Student Undertaking Certificate of Originality

I Sakshi Agarwal , from MBA SEM 1 , would like to declare that the project report entitled on the
topic “E-Commerce” Submitted to Bharati Vidyapeeth University Pune, School of Distance
Education Pune, Academic Study Centre BVIMR New Delhi in partial fulfillment of the
requirement for the award of the degree.

It is an original work carried out by me under the guidance of Mr. Yashwant Kumar.

All respected guides, faculty member and other sources have been properly. acknowledged and the
report contains no plagiarism.

To the best of my knowledge and belief the matter embodied in this project is a genuine work done
by me and it has been neither submitted for assessment to the University nor to any other University
for the fulfillment of the requirement of the course of study.

SAKSHI AGARWAL

Student Name with Signature

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 ACKNOWLEDGEMENT

First and foremost, I would like to thank my teacher, Mr. Yashwant Kumar Sir, who guided me in
doing this project. He provided us with invaluable advice and helped us in difficult periods. His
motivation and help contributed tremendously to the successful completion of the project.

Besides, I would like to thank all the teachers who helped me by giving valuable advice and
providing the resources which was needed.

Also I would like to thank my family and friends for their support. Without that support I couldn’t
have succeeded in completing this project.

At last but not in least, I would like to thank everyone who helped and motivated me to work on this
project.

I am dearly obliged for giving me an opportunity to work on this project which has provided
valuable information about E-Commerce.
Thank You

SAKSHI AGARWAL
Signature

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 EXECUTIVE SUMMARY
THE BIG GOAL
To increase the awareness of E-Commerce , stating the objective, Types of e-commerce business,
scope, advantages & disadvantages , and the future of E-commerce.

THE NEED
A common question that nowadays arise is Why should I choose E-Commerce? With the ever
increasing use of the internet and its popularity among all demographic segments, electronic
commerce is by all means the way to go for virtually all businesses. Creating an online presence
means that a business owner or company can reach to potential customers and expand business
operations, gaining a significant authority in the marketplace. It is almost impossible for a company
to compete in today’s very competitive business world if it lacks a strong online presence, which is
the essence of e-commerce. A wide range of small and large companies have leveraged ecommerce
to bolster sales by listing their services and products online, where consumers can check them and
make enquires, as well as place orders at the click of a computer button.
E-commerce enables new and existing businesses to venture into the market and reach potential
customer without the need for physical presence. This way, business organizations can create
products, avail them on their websites and other electronic portals and make sales through online
transactions, a move that is only possible through electronic commerce. All in all, the importance of
electronic commerce in the marketplace cannot be overstated, as it has revolutionized the way of
doing business.

KEY TAKEAWAYS
 Ecommerce is the buying and selling of goods and services over the Internet.
 It is conducted over computers, tablets, smartphones, and other smart devices.
 Almost anything can be purchased through ecommerce today.
 It can be a substitute for brick-and-mortar stores, though some businesses choose to
maintain both.
 Ecommerce operates in four market segments, including business-to-business, business-to-
consumer, consumer-to-consumer, and consumer-to-business.

CONCLUSION
Any commercial transactions taking place over the internet comes under e-commerce or electronic
commerce. The popularity of these transactions can be estimated from the fact that more
than 93.5% of global internet users have purchased a product or service online at least once. The
current Covid-19 pandemic has played the role of catalyst in strengthening the market position of
the e-commerce businesses.
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 E-COMMERCE

The term electronic commerce (ecommerce) refers to a business model that allows companies and
individuals to buy and sell goods and services over the Internet. Ecommerce operates in four major
market segments and can be conducted over computers, tablets, smartphones, and other smart
devices. Nearly every imaginable product and service is available through ecommerce transactions,
including books, music, plane tickets, and financial services such as stock investing and online
banking.

As noted above, ecommerce is the process of buying and selling tangible products and services
online. It involves more than one party along with the exchange of data or currency to process a
transaction. It is part of the greater industry that is known as electronic business (ebusiness), which
involves all of the processes required to run a company online.

