EFFECT OF E-COMMERCE IN BUSINESS ENVIRONMENT

SUBMITTED BY GROUP 8:

VISHNU A B2566
RIYA PALLIPPADAN GEORGE B2550
CHRISTO FRANCIS B2520
NELSON VARGHESE B2541
JINU ANNIE MATHEW B2530
ANISHYA CARMEL PAUL B2508
 “Effect of Ecommerce in the Business Environment”

INTRODUCTION

In the recent times ecommerce has an impact on business negatively and positively.
Commerce is conducting of business physically and E-commerce is conducting of business
over internet. It helps in reaching a wide range of consumers in much lesser time. While
using ecommerce, there is no requirement of outlet which inccures huge cost. His helps in
excluding the middlemen, since the product or service is directly delivered to the customer.
In ecommerce, there is a need for the setting up a website, along with which we require
technician. A website will help in accessing a wide range of clients. In ecommerce, the
business provides a number of choices when compared to a traditional outlet or physical
market. For example, a person sitting in India can conduct a business with a person who is
located in America.
Depending upon the parties involved there are mainly 4 types of ecommerce model
B2B, B2C, C2C, C2B. By 2030, the contribution to GDP by ecommerce is expected to reach
by 300 billion dollar, which at present is around 20 billion dollar. The impact of ecommerce
is visible in various sectors like technology, travel and tourism, education, service etc.
Ecommerce has helped the consumer to get the things that they wish to buy be delivered
to home directly. Since everything is available at the click of a mouse, the public or the
customers prefer to go for ecommerce rather than traditional method of business.
ISSUES
While working with ecommerce there comes many issues related to privacy, security, price
war, returns and complaints etc. Once when a person makes performs a transaction
through ecommerce; all his details is automatically stored .This creates an issue of privacy
about the details of the customer. Online transactions are inherently more insecure than
those conducted in person because there's no way to guarantee that the person making
the payment is the actual owner of the credit card used. The customer is not able to
physically feel and trial the item. This creates a sense of insecurity with the customer. Since
there is no physical testing of the item; there is a high chance of returns and complaints
from the customer.

IMPACT ON WORK ENVIRONMENT

Ecommerce has a positive and negative impact on business. Ecommerce effects the
business in MIS, HRM, marketing finance and accounting, production and operations etc.
Ecommerce requires more personnels in marketing for to deal with the selling process and
meeting the requirements of the customers. They also need enough personnels who are
good at business laws etc so as to deal with copyright, legality of electronic contracts etc.
They also need workers good at predicting the growth and fall and other changes in the
eworld.

IMPACT ON SMALL SCALE INDUSTRY

Since everything is available at the click of a mouse; the general public is moving from
traditional method of business to ecommerce model of business. The online sites or the
ecommerce business provides more offers and flexibility in terms of time, place, payment,
location etc. For example, a person sitting in India can do a business deal with a person who
is located in America. Irrespective of time and place, business is being performed.
Small scale industries are situated only at a particular place which causes a hindrance in
access for the other public. Unlike traditional business, ecommerce is available 24*7. Even
they provide flexibility in terms of making payment like debit ,credit, cash , through any
online application(paytym, googlePay etc).In most cases most of the small scale businesses
are not aware about the method of using technology .These business also lack qualified
personnel who will help them technically. Small scale business also does not require an
online site or space since they do not variety of items to be offered to the customers. There
are many giants that outsmart the the small businesses and startups.
OUR INTEREST IN ECOMMERCE AND CHANGES IT BROUGHT IN
INDUSTRIES OR THE COMPETITION
The reason that attracted us to this topic was its relativeness to the current society.
Nowadays people want every thing at tip of their fingers and e commerce is one of the
biggest bridges between customers and retailers. Most of us think that e commerce is
timesaver an its convenient but by taking this topic we came to realise that there is lot of
negative impact of this on small scale industries and on social living of people.

• Large discount • Huge collection.

