Introduction

E Commerce stands for electronic commerce and caters to trading in

goods and services through the electronic medium such as intemet, mobie o

y other computer network. It involves the use of Information and

Communication Technology (ICT) and Electronic Funds Transfer(EFT) in

aking commerce between consumers and organizations, organization and

oganization or consumer and consumer. With the growing use of internet

woridwide, Electronic Data Interchange (EDI) has also increased in humungous

E-Commerce and Digital Marketing (TYBMS Sem-V

amounts and so has flourished e-commerce with the prolific virtual internet

bazaar inside the digital world which is righty termed as e-malls.

We now have access to almost every knick-knack of our daily lives at

competitive prices on the internet. No matter one is educated or iliterate, an

urbane ora countryman, in India or in any other country; all you need is an

internet connection and a green bank account. With e-commerce then, you can

buy almost anythingg you wish for without actualy touching the product

physically and inquiring the salesman n number of times before placing the final

order. Here is a beautiful picture depicting how has human life evolved to adapt

to the digital workd and hence trading over the intemet. As seen, from pizza and

potted plant to pair of shoes, we have everything on sale on the internet available

in tempting offers..! Snapdeal.com, Amazon, eBay, Naaptol, Myntra, etc are

some of the most popular e-commerce websiteinets Con. duct

Ecommerces often éonfused with e-business, although theý have

nothing to do with one another.

E-commerce only refers to the goods and services transaction between

a seller and a consumer, whereas e-business refers to the complete process

necessary to manage an online business.

Within e-business we can find, for example:

.Inbound marketing

Sales promotions.

Stock control.

SEO.

Email marketing.

Etc.

The e-business concept is wider than the e-commerce one and e

commerce is actually a part of e-business since it is a type of business

model

1.1 MEANING OF E-COMMERCE]

The buying and selling of products and services by businesses and

consumers through an electronic medium, without using any paper

documents. E-commerce is subdivided into three categories: business to

business or B2B (Cisco), business to consumer or B2C (Amazon), and

consumer to consumer or C2C (eBay). E-Commerce is also called electronic

commerce.

Electronic commerce consists of all business activities carried on with

the use of electronic media, that is, computer network. Introductiorn to E - Commerce

It involves conducting business with the help of the electronic media,

making use of the information technology such as Electronic Data

Interchange (EDI).

In simple words, electronic commerce involves buying and selling of

goods and services over the internet.

E. Turban and others

"E-Commerce describes the process of buying and selling or

exchanging of products, services and information via computer networks

including the internet. "

J.F. Rayport and B. I Jaworski

"E-commerce can be defined as the technology mediated exchanges

between the parties (individuals, organizations or both) as well as the

electronic based intra or inter organizational activities that facilitate such

exchanges".

1.2 FEATURES OF E-COMMERCE

E-Commerce is the application of communication and information

sharing technologies among trading partners to the pursuit of business

objectives.

The basic features of Ecommerce are:

(1) Ubiquity:

Ubiquity is defined as being something

that

occurs everywhere. The traditional business market is a physical place,

access to treatment by means of document circulation. For example,

clothes and shoes are usually directed to encourage customers to go

somewhere to buy. E-commerce is ubiquitous meaning that it can be

everywhere. E-commerce is the world's reduce cognitive energy

required to complete the task.

(2) Global Reach: E-commerce allows business transactions on the cross

country bound can be more convenient and more effective as

compared with the traditional commerce. On the e-commerce

businesses potential market scale is roughly equivalent to the network

the size of the world's population. Global reach allows previously

unheard of retailers to sell to the other side of the world, while it also

connects the bigger sellers with new opportunities as well. The

marketplace has never been more alive than now, with the help ot E

commerce!

Commerce and Digital Marketing (TYBMS Sem-

(3) Interactivity: Twentieth Century electronic commerce business

technology is called interactive, so they allow for two-way

communication between businesses and consumers. There is nothing

more frustrating than going into a store to find something you need,

and not getting the assistance you feel you deserve. With the new

standards being set by E-Commerce, interactivity is now pretty standard

in most businesses you find in the market space. There are online

agents to chat with you live if you're having issues with a product,

shipping or billing. Also, customers are better able to give feedback on

products, which allows other users to see whether or not they want to

actually spend money on items.

(4) Information Density: The density of information the Internet has

greatly improved, as long as the total amount and all markets

consumers and businesses quality information. The electronic

commerce technology. reduce the information collection, storage,

communication and processing cost. At the same time, accuracy and

timeliness of the information technology increases greatly, information

is more useful, more important than ever.

(5) Personalization: E-commerce tech nology allows for personalization.

Business can be adjusted for a name, a person's interests and past

purchase message objects and marketing message to a specific

individual. The technology also allows for custom. Merchants can

change the product or service based on user preferences, or previous

behaviour.

(6) Universal Standards: The internet has its own universally accepted

standards of how information is presented. E-commerce technologies is

an unusual feature, is the technical standard of the Internet, so to cary

out the technical standard of e-commerce is shared by all countries

around the world standard. Standard can greatly affect the market ent

cost and considering the cost of the goods on the market. The standard
can make technology business existing become more easily, whish canuuvus on the market. The standar

can make technology business existing become more easily, which can

reduce the cost, technique of indirect costs in addition can set tne

electronic commerce website.

(7) Richness: Advertising and branding are an important part

commerce. E-commerce can deliver video, audio, animation

billboards, signs and etc. However, it's about as rich as televisio

technology.

Introduction to E - Commerce

1.3 CATEGORIES OF ECOMMERCE

The main element of electronic commerce is commu 5/ 32

particular exchange of information between senders and reciph

exchanges concern three actors: consumers, businesses and public bodies.

The categories of e commerce are as follows:

(1) Consumer to Consumer (C2C): Consumer to Consumer (c2C)

enables consumers to buy and sell goods and services to other

consumers over the internet. The process allow buyers and sellers to

display information about the goods and services on web to sell or

buy. It also permits them to rate the products and services. The internet

also offers a lot of scope for this activity. There are many websites

where consumers can buy and sell the goods such as,

books,

fashion jewellery,

clothes/ apparel, etc.

Examples of such website includes: Obx, eBay and Quickr.

(2) Business to Consumers (B2C): Business to Consumers (B2C)

enables firms to sell goods and services to consumers over the internet.

Firms use their site for range of marketing activities such as,

promotion,
information about product,

reviews product and services,

delivering product at doorstep and so on.

The cost of product and services is kept low and the speed of

transaction is also faster. Examples of such websites includes:

Amazon.com, Flipkart.com and so on.

(3) Business to Business (B2B): Business to Business enables to

exchange, buy or sell goods and services between businesses. It is a

ransaction between business firms. In simple words, it is an

e- commerce between businesses. The firms interact each other for the

varieties of services. These includes

supplying parts/ components to manufacturers,

providing value added services like catering,

providing man power, and so on.

