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Ecommerce Advantage #1: Low Financial Cost
One of the ecommerce benefits is that it has a lower startup cost. Physical retail stores have to pay up to thousands of dollars to rent one of their store locations. They also have several upfront costs such as store signs, store design, buying inventory, sales equipment, and more. And let’s not forget, the store owner also has to hire staff to wo...
Ecommerce Advantage#2: 24/7 Potential Income
Another advantage of ecommerce is that online stores are always open for business. With Facebook ads, you can attract someone at 11 p.m. or 4 a.m. in any part of the world. In contrast, Most physical location stores are operational between 9 a.m. to 9 p.m., giving you a competitive edge. By being available at all hours, you can attract people who w...
Ecommerce Advantage #4: Easy to Showcase Bestsellers
Ecommerce benefits like displaying best-sellers make it easier to show off products to your customers. While you can design a brick and mortar store to sway people to buy certain products, compared to going through different aisles and shelves, it’s easier for a customer to find the best-sellers in an online store. The reason why you want customers...
Ecommerce Advantage #6: Affordable Employees
One of the benefits of ecommerce is that hiring employees is affordable and, as mentioned before, you can hire from anywhere in the world. You can choose to outsource work to virtual assistantsin countries where the cost of living is much lower. You’ll need fewer employees in an online business than in a retail location. A huge advantage of online ...
Ecommerce Advantage #7: Easier to Encourage Impulse Buy
Another ecommerce benefit is that you can capitalize on impulse buying as online shoppers are more inclined to partake in this. If you have attractive product photography, with vibrant color or human emotion, you can create ads that drive impulse buys. You can also execute a range of scarcity tacticssuch as countdown timers or showcasing limited qu...
Ecommerce Advantage #8: Easy to Retarget Or Remarket to Customer
It’s easy to create retargeting adsto reach out to customers in your area when running an online business, making it one of the most profitable ecommerce benefits. You can create a Facebook Pixelto display ads to your potential customers in their Facebook feeds. You can use the Shoelace Shopify appto retarget the people who visit your store but don...
Ecommerce Advantage #10: Gain Access to Customer Data Easily
One of the best ecommerce advantages is that you can easily gain access to data for analysison your customer. Most people feel uncomfortable giving away email addresses or postal codes to physical retailers. In ecommerce, you can get your customer’s name, mailing address, email address, and phone number. That means you have at least three different...
Ecommerce Advantage #11: Able to Process A High Number of Orders
If you choose to dropship, you can process a high number of orders with ease. As your business continues to grow, you might choose to hire employees to help with order processing. Also, with dropshipping, you don’t need to physically have the product to sell it to a customer. Therefore you do not have to worry about stock control like physical stor...
Ecommerce Advantage #12: Can Scale Business Quickly
One of the benefits of ecommerce is that it’s easy to scale the business. You can increase your ad budget when people are clicking and buying without worrying too much about keeping up with the demand, especially if you dropship. With brick and mortar stores, it can be hard to grow product lines or add more cashiers due to finite space. You’ll need...

What are ecommerce disadvantages?

Below are a few ecommerce disadvantages that merchants typically experience, which do not apply to a physical store. The worst of the ecommerce disadvantages is when no one can buy from your store if your site crashes. That’s why it’s important to ensure your website is hosted on the right platform.

What are the benefits of ecommerce?

One of the ecommerce benefits is that it has a lower startup cost. Physical retail stores have to pay up to thousands of dollars to rent one of their store locations. They also have several upfront costs such as store signs, store design, buying inventory, sales equipment, and more.

How has e-commerce changed the world?

As noted by (Jain et al., 2021), increased communication and information gathering through digital platforms have further improved the existing trade patterns. Today, with increased access and ease of use, E-Commerce has become even more common regardless of the potential-barriers and differences. ...

How big is eCommerce in 2021?

According to statistics, worldwide e-retail sales are expected to grow to $4.8 trillion by 2021. In fact, ecommerce is growing so quickly that it’s expected to serve a staggering 2.14 billion people. Of course, there are many more benefits of ecommerce, which we’ll discuss below.

PONDICHERRY UNIVERSITY

(A Central University)

DIRECTORATE OF DISTANCE EDUCATION

DDE WHERE INNOVATION IS A WAY OF LIFE

E- Commerce

(Paper Code:BCOM2005)

Bachelor of Commerce - B.Com

II Year

B.Com ² 2nd Year Paper Code: BCOM 2005

PAPER X - E ± COMMERCE

UNIT -I

UNIT ±II

UNIT ±III

UNIT ± IV

UNIT ±V

UNIT ±VI

UNIT ±VII

UNIT ±VIII

TEXT BOOK:

Joseph P. T.

REFERENCE:

Jaiswal S.

Mohammad Mahmoudi Maymand

Murthy C.S.V.