Ecommerce has helped businesses (especially those with a narrow reach like small businesses) gain
access to and establish a wider market presence by providing cheaper and more efficient
distribution channels for their products or services. Target (TGT) supplemented its brick-and-mortar
presence with an online store that allows customers to purchase everything from clothes and
coffeemakers to toothpaste and action figures right from their homes

Ecommerce operates in all four of the following

major market segments. These are:

 Business to business (B2B), which is the

direct sale of goods and services between
businesses
 Business to consumer (B2C), which
involves sales between businesses and
their customers
 Consumer to consumer, which allows
individuals to sell to one another, usually
through a third-party site like eBay
 Consumer to business, which lets individuals sell to businesses, such as an artist selling or
licensing their artwork for use by a corporation

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Providing goods and services isn't as easy as it may seem. It requires a lot of research about the
products and services you wish to sell, the market, audience, competition, as well as expected
business costs.

Once that's determined, you need to come up with a name and set up a legal structure, such as a
corporation. Next, set up an ecommerce site with a payment gateway. For instance, a small business
owner who runs a dress shop can set up a website promoting their clothing and other related
products online and allow customers to make payments with a credit card or through a payment
processing service, such as PayPal.

Ecommerce has changed the way people shop and consume products and services. More and more
people are turning to their computers and smart devices to order goods, which can easily be
delivered to their homes. As such, it has disrupted the retail landscape. Amazon and Alibaba have
gained considerable popularity, forcing traditional retailers to make changes to the way they do
business.

But that's not all. Not to be outdone, individual sellers have increasingly engaged in e-commerce
transactions via their own personal websites. And digital marketplaces such as eBay or Etsy serve
as exchanges where multitudes of buyers and sellers come together to conduct business.

Example of Ecommerce

Amazon is a behemoth in the ecommerce space. In fact, it is the world's largest online retailer and
continues to grow. As such, it is a huge disrupter in the retail industry, forcing some major retailers
to rethink their strategies and shift their focus.

The company was launched its business with an ecommerce-based model of online sales and
product delivery. It was founded by Jeff Bezos in 1994 as an online bookstore but has since
expanded to include everything from clothing to housewares, power tools to food and drinks, and
electronics.

Company sales increased by 38% in 2020 from the previous year, totaling $386.1 billion compared
to $280.5 billion in 2019. Amazon's operating income also jumped to $22.9 billion for the 2020
fiscal year from $14.5 billion in 2019. Net income rose from $11.6 billion in 2019 to $21.3 billion
by the end of 2020.5

The company also expanded beyond ecommerce, providing cloud storage services, video and music
streaming, electronic devices (such as Alexa, the personal assistant, and its Fire TV digital media
player).

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 EVOLUTION OF E-COMMERCE

Most of us have shopped online for something at some point, which means we've taken part in
ecommerce. So it goes without saying that ecommerce is everywhere. But very few people may
know that ecommerce has a history that goes back before the internet began.

Ecommerce actually goes back to the 1960s when companies used an electronic system called the
Electronic Data Interchange to facilitate the transfer of documents. But it wasn't until 1994 that the
very first transaction. took place. This involved the sale of a CD between friends through an online
retail website called NetMarket.33

The industry has gone through so many changes since then, resulting in a great deal of evolution.
Traditional brick-and-mortar retailers were forc.ed to embrace new technology in order to stay
afloat as companies like Alibaba, Amazon, eBay, and Etsy became household names. These
companies created a virtual marketplace for goods and services that consumers can easily access.

New technology continues to make it easier for people to do their online shopping. People can
connect with businesses through smartphones and other devices and by downloading apps to make
purchases. The introduction of free shipping, which reduces costs for consumers, has also helped
increase the popularity of the ecommerce industry.

Advantages of Ecommerce

The online marketplace is a good platform for you to expand your business. These are the plus
points we will talk about.

1. Faster buying process

2. Store and product listing creation

3. Cost reduction

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4. Affordable advertising and marketing

5. Flexibility for customers

6. No reach limitations

7. Product and price comparison

8. Faster response to buyer/market demands

9. Several payment modes

1. Faster buying process

Customers can spend less time shopping for what they want. They can easily browse through many
items at a time and buy what they like. When online, customers can find items that are available in
physical stores far away from them or not found in their locality.

