E- Commerce is the buying, selling

and/or exchanging of goods and services,

over the Internet, by the industrial and

final consumer, usually on the web.

Modern electronic commerce typically

uses the World Wide Web for the

transactions.

India’s e-commerce market was worth

about $3.8 bn in 2009, it went upto $12.6

bn in 2013.

• Increasing broadband Internet and 3G

penetration.

• Customers in cities avoid traffic on roads &

heavy congested shopping centres.

• Wider selection of products.

• Reduction in destination barriers.

• Items at a reduced rate.

• Increased standard of living and thus more

use of smartphones.

• Availability of different payment options.

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• Return of products purchased online.

• “Cash on Delivery”- preferred payment option.

• High failure of payment gateways.

• Feature phones still rule the roost.

• Postal addresses are not standardized.

• Low internet penetration.

• Logistics & Supply chain.

• Rising cost of customer acquisition by overfunded competitors.

The sector has become a major job generator,with over 1 lakh temporary online & offline jobsbeing added by December end.

Hiring by e commerce is expected to increase byover 30%, generating 50,000 new online jobs innext few years.

According to data collected from recruiters, 1 inevery 9 students graduating from IIT is likely tojoin an e-commerce company.

JOB CREATION

69% of Indian population lives in rural area.

SnapDeal plans to set up as many as 5000 e-commerce kiosks across 70000 rural areas in India.

These kiosks will include PCs and tablets for peopleto go online and shop.

Amazon India and Flipkart have been in talks with thegovt. to improve the Indian postal service with theobjective of delivery to be within 24 hours.

They also proposed that the govt. should roll ourbetter internet connectivity in rural areas.

Rural india

Investments

BookMyShow.com raised Rs.100 crores by AccelPartners.

Flipkart received $1 billion funding round from TigerGlobal, Naspers, Accel Partners, Morgan Stanley,Sofina and ICONIQ Capital.

Amazon announced investment of $2 billion to expandits Indian operations.

SoftBank Corp. has sealed a $627 mn funding dealwith SnapDeal.com

Myntra.com secured $50 mn investment led by PremjiInvest along with Accel Partners and Tiger global.

Olacabs raised $210 mn funding from SoftBank Corp.

Quikr secured a $60 mn investment by Tiger GlobalManagement.

Foodpanda.com secured $60 mn by Rocket Internet AGand Falcon Edge Capital.

Jabong.com secured $27.5 mn from UK’s CDC.

Online baby care portal, Firstcry received $15 mn fromVertex Venture Management.

Grocery online marketplace, Bigbasket snapped up $33bn from Helion Ventures, Ascent Capital, ZodiusCapital and Lionrock Capital.

Furniture and home products marketplace. Pepperfryraised $15 bn from Bertelsmann India Investments andNorwest Venture Partners.

• Hackers attempting to steal customer

information or disrupt the site.

• A server containing customer information

is stolen.

• Imposters can mirror your e-commerce site

to steal customer money.

• Authorised administrators/users of an e-

commerce website downloading hidden

active content that attacks the e-commerce

system.

• E-commerce is a very recent development in India

and poses a lot of problem to consumers shopping

online.

• Although internet transaction have increased

efficiency in transactions and accessibility for

consumers, there exist many pitfalls that have not

yet been satisfactorily dealt with.

• Therefore, E-commerce is now covered under the

Consumer Protection Act, 1986.

• To deal with e-commerce related issues, e-courts

in India are established and online dispute

resolution (ODR) is used.

• Greater choice of goods at lower prices to consumers.

• Availability of new products.

• Global Markets- Goods being sold are available from all around the world.

• New marketing models such as mailshots, product review forums, advertisements in search engines.

• Global business and consumer markets

• Challenge of new technology

• Security issues

• Creating new distribution channels

• Challenge to monopoly power.

• Retraining the staff.