UNIT ± I

E-Commerce

LEARNING OJECTIVES

1.1 Introduction

1.2 E-Commerce: Meaning

1.2.1 Examples of E-Commerce

1.3 E-Commerce Definitions

1. International Journal of Electronic Commerce

2. 3. 4. 5. 6. 7. 6

1.4 E-Commerce ± Features

1.4.1 Ubiquity:

1.4.2 Global reach:

1.4.3 Universal standards:

1.4.4 Richness:

1.4.5 Interactivity:

1.4.6 Personalization:

1.4.7 Information density:

1.4.8 Social technology:

1.4.9 User-Generated Content:

8 Differences between Traditional Commerce and E-Commerce

Point of

Difference

E-commerce Traditional Commerce

1.5 Functions of E-Commerce

a) Search Engine Optimization (SEO) 10 b) Selecting New Products c) Merchandising New Productions d) Customer Service 11 e) Monitoring your KPIs / Analytics

1.6 Scope of E-Commerce

a) Cash on delivery (COD) 12 b) Delivering experiences c) Growing the base d) Growing opportunities e) Online Travel Segment f) E-Tailing 13 g) Online Financial Services h) Classifieds i) Other online Services

1.7 Benefits and limitations of E-Commerce

1.7.1 Benefits of E-Commerce

14 15

1.7.2 Limitations of E-Commerce

16 17

1.8 The Internet and India

1.8.1 Educational Research Network (ERNET)

1.8.2 Gateway Internet Access Service (GIAS)

1.8.3 Timeline Chart

and 19 20 21

1.9 E-commerce opportunities and challenges for industries

1.9.1 Opportunities:

a) Global Trade: b) Virtual Businesses: 22
c) Lower search costs: d) Round the clock: e) Greater Economic Efficiency

1.9.2 Challenges:

a) Indian customers return much of the merchandise they purchase online. 23
b) Cash on delivery is the preferred payment mode. c) Payment gateways have a high failure rate. d) Internet penetration is low. e) Feature phones still rule the roost. f) Postal addresses are not standardized. g) Logistics is a problem in thousands of Indian towns. 24
h) Overfunded competitors are driving up cost of customer acquisition.

1.10 Future Scope and Growth

a) Macro-economic factors i) Personal Disposable Income will continue to rise ii) Number of active Internet users in India is poised to rise iii) Demand for debit and credit cards will see a rise 25
b) Segment Specific factors

1.11 Summary

1.12 Key Terms

1. E-Commerce:

2. E-Business:

3. Internet

Educational Research Network (ERNET):

Gateway Internet Access Service (GIAS):

E-tailing

1.13 Self Evaluation Questions

UNIT ± II

Business Models for E-commerce

LEARNING OBJECTIVES

After studying this unit, you will be able to:

2.1 Introduction

2.2 Meaning and Definition of Portal

Definition:

Portalgateway

general portals niche portals web portal portal space 29

2.3 Birth or Portal

old media

2.4 Classification

horizontalvertical. horizontal portal vertical portal

2.4.3 Personal Portal:

2.4.4 Business Portal:

2.4.5 Government Web Portal:

2.4.6 Cultural portal:

2.4.7 Corporate web portals:

2.4.8 Stock portal:

2.4.9 Search portals:

2.4.10 Tender portals:

2.4.11 Domain-specific portals:

2.5 Meaning and Features of Business model

2.5.1 Meaning of Business Model

B 33

2.5.2 Features of Business model

i. E-Business Concept e-business concept ii. Value Proposition value proposition 34
iii. Sources of Revenue revenue model 9 9 9

Dot-Com

iv. Activities, Resources and Capabilities mission intellectual property 35
a. Activities b. Resources c. Capacity capacity idle capacity 36

2.6 E-Business Models

2.6.1 Business - to - Business (B2B)

Models in B2B:

Supplier Centric Model

Buyer centric Model

Intermediary ± centric model

Advantages of B2B

1. Instant purchases

2. Increased revenue

4. Closer business relationships

The Disadvantages of a B2B

1. Limited Market

2. Long Purchase Decision Time

3. Inverted Power Structure

4. Sales Process

2.6.2 Business - to - Consumer (B2C)

Diagrammatic representation of B2C Model

Advantages of E-Commerce for B2C Businesses

From the consumer side, benefits include:

From the business side, benefits include:

Disadvantage of E-Commerce for B2C Businesses

Disadvantages for the consumer

2.6.3 Consumer - to - Consumer (C2C)

Advantages of C2C E-Commerce

Disadvantages of C2C E-Commerce

2.6.4 Consumer - to - Business (C2B)

C2BCustomer to Business

General features of C2B

± Direct action.

± Collaborative consumption.

± Detailed segmentation.

± Interaction.

± Reciprocity.

± Bi-directionality.