E-Commerce and Digital Marketing (TYBMS Sem-)

Other online transactions:

Business (C2B): In this model, a consumer

(4) Consumer to

approaches website showing multiple business organizations for a

particular service. Consumer places an estimate of amount he/she wants

to spend for a particular service. For example, comparison of interest

rates of personal loan/ car loan provided by various banks via website

Business organization who fulfills the consumer's requirement within

specified budget approaches the customer and provides its services.

(5) Business to Government (B2G): B2G model is a variant of B2B

model. Such websites are used by government to trade and exchange

information with various business organizations. Such websites are

accredited by the government and provide a medium to businesses to

submit application forms to the government. Business (G2B): Government uses B2G model
(6) Government to

website to approach business organizations. Such websites support

auctions, tenders and application submission functionalities.

(7) Government to Citizen (G2c): Government uses G2C modet

website to approach citizen in general. Such websites support auctions

of vehicles, machinery or any other materíal. Such website also

provides services like registration for birth, marriage or death

certificates. Main objectives of G2C website are to reduce average time

for fulfilling people requests for various government services.

14 ADVANTAGES OF E-cOMMERCE

Faster buying/ selling procedure, as well as easy to find products. More

reach to customers, there is no theoretical geographic limitations. Low

operational costs and better quality of services.

The advantage of e - business are as follows:

(1) Easy setup: The setup of e business is easy as compared to

traditional business. This is because, there is

no requirement for

physical space for store, only an effective website for transaction and

easy displaying of

goods and services is required.

pebvo

Introduction to E - Commerce

(2) Wide Reach: E- business helps in facilitating wide reach of goods and

services to customers. It helps the marketers to attract customers over

the globe. Consumers become co participant in the process of

delivering

goods. It also helps in communicating and selling the

products to large size of customers.

(3) Wide choice of product: Customer gets unlimited choice of product

and services. It provide an autonomy

to the buyers. Customers can

choose widely among the offer. They can even compare the price,

quality and

then make purchases.

(4) Saves time: E - business helps in to saves the time of customers. This

is because, customers do not have to go to the shops in search of

goods, they can placed their order through the Internet. However, in

case of physical store, one needs to travel to store to get the goods.

Thus, it is convenient for the customers and also saves their time.

(5) Better Customer Relationship: E - business helps in maintaining

better relationship with customers. This is because, the online marketers

can get the feedback from customers, through which the marketers can

provide the goods/ product as per the needs, choice and preference

of the customers. This helps in customers

satisfaction, thereby

increasing customer loyalty.

(6) Cost effective: E business is economical and cost effective. The

investment require in setting up the online business is low as compared

to traditional business (physical store). This is because on an effective

website design is require to provide information of goods and services

and the cost of the website is also limited.

(7) Personalization: One of the online business benefit which will

enhance your online shopping experience. It is because every purchase

which is made online will be refered as per location and recommended

as per customers advanced searches

1.5 LIMITATIONS OF E.COMMERCE

Though e-commerce offers many advantages to customers, business, society

nation, there are still some areas of concern that need to be addressed. The

tollowing are some of the limitations or disadvantages of e-commerce.

These limitations are described below:

Lack of Personal Touch: The main disadvantage ofe - business is lack ot

physical and personal touch. The customers cannot touch or feel the

Droduct before buying. It does not allow buyer to examine the products.

his make the customers to feel hesitate before buying the goodsE-Commerce and Digital Marketing
(TYBMS Sem-

(2) Lack of Interactions: E - business cause lack of face to- face interaction

with the buyer or seller. Thus, in the absence of interaction, many buyer

Teel insecure to cary out the transaction. This is also a disadvantage of e

business.

(3) Risk of payment: In e - business risk of payment mode is high. A

from debit or credit cards. This is

customers does not want to buy goods

because, they fell that their detail may be misuse by the hackers. Also, there

can be a lot of fraudulent transactions.

(4) Delivery of the sgoods: There can be a problem of delivery of goods in

case of perishable and expensive goods. It may be difficult for e - business

to delivered perishable goods on time. Moreover, customes hesitate to buy

expensive goods as it is difficult to inspect the product before buying. Also,

lack of communication can cause wrong delivery of goods.

(5) Privacy issue: There can be privacy issue also in e business. This is

because, personal details of customers such as, addresses, card details, etc.

can be misuse or even may get leaked during transit by others. Now-a-days,

even, telemarketers also use such data for their business calls. Therefore,

privacy is an important challenge for marketers.

nol

(6) Government interference: Sometimes the govermment monitoring also

lead to interference in the business. This could cause hindrance in selling the

goods and services. This is also a disadvantage ofe - business.

(7) E-commerce is highly competitive: Every single step into E-Commerce

is very competitive because the online market has been growing rapidly

One has to focus on the services and try to leam more about the strategies

to makes their visibility global market.

1.6 TRADITIONAL COMMERCE Vs. E-COMMERCE

Entrepreneurs who are planning to start a new business venture

should consider the differences between an e-business and a traditional

business model. Differences don't suggest one is better than thë other. One

model might be better suited for certain types of business products and

services. Some businesses benefit froma combination of the two models. Introduction to E - Commerce

Traditional Business

E-Business

(1) Meaning:

Traditional Business means a business

E-business refers to buying, selling, and

having a physical store and personal

managing the entire business over the

interaction that tocuses on thee

internet.

exchange of products and services, and

In other words, e - business means

includes all those activities which

carying out

commercial transactions

exchange, in some way or

or exchange of

encourage
information,

the other.

electronically on the internet.

(2) Transaction:

In traditional business, the transactions are Whereas, in the case of e-business, there is

processed manually.

automatic processing of transactions.

(3) Accessibility:

In traditional business, the exchange of

On the other hand, in e-commerce, the

and services, for money can

buying

goods

and selling of goods can

take place, only

during working

occur anytime.

hours.

(4) Physical Inspection:

In traditional commerce physical

Conversely, in e - business customers

inspection of

goods is possible.

cannot

physically inspect the

goods before purchase.

(5) Face to - face interaction:

In traditional business face - to - face

Whereas, ine - business face - to- face

interaction is possible between buyer

interaction is not possible between buyer

and seller

and

seller.

(6) Delivery of goods:

The delivery of goods is immediatein

But in the case of e-business, the goods

traditional business

delivered at the customer's

are

place, after some

time, usually

within a week.

(7) Scope:

The scope of traditional business is limited

On the contrary, the scope of e business

to a particular area, i.e. the reach of

worldwide reach, due to is

has

business is

limited to the

ease of access.

nearby places where it operates.

8) Resource Focus:

Supply side

Demand side

9) Business Relations

Linear
End-to- End

10) Marketing

One way marketing

One to one marketing

11) Payment:

Cash, Cheque, Credit Card etc,

Credit Card, Funds transfker etc.

12) Dellvery of Goods

Instantly

Takes time

E Commerce and Digital Marketing (TYHMS Sem-

10

1.7 ECOMMERCE ENVIRONMENTAL FACTORS

There are many external environmental factors that can affect

business. It is common for managers to assess each of these tactors closely

The aim is always to take better decisions for the irm's progress. Some

common factors are political, economic, social and technological (known

as pest analysis).

