CLASS TY.

BMS

E-COMMERCE AND DIGITAL

MARKETING

Prof. Varsha Dhotre

E-COMMERCE AND DIGITAL MARKETING
 Modules at a Glance

• 1 Introduction to E-Commerce
• 2 E-Business and Applications
• 3 Payment, Security, Privacy and Legal Issues
in E-Commerce
• 4 Digital Marketing
1. Introduction to E-Commerce
 WHAT IS E-COMMERCE?
• E-commerce (electronic commerce or EC) buying
and selling of products and services by
• Businesses and consumers through an electronic
medium, without using any paper documents.
• E-commerce is widely considered the buying and
selling of products over the internet, but any
• Transaction that is completed solely through
electronic measures can be considered e-
commerce.
 DEFINTION OF E-COMMERCE..
• ACCORDING TO E. TURBAN-
• “ E-Commerce describes the process of buying
and selling OR exchanging of products,
services and information via computer
networks including internet.”
 FEATURES OF E-COMMERCE
• Ubiquity- Ubiquity means state of being everywhere at once. With unprecedented
growth in the sales of tablets, smart phones, laptops and other internet related
gadgets, E-Commerce companies literally follow their consumers wherever they
go. E-Commerce shopping can be done even when consumer is walking or jogging.
• Global Reach- Unlike traditional retail business, ecommerce is not bounded by
geographical barriers. Today an ecommerce company can easily sell its products to
consumers residing in any parts of the country. The potential market scale is
roughly equivalent to the size of the online world’s population.
• Accurate Information- E-Commerce provides accurate information to the
customers. A customer can see the relevant detailed information within seconds
rather than waiting for days or weeks. Besides, E-commerce also provides accurate
information to customers about billing payment and shipping
• Personalization & Customization- E-Commerce technologies allow merchants to
target their marketing messages to people based on their interests and past
purchase history. They allow merchants to change the product or service to match
it with the purchasing behaviour and preferences of the customers.
 FEATURES OF E-COMMERCE
• Save time- E-Commerce helps consumers in saving most important thing
in today’s modern world: “Time”. With the help of E-Commerce,
consumers need not travel to shop to buy a product. Shopping online is
usually more convenient and time saving than conventional (traditional)
shopping

• Interactivity- E-Commerce technologies facilitate two-way

communication between the merchant and the consumer. A consumer
can interact with companies using chat, SMS, e-mail and voice over
internet protocol (VOIP).
• Provides wide Range of Products & Options: E-commerce application
provides wide range of products & options to compare and select the
cheaper and better option.
• Reduces Cost: E-Commerce helps the organisations to reduce the cost of
managing the paper based information by digitizing the information. It
also helps in customization of products to meet the demand of
customers, increasing productivity and customer care services.
CATEGORIES OF E-COMMERCE
 CATEGORIES OF E-COMMERCE
• B2B or Business to Business

• Business transactions taking place between the

manufacturers and distributors. The pricing is
dependent upon the quantity of the order.
• Example: An automobile manufacturer purchases
tyres, windscreens in bulk quantity from their
respective manufacturers.
 CATEGORIES OF E-COMMERCE
• B2C or Business to Consumer

• Business transactions taking place between

companies and consumers.
• Example: A Fast Moving Consumer Goods
(FMCG) company advertises its products on its
own website and allows customers to browse
through them and place the order directly
with them.
 CATEGORIES OF E-COMMERCE
• C2B or Consumer to Business
• A consumer posts his requirements and companies
that are capable of meeting the requirements, bid on
the project. The consumer reviews the bids and
selects the company capable of completing the
project.
• Example: Websites provide platform to developers or
coders and clients. The client posts his requirements
on this website, the developers or coders browse
through requirement details and place the bid.
 CATEGORIES OF E-COMMERCE
• C2C or Consumer to Consumer

