MGAC70

CLASS 8 - CHAPTER 7
E-BUSINESS; E-COMMERCE;
M-COMMERCE
ON DEMAND ECONOMY
DOUG KONG
 DEFINITIONS

• Ecommerce –the buying and selling of goods and

services, or the transmitting of funds or data, over an
electronic network, primarily the internet
• Mobile commerce, also known as mCommerce, is any
kind of monetary transaction that occurs through a
mobile device.
• Ebusiness – Includes ecommerce along with all
activities related to internal and external business
operations
 B2B E-COMMERCE

A business-to-business (B2B) model focuses on providing products from one business to another .
• B2B companies can sell directly to end users. Or they can sell to businesses that then resell the products to
other companies or consumers.
• Supply chain management is a big part of B2B e-commerce which involves orders placed on a recurring
basis
• These transactions include office supplies, medical equipment, food service items, beverages, and many
other types of items that one business purchases from another
• These purchases are in large quantities and are directly shipped from one business to another
• B2B transactions frequently involve building strong, lasting relationships with clients. These enduring
partnerships can lead to ongoing contracts and collaborations, further enhancing the stability of the
business.
• Examples:
• Project collaboration tool Trello is a B2B ecommerce company that sells to end-user businesses.
• An auto parts manufacturer that supplies an automobile factory is an example of a B2B business that sells
products to another business.
• B2B ecommerce includes wholesalers such as Faire (a company company helping all shopkeepers buy
quality products from independent makers and artisans.) that target resellers.
 B2B2C E-COMMERCE

In a business-to-business-to-consumer (B2B2C)) model, companies work with other

companies to reach new customers.
• A company creating a new product might join forces with another business to use a
service like an ecommerce website. Together, both you and this other business will be
able to increase your respective customer bases.
• B2B2C ecommerce utilizes marketing campaigns on various digital platforms to reach
its audience, just like B2C businesses. This model is scalable and flexible.
• A good real-world example is Instacart. Grocery stores partner with Instacart to reach
more customers together, with Instacart enjoying the stores’ existing customer bases and
grocery stores profiting from the digital experience Instacart provides.
 B2C E-COMMERCE

A business-to-consumer (B2C) model is a type of ecommerce business models where a company or

business sells products or services directly to individual consumers or end-users.
• In B2C transactions, the business serves as the seller, and the consumer is the buyer
• This model mimics in-store purchasing at brick and mortar locations where the Internet serves as
the “physical location” and the e-commerce site serves as the portal between the consumer and the
business
• This model is commonly associated with retail businesses, online shopping platforms, restaurants,
entertainment services, and many other industries where businesses offer their products or services
to individuals for personal use or consumption.
• One of the defining features of B2C ecommerce is the sheer diversity of products and services
available.
• Examples:
• iTunes, eBay, Amazon, etc
• Major B2C model brick-and-mortar businesses like Staples, Wal-Mart, Target, and Gap.
 C2B E-COMMERCE

In C2B ecommerce, individual consumers have the opportunity to offer their products, services, or expertise
directly to businesses. Individual consumers or individuals act as the suppliers, and businesses or
organizations become the consumers.
• This ecommerce model uses an intermediary to meet audiences online, such as a platform where businesses can
browse consumer profiles and choose whom to hire
• C2B platforms often feature a diverse range of offerings. These can include freelance services, such as graphic
design, writing, or consulting, as well as the sale of unique items, digital products, or content creation.
• You can also advertise businesses on your personal Web site (called an affiliate program) and receive monies for
visitors who jump from your site to the business’ Web sites
• This model empowers individuals to monetize their skills and resources while providing businesses with access to
a wide array of offerings.
• Online review platforms count as C2B ecommerce because they provide both data for businesses to use and
feedback on how the business could improve.
• Examples of C2B sites include Fiverr (a multinational online marketplace for freelance services), Shutterstock (a
vibrant community of creatives that hosts images and videos on the website. You will earn a percentage of the
sale price after your content gets licensed by Shutterstock). and Fotolia (a leading marketplace for royalty-free
images, graphics, and HD video)
 C2C E-COMMERCE