For example - Rajesh is a customer who goes to a store to buy a washing machine. After searching,
he realises that he cannot find the product he needs. He logs onto a popular ecommerce
marketplace and finds the washing machine. What is even better is that there is a special offer
price and it can be delivered to his home.

This is where ecommerce comes to the rescue for many shoppers. They go online, search for an
item, get a fast response and can buy it just as quickly.

Advantages of e-business include helping one to choose from a wide range of products and get the
order delivered too. Searching for an item, seeing the description, adding to cart – all steps happen
in no time at all. In the end, the buyer is happy because he has the item and didn’t have to travel
far.

2. Store and product listing creation

A product listing is what the customer sees when they search for an item. This is one advantage in
ecommerce meant for the seller. This online business plus point is that you can personalise your
product listing after creating them. The best part? Creating a listing takes very little time, all you
require is your product name or codes like EAN, UPC, ISBN or ASIN.

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Sellers can add many images, a description, product category, price, shipping fee and delivery
date. So, in just one step you can tell the customer many things about the item. Creating your
listing shows the buyers what you have.

Customising listings makes them attractive and appealing. Here the seller has full control over
customisation, he can mention offers available, discounts etc. Other advantages of e-business
product listing are that it is free to upload and fast.

3. Cost reduction

One of the biggest advantages of ecommerce to business that keep sellers interested in online
selling is cost reduction. Many sellers have to pay lots to maintain their physical store. They may
need to pay extra up front costs like rent, repairs, store design, inventory etc. In many cases, even
after investing in services, stock, maintenance and workforce, sellers don’t receive desired profits
and ROI.

How this is different with online stores? - With an ecommerce store, a seller can reduce how much
is spent in store upkeep. An ecommerce store is affordable and requires less investment when
compared with a physical store.

This is also a good opportunity for individual and small scale sellers who want to earn an income
but don’t have the required start-up capital.

4. Affordable advertising and marketing

Sellers don’t have to spend a lot of money to promote their items. The world of ecommerce has
several affordable, quick ways to market online. Ecommerce marketplaces are visual channels –
and sellers can really show off their product. For example, Amazon sellers can use Advertising
tools to add videos, infographics, good quality resolution images.

One can add life to plain, boring text using DIY features to create customised deals, coupons, A+
content and sponsored ads. Many ecommerce marketplaces offer customer insight tools that can be
used to analyse customers. Usually, this is a page that shows all orders – pending, unshipped, sent,
cancelled, returns.

5. Flexibility for customers

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An important advantage of ecommerce to business is that sellers can provide flexibility to
customers. One highlight is that the product and services are ready 24x7. The result is that seller
can offer his item any place, any time.

Customers are always present on an ecommerce marketplace - They are likely to return for repeat
purchases online because of the conveniences they get. These conveniences include free shipping
(usually on a minimum cart value), express order delivery, deals and discounts, subscription
advantages.

They also share reviews on the things they buy. Good reviews result in two extra benefits of
ecommerce. One is that buyers gain trust in your store based on the number of positive reviews.
The other is that it can help you identify your best-selling items.

Sellers can leverage this customer flexibility to build their revenue. They can sell on an online
marketplace confidently knowing that there are plenty of buyers.

6. Product and price comparison

In ecommerce, sellers can compare the products using tools or on their own. This gives them a
good idea of product alternatives available, the standard rates, if a product need is unfulfilled.

Comparison is faster online and covers many products - It helps to save time when making this
comparison, as all details are available on the shopping site. In a physical store, sellers may not be
able get access to so many details –they only have better knowledge about their own inventory.

This is one more benefit for the customer too. When people see many items ready for purchase,
they feel more confident about spending.

7. No reach limitations

A seller with a physical store may only be able to reach a certain number of buyers. They can
deliver to the customers’ homes but there can be distance limitations. Several e-commerce
marketplaces have their own logistics and delivery system.

Reaching out to more customers - Sellers that need to expand their reach to find new customers
can benefit from this. This applies to online-only sellers and those with a physical store.

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Online-only sellers can save on the logistics costs and be rest assured of customers. Sellers with a
physical store begin selling their goods to local buyers.

