E-Commerce: Redefining Business Proposition PDF

E-COMMERCE : REDEFINING BUSINESS PROPOSITION Dr. Soofia Fatima Dean, Faculty of Commerce Head, Department of Commerce Patna Women’s College Autonomous Patna University IS E-COMMERCE REDIFINING THE BUSINESS PROPOSITION ? BUSINESS  Buying and selling as a way of earning money  The moder...

E-COMMERCE : REDEFINING BUSINESS PROPOSITION Dr. Soofia Fatima Dean, Faculty of Commerce Head, Department of Commerce Patna Women’s College Autonomous Patna University IS E-COMMERCE REDIFINING THE BUSINESS PROPOSITION ? BUSINESS  Buying and selling as a way of earning money  The modern definition of business highlights on the economic activities which is concerned with the production, distribution, and sale of goods and services with an objective of earning the profit by satisfying the unlimited wants of human beings.  Any activity or enterprise entered into profit  A trade or profession. It does not mean that it is necessarily a company, a corporation, partnership or has any such formal organisation, but it can range from a street peddler to General Motors.  An industrial, commercial or professional operation, purchase and sale of goods and services  A commercial or industrial establishment such as a firm or a factory.  The major important function of business are- Production Function, Organising Function, Financing Function, Distribution Function , Marketing Function, Employment Function, Research and Development Function.   Business is one of the most important human activity. It has been playing an important role in the economic development of the nation and for the upliftment of the living standards of the people. All the developed countries such as USA and Japan are developed today due to the development of the business.  The important functions of business are: 1. Economic development of the country Importance 2.Utilisation of natural resources 3.Improvement of quality of life of Business 4. Fulfilment of human wants 5.Employment Generation 6.Earning of foreign currency 7. Increase in government revenue 8. Self Sufficiency 9. Fostering international relation. BUSINESS PROPOSITION  The definition of a proposition is a statement putting forth an idea, suggestion or plan.  The proposition is an easy-to-understand reason why a customer should buy a product or service from a particular business.  Companies use this statement to target customers who will benefit most from using the company’s products and this helps maintain a company’s economic moat. Backdrop The leading concern of electronic revolution in this 21st century id to establish This is the era of information and ensure a better , easy E-commerce has become a and communication and comfortable way of buzzword of present technology. management, information technology. communication and development with the use of It is a process of conducting information technology. all forms of business through computer network and digital communication , E-commerce is the use of Electronic commerce utilises increasing domestic and web to transact the business. a variety of technologies global competition, These transactions can including electronic data economic downturn, rapidly include online retail sales, interchange, electronic fund changing market trends and supplier purchases, online bill transfers, credit cards and e- volatile financial markets paying, and many more. mail. have all added pressure on organisations to come up with effective responses to survive and succeed.  Digital Marketing is that component of marketing which utilises the internet and online based digital technologies like- computers, mobile phones , other digital media and platforms to promote products and services. The style and technology of marketing DIGITAL changed way back in 1990s and 2000s. MARKETING Marketing plans started assimilating the digital platforms. More and more number of people started using digital devices which certainly gave a thrust to digital marketing. The digital marketing campaign employs the combination of search engine optimisation(SEO), search engine marketing(SEM) , content marketing, influencer marketing , social media marketing, e commerce marketing, etc.  Use of digital channels such as – social media, mobile applications, email, web applications, search engines, websites or any other latest digital DIGITAL channel for the delivery of advertisements are all about Digital Marketing. MARKETING It can also be defined as any form of marketing products or services that involves electronic devices. The best part of the digital marketing is that , it can be effected both online and offline.  