UNIT 2

Elements of E-Commerce & M-Commerce

 Various elements, e-visibility, e-shops,
 Delivery of goods and services,
 Online payments, After - sales services,
 Internet E-Commerce security,
 Basics of M-Commerce,
 E-Commerce Vs. M-Commerce.
 Advantages of M-Commerce over e-Commerce.

Various Essential Elements for E-Commerce and Mcommerce-

 User Friendly. If your store is easy to navigate, you will have a greater chance of making a sale
from the start.
 Shopping Cart and Checkout Process. Adding items to the shopping cart should be simple. ...
 Mobile Compatibility.
 Calls to Action (CTA)
 Images and Descriptions.
 Customer Support.
 Security and Privacy.

1
There are seven elements of m-commerce interface design such as context, content,
community, customization, communication, connection and commerce elements has been
found in this review.

Visibility online is the overall presence of a brand or its products in the general consumer
environment. Ecommerce platforms typically provide SEO tools, but business owners still
share a slice of responsibility when it comes to improving online visibility.

Eshops-
a website or application by means of which goods or services are sold over the internet.
An eShop or electronic store is “the place” where a company can sell their products or services
using digital networks. It's an online store where customers can “visit” from anywhere at
anytime using a Web browser on a mobile phone or a laptop.
An E-Shop allows for electronic sales of products and services by a company using digital
networks. Using innovative information and communication technologies, E-Shops support
and conclude operative and strategic tasks for the area of sales.
An e-shop allows for electronic sales of products and services by a company using digital
networks. Using innovative information and communication technologies, e-shops support and
conclude operative and strategic tasks for the area of sales.

Why is delivery so important?

2
Delivery of goods used to take 7-10 working days, with very few options available to
customers. However, as technology has evolved, so too have the number of delivery methods
and options.

Customers today have a lot of choice when it comes to receiving the goods they buy online.
This has led to a total change in attitude towards how delivery should work. Next day deliveries
aren’t just a perk anymore, they’re actually expected. So, if your business isn’t providing a
variety of delivery options, it could be missing out on a lot of potential customers.

Delivery is also the last impression a customer has of your business. So, if they experience a
problem, it’s going to leave them with a negative view of your brand, and they’ll be unlikely
to buy from you again.

There is even businesses offering same-day delivery in specific geographic locations. This
delivery expansion is occurring in both the US and the UK with increased focus from the online
grocery market.
Ways to improve your service
There are a lot of ways to improve your delivery service as an e-commerce company, the five
key improvements are stated below:

Variety of delivery options

If you don’t already, make sure you add a number of delivery options for your customers to
choose from. As mentioned earlier, next-day delivery has become the norm and any business
not offering this will feel the repercussions in sales. The more options you provide, the happier
your customers will be.

Choose the right logistics company:

There’s one costly mistake you can make with your delivery service and that’s choosing the
wrong courier. Don’t simply look at the cost when choosing the right courier for your company.
You need to ensure you’re using an affordable yet reliable courier service in order to keep your
customers happy. Some small businesses may run their delivery service alone but once orders
increase a courier is vital in order to take this stress away and allows you to concentrate on
other parts of the business.

3
Tracking parcels:
A large amount of orders can cause confusion which is why it is recommended that parcels are
tracked. This allows the business to monitor every parcel that is sent out and if a problem occurs
this can be rectified quickly, as the last whereabouts of the parcel is known.

Delivery price:
Customers particularly appreciate free or discounted delivery options. Many companies offer
free delivery if a customer spends a set amount. Special delivery offers can encourage
additional spending and draw in more customers to your business. It could be the difference
between a customer going elsewhere to purchase the same product. Although it may seem like
you are losing out on money, reduced delivery prices could increase sales.

Customer Satisfaction:
Customers are the most important factor in e-commerce businesses and therefore customer
satisfaction must be the main priority in everything you do. This is no different when providing
a delivery service. Customers want communication from the beginning of their experience.
This includes offering clear delivery service options on the website and acknowledgement of
the order after purchase on screen and via email. Customers rely on updates and this highlights
to them that a company cares about them receiving their delivery. Deliveries can lead to a
customer planning their day around it, so providing a time slot for delivery can ensure
customers are satisfied with their experience and will shop with you again.
In e-commerce, your reputation is everything. When you provide a poor-quality delivery
service, it’s going to have a significantly negative impact on your reputation. Social media
allows consumers to vent their anger, so ensuring you don’t offer a poor delivery service is as
an important as ever. Even if just one customer writes a negative review about your delivery
service, it’s going to put off other people from buying from you. So, if you’re looking to
become successful, it’s crucial you follow the tips above and work on improving your delivery
service as much as you can.
Online Payments-
E-commerce sites use online/electronic payment, where Online payment refers to paperless
monetary transactions. Electronic payment has revolutionized the business processing by
reducing the paperwork, transaction costs, and labour cost. Being user friendly and less time-
consuming than manual processing, it helps business organization to expand its market
reach/expansion. Listed below are some of the modes of electronic payments −

4
  Credit Card
 Debit Card
 Smart Card
 E-Money
 Electronic Fund Transfer (EFT)
Methods of Online-Payments
Card Payment System:
Card payment system involves initiating payments online or through an electronic device and
requires the use of a credit or debit card issued by a financial institute to the cardholder for
making payments.

