UNIT-02 2. E-Tailer: An e-tailer sells goods directly to consumers via an online storefront.

2. E-Tailer: An e-tailer sells goods directly to consumers via an online storefront. It manages its own inventory and order  USES OF DATA MINNING IN E-COMMERCE:-
 E-COMMERCE BUSINESS MODELS:- fulfillment processes. E-tailers compete on product selection, pricing, and delivery speed. Example: Amazon started as an 1. Customer Segmentation: They group shoppers into similar sets—like “frequent buyers” or “bargain hunters”—so they
 Key Ingredients: online bookstore and grew into the world’s largest e-tailer for many product categories. can send each group the right offers at the right time.
1. Value Proposition: A value proposition explains why customers should choose your e-commerce site over others by 3. Content Provider: Content providers create and distribute digital information such as articles, videos, music, or games. 2. Personalized Recommendations: By studying what each person clicks on and buys, stores suggest items you’re likely to
highlighting the unique benefits you offer. It could be faster delivery, lower prices, or an exclusive product range. A clear They may charge subscriptions or rely on advertising to monetize. High-quality content draws consistent traffic. Example: want next, making shopping faster and more fun.
value proposition helps attract and retain shoppers. Example: Netflix promises unlimited, on-demand streaming of movies Netflix produces original series and films, charging subscribers to stream its content library. 3. Market Basket Analysis: They look at what products people buy together—like phones and cases—so they can bundle
and shows for a flat monthly fee. 4. Transaction Broker: This model processes online transactions for customers, like booking travel or making payments, them or place them near each other online for easy cross-selling.
2. Revenue Model: The revenue model describes how your business will make money online, whether through ads, without owning the service itself. It charges a fee for each completed transaction. Efficiency and trust are crucial. Example: 4. Fraud Detection: Data mining spots unusual buying patterns—such as very large orders or strange addresses—to catch
subscriptions, sales, or commissions. It determines pricing, customer billing, and expected income streams. A strong revenue Expedia lets customers book flights and hotels, earning a commission on each reservation. fraud before it costs the store money.
model aligns with your value proposition and market needs. Example: Spotify uses a subscription revenue model where 5. Market Creator: Market creators build platforms that connect buyers and sellers, but do not own the products themselves. 5. Dynamic Pricing: Stores adjust prices in real time based on demand, stock levels, and competitor prices to stay competitive
users pay monthly for ad-free music streaming. They facilitate transactions and usually take a commission. Network effects help them grow rapidly. Example: eBay allows and boost sales.
a. Advertising Revenue Model: This model earns money by displaying ads from third parties on your website or app. individuals and businesses to list items for auction or sale and charges final-value fees. 6. Inventory Forecasting: By predicting which items will sell quickly, businesses keep the right stock on hand and avoid
Advertisers pay based on impressions, clicks, or conversions. It’s common for content-rich sites that draw high visitor traffic. 6. Service Provider: Service providers deliver online services—such as cloud storage, web hosting, or payment processing— running out or holding too much inventory.
Example: Google Search is free for users but shows sponsored links and display ads to generate income. to businesses or consumers. They often operate on a subscription or pay-as-you-go model. Reliability and security are key 7. Customer Lifetime Value Prediction: They estimate how much money a shopper will spend over time, so they know
b. Subscription Revenue Model: Customers pay a recurring fee (weekly, monthly, or yearly) to access products or services. selling points. Example: Dropbox offers cloud file storage and synchronization services for individuals and teams. how much to invest in marketing to keep that customer happy.
