INTRODUCTION TO E- BUSINESS AND

E-COMMERCE

Dr.Biswajit Ghosh
 Agenda

• The rise and fall of the dot.com economy

• e-Business vs e-Commerce vs Internet
• What makes e-Business different from business?
Click to add text
• Successful business models for e-Business
• The drivers of benefit for e-Business applications
• E-commerce
 Why Study E-commerce?
 E-commerce technology is different, more
powerful than previous technologies
 E-commerce brings fundamental changes to
commerce
 Traditional commerce:
– Consumer as passive targets
– Mass-marketing driven
– Sales-force driven
– Fixed prices
– Information asymmetry
 E- Commerce
Activities of E-Commerce are :
Buying and selling product online
Online ticketing
Online Payment
Paying different taxes
Online accounting software
Online customer support
 E- Commerce
E Commerce stands for Electronic Commerce.

E-commerce is the transaction of goods and services on the internet.

 Also known as electronic commerce and e-tail, e-commerce typically

refers to the sale of physical goods on the internet although the term can
be used to describe any commercial transaction done online.
Despite a recent slowdown in the industry’s growth rate, total e-
commerce sales (retail and digital services) are projected to amount to
roughly $765 billion by 2021. 
Examples of E-Commerce are online retailers like amazon, flipkart,
Myntra, paytm mall, seller of digital goods like ebooks, online service etc.
 E- business
• E-business is the facilitation of business through the use of the internet
and online technology.
• E-business is not conducted exclusively online, but rather, uses the
power of the internet to enhance a business that is also run offline
• E-business, similarly to e-commerce, also comes in a variety of forms
that make it relevant for companies in a variety of industries.
Examples of E-Business are e-commerce companies and its various
internal business activities, auction site, classified site, software and
hardware developer site etc.
• Activities of E-Commerce are :
• Online store setup Customer education Buying and selling product
• Monetary business transaction Supply Chain Management
• E-mail marketing
Traditional Business and E-business
 Types of e-business models
• Pure Play – an e-business model where all efforts and resources are
invested in one line of business. For example, a business that only
sells custom baseball caps and nothing else would be considered a
pure play e-business (assuming the business makes some sales online
and some sales offline).

• Bricks and Clicks – an e-business model that operates and generates

sales both online and offline. For example, a physical store that sells
baby and children’s clothing, but that also allows customers to place
orders and place purchases through an online store.
Intranet Internet Extranet
Intranet Internet Extranet
 Intranet Internet Extranet
Internet: A global network which is available to anyone who
wants to access information

Intranet :An intranet is unique to an organization or group of

people who work together at a place

Extranet : is for individuals or group of personnel who want to

send private information
 Understanding E-commerce:
Organizing Themes
 Technology:
– Development and mastery of digital computing and
communications technology
 Business:
– New technologies present businesses with new ways of
organizing production and transacting business
 Society:
– Intellectual property, individual privacy, public welfare
policy
 Amazon: A Picture Is Worth a
Thousand Words

 Have you used Amazon or any other websites? What are your
main interests?
 Have you purchased anything based on a recommendation?
 Why do Amazon links drive more purchasing than Facebook
links?
 What Is E-commerce?

 Use of Internet and Web to transact business

 More formally:
– Digitally enabled commercial transactions
between and among organizations and
individuals
“When history is written, the creation of
the Internet may be ranked alongside
Johann Gutenberg’s printing press and
Marconi’s radio as among the major
advancements in human
communication.”
Roanoke Times,
March 1, 1997
Johann Gutenberg’s printing press
Marconi’s radio
 Origins and Growth of E-
commerce
 Precursors:
– Baxter Healthcare
– Electronic Data Interchange (EDI)
– French Minitel (1980s videotex system)
– None had functionality of Internet
 1995: Beginning of e-commerce
– First sales of banner advertisements
 E-commerce fastest growing form of
commerce in United States
 The Internet
World Wide Web

– A worldwide public network that

connects private networks
– Originated in the late 1960s as
ARPANET
– Managed by the National Science
Foundation in the 1980s and early
1990s as NSFnet
– Connected colleges, universities, and
research centers
– Commercial activity was prohibited
until 1991
E-services
Commercial History of the Internet
 Internet … DISRUPTIVE
TECHNOLOGY ?

• How can a company like Polaroid go

bankrupt?

