E-COMMERCE

BY: SACHIT ANAND

 THE CONCEPT OF E-COMMERCE

• Electronic commerce (e-commerce) is a business platform which allows the interaction between buyers and
sellers over the internet – it operates on a digital business model where the major market segments are operated
in.
• The 4 major market segments include –
• 1. Business – Business (B2B): commercial transactions between businesses itself
• 2. Business – Consumer (B2C): the act of selling of a product directly to the consumer; there is no middleman
involved
• 3. Consumer – Consumer (C2C): customers interact with each other to either sell or purchase products; trading
between consumers
• 4. Consumer – Business (C2B): businesses purchase products from the consumer; there is no middleman
involved [opposite to the B2C model]
 BENEFITS OF E-COMMERCE

• International Opportunity – as a digital platform conducts the trade, it allows buyers and sellers
to access unique products from different geographical boundaries; allows buyers a larger
market and allows customers increased product choice.
• Enhanced Comfort – customers have the liberty to purchase products without travelling to a
specific physical store; it eliminates their travel time, and they benefit of receiving their
product at their preferred location.
• Product Comparison (Business Comparison) – as e-commerce allows for an increased variety
of similar products, customers are able to compare and navigate multiple options to further
decide which product suits them best according to their requirements.
 DRAWBACKS OF E-COMMERCE

• Shipping (Product) Inconsistency – when a trade is ultimately made on the digital

platform, there tends to be a high chance that either the product is damaged, or is
delivered at an unfavorable period.
• Customer Security – recently, cases of online credit card fraud and personal data breaches
have been alarming on online trading platforms; as a result, a small proportion of the
population favour shopping at physical stores.
• Site Crashes – a transaction between a buyer and a seller cannot take place if the online
platform is unable to load; forces customers to switch to an alternative site.
 REAL WORLD APPLICATION - TAOBAO

• Taobao is China’s largest digital platform, and its largest shopping destination
• Taobao is estimated to have approximately 2 billion product and service listings
• The Taobao platform allows for the trading of unique products in unique industry's, apart
from the traditional common day-to-day commodities
• Taobao is estimated to have approximately 800 million Chinese consumers
• Taobao has evolved it’s business model to incorporate diversifying changes in China’s
economy – for example, consumers can order food, book flight tickets, and watch
livestreams apart from the traditional purchasing of products