This ensures predictable income and often encourages long-term customer loyalty. It works best when content or service 7. Community Provider: Community providers create online spaces where users can interact, share knowledge, or discuss 8. Churn Prediction: Data mining finds signs that a customer might stop buying—so the store can offer deals or reminders
value is continuously refreshed. Example: Adobe Creative Cloud charges a monthly subscription for access to its suite of topics of interest. Monetization comes from advertising, sponsorships, or premium features. Engagement and moderation to win them back before they go elsewhere.
design tools. maintain quality. Example: Reddit hosts user-generated forums and earns money through promoted posts and premium
c. Transaction Fee Revenue Model: The platform charges a fee or commission on each transaction processed. Fees can be memberships.
a flat rate or a percentage of the sale. It’s widely used by marketplaces and payment processors. Example: PayPal deducts a  B2B Business Models:
percentage fee from each payment it processes on behalf of sellers. I. Net Marketplaces-
d. Sales Revenue Model: This straightforward model sells goods or digital products directly to customers. Revenue comes 1. E-Distributor: E-distributors stock goods from multiple manufacturers and sell them online to businesses. They combine
from the markup between wholesale cost and retail price. It suits businesses that have their own inventory or digital offerings. wide product selection, volume discounts, and efficient logistics. This reduces procurement complexity for buyers.
Example: Apple’s online store sells iPhones and accessories at set retail prices. Example: Grainger offers industrial and safety supplies online to maintenance and repair professionals.
e. Affiliate Revenue Model: You earn commissions by promoting other companies’ products and linking customers to their 2. E-Procurement: E-procurement platforms automate a company’s purchasing processes, from requisition to payment.
sites. Income depends on the volume and value of referred sales. It allows you to monetize traffic without holding inventory. They integrate with suppliers’ systems to streamline orders and approvals. Cost controls and compliance are key benefits.
Example: A tech blog might review laptops and earn a percentage when readers buy via its affiliate links. Example: SAP Ariba helps enterprises manage supplier catalogs and purchase orders electronically.
3. Market Opportunity: Market opportunity assesses the size, growth rate, and unmet needs of your target audience. It helps 3. Exchanges: Online exchanges bring multiple buyers and sellers together to trade commodities or standardized goods.
determine if there’s enough demand to support your business. Research tools include surveys, industry reports, and They match offers in real time and often publish market prices. Transparency and liquidity attract participants.
competitor analysis. Example: Before launching its online grocery service, Instacart evaluated the rising demand for home Example: Alibaba’s wholesale marketplace links global buyers with Chinese manufacturers for bulk purchases.
delivery in urban areas. 4. Industry Consortia: Industry consortia are jointly owned marketplaces set up by a group of companies within one sector.
4. Competitive Environment: This examines who else is selling similar products or services and how they position They share infrastructure and standards to reduce costs and improve collaboration. Governance is managed by the member
themselves. Understanding competitors’ strengths and weaknesses helps you find gaps in the market. It guides decisions on firms. Example: Covisint, founded by auto giants like Ford and General Motors, provided a shared procurement network for
pricing, features, and branding. Example: When Airbnb entered the market, it analyzed hotel rates and traveler reviews to the automotive industry.
offer a cheaper, more personal stay option. II. Private Industrial Networks-
5. Competitive Advantage: Competitive advantage is what you do better than rivals—such as unique technology, exclusive 1. Single-Firm Networks: A single-firm network is controlled by one large company and connects it with its suppliers and
partnerships, or superior service. It should be hard for competitors to copy. This advantage becomes a core part of your distributors online. It optimizes workflows like ordering, forecasting, and inventory management. Confidentiality and tailored
marketing message. Example: Tesla’s competitive edge comes from its advanced battery technology and nationwide processes are advantages. Example: Dell’s direct-to-customer model links Dell’s manufacturing system with suppliers for
Supercharger network. just-in-time ordering.
6. Market Strategy: Your market strategy outlines how you will reach, attract, and convert customers through channels like 2. Industry-Wide Networks: Industry-wide networks are similar to private networks but span an entire sector, often
SEO, social media, email, or partnerships. It sets budgets, timelines, and key performance indicators. A clear strategy keeps supported by a neutral third party. They standardize data exchange and processes across many firms. This drives efficiency
your team aligned on growth goals. Example: Glossier grew its beauty brand by leveraging user-generated content and and reduces duplication. Example: AutoXchange, used by U.S. automotive suppliers, streamlines parts ordering and
Instagram influencers. invoicing across the industry.