Consumer-to-consumer (C2C) ecommerce is a commerce model in which one consumer sells his
goods or services to other consumers, typically in an online environment.
• Their transactions are led by a third-party business or platform like online auction, classified
advertisements, social media websites, or ecommerce websites.The third party looks after the
transaction, payments, and other ecommerce aspects. It helps sellers, as well as buyers, find each
other by imposing a small fee or commission.
• C2C ecommerce facilitates peer-to-peer transactions, enabling consumers to become both buyers
and sellers.
• One of the remarkable features of C2C ecommerce is the sheer diversity of products and services
available. This diversity attracts a broad range of consumers, each seeking something specific or
looking for a good deal.
• This model opens up new avenues for consumers to connect, trade, and build sustainable,
community-driven economies in the digital age.
• Examples include eBay, Craigslist, and Esty Facebook Marketplace, Poshmark (a leading social
marketplace for new and secondhand style for women, men, kids, pets, home, and more)
 D2C E-COMMERCE

Direct-to-consumer (D2C) ecommerce is a an ecommerce business model in which companies or brands

sell their products or services directly to consumers, bypassing traditional intermediaries such as wholesalers,
retailers, or distributors.
• In D2C transactions, the company or brand interacts directly with the end consumers, often through online
channels like their website, mobile apps, or physical stores.
• D2C ecommerce empowers businesses to have greater control over their brand’s image, messaging, and
customer experience. This direct relationship with consumers allows companies to convey their unique story,
values, and product details more effectively, fostering brand loyalty and recognition.
• Brands using D2C models are able to control the entire buying experience, which often leads to happier
customers and higher revenue.
• Examples include Gymshark and DU/ER. Gymshark is a British fitness apparel and accessories manufacturer
and retailer headquartered in England. It creates and distributes its own range of fitness wear. Canadian denim
brand DUER created a range of “stretch performance denim” crafted from plants and various recycled
materials, putting an entirely new spin on jeans.
 B2G E-COMMERCE
Business to Government (B2G) ecommerce is a an ecommerce business model where private sector businesses or companies
provide products, services, or solutions to government agencies or organizations at various levels of government, such as federal,
state, or local governments.
• B2G primarily involves government procurement, where government agencies purchase goods and services from private
sector businesses. These purchases can encompass a wide range of industries, including technology, construction, healthcare,
consulting, and more.
• B2G transactions often occur through government contracts. Businesses interested in supplying to the government typically
need to go through a competitive bidding process, where they submit proposals and bids in response to government requests
for proposals or requests for quotations.
• Interacting with government agencies differs greatly from working with other businesses or consumers. Business deals tend to
move much slower than in other sectors. eCommerce companies can bid on government contracts, the same as other
companies. Unlike many B2C transactions, however, many government agencies will not go directly to an eCommerce website
and place an order.
• Example:
• Lockheed martin (Lockheed Martin Corporation, major American diversified company with core business concentrations in aerospace
products—including aircraft, space launchers, satellites, and defense systems—and other advanced-technology systems and services.
About half of the company's annual sales are to the U.S. Department of Defense .
• when a private engineering company sells its engineering services to a county government to develop a new water and
sewer system for the community.
 E-GOVERNMENT MODELS

Uses strategies & technologies to improve services and communication with the citizen-consumer

Examples : C2G – hamiltoncatch.org; G2B – canadabusiness.gc.ca; G2C – servicecanada.gc.ca; G2G – aupe.org

CATCH (Citizens at City Hall) is a volunteer community group that encourages civic participation in Hamilton.
AUPE is Alberta's largest union with more than 95,000 members. It is the province's largest and most diverse, with
members working in government, health care, education, boards and agencies, municipalities, and private companies .
E-COMMERCE MODELS
 EXAMPLES OF SUCCESSFUL ECOMMERCE BUSINESS MODELS

• Chocomize (B2B ecommerce business model example) - Chocomize is an innovative and delightful online platform
that enables users to select from a wide range of premium chocolates, flavors, and toppings, allowing them to craft
their very own chocolate bars that cater to their individual tastes. Its innovative approach to corporate gifting, brand
promotion, and employee appreciation has made it a trusted partner for companies looking to sweeten their
relationships with clients, stakeholders, and employees.
• Ebay (C2C ecommerce business model example) - With millions of registered users worldwide, the platform offers a
reach for both buyers and sellers. This critical mass of users fosters a vibrant ecosystem of listings and transactions. It
has not only redefined how individuals buy and sell products but has also transformed many lives by providing
economic opportunities and a global platform for entrepreneurship.
• Alibaba (B2C ecommerce business model example) - Alibaba created a robust ecosystem that benefits brands,
retailers, small businesses, and consumers alike has made it a global leader in the ecommerce industry. The company’s
ability to harness the B2C ecommerce model has not only transformed the way people shop in China but has also made
Alibaba a global ecommerce powerhouse.
 EXAMPLES OF SUCCESSFUL ECOMMERCE BUSINESS MODELS