• Doorstep delivery of e commerce
• Less time involvement
• Easy to find products and service
• 24/7 shopping
• No geographical limitation

THE PROFOUND EFFECT ON THE WAY PEOPLE WORK

• Less communication between consumer and seller
• People became isolated because everything will be getting at tip of the finger and
they don’t want to go out

• People working at physical outlet will have shortage of consumers and profit •
Basically, good for consumer and bad for business

IMPACT OF E-COMMERCE ON INDUSRTIES AND COMPANIES

Due to the pressure from offline retailers and wholesalers’ brands such as Lenovo, Toshiba
have made statements that e commerce sites are not authorized resellers. E commerce
retailers are requested to reduce discount coupons ranging from 20-40 by several apparel
brands. From some websites Canon stopped selling of its products. Adidas also banned its
dealers from selling of its products in eBay and amazon. There is a fear among the brand
that it will affect the image or brand value due to its low price.
MEASURE ADOPTED BY COMPANIES
1)Building a platform of their own

* Companies started considering selling items on their on-web site to expand the reach.
Independent site will help in building their on-brand value.
2)Adding holiday coupons or unique gift

* This kind of personal touch can help to set the business apart
3)Investing in customer service
*Strong customer service is very important. Companies trying to invest more to improve
customer satisfaction which in turn improve the business

MISTAKE MADE BY COMPANIES

* Maintaining customer loyalty – the e commerce site is a difficult task for creating the
trust and loyalty among the customer.

* Product return and refund – when a product is returned due to the damage of the
product or dissatisfaction, the company suffers from huge loss of reputation and money.

* Price and shipping – there is a high competition among the e commerce sites where
customers choose low priced products with free shopping.
*Purchasing of the products through face id and phone number which lead huge revenue
loss to the e commerce site

LESSON WE LEARNED FROM THIS TOPIC

E commerce is a topic which all of us are familiar with. Everything is available a click away
on our mobile phone. By discussing this impact of e commerce on business everyone of us
could share their view, opinion and research on the same. It helped everyone of us to have
a deeper knowledge on e commerce. Everyone was familiar with the good side of e
commerce. This group project made us think how it affect the retailers and people who do
small business and various issues regarding e commerce
CONCLUSION

The way business operates has rapidly changed with introduction of Ecommerce. While
Ecommerce is helping to make the lives of people easier as everything is available on
fingertips, it is affecting small scale industries and retailers.’’Adapt and Evolve” is one of the
best Ecommerce tips that can be adopted for business. In today’s dynamic and
hypercompetitive market spaces, it isn’t sufficient for businesses to remain stable. They
have to keep on evolving, introducing new technologies and other facilities to woo
customers
My contribution towards the topic is:
As a member of this group I did some
research which helped me get a deeper knowledge on Ecommerce.It is a very relevant topic
currently where everything is available a touch away. I have contributed to this project by
providing my ideas and views on different issues related to e-commerce.I also did some
extensive research to find out the steps industries can adopt or are adopting to improve the
issue.This helped the other group mates realise how industries are dealing with the issue.
Different kinds of sources helped us to look deep into the topic and helped us realise the
how Ecommerce affects the businesses.

Jinnu Annie Mathew, B2530

My contribution towards the topic is:
As a member of the group I was able to contribute the main idea or concept of the
topic , that is “ The Effects of Ecommerce on Small Industry”. I was also able to help my
team in looking towards the impact of this issue in the current working environment. I was
entrusted with the duty to an extensive searching of the negative impacts that was caused
due to ecommerce. Due to this I was able give a clear idea to my group on how to do a
researching in the topic

Christo Francis B2520

My contribution towards the topic is:
As the member in the group I was able to give an introduction towards the topic.
Ecommerce being the current trend in the market I was able to portray the negative impact
of the topic which many were unaware. I was also entrusted towards finding out the major
industries or business that was affected due to this issue. Here I was able to contribute a lot
to the team not only about the industries but also how the customers were impacted.

Riya Pallippadan George B2550

My contribution towards the topic is:

Being the member in the team I was able to identify the mistakes that
was committed by the ecommerce industries. This issue that we have put upon have a very
negative impact on small industries. Some way or the other this has been a mistake
towards the growth of the company too.

Nelson Varghese B2541

My contribution towards the topic is:
As the member of the team I was able to contribute the idea of how this issue would
change the industry or competition. The result that was gathered showed that ecommerce
had changed the whole pattern in business and marketing. I too was able to find out how
this issue impacted the ability of the industry to be successful. I was also able to cite
examples towards this impact.

Anishya Carmel Paul B2508

My contribution towards the topic is:
Being the member I was able to identify the profound effect that this issue had on the
way how people worked. In research I could find that it had a big impact how the people
were effected by this. Different kind of problems faced by retailers. I was also able to do
the conclusion and typing of the project so I was able to go through all the points that my
group members collected.

Vishnu A B2566