E-Commerce and

Digital Marketing
(As per the Revised Syllabus 2016-17 of Mumbai University
for T.Y.BMS, Semester V)

Anita Agrawal
M.Com., MBA, M.Phil.,
HOD & BMS Coordinator,
SIES College of Arts, Science and Commerce, Sion (W).

Rahul Vasant Kotian

Information Technology,
Software Engineer at Hopscotch,
CEO of RVK Graphics,
(Visiting Faculty).

Tushar Agarwal
SET, Ph.D. Scholar, MBA (Marketing),
MBA (Corporate Governance), M.Com. (Management),
BMS Coordinator,
Chandrabhan Sharma College of Arts, Science & Commerce, Powai.

Vijayalakshmi Kannan
BCS, MBA (Marketing), UGC NET, Pursuing Ph.D.,
BMS Coordinator,
Mulund College of Commerce, Mulund.

ISO 9001:2008 CERTIFIED

© Authors
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any
means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the
publisher.

First Edition : 2016

Published by : Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd.,
“Ramdoot”, Dr. Bhalerao Marg, Girgaon, Mumbai - 400 004.
Phone: 022-23860170/23863863, Fax: 022-23877178
E-mail: [email protected]; Website: www.himpub.com
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New Delhi - 110 002. Phone: 011-23270392/23278631; Fax: 011-23256286
Nagpur : Kundanlal Chandak Industrial Estate, Ghat Road, Nagpur - 440 018.
Phone: 0712-2738731/3296733; Telefax: 0712-2721216
Bengaluru : Plot No. 91-33, 2nd Main Road, Seshadripuram, Behind Nataraja Theatre,
Bengaluru - 560020. Phone: 08041138821; Mobile: 9379847017, 9379847005
Hyderabad : No. 3-4-184, Lingampally, Besides Raghavendra Swamy Matham, Kachiguda,
Hyderabad - 500 027. Phone: 040-27560041/27550139
Chennai : New-20, Old-59, Thirumalai Pillai Road, T. Nagar, Chennai - 600 017.
Mobile: 9380460419
Pune : First Floor, “Laksha” Apartment, No. 527, Mehunpura, Shaniwarpeth
(Near Prabhat Theatre), Pune - 411 030. Phone: 020-24496323/24496333;
Mobile: 09370579333
Lucknow : House No. 731, Shekhupura Colony, Near B.D. Convent School, Aliganj,
Lucknow - 226 022. Phone: 0522-4012353; Mobile: 09307501549
Ahmedabad : 114, “SHAIL”, 1st Floor, Opp. Madhu Sudan House, C.G. Road, Navrang Pura,
Ahmedabad - 380 009. Phone: 079-26560126; Mobile: 09377088847
Ernakulam : 39/176 (New No.: 60/251), 1st Floor, Karikkamuri Road, Ernakulam,
Kochi - 682011. Phone: 0484-2378012, 2378016’ Mobile: 09387122121
Bhubaneswar : 5 Station Square, Bhubaneswar - 751 001 (Odisha).
Phone: 0674-2532129; Mobile: 09338746007
Kolkata : 108/4, Beliaghata Main Road, Near ID Hospital, Opp. SBI Bank,
Kolkata - 700 010, Phone: 033-32449649; Mobile: 7439040301
DTP by : Pravin Kharche
Printed at : Rose Fine Art, Mumbai. On behalf of HPH.
 PREFACE

Firstly, I would like to thank my parents, Vasant Kotian and Ratna Kotian. Without
their moral support and encouragement, I would have never been able to achieve my goals.
Mom and dad, this one is for you!
My brother, Rakesh Kotian, who helped me on expressing commerce precisely.
Sincere thanks to Manish Shah for his valuable guidance.
It is a matter of great pleasure to hand over First edition of this book on “E-Commerce
and Digital Marketing” to the students and teachers of T.Y.BMS course started by
University of Mumbai.
We have tried to make and present the book in simple and precise language. The
diagrams and step by step answers will be helpful to understand the subject clearly.
We are grateful to all our family members for constant support and motivation.
Special thanks to S.K. Srivastava of M/s Himalaya Publishing House Pvt. Ltd.
Any constructive suggestion from teachers and students for improving this textbook in
future are welcome on our e-mail id:
[email protected],
[email protected],
[email protected],
[email protected].

Authors
 SYLLABUS
E-Commerce and Digital Marketing

Modules at a Glance
S.No. Modules No. of Lectures
1 Introduction to E-Commerce 15
2 E-Business and Applications 15
3 Payment, Security, Privacy and Legal Issues in E-Commerce 15
4 Digital Marketing 15
Total 60

Objectives
S.No. Objectives
1 To understand increasing significance of E-Commerce and its applications in business and
various sectors
2 To provide an insight on Digital Marketing activities on various Social Media platforms
and its emerging significance in business
3 To understand latest trends and practices in E-Commerce and Digital Marketing, along
with its challenges and opportunities for an organisation

