Ecommerce Module 2
Ecommerce Module 2
Ecommerce Module 2
Digital Marketing
Module - 2
CHIRAG 1
E-BUSINESS
E-business uses the application of Information and Communication Technologies in support of all
the internal and external activities of business, i.e., manufacturing, trading and other business
activities
CHIRAG 2
Launching an E-Business/
Steps to Launch E-
Business/
Different Phases of
launching an e-business
CHIRAG 3
Choosing a product / Finding a product to sell
The first step to building a business is to know what products you want to
sell
This is often the most challenging part of starting a new online business
CHIRAG 4
Once you have a product idea in
mind, he/she has to find out the
feasibility of the idea
Evaluating your
idea
There are two evaluations methods,
evaluating the product itself, as well
as evaluating the market for your
product choice
CHIRAG 5
Obtaining your product
Make Manufacture
Wholesale Dropship
CHIRAG 6
Research and prepare
CHIRAG 7
Write your WITH YOUR A BUSINESS IT IS VITAL SO
COMPETITIVE PLAN IS THE THAT ONE CAN
business plan RESEARCH ROADMAP DETERMINE
COMPLETE, IT'S THAT HELPS HOW TO MOVE
NOW THE BRING IDEAS FORWARD AND
PERFECT TIME AND COMPETE
TO WRITE THOUGHTS EFFECTIVELY
YOUR TOGETHER
BUSINESS
PLAN
CHIRAG 8
Registering Your
Business
• With a business plan in hand, now is a
good time to consider your options for
registering your business
CHIRAG 9
Naming Your Business
CHIRAG 10
Creating a Logo
CHIRAG 11
Understanding Search Engine Optimization
However, before you jump into it, you should understand the basics of search
engine optimization so that you can optimize your site for Google and other search
engines
CHIRAG 12
Building your store
CHIRAG 13
IMPORTANT
CONCEPTS IN
CONDUCTING
E-BUSINESS
CHIRAG 14
Data warehouse
CRM refers to a business strategy that enables organizations to better serve the needs of their customers to achieve a high
level of customer satisfaction; thereby maximize customer loyalty and retention
It encompasses a number of technologies used to streamline customer interaction, which helps in finding, acquiring, and
retaining customers
CRM is a management approach or model that puts the customer at the core of an organization processes and practices
The essence of CRM is to treat customer individually and offer them with customized product or service
CHIRAG 16
Definition of CRM
CHIRAG 17
According to Council of Supply Chain Management
Professionals, supply chain management may also be defined
as “the integrated management of all linkages and value added
activities from the supplier’s supplier to the customer’s
Supply chain customer in such a way that enhanced customer value is
achieved at lower costs
management
In e-business, SCM creates linkages between suppliers and
retailers that translate into lower costs, better customer service
and profitability for both the partners
CHIRAG 18
The main objectives of SCM are
Decrease inventory cost by more accurately predicting demand and through just-in-time
delivery
Customer satisfaction by offering better quality, variety and speed in the delivery of the
product
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ERP
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Advantages of
ERP
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Increased Efficiency
Lead Time is the time gap between placement of order and delivery of an
order
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Integrated Information
CHIRAG 24
BRICK AND
MORTAR BUSINESS
MODEL
CHIRAG 25
Brick and Mortar Business Model means having a business
with physical presence
CHIRAG 26
ADVANTAGES
CHIRAG 27
In this business, customer services
can be better
Customer
Service
This is because, face to face customer
service can be a big contributor to
increasing sales of a business
CHIRAG 28
Physical inspection of goods
Another big advantage is that customer can buy product after inspection of
goods
They can check, touch, smell or feel the product before buying it
CHIRAG 29
Customers get face to face interaction with
the vendor
CHIRAG 30
Full Control over Organizational Product
CHIRAG 31
Many customers till today do not trust online
purchasing and are more comfortable giving a
credit card at a physical location than
disclosing details online.
