Industry Week on E commerce Presentation by Gurpreet Singh, Shital Kumar, Rohith Votarikari for OSM IIM Kashipur Session

1. E-Commerce
BY
Gurpreet
Rohith
Shital

2. Overview
▪ Definition
▪ Models
▪ Organizations
▪ Benefits
▪ Disadvantages
▪ Challenges

3. E-commerce
▪ E-commerce or electronic commerce, a subset
of ebusiness, is the purchasing, selling, and
exchanging of goods and services over computer
networks (such as the Internet) through which
transactions or terms of sale are performed
electronically
▪ Contrary to popular belief, ecommerce is not just on
the Web

4. Models Of E-Commerce
1.
2.
3.
4.
Business to Business (B2B)
Business to Consumer (B2C)
Consumer to Business (C2B)
Consumer to Consumer (C2c)

5. Business to Business
Companies doing business with each other such as
manufacturers selling to distributors and wholesalers
selling to retailers. Pricing is based on quantity of
order and is often negotiable

6. Business to Business - Example

7. Business to Consumer
Businesses selling to the general public typically
through catalogs utilizing shopping cart software

8. Business to Consumer - Example

9. Consumer to Business
• A consumer posts his project with a set budget
online and within hours companies review the
consumer's requirements and bid on the project
• The consumer reviews the bids and selects the
company that will complete the project

10. Consumer to Business - Example
1. Monster.com
2. Fotolia
3. Shutterstock

11. Consumer to Consumer
In customer to customer markets the business
facilitates an environment where customers can sell
these goods and or services to each other

12. Consumer to Consumer - Example

13. Organizations
• brick-and-mortar organizations
Old-economy organizations (corporations) that perform most of
their business off-line, selling physical products by means of
physical agents
• virtual (pure-play) organizations
Organizations that conduct their business activities solely online
• click-and-mortar (click-and-brick) organizations
Organizations that conduct some e-commerce activities, but do
their primary business in the physical world

14. Distribution Channels
• Pure-Click or Pure-play companies are those that
have launched a website without any previous
existence as a firm
• Bricks-and-Clicks companies are those existing
companies that have added an online site for ecommerce

15. Benefits of E-Commerce – To Producers
•Global Reach
•Cost Reduction
•Extended Hours
•Customization
•New Business Models
•Vendors’ Specialization
•Lower Communication Costs
•Efficient Procurement
•Improved Customer Relations
•Up-to-Date Company Material
•No City Business Permits and Fees

16. Benefits of E-Commerce – To Consumers
▪
▪
▪
▪
▪
▪
▪
▪
Ubiquity
More Products and Services
Customized Products and Services
Cheaper Products and Services
Instant Delivery
Information Availability
Participation in Auctions
Electronic Communities

17. Benefits of E-Commerce – To Society
▪ E-Commerce enables more individuals to work at home and to
do less travelling for shopping resulting in less traffic on the
roads and lower air pollution
▪ E-Commerce enables people in rural areas to enjoy products and
services that are not available to them
▪ EC facilitates delivery of public services such as health care
education and distribution of Government social services at a
reduced cost and or improved quality

18. Disadvantage of E-Commerce
1. Data Security
• Some peoples do not trust internet
• Credit card details can be stolen on the net,
unless the company is secure
2. Data Privacy
• Many consumers worry about sending
information on the net
• Identity theft

19. Disadvantage of E-Commerce
1. Some products do not sell well on internet
• You cannot see, touch, smell, try on items you
purchase from net
2. Some customers like to shop in the high street
• Color and shape look different in pictures

20. Operations Issues in Online Sales
▪ Inventory management
▪ Packaging orders for shipment
▪ Delivery
▪ Customer returns

23. Inventory aging is critical
Methods
▪ Poor infrastructure
▪ Sales On Return
▪ High Rentals
▪ back-to-back restoration
▪ Lack of technologies
▪ environment differences
 On an average they left 13-16% unsold inventories at end of year.
These unsold inventories furthermore give losses and add 3-5% toll
in terms of cost.

24. Packing Orders for Shipment
▪ Items are identified by bar codes or radio frequency ID (RFID)
▪ Warehouse workers put ordered items in crates
▪ Sorter sends each item to the correct, bar-coded box for the
customer who ordered it
▪ Packing slip is printed
▪ Boxes are packed, taped, weighed
▪ Boxes are put on trucks for shipment to customers

25. Delivery
▪ Objective: Deliver when promised, while minimizing
delivery costs
▪ Brick-and-mortar stores (like Sears) can ship items to
stores for customer pickup.
▪ Other online merchants ship via a package delivery service
(like UPS) or U.S. postal service
▪ Online merchants use package delivery services for most
shipments to other countries.
▪ Customers usually pay a standard shipping cost – different
for U. S. and other countries

26. Customer Returns
▪ Objective: minimize the cost of customer returns
and reduce "hassles" for customers
– 25% of Internet orders result in a customer return
– Problems in returning goods are the 2nd biggest reason
that consumers don't buy online
▪ Customer usually pays for return shipping
▪ Variety of approaches used to return goods: postal
service, contract package delivery service, brickand-mortar store

27. Customer Returns (2)
▪ Online retailer must ship a replacement item or
issue credit to customer
▪ Online retailer must process returned items
– Return defective items to supplier for a credit
– Good items can often be repackaged, priced, and resold.