• Digital Darwinism – implies that

organizations which cannot adapt to the
new demands placed on them for surviving
in the information age are doomed to
extinction
 1997-1999 - e-Business Mania
Strikes!
• E-Business becomes a major economic force
– NASDAQ hits 5,000
• Venture capital in abundance
• Focus on new economy, new business models, growth
potential
– no attention to traditional fundamentals
– bricks and mortar viewed as liability
• Traditional businesses shake in their boots at the threat of
new non-traditional nimble bold competitors
• Dot.Com start-ups in every field
• Dot.Com multi-millionaires made over night
 2000 - The Dot.Com Bubble
Bursts!
• The Demise of Dot Com Retailers. Weak financials, intense competition, and
investor flight will drive many of today's online retailers out of business in 2000.
Those that survive must refocus funding on building hard assets to achieve scale,
service, and speed.
• Wall Street will run out of patience. Financial markets exasperated with non-
existent online profits will turn a deaf ear to persistent "investment mode" rhetoric
and soundly punish merchants who bleed red ink. Recent stock disasters like Value
America and eToys -- whose market caps as of January 11, 2000, are down $3.1
billion and $7.7 billion respectively from 1999 highs -- serve as bad omens for online
stores that lack a unique approach or technology.
• The revenge of the brick-and-mortars will begin. The narrowing of the playing
field in 2000 will rationalize but not resolve online retail competition. It will usher in
a new era characterized by a few large players that exploit deep customer
relationships and a presence across multiple channels to entrench themselves. To
measure their success, these firms will ditch new economy platitudes in favor of
unfashionable old metrics like margins, profits, and customer retention costs.
 Valuations Plummet
Amazon.com - AMZN Pets.com - IPET

Priceline.com - PCLN eBay.com - eBay

 Lessons Learned

• Fundamentals important, bottom line important

• Traditional bricks and mortar assets can represent
significant competitive strengths
– logistics, inventory, distribution
– choice in terms of customer access
– strength and brand
• e-Business becomes an element of overall business
strategy - not the total business strategy
• e-Business still widely seen as a way of transforming
business operations and thinking
‘Bricks and Clicks’ - A Hybrid Model

Traditional Pure Web - Dot.com

“Bricks and Mortar” “Clicks”

Combines strengths Hybrid

from traditional and
pure Web approaches
“Bricks and Clicks”
Emergence of the Hybrid
Strategy
 E-commerce: A Brief History
(cont.)
• 2001–2006: Consolidation
Emphasis on business-driven approach
Traditional large firms expand presence
Start-up financing shrinks up
More complex products and services sold
Growth of search engine advertising
Business Web presences expand to include
e-mail, display and search advertising, and
limited community feedback features
 E-commerce: A Brief History
(cont.)
• 2007–Present: Reinvention
Rapid growth of:
• Online social networks
• Mobile platform
• Local commerce

Entertainment content develops as source of

revenues
Transformation of marketing
• Coordinated marketing on social, mobile, local platforms
• Analytic technologies
 E-commerce Trends 2013–2014
• Expansion of social, local, and mobile
e-commerce
• Mobile platform begins to rival PC platform
• Continued growth of cloud computing
• Explosive growth in “Big Data”
• E-books gain wide acceptance
• Continued growth of user-generated content
 Why Study E-commerce?
 E-commerce technology is different, more
powerful than previous technologies
 E-commerce brings fundamental changes to
commerce
 Traditional commerce:
– Consumer as passive targets
– Mass-marketing driven
– Sales-force driven
– Fixed prices
– Information asymmetry
 Eight Unique Features of
E-commerce Technology

1. Ubiquity
2. Global reach
3. Universal standards
4. Information richness
5. Interactivity
6. Information density
7. Personalization/customization
8. Social technology
 Web 2.0

 User-centered applications and social media

technologies
– User-generated content and communication
– Highly interactive, social communities
– Large audiences; yet mostly unproven business
models
– Examples: Twitter, YouTube, Instagram,
Wikipedia, Tumblr
 Types of E-commerce
May be classified by market relationship or
technology
 Business-to-Consumer (B2C)
 Business-to-Business (B2B)
 Consumer-to-Consumer (C2C)
 Social e-commerce
 Mobile e-commerce (M-commerce)
 Local e-commerce
The Growth of B2C E-commerce
Figure 1.3, Page 20
 The Growth of B2B E-commerce
Figure 1.4, Page 21

SOURCE: Based on data from U.S. Census Bureau, 2013; authors’ estimates.
 The Mobile Platform

 Most recent development in Internet

infrastructure
 Enables access to the Internet via wireless
networks or cell-phone service
 Mobile devices include
– Tablets
– Smartphones
– Ultra-lightweight laptops
The Internet and
the Evolution
of Corporate
Computing
Figure 1.11, Page 41

Slide 1-41
e-Commerce vs eBusiness
 e-Business vs e-Commerce

Three definitions of the relationship between e-commerce and e-

Figure 1.4
business
 e-Business vs e-Commerce
E-Business:

Improving business
E-Commerce: performance through low cost and
• marketing open connectivity:
• selling • New technologies in the value chain
• buying of • Connecting value chains across
products and businesses
services on in order to :
• Improve service/reduce costs
the Internet
• Open new channels
• Transform competitive
landscapes

e-Business is more than selling and marketing online!

