E-COMMERCE , E-COMMERCE CONSUMER

APPLICATIONS
E-COMMERCE ORGANIZATIONAL APPLICATIONS ,
PROSPECTS OF E-COMMERCE
What is E-commerce?

 ELECTRONIC COMMERCE, COMMONLY KNOWN AS E-COMMERCE OR ECOMMERCE, IS

TRADING IN PRODUCTS OR SERVICES USING COMPUTER NETWORKS, SUCH AS THE INTERNET. •
MODERN ELECTRONIC COMMERCE TYPICALLY USES THE WORLD WIDE WEB(WWW) FOR AT
LEAST ONE PART OF THE TRANSACTION'S LIFE CYCLE, ALTHOUGH IT MAY ALSO USE OTHER
TECHNOLOGIES SUCH AS E-MAIL.
 Business Applications . Ecommerce is fast taking place in the modern world as an alternative to
traditional commerce. Some of the commonly used business applications of ecommerce are as
follows: - Online shopping Online marketing/Online advertising Pretailing ,Group buying ,
Online banking E-payment , Digital distribution .
 Online shopping (sometimes known as e-tail from "electronic retail" or e-shopping) is a form of ecommerce
which allows consumers to directly buy goods or services from a seller over the internet using a web browser.
• Alternative names are: e-web-store, e-shop, e-store, internet shop, web-shop, web-store, online store,
online storefront and virtual store. • Mobile commerce (or m-commerce) describes purchasing from an online
retailer's mobile optimized online site or app. • One can purchase almost anything online — starting with
groceries and greeting cards to cell phones and ringtones for the cell phones, everything can be purchased
online. While most people still find it convenient to buy their groceries from the neighborhood shop, many
people are purchasing rail and air tickets over the internet. In addition, people and corporates as well, are also
purchasing a variety of services online — such as a broking service or job search service.

 Online Marketing •8Online Advertising, also called online marketing or internet advertising, is a form of
marketing and advertising which uses the internet to deliver promotional marketing messages to consumers.
• Like other advertising media, online advertising frequently involves both a publisher, who integrates
advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on
the publisher's content. • Other potential participants include advertising agencies who help generate and
place the ad copy, an ad server which technologically delivers the ad and tracks statistics, and advertising
affiliates who do independent promotional work for the advertiser.
 • As of
 As of 2014, pretail is a fast-growing trend found in all areas of demand-based retail:
consumer electronics, movies, music, video games, books, fashion, software, connected
devices, cars, toys, cosmetics, art, events, etc. • This trend is being driven by companies
to enhance new product development, better manage product
releases, and leverage early fan enthusiasm. • Large companies such as Amazon and
Apple are pre-tailing new products to measure demand, manage supply chain market
dynamics, and monetize fandom anticipation. Small companies are embracing
crowdfunding platforms before product realization to test product-market fit, fund
manufacturing, and build fandom community. • Consumer involvement with products
and services pre-launch is becoming mainstream according to industry experts on
consumer behaviour trends. Pretailing (cont.)
 There are many methods which are used by organisations. These are :- • Display
advertising • Web banner advertising • Pop-ups/pop-unders • Floating ad • Trick
banners • Search engine marketing (SEM) • Social media marketing • Mobile advertising
• Online classified advertising Online Marketing (Cntd)
 Group Buying • Group buying, also known as collective buying, offers products and services at significantly
reduced prices on the condition that a minimum number of buyers would make the purchase. Origins of
group buying can be traced to china where team buying was executed to get discount prices from retailer when
a large group of people were willing to buy the same item. • In recent times, group buying websites have
emerged as a major player in online shopping business. Typically, these websites feature a "deal of the day",
with the deal kicking in once a set number of people agree to buy the product or service. • Buyers then print
off a voucher to claim their discount at the retailer. Many of the group-buying sites work by negotiating deals
with local merchants and promising to deliver a higher foot count in exchange for better prices.

 Online Banking • Online Banking (internet banking or e-banking) allows customers of a financial institution
to conduct financial transactions on a secure website operated by the institution, which can be a retail or
virtual bank, credit union or building society. • To access a financial institution's online banking facility, a
customer with internet access would need to register with the institution for the service, and set up some
password (under various names) for customer verification. • Online banking usually offers features such as: •
Up-to-date bank statements • Bill payment • Transfer of funds between the customer’s different accounts •
Loan applications • Higher interest rates for savers because of lower costs .
 Payment cards: - All types of plastic cards that consumers use to make purchases: • Credit cards • Debit
cards • Charge cards • Electronic Cash: - A general term that describes the attempts of several companies
to create a value storage and exchange system that operates online in much the same way that government-
issued currency operates in the physical world. • Smart card: - A smart card is a plastic card with an
embedded microchip containing information about you. • Digital wallet: - Refers to an electronic device
that allows an individual to make electronic commerce transactions. This can include purchasing items on-
line with a computer or using a smartphone to purchase something at a store.

