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E- Commerce

Submitted to
Mrs. Namrata Dhar
Assistant Professor, Management Deptt.
Submitted by:
Enrollment Number:
Centre Code: J962
ST. Thomas Management
Institute, Jahangirpur, Jhajjar, HR)

I here by declare that the Project Report
conducted at
ST. Thomas Management Institute
Jahangirpur, Jhajjar

Under the guidance of
Mrs. Namrata Dhar
(Assistant Professor)


Enrollment number: StudentS Signature

E-commerce as anything that involves an online transaction. E-commerce provides
multiple benefits to the consumers in form of availability of goods at lower cost,
wider choice and saves time. The general category of e-commerce can be broken
down into two parts: E-merchandise: E-finance. E commerce involves conducting
business using modern communication instruments: telephone, fax, e-payment,
money transfer systems, e-data interchange and the Internet. Online businesses like
financial services, travel, entertainment, and groceries are all likely to grow. Forces
influencing the distribution of global e-commerce and its forms include economic
factors, political factors, cultural factors and supranational institutions.
It has an impact over the economy of many countries among which India is on the
top of that list. It has named as new gold rush in e-commerce. E-commerce has
many reasons that why it is very crucial in developing the country . For the study
we have taken several parts of the world such as North America , Latin America ,
Europe , Middle-East , Africa and South Asia ,and Australia. E-commerce has an
intent to bring some transformation in the society and thats the reason its essential
for the B2B and B2C commerce .

This study being desk analysis" contains views of various writers and researchers
of E-commerce. This study includes the global trends including India as a major
source of E-commerce , increasing use of e- commerce in developing nations ,
reasons behind success of e-commerce as an industry , the use of e-commerce in
global sourcing , advantages of E-commerce and several more topics being
covered under the project analysis. The use of e-commerce in various countries and
their influence over the people or citizens of that country is remarkable.

The study is focused on achievement of following objectives:
To assess the latest trend in e-commerce globally.
The impact of growth of e-commerce.
To analyse the latest global scenario of e-commerce.
The impact of growth on overall economy.

The Internet is dramatically expanding opportunities for business-to-business
(B2B), Business-to-consume ( B 2 C ) E-commerce transactions across borders.
For B2Ctransactions especially, the Internet sets up a potential revolution in global
commerce: the individualization of trade. It gives consumers the ability to conduct
a transaction directly with a foreign seller without traveling to the sellers country.
While this could be done in the past by post, telegram, phone, or fax, such sales
were relatively rare because the consumer had to know in advance where to make
contact and what to buy. The Interne t al lows sellers to put their storefronts,
in the form of Web pages, in front of consumers all over the world. Technology
has expanded t h e consumer marketplace to an unprecedented degree, and it
will change the way we think about trade. The implications of this for economic
development, globalization, and cultural exchange are immense . This
creates opportunities for both consumers and small enterprises that must not be
squandered. But for all the potential of global e-commerce, there are countless
vexing policy questions to be worked out, any one of which can threaten the
viability of this nascent form of trade. All of the Internet issues being debated in
the United Statesconsumer protect ion, data privacy, taxation, content
regulation, copyright, spam, technology deployment , and many moreneed to be
resolved at the international level as well .
However, unlike the United States ,which has a federal government and a
constitutional guarantee of free trade, global ecommerce faces two additional
serious complications: no central international authority to make the rules and
regulations and no uniform commitment to global free trade . Moreover,
conducting electronic commerce across national border s adds many more policy
issues to the mixjurisdiction, customs duties, import and export restrictions ,
intellectual property licensing, and morethat are only now being examined.


Scope of the study
Executive summary
I. Introduction of the topic
Research methodology

II. Conceptual Framework
Global trends in E-Commerce
E-commerce in India
E-Commerce in Global Sourcing Scenario.
Security concern in e-commerce
E-commerce: A Boon for the Current Economic Downturn
Key Reasons for success of e-Commerce
Factors affecting Distribution and form of Global e-commerce.
o Internet Adoption.
o Buying and selling online.
o Advertisement and searching phase.
o Payment phase
o Delivery phase.
Brief review of literature on e-commerce.