S.No. Modules/Units
1 Introduction to E-Commerce
● E-Commerce – Meaning, Features of E-Commerce, Categories of E-Commerce,
Advantages and Limitations of E-Commerce, Traditional Commerce and E-Commerce.
● E-Commerce Environmental Factors: Economic, Technological, Legal, Cultural and Social.
● Factors Responsible for Growth of E-Commerce, Issues in Implementing E-Commerce,
Myths of E-Commerce.
● Impact of E-Commerce on Business, E-Commerce in India.
● Trends in E-Commerce in Various Sectors: Retail, Banking, Tourism, Government,
Education.
● Meaning of M-Commerce, Benefits of M-Commerce, Trends in M-Commerce.
2 E-Business and Applications
● E-Business: Meaning, Launching an E-Business, Different Phases of Launching an
E-Business.
● Important Concepts in E-Business: Data Warehouse, Customer Relationship
Management, Supply Chain Management, Enterprise Resource Planning.
● Bricks and Clicks Business Models in E-Business: Brick and Mortar, Pure Online, Bricks
and Clicks, Advantages of Bricks and Clicks Business Model, Superiority of Bricks and
Clicks, E-Business Applications: E-Procurement, E-Communication, E-Delivery, E-Auction,
E-Trading.
 ● Electronic Data Interchange (EDI) in E-Business: Meaning of EDI, Benefits of EDI,
Drawbacks of EDI, Applications of EDI.
● Website: Design and Development of Website, Advantages of Website, Principles of
Web Design, Life Cycle Approach for Building a Website, Different Ways of Building a
Website.
3 Payment, Security, Privacy and Legal Issues in E-Commerce
● Issues Relating to Privacy and Security in E-Business.
● Electronic Payment Systems: Features, Different Payment Systems: Debit Card, Credit
Card, Smart Card, E-Cash, E-Cheque, E-Wallet, Electronic Fund Transfer.
● Payment Gateway: Introduction, Payment Gateway Process, Payment Gateway Types,
Advantages and Disadvantages of Payment Gateway.
● Types of Transaction Security.
● E-Commerce Laws: Need for E-Commerce laws, E-Commerce Laws in India, Legal
Issues in E-Commerce in India, IT Act 2000.
4 Digital Marketing
● Introduction to Digital Marketing, Advantages and Limitations of Digital Marketing.
● Various Activities of Digital Marketing: Search Engine Optimization, Search Engine
Marketing, Content Marketing and Content Influencer Marketing, Campaign Marketing,
E-mail Marketing, Display Advertising, Blog Marketing, Viral Marketing, Podcasts and
Vodcasts.
● Digital Marketing on Various Social Media Platforms.
● Online Advertisement, Online Marketing Research, Online PR.
● Web Analytics.
● Promoting Web Traffic.
● Latest Developments and Strategies in Digital Marketing.
 PAPER PATTERN

Duration: 2.5 hours 75 Marks

N.B: 5 questions of 15 marks each.

All questions are compulsory.

Q. 1. Attempt any 2 15 Marks

(a) 7.5 Marks
(b) 7.5 Marks
(c) 7.5 Marks

Q. 2. Attempt any 2 15 Marks

(a) 7.5 Marks
(b) 7.5 Marks
(c) 7.5 Marks

Q. 3. Attempt any 2 15 Marks

(a) 7.5 Marks
(b) 7.5 Marks
(c) 7.5 Marks

Q. 4. Attempt any 2 15 Marks

(a) 7.5 Marks
(b) 7.5 Marks
(c) 7.5 Marks

Q. 5. Case Study 15 Marks

 CONTENTS

Unit Page
Title
No. No.

1. Introduction to E–Commerce 1 – 22

2. E-Business and Applications 23 – 49

3. Payment, Security, Privacy and Legal Issues in E-Commerce 50 – 63

4. Digital Marketing 64 – 98

Case Studies 99 – 106

References 107
 Unit 1 Introduction to E-Commerce

Structure:
1.1 Introduction
1.2 What is E-Commerce – An Overview
1.3 Features of E-Commerce
1.4 Categories of E-Commerce
1.5 Advantages and Limitations of E-Commerce
1.6 E-commerce Environmental Factors
1.6.1 Economic
1.6.2 Technological
1.6.3 Legal and Regulatory Factors Affecting Business
1.6.4 Socio-cultural Factors
1.7 Factors Responsible for Growth of E-Commerce
1.8 Issues in Implementing E-Commerce
1.9 Myths of E-Commerce
1.10 Impact of E-Commerce on Business
1.11 E-Commerce in India
1.12 Trends in E-Commerce in Various Sectors
1.12.1 Retail
1.12.2 Banking
1.12.3 Tourism
1.12.4 Government
1.12.5 Education
1.13 Mobile Commerce
1.14 Benefits of M-Commerce
1.15 Trends in M-Commerce
1.16 Summary
1.17 Questions

1.1 INTRODUCTION
Commerce plays a vital role in Improving individual’s lifestyle, Society’s foundation, Building a
wealthy and strong nation.
2 E-Commerce and Digital Marketing

With the advent of technology, a product or a service could be purchased or sold from any part of
the country and that too without being physically present
E–Commerce resulted in many more innovations such as:
● Electronic funds transfer
● Supply chain management
● Internet marketing
● Electronic data interchange and so on and so forth

1.2 WHAT IS E-COMMERCE – AN OVERVIEW

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.
Electronic commerce is subdivided into three categories: business to business in B2B, business to
consumer or B2C and consumer to consumer or C2C.

Buying and Selling Products

Shipping Products

Producing financial statements

Core Activities of E-Commerce

As the functions are carried out without any human intervention they are called as “E” in
E-Commerce. It does not imply that the humans completely vanish from the scene.
People use the term “e-commerce” or “online shopping” to describe the process of searching for
and selecting products in online catalogues and then “checking out” using a credit card and encrypted
payment processing. Internet sales are increasing rapidly as consumers take advantage of:
● Lower prices offered by vendors operating with less margin than a bricks and mortar store
● Greater convenience of having a product delivered rather than the cost of time and transport
and parking of going to a store
● Sourcing product more cheaply from overseas vendors
● Great variety and inventory offered by online stores
● Comparison engines that compare and recommend product
● Auction sites, where they did for goods

1.3 FEATURES OF E-COMMERCE

E-commerce can provide the following benefits over non-electronic commerce:
● Reduced costs by reducing labour, reduced paper work, reduced errors in keying in data,
reduce post costs.
Introduction to E-Commerce 3

● Reduced time Shorter lead times for payment and return on investment in advertising, faster
delivery of product.
● Flexibility with efficiency The ability to handle complex situations, product ranges and
customer profiles without the situation becoming unmanageable.
● Improve relationships with trading partners Improved communication between trading
partners leads to enhanced long-term relationships.
● Lock in Customers The closer you are to your customer and the more you work with them
to change from normal business practices to best practice e-commerce the harder it is for a
competitor to upset your customer relationship.
● New Markets the Internet has the potential to expand your business into wider geographical
locations.
● Quick, easy and convenient, E-commerce has enabled the consumer to complete
transactions from the comfort of their own home, transactions that would usually happen
within the walls of a store. Transactions now take only minutes, rather than the hours
included in physically getting to the stores.
● Lower prices, many consumers are turning to e-commerce for their needs due to the lower
price for many everyday items. Different factors on the merchant’s side of the equation
allow them to sell products at a lower price compared to a standard store and these cost
savings are often passed to the end consumer.
● Product comparisons, not only are consumers finding it quick and more convenient to shop
online but they are also making more comparisons than ever. Comparing the price, delivery
time and product specifications have never been simpler. Quickly browsing multi websites
that stock products that suite your criteria is as simple as search. Consumers can now
compare multiple products in minutes.
There are three important components of E-Commerce