 E-Business Basics
• E-commerce – Process of buying or selling
goods or services across a
telecommunications network
• E-business – Widest spectrum of business
activities using Internet and Web technologies
• Many technologies facilitate e-business
– Electronic funds transfer (EFT)
– Electronic data interchange (EDI)
– Internet / World Wide Web
 e-Business vs e MKTG
• EB=EC+BI+CRM+SCM+ERP+ HER+KM
– EB = E-Business
– EC = E-Commerce (transactions, e-tailing)
– BI = Business Intelligence
– CRM = Customer Relationship Mgmt - uses digital processes
and integrates customer information gathered at each touch
point.
– SCM = Supply Chain Management
– ERP = Enterprise Resource Planning (SAP)
– HER = Virtual HR
– KM = Knowledge Management
 Phases of e-Business
Development
Four stage model in E-Business maturity relates business value to e-business leverage
Convergence
Cross-Industry
Supplier/Customer
Just under 15% are in the convergence
integration phase.
Connections to suppliers
and customers are fully E- Transformation
Over 50% are in the channel Business enabled.
phase of Industry transformation,
E-Business development achieve competitive
Business Value

with a web presence but no advantage

infrastructure tie-in.
Integration
er
ir v
Integrate with D
customers
Channel and suppliers
Brochureware
and buying /selling
ler
Enab

E-Business Leverage
Source: PricewaterhouseCoopers
Phases of e-Business
Development
eBusiness vs Business
• Generate additional Revenues The Benefits of e-
• New markets Business
• New products
• New customers
• Reduce Costs (Integration and ‘Collaboration’)
• Process efficiency
• Reduce IT variety and -complexity
• Synergies with other initiatives
• Customer Retention (‘Added Services’ and ‘Virtual Community’)
• Know more about your customers
• Integrated channel management
• Proactive and personalized offerings
• Improve Image / Position Brand
• Applying innovative technologies
• Leadership enterprise
• Address younger customer segments
• Not to miss the boat
• Keeping options open
• Acquire know-how
• Focused investments
 Business vs e-Business
Re- Re-
Assess Assess

‘Traditional’: Implement ‘E-Business’: Implement

Implementation Implementation
Planning Planning

Opportunity Opportunity
Analysis Analysis

Understand Business Understand Electronic Business

Traditional business organization Characteristics of an “Electronic Business

‘develop step by step’: journey”:
 Definitions are clear  Definitions of the future are ‘fuzzy’
 No change in the business and technology  Permanent and unpredictable change in the
environment business and technology environment
 High time pressure  Time to market and speed are major competitive factors
 Continuous learning  Continuous learning & fast adaptation is required

E-Business is not a project - but rather a journey that requires vision and non-linear procedures
 Experimentation and Learning
Short Strategy Formulation loops

Product
awareness

development

Being a
Procurement Marketing
learning

learning

Emerging e-Strategy Supplier network

Inbound
logistics Customer network
Connected Enterprise
Outbound
logistics

Production Sales

Customer
service

Continuous experimentation through specific Solutions

Prototyping
Types of Business model
E-business types:

C2C B2B
B2C
C2B
CONSUMERS
BUSINESS
C2 C
G2

G
G

B
B2
G2
GOVERNMENT G2G
 Summary and examples of transaction alternatives between businesses,
Figure 1.2
consumers and governmental organizations
 E-Commerce
Management issues
• How does e-commerce strategy differ from
traditional business strategy?
• How should we integrate e-commerce
strategy with existing business and IS
strategy?
 E-commerce and the Internet

THE GROWTH OF E-COMMERCE

FIGURE 10-1 Retail e-commerce revenues grew 15–25 percent per year until the recession of 2008–2009, when they
slowed measurably. In 2010, e-commerce revenues are growing again at an estimated 12 percent annually.