Electronic Commerce or e- commerce is a business model that lets firms and individuals ELECTRONIC COMMERCE buy and sell things over the internet 10 E- COMMERCE An online platform for selling and buying good and services round the world without any obstacle 24/7. It increases sales but reduces cost drastically. Helps in Fast selling of goods and services. Reaches out a huge customer base. Less investment in marketing and sales promotion. Fast supply chain and electronic funds transfer mechanism. History of E-commerce It is difficult to estimate just when e commerce began. There are many precursors to e-commerce. The emergence of large business organization in the late 1800s and early 1900s triggered the need to create and maintain formal records of business transactions. In 1950s companies began to use computers to store and process internal transactions records, but the information flows between business continued to be on paper. By 1960s , businesses that engaged in large volume of transactions had begun exchanging transactions information on punched cards or magnetic tapes. In 1979, the American National standards institute (ANSI) charted a committee to develop uniform electronic data interchange(EDI) standards. The committee and its sub-committee include information technology professionals from over 800 businesses and other organization.Finally, EDI standards were developed in the 1980s that permitted firms to exchange commercial transactions across private networks.  TRANSITION TO E-COMMERCE INDIA E-commerce has evolved in India in the late 1990s. The opportunities that were evidenced through the internet were taken positively by the business community. A report by the Internet and Mobile Association of India has revealed that India’s E-commerce market is growing at an average rate of 70percent annually and has grown over 500 percent since 2007.   Globalisation has made the global trade in the global market possible. EMERGING  E-commerce has eventually expedited the patterns of trade and marketing. TRENDS IN  It has been the fastest growing industries in the global BUSINESS economy.  E-commerce had gained momentum in India and all around the globe even before the outbreak of Covid19 Pandemic.  Prior to pandemic, based on choice there was clear demarcation between those who opted for online shopping as a matter of convenience or recreation and those who rejoiced shopping from physical markets. Specialised Features of E-commerce EXCHANGE OF DIGITISED INFORMATION FEATURES TECHNOLOGY ENABLED TRANSACTIONS TECHNOLOGY MEDIATED RELATIONSHIPS INTRA- & INTER- ORGANISATIONAL ACTIVITIES TYPES OF E-COMMERCE Business-to- Business (B2B) E-commerce :  The B2B e-commerce business model sells its product to the final customer. It is the largest form of e-commerce. Instance of B2B Model – A wholesaler places an order from a company’s website and after receiving the consignment ,sells the end product to final customer who comes to buy the product at wholesaler’s retail outlet.  Chinese based ALIBABA is one of the best B2B examples in e-commerce. To start with over 18 million buyers and sellers from around 240 countries are using this platform for businesses.  The main concept of Alibaba group is to connect B2B Businesses (sellers and buyers), instead of selling products and services directly.  Products like tires , batteries electronics, door locks to name a few are manufactured by various companies and sold directly to automobile manufacturers.  Service providers also engage in B2B transactions. TYPES OF E-COMMERCE Business-to- Consumer (B2C) E-commerce : Website following B2C model sells its product directly to a customer. A customer can view products shown on the website of business organisation. The customer can choose a product and order the same. Website sends a notification to the business organisation via e mail and organisation despatches the product/ goods to the customer. There are five different B2C models – direct sellers, online intermediaries, advertising based, community based and free based. Direct selling is the most common model (online retailers). Apple and McDonald’s are the perfect example of B2C e-commerce. Someone buying pair of shoes online is also the instance of B2C model.  