Catalog Shopping Cart Payment Mode

● It contains the information ● A basket that we carry to ● Deals with payment for the
about the products sold or the market to purchase products purchased
services being offered goods ● The payment mode could
● Allows the user to browse ● A tool in which we keep be wire to wire bank
through what is being adding up items that we transaction, PayPal
offered and allows him to wish to purchase transaction or net banking
choose and purchase from transfer
the list
● The catalogue might carry
the picture of the product,
details of the product, and
cost of the product

The additional technical components of electronic commerce comprise

1 2 3 4 5 6
Client or PC Transaction Database Database Router Internet
Workstation Server Server Transaction Communication
Line
4 E-Commerce and Digital Marketing

1.4 CATEGORIES OF E-COMMERCE

E-Commerce

B2B – Business B2C – Business C2B – Consumer C2C – Consumer

to Business to Consumer to Business to Consumer

● 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.
● B2C or Business to Consumer
 The selling of products of a merchant to the general public takes place through catalogs
utilizing the shopping cart software.
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.
● 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.
● 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.
Introduction to E-Commerce 5

G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-

to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-
to-Government) are other forms of e-commerce that involve transactions with the
government--from procurement to filing taxes to business registrations to renewing licenses.
There are other categories of e-commerce out there, but they tend to be superfluous.

1.5 ADVANTAGES AND LIMITATIONS OF E-COMMERCE

E-Commerce Advantages for Customers
● Convenience. Every product is at the tip of your fingers on the internet, literally. Type in
the product you are looking for into your favourite search engine and every option will
appear in a well-organized list in a matter of seconds.
● Time saving. With e-commerce there is no driving in circles while looking and digging in
hopes of finding what you need. Stores online offer their full line as well as use warehouses
instead of store fronts—products are easy to locate and can be delivered to your door in just
days.
● Economy Benefit. E-commerce allows us to make transaction without any needs on stores,
infrastructure investment, and other common things we find. Companies only need well-
built website and customer service.
● Easy to compare. Side by side comparisons are readily available and easy to do. When
products are placed online, they come with all the specifics, and they want you to compare
them with others, know they have the best options and come back for more!
● Easy to find reviews. Because the competition is high, companies online want you to look
at other consumer reviews. Good and bad reviews are on every site, not only can you see if
the product is liked, you can also see the reasons behind the thumbs up or down.
● Coupons and deals. With every online business wanting you, more and more coupons and
deals can’t be avoided, which are totally great for customers. With major sites that act as
department store, you may find items up to 80% off! Take advantage of the competition and
find the best price available.
E-Commerce Advantages for Businesses
● Increasing customer base. The customer base is every business’s main concern, online or
off. When online, a business doesn’t have to worry about getting the best property in town,
people from around the world have access to their products and can come back at any time.
● Rise in sales. By not managing a storefront, any business will have more sales online with a
higher profit margin. They can redistribute money to make the consumer shopping
experience faster and more efficient. While being available to international markets, more
products will sell.
● Round the clock availability. If it’s snowing and the roads are closed, or it’s too hot and
humid to even step outside in the summer, or a holiday that every store in town closes, your
online business is open for consumers 24/7 every day of the year. The doors never close and
profits will keep rising.
● Expand business reach. A great tool on the internet is…translation! A business online does
not have to make a site for every language. With the right marketing, every consumer
around the globe can find the business site, products and information without leaving home.
6 E-Commerce and Digital Marketing

● Recurring payments made easy. With a little research, every business can set up recurring
payments. Find the provider that best suits your needs and billing will be done in a
consistent manner; payments will be received in the same way.
● Instant transactions. With e-commerce there is no more waiting for the check to clear, or a
30-day wait for certain other types of payment. Transactions are cleared immediately or at
most two to three days for the money to clear through the banking system.
E-Commerce Disadvantages
E-Commerce Disadvantages for Customers
● Privacy and security. Before making instant transactions online, be sure to check the sites
certificates of security. While it may be easy and convenient to shop, no one wants their
personal information to be stolen. While many sites are reputable, always do your research
for those with less than sufficient security.
● Quality. While e-commerce makes everything easily accessible, a consumer cannot actually
touch products until they are delivered to the door. It is important to view the return policy
before buying. Always make sure returning goods is an option.
● Hidden costs. When making purchases, the consumer is aware of the product cost, shipping,
handling and possible taxes. Be advised: there may be hidden fees that won’t show up on
your purchasing bill but will show up on your form of payment. Extra handling fees may
occur, especially with international purchases.
● Delay in receiving goods. Although delivery of products is often quicker than expected, be
prepared for delays. A snow storm in one place may throw off the shipping system across
the board. There is also a chance that your product may be lost or delivered to the wrong
address.
● Need access to internet. Internet access is not free, and if you are using free Wi-Fi, there is
the chance of information theft over an unsecure site. If you have your public library, or
cannot afford the internet or computer at home, it may be best to shop locally.
● Lack of personal interaction. While the rules and regulations of each e-commerce business
is laid out for you to read, there is a lot to read and it may be confusing when it comes to the
legalities. With large or important orders, there is no one you can talk to face to face when
you have questions and concerns.
E-Commerce Disadvantages for Businesses
● Security issues. While businesses make great efforts to keep themselves and the consumer
safe, there are people out there that will break every firewall possible to get the information
they want. We have all seen recently how the biggest and most renown business can be
hacked online.
● Credit card issues. Many credit card businesses will take the side of the consumer when
there is dispute about billing—they want to keep their clients, too. This can lead to a loss for
e-commerce business when goods have already been delivered and the payment is refunded
back to the consumer.
● Extra expense and expertise for e-commerce infrastructure. To be sure an online
business is running correctly, money will have to be invested. As an owner, you need to
know transactions are being handled properly and products are represented in the most
truthful way. To make sure you get what you need, you will have to hire a professional to tie
up any loose ends.
Introduction to E-Commerce 7

● Needs for expanded reverse logistics. The infrastructure of an online business must be on
point. This will be another cost to the business because money will need to be invested to
ensure proper handling of all aspects of buying and selling, especially with disgruntled
consumers that want more than a refund.
● Sufficient internet service. Although it seems that everyone is now on the internet all the
time, there are still areas in which network bandwidth can cause issues. Before setting up an
e-commerce business, be sure your area can handle the telecommunication bandwidth you
will need to run effectively.
● Constant upkeep. When a business has started as e-commerce, they must be ready to make
changes to stay compatible. While technology grows, the systems that support your business
must be kept up to date or replaced if needed. There may be additional overhead in order to
keep data bases and applications running.