57 © Pearson Education 2012

Relationship between e-commerce strategy and other
strategies
 Sell-side e-commerce strategy

• E-commerce is a channel strategy

• Objectives for online contribution percentage
should drive our strategy
• Our e-commerce strategy defines how we should
• Hit our channel leads and sales targets
– Acquisition, Conversion, Retention, Service, Profitability
• Communicate benefits of using this channel
• Prioritize products available through channel
• Prioritize audiences targeted through channel
• Select partners for this channel
• Channel strategy thrives on differentials
• BUT, need to manage channel integration
Buy-side e-commerce strategy or e-supply chain
management strategy
• Buy-side e-commerce strategy is about maximizing
operational efficiencies while improving customer
service quality
• Operational efficiency KPIs should drive our strategy
• Our buy-side e-commerce strategy defines how we
should
• Automate internal processes
• Link internal resource management systems with
external purchasing systems
• Prioritize suppliers / partners collaborating using this
channel
• Prioritize applications for e-SCM – create a roadmap
• Involves selection of appropriate strategic partners
 OPENING CASE

QUESTIONS
1. What is Amazon’s e-business model?

2. How can Amazon use m-commerce to influence

its business?

3. What are some of the business challenges facing

Amazon?
 OPENING CASE QUESTIONS
Amazon

• http://www.youtube.com/watch?
v=YlgkfOr_GLY

• http://www.youtube.com/watch?
v=zknLfU7GJIw
Figure Matrix for evaluating e-business strategy alternatives
Source: Econsultancy (2008a)
 E-business trends
Customer focus is on price.

Customer is moving away from brand loyalty.

Customer is looking for discount , incentive, points, free shopping,

and coupon etc.

India's e-commerce orders volume increased by 36% in the last

quarter of 2020, with the personal care, beauty and wellness
(PCB&W) segment being the largest beneficiary.

Online retail sales in India is expected to grow 31% to touch US$

32.70 billion in 2018, led by Flipkart, Amazon India and Paytm Mall.
E-business trends
E-business trends
E-business trends
E-business trends
E-business trends
E-business trends
 Administrative and technological
implications of electronic business

Electronic commerce draws on technologies such as 

mobile commerce,
electronic funds transfer,
supply chain management,
Internet marketing,
online transaction processing,
electronic data interchange (EDI),
inventory management systems,
and automated data collection systems.
 Mobile Commerce: Overview
• Mobile commerce (m-commerce, m-business)—any e-
commerce done in a wireless environment, especially via the
Internet
– Can be done via the Internet, private communication lines,
smart cards, etc.
– Creates opportunity to deliver new services to existing
customers and to attract new ones
Mobile Interfaces
 Classification of M-Commerce
• Financial Services
e.g. Secure banking services
• Entertainment
e.g. Mobile Gambling
• Shopping
e.g. Purchase of goods
• Information
e.g. Local Information
• Payment
e.g. Electronic Wallet
• Advertising
e.g. Intelligent Advertising
Characteristics of M-Commerce
Value-added
Characteristics attributes
Product and service
localization
Mobility
Product personalization

Mobile Ubiquity enhancement

Commerce
Instant connectivity

Reachability Convenience
NextBus Operational Model
Localization
Connectivity

Ubiquity

Convenience
 Enabling Technologies
Introduce two transmission mode, GPRS and W-CDMA
• GPRS (General Packet Radio Service)
– A step between GSM and 3G cellular networks.
– Transmission rate via a GSM network within 9.6Kbps ~ 115Kbps.
– GPRS supports the widespread range of bandwidth, it is a effective
application under the limited bandwidth.
– Mobile phone can receive and transmit data at the same time. (e.g.
make a phone call and receives e-mail at the same time)
• W-CDMA (Wideband Code-Division Multiple Acces)
– the transmission technology for third generation (3G) UMTS mobile
communication.
– The transmission rate is up to 2Mbps, it makes mobile multimedia
grows rapidly.
 Enabling Technologies (cont.)
WAP(Protocol) and i-mode(Service)
• WAP(Wireless Application Protocol)
– It is a open and standard wireless application software protocol.
– The WAP system are composed of two main factors ：
• WML （ Wireless Markup Language ） : similar to HTML
• WAP Gateway / Proxy : to change the webpage source code to the suitable
one.
– Need a connecting action
– Payment according to time used.
• i-mode
– The first packet-based, always-on, mobile Internet service
– Various services available : Banking, game, wallpaper, music….
– Payment according to packets received.
 Enabling Technologies (cont.)
• Other related technologies
– J2ME (Java 2 Micro Edition)
A kind of programming language used in small, connectable consumer
and embedded devices. it makes mobile phones have a ability to
execute program.
– XML （ eXtensible Markup Language ）
A Standard for structured document interchange on the Web. It makes
the description language used by different browsers can be changed
more quickly.
– IPv6
IPv4 use 32bit, this is not enough. IPv6 expand it to 128bit, so that
every mobile phone can get its own IP.
EFT in E Commerce

What is EFT?

