E-commerce: Presented By, Deepak Sakthivel Mohit Singhal Vasu Gami

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 and the transaction is verified electronically

Online Marketing The firm telecasts the products and Services they offer through internet

Logistics Goods or services which was ordered by the customer is shipped with help of logistics

Electronic data interchange(EDI) When the customer is interested in your 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 •

120 million online shoppers as of 2018

Statistics

• 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 The structure of business(Partnership, Private) should be decided

Cyber law Companies should adhere cyber laws Within India (Data privacy, Cyber security)

Taxes Taxes collection at source(TCS) under GST

Payment Gateway An government authorized payment gateway is necessary

Regulation policies in India(contd.,) Compliance with other laws Labor laws, Contract law, Banking laws, Financial laws

FDI policy Foreign firms investing in Indian E-commerce industries must follow FDI policy

RBI Norms E-commerce companies must adhere RBI norms(Ex: Customer KYC)

Bank Account A bank account is necessary and it should be linked with payment gateway

Intellectual property If specific logos/designs are used 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 • Order online and pick up at store is famous in foreign countries

@ practices

• 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 ecommerce 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