TYPES OF E-COMMERCE Consumer-to- Consumer (C2C) E-commerce : It is a business model whereby customer trade with each other using a third-party platform. It provides a way for consumers to sell each other , with the help of an online market maker such as the auction site e-bay. C2c emerged with e-commerce technology and the sharing economy. Online C2C company sites include- Craigslist, Etsy and eBay. Website following C2C business model helps consumers to sell their assets like residential property, motorcycles, cars, or rent a room by publishing their information on the website. Website may or may not charge the consumer for its services. eBay , an online auction site, has been successful since its launch in 1995 and it has always been a C2C E- commerce. The example of C2C transactions would be the classified sections of the newspaper, Orbán auction. In both the ncase3s , a customer- not a business- sells goods or services to another customer. TYPES OF E-COMMERCE Consumer-to- Business (C2B) E-commerce :  C2B which stands for Consumer to Business, is a business model in which consumer create  Value and businesses consume that value.  In this model, a consumer approaches website showing multiple business organisations for a particular service. Business organisation that fulfils the consumer’s requirements within specified expectations approaches the customer and provides its services.  When a consumer writes reviews or when a consumer gives an useful idea for new product development then that consumer is creating value for the business if the business adopts the input.  Examples of C2B includes models include referral programs, paid testimonials, or data sharing. TYPES OF E-COMMERCE E Governance :  E Governance model refers to interactions between government and other parties to perform various functions via internet  E governance is a medium through which government perform its duties and obligations towards citizens.  It is a platform for interaction between government, industry, departments like- agriculture, finance, defence , healthcare, education, etc.  E-Commerce can take place in different forms based on parties involved – government to citizens, Business to Government, GOVERNMENT TO EMPLOYEE , Government to Government.  Examples of e governance in India include Digital India Initiatives, Prime Minister of India Portal , Adhaar, Filing and Payment of taxes, Common Entrance Test. TYPES OF E-COMMERCE Peer- to- Peer E Commerce : This technology enables internet users to share files and computer resources directly without having to go through a central web server. Thus, no intermediary is required. P2P service is a decentralised platform whereby two individuals interact directly with each other without intermediation by third party. Buyer and seller transact directly or produce goods and services together without an intermediary third party There are peer to peer free software applications that permit users to directly exchange musical tracks , typically without any charge. Example- open source software, anybody can view and or modify code for the software by eliminating central publisher or editor. Example- LYFT- a company that helps individuals who need a ride match up (for fun) with people who have car and want to earn money by giving them rides. Filesharing, ridesharing, homesharing , etc. E-COMMERCE TYPES OF E-COMMERCE Mobile Commerce or m- commerce : It refers to the use of wireless digital services to enable transactions on the web. It is the use of wireless handheld devices like cellphones and tablets to conduct commercial transactions online, including purchase and sale of products. Once connected, mobile consumers can conduct many types of transactions, including stock trades, in store price comparison, banking, travel reservations and more. The use of m commerce activity is on the rise. Example- mobile app, digital wallet, Android pay etc. E COMMERCE IN ADVERTISNG E COMMERCE MODEL , MARKETER OR MATERIALS NECESSARY BUT AMAZON.COM IS WELL COMPANIES CHARGE OTHERS NOT RELATE TO COMPANY’S KNOWN FOR AFFILIATE FOR ALLOWING THEM TO PRIMARY BUSINESS ACTIVITIES PROGRAM IN ECOMMERCE PLACE A BANNER ON THEIR ARE KNOLWN AS INDIRECT MARKETING TECHNIQUE. WEBSITES, BLOGS OR MATERIALS. PLATFORMS. IMPORTANCE OF DIGITAL MARKETING AND E COMMERCE : WITH SPECIAL REFERENCE TO COVID19 AND LOCKDOWN  Covid19 pandemic has taken a toll on global economy. India is definitely not an exception.  