Introduction to Ecommerce

1. E- COMMERCE
INTRODUCTION TO E-
COMMERCE

2. INTRODUCTION
• The use of the internet, the web, and mobile
apps and browsers running on mobile
devices to transact business.
• Digitally enabled commercial transactions
between and among organizations and
individuals.
• The digital enabling of transactions and
processes within a firm, involving
information system under the control of the
firm

3. • The standard definition of E-commerce is a
commercial transaction which is happened over
the internet.
• Online stores like Amazon, Flipkart, Shopify,
Myntra, Ebay, Quikr, Olx are examples of E-
commerce websites.
• By 2020, global retail e-commerce can reach up to
$27 Trillion.

4. • E-Commerce or Electronic Commerce means buying and selling of
goods, products, or services over the internet.
• E-commerce is also known as electronic commerce or internet
commerce.
• These services provided online over the internet network.
• Transaction of money, funds, and data are also considered as E-
commerce.
• These business transactions can be done in four ways: Business to
Business (B2B), Business to Customer (B2C), Customer to Customer
(C2C), Customer to Business (C2B).
• The standard definition of E-commerce is a commercial
transaction which is happened over the internet.
• Online stores like Amazon, Flipkart, Shopify, Myntra, Ebay, Quikr,
Olx are examples of E-commerce websites.
• By 2020, global retail e-commerce can reach up to $27 Trillion. Let
us learn in detail about what is the advantages and disadvantages
of E-commerce and its types.

5. • E-commerce is a popular term for electronic
commerce or even internet commerce.
• The name is self-explanatory, it is the meeting of
buyers and sellers on the internet.
• This involves the transaction of goods and services,
the transfer of funds and the exchange of data.

6. TYPES
• 1. Business to Business
• This is Business to Business transactions. Here the
companies are doing business with each other. The
final consumer is not involved. So the online transactions
only involve the manufacturers, wholesalers, retailers etc.
• 2. Business to Consumer
• Business to Consumer. Here the company will sell their
goods and/or services directly to the consumer. The
consumer can browse their websites and look at products,
pictures, read reviews. Then they place their order and the
company ships the goods directly to them. Popular
examples are Amazon, Flipkart, Jabong etc.

7. TYPES
• 3. Consumer to Consumer
• Consumer to consumer, where the consumers are in
direct contact with each other. No company is involved.
It helps people sell their personal goods and assets
directly to an interested party. Usually, goods traded
are cars, bikes, electronics etc. OLX, Quikr etc follow
this model.
• 4. Consumer to Business
• This is the reverse of B2C, it is a consumer to business.
So the consumer provides a good or some service to
the company. Say for example an IT freelancer who
demos and sells his software to a company. This would
be a C2B transaction.

8. ADVANTAGES OF E COMMERCE
• A larger market
• Customer insights through tracking and analytics
• Fast response to consumer trends and market
demand
• Lower cost
• More opportunities to sell
• Personalized messages
• Increased sales with instant gratification
• Ability to scale up

9. DISADVANTAGES OF E
COMMERCE
• 1) Security.
• 2) Site crash.
• 3) No possibility of tried and tested product.
• 4) Late delivery.
• 5) Some products are difficult to buy online.
• 6) Lack of privacy.
• 7) Tax issues.
• 8) Legal issues

10. CUTTING EDGE IN E COMMERCE
• Creating a strong focus on the customer experience
• Tap into advanced analytics by using larger
platforms
• Prioritize reviews of your product.

