A Paradigm Shift 2

A PARADIGM SHIFT
- INTRODUCTION TO
ECOMMERCE
PRESENTED BY-
34. GAJENDRAN AMARESAN.
35. ABHISHEK GHOSH.
36. ABIN THOMAS MARKOSE.
39. ALLURI MOHAN KRISHNA.
40.ANUSREE AJAY.S
INTRODUCTION OF E-COMMERCE
Before the advent of E-commerce a lot of time and effort was spent in
purchasing products from retail shops, often situated far away.
E-commerce or electronic commerce simply refers to carrying out business
transactions over the internet. The commercial activities are accomplished
electronically over the global network of computers.
The year 1991 noted a new chapter in the history of the online world where e-
commerce became a hot choice amongst the commercial use of the internet. At
that time nobody would have even thought that the buying and selling online or
say the online trading will become a trend in the world and India will also share a
good proportion of this success.
TIMELINE OF E-COMMERCE
• Indiatimes shopping (2000) – It was started under Times group and sellers were allowed to sell directly
on the website.
• EBAY.in (2005). – It made its debut through baazee.com and understood the potential of the Indian
online market.
• Infibeam.com (2007) – The founder sold all his asset just to start this company with no external venture
capital funding.
• Flipkart (2007) -Flipkart pioneered the Cash on Delivery (Cod) model in 2010, increasing e-commerce
reach dramatically.
• Myntra (2007) – Founded to sell personalized gift items and later acquired by flipkart in may 2014.
TIMELINE OF E-COMMERCE (CONTINUED)
• Inkfruit.com (2007) – Focused on trend and redefining style, inkfruit is known for a community where t-
shirt designs are submitted and voted for.
• Homeshop18.com (2008) – Having grown from Tv to laptop, this portal offers on a wide variety of
lavishing products.
• Snapdeal.com (2010) – It started as a deal and coupon site, it stands now as a multimillion company
regulating tides of online retailing.
• Jabong.com (2012) – An fashion and lifestyle e-commerce portal selling apparel, footwear, fashion
accessories, beauty products, fragrances, fashion and other products.
• Amazon.in (2013) – An American electronic commerce and cloud computing company, it is one of the
leading e tailing sites with over 100% growth in revenue in FY17.
MARKET SIZE AND GROWTH
• India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion in 2013. In
2013, the e-retail segment was worth US$2.3 billion.
• According to study done by Indian Institute of eCommerce, by 2021 India is expected to generate $100
billion online retail revenue out of which $35 billion will be through fashion e-commerce.
• India's retail market is estimated at $470 billion in 2011 and $850 billion by 2020, – estimated CAGR of
10%.
• A new sector in e-commerce is online medicine, selling complementary and alternative medicine or
prescription medicine online.
• Online sales of luxury products like jewellery also increased over the years. Most of the retail brands
have also started entering into the market and they expect at least 20% sales through online in next 2–3
years.
ADVANTAGES OF E-COMMERCE
1. Enhances convenience .
2. Allows for product and price comparison.
3. Easy fund-raising for start-ups ventures.
4. Efficient.
5. Customer reach.
DISADVANTAGES OF E-COMMERCE
1. Poor quality products.

2. Impulsive purchases
3. Internet scammers.
4. Lack of after sales support.
5. Fast changing business environment.
CHALLENGES
• E-Infrastructural Issues: Internet is the backbone of e-commerce. Unfortunately, in India internet penetration is
so far dismally low at 0.5 per cent of the population.
• Branding & Marketing: To get people to come on an e-Commerce site and make a purchase involves heavy cost
due to branding and marketing.
• Declining Margins: With the introduction of a large number of players in the already competitive e-commerce
market, the customer is pampered by offering huge discounts, offers, taking returns etc. resulting in razor-
thin margins.
• Logistics & Supply Chain: Logistics failure in any area can mean detrimental damage to a startup’s future and
can hurt the brand overall.
• Tax related issues: Tax rate system of Indian market is another factor for lesser growth rate of eCommerce in
India in comparison to other developed countries.
• Touch and Feel: Indian customers are more comfortable in buying products physically.
THE ROAD AHEAD
The domestic e-commerce market has the potential to grow between $125 billion and $260 billion by 2024-
2025. The report even talks about the fact that urban dwellers are now confident enough to make online
purchases of up to Rs 25,000 up from the Rs 2,000-5,000 purchases in the recent past.
E-Commerce is here to stay !!
• Social Media: Majority of online buying decisions are made on Social Media.
• Drone Delivery: Companies have been working their way around to innovate the delivery process to
shorten human effort as well as time.
• App only Approach: Statistics suggest the future of internet lies in mobiles. Experts say more than 580
million people in India will use the Internet by 2019, and 70-80% of them will access the Web on mobile
phones.
• Google's Buy Now Button: Google is reportedly working on its own “Buy Now” style button that
would allow e-shoppers search for products on Google and purchase them with a single click.
• Artificial Intelligence: As the ecommerce space gets saturated, investors looking for innovative use of
technology are zeroing in on companies developing artificial intelligence (AI) solutions.

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1. Poor quality products.

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