III. Summary & Conclusion

E-commerce (electronic commerce or EC) is the buying and selling of goods and
services on the Internet, especially the World Wide Web. In practice, this term and
a newer term, e-business, are often used interchangably. For online retail selling,
the term e-tailing is sometimes used
Electronic commerce is generally considered to be the sales aspect of e-business. It
also consists of the exchange of data to facilitate the financing and payment aspects
of business transactions.
E-commerce can be divided into
E-tailing or "virtual storefronts" on Web sites with online catalogs,
sometimes gathered into a "virtual mall"
The gathering and use of demographic data through Web contacts
Electronic Data Interchange (EDI), the business-to-business exchange of
E-mail and fax and their use as media for reaching prospects and established
customers (for example, with newsletters)
Business-to-business buying and selling
The security of business transactions
Today Ecommerce is an integral part of business because of various reasons like:
Ease of use & Accessibility all across the globe
Great variety & easy compassion of products from different vendors
Trusted payment channels
Shopping can be done sitting in the convenience of home shopping, hence it
is less time consuming. It is therefore very important for any new
entrepreneur to understand the significance of E-Commerce and should
know how to utilize this tool for the growth and development of business.
So, whether you have an existing business or launching a brand new business,
whether the volume of your business is large or small, you can always generate
profit by demonstrating your products or services online, thereby acquiring a large
amount of viewer exposure. In concise, buying and selling will result in profits and
There are so many factors which makes e-commerce to come to the fore front in
today's world. Saving precious time involved in business transactions is really a
prominent factor. Like for instance, net banking makes it easy to carry out money
and baking transactions in a break neck speed as compared to the real banking
scenario. This asserts the fact that Ecommerce is beneficial to both business and
consumer wise as payment and documentations can be completed with greater
efficiency and reliability. Another important factor determining the flow of whole
business is connectivity. Connectivity is very important for both consumers and
business. Ecommerce provides better connectivity for all the potential candidates
all over the globe, thus helping in enhancing the business without any geographical
barriers. From the view point of the customer, Ecommerce is a good platform for
hassle free shopping by sitting in your home. The customer can browse through all
the products and services available and can review and compare the prices of the
similar products available in the online space.
In global market scenario, the emergence of Ecommerce as a forerunner has
opened up various windows of opportunities for a variety of online companies and
investors. More and more resources are being directed into electronic securities,
internet facilities, business plans and new technologies due to the boom in the
space of E-commerce. As a result various new markets have emerged from
Ecommerce itself giving a boost to the global market.

Exchange and Share Data Across the World
Text messages, documents, graphics, photographs, music, video, and much
more, can be converted into data and sent as email attachments or presented on a
web site. There are no postage, printing and packaging costs with eCommerce
communications. So, use this new communications method to work quicker, and in
new ways, with customers and suppliers outside of your locality or country.

Send Messages Faster and Cheaper
When you send a message, you only pay for the Internet access. As soon as
the message arrives at your ISP, it is sent for zero cost to all the people to whom it
has been addressed. Moreover, the message is likely to arrive at its destination, in a
matter of seconds or minutes, depending on the size of the email and its
attachments. Think of the possibilities for saving time and money with email.

Approve and Proof Work Quickly
A quotation, purchase order, letter, design drawings, brochure, or advert
colour proof, etc. can be emailed to you as an attachment for your approval. Using
email in this way can dramatically speed-up the turn-around of work between you
and your business contacts.

Introduce Collaborative Working
With fast, reliable and cheap eCommerce communications, it is possible for
colleagues, customers, suppliers and partners, to use collaborative working
practices to manage, share, and enhance the project work, regardless of location
where they are at a particular instance.

Update Employees Instantly With New Policies or Procedures
Email and messengers etc. works well when communicating with
colleagues/pals who are off-site, out of the country,or teleworking.

Hold Web Meetings (Data Conferencing)
A great way to have a virtual meeting is to upload a document
(spreadsheets, project plans, etc) on to a web site and enable it to be viewed and
edited in real-time through the Internet. Holding virtual meetings can save
significantly on travel expenses and time.

Take Advantage of Time Differences
As eCommerce communications are so fast and low cost, new business
relationship have been established where work is exchanged between time zones at
the end of one day, which, on the other side of the world, is the beginning of either
the same or next day.

Send Out email Automatically
Event-triggered emails can be used to acknowledge orders made on web
sites, and to update customers on order progress. Alert-emails or SMS messages
can also be used to notify technical support of critical issues or maintenance
problems. There, and many other similar applications, are effortless, cheap, and
efficient ways of enhancing customer service and the brand experience.

Use the Internet to Improve Business Administration
With a mobile phone connected to a portable computer, employees
working off-site can access and update internal information, such as customer
records, price lists, time sheets, schedules, and job reports. Providing remote
Internet access for staff makes it possible for the latest information to be at hand,
for administrative tasks such as invoicing, employee whereabouts, and expense
claims etc.
Train on the Web
The multi-media capabilities of web sites make them ideal for creating a
virtual learning environment for employees and customers. When training material
is updated, the latest version is immediately available. On-line learning facilities
enable trainees living all over the world to access courseware when it is convenient
to them, and without having to travel to a training centre, which in turn, saves time
and expenses.

Replace the Fax Machine and Save Money
If a multi-page document has to be faxed to many people, it can work out
expensive on telephone bills, especially if a national or international call has to be
made. The cost savings can be huge if email is used instead, and the message can
also be sent to multiple people for no extra cost.