1.6 E-COMMERCE ENVIRONMENTAL FACTORS

1.6.1 Economic
The economic environment consists of external factors in a business’ market and the broader
economy that can influence a business. You can divide the economic environment into the
microeconomic environment, which affects business decision making - such as individual actions of
firms and consumers and the macroeconomic environment, which affects an entire economy and all of
its participants.
Macroeconomic influences are broad economic factors that either directly or indirectly affect the
entire economy and all of its participants, including your business.
These factors include such things as:
● Interest rates
● Taxes
● Inflation
● Currency exchange rates
● Consumer discretionary income
● Savings rates
● Consumer confidence levels
● Unemployment rate
● Recession
● Depression
Microeconomic factors influence how your business will make decisions. Unlike macroeconomic
factors, these factors are far less broad in scope and do not necessarily affect the entire economy as a
whole. Microeconomic factors influencing a business include:
● Market size
● Demand
● Supply
● Competitors
● Suppliers
● Distribution chain, such as retailer stores
8 E-Commerce and Digital Marketing

1.6.2 Technological
Technological change is improvement in the ‘art’ of making products or developing processes. A
technological product is just something that man created using the application of knowledge to
improve a person’s life, environment or society.
A technological process is a means to make and improve products and services.
For example, the traditional manner of ‘printing’ magazines involved a mechanical printing press.
Now, a new technological process has been developed to digitize the magazine to be transmitted and
stored electronically.
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 which
other competitors might be offering.
These technological factors can include both products and processes and can present
opportunities and threats but it is vital for competitive advantage and is a successful driver in
globalisation. Products can be marketed in new ways and processes present immense Value to the
business.
Advantages of Change
Technological change can bring about advantages and opportunities for businesses. Obviously,
new technology can create new products and services, thereby creating entire new markets for a
business. Moreover, improvements in technological products and processes can increase productivity
and reduce costs.
1.6.3 Legal and Regulatory Factors Affecting Business
The legal and regulatory environment plays a very crucial role in determining the success of any
businesses. The government imposes taxes among other regulatory measures to promote economic
growth and to cushion consumers from exploitation. Therefore, before establishing or when running a
business, it is imperative to understand the role of regional tax measures and regulatory measures to
determine how they affect your business.
Understanding legal and regulatory measures also help you to adapt to your business
environment and to account for all your regional economic analysis.
● Tax: Tax is one of the legal and regulatory factors that affect business. Tax codes may vary
from one country to the other and from one region in a country to the other. They can
support a business while other tax restricts certain business operations.
● Trade policies: Trade policies also affect business. They include tax policies, monetary
policies, fiscal policy, government policy, regulatory policy and property rights policies.
● Politics: Politics can affect a business a great deal. This is form of government where
political environment determines whether a business will be stable or not. A stable political
environment builds investor confidence and boosts the growth of a business.
● Economic policy: Economic policy of the government also affects business. It is a legal and
regulatory factor that helps to promote economic growth in a country.
1.6.4 Socio-cultural Factors
1. Means of Communication: Every community has a means of communication and the
ability for you to key into their style of communication will go a long way to positively
impact your business.
Introduction to E-Commerce 9

2. Purchasing Power: It is very important that you know the purchasing power of the people
that live in the area where you intend establishing your business.
3. Advertising Preference: Advertising preference is another socio-cultural factors that
affects businesses globally.
4. Myth: Myth is also another social cultural factor that influences a business. The myth that is
generally accepted by a group of people that live in an area goes a long way to impact the
kind of businesses that can survive in such communities.
5. Education: The importance placed on education by a group of people that live in a
particular area can also determine the kind of business that can thrive in that area.
6. Social Organization: Most communities are organized in such ways that place some people
over other people.
For instance; in an ideal local community (villages in Africa), you would have kings, chiefs,
subjects and even slaves. So if for instance; you own a business in such communities, you
must endeavour to always be in the good book of the king or even the chiefs in the
community if you intend to continue to be in business.

1.7 FACTORS RESPONSIBLE FOR GROWTH OF E-COMMERCE

Curated E-commerce
In electronic commerce (e-commerce) terminology, curated commerce refers to creating unique
product lines that provide customers with a distinct collection not offered by other online retailers in a
market. The powerful influence of various social media tools such as Pinterest or Facebook allows
consumers to organize their favourite items and segment it into themed collections to share it with
others.
This fuels personal expression in shopping and makes others reflect on their purchase decision.
This is the evolution of influential personal recommendation.
Adoption of Multi-channel Investments
Cross-channel investments are highly aggressive in augmenting both online and offline buying
strategies. Multi-channel e-commerce business is an environment in which a company can sell through
two or more online channels. Many stores are pushing endless-aisle initiatives and are being used as a
warehouse for an online catalogue to enhance the speed of home delivery.
Sometimes a company also inherits legacy Web store from an acquisition.
Unique or Commoditized Products
Establishing a reputation and brand for quality products always drives demand. Commoditized
products such as mainstream tools, consumer electronics or other equipment’s generally show less
success while selling online. Even though these are the most popular online items, consumers prefer to
buy them from renowned retailers such as eBay or Amazon.
Some small businesses have found success through affiliation with major retailers.
Remarketing
Businesses of any size have to be creative to stand out of the crowd. E-commerce creativity
emerges from multiple touches to produce continued interests in the products. In one word, this
technique is popularly known as Remarketing.
10 E-Commerce and Digital Marketing

