WHY E COMMERCE IS POPULAR

SOURABH BISWAS
CLASS-11A
MAXFORT SCHOOL DWARKA
WHAT IS E COMMERCE
E-commerce (electronic commerce) is the buying and selling of goods and services, or the
transmitting of funds or data, over an electronic network, primarily the internet. These
business transactions occur either as business-to-business (B2B), business-to-consumer
(B2C), consumer-to-consumer or consumer-to-business.
The term was coined and first employed by Dr. Robert Jacobson, Principal Consultant to the
California State Assembly's Utilities & Commerce Committee, in the title and text of
California's Electronic Commerce Act, carried by the late Committee Chairwoman Gwen
Moore (D-L.A.) and enacted in 1984.
TYPES OF E COMMERCE
• Business-to-Consumer (B2C)
• Business-to-Business (B2B)
• Consumer-to-Consumer (C2C)
• Business to Government (B2G)
• Non-Business E-Commerce
• Social e-commerce
• Mobile e-commerce (M-commerce)
• Peer to Peer E-Commerce
IMPACTS OF E COMMERCE ON THE GLOBAL
ECONOMY
• In 2017, retail e-commerce sales worldwide amounted to 2.3 trillion US dollars while traditional
markets are only expected 2% growth during the same time.
• Among emerging economies, China's e-commerce presence continues to expand every year. China is
also the largest e-commerce market in the world by value of sales, with an estimated US$899
billion in 2016.
• Developed countries would have welfare gains of $117 billion, while the developing world would
lose welfare of $726 million. The Asian region, on the other hand, would gain $802 million, largely
attributable to the transport services sector. Besides welfare and GDP losses, developing countries
would also experience a reduction in wages and deteriorating terms of trade. E-commerce could
therefore end up widening, and not narrowing, the gap between developed and developing countries.
IMPACTS OF E COMMERCE ON THE INDIAN
ECONOMY
• In India with the digital penetration has increased significantly, according to statistical
data internet use has increased to 429.23 million user in India and is expected to reach
around 830m.
• E-commerce has transformed the way business is done in India. The Indian E-commerce
market is expected to grow to US$ 111.40 billion by 2025 from US$ 46.2 billion as of
2020. By 2030, it is expected to reach US$ 350 billion.
• By 2021, total e-commerce sales are expected to reach US$ 67-84 billion from the US$
52.57 billion recorded in 2020.
REASONS FOR INCREASING POPULARITY
OF
E COMMERCE
Here are five major causes of the growth of ecommerce in today’s technology-
driven world that you must be aware of and incorporate into your business
growth strategy.
1. Mobile Adaptivity
2. Omnichannel Retailing
3. Convenience
4. Greater Range of Products and Services
5. Individualized Products and Services
 HOW THE PANDEMIC BENEFITED THE
E COMMERCE
• In March 2020, global retail website traffic hit 14.3 billion visits signifying an unprecedented growth of e-
commerce during the lockdown of 2020. In march 2020, global retail website traffic hit 14.3 billion visits
signifying an unprecedented growth of e-commerce during the lockdown of 2020.
• India’s e-commerce industry will grow 84 per cent to $111 billion by 2024 as it gains from demand created
by the coronavirus pandemic’s impact. India’s e-commerce market will be driven by mobile shopping,
projecting it to grow 21 per cent annually over the next four years.
• Due to the Covid19 pandemic, more and more people have started to prefer shopping on digital platforms
as compared to going to a physical store. Lesser maintenance, faster delivery, convenience for the
customers to buy 24X 7 are a few of the primary benefits of having an e-commerce platform.