E commerce, benefits, drivers,myths and realities

1. E-COMMERCE
Presented by : Anubha
1

2. CONTENT
1. Introduction.
2. What is E-commerce?
3. Advantages/benefits of e-commerce
4. Disadvantages of e-commerce.
5. e-commerce in india(video) CENSUS 2012
6. Drivers of e-commerce.(info )
7. Myths related to e-commerce.
8. Realities related to e-commerce.
9. Consumer research: good customer service trumps price in purchasing
decisions.
10. Myntra: Offline store for private brands.
11. Conclusion.
12. Reference.
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3. WHAT IS -COMMERCE?
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4. • “It consist of BUYING AND SELLING GOODS AND SERVICES over an
ELECTRONIC SYSTEMS Such as the internet and other computer
networks.”
• “E-commerce is the purchasing, selling and exchanging goods and
services over computer networks (internet) through which
TRANSACTION OR TERMS OF SALE ARE PERFORMED
ELECTRONICALLY.
• Modern electronic commerce uses the WORLD WIDE WEB although it
may also use other technologies such as E-MAIL.
http://www.slideshare.net/munishsingla71/e-commerce-ppt-10713485 4

5. /benefits
• organization can expand their market to
national and international markets with
minimum capital investment.
• helps organization to reduce the cost by
digitizing the information.
• improves the brand image of the
company.
• helps organization to provide better
customer services
• helps to simplify the business processes
and make them faster and efficient.
5

6. http://www.tutorialspoint.com/e_commerce/e_commerce_advantages.html 6

7. • 24x7 support.
• provides user more options and
quicker delivery of products.
• provides user more options to
compare and select the cheaper and
better option.
• A customer can put review
comments about a product and can
see what others are buying or see
the review comments of other
customers before making a final buy.
• increases competition among the
organizations and as result
organizations provides substantial
discounts to customers.
7

8. • Customers need not to travel to
shop a product thus less traffic on
road and low air pollution.
• E-Commerce helps reducing cost
of products so less affluent
people can also afford the
products.
• E-Commerce has enabled access
to services and products to rural
areas as well which are otherwise
not available to them.
• E-Commerce helps government to
deliver public services like health
care, education, social services at
reduced cost 8

9. IMAGE SOURCE: 1) http://www.businessnewsdaily.com/43-customer-service-trumps-pricing.html
2) http://technode.com/2013/04/24/chinas-consumer-protection-law-amended-for-online-shopping/
DISADVANTAGES
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10. DISADVANTAGES TO
CUSTOMERS
 Delay in receiving goods.
 Chances of product loss.
 Delivery to wrong address.
 Quality .
 Cannot touch or feel the
product until delivered.
 Hidden costs.
 Extra handling cost in case of
international purchase.
Image source: http://e-commerce2012spring.blogspot.in/2012/03/advantages-and-disadvantages-of-e.html 10

11. (Contd.)  Privacy and security
 Be sure to check for sites certificates of security
before making instant transactions online.
 Need access to internet.
 Basic requirement.
 Internet access not free.
 Chance of information theft over an unsecure site
in case of free Wi-Fi usage.
Lack of personal interaction.
 Chances of queries while using any e-commerce
site.
 Lots of rules and regulations to read ,may be
confusing when come to legalities.
 No one to talk to face to face to resolve queries.
Image source: https://e-commerce202.wikispaces.com/Advantages+and+Disadvantages+of+Ecommerce 11

12. DISADVANTAGES TO BUSINESS
Security issues
 Hackers break every firewall to get the information they want.
 Misuse the hacked information.
 Secure network is required.
Extra expenses & expertise for e-commerce infrastructure.
 Need technician & warehouse staff.
 Hire professional to tie up loose ends.
 Payment of their wages.
Credit card issues.
 Dispute about billings.
 Payment refunded back to consumer.
 Heavy losses.
Image source: http://cyberalert.gr/feelsafe/
12

13. (Contd.)
Constant upkeep.
 Use of additional overhead to keep data bases and
applications running.
 Must be ready to make changes .
 System must be kept up-to-date.
Sufficient internet service.
 Be sure that your area can handle the
telecommunication bandwidth you will need to run
effectively.
Delay in delivery.
 Product loss or damage in transit.
 Delivery to wrong address.
 Delay will dissatisfy consumer.
Image source: http://www.thisweknow.org/tag/ecommerce-business-trends
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14. E-COMMERCE
CENSUS 2012 INDIA
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15. 15