• The consumer posts his products on a website and

another consumer purchases it through the online
auction method. The payment is done through providers
such as PayPal.
• Example: On eBay website, customers can sell their
products to other customers. Companies using internal
networks to offer their employees products and services
online—not necessarily online on the Web--are engaging
in B2E (Business-to-Employee) e-commerce.
 CATEGORIES OF E-COMMERCE
• B2G or Business to Government
• B2G defines commerce as between companies &
Public sector. For example – companies paying
Online Taxes to the Government.
• G2B or Government to Business
• Government offers varied business solution & service
that can be of benefit for the organization. Most
popular facility of there is filing all documents online
format.
 CATEGORIES OF E-COMMERCE
• G2C or Government to Consumer
• The best example of it is INDIAN RAILWAYS.
• Here we get an online services provided by the
government of Indian railways as to book tickets
online which saves consumers time.
• M-COMMERCE
• MOBILE COMMERCE is the buying & selling of goods
& services through wireless technology.
 ADVANTAGES OF E-COMMERCE

• Access to global market- The most important advantage of E-Commerce, is that it enables a
business concern or individual to reach global market. Just by creating a web site and uploading it on the
server, a firm is able to reach millions of customer worldwide. E-commerce creates the whole world as a
global village from where anyone can buy anything at anytime from anywhere. It helps to meet the
demands of both the national and the international market, as the business activities are no longer
restricted by geographical boundaries.
• Create New markets: The ability to reach potential customers easily and cheaply will create new
markets. Improved and better customer service: Since there is a direct contact with the customers, it is
possible to solve their queries regarding price, quality, additional features of the product, etc. and thus
resulting in a better improved customer service. Response time is reduced more quickly between the
seller and the buyer.
• Improved and better customer service: Since there is a direct contact with the
customers, it is possible to solve their queries regarding price, quality, additional features of
the product, etc. and thus resulting in a better improved customer service. Response time is
reduced more quickly between the seller and the buyer
 ADVANTAGES OF E-COMMERCE
• Time saving - E-Commerce helps consumers in saving the most important thing in today’s
modern world. ‘Time.’ With the help of E-commerce, consumers need not travel to shop to
buy a product. Shopping online is usually more convenient and time saving than conventional
(traditional) shopping.
• . 24x7 Available: Customer can do transaction for the product or enquire about any
product/services provided by a company anytime, anywhere from any location.
• Wide range of options- E-Commerce application provides wide range of product &
options to compare and select the cheaper and better option. The application helps the
customer with more options and quicker delivery of products.
• Increase in variety of goods: As the market will expand; the variety of goods available
will also expand. Wide variety of goods are available than ever before.
• Better Purchasing Decisions: E-Commerce helps the customers with user reviews and
feedbacks. This reviews and feedbacks by existing users will help the new users with better
purchasing decisions
 DISADVANTAGES OF E-COMMERCE