An electronic funds transfer (also known as EFT) is a system for transferring

money from one bank to another without using paper money. Its use has
become widespread with the arrival of personal computers, cheap networks,
improved cryptography and the Internet. Since it is affected by financial
fraud, the electronic funds transfer act was implemented. This federal law
protects the consumer in case a problem arises at the moment of the
transaction.
The history electronic funds transfer originated from the common funds
transfer of the past. Since the 19th century, and with the help of telegraphs,
funds transfers were an usual thing in commercial transactions. Finally, it
migrated itself to computers and became the electronic money transfers of
today.
Benefits for customers and country when applying Internet
technology in the businesses

The Advantages of E-commerce For a Customer:

E-commerce ensures customers can find everything needed in one place, without a necessity to even
get up from the couch. This is probably one of the greatest advantages of online shopping.

Choose From Wide Range of Goods:

E-commerce allows customers to choose a product or service they want, from any supplier, anywhere
in the world. 

And the freedom to browse without any stress or hurry is priceless.

You can also get a big variety of products, since there is no space limitation with e-commerce. 

Enjoy Simplicity and Comfort:

Customers can buy any product from any e-commerce in the world without having to leave their
workplace or home. Due to bad weather, economic and health situations, or any other reason, many
people cannot go shopping. A great showcase is a Covid19 pandemic, when brick-and-mortar stores
were closed for months. 

There is also no need for cash. You may simply fill in credit or debit card details and make an
immediate payment.
Benefits for customers and country when applying Internet
technology in the businesses

The Advantages of E-commerce For a Customer:

Save Money : Products offered over the Internet are generally cheaper than those in the shops. So,
you can save your money. Costs incurred by a provider of products or services in cooperation with an
intermediary are paid by the customer. When there are no middlemen, the customer may not have to
spend that much.

Save Time: Saving time is one of the major benefits of e-commerce. Customers can order anything
you need online, even groceries to cook. E-shops are open 24/7/365, so you can shop at any time.
There is no issue with ordering in the evening or even during the night. 

Get Detailed Information : The Internet is used as the main tool for making e-commerce
transactions. It allows customers to search for product information, compare prices and benefits and
ultimately evaluate whether it is really worth the money. 

There is also warranty information that contains product descriptions and other details. All
customers therefore may be fully aware of the conditions before purchasing the product. This way, a
change of any dispute regarding guarantees or other matters drops to minimum. 

You can also modify their orders online and track the delivery status. If there is any doubt about
product handling, you may contact the company, for example through tools like Live Chat.
Benefits for customers and country when applying Internet
technology in the businesses

The Advantages of E-commerce For a Country:

Provides job opportunities E-commerce bridges the gap between the job seekers and job
givers in the society. Human resources are able to get themselves placed in any
organization by posting resumes through internet, Some organizations also permit people
to work from their home. E-commerce through internet provides a global wide network to
identify and train human resource too.

Promotes cordial relationship: E-commerce enables people to send gifts, greetings and
gift vouchers to friends and relatives anywhere in the world. This promotes cordial
relationship between and among individuals in the society.

Provides a wealth of information: People through internet are able to access any
information, say from tourism to financial products. Access of global information at lower
cost, just by click of a button enhances the knowledge of the people and helps them to
transform into a part of a knowledge-based society.

Reduces regional imbalances: Developing countries provide several tax concessions for
setting up call centers in remote and rural areas. Call centers provide a lot of employment
opportunities. The revenues generated by the nation are allocated towards the development
of infrastructure in the rural areas. It brings balanced regional development in the
developing countries.
Benefits for customers and country when applying Internet
technology in the businesses

The Advantages of E-commerce For a Country:

 Reduces unemployment:
Business organizations require talented human resources to develop and maintain the
website of their business. Though business processes are automated, business organization
require people to attend to customer queries. The establishment of call centers in
developing countries reduces the unemployment problem of those countries.

Economic development:
Business organizations are able to attract customers from anywhere in the world. Increase
in customer base results in increased production. This generates greater revenues to the
organizations and fosters expansion in national income. Expansion of national income and
increase in the volume of production and services accelerate economic growth.