The e-commerce environmental factors are as follows: (1) Political factors: It includes the role of
government legislation,

initiatives and funding to support the use and development of e

commerce and information technology. Several aspects of government

policy can affect e-commerce business. All firms must follow the law

Managers must find how upcoming legislations can affect ther

activities. The government's role in developing countries is an

important one as it facilitates the essential requirements for the

development of E-Commerce such as providing robust secure on-line

payment options, ensuring a solid ICT infrastructure, providing

educational programs and building up awareness using different means

such as media and education institutions. While the threats may not be

the same before the e-retailers as the physical retailers, still there are

several political hurdles before them. There are several risk factos

affecting the e-businesses. For example for the global leaders

Amazon and E-bay growth in Asia pacific region can be made difficu

by the Red tape. Several news reports highlight how Red Tape in Ind

can become major difficulty in the way of new businesses trying

extend their presence there. The political and regulatory challeng

before the e-businesses have kept rising.

Introduction to E - Commerce

(2) Economic factors: It includes the general wealth and commercial

health of the nation and the elements that contribute to it. Economic

efficiency results in the reduction of communications costs, low-cost

technological infrastructure, speedier and more economic electronic

transactions with suppliers, lower global information sharing and

advertising costs, and cheaper customer service alternatives. Economic

integration is either external or internal. External integration refers

the electronic networking of corporations, suppliers, customers/clients,

and independent contractors into one community communicating in a

virtual environment (with the Internet as medium). Internal integration,

on the other hand, is the networking of the various departments within

a corporation, and of business operations and processes. This allows

critical business information to be stored in a digital form that can be

retrieved instantly and transmitted electronically. Internal integration

best exemplified by corporate intranets. Among the companies with

efficient corporate intranets are Procter and Gamble, IBM, Nestle and

Intel.

(3) Social factors:

Incorporating the level and advancement in IT

education and training which will enable both potential buyers and the

workforce to understand and use the technology. Rising standards of

living and a burgeoning, upwardly mobile middle class with high

disposable incomes. Busy lifestyles, urban traffic congestion and lack of

time for offline shopping have given boost to e-commerce. Evolution of

websites such as Flipkart, Snapdeal, ebay etc. has become a market

place where seller register with them and pays commission on every

sale.

(4) Technological factors: The development of ICT is a key factor in the

growth of e-commerce. It has made communication more efficient,

faster, easier, and more economical as the need to set up separate

networks for telephone services, television broadcast, cable television,

and Internet access is eliminated. Due to technological advances

economic transactions have become much easier and faster and this

as given boost to the development of e-commerce. Technology

decides several things in the ecommerce world from popularity

profits. The reason that Amazon is ahead of the others is because it isE.Commerce and Digital Marketing
TYBMS Sem-

(5) Environmental Factors: Environmental factors too have a special

importance in the context of Ecommerce industry. While the direg

environmental impact of this industry is very low and nearly zero, it stil

focuses heavily on sustainability. Brands like Amazon have invested

heavily in technology. Even in Ecommerce there are several areas

where investing in sustainability can be highly productive. From

sustainable packaging to waste reduction and renewable energy there

are several areas where the e-retailers can invest in sustainability

Amazon has invested in renewable energy to gain freedom from the use

of non-renewable energy resources.

(6) Legal Factors: Legal compliance is just as important for the businesses

globally. Any tussle with the law can be a costly affair and even the e

retail brands can become a target unless they take care of compliance.

It is why the big E-retail brands have separate teams to take care of the

legal issues. Non compliance can result in financial losses as well as los

of image and reputation. From labor laws to sustainability laws, ther

are several areas where the e-retail brands have to be careful regarding

compliance. Moreover, these laws differ from nation to nation and

market to market and compliance in every area is important. So, in

case of the companies operating internationally law can lead to major

pressures and an increase in operational costs. The e-retail brands also

have to be careful about the applicable laws and compliance.

1.8 FACTORS RESPONSIBLE FOR GROWTH OF E-COMMERCE

The factors responsible for growth of e-commerce are discussed below

(1) Anytime, Anywhere, Anyone: The web sites on the server has vanished

all the bariers of availability of product from any part of the world anytime

E-commerce ties together the industrial sector, merchants, the service sector,

and the content provider using text, multimedia, video, and other

technologies.

(2) Information Density: Proliferations of products and services worldwide

and Global competitions has added unusual pressure to keep a close watc

on operating costs and maximize profit margins. E-commerce address

their concerms quickly, efficiently, and at a low cost.

(3) Digital convergence: Everything is digitized nowadays whether it is da

voice, documents, films etc. The digital revolution has made it possible

almost all digital devices to communicate with one another. The digital

will have to constantly mature and provide them with every means poss

to expand their knowledge and skill base.

Introduction to E - Commerce
13

(4) New sales channel: E-commerce creates new sales channel for existing

product because ot its direct reach of customers and bidirectional nature of

communication.

(5) Product promotion: E-commerce enhances promotion of products and

services through direct, infomation rich and interactive contact with the

customers.

(6) Customization: Nowadays customers are demanding the customized

products and services besides higher quality and better performance. E

commerce provides for customization of products and services that provide

a competitive advantage as

ll as increases the overall dermand for certain

products. Mass customization puts pressure on fims to handle customized

request on a mass-market scale.

7) New emerging organisational designs: New and updated technologies

are upcoming and forcing companies to make necessary changes in the

organisation for the survival of the fim in e-commerce operations. Neww

technologies require new approaches and these are:

Updated software and system

Business process re-engineering involving re- designing of the

processes of the business organisation.

Transforming organisations by way of organisational learning

Changing nature of work

(8) Redefining organizations: E-commerce allows for new products to be

areated and /or for existing products to be customized in innovative ways.

Such changes may redefine organizations missions and the manner in which

they operate. These changes include redefining organizations by new

product capabilities, new business models, impact on manufacturing, impact

on finance and marketing. training and education.

(9) Direct savings: The cost of delivering information to customers over the

internet results in substantial savings to senders (when compared with nonelectronic delivery). Major
savings are also realized in digitized products such

as music software vs. physical delivery.

0Economie pressure: Ecommerce offers the potential for great eficiences

and reduced overheads. With more aspects of business being done online,

there is less need for physical shops or offices. Web servers need constant

aintenance as they form the backbone of communications with the

customers. Every minute that a web server is out of action represents losses

Company. There is a great deal of data to be kept secure, for instance,

(11)Br ndcorporate: Image-on the web, newcomers can establish corporate

records of transactions that need to be kept more so than a company in the

on-line world as all the records are now electronic, and there is no longer a

trail of paper receipts.

ages very quickly. It takes companies a very less time to achieve

gniton through web. For example, Amazon.com vs. raditona

business.

