E-Commerce &

Digital Marketing

CHIRAG
PAGARI 1
 E-commerce is the process by which
business and consumers buy and sell goods
and services through an electronic medium

It is a business transaction done via internet

It is defined as buying and selling of

Meaning products and services by businesses and
consumers throughbusiness
an electronic medium
The E-Commerce transactions
occur either as business-to-business,
business-to-consumers, consumer-to-
consumer or consumer-to-business
The best examples of electronic commerce
CHIRAG companies are ebay & Amazon
2
 Features
CHIRAG
PAGARI 3
 Unlike traditional retail business,
ecommerce is not bounded by
Breaks geographical barriers
Today an e-commerce company
Geographical can easily sell its products to
Barriers/ consumers residing in any parts
of the country
Global reach The potential market scale is
roughly equivalent to the size of
the online world’s population
CHIRAG 4
 E-Commerce helps consumers in
saving most important thing in
today’s modern world: “Time”

Saves With the help of E-Commerce,

Precious consumers need not travel to shop to
buy a product

Time
Shopping online is usually more
convenient and time saving than
conventional shopping
CHIRAG 5
 E-Commerce provides accurate
information to the customers
A customer can see the relevant
Accurate detailed information within
Information seconds rather than waiting for
days or weeks
Besides, E-commerce also
provides accurate information
to customers about billing
payment and shipping
CHIRAG 6
 Ubiquity means state of being
everywhere at once

With unprecedented growth in the

sales of tablets, smart phones, laptops
Ubiquity and other internet related gadgets, E-
Commerce companies literally follow
their consumers wherever they go

E-Commerce shopping can be done

even when consumer is walking or
jogging

CHIRAG 7
 E-Commerce
technologies facilitate
two-way
communication between
the merchant and the
Interactivity A consumer
consumer can interact
with companies using
chat, SMS, e-mail and
voice over internet
CHIRAG protocol 8
 E-commerce
application
Provides wide provides wide
Range of range of products
Products & & options to
Options
compare and
select the cheaper
CHIRAG
and better option 9
 E-Commerce helps the organisations to
reduce the cost of managing the paper
based information by digitizing the
information
It also helps in customization of
products to meet the demand of
customers, increasing productivity and
Reduces customer
E-Commerce caretechnologies
services allow
Cost merchants to target their marketing
messages to people based on their
interests
They allowandmerchants
past purchase historythe
to change
product or service to match it with the
purchasing behaviour and preferences
CHIRAG of the customers
10
 E-commerce technology
has immensely helped in
cutting down the demand of
wholesale & retail market
Cuts and over-reliance on sale
Supply force team in reducing the
This helps
Chain cost of the product which
eventually benefits the
customer
CHIRAG 11
 E-Commerce technologies
allow merchants to target
their marketing messages
to people based on their
interests and past to
Allow merchants purchase
change
Personalization history
the product or service to
match it with the
purchasing behaviour and
preferences of the
CHIRAG customers 12
 Categories
CHIRAG
PAGARI 13
 Business to business is simply
defined as E-commerce
between companies
Business It is a type of E-commerce that
to deals with the relationship
between and among businesses
Business The example for B2B is
GoDaddy, which sells domain
names, websites, and hosting
services to other business
CHIRAG 14
 It is the most common and the
second largest form of E-commerce
in which a business sells products or
services directly to consumers over
the internet

Business to It involves customers gathering

information; purchasing physical
goods or receiving products over an
Consumer electronic network

An example of a business to
consumer E-commerce transaction
would be an individual purchasing a
pair of sneakers through Nike’s 
website
CHIRAG 15
 Consumer to Business involves consumers
selling products or services to businesses
In C2B E-commerce environment,
consumers offer their products or services
Consumer online and companies post their bids
Then consumers review the bids and
to Business choose companies that meet their price
expectation
Here many individuals make their services
or products available  for purchase for
companies seeking precisely these types of
services or products
CHIRAG 16
 Consumer to Consumer E-commerce
is generally defined as commerce
between private individuals or
consumers

Consumer C2C encompasses all electronic

to transactions of goods or services
conducted between consumers
Consumer
Generally , these transaction are
conducted through a third party,
which provides the online platform
where the transaction are carried out
CHIRAG 17
 Business  to Government E-
commerce is generally defined as
commerce between companies and
the public
It refers to sector
the use of internet for
Business
public procurement, licensing 
to procedures, and other government 
Government related operations
Businesses pay taxes, file reports or
sell goods and services to Govt