7. Organizational Development: This covers the team structure, hiring plans, and company culture needed to support
growth. It defines roles, responsibilities, and processes for smooth operations. Strong organizational development ensures
you can scale without chaos. Example: Zappos built a customer-centric culture by empowering all employees to make return
and refund decisions.
8. Management Team: The management team brings together leaders with experience in areas like marketing, technology,
finance, and operations. Investors and partners look at their track record to gauge the venture’s potential. A balanced team
reduces execution risk. Example: The founders of Shopify combined backgrounds in software development and retail
entrepreneurship to build the platform.
 B2C Business Models:
1. Portal: A portal offers a broad range of content and services—news, email, search, and links to other sites—all from one
platform. It aims to be a starting point for users’ online activities. Revenue often comes from advertising and partnerships.
Example: Yahoo! provides news, email, and search in a single homepage portal.

UNIT-03  E-BANKING:-  LEGAL AND ETHICAL ISSUES: PRIVACY & INTELLECTUAL PROPERTY:-
 E-Marketing (digital marketing) uses Internet-based channels to market products and services. It involves planning and E-banking (Internet banking) lets customers conduct financial transactions over the web or mobile apps. Through a bank’s  Privacy: Online businesses collect personal data (names, addresses, payment info). Ethically and legally, they must protect
executing the conception, pricing, promotion and distribution of products online. Key features include 24×7 availability, website or app, users can check balances, view statements, transfer funds, pay bills, and apply for loans from anywhere. It is this data and respect user privacy. Laws like GDPR (Europe) and India’s IT Act/Privacy Rules require consent before
global reach, and ease of price/product comparison. Customers enjoy shopping anytime from home, and businesses save known as virtual or home banking. E-banking reduces the bank’s need for physical branches (saving costs) and gives using data and mandate data security. Under India’s IT Act, violating user privacy (e.g. publishing private images) is an
on distribution costs. For example, Amazon uses e-marketing to display products online, send personalized emails, and customers 24/7 access. For instance, HDFC NetBanking and SBI’s YONO app offer these services. Key features include: offense. Companies use privacy policies, data encryption and limited data retention to comply.
offer discounts, reaching customers worldwide. E-marketing is important because it expands market reach and provides  Account Access: Check balances, recent transactions instantly.  Intellectual Property (IP): Digital content (images, text, software) on e-commerce sites is protected by copyright,
real-time data on customer behavior.  Funds Transfer: Send money between your accounts or to other accounts (NEFT/IMPS/RTGS). trademark, and patent laws. Platforms must avoid selling counterfeit goods or pirated media. The IT Act explicitly states
 Definition: E-marketing is the use of digital networks (Internet, Web) to market goods/services.  Bill Payments & Recharge: Pay utility bills, recharge mobile/internet. it does not override other laws like the Copyright Act, so copyright/trademark law still applies online. For instance, an
 Advantages: Lower distribution cost, convenience (shoppers can order 24/7), targeted ads, easy tracking of campaign  Service Requests: Request cheque books, stop payments, or apply for new services online. online seller cannot upload pirated movie downloads or use a brand logo without permission. E-commerce sites often have
performance, rapid feedback from customers. takedown policies to remove infringing listings to respect IP rights.
Example: Amazon’s website and email campaigns, or Paytm’s online wallet promotions, illustrate e-marketing in action.  ONLINE PAYMENT MECHANISM:- Ethically, companies should be transparent about data use (e.g. not selling personal data) and respect copyrights/trademarks.
When a customer pays online, the payment mechanism involves several steps and entities to securely transfer money: Legal compliance involves drafting privacy policies, using secure data storage, and ensuring all products/services sold have
 Challenges of Traditional Marketing & E-Marketing 1. Customer Order: The buyer selects a product and proceeds to checkout on the merchant’s website. proper IP rights.
