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By-Group 5
PGDM GEN. Sec-B
JIMS ROHINI, NEW DELHI- 89 1
CONTENTS
 What is E-Commerce ?
 Features, advantages, disadvantages
 Origin
 Timeline
 Business Models
 E-Commerce Process
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 Online Transactions
 Various Modes of Payment
 Legal Aspects
 Real Examples: Flipkart, Amazon, eBay,
Alibaba
 Contribution in Indian Economy
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WHAT IS E-COMMERCE ?
 E-commerce is a transaction of buying or selling
online.
 It 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.
 Modern electronic commerce typically uses the World
Wide Web for at least one part of the transaction's life
cycle although it may also use other technologies such
as e-mail.
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 Or, in short any commercial activity performed
electronically or online with some technology is a
gift of E-Commerce.
 The World Trade Organization (WTO) distinguishes
six main instruments of electronic commerce:
 The Telephone,
 The Fax,
 The Television,
 Electronic payment and money transfer systems,
 Electronic Data Interchange, and
 The Internet
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FEATURES
 Non-Cash Payment − E-Commerce enables use of
credit cards, debit cards, smart cards, electronic fund
transfer via bank's website and other modes of
electronics payment.
 24x7 Service availability − E-commerce automates
business of enterprises and services provided by them
to customers are available anytime, anywhere. Here
24x7 refers to 24 hours of each seven days of a week.
 Advertising / Marketing − E-commerce increases the
reach of advertising of products and services of
businesses. It helps in better marketing management
of products / services.
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 Improved Sales − Using E-Commerce, orders for the
products can be generated any time, any where without
any human intervention. By this way, dependencies to
buy a product reduce at large and sales increases.
 Support − E-Commerce provides various ways to
provide pre sales and post sales assistance to provide
better services to customers.
 Inventory Management − Using E-Commerce,
inventory management of products becomes
automated. Reports get generated instantly when
required. Product inventory management becomes very
efficient and easy to maintain.
 Communication improvement − E-Commerce
provides ways for faster, efficient, reliable
communication with customers and partners.
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ADVANTAGES
 E-Commerce advantages can be broadly
classified in three major categories:
 Advantages to Organizations
 Advantages to Consumers
 Advantages to Society.
JIMS ROHINI, NEW DELHI- 89 10
Advantages to Organizations
 Using E-Commerce, organization can expand their
market to national and international markets with
minimum capital investment. An organization can
easily locate more customers, best suppliers and
suitable business partners across the globe.
 E-Commerce helps organization to reduce the cost to
create process, distribute, retrieve and manage the
paper based information by digitizing the information.
 E-commerce improves the brand image of the
company.
JIMS ROHINI, NEW DELHI- 89 11
 E-commerce helps organization to provide better
customer services.
 E-Commerce helps to simplify the business processes
and make them faster and efficient.
 E-Commerce reduces paper work a lot.
 E-Commerce increased the productivity of the
organization. It supports "pull" type supply
management. In "pull" type supply management, a
business process starts when a request comes from a
customer and it uses just-in-time manufacturing way.
JIMS ROHINI, NEW DELHI- 89 12
Advantages to Customers
 24x7 support. Customer can do transactions for the
product or enquiry about any product/services
provided by a company any time, any where from any
location. Here 24x7 refers to 24 hours of each seven
days of a week.
 E-Commerce application provides user more options
and quicker delivery of products.
 E-Commerce application provides user more options
to compare and select the cheaper and better option.
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 A customer can put review comments about a product
and can see what others are buying or see the review
comments of other customers before making a final
buy.
 E-Commerce provides option of virtual auctions.
 Readily available information. A customer can see the
relevant detailed information within seconds rather
than waiting for days or weeks.
 E-Commerce increases competition among the
organizations and as result organizations provides
substantial discounts to customers.
JIMS ROHINI, NEW DELHI- 89 14
Advantages to Society
 Customers need not to travel to shop a product thus
less traffic on road and low air pollution.
 E-Commerce helps reducing cost of products so less
affluent people can also afford the products.
 E-Commerce has enabled access to services and
products to rural areas as well which are otherwise not
available to them.
 E-Commerce helps government to deliver public
services like health care, education, social services at
reduced cost and in improved way.
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Disadvantages
 E-Commerce disadvantages can be broadly
classified in two major categories:
 Technical disadvantages
 Non-Technical disadvantages
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Technical Disadvantages
 There can be lack of system security, reliability or standards
owing to poor implementation of e-Commerce.
 Software development industry is still evolving and keeps
changing rapidly. In many countries, network bandwidth
might cause an issue as there is insufficient
telecommunication bandwidth available.
 Special types of web server or other software might be
required by the vendor setting the ecommerce
environment apart from network servers.
 It becomes difficult to integrate E-Commerce software or
website with the existing application or databases. There
could be software/hardware compatibility issue as some E-
Commerce software may be incompatible with some
operating system or any other component.
JIMS ROHINI, NEW DELHI- 89 17
Non-Technical Disadvantages
 Initial cost: The cost of creating / building E-Commerce
application in-house may be very high.
 There could be delay in launching the E-Commerce
application due to mistakes, lack of experience.
 User resistance: User may not trust the site being unknown
faceless seller. Such mistrust makes it difficult to make user
switch from physical stores to online/virtual stores.
 Security/ Privacy: Difficult to ensure security or privacy on
online transactions.
 Lack of touch or feel of products during online shopping. E-
Commerce applications are still evolving and changing
rapidly.
 Internet access is still not cheaper and is inconvenient to use
for many potential customers like one living in remote
villages.
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ORIGIN OF E-COMMERCE
 Electronic Data Interchange(EDI) – It is an electronic
communication method providing standards for
exchanging data via any electronic means, either
internal or external.
 EDI was inspired by developments in military logistics
and inspired development of the “Berlin Airlift” in 1948,
London Airport Cargo EDP Scheme (LACES) at
Heathrow Airport, London, UK, in 1971 and many
more.
 It uses standards such as ANSI X12, EDIFACT, or an
XML-based standard such as RosettaNet in the high
tech industry.
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MOVIE TIME
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TIMELINE OF E-COMMERCE
 1971 or 1972: The ARPANET is used to arrange a
cannabis sale between students at the Stanford
Artificial Intelligence Laboratory and
the Massachusetts Institute of Technology, later
described as "the seminal act of e-commerce" in John
Markoff's book What the Dormouse Said.
 1979: Michael Aldrich demonstrates the first online
shopping system.
 1981: Thomson Holidays UK is the first business-to-
business online shopping system to be installed.
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 1982: Minitel was introduced nationwide in France
by France Télécom and used for online ordering.
 1984: Gateshead SIS/Tesco is first B2C online shopping
system and Mrs. Snowball, 72, is the first online home
shopper
 1984: In April 1984, CompuServe launches the
Electronic Mall in the USA and Canada. It is the first
comprehensive electronic commerce service.
 1989: In May 1989, Sequoia Data Corp. Introduced
Compumarket The first internet based system for e-
commerce. Sellers and buyers could post items for sale
and buyers could search the database and make
purchases with a credit card.
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 1990: Tim Berners-Lee writes the first web
browser, WorldWideWeb, using a NeXT computer.
 1994: Netscape releases the Navigator browser in
October under the code name Mozilla. Netscape 1.0 is
introduced in late 1994 with SSL encryption that made
transactions secure.
 1994: Ipswitch IMail Server becomes the first software
available online for sale and immediate download via a
partnership between Ipswitch, Inc. and OpenMarket.
 1995: Jeff Bezos launches Amazon.com and the first
commercial-free 24-hour.
