Professional Documents
Culture Documents
E-Commerce and Digital Marketing: UNIT-1
E-Commerce and Digital Marketing: UNIT-1
MARKETING
UNIT-1
Introduction of E-Commerce
• The term e-commerce was coined back
in the 1960s, with the rise of electronic
commerce – the buying and selling of
goods through the transmission of data –
which was made possible by the
introduction of the electronic data
interchange. Fast forward fifty years and
e-commerce has changed the way in
which society sells goods and services.
• Definition:-
• Ecommerce, is known as electronic
commerce or internet commerce, refers to
the buying and selling of goods or services
using the internet, and the transfer of
money and data to execute these
transactions. Ecommerce is often used to
refer to the sale of physical products online,
but it can also describe any kind of
commercial transaction that is facilitated
through the internet.
Advantages of E-Commerce
• 1. A Larger Market
e Commerce allows you to reach customers all
over the country and around the world. Your
customers can make a purchase anywhere and
anytime, especially more people are getting
used to shopping on their mobile devices.
2.Customer Insights Through Tracking And Analytics
:-There is a way to track traffic and customer’s
entire user journey to get insights into keywords,
user experience, marketing message, pricing
strategy, and more.
• 3. Fast Response To Consumer Trends And Market
Demand:-The streamlined logistics, especially for
merchants who do "drop ship," allow businesses
to respond to market and e-Commerce trends and
consumer demands in a nimble manner.
Merchants can also create promotions and deals
on the fly to attract customers and generate more
sales.
• 4. Lower Cost:-
• With the advance in eCommerce platform
technologies, it has become very easy and
affordable to set up and maintain an e-
Commerce store with a low overhead.
Merchants no longer have to spend a large
budget on TV ads or billboard, nor worry
about the expense for personnel and real
estate.
• 5. More Opportunities To "Sell"
• Merchants can only provide a limited
amount of information on a product
in a physical store. On the other
hand, e-Commerce websites allow
the space to include more
information such as demo videos,
reviews, and customer testimonials
to help increase conversion.
• 6. Personalized Messaging:-
• E-Commerce platforms give merchants the
opportunity to serve up personalized content
and product recommendations to registered
customers. These targeted communications
can help increase conversion by showing the
most relevant content to each visitor.
• 7.Increased Sales With Instant
Gratification :-
• For businesses that sell digital goods, e-
Commerce allows the delivery of
products within seconds of making a
purchase. This satisfies consumers' need
for instant gratification and helps
increase sales, especially for low-cost
items that are often "impulse buys.“
Disadvantages
• 1. Lack Of Personal Touch:-
• Some consumers value the personal touch
they get from visiting a physical store and
interacting with sales associates. Such
personal touch is particularly important for
businesses selling high-end products as
customers not only want to buy the
merchandise but also have a great experience
during the process.
• 2. Lack Of Tactile Experience:-
• No matter how well a video is made,
consumers still can't touch and feel a
product. Not to mention, it's not an
easy feat to deliver a brand
experience, which could often
include the sense of touch, smell,
taste, and sound, through the two-
dimensionality of a screen.
• 3. Price And Product Comparison:-
• With online shopping, consumers can compare
many products and find the lowest price. This
forces many merchants to compete on price and
reduce their profit margin.
• 4. Need For Internet Access:-
• This is pretty obvious, but don't forget that.
customers do need Internet access before they can
purchase from you! Since many eCommerce
platforms have features and functionalities that
require high-speed Internet access for an optimal
customer experience, there's a chance you're
excluding visitors who have slow connections.
• 5. Credit Card Fraud :-
• Credit card fraud is a real and growing
problem for online businesses. It can lead
to charge backs that result in the loss of
revenue, penalties, and bad reputation.
• 6. IT Security Issues:-
• More and more businesses and organizations
have fallen prey to malicious hackers who
have stolen customer information from their
database. Not only could this have legal and
financial implications but also lessen the trust
customers have in the company.
• 7. All the Eggs In One Basket :-
• E Commerce businesses rely heavily (or solely) on
their websites. Even just a few minutes of downtime
or technology hiccups can cause a substantial loss of
revenue and customer dissatisfaction.