Trust
CHIRAG 32
DISADVANTAGE
S
CHIRAG 33
Costs
Rent
Employee salary
Start up
CHIRAG 34
Inconvenient for Customers with Busy Lifestyles
Nowadays most of the people are working and have a busy and hectic
lifestyle
As people are busy in their works, they find it harder to find the time to go
to physically store for shopping
Thus, online shopping is a boon and more convenient for these people
CHIRAG 35
The product in bricks and mortar may be
expensive as compared to online store
Expensive
Products This is because, brick and mortar increases
the fixed cost, therefore the products sold in
shops tend to be more expensive compared to
online shops
CHIRAG 36
Products maybe out stock in brick and
mortar retail but online shops will always
Wider Stock have stock in warehouses which may be
quicker to ship out
availability
Online
Also there is wide variety available online
CHIRAG 37
Brick and mortar businesses can reach
only few local customers
Local Limitation
But if an organization wishes to have a
national or even global presence, a fixed
location and the costs incurred may lessen
those chances
CHIRAG 38
PURE ONLINE BUSINESS MODEL
CHIRAG E X A M P L E S - A M A Z O N ,
D E A L ,
F L I P K A R T ,
I N D I A M A R T
S N A P
39
In the E-business a pure online business model
is an organization that originated and does
business purely through the internet; they have
no physical store where customers can shop
Meaning
Compared to traditional bricks-and-mortar,
pure online business model can serve wider
audiences without physical boundaries and
distance
CHIRAG 40
ADVANTAGES &
DISADVANTAGE
S
CHIRAG 41
BRICK AND CLICK
BUSINESS MODEL
CHIRAG 42
Bricks and Clicks Business Model is a business model by which a company
integrates both offline and online presence
Meaning It is a term used in business which indicates that business has shops or
outlets and also deals online
CHIRAG 43
Shoppers Stop and Big Bazaar first established
their brick and mortar stores across cities in
India and then expanded to an online presence
through their websites
Examples —
Lenskart, Pepper fry & CaratLane, first
established their online presence and then
initiated their entry into the offline space to
deal with the issue of credibility and
intangibility
CHIRAG 44
ADVANTAGES
CHIRAG 45
Wide Coverage
CHIRAG 46
Physical Inspection
There is every possibility of feeling and physical inspection of goods in this model
This model is more feasible for certain goods that cannot be sold exclusively over
the internet and at the same time online portion of the business can be used by the
customer to place an order, track the status
CHIRAG 47
Timely delivery is a prominent problem faced by pure
online business firms
CHIRAG 48
Face to Face Interaction
Brick and Click is a combination of physical and online presence that is face to
face interaction of customers with the salesperson is possible.
This helps to solve product related queries of the customers, gives information,
and provides feedback and so on.
This can serve the purpose of both online and offline channels.
CHIRAG 49
DISADVANTAGE
S
CHIRAG 50
Mismatching the prices
CHIRAG 52
Wasted expenditure
One disadvantage might be, however, that wasted resources are being spent on the
website when most business is continually coming from the retail store
It has been argued that a bricks and click is more difficult to implement that online
mode only
CHIRAG 53
Difficult to
Implement
CHIRAG 54
CHIRAG
EDI
55
Meaning
2. Purchase orders
3. Sale orders
4. Shipping requests
5. Acknowledgement
CHIRAG 57
Components of EDI
CHIRAG 58
Computer to Computer
CHIRAG 59
Business Documents
CHIRAG 60
Standard format
CHIRAG 61
Business Partners
CHIRAG 62
ADVANTAGES OF
EDI
CHIRAG 63
Expedite Transmission
CHIRAG 64
Faster processing
CHIRAG 65
Low cost
CHIRAG 66
Reduction in error
CHIRAG 68
Standard means of
communication
• EDI enforces standards on the content
of data and its format which leads to
clearer communication
CHIRAG 69
DRAWBACKS
OF EDI
CHIRAG 70
Initial cost
CHIRAG 71
Initial setup is time
consuming
• Initial setup process of EDI is very time
consuming
CHIRAG 72
EDI standard changes
If any of the standard format changes then the business process has to be
changed accordingly
CHIRAG 73
System protection
CHIRAG 74
Staff training cost
CHIRAG 75
Proper backup should be maintained
as the whole depends on EDI
Proper Backup
In case of any crash of EDI system,
proper backup has to be maintained
and extra cost is required for it
CHIRAG 76
Limit your trading partners
Some organization stops doing business with companies which don’t use
EDI
CHIRAG 77
APPLICATION OF EDI
01 02 03