 Traditional Marketing Challenges: High cost (print ads, billboards, TV), limited reach (geographical constraints), one- 2. Payment Gateway: The website sends payment data to a payment gateway, a secure service that encrypts the details.
way communication (no instant feedback), difficulty in tracking ROI. E.g., a newspaper ad reaches only local audience The gateway acts as an interface between the merchant and the bank.  CYBER LAWS – INFORMATION TECHNOLOGY ACT 2000 (INDIA):-
and one cannot measure exactly who saw it or bought because of it. 3. Authorization: The gateway forwards the encrypted transaction to the acquiring bank (merchant’s bank) or card network India’s IT Act 2000 provides the legal framework for electronic commerce and cyber activity. Key provisions include:
 E-Marketing Challenges: Requires tech infrastructure and expertise, security/privacy concerns (customers worry about (Visa/Mastercard). The issuing bank (customer’s bank) checks funds and either approves or declines the transaction.  Legal Recognition of E-Documents: Electronic contracts and records are recognized as valid. The Act grants legal status
data safety), digital divide (not all customers have Internet access), and intense competition. Ads can be ignored (e.g. 4. Confirmation: Approval is sent back through the gateway to the merchant and customer. The gateway may use SSL/TLS to digital signatures, treating them as equivalent to handwritten signatures. This allows e-transactions (like e-tenders or e-
banner blindness, email spam). Regulations (like GDPR) add complexity. Also, trust must be built online since there’s no encryption and secure certificates to protect the data during transfer. filing taxes) to be legally binding.
face-to-face contact. 5. Settlement: Later (often in a “batch” daily), funds are actually transferred from the customer’s account to the merchant’s  Digital Signatures: The Act establishes Certifying Authorities to issue digital signature certificates. A valid digital
account. signature ensures the authenticity and integrity of online documents.
 TOOLS FOR E-MARKETING:-  Cyber Offenses: The Act defines various offenses: hacking (Sec 66), identity theft/fraud (Sec 66C/D), privacy violations
1. SEO (Search Engine Optimization): Improving a website’s ranking on search engines (Google, Bing) so customers find  PAYMENT GATEWAYS:- (Sec 66E), damage to computer systems (Sec 43), etc. It prescribes penalties (fines/imprisonment) for these offenses. For
it when searching. A payment gateway is a service that authorizes and processes online payments. Technically, it is a merchant service provided example, Sec 66 punishes computer hacking with up to 3 years jail and a fine.
2. SEM (Search Engine Marketing): Paid search ads (e.g. Google Ads) that appear above organic results. by an e-commerce application that routes credit card or direct payment information to banks. The gateway acts like a virtual  Intermediary Liability: Rules require online intermediaries (marketplaces, social media) to follow due diligence (content
3. Social Media Marketing: Ads and promotions on Facebook, Instagram, Twitter, LinkedIn. E.g., fashion brands run POS terminal: it securely captures payment data from the customer’s browser and transfers it to the acquiring bank or takedowns, data retention) and protect user data (Intermediary Guidelines 2011, 2021).
Instagram campaigns targeting youth. processor. It never handles money itself, but it encrypts and forwards transaction data. Examples of payment gateways in  Amendments: The Act was amended in 2008 to include new threats and IT intermediaries. For instance, Section 66A
4. Content Marketing: Creating useful content (blogs, videos, e-books) to attract customers (e.g. a HDFC Bank blog about India include PayU, Razorpay, Paytm Gateway, and CCAvenue. For instance, when you pay by card on a shopping site, the (offensive online content) was struck down in 2015 (Shreya Singhal case). The Act also introduced penal provisions for
savings tips). gateway checks your card details, contacts the issuing bank for approval, and returns the result to the merchant. The gateway cyber terrorism and pornography.
