E - Commerce

Team : Koncept K
Members: Saurabh Mishra
(09BM8045)
Swati Arora
(09BM8032)
 Topics
•Business Model
•The Players –B2C, B2B, Platform, Domestic
•The B2C and Platform Market
•The B2C and Platform Analysis
•The B2B Market
•The B2B Analysis
•The Indian E Commerce Market Analysis
•SWOT – Traditional vs E Commerce
•PEST Analysis
•Porter Analysis
•Why Use the Space
•The Revenue Model
 Business Models
●
Businesses selling
directly to customer
●
Cost Saving
B2C

●
Providing platform for
interaction and business
●
Volume of business
Cost Saving, Higher B2B model is still in
This is the growth path
Platform
of E-Commerce
volume of business, ease nascent phase because of
of business are the drivers the purchase complexities

Complete business transaction

●

●
 The B2C and Platform Market

Company/
Consumer Individual
Contact Mode : Internet Seller
Delivery : Physical/Online
Payment : Online

1.Business driven by volume and number of hits

2.Ease of usage and purchase is the biggest driver for customer
3.For businesses, lower cost of selling is the motivation
4.Characterized by small facility requirement, smaller sales force
and better online marketing tactics
 The Players – B2C and Platform
Online real estate agency
ZipRealty gives users home listings and values across more than a million homes.
Home owners can also list their home right on the site, and have ZipRealty help sell it with lower commission.

Doctor and dentist finder

Lets patients book a time with their doctor online
ZocDoc also features a ratings system, which lets users rate each provider with both a star rating and a written review.

Online money exchange services

One of the most widely recognized payment systems on the Internet. Now purchased by eBay.
It's used in online auctions and stores as a way to control and manage payments.
Online Retail
Started out with books and now sells nearly every consumer good, including groceries and over-the-counter
medicines.
Users write reviews and rate nearly every product on the service.

Online Retail
Most of the items sold are electronics
Unsold goods are then later sold
 The Players – B2C and Platform
Online Handmade Goods
Users can create their own virtual shop-fronts to sell almost anything they'd want.
It's also a great place for people to sell their stuff without having to buy a special domain

Online Real Estate Service

Instead of having to go visit houses in person, you can do so online, browsing by
neighborhood and narrowing down what you're looking for based on a variety of parameters.

Online Classifieds Service

Users can post items they want to sell and get responses by telephone or e-mail from people
who live around them.
Many employers who agree to pay the $25-$75 per category to list their openings.

Event Management Service

Eventbrite lets you set up a customized destination page where attendees can register and buy tickets.
Eventbrite makes its money off of fees. The more expensive your event is, the more it charges.
 The B2C and Platform Analysis
Website Website Website Daily Page Google Daily Ad Users-
Age Value Views Page Rank Revenue India

11 years, 9 $ 52.43
PayPal 23,255,814 8 $ 71,818 5.2%
months Million

Amazon 16 years, 7 $ 149.08 7361286 9 $ 204,214 3.3%

months Million

13 years, 8 $ 64.31
Craigslist months Million 3254205 7 $ 88,093 0.8%

6 years, 6 $ 2.47
Zillow months Million 1,071,812 7 $ 3,389 2%

$ 1.71
Eventbrite 3 Years 798,723 7 $ 2,344 3.6%
Million

11 years, 3 $ 3.02
Woot 1,308,901 6 $ 4,133 1.3%
months Million
 The B2B Market

Company Company
providing Requiring
Product/Service Contact Mode : Internet Product/Servi
Delivery : Physical/Online ce
Payment : Online

1. Helps Businesses reach your supply chain extremes and perform

better CRM and SRM at lower costs
2. Marketing becomes less costly and more effective
3. Can be implemented with least sales force
4. Grows business network and contacts
 The Players – B2B
Online B2B Market Place for SME
online platform with sophisticated technologies to serve all the Small and Medium Enterprises (SME) around the world
They can build up their own showrooms and sell the products in EasyTrade.com.

Online Software Marketplace

Software industry is driven by thousands of entrepreneurial companies producing innovative solutions
Capterra allows organizations to find the right software by presenting them with all of their options so they can
compare solutions and make the right decision

Wholesale Marketplace
Largest China-based online wholesale trading platform
DHgate.com offers over 20 million product listings at any one time from over 650,000 dedicated China-based suppliers.

B2B e-commerce and integration services company

Cloud Computing
DHgate.com offers over 20 million product listings at any one time from over 650,000 dedicated China-based suppliers.

Online Supplier Search

Find suppliers for almost all the segments like Agri, Apparel, Chemical, Computer etc
Presence in some 40 contries.
 The B2B Analysis
Website Website Website Daily Page Google Daily Ad Users-
Age Value Views Page Rank Revenue India
14 years,
EasyTrade 10 $ 3,993 NA 4 $5 NA
months,
14 days
11 years, 6
Capterra months, $ 119,130 50,406 5 $ 163 13.2%
24 days
6 years, 6
$ 1.74
Dhgate months, Million 97903 7 $ 2,386 3.6%
22 days
 The Players – Domestic
Online Realty Market
Biggest Indian Player
Presence in all the metros and almost all tier 2 cities
Online Used Car Market
Unique feature of car reviews and user interaction
Largest online store in the market