16. image key drivers 16

17. 17

18. 18

19. Political pressure
1. Government Regulations: Every country have its own rules and
regulations but now a days almost every country have well
defined cyber laws which provides a right environment for the e
commerce.
2. Reductions in Government subsidies: Now world is very open,
some countries provides lot of rebate in tax and in other forms to
do business. But some other countries reducing the soaps for
business. E-commerce provides the opportunity to take these
challenges.
3. Rapid Political Changes: Whenever government changes n any
country there are some changes in guidelines and polices towards
the business. It is also work as driving force for the e-commerce
19

20. Market and Economic Pressures
1. Strong competition: Now competitions the part of any business and companies are
implementing new techniques every day to bear their competitors. E-Commerce which
is adopted by the companies.
2. Global Economy: world becomes a global village.There is huge gap between the
growth rate of developed and developing nation, so more and more developed nations
are investing in every part of world. E-Commerce is the need of such a scenario.
3. Extremely Low Labour Cost in Some Countries:
business that companies are having manufacturing units in one are of the world and the
same products is marketed in other part of the world. some medium is required to
maintain it and e commerce is providing such medium.
4. Frequent Changes in Market demands
5. Increase Expectation of Consumers:
The expectation of consumers about quality and services are very high, so it works like
driving force for e-commerce.
6. Awareness Among Consumers:
Internet, print media and electronic media keep update the consumers about new
products and their rates
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21. Technological pressures
Page speed –
each additional second to load has a direct impact on conversion rate.
Overall flow from homepage to checkout –
do some A/B testing to see how buttons and different elements affect your
conversion rate. .
Product assortment –
offer what customers want
Payment methods –
your payment methods have a smooth checkout flow
have all the payment methods you customers are likely to use.
Design and Content -
good design and a good content likely to increase conversions. products have
clear pictures, a good description
Growth of mobile commerce
Internet penetration and usage.
21

22. Social drivers
• User experience is different on social commerce.
• The key differentiator is user experience. The successful ones use the tools of the social
platform versus replicating the features of their web stores. A retailer investing in a social
commerce presence should start with a clean slate, designing a fresh experience
• . Social marketplaces are a good starting point. . Payment and Moonfruit offer
Facebook-enabled marketplaces. Each offers a low starting cost. Each say over 150,000
retailers have signed up — claiming to add about 1,000 retailers every week
• Growing living standards of the people.
• Internet and 3G penetration
• availability of much wider range od products and
• prices for different section of society
• Busy lifestyle and no time for online shopping
22

23. 23

24. MYTHS
REALITIESImage source :http://thecoders.vn/latest-trends-and-add-ons-in-e-commerce/ 24

25. Set up is easy and expensive.
Build it, they will come.
Easy money.
Privacy not an important issue.
Technology is a vital element.
No need of strategy.
25

26. IMAGE SOURCE: http://www.ecbilla.com/press-release/
Customer service is not important.
Bling Bling makes a website better.
Its what’s in front that counts.
Disappear brick and mortar retail
stores.
Great opportunity in retail sector.
26

27. Realities related to e-
commerce
Experience is required.
 Proper understanding of:
I. Type of e-commerce you are
starting.
II. Fundamentals on e-commerce i.e.
Electronic payment, Shopping
carts, Products catalogs,
Networking, Social proof,
Marketing and advertising.
27

28. (Contd.) Substantial content is
essential.
Clever name & high
resolution picture are not
suffice.
Solid substance is needed.
a. Provision to answer their
their question and solve
their problems
IMAGE SOURCE: http://indianexpress.com/article/business/business-others/e-commerce-firms-face-new-
challenge-as-losses-force-reality-check/
28

29. (Contd.)
Business plans are essential
 It’s a blueprint and a first step in
creating e-comm. b/s.
It includes:
1) The overall vision and mission of
the company.
2) Biographies of essential
personnel.
3) Market research.
4) Financial requirements and
consideration.
5) Legal and regulatory
requirements for your business.
IMAGE SOURCE: 1) http://info.soapwarehouse.biz/blog-0/december-is-national-business-plan-month
2) http://www.ezone.com.np/services/ecommerce-implementation
29