Availability of goods:
Through internet people can buy goods from anywhere in the world. The goods which are
not available locally can be purchased from any part of the world. The needs of the
customers are met by accessing the internet. So, business organizations cannot ride on
customers by citing shortage of goods in the local market as the reason.
 E-Governance
• What is Governance?
• Governance refers to the processes of governing in which policies are made and implemented. In
this process of governing the role of civil society, state and market is very important.
• All these three important aspects of governance take a very crucial role in the decision making or
policy making process and its implementation process as well. It has several types such as
participatory governance, corporate governance, environmental governance, good governance, e-
governance etc. 

• Types of E Governance
• E-Governance can be considered as the social inclusive policy for development of transparency and
accountability of both people in society and administration. This policy involves providing the
services to the people with collection of information through the institutional and communicational
development.  

• It provides quality services in several ways. Those ways are also called as types of e-governance.
These are mentioned below-
• G2C (Government to Citizen) 
• G2G (Government to Government)
• G2B (Government to Business) 
• G2E (Government to Employee) 
 Objectives of E Governance

• The objectives of e governance are as follows-

• One of the basic objectives of e-governance is to make every information of the
government available to all in the public interest.
• One of its goals is to create a cooperative structure between the government and the
people and to seek help and advice from the people, to make the government aware of
the problems of the people.
• To increase and encourage people’s participation in the governance process.
• e-Governance improves the country’s information and communication technology and
electronic media, with the aim of strengthening the country’s economy by keeping
governments, people and businesses in tune with the modern world.
• One of its main objectives is to establish transparency and accountability in the
governance process.
• To reduce government spending on information and services.
 Features of E Governance

• It has been proven from the concept of e-governance that it is a powerful means of public service in
the present era. Some of its features can be found by observing the functioning of e-governance.
• De bureaucratization: Due to e-governance, the gap between the people and the government in all
the services of the government is narrowing and the dependence of the people on the bureaucracy is
also greatly reduced.
• E-Services: Its main feature is the provision of services through the Internet. As a result, we get
G2C, G2B, G2E, etc. services. This is already discussed in the section of ‘types of governance’.
• International Services: through e-governance, all the essential services can be delivered to the
citizens who are living outside of their country for job purposes or any other reasons. 
• It enhances the right to express to the citizens. Using the means of e-governance anyone can share
their views with the government on any bill or act or decision taken by the government. 
• Economic Development: With the introduction of e-governance, various information like import-
export, registration of companies, investment situations, etc. are available through the internet. As a
result, time is saved, procrastination decreases, and economic dynamism increases. 
• Reduce inequality: using e-governance tools everyone can gather information and empower
themselves. In this globalized world, knowledge is power, and means of e-governance empower us
by providing relevant information at minimal cost, effort, and time. 
 G2C (Government to Citizen)

•  As people are the key concept of politics and government as well as governance, the
government is compelled to connect with citizens through the transparent and
accountable order.  In this connection the government is responsible for promoting the
social opportunities and public services in the field of-
• Transportation (Registration of motor vehicles, Issue of driving licenses, Issue of plying
permissions, Tax and fee collection through cash and bank challans and control of
pollution etc.), 
• hospitals (linking of various hospitals in different parts of the country to ensures better
medical services to citizens), 
• education ( availability of the e-learning modules to the citizens, right to education), 
• online job portal and various customer services. 
• It also ensures services such as issue of certificates, job cards, passport, ration cards,
payments of bills and filing the taxes from the door step through e-governance platform.
The main objectives of the G2C  services are to ensure equitable distribution of
information for all, acceptance of citizen’s feedback, and improving welfare services.
 G2G (Government to Government) 

• G2G has been referring to raising the quality of the government process by cost cutting,
managing performance, and making strategic connections within government. 
• It enables government institutions to be more efficient and more effective by the use of
IT tools such as-
• Live fingerprints scanning and verification, 
• Electronic entry of reports and paperwork etc. 
• The major key areas in this type of e-governance are 
• E-Secretariat (all the valuable information regarding the function of the government are
interlinking throughout the various departments), 
• E-Police (police personnel records, criminal records etc), and
• E-Court (creating a database of all the previous cases, pending and ongoing cases) and
Statewide Networks (Kumar: 2011).
 G2B (Government to Business) 

• G2B is mainly concerned with these things- 

• E-taxation, 
• Getting a license from the government etc.
• Secure Electronics Transactions.
• It has included the policy of government with business. According to S.P
Kumar, ‘the essentials for achievement of G2B services for secure and
authentic transactions include: Standards for electronic transactions, a secure
payment mechanism and Public key infrastructure’ (Kumar: 2011).
G2E (Government to Employee) 
•  
• The G2E model refers to providing information and services from
government to employee and employee to government as well. It
involves training through-
• e-learning methods; 
• Consolidating the employee and 
• Share of knowledge among the employees. 
• It has also facilitated the employee to access information regarding
pay and benefit policies and manage their profits through online.
 E-Governance
• E-Governance: Meaning, Objectives, Features, and Types, it can be stated that In this
era of globalization, the role of E governance is significant. This is a blessing, especially
to third world countries. As a result of the implementation of e-governance, all these
countries have been able to maintain their development trend on par with the developed
countries. Knowledge is power. E-governance empowers ourselves by providing
relevant information at minimal time, cost and price.  
 Legal framework of E- governance in India

