A

PROJECT REPORT ON
“E- Commerce”

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

IN THE PARTIAL FULFILLMENT OF REQUIREMENT
FOR THE AWARD OF THE DEGREE FOR
MASTER OF BUSINESS ADMINISTRATION
(Lived SEMESTER)
Submitted to
Mrs. Namrata Dhar
Assistant Professor, Management Deptt.

Submitted by:
Name: PIYUSH GUPTA
MBA IVrd SEMESTER
Enrollment Number:
Centre Code: J962
ST.Thomas Management
Institute,Jahangirpur,Jhajjar,HR)
 DECLARATION

I hereby declare that the Project Report conducted at

ST. Thomas Management Institute
Jahangirpur, Jhajjar

Under the guidance of

Mrs. Namrata Dhar
(Assistant Professor)

SUBMITTED IN THE PARTIAL FULFILLMENT OF

REQUIREMENT FOR THE AWARD OF THE
DEGREE FOR MASTER OF BUSINESS ADMINISTRATION
MAHARSHI DAYANAND UNIVERSITY, ROHTAK

Enrollment number:Student’s Signature

Place: JHAJJARPIYUSH GUPTA
 PREFACE

E-commerce as anything that involves an online transaction. E-commerce provides

multiple benefits to the consumers in form of availability of goods at lower cost,

wider choice and saves time. The general category of e-commerce can be broken

down into two parts: E-merchandise: E-finance. E commerce involves conducting

business using modern communication instruments: telephone, fax, e-payment,

money transfer systems, e-data interchange and the Internet. Online businesses like

financial services, travel, entertainment, and groceries are all likely to grow. Forces

influencing the distribution of global e-commerce and its forms include economic

factors, political factors, cultural factors and supranational institutions. 

It has an impact over the economy of many countries among which India is on the

top of that list. It has named as new gold rush in e-commerce. E-commerce has

many reasons that why it is very crucial in developing the country . For the study

we have taken several parts of the world such as North America , Latin America ,

Europe , Middle-East , Africa and South Asia ,and Australia. E-commerce has an

intent to bring some transformation in the society and that’s the reason its essential

for the B2B and B2C commerce .

 SCOPE OF STUDY

This study being “desk analysis" contains views of various writers and researchers

of E-commerce. This study includes the global trends including India as a major

source of E-commerce , increasing use of e- commerce in developing nations ,

reasons behind success of e-commerce as an industry , the use of e-commerce in

global sourcing , advantages of E-commerce and several more topics being

covered under the project analysis. The use of e-commerce in various countries and

their influence over the people or citizens of that country is remarkable.

 RESEARCH OBJECTIVES

The study is focused on achievement of following objectives:

 To assess the latest trend in e-commerce globally.

 The impact of growth of e-commerce.

 To analyse the latest global scenario of e-commerce.

 The impact of growth on overall economy.

 . EXECUTIVE SUMMARY

The Internet is dramatically expanding opportunities for business-to-business

(B2B), Business-to-consume ( B 2 C ) E-commerce transactions across borders.

For B2Ctransactions especially, the Internet sets up a potential revolution in global

commerce: the individualization of trade. It gives consumers the ability to conduct

a transaction directly with a foreign seller without traveling to the seller’s country.

While this could be done in the past by post, telegram, phone, or fax, such sales

were relatively rare because the consumer had to know in advance where to make

contact and what to buy. The Interne t al lows sellers to put their storefronts,

in the form of Web pages, in front of consumers all over the world. Technology

has expanded t h e consumer marketplace to an unprecedented degree, and it

will change the way we think about trade. The implications of this for economic

development, globalization, and cultural exchange are immense . This

creates opportunities for both consumers and small enterprises that must not be

squandered. But for all the potential of global e-commerce, there are countless

vexing policy questions to be worked out, any one of which can threaten the

viability of this nascent form of trade. All of the Internet issues being debated in

the United States—consumer protect ion, data privacy, taxation, content

regulation, copyright, spam, technology deployment , and many more—need to be

resolved at the international level as well .

 However, unlike the United States ,which has a federal government and a

constitutional guarantee of free trade, global ecommerce faces two additional

serious complications: no central international authority to make the rules and

regulations and no uniform commitment to global free trade . Moreover,

conducting electronic commerce across national border s adds many more policy

issues to the mix—jurisdiction, customs duties, import and export restrictions ,

intellectual property licensing, and more—that are only now being examined.
 TABLE OF CONTENTS

Acknowledgement

Preface

Scope of the study

Objectives

Executive summary

I. Introduction of the topic

 Research methodology

II. Conceptual Framework

 Global trends in E-Commerce

 E-commerce in India

 E-Commerce in Global Sourcing Scenario.

 Security concern in e-commerce

 E-commerce: A Boon for the Current Economic Downturn

 Key Reasons for success of e-Commerce

 Factors affecting Distribution and form of Global e-commerce.

o Internet Adoption.
 o Buying and selling online.

o Advertisement and searching phase.

o Payment phase

o Delivery phase.

 Brief review of literature on e-commerce.

III. Summary & Conclusion

References
 INTRODUCTION

E-commerce (electronic commerce or EC) is the buying and selling of goods and

services on the Internet, especially the World Wide Web. In practice, this term and

a newer term, e-business, are often used interchangeably. For online retail selling,

the term e-tailing is sometimes used

Electronic commerce is generally considered to be the sales aspect of e-business. It

also consists of the exchange of data to facilitate the financing and payment aspects

of business transactions.

