e-commerce

Presented by,
Deepak Sakthivel
Mohit Singhal
Vasu Gami
 What is e-commerce?
• Electronic commerce commonly known as e-commerce involves transfer of
information or resource across the internet
• It involves transfer of goods and service through internet without any time and
location barriers
• Three major areas of e-commerce are online marketing, electric markets and online
auctions
• e-commerce market became popular around 1999 by reaching market capitalisation
of $150 million
• e-commerce is blend of many industries like supply chain management, electronic
fund transfer, online marketing, inventory management
 Business models of e-commerce industries
Various types of business models in e-commerce industries are

• Business to Business(B2B) Ex: AmazonBusiness.in, IndustryBuying.com

• Business to Consumer(B2C) Ex: Amazon.in, Flipkart.com

• Consumer to Business(C2B) Ex: Glassdoor.com, Monsterindia.com

• Consumer to Consumer(C2C) Ex: Olx.in, Quikr.com

• Business to Administration(B2A) Ex: Accela.com

• Consumer to Administration(C2A) Ex: E-Democracy E-Commerce

 B2C Business model

Electronic Fund Transfer

Customer pays for the product or service Logistics
and the transaction is verified electronically
Goods or services which was ordered
by the customer is shipped with help of
logistics

Online Marketing Electronic data interchange(EDI)

The firm telecasts the products and When the customer is interested in your
Services they offer through internet goods or service he/she will add it to his
cart and the firm receives the data
 Indian e-commerce industry
• Ministry of Electronics & Information Technology is the regulating authority for e-
commerce in India
• Three business models are widely used in India
1. Inventory base model
2. Hybrid model of inventory model and market model
3. Market base model
Statistics
• 120 million online shoppers as of 2018
• The market value of Indian e-commerce is $32.7 billion
• 75% Indian’s prefer cash on delivery
• India has it’s own cyber Monday named Great Online shopping festival in B2C model
 Mergers and Acquisition in Indian e-commerce industry
Date Merger/Acquisition Companies Involved Cost

May 2014 Acquisition Flipkart acquires Myntra US$ 300 million

April 2015 Acquisition Snapdeal acquires FreeCharge US$ 400 million

June 2016 Acquisition Myntra acquires Jabong US$ 70 million

July 2017 Acquisition Axis Bank acquires FreeCharge US$ 60 million

April 2016 Acquisition Flipkart acquires PhonePe Undisclosed

May 2018 Acquisition Infibeam buys Unicommerce ₹120 crore (US$17 million)

May 2018 Acquisition Walmart acquires Flipkart US$ 16 billion

 Regulation policies in India
Registration
Registration of E-commerce business is similar
to registration of other business

Structure of business Taxes

The structure of business(Partnership, Taxes collection at source(TCS)
Private) should be decided under GST

Cyber law Payment Gateway

Companies should adhere cyber laws An government authorized payment
Within India (Data privacy, gateway is necessary
Cyber security)
 Regulation policies in India(contd.,)
Compliance with other laws
Labor laws, Contract law, Banking laws, Financial laws

FDI policy Bank Account

Foreign firms investing in Indian A bank account is necessary and it
E-commerce industries must follow should be linked with payment gateway
FDI policy

RBI Norms Intellectual property

E-commerce companies must adhere If specific logos/designs are used
RBI norms(Ex: Customer KYC) It should be registered
 International Practices
• Concept of COD is not in international B2C e-commerce industries
• E-commerce industries are well established in other countries than in India because of delay
in digitalisation
• Reverse logistics cost is more in India when compared to other countries
@
• The e-commerce customer base is less in comparison with other countries
• The delivery time is less because of less complication in logistics
practices
• Order online and pick up at store is famous in foreign countries
• B2A and C2A E-commerce models are not famous in India whereas in other developed
countries they are being used frequently.
 Recommendations
• Indian e-commerce firms should attract more customers
• B2A and C2A E-commerce models must be developed in India
• Reverse logistics cost should be reduced as it adds up the logistics cost for the e-
commerce industry
• Clear regulations must be made for e-commerce industries in India
• Supply chain in India is a major problem because of lack of infrastructure, reliability
and inaccessible towns in India
• Capital cost of e-Commerce industries is very high
• Government should encourage home based e-commerce firms
 Future of e-Commerce
• In future Virtual Reality (VR) will play an important role in E-commerce
industry
• Computer based e-Commerce markets will shift mostly towards m-commerce
• Voice assistants will play a major role in E-Commerce
• With introduction of GST e-Commerce industries have better governance by
government
• Automatic deliveries will emerge in near future
• The market capitalisation of e-commerce industries is expected to reach $200
billion in India by 2026.
• In future Asia Pacific region will be the largest region for e-commerce market
Thank You