CHIRAG 18
 When a government entity sell products
and services to business , it is termed as
Government to Business E-Commerce
It involves purchasing of raw materials,
Government Soliciting bids for work, licensing
applications, meeting regulations etc
to Example : The government plans to
build a fly over , for this the
Business government request for tenders for
various contractors
Government can do this over the
internet by using G2B model
CHIRAG 19
 In this model, the
government transacts
with the individual
Government consumer
Example – Government
to
can enforce laws
Consumer
pertaining to tax
payments on individual
consumer over internet
CHIRAG by using G2C model 20
 In this Model, an individual
interacts with the
government
A consumer can pay his
Consumer to income tax or house tax
Government online
The transactions involved
in this case in C2G
transactions
CHIRAG 21
 Advantages

CHIRAG 22
 The most important advantage of E-
Commerce, is that it enables a business
concern or individual to reach global
market
Just by creating a web site and
uploading it on the server, a firm is able
Global to reach millions of customer worldwide
E-commerce creates the whole world as
Market a global village from where anyone can
buy anything at anytime from anywhere
It helps to meet the demands of both the
national and the international market, as
the business activities are no longer
CHIRAG restricted by geographical boundaries
23
 Customer can do transaction for the
product or enquire about any
product/services provided by a
company anytime, anywhere from
any location

24x7 E-Commerce application provides

wide range of product & options to
compare and select the cheaper and
Available better option

The application helps the customer

with more options and quicker
delivery of products
CHIRAG 24
 E-Commerce
application provides
wide range of product &
options to compare and
Wide range select the cheaper and
of Products better option helps
The application
& Options the customer with more
options and quicker
delivery of products
CHIRAG 25
 E-Commerce helps consumers in
saving the most important thing in
today’s modern world

Saves ‘Time.’ With the help of E-

commerce, consumers need not

Time travel to shop to buy a product

Shopping online is usually more

convenient and time saving than
conventional shopping
CHIRAG 26
 As the market will
expand; the variety of
Increase in goods available will
variety of also expand
Wide variety of
goods
goods are available
than ever before
CHIRAG 27
 E-Commerce helps the
customers with user
Better reviews and feedbacks
Purchasing This reviews and
Decisions feedbacks by existing
users will help the new
users with better
CHIRAG purchasing decisions 28
 Since there is a direct contact
with the customers, it is
possible to solve their queries
regarding price, quality,
Improved additional features of the
product, etc. and thus resulting
and better in a better improved customer
customer service
Response time is reduced more
service quickly between the seller and
the buyer

CHIRAG 29
 E-Commerce helps in providing
customised products and services to the
customers
E-Commerce technologies allow
Customized merchants to target their marketing
messages to people based on their
products interests andmerchants
past purchase historythe
They allow to change
product or service to match it with the
purchasing behaviour and preferences
of the customers

CHIRAG 30
 The ability to reach
Create new potential customers
markets easily and cheaply will
create new markets

CHIRAG 31
 Disadvantages

CHIRAG 32
 The cost of creating/
Initial cost of building E-commerce
set up application may be very
high

CHIRAG 33
 User may not trust unknown
sites
Such mistrust makes it
difficult to make user switch
from physical stores to online/
User virtual stores
It is very difficult to ensure
Registration security or privacy on online
transaction
Hence e-commerce is not
accepted by older generations
due to lack of faith and trust
CHIRAG 34
 It is very difficult to
ensure security or
privacy on online
Security / transaction.
Privacy Hence e-commerce is
not accepted by older
generations due to lack
of faith and trust
CHIRAG 35
Absence Lack of touch, feel or trial of
products during online shopping is a
major drawback of E-shopping
of
Physical Many consumers are not
comfortable buying online due to

Touch
lack of trial facilities which is
possible in traditional stores

CHIRAG 36
 E-Commerce applications are still
evolving and changing rapidly

A person involved in business through E-

Dynamic commerce should monitor the dynamic
environment of ecommerce like
E-commerce technological changes, legal aspects of
ecommerce, changing component of
Environment consumers using online services

These pose a challenge to any business or

trade conducted online

CHIRAG 37
 Internet Access is still not cheaper and
is inconvenient to use for many
potential customers like one living in
remote village
Lack of Internet facility is still not accessible
in many parts of the country
Internet Not only internet connection, mere
electricity is a problem in country like
Access India in its rural interior sectors
Hence business in those areas is just
not possible through the Internet
CHIRAG 38
 E-commerce is not suitable for
perishable commodities like food
item as people prefer to shop in the
Perishable conventional way than to use e-
Commodities commerce for purchasing food
products