E-Commerce and Digital Marketing (TYBMS Sem

14

1.9 VARIOUS ISSUES/CHALLENGES IN IMPLEMENTING

LELECTRONIC COMMERCE

The implementation of E-Commerce involves many issues for which secae

curity

concerns are of great importance and these are as folows:

Cost: As with all major business systems, e-commere systems requ

significant investments in hardware, software, starfing. and traini

Therefore, E-commerce requires sophisticated, distributed systems base siness

ed on

new technologies that can touch many of a companys core busines easy
processes. For this, businesses need comprehensive solutions that are

to use and thus help enable cost-effective deployment.

(2) Value: Businesses want to know that their investments in e-commero s a

systems will produce a return. They want to ensure that these objectives a

met. They deploy e-commerce systems to achieve business objectives such

as:

.lead generation,

business process automation, and

cost reduction.

Businesses also need to be flexible in solutions so that they can easily adapt

any system to meet changing business requirements.

(3) Security: Because the Internet provides almost universal access, a

company's assets must be protected against misuse, whether accidental or

malicious. At the same time, that protection should not compromise a sites

usability or performance nor make its development too complex. There is an

additional security issue: Because e-commerce systems enable the collection

and usage of sensitive information about individual customers, companies

also need to protect the privacy of their customers

(4) Existing Systems: Most companies new to e-commerce already use

infomation technology to conduct business in non-Internet environments

in existing marketing, order management, billing, inventory, distribution,

and customer service systems. Companies need to be able to harness the

functionality of existing applications into e-commerce systems. The Interme

represents an alternative and complementary way to do business.

imperative that Intemet e-commerce systems integrate existing systems ne

manner that avoids duplicate function and maintains usability, performans

and reliability.

(5) Interoperability: Interoperability here means the linking of trading partn

applications in order to exchange business documents. These systems

work together well in order to achieve business objectives. For example.

the

the inventory applications of its suppliers. Interoperation between busine vith

order-management application of a business partner must interoperate

ness

Introduction to E - Commerce

15

reduces costs and improves performance. It enables the implementation of

more dynamic value chains.

(6) Commercial Infrastructure: Relates to issues such as international trade

agreements, taxation laws and other legal agreements that facilitate all kinds

of on-line trading and so is a barier relevant to all types of businesses.

D Technology Infrastructure: Deals with issues of standardization of systems

and applications, which is a particular concern for larger organizations who

want to implement solutions such as value chain integration and esupply

chain management.

(8) Others Challenges:

- Legal issue or govemment regulationsreduces costs and improves performance. It enables the
implementation of

more dynamic value chains.

(6) Commercial Infrastructure: Relates to issues such as international trade

agreements, taxation laws and other legal agreements that facilitate all kinds

of on-line trading and so is a barier relevant to all types of businesses.

7) Technology Infrastructure: Deals with issues of standardization of systems

and applications, which is a particular concern for larger organizations who

want to implement solutions such as value chain integration and e-supply

chain management.

(8) Others Challenges:

- Legal issue or govermment regulations

- Issue relating to the packaging and shipping of merchandise.

Physical goods delivery in e-commerce may take time.

1.10 MYTHS OF E-COMMERCE

Myths are the confusions that one has regarding the e commerce i.e.

how one can create a website, how to achieve the targets, etc. These myths

are explained below:

infomercials that tout how

(1) Myth 1. It's Easy: Undoubtedly, there a

easy e-commerce is for anyone. But in reality, there will be obstacles to

overcome: customer service fires that need to be put out, charge backs

that will require attention, and technical issues you need to get help to

solve. So it's not easy but is doable with persistence.

(2) Myth 2. It's Free: You get what you pay for and nothing is free. You

may be able to save money doing many of the tasks yourself, such as

writing product descriptions, taking product photos, and marketing.

You will still have a hosting bill, cost of goods, and fees for processing

credit cards.

(3) Myth 3. No Experience needed: You may not need e-commerce

experience; however, experience in starting a business, marketing,

merchandising and branding will all help you succeed.

(4) Myth 4. It's not a business: E-commerce is e-business which means

this is electronic business. You need products or services, marketing.

company policies, accounting, IT, fulfillment, customer support and

more.

9) Myth 5. Manufacturer pictures will work: Stock images show you

as a copycat whenever someone is searching for a specific product.

Take your own pictures and stand out from the crowd.

ECommeroe and Digital Marketing TYBMS Se

16
(6) Myth 6. Only price matters: Competing on price has been succes yor

sshu

for the few, but unrealistic for the majority since it requires that

generate a massive volume of sales for substantial profit. Se ome

yourself apart as a leader and authority, or offering stellar cust igher

service and ease of shopping. can allow you to command a hiok

price.

(7) Myth 7. Build it and they will come: Just like any store, an

online

store needs traffic. And since there is no foot traffic in the online wo

worid

you need to get your internet marketing hustle on to drive traffic

your online store.

(8) Myth 8. Fraud: In the beginning you need to check everything t

potential fraud. Fraudulent orders cut your profits and could put you

out of business; especially if you leverage drop shipping

(9) Myth 9. Competition: Know who your competition is before you

open up shop. Like a hawk, watch every move they make, so you don't

get caught by surprise on anything. Google alerts on company names is

a good place to start.

(10) Myth 10. One year, one million dollars: It is possible to build

million dollar online business in a few years; previous experience in

other e-commerce businesses is a huge predictor of success though.

1.11 IMPACT OF E-COMMERCE ON BUSINESS

The Impact of Electronic Commerce on Business E-Commerce and

Business are not solely the Internet, websites or dot com companies. It

about a new business concept that incorporates all previous business

management and economic concepts. As such, E-Business and E-Commerce

impact on many areas of business and disciplines of business management1.11 IMPACT OF
E.COMMERCE ON BUSINEsS

The Impact of Electronic Commerce on Business E-Commerce and E

Business are not solely the Internet, websites or dot com companies. It s

about a new business concept that incorporates all previous busines

management and economic concepts. As such, E-Business and E-Commerce

impact on many areas of business and disciplines of business managemen

studies.

(1) Management Information Systems: Analysis, design

implementation of e-business systems within an organization; issue

integration of front-end and back-end systems

(2) Human Resource Management: Issues of on-line recruiting.

home

working and "Intrapreneurs works on a project by project

basis

replacing permanent employees.

accounting and auditing implications where "intangible assets coss

(3) Finance and Accounting: On-line banking; issues of transaction

human capital must be tangibly valued in an increasingly knowi

leds

based economy.

Introduction to E - Commerce

(4) Economics: The impact of e-commerce on local and global

economies; understanding the concepts of a digital and knowledge-

based economy and how this fits into economic theory.

(5) Production and Operations Management: The impact of on-line

processing has led to reduced cycle times. It takes seconds to deliver

digitized products and services electronically; similarly the time for

processing orders can be reduced by more than 90 per cent from days
to minutes. Production systems are integrated with finance marketing

and other functional systems as well as with business partners and

customers.

(6) Marketing: Issues of on-line advertising. marketing strategies and

consumer behaviour and cultures. One of the areas in which it impacts

particularly is direct marketing. In the past this was mainly door-to

door, home parties and mail order using catalogues or leaflets.