 1995: Also, internet-only radio stations, Radio HK
and NetRadio start broadcasting.
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 1995: eBay is founded by computer programmer Pierre
Omidyar as AuctionWeb.
 1996: E-gold, the first Digital Currency founded and
backed by gold.
 1996: IndiaMART B2B marketplace established in
India.
 1999: Alibaba Group is established in
China. Business.com sold for US $7.5 million to
eCompanies, which was purchased in 1997 for US
$149,000.
 1999: The peer-to-peer filesharing
software Napster launches. ATG Stores launches to sell
decorative items for the home online.
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 2000: The dot-com bust.
 2001: Alibaba.com achieved profitability in
December 2001.
 2002: eBay acquires PayPal for $1.5 billion.
 2003: Amazon.com posts first yearly profit.
 2005: eBay acquires Baazee.com(founded in 1999)
and enters the Indian market.
 2007-09: Flipkart and Myntra were founded around
the same time followed by Mobikwik in 2009.
 2008-09: bitcoin was introduced marking the start
of Digital currencies.
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 2010: Flipkart pioneered the Cash on Delivery (CoD)
model, increasing e-commerce reach dramatically.
 2012: Junglee was launched by Amazon as a price
aggregator and comparison tool. This marked Amazon’s
low cost baby steps in the Indian market, especially at a
time when the FDI regulations were in a state of flux.
 2013: Myntra piloted a one hour delivery system in Delhi
& Bangalore for delivery addresses located within a 5
kilometer radius of their warehouse by process
innovation and reducing lag time.
 2013: Amazon started providing CoD option in India,
the only country in the world, to keep up with the
market norm.
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 2014: Flipkart acquired Myntra and raised $1 billion at an
enormous valuation of $7 billion
 2014: Amazon tied up with BPCL in Mumbai and Delhi
& local grocery stores allowing customers to pick up their
packages from the retail chain In&Out run by BPCL at
select filling stations, and quietly expands to all
categories that major retailers are present, and stocks 15
million products, 5 million more than Flipkart
 2014: Alibaba Group has the largest Initial public
offering ever, worth $25 billion.
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 Michael Aldrich, an English inventor, innovator and
entrepreneur is credited with developing the predecessor
to online shopping.
 The idea came about during a stroll with his wife and
Labrador when Aldrich lamented about their weekly
supermarket shopping expedition.
 This conversation sparked an idea to hook a television to
their supermarket to deliver the groceries. Immediately
after the discussion Aldrich quickly planned and
implemented his idea.
 In 1979 Aldrich connected a television set to a transaction
processing computer with a telephone line and created
what he coined, “teleshopping,” meaning shopping at a
distance.
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 In 1978 France Télécom, the country's PTT, began designing the
Minitel network. By distributing terminals that could access a
nationwide electronic directory of telephone and address
information. Millions of terminals were lent for free to telephone
subscribers.
 In exchange for the terminal, the Minitel subscriber would be
given free only the yellow pages (classified commercial listings,
with advertisements); as the white pages were accessible for free
on Minitel, and they could be searched by a reasonably
intelligent search engine; much faster than flipping through a
paper directory.
 Minitel allowed access to various categories of services like phone
directory (free), mail-order (retail), airline or train ticket
purchases, information services, databases access and connection
to message boards.
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Business Models
 E-Commerce or Electronics Commerce business
models can generally categorized in following
categories:-
 Business - to - Business (B2B)
 Business - to - Consumer (B2C)
 Consumer - to - Consumer (C2C)
 Consumer - to - Business (C2B)
 Business - to - Government (B2G)
 Government - to - Business (G2B)
 Government - to - Citizen (G2C)
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Business-to-Consumer (B2C)
 Common notion about e-commerce is that it is a
business selling something through an online
interface to a consumer. And this is the Business-
to-Consumer (B2C) model. The most widely
known ecommerce businesses, such as Flipkart,
Amazon, etc. are ones where a retailer sells directly
to a consumer.
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 Website following B2B business model sells its product
to an intermediate buyer who then sells the product to
the final customer.
 As an example, 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.
Business-to-Business (B2B)
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Consumer-to-Business (C2B)
 In a consumer-to-business (C2B) model, consumers
sell products and services to businesses, instead of it
being the other way around. Example - Freelancer
websites elance.com, where the end-user lists jobs that
businesses (either individual or larger businesses) can
buy from them. In a way, job portals are also C2B as
here, the ‘end-user’ (the prospective employee) lists
their ‘product’ (resume) to attract businesses to hire
them.
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 In a consumer-to-consumer (C2C) model, the
ecommerce website serves to facilitate the
transaction between two consumers. Auction sites
such as eBay (specifically when items are sold by
individuals, rather than businesses listing
products for auction) is a classic example of C2C e-
commerce model.
Consumer-to-Consumer (C2C)
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Business-to-Government (B2G)
 B2G model is a variant of B2B model. Such websites
are used by government to trade and exchange
information with various business organizations. Such
websites are accredited by the government and provide
a medium to businesses to submit application forms to
the government.
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Government - to - Business (G2B)
 Government uses G2B model to approach business
organizations. These models support auctions, tenders
and application submission functionalities.
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Government-to-Citizen (G2C)
 Government uses G2C model to approach citizens
directly. Examples for such models can be websites
providing services like registration for birth, marriage,
etc. A main objective of G2C websites is to reduce
average time for servicing people’s requests for various
government linked services.
JIMS ROHINI, NEW DELHI- 89 41
The process of ecommerce
 The consumer uses web browser to connect to the
home page of a merchant web site on the internet.
 The consumer browses the catalogue of products
featured on the site and selects items to purchase. The
selected items are placed in electronic equivalent of a
shopping cart.
 When the consumer is ready to complete the purchase
of selected items, The site provides a bill and ship to
address for purchase and delivery.
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Order Processing
Purchasing a product initiates the system of physical
distribution.
Using a successful order fulfillment system, employees
can track customer orders, locate products, and resolve
any problems that arise as items move from warehouse
to shipping company to customer's doorstep.
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Warehousing and Inventory Control
Online businesses that deal in material goods still
need to store and inventory their products. An e-
commerce business needs a warehousing system
that makes it easy to take and fill orders quickly.
Goods that sell quickly should be placed near the
dock doors.
Products that are similar to each other should be
kept together so they can be located easily
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Setting up an
E-Commerce BUSINESS
 Creating a proprietary (own) ecommerce website
Starting a proprietary ecommerce business requires a
web development team, online marketing team and a
payment gateway for receiving payments. Starting a
proprietary ecommerce website is a long-term
initiative and requires a good amount of investment in
terms of money and effort to build up a successful
business.
46JIMS ROHINI, NEW DELHI- 89
GST registration
 A GST registration is a must for becoming a seller on
a ecommerce portal or while starting a proprietary
ecommerce website.
 GST registration is required for anyone selling goods or
products in India and must be obtained from central
board of excise and custom.
47JIMS ROHINI, NEW DELHI- 89
Bank Account
 Once the Company is incorporated a bank account
can easily be opened in the name of the business by
contacting a Bank.
 Opening of bank account is essential to list on a
ecommerce marketplace or obtain payment gateway
for a ecommerce website.
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Payment Gateway
• A payment gateway would be required for a proprietary
ecommerce website to process customer payments.
• Payment gateway provides allow for the website to accept
credit card, debit card, net banking, internet banking
payments from multiple banks and credit card companies.
• Therefore, one payment gateway is sufficient to accept
many forms of online payments.
• Once, a payment is received from the customer, the
payment is sent to the bank account of the business by the
payment gateway provide in one or two business days.