There is a dire need for business enterprises to evolve and adapt survival strategies not only to survive during the Covid19 pandemic and the very lockdown but also to sustain in the post Covid19 period.  Thus, there is an urgency of implementation of effective digital marketing strategies.  The report of the’ World Economic Forum ‘ clearly depicted that there is approximately 41% active Internet users in India. And there is approximately 1.4% productive consumption of internet and contribution to online retail sales in India, as compared to developed countries, where there is 14% of productive consumption.  The another statistics revealed in the report was that approximately 28% of active internet users in India are falling under the age category of below 18 years.  At the outset , all the business organisations irrespective of its size and type should be required to adopt digital transformation strategies , to survive and sustain. Thus, role of digital marketing and e commerce will immensely help the business to avoid meeting untimely death. MAJOR ADVANTAGES OF E-COMMERCE REACHES ACROSS NATIONAL BOUNDARIES, AROUND THE GLOBE. ITCLUDES POTENTIALLY GLOBAL REACH BILLIONS OF CUSTOMERS AND MILLIONS OF BUSINESSES WORLDWIDE. RELATIVELY CHEAPER TO ACQUIRE NEW CUSTOMERS OVER COST OF TRADING THE NET. INNOVATIVE TOOLS TO RETAIN CUSTOMERS’ LOYALTY WITH MINIMAL INVESTMENTS. KNOWLEDGE OF FIRM HAS ACCESS TO OBSSERVE AND TRACK INDIVIDUAL CONSUMER CUSTOMER BEHAVIOUR BEHAVIIOUR. COMPANIES KEEP A TRACK ON BEHAVIUORS OF CUSTOMERS VISITING WEBSITE. 26 8 ways To Implement An Effective E-Commerce Omnichannel Strategy Embrace all possible Maintain a Invest in channels in consistent Customer Plan it out the customer brand image Care Service journey Decide which Integration of customer Make every your Systems Continously segments you and Tools for touch point a optimise your need to focus customer data on for a shopping channels gathering and personalised haven processing experience TOOLS / TECHNICAL APPROACH REQUIRED BY BUSINESS TO IMPLEMENT ‘ 7 POINT BLUEPRINT 1. G Suite – for email, calendars drive, hangout, team collaboration. 2. Trello – easy drag and drop project or task management. 3. Larksuite.com- team collaborations, video conference, projects , charts. 4. Basecamp- project and team task management. 5. WhatsApp for business or Telegram - for daily or regular communication through groups or may be facebook business team. 6.Zoom, Gotomeeting, Webex, Google Meeting for video conference. 7.KickIdler.com or TimeDoctor for remote employee monitoring. 8. Gpay, PhonePe, PayTM, RazorPay for payments and receipts. 9.Moodle, Teachable, Udemy as LMS 10.Zoho,quickbooks for accounting 11.Artificial Intelligence based content automation tools like Articoolo, Gtranslate,etc., 12Competitive research tools like- Spyfu, Ubersuggest, Alexa ,etc. ‘7 POINT’ BLUEPRINT FOR BUSINESS : SURVIVAL STRATEGIES IN COVID 19 IN INDIA TOUCH POINTS PROCESS ( HOW TO GET CLOSE LOOK AT CONNECTED WITH OPTIMISATION / ACCOUNTING INTERNAL AND MAXIMISING PROCESS EXTERNAL TEAM LIKE- PRODUCTIVITY CLIENTS, VENDORS) COMMUNICATION MARKETING AND PROCESS SALES PROCESS OPERATIONAL & ADMIN / HR DELIVERY PROCESS PROCESS Empowering Customers  Websites and online advertisements allows businesses to communicate with the clients.  Provides information on new products and complete sales.  Consumers can give their feedback and comments regarding products and services on consumer forums and features.  It also saves time for both businesses and consumers in enhancing the customer’s convenience.  Order tracking  24/7 support  Notification about sales and discount. CONCLUSION 1. Thrust on elevating the Digital Literacy. 2. Corporate social responsibility of the companies will help them in a long way. 3. Target should be aimed at the potential customers and audiences of younger generation. 4. Business should think of developing and engaging digital content that can be emotional content , brainstorming content, gaming content, etc. 5. Giving better access to products and services 6. Inclusion of masses is quite essential. 7. To be clear with outcomes. 8. The internet is the only place which is not quarantined for quarantined consumers. 9. Thus, there is a need to strongly evaluate the power of e- commerce and digital marketing. 10. Brands must use digital platforms to spread awareness. “E- COMMERCE IS CERTAINLY REDEFINING THE BUSINESS PROPOSITION SPECIALLY IN RETAIL AND DISTRIBUTION SECTOR” SHOPPING E-COMMERCE INFOGRAPHICS HAPPY LEARNING THANKS