11. Creating a strong focus on the
customer experience
• Casper was one of the early movers into the fast-
growing D2C mattress market, with $200 million in
sales in 2016, just three years after it launched.
• Casper has been at the forefront of the revolution
in what channels big-box items can be sold in.
• It changed a traditional model that was
traditionally only brick-and-mortar since it was
believed customers would not buy certain
expensive and experiential items online.
• This model has now been carried over to other
product categories, from furniture to appliance

12. Tap into advanced analytics by
using larger platforms
• Jet.com was acquired by Walmart for $3 billion. Among the chief reasons
was "smart cart," an innovative and algorithmic pricing feature. The first of
its kind, smart cart determines discounts on add-on goods based on the
incremental cost. This innovation was a first-of-its-kind relating to supply-
chain-based pricing. Around the time it was founded, Marc Lore, founder of
Jet.com, said, “We’re dynamically repricing products as you shop to reflect
the true marginal cost of getting that product to you.”
• Providing a similar technological advancement to the retailer side, jet.com
created their Jet Rules Engine. The Jet Rules Engine was the first option for
retailers to use dynamic pricing to improve competitiveness, profitability
and new customer acquisition. By allowing retailers to modify prices based
on four distinct factors (shipping distance, item returnability, order size and
email opt-in), jet.com created new opportunities in e-commerce.
• Smaller e-commerce sites usually do not have the ability to develop their
own features like Jet.com did, but there are two ways that they can provide
smart tech for customers. One method is to sell on sites such as Amazon.
Even large retailers, such as Nike, have made that switch recently. The
second method for smaller e-commerce retailers is to utilize a third-party
backend software for their e-commerce sites, such as Shopify.

13. Prioritize reviews of your product.
• The new platform aggregates reviews from experts, users and their
own social circles to show reviews and find the best prices on
products in one place.
• Nowadays, most consumers won't purchase a product without first
checking online reviews.
• If reviews don't provide the credibility and confidence a customer
needs, they won't finalize his or her buying decision.
• Providing all reviews in one place is not an easy implementation for
some e-commerce sites, which is why an independent solution can
improve the customer experience.
• At this time, most e-commerce retailers can generate reviews using
a third-party service provider, such as Yotpo, to help them with their
lack of data.
• The continual transformation of the retail world is inevitable, and
retailers need to embrace and continue to innovate the consumer
buying experience.
• Our hyper-connected world coupled with technology has led to high
consumer expectations, and only those companies that embrace
technology to improve the customer experience will thrive.

14. E COMMERCE FRAMEWROK
• The three main parts are
• sourcing a product,
• storage and
• warehousing,
• fulfillment
• shipping.
• There are different ways to go about each of these
depending on the type of eCommerce business you
want to run.

15. TYPES OF E COMMERCE
FRAMEWORK
• SaaS Ecommerce Framework.
• SaaS stands for “software as a service.” Users subscribe — as opposed
to buying — to software that the vendor continues to host, maintain
and improve. SaaS platforms, on average, come with more out-of-the-
box functionality. And, while customization is limited, SaaS platforms
today are becoming more and more flexible thanks to APIs and pre-built
integrations.
• Pros:
• The vendor can push out real-time feature upgrades as they continue to
improve the software over time.
• Total cost of ownership is typically much less than with an open source
or headless commerce frameworks.
• SaaS can help you get to market quickly.
• Security and maintenance are included in your costs, and you won’t
have to worry about hosting.
• Cons:
• Not as customizable as open source or headless commerce frameworks.

16. TYPES OF E COMMERCE
FRAMEWORK
• Open Source Ecommerce Framework.
• Open source software is software that allows users to access and change the source code on their own
software instance. It’s often — but not always — written in PHP, a popular general purpose scripting
language. Open source ecommerce platforms offer a high level of customization, but it comes at a cost.
• You’ll need developers to not just make the customization's you want, but also to maintain the code over
time — the more customization, the higher the risk of unintended consequences — and ensure continued
cybersecurity defenses to protect your business and your shoppers.
• Pros:
• Almost limitless customization opportunities.
• Engaged communities of developers.
• Cons:
• You’ll be responsible for installing software updates and security patches.
• The ability to customize also means that the software is more complex, and you’ll be more reliant on
developers not just at implementation but over the lifecycle of your business.
• The TCO is typically high once you factor in all the related extraneous costs. (No software is ever truly
“free.”)