When any potential customer visits a website but leaves it without purchasing any items,
companies follow them online. The attitude of the customers can be changed through Remarketing.
Remarketing can convince to complete their purchase that they have previously failed to do. It is a
method of conversion marketing which is a receptive marketing technique that endeavours to appeal a
consumer response.
One can experience Remarketing if they notice any ads that are extremely reflective of their
interests.
Maintaining E-commerce Sites by the Third-Party Provider
Creating an attractive and functional e-commerce site is quite a challenging task. However, a
third-party e-commerce provider will make this task simple for you. They offer site set up and
maintenance to entice businesses. For instance, some of the third-party e-commerce site providers do
not charge any transaction fees once the items are sold. Instead, they offer monthly plans.
Besides, the emergence of digital services is gradually proving to be the leading driver for
e-commerce growth. The rise of portable mobile devices and advanced videos is increasing the desire
of the consumer to spend more time researching online for price matching and ultimately on their
buying decision.
Let us find out the impact of commerce to drive e-commerce future progress. Research shows
that 81% of the Smartphone users access the Internet on their mobile devices. Does the e-commerce
store need any other reason to make their sites mobile optimized? (I guess NO). With the discovery of
different innovative apps every day, e-commerce has matured extensively. It is not just the phones that
are driving retail Web traffic, but, tablets are equally responsible in this context. Tablets are mostly
used during evening prime-time hours, when the consumers are in their leisure state of mind.
Payment methods can make or break a purchase decision. The choice of payment methods
offered to the consumer seems to be constantly evolving. Besides the growth of contactless payment
methods with mobile transactions, there is a drastic change in the way people pay for their products.
Services like Apple’s iTunes and PayPal have already initiated centralized payments on various
mobile devices. Such liberties to accept payment will be invaluable for merchants of all sizes in the
near future.
The increased use of videos to provide insights into products has undoubtedly made the shopping
experience more delightful. Videos are a great alternative to give customers a virtual feel of products.
The e-commerce industry will continue to evolve and progress with the passage of time. Of all
the upcoming trends, the only thing that will remain consistent is the need to build loyal customers
through competing on value and by providing quality customer service.
Introduction to E-Commerce 11

1.8 ISSUES IN IMPLEMENTING E-COMMERCE

SHIPPING

SEGMENTATION

CUSTOMER SERVICES

MULTIPLE PAYMENT OPTIONS

SITE NAVIGATION

PERSONALIZATION
E-commerce is advancing at a fast pace, and lots of online e-commerce websites are entering the
Web every day. The competition is continuously increasing. Remember that you are not selling
directly to customers you have to do something to make customers attracted towards you. Still it is
found that companies are treating online customers with a certain level of ignorance which will
eventually lead into loss of customers.
E-commerce has got the potential to create personalized experience for shopper even though
good analytics are required to understand its power.
There are a lot of challenges that the current e-commerce shopping portals are facing. Just go
through them, as you might also be facing these challenges. We will also offer some suggestions that
might help you in overcoming these challenges.
Challenges
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 is not going to help you, as this
will only make customers switch to other sites. there are so many of them now.
Personalization: Personalization can be the single most important challenge when it comes to
e-commerce and its competition to you’re the retail stores that we used to go as children. the store
owners remembered us, our preferences and had that personal touch which is difficult to replace when
you are selling online.
No-Service Sales: Your e-commerce web-store might be attractive, but what if the customers get
lost in your site without having any idea about what to search and where to go? This is common
challenge that many e-commerce websites are having.
12 E-Commerce and Digital Marketing

Choice of good e-commerce solution: You can build your e-commerce website from scratch, or
build it in Drupal using Overact or e-commerce tailored CMS solutions like Magneto e-commerce site
development. You can also use hosted service like Shopify. Since there are several options, selecting
appropriate one is a challenge.
International Orders: 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 problem as
customers tend to reject purchase due to such high cost.
Shipping Challenges: 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 customers
frustrated.
Product Return, Refund: Product which is not satisfactory for the customers tends to get
replaced or returned. This is another major issue which leads into overall loss in revenue, loss of
shipment costs and more than all these losses of your reputation.
Currency Challenges: Different countries have different import export specifications. This
hinders smoothness in e-commerce shopping and product delivery. Issues related to credit card limits
and currency exchange rates. Certain countries also restrict payment gateways causing problem.
International Taxation: We are living in a global village and web has truly made our business
boundaries seamless, global and boundary-less (virtually speaking). But the catch is the world still
lives in physical boundaries and this is not going to change anytime soon. Every country (even states
inside them) have different taxation norms. incorporating them into a web fabric is a huge challenge.
Customer Service: Marketers focuses on the website performance ignoring customer
relationship and in-personal assistance.
Solutions
While some of the above challenges are impossible to solve in near term owing to external
factors not in control of business owners currently, we can solve and work around many others. here is
what can be done:
Personalization: Commonly used to enhance customer service or e-commerce sales,
personalization is sometimes referred to as one-to-one marketing, because the enterprise’s Web page is
tailored to specifically target each individual consumer. Personalization is a means of meeting the
customer’s needs more effectively and efficiently, making interactions faster and easier and,
consequently, increasing customer satisfaction and the likelihood of repeat visits. Utilize intelligent
tools like web analytics, study customer behaviour online, reward and reach out to customers. the
more personalization you can out into your web-store. more the customers will love you.
Segmentation: Customer segmentation is important. All customers should not be treated in the
same way. It is good to divide customers based on first-time users, high valued active users and
inactive customers, based on which you can provide offers and promotion campaigns. Use analytics to
target the right to the right customers.
Make Your Site Navigable: Customers sometimes tend to get lost in your site. Provide proper
navigation in your site to make things easier for your customers. Try to make your e-commerce site
properly structured.
Choosing E-Commerce Solution: It is better to do some research based on your specific needs.
Read the feature lists, try demos, and get reviews from who know better about this. It is always better
Introduction to E-Commerce 13

to choose something that has large community as it will offer help, tutorials, sample codes, third party
plug-ins, themes, and security auditing, which will help you in enhancing the productivity for your
e-commerce web-store.
Delivered Duties Paid: emarketers pay duties and taxes for what they sell. It is better to sell
products internationally on an all-inclusive price basis and hassle free services though all international
courier facilities. Product registration and reduction is shipping cost is another good solution.
Shipping: It is better to deliver in bulk in one go to a single hub and distribute based on domestic
shipping charges. This is called regionalization.
Product Return and Refund: Make sure that all product descriptions are up-to-date and
relevant. Also ensure that the products you deliver are procured from certified vendors.
Multiple Payment Options: Be open for all payment gateways, start entertaining e-Wallets,
prepaid cards etc. which will offer better cash flow and relieve customers from credit card problems.
Focus on Customer Service: Online users want fast response to their query. So start interacting
with them through 24X7 emails, calls, and chat assistance. Make your customers interact with you
through all possible means like social media marketing etc. Keep reminding them about deals and
promotions that you are offering and try to know what they think about them.