• Initial Cost of set up: the cost of creating/ building E-commerce application may be
very high.
• User registration: User may not trust unknown sites. Such mistrust makes it
difficult to make user switch from physical stores to online/ virtual stores.
• Security/privacy: It is very difficult to ensure security or privacy on online
transaction. Hence e-commerce is not accepted by older generations due to lack of
faith and trust.
• Absence of Physical Touch: Lack of touch, feel or trial of products during online
shopping is a major drawback of E-shopping. Many consumers are not comfortable
buying online due to lack of trial facilities which is possible in traditional stores.
• Dynamic E-commerce Environment: E-Commerce applications are still evolving
and changing rapidly. A person involved in business through E-commerce should
monitor the dynamic environment of ecommerce like technological changes, legal
aspects of ecommerce, changing component of consumers using online services.
These pose a challenge to any business or trade conducted online.
 DISADVANTAGES OF E-COMMERCE
• Lack of Internet Access: Internet Access is still not cheaper and is
inconvenient to use for many potential customers like one living in
remote village. Internet facility is still not accessible in many parts
of the country. Not only internet connection, mere electricity is a
problem in country like India in its rural interior sectors. Hence
business in those areas is just not possible through the Internet.
• Perishable Commodities: E-commerce is not suitable for perishable
commodities like food item as people prefer to shop in the
conventional way than to use e-commerce for purchasing food
products.
• System and Data Integrity: Data provided for online shopping may
be misused. Moreover, the danger of hackers accessing files and
corrupting accounts adds more stress to an already complex
operation.
DIFFERENCE BETWEEN TRADITONAL
COMMERCE AND E-COMMERCE
 ECONOMIC ENVIRONMENTAL
FACTORS
• Many companies engaging in E-Commerce too are
surrounded by various factors of the environment.
The ever changing environment poses numerous
challenge to the E-business firm to adjust & adapt
itself to realities of such environment.
• The factors of e-commerce can be denoted as ‘SLEPT’
• S – Social & Cultural factors
• L – Legal factors
• E - Economic factors
• P – Political factors
• T – Technological factors
 ECONOMIC ENVIRONMENTAL FACTORS
• Economic Environment: It includes economic policies and economic conditions of the country.
Economic events within the country and outside also affect economic environment. Changes in the
economic policies of the government lead to the change in the economic environment. Global
trade liberalization and technological advancements have opened up the domestic and
international markets. Trade liberalization is the elimination of trade barriers that previously
hindered free trade in international markets. These transformations of the business environment,
coupled with the widespread use of E-Commerce, have enabled small businesses to access local,
regional and global markets. The success of E-Commerce organizations depends on prevailing
economic conditions in target markets.
• Political Environment: Political Environment includes political parties and political conditions.
Political environment and economic environment are closely related as political decisions create
corresponding changes in the economic environment. For Example: Recently, the India government
has been promoting the growth of Internet usage in India. The Digital India programme was
launched by Prime Minister of India Narendra Modi on July 1, 2015, with an aim to connect rural
areas with high-speed Internet network and enhancing digital literacy across the country. The
programme aims at inclusive growth in the areas of electronic services, products, manufacturing
and opportunities etc.
• Technological Environment: Technological environment relates to the technology used in the
production and other business activities. One of the great challenges of managing E-
Commerce is the ability to assess the new technological innovations that can be applied to
give competitive advantage. The rapid development of technology requires quick reaction by
businesses in order to survive in an emerging competitive environment and keep up with
new trends and innovative services that other competitors might be offering. Example: With
300 million users, India is now the world’s second-largest smartphone market (2016).
Technological advancements in web apps and mobile apps have also positively impacted the
development and management of ecommerce websites.
 ECONOMIC ENVIRONMENTAL FACTORS
• Legal/ Regulatory Environment: It includes all the rules, regulations and laws
enacted by the Government. Regulatory environment creates a framework of
regulations and legal provisions within which the business units must operate.
What a business can do and what business cannot do are decided by the
regulatory environment. Example: The regulatory landscape regulating the
ecommerce sector in India is still evolving, but moving in a positive directions. In
March 2016, the Government allowed 100% foreign direct investments (FDI) in
online retail of goods and services. India has allowed 100% foreign investments in
business-to-business (B2B) ecommerce; however, it does not permit foreign
investments in retail ecommerce, that is, business-to-consumer (B2C).
• Socio – Cultural Environment: Socio- Cultural environment includes factors such as
life style, social values and beliefs, etc. Rising standard of living and increase in
disposable income of middle class customers have led to increase in demand for E-
Commerce. Ecommerce shopping is gaining increasing popularity among
consumers in India owing to the high levels of trust and convenience. Although
most consumers still rely on traditional retail channels, they have also
incorporated a favourable attitude towards ecommerce. Indians, especially in the
metros, have prioritized time and convenience, and therefore, are increasing
purchasing from ecommerce portals. Internet penetration has increased as more
rural consumers have been accessing the Internet using their mobile phones.
Demographic Environment: Demographic is the study of population in relation to
sex ratio, literacy rate, standard of living of people, rural/ urban division and size of
the family and so on. The market demand, requirements of the consumers etc. are
based on demographics environment. The study of demographic environment has
priority over other areas of business environment as business depends on people.
FACTORS RESPONSIBLE FOR GWOTH OF E-
COMMERCE
• Any time, Any where, Anyone
• Direct savings
• Promotions
• Growing usage of plastic money
• Brand image
• Digital convergence
• New emerging organizational design
 FACTORS RESPONSIBLE FOR GWOTH OF E-
COMMERCE
• Large number of Internet Users: Tremendous growth in internet users has led to increase in
demand for e-commerce. Ø According to Telecom Regulatory Authority of India (TRAI), there
were 391.50 million internet subscribers on December 31, 2016. Ø Technological
advancements in web apps and mobile apps have also positively impacted the development
and management of ecommerce websites.
• Rising middle class with disposable income: Consumer demand is rising rapidly even in small
towns and cities. However, with the rise of small and medium enterprises, foreign direct
investments, and India’s own powerful multinational corporations creating millions of new
jobs, a new generation of globally- minded Indian consumers has been created. Ø Moreover,
creations of jobs has lead to increase in disposable income of consumers. Furthermore, access
to many global and domestic brands is limited to major metropolitan regions, such as Delhi,
Mumbai and Bangalore. Therefore, this growing middle class is increasingly turning to E-
commerce as the primary outlet for sophisticated consumer products and services.
• Anytime, Anywhere, Anyone: The websites on the server have removed all the barriers of
availability of product from any part of the world anytime. E-commerce ties together the
industrial sector, merchants and service sectors and customer under one umbrella.
• Brand Image: E-commerce enhances goodwill of a company and make its products available to
masses. It gives high recognition in very less time through the web.
 FACTORS RESPONSIBLE FOR GWOTH OF E-
COMMERCE
• Growing usages of Plastic Money: The use of Plastic Money- mainly debit and credit cards
has been increasing over the years. The usage of these cards at point of sale terminals has
seen a growth. It indicates the willingness to use debit cards for purposes other than
withdrawing money at ATM’s. With many online retailers still insisting on use of cards for high
value transactions, it is a welcome change. It will allow e-tailers to reach out to many areas
and many more customers in coming years.
• Direct savings: The cost of delivering information as well as products to customers through e-
commerce saves a lot of money.
• Online shopping is the latest Craze: Despite the growth of online shopping being less than US
and Europe, it is growing at an enormous speed in India. There have been lot of new entrants
in the E-commerce segment selling a wide variety of apparels, furniture and household items.
About 60% of web users in India visit online retail sites. E-commerce sites such as Flipkart,
olx.com, Amazon.in have targeted the Indian population to buy and sell goods online.
• Digital Convergence: Everything is digitized nowadays whether it is data, voice, documents,
etc. The digital revolution has made it possible for growth of E-Commerce business in India.
 ISSUES / CHALLENGE IN IMPLEMENTING
E-COMMERCE
• Cost
• Shipping challeneg
• Security
• Existing system
• Resistance to change
 ISSUES / CHALLENGE IN IMPLEMENTING E-COMMERCE