8. Faster response to buyer/market demands

Every interaction is faster when you begin selling online. Ecommerce marketplaces offer you a
streamlined logistics or delivery system. What this means is that the buyers order gets delivered
efficiently. Product returns management is one more plus point that can be handled quickly – you
either refund the payments or give a replacement.

Speedily actions can even be applied when responding to market demands. Think of this
ecommerce example - when a buyer sees that an item is out of stock, he can click on the ‘Notify
Me’ option. This informs him when that item is available for sale again. It also informs sellers that
they need to restock that item so they can get more buyers.

Next comes the trends - Suppose there is demand for voice activated personal assistants, a seller
can immediately respond to that demand by stocking these items. He is sure that this product will
sell and has seen the same happening with other sellers to.

Merchants can create deals, promotions quickly too. This attracts customers and increase chances
of creating more sales. Ecommerce sellers may plan and apply coupons when they like – even
customise such offers for their own store.

9. Several payment modes

Buyers like personalisation – the same goes for paying for their orders. Ecommerce marketplaces
permit multiple payment modes that include UPI, cash on delivery, card on delivery, net banking,
EMIs on credit or debit card and pay-later credit facility.

Cart recovery – This is one huge benefit or ecommerce. Sometimes a buyer reaches the checkout
page but doesn’t complete the purchase. Here, you can notify customers via phone messages, email
to finish buying.

There is a catch – Customers can only use one type of payment mode per order. This choice is
affected by the order value, ease of payment or availability of cash or card. In some cases, payment
modes can be merged with a dedicated wallet amount. What this means for sellers is that they no
longer have to lose a potential sale opportunity due to lack of available payment modes.

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 TYPES OF E COMMERCE

B2B

Business-to-business (B2B), also called B-to-B, is a form of transaction between businesses, such
as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business-to-
business refers to business that is conducted between companies, rather than between a company
and individual consumer. Business-to-business stands in contrast to business-to-consumer (B2C)
and business-to-government (B2G) transactions.

Business-to-business transactions are common in a typical supply chain, as companies purchase

components and products such as other raw materials for use in the manufacturing processes.
Finished products can then be sold to individuals via business-to-consumer transactions.

In the context of communication, business-to-business refers to methods by which employees from

different companies can connect with one another, such as through social media. This type of
communication between the employees of two or more companies is called B2B communication.

Example of Business-to-Business (B2B)

Business-to-business transactions and large corporate accounts are commonplace for firms
in manufacturing. Samsung, for example, is one of Apple's largest suppliers in the production of
the iPhone. Apple also holds B2B relationships with firms like Intel, Panasonic and semiconductor
producer Micron Technology.

B2B transactions are also the backbone of the automobile industry. Many vehicle components are
manufactured independently, and auto manufacturers purchase these parts to assemble
automobiles. Tires, batteries, electronics, hoses and door locks, for example, are usually
manufactured by various companies and sold directly to automobile manufacturers.

Service providers also engage in B2B transactions. Companies specializing in property

management, housekeeping, and industrial clean-up, for example, often sell these services
exclusively to other businesses, rather than individual consumers.

B2C

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The term business-to-consumer (B2C) refers to the process of selling products and services
directly between a business and consumers who are the end-users of its products or services. Most
companies that sell directly to consumers can be referred to as B2C companies.

B2C became immensely popular during the dotcom boom of the late 1990s when it was mainly
used to refer to online retailers who sold products and services to consumers through the internet.

As a business model, business-to-consumer differs significantly from the business-to-

business (B2B) model, which refers to commerce between two or more businesses.

Business-to-consumer (B2C) is among the most popular and widely known sales models. Michael
Aldrich first utilized the idea of B2C in 1979, who used television as the primary medium to reach
out to consumers.

B2C traditionally referred to mall shopping, eating out at restaurants, pay-per-view movies, and
infomercials. However, the rise of the internet created a whole new B2C business channel in the
form of e-commerce or selling goods and services over the internet.

Although many B2C companies fell victim to the subsequent dotcom bust as investor interest in
the sector dwindled and venture capital funding dried up, B2C leaders such as Amazon  and
Priceline survived the shakeout and have since seen tremendous success.