1.9 MYTHS OF E-COMMERCE

Starting a new business can be exciting and stressful at the same time, filled with long hours and
a lot of living on an extremely tight budget in hopes of getting your business up and running. There are
a lot of misconceptions about how the business world works, but we’re here to set the record straight
so you can successfully get your e-commerce business up and running.
Myth One: Setting up a business on the web is easy and inexpensive
While practically anyone with a computer and internet access can set up a website, most of them
offered freely by web hosting services, creating an on-line transactional e-commerce business required
months of back office work and investment in hardware and software.
Myth Two: Launching a website automatically means that customers will flock
onto your site
Setting up a website is not enough. Promotion is key in getting potential customers to check out
your site. There are millions of websites on the web and just like in a traditional store, you need to
market your site. The key to marketing your website is networking and building relationships with
customers, other sites, trade organisations, on-line directories, and social media sites so that people can
find you.
Myth Three: Making money on the web is easy
There are many “entrepreneurs” who are selling get rich quick schemes on the web. Making
money on the web is not easy except if you are selling “make a $100 000 a month”, schemes to
desperate people. Respect should be given to and lessons learned from those companies that have
invested time and resources to making e-commerce work for them and their customers, honestly.
Myth Four: Privacy is not an important issue on the web
The web allows companies to gain access to unbelievable amounts 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 providers. On line companies should
14 E-Commerce and Digital Marketing

therefore protect their customers 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.
Myth Five: The most important part of any e-commerce site is technology
While the technology for setting up the business is critical, the most important part is creating a
business model that offers customers value at a reasonable price while producing an acceptable return
for the business. Entrepreneurs that are successful in e-commerce know their companies inside out and
have been able to build their on-line business around this information. While you can hire people to
build your site, nothing will substitute for your intimate knowledge of your industry, your internal
systems, your competitors, your customers, your suppliers and how to make all of these things work
for you.
Myth Six: 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 customers’ needs, likes and dislikes. Your website must be appealing to the
customers that you want to attract. An e-commerce website should be created with your customers in
mind.

1.10 IMPACT OF E-COMMERCE ON BUSINESS

Selling through websites is the fastest growing method of trading worldwide. There are two main
forms of e-commerce:
● 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.
Improving Productivity
1. Reducing cost of fund
2. Reduction in the amount of labor
3. Making a larger positive contribution
4. Attesting to the real and potential improvements
5. Increasing competition
6. Distinguishing the products
7. Choice in consuming the products and service
8. Availability
9. Saving time and money
Cost Saving
Causes: Business-to-Business (B2B) e-commerce
Effects:
1. Saving time and labor
2. Affordability
Introduction to E-Commerce 15

Streamlining Business Process

1. E-commerce system
2. Implication of future e-commerce growth
Effects:
1. Focusing on the business consequences
2. Stability
3. Improving customer service
4. Policymaker
5. Forecaster
6. Trends in productivity
Trading Online
Trading online enables businesses to reach much wider audiences while cutting the costs of
traditional retailing methods. For example, an e-tailer does not have to spend so much on an expensive
High Street presence.
Although the outlay on developing a good website is substantial the potential benefits can be
enormous. One group of businesses that have been particularly successful as a result of the
development of the web are specialist suppliers of items such as paintings, photographs, confectionery,
and other items.

1.11 E-COMMERCE IN INDIA

The fast development of telecommunications technology in the past few decades is changing
many aspects of our lives, how we search for information, how we travel and not at least how we buy
products or services. Although classic shop-based retail is still preferred, e-commerce or electronic
commerce, namely the buying and selling of products and services exclusively through electronic
channels, is gaining ground. The most well-known form of e-commerce or electronic commerce is
online shopping, also known as business to consumer e-commerce (B2C), where private customers
can order various products which they then receive by courier or postal mail. Another category of
e-commerce focuses on transactions between companies, such as manufacturers and a wholesalers or
wholesalers and retailers and is called business to business e-commerce (B2B). The third category of
e-commerce involves transactions from consumer to consumer (C2C), as in the example of eBay or
other similar websites.
With an expected 33 percent of the global market in 2015 and over 37 percent in 2018, the Asia
Pacific region is becoming the leader of the e-commerce industry. In fact, China, due to its
unprecedented economic boom, is not only driving the region’s leadership, but is also set to outdo the
United States as the single country with the largest e-commerce market in the world. Another
emerging Asian market in terms of e-commerce is India. Recent statistics show that retail e-commerce
sales in India have grown tremendously, from 2.3 billion U.S. dollars in 2012 to an estimated 17.5
billion U.S. dollars, representing an almost eight-fold growth. As of 2015, the retail e-commerce sales
as a percent of total retail sales in India are set to account for 0.9 percent of all retail sales in India, but
this figure is also expected to grow in the near future, reaching 1.4 percent in 2018.
By 2016 a number of 653 million people in the Asia Pacific region are expected to buy goods and
services online, a figure which translates into over 48 percent of internet users in the Asia Pacific
region purchasing products or services online. Some of the most popular product categories among
16 E-Commerce and Digital Marketing

online shoppers in the region include airline tickets and reservations, baby supplies, cosmetics,
clothing, accessories and shoes, as well as computer hardware and software. According to recent data,
the number of digital buyers in India alone is expected to reach 41 million by 2016, representing some
27 percent of the total number of internet users in the country.