49JIMS ROHINI, NEW DELHI- 89
ONLINE Transactions
 There are various ways of making payments through
electronic modes such as electronic wallets, smart
cards, software wallets, credit cards, debit cards, net
banking and more.
 Online stores that collect money from consumers in
any other way than Cash need to rely on a service
provider typically known as a Payment Gateway
provider.
 A payment gateway is an e-commerce application
service provider that processes credit card payments
for e-businesses and online retailers.
50JIMS ROHINI, NEW DELHI- 89
 It acts as the go between the consumer who is making
purchases and the bank that is authorizing the bank
issued payment instrument such as a credit card to be
used for the payment.
 It is the equivalent of making a payment over the
counter when one is physically purchasing something.
These payment gateways are like the middlemen
between the purchaser and the company providing the
product.
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Various mode of payments
 Credit cards – The most widely used form of
electronic money today. Several million credits cards
are being used to make online payments in India. Many
E-Commerce sites allow you to pre-store your credit
card number securely so that you don’t have to key in
the number each time. Currently, the largest user base
in e-commerce uses credit cards for payments.
 Debit card – The second largest e-commerce payment
medium in India. Using a debit card proves to be a
preferred choice for customers who want to stay within
their spending capacity.
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 Net Banking – Another easy way to make online
payments. It is similar to using a debit card for paying
money that exists in the user’s current or savings
account but it does not require the user to have a card
for the payment purposes. While completing the
purchase the consumers needs to put in their net
banking id and pin.
 Reward Points – An indirect way for online
payments. On certain things that are purchased by a
person, a number of rewards points will be awarded
which will get added to the his account. In the next
transaction, the buyer can choose to pay for their next
purchase using the accumulated rewards points, which
will replace what they would otherwise be paying as
money.
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 Prepaid Cards – This is a relatively new and fast
growing payment method. Typically a consumer may
buy or be gifted a prepaid card that can be used
online. Usually this would be for a particular brand
or for a retailer. Some online retailers have their own
gift cards which are sold to their customers, who in
turn may use it for themselves or as give them as
gifts. Gift cards have their own authentication
system and this may vary from issuer to issuer.
Summary If you are a new online retail store or a
brand planning to set up an online store, you should
contact a reliable payment gateway partner to assist
with getting your online store to accept various
forms of payment as above. (Cont.)
54JIMS ROHINI, NEW DELHI- 89
(Cont.)
For Cash on Delivery and Bank Cheques, you
would need to have a separate process and this
would have to be reflected in your web store
software as an option for consumers to choose.
Select a good Payment Gateway provider who gives
you the maximum options and is also constantly
adding new options based on the evolving
marketplace and methods of payment. In case
companies like Net Distribution are operating your
online store, they will take care of selecting a good
payment gateway that accepts all forms of
payments that may be applicable in the
ecommerce industry in India.
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 Mobile Money – Out of India’s 1.2 billion people,
only a small percentage have bank accounts. Amongst
that massive unbanked population, many hundreds of
millions have mobile phones, and for them, mobile
money is likely to be hugely beneficial. Even for
smaller transactions, where credit cards are not
accepted, it might be simpler to just hand over cash.
But if you don’t have sufficient cash, then mobile
money becomes useful. However, mobile money
would be convenient to buy a movie ticket or pay your
utility bills on your phone, where otherwise you might
have to key in your entire credit card number, CVV
number, etc, every time you make a payment.(Cont.)
56JIMS ROHINI, NEW DELHI- 89
(Cont.)
It’s meant for transactions between Rs 50 – Rs 500 to
buy things like games, music, e-books, and virtual
goods in games, and where people may not want to use
credit or debit cards. In India, this is a developing
payment option and still evolving in terms of
regulations and guidelines. As on date the main
method to pay for products using your mobile is still
linked to your bank account. Payments using mobile
carrier billing i.e. where your payments are deducted
from your mobile prepaid balance or billed to your
post-paid account are still restricted to services
provided through the mobile operator for value added
services. Mobile carrier billing has not yet started for
ecommerce transactions though this is expected to
flourish soon.
57JIMS ROHINI, NEW DELHI- 89
Legal Aspects
 The Information Technology Act, 2000 (“IT Act”) deals
with contractual aspects of use of electronic records.
 The validity of electronic transactions is established
under the IT Act. The act establishes that an
ecommerce transaction is legal if the offer and
acceptance are made through a ‘reasonable’ mode.
 The objectives of the Information Technology Act, as
outlined in the preamble, are to provide legal
recognition for E-commerce transactions.
 The Act lays down procedures for networking
operations and for civil wrongs and offences.
 The Indian Information Technology Act does not have
any express provision regarding the validity or
formation of online contracts.
 A communication sent by an offeror to an offeree
through indirect means, such as an email that passes
multiple servers and spam mails, is not regarded as a
reasonable mode under the IT act. Reasonable modes
of acceptance in an ecommerce transaction are:
 Direct mail from the offeree to the offeror.
 Acceptance by conduct, which is pressing an ‘Accept’
button to an offer.
 The Information Technology (Amended) Act, ITAA, was
amended in 2008 to increase security of e-commerce
transactions, with special provisions for legal recognition
of digital signatures and electronic documents. Section 43A
of ITAA holds ecommerce companies accountable for
protection of personal data.
 When an ecommerce company fails to protect personal
data of its customers or is negligent in maintaining and
implementing reasonable security practices, and if this
results in wrongful loss of an online buyer, the laws are
clear that its body corporate is wholly liable to pay the
damages by means of monetary compensation.
Flipkart.COM
Company Profile
Founders: Sachin Bansal; Binny Bansal
CEO : Kalyan Krishnamurthy
Founded: 5
th
Sept. 2007
Headquarters: Bangalore, Karnataka, IN
Subsidiaries: Myntra, Jabong.com, PhonePe,
eBay.in (India), eKart, Mallers.Inc, etc.
61JIMS ROHINI, NEW DELHI- 89
 Flipkart was founded by Sachin Bansal and Binny Bansal,
both alumni of the Indian Institute of Technology Delhi.
 They worked for Amazon, and left to create their new
company incorporated in October 2007 as Flipkart
Online Services Pvt. Ltd.
 The first product they sold was the book Leaving
Microsoft To Change The World to a customer from
Hyderabad.
 Flipkart now employs more than 33,000 people.
 After the success of its 2014 Big Billion Sale, a second Big
Billion Sale was carried out , where it is reported that
they saw a business turnover of $300 million in gross
merchandise volume.
JIMS ROHINI, NEW DELHI- 89 62
ACQUISITIONS
 2011: Flipkart acquired the rights to Chakpak's , a
Bollywood news digital catalogue, with 40,000
filmographies, 10,000 movies and close to 50,000 ratings.
 2014: Acquired Myntra in an estimated 20
billion (US$310 million) deal.
 2015: Flipkart acquired a mobile marketing start-up
Appiterate(DSYN Technologies Pvt. Ltd.) to strengthen
its mobile platform.
 2015: Flipkart bought a minority stake in navigation and
route optimization startup MapmyIndia to help improve
its delivery using MapmyIndia assets.
JIMS ROHINI, NEW DELHI- 89 63
• 2016: Flipkart’s Myntra acquires rival fashion shopping
site Jabong for $70 million.
• 2017: In January, Flipkart funded Parenting Network
Tinystep With $2 Million.
• 2017: In April, in exchange for an equity stake in
Flipkart, eBay agreed to make a $500 million cash
investment in and sell its eBay business to Flipkart;
however, according to a company statement eBay would
continue to operate as a separate entity from Flipkart.