History of E-commerce
Concerning Technology
E-commerce began before personal computers were prevalent and has
grown into a multi-billion dollar industry. The meaning of the term "electronic
commerce" has changed over the last 30 years. Originally, "electronic commerce"
meant the facilitation of commercial transactions electronically, usually using
technology like Electronic Data Interchange (EDI) and Electronic Funds Transfer
(EFT), where both were introduced in the late 1970s, for example, to send
commercial documents like purchase orders or invoices electronically.

The 'electronic' or 'e' in e-commerce refers to the technology/systems; the
'commerce' refers to be traditional business models. E-commerce is the complete
set of processes that support commercial business activities on a network. In the
1970s and 1980s, this would also have involved information analysis. The growth
and acceptance of credit cards, automated teller machines (ATM) and telephone
banking in the 1980s were also forms of e-commerce. However, from the 1990s
onwards, this would include enterprise resource planning systems (ERP), data
mining and data warehousing.

In the dot com era, it came to include activities more precisely termed
"Web commerce" - the purchase of goods and services over the World Wide Web,
usually with secure connections (HTTPS, a special server protocol that encrypts
confidential ordering data for customer protection) with e-shopping carts and with
electronic payment services, like credit card payment authorizations.

Today, it encompasses a very wide range of business activities and
processes, from e-banking to offshore manufacturing to e-logistics. The ever
growing dependence of modern industries on electronically enabled business
processes gave impetus to the growth and development of supporting systems,
including backend systems, applications and middleware. Examples are broadband
and fibre-optic networks, supply-chain management software, customer
relationship management software, inventory control systems and financial
accounting software.

Concerning Decisions/Foot steps

When the Web first became well-known among the general public in
1994, many journalists and pundits forecast that e-commerce would soon become a
major economic sector. However, it took about four years for security protocols
(like HTTPS) to become sufficiently developed and widely deployed.
Subsequently, between 1998 and 2000, a substantial number of businesses in the
United States and Western Europe developed rudimentary web sites.

Although a large number of "pure e-commerce" companies disappeared
during the dot-com collapse in 2000 and 2001, many "brick-and-mortar" retailers
recognized that such companies had identified valuable niche markets and began to
add e-commerce capabilities to their Web sites. For example, after the collapse of
online grocer Webvan, two traditional supermarket chains, Albertsons and
Safeway, both started e-commerce subsidiaries through which consumers could
order groceries online.

The emergence of e-commerce also significantly lowered barriers to
entry in the selling of many types of goods; accordingly many small home-based
proprietors are able to use the internet to sell goods. Often, small sellers use online
auction sites such as EBay, or sell via large corporate websites like Amazon.com,
in order to take advantage of the exposure and setup convenience of such sites.

Concerning Transformation of I T
EDI Some authors will track back the history of ecommerce to the invention of
the telephone at the end of last century. EDI (Electronic Data Interchange) is
widely viewed as the beginning of ecommerce if we consider ecommerce as the
networking of business communities and digitalization of business information.
Large organizations have been investing in development of EDI since
sixties. It has not gained reasonable acceptance until eighties. EDI has never
reached the level of popularity of the web-based ecommerce for several reasons:
1. High cost of EDI prohibited small businesses and medium-sized companies
from participating in the electronic commerce.
2. Slow development of standards hindered the growth of EDI.
3. The complexity of developing EDI applications limited its adaptation to a
narrow user base.
The Internet and the Web The Internet was conceived in 1969, when the
Advanced Research Projects Agency (a Department of Defense organization)
funded research of computer networking. The Internet could end up like EDI
without the emergence of the World Wide Web in 1990s. The Web became a
popular mainstream medium (perceived as the fourth mainstream medium in
addition to print, radio and TV) in a speed which had never been seen before. The
Web users and content were almost doubled every a couple of months in 1995 and
1996. The web and telecommunication technology had fueled the stock bubble in
the roaring 90s and eventually pushed NASDAQ over 5,000 in 2000 before it
crashed down to 1,200 in 2002.
XML and Web Services Besides the availability of technical infrastructures, the
popularity of the Web is largely attributed to the low cost of access and simplicity
of HTML authoring, which are the obstacles of EDI development. The Internet and
the Web have overcome the technical difficulty of EDI, but it has not solved the
problem of slow development of ecommerce standards.
XML, as a meta markup language, provides a development tool for defining format
of data interchange in a wide variety of business communities. Web Services offers
a flexible and effective architecture for the implementation. There is no doubt that
XML and the Web Services will shape the course of ecommerce in years to come.