17. TYPES OF E COMMERCE
FRAMEWORK
• Headless Ecommerce Framework.
• Headless commerce decouples the back- and front-ends so retailers can choose their own front-end
presentation layer to deliver a differentiated customer experience by leveraging a composable
architecture approach. This also gives you the opportunity to take a multi-vendor approach, using one
vendor for the back-end solution and something different on the front.
• Decoupled approaches like headless are a potential advantage to enterprise businesses because they
allow for greater freedom and control. You can also develop some elements of your system to operate
independently from each other instead of having everything be fully joined together.
• Pros:
• You’ll have the flexibility to use the front-end of your choice, from digital experience platforms to PWAs
and more.
• You can use your back-end to power multiple front-ends for a multi-site experience.
• When your front- and back-ends are decoupled, each can undergo development work without risking
impacts to each other.
• Cons:
• The total cost of ownership can be high, because you’ll be paying for your back-end, front-end and
development work.
• Architectures can be complex and require developer expertise.

18. Key Features Your Ecommerce
Framework Should Have
• Product management
• Mobile supported e commerce
• Security
• Built in SEO capabilities (search engine
optimization)
• Extensive plug-in or integrations

19. Evolution of e commerce
• Stage 1 – Start-up & fast growth
• Stage 2 – Plateauing growth or consolidation
• Stage 3 – Renewed growth by implementing
change (new platforms, features, resources/people
or strategies)

21. HISTORY OF E COMMERCE
• eCommerce is a form of doing business that is
performed online or over the internet.
• In other words, when you buy or sell something
online or via an electronic medium, it is referred to
as electronic commerce, popularly known as
eCommerce.
• Because of its vast reach and popularity, it has
completely changed the way entrepreneurs do
business and has been adopted by everyone
from small businesses to the big giants.

22. HISTORY OF E COMMERCE
• 1969: CompuServe, the first significant eCommerce company is
established by Dr. John R. Goltz and Jeffrey Wilkins by utilizing a dial-up
connection. This is the first time eCommerce was introduced.
• 1979: Michael Aldrich invented electronic shopping (he is also
considered as founder or inventor of eCommerce). This was done by
connecting a transaction-processing computer with a modified TV
through a telephone connection. This was done for the transmission of
secure data.
• 1982: The continued growth of technology, particularly in electronics
led to the launch of the first eCommerce platforms by Boston
Computer Exchange.
• 1992: The 90s took the online business to the next level by introducing
Book Stacks Unlimited as an online bookstore by Charles M. Stack. It
was one of the first online shopping sites created at that time.
• 1994: Web browser tool introduced by Netscape Navigator by Marc
Andreessen and Jim Clark. It was used on the Windows platform.
• 1995: The year marked the iconic development in the history of
eCommerce as Amazon and eBay were launched. Amazon was started
by Jeff Bezos, while Pierre Omidyar launched eBay.

23. HISTORY OF E COMMERCE
• 1998: PayPal launched the first eCommerce
payment system as a tool to make money transfers.
• 1999: Alibaba started its online shopping platform
in 1999 with more than $25 million as capital.
Gradually it turned out to be an eCommerce giant.
• 2000: Google launched the first online advertising
tool named Google AdWords as a way to help
retailers to utilize the pay-per-click (PPC) context.