JIMS ROHINI, NEW DELHI- 89 64
AMAZON.com
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Company Profile
Founders: Jeff Bezos
CEO : Jeff Bezos
Founded: 5 July 1994
Headquarters: Seattle, Washington, United States
Subsidiaries: Zappos, Audible.Inc., Souq.com ,AbeBooks
HISTORY
 The company was, spurred by what Amazon
founder Jeff Bezos called his "regret minimization
framework," which described his efforts to fend off any
regrets for not participating sooner in the Internet
business boom during that time.
 In 1994, Bezos left his employment as vice-president
of D. E. Show& co, a Wall Street firm, and moved to
Seattle, Washington.
 He began to work on a business plan for what would
eventually become Amazon.com.
66JIMS ROHINI, NEW DELHI- 89
 On July 5, 1994, Bezos incorporated the company as
Cadabra.Inc.
 Bezos changed the name to Amazon.com, Inc. a few
months later, after a lawyer misheard its original name
as "cadaver“.
 In September 1994, Bezos purchased the URL
Relentless.com and briefly considered naming his
online store Relentless, but friends told him the name
sounded a bit sinister. The domain is still owned by
Bezos and still redirects to the retailer.
 The company went online as Amazon.com in 1995.
JIMS ROHINI, NEW DELHI- 89 67
Mergers and acquisitions: Investment
 2008: Engine Yard, a Ruby-on-Rails platform as a services
(PaaS) company.
 2010: Living Social, a local deal site.
 2014: Acquired the '.buy' domain in an auction for
$4,588,888.
 2014: Amazon announces a US$2 billion investment in
India.
 2016: Amazon announces an additional US$3 billion
investment in India.
 2017: Between May and July 2017, Amazon had pumped
in Rs. 2000 Cr. in India with Rs. 130 Cr. pumped its
payment arm Amazon Pay India.
68JIMS ROHINI, NEW DELHI- 89
Subsidiaries
 2003: A9.com, a company focused on researching and
building innovative technology
 2004: Lab126, developers of integrated consumer electronics
such as the Kindle.
 2007: Endless.com, an e-commerce brand focusing on shoes.
 2007: Brilliance Audio, the largest independent audio book
producer in the US.
 2009: Create Space, self-publishing services for independent
content creators, publishers, film studios and music labels;
created by the internal merger of Custom Flix (on-demand
DVDs for independent filmmakers) and Book Surge (self-
publishing, on-demand printing, online distribution), both
originally acquired 2005.
JIMS ROHINI, NEW DELHI- 89 69
Product & Services
 AmazonFresh
 Amazon Prime
 Amazon Web Services
 Alexa
 Appstore
 Amazon Drive
 Echo
 Kindle
 Fire tablets
 Fire TV
 Video
 Kindle Store
 Music
 Music Unlimited
 Amazon Digital Game
Store
 Amazon Studios
 AmazonWireless
JIMS ROHINI, NEW DELHI- 89 70
Alibaba group
JIMS ROHINI, NEW DELHI- 89 71
Company Profile
Founders: Jack Ma
CEO : Daniel Zhang
Founded: 4 April 1999
Headquarters: Hangzhou, China
Subsidiaries: Vendio, Shenzhen OneTouch, Yahoo Koubei, etc.
History
 December 1999, Hector Ma and 17 other founders released
their first online marketplace, named "Alibaba Online".
 From 1999 to 2000, Alibaba Group raised a total of
US$25 Million from SoftBank, Goldman Sachs, Fidelity and
some other institutions.
 December 2001, Alibaba.com achieved profitability.
 May 2003,Taobao was founded as a consumer e-commerce
platform.
 December 2004, Alipay, which started as a service on the
Taobao platform, became a separate business.
 October 2005, Alibaba Group took over the operation of
China Yahoo as part of its strategic partnership with Yahoo
Inc.
72JIMS ROHINI, NEW DELHI- 89
Alibaba Group Services
 AutoNavi
 Taobao
 Alipay
 Alibaba Cloud (Aliyun)
 AliExpress
 Yahoo! China
 Aliwangwang
 Laiwang
 Alibaba Pictures
 Youku Tudou
 11 Main
 South China Morning
Post
 Ali Health
 Alisports
JIMS ROHINI, NEW DELHI- 89 73
eBAY.IN
JIMS ROHINI, NEW DELHI- 89 74
Company Profile
Founders: Pierre Omidyar
CEO : Devin Wenig
Founded: 3 September 1995
Headquarters: San Jose, California, United States
Subsidiaries:StubHub, mobile.de, GittiGidiyor, Auction Co., etc.
History
 The AuctionWeb was founded in California on
September 3, 1995, by French-born Iranian-
American computer programmer Pierre Omidyar as
part of a larger personal site.
 One of the first items sold on AuctionWeb was a
broken laser pointer for $14.83.
 Astonished, Omidyar contacted the winning bidder to
ask if he understood that the laser pointer was broken.
In his responding email, the buyer explained: "I'm a
collector of broken laser pointers.
75JIMS ROHINI, NEW DELHI- 89
Acquisitions
StubHub
Craigslist
GittiGidiyor
Corrigon
76JIMS ROHINI, NEW DELHI- 89
Contribution in Indian Economy
 E-Commerce is a growing sector in India. Just like the
growth of IT industry in India through the 1990s, the 2010s
will be remembered for the growth in the E-Commerce
industry. In its present state the contribution of E-
Commerce to GDP is around 0.2% which is expected to
grow 15 times to around 2.5% by 2030.
 By 2030 the contribution to GDP by E-Commerce is
expected to reach to around 300 Billion Dollars which is
around 20 Billion Dollars in its present state.
77JIMS ROHINI, NEW DELHI- 89
The impact of E-commerce in various sectors
78JIMS ROHINI, NEW DELHI- 89
 Technology- One of the major drivers of technology will be E-
Commerce industry and vice versa. We are seeing new age
technological solutions(AI/Machine Learning) being taken up to
solve the business problems to bring commerce to everyone
digitally. This is seen in both B2C and B2B sector. Investment into
technology sector is happening to drive growth in the E-Commerce
domain.
 Logistics- Logistics industry is both a bottleneck and a driver for e-
commerce industry. For the same we see how last mile and inter-
city logistics solutions have come up to digitally connect the
different stakeholders across the country. The Uber model of
moving passengers is implemented in some form or the other in the
logistic sector. The growth of E-Commerce will drive innovation in
the logistic sector to make the products available to the end user.
 Travel- At the moment 70% of the contribution to E-
Commerce comes from the travel sector which includes the
online ticket bookings to other travel arrangements. This
has made the market competitive by bringing all players on
the same platform and has also given consumer more
options. Travel industry will be earliest adopters to become
completely digitised and that is thanks to E-Commerce.