EDI has always been EDI allows faster, EDI facilitates the
very closely linked simpler, broader and smooth flow of
with international less costly transactions information, reduces
trade voluminous
paperwork and
complex formalities
across border
CHIRAG 79
EFTS is credit transfers between banks where
funds flow directly from the payer’s bank to
Interbank the payee’s bank
Electronic Funds
Transfer The two biggest funds transfer services in the
United States are the Federal Reserve’s system,
Fed wire, and the Clearing House Interbank
Payments System of the New York Clearing
House
CHIRAG 80
Providing good and affordable health care is a
Health Care EDI universal problem
CHIRAG 81
Manufacturing and Retail Procurement
CHIRAG 82
E-BUSINESS APPLICATIONS
CHIRAG 83
E-Procurement
The term procurement is used in business to business and refers to the process by which
companies buy products and services from other companies
E-procurement refers to buying of goods and services by one company from another company
through internet
The goal of the procurement process is to buy the needed product or service for the most
favorable price
To support this, often tenders are used in which potential suppliers compete
Companies and public bodies often define specific procurement processes and selection
CHIRAG
criteria to avoid fraud 84
ADVANTAGES
CHIRAG 85
Streamline Processes / Reduce Transaction Time
Buyers can search electronic catalogue containing goods and services from
multiple suppliers and compare products and prices on-line
Real time communication allows buyers to check current prices and quantities
CHIRAG 86
Greater Access to
Suppliers
• Using virtual e-procurement portals,
buyer have access to suppliers around
the globe, which translates into a wider
selection of goods and services
CHIRAG 87
Global operations
CHIRAG 88
Facilitates Decision- Making
CHIRAG 89
Greater transparency
CHIRAG 90
Increased productivity
CHIRAG 91
DISADVANTAGE
S
CHIRAG 92
Shift of power to
Vendors
• The main disadvantage which is
generated through the implementation
of an e-procurement system is that the
power is shifted on to the vendors who
can take advantage of the competition
in the market for their own benefits
CHIRAG 93
Technical problems
There can be technical problems arising due to the use of the procurement
system
The EDI technology implementation can fail at times; the purchase orders
and the invoices generated too can have errors
CHIRAG 94
Limited Scope
CHIRAG 95
E-COMMUNICATION
CHIRAG 96
ADVANTAGES
CHIRAG 97
Speedy Transmission
CHIRAG 98
Wide coverage
CHIRAG 99
Exchange of Feedback
CHIRAG 100
Managing Global Operation
CHIRAG 101
DISADVANTAGE
S
CHIRAG 102
Electronic communication
requires huge investment for
Cost of infrastructural development
Development
Frequent change in technology
also demand for further
investment
CHIRAG 103
Legal status
CHIRAG 104
Undelivered Data
Data may not be retrieved due to system error or fault with the technology
CHIRAG 105
Technology is ever changing and
therefore poor countries face
problems as they cannot afford new
or advanced technology
Dependency
Therefore, poor countries need to be
dependent towards developed
countries for sharing global network
CHIRAG 106
E-DELIVERY
CHIRAG 108
E-Delivery facilitates customer to shop
from any vendor, at anytime, anywhere
in the world
Access
Virtual window shopping enables all
users to shop at their leisure and across
multiple market places
CHIRAG 109
Many retailers offer discounts and promotions
if goods are ordered online
Discounts and
The coupon code is entered while placing
Promotional order and goods delivered at discounted
offers prices
CHIRAG 110
Cost Effective
E-DELIVERY SAVES THE E-DELIVERY SAVES TIME
EFFORTS AND FUEL COST OF CUSTOMERS AS GOODS
OF PICKING GOODS FROM ARE DELIVERED AT THE
STORES DOOR STEP OF THE
CUSTOMERS
CHIRAG 111
Wide Options
E-DELIVERY MAKES IT SINCE THEY ARE
POSSIBLE FOR DELIVERED ONLINE,
CUSTOMERS TO SELECT CUSTOMERS CAN
GOODS FROM A WIDE ORDER BULKY GOODS
RANGE OF PRODUCTS TOO
CHIRAG 112
DISADVANTAGE
S
CHIRAG 113
Shipping Rates
CHIRAG 116
E-AUCTION/ E-BIDDING
CHIRAG 118
The products for auction does not need any
physical location in case of online auction
CHIRAG 119
Convenience
The bidder can participate in auction from anywhere at any time through
online auction
CHIRAG 120
Price Discovery
CHIRAG 121
Price Transparency
CHIRAG 122
Lower Transaction Cost
Online Auctions can lower the cost of selling and purchasing products
thereby benefiting both the traders and the consumers
CHIRAG 123
DISADVANTAGE
S
CHIRAG 124
Anonymous Bidder
CHIRAG 125
Product genuineness
CHIRAG 126
Fake sites
CHIRAG 127
E-TRADING