E-commerce can be divided into

 E-tailing or "virtual storefronts" on Web sites with online catalogs,

sometimes gathered into a "virtual mall"

 The gathering and use of demographic data through Web contacts

 Electronic Data Interchange (EDI), the business-to-business exchange of

data

 E-mail and fax and their use as media for reaching prospects and established

customers (for example, with newsletters)

 Business-to-business buying and selling

 The security of business transactions

Today Ecommerce is an integral part of business because of various reasons like:

 Ease of use & Accessibility all across the globe 

 Great variety & easy compassion of products from different vendors 

 Trusted payment channels 

 Shopping can be done sitting in the convenience of home shopping, hence it

is less time consuming. It is therefore very important for any new

entrepreneur to understand the significance of E-Commerce and should

know how to utilize this tool for the growth and development of business.

So, whether you have an existing business or launching a brand new business,

whether the volume of your business is large or small, you can always generate

profit by demonstrating your products or services online, thereby acquiring a large

amount of viewer exposure. In concise, buying and selling will result in profits and

returns.

There are so many factors which makes e-commerce to come to the fore front in

today's world. Saving precious time involved in business transactions is really a

prominent factor. Like for instance, net banking makes it easy to carry out money

and baking transactions in a break neck speed as compared to the real banking

scenario. This asserts the fact that Ecommerce is beneficial to both business and
consumer wise as payment and documentations can be completed with greater

efficiency and reliability. Another important factor determining the flow of whole

business is connectivity. Connectivity is very important for both consumers and

business. Ecommerce provides better connectivity for all the potential candidates

all over the globe, thus helping in enhancing the business without any geographical

barriers. From the view point of the customer, Ecommerce is a good platform for

hassle free shopping by sitting in your home. The customer can browse through all

the products and services available and can review and compare the prices of the

similar products available in the online space.

In global market scenario, the emergence of Ecommerce as a forerunner has

opened up various windows of opportunities for a variety of online companies and

investors. More and more resources are being directed into electronic securities,

internet facilities, business plans and new technologies due to the boom in the

space of E-commerce. As a result various new markets have emerged from

Ecommerce itself giving a boost to the global market.

 CHARACTERISTICS

Exchange and Share Data Across the World

Text messages, documents, graphics, photographs, music, video, and much

more, can be converted into data and sent as email attachments or presented on a

web site. There are no postage, printing and packaging costs with eCommerce

communications. So, use this new communications method to work quicker, and in

new ways, with customers and suppliers outside of your locality or country.

Send Messages Faster and Cheaper

When you send a message, you only pay for the Internet access. As soon as

the message arrives at your ISP, it is sent for zero cost to all the people to whom it

has been addressed. Moreover, the message is likely to arrive at its destination, in a

matter of seconds or minutes, depending on the size of the email and its

attachments. Think of the possibilities for saving time and money with email.

Approve and Proof Work Quickly

A quotation, purchase order, letter, design drawings, brochure, or advert

color proof, etc. can be emailed to you as an attachment for your approval. Using
email in this way can dramatically speed-up the turn-around of work between you

and your business contacts.

Introduce Collaborative Working

With fast, reliable and cheap eCommerce communications, it is possible for

colleagues, customers, suppliers and partners, to use collaborative working

practices to manage, share, and enhance the project work, regardless of location

where they are at a particular instance.

Update Employees Instantly With New Policies or Procedures

Email and messengers etc. works well when communicating with

colleagues/pals who are off-site, out of the country, or teleporting.

Hold Web Meetings (Data Conferencing)

A great way to have a virtual meeting is to upload a document

(spreadsheets, project plans, etc) on to a web site and enable it to be viewed and

edited in real-time through the Internet. Holding virtual meetings can save

significantly on travel expenses and time.

Take Advantage of Time Differences

As eCommerce communications are so fast and low cost, new business

relationship have been established where work is exchanged between time zones at

the end of one day, which, on the other side of the world, is the beginning of either

the same or next day.

Send Out email Automatically

Event-triggered emails can be used to acknowledge orders made on web

sites, and to update customers on order progress. Alert-emails or SMS messages

can also be used to notify technical support of critical issues or maintenance

problems. There, and many other similar applications, are effortless, cheap, and

efficient ways of enhancing customer service and the brand experience.

Use the Internet to Improve Business Administration

With a mobile phone connected to a portable computer, employees

working off-site can access and update internal information, such as customer

records, price lists, time sheets, schedules, and job reports. Providing remote

Internet access for staff makes it possible for the latest information to be at hand,

for administrative tasks such as invoicing, employee whereabouts, and expense

claims etc.
Train on the Web

The multi-media capabilities of web sites make them ideal for creating a

virtual learning environment for employees and customers. When training material

is updated, the latest version is immediately available. On-line learning facilities

enable trainees living all over the world to access courseware when it is convenient

to them, and without having to travel to a training centre, which in turn, saves time

and expenses.

Replace the Fax Machine and Save Money

If a multi-page document has to be faxed to many people, it can work out

expensive on telephone bills, especially if a national or international call has to be

made. The cost savings can be huge if email is used instead, and the message can

also be sent to multiple people for no extra cost.

 History of E-commerce

Concerning Technology

E-commerce began before personal computers were prevalent and has

grown into a multi-billion dollar industry. The meaning of the term "electronic

commerce" has changed over the last 30 years. Originally, "electronic commerce"

meant the facilitation of commercial transactions electronically, usually using

technology like Electronic Data Interchange (EDI) and Electronic Funds Transfer

(EFT), where both were introduced in the late 1970s, for example, to send

commercial documents like purchase orders or invoices electronically.