CHIRAG 39
 Data provided for online shopping
System may be misused

and Data Moreover, the danger of hackers

Integrity accessing files and corrupting
accounts adds more stress to an
already complex operation

CHIRAG 40
 Traditional
Commerce
v/s
E-Commerce

CHIRAG 41
Traditional Commerce
Traditional business means a business
having a physical store and personal
interaction that focuses on the exchange of
product and services
In traditional commerce, the transactions
are processed manually
In traditional commerce, the exchange of
goods and services, for money can take
place, only during working hours
In traditional commerce physical inspection
of goods is possible
In traditional commerce face-to-face
interaction is possible between buyer and
seller
The delivery of goods is immediate in
traditional commerce
The scope of traditional commerce is
limited to a particular area, i.e. the reach of
CHIRAG
business is limited to the nearby places
where it operates
PAGARI
Supply side
E-Commerce
E-commerce refers to buying, selling and
managing the either business over the
internet.
in the case of e-commerce, there is
automatic processing of transaction
In E-commerce, the buying and selling of
goods can occur anytime
Conversely, in e-commerce customers
cannot physically inspect the goods before
purchase
In e-commerce face-to-face interaction is
not possible between buyer and seller
In the case of e-commerce, the goods are
delivered at the customer’s place, after
some
On thetime, usually
contrary, thewithin
scope aofweek
e-commerce
has worldwide reach, due to its ease of
access
Demand side 42
 E-Commerce
Environmental
Factors

CHIRAG
PAGARI 43
 It includes economic policies and economic
conditions of the country. Economic events within
the country and outside also affect economic
environment. Changes in the economic policies of
the government lead to the change in the economic
Global trade liberalization and technological
environment.
advancements have opened up the domestic and
international markets. Trade liberalization is the
elimination of trade barriers that previously hindered
Economic free trade in international markets.
These transformations of the business environment,
Environment coupled with the widespread use of E-Commerce,
have enabled small businesses to access local,
regional and global markets.

The success of E-Commerce organizations depends

on prevailing economic conditions in target markets.

CHIRAG 44
 Political Environment
includes political parties and
political conditions.
Political Political environment and
Environment economic environment are
closely related as political
decisions create corresponding
changes in the economic
environment.
CHIRAG 45
 Technological environment relates
to the technology used in the
production and other business
activities.

One of the great challenges of

managing E-Commerce is the
Technological ability to assess the new
technological innovations that can
Environment be applied to give competitive
advantage.
The rapid development of
technology requires quick reaction
by businesses in order to survive in
an emerging competitive
environment and keep up with new
CHIRAG trends and innovative services that
other competitors might be offering.46
 It includes all the rules, regulations and
laws enacted by the Government.
Regulatory environment creates a
framework of regulations and legal
provisions within which the business
units must operate. What a business
Legal / can do and what business cannot do are
Regulatory decided by the regulatory environment.
India has allowed 100% foreign
Environment investments in business-to-business
(B2B) ecommerce; however, it does
not permit foreign investments in retail
ecommerce, that is, business-to-
consumer (B2C).
CHIRAG 47
 Socio- Cultural environment includes factors
such as lifestyle, social values and beliefs, etc.
Rising standard of living and increase in
disposable income of middle-class customers
have led to increase in demand for E-Commerce.
Socio - Ecommerce shopping is gaining increasing
Cultural popularity among consumers in India owing to
the high levels of trust and convenience.
Environment Indians, especially in the metros, have
prioritized time and convenience, and therefore,
are increasing purchasing from ecommerce
portals. Internet penetration has increased as
more rural consumers have been accessing the
Internet using their cell phones.
CHIRAG 48
 Demographic is the study of
population in relation to sex ratio,
literacy rate, standard of living of
people, rural/ urban division and size
of the family and so on.
The market demand, requirements of
Demographic the consumers etc. are based on
Environment demographics environment.
The study of demographic
environment has priority over other
areas of business environment as
business depends on people.
CHIRAG 49
 Factors responsible
for the growth of
E-Commerce

