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Impact, Domains/Models - E-Commerce or Electronic Commerce | 11th Commerce : Chapter 16 : Emerging Service Business in India

Chapter: 11th Commerce : Chapter 16 : Emerging Service Business in India

E-Commerce or Electronic Commerce

E - Commerce or Electronic Commerce is the buying and selling of goods and services through electronic networks like internet.



E - Commerce or Electronic Commerce is the buying and selling of goods and services through electronic networks like internet. E – Business is a broader term which includes internal and external transaction of an organization across the  internet. The internal transactions include finance, production, operations etc., while external transactions include customer – service, sales, marketing and business to business transactions. The term e – commerce denotes mainly external transactions, According  to  Deloitte Association report, seventy percent of revenue in e – Commerce in India in the year 2015 was only from online travel followed by online retail which  accounted  for  20  percent of revenue. The major segments in the sphere of e – commerce includes Health, Education, Real estate, Financial services, Digital downloads, Online classified advertisement etc.,


General Impact of E-commerce


About 40 million people of India is said to be employed in E – Commerce sector either directly or indirectly

1.        E – commerce generates great opportunities for entrepreneurship in the sphere of online retailing, online service digital commerce and so on

2.        E – commerce companies have invested heavily in supply chain area, warehousing, and delivery points

3.        With a rise in e - commerce transactions sale of financial, physical and data security system related products has seen tremendous growth in India

4.        E – commerce promotes innovative practices of carrying on business. Social media and social media networks have opened new ways of transacting with the customers through e - commerce

5.        Thanks to wider broad band connectivity many business concerns are switching over to e – commerce mode of transacting business

6.        More contemporary customers are buying through Flipkart and Amazon

7.        Direct marketing companies are using internet to promote products  and render efficient customer service


Impact of E-Commerce on vendors


1.        Vendors could have a wider access to customers across the globe

2.        This helps minimize the cost ofoperating business due to direct distribution of goods to end consumers thanks to minimum invention of intermediaries

3.        Vender could interact with multiple buyers and sellers

4.        Business concerns could orient marketing efforts towards targeted customers.


Impact of E-commerce on buyers


1.        Buyers could have a global access to information about variety of products and services available in the market

2.        They could buy the products/services round the clock from anywhere in world

3.        The prices of products bought through e – commerce tend to be relatively lower than those purchased physically in the conventional shops due to offers, discount etc.

4.        Electronic and software products could be downloaded immediately after purchase through e – commerce mode

5.        Customers could participate in e auction which is one of the facets of e-commerce and get contract in a free and fair manner

6.        Individuals could sell their used products through e – commerce mode with relative ease.

7.        Buyers can bargain and negotiate better terms and conditions with respect to buying knowledge products.


E-Commerce Domains/Models


1. Business to Customers (B 2 C)

This is fastest growing segment in e – commerce spare. Under this model, business concern sells directly to consumers


2. Business to Business (B 2 B)

Under the model, business concerns transact with one another through internet. For instance, Snapdeal, Filipkart, Alibaba, Indamart, Trade India. Com etc.


3. Consumer to Consumer ( C 2 C)

Under this model, customers sell directly to other customers through online classified advertisement orthrough auction orthrough mobile or through market places. Example. Indian ventures in C 2 C are Kraftly App (buying and selling anythings) which deals in hand made products of a wide range. Onceagainstore. Com is a website that buys pre – owned women’s fashion products. Other players are quirkr,Olx, ebay etc..


4. Customer to Business ( C 2 B)

This model is reverse to auction model. Products like automobile, electronic items furniture and smilar  product  are  traded  by customer through websites. Example Naukri.com, and Monster.com are examples of Indian companies operating in this domain


5. Business to Government ( B 2 G)

This model  envisages  selling  products and services by business consumer to Government organization . For instance TCS operates the passport application process for the Government of India as part off - line process


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11th Commerce : Chapter 16 : Emerging Service Business in India : E-Commerce or Electronic Commerce | Impact, Domains/Models

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