• It was in 1995 that the Internet was first launched in India, through dialup connections. Ever since
then, technology has just been on an evolutionary ascent with online B2B online portals appearing
from 1996 to 2007, when the number of players in the e-tailing segment saw a significant rise. E-
commerce has made our lives simpler by making it possible to get what we need with a few clicks
from the comfort of our homes.
• The Organization for Economic Cooperation and Development (OECD) defines E-Commerce as a
new way of conducting business, qualifying it as business occurring over networks that use non-
proprietary protocols that are established through an open standard-setting process such as the
Internet. Under the FDI Policy, ‘e-commerce’ comprises products, both digital and physical, and
services traded on digital and electronic networks. 
• In simple terms, e-commerce is a means of conducting business electronically rather than
conventional physical means. This includes all retail activities conducted over the internet such as
purchasing goods, availing services, delivery, payment facilitation as well as supply chain and
services management.
 Applicable Laws & Regulations

• Regulatory:

• Foreign Direct Investment Policy

• Further, the Foreign Exchange Management Act, 1999  Companies Act, 2013
• Payment and Settlement Act, 2007 and other RBI regulations on payment mechanisms
• Labelling and Packaging
• Legal Metrology Act, 2009 read with Legal Metrology (Packaged Commodity) Rules, 2011
• Sales, Shipping, Refunds and Returns
• Moreover, Regulations prescribed by the relevant ministry/state regulations

• Technology & Data Protection

• Information Technology Act, 2000 

• Additionally, Information Technology (Intermediaries Guidelines) Rules, 2011 
• Information Technology Act, 2000 (IT Act) and General Data Protection Regulations (GDPR).
• Consumer Protection Act, 1986
 Applicable Laws & Regulations
• Income Tax Act, 1961
• Double Taxation Avoidance Agreement
• Good and Services Tax

• TaxLegal

• Indian Contract Act, 1872

• Indian Copyright Act, 1957
• The Patents Act, 1970
• Intellectual Property Issues
• Labour laws
 The FDI Policy

• There are two models of e-commerce as defined in the Indian FDI Policy:
• Marketplace Model: Marketplace based model of e-commerce means providing an information
technology platform by an e-commerce entity on a digital & electronic network to act as a facilitator
between buyer and seller. Further, the marketplace acts as a medium for multiple sellers to interact
with buyers and sell their goods. Moreover, the marketplace charges a commission from the sellers
for the service it provides. Additionally, Naaptol and Shopclues are the biggest online marketplaces
currently functioning in the country.
• Inventory Model: Inventory based model of e-commerce means an e-commerce activity where an
inventory of goods and services is owned by an e-commerce entity and is sold to the consumers
directly. Likewise, the seller is an e-commerce company that sources directly from brands and sellers
and stocks it. Examples include Myntra.
• It is important to note that according to the Government’s guidelines on FDI in the e-commerce
sector, 100% FDI under automatic route is permitted in the marketplace model of e-commerce
whereas FDI is not permitted in the inventory-based model of e-commerce.
 The FDI Policy
• As per the FDI policy, contained in the ‘Consolidated FDI Policy Circular 2015’ (FDI
Policy) FDI up to 100% under automatic route is permitted in Business to Business
(B2B) e-commerce. No FDI is permitted in Business to Consumer (B2C) e-commerce.
However, FDI in B2C e-commerce is permitted in the following circumstances: 
• A manufacturer is permitted to sell its products manufactured in India through e-
commerce retail. 
• A single brand retail trading entity operating through brick and mortar stores is permitted
to undertake retail trading through e-commerce. 
• An Indian manufacturer is permitted to sell its single brand products through e-
commerce retail. Indian manufacturer would be the investee company, which is the
owner of the Indian brand and which manufactures in India, in terms of value, at least
70% of its products in house, and sources, at most 30% from Indian manufacturers. 
 Other Conditions
• Other Conditions include:
• Digital & electronic networks will include a network of computers, television channels, and any other internet
application used in an automated manner such as web pages, extranets, mobiles, etc.
• Marketplace e-commerce entities will be permitted to enter into transactions with sellers registered on its platform on
a B2B basis.
• E-commerce marketplace may provide support services to sellers in respect of warehousing, logistics, order fulfilment,
call centre, payment collection, and other services.
• E-commerce entities providing a marketplace will not exercise ownership over the inventory i.e. goods purported to be
sold. Such an ownership over the inventory will render the business into an inventory-based model.
• An e-commerce entity will not permit more than 25% of the sales affected through its marketplace from one vendor or
their group companies.
• In the marketplace model goods/services made available for sale electronically on the website should provide the
name, address, and other contact details of the seller. Post-sales, delivery of goods to the customers, and customer
satisfaction will be the responsibility of the seller.
• In the marketplace model, payments for sale may be facilitated by the e-commerce entity in conformity with the
guidelines of the Reserve Bank of India.
• Similarly, In the marketplace model, any warranty/ guarantee of goods and services sold will be the responsibility of
the seller.
• E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services
and shall maintain a level playing field. 
• Further, guidelines on cash and carry wholesale trading as given in para 6.2.16.1.2 of the FDI Policy will apply to B2B
e-commerce.
 Payment and Settlements
Systems Act, 2007
• According to the law, a ‘payment system’ indicates a system that enables
payment to effect between a payer and a beneficiary.
• Further, involving clearing, payment, or settlement service or all of them, but
does not include a stock exchange.
• An e-commerce entity has to qualify as a payment system by complying with
the relevant rules provided by the RBI relating to online payments.
• Further, it is mandatory for an intermediary that is receiving payments through
electronic modes to have a Nodal Account in operation for settling the
payments of the merchants on its online e-commerce platform.
 Labelling and Packaging