The 'electronic' or 'e' in e-commerce refers to the technology/systems; the

'commerce' refers to be traditional business models. E-commerce is the complete

set of processes that support commercial business activities on a network. In the

1970s and 1980s, this would also have involved information analysis. The growth

and acceptance of credit cards, automated teller machines (ATM) and telephone

banking in the 1980s were also forms of e-commerce. However, from the 1990s

onwards, this would include enterprise resource planning systems (ERP), data

mining and data warehousing.

 In the dot com era, it came to include activities more precisely termed

"Web commerce" - the purchase of goods and services over the World Wide Web,

usually with secure connections (HTTPS, a special server protocol that encrypts

confidential ordering data for customer protection) with e-shopping carts and with

electronic payment services, like credit card payment authorizations.

Today, it encompasses a very wide range of business activities and

processes, from e-banking to offshore manufacturing to e-logistics. The ever

growing dependence of modern industries on electronically enabled business

processes gave impetus to the growth and development of supporting systems,

including backend systems, applications and middleware. Examples are broadband

and fibre-optic networks, supply-chain management software, customer

relationship management software, inventory control systems and financial

accounting software.
 Concerning Decisions/Foot steps

When the Web first became well-known among the general public in

1994, many journalists and pundits forecast that e-commerce would soon become a

major economic sector. However, it took about four years for security protocols

(like HTTPS) to become sufficiently developed and widely deployed.

Subsequently, between 1998 and 2000, a substantial number of businesses in the

United States and Western Europe developed rudimentary web sites.

Although a large number of "pure e-commerce" companies disappeared

during the dot-com collapse in 2000 and 2001, many "brick-and-mortar" retailers

recognized that such companies had identified valuable niche markets and began to

add e-commerce capabilities to their Web sites. For example, after the collapse of

online grocer Webvan, two traditional supermarket chains, Albertsons and

Safeway, both started e-commerce subsidiaries through which consumers could

order groceries online.

The emergence of e-commerce also significantly lowered barriers to

entry in the selling of many types of goods; accordingly many small home-based

proprietors are able to use the internet to sell goods. Often, small sellers use online

auction sites such as EBay, or sell via large corporate websites like Amazon.com,

in order to take advantage of the exposure and setup convenience of such sites.

Concerning Transformation of IT

EDI Some authors will track back the history of ecommerce to the invention of

the telephone at the end of last century. EDI (Electronic Data Interchange) is

widely viewed as the beginning of ecommerce if we consider ecommerce as the

networking of business communities and digitalization of business information.

Large organizations have been investing in development of EDI since

sixties. It has not gained reasonable acceptance until eighties. EDI has never

reached the level of popularity of the web-based ecommerce for several reasons:

1. High cost of EDI prohibited small businesses and medium-sized companies

from participating in the electronic commerce.

2. Slow development of standards hindered the growth of EDI.

3. The complexity of developing EDI applications limited its adaptation to a

narrow user base.

The Internet and the Web The Internet was conceived in 1969, when the

Advanced Research Projects Agency (a Department of Defense organization)

funded research of computer networking. The Internet could end up like EDI

without the emergence of the World Wide Web in 1990s. The Web became a

popular mainstream medium (perceived as the fourth mainstream medium in

addition to print, radio and TV) in a speed which had never been seen before. The

Web users and content were almost doubled every a couple of months in 1995 and

1996. The web and telecommunication technology had fueled the stock bubble in

the roaring 90s and eventually pushed NASDAQ over 5,000 in 2000 before it

crashed down to 1,200 in 2002.

XML and Web Services Besides the availability of technical infrastructures, the

popularity of the Web is largely attributed to the low cost of access and simplicity

of HTML authoring, which are the obstacles of EDI development. The Internet and

the Web have overcome the technical difficulty of EDI, but it has not solved the

problem of slow development of ecommerce standards.

XML, as a meta markup language, provides a development tool for defining format

of data interchange in a wide variety of business communities. Web Services offers

a flexible and effective architecture for the implementation. There is no doubt that

XML and the Web Services will shape the course of ecommerce in years to come.
 RESEARCH METHODOLOGY

Sources of Data

For having the detailed study about this topic, it is necessary to have

some of the secondary information, which is collected from the

following:-Books, Websites and Newspapers. So in this basically

secondary data is used in collecting the information. The sources of

data are:

Websites:

 Wikipedia

 Wikinvest

 India-commerce

Newspapers:

 Hindustan Times

Type of Study
The research design or type of study specifies the methods and

procedures for conducting a particular study. The type of research design

applied here are “Descriptive” and “Desk Analysis” as the objective is

to have knowledge about the ecommerce in global Scenario. Descriptive

study means situation, but not the causal linkages among its different

elements. Descriptive studies (such as a cross-sectional study) help in

generating hypothesis on which further research may be based. Desk

analysis is to Gather and analyze information, already available in print

or published on the internet.

