E-COMMERCE

Meaning of E-commerce
 E-commerce (electronic commerce) is a term that refers to the process of buying and
selling products or services over the Internet.

 It’s a form of business transaction that allows individuals and businesses to conduct
commerce through an electronic platform, such as a website or mobile app.

 E-commerce has transformed the way people shop, as it eliminates the need for physical
visits to stores and allows customers to purchase goods from anywhere, at any time.

 It also enables businesses to reach a wider customer base, both domestically and
internationally, by making their products or services available online.
Various Classification Of E-Commerce Business

1. Business to Business (B2B): B2B is an e-commerce business between one business firm
to another business such as a manufacturer and a wholesaler or between a wholesaler and a
retailer. E.g.: Amazon, Alibaba, IndiaMart, etc.

2. Business to Consumer (B2C): B2C is e-commerce businesses between a business firm

and a consumer or customer such as between a manufacturer and consumer or retailer and
consumer. E.g.: Amazon, eBay, Myntra, Nykaa, Uber, etc.
 Cont..
3. Consumer to Business (C2B): e-commerce businesses in which individual customers offer
to sell products and services to companies who are prepared to purchase them. Such services
include writing reviews for personal blogs or websites, sharing posts on social media, and
creating photos and videos. This business model differs from the traditional B2C model.
E.g.: Amazon, Influencers, etc.

4. Consumer to Consumer (C2C): C2C is an e-commerce business in which individual

customers offer to sell products and services to other individuals who are prepared to
purchase them. E.g.: OLX, Quickr, Amazon Marketplace, eBay, Etsy, etc.
 Nature/Characteristics of E-commerce
1. Online presence
2. Electronic Transactions
3. Wide Product Range
4. Personalization/Customization
5. Real-time transactions
6. Increased efficiency
7. Competitive Pricing
8. Global Reach
9. Convenience
 Scope of E-commerce

1. Omnichannel presence and support (24/7 services through chatbots)

2. Customer experience (rating and feedback)
3. High levels of personalization
4. Mobile-friendliness
5. Image recognition turned product recognition
Models of E-commerce Laws
There are two models of E-Commerce Laws as defined in the Indian FDI Policy:

1. Marketplace Model: E-commerce business registration on a digital and electronic

network to serve as a facilitator between buyer and seller is known as the marketplace
based model of e-commerce. The marketplace charges sellers a commission for the
service it renders. The largest online marketplaces now operating in the nation are
Naaptol and Shopclues.

2. Inventory Model: A business that engages in online commerce using an inventory-

based model possessing a supply of products and services that are sold directly to
customers. Likewise, the seller is an online retailer that stocks it straight from brands
and sellers. One such example is Myntra.
Models of E-commerce Laws in India under statutes
and compliances
1. Laws Governing E-Commerce
a) Information Technology Act, 2000 ("IT Act") – Section 43A (Compensation for failure to
protect data), Section 84A (Modes or methods for encryption), Information Technology
(Reasonable security practices and procedures and sensitive personal data or information)
Rules, 2011 and Information Technology (Guidelines for Intermediaries and Digital Media
Ethics Code) Rules, 2021.
b) Consumer Protection Act, 2019 and Consumer Protection (E-Commerce) Rules, 2020
The E-Commerce Rules provide a framework to regulate the marketing, sale and purchase of
goods and services online.
Cont..
The E-Commerce Rules apply to:
i. all goods and services (including digital products) transacted over an
electronic/digital network;
ii. all models of e-commerce, including marketplace and inventory models;
iii. all e-commerce retail (including multi-brand and single-brand retail trading); and
iv. all forms of unfair trade practices across all e-commerce models.
Cont..
2. Sectorial and Regulatory Compliance and other statutes
a) Foreign Exchange Management (Non - Debt Instruments) Rules, 2019
b) Legal Metrology Act, 2009
c) Indian Contract Act, 1872
d) Sale of Goods Act, 1930
e) Competition Act, 2002
Topics Covered

- UNCITRAL Model Law on E-Commerce 1996 (history and fundamental principles)