Online Realty Market

Focus on middle class segment
B2B Market Place
India’s largest B2B market place providing procurement, buyer,
surplus inventory, used machinery sale etc
 The Domestic Analysis
Website Website Website Daily Page Google Daily Ad Users-
Age Value Views Page Rank Revenue India
5 years,
Magicbricks 5 $ 531,423 226194 6 $ 728 96.2%
months
Carwale 7 Years $ 1,299 NA 0 $2 100%
10
Makaan years, 5 $ 272,044 NA 5 $ 373 93.4%
months
15
Indiamarkets years, 2 $ 1.72M 741270 6 $ 2351 81.9%
months
 The Indian vs US E Commerce Market Analysis
2008 Data

IMRB Report

•Indian e-commerce Industry size between Rs.9, 000-10,000 Crores (i.e. Rs 90 -100
Billion which is about US $ 2 Billion)
•US B2C ecommerce Market is estimated at $ 220 Billion at end of 2008 and is
expected to shrink about 1.5% in 2009 and grow about 7% in 2010.
•Indian economy is about 7% the size of US economy and the Indian e-commerce
market is only about 1% the size of US B2C e-commerce market.
•Take out online travel and Indian e-commerce market is about $400 million a mere
0.3% of the US B2C e-commerce market.
 The US B2C Commerce Market
2010 Data

• In 2009, B2C E-Commerce reached 3.7% of total retail sales in the US, up from
3.3% in 2008.
• The number of Internet users in the US is forecasted to reach nearly 230 million in
2011, accounting for more than 70% of the total population.
• Developments such as private sales sites and group buying noticeably further
increase the turnover that might be attained in US E-Commerce, as do the
integration of online and offline activities.
• In 2010, online payment provider PayPal gained a market share of 12% in terms of
US B2C E-Commerce transactions, up from 10% in 2009.
• With a turnover of USD 24 billion, Amazon.com was
the largest US online merchant within the B2C segment
in 2009, followed by Apple.
S SWOT – Traditional
Wvs E Commerce
S
1) 24X7 Business W
2) No location Constraint
1) No direct interaction between the customer
and the seller
3) The products reach to customers directly 2)  Transportation cost may increase the
from the producers at a lower price than product cost.
the market value. 3) No. of potential customers who can buy
4) It is fast and effective. through Internet is still not enough
5) Cost Effective Advertising
6) Low staff cost.
7) Fast Financial transactions
8) Low Initial Investment

O
1) Number of Internet users 
2) Big companies are already entering in this
T
1) Dishonest persons entering in this field which
damage the confidence and faith of common
field so; they are making people habitual people on marketing through Internet
and confident about marketing through
Internet at the cost of the companies.
 PEST Analysis
 Laws affect products that can be sold in the country you are shipping to or products
Political that can be sold online.

 The PCI and Disposable Income of the Indian population increasing. More people
Economic are hitting websites to shop

The social effect on your business could be massive especially if you are in the
business of consumer markets.
Social  Monitor social networks that are attractive to your target audience.

Ecommerce websites and forum technology is so advanced that it is relatively easy

to set up an online business for hundreds not thousands.
Technological On top of this, getting your message across can be much easier if clever technology
is used.
 Porter 5 Force Analysis
New Entrant : HIGH
•Small Capital Requirement, Low Switching cost
•Low Customer Loyalty
•Access to the technology is uniform

Internal Competition :
HIGH
•In each space of function eg
Power of Supplier : trade, realty etc there is
LOW presence of large number of Power of Customers:
•Supplier to the almost equally sized MODERATE
business remain the competitors •Most of the products are
same as used in •Gaps of offerings are filled
similar
traditional commerce by Niche service providers •Low switching cost
•High rivalry because of
small switching cost

Threat of Substitute: LOW

•Traditional commerce practices are the substitutes
•Traditional practices are capital intensive and risky
•Quality of offering may also be hampered
 Why Use the Space
► High rate of product obsolesce and damage, coupled with capital intensity requires firms
to monetize the investment amount in short period of time
High
High Risk
Risk Level
Level ► Exploring untapped markets, that may not provide consistent returns, in order to gain
economies of scale by spreading capex cost

► Firms are looking for translating their innovative offerings with unique marketing
Innovation
Innovation && ► Standing out from the crowd and move emphasis away from the cost factor
Differentiation
Differentiation

► Reaching to different players across various locations. Also, reaching their subsidiaries
and divisions across different geographies
Globalized
Globalized Network
Network ► In Technology sector, being hi-tech and updated with the latest technologies
communicates a positive image for the firm

► Communicating the firm’s processes, best practices over e-media in the form of videos,
Core
Core Competency
Competency management and analyst interviews, accessible to the firm’s customers
Focus
Focus

► Major platforms are free and can be easily customized on an on-demand basis
► Accessed by various players and people who play part in the buying process i.e.
Omnipresent
Omnipresent Nature
Nature influencer, gatekeeper, decider, buyer etc.
 The Revenue Model
Advertising Model
Revenue driver : Number of users
Attract more users, create ‘hubs’, optimize
recommendation/invitation process
Subscription Model
Revenue Driver : High level of unique customer value
Frequent update of profile, more user generated content, multiple
membership package with differential pricing
Transaction Model
Revenue Driver : Trust in peers and platform
Peer Trust : Validity of content
Platform Trust : High level of Privacy
Revenue Drivers : Number of Users on Platform -> Willingness to Pay -> Level of
Consumer Trust
Thank You !!!