 Digital Distribution • Digital distribution (also called content delivery, online distribution, or electronic
software distribution) is the delivery or distribution of media content such as audio, video, software and
video games. • The term is generally used to describe distribution over an online delivery medium, such as
the internet, thus bypassing physical distribution methods, such as paper, compact discs and DVD’s. • The
term online distribution is typically applied to freestanding products; downloadable add-ons for other
products are more commonly known as downloadable content. • With the advancement of network
bandwidth capabilities, online distribution became prominent in the 2000s. • The rise of online
distribution has provided controversy for the traditional business models and resulted in challenges as well
as new opportunities for traditional retailers and publishers. Online distribution affects all of the
traditional media markets including music, press, and broadcasting.
Payment cards: - All types of plastic cards that consumers use to make purchases: • Credit cards • Debit cards • Charge cards •
Electronic Cash: - A general term that describes the attempts of several companies to create a value storage and exchange
system that operates online in much the same way that government-issued currency operates in the physical world. • Smart
card: - A smart card is a plastic card with an embedded microchip containing information about you. • Digital wallet: - Refers
to an electronic device that allows an individual to make electronic commerce transactions. This can include purchasing items
on-line with a computer or using a smartphone to purchase something at a store.
Digital Distribution • Digital distribution (also called content delivery, online distribution, or electronic software distribution) is
the delivery or distribution of media content such as audio, video, software and video games. • The term is generally used to
describe distribution over an online delivery medium, such as the internet, thus bypassing physical distribution methods, such
as paper, compact discs and DVD’s. • The term online distribution is typically applied to freestanding products; downloadable
add-ons for other products are more commonly known as downloadable content. • With the advancement of network
bandwidth capabilities, online distribution became prominent in the 2000s. • The rise of online distribution has provided
controversy for the traditional business models and resulted in challenges as well as new opportunities for traditional retailers
and publishers. Online distribution affects all of the traditional media markets including music, press, and broadcasting.
E-Commerce Organization applications
 Changing business Environment
The traditional business environment is changing rapidly
Many companies are looking outside and within to shape business strategies
These activities include private electronic connections to customers, suppliers,
distributors, industry groups etc.
The I-superhighway will expand this trend so that it allows business to exchange information.

 E-Commerce and the retail Industry

Conditions are changing in the “new economy” with respect to the retail industry
Consumers are demanding lower prices, better quality, a large selection of in-season goods.
Retailers are filling their order by slashing back-office costs, reducing profit margins, reducing cycle times.
buying more wisely and making huge investments in technology,
Retailers are in the immediate line of fire and were first to bear the brunt of cost cutting
Marketing and E-Commerce :-

E-commerce is forcing companies to rethink the existing ways of doing

target marketing and even event marketing.
Interactive marketing is in electronic markets via interactive multimedia
catalogs
Users find moving images more appealing than still image and listening
more appealing than reading text on a screen
Consumer information services are a new type of catalog business
Inventory Management and Organizational Applications :-
With borders opening up and companies facing stiff global competition
Adaptation would include moving to computerized, “paperless” operations to
reduce
Once targeted business process is inventory management, solutions for these
processes go by different names
In manufacturing industry they’re known as just-in-time inventory systems, in
the retail as quick response programs, and in transportation industry as
consignment tracking systems
 Quick Response Retailing (QR) :-

It is a version of JIT purchasing tailored for retailing

To reduce the risk of being of out of stock, retailers are implementing QR
systems
It provides for a flexible response to product ordering and lowers costly
inventory levels
QR retailing focuses on market responsiveness while maintaining low levels of
stocks
It creates a closed loop consisting of retailer, vendor, & consumer chain, & as
consumers make purchases the vendor orders new deliveries from the retailer
through its computer network
E-COMMERCE WEB CYCLE IN ABOVE FIG :-
 Supply Chain Management :-
QR and JIT address only part of the overall picture
Supply Chain Management (SCM) is also called “extending”, which means integrating the internal and external partners on
the supply and process chains to get raw materials to the manufacturer and finished products to the consumer
It includes following functions
Supplier management: The goal is to reduce the number of suppliers and get them to partners
Inventory management: The goal is to shorten the order-ship-bill cycle. When a majority of partners are electronically
linked, information faxed or mailed
Distribution management: The goal is to move documents (accurate data) related to shipping
Channel management: The goal is to quickly disseminate information about changing operational conditions (technical,
product and pricing information) to trading partners
Payment management: The goal is to link company and the suppliers and distributors so that payments can be sent and
received electronically
Financial management: The goal is to enable global companies to manage their money in various foreign exchange
accounts
Sales force productivity: The goal is to improve the communication flow of information among the sales, customer &
production functions
Just-in-Time (JIT) Manufacturing :-
It is viewed as an integrated management system consisting of a number of different
management practices dependent on the characteristics of specific plants
The first principle is elimination of all waste (time, materials, labor & equipment)
The following management practices are focused factory, reduced set-up times, group
technology, total productive maintenance, multifunction employees, uniform workloads,
IT purchasing bank a total quality control & quality circle
 E-commerce in India :-
E-commerce ecosystem Online travel, ticketing etc. Online Retail
Online marketplace Online portals classifieds
Indian e-commerce In terms of size, India’s online retail industry is very small compared with both organised
and overall (organised + unorganised) retail in the country. It is expected the industry’s revenues to go more
than double to around 18 per cent of organised retail by 2016 from around 8 per cent in Yet, its share of the
overall retail (organised + unorganised) pie will be just over 1 per cent.