1.12 TRENDS IN E-COMMERCE IN VARIOUS SECTORS

The internet is changing the way people do business.
1.12.1 Retail
E-commerce has grown at very rapid pace in last few years in India. Growth in internet & mobile
phone penetration has changed the retail environment. Shopping habits of customers, customer
expectations and customer preferences are also changing with change in retail environment. Large
variety of choices, easy comparison, convenience for purchase, and doorstep delivery are major
driving force for customers using e-commerce platform. Above it, ‘Cash-on-delivery’ and convenient
return process has increased the customer trust on e-commerce. But, e-commerce and e-tailing in India
has still a long way to go. The way the business is moving and the increasing thrust on e-commerce is
re-proving the country’s consumption story. E-commerce or e-tailing is the recent paradigm that
retailers have had to also confront and already 75 per cent of retailers have adopted e-commerce in
some form and globally, retailing has already graduated to a multi-channel. Retailers have been able to
help consumers feel more comfortable shopping online.
1.12.2 Banking
Online Banking is becoming an important aspect of worldwide commerce. Online Banking is
also known as e-banking, cyber banking, virtual banking, net banking, and internet banking. Online
banking includes various banking activities conducted from home business, instead of at a physical
bank location. Customer relationship management worked as a tool increased use of e-commerce
makes CRM. Online banking is based on internet or web-based interaction to create a high volatile
relationship in the banking sector. Questions are related to online banking in which given options are
Satisfied, Unsatisfied, Neutral, Yes, No. After analysis and comparison of traditional banking of
online banking, it is revealed that it is quite difficult, if not impossible, to suggest that which online
banking is best. Online banking provides the flexibility, efficiency of work, provide the better security
of net banking. The future of web-based e-banking in developed areas appears bright but consumers
and merchants in developing countries face in number of barriers to successful e-banking, including
less reliable telecommunications infrastructure and power supplies, less access to online payment
mechanisms and relatively high costs for personal computers and Internet access.
1.12.3 Tourism
New technologies are providing different channels for marketing and management that improve
the capabilities of society. And computers are providing faster and more reliable processing with
lower cost continually.
The e-commerce direction is a benefit to all parties over the world in most industries since it is
cost savings.
The Internet is not the full solution to success in the Hospitality and Tourism industry. However,
the Internet is the “overall business answer” across industries. The raise in travellers over the time has
also driven IT demand on offering high quality products at low costs to the customers. The success of
the Hospitality and Tourism industry will depend upon the abilities to identify and answer quickly to
current and potential customer needs. IT is playing a major role in “servicing” customers. This
Introduction to E-Commerce 17

challenges Hospitality and Tourism organizations because efficiency in both external and internal
interactions are required. The setup cost of IT may be quite expensive in an economic sense, and the
tremendous cost savings in the long-term will depend upon the efficiency of the IT during its crucial
implementation stages. In some way, Hotel could reduce the cost such as the commissions paid to
travel agencies as suppliers will be straightly linked to customers.
1.12.4 Government
E-government refers to the application of e-commerce technologies to government and public
services. In the same way that e-business can be understood as transactions with customers (citizens),
suppliers and internal communications, e-government covers a similar range of applications:
Citizens – facilities for dissemination of information and use of online services at local and national
levels.
1.12.5 Education
Education sector has always been considered to be one of the biggest gainers from the Internet.
India’s education market is growing at a rapid pace. According to India Ratings and Research Pvt. Ltd.
E-learning is one of the fastest growing industries and the large players want a share of that pie.
E-education brings customized content as per learning style, collaborative learning, self-paced
learning, saves on time and definitely is cost-effective. One of the best advantages of e-learning/
education is reducing dependence on traditional system of learning, and allow teachers and students
open up to the global knowledge. Online education is quickly becoming a major phenomenon around
the world. The ease, access, convenience and lower cost it offers appeal to people just about
everywhere.

1.13 MOBILE COMMERCE

Mobile Commerce is also known as M-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.
M-Commerce is the ability to conduct Commerce using a mobile device such as:
1. Mobile Phone
2. Personal Digital Assistant
3. Smart Phone
Mobile Commerce from the Customer’s Point of View
● The customer wants to access information, goods and services any time and in any place on
his mobile device.
● Customer can use his mobile device to purchase tickets for events or public transport, pay
for parking, download content and even order books and CDs.
● Customer should be offered appropriate payment methods.
● The future development of the mobile telecommunication sector is heading more and more
towards value-added services.
● Analysts forecast that soon half of mobile operator revenue will be earned through mobile
Commerce.
● Innovative service scenarios will be needed that meet the customer ‘s expectations and
business models that satisfy all partners involved.
18 E-Commerce and Digital Marketing

Services and Applications

● Mobile ticketing
● Mobile Money Transfer
● Content purchase and delivery
● Information services
● Mobile banking
● Mobile Browsing
● Mobile Purchase
● Mobile marketing and advertising
Mobile Ticketing
Mobile Ticketing is the process where the customers can order, pay for, obtain and validate
tickets from any location and at any time using Mobile phones.
Tickets can be booked and cancelled on the mobile device with the help of simple application
downloads.
Mobile Tickets can be purchased in a variety of ways including online, via text messaging or in a
secure mobile application.
Mobile Ticketing is used in many applications like:
1. Airline ticketing
2. Cinema ticketing
3. Railway & Bus ticketing
4. Concert/Event ticketing
5. Consumer voucher distribution
Mobile Money Transfer
Mobile Money Transfer refers to payment services which are performed by using a mobile phone.
By using this service, we can transfer money from one person to other by using a mobile phone.
Ex: ICICI bank has started IMPS - Interbank Mobile Payment Service. It is an interbank
electronic instant mobile money transfer service through mobile phones.
Content Purchase and Delivery
Mobile content purchase and delivery mainly consists of the sale of ring-tones, wallpapers, and
games for mobile phones. The convergence of mobile phones, portable audio players, and video
players into a single device is increasing the purchase and delivery of full-length music tracks and
video.
Information Services
A wide variety of information services can be delivered to mobile phone users in much the same
way as it is delivered to PCs.
These services include:
● News
● Stock quotes
● Sports scores
● Traffic reporting
Introduction to E-Commerce 19

Mobile Banking
Banks and other financial institutions use mobile Commerce to allow their customers to access
account information and make transactions, such as purchasing stocks, remitting money, receive
notifications, transfer money to other banks.
Mobile Purchase
Some merchants provide mobile websites that are customized for the smaller screen and limited
user interface of a mobile device.
Mobile Marketing and Advertising
Mobile marketing is highly responsive sort of marketing campaign, especially from brands’
experience point of view.
Corporations are now using M-commerce to expand everything from services to marketing and
advertisement.
Types of M-marketing and Advertising
● Mobile Web Poster
● SMS advertising
● MMS advertising
● Mobile games
● Mobile videos
● Audio Advertisements

1.14 BENEFITS OF M-COMMERCE

Mobile commerce is no more a future trend, rather a revolution, which is changing the way
e-commerce businesses approach customers. Mobile Commerce, or in short Mcommerce, can be
described as, ‘business transactions that are made via mobile devices’ or optimizing your online
business for mobile phones as an application. We have come up with such an explanatory line in order
to clearly state that Mobile commerce is not confined to e-commerce industry alone.

