CONTENTS

Q1. What is E-Commerce? What are the various types of E-Commerce?

Explain various factors that work for and against e-commerce.
Q2. Describe EDI framework in detail.
Q3. List out few B2B websites and briefly mention the kind of business
they are involved in.
Q4. Explain various payment modes used in E-Commerce.
Q5. Select any one E-Commerce website of your choice and do a caseanalysis of it.
(Your analysis should cover the products, target customers, marketing
strategy, advertising used by the site, payment modes.)
Suggest few ways/areas where the said site can improve/needs
improvement.

E- Commerce Website of our Choice is ShopClues

Q1. What is E-Commerce? What are the various types of E-

Commerce? Explain various factors that work for and against ecommerce?

E- Commerce :- Electronic commerce is the process by which businesses and

consumers buy and sell goods and services through an electronic medium.
Electronic commerce emerged in the early 1990s, and its use has increased at a
rapid rate. Today, the majority of companies have an online presence. In fact,
having the ability to conduct business through the Internet has become a
necessity. Everything from food and clothes to entertainment and furniture can
be purchased online.
Two familiar examples of electronic commerce companies are eBay and
Amazon. Both of these companies allow consumers to purchase a variety of
goods and services online from businesses and other consumers, while eBay
also hosts online auctions. Consumers on these sites typically have numerous
payment options, as well as choices for how their products are delivered.

Types of E-Commerce
There are several types of electronic commerce.

B2B(Business-to-Business)
Companies doing business with each other such as manufacturers selling
to distributors and wholesalers selling to retailers. Pricing is based on
quantity of order and is often negotiable.

B2C(Business-to-Consumer)
Businesses selling to the general public typically through catalogs utilizing
shopping cart software. By dollar volume, B2B takes the prize, however
B2C is really what the average Joe has in mind with regards to ecommerce
as a whole.

C2B(Consumer-to-Business)
A consumer posts his project with a set budget online and within hours
companies review the consumer's requirements and bid on the project.
The consumer reviews the bids and selects the company that will
complete the project.

C2C(Consumer-to-Consumer)
There are many sites offering free classifieds, auctions, and forums where
individuals can buy and sell thanks to online payment systems like PayPal
where people can send and receive money online with ease. eBay's
auction service is a great example of where person-to-person transactions
take place everyday since 1995.

Various factors that work for and against e-commerce are :-

ADVANTAGES:-

E- Commerce Advantages for Customers :

Convenience:- Every product is at the tip of your fingers on the internet,

literally. Type in the product you are looking for into your favorite search
engine and every option will appear in a well organized list in a matter of
seconds
Time saving:- With ecommerce there is no driving in circles while
looking and digging in hopes of finding what you need. Stores online offer
their full line as well as use warehouses instead of store frontsproducts
are easy to locate and can be delivered to your door in just days.
Options, options, options: - Without driving from store to store the
consumer can easily compare and contrast products. See who offers the
best pricing and have more options to choose from. While a physical
store has limited space, the same store on the internet will have full
stock.
Easy to compare: - Side by side comparisons are readily available and
easy to do. When products are placed online, they come with all the
specifics, and they want you to compare them with others, know they
have the best options and come back for more
Easy to find reviews: - Because the competition is high, companies
online want you to look at other consumer reviews. Good and bad
reviews are on every site, not only can you see if the product is liked, you
can also see the reasons behind the thumbs up or down.
Easy to compare:- Side by side comparisons are readily available and
easy to do. When products are placed online, they come with all the
specifics, and they want you to compare them with others, know they
have the best options and come back for more

Coupons and deals:-With every online business wanting you, more and
more coupons and deals cant be avoided, which are totally great for
customers. With major sites that act as department store, you may find
items up to 80% off! Take advantage of the competition and find the best
price available

Advantages for Businesses :

Increasing customer base:-The customer base is every businesss

main concern, online or off. When online, a business doesnt have to
worry about getting the best property in town, people from around the
world have access to their products and can come back at anytime.
Rise in sales:- By not managing a storefront, any business will have
more sales online with a higher profit margin. They can redistribute
money to make the consumer shopping experience faster and more
efficient. While being available to international markets, more products
will sell
24/7, 365 days:- If its snowing and the roads are closed, or its too hot
and humid to even step outside in the summer, or a holiday that every
store in town closes, your online business is open for consumers 24/7
every day of the year. The doors never close and profits will keep rising.
Recurring payments made easy:- With a little research, every
business can set up recurring payments. Find the provider that best suits
your needs and billing will be done in a consistent manner Payments will
be received in the same way.
Instant transactions:-With ecommerce there is no more waiting for the
check to clear or a 30day wait for certain other types of payment.
Transactions are cleared immediately or at most two to three days for the
money to clear through the banking system.
Expand business reach:- A great tool on the internet istranslation! A
business online does not have to make a site for every language. With
the right marketing, every consumer around the globe can find the
business site, products and information without leaving home.