Sources of Data
For having the detailed study about this topic, it is necessary to have
some of the secondary information, which is collected from the
following:-Books, Websites and Newspapers. So in this basically
secondary data is used in collecting the information. The sources of
data are:
Hindustan Times

Type of Study
The research design or type of study specifies the methods and
procedures for conducting a particular study. The type of research design
applied here are Descriptive and Desk Analysis as the objective is
to have knowledge about the ecommerce in global Scenario. Descriptive
study means situation, but not the causal linkages among its different
elements. Descriptive studies (such as a cross-sectional study) help in
generating hypothesis on which further research may be based. Desk
analysis is to Gather and analyze information, already available in print
or published on the internet.

Global trends in E-commerce
Government programs are a significant vehicle for c-commerce
Retail, grocery and logistics industries are the most active in encouraging
trading partners to implement EDI
Small and medium sized companies demand flexible integration solutions
European companies focus on core competencies and outsource technology
to consulting groups
High percentage of first time implementers seek to achieve full integration
Organizations are seeking a scalable, reliable system that is easy to deploy
and manage
Software needs to be capable of handing different business processes and
must integrate with existing IT investments
As social media, app stores and global availability become standard, many
companies are looking to enhance the online customer experience. And while retail
and other transactions via Internet are customary, more than ever companies are
simplifying the ways in which customers interact with their website and ultimately
make online purchases. Here are eight trends happening right now in global e-
commerce that seek to enhance the user experience:
Micro-payments Among the most revolutionary changes in the coming
monthsnot yearsis the use of micro-payment systems from a variety of
financial firms, e.g., Paypal, Visa, WesternUnion, among others, including
banks. This trend is facilitated by the W3C working group that approved
these protocols and technical standards for the interworking. These systems
will change not only how we carry money but how we value money and
think about purchases. (Consider how a purchase of $4.99 feels in a mobile
app store vs. at Dunkin' Donuts.) Payment systems that make it easier to
buy online, coupled with mobile technologies will accelerate the usage of
global e-commerce applications.
Mobile technologies More people access the Internet on their mobile
devices than on any other device. We are rapidly approaching the time (if we
are not already there) where designs must be created for the mobile Web
first, and for the desktop second. Mobile technologies facilitate comparison
shopping; with the advent of barcode reader apps and price-comparison
databases, a consumer could snap a bar code in Walmart and quickly
reference product reviews and prices on walmart.com (or compare prices
with Walmart competitors). Mobile technologies also facilitate impulse
buys especially with the advent of micro-payments tied to the mobile
device. Just recently, Starbucks customers can not only place an order with
their Smartphone, but also make a purchase.
Social media As Facebook has become the most visited site on the Web,
the role of social media, including Facebook and its local clones such as
Twitter, is increasingly important. Social media sites increasingly act as
points of entry to e-commerce sites, and vice versa, as e-commerce sites
build rating, loyalty and referral systems tied to social media. Group buying
(e.g., Groupon) is also gaining mainstream ground, with many "deal of the
day" sites competing for an increasingly savvy consumer base, but
improvements lie ahead as the social aspects and user experience are refined.
Fulfillment options I believe that users will want to have multiple
fulfillments and return options when interacting with a vendor: ship to
address, courier, pick-up in store, return to store, etc. Having many
fulfillment options is how customers view their overall customer experience.
Some companies have made a business proposition online by being
exceptional in service to the online channel (e.g., Zappos).
Global availability Increasingly, consumers want the availability to buy
products from foreign sites and have them delivered locally. Thus, currency
and customs will be of growing concern to many online retailers. Along
with this, there will be concerns with local privacy laws and restrictions on
related data collection and storage.
Localization While the trend is to globalize, whats often more important
is to localize. User Centrics research clearly shows that sites that feel
local with proper imagery, language, time/date, weights/measures,
currency, etc. resonate far more than sites that seem culturally distant or
Customizability Consumers want control, and want to be able to design
the details of the items they purchase.
Time-based availability Some of the hottest and most successful sites are
those that have a time-critical response component. Sites like Groupon, Gilt
and others capitalize on the perception of limited-time availability. Creating
a sense of urgency drives traffic and purchase behavior.