5. Email Marketing: Sending newsletters or offers via email (Mailchimp, Constant Contact). For example, an online retailer ensures secure, fast communication so that transactions complete within seconds.
emails discount coupons to subscribers.  OFFENSES UNDER IT ACT 2000:-
6. Display Advertising: Banner ads and video ads on websites or streaming platforms.  RISK MANAGEMENT OPTIONS FOR E-PAYMENT SYSTEMS:- Some major offenses specified by the IT Act (with penalties) are:
7. Analytics & CRM Tools: Google Analytics (website traffic analysis), CRM software (like Salesforce) to track customer E-payment systems face risks like fraud, hacking, and data breaches. To manage these risks, businesses use several strategies:  Unauthorized Access/Damage (Sec 43): Accessing or damaging computer systems without permission. Penalty is
data and tailor campaigns. 1. Encryption & Tokenization: All payment data (card numbers, account info) is encrypted during transfer. Tokenization compensation for the damage.
replaces sensitive data with random tokens, so intercepted data is useless.  Hacking (Sec 66): Intentional hacking or data theft. Punishable by up to 3 years imprisonment or ₹5 lakh fine (or both).
 MARKETING ISSUES IN E-MARKETING:- 2. Strong Authentication: Multi-factor authentication (OTP, 3D Secure, biometrics) helps verify the customer’s identity  Fraud & Identity Theft (Secs 66C, 66D): Using another’s digital signature, password or digital certificate fraudulently.
1. Building Trust: No face-to-face contact means firms must work harder to reassure customers (e.g., clear policies, before approving a payment. Stripe recommends strict access management so only authorized systems/processes can Up to 3 years jail or ₹1 lakh fine.
certifications, customer reviews). handle payment data.  Privacy Violation (Sec 66E): Capturing or transmitting someone’s private images without consent. Up to 3 years jail or
2. Privacy Concerns: Collecting data is powerful for personalization but may upset users. Marketers must follow data 3. PCI DSS Compliance: Adopting industry standards (Payment Card Industry Data Security Standard) ensures secure ₹2 lakh fine.
protection rules (like GDPR) and maintain transparency about data use. handling of card data.  Cyber Terrorism (Sec 66F): Acts threatening India’s sovereignty/integrity through computers. Punishable by life
3. Digital Noise: The Internet has huge ad clutter. Capturing attention is tough; e-marketers combat this with creative content 4. Fraud Detection Systems: Using machine learning and real-time monitoring to flag unusual patterns (large transactions, imprisonment.
and targeted ads. multiple rapid purchases) can stop fraud early.  Obscene Content (Sec 67): Publishing obscene material electronically. Up to 5 years jail or ₹10 lakh fine.
4. Ad Fatigue and Spam: Excess emails or banner ads can lead consumers to ignore marketing. Balancing frequency and 5. Regular Audits and Updates: Keeping software updated (patch vulnerabilities), conducting security audits and Note: Many of these sections carry both imprisonment and fines. Courts decide the exact penalty based on case specifics.
relevance is a challenge. penetration tests. The Act also empowers authorities to investigate and adjudicate these offenses.
5. Channel Integration: Maintaining a consistent brand message across many online channels (website, social media, apps) 6. Insurance/Chargeback Policies: Businesses often insure against fraud losses or enforce return policies to mitigate impact
can be complex. of chargebacks.  E-COMMERCE GOVERNANCE:-
6. Mobile Optimization: With many buyers on smartphones, websites and ads must be mobile-friendly. For example, many online stores use TLS/SSL certificates (PKI) and certified gateways to ensure data integrity. Together, E-commerce governance refers to the rules, policies and frameworks that regulate online trade. It operates at both national
these options (encryption, authentication, monitoring) form an effective risk management strategy. and international levels:
 AREAS OF E-FINANCING:-  International Frameworks: Bodies like the World Trade Organization (WTO) and United Nations have addressed e-
1. Internet Banking: Online management of bank accounts (viewing balances, fund transfers). commerce. For example, in 1998 WTO members adopted a Declaration on Global Electronic Commerce, launching a
2. Online Payments: Using credit/debit cards or digital wallets for purchases. work program to examine trade issues in digital commerce. This includes cross-border data flow, digital services, and e-
3. Mobile Payments & Wallets: Apps like Paytm, Google Pay, Apple Pay let users pay via smartphone (UPI transactions, commerce tariffs. UNCITRAL (a UN body) also provides model laws on electronic commerce and digital signatures.