• Cost- The cost of creating / building E-commerce application in-house may be very high. E-
Commerce systems require significant investments in hardware, software, Staffing and
Training.
• Security - Security is an essential part of any transaction that takes place over the internet.
Customer will lose faith in e-business if security is compromised The information provided by
customer must not be accessible to unauthorized person.
• Pushy Sales - When customers look for something for online shopping, they eventually get
frustrated with tons of popup and banner ads screaming at them, this will not help, as this
will only make customers switch to other websites.
• International Order - It is found that 40% of the E-Commerce shopping portals turn down
international orders as most of them doesn’t have the logistics, and other systems to fulfil
the order and this is a major challenge facing the global E-Commerce. Duties and tariffs are
other problems as customer tend to reject purchase due to high cost
• International Taxation - Every country has different taxation norms, incorporating them into
a E-commerce website is huge Challenge
 ISSUES / CHALLENGE IN IMPLEMENTING E-COMMERCE

• Shipping Challenges - E-Commerce capstone professional academy Issues related to lack

of supply chain integration, high delivery charges for products, delay in delivery and lack of
proper courier services in some areas also make customer frustrated. Ø For Example: -
Despite the emergence of several logistics companies in India, deliveries to smaller villages
and towns is still a challenge. Most logistic companies have good connectivity to Tier I, II and
III cities. However they lack of connectivity to smaller towns and villages
• Product Return, Refund etc. - Products which are not satisfactory for the customers tend
to get replaced or returned. This is another major issue which leads into overall loss in
revenue, loss of shipment cost and more than that all loss of reputation
• Currency Challenges - Different countries have different currency unit. This hinders
smoothness in E-Commerce shopping and product delivery. Issues related to credit card
limits and currency exchange rate also complicate the E-commerce process
 MYTHS OF E-COMMERECE