The primary benefit of online share trading is the level of convenience you will be able
to enjoy as a trader
In the new, online trading system, an investor must open a demat account with one of
the stock brokers to start online trading
Although the process of online trading is simple, it has both advantages and
disadvantages
CHIRAG 128
ADVANTAGES
CHIRAG 129
Lower Fees
CHIRAG 130
Time is often of the essence when
you trade stocks, so the speed of
using online trading portals is a
More control and benefit to many investors
flexibility
With online trading, you can execute
a trade almost immediately
CHIRAG 131
Option to monitor
Investments in Real Time
CHIRAG 132
Increased Transparency
CHIRAG 133
DISADVANTAGE
S
CHIRAG 134
System Failure
CHIRAG 135
New Trader
CHIRAG 136
Unfamiliarity
CHIRAG 137
DESIGN AND
DEVELOPMEN
T OF
WEBSITES
CHIRAG 138
Meaning
The pages contain audio, video, text, banners and other multimedia
content
CHIRAG 139
Essential Components of
Website
CHIRAG 140
It is the very first page of the website like the content of a
Home Page book which one is likely to read
CHIRAG 141
ADVANTAGES
CHIRAG 142
Provide detailed
product information
• The company can provide all complete
details about the product over the
Website within a very short time frame
and thus make them feel comfortable to
do the business
CHIRAG 143
Gain Customer
Confidence
• Professional website develops
confidence in the Customers to buy the
product as compared to an unappealing
website which may cause a serious
threat to the business
CHIRAG 144
Unlimited Boundary
Website does not have any boundaries in terms at time as well as geographical
area
CHIRAG 145
Better Customer
Relationship
• B2C relationship can be improved by
providing the most updated Information
to the Customers through
communication and support
CHIRAG 146
Provide convenience to
customers
• Website provides convenience to the
customers by timely provision of the
goods and thus increases the
productivity, performance and Speed of
the website
CHIRAG 147
Provide up to Date
information to the clients
CHIRAG 148
Types of Websites
Information Personal Search Engine
These Websites are related to and There are many websites that only
The main purpose of this type of administered by a single individual allow the user to search any
website is providing information who has the choice of putting things information on the web- These sites
whether free or paid. On the Website: It can contain any are only dedicated to be used by the
kind of information. user.
CHIRAG 150
Means before the attention of the
reader is withdrawn one must quickly
understand the content of the website
Maintaining
context
Also the words that are used must be
lucid and simple to understand
CHIRAG 151
Use of subpages
CHIRAG 153
Different font style can be used to make
Use different website attractive
font style and
sizes Similarly font sizes can also be changed for
keeping the information in a categorized
manner like headers in a big size and
paragraphs in a small size
CHIRAG 154
Consistency and Standards
CHIRAG 155
If there is any error while accessing the page it
must be expressed in a simple language so that
it can help the users in recognizing the errors
and recovering from the same
Error prevention
CHIRAG 156
The option of recognizing information through an
object, actions and other options should be made
available to the user
Recognition and
The user must not recall it or not remember the
not recall information from one page to another
CHIRAG 157
Efficient and Aesthetic
Design
• Only the relevant information must be
displayed on the websites and the
information that is rarely needed should
not be shown
CHIRAG 158
Life cycle
approach for
building a website
CHIRAG 159
Planning
Setting up an interactive process
Simple to navigate
24*7 availability
CHIRAG
Provide links to connect to different pages 160
Target customers
Under this stage all the target customers are decided and the list of all intended and
potential customers is prepared
If the target market is targeting the mass market customers on the web the site must
be designed accordingly so that majority of the web users can view them easily
CHIRAG 161
Content building
Content development is one of the most challenging and toughest jobs in a website
the development
Basic items such as company name logo target marinate, catalogue of products
contact information ordering forms E-payment modes should all he mentioned in
the website clearly
CHIRAG 162
Website Structure
CHIRAG 163
Deciding about the final information to be conveyed to
the customers
CHIRAG 164
Visual Design
CHIRAG 165
Different ways of building a websites
CHIRAG 166
समाप्त
CHIRAG 167