Net Banking or Internet Banking:

Net banking system involves the transfer of funds digitally to one another via the internet
without having to physically visit the bank or any of its branches. Few modes of net banking
include IMPS, RTGS, NEFT.

E-wallet:
A prepaid form of account, e-wallet is where the user’s financial data like debit or credit card
information is stored in order to process electronic payments.

Smart card:
Smart card is a plastic card with a microprocessor chip inserted that can be loaded with funds
to make transactions safe and hassle-free.

Direct Debit:
Direct Debit is an arrangement made with a bank that allows a third party to transfer money
from a person’s account on an agreed date for an agreed sum, electronically, to pay for goods
or services.

Stored-value card:
This card involves a certain sum amount of money to be stored in the card beforehand and can
be used to perform a transaction at the issuer store. A typical example of stored-value cards is
gift cards.

5
 UPI or Unified Payments Interface:
UPI is an instant, real-time payment system developed by the National Payments Corporation
of India facilitating inter-bank transactions of funds on a VPA and is secured with an MPIN.

QR (Scan and Pay):

QR or Quick Response Code is a machine-readable code that consists of a matrix of dots in a
black and white square, which can be scanned by any mobile banking application to process
and disburse payments.

Here are some of the key benefits for merchants adopting Online-payment:
1. When retailers or online shoppers promotes/supports e-payments system on their website,
they can reach out to more prospects from all over the globe, therefore resulting in increased
sales and revenue growth.
2. The e-payments system is a channelized and systematic structure of money collection where
transactions and payment transfers happen within minutes, topped with high speed and
accuracy.
3. Convenience is yet another feather to its hat. Customers today can indulge in shopping and
banking services at any time of the day or hour, simply with an internet connection.
4. Lower transaction cost and decreased technology costs only adds more profits to the business
and encourages regular discounts on products which leads to bulk purchase by consumers.
5. E-Payment gateways providers offer high security and anti-fraud to make transactions more
reliable, safe and secure for both- the merchants and the consumers!

6
Aftersales Service -
After-sales service is an additional cost for e-commerce companies, whether it be in the
delivery of returns or product refunds. It impacts the brand perception of a retailer too, as
unhappy customers may leave negative reviews following a poor experience.
After sales service refers to all the things you do for the care and feeding of your valued
customers after they buy your product. This type of customer aftercare is important for any
business, but especially for small businesses where every client counts.
Develop a product returns management policy-
Marketing your product returns is essential because it’s one of the most frequently used after-
sales services. It allows you to establish a relationship of trust with your customers.
In order to make it as easy as possible for your customers, include a return form inside the
package. Then your customer can easily return if they have a problem with the order. Your on-
site return policy should be clear and available in all the languages of the countries where your
website is delivered.

7
The next goal of after sales service is to build customer loyalty and trust, which is good for
business and good for future sales. Those sales can take many forms:
 Product and service pairings: Pairings are a natural for things like smartphones, which
can be matched with cases, headphones and other accessories for higher sales and
happier customers. What can you pair with a sale to enrich your customer’s experience?
 Upsell (plus warranties and special services): The word "upsell" shouldn't be a negative.
It should mean finding added services or products that will give your customer an even
greater experience. Try matching your products with extended warranties, special
maintenance services and other useful programs.
 New products and services: Your customers, past and present, should be the first to
know when you roll out a new feature. This is a case where customer aftercare can also
be pre-care for your new product: share the news, then watch as customers engage and
spread the word.
 Customer loyalty program: Perks and rewards for customers aren't new, but they’re still
effective at building customer relationships (and sales). If you don’t already have a
customer loyalty program in place, maybe it's time to start brainstorming one.

How do you manage your after-sales service effectively?

Getting customers’ trust and building a reputation online is one of the most rewarding
challenges for e-commerce businesses. The priority of your after-sales is to facilitate contact
between you and your customers. that means your after-sales service is one of the best ways to
build online trust with your customers.
After Sales Service Techniques -
 Sales Professionals need to stay in touch with the customers even after the deal. Never
ignore their calls.
 Call them once in a while to exchange pleasantries.
 Give them the necessary support. Help them install, maintain or operate a particular
product. Sales professionals selling laptops must ensure windows are configured in the
system and customers are able to use net without any difficulty. Similarly organizations
selling mobile sim cards must ensure the number is activated immediately once the
customer submits his necessary documents.
 Any product found broken or in a damaged condition must be exchanged immediately
by the sales professional. Don’t harass the customers. Listen to their grievances and
make them feel comfortable.