CONCEPTUAL FRAMEWORK
Global trends in E-commerce

 Government programs are a significant vehicle for c-commerce

implementations

 Retail, grocery and logistics industries are the most active in encouraging

trading partners to implement EDI

 Small and medium sized companies demand flexible integration solutions

 European companies focus on core competencies and outsource technology

to consulting groups

 High percentage of first time implementers seek to achieve full integration

 Organizations are seeking a scalable, reliable system that is easy to deploy

and manage

 Software needs to be capable of handing different business processes and

must integrate with existing IT investments

As social media, app stores and global availability become standard, many

companies are looking to enhance the online customer experience. And while retail

and other transactions via Internet are customary, more than ever companies are

simplifying the ways in which customers interact with their website and ultimately

make online purchases. Here are eight trends happening right now in global e-

commerce that seek to enhance the user experience:

 Micro-payments – Among the most revolutionary changes in the coming

months—not years—is the use of micro-payment systems from a variety of

financial firms, e.g., Paypal, Visa, WesternUnion, among others, including

banks.  This trend is facilitated by the W3C working group that approved

these protocols and technical standards for the interworking. These systems

will change not only how we carry money but how we value money and

think about purchases.  (Consider how a purchase of $4.99 feels in a mobile

app store vs. at Dunkin' Donuts.)  Payment systems that make it easier to

buy online, coupled with mobile technologies will accelerate the usage of

global e-commerce applications.

 Mobile technologies – More people access the Internet on their mobile

devices than on any other device. We are rapidly approaching the time (if we

are not already there) where designs must be created for the mobile Web

first, and for the desktop second.  Mobile technologies facilitate comparison

shopping; with the advent of barcode reader apps and price-comparison

databases, a consumer could snap a bar code in Walmart and quickly

reference product reviews and prices on walmart.com (or compare prices

with Walmart competitors).  Mobile technologies also facilitate impulse

buys – especially with the advent of micro-payments tied to the mobile

 device.  Just recently,  Starbucks customers can not only place an order with

their Smartphone, but also make a purchase.

 Social media – As Facebook has become the most visited site on the Web,

the role of social media, including Facebook and its local clones such as

Twitter, is increasingly important.  Social media sites increasingly act as

points of entry to e-commerce sites, and vice versa, as e-commerce sites

build rating, loyalty and referral systems tied to social media. Group buying

(e.g., Groupon) is also gaining mainstream ground, with many "deal of the

day" sites competing for an increasingly savvy consumer base, but

improvements lie ahead as the social aspects and user experience are refined.

 Fulfillment options – I believe that users will want to have multiple

fulfillments and return options when interacting with a vendor: ship to

address, courier, pick-up in store, return to store, etc.  Having many

fulfillment options is how customers view their overall customer experience.

Some companies have made a business proposition online by being

exceptional in service to the online channel (e.g., Zappos).

 Global availability – Increasingly, consumers want the availability to buy

products from foreign sites and have them delivered locally.  Thus, currency

and customs will be of growing concern to many online retailers.  Along

 with this, there will be concerns with local privacy laws and restrictions on

related data collection and storage.

 Localization – While the trend is to globalize, what’s often more important

is to localize.  User Centric’s research clearly shows that sites that ‘feel’

local – with proper imagery, language, time/date, weights/measures,

currency, etc. – resonate far more than sites that seem culturally distant or

sterile.

 Customizability – Consumers want control, and want to be able to design

the details of the items they purchase.

 Time-based availability – Some of the hottest and most successful sites are

those that have a time-critical response component.  Sites like Groupon, Gilt

and others capitalize on the perception of limited-time availability.  Creating

a sense of urgency drives traffic and purchase behavior.

 E-COMMERCE IN INDIA

New Gold Rush in E-commerce in India

KunalBahl, founder- CEO of e-commerce site Snapdeal.com bought out

eSportsbuy.com for an estimated of Rs.50 crores.

Bahl has 20–million (Rs. 100 crore) stash for acquisition-significant because

Snapdeal is itself a startup-but a rich on. It has raised Rs.52 million from ventures

funds.

Bahl is not alone who is scouting for potential suitor. In February this year

aggressively online shopping site Flipkart.com acquired rival Letsbuy.com. Early

last year, US-based social buying site Groupon acquired India’s SoSasta.com and

renamed it as Crazeal.com.

And so it seems that e-commerce is not about customers buying goods. It is about

firms shopping for others. Industry trackers say leading sites are gobbling up rivals

to build size, or acquiring customer niches either to add product segments or to get

technologies that help efficient operations.

In the game in which future share issues are on the radar for bigger players, the

smaller ones often prefer to cash out than be crushed in lonely pursuits in an

aggressively competitive game.

At stake is a huge market will growing potential because India has 900 million

mobile phones, with a big chunk of that growing up from voice talk to Internet,

wile the current Web user base at more than 100 million is in itself a significant

number.

Industry estimates say India’s e-commerce market will zoom from the current

Rs.51000 crore to Rs.10,20,000crore in revenues by 2020. The race lead to

buyouts-often at the cost of profitability.

“At present sites are falling over each other to offer deep discounts, but you do not

survive only through discounts. This only creates a disloyal discount shopper who

moves from one site to another in search of the cheaper deal,” said Mahesh Murthy

, managing partner of investment firm Seefund Advisors. Murthy added that sites

without a credible differentiation strategy and loyal customers base would bleed-

and will be up for grabs.

Experts say acquisition of other sites is also a good strategy to built brand and

broaden a loyal customer base. Snapdeal.com snapped up eSportsbuy.com to get

access to its large catalogue of sports and fitness products. Flipkart.com started out

with books, added cameras and mobile handsets and then got Letsbuy.com to

acquire muscle in electronic goods, while Groupon’s buyout was to enter India.
“There in no room for newer players in the general category but there is space for

niche category players,” he said. This has been observed by Prashanth Prakash,

partner at Accel partners, which has invested in Flipkart.com.