• 8. Complexity In Taxation, Regulations, and
Compliance:-
• If an online business sells to customers in different
territories, they'll have to adhere to regulations not
only in their own states/countries but also in their
customers' place of residence. This could create a lot
of complexities in accounting, compliance, and
taxation.
UNIT-2
E-Commerce Payment
•Credit Card
•The most popular form of payment for e-commerce
transactions is through credit cards. It is simple to use; the
customer has to just enter their credit card number and date
of expiry in the appropriate area on the seller’s web page. To
improve the security system, increased security measures,
such as the use of a card verification number (CVN), have
been introduced to on-line credit card payments. The CVN
system helps detect fraud by comparing the CVN number
with the cardholder's information .
• Debit Card
• Debit cards are the second largest e-commerce
payment medium in India. Customers who want
to spend online within their financial limits
prefer to pay with their Debit cards. With the
debit card, the customer can only pay for
purchased goods with the money that is already
there in his/her bank account as opposed to the
credit card where the amounts that the buyer
spends are billed to him/her and payments are
made at the end of the billing period.
• Smart Card
• It is a plastic card embedded with a
microprocessor that has the customer’s
personal information stored in it and can be
loaded with funds to make online transactions
and instant payment of bills. The money that
is loaded in the smart card reduces as per the
usage by the customer and has to be reloaded
from his/her bank account
• Net banking
• This is another popular way of making e-
commerce payments. It is a simple way of paying
for online purchases directly from the customer’s
bank. It uses a similar method to the debit card
of paying money that is already there in the
customer’s bank. Net banking does not require
the user to have a card for payment purposes but
the user needs to register with his/her bank for
the net banking facility. While completing the
purchase the customer just needs to put in their
net banking id and pin.
• Mobile Payment
• One of the latest ways of making online
payments are through mobile phones. Instead
of using a credit card or cash, all the customer
has to do is send a payment request to his/her
service provider via text message; the
customer’s mobile account or credit card is
charged for the purchase. To set up the mobile
payment system, the customer just has to
download a software from his/her service
provider’s website and then link the credit card
or mobile billing information to the software
• E-Wallet
• E-Wallet is a prepaid account that allows the
customer to store multiple credit cards, debit
card and bank account numbers in a secure
environment. This eliminates the need to key
in account information every time while
making payments. Once the customer has
registered and created E-Wallet profile, he/she
can make payments faster.
• Amazon Pay
• Another convenient, secure and quick way to
pay for online purchases is through Amazon
Pay. Use your information which is already
stored in your Amazon account credentials to
log in and pay at leading merchant websites
and apps. Your payment information is safely
stored with Amazon and accessible on
thousands of websites and apps where you
love to shop.
Gateway of E-Payments
• A payment gateway is an online
payments' service that, when integrated
with the e-commerce platform, is
devised as the channel to make and
receive payments. The procedure to
receive payments includes the customer
requiring to fill in some details, like
credit/debit card number, expiry date,
etc.
Threats and Protections in E-Payment
System
• Although banks try to protect their
customers, attacks against individual
users are still quite common. Hacking a
bank is more time-consuming and
expensive and the risk of being caught is
higher. By contrast, many individual
customers use computers with numerous
vulnerabilities, which are easier to
compromise.
Meaning of Digital Marketing
• Digital marketing, also called online
marketing, is the promotion of brands to
connect with potential customers using the
internet and other forms of digital
communication. This includes not only email,
social media, and web-based advertising, but
also text and multimedia messages as a
marketing channel.
• A few examples of digital marketing
include social media, email, pay-per-click
(PPC), search engine optimization (SEO), and
more.
Definition
• Digital marketing is the use of the Internet,
mobile devices, social media, search engines,
and other channels to reach consumers.
Some marketing experts consider digital
marketing to be an entirely new endeavor that
requires a new way of approaching customers
and new ways of understanding how
customers behave compared to traditional
marketing.
• KEY TAKEAWAYS
• Digital marketing is the use of the Internet to
reach consumers.
• Digital marketing is a broad field, including
attracting customers via email, content
marketing, search platforms, social media, and
more.
Understanding Digital Marketing