Personal Touch – Push Notifications

Notifications are the delivery systems, which bridge

the gap between a business and its potential customers.
They are more prompt in delivering offers and reaching
audience better as mobile devices are often carried along
almost wherever a person goes.
20 E-Commerce and Digital Marketing

Instant Contact – One-step Calling

Instant contact option helps customers reach a

business instantly with ease. Live chat assistance, one
click calling feature and toll-free help desk benefit
customers by improving accessibility towards business as
a when they like. Triggering mails and awaiting response
is no more a scenario in terms of customer handling as
even a slightest of delays will encourage a customer to
change his/her preference.

Complete Access

Providing customers, a complete access to a

business is a key to its success. A little bit of hiccup in
accessing information or a delayed response from a
business owner will result in a customer jumping over to
thousands of other options available.
One of the most keenly focused areas in mobile
commerce is offering multiple channels of
communication to a customer to solve their problems in
real time.
While using mobile devices, irrespective of the
operating system they belong to (iOS, Android, Windows
etc.), a customer does more of research and engages more.
A mobile application is the only gateway, which lets
customers to access information quickly, get instant
responses for queries, offer searching convenience and
much more.
Everything they need, right from shopping convenience to support service can be provided
precisely and in a compact way.
Live chat assistance, demo videos, detailed pricing, discount information, out of stock
notification, service details and everything else customers find handy while shopping, can be
integrated into a m-commerce application and fed to their fingertips.
Introduction to E-Commerce 21

Location Tracking – The Must-have Advantage to Triple Conversions

Location based notification pushes help local businesses,

or businesses in general, to offer personalized discounts
targeting procurers who purchase with a certain regularity. A
study by Responses has that notifications are considered to be
more personal and enjoy 50% higher open rates and 2x
higher conversion rates compared to marketing emails.
Location tracking can also help in providing assistance
for customers in navigating directions or helping them find
the nearest transportation service, etc.

Payments

Security and convenience is mandatory for business in

all mediums, be it web or mobile. Coming to the “what’s
hot?” part of payments there are a few things which can be
discussed. First comes the in-app payment.
In-app payment allows a customer to pay within an
application to avail more personalized or premium offerings
from the service provider or to purchase add-ons of an app.

Promotional Mediums – Omni-channel Experience is the New Trend

E-commerce stores or businesses powered via mobile

commerce have plethora of opportunities to promote their
businesses. Apart from notification pushes, businesses offer
discount coupons, daily deals, special prices for registered
customers, free shipping and much more to improve user
registration and earn new customers. Thus a business’s
marketing gets viral and customers start to pour in heaps.

1.15 TRENDS IN M-COMMERCE

1. Physical and online worlds will continue to converge: Retailers are now offering
numerous options as part of their Omni channel services, including curb side pickup, online
reservation services, same-day delivery and beacon-enabled features.
22 E-Commerce and Digital Marketing

2. Social commerce will remain on demand, but will buy buttons deliver: As much as 60%
of consumers’ time spent on social media is on mobile, making the integration of both
channels a vital part of retailers’ plans headed further into 2016. However, it appears buy
buttons are still struggling to break out as a potential by product of this integration.
3. The mobile web will continue to outpace apps: While 85% of time is spent in mobile apps,
only 20% to 30% of a retailer’s mobile sales come from the app, according to Forrester
Research. In fact, Forrester indicated that 56% of retailers said mobile apps would not play a
major part in their mobile strategy.
4. Consumer expectations will drive retailers to focus on mobile moments: In 2016,
consumers’ expectations of the mobile retail experience are higher than ever:
● 64% of smartphone users expect a site to load in four seconds or less;
● 40% have turned to a competitor’s site for a better mobile experience; and 25% of
online shoppers abandon the cart if a site’s navigation is too complex.
5. Loyalty will eclipse convenience in driving mobile payments: Although mobile wallets
such as Apple Pay, Android Pay and Walmart Pay were released within the past 18 months,
the wallets have been slow to take off in general.
As of now, the technology hasn’t offered much incremental convenience that would
persuade shoppers to use them during the payments process.
With that said, eMarketer expects mobile payments to grow 210% in 2016.
6. IoT still chasing full potential, but wearables poised for growth: Gartner expects that in
2016, 6.4 billion “things” will be connected to the Internet, marking a 30% increase from
2015. The IDC forecasts worldwide spending on the IoT will reach $1.32 trillion by 2019.
7. The growth of mobile will force brands to optimize mobile growth: With mobile
commerce expected to grow at a rate 300% faster than traditional e-Commerce, according to
discount, more brands are likely to focus on implementing a seamless checkout experience
in the coming year.

1.16 SUMMARY
● E–Commerce is a new way of conducting, managing and executing business transactions
using computer and tele-communication networks.
● Communication, process management, service management and transaction capabilities are
the four functions of E-Commerce.
● E–Commerce is divided into four main categories viz., B2B – Business to Business, B2C –
Business to Consumer, C2B – Consumer to Business and C2C – Consumer to Consumer.
● Although m-commerce is an emerging field in its early stages there are a number of ideas of
what is going to constitute the key success factors for the actors in the global m-commerce
arena.

1.17 QUESTIONS
1. What is E-commerce?
2. What are the advantages of E-commerce?
3. What all are E-commerce environment factors?
4. Explain myths of E-commerce.
5. Explain features of E-commerce.
6. Explain Retail, Banking, Tourism, Government and Education.
7. What is M-commerce?
8. Explain the benefits of M-commerce?