• Setting up a business on the web is easy and inexpensive - It is often

thought that setting up an e-commerce business is quite easy. While practically anyone with a
computer and internet access can setup a website, creating an on-line transactional
ecommerce business is requires months of back office work and investment in hardware and
software.
•Launching a website automatically means that customers will flock onto
your site - It is believed that setting up a website will automatically attract the customers.
However setting up a website is not enough. Promotion is key in getting potential customers to
check out your site. There are millions of website on the web and just like in a traditional store,
you need to market your site. The key to marketing your websites is networking and building
relationships with customers, other sites, trade organizations, on-line directories, and social
media sites so that people can find you.
•Making money on the web is easy- Generating a lot of revenue over the website is
considered to be a very easy task. However, online marketing requires larger investment in
terms of time as well as capital to increase the revenue. Thus money making over the website
is not an easy task.
 MYTHS OF E-COMMERECE

• Privacy is not an important issue on the web - Few people believe that customer is
not concerned about privacy. However, that is not true. The web allows companies to gain access to
unbelievable amount of information about customers. Companies use this information to gain
insight into product preferences and how they can market their services. Customers are
increasingly becoming concerned about their on-line security and this is a constant topic for
governments and internet service provider. Online companies should therefore protect their
customer from on-line fraud, identity theft and abuse of information by other third parties. It is
important to set up firewalls to safeguard your business against hacking and theft of customer’s
information.
• I don’t need a strategy to sell on-line - Building an on-line business is the same as
building a brick and mortar company. You need a strategy. You need to build a clear definition of the
company’s target markets, a thorough understanding of your customer’s needs, likes and dislikes.
Your website must be appealing to the customers that you want to attract. An e-commerce website
should be created keeping customers in mind.
• E-commerce will cause brick and mortar retail stores to disappear. It is believed
that growth of E-Commerce will lead to decline of Brick and Mortar stores but it is not true. The
growth of e-commerce poses a threat to those companies that operate under brick and mortar.
However, while there have been significant growth in e-commerce, it does not mean that retail
stores are not running well as, some products just need to be touched, seen and tried.
• The greatest opportunity for e-commerce lies in the retail sector. While the
growth of retail e-commerce is impressive, the biggest growth of on-line transactions has been
recorded in business to business selling.
 IMPACTS OF E-COMMERCE IN BUSINESS

• Business to business (B2B) trading where companies trade and

exchange information using the World Wide Web.
• Business to consumer (B2C) trading where companies deal directly
with customers through web pages, and ordering is carried out
online.

• Improvement Transforming Organization Redefining

• in Direct Marketing Organization
 IMPACTS OF E-COMMERCE IN BUSINESS
• Improvement in Direct Marketing: E-commerce enhances the promotion of products and
services through direct information. Ø There is reduced cycle time in delivery of products and
services. Customisation of product and services is possible through e-commerce. In the
recent times, every product can be customized through e-commerce, may be jewellery,
computer gifts, travel insurance, etc., and if it is done in proper way, one can achieve mass
customization that provides competitive advantages as well as increased overall demand. E-
commerce has drastically improved the ordering system such that orders can be quickly
routed to the right side and fewer mistakes are made. This saves time and reduces cost.
• Transforming Organisations: The traditional business environment is changing rapidly and
progress in e-commerce will force companies to adapt quickly to the new technology and
offer them as opportunity to experiment with new products, services and processes. To beat
the competition, company will have to learn to adapt new technologies and understand their
power in reshaping the organisational and customer relationships. It requires a flexible
attitude of firm to adapt to changing technologies and processes. Introducing new
technologies of e-commerce requires new organisation structure because traditional
structure may not yield appropriate results. To be more flexible and responsive to the
market, new processes must be put in place. This calls for re-engineering business processes.
 IMPACTS OF E-COMMERCE IN BUSINESS