(7) Computer Sclences: Development of different network and

computing technologies and languages to support e-commerce and e-

business, for example linking front and back office legacy systems with

the 'web based' technology

(8) Business Law and Ethics: The different legal and ethical Issues that

have arisen as a result of a global virtual' market issues such

copyright laws, privacy of customer information, legality of electronic

contracts etc.

(9) Key impact of e-commerce on business operations:

(a) Key Impacts of E-commerce on Marketing:

Marketing strategy of differentiation increasingly effective (easier to

reach niche markets online)

Product life cycles are shortened (note the link with technological

disruption)

Product promotion :E-commerce enhances promotion of products

and services through direct, attractive and interactive contact with

customers.

Brands and retailers increasingly using mutiple distribution

channels

Greater use of dynamic pricing (easier to maximise revenues, Dut

is it fair for customers?)

Increased need for localisation (but on its own, not enough)

Ability to sell a much wider product range (the "long tail")

E-Commerce and Digital Marketing (YBMS Sem-

18

New sales channel: E-commerce creates a new distribution

channel for existing products. It facilitates direct reach of customen

and the bi-directional nature of communication.

(6) Key Impacts of E-commerce on Human Resource

Management:

Need for employees to have a broader range of digital skills (egNew sales channel: E-commerce creates
a new distribution

channel for existing products. It facilitates direct reach of customen

and the bi-directional nature of communication.

(6) Key Impacts of E-commerce on Human Kesource

Management:

Need for employees to have a broader range of digital skills (eg

store staff trained to sell via other digital options)

Workforce planning to support highly seasonal demand (e.g

Amazon hire 000's of extra staff during peak periods)

Concerns over the working conditions of staft working in e

commerce warehouses

Increased use of automation in e-commerce (e.g. John Lewis

£500m investment) changes the workforce needs.

(c) Key Impacts of E-commerce on Operations:

Logistics behind large-scale e-commerce platforms are complex

Places greater emphasis on close relationships with key suppliers

Economies of scale are becoming increasingly important

It is now relatively easy for smaller firms to sell online;

sophisticated e-commerce software (integrated with financial

marketing and other systems) is widely available

Using Web-based RP systems, orders that are taken from

customers can be directed to designers and to the production

floor, within seconds.

Companies like IBM, General Motors, are assembling products for

which the components are manufactured in many locations. Sub-

assemblers gather materials and parts from their vendors, and they

may use one or more tiers of manufacturers. Communication,

collaboration, and coordination become critical in such multitier

systems.

(d) Key Impacts of E-commerce on Finance:

Significant investment required to set-up e-commerce platfoms

and to integrate them with other systems.

E-commerce likely to involve greater use of multi-currency

transactions

Impact of exchange rate changes more likely to be significant tor

businesses selling online (if they are using e-commerce to bul

international sales)

Introduction to E - Commeroe

19

1.12 E.COMMERCE IN INDIA]

India is among the fastest growing economies of the world. Among

several factors, a conscious patronization of online commerce, and an

emergence of retail as a dominant market segment have contributed to the

unprecedented growth of E-Commerce in India. For the financial year 2016

17, E-Commerce sales reached the US $16 billion with a projection of a

seven fold growth within the next two fiscals as estimated by Morgan

Stanley. By 2020 online commerce sales is expected to cross $120 bilion.

The three principal driving factors for this growth

n
eCommerce sector of India are:

Participation of niche companies in online trading

Unmatched FDI (foreign direct investment)

.Uniform GST (Goods and Services Tax)

Participation of niche companies

With the increase in awareness about the benefits of online trading,

there has been a significant rise in investment in e-commerce business.

Hand in hand with offline trading, many established business houses have

setup online transaction channels. Online retailing is the 'in-thing' in today's

commerce. Every other day a new company is being set in the online retail

segment.

Specialization and customization are the underlining features of online

trading. e-commerce companies are specializing in exclusive items and have

consciously moved away from the 'one for all' concept. Every new company

is focusing on a definite item or targeting a particular demographic segment.

So instead of addressing universally, it is better to concentrate on a single

area and execute it to your best ability. Consumers prefer this kind of

preferential treatment and personalized attention. 1.12 E-COMMERCE IN INDIA]

India is among the fastest growing economies of the world. Among

several factors, a conscious patronization of online commerce, and an

emergence of retail as a dominant market segment have contributed to the

unprecedented growth of E-Commerce in India. For the financial year 2016-

17, E-Commerce sales reached the US $16 billion with a projection of a

seven fold growth within the next two fiscals as estimated by Morgan

Stanley. By 2020 online commerce sales is expected to cross $120 bilion.

The three principal driving factors for this growth in

eCommerce sector of India are:

.Participation of niche companies in online tradingg

Unmatched FDI (foreign direct investment)

Uniform GST (Goods and Services Tax)

Participation of niche companies

With the increase in awareness about the benefits of online trading,

there has been a significant rise in investment in e-commerce business.

Hand in hand with offline trading, many established business houses have

setup online transaction channels. Online retailing is the 'in-thing' in today's

commerce. Every other day a new company is being set in the online retail

segment.

Specialization and customization are the underlining features of online

trading. e-commerce companies are specializing in exclusive items and have

consciously moved away from the 'one for all' concept. Every new company

is focusing on a definite item or targeting a particular demographic segment.

So instead of addressing universally, it is better to concentrate on a single

area and execute it to your best ability. Consumers prefer this kind of

preferential treatment and personalized attention.

India, being a land full of diversity offers ample scope for new

companies to join in this e-commerce business tirade. Business opportunities

are limitless considering the innumerable clothing, food, and cultural habits

of Indian communities.

Role of FD

Foreign direct investments (FDIs) till lately was not allowed in e

commerce for the single brand or multi-brand retail companies. It was only

allowed for B2B businesses. Now, FDI is allowed in cases of wholesale

ading or, in cases where involvement is limited to use of technology

Pattorm. The ever-expanding Indian e-commerce market has attracted

COmpanies from Europe and United States who are joining as

conglomerates.

ECommerce and Digital Marketing (YEMS Sem_

20
Though FDI has been successful in lending variety to online market of

India, their full partic'pation is limited by government laws.

Implementation of GST

A uniform taxation structure, which GST (Goods and Services Tax)

purports to achieve would contribute to the success of e-commerce business

in India. Online business is carried out pan-India, and a uniform tax

structure makes calculations easier and uniform. Same tax tor same product

or service across Indian Territory would certainly help in maintaining price

uniformity. For online business operators, differential tax structure was a

deterrent.

Inclusion of food and grocery in online retailing

Earlier food and grocery were never thought of as items for online

trading. However, with the change of working habits, and consumers opting

for adaptability and convenience, there are now innumerable small and

large e-commerce companies selling provisions and food items

Indian e-commerce industry is in a position to sustain itself as a viable

business opportunity not only for established names but even for start-ups.