QR-code payments).  National Policies: Governments create policies to protect consumers and data. In India, the draft National E-commerce
4. Online Trading: Buying/selling stocks, mutual funds or crypto through platforms like Zerodha or Binance. Policy (pending) focuses on data as a national asset, requiring data localization and privacy safeguards. It aims to
5. Online Insurance/Payments of Premiums: Buying insurance or paying bills via insurer websites or apps. strengthen consumer protection and data security. Other examples: GDPR in EU governs data privacy, and the U.S. FTC
6. Real-Time Payments: Systems like IMPS or UPI enable instant transfers 24×7. enforces online consumer protection rules.
 UNIT-04  EMERGING TRENDS IN E-COMMERCE:- UNIT-01
 E-COMMERCE APPLICATIONS:- Modern e-commerce is evolving quickly. New technologies and consumer habits are creating several key trends:  GOALS OF E-COMMERCE:-
E-commerce has transformed how businesses operate across industries. It uses the internet to sell goods and services, making 1. Artificial Intelligence & Personalization: AI is a game-changer for online shopping. E-commerce sites use AI algorithms 1. Reach More Customers: Sell to people everywhere, not just in a local area.
physical stores and long lines a thing of the past. In fact, “from groceries to flights, almost everything is just a few clicks to analyze customer data and recommend products tailored to each shopper. For example, an online store learns your 2. Increase Sales: Make it easier for more people to buy your products or services.
away” in the digital marketplace. In India, this means online shopping is common in sectors like retail, finance, travel, food preferences and shows you the items you’re most likely to buy. AI also powers 24×7 chatbots and virtual assistants that 3. Lower Costs: Save money by reducing expenses like store rent and physical staffing.
delivery, and more. answer customer queries instantly. These tools improve the shopping experience and boost sales. On the operations side, 4. Improve Convenience: Allow customers to shop anytime from anywhere.
1. Retail (B2C): Consumers buy products online via websites or apps. India’s leading e-commerce firms – Amazon India, AI optimizes inventory and logistics. By analyzing past sales and external factors (like weather or festivals), AI helps 5. Streamline Operations: Use online systems to manage inventory, orders, and payments faster.
Flipkart and Myntra – sell everything from electronics and fashion to groceries. Reliance Retail is also moving into online forecast demand and streamline deliveries, reducing stockouts and delays. In short, AI-driven personalization and 6. Gather Customer Insights: Collect data on what customers like to improve products and marketing.
grocery through JioMart, blending its vast network of brick-and-mortar stores with e-commerce. automation are making e-commerce more efficient and customer-friendly.
2. Consumer-to-Consumer (C2C): Individuals sell to each other through online marketplaces. For example, platforms like 2. Omni-Channel Retail: Traditional retailers are combining online and offline channels. For instance, Reliance Retail uses  FUNCTIONS OF E-COMMERCE:-
OLX and Quikr let users buy and sell used goods (mobiles, furniture, vehicles) directly. its physical stores (Reliance Fresh, Reliance Digital) together with its online app JioMart so customers can shop 1. Online Buying and Selling: It lets businesses and customers buy and sell products or services through a website or mobile
3. Business-to-Business (B2B): Companies trade online with other businesses. Indian platforms such as IndiaMART and seamlessly. This omnichannel approach lets shoppers order online and pick up in-store (or vice versa), and it expands app.
Udaan provide directories and marketplaces where manufacturers, wholesalers and retailers order supplies and raw market reach. Industry experts note that India’s retailers are focusing on “omnichannel strategies – combining online and 2. Payment Processing: It securely handles digital payments using credit cards, digital wallets, or bank transfers.
materials. This streamlines the supply chain and bulk ordering. offline experiences” to meet customer expectations. 3. Order Management: It tracks orders—from placement to delivery—and helps manage inventory.