• Redefining Organisations: E-commerce leads to better customer services, more

personalized products, reduced costs, supply chain efficiency and faster time to market.
Manufacturing systems are also affected from mass production to customized production.
Enterprise Resource Planning (ERP) systems plays a very important role in integrating the
entire organisation departments such as finance, marketing and other functional system as
well as with business partners and customers. ERP system takes orders from customers that
can be directed to production department thus reducing cycle time and orders from
customers that can be directed to production department thus reducing cycle time and
orders are completed within a stipulated time. E-commerce has its impact on the human
resources of the organization. It affects the process of recruitment, selection, training,
development, etc. E-commerce helps in proper inventory management and accurate demand
forecasting.
E-COMMERCE IN INDIA
 E-COMMERCE IN INDIA
• E-commerce in India: The low cost of computers and growing use of the Internet has shown tremendous
growth of ecommerce in India in the recent years.
• Growing Number of Internet Users: Tremendous growth in internet users has led to increase in demand for e-
commerce. Ø According to Telecom Regulatory Authority of India (TRAI), there were 391.50 million internet
subscribers on December 31, 2016. Ø Technological advancements in web apps and mobile apps have also
positively impacted the development and management of ecommerce websites.
• Localization of Internet Content: Content on Internet is available today in local languages. Google India
spokesperson says that web content search on Hindi has grown at a very high pace in the past year. Sensing
an opportunity, Snapdeal launched its interfaces in local languages. Online travel firm Make My Trip launched
its Hindi app in November 2014 and had plans to add four languages- Gujarati, Tamil, Telugu and Malayalam
soon after. With incremental growth in mobile subscriber coming mostly from people who are comfortable
with languages other than English, online retailers see this emergent segment as new growth driver.
• Growth of Mobile Commerce: Online retailers can reach non-metros mainly due to the usage of mobile
internet in the country. M-commerce facilitated buyers to assess the products online and buy with the click of
a button. Sellers can display products on websites and buyers select through the mobile phones and other
handled devices. Desktops, net books and laptops are being replaced by light weight access devices like
tablets and smart phones. Mobile internet is the new medium for access to online shopping sites, having
gained popularity of late due to changing lifestyles and reduction in tariffs for 4G data plans by all leading
telecom services providers. More importantly, reliance Jio can be credited for further penetration of 4G in
India.
• Rising middle class with disposable income: Consumer demand is rising rapidly even in small towns and
cities. However, with the rise of small and medium enterprises, foreign direct investments, and India’s own
powerful multinational corporations creating millions of new jobs, a new generation of globally- minded
Indian consumers has been created. Moreover, creations of jobs has lead to increase in disposable income of
consumers. Furthermore, access to many global and domestic brands is limited to major metropolitan
regions, such as Delhi, Mumbai and Bangalore. Therefore, this growing middle class is increasingly turning to
E-commerce as the primary outlet for sophisticated consumer products and services.
 TRENDS IN E-COMMERCE

Retail Banking Tourism Government Education

 BANKING SECTOR : The Banking Sector has been immensely benefited from the

implementation of superior technology during the recent past, almost every nation in the world .
• Automated Teller Machine: Automated Teller Machine is the most popular devise in India,
which enables the customers to withdraw their money 24 hours a day, 7 days a week. It is a
device that allows customer who has an ATM card to perform routine banking transactions
without interacting with a human teller. Tele Banking: Tele Banking facilitates the customer to
do entire non-cash related banking on telephone. Under this devise Automated Voice
Recorder is used for simpler queries and transaction. For complicated queries and
transactions, manned phone terminals are used.
• Automated Bank Branches: The latest trend in the Banking industry is Setting up of
Automated Bank Branches also known as e-lobby. The customers can perform all major
banking operations with the help of various machines installed in such E-lobbies. The aim of
such E-lobby is to provide 24x7 banking services to customer.
• Electronic Funds Transfer: Electronic Funds Transfer is the electronic transfer of money from
one bank account to another, either within a single financial institution or across multiple
institutions via computer based systems, without the direct intervention of bank staff.
Electronic Funds transfer has accelerated movement of funds all over the world.
• App Based Payments: Due to tremendous growth in Smartphone users , there has been
integration of banking services with various mobile applications resulting in app based
payment systems like Paytm, Tez, BHIM etc.
Tourism E-Commerce in tourism has been highly driven by innovation targeted to
provide more convenience to the customers. In very short period of time it has it
seen a lot of players and has become a very competitive area.