DISADVANTAGES :-

Ecommerce Disadvantages for Customers :

Privacy and security:- Before making instant transactions online, be

sure to check the sites certificates of security. While it may be easy and
convenient to shop, no one wants their personal information to be stolen.
While many sites are reputable, always do your research for those with
less than sufficient security

Quality:- While ecommerce makes everything easily accessible, a

consumer cannot
Actually touch products until they are delivered to the door. It is important
to view the
return policy before buying. Always make sure
returning goods is an option.

Hidden costs:- When making purchases, the consumer is aware of the

product cost, shipping, handling and possible taxes. Be advised: there
may be hidden fees that wont show up on your purchasing bill but will
show up on your form of payment. Extra handling fees may occur,
especially with international purchases.

Delay in receiving goods:- Although delivery of products is often

quicker than expected, be prepared for delays. A snow storm in one place
may throw off the shipping system across the board. There is also a
chance that your product may be lost or delivered to the wrong address.

Need access to internet: - Internet access is not free, and if you are
using free wifi, there is the chance of information theft over an unsecure
site. If you are wearing of you public library, or cannot afford the internet
or computer at home, it may be best to shop locally.

Lack of personal interaction:- While the rules and regulations of each

ecommerce business is laid out for you to read, there is a lot to read and
it may be confusing when it comes to the legalities. With large or
important orders, there is no one you can talk to face to face when you
have questions and concerns.

Ecommerce Disadvantages for Businesses :

Security issues:- While businesses make great efforts to keep

themselves and the Consumer safe, there are people out there that
will break every firewall possible to get the information they want.
We have all seen recently how the biggest and most renowned
business can be hacked online.

Credit card issues:- Many credit card businesses will take the side
of the consumer when there is dispute about billingthey want to
keep their clients, too. This can lead to a loss for ecommerce
business when goods have already been delivered and the payment
is refunded back to the consumer.

Extra expense and expertise for ecommerce infrastructure:To be sure an online business is running correctly, money will have
to be invested. As an owner, you need to know transactions are
being handled properly and products are represented in the most
truthful way. To make sure you get what you need, you will have to
hire a professionalto tie up any loose ends.

Needs for expanded reverse logistics:-The infrastructure of an

online business must be on point. This will be another cost to the
business because money will need to be invested to ensure proper
handling of all aspects of buying and selling, especially with
disgruntled consumers that want more than a refund.

Sufficient internet service:- Although it seems that everyone is

now on the internet all the time, there are still areas in which
network bandwidth can cause issues. Before setting up an
ecommerce business, be sure your area can handle the
telecommunication bandwidth you will need to run effectively.

Q2. Describe EDI framework in detail?

EDI FRAMEWORK :-

EDI (Electronic Data Interchange) is the transfer of data from one

computer system to another by standardized message formatting,
without the need for human intervention. EDI permits multiple companies
-- possibly in different countries -- to exchange documents electronically.
Data can be exchanged through serial links and peer-to-peer networks,
though most exchanges currently rely on the Internet for connectivity.
An EDI message contains a string of data elements, each of which
represents a singular fact, such as a price, product model number, and so
forth, separated by delimiter. The entire string is called a data segment.
One or more data segments framed by a header and trailer form
a transaction set, which is the EDI unit of transmission (equivalent to
a message). A transaction set often consists of what would usually be
contained in a typical business document or form.

When sending an EDI document, both parties and trading partners

must adhere to the same set of rules. These standards define where
and how the information from the document will be found.
Translation software processes the information differently for sent
and received messages and performs a complete audit of each step
to ensure information is sent or received in EDI format. When the
translator on the receiving computer reads a document, it knows
where to find the buyer's company name, order number, purchase
items and price, for example. This information is then sent to the
receiver's order entry system without necessitating manual order
entry.
Using EDI systems eliminates the need -- and therefore cost -- to
print, file, store, post and retrieve paper documents. The goal is to
get rid of paper and have everyone working with the same invoice
so that information is processed and read easily.

