E-Commerce

The $43 Billion Market in India.

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.