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WHAT IS COMMERCE According to Dictionary.com Commerce is a division of trade or production
which deals with the exchange of goods and services from producer to final consumer
It comprises the trading of something of economic value such as goods, services, information, or money between two or more entities.
WHAT IS E-COMMERCE Commonly known as Electronic Marketing. “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.
TRADITIONAL BUSINESS
DIRECT SELLING
MANF. UNIT 20%
DISTRIBUTOR 10%
WHOLESALER 10%
RETAILER 10%
CUSTOMER 100%
ADVERTISEMENT 50%
CUSTOMER
COMPANY
Why Use
E-Commerce
…….?
LOW ENTRY COST REDUCES TRANSACTION COSTSACCESS TO THE GLOBAL MARKET SECURE MARKET SHARE
BriefHistory
OfE-Commerce
1970s: Electronic Funds Transfer (EFT)Used by the banking industry to exchange
account information over secured networks Late 1970s and early 1980s: Electronic
Data Interchange (EDI) for e-commerce within companiesUsed by businesses to transmit data from one
business to another 1990s: the World Wide Web on the
Internet provides easy-to-use technology for information publishing and disseminationCheaper to do business (economies of scale)Enable diverse business activities (economies
of scope
THE PROCESSOFE-COMMERCE
A consumer uses Web browser to connect to the home page of a merchant's Web site on the Internet.
The consumer browses the catalog of products featured on the site and selects items to purchase. The selected items are placed in the electronic equivalent of a shopping cart.
When the consumer is ready to complete the purchase of selected items, she provides a bill-to and ship-to address for purchase and delivery
When the merchant's Web server receives this information, it computes the total cost of the order--including tax, shipping, and handling charges--and then displays the total to the customer.
The customer can now provide payment information, such as a credit card number, and then submit the order.
When the credit card number is validated and the order is completed at the Commerce Server site, the merchant's site displays a receipt confirming the customer's purchase.
The Commerce Server site then forwards the order to a Processing Network for payment processing and fulfillment.
TYPES
OF
E-COMMERCE
BUSINESS-TO-BUSINESS (B2B) B2B stands for Business to Business. It consists of
largest form of Ecommerce. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler.
E.g.:-Dell deals computers and other associated accessories online but it is does not make up all those products. So, in govern to deal those products, first step is to purchases them from unlike businesses i.e. the producers of those products.
BUSINESS-TO-CONSUMER (B2C): It is the model taking businesses and
consumers interaction. The basic concept of this model is to sell the product online to the consumers.
B2c is the direct trade between the company and consumers. It provides direct selling through online. For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from supplier’s website.
BUSINESS-TO-EMPLOYEE (B2E) Business-to-employee (B2E) electronic
commerce uses an intrabusiness network which allows companies to provide products and/or services to their employees. Typically, companies use B2E networks to automate employee-related corporate processes.
CONSUMER-TO-CONSUMER (C2C) There are many sites offering free classifieds,
auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995.
PROS AND CONSOF
E-COMMERCE
PROS
No checkout queues
Reduce prices
You can shop anywhere in the world
Easy access 24 hours a day
Wide selection to cater for all consumers
CONS
Unable to examine products personally
Not everyone is connected to the Internet
There is the possibility of credit card number theft
On average only 1/9th of stock is available on the net
FUTURE OF E-COMMERCE IN INDIA According to business world estimate near
about Sixty thousand new jobs will be created for the internet world alone in the next two years
e-Commerce transactions are expected to cross the Rs. 3500 crore milestone in 2010-11, a jump of around 350 percent from the 2008-09 figure of Rs. 1000 crore
eBay said that consumers were trading goods worth almost three crore rupees everyday, across the globe.
TOP E-COMMERCE SITES IN INDIA1:Flipkart2:Myntra 3:Jabong4:Snapdeal5:???????
TIPS TO START AN EFFECTIVE AND PROFITABLE E –COMMERCE WEBSITE
1:Choosing a ProductFinding A Product To SellThe first step to building an ecommerce business is to know what products you want to sell. This is often the most challenging part of starting a new online business. In this section, we will highlight the strategies you can use to find product opportunities, explore the ten best places to look for product ideas, and finally, we will reveal ten trending products that we came up.EXAMPLE: Starting with a mobile accessories business can avail a profit margin of 80% to 100%
2:Obtaining Your ProductHaving found your product idea and evaluating them in the previous section, you must now figure out where and how you’re going to obtain your products. The next two posts will cover the various methods for acquiring your products, along with the pros and cons of each model.
3:Research Your CompetitionYou’ve found your product, evaluated the potential and sourced your supplier. It’s time to write your business plan, but before you get into that, you'll need to research your competition thoroughly so you know exactly what you’re up against.NOTE: Try not taking on Flipkart
4:Registering Your BusinessWith a business plan in hand, now is a good time to consider your options for registering your business.
5:Creating a user friendly innovative siteTry making the site as simple to use as possible .Make use of the best designers to make your site look good on screen.TIP: Try borrowing the best features from each of the top sites and have it in yours.
6:Marketing Your StoreYou’re well on your way and now likely have some sales under your belt. It’s time to get serious and focused. The following posts will help you zero in on some top marketing tactics for driving traffic and converting that traffic to sales. Tip: Make use of social networking sites to spread awareness about your new venture
After following all these guidelines successfully And with a bit of patience this will be your future
Thank you!!!!!!
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