• Any e-commerce entity must comply with and meet the standards
relating to labelling and packaging set by the Legal Metrology Act,
2009;
• Food Safety and Standards Act, 2006; Drugs and Cosmetics Act, 1940
etc. the Legal Metrology Act, 2009 read with Legal Metrology
(Packaged Commodity) Rules, 2011 states that the online platform
must display requisite information about the goods on display.
• They are such as dimensions, weight and other features on the product
page itself.
 Sales, Shipping, Refunds, and
Returns
• Likewise, the Sale of Goods Act, 1930 covers what the sales and shipping policy of the
entity must contain. Additionally, such as the warranties, conditions, and the transfer of
property in goods. Further, the policy must also contain the fact of existence or non-
existence of return/refund options. 
• Indian Contracts Act, 1872 r/w Information Technology Act, 2000
• Governs the conditions for validity of contracts formed through electronic means;
communication and acceptance of proposals; additionally, revocation, and contract
formation between consumers, sellers, and intermediaries. Further, the terms of service,
privacy policy, and return policies of any online platform must be legally binding
agreements. Additionally, the law is yet to update to deal with the lack of online
signatures. Additionally, this will require certain types of contracts and the impossibility
of determining the true consumer’s age, with the standard age to enter into contracts set
at 18.
 Information Technology Act, 2000 and General Data Protection
Regulations (GDPR)

• Information Technology Act, 2000 and General Data Protection Regulations (GDPR)
• E-commerce entities must comply with the Information Technology (Reasonable security practices
and procedures and sensitive personal data or information) Rules, 2011. Intermediary websites and
the content they display will govern by the Intermediary Rules 2011, under the IT Act. 
• Moreover, the General Data Protection Regulation (GDPR) by the European Union was made
effective in 2018. Further, to protect the EU citizen’s data; impacting almost all businesses and
organizations across the world that deal with the EU. Additionally, failure to protect personal data
will lead to a heavy fine of up to €20mn or 4% of their global turnover.
• Intellectual Property Issues
• All trademarks and copyrights for the products/text/symbols intended to be used must be secured.
While India has a well-defined legal and regulatory framework for the protection of IP Rights.
Additionally, it is yet to completely update the laws for complete efficiency in the virtual world. For
instance, there is no set law to prevent domain name deception and misuse except for a few judicial
pronouncements. 
 Jurisdiction Issues

• The availability of jurisprudence in India on the issues of jurisdiction in the e-

commerce sector is sparse.
• Settlement of disputes in the B2C sector especially is challenging due to the
presence of multiple transactions.
• Additionally, they are such as ordering, arranging the delivery, and receiving
e-payments.
• In general, a lot of local statutes provide for a long-arm jurisdiction’ whereby
the operation of such local laws have extraterritorial application if an act or
omission has resulted in some illegal or prejudicial effect within the territory
of the country. 
 
Preservation of the well being of the community by using the Internet with
social responsibility