New Gold Rush in E-commerce in India
Kunal Bahl, founder- CEO of e-commerce site Snapdeal.com bought out
eSportsbuy.com for an estimated of Rs.50 crores.
Bahl has 20million (Rs. 100 crore) stash for acquisition-significant because
Snapdeal is itself a startup-but a rich on. It has raised Rs.52 million from ventures
Bahl is not alone who is scouting for potential suitor. In February this year
aggressively online shopping site Flipkart.com acquired rival Letsbuy.com. Early
last year, US-based social buying site Groupon acquired Indias SoSasta.com and
renamed it as Crazeal.com.
And so it seems that e-commerce is not about customers buying goods. It is about
firms shopping for others. Industry trackers say leading sites are gobbling up rivals
to build size, or acquiring customer niches either to add product segments or to get
technologies that help efficient operations.
In the game in which future share issues are on the radar for bigger players, the
smaller ones often prefer to cash out than be crushed in lonely pursuits in an
aggressively competitive game.
At stake is a huge market will growing potential because India has 900 million
mobile phones, with a big chunk of that growing up from voice talk to Internet,
wile the current Web user base at more than 100 million is in itself a significant
Industry estimates say Indias e-commerce market will zoom from the current
Rs.51000 crore to Rs.10,20,000 crore in revenues by 2020. The race lead to
buyouts-often at the cost of profitability.
At present sites are falling over each other to offer deep discounts, but you do not
survive only through discounts. This only creates a disloyal discount shopper who
moves from one site to another in search of the cheaper deal, said Mahesh Murthy
, managing partner of investment firm Seefund Advisors. Murthy added that sites
without a credible differentiation strategy and loyal customers base would bleed-
and will be up for grabs.
Experts say acquisition of other sites is also a good strategy to built brand and
broaden a loyal customer base. Snapdeal.com snapped up eSportsbuy.com to get
access to its large catalogue of sports and fitness products. Flipkart.com started out
with books, added cameras and mobile handsets and then got Letsbuy.com to
acquire muscle in electronic goods, while Groupons buyout was to enter India.
There in no room for newer players in the general category but there is space for
niche category players, he said. This has been observed by Prashanth Prakash,
partner at Accel partners, which has invested in Flipkart.com.
Private enquiry is doing a huge amount of work backstage. Venture capitalists say
they more than doubled the funding level in e-commerce over the past year, and
the average size of investment has ranged from Rs.20 to 40 million.
However, having a deep pocket is no guarantee to success. Money can only delay
your death. The only key to survive is to have a credible differentiation strategy,
Murthy said.
Size is not everything, but could help if investors have a sense of timing. As the e-
commerce companies grow and get brand loyalty the valuations are expected to
increase even further. It will be the time when we can offload our stake, for hefty
profits, a venture capitalist with significant stake in leading e-commerce site.
Hundreds of Internet startups went bust in 2000 and 2001 in the dotcom bubble
and comparing the current e-commerce rush to that may not be farfetched said
Shailen Amin, co-founder and CEO of footwear sites Bestylish.com.
There are a lot of guys in this business who dont have a retail background. They
are form either consulting or technology. So one should ask if they are really
qualified to run e-retail businesses.
In the world where old-fashioned retail meets high-technology and innovative
management, the winners could well be those who understand dimensions.
What the consolidation?
High operational costs affect profit margins.
Most e-commerce sites compete on deep discounts, which hit their
Some firms feel the time is right to cash in on brand, customer base.
Private equity (PE) and venture capitalists (VC) are eyeing safe exit
while e-commerce ventures are still profitable.
What makes a Long-Term Player?
Loyal customer base, fundamentally strong business models, clear
product/service differentiation.
Deep pockets to tide over initial gestation period.
Challenges for E-Commerce Sites
Low customer loyalty
High returns rates on cash-on-delivery
High cost of customer retention

State of Play
Acquiring site is a good way to built brand, broaden loyal customer base and
add categories.
The companies that are selling have real valuations, real transactions and
real customers, and are not based on eyeballs.
E-commerce companies in India offers the most tangible and finest e-commerce
solutions, provide high end e-commerce solution taking utmost care of the privacy
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Here new deal comes everyday at 10 am and it is India's first One Deal A Day
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The site offers Mobiles, Computers, Cameras, Home Appliances ,Life style, Audio
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What Is E-commerce And How Does It Augments Global Sourcing?
E-commerce or electronic commerce, as it is popular, allows domestic as well as
international trade over the Internet. The advent of E-commerce is boon for global
sourcing and import and export. The boost to global sourcing and import/export
through E-commerce is because of its to conduct online marketing, monitoring
supply chain and monetary & data transaction in a dependable manner.

Evolution of E-commerce with Global Sourcing?
It is hard to tell whether import/export volume has swelled because of E-commerce
but sure it made global sourcing easier to monitor with its evolutionary phases.
Three decades ago, it facilitated fund transfers- albeit electronically besides
facilitating exchange of POs and invoices in international trade. Electronic teller
machines are the recent manifestations now overtaken by internet creditcard
processing and endorsement of unsigned invoices even in international trade.

Why is E-commerce Popular in International Trade and Import/Export?
Looked at from both import and export traders' perspective, international trade is
easier conducted electronically. Here are the points why present international trade
depends much on E-commerce.

