2) http://www.ezone.com.np/services/ecommerce-implementation

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(Contd.)E-commerce products are

not alike.• Though functionality of product

catalogs, shopping cart, and payment platform, follow certain fundamental aspect, No two are truly same.

• Complexity directly impact shopping experience.

IMAGE SOURCE: http://www.indiadatasolutions.com/

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(Contd.)

Customer service is mandatory.Consumer research shows that price isn’t very

important.E-commerce merchant comes in the form :1. Active social media presence.2. Fast response to customer queries.3. Easy-to-use website and shopping cart.4. Means for customer to rate products and leave feedback.

IMAGE SOURCE: 1) http://www.vcominfotech.com/ecommerce_customer_service.php 2) https://www.skubana.com/e-commerce-trends/this-week-in-e-commerce-get-the-latest-news-and-insights/

3)

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(contd.)

IMAGE SOURCE: https://www.linkedin.com/pulse/20141101140332-260099520-hard-work-and-success

(contd.)

E-commerce b/s involves some pre-requisites and great amount of HARDWORK.

Customer satisfaction at the top of the list.Series of challenges to be met-a. Mobile friendly website.b. Social media strategy.c. ‘using coupons and promo code’ facilitiesd. Reliable and protected payment mode. Pay heed to the above challenges and work hard on it to taste success.

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GOOD CUSTOMER SERVICE TRUMPS PRICE IN PURCHASING DECISIONS

In spite of an economic reality that would seem indicate that price is the most important factor in a customer’s purchasing decision, a new survey by American Express suggests that it’s not.

Image source: http://www.businessnewsdaily.com/43-customer-service-trumps-pricing.html

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It is the survey of 1,000 consumers in 12 countries, including the U.S., conducted by the American Express Global Customer Service Barometer. Acc. to the survey:

61 percent of consumers said customer service is more important to them and are willing to pay even more for good customer service-- 9 percent more--on average.

27 percent said that companies have not made a move to improve customer service.

28 percent said companies are paying less attention to customer service .

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The results of the survey are not a complete surprise to those who follow customer service trends. Eric Fraterman, owner of Toronto-based Customer Focus Consulting, told Business News Daily that other recent research confirms the American Express survey findings.

“In this economy, people are especially short on time,” Fraterman said. “Good customer service means less time, effort, money and stress spent by a consumer.”

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“This is the foundation that the rest of the house is built on ,” Fraterman.

Fraterman also found even more interesting that customer are more willing to spread the word about a good customer service than bad.

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According to a survey conducted by Fraterman 75 percent of respondents said they are very likely to share a positive

purchasing experience.

59 percent said they are very likely to spread the word about negative experiences.

48 percent of respondents said they will turn to online reviews to make a purchasing decision.

Some respondents said they take negative reviews more seriously than positive ones on the Internet.

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American swan

Amazon India

Bata shoes Bro4u Biba apparels

Flipkart HealthKart Infibeam Instamojo Interiors info

IRCTC Jabong MobiKwik Myntra Ola cabs

Paytm Snapdeal Shopclues Voonik Zomato

Some e –commerce companies in India.

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MYNTRA PL

ANS

OFFLINE STO

RE

S FOR PV

T. BRA

NDS.40

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Flipkart-owned Myntra will open offline stores in the next three months at a time its annualized gross merchandise value, or GMV run rate, has hit $1 billion, post discounts, its CEO Ananth Narayanan said on Monday.

GMV, is overall sales generated on an online platform, not factoring in discounts and returns, out of which e-tailors take home any-where between 5% and 20% depending on the category. Myntra plans to start physical stores by selling its own 3 BRANDS — Roadster, All About You and HRX — in an attempt to bolster its brand play across channels.

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The online retailer, which recently acquired smaller rival Jabong for $70 million to further strengthen its number one position in the fashion and lifestyle e-commerce category, said these brick-and-mortar stores would act as experience zones rather than a platform meant to prop up its sales.

Global e-commerce giant Amazon recently opened a brick-and-mortar store in New York. In India, players like furniture e-tailor Pepperfry and eyewear seller Lenskart have explored the offline route as well.

