E-commerce

Welcome to the world of e-commerce, where businesses thrive in the digital landscape.
Discover the key elements, benefits, challenges, and future trends of this dynamic industry.

Neha Ajay Gupta BBA 1st Year A-30

 Introduction
Definition of E-commerce Importance of E-commerce in Business Benefits of E-commerce

E-commerce refers to the buying E-commerce has become essential for Cost-effectiveness
and selling of products and businesses as it allows them to adapt to
services online. It enables changing customer preferences, expand their Global reach
businesses to reach with market reach, and increase revenue.
customers digitally. Personalisation

Convenience

Data analytics

24/7 availability
Types Of E-commerce
1. B2C (Business to consumer)

Businesses sell products directly to the individual consumer brought online platforms.

2. B2B (Business to Business)

Businesses sell products or services to other businesses through online marketplaces or customised platforms.

3. C2C (Customer to Customer)

Individuals sell products directly to other individuals through online platforms, like classified ads or peer-to-peer
marketplaces.

4. C2B (Consumer to Business)

Individuals offer products, services, or expertise to businesses through platforms where businesses can hire freelancers or
influencers.
E-commerce Trade Cycle

A trade cycle is the series of exchanges,

between a customer and supplier that take
place when a commercial exchange is
executed. A general trade cycle consists of
following phases:

1. Pre-Sales

2. Execution

3. Settlement

4. After-Sales
Trade Cycle
Pre-Sales:

Search: Customer search for required website for product to be purchased.

Negotiate: Customer find a supplier who offers good quality product at cheaper price and then customer greets the terms and
conditions forwarded by supplier.

Execution:

Order: Customer sends an order for the selected product.

Delivery: After processing the order, customer receives the delivery of the product.

Settlement:

Invoice: Invoice means customer will receive a bill for purchased product.

Payment: After confirmation of received product, customer will pay for the same.

After-Sales:

Warranty: In warranty period, customer will get all maintenance services for free or at minimum cost.

After sale services: After sale services means customer will do complaints about the performance of product and get maintenance
service from the supplier.
Forms of E-commerce

M-commerce (Mobile Commerce)

Social Commerce
M-Commerce
M-Commerce (Mobile Commerce), is the
use of smart and tablets for electronic
transactions.

It is convenient for purchasing goods and

services.

It also includes mobile wallets and

contactless payments, and QR code
scanning for making transactions.

Enables banking and financial transactions.

Connects businesses and customers

worldwide.
Social Commerce
Social Commerce is the fusion of e-
commerce and social media, where buying
and selling occur directly on social
platforms.

It enables shoppers to get advice from

trusted individuals, find goods and services
and then purchase them.

Facebook Marketplace, Instagram, and

Pinterest Buyable Pins are notable social
commerce platforms.

Social commerce is reshaping online

shopping, providing a direct, interactive,
and social way for customers to discover
and purchase products.
Most Popular Social Networks Worldwide
Modes Of Payment
There are various modes of payment used for transaction ps in the modern world. Here are some
common ones:

Credit Cards

Mobile Payments

Bank Transfers

E-wallets
Credit Card
Plastic cards that allow users to borrow
money to make purchases, with interest if
not paid in full.

Credit cards are the most common way for

customers to pay online.

Credit cards are widely accepted

internationally, making them useful for
travel and online shopping.
Mobile Payments
Mobile payments offer a quick solution for
customers to purchase on e-commerce
websites.

Mobile payments are also commonly used

on donation portals, browser games and
social media networks.

Customer can pay by scanning a barcode on

an app on mobile.

Examples are apps like BHIM, UPI, Paytm,

Google Pay, PayPal,..etc.
Bank Transfers
Bank Transfer is used when money is sent
from one bank account to another.

Transferring money from bank account is

usually fast and safer than withdrawing and
paying in cash.

Bank transfer can be used for both domestic

and international transactions.

Bank transfers are commonly used for

various pu, including paying bills, making
large purchases and conducting business
transactions.
E-wallets
E-wallet is a type of electronic card which is
used for transactions made online through a
computer or smartphone.

E-wallet is a type of Pre-paid account in

which a user can store money for future
online transactions.

An e-wallet is protected with a password.

Examples are State Bank Buddy, Paytm

Wallets.
Key Elements of Successful E-commerce
User friendly Secure Mobile Reliable Shipping
Website Payment Optimisation and Delivery
System
A well-designed and Adapting websites Efficient logistics
intuitive website Implementing and apps for mobile and timely delivery
enhances the user robust payment devices enables improve customer
experience, leading to gateways and SSL seamless shopping satisfaction and
increased conversions. certificates builds experience on encourage repeat
trust and ensure smartphones and purchases.
secure tablets.
transaction.
Challenges in E-commerce
Competition:

E-commerce is highly competitive as many companies are trying to sell things online, so it’s tough to
stand out.

Cybersecurity:

Data breaches and cyberattacks can compromise cust information and damage a company’s reputation.

Customer Trust:

Building and maintaining trust with customers is essential, and any breach of trust can have significant
consequences.
Challenges in E-commerce
Global Expansion:

Expanding into inter markets involves dealing with different cultures, currencies, and regulations.

Technology Upkeep:

Keeping up with rapidly advancing technology is a constant challenge.

Inventory Management:

Balancing inventory to meet demand without overstocking or under stocking can be a complex task.
E-commerce with Sephora
Sephora is a cosmetic behemoth that we can all learn from. What’s the secret behind
their worldwide success?
Since its launch in 1970, Sephora has been a true disruptor in the cosmetics industry.
Today, Sephora is a global brand that generated an impressive $10 billion in revenue
in 2019.
What’s the secret behind their worldwide success? They tapped into something very
early on—Millennials don’t buy makeup the same way as older generations. They
value personalization and want to feel connected to the brand.
Sephora took note and changed the way people buy cosmetics. Think about their
famous in-store shopping experience and how it aligns with their onsite experience
for online customers.
Step 1: Understanding your customer’s needs
One of the main reasons behind Sephora’s ongoing sucesss is it ability to adapt to changing customer
preferences.

Sephora needed to appeal to a new group: who are heavily targeted on social media, educated on current
trends, and often to discovering new brands.

Personalised assistance from industry professionals.

Makeup tutorials featuring each season’s new releases.

Complimenting makeovers.
Step 2: Make people aware of your brand and products.
Sephora worked with several micro-influencers to promote new products, but something was missing.

Having their employess give authentic testimonials.

Partnering with popular beauty bloggers like Kyra’s Stewart and Olivia Jade.

Focusing on building long-term relationships with influencers.

Sephora also promoted its classes for confidence program during these campaigns.
Step 3: Help Customers make informed purchasing decisions.

Sephora carries 3000 cosmetics brands such as the Sephora Collection, its own line of makeup, hair
care, skin care, and other beauty accessories.

But having such an extensive inventory comes with another set of problems.

Sephora had to create an e-commerce site that

Wasn’t cluttered and difficult to navigate through.

Gave customers access to their entire catalog.

Didn’t confuse or overwhelm customers.

To address this, Sephora created a “Help Me Choose” section on their website.

Optimise customer experience
Sephora understands the need for an optimal customer sales journey strategy, which is why the make
sure their website is easy for customers to navigate.

When you visit Sephora’s website you’ll notice that all their products are in different categories

Looking for products from a specific brand, like Sephora Collection or Urban Decay, select the Brands
category.

Looking for lipstick, you can browse the makeup category.

Looking for moisturiser, browse the Skin care category.

Thank You