Any business that relies on B2C sales must maintain good relations with their customers to ensure
they return. Unlike business-to-business (B2B), whose marketing campaigns are geared to
demonstrate the value of a product or service, companies that rely on B2C usually elicit an
emotional response to their marketing in their customers.

Example of a Business-to-Consumer Company

One example of a major B2C company today is Shopify, which has developed a platform for small
retailers to sell their products and reach a broader audience online. Before the advent of the
internet, however, business-to-consumer was a term that was used to describe take-out restaurants,
or companies in a mall, for instance. In 1979, Michael Aldrich further utilized this term to attract
consumers through television

C2C

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Customer to customer (C2C) is a business model whereby customers can trade with each other,
typically in an online environment. Two implementations of C2C markets are auctions and
classified advertisements. C2C marketing has soared in popularity with the arrival of the internet
and companies such as Ebay, Etsy, and Craigslist.

How Customer to Customer (C2C) Works

C2C represents a market environment where one customer purchases goods from another customer
using a third-party business or platform to facilitate the transaction. C2C companies are a type of
business model that emerged with e-commerce technology and the sharing economy.

Customers benefit from the competition for products and often find items that are difficult to locate
elsewhere. Also, margins can be higher than traditional pricing methods for sellers because there
are minimal costs due to the absence of retailers or wholesalers. C2C sites are convenient because
there is no need to visit a brick-and-mortar store. Sellers list their products online, and the buyers
come to them.

Examples of C2C Companies

In e-commerce, some big names in C2C include eBay, Etsy, Craigslist, Ali Express, and Amazon
Marketplace. Some C2C payments companies include Venmo, Paypal, and Zelle.

E-Governance

Definition: E-governance, expands to electronic governance, is the integration of Information

and Communication Technology (ICT) in all the processes, with the aim of enhancing
government ability to address the needs of the general public. The basic purpose of e-governance is
to simplify processes for all, i.e. government, citizens, businesses, etc. at National, State and local
levels.

In short, it is the use of electronic means, to promote good governance. It connotes the
implementation of information technology in the government processes and functions so as to
cause simple, moral, accountable and transparent governance. It entails the access and delivery
of government services, dissemination of information, communication in a quick and efficient
manner.

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Benefits of E-governance

 Reduced corruption

 High transparency

 Increased convenience

 Growth in GDP

 Direct participation of constituents

 Reduction in overall cost.

 Expanded reach of government

Through e-governance, the government plans to raise the coverage and quality of information
and services provided to the general public, by the use of ICT in an easy, economical and
effective manner. The process is extremely complicated which requires, the proper arrangement of
hardware, software, networking and indeed re-engineering of all the processes to facilitate better
delivery of services.

Types of Interactions in E-Governance

1. G2G (Government to Government): When the exchange of information and services is

within the periphery of the government, is termed as G2G interaction. This can be both
horizontal, i.e. among various government entities and vertical, i.e. between national, state
and local government entities and within different levels of the entity.

2. G2C (Government to Citizen): The interaction amidst the government and general public
is G2C interaction. Here an interface is set up between government and citizens, which
enables citizens to get access to wide variety of public services. The citizens has the freedom
to share their views and grievances on government policies anytime, anywhere.

3. G2B (Government to Business): In this case, the e-governance helps the business class to
interact with the government seamlessly. It aims at eliminating red-tapism, saving time, cost
and establish transparency in the business environment, while interacting with government.

4. G2E (Government to Employees): The government of any country is the biggest employer
and so it also deals with employees on a regular basis, as other employers do. ICT helps in
making the interaction between government and employees fast and efficient, along with
raising their level of satisfaction by providing perquisites and add-on benefits.

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E-governance can only be possible if the government is ready for it. It is not a one day task, and so
the government has to make plans and implement them before switching to it. Some of the
measures include Investment in telecommunication infrastructure, budget resources, ensure
security, monitor assessment, internet connectivity speed, promote awareness among public
regarding the importance, support from all government departments and so forth

E-governance has a great role to play, that improves and supports all tasks performed by the
government department and agencies, because it simplifies the task on the one hand and
increases the quality of work on the other.