Advantages and Disadvantages of C2B

C2B Advantages

2.6.5 Brokerage Model

Brokerage models include:

Marketplace Exchange

Business Trading Community

Buy/Sell Fulfilment

Demand Collection System

Auction Broker

Transaction Broker

Bounty Broker

Distributor

Search Agent

Virtual Mall

2.6.6 Value chain Model

2.6.7 Advertising Model

Other E-Business Models

2.6.8 Business-to-Government (B-to-G):

E-procurement services

A virtual workplace

Rental of on-line applications and databases

2.6.9 Business-to-Peer Networks (B-to-P):

2.6.10 Consumer-to-Government (C-to-G):

2.6.11 Consumer-to-Peer Networks (C-to-P):

2.6.12 Government-to-Business (G-to-B):

www.dti. 51

2.6.13 Government-to-Consumer (G-to-C):

2.6.14 Government-to-Government (G-to-G):

2.6.15 Peer±to-Peer Network (P-to-P):

2.6.16 Peer Network-to-Consumer (P-to-C):

2.6.17 Peer Network-to-Business (P-to-B)

M-commerce

2.7 Summary

2.8 Key Terms

Portal

Portal space

Business model

E-Business model

B2B B2C C2C 53
C2B

P-to-C:

Mobile commerce

A virtual workplace:

Virtual Mall

2.9 Self Assessment Questions

UNIT ± III

E-Marketing

Learning Objectives

3.1 Introduction

3.2 E-Marketing Definition

3.3 Objectives of E-Marketing

1. Sell

2. Serve

3. Speak

4. Save

5. Sizzle

Specific

Measureable

Action-orientedRealistic

Time Bound

3.4 Importance of E-Marketing

Specific benefits of E-Marketing include:

Global reach

Lower cost

Measurable results

Round the Clock

Personalization

One-to-one marketing

Better conversion rate

Instant information

Savings

Scope for expansion

Feedback ±

3. 5 Disadvantages of E-Marketing

1. Complex websites

2. Purchase without inspection

3Payment method

4. Lack of confidence

5. Cash on Delivery (CoD)

3.6 The e-Marketing Mix

3.6.1 Product

The core product

The actual product

The augmented product

Online options for the core product

Online options for the augmented product

3.6.2 Price

Price

Product,

(PlacePromote 61
62

3.6.3 Place

Place of purchase

Seller-controlled sites

Navigation

Localisation:

New channel structures:

3.6.4 Promotion

The Extended Marketing Mix

3.6.5 People

3.6.6 Process

3.6.7 Physical evidence

3.7Traditional Marketing Vs. E-Marketing

3.7.1 Traditional marketing

Examples of traditional Marketing:

3.7.2 E-Marketing

Examples of Internet Marketing

3.7.3 Comparison of Traditional Marketing Vs. E-Markeitng

Product promotion

Direct saving

Customer Service

Brand Image

Advertising

Customization:

Order making process

Intermediaries

Customer Value

3.8 Impact of E-Commerce on Market

The following discussion would highlight various impacts of E-Commerce on market 68

E-Banking

Telebanking:

Internet Banking:

ATM:

Debit Card:

Credit Card:

E-Ticketing

E-Advertising

E-Trading

71
Computerization of Mail Transmission and Processing

E-Post

3.9 MARKETING ISSUES ON E-MARKETING

Opportunities and threats

3.10 E-ADVERTISING

Delivery methods

Display advertising

behavioural targeting 73
geo- targeting

Web banner advertising

Frame ad (traditional banner)

Pop-ups/Pop unders

Floating ad

Expanding ad

Trick banners

News Feed Ads

Some examples are

Interstitial

Text ads

Search Engine Marketing (SEM)

Search Engine Optimization (SEO)

Social Media Marketing

3.10.1 Advantages of online advertising:

Extensive coverage:

Large-capacity information:

Strong interaction with sensory:

Real-time and long-lasting unity:

Non-compulsory transfer of information:

3.10.2 Disadvantages of online advertising:

Network technology to filter the ads:

Lack of skills and marketing skills:

Online advertising marketing personnel requirements are higher than other media:

3.11 Internet Marketing Trends

1. Mobile is going to become the centre of marketing.

2. Transparency will dictate brand-customer relationships.

3. The need for good content will not slow down.

4. User-generated content will be the new hit.

5. Social will become the next Internet.

6. Brands will own their audience.

7. Brands solely-focused on Millennials will go out of relevance.

8. Good brands will behave like product companies and not like service companies.

9. Personalized, data-driven marketing will become more refined.

10. More accurate metrics will surface.

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[PDF] E- Commerce.pdf Business Models for E-commerce:

Ecommerce Advantage #1: Low Financial Cost

Ecommerce Advantage#2: 24/7 Potential Income

Ecommerce Advantage #4: Easy to Showcase Bestsellers

Ecommerce Advantage #6: Affordable Employees

Ecommerce Advantage #7: Easier to Encourage Impulse Buy

Ecommerce Advantage #8: Easy to Retarget Or Remarket to Customer

Ecommerce Advantage #10: Gain Access to Customer Data Easily

Ecommerce Advantage #11: Able to Process A High Number of Orders

Ecommerce Advantage #12: Can Scale Business Quickly