Quick and ease of setting up E-commerce storefronts for both global
sourcing as well as import/export.
Automatic running off of an import and export outfit without having to
recruit many staff.
Global sourcing agents/companies can evaluate/list import/export vendor
Software assisted documentation for each global sourcing and import export
Ability to handle multiple, quick and secure data and money transaction
crucial to international trade, simultaneously

In international trade, global sourcing happens to be one of the chief aspects of
import and export business. Global sourcing is an integral part of B2b scenario and
has essentially transformed world economies as well as boosted business in a great
way. Nonetheless, it is also giving great transformation to the work culture around
the globe with China playing a lead role in global sourcing. Nevertheless, it is also
transforming work cultures around the world silently with China business playing a
major role.

Being an extension of open market dynamics, global sourcing facilitates the export
and import of goods to be in the reach of several small and medium enterprises in
different countries. In this b2b scenario, E-commerce plays an active role in the
global sourcing where the business houses are putting in deep efforts and reaping
the benefits. In this rally of export and import, traders happen to claim the share of
the pie in global sourcing.

E Commerce & Global Sourcing
Global sourcing is one of the widely known strategies of ensuring smooth
business and access to markets in a cost effective manner. In such a scenario,
E-commerce has brought in a new transformation. It has added to
advantages like removing the barriers of time zones, differences in costs,
geographical locations etc. This has resulted in a major push in development
in infrastructure, technology and several other sectors across the globe. As
we see, E commerce is driving the export and import and propelling the
economic growth of numerous developing as well as developed nations.
Business strategies are becoming easy to execute and business houses are
having a wide range of options from where they can make their choices.
E-commerce has made the path of business smoother and has facilitated not
only in lower cost, but also resulted in procuring material from places where
there is specialization. Moreover, business negotiations are easier and
decisions are quicker due to this boon. Driving the import and export
business in this global sourcing scenario has opened new frontiers for higher
growth. The ease in supply chain is one of the best advantages that has come
from e-commerce in the global sourcing scenario.
China, a major player in the global sourcing scenario has reaped several
benefits in the e-commerce enabled era. The use of internet has facilitated
trade and boosted it at an immense rate. Business from all over the world has
been bagged by this country in spite of the competitive market. Chinese
traders have minted fast money and are still running in that race.
Security concerns in Global Sourcing
E-commerce is not without security concerns, loss/misuse of encrypted data which
are still being seriously being viewed by import/export operators before engaging
in international trade electronically. The truth is E-commerce providers employ
SSL (Secure Sockets Layer) to encrypt data/money (remember banks) transfer
from your desktop to your clients'. You can say, E-commerce is secure for both
import/export operators as well as global sourcing agents alike.

E-commerce has arrived on the global sourcing scene as both import and export
and international trade partners are accepting it. Despite its growing stature and
popularity E-commerce is still thriving in retail sector domestically and the
international trade needs to cover a long distance before it catches up. Another
reason for import/export operators' leaning towards E-commerce is the growing
costs of delays in processing POs and invoices through traditional methods which
render global sourcing useless.

E-commerce: A Boon for the Current Economic Downturn

E-commerce: A Boon for India
By the end of 2011, the e-commerce market in India had clocked close to Rs
50,000 cores. It is interesting to consider whether the global economic downturn
may have negatively impacted the growth of e-commerce or possibly accelerated it
as consumers look to new online channels which can often deliver greater value
than traditional stores.

Today, even though there are less than 10 million internet users who are actually
engaging in e-commerce activities, there are about 150 million internet users in
India or around 75 million households that are ready for e-commerce.

The growing reach in terms of internet connectivity to the interiors of India
coupled with the positive experiences of end consumers when buying online
beyond the metros and big cities are key drivers of the e-commerce boon in India.
Businesses in even the smallest towns and villages are becoming increasingly
aware of e-commerce and are excited by the growth potential.

The growing penetration of e-commerce along with positive consumer experiences
is reflected in a trend towards higher value online purchases. Today, consumers
across urban India are confident enough to make purchases that exceed Rs 20,000-
25,000. Earlier, the same shoppers stayed in the Rs 2,000-5,000 ranges. According
to one study almost 57% of business for e-commerce product sites came from tier
I, tier II and tier III cities while the eight metros accounted for the remainder 43%.
The same pattern was visible in the service sites too, with tier I, tier II and tier III
cities contributing 54% of revenue versus 46 % by the eight metros.

According to a report by the IAMAI, the current e-commerce market in India is
around US$ 10 billion. But with different levels of adoption, the market has the
potential to grow anywhere between US$ 70 billion US$ 150 billion under one
scenario and at another level it can grow between US$ 125 billion US$ 260
billion by 2024-25.

E-commerce: The world over
Globally, the scenario is much the same. Brazil, one of fastest growing
economies in Latin America, is seeing considerable growth. According
to a recent report, it estimates business-to-consumer (B2C) ecommerce,
including both retail e-commerce and online travel sales, will total to
$18.7 billion in 2012, a growth of
21.9% over the previous year. Brazil will account for more than half of
the total B2C e-commerce sales in Latin America through 2013, thanks
in large to its huge populace and growing number of online buyers.

