What is E-Commerce? What is E-Commerce? The use of the Internet and the web to transact business. It refers to business activities conducted using electronic data transmission via the Internet and the World Wide Web. The First E-Commerce? In 1886, a telegraph operator was able to obtain a shipment of watches that was refused by the local jeweler. Using the telegraph, he sold all the watches to fellow operators and railroad employees. Within a few months, he made enough money to quit his job and start his own store. The young man's name was Richard Sears. His company later became Sears, Roebuck. Types of E-Commerce Business to Business (B2B) Business that sells products or services to other business. (eg.India Mart, Trade India, Jim Trade etc.) Business to Customer (B2C) Business that sells products and services to end users. (eg.Ebay, Tradus, Shopclues, Snapdeal etc.) Customer to Customer (C2C) Consumers interact with other consumer through online classified. (eg.OLX, Quikr, Click India etc.) Advantages & Disadvantages Advantages: Faster buying and selling procedure & easy to find products. Buying & Selling 24/7. More reach to customers. There is no theoretical geographical limitations. Low operation cost and better service. Customer can easily select products from different providers without moving physically. Disadvantages: Anyone bad or good can start a business and many bad sites eats up the customers money. There is no guarantee of product quality. Mechanical failures can cause unpredictable effects on the total process. How E-Commerce Works? The consumer moves through the internet to the merchant's web site. From there, he decides that he wants to purchase something, so he is moved to the online transaction server, where all of the information he gives is encrypted. Once he has placed his order, the information moves through a private gateway to a Processing Network, where the issuing and acquiring banks complete or deny the transaction. This generally takes place in no more than 5-7 seconds. There are many different payment systems available to accommodate the varied processing needs of merchants, from those who have a few orders a day to those who process thousands of transactions daily. With the addition of Secure Socket Layer technology, E-Commerce is also a very safe way to complete transactions. Why E-Commerce is changing the way business operates? reduced costs lower product cycle times faster customer response improved service quality Internet Business Models Virtual storefront: Sells goods, services on-line Information broker: Provide info on products, pricing, etc. Transaction broker: Buyers view rates, terms from various sources Online Marketplace: Concentrates information from several providers Content provider: Creates revenue through providing client for a fee, and advertising On-line service provider: Provides service, support for hardware, software products Virtual community: Chat room, on-line meeting place Portal: Initial point of entry to Web, specialized content, services Auction: Products, prices, change in response to demand. Used in online marketplaces Market Overview The ecommerce market in India is expected to grow by 33 per cent to reach Rs 62,967 crores by the end of 2013 predicted a report released by the Internet and Mobile Association of India (IAMAI) and IMRB International. The ecommerce market was valued at Rs 47,349 cr in December 2012. Market Overview As per the findings, Online Travel (booking rail, air, bus tickets, hotel accommodations, tour packages) comprised a majority 71 percent of the whole Digital-Commerce pie in 2012. While e-tailing, which includes purchases of various consumer products/services constituted 16 percent of the overall share. Financial Services, which include services such as paying insurance premiums and renewals, paying utility and mobile bills, trading shares and securities amounted to 6 percent of the overall share. B2B and B2C Classifieds (jobs, matrimony, car, real estate etc.) contributed 5 percent, whereas other online services such as online entertainment ticketing, online food delivery, buying discounts/deals/vouchers etc. constituted 2 percent of the overall digital commerce market in 2012. 71% 16% 6% 5% 2% Sales Online Travel E-Tailing Financial Services Classifieds Other Online Services Components of Digital commerce market 2012. INR 47395 Crore. Trends in E-Commerce The business world is always shifting. As new products are developed and released and as technology advances, sales platforms must as well. As an industry, e-commerce is now approaching 20 years of age. In order to keep up with consumer behavior and increased opportunities afforded by technology, e-commerce platforms are making changes in 2013. More informed customers Greater emphasis placed on data Mobile optimization is a must Mounting Social Media Online Group Buying Explosive growth! After VCs, Now Celebrities M-commerce A new wave! Drivers & Challenges VCs, Mergers & Acquisitions Benefit of E-Commerce Expands the marketplace to national and international markets Decreases the cost of creating, processing, distributing, storing and retrieving paper-based information Allows reduced inventories and overhead by facilitating pull-type supply chain management The pull-type processing allows for customization of products and services which provides competitive advantage to its implementers Reduces the time between the outlay of capital and the receipt of products and services Lowers telecommunications cost - the Internet is much cheaper than value added networks (VANs) Major Indian Players Limitations of E-Commerce How to start a small online business? E-Commerce is a six step process and all online businesses will go through the first three steps: 1. Create the online content. Content is King! 2. Host the content on the Internet. 3. Market the website and content. 4. Collect and record customer orders. 5. Process payments. 6. Fulfill customer orders. Thank You.