 Education- One of the industries to have the most
profound impact of E-Commerce is the education. The
ability of E-Commerce to provide quality education to
everyone is immense. India will have one of the biggest set
of youth population and hence the scope for education
sector to be the biggest achievers because of E-Commerce
is sure
79JIMS ROHINI, NEW DELHI- 89
JIMS ROHINI, NEW DELHI- 89 80
THANK YOU
Group 5:-
 BHAVNESH
MADAN
 SHASHANK GUPTA
 SUVRAJIT SAHA
 UDAY SHARMA

More Related Content

E - Commerce

  • 1. By-Group 5 PGDM GEN. Sec-B JIMS ROHINI, NEW DELHI- 89 1
  • 2. CONTENTS  What is E-Commerce ?  Features, advantages, disadvantages  Origin  Timeline  Business Models  E-Commerce Process 2JIMS ROHINI, NEW DELHI- 89
  • 3.  Online Transactions  Various Modes of Payment  Legal Aspects  Real Examples: Flipkart, Amazon, eBay, Alibaba  Contribution in Indian Economy 3JIMS ROHINI, NEW DELHI- 89
  • 4. WHAT IS E-COMMERCE ?  E-commerce is a transaction of buying or selling online.  It 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.  Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle although it may also use other technologies such as e-mail. 4JIMS ROHINI, NEW DELHI- 89
  • 5.  Or, in short any commercial activity performed electronically or online with some technology is a gift of E-Commerce.  The World Trade Organization (WTO) distinguishes six main instruments of electronic commerce:  The Telephone,  The Fax,  The Television,  Electronic payment and money transfer systems,  Electronic Data Interchange, and  The Internet 5JIMS ROHINI, NEW DELHI- 89
  • 6. FEATURES  Non-Cash Payment − E-Commerce enables use of credit cards, debit cards, smart cards, electronic fund transfer via bank's website and other modes of electronics payment.  24x7 Service availability − E-commerce automates business of enterprises and services provided by them to customers are available anytime, anywhere. Here 24x7 refers to 24 hours of each seven days of a week.  Advertising / Marketing − E-commerce increases the reach of advertising of products and services of businesses. It helps in better marketing management of products / services. JIMS ROHINI, NEW DELHI- 89 6
  • 7.  Improved Sales − Using E-Commerce, orders for the products can be generated any time, any where without any human intervention. By this way, dependencies to buy a product reduce at large and sales increases.  Support − E-Commerce provides various ways to provide pre sales and post sales assistance to provide better services to customers.  Inventory Management − Using E-Commerce, inventory management of products becomes automated. Reports get generated instantly when required. Product inventory management becomes very efficient and easy to maintain.  Communication improvement − E-Commerce provides ways for faster, efficient, reliable communication with customers and partners. JIMS ROHINI, NEW DELHI- 89 7
  • 8. JIMS ROHINI, NEW DELHI- 89 8
  • 9. JIMS ROHINI, NEW DELHI- 89 9
  • 10. ADVANTAGES  E-Commerce advantages can be broadly classified in three major categories:  Advantages to Organizations  Advantages to Consumers  Advantages to Society. JIMS ROHINI, NEW DELHI- 89 10
  • 11. Advantages to Organizations  Using E-Commerce, organization can expand their market to national and international markets with minimum capital investment. An organization can easily locate more customers, best suppliers and suitable business partners across the globe.  E-Commerce helps organization to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information.  E-commerce improves the brand image of the company. JIMS ROHINI, NEW DELHI- 89 11
  • 12.  E-commerce helps organization to provide better customer services.  E-Commerce helps to simplify the business processes and make them faster and efficient.  E-Commerce reduces paper work a lot.  E-Commerce increased the productivity of the organization. It supports "pull" type supply management. In "pull" type supply management, a business process starts when a request comes from a customer and it uses just-in-time manufacturing way. JIMS ROHINI, NEW DELHI- 89 12
  • 13. Advantages to Customers  24x7 support. Customer can do transactions for the product or enquiry about any product/services provided by a company any time, any where from any location. Here 24x7 refers to 24 hours of each seven days of a week.  E-Commerce application provides user more options and quicker delivery of products.  E-Commerce application provides user more options to compare and select the cheaper and better option. JIMS ROHINI, NEW DELHI- 89 13
  • 14.  A customer can put review comments about a product and can see what others are buying or see the review comments of other customers before making a final buy.  E-Commerce provides option of virtual auctions.  Readily available information. A customer can see the relevant detailed information within seconds rather than waiting for days or weeks.  E-Commerce increases competition among the organizations and as result organizations provides substantial discounts to customers. JIMS ROHINI, NEW DELHI- 89 14
  • 15. Advantages to Society  Customers need not to travel to shop a product thus less traffic on road and low air pollution.  E-Commerce helps reducing cost of products so less affluent people can also afford the products.  E-Commerce has enabled access to services and products to rural areas as well which are otherwise not available to them.  E-Commerce helps government to deliver public services like health care, education, social services at reduced cost and in improved way. JIMS ROHINI, NEW DELHI- 89 15
  • 16. Disadvantages  E-Commerce disadvantages can be broadly classified in two major categories:  Technical disadvantages  Non-Technical disadvantages JIMS ROHINI, NEW DELHI- 89 16
  • 17. Technical Disadvantages  There can be lack of system security, reliability or standards owing to poor implementation of e-Commerce.  Software development industry is still evolving and keeps changing rapidly. In many countries, network bandwidth might cause an issue as there is insufficient telecommunication bandwidth available.  Special types of web server or other software might be required by the vendor setting the ecommerce environment apart from network servers.  It becomes difficult to integrate E-Commerce software or website with the existing application or databases. There could be software/hardware compatibility issue as some E- Commerce software may be incompatible with some operating system or any other component. JIMS ROHINI, NEW DELHI- 89 17
  • 18. Non-Technical Disadvantages  Initial cost: The cost of creating / building E-Commerce application in-house may be very high.  There could be delay in launching the E-Commerce application due to mistakes, lack of experience.  User resistance: User may not trust the site being unknown faceless seller. Such mistrust makes it difficult to make user switch from physical stores to online/virtual stores.  Security/ Privacy: Difficult to ensure security or privacy on online transactions.  Lack of touch or feel of products during online shopping. E- Commerce applications are still evolving and changing rapidly.  Internet access is still not cheaper and is inconvenient to use for many potential customers like one living in remote villages. JIMS ROHINI, NEW DELHI- 89 18
  • 19. ORIGIN OF E-COMMERCE  Electronic Data Interchange(EDI) – It is an electronic communication method providing standards for exchanging data via any electronic means, either internal or external.  EDI was inspired by developments in military logistics and inspired development of the “Berlin Airlift” in 1948, London Airport Cargo EDP Scheme (LACES) at Heathrow Airport, London, UK, in 1971 and many more.  It uses standards such as ANSI X12, EDIFACT, or an XML-based standard such as RosettaNet in the high tech industry. 19JIMS ROHINI, NEW DELHI- 89
  • 20. MOVIE TIME 20JIMS ROHINI, NEW DELHI- 89
  • 21. TIMELINE OF E-COMMERCE  1971 or 1972: The ARPANET is used to arrange a cannabis sale between students at the Stanford Artificial Intelligence Laboratory and the Massachusetts Institute of Technology, later described as "the seminal act of e-commerce" in John Markoff's book What the Dormouse Said.  1979: Michael Aldrich demonstrates the first online shopping system.  1981: Thomson Holidays UK is the first business-to- business online shopping system to be installed. 21JIMS ROHINI, NEW DELHI- 89