Private enquiry is doing a huge amount of work backstage. Venture capitalists say

they more than doubled the funding level in e-commerce over the past year, and

the average size of investment has ranged from Rs.20 to 40 million.

However, having a deep pocket is no guarantee to success. “Money can only delay

your death. The only key to survive is to have a credible differentiation strategy,”

Murthy said.

Size is not everything, but could help if investors have a sense of timing. “As the e-

commerce companies grow and get brand loyalty the valuations are expected to

increase even further. It will be the time when we can offload our stake, for hefty

profits,” a venture capitalist with significant stake in leading e-commerce site.

Hundreds of Internet startups went bust in 2000 and 2001 in the “dotcom bubble”

and comparing the current e-commerce rush to that may not be farfetched said

Shailen Amin, co-founder and CEO of footwear sites Bestylish.com.

“There are a lot of guys in this business who don’t have a retail background. They

are form either consulting or technology. So one should ask if they are really

qualified to run e-retail businesses.”

In the world where old-fashioned retail meets high-technology and innovative

management, the winners could well be those who understand dimensions.

What the consolidation?

 High operational costs affect profit margins.

 Most e-commerce sites compete on deep discounts, which hit their

margins.

 Some firms feel the time is right to cash in on brand, customer base.

 Private equity (PE) and venture capitalists (VC) are eyeing safe exit

while e-commerce ventures are still profitable.

What makes a Long-Term Player?

 Loyal customer base, fundamentally strong business models, clear

product/service differentiation.

 Deep pockets to tide over initial gestation period.

Challenges for E-Commerce Sites

 Low customer loyalty

 High returns rates on cash-on-delivery

 High cost of customer retention

State of Play

 Acquiring site is a good way to built brand, broaden loyal customer base and

add categories.

 The companies that are selling have real valuations, real transactions and

real customers, and are not based on eyeballs.

E-commerce companies in India offers the most tangible and finest e-commerce

solutions, provide high end e-commerce solution taking utmost care of the privacy

and security of the e-commerce website. E-Commerce service includes shopping

carts, database programmers, graphic design services, graphics, e-business, Flash

designs etc.
 TOP TEN E-COMMERCE COMPANIES IN INDIA

 20North.com:

This website offers variety of products like electronics ,books ,music ,movies ,car

accessories. The site also offers lucrative deals. Log onto the site to shop. Happy

Shopping!!!

 99labels.com:

This site offers many fashion and luxury brands at good prices. Check this site for

more brands .

 Dealsandyou.com:

This site offers various kinds of deals be it holidays, shirts etc. Also this site gives

heavy discounts on regular basis that cab be profitable for the shoppers. Browse

this site for more.

 Fashionandyou.com:

This site also is a great place to shop and that too sitting at home. Also this site

declares sale and heavy discounts almost every day. Sign Up today to get more

deals.
  Flipkart :

This site offers various kinds of products and that too at one place. Mobile, its

accessories , books, camera and laptop accessories. and many more things are

available on this site. One can find deals for home appliances also that are

available at affordable prices. Check this site

 Indiangiftsportal:

This is known for providing gifts for various occasions like birthdays ,anniversary,

wedding, bhaidooj, diwali and many more .Also flowers, cakes ,chocolates and

many more things are offered by this site. Browse it today to send gifts to your

loved ones.

 MagazineMall:

This company specifically deals in magazines and one can get magazines of

different and unique categories like Gardening/Housekeeping, lifestyle,

fashion, luxury, current affairs and many more.

 Bindaasbargain:

Here new deal comes everyday at 10 am and it is India's first One Deal A Day

online shopping site.Check out the site for new deal. Happy Shopping
  Buytheprice.com:

The site offers Mobiles, Computers, Cameras, Home Appliances ,Life style, Audio

and Video and much more. Variety of products are available under each category.

 Perfume2order:

It has categories like Perfumes for Men, Perfumes for Women, Deodorants &Deo

Stick, Perfume Gift Set, Designer Wallet & Belts, Flowers, Handbags & Clutches,

Sunglasses and many more things.

 E-COMMERCE IN GLOBAL SOURCING SCENARIO

What Is E-commerce And How Does It Augments Global Sourcing?

E-commerce or electronic commerce, as it is popular, allows domestic as well as

international trade over the Internet. The advent of E-commerce is boon for global

sourcing and import and export. The boost to global sourcing and import/export

through E-commerce is because of its to conduct online marketing, monitoring

supply chain and monetary & data transaction in a dependable manner.

Evolution of E-commerce with Global Sourcing?

It is hard to tell whether import/export volume has swelled because of E-commerce

but sure it made global sourcing easier to monitor with its evolutionary phases.

Three decades ago, it facilitated fund transfers- albeit electronically besides

facilitating exchange of POs and invoices in international trade. Electronic teller

machines are the recent manifestations now overtaken by internet creditcard

processing and endorsement of unsigned invoices even in international trade.

Why is E-commerce Popular in International Trade and Import/Export?

Looked at from both import and export traders' perspective, international trade is

easier conducted electronically. Here are the points why present international trade

depends much on E-commerce.

 Quick and ease of setting up E-commerce storefronts for both global

sourcing as well as import/export.

 Automatic running off of an import and export outfit without having to

recruit many staff.

 Global sourcing agents/companies can evaluate/list import/export vendor

Online.

