E-COMMERCE

BY KHIZAR AHMAD (SP24-BCS-062)

AND
INAM ULLAH (SP24-BCS-052)
OVERVIEW
Electronic commerce (e-commerce) is the buying and
selling of goods and services over the internet. It can be
conducted on computers, tablets, smartphones, and
other smart devices. E-commerce businesses can sell
products or services online through a single website or
multiple online channels, such as social media and
email.

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 E-COMMERCE BASICS

BUYING SELLING CUSTOMERS SELLERS STORE

You can buy whatever You can sell whatever Customers are the ones who They sell their Not a
you want online you want to anyone buy different products from products through an physical
without going to an around the world different online e commerce online e commerce store , sellers
actual shop . without establishing stores . stores . can make as
an actual shop many stores
as they want
online

E COMMERCE
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E COMMERCE AS A BUSINESS MODEL
Retail and Wholesale:
E-commerce platforms allow
businesses to sell directly to
consumers (B2C) or to other
businesses (B2B).
Online Booking
Businesses like travel agencies,
restaurants, and event venues can
leverage e-commerce for appointment
scheduling, ticket sales, and
reservation management.
Online Marketing
E-commerce integrates seamlessly
with online marketing tools.
Businesses can use e-commerce
platforms to collect customer data,
personalize marketing campaigns,
and facilitate online transactions.
Digital Products and Services
E-commerce is ideal for selling
downloadable products like ebooks, music,
software, and even online courses and
subscriptions.
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GLOBAL TRENDS
1.Tech-driven Enhancements
AI and Machine Learning (AI/ML)
These are being used for product
recommendations, personalized marketing,
chatbots for customer service, and even fraud
detection.
Augmented Reality (AR)
Imagine virtually trying on clothes or
seeing furniture in your living room
before you buy. AR is creating more
immersive shopping experiences.
2.Social Commerce Boom
Social media platforms
like Instagram and TikTok are
becoming powerhouses for e-
commerce. Consumers are
discovering products, and even
buying them, without leaving these
platforms.
Live commerce
with influencers and interactive product
demonstrations is gaining traction.
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 IMPACT ON MARKET AND RETAILERS

IMPACT ON MARKET IMPACT ON RETAILERS

• • The lines between online and offline retail are blurring. Successful
E-commerce has lowered barriers to entry for new businesses.
Consumers now have access to a wider range of sellers, retailers are integrating their online and physical stores to provide a
potentially driving down prices and increasing product variety. seamless customer experience.

• Online platforms make it easier for consumers to compare prices • E-commerce fosters rapid innovation. Retailers need to
across different retailers, pushing businesses to be more continuously adapt their strategies to meet evolving customer
competitive. expectations and stay ahead of the curve.

• E-commerce transcends geographical limitations. Businesses • Price competition online can squeeze profit margins for retailers.
can sell to a global audience, while consumers can access They need to find ways to optimize costs and offer value beyond
products from around the world. just price.