  • 22.  1982: Minitel was introduced nationwide in France by France Télécom and used for online ordering.  1984: Gateshead SIS/Tesco is first B2C online shopping system and Mrs. Snowball, 72, is the first online home shopper  1984: In April 1984, CompuServe launches the Electronic Mall in the USA and Canada. It is the first comprehensive electronic commerce service.  1989: In May 1989, Sequoia Data Corp. Introduced Compumarket The first internet based system for e- commerce. Sellers and buyers could post items for sale and buyers could search the database and make purchases with a credit card. 22JIMS ROHINI, NEW DELHI- 89
  • 23.  1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer.  1994: Netscape releases the Navigator browser in October under the code name Mozilla. Netscape 1.0 is introduced in late 1994 with SSL encryption that made transactions secure.  1994: Ipswitch IMail Server becomes the first software available online for sale and immediate download via a partnership between Ipswitch, Inc. and OpenMarket.  1995: Jeff Bezos launches Amazon.com and the first commercial-free 24-hour.  1995: Also, internet-only radio stations, Radio HK and NetRadio start broadcasting. 23JIMS ROHINI, NEW DELHI- 89
  • 24.  1995: eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.  1996: E-gold, the first Digital Currency founded and backed by gold.  1996: IndiaMART B2B marketplace established in India.  1999: Alibaba Group is established in China. Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997 for US $149,000.  1999: The peer-to-peer filesharing software Napster launches. ATG Stores launches to sell decorative items for the home online. 24JIMS ROHINI, NEW DELHI- 89
  • 25.  2000: The dot-com bust.  2001: Alibaba.com achieved profitability in December 2001.  2002: eBay acquires PayPal for $1.5 billion.  2003: Amazon.com posts first yearly profit.  2005: eBay acquires Baazee.com(founded in 1999) and enters the Indian market.  2007-09: Flipkart and Myntra were founded around the same time followed by Mobikwik in 2009.  2008-09: bitcoin was introduced marking the start of Digital currencies. 25JIMS ROHINI, NEW DELHI- 89
  • 26.  2010: Flipkart pioneered the Cash on Delivery (CoD) model, increasing e-commerce reach dramatically.  2012: Junglee was launched by Amazon as a price aggregator and comparison tool. This marked Amazon’s low cost baby steps in the Indian market, especially at a time when the FDI regulations were in a state of flux.  2013: Myntra piloted a one hour delivery system in Delhi & Bangalore for delivery addresses located within a 5 kilometer radius of their warehouse by process innovation and reducing lag time.  2013: Amazon started providing CoD option in India, the only country in the world, to keep up with the market norm. 26JIMS ROHINI, NEW DELHI- 89
  • 27.  2014: Flipkart acquired Myntra and raised $1 billion at an enormous valuation of $7 billion  2014: Amazon tied up with BPCL in Mumbai and Delhi & local grocery stores allowing customers to pick up their packages from the retail chain In&Out run by BPCL at select filling stations, and quietly expands to all categories that major retailers are present, and stocks 15 million products, 5 million more than Flipkart  2014: Alibaba Group has the largest Initial public offering ever, worth $25 billion. 27JIMS ROHINI, NEW DELHI- 89
  • 28.  Michael Aldrich, an English inventor, innovator and entrepreneur is credited with developing the predecessor to online shopping.  The idea came about during a stroll with his wife and Labrador when Aldrich lamented about their weekly supermarket shopping expedition.  This conversation sparked an idea to hook a television to their supermarket to deliver the groceries. Immediately after the discussion Aldrich quickly planned and implemented his idea.  In 1979 Aldrich connected a television set to a transaction processing computer with a telephone line and created what he coined, “teleshopping,” meaning shopping at a distance. 28JIMS ROHINI, NEW DELHI- 89
  • 29.  In 1978 France Télécom, the country's PTT, began designing the Minitel network. By distributing terminals that could access a nationwide electronic directory of telephone and address information. Millions of terminals were lent for free to telephone subscribers.  In exchange for the terminal, the Minitel subscriber would be given free only the yellow pages (classified commercial listings, with advertisements); as the white pages were accessible for free on Minitel, and they could be searched by a reasonably intelligent search engine; much faster than flipping through a paper directory.  Minitel allowed access to various categories of services like phone directory (free), mail-order (retail), airline or train ticket purchases, information services, databases access and connection to message boards. 29JIMS ROHINI, NEW DELHI- 89
  • 30. Business Models  E-Commerce or Electronics Commerce business models can generally categorized in following categories:-  Business - to - Business (B2B)  Business - to - Consumer (B2C)  Consumer - to - Consumer (C2C)  Consumer - to - Business (C2B)  Business - to - Government (B2G)  Government - to - Business (G2B)  Government - to - Citizen (G2C) JIMS ROHINI, NEW DELHI- 89 30
  • 31. Business-to-Consumer (B2C)  Common notion about e-commerce is that it is a business selling something through an online interface to a consumer. And this is the Business- to-Consumer (B2C) model. The most widely known ecommerce businesses, such as Flipkart, Amazon, etc. are ones where a retailer sells directly to a consumer. 31JIMS ROHINI, NEW DELHI- 89
  • 32. JIMS ROHINI, NEW DELHI- 89 32
  • 33.  Website following B2B business model sells its product to an intermediate buyer who then sells the product to the final customer.  As an example, 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. Business-to-Business (B2B) 33JIMS ROHINI, NEW DELHI- 89
  • 34. JIMS ROHINI, NEW DELHI- 89 34
  • 35. Consumer-to-Business (C2B)  In a consumer-to-business (C2B) model, consumers sell products and services to businesses, instead of it being the other way around. Example - Freelancer websites elance.com, where the end-user lists jobs that businesses (either individual or larger businesses) can buy from them. In a way, job portals are also C2B as here, the ‘end-user’ (the prospective employee) lists their ‘product’ (resume) to attract businesses to hire them. 35JIMS ROHINI, NEW DELHI- 89
  • 36. JIMS ROHINI, NEW DELHI- 89 36
  • 37.  In a consumer-to-consumer (C2C) model, the ecommerce website serves to facilitate the transaction between two consumers. Auction sites such as eBay (specifically when items are sold by individuals, rather than businesses listing products for auction) is a classic example of C2C e- commerce model. Consumer-to-Consumer (C2C) 37JIMS ROHINI, NEW DELHI- 89
  • 38. JIMS ROHINI, NEW DELHI- 89 38
  • 39. Business-to-Government (B2G)  B2G model is a variant of B2B model. Such websites are used by government to trade and exchange information with various business organizations. Such websites are accredited by the government and provide a medium to businesses to submit application forms to the government. JIMS ROHINI, NEW DELHI- 89 39
  • 40. Government - to - Business (G2B)  Government uses G2B model to approach business organizations. These models support auctions, tenders and application submission functionalities. 40JIMS ROHINI, NEW DELHI- 89
  • 41. Government-to-Citizen (G2C)  Government uses G2C model to approach citizens directly. Examples for such models can be websites providing services like registration for birth, marriage, etc. A main objective of G2C websites is to reduce average time for servicing people’s requests for various government linked services. JIMS ROHINI, NEW DELHI- 89 41
  • 42. The process of ecommerce  The consumer uses web browser to connect to the home page of a merchant web site on the internet.  The consumer browses the catalogue of products featured on the site and selects items to purchase. The selected items are placed in electronic equivalent of a shopping cart.  When the consumer is ready to complete the purchase of selected items, The site provides a bill and ship to address for purchase and delivery. 42JIMS ROHINI, NEW DELHI- 89
  • 43. 43JIMS ROHINI, NEW DELHI- 89
  • 44. Order Processing Purchasing a product initiates the system of physical distribution. Using a successful order fulfillment system, employees can track customer orders, locate products, and resolve any problems that arise as items move from warehouse to shipping company to customer's doorstep. 44JIMS ROHINI, NEW DELHI- 89
  • 45. Warehousing and Inventory Control Online businesses that deal in material goods still need to store and inventory their products. An e- commerce business needs a warehousing system that makes it easy to take and fill orders quickly. Goods that sell quickly should be placed near the dock doors. Products that are similar to each other should be kept together so they can be located easily 45JIMS ROHINI, NEW DELHI- 89