CHIRAG
PAGARI 50
 Tremendous growth in internet users
has led to increase in demand for e-
commerce.
Large According to Telecom Regulatory
number of Authority of India (TRAI), there were
391.50 million internet subscribers on
Internet December 31, 2016.
Technological advancements in web
Users apps and mobile apps have also
positively impacted the development
and management of ecommerce
CHIRAG websites.
51
 Consumer demand is rising rapidly even in
small towns and cities.
Rising
middle class Creations of jobs has lead to increase in
disposable income of consumers.
with Access to many global and domestic brands
is limited to major metropolitan regions,
disposable such as Delhi, Mumbai and Bangalore.
Therefore, this growing middle class is
income increasingly turning to E-commerce as the
primary outlet for sophisticated consumer
products and services.
CHIRAG 52
 The websites on the
server have removed all
the barriers of
availability of product
Anytime, from any partties
of the
E-commerce
Anywhere, world anytime.
together the industrial
Anyone sector, merchants and
service sectors and
customer under one
CHIRAG
umbrella. 53
 The use of Plastic Money- mainly
debit and credit cards has been
increasing over the years. The
usage of these cards at point-of-
sale terminals has seen a growth.
Growing It indicates the willingness to use
debit cards for purposes other
usages of than
Withwithdrawing
many online money
retailersatstill
Plastic ATM’s.
insisting on use of cards for high
value transactions, it is a
Money welcome change. It will allow e-
tailers to reach out to many areas
and many more customers in
coming years.
CHIRAG 54
 E-commerce enhances
goodwill of a company
and make its products
available to masses.
Brand Image
It gives high recognition
in very less time
through the web.
CHIRAG 55
 The cost of
delivering
information as well
Direct Savings as products to
customers through
e-commerce saves
a lot of money

CHIRAG 56
 Despite the growth of online
shopping being less than US and
Europe, it is growing at an
enormous speed in India.
Online There have been lot of new
shopping is entrants in the E-commerce
segment selling a wide variety of
the latest apparels, furniture and household
About
items. 60% of web users in India
Craze visit online retail sites. E-
commerce sites such as Flipkart,
Olx, Amazon have targeted the
CHIRAG Indian population to buy and sell
goods online. 57
 Everything is
digitized nowadays
whether it is data,
Digital voice, documents, etc.
Convergence
The digital revolution
has made it possible
for growth of E-
Commerce business
CHIRAG in India. 58
 Issues / Challenges
in implementing
E-Commerce

CHIRAG
PAGARI 59
 The cost of creating /
building E-commerce
application in-house
may be very high.
E-Commerce
Cost systems require
significant
investments in
hardware, software,
Staffing and
CHIRAG
Training. 60
 Security is an essential
part of any transaction
that takes place over the
internet.
Customer will lose faith
Security in e-business if security is
compromised
The information provided
by customer must not be
accessible to
CHIRAG unauthorised person. 61
 When customers look for
something for online
shopping, they eventually
get frustrated with tons of
Pushy popup and banner ads
screaming at them.
Sales This will not help, as this
will only make customers
switch to other websites.
CHIRAG 62
 Commerce shopping portals
turn down international orders
as most of them doesn’t have
the logistics, and other
systems to fulfil the order and
International this is a major challenge
Order facing the global E-
Duties
Commerce.and tariffs are other
problems as customer tend to
reject purchase due to high
cost.
CHIRAG 63
 Issues related to lack of supply
chain integration, high delivery
charges for products, delay in
delivery and lack of proper
For Example: - Despite the
courier services in some areas
Shipping emergence of severalfrustrated.
also make customer logistics
companies in India, deliveries to
Challenges smaller villages and towns is still
a challenge. Most logistic
companies have good
connectivity to Tier I, II and III
cities. However, they lack of
CHIRAG
connectivity to smaller towns and64
 Products which are not
satisfactory for the
customers tend to get
Product replaced or returned.
This is another major
Return, issue which leads into
Refund overall loss in revenue,
loss of shipment cost
and more than that all
CHIRAG loss of reputation 65
 Different countries have
different currency unit.
This hinders smoothness in E-
Currency Commerce shopping and
Challenges product delivery.
Issues related to credit card
limits and currency exchange
rate also complicate the E-
commerce process.
CHIRAG 66
 Every country has
different taxation
International norms.
Taxation
Incorporating them
into a E-commerce
website is huge
Challenge
CHIRAG 67
 Myths of
E-Commerce