30. (Contd.)
E-commerce products are
not alike.
• Though functionality of product
catalogs, shopping cart, and
payment platform, follow
certain fundamental aspect, No
two are truly same.
• Complexity directly impact
shopping experience.
IMAGE SOURCE: http://www.indiadatasolutions.com/ 30

31. (Contd.)Customer service is mandatory.
 Consumer research shows that price isn’t very
important.
 E-commerce merchant comes in the form :
1. Active social media presence.
2. Fast response to customer queries.
3. Easy-to-use website and shopping cart.
4. Means for customer to rate
products and leave feedback.
IMAGE SOURCE: 1) http://www.vcominfotech.com/ecommerce_customer_service.php
2) https://www.skubana.com/e-commerce-trends/this-week-in-e-commerce-get-the-latest-news-and-insights/
31

32. (contd.)
IMAGE SOURCE: https://www.linkedin.com/pulse/20141101140332-260099520-hard-work-and-success
(contd.)
E-commerce b/s involves some pre-requisites and great amount of
HARDWORK.
Customer satisfaction at the top of the list.
Series of challenges to be met-
a. Mobile friendly website.
b. Social media strategy.
c. ‘using coupons and promo code’ facilities
d. Reliable and protected payment mode.
Payheedtotheabovechallengesandworkhardonittotastesuccess.
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33. GOOD CUSTOMER SERVICE TRUMPS
PRICE IN PURCHASING DECISIONS
In spite of an economic
reality that would seem
indicate that price is the
most important factor in
a customer’s purchasing
decision, a new survey by
American Express
suggests that it’s not.
Image source: http://www.businessnewsdaily.com/43-customer-service-trumps-pricing.html
33

34. Itisthesurveyof1,000consumersin12countries,includingtheU.S.,conducted
by the American Express Global Customer Service Barometer. Acc. to the
survey:
 61percentofconsumerssaidcustomerserviceismoreimportanttothem
andarewillingtopayevenmoreforgoodcustomerservice--9percentmore-
-onaverage.
 27 percent said that companies have not made a move to improve
customerservice.
 28percentsaidcompaniesarepayinglessattentiontocustomerservice.
34

35. The results of the survey are not a complete surprise to
those who follow customer service trends. Eric
Fraterman, owner of Toronto-based Customer
Focus Consulting, told Business News Daily that
other recent research confirms the American Express
survey findings.
“In this economy, people are especially short on time,”
Fraterman said. “Good customer service means
less time, effort, money and stress spent by a
consumer.”
35

36. “This is the foundation that the rest of the house is
built on ,” Fraterman.
Fraterman also found even more interesting that
customer are more willing to spread the word about a
good customer service than bad.
36

37. Accordingtoasurvey conductedbyFraterman
 75 percent of respondents said they are very likely to share a positive
purchasingexperience.
 59percentsaidtheyareverylikelytospreadthewordaboutnegative
experiences.
 48percentofrespondentssaidtheywillturntoonlinereviewstomakea
purchasingdecision.
 Somerespondentssaidtheytakenegativereviewsmoreseriouslythan
positiveonesontheInternet.
37

38. American
swan
Amazon
India
Bata shoes Bro4u Biba
apparels
Flipkart HealthKart Infibeam Instamojo Interiors
info
IRCTC Jabong MobiKwik Myntra Ola cabs
Paytm Snapdeal Shopclues Voonik Zomato
Some e –commerce companies in India.
38

39. 39

40. 40

41. Flipkart-owned Myntra will open offline stores in the next
three months at a time its annualized gross merchandise
value, or GMV run rate, has hit $1 billion, post discounts,
its CEO Ananth Narayanan said on Monday.
GMV, is overall sales generated on an online platform,
not factoring in discounts and returns, out of which e-
tailors take home any-where between 5% and 20%
depending on the category. Myntra plans to start physical
stores by selling its own 3 BRANDS — Roadster, All About
You and HRX — in an attempt to bolster its brand play
across channels.
41

42. The online retailer, which recently acquired smaller
rival Jabong for $70 million to further strengthen
its number one position in the fashion and lifestyle
e-commerce category, said these brick-and-mortar
stores would act as experience zones rather than a
platform meant to prop up its sales.
Global e-commerce giant Amazon recently
opened a brick-and-mortar store in New York. In
India, players like furniture e-tailor Pepperfry and
eyewear seller Lenskart have explored the offline
route as well.
42

