Online shopping can be categorized under the term Ecommerce.

Online shopping has made things interesting and convenient for us by offering a wide range of products just at the click of the mouse, thus minimizing our traveling to shops, stores etc. Electronic commerce has transformed the marketplace. refers to all the activities of marketing , purchase and sales of goods or services which are done online.

Commerce

Growth of E-Commerce Year

1998-99 1999-00

Revenue ($ Million U.S )

$ 400 $ 600

2000-01
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

$ 800
$ 1200 $ 1400 $ 1600 $ 2000 $ 40000 $ 50000 $ 80000 $ 130000 $ 185000 $ 265000

Business to Business (B2B) Consumer to Business (C2B)

Consumer to Consumer (C2C)

Business to Consumer (B2C)

Business to Business (B2B)

Companies doing business with each other such as manufacturers selling to distributors and whole sellers selling to retailers.

Business to Consumer (B2C)

Here

the consumer posts his project online with a defined budget. The companies reviews the project and bid on that. After reviewing the bids the consumer decides which company to select.

Consumer to Consumer (C2C)

Here the consumers can and buy and sell items through different payment gateways such as PayPal. Examples -EBay, Amazon.

Business to Consumer (B2C)

When a consumer orders something directly from a companys portal. Example- When we order a book by typing its ISBN.

Ecommerce has acted as a catalyst and has provided a boost to the economy in the following ways:

Monetary benefits in terms of increased revenue generation. Electronic links between businesses has been established (EDI) Globalization of economic activity. Demand for higher-skilled workers. Business opportunities for local establishments. Sectoral trends like electronic banking, direct booking of travel, one-to-one marketing etc SMO can be considered the outcomes of this only.

Monetary benefits in terms of increased revenue generation

Online shopping and other ecommerce activities have given a push to the economy in terms of revenue generation. As of now more than 40% of the world has access to the internet, and hence, e-commerce. Reduced Internet surfing charges, more expanded bandwidth coverage, increased speeds and reliability has made e-commerce available to a large pool of emerging market consumers and hence increased revenues for companies and more tax to the government.

Electronic Data Interchange

This comes in a broader sense in terms of a small enterprise buying from a large enterprise or where two large enterprises are involved. Thus, when transactions occur between them, its done through Electronic Data Interchange where things involved are bill of lading, cheques etc.

Globalization of Economy

As the internet penetration is increasing day by day so is ecommerce. Companies like Ebay and Amazon are expanding their foot prints in Asia and are earning good revenues. Ebays profit from India grew 10% from previous year

Demand for Higher-Skilled Workers

As the business increases so does it provides opportunities for employment as many positions are opened and tech-savvy people are required by the companies. Ebay employees more than 1000 people for its India operations. Thus, its also good for the countries where operations are being established as there are more job opportunities for the local masses.

Business Opportunities for Local Establishments

Ebay has joined hands with many local establishments in India (small scale industries) mainly dealing in handicrafts and other products. Thus, it is a win-win situation for both the parties as Ebay got a new overseas foot-print and owners of small scale industries got a new way to market their product in a global way.

Sectoral Trends

E-banking, e-ticketing and affiliate marketing are the trends which have are really driving the economy and have provided an ease to the user as well.

SMO

The advent of Social Media Optimization or Marketing can be considered an outcome of this only as now companies are trying to en-cash upon the customers online in terms of building brand identity so that customers become hardcore loyal towards the brand. Now the linkages are extending down to small businesses and households.

Cyber-traders are businesses without a significant physical presence which operate almost exclusively in cyberspace. These start-up companies own or control very little of the supply chain or physical production, but they provide convenient service. Thus, they get the required support in making their business reach new heights and become globalized.

Increased sales Narrow market segments are reached in geographically dispersed locations Creation of virtual communities Decreased costs in terms of Handling of sales inquiries Providing price quotes Determining product availability

Concerns about security of payment. Potentially fraudulent merchants. Privacy of personal data.

Hacking of accounts.
Misuse of information. Misrepresentation

As every coin has two side same is the case with online shopping too. The negative impact of online shopping is that its encouraging more trash at the curbside. Each and every online retailer relies on major carriers to deliver their goods. Eventually there is a rise not only in the local deliveries but also in the amount of paper, mixed paper, plastic and cardboard that is pushed into the city waste stream. The lack of studies on the overall online shopping "life cycle" has made products go from raw materials to the consumer's wastebasket.

Oecd.org/ scholarly articles http://www.winvest.com/concept/E-Commerce Ecommerce Best Practices by Thomas M Mc-Fadyen Online Shopping- Jason

Thank You