  • 46. Setting up an E-Commerce BUSINESS  Creating a proprietary (own) ecommerce website Starting a proprietary ecommerce business requires a web development team, online marketing team and a payment gateway for receiving payments. Starting a proprietary ecommerce website is a long-term initiative and requires a good amount of investment in terms of money and effort to build up a successful business. 46JIMS ROHINI, NEW DELHI- 89
  • 47. GST registration  A GST registration is a must for becoming a seller on a ecommerce portal or while starting a proprietary ecommerce website.  GST registration is required for anyone selling goods or products in India and must be obtained from central board of excise and custom. 47JIMS ROHINI, NEW DELHI- 89
  • 48. Bank Account  Once the Company is incorporated a bank account can easily be opened in the name of the business by contacting a Bank.  Opening of bank account is essential to list on a ecommerce marketplace or obtain payment gateway for a ecommerce website. 48JIMS ROHINI, NEW DELHI- 89
  • 49. Payment Gateway • A payment gateway would be required for a proprietary ecommerce website to process customer payments. • Payment gateway provides allow for the website to accept credit card, debit card, net banking, internet banking payments from multiple banks and credit card companies. • Therefore, one payment gateway is sufficient to accept many forms of online payments. • Once, a payment is received from the customer, the payment is sent to the bank account of the business by the payment gateway provide in one or two business days. 49JIMS ROHINI, NEW DELHI- 89
  • 50. ONLINE Transactions  There are various ways of making payments through electronic modes such as electronic wallets, smart cards, software wallets, credit cards, debit cards, net banking and more.  Online stores that collect money from consumers in any other way than Cash need to rely on a service provider typically known as a Payment Gateway provider.  A payment gateway is an e-commerce application service provider that processes credit card payments for e-businesses and online retailers. 50JIMS ROHINI, NEW DELHI- 89
  • 51.  It acts as the go between the consumer who is making purchases and the bank that is authorizing the bank issued payment instrument such as a credit card to be used for the payment.  It is the equivalent of making a payment over the counter when one is physically purchasing something. These payment gateways are like the middlemen between the purchaser and the company providing the product. 51JIMS ROHINI, NEW DELHI- 89
  • 52. Various mode of payments  Credit cards – The most widely used form of electronic money today. Several million credits cards are being used to make online payments in India. Many E-Commerce sites allow you to pre-store your credit card number securely so that you don’t have to key in the number each time. Currently, the largest user base in e-commerce uses credit cards for payments.  Debit card – The second largest e-commerce payment medium in India. Using a debit card proves to be a preferred choice for customers who want to stay within their spending capacity. 52JIMS ROHINI, NEW DELHI- 89
  • 53.  Net Banking – Another easy way to make online payments. It is similar to using a debit card for paying money that exists in the user’s current or savings account but it does not require the user to have a card for the payment purposes. While completing the purchase the consumers needs to put in their net banking id and pin.  Reward Points – An indirect way for online payments. On certain things that are purchased by a person, a number of rewards points will be awarded which will get added to the his account. In the next transaction, the buyer can choose to pay for their next purchase using the accumulated rewards points, which will replace what they would otherwise be paying as money. 53JIMS ROHINI, NEW DELHI- 89
  • 54.  Prepaid Cards – This is a relatively new and fast growing payment method. Typically a consumer may buy or be gifted a prepaid card that can be used online. Usually this would be for a particular brand or for a retailer. Some online retailers have their own gift cards which are sold to their customers, who in turn may use it for themselves or as give them as gifts. Gift cards have their own authentication system and this may vary from issuer to issuer. Summary If you are a new online retail store or a brand planning to set up an online store, you should contact a reliable payment gateway partner to assist with getting your online store to accept various forms of payment as above. (Cont.) 54JIMS ROHINI, NEW DELHI- 89
  • 55. (Cont.) For Cash on Delivery and Bank Cheques, you would need to have a separate process and this would have to be reflected in your web store software as an option for consumers to choose. Select a good Payment Gateway provider who gives you the maximum options and is also constantly adding new options based on the evolving marketplace and methods of payment. In case companies like Net Distribution are operating your online store, they will take care of selecting a good payment gateway that accepts all forms of payments that may be applicable in the ecommerce industry in India. 55JIMS ROHINI, NEW DELHI- 89
  • 56.  Mobile Money – Out of India’s 1.2 billion people, only a small percentage have bank accounts. Amongst that massive unbanked population, many hundreds of millions have mobile phones, and for them, mobile money is likely to be hugely beneficial. Even for smaller transactions, where credit cards are not accepted, it might be simpler to just hand over cash. But if you don’t have sufficient cash, then mobile money becomes useful. However, mobile money would be convenient to buy a movie ticket or pay your utility bills on your phone, where otherwise you might have to key in your entire credit card number, CVV number, etc, every time you make a payment.(Cont.) 56JIMS ROHINI, NEW DELHI- 89
  • 57. (Cont.) It’s meant for transactions between Rs 50 – Rs 500 to buy things like games, music, e-books, and virtual goods in games, and where people may not want to use credit or debit cards. In India, this is a developing payment option and still evolving in terms of regulations and guidelines. As on date the main method to pay for products using your mobile is still linked to your bank account. Payments using mobile carrier billing i.e. where your payments are deducted from your mobile prepaid balance or billed to your post-paid account are still restricted to services provided through the mobile operator for value added services. Mobile carrier billing has not yet started for ecommerce transactions though this is expected to flourish soon. 57JIMS ROHINI, NEW DELHI- 89
  • 58. Legal Aspects  The Information Technology Act, 2000 (“IT Act”) deals with contractual aspects of use of electronic records.  The validity of electronic transactions is established under the IT Act. The act establishes that an ecommerce transaction is legal if the offer and acceptance are made through a ‘reasonable’ mode.  The objectives of the Information Technology Act, as outlined in the preamble, are to provide legal recognition for E-commerce transactions.
  • 59.  The Act lays down procedures for networking operations and for civil wrongs and offences.  The Indian Information Technology Act does not have any express provision regarding the validity or formation of online contracts.  A communication sent by an offeror to an offeree through indirect means, such as an email that passes multiple servers and spam mails, is not regarded as a reasonable mode under the IT act. Reasonable modes of acceptance in an ecommerce transaction are:  Direct mail from the offeree to the offeror.  Acceptance by conduct, which is pressing an ‘Accept’ button to an offer.
  • 60.  The Information Technology (Amended) Act, ITAA, was amended in 2008 to increase security of e-commerce transactions, with special provisions for legal recognition of digital signatures and electronic documents. Section 43A of ITAA holds ecommerce companies accountable for protection of personal data.  When an ecommerce company fails to protect personal data of its customers or is negligent in maintaining and implementing reasonable security practices, and if this results in wrongful loss of an online buyer, the laws are clear that its body corporate is wholly liable to pay the damages by means of monetary compensation.