Impact of E-commerce on Banking

Banks are responsible for processing payment for e-commerce goods and services, which means
that banks have gone from brick and mortar institutions to digital financial landscapes. Here are the
biggest ways that the banking sector has been impacted by e-commerce.

Changes from e-commerce in banking

1. Online-only banks

Banks were once institutions that helped manage customer money, exchange checks for cash, and
provide other financial services. E-commerce led to the rise of electronic banking in a big way.
Customers very quickly wanted the convenience that online shopping offered in all of their affairs
and digital banking, with options like online accounts, account money transfers, and eventually
online bill pay and mobile check deposits became a normal part of most consumer interactions with
banks. This led to many banks providing the same services – checking, savings, loans, credit cards,
and bill pay – without having physical locations. Banks like Ally are leaders in the online-only
banking revolution.

2. PayPal and other 3rd party intermediaries

PayPal was developed as a safer way to pay merchants, vendors, and individuals – instead of giving
a company or person your credit card information or banking information, you could use PayPal as
the go-between. PayPal was touting itself as a secure and encrypted platform for handling payment
long before most other financial organizations had thought to elevate the security. PayPal also

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quickly became a viable payment option in e-commerce settings, replacing the need for entering
credit card numbers or bank account numbers by substituting it with one account login.

3. Online loan and mortgage vendors

Banks aren’t the only financial organizations that are growing their online presence or streamline
the process to be completed online. Companies like Rocket Mortgage offer customers a way to
apply for a mortgage or refinance loan completely online, while companies like LendingTree help
both individuals and businesses apply for and secure personal loans without ever needing to meet in
person with a loan advisor.

4. Investment companies

Investing has moved to online sites and mobile apps. Banks aren’t the only places that can help you
save money, and financial advisors offices aren’t the only places to create investment plans. Online
only brokers now exist as a way to meet the online and e-commerce niche of customers looking to
simplify and modernize their investment and savings experiences.

5. Data mining for better products and marketing

One way that online shopping has changed banking is through banks and finance organizations now
having more access to customer behaviour and transaction information. This has led to data
analytics being used to discover customer interests and to develop the kinds of products that help
customers have a better financial experience.

6. Changing in-store payment options

Banks and mobile companies alike have taken to developing technology that makes it easier to use
digital options, like a mobile device, to safely transmit payment data to facilitate payment for in-
person transactions at places like the grocery store and coffee shop. Apple Pay and Google Wallet
have made consumer payment options safer and easier in a digital age.

The future of e-commerce in banking

Overall, the banking and e-commerce experience has been largely dependent on each other. E-
commerce necessitated banking and finance changes and these changes helped to further the
capabilities of e-commerce, eventually leading to the success in mobile driving more of the success
of e-commerce and online shopping.

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Changing technology has created customer experiences that have gone on to change customer
expectations. Businesses can’t afford to not pay attention to the relationships between commerce,
consumers, and technology. Finance organizations have had to adapt quickly and significantly to be
able to keep pace with the way that technology creates changing customer landscapes, and in some
cases have had to not only change their business model but they’re product offering.

How Banking Industry has evolved post E-commerce applications?

E-commerce has fundamentally changed the way that companies do business. In fact, some research
notes that e-commerce sales alone will make up almost 14% of all retail sales transactions in 2019.
It’s more important than ever to have good financial practices in place to grow the business and
connect with customers safely, securely, and easily.
Banking practices have changed in some ways to keep up with customer expectations and
technological demands set forth by e-commerce experiences.

Applications of E-Commerce in Banking

Here are some of the most important current applications of e-commerce in banking.

1. Electronic billing
Electronic billing is one of the biggest benefits that e-commerce has brought to both consumers and
businesses. Banks now offer the ability to automatically pay your bills through their website or on
their app. Companies can send out electronic invoices to their customers and receive payment
automatically instead of waiting for and cashing a physical check. The connection between the
ability for banks to send and receive payment digitally and the rise of e-commerce as a primary
driver of sales and revenue in many businesses is not a coincidence; it would be nearly impossible
to effectively have one without the other.