EDI FRAMEWORK

EDI systems :Different types of EDI are implemented to suit the business's needs,
capabilities and budget -- assisting multiple consistent business
partners, supporting partners around the globe or in other
situations.
Direct EDI: - With Direct EDI, one connection is created between
two business partners. Larger businesses might choose this method
if they have numerous transactions with the same partner per day.

EDI via VAN (value-added network), EDI Network Services

Provider :- This model protects businesses from the complications
that come from supporting the many communication protocols that
are required when dealing with multiple business partners. It is a
secure network where documents are transmitted between business
partners.

EDI via Action Script version 2 (AS2) :- This communications

protocol securely exchanges data over the Internet. Two computers
(a client and a server) connect in a point-to-point mode through the
Internet. AS2 is sent securely in an envelope that uses digital
certificates and encryption.
EDI via FTP/VPN, SFTPS, FTPS: File Transfer Protocol (FTP) over
Virtual Private Network (VPN), Secure File Transfer Protocol (SFTP) or
File Transfer Protocol Secure (FTPS) exchange documents through
the Internet, connecting business partners directly. These protocols
encode data during transmission from one business to the other, to
protect sensitive information. Data are decrypted upon arrival.

Web EDI:- EDI is directed via Internet browser, duplicating paperbased documents into Web forms that contain fields where users
enter information. It is then automatically converted into an EDI
message and sent via secure Internet protocols.
Mobile EDI:- This method enables the transmission of documents
through mobile devices.
Managed Services :- Managed services systems outsource the EDI
document control to a third-party provider.

Q3. List out few B2B websites and briefly mention the kind of
business they are involved in ?

Ra
nk
1

The Few B2b Website and briefly mentions the kind of business they
are involved are :-

Name

Traffi
c

Language

Type

Loc
atio
n

Ali baba
81
English,Chinese,Japane
B2B
Chin
http://www.alibaba.c
se
a
om
This is the largest B2B portal in the world you can put 50 products on it for free.
Enough products and companies on it. Compare to soldouteasy.com, its data not
open to other search engines. Only customers of alibaba.com can get you

products information
Indi
India mart
1145
English
B2B
a
http://www.indiamart
.com
Created in India, 70% customers are in India, it is a good place to do the India
market.
Chi
3.
Made-In-China
1170
English,Chinese,Taiwan
B2B
na
http://www.made-inese
2.

china.com
China manufacturer directory and China products catalog, providing trade leads
among China factory, manufacturers, suppliers, and global buyers.
Indi
4.
Trade India
4015
English
B2B
a
http://wwwtradeindi
a.com
India's largest online B2B marketplace, offering online business directory and
yellow pages of Indian & Foreign manufacturers, exporters, suppliers, importers &
service providers.
Chi
5.
Global Sources
4278
English, Chinese
B2B
na
http://www.globalsou
rces.com
It has a very big data base system of Asia it is a excellent place to find your
customers or your potential partners from Asia.
Q4. Explain various payment modes used in E-Commerce?

The Various payment Mode Used In E- Commerce are :-

E-Commerce or Electronics Commerce sites use electronic payment where

electronic payment refers to paperless monetary transactions. Electronic
payment has revolutionized the business processing by reducing paper
work, transaction costs, labour cost. Being user friendly and less time
consuming than manual processing, helps business organization to
expand its market reach or expansion. Some of the modes of electronic
payments are following.

Credit Card

Debit Card

Smart Card

E-Money

Electronic Fund Transfer (EFT)

Cash on Delivery(COD)

Credit Card :Payment using credit card is one of most common mode of electronic
payment. Credit card is small plastic card with a unique number attached
with an account.
Following are the actors in the credit card system.

The card holder - Customer

The merchant - seller of product who can accept credit card

payments.

The card issuer bank - card holder's bank

The acquirer bank - the merchant's bank

The card brand - for example , visa or MasterCard.

Debit Card :Debit card, like credit card is a small plastic card with a unique number
mapped with the bank account number. It is required to have a bank
account before getting a debit card from the bank. The major difference
between debit card and credit card is that in case of payment through
debit card, amount gets deducted from card's bank account immediately

and there should be sufficient balance in bank account for the transaction
to get completed.
Smart Card :Smart card is again similar to credit card and debit card in appearance
but it has a small microprocessor chip embedded in it. It has the capacity
to store customer work related/personal information. Smart card is also
used to store money which is reduced as per usage.
Smart card can be accessed only using a PIN of customer
E-Money :E-Money transactions refer to situation where payment is done over the
network and amount gets transferred from one financial body to another
financial body without any involvement of a middleman. E-money
transactions are faster, convenient and save a lot of time.
Online payments done via credit card, debit card or smart card are
examples of e-money transactions.