Retail e-commerce itself in the U.S.is predicted to grow at 17% and it
will likely account for $200 billion in sales in 2012 , according to a
presentation at a popular forum. Retail e-commerce totalled $48.2 billion
during the third quarter of 2011; an increase of 13.7% compared with the
third quarter of 2010, according to estimates from the U.S. Census
Bureau. 2011 also saw the European online market boom despite the
floundering euro. Germanys online trade increased 17% in 2011 to
21.48billion compared to 2010, crossing the 20 billion mark for the
first time, outstripping traditional mail order sales by 10%. A similar
growth rate of 10% to 15% is expected in 2012.

In the global scenario, China is fast emerging as the biggest player in e-
commerce. According to an e-commerce report, by 2015, it may well
surpass the U.S. In an astonishing illustration of its online growth rate,
China has added the equivalent of the entire population of France in
internet users in each of the last four years. It will add the equivalent of
the entire population of Canada as e-shoppers in each of the next four
years. China is projected to rise from 145 million e-shoppers today to
329 million by 2015.

Shopping 24x7: E-commerce facilitates shopping anytime,
anywhere and for almost anything desired. Busy consumers prefer
this to the restrictions of when a mall/shop is open and the need to
physically travel to a shop. Online business takes shopping a step
further by taking itself to the customer creating conveniences of
shopping anywhere and at anytime.

Reduced operational cost: Since the entire business can be
moved online, the need for physical stores has become obsolete.
Less infrastructural investment and associated labour costs drives
up the profit margin. The seller can then transfer this benefit to the
customer in the form of discounted pricing which boosts the appeal
of online shopping.

Easy to compare: It is far easier and quicker to compare prices of
goods online, equipping the customer with the information to
decide the right price or terms for themselves. The comparison is
not restricted to items from a single seller, or a single region. One
can explore products across global markets via e commerce.

Safe & secure:Customers can trust the process of going online and
purchasing only when transactions are fast, convenient and secure.
A high degree of integrity is possible only when the online
electronic payment provider is reputable and trustworthy. In India,
all payment transaction providers are required to comply with the
security requirements laid out by the Reserve Bank of India
making the system more robust and reliable.

Increased reach for the merchant: Just as the customer finds
them able to venture across geographic markets, the merchant too
is able to display his product to customers in new territories.
Market penetration also becomes far more achievable with e-
commerce; it is possible for a merchant in Mumbai to extend his
reach to north-eastern cities or even rural villages that are now
connected by the online network.

Social media trend: In India, with the increasing propensity of
social media, businesses have now begun to engage their
customers on social networking portals such as Facebook.
Promotions, sales and new products are increasingly showcased
through such channels and mobile apps are now available that
suggest products to users based on their profiles. These are likely
to be rapidly developing marketing channels for the future.

The e-commerce world is changing rapidly in the digitized world. These
e-commerce developments may have been accelerated by the global
economic downturn which may be driving consumers to find new ways
of reducing their costs of living. The online channel offers a clear value
proposition for both merchants and consumers making it the most sought
after and exciting business model today

Factors affecting influence distribution and forms of global e-

Stage Economic
and infra
Socio cultural
Political legal
Per capita
Literacy rate
and computer
The internet's
introduction of
internet in
Availability of
telephone and
language skill

in telecom
Viewed as a
tool of
imperialism in
Tariff and non
tariff barriers
to ICT
ITA- reducing
the price of
ICT products.
Availability of
mechanisms in
case of
problems in
model law
and searching
speed of
computer and
modern size

Influence of
language and
symbols used
on site visited
and purchase
Ban on some
website in
Products can
be advertised
and searched
globally on
Payment phase Penetration
rate of credit
Forms of
check, wire
concern on
the outflow of
smart card
transfer, cash
on delivery
Delivery phase Delivery
means and
stolen some
Tariff and
non- tariff
delivery free
of custom
duties in WTO