  • 61. Flipkart.COM Company Profile Founders: Sachin Bansal; Binny Bansal CEO : Kalyan Krishnamurthy Founded: 5 th Sept. 2007 Headquarters: Bangalore, Karnataka, IN Subsidiaries: Myntra, Jabong.com, PhonePe, eBay.in (India), eKart, Mallers.Inc, etc. 61JIMS ROHINI, NEW DELHI- 89
  • 62.  Flipkart was founded by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi.  They worked for Amazon, and left to create their new company incorporated in October 2007 as Flipkart Online Services Pvt. Ltd.  The first product they sold was the book Leaving Microsoft To Change The World to a customer from Hyderabad.  Flipkart now employs more than 33,000 people.  After the success of its 2014 Big Billion Sale, a second Big Billion Sale was carried out , where it is reported that they saw a business turnover of $300 million in gross merchandise volume. JIMS ROHINI, NEW DELHI- 89 62
  • 63. ACQUISITIONS  2011: Flipkart acquired the rights to Chakpak's , a Bollywood news digital catalogue, with 40,000 filmographies, 10,000 movies and close to 50,000 ratings.  2014: Acquired Myntra in an estimated 20 billion (US$310 million) deal.  2015: Flipkart acquired a mobile marketing start-up Appiterate(DSYN Technologies Pvt. Ltd.) to strengthen its mobile platform.  2015: Flipkart bought a minority stake in navigation and route optimization startup MapmyIndia to help improve its delivery using MapmyIndia assets. JIMS ROHINI, NEW DELHI- 89 63
  • 64. • 2016: Flipkart’s Myntra acquires rival fashion shopping site Jabong for $70 million. • 2017: In January, Flipkart funded Parenting Network Tinystep With $2 Million. • 2017: In April, in exchange for an equity stake in Flipkart, eBay agreed to make a $500 million cash investment in and sell its eBay business to Flipkart; however, according to a company statement eBay would continue to operate as a separate entity from Flipkart. JIMS ROHINI, NEW DELHI- 89 64
  • 65. AMAZON.com JIMS ROHINI, NEW DELHI- 89 65 Company Profile Founders: Jeff Bezos CEO : Jeff Bezos Founded: 5 July 1994 Headquarters: Seattle, Washington, United States Subsidiaries: Zappos, Audible.Inc., Souq.com ,AbeBooks
  • 66. HISTORY  The company was, spurred by what Amazon founder Jeff Bezos called his "regret minimization framework," which described his efforts to fend off any regrets for not participating sooner in the Internet business boom during that time.  In 1994, Bezos left his employment as vice-president of D. E. Show& co, a Wall Street firm, and moved to Seattle, Washington.  He began to work on a business plan for what would eventually become Amazon.com. 66JIMS ROHINI, NEW DELHI- 89
  • 67.  On July 5, 1994, Bezos incorporated the company as Cadabra.Inc.  Bezos changed the name to Amazon.com, Inc. a few months later, after a lawyer misheard its original name as "cadaver“.  In September 1994, Bezos purchased the URL Relentless.com and briefly considered naming his online store Relentless, but friends told him the name sounded a bit sinister. The domain is still owned by Bezos and still redirects to the retailer.  The company went online as Amazon.com in 1995. JIMS ROHINI, NEW DELHI- 89 67
  • 68. Mergers and acquisitions: Investment  2008: Engine Yard, a Ruby-on-Rails platform as a services (PaaS) company.  2010: Living Social, a local deal site.  2014: Acquired the '.buy' domain in an auction for $4,588,888.  2014: Amazon announces a US$2 billion investment in India.  2016: Amazon announces an additional US$3 billion investment in India.  2017: Between May and July 2017, Amazon had pumped in Rs. 2000 Cr. in India with Rs. 130 Cr. pumped its payment arm Amazon Pay India. 68JIMS ROHINI, NEW DELHI- 89
  • 69. Subsidiaries  2003: A9.com, a company focused on researching and building innovative technology  2004: Lab126, developers of integrated consumer electronics such as the Kindle.  2007: Endless.com, an e-commerce brand focusing on shoes.  2007: Brilliance Audio, the largest independent audio book producer in the US.  2009: Create Space, self-publishing services for independent content creators, publishers, film studios and music labels; created by the internal merger of Custom Flix (on-demand DVDs for independent filmmakers) and Book Surge (self- publishing, on-demand printing, online distribution), both originally acquired 2005. JIMS ROHINI, NEW DELHI- 89 69
  • 70. Product & Services  AmazonFresh  Amazon Prime  Amazon Web Services  Alexa  Appstore  Amazon Drive  Echo  Kindle  Fire tablets  Fire TV  Video  Kindle Store  Music  Music Unlimited  Amazon Digital Game Store  Amazon Studios  AmazonWireless JIMS ROHINI, NEW DELHI- 89 70
  • 71. Alibaba group JIMS ROHINI, NEW DELHI- 89 71 Company Profile Founders: Jack Ma CEO : Daniel Zhang Founded: 4 April 1999 Headquarters: Hangzhou, China Subsidiaries: Vendio, Shenzhen OneTouch, Yahoo Koubei, etc.
  • 72. History  December 1999, Hector Ma and 17 other founders released their first online marketplace, named "Alibaba Online".  From 1999 to 2000, Alibaba Group raised a total of US$25 Million from SoftBank, Goldman Sachs, Fidelity and some other institutions.  December 2001, Alibaba.com achieved profitability.  May 2003,Taobao was founded as a consumer e-commerce platform.  December 2004, Alipay, which started as a service on the Taobao platform, became a separate business.  October 2005, Alibaba Group took over the operation of China Yahoo as part of its strategic partnership with Yahoo Inc. 72JIMS ROHINI, NEW DELHI- 89
  • 73. Alibaba Group Services  AutoNavi  Taobao  Alipay  Alibaba Cloud (Aliyun)  AliExpress  Yahoo! China  Aliwangwang  Laiwang  Alibaba Pictures  Youku Tudou  11 Main  South China Morning Post  Ali Health  Alisports JIMS ROHINI, NEW DELHI- 89 73
  • 74. eBAY.IN JIMS ROHINI, NEW DELHI- 89 74 Company Profile Founders: Pierre Omidyar CEO : Devin Wenig Founded: 3 September 1995 Headquarters: San Jose, California, United States Subsidiaries:StubHub, mobile.de, GittiGidiyor, Auction Co., etc.
  • 75. History  The AuctionWeb was founded in California on September 3, 1995, by French-born Iranian- American computer programmer Pierre Omidyar as part of a larger personal site.  One of the first items sold on AuctionWeb was a broken laser pointer for $14.83.  Astonished, Omidyar contacted the winning bidder to ask if he understood that the laser pointer was broken. In his responding email, the buyer explained: "I'm a collector of broken laser pointers. 75JIMS ROHINI, NEW DELHI- 89
  • 77. Contribution in Indian Economy  E-Commerce is a growing sector in India. Just like the growth of IT industry in India through the 1990s, the 2010s will be remembered for the growth in the E-Commerce industry. In its present state the contribution of E- Commerce to GDP is around 0.2% which is expected to grow 15 times to around 2.5% by 2030.  By 2030 the contribution to GDP by E-Commerce is expected to reach to around 300 Billion Dollars which is around 20 Billion Dollars in its present state. 77JIMS ROHINI, NEW DELHI- 89
  • 78. The impact of E-commerce in various sectors 78JIMS ROHINI, NEW DELHI- 89  Technology- One of the major drivers of technology will be E- Commerce industry and vice versa. We are seeing new age technological solutions(AI/Machine Learning) being taken up to solve the business problems to bring commerce to everyone digitally. This is seen in both B2C and B2B sector. Investment into technology sector is happening to drive growth in the E-Commerce domain.  Logistics- Logistics industry is both a bottleneck and a driver for e- commerce industry. For the same we see how last mile and inter- city logistics solutions have come up to digitally connect the different stakeholders across the country. The Uber model of moving passengers is implemented in some form or the other in the logistic sector. The growth of E-Commerce will drive innovation in the logistic sector to make the products available to the end user.
  • 79.  Travel- At the moment 70% of the contribution to E- Commerce comes from the travel sector which includes the online ticket bookings to other travel arrangements. This has made the market competitive by bringing all players on the same platform and has also given consumer more options. Travel industry will be earliest adopters to become completely digitised and that is thanks to E-Commerce.  Education- One of the industries to have the most profound impact of E-Commerce is the education. The ability of E-Commerce to provide quality education to everyone is immense. India will have one of the biggest set of youth population and hence the scope for education sector to be the biggest achievers because of E-Commerce is sure 79JIMS ROHINI, NEW DELHI- 89
  • 80. JIMS ROHINI, NEW DELHI- 89 80 THANK YOU Group 5:-  BHAVNESH MADAN  SHASHANK GUPTA  SUVRAJIT SAHA  UDAY SHARMA