• Easy access to Information: A lot of information is available today on hotels, travel,

restaurants online. This information is free and available at any time. A traveler can get
required information about the place of visit across the globe just at a touch of finger.
• Discounts and Offers: There are various offers and discounts which are offered by online
tourism companies which prove to be very cost effective and economical for the traveler. E-
Tourism is much more economical and pocket friendly due to various discounts and offers
available for travelers especially during weekdays and offseason.
• Time Savings: Online bookings save a lot of time and efforts of the traveler. Now a traveler
need not stand in long queues to buy a railway ticket for an outstation destination. Tatkal
services by IRCTC are also very helpful to the travelers.
• Easy Comparisons: A traveler can easily compare rates of different hotels, cabs, buses and
make his own travel package due to easy availability of information online.
• Mobile Tourism and Mobile Apps: Travelers these days are starting to make more use of web
through mobile devices such as smart phones or i-pads. Thus, many tourism companies have
developed applications for mobile phones to further provide more convenience to the
customers. Some of the examples are:Makemytrip, Yatra.com, Trip Advisor, Clear trip etc.
Government E-Commerce in government enables citizens to avail fully online
services offered by the Central and State/UT Government authorities. With the help
of these facilities, one can avail the Government services through the internet
without visiting any government office.

• Complaint filing and Lodging: A citizen can file and lodge complaints and grievances related
to all government services, schemes and other initiatives. He can also lodge an FIR to police
station for any crime or theft.
• Application for important documents: Users can apply for any Government service, scheme,
job etc. Users can apply for the PAN card, TAN card, passport and other government service.
Forms and information on online and offline application procedures are also provided on the
government websites.
• Online booking of Government Services: Users can book their tickets for various transport
facilities such as airlines, trains, buses and ships. Detailed information on reservation of hotel
rooms, guest houses, hostels and tour packages is also provided. Link for online services for
reservation and booking hotels are also available nowadays on websites.
• Check/ Track status: One can check or track the status of their application for any
Government service. One can check status of train booking, hotel reservation, passport
application, RTI application etc. Results for various examinations and recruitment applications
are also available on websites.
• Digital India Program: This programme has been launched by Department of Electronics and
Information Technology (DeitY). The vision of Digital India aims to transform the country into
a digitally empowered society and knowledge economy.
 Retail Sector
• Retailers give consumers more payment options: Due to the rise in mobile commerce and shopping
online, there are new and more payment options which will also help retailers with compliance and
security. As retailers increasingly adopt these payment solutions, more stores can be expected to start
accepting additional payment types. Examples: Paytm, Paypal, Jio Money, Ola Money are some of the
examples which have acted as better alternatives for cash transactions..
• Mobile plays a bigger role in Retail Business: Introduction of smart phones has led to tremendous growth
in online transaction especially in retail business. Big Retail players like Amazon, Flipkart, Snapdeal etc
have acted as catalyst for development of online retail business. Nowadays, many consumer prefer buying
products online offering greater convenience as well as discounts. Example: Presently, India has more than
75 million customers who prefer buying products online through their smart phones.
• Retailers have to unify their online and offline data collection: Since today’s customer buy products from
multiple channels i.e. stores (offline) and internet (online) the retailers have to collect information about
the customer from online as well as offline data to analyse the buying behavior of customers.
• Retailers are taking efforts to remove friction from shopping: Frictionless shopping has always been an
objective of multichannel retailing. Retailers are taking efforts to explore ways in order to reduce friction in
the shopping journey of consumers. They are offering redemption and rewards to consumers and various
such promotional schemes.
• Loyalty programs are replaced by shopper convenience: Modern consumers still value rewards and
promotions, but they don’t matter as much anymore. Today while choosing a retailer, shoppers prioritize
value and convenience, over loyalty rewards. Retailers should note that simply implementing rewards,
won’t be enough to stay competitive. In future, the retailers who offer personalized rewards, coupled with
great products and convenient buying experiences will be most preferred.
• Retail pure-plays will disappear: Consumer today use a computer, smartphone, and tablet or in-store
technology while shopping. Retailers- whether they have started in brick and mortar or ecommerce- will
need to merge their physical and digital systems to serve all types of shoppers. Just operating on
traditional brick and mortar will not work in today’s business environment. For example: A retail store who
does not offer payment via cards, POS will lose respect and loyalty in today’s era of digitalization.
 EDUCATION
• Digital learning: Nowadays, educational institutes like school and colleges are
using various digital tools for teaching and learning. Classroom lectures are aided
with power point presentation, audio visuals to enhance the quality of teaching.
• App based learning: The emergence of a growing number of windows and
android- based educational applications is facilitating smoother teaching- learning
process. These apps have been helping students get easy access to a large number
of educational websites. Examples: Robomate app, Byju’s learning app etc.
• Learning with Tablets/ iPad: Tablets and iPad are now increasingly being used in
various competitive exams such as IIT JEE, JEE advance, the GMAT etc. Example:
Aakash Institute which provides coaching for engineering entrance exams, uses the
Aakash I-tutor tablet.
• Skill India Institute: Skill India is a campaign launched by Prime Minister Narendra
Modi on 15th July, 2015 which aim to train over 40 crore people in India in
different skills by 2022. The main emphasis is to skill the youths in such a way so
that they get employment and also improve entrepreneurship.
• Field Trips, Industrial Visits and Internship: Nowadays students are taken to field
trips and industrial visits to obtain practical knowledge on various subjects. Even
students are asked to do internship for certain duration to obtain practical insights
on various aspects
 M- COMMERCE