2. ID verification
Banks can and should take identification very seriously. The job of a credible financial institution is
to ensure that the person spending is the person who should have access to the funds in the account.
This has become harder the more technology has advanced. But technology has also helped drive
innovation in the ability to confirm the identity and other credentials so that customers can conduct
their e-commerce transaction more securely, without the possibility of data being stolen or leaked
This identification process is not just a protection for the customer, but also for the retailer or
vendor. It’s the responsibility of all stakeholders – banks and e-commerce retailers alike – to
uphold ID verification and customer information security standards.
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3. Mobile payments
Mobile commerce, or m-commerce, is an important part of e-commerce. Mobile focused commerce
has become a new normal for many people who are now able to buy everything from a dog sitter to
a plane ticket from their phone. A smartphone has become another important e-commerce tool,
however – a digital wallet. Customers can now pay for many of their in-person purchases with a
smartphone app, whether it’s a bank-backed credit card app or an app like Apple Pay which keeps
payment options for customers’ various financial sources together in one place for easy payment.
While mobile payments are more often used to describe in-person digital transactions, they are
definitely born out of the application of e-commerce in banking endeavours.

4. Digital-only banking
E-commerce has enabled app payments and transactions, leading the way for re-education in
physical brick and mortar banks. While many large banks with an e-commerce presence do still
have in-person presences in certain communities, many banks have opened as online-only
operations, such as Ally. Mortgage brokers have joined the only online finance trend as well.
Having users interact with their banking primarily through an app is in line with how consumers
interact with many other parts of their daily lives, from paying for coffee to ordering groceries to set
doctor’s appointments and more. Online-only banks can also offer a better banking experience by
often being able to give customers a better interest rate on savings accounts or loans because of the
money the bank itself was able to save by not having to pay overhead costs like rent, etc.

5. B2B innovation
The e-commerce experience has changed the way B2B buyers anticipate buying and selling
experiences to go. This has largely been due to the implication of e-commerce in banking in B2C
spheres. E-commerce has enabled banks to offer faster account opening, digital invoice payment,
and other conveniences that B2C buyers have long enjoyed. B2B buyers have experienced these
features in their non-business life and are making demands in the marketplace that their B2B
experience is more consistent and matches the rest of modern life. E-commerce and banking, then,
have a responsibility to continue to elevate the customer experience.

6. International commerce
E-commerce has made it easier for people to bank internationally or pay for goods and services
from another country without having to work around banking regulations or exchange rates. Third-
party vendors like PayPal work as a go-between for e-commerce retailers and financial
organizations and banks.

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E-commerce has created a lot of opportunities for banking and the applications of e-commerce in
banking continue to grow, with both retailers and finance organizations working to create a better
customer experience through technology that will help businesses from both industries grow
revenue and strengthen their brand.

FINDINGS & ANALYSIS

1 – People Are Using More Mobile

In many countries , mobile device users were highest at 0.72 billion where the mobile internet
penetration increased from 95.1% to 96.3% in 2017. Smartphones are the key internet device, and
the most commonly-owned device in this market, they are also perceived to be internet users’ most
important internet access point.

2 – No. of Digital Consumers is Rising

As at June 2017, more than 0.5 billion Chinese were shopping online and the half year percentage
growth was 9%. Online shopping via mobile devices accounted for 66.4%, equal to 0.48
billion people.

3 – Behavior of Digital Consumers

Where does the consumer know about the brand? The Internet and mobile commerce influence
much the consumer journey. When a consumer did brand and product research, most people relied
on the search engine (41%), following online consumer reviews (30%) and via
the social network (29%).

What eCommerce policy does the consumer concern? When your online (mobile) retail platform
was setup, you should also notice the following operation policies that the customers
concern. 49% of consumer concerned ‘Free Delivery’. One of the reasons why the
Amazon Prime membership can successfully drive sales will be the free delivery policy. Consumers
can feel free to buy without worry about delivery cost. Quick and easy checkout process

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(33%) will be related to user interface / user experience and the seamless integration of mobile
payment like Alipay, WeChat Pay and Union Pay.

4- What Is the Mobile Future of E-Commerce?