 Offline Vs Online Retail Markets :-

India’s online retail industry has grown at a swift pace in the last 5 years from around Rs 15
billion revenues in to Rs 139 billion in, translating into a compounded annual growth rate
(CAGR) of over 56 per cent.
 Growth of e retail in INDIA: -
Growing Internet Penetration Rising middle class with disposable income Payment gateways & logistics Smooth User
Experience
Online Business Model Marketplace Self-owned inventory Private Label White label
Recent Innovation Mobile to be the most influential aspect.

• Business Strategies Exclusive partnership with leading brands

• Expanding Product Basket Aggressive Pricing Cod (Cash on Delivery) Quicker delivery options Return policies social
media
• Concerns In India Generation and sustenance of traffic Cod
• Last mile Delivery Low profitability Lack of skilled human resource Tax structuring and regulatory barriers Cyber security
Customer loyalty.
 How to maintain visitors to websites?
Work on data from google analytics. Find reasons to improve your weak area through data analysis. Be active on social
media brings a positive outcome Smooth transition through website plays a significant role.
 LARGER REVENUE CONTRIBUTION FROM TIER I, II AND III
CITIES:-
According to a study, Tier II and III cities accounted for almost 57.0 per cent of
the total revenue derived from the various e- commerce product sites, while
the remaining per cent came from the eight metro cities. Similarly, for the
service sites as well, tier II and tier III cities accounted for 54.0 per cent as
against 46.0 per cent by the eight metropolises.
MARKET SIZE OF E-COMMERCE IN INDIA AND EXPECTED GROWTH :-
 The Future of Ecommerce :-
Ecommerce personalization predictions
Humans crave physical contact with other people, so it’s no surprise that ecommerce is
deemed as slightly less intimate and slightly less about personal experience than retail
shopping. Ecommerce shops don’t have someone who can help with our browsing and
recommend products to us face-to-face.
This is why certain ecommerce businesses will try to imitate this experience by making
websites more personal and appealing to the eye. One of the ways ecommerce shops can
become more personal for customers is by keeping track of customers’ preferences and
tailoring their ecommerce experience based on the things they like and are interested in.
You’re already familiar with a similar feature, which is the ‘recommended products’ section in
most online stores that give customers recommendations based on their search history.
 Ecommerce delivery drones :-
Drones are essentially flying robots that can be either manually controlled or programmed to
fly on their own. So how exactly do flying robots correlate to ecommerce, you might ask?
Well, some people predict that, in the future, drones will be able to replace order clerks by
delivering orders to customers. As you can imagine, drones are definitely faster than
humans. This will significantly cut the delivery time, so orders will be delivered faster than
ever before. This will certainly help businesses and customers alike, which is why many
ecommerce businesses are excited about this development. The costs will be much lower for
companies and people will get what they need in a shorter time.
Ecommerce social media shopping :-
Social media platforms play a large role in our lives today. Many brands are aware of this fact, so they shift their
marketing towards social media sites in order to reach a larger number of people. In fact, the number of sponsored
Instagram posts .
So how can these statistics influence ecommerce? Knowing that millions of people use these apps every year is an
advantage for ecommerce business owners. People are buying via social media every day, so there’s no better time to
invest in social media marketing and selling than now.

Ecommerce tracking:-

Since retail ecommerce sales are expected to reach $4.8trillion dollar by next year, now is the time to think of ways you
can transfer the face-to-face retail experience to ecommerce. We’ve already discussed how you can customize the
customer’s experience, but this step also entails perfecting your online tracking experience.
There are plenty of apps that can help you with this, like swydo , megalytic , and Google Sheets.
Ecommerce AI Systems:-
We covered the role of drones in the future of ecommerce, but what about AI?
AI seems to be a hot topic nowadays. It’s no secret that many different kinds of businesses can profit from
integrating AI, whether it results in helping the employees manage their tasks and time better or simply by
making the customer’s experience a lot smoother.
Potential future AI assistants will be able to do many tasks, like taking care of any questions and concerns the
customers have or simply dealing with the inventory and orders. As AI systems advance, the assistants will
have the ability to take on different tasks, which is why certain people assume that AI will start dominating .
Integrating AI in ecommerce sounds like a smart and profitable idea at first, but at what cost? Although this
could result in a smoother and faster experience for the customers, a bigger issue arises: will AI replace
humans to the point of resulting in fewer job opportunities? But this is a discussion for another time.
Ecommerce attribution modelling :-
Attribution modelling helps businesses analyse the value of different channels they use for marketing
purposes so they can determine which channel is the most beneficial for marketing.
By investing in the channels that make the most profit, ecommerce businesses can grow and flourish. That
being said, you will need to combine different types of channels that will attract larger audiences. A good tool
to use that can help you determine all this is Google analytics .
If you’re into ecommerce, you are aware that the ideal attribution model doesn’t exist just yet. It’s up to us to
wait for future models that will hopefully give us better and wider feedback and insights.