 Software assisted documentation for each global sourcing and import export

transaction

 Ability to handle multiple, quick and secure data and money transaction

crucial to international trade, simultaneously

In international trade, global sourcing happens to be one of the chief aspects of

import and export business. Global sourcing is an integral part of B2b scenario and

has essentially transformed world economies as well as boosted business in a great

way. Nonetheless, it is also giving great transformation to the work culture around

the globe with China playing a lead role in global sourcing. Nevertheless, it is also
transforming work cultures around the world silently with China business playing a

major role.

Being an extension of open market dynamics, global sourcing facilitates the export

and import of goods to be in the reach of several small and medium enterprises in

different countries. In this b2b scenario, E-commerce plays an active role in the

global sourcing where the business houses are putting in deep efforts and reaping

the benefits. In this rally of export and import, traders happen to claim the share of

the pie in global sourcing.

E Commerce & Global Sourcing

 Global sourcing is one of the widely known strategies of ensuring smooth

business and access to markets in a cost effective manner. In such a scenario,

E-commerce has brought in a new transformation. It has added to

advantages like removing the barriers of time zones, differences in costs,

geographical locations etc. This has resulted in a major push in development

in infrastructure, technology and several other sectors across the globe. As

we see, E commerce is driving the export and import and propelling the

economic growth of numerous developing as well as developed nations.

 Business strategies are becoming easy to execute and business houses are

having a wide range of options from where they can make their choices.

 E-commerce has made the path of business smoother and has facilitated not

only in lower cost, but also resulted in procuring material from places where

there is specialization. Moreover, business negotiations are easier and

decisions are quicker due to this boon. Driving the import and export

business in this global sourcing scenario has opened new frontiers for higher

growth. The ease in supply chain is one of the best advantages that has come

from e-commerce in the global sourcing scenario.

 China, a major player in the global sourcing scenario has reaped several

benefits in the e-commerce enabled era. The use of internet has facilitated

trade and boosted it at an immense rate. Business from all over the world has

been bagged by this country in spite of the competitive market. Chinese

traders have minted fast money and are still running in that race.

Security concerns in Global Sourcing

E-commerce is not without security concerns, loss/misuse of encrypted data which

are still being seriously being viewed by import/export operators before engaging

in international trade electronically. The truth is E-commerce providers employ

SSL (Secure Sockets Layer) to encrypt data/money (remember banks) transfer

from your desktop to your clients'. You can say, E-commerce is secure for both
import/export operators as well as global sourcing agents alike.

E-commerce has arrived on the global sourcing scene as both import and export

and international trade partners are accepting it. Despite its growing stature and

popularity E-commerce is still thriving in retail sector domestically and the

international trade needs to cover a long distance before it catches up. Another

reason for import/export operators' leaning towards E-commerce is the growing

costs of delays in processing POs and invoices through traditional methods which

render global sourcing useless.

E-commerce: A Boon for the Current Economic Downturn

E-commerce: A Boon for India

By the end of 2011, the e-commerce market in India had clocked close to Rs

50,000 cores. It is interesting to consider whether the global economic downturn

may have negatively impacted the growth of e-commerce or possibly accelerated it

as consumers look to new online channels which can often deliver greater value

than traditional stores.

Today, even though there are less than 10 million internet users who are actually

engaging in e-commerce activities, there are about 150 million internet users in

India or around 75 million households that are ready for e-commerce.

The growing reach in terms of internet connectivity to the interiors of India

coupled with the positive experiences of end consumers when buying online

beyond the metros and big cities are key drivers of the e-commerce boon in India.

Businesses in even the smallest towns and villages are becoming increasingly

aware of e-commerce and are excited by the growth potential.

The growing penetration of e-commerce along with positive consumer experiences

is reflected in a trend towards higher value online purchases. Today, consumers

across urban India are confident enough to make purchases that exceed Rs 20,000-

25,000. Earlier, the same shoppers stayed in the Rs 2,000-5,000 ranges. According

to one study almost 57% of business for e-commerce product sites came from tier

I, tier II and tier III cities while the eight metros accounted for the remainder 43%.

The same pattern was visible in the service sites too, with tier I, tier II and tier III

cities contributing 54% of revenue versus 46 % by the eight metros.

According to a report by the IAMAI, the current e-commerce market in India is

around US$ 10 billion. But with different levels of adoption, the market has the

potential to grow anywhere between US$ 70 billion – US$ 150 billion under one

scenario and at another level it can grow between US$ 125 billion – US$ 260

billion by 2024-25.

E-commerce: The world over

Globally, the scenario is much the same. Brazil, one of fastest growing

economies in Latin America, is seeing considerable growth. According

to a recent report, it estimates business-to-consumer (B2C) ecommerce,

including both retail e-commerce and online travel sales, will total to

$18.7 billion in 2012, a growth of

21.9% over the previous year. Brazil will account for more than half of

the total B2C e-commerce sales in Latin America through 2013, thanks

in large to its huge populace and growing number of online buyers.

Retail e-commerce itself in the U.S.is predicted to grow at 17% and it

will likely account for $200 billion in sales in 2012 , according to a

presentation at a popular forum. Retail e-commerce totalled $48.2 billion

during the third quarter of 2011; an increase of 13.7% compared with the

third quarter of 2010, according to estimates from the U.S. Census

Bureau. 2011 also saw the European online market boom despite the

floundering euro. Germany’s online trade increased 17% in 2011 to

€21.48billion compared to 2010, crossing the €20 billion mark for the

first time, outstripping traditional mail order sales by 10%. A similar

growth rate of 10% to 15% is expected in 2012.