24. • 2005 to 2009
• The four years saw the development of eCommerce in the following
ways:
• 2005: Amazon Prime membership was launched by Amazon to help
customers get free two-day shipping at an annual fee.
• Etsy was launched in 2005 to enable small and medium scale retailers to
sell goods online. In 2009, Jack Dorsey and Jim McKelvey started
• Square, Inc as an app-based service is launched
• Eddie Machaalani and Mitchell Harper launched BigCommerce as an
online storefront platform.
• 2011
• The years experienced massive development in the sphere of
eCommerce, such as:
• 2011: Google launches its online wallet payment app
• 2011: One of the earliest moves by Facebook to launch sponsored
stories for advertisements
• 2014: Apple launched Apply Pay, an online payment application
• 2014: Jet.com was launched in 2014 as an online shopping portal.
• 2017: Instagram introduces shoppable tags- enabling people to sell
directly from the social media platform

25. ROADMAP OF E COMMERCE IN
INDIA
• Start The Way With SEO (search engine optimization)
• SEO is an important component of an ecommerce business, mainly because it
helps them gain visibility. 44% of online shoppers spot ecommerce portals
through search engines. Hence, good SEO ensures consumers spot your
business before your competitors. Some of the main SEO options are:
• On Page Optimization – Always start your optimization of your own pages
instead of directly jumping to external SEO. Start with optimizing titles, heading,
content and images.
• Creative Content - Creating quality content is the best way to not only rank for
keywords but also create positive user experiences. It will also go a long way
with ensuring you are educating customers, and being an authority in your
niche will lead to boosts in sales.
• Guest Posting - Guest posting isn't dead - only the spammy distant cousin is.
This is still one of the best ways to get a good contextual link.
• Link Building – Building relevant links from resource pages and directories
makes for a nice, diverse link profile that Google doesn’t find apprehensive.

26. ROADMAP OF E COMMERCE IN
INDIA
• Add Some Twist With Email Marketing
• Email is one of the best ways to communicate with
customers. According to recent research and surveys:Email
has an ROI of around 4,300% (according to the Direct
Marketing Association)
• 80% of people say they receive marketing messages
alongside their personal emails on a daily basis.
• 70% of people make use of coupons or discounts they learn
about from email.
• 60% of people say that receiving special offers is the top
reason they subscribe to an email list from a business.
• In other words, if your ecommerce business hasn't taken the
time to adopt email marketing, then you are leaving money
on the table.

27. ROADMAP OF E COMMERCE IN
INDIA
• Take A Long Turn With PPC (pay per click)
• If you want to drive targeted traffic to your online store at a faster
pace than Google Adwords is a fantastic way to do this.
• But it creates wonders only when, this tool is used properly. Else
it is a money pit.
• Product Listing Ads - Product Listing Ads i.e. PLA are more of a
shopping-centric version of Adwords.
• The best part of it is that the cost is low and conversion rate is
much higher.
• Comparison Shopping Engines - Websites like PriceGrabber,
Nextag, and Shopzilla create wonders for some merchants by
driving commercial traffic.
• Facebook Ads – You can develop a fan base and build your email
list brilliantly with Facebook Ads.

28. ROADMAP OF E COMMERCE IN
INDIA
• A Lane To Social Media
• Social Media Profiles – Create profiles on Facebook, Twitter,
Google+ and other social media platforms. By creating profiles on
such profiles you can communicate effectively with your
customers and also can build brand awareness efficiently.
• Pinterest - Pinterest has its own importance.
• Product Reviews – If you want to create brand awareness of your
business then Product Reviews are very effective, especially for
the new product.
• Giveaways and Contests – It is similar to product reviews. The
extra benefit of Giveaways and Contests over Product Review is
that it is much more effective to get emails and social followers.
Growth Hacking - Growth hacking is a complete package. It is a
combination of all the above-mentioned strategies and therefore
most powerful among all.

29. ROADMAP OF E COMMERCE IN
INDIA
• Some More Turns to Reach Your Destination
• Video Marketing – Marketing through Video is a hit formula in
today’s business world. Many businesses are making dollar plus
business using Facebook Video and YouTube video.
• Affiliate Marketing - Affiliate marketing certainly gives you profit,
but necessary is you must follow your niche to go that extra mile.
• Forums and Q&A Sites – Search social forums and give solutions
to the people for which they are looking for related to your
business. Just keep in mind that do not spam.
• Related Industries - Approach a store in a related marketplace.
This will help you foster your business as well as relations.