Brief Literature Review
In present scenario E-Commerce is playing very essential role in the online
business. Although it is one of the best & cheapest intermediate for reaching out to
new customers in the online market, if e-commerce implemented effectively, it
also offers a smart way of doing online business & expanding it more.
An online business eCommerce podium is planned & implemented to make the
most of its reach to potential customers and provide them with a convenient,
satisfying & protected shopping experience.
Advantages of E-Commerce to the Online Business
E-Commerce helps to Increase the sales revenue to the business
Business people can spend less money and earn high profits with e-commerce
It is very Easier to scale up online
Easily we can track the segment of customers who are happy with purchasing
goods through online
Avoid losing sales to competitors who are online
Instantaneous global sales presence in quick time
We can Operate the business in 24 *7 basis
Easily we can increase our business customers
We set up shop anywhere in the world, self-governing of geographical
Inexpensive way to turn your Web site into a revenue center
Reduce Customer Support costs via e-mail marketing & customary newsletters
We can create customized mailing list
Easily we can drive free traffic to the website
Instantly we can develop our business across the internet by using various e-
commerce strategies
Customers can easily buy their products by using different payment gateways
Develop more shopping carts by using e-commerce
We can easily promote our business website by using various promotional
activities such as Search Engine Optimization, Pay Per Click Management,
Email Marketing, Social Media Optimization, Online Banner Advertisement,
Online Branding and Affiliate Management etc
B2C - business to consumer
In the Australian context B2C (business to consumer) trading activity has
been slow to take off as at first consumers had doubts about the security of
credit card transactions.
Initial B2C trading focused on music CDs, software and books - items which
were compact and easily shipped and where prices could be slashed once the
retailer's cut was taken out of the margin. The Amazon book store would be
a good example of this. These products pushed the perimeters of the market
out for goods bought on-line.
Books and CDs are relatively generic products. A CD bought in the US will
have the same music and quality as one bought locally (the exception is the
cover art) and so there is no doubt in the consumers mind exactly what the
product is. This is not the case with clothing, where sizes can confuse the
purchase decision... and where tactile senses figure strongly in the
purchasing decision.
Ebay has really transform purchasing behaviour on the web. Many people
have made their first ecommerce transaction on Ebay. Many people sell on
Ebay too, given raise to the work-from-home/drop shipping model of
Interestingly though B2C transactions of previously localised or hard to find
products can be extremely strong. If you have a unique product that is highly
relevant to a niche audience, you are likely to do very well on the web.
Although sales are increasing rapidly on the Internet, the volume of turnover
figures continue to fail short of industry estimates. But as retail web sites
become more navigable and privacy policies are displayed, more people will
be drawn to Net-based purchasing by lower prices and convenience.
B2B - business to business
On the Internet, B2B (business to business) is the exchange of products or
services between businesses rather than between businesses and consumers.
Although early interest centered on the growth of retailing on the Internet,
forecasts are that B2B revenue will far exceed B2C revenue in the near
According to studies published in early 2000, the money volume of B2B
exceeds that of B2C by 10 to 1. Over the next five years, B2B is expected to
have a compound annual growth of 41%.
Payment Gateways
Both PayPal and Paymate offer credit card to bank account payments. Using
one of these services you can invoice a customer, they can pay on Paymate
and the funds will be deposited in your bank account ... less a transaction
Unlike a credit card merchant facility you will not have ongoing, minimum
monthly fees... and the transaction fee is better than what most card
companies offer small merchants. Additional these service are being backed
into other ecommerce sites and shopping carts. Ebay for example uses
Paypal to process some payments.
The Rise and Rise of Auction Sites
Auction sites such as Ebay and TradeMe have done an enormous amount to
get ordinary people involved in online trading. Today many Ebay merchants
are establishing their own web sites to avoid Ebay and Pay Pal fees. They
have learnt about how to present their product in their Ebay store and what
issues are important to their customers in purchasing their product and now
they are ready to start their own web site.
On the Internet, security is handled by passing "keys" between Internet
server and client browser. When entering a secure site your browser is
passed a public key by which transactions between you and the web server
are encrypted. The servers key is always kept private.
On your web site security can be handled two ways - depending on your
budget. You can "piggyback" on someone else's "key" or you can register
and pay for your own key or SSL certificate at Thwate or Verisign.
Generally today businesses who host web sites offer access to a secure
server and you can use their server and secure certificate for less than if you
registered and paid for your own key.
However the person browsing your site will notice the URL change to one
they do not recognise - or trust. This may put your customers off (although
there is no evidence of this). Therefore one of the advantages of buying your
own key would be to have a URL for your secure pages that is consistent
with the rest of your site.
Presently, in Australia, Verisign may sell you a key for over $800 while
foreign ecommerce providers like Instant SSL can sell it for $150. Although
Verisign will argue that their key comes with a range of value add benefits,
the bottom line is the product, i.e. the key, is the same.

There is a wide acceptance of e-commerce in world due to the internet
facilities available.
The countries such as India, Brazil, and China etc which are on the path of
development are using e-commerce for carry out various transactions.
The e-commerce can surpass geographical limits and can prove to be worthy
by reaching to customers. It caters to the demands of both the national and
the international market.
The e-commerce can help in providing an edge to your rivals in the market
as one can better serve them globally.
The Countries such as USA, Australia, Canada , UK etc are trying to come
up with something innovative which will change the current scenario.
The countries are well aware of its benefits and are becoming more
innovative in this field as customers can easily select products from different
providers without moving around physically and it also help business to
handle its resources well.


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Laudon Kenneth C., Traver Carol Guercio (2008) , E-commerce Business ,
technology , society ,New Delhi ,Pearson Education

Hindustan Times