In the global scenario, China is fast emerging as the biggest player in e-

commerce. According to an e-commerce report, by 2015, it may well

surpass the U.S. In an astonishing illustration of its online growth rate,

China has added the equivalent of the entire population of France in

internet users in each of the last four years. It will add the equivalent of

the entire population of Canada as e-shoppers in each of the next four

years. China is projected to rise from 145 million e-shoppers today to

329 million by 2015.

 KEY REASONS FOR THE SUCCESS OF E-COMMERCE

 Shopping 24x7: E-commerce facilitates shopping anytime,

anywhere and for almost anything desired. Busy consumers prefer

this to the restrictions of when a mall/shop is open and the need to

physically travel to a shop. Online business takes shopping a step

further by taking itself to the customer creating conveniences of

shopping anywhere and at anytime.

 Reduced operational cost: Since the entire business can be

moved online, the need for physical stores has become obsolete.

Less infrastructural investment and associated labour costs drives

up the profit margin. The seller can then transfer this benefit to the

customer in the form of discounted pricing which boosts the appeal

of online shopping.

 Easy to compare: It is far easier and quicker to compare prices of

goods online, equipping the customer with the information to

decide the right price or terms for themselves. The comparison is

 not restricted to items from a single seller, or a single region. One

can explore products across global markets via e commerce.

 Safe &secure:Customers can trust the process of going online and

purchasing only when transactions are fast, convenient and secure.

A high degree of integrity is possible only when the online

electronic payment provider is reputable and trustworthy. In India,

all payment transaction providers are required to comply with the

security requirements laid out by the Reserve Bank of India

making the system more robust and reliable.

 Increased reach for the merchant: Just as the customer finds

them able to venture across geographic markets, the merchant too

is able to display his product to customers in new territories.

Market penetration also becomes far more achievable with e-

commerce; it is possible for a merchant in Mumbai to extend his

reach to north-eastern cities or even rural villages that are now

connected by the online network.

  Social media trend: In India, with the increasing propensity of

social media, businesses have now begun to engage their

customers on social networking portals such as Facebook.

Promotions, sales and new products are increasingly showcased

through such channels and mobile apps are now available that

suggest products to users based on their profiles. These are likely

to be rapidly developing marketing channels for the future.

The e-commerce world is changing rapidly in the digitized world. These

e-commerce developments may have been accelerated by the global

economic downturn which may be driving consumers to find new ways

of reducing their costs of living. The online channel offers a clear value

proposition for both merchants and consumers making it the most sought

after and exciting business model today

Factors affecting influence distribution and forms of global e-

commerce

Stage Economic and Socio Political legal Supranational

infra cultural factors institutions

structurerelate factors

d factors

Internet Per capita Literacy rate The internet's UNDP-

adoption GDP and democratic introduction of

computer Nature the

skill incompatible internet in

with many

authoritarian countries

political

Availability of English structures GATS-

telephone and language competition

computer skill in telecom

sectors

Pricing structure Viewed as a Tariff and non ITA- reducing

tariff barriers the price of

 tool of to ICT ICT products.

cultural products

imperialism

in some

Buying/selling Availability of Intellectual Redress UNCITRAL

online credit property mechanisms model law

protection in case of

problems in

online

transactions

Advertising Operating speed Influence of Ban on some Products can

and searching of language and website in be advertised

phase symbols used authoritarian and searched

computer and
on site regimes globally on
modern size
visited and GTPN of

purchase UNCTAD

decision

Payment Penetration rate Forms of Governments' UNCTAD

phase of credit cards payment: concern on smart card

check, wire the outflow of

 transfer, cash foreign

on delivery currency.

etc,

Delivery Delivery means Products Tariff and Electronic

phase and stolen some non- tariff delivery  free

infrastructure countries barriers of custom

duties in WTO

member
Brief Literature Review

In present scenario E-Commerce is playing very essential role in the online

business. Although it is one of the best & cheapest intermediate for reaching out to

new customers in the online market, if e-commerce implemented effectively, it

also offers a smart way of doing online business & expanding it more.

An online business eCommerce podium is planned & implemented to make the

most of its reach to potential customers and provide them with a convenient,

satisfying & protected shopping experience.

Advantages of E-Commerce to the Online Business

 E-Commerce helps to Increase the sales revenue to the business

 Business people can spend less money and earn high profits with e-commerce

 It is very Easier to scale up online

 Easily we can track the segment of customers who are happy with purchasing

goods through online

 Avoid losing sales to competitors who are online

 Instantaneous global sales presence in quick time

 We can Operate the business in 24 *7 basis

 Easily we can increase our business customers

 We set up shop anywhere in the world, self-governing of geographical

locations
 Inexpensive way to turn your Web site into a revenue center

 Reduce Customer Support costs via e-mail marketing & customary newsletters

 We can create customized mailing list

 Easily we can drive free traffic to the website

 Instantly we can develop our business across the internet by using various e-

commerce strategies

 Customers can easily buy their products by using different payment gateways

 Develop more shopping carts by using e-commerce

 We can easily promote our business website by using various promotional

activities such as Search Engine Optimization, Pay Per Click Management,

Email Marketing, Social Media Optimization, Online Banner Advertisement,

Online Branding and Affiliate Management etc

B2C - business to consumer

In the Australian context B2C (business to consumer) trading activity has

been slow to take off as at first consumers had doubts about the security of

credit card transactions.