• Amazon (C2B e commerce business model example) - Amazon’s Marketplace is a prime example of C2B in action. It
allows individual sellers, entrepreneurs, and businesses to reach a global audience, leveraging Amazon’s platform. This
approach fosters competition, diversity of product offerings, and entrepreneurial success stories. By actively engaging and
involving customers in its operations, leveraging their insights, and creating opportunities for entrepreneurship and
innovation, Amazon has cultivated a thriving ecosystem that benefits both the company and its customers. It showcases
how a consumer-centric approach can redefine the traditional boundaries of commerce, making Amazon a global leader in
the ecommerce landscape.
• Mark43 (B2G e commerce business model example) - Mark43 has played a pivotal role in modernizing law
enforcement agencies across the United States and beyond. Its cloud-based platform offers comprehensive solutions that
streamline critical tasks such as record management, evidence management, dispatching, and reporting. This digital
transformation has helped agencies work smarter and faster. Through innovative technology solutions, cost-efficiency,
scalability, and a commitment to officer safety and community well-being, Mark43 has reshaped the way government
agencies approach public safety.
• Warby Parker (D2C ecommerce business model example) - Warby Parker challenged the high cost of prescription
eyewear by offering stylish, high-quality glasses at a fraction of the price charged by traditional retailers. By eliminating
intermediaries and selling directly to consumers online, the company democratized access to designer eyewear. Warby
Parker’s success as a D2C ecommerce model pioneer lies in its ability to combine affordability, style, innovation, and
social responsibility.
 HOW TO CHOOSE AN ECOMME RCE MODE L ?

• Define your business objectives - Clear and well-defined business objectives are the keys of any business model. These objectives
encompass the company’s mission, vision, and strategic goals. Whether it’s achieving growth, maximizing profitability, or driving social
impact, having a roadmap of objectives guides decision-making and aligns the entire organization toward a common purpose.
• Understand your target audience - A business model should identify and define its ideal customers, their needs, preferences, and
pain points. This knowledge allows the business to tailor its products, services, and marketing efforts to effectively reach and engage
its audience.
• Understand your resources - Some business models, such as DTC and private label, require more cash up front and more time to
operate. Other business models, like marketplace and dropshipping, benefit from great supplier contacts. By taking stock of your
supplier relationships and the cash you have available to invest, you can make a clear-eyed decision about the business model that’s
right for you.
• Defined Process & Thorough Documentation - Efficient and well-structured processes are the backbone of any successful business
model. Whether it’s in production, sales, customer service, or supply chain management, clearly defined processes streamline
operations, reduce inefficiencies, and ensure consistent quality. Documentation includes everything from business plans and standard
operating procedures to contracts and compliance. Comprehensive documentation helps mitigate risks, facilitates communication, and
ensures that everyone in the organization is on the same page.
• Identify Competitive Value Proposition - A compelling value proposition sets a business apart in a crowded market. A value
proposition communicates the unique benefits and advantages a business provides, addressing customer pain points and delivering
real value.
• Establish Effective Marketing Strategy - Effective marketing is essential for attracting and retaining customers. A marketing strategy
encompasses branding, advertising, digital marketing, social media, content creation, and customer relationship management. It
ensures that the right message reaches the right audience at the right time.
• Adaptability - A successful business model must be ready when market conditions change. This flexibility allows the business to
respond to emerging trends, seize new opportunities, and overcome challenges.
 ECOMMERCE – REVENUE MODEL
• Subscriptions - With a subscription e-commerce business, customers sign up to receive products in regular
intervals. Subscriptions can help businesses develop recurring revenue streams and maintain longer customer
relationships than businesses that rely on one-off purchases. A subscription e-commerce business model could work
if the company product is something that customers will use frequently and need to replace, reuse or may run out of
• White-labeling - With white-labeling, the company will buy wholesale products and then brand them with another
logo, label and packaging. This can be a good B2B business —The company might apply another company’s
branding to your products to create employee gifts or trade show giveaways. It can also be a B2C business if the
company products can be customized for specific celebrations, like bridal parties or baby showers, or with
sentimental colors, like school colors. However, for white-label goods, the company may have to buy in large
quantities and maintain inventory. This can increase the company startup costs and introduce additional
complexities, like maintaining warehouse space.
• On-demand printing or manufacturing - With an on-demand e-commerce business, the company creates a
product at the time the customer orders it. This way, the company will not be stuck with stock that the company
cannot move. The company can also potentially offer lots of customization for your customers. On-demand
manufacturing can sometimes mean orders have a longer lead time to get to customers, because they’ll have to wait
for their product to be made instead of simply being shipped from the company warehouse. It’s important to be
upfront with the customer about the timeline, although the company will always have the option to charge
customers more for rush orders.
 ECOMMERCE – REVENUE MODEL