• Fast and reliable delivery is crucial in e-commerce. Retailers need

• Convenience reigns supreme. Consumers expect fast, 6
efficient logistics systems to meet customer expectations for
easy online shopping experiences with multiple payment
speedy delivery.
 IMPACT ON EMPLOYMENT
JOB DISPLACEMENT
• Retail jobs: E-commerce automation and
efficiency can reduce the need for cashiers, stock
clerks, and some sales staff in traditional brick-and-
mortar stores.
• Repetitive tasks: Jobs involving repetitive tasks
like data entry or basic customer service might be
automated or outsourced due to e-commerce
advancements.
JOB CREATION
• E-commerce related fields: New jobs emerge in areas like
web development, digital marketing, social media
management, content creation, and e-commerce platform
management.
• Logistics and fulfillment: The rise of e-commerce creates
demand for workers in warehousing, order fulfillment, delivery,
and supply chain management.
• Customer service: While some customer service roles might
be automated, e-commerce also necessitates specialists in
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online customer support and live chat interactions.
 IMPACT ON CUSTOMERS
POSITIVE IMPACT
• Convenience: Shop from anywhere, anytime, without
geographical limitations. Browse products, compare prices, and
make purchases at your own pace and comfort.
• Wider Selection: Access a much larger variety of products
compared to physical stores. Find niche or specialty items you
might not find locally.
• Competitive Prices: E-commerce fosters competition, potentially
leading to lower prices for consumers. Easy price comparison
tools help you find the best deals .
• Detailed Information: Access product descriptions, reviews, ratings,
and specifications before you buy. Make informed purchase decisions
based on readily available information.
NEGATIVE IMPACT
• Delayed Gratification: You can't physically touch or try on products
before you buy them, which can lead to purchase dissatisfaction or the
need for returns.
• Shipping Costs: Shipping fees can add to the overall cost of your
purchase, especially for heavier or bulkier items.
• Returns and Exchanges: The return process for online purchases can
be inconvenient compared to returning items to a physical store.
• Logistics and fulfillment: The rise of e-commerce creates demand for
workers in warehousing, order fulfillment, delivery, and supply chain
management.
• Security Concerns: There's a risk of online fraud or data breaches 8
when shopping on unsecured websites. Be cautious about where you
 IMPACT ON ENVIRONMENT
NEGATIVE IMPACT
• Increased Transportation Emissions: Delivering millions of packages •
daily contributes to greenhouse gas emissions and air pollution from
delivery vehicles (trucks, planes). Optimizing delivery routes and using
alternative fuels can help mitigate this.
• Packaging Waste: E-commerce relies heavily on packaging materials
like cardboard boxes, plastic wrap, and packing peanuts. This can
generate a significant amount of waste, straining recycling capabilities.
• Electronic Waste: The rise of e-commerce contributes to the growing
problem of electronic waste as people buy new devices and dispose of
old ones improperly..
POSITIVE IMPACT
Reduced Brick-and-Mortar Footprint: Fewer physical
stores can lead to less energy consumption for lighting,
heating/cooling, and overall building maintenance..
• Efficient Delivery Systems: E-commerce can potentially
consolidate deliveries compared to individual consumer trips
to physical stores, reducing overall transportation needs.
• Rise of Sustainable Practices: Growing awareness of
environmental issues is pushing e-commerce businesses to
adopt sustainable practices like using eco-friendly packaging
materials and offering carbon-neutral shipping options. 9
 IMPACT ON TRADITIONAL RETAILERS

• Increased Competition: E-commerce giants and • Omnichannel Strategy: Successful retailers are
online-only retailers pose a significant threat, offering adopting an omnichannel approach, integrating online
wider selection, potentially lower prices, and and offline channels to provide a seamless customer
convenient shopping experiences. experience (e.g., buy online, pick up in-store).
• Shifting Consumer Behavior: Customers are
• Store Closures: Brick-and-mortar stores facing
increasingly turning to online shopping for convenience
declining foot traffic might be forced to close, leading to
and price comparison. Traditional retailers need to
job losses and potential vacancy issues in shopping
adapt to meet these changing expectations.
malls.
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 IMPACT ON DISTRIBUTION CHANNELS
• Disruption of Traditional Models: Wholesalers and
distributors might see their role diminished as
manufacturers increasingly sell directly to consumers
online.
• Rise of E-commerce Fulfillment Centers: Efficient
fulfillment centers strategically located near major
population areas are crucial for speedy deliveries in e-
commerce.
• Importance of Last-Mile Delivery: The final leg of the
delivery journey from the fulfillment center to the
customer's doorstep is critical. Retailers need reliable
and efficient last-mile delivery solutions.
• Growth of Delivery Options: Customers expect a
variety of delivery options, including standard shipping,
expedited delivery, and even same-day delivery in some
areas.
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TOP E-COMMERCE STORES

AMAZON WALLMART

SHOPIFY
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THANK YOU!