4. Banking & Financial Services: Online banking, investments and insurance are e-commerce applications. Customers use 3. Mobile Payments & FinTech: Digital payment solutions continue to drive growth. UPI, mobile wallets and QR-code 4. Marketing and Promotion: It uses digital channels like social media, email, and search engines to advertise products and
bank websites or apps to do transactions. Mobile wallets and UPI apps (e.g. Paytm, Google Pay) let users pay bills or payments make checkout fast and cashless. Government and private apps (like Paytm, PhonePe, Google Pay) have reduced reach customers.
transfer money instantly. Digital payments are widely used in India; for instance, UPI (Unified Payments Interface) has transaction friction. The impact is enormous: for example, UPI volume alone crossed 10 billion transactions in Aug 2023. 5. Customer Service and Support: It provides help through chatbots, emails, or phone support to answer customer questions
seen explosive growth. Innovations such as “Buy Now, Pay Later” (BNPL), micro-loans and blockchain are also emerging to give customers and solve issues.
5. Travel & Tourism: Booking flights, trains and hotels is mostly done online. Companies like MakeMyTrip, Yatra and more payment flexibility.  ADVANTAGES OF E-COMMERCE:-
IRCTC (for train tickets) provide websites/apps for travelers to reserve tickets, compare fares, and even take virtual tours 4. Social Commerce & Live Commerce: Shopping through social media is growing. Platforms like Instagram, Facebook 1. Convenience: You can shop online anytime and from anywhere without needing to visit a store.
of hotels. This saves time and gives instant confirmations. and even WhatsApp Business let sellers showcase products directly to users. Small businesses and influencers often take 2. Global Reach: Businesses can sell products to customers all over the world.
6. Food & Grocery Delivery: Online ordering of food and groceries is a major e-commerce trend. Apps like Zomato and orders via these apps. Likewise, live-stream shopping (where sellers demonstrate products in real time) is a new trend, 3. Lower Costs: E-commerce usually has lower operating costs because you don’t need to pay for a physical store, utilities,
Swiggy let users order restaurant meals or groceries to their doorstep. BigBasket, Grofers (Blinkit) and Amazon especially popular in some Asian markets. These blur the lines between social networking and e-commerce. and large staffs.
Pantry/Flipkart Supermart offer online grocery shopping with home delivery. 5. Voice and AR/VR Shopping: Voice-activated assistants (Alexa, Google Assistant) are beginning to allow voice shopping 4. Fast Transactions: Orders and payments are processed quickly using automated systems.
7. Education: E-commerce has entered learning through online courses. Platforms like BYJU’s, Unacademy or Coursera – e.g. a user says “order detergent” and it’s added to the cart. Augmented Reality (AR) apps let customers “try on” clothes 5. Better Use of Data: Companies can collect and use customer information to improve products and offer personalized
allow students to pay for and attend classes or tutorials via apps. Schools and coaching centers also use online portals to or see furniture in their home before buying. While still nascent, these technologies are beginning to shape the online deals.
sell courses and notes. shopping experience in India.
8. Entertainment & Media: Streaming services (Netflix, Disney+ Hotstar, Amazon Prime Video) are examples of 6. Quick Commerce: Faster delivery models are emerging. Companies like Swiggy (Instamart) and Zomato (Blinkit)  DISADVANTAGES OF E-COMMERCE:-
e-commerce for digital products. Users subscribe and pay online to watch movies or listen to music. Even online ticketing promise grocery and essentials delivery in minutes by using local dark stores. This “quick commerce” trend caters to 1. Security Risks: There is a risk of online fraud and hacking, so strong security measures are essential.
for movies or events (BookMyShow) is part of e-commerce. impulse purchases and perishable goods, challenging traditional e-tailers in some segments. 2. No Physical Inspection: You can’t see or touch products before buying, which might lead to dissatisfaction if the product
9. Healthcare: Telemedicine and online pharmacies are growing. Patients can pay doctors via apps like Practo or Netmeds, These trends show that e-commerce is becoming more tech-driven and customer-centric. Retailers who adopt AI, mobile is not as expected.
or order medicines through Pharmeasy. Insurance (PolicyBazaar) and health packages can also be bought online. payments, and new delivery models stay competitive, while consumers enjoy more convenience and choice. 3. Delivery Issues: Products have to be shipped, which can take time and sometimes cause delays.