8
  Create a section in your organization’s website where the customers can register their
complaints. Every organization should have a toll free number where the customers can
call and discuss their queries. The customer service officers should take a prompt action
on the customer’s queries. The problems must be resolved immediately.
 Take feedback of the products and services from the customers. Feedback helps the
organization to know the customers better and incorporate the necessary changes for
better customer satisfaction.
 Ask the customers to sign Annual Maintenance Contract (AMC) with your
organization. AMC is an agreement signed between the organization and the customer
where the organization promises to provide after sales services to the second party for
a certain duration at nominal costs.
 The exchange policies must be transparent and in favour of the customer. The customer
who comes for an exchange should be given the same treatment as was given to him
when he came for the first time. Speak to him properly and suggest him the best
alternative.

Basics of M-Commerce-

1. M-Commerce is introduced by the Kevin Duffey in 1977 at the global forum launch.
2. M-Commerce is an extended version of E-Commerce
3. Smartphones are widely used mobile channel worldwide.

9
M-Commerce vs. E-Commerce: What’s the difference?

 TOP Difference between m-commerce and e-commerce

 1. Mobility
 2. Push Notification
 3. Location tracking
 4. Security
1. Reachability
Since mobile commerce is conducted through pocket-sized devices, it naturally reaches more
people than e-commerce. Plus, with push notifications on mobile devices, consumers can be
reached through m-commerce much more easily than through e-commerce which depends
entirely on customers being at their computers.
2. Mobility
Once your potential customers have been reached and given an incentive to buy, the next step
is for them to actually make the purchase. If you’re using e-commerce, then your customers
must be at their desktop to complete their purchase on your website. Of course, that’s less likely
to happen than if your customers can make the purchase directly from their smartphones –
which is exactly why mobile commerce has an upper hand in this regard.
3. Security
It’s no secret that when customers shop online, they’re often concerned about cyber security
and the safety of their information. Fortunately, mobile commerce solutions have the matter of
security covered. Not only do mobile commerce stores use the ‘normal’ web security measures
to protect their customers, but can also use functionalities such as fingerprint reading, facial
recognition, or even retina scanning to add extra layers of protection.
4. Ease of use
Shopping through e-commerce on a desktop computer typically involves lots of scrolling,
clicking, zooming, and navigating between pages. On the other hand, smartphones and tablets
have a much more intuitive user interface. Likewise, the basic concepts behind the design of

10
mobile commerce stores’ customer experience are simplicity and practicality, which naturally
lead to more ease of use.
5. Location tracking
Both e-commerce and m-commerce can utilize location identification to target specific
audiences and tailor marketing campaigns or offers to particular places or regions. But ‘static’
e-commerce will only pick up on the individual location where the desktop is plugged in. On
the other hand, since smartphones are portable, mobile commerce marketing can use live
locations as well as patterns of movement to tailor advertisements with incredible precision.

Advantages of M-commerce
 It provides a very convenient and easy to use the system to conduct business transactions.
 Mobile commerce has a very wide reach. A huge part of the world’s population has a
mobile phone in their pocket. So the sheer size of the market is tremendous.
 M-commerce also helps businesses target customers according to their location, service
provider, the type of device they use and various other criteria. This can be a good
marketing tool.
 The costs of the company also reduced. This is due to the streamlined processes, now
transaction cost, low carrying cost and low order processing cost as well.
Disadvantages of M-commerce
 The existing technology to set up an m-commerce business is very expensive. It has great
start-up costs and many complications arise.
 In developing countries, the networks and service providers are not reliable. It is not most
suitable for data transfer.
 Then there is the issue of security. There are many concerns about the safety of the
customer’s private information. And the possibility of a data leak is very daunting.

What is the future of M-Commerce?

The examples we have shown you above should make it clear that businesses stand to gain a
lot from entering the mobile scene. In fact, companies that fail to accommodate their operations
to mobile will limit their potential profits significantly.
The reason behind this is that the mobile ownership rate continues to rise. More internet traffic
currently comes from mobile users than desktop users. As a result, we can expect a massive
increase in M-Commerce activity in the near future as businesses spot new sales opportunities
and jump on the mobile bandwagon.

11
Even today, consumers who are considering purchasing a product often look for it on their
mobile devices first. They quickly check their features, reviews, and prices offered by different
retailers. This is a habit that will only deepen in the future, making it even more essential for
retailers to become part of the mobile scene.

12