1.13 TRENDS IN E-COMMERCE IN VARIOUS SECTORS:

RETAIL BANKING, TOURISM,GOVERNMENT, EDUCATION

RETAIL

(1) Certainty of Growth

A promising growth forecast is one of the primary findings made from

the study. The Indian retail sector is projected to double from $600 Billion

to $1 Trillion, by 2020. This rapid growth will be determined by factors such

as Income Growth, Urbanization, Nuclearization, and Attitudinal Shifs

Modern trade is also expected to grow 3 times, with Rapid Consumer

Evolution, Supply-side Evolution, and Positive Remulatonu1.13 TRENDS IN E-cOMMERCE IN VARIOUS

SECTORS:

RETAIL BANKING, TOURISM,GOVERNMENT, EDUCATION

RETAIL

(1) Certainty of Growth

A promising growth forecast is one of the primary findings made from

the study. The Indian retail sector is projected to double from $600 Billion

to $1 Trillion, by 2020. This rapid growth will be determined by factors such

as Income Growth, Urbanization, Nuclearization, and Attitudinal Shifts

Modern trade is also expected to grow 3 times, with Rapid Consume

Evolution, Supply-side Evolution, and Positive Regulatory Environment

being the drivers that will materialize this growth.

(2) Reality of Digital

The E-commerce market in India is expected to quadruple to S

Billion, over the next 5 years. With the rapid increase of smartphone use

competitive costs for connectivity, and expanded reach, internet users a

expected to reach a mark of 600 Million.

In our view, digital will increasingly drive offline retail sales as well. "

already easy to track phone calls to the store or to track the number

people looking for store directions.

Introduction to E - Commerce

(3) Challenge of Capability

Omni-channel business is becoming increasing relevant. Customers

expect a seamless experience and do not tend to distinguish between online

and physical channels, while shopping. Traditional strengths are insufficient

here. In addition to being omni-channel, a well conceptualized talent

management strategy is critical. It has been noticed that retail businesses

suffer from high attrition rates and limited capabilities in the middle and top

management, as a result of inadequate specialized training and experience

in the sector.

(4) Importance of Economics

Several economic challenges plague Indian modern trade. Please find

them listed below.

On the demand side:

The level of processing is not high enough, as the Indian consumer

gets used to modern trade.

Pricing and promotions are poorly executed, not leveraging on

customer willingness and purchasing power.

On the supply side:

Inflating costs of real estate and rentals.

Increasing costs due to low bargaining power with suppliers due to

limited scale.

High cost incurring supply chain due to poor connectivity, excess

and deficit inventory.

(5) The Glass Box And Brands-as-a-Culture

More and more, consumers are shopping with their emotions instead of

their wallets. Indeed, millennials' changing preferences and attitudes

regarding corporate responsibility, social consciousness, and more have

already

how!

HYPERLINK

impacted

"https://www.stellarising.com/blog/consumer-trends-2018-brands-inside-

the-glass-box" t"_blank retail brands present and position

themselves, The trend has resulted in brands having to equate their

nternal culture with their exterior identity, tuming companies into

what HYPERLINK "https://www.frameweb.com/news/brands-are-

ecoming-culture-coders-retail-trend-researcher-reveals" \tblank

lsome have dubbed "culture coders",E-Commerce and Digital Mar

22
(6) The Rise Of Subscription ECommere

oday's buyers are also increasingly seeking shopping that is tailored

their preferences and delivered directly to their doors. The confluen

of these trends has resulted in the emergence of subscription

commerce, businesses that curate products and ship them to custom

en

on a regular basis.

The sector! HYPERLINK "https://www.geekweek.com/2018/06/

rise-of-subscriptions-in-the-e-commerce-market. htmltblank

been witness to explosive expansion since 2010, growing from s

million in sales to more than $2.6 billion by 2016. According to a repo

HYPERLINK

Company, !

&

McKinsey

"https://www.mckinsey.com/industries/high-tech/our-insights/thinking

inside-the-subscription-box-new-research-on-ecommerce-consumers

"_blank" 115% of online consumers signed up for subscription servi

in 2017.

The trend goes hand in hand with users' search for experiences, as they

are more willing to shell out cash for a service that delivers a tangible

benefit along with a personalized offering.

BANKING

The Banking sector has been immensely benefited from the

implementation of superior technology during the recent past, almost ia

every nation in the world.

Following are the innovative services offered by the industry in the

recent past:

Electronic Payment Services -E Cheques

Nowadays we are hearing about e-governance, e-mail, e-commerce,

tail etc. In the same manner, a new technology is being developed in US to

introduction of e-cheque, which will éventually replace the conventions

paper cheque. India, as harbinger to the introduction of e-cheque, t

Negotiable Instruments Act has already been amended to include; trunca

cheque and E-cheque instruments.

Real Time Gross Settlement (RTGs)

Real Time Gross Settlement system, introduced in India s

March 2004, is a system through which electronics instructions can

given by banks to transfer funds from their account to the accoun

of

another bank. The RTGS system is maintained and operated by

the

RBI and provides a means of efficient and faster funds transfer am

onsg

Introduction to E - Commerce

23

banks facilitating their financial operations. As the name suggests,

funds transfer between banks takes place on a Real Time' basis.

Therefore, money can reach the beneficiary instantaneously and the

beneficiary's bank has the responsibility to credit the beneficiary's

account within two hours.

Electronic Funds Transfer (EFT)

Electronic Funds Transfer (EFT) is a system whereby anyone who

wants to make payment to another person/company etc. can approach

his bank and make cash payment or give

Instructions authorization to transfer funds directly from his own

account to the bank account of the receiver/beneficiary. Complete

details such as the receiver's name, bank account number, account

type (savings or current account), bank name, city, branch name etc.

should be furnished to the bank at the time of requesting for such

transfers so that the amount reaches the beneficiaries' account

correctly and faster. RBI is the service provider of EFT.

Electronic Clearing Service (ECS)

Electronic Clearing Service is a retail payment system that can be

used to make bulk payments/receipts of a similar nature especially

where each individual payment is of a repetitive nature and of

relatively smaller amount. This facility is meant for companies and

government departments to make/receive large volumes of payments

rather than for funds transfers by individuals

Automatic Teller Machine (ATM)

Automatic Teller Machine is the most popular devise in India,

which enables the customers to withdraw their money 24 hours a day

.sm=l. Tele Banking

Tele Banking facilitates the customer to do entire non-cash relate

banking on telephone.

Under this devise Automatic Voice Recorder is used for simple

queries and transactions.

For complicated queries and transactions, manned phone

terminals are used.

Electronic Data Interchange (EDI)

Electronic Data Interchange is the electronic exchange of busines

documents like purchase order, invoices, shipping notices, receiving

advices etc. in a standard, computer processed, universally accepted

format between trading partners. EDI can also be used to transmit

financial information and payments in electronic form

TOURISM
When it comes to travel, the old days of taking a trip into the city to

book flights and accommodation many months in advance is no longer the

dominant trend. As such, tourism operators need to be prepared to invest

some time and money into new forms of tourism marketing, to benefit from

trends now and into the future.