4. Technical Problems: Websites may crash or have errors, disrupting the shopping experience.
 MOBILE COMMERCE (M-COMMERCE):- 5. High Competition: Since it’s easy to start an online business, there’s a lot of competition.
With smartphone adoption surging, mobile commerce (m-commerce) has become a major part of e-commerce. M-commerce 6. Return Hassles: Returning products can be more complicated and time-consuming than in a physical store.
simply means shopping via mobile devices (smartphones or tablets), usually through apps or mobile-optimized websites. In  SCOPE OF E-COMMERCE:-
India, m-commerce is booming: studies report that about half of all online sales now happen on mobile phones. This trend is 1. More Online Shopping: More people are using smartphones and the internet to shop, so e-commerce will keep growing.
driven by affordable smartphones and cheap mobile data (e.g. Reliance Jio’s network). Over 1.4 billion phone connections 2. Wide Use: It’s not just about buying clothes or gadgets—it’s also used for banking, travel bookings, education, and more.
in India mean e-tailers focus heavily on mobile users. --Key aspects of mobile commerce include: 3. Job Opportunities: As e-commerce grows, there will be more jobs in areas like digital marketing, IT, and logistics.
1. Apps & Wallets: Most e-commerce players offer mobile apps. Paytm, Google Pay and PhonePe are mobile wallet apps 4. Easy and Fast: New technologies (like faster online payments and smart apps) are making online shopping quicker and
that let users pay instantly via UPI/QR codes. Apps send push notifications for deals and let customers pay with one tap. more secure.
2. Anytime, Anywhere Access: Customers can browse and buy on the go. For example, someone can order taxi (Ola, Uber) 5. Global Reach: Even small businesses can now sell to customers all over the world without needing a physical store.
or book movie tickets via apps while commuting. Location-based services also allow offers based on where the user is.
3. Integration with FinTech: Mobile commerce is tightly linked with mobile banking. Users often link their bank or cards  TECHNICAL COMPONENTS OF E-COMMERCE:-
to apps. UPI-based payments (via BHIM app or others) have become standard; in Aug 2023 they reached over 10.5 billion 1. Internet and Network Infrastructure: High-speed internet (wired or wireless) connects customers and servers. Robust
transactions, reflecting how payments have shifted to mobile. networks (LAN, WAN, the Internet) carry data.
4. On-Demand Economy: Many on-demand services operate via mobile (food delivery, cab services, quick commerce). 2. Servers and Hosting: Web servers host the e-commerce site. Databases store product info, user accounts, and
Users place orders through apps, track delivery in real time, and pay via mobile channels. transactions. Cloud services (e.g. AWS, Azure) often provide scalable computing power and storage.
3. Website and Mobile App (Front-End): The user interface where customers browse products, place orders, and make
Aspect E-Commerce (Desktop/Web) Mobile Commerce (Smartphone/Apps) payments. Front-end technologies include HTML/CSS web pages and native or hybrid smartphone apps.
Access Desktop or laptop websites Mobile apps or mobile web 4. Shopping Cart Software: Lets customers add items, review orders, and proceed to checkout. It manages the list of
Convenience From home or office computers On-the-go anywhere via phone selected products.
Features Rich interfaces, larger screens Touch interface, camera (QR codes), GPS, voice 5. Payment Gateway: A secure online interface that processes payments (credit cards, UPI, e-wallets). It encrypts and
Payments Credit/debit cards, netbanking Mobile wallets (Paytm, GPay), UPI, NFC transmits payment details to banks. For example, Paytm, Razorpay, and BillDesk are popular gateways in India.
User Engagement Email marketing, browser cookies Push notifications, in-app messaging