Q5. Select any one E-Commerce website of your choice and do a

case-analysis of it. ?
(Your analysis should cover the products, target customers,
marketing strategy;
advertising used by the
site, payment modes.)

SHOPCLUES
INTRODUCTION OF SHOPCLUES :-

ShopClues is an e-commerce company founded in June 2011, by Sandeep

Aggarwal. Radhika, sanjay, Mirnal & Devesh joined him as the founding
team over a period of next few months.

ShopClues.com is an online marketplace. The company is headquartered

in Gurgaon, Haryana and has its registered office in Vadodara, Gujarat in
India.
ShopClues was Sandeep brainchild who during his days as a very well
respected wall-street analyst also wrote a sector defining report on India
internet, he was ( and continues to be) a big proponent of marketplace
model in India and it was through his vision that ShopClues become the
first Managed Marketplace in India.

That makes ShopClues the second largest market place in India after
Ebay, which has more than 70,000 sellers. ShopClues claims to have
spent less than US $10 million to reach the status of Indias fifth largest,
while every other company in the top five list has spent an over ten times
the amount.

SHOPCLUES FUNDING :ShopClues is now valued at more than $1.1 billion (Rs 7,300 crore)
following undisclosed funding led by Singapore's sovereign wealth fund
GIC. In March 2013. ShopClues has other investors like Series B investors
Helion and Nexus and a Japanese Internet company. Prior to Series A,
ShopClues had raised a round (in Aug. 2011) from angels including from
early employees of companies like Google, Netscape and many serial
entrepreneurs from Silicon Valley.
ShopClues has raised $100 million (Rs 620 crore) in Series C funding led
by Tiger Global besides at least two of its existing investors.This values
the company at around $350 million.
PRODUCT TYPES OF SHOPCLUES :-

TARGET CUSTOMERS & MARKET OF SHOPCLUES :-

The company targeted the middle class consumers. According to the

company, 70% of its customers are from tier 2 and tier 3 markets with an
average age of 26 years and household income between Rs.2 lakh and
Rs.9 lakh.

While ShopClues covers a broad range of products, prices, categories,

brands, and sellers, it specialises in non-standard categories, unbranded
products or less-known brands, smaller merchants, and tier II and tier III
cities.

The duo also chose not to target urban users, which the better known ecommerce companies were targeting. "We realised that growth will come
from tier-2 and tier-3 towns
MARKETING STRATEGY OF SHOPCLUES :-

Marketplace Marketing

Brand building - Only Viral and Digital

Merchandizing as a Marketing Tool

Trust & Safety Focus

Marketing as a Service for Merchants

MARKETING STRATEGY OF SHOPCLUES

MARKETING USE BY SHOPCLUES

Email marketing: Even though email marketing was considered dead,
the brands Senior Marketing Director, Mr. Nitin Agarwal stood strong with
the email marketing. Nitin started off by introducing his brand and the

statistics related to it from email marketing perspective. He stated that

ShopClues.com has 50 million visits every month, which is more than
other travel e-commerce portals. Besides this, they have more than 50k
brands on their catalogue. Looking at these whooping numbers, that is
where bulk email marketing came into account and he stated that Gmail is
one of the major areas amongst them. The results were tremendously far
better than before. People started to engage more through emails and
make the transactions. Also, mobile experience was made much better
then yielding better results.
Affiliate Marketing: ShopClues used affiliate marketing to add
advantage to their business with many affiliate networks in India. This
ensured ShopClues getting around 50 thousand members only with
affiliate marketing.
Blog Posting: FNY also regularly posted interesting articles on their
blogs to increase the awareness and engagement.
SEO Marketing: For any brand, search engine marketing plays an
imperative role and ShopClues promoted itself well on Google using SEO,
Adwords and PPC advertising.
Facebook Marketing: Gaining on its popularity, FNY utilized Facebook
marketing opportunity very well. Prior to the launch of the web portal,
ShopClues kept on selling its products through Facebook and at the time
of their website launching, ShopClues crossed over 1 lacs fan on their fan
page.

ADVERTISING USE BY SHOPCLUES :-

Payment Options :-

Payment is an integral part of online shopping experience. We believe in

providing our customers choices, convenience, and trusted/secured
payment options. Thus at ShopClues.com, you can shop with confidence
knowing that your payments always secured.

Net Banking

EMI

Credit Card

ATM Card / Debit Card

Mobile Payment

Itzs Cash Card

Cash on Delivery ( COD)

Cash Before Delivery