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“We are still figuring out what kind of sales we want to do from these experience stores. Right now, we’re talking to traditional retailers to sell these three brands via their offline channels,” Narayanan told TOI

Image source: http://www.adweek.com/news/technology/why-new-crop-e-commerce-brands-should-really-scare-traditional-retailers-170170

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Jewellery from niche players like Caratlane, Bluestone will be sold on Myntra.

The e- tailor has reduced discounts by 10% while full price sales have grown 2 times

Myntra plans to open offline stores in 3 months

with private brands-Roadster, HRX, All About

You.

BRICK- AND- MORTAR EXPERIENCE

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CONCLUSIONE-commerce is a growing channel through which businesses have the potential to generate money across the globe. While many people may create website because they want to get rich quickly, (and there is no shortage of these schemes on the internet), it takes time and other resources to create a website that adds value to customers and the entrepreneur. For one website that is successful, there are many more that have failed because the entrepreneurs have not taken the time to create a holistic e-commerce business model. Innovative businesses should take advantage of the growing knowledge and ease of use of the Web to create websites for their businesses. This ,coupled with operating systems that support customers’ expectations, will create more loyal customers for Website and brand.

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REFERENCESText references:1. e-comm. disadvantages: http

://www.enkivillage.com/e-commerce-advantages-and-disadvantages.html 2. By Chipo Mapungwana.(2012)myths of e-commerce (

https://crazyaboutyourbrand.wordpress.com/2012/10/17/12-myths-of-e-commerce/ )3. By ELLI BISHOP (Small Business) realities of e-commerce (https://

www.aabacosmallbusiness.com/advisor/myths-realities-starting-successful-ecommerce-business-012644185.html )

4. By Jeanette Mulvey, Business News Daily Managing Editor (2010) consumer research (http://www.businessnewsdaily.com/43-customer-service-trumps-pricing.html )

5. Times of India (2016) Myntra plans for offline stores6. http://hubpages.com/business/IMPORTANCE-AND-USES-OF-E-COMMERCE7. http://www.tutorialspoint.com/e_commerce/e_commerce_advantages.html8. https://en.wikipedia.org/wiki/E-commerce_in_India9. https://en.wikipedia.org/wiki/E-commerce10. http://www.slideshare.net/munishsingla71/e-commerce-ppt-10713485

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Image reference:1. http://www.businessnewsdaily.com/43-customer-service-trumps-pricing.html 2. http://technode.com/2013/04/24/chinas-consumer-protection-law-amended-for-online-shopping/ 3. http://e-commerce2012spring.blogspot.in/2012/03/advantages-and-disadvantages-of-e.html 4. https://e-commerce202.wikispaces.com/Advantages+and+Disadvantages+of+Ecommerce

http://cyberalert.gr/feelsafe/ 5. http://www.thisweknow.org/tag/ecommerce-business-trends6. http://thecoders.vn/latest-trends-and-add-ons-in-e-commerce/ 7. http://indianexpress.com/article/business/business-others/e-commerce-firms-face-new-challenge-as-losses-force-reality-check/

http://info.soapwarehouse.biz/blog-0/december-is-national-business-plan-month http://www.ezone.com.np/services/ecommerce-implementation http://www.vcominfotech.com/ecommerce_customer_service.php

8. https://www.skubana.com/e-commerce-trends/this-week-in-e-commerce-get-the-latest-news-and-insights/ 9. https://www.linkedin.com/pulse/20141101140332-260099520-hard-work-and-success

10. https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj4v9uAteTOAhUHMo8KHeJSAlwQjRwIBw&url=http%3A%2F%2Fwww.slideshare.net%2FBeyond-Retail%2Fon-the-history-of-ecommerce-and-how-it-got-its-groove-back&psig=AFQjCNEUIXiCDK6GHX_GAbmc78-SnfcneQ&ust=1472484131756545

11. https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj--L7BteTOAhWLqY8KHWQHDRMQjRwIBw&url=http%3A%2F%2Fwww.specommerce.com%2Fknowledge-centre%2Ffactsheets%2F&psig=AFQjCNGRYpsVYCc0-Bk41QfGqbapryKhaA&ust=1472484266684455 -------image key drivers

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video reference

1. https://youtu.be/E0nBHwmT9Zk2. https://youtu.be/1EpXq8qrYec?list=PLpmfCxNlPvp1yr6dm_yUhcqG79EKV1mgc