Initial B2C trading focused on music CDs, software and books - items which

were compact and easily shipped and where prices could be slashed once the

retailer's cut was taken out of the margin. The Amazon book store would be
a good example of this. These products pushed the perimeters of the market

out for goods bought on-line.

Books and CDs are relatively generic products. A CD bought in the US will

have the same music and quality as one bought locally (the exception is the

cover art) and so there is no doubt in the consumers mind exactly what the

product is. This is not the case with clothing, where sizes can confuse the

purchase decision... and where tactile senses figure strongly in the

purchasing decision.

Ebay has really transform purchasing behaviour on the web. Many people

have made their first ecommerce transaction on Ebay. Many people sell on

Ebay too, given raise to the work-from-home/drop shipping model of

ecommerce.

Interestingly though B2C transactions of previously localised or hard to find

products can be extremely strong. If you have a unique product that is highly

relevant to a niche audience, you are likely to do very well on the web.

Although sales are increasing rapidly on the Internet, the volume of turnover

figures continue to fail short of industry estimates. But as retail web sites
become more navigable and privacy policies are displayed, more people will

be drawn to Net-based purchasing by lower prices and convenience.

B2B - business to business

On the Internet, B2B (business to business) is the exchange of products or

services between businesses rather than between businesses and consumers.

Although early interest centered on the growth of retailing on the Internet,

forecasts are that B2B revenue will far exceed B2C revenue in the near

future.

According to studies published in early 2000, the money volume of B2B

exceeds that of B2C by 10 to 1. Over the next five years, B2B is expected to

have a compound annual growth of 41%.

Payment Gateways

Both PayPal and Paymate offer credit card to bank account payments. Using

one of these services you can invoice a customer, they can pay on Paymate

and the funds will be deposited in your bank account ... less a transaction

fee.
Unlike a credit card merchant facility you will not have ongoing, minimum

monthly fees... and the transaction fee is better than what most card

companies offer small merchants. Additional these service are being backed

into other ecommerce sites and shopping carts. Ebay for example uses

Paypal to process some payments.

The Rise and Rise of Auction Sites

Auction sites such as Ebay and TradeMe have done an enormous amount to

get ordinary people involved in online trading. Today many Ebay merchants

are establishing their own web sites to avoid Ebay and Pay Pal fees. They

have learnt about how to present their product in their Ebay store and what

issues are important to their customers in purchasing their product and now

they are ready to start their own web site.

Security

On the Internet, security is handled by passing "keys" between Internet

server and client browser. When entering a secure site your browser is

passed a public key by which transactions between you and the web server

are encrypted. The servers key is always kept private.

On your web site security can be handled two ways - depending on your

budget. You can "piggyback" on someone else's "key" or you can register

and pay for your own key or SSL certificate at Thwate or Verisign.

Generally today businesses who host web sites offer access to a secure

server and you can use their server and secure certificate for less than if you

registered and paid for your own key.

However the person browsing your site will notice the URL change to one

they do not recognise - or trust. This may put your customers off (although

there is no evidence of this). Therefore one of the advantages of buying your

own key would be to have a URL for your secure pages that is consistent

with the rest of your site.

Presently, in Australia, Verisign may sell you a key for over $800 while

foreign ecommerce providers like Instant SSL can sell it for $150. Although

Verisign will argue that their key comes with a range of value add benefits,

the bottom line is the product, i.e. the key, is the same.
 SUMMARY AND CONCLUSION

 There is a wide acceptance of e-commerce in world due to the internet

facilities available.

 The countries such as India, Brazil, and China etc which are on the path of

development are using e-commerce for carry out various transactions.

 The e-commerce can surpass geographical limits and can prove to be worthy

by reaching to customers. It caters to the demands of both the national and

the international market.

 The e-commerce can help in providing an edge to your rivals in the market

as one can better serve them globally.

 The Countries such as USA, Australia, Canada , UK etc are trying to come

up with something innovative which will change the current scenario.

 The countries are well aware of its benefits and are becoming more

innovative in this field as customers can easily select products from different

providers without moving around physically and it also help business to

handle its resources well.

 REFERENCES

Web

 http://www.articlesnatch.com/Article/E-commerce-In-Global-Sourcing-

Scenario/218150 (last accessed on 20th march , 2012)

 http://usa.usembassy.de/economy-ecommerce.htm (last accessed on 20th

march , 2012)

 http://archive.unctad.org/templates/webflyer.asp?

docid=4253&intItemID=2261&lang=1 (last accessed on 20th march , 2012)

 http://en.wikibooks.org/wiki/ECommerce_and_EBusiness/

ECommerce_in_Developing_Countries (last accessed on 20th march ,2012)

 http://www.wipo.int/copyright/en/ecommerce/ip_survey/chap5.html (last

accessed on 20th march , 2012)

 http://www.nytimes.com/2003/11/24/business/e-commerce-report-sensing-

economic-opportunities-many-developing-nations-are.html?

pagewanted=all&src=pm (last accessed on 20th march, 2012)

 http://www.isoc.org/inet99/proceedings/1g/1g_2.htm (last accessed on 20th

march, 2012)

 http://www.bestindiansites.com/top-companies/e-commerce/ (last accessed

on 20th march, 2012)

  http://www.india-ecommerce.com/ecommerce-web-development.html (last

accessed on 20th march,2012)

Books

 Laudon Kenneth C., Traver Carol Guercio (2008) , E-commerce – Business ,

technology , society ,New Delhi ,Pearson Education

Newspapers

 Hindustan Times