Some of the changes afoot in the tourism industry include:

Social media tools

More than ever people are able to do their own travel research using

the internet and social sites such as TripAdvisor, Facebook and Googlet.

One of the benefits of social media is its 'word-of-mouth' aspect as uses

post reviews and engage in dialogue about their travel experiences.

It's important to recognise that social media sites are based arourn

online community and relationships. For airlines and other operators to

successful in this arena, they may need to invest substantial time and mone

into building good business models, rather than just using these sites

quick advertising platforms.

Deals and discounts

Booking at the last minute and taking advantage of special dea

becoming more popular with travellers. For tourism operators, special a

may need to be seen more as a means of getting market attention, than as

direct money-spinner.

Introduction to E - Commerce

Mobile tourism

Travellers these days are starting to make more use of the web through

mobile devices, such as smart phones or iPads. The good thing about

mobile is that travellers are able to utilise it not only for the initial

researching and booking, but also during trips to find accommodation and

local attractions and activities.

Green-friendly travel
A number of years ago, green issues were mostly the preserve of

environmentalists and hippies. These days many regular travellers are

interested in the green side of tourism, and they want to be sure that the

providers they are using are environmentally responsible in their business

practices.

Education

(a) E-Commerce in education sector can be called as E-leaming. As

computer ownership grows across the globe e-learning becomes

increasingly viable and accessible.

(b) Internet connection speeds are increasing, and with that, opportunities

for more multimedia training methods arise.

(c) With the immense improvement of mobile networks in the past few

years and the increase in telecommuting, taking all the features of e

learning on the road is a reality with smart phones and other portable

device.

(d) Mobile learning: Mobile leaming is being embraced in India in a big

way. According to Ambient Insight's research India has bypassed e

learning and is headed straight for mobile learning. 86% of corporate

employees in India have expressed their preference to lean via mobileAdvantage of e-learning are:

() Appeal to audio-visual senses:

By using smart boards in a

classroom, we are appealing to both the audio sense and visual senses

of students. Learning in such a way is very effective as the information

is strongly embedded in kids mind this way

2) No wastage of time: In traditional type of classroom, a lot of time

was wasted in drawing diagrams on the black/white boards, whereas in

Smart-boards, diagrams are in memcry and thus time is utilized more

for the active learning part.

E.Commerce and Digital Marketing (YBMS Sem

26

m-

(3) No chalk Dust: Some teachers and even front ine students used

suffer from chalk dust getting into their eyes and lungs. This had

effect on health. Using smart-board we are eliminating this health issu

(4) Virtual field trips: Students are taken virtually to tield trips wh

Teaching. for instance, a teacher is covering a lesson on desert animal

using smart board, we could give a tour of desert ike Sahara .

Kalahari to teach this topic.

(5) Marker Feature: Smart board teaching is not see-only, we cou ile

special markers to underline or mark an important location whil

teaching.We can even write on it to make the concept clearer.

(6) Inbuilt library: Smart board has an inbuilt library in it which enable

a teacher to have an instant look at it in case of requirement. He/ sh

may not have to scan a real library for this.

(7) Active learning: Smart boards leads to active learning process where

both the teacher and the students are involved. This leads to strong

reinforcement of information in students.

Conclusion:

Smart boards have many advantages and every class room should have

it for the ease of teaching learning process; though strongly believe that onl

a strong motivation is the basic of any learning process and can be caried

out in any situation.

1.14 MOBILE COMMERCE (M-COMMERCE

M-COMMERCE

Meaning

(a) Mobile Commerce, or in short M-commerce, can be described as

business transactions that are made via mobile devices' or optimizing

your online business for mobile phones as an application.

(b) M-commerce is the buying and selling of goads and services throug

handheld devices such as cellular telephone and PDAS, lapo

computers, messaging or page devices and handheld computers such

palmtops, tablet, PCs etc.

(c) M-Commerce enables users to access the internet without needing

find a place to plug in. M-Commerce applies to online finan

transactions, shopping or the electronic transfer of funds using a mo

device.

(d) It has the capability and the potential to have all the benefit of B

B2C application.

Introduction to E - Commerce

27

Definition:

According to Web Agency, 2001, "M-Commerce is the use of

information technologies for the purpose of mobile integration off

different value chains and business processes and for the purpose

of management of business relationship ".

Examples of M-commerce:

in app purchasing:

mobile baning:

digital wallet;

Reservation related enquiries; 1.15 BENEFITS OF M-COMMERCE

(1) Benefit to retailers

(a) Convenience: With just a few clicks on mobile devices, customers

can already do shopping, banking, download media files and more

than that. M-commerce also benefits retailers by many of their

outstanding features compared with responsive website and

mobile site.

(b) Flexible Accessibility: User can be accessible via mobile

devices and at the same time be accessible online too through

logging on to various mobile messengers and other networking

platforms. On the other hand, the user may also choose not to be

accessible by shutting down his mobile device, which at times can

be a good thing.

(c) Easy Connectivity: As long as the network signal is available

mobile devices can connect and do commerce transactions not

only mobile to mobile but also mobile to other devices. No need

for modem or WI-Fl connectivity set up.

(d) Personalization: Each mobile device is usually dedicated to a

specific user so that it is personal. Users can do whatever they

want with their handheld devices: modify the wallpaper, change

view settings or modify contact information as you send emails or

e-payments.

E.Commerce and Digital Marketing (YBMS Sem-

(e) Time Efficient: Doing M-Commerce transactions do not requ

the users to plug anything like personal computer or wait for s

laptop to load.

(9 Wider variety: M-commerce offers wider variety of products and

services for the users to browse through and take a decision.

(2) Benefits to business:

(a) Boosting retail activity: In the context of economic difficultie

e-commerce solution with smartphones and software application

plays an important role in retail market, creating close relationshi

between consumers, retailers and brand merchandise throuo

features, to get the success in both earning high profit and

providing great mobile shopping experience.

As a result, Investments in mobile platforms for B2C transaction

are defined as strategic investment direction in the future, a

indicated in the proportion of investment in mobile platform

accounted for 68% of the investing in research and new

technology platforms.

(b) Convenience of electronic payment services on mobile

19% of people surveyed knew about the payment services o

mobile, 10% expressed interest to learn and to use mobik

payment services. By applying necessary plugins, payment can be

transferred easier and more secure than ever.

Due to the fast development, this type of commerce also suppors

almost all popular payment method for customers to pay bil

electronically, purchase prepaid cards as mobile phone cards t

solve transactions complex.

(c) Sales of digital content on mobile devices : Besides retal

digital content is a rich resource that firms can use with mobil

commerce. By strengthening the convenience function of mobl

devices, sellers can sell the content and buyers can use anytim

they want. Users pay directly for each digital content or register

users to use the service online digital content.