43. “We are still figuring out what kind of sales we
want to do from these experience stores. Right
now, we’re talking to traditional retailers to sell
these three brands via their offline channels,”
Narayanan told TOI
Image source: http://www.adweek.com/news/technology/why-new-crop-e-commerce-brands-should-really-
scare-traditional-retailers-170170
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44. BRICK- AND- MORTAR EXPERIENCE
44

45. CONCLUSION
E-commerce is a growing channel through which businesses have the potential
to generate money across the globe. While many people may create website
because they want to get rich quickly, (and there is no shortage of these
schemes on the internet), it takes time and other resources to create a
website that adds value to customers and the entrepreneur. For one website
that is successful, there are many more that have failed because the
entrepreneurshavenottakenthetimetocreateaholistice-commercebusiness
model. Innovative businesses should take advantage of the growing knowledge
andeaseofuseoftheWebtocreatewebsitesfortheirbusinesses. This,coupled
with operating systems that support customers’ expectations, will create more
loyalcustomersforWebsiteandbrand.
45

46. REFERENCES
Text references:
1. e-comm. disadvantages: http://www.enkivillage.com/e-commerce-advantages-and-
disadvantages.html
2. By Chipo Mapungwana.(2012)myths of e-commerce (
https://crazyaboutyourbrand.wordpress.com/2012/10/17/12-myths-of-e-commerce/ )
3. By ELLI BISHOP (Small Business) realities of e-commerce
(https://www.aabacosmallbusiness.com/advisor/myths-realities-starting-successful-
ecommerce-business-012644185.html )
4. By Jeanette Mulvey, Business News Daily Managing Editor (2010) consumer research
(http://www.businessnewsdaily.com/43-customer-service-trumps-pricing.html )
5. Times of India (2016) Myntra plans for offline stores
6. http://hubpages.com/business/IMPORTANCE-AND-USES-OF-E-COMMERCE
7. http://www.tutorialspoint.com/e_commerce/e_commerce_advantages.html
8. https://en.wikipedia.org/wiki/E-commerce_in_India
9. https://en.wikipedia.org/wiki/E-commerce
10. http://www.slideshare.net/munishsingla71/e-commerce-ppt-10713485
46

47. Image reference:
1. http://www.businessnewsdaily.com/43-customer-service-trumps-pricing.html
2. http://technode.com/2013/04/24/chinas-consumer-protection-law-amended-for-online-shopping/
3. http://e-commerce2012spring.blogspot.in/2012/03/advantages-and-disadvantages-of-e.html
4. https://e-commerce202.wikispaces.com/Advantages+and+Disadvantages+of+Ecommerce
http://cyberalert.gr/feelsafe/
5. http://www.thisweknow.org/tag/ecommerce-business-trends
6. http://thecoders.vn/latest-trends-and-add-ons-in-e-commerce/
7. http://indianexpress.com/article/business/business-others/e-commerce-firms-face-new-challenge-as-losses-force-
reality-check/
http://info.soapwarehouse.biz/blog-0/december-is-national-business-plan-month
http://www.ezone.com.np/services/ecommerce-implementation
http://www.vcominfotech.com/ecommerce_customer_service.php
8. https://www.skubana.com/e-commerce-trends/this-week-in-e-commerce-get-the-latest-news-and-insights/
9. https://www.linkedin.com/pulse/20141101140332-260099520-hard-work-and-success
10. https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj4v9u
AteTOAhUHMo8KHeJSAlwQjRwIBw&url=http%3A%2F%2Fwww.slideshare.net%2FBeyond-Retail%2Fon-the-
history-of-ecommerce-and-how-it-got-its-groove-back&psig=AFQjCNEUIXiCDK6GHX_GAbmc78-
SnfcneQ&ust=1472484131756545
11. https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj--
L7BteTOAhWLqY8KHWQHDRMQjRwIBw&url=http%3A%2F%2Fwww.specommerce.com%2Fknowledge-
centre%2Ffactsheets%2F&psig=AFQjCNGRYpsVYCc0-Bk41QfGqbapryKhaA&ust=1472484266684455 -------image
key drivers
47

48. video reference
1. https://youtu.be/E0nBHwmT9Zk
2. https://youtu.be/1EpXq8qrYec?list=PLpmfCxNlPvp1yr6dm_yUhcqG79EKV1mgc
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