Mobile commerce or m-commerce has a golden future in evolving markets. According to a survey

conducted in 2012 by Google, 74% of users return to a mobile-friendly site. Mobile-friendly e-
commerce sites are popular due to the increase in mobile traffic. Further, the mobile traffic exceeds
or at least equals the desktop traffic on weekends. Further, Google has already shifted to the
“mobile-first” version. Hence, e-commerce has a promising future with a mobile audience.

CONCLUSION

With more than 95% of all purchases going online by 2040, understanding the working of e-
commerce is beneficial for many budding entrepreneurs and existing businesses. The commercial
transactions over the internet date back to 1887, when IBM was established. It is easy to understand
the different components of e-commerce and then go for a deep understanding of this popular
business model. A quick list of the must-to-have features in an e-commerce website and related
steps to design one for your needs helps businesses enter this challenging market confidently.

The B2C, B2B, and marketplace e-commerce models are not to miss, followed by some of the
leading examples in e-commerce domains. It is essential to decide from the marketplace or website
for your e-commerce after going through the key advantages and disadvantages of e-commerce.
With more than 93% of Millennials comparing different e-commerce deals using mobile devices
only, it becomes essential to look at the mobile e-commerce must-to-haves. A quick look at the
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promotion, conversion rate, and measuring e-commerce success towards the end makes it easy for
anyone to understand all about the working of e-commerce.

Now the main question is, whether E-commerce has benefited the market or not?

E-commerce has been a changing point for many young entrepreneurs. It has been a beneficial
factor for all those who have wanted to create a mark in the business world. But it has also affected
the other offline businessmen, big and small. We can conclude that the new path in the world of
technology viz e-commerce is a boon as well as bane under certain circumstances and categories.
But definitely, this market will create a huge change in the future as it is creating in the current
business world.

SUGGESTIONS

Running a successful ecommerce business is no easy task. Thus, this is a list of 17 handy
ecommerce marketing tips to help grow the business-

1. Leverage real-time personalization

2. Use discount sales

3. Make your website mobile friendly

4. Add live chat

5. Use opt-in pop-up offers

6. Offer free shipping

7. Reduce cart abandonment

8. Promote customer reviews and build trust

9. Step up your email marketing

10. Provide excellent customer support

11. Reward loyal customers

12. Take an innovative approach

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 13. Think about user experience

14. Upsell and cross-sell products

15. Use social media

16. Start content marketing

17. Create a chatbot

Thus, these tips can improve both user experience and conversion rates. They recognize key
touchpoints along the customer journey that can make or break a sale. Using these tips to boost
sales means you are also positioning your ecommerce business for sale if you decide to exit in the
future. It’s always best practice to keep your business optimized.

LIMITATION OF STUDY

E-commerce is a commercial sector where transactions are possible with the help of internet
connection. More and more industries are moving their operations via online mode as it is the
choice of the consumer. Its prevalence continues to grow and prosper without any signs of slowing
down. The ability to operate online has made many entities profitable.  There cannot be ups without
downs and pros without cons and this is the case with e-commerce.

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 Its functioning is fully dependent on internet connection and the world is still at a stage where
several places do not have this facility. The software industry is at an evolving stage and keeps on
changing the rules of the game.

One of the most important disadvantages of e-commerce can be a lack of reliability and security
because of poor implementation. The other factor is user resistance as most people are not
comfortable in making a purchase without trying or physically touching the product.

Late delivery is one of the common disadvantages of e-commerce platforms. While ordering a
product the customer is assured that it will reach him in maximum seven days or a particular time
period. In most cases that does not happen and you are kept waiting for it.

Conclusion

Around 80% of eCommerce businesses have been failing because of lacking those issues. So, for
starting an eCommerce business, you must have to be conscious of those factors. If you can manage
all things properly, then you will be successful in your eCommerce startups.  

BIBLOGRAPHY
I have taken reference from following sources -

SITES
1. GOOGLE.COM
2. WIKIPEDIA.ORG
3. BUSINESSNEWSDAILY.COM
4. BIGCOMMERECE.COM
5. INVESTOPEDIA.COM

BOOKS
1. The Complete E-Commerce Book -Janice Reynolds
2. E-Commerce by Satish & Brothers
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3. E-Commerce by Shivani Arora

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