Conclusion:

It can't be denied that Mobile Commerce is the very rapidly gro

field in today's scenario because of unique characteristics and

outstanding advantages of M-Commerce. There are all kind of treads

as business-to-consumer, business-to-business and consumer-to-consum

M-commerce. Although it shares security concerns with other technologe

the same field. M-Commerce concept has changed the way or

f doi

business in this modern world. 1.16 TRENDS IN M.COMMERCE

Mobile e-commerce sales account for 34.5% of total ecommerce sales in

2017, and that number is growing. By 2021, mobile ecommeroe sales are
expected to account for 54%% of total ecommerce sales.

(1) Mobile payments: The increase in use of mobile devices to make payments

clearly indicates that market trends are in favor of mobile commerce. Users

spent around US$12 billion in 2012 and more than US$90 billion at the

beginning of 2017. Thať's a sharp increase of 48 percent in the mobile

payment trends

(2) Smartphone users: The smartphone users are booming now-a-days. The

number of smartphone users in 2014 was 1.5 billion, but it is forecast to

grow to 2.32 billion in 2017 and onwards.

(3) E-commerce on smart phones: With the increase in smartphone usage,

e-commerce activities should also show a proportional increase if trends are

for mobile commerce. Fortunately, against US$123 billion in 2012, the

projection for 2017 is US$151 billion.

(4) B2B mobile commerce: The B2C market was initially expected to

leverage m-commerce technologies. But it seems that the B2B market is the

one doing so, as recent trends show. Seventy percent of millennials are

using m-commerce channels to buy products through the B2B marketing

network.

(5) Mobile app market: Mobile apps generate more revenue as compared to

desktops and mobile browsers, Apps can certainly play a key role in retailers

mobile strategies, particularly for their most loyal customers

(6) Use of Secure Payment Methods: The secure payment methods use

proximity to know when a consumer is in the store and allow for almost

frictionless check out. This provide

better customer experiences at

checkout and is the future of mobile payment.

Loyalty card resurgence: Marketers can now deliver mobile loyalty cards,

related rewards/points statuses and rewards certificates directly to customers

phones. This drives average visits per customer and extends the over all life
span of the customer relationship. Customers expect loyalty programs to be

mobile friendly, allowing them to eam and save points to their smartphone

in real time.

o In-store personalization: Apps will become personalized and more helpfu

th-store and will adapt based on a customer's location. For example, if a

nsumer has a retailer's app, the app experience will change once he or

sne enters a store. The app transforms into an in-store locator with a map of

he store, alerting customers where items are located. tyt

Emergence of Apps: Apps can certainly play a key role in retailers' mobile

strategies, particularly for their most loyal customers.

E.Commerce and Digital Marketing (TYBMSS

em-y

S0

REVIEW QUESTIONS]

Q.1. Objective Type Questions

(A) Multiple Choice Questions:

)1CT means the Information and Communication ....

****

(a) Techniques (b) Technology (c) Tendency (d) Trends

(2) E-commerce includes electronic trading of botn and electro

materials.

(d) computers

(c) fusions

(a) Goods

(b) services

is to integrate ents

(3) The main aim of the competitive structure of ..

****

business life cycle.

(6) e-commerce (c) e-market (d) e-business

(a) e-trade

refers to exchanges involving transactions berween and among s

(4).

g the

consumers.

c) c2B (d) c2C

(a) B2B

(b) B2C

(5) Due to internet, market entry will be .without any geographical limit,

(d) impossible

(b) complicate (c) difficult

(a) Easier

E-commerce helps the business firm to . inventories and overhea

(6)

costs.

(b) remains constant (c) reduce (d) zero

(a) Increase

7)

There is global reach just by creating a ... and uploading it on th

Server.

(6) computer cyber

(a) Stationery shop

(c) website

(d) electronic firm

(8) The fundamental disadvantage of e-commerce is to protect dan

from..

(a) Scrape

(b) virus
(c)water

(d) leakages

(9) M-commerce is the exchange of goods and services through the u

of. technology. () B2C

(a)B2B

Due to internet, market entry will be .. without any geographical limit.

(5)

(d) impossible

(b) complicate (c) difficult

(a) Easier

inventories and overhea

(6) E-commerce helps the business firm to.

costs.

(d) zero

(b) remains constant (c) reduce

(a) Increase

and uploading it on t

(7) There is global reach just by creating a

server.

(a) Stationery shop

(b) computer cyber

(c)website

(d) electronic firm

(8) The fundamental disadvantage of e-commerce is to protect dan

from n**

(a) Scrape

(b) virus

(c) water

(d) leakages
(9) M-commerce is the exchange of goods and services through the

of.. . technology.

(a) Television (b) telephone

(c) radio

(d) mobile

(10) ATM provides services to the customers to.. their money 24 no

aday.

(a) Deposit

(b) withdraw

(c) transfer

(d) exchange

(11) ECS is a .. payment system in the banking sector.

(a) Bulk

(b) whole

(c) retailt (d) huge

(12) RTGS system is maintained and operated by .

*** in India.

(a) UBI

(b)

SBI

(c) MBI d) RBI

Ans.(1 b) (2 a) (3-c) (4- d) (5-a) (6-c) (7 - c) (8- b) (9-

b)(11 c) (12- d).

Introduction to E - Commerce

31

(B) Fill in the blanks:

(1) Today.1s considered as a necessary component of business strategy.

EDI stands for Data Interchange.

E-Commerce is used . in everyday of life.

3)

B2B refers to the on-line business transaction between..

4)

There is. COntact with customers in e-commerce through internet

(5)

.is treated as a functional and operational medium for consumers

6)

ine-commerce.

************** .as a global village from where anyone

(7) E-commerce creates the

canbuy anything.

(8) The electronic payment on the internet is facilitated by payment

.berween tirm &zamp; consumers.

(9) By e-commerce, the customers are worried about their online. ******

(10) E-business cannot service without a .. CUstomer.

(11) RTGS means Real Time Gross. stem.

(12) Tele-banking faclitates the customers to do entire non-cash banking on

(13) M-commerce is simply an e-commerce over

(14) means an unauthorised access.

(15) On-line ordering can be secured by Secure Socket . technology.

(16) E-business is a broader term than.

(17) Strategic . is a process of looking into the future on the basis

ofcurrent trends.

(18) Dell.com is an e-commerce site useful for business to type of market.

(19) facilitate production of goods and services to satisfy the

customerdemand.

(20) Supply chain . creates linkage between suppliers and retailers.

Ans: (1) e-commerce (2) Electronic (3) everywhere (4) businesses (5) direct
(6) Internet (7) whole world (8) gateway (9) privacy (10) loyal (11) Settlement

(12) telephone (13) mobile phones (14) Hacking (15) Layer (16) e-commerce

(17) Planning (18) Consumer (19) E-marketing (20) Management

(C) Match the Column:

(1) business to consumer

aE-commerce

(2) buying/selling through handled devices

6) Computer network

(3) Automatic Teller Machine

(c) B2C

(4) consumer to consumer

(d) ATM

(5) social media tools

e) M-commerce

(6) 24 Xx 7 customer service

9 Facebook

(7) use of electronic equipment

(8) use of electronic media

Ans. (a 6) (b - 8) (c -1) (d -3) (e -2) (f 5)