• Mobile Commerce is also

known as MOBILE Commerce.
•M-Commerce is the buying
and selling of goods and
services through wireless
handheld devices.
•M-Commerce is the process
of paying for services using a
mobile phone or personal
organizer.
 BENEFITS OF E-COMMERCE
• Convenience: With just a few clicks on mobile devices, customer can do shopping, banking, download
media files and more than that.
• Providing wider reach: The presence of a wireless link between the customer and service provider
eliminates the need for a fixed interface such as a computer for communication. Providers of e-commerce
services can therefore reach customers all over the world, creating the opportunity for new and increased
customer base.
• Ease in Banking and Financial services: This includes mobile banking which has brought banking at the
fingertips of the customers. It is the process of performing financial transactions on a mobile device like
cell phone, tablet, etc. Mobile banking is very convenient in today’s digital age with many banks offering
impressive apps. Payments of bills, fund transfers, balance enquiry, and array of services are provided to
the customers through mobile banking.
• Travel and Tourism: Tickets for local and national travel are booked online simply through the handset by
downloading applications: For example, Make My Trip, Yatra. Nowadays, even cabs are booked through
mobile applications. For example OLA, UBER etc.
• Social Networking: Mobile phones are used extensively for conducting business through social networking
sites, placing advertisements on Social Networking sites like Facebook.
• Time efficient: Performing M-Commerce transactions occurs on a real time basis. Users do not have to
plug anything like personal computer or wait for the laptop to load.
• Easy Connectivity: As long as the network signal is available, mobile devices can connect and do
commerce transactions not only mobile to mobile but also mobile to other devices. No need for modem or
WI-FI connectivity set up.
• Education: Education sector and students are benefitted through Mobile Commerce by providing
information at the tip of one’s finger. Online learning has emerged after the advent of mobile commerce.
There are various applications to down load e-books, online lectures and various other educational apps
have been launched
BENEFITS OF E-COMMERCE PROBLEMS OF E-COMMERCE
• Ease in banking & financial
services
• Mobile payments
• Travel & Tourism
• Social networking
• Mobile marketing
• Education
• Health care
PROBLEMS OF E-COMMERCE
• High cost
• Mobile devices offer limited
capabilities
• Limited storage
• Networks issues
 TRENDS IN E-COMMERCE
• Mobile payments: The increase in use of mobile devices to make
payment clearly indicates that market trends are in favour of mobile
commerce.
• Smartphone users: The smartphone users are booming now-a-days.
The number of smartphone users in 2014 was 1.5 billion, but it is
forecast to grow to 2.32 billion in 2017 and onwards.
• E-commerce on smartphone: With the increase in smartphone usage,
e-commerce activities should also shows a proportional increase. We
can say that growth in smartphone market has led to growth in E-
Commerce Industry.
• B2B mobile commerce: The B2C market was initially expected to
benefit from m-commerce technologies. But it seems that the B2B
market is the one doing so, as recent trends show. Seventy percent of
millennials are using m-commerce channels to buy products through
the B2B marketing network.
• Mobile app market: Mobile app generates more revenue as compared
to desktops and mobile browsers. Apps can certainly play a key role in
retailers mobile strategies, particularly for their most loyal customers.