• Dropshipping - Dropshipping is an e-commerce business model in which the company does not actually keep any
inventory in stock. Instead,the company lists goods for sale, then work with warehouse partners who keep the
company goods in stock and manage all of the operations once the orders have been placed. Dropshipping can
allow the company to experiment with what it sells without having to pay upfront for stock that may not end up
getting traction with the company customers. Since the company does not manufacture products or manage
shipping directly — dropshippers may sell products they haven’t even seen — quality control can become
challenging. The company needs to have a plan to address customer complaints, returns and exchanges.
• Wholesaling and warehousing - Wholesaling and warehousing is typically a B2B or B2G business model. With
wholesaling, the company often keeps a significant amount of inventory on hand and require buyers to purchase
from the company in bulk. The company may manufacture these products themselves or act as the intermediary
between manufacturers and niche buyers.
• Private Labeling and Manufacturing - Companies that manufacture products offsite for sale send the plans or
prototypes to a contracted manufacturer who produces the product to meet customer specifications and can either
ship directly to the consumer, to a third party such as Amazon, or to the company selling the final product. On-
demand manufacturing allows the company to quickly change suppliers if the company encounters problems with
product quality. The startup costs are minimal, and if you’re interested in potentially opening your own production
facilities later, this is a good way to test a new product or concept.
 ECOMMERCE FORMS AND REVENUE-GENERATING STRATEGIES

• Ecommerce revenue models

• Advertising fees
• License fees
• Subscription fees
• Transaction fees
• Value-added service fees
• Pay-per-click
• Pay-per-call
• Pay-per-conversion
 E COMMERCE PLATFORMS & MECHANISMS

• An e-commerce platform is a tool that is used to manage an e-commerce business. E-commerce

platform options range in size from ones for small businesses to large enterprises.
• e-commerce platforms include online marketplaces that simply require signing up for user
accounts and little to no IT implementation. A few examples of e-commerce marketplace
platforms include the following: Alibaba; Amazon; Chewy; eBay; Etsy; Overstock; Newegg;
Rakuten; Walmart Marketplace; Wayfair
• Another e-commerce platform model is SaaS, where store owners subscribe to a service where
they essentially rent space in a cloud-hosted service. This approach does not require in-house
development or on-premises infrastructure. Vendors offering e-commerce platform services for
clients hosting their own online store sites include the following: BigCommerce; Ecwid; Magento;
Oracle NetSuite Commerce; Salesforce Commerce Cloud (B2B and B2C options); Shopify;
Squarespace; WooCommerce
• Other e-commerce platforms include open source platforms that require a hosting environment
-- cloud or on premises -- or complete manual implementation and maintenance.
 HOW TO DESIGN AN ECOMMERCE BUSINESS MODEL?

Writing a business plan can help the company define its e-commerce business and revenue models :
• Who are your customers? The company should know its audience, but it doesn’t have to be narrow. Developing
multiple revenue streams can help the company business weather industry downturns or changes in consumer behavior
— just don’t overextend the company trying to sell to everyone.
• How often will customers buy the company products and services? Is the company selling something that customers
will need on a recurring basis, or will most of the company sales be one-offs? If the company is pursuing a subscription
business, make sure the company has the resources to order enough inventory and pack shipments on a regular basis.
• Will you keep inventory? If the company wants to sell high volumes of goods without keeping inventory on hand,
print-on-demand and dropshipping may be appealing.
• How much control do you want? If the company wants to be heavily involved in quality control and the production of
is products, dropshipping may not be appropriate.
• How many products will you offer? Does the company want to provide customers with many color, size and package
options? The more options the company offers, the more the company will have to manage your suppliers.
• How much bandwidth do you have? If the company’s e-commerce business is a side gig, it may not be in a position to
take on government contracts or large B2B orders.
 E-COMMERCE PRESENCE MAPS