CHIRAG
PAGARI 68
 It is often thought that setting up
an e-commerce business is quite
Setting up f easy.
business on the While practically anyone with a
web is easy and computer and internet access can
setup a website, creating an on-
inexpensive line transactional e-commerce
business is requires months of
back-office work and investment
CHIRAG in hardware and software.
69
 It is believed that setting up a website
Launching a will automatically attract the
customers.
website However setting up a website is not
enough. Promotion is key in getting
automatically potential customers to check out your
means that site.
There are millions of website on the
customers will web and just like in a traditional store,
The key totomarketing your websites is
you need market your site.
flock onto your networking and building relationships
with customers, other sites, trade
site organisations, on-line directories, and
CHIRAG social media sites so that people can
find you. 70
 Generating a lot of revenue
over the website is considered
to be a very easy task.
Making money However, online marketing
requires larger investment in
on the web is terms of time as well as capital
easy to increase the revenue.
Thus, money making over the
website is not an easy task.
CHIRAG 71
 The web allows companies to gain
access to unbelievable amount of
information about customers.
Companies use this information to gain
Privacy is not insight into product preferences and how
they can market
Customers their services.
are increasingly becoming
an important concerned about their on-line security
issue on the web and this is a constant topic for
governments and internet service
Online companies should therefore
provider.
protect their customer from on-line
fraud, identity theft and abuse of
CHIRAG information by other third parties.
72
 Building an on-line business is the
same as building a brick and mortar
company. You
You need to needa clear
build a strategy.
definition
of the company’s target markets, a
I don’t need a thorough understanding of your
strategy to sell customer’s needs,
Your website mustlikes and dislikes.
be appealing to
on-line the customers that you want to
attract.
An e-commerce website should be
created keeping customers in mind.
CHIRAG 73
 It is believed that growth of E-
Commerce will lead to decline of
Brick and Mortar stores but it is not
E-commerce true.
will cause brick The growth of e-commerce poses a
and mortar retail threat to those companies that
operate
However, under brick
while and
there mortar.
have been
stores to
significant growth in e-commerce,
disappear it does not mean that retail stores
are not running well as, some
products just need to be touched,
CHIRAG seen and tried. 74
 While the growth of
The greatest retail e-commerce is
opportunity for impressive, the biggest
e-commerce lies growth of on-line
in the retail transactions has been
sector recorded in business to
business selling.
CHIRAG 75
 Impact of
E-Commerce

CHIRAG
PAGARI 76
 Impact

Improvement in Transforming Redifining

digitalmarketing organizations organizations
CHIRAG 77
 E-Commerce in
India

CHIRAG
PAGARI 78
 Growing Localization
number of of internet
internet users content
Rising
Growth of middle class
mobile with
commerce disposable
income
CHIRAG 79
 Trends in
E-Commerce

CHIRAG
PAGARI 80
 Banking

Automat Tele Automat Electroni App

ed Teller Banking ed Bank c Fund Based
Machines
CHIRAG Branches Transfer Payments
81
 Tourism

Easy Discount Time Easy Mobile

Access s And Saving Comparis Tourism
To
CHIRAG Offers ons And
Informati Mobile 82
 Government

Complai Applicati Online Check Digital

nt Filing on For Booking And India
And Importan Of Track Program
CHIRAG
Lodging t Governm Status 83
 Retail

More Mobile Unify Remove Loyal Retail

Paymen Plays Online Friction Program Pure
t Bigger And From s Plays
Options
CHIRAG Role Offline Shoppin Replace Will
84
 Education

Digital App Learning Skill Field

Learning Based With India Trips,
Learning Tablets / Institute Industrial
CHIRAG Ipads Visits &85
 M-Commerce

CHIRAG
PAGARI 86
 M-Commerce stands for Mobile
Commerce.
It is the buying and selling of goods and
services through wireless technology- i.e.
handled devices such as smartphones.
M-Commerce is the rapidly growting trend
Meaning these days and people started buying
products from the apps.
Having a mobile app or mobile version of
your E-Commerce websites is crucial as
more and more people visit your website
from their smart phones now.
M-Commerce includes Mobile Wallet,
Mobile Ticketing, Mobile Vouchers or
CHIRAG Coupons, Mobile Banking, etc. 87
 Conveni Providin Ease In Travel
ence g Wider Banking And

Benefits Reach And

Financial
Tourism

Services

Social Time Easy Educatio

Network Efficient Connecti n
ing vity
CHIRAG 88
 Mobile Smartpho Ecommer
Trends of Payments ne Users ce On
Smartpho
M-Commerce ne

B2B Mobile
Mobile App
CHIRAG Commer Market 89