An e-commerce presence map is an illustration of

the various touchpoints where customers, potential
customers, and stakeholders can be influenced by
e-commerce activities.
• Presence Map Structure
• Presence includes websites, e-mail, social media sites,
and offline media.
• Platform includes the method used to reach the
stakeholders and customers including desktop and
mobile platforms, social media sites such as Instagram,
Facebook, blogs, magazines, radio stations, TV
stations.
• Analysis of the activity includes what can be delivered
using each specific platform including applications,
affiliate advertising, searches, newsletters, information
sharing, education, and branding.
IMAGE OF AN E-COMMERCE PRESENCE MAP
 E-COMMERCE TIMELINE
Organizations that wish to develop an e-commerce presence should execute an analysis of
the phases needed.
Development of an e-commerce strategy for a start-up
Phase Actions Measurement
Did you compile
Phase 1:
Determine vision for web presence. information about costs,
Planning
needs, wants?

Web site storyboard, design strategies, Do you have a website

Phase 2:
design and implementation
Web Development determine web hosting needs, build the
site. plan?

Develop search engine optimization

Phase 3: (SEO) strategy, identify potential Do you have a functional
Implementation advertisers and sponsors, develop website?
keywords and tags.
 E-COMMERCE TIMELINE

The creation of an e-commerce timeline can be beneficial in allowing an organization to

visualize the various steps needed to create a presence in the e-commerce business
landscape.
Development of an e-commerce strategy for a start-up
Phase Actions Measurement
Conduct research about which social Do you have a researched
Phase 4:
media platforms best reach your and logical social media
Media Plan
target audiences plan?
Phase 5: Have you established a
Create a social media presence.
Social Media social media presence
Develop content for various sites.
Implementation using a variety of sites?
Phase 6: Create a plan for deploying content
Have you created a plan
Mobile Platform and e-commerce activities via mobile
for reaching customers
Planning and platforms being accessed via
via mobile devices?
Implementation smartphones and other devices.
 COST-BENEFIT OF E-COMMERCE PRESENCE

Cost-benefit analysis is a useful tool in analyzing the costs associated with

implementing a project or set of activities and the benefits that can be achieved as a
result of the implementation.
• Costs and Benefits
• costs include the capital outlay involved as well as the impact on an organization as measured in
hiring, management, and time commitments
• benefits are measured in potential return on investment (ROI), potential costs averted, productivity
gains, market and brand exposure, and increase in sales
 BENEFITS AND LIMITATIONS OF E-COMMERCE
Benefits
Global Reach: E-commerce allows businesses to
reach a global audience, breaking down
geographical barriers and expanding their customer
base.
24/7 Availability: Online stores are open 24/7,
providing customers with the flexibility to shop at
any time, increasing sales opportunities.
Cost Savings: E-commerce businesses often have
lower operating costs compared to brick-and-
mortar stores, as they don't require physical
storefronts and can automate many processes.
Convenience: Customers can shop from the
comfort of their homes, saving time and effort. This
convenience is a significant driver of e-commerce
growth.
Data Collection and Personalization: E-commerce
platforms gather valuable customer data, allowing
businesses to personalize marketing strategies and
enhance the overall shopping experience.
Limitations
Security Concerns: E-commerce transactions involve
sensitive information like credit card details, making
them susceptible to cyber attacks and data breaches.
Lack of Personal Interaction: The absence of face-to-
face interaction may result in a lack of trust, especially
for first-time buyers who prefer physical stores.
Dependency on Technology: E-commerce heavily
relies on technology, and any technical issues, such as
server crashes or website glitches, can disrupt business
operations.
Competition and Saturation: The online market is
highly competitive, and businesses often face
challenges in standing out among numerous
competitors. Saturation in certain niches can also be a
concern.
Shipping and Fulfillment Challenges: Timely and
reliable shipping can be a logistical challenge, affecting
customer satisfaction. Additionally, returns and
exchanges can add complexity to the e-commerce
supply chain.
 CHALLENGES & MITIGATION - ECOMMERCE

• Cyber & Data Security - one of the biggest challenges is security breaches. There is a lot of information/data that is involved
while dealing with eCommerce and a technical issue with data can cause severe damage to the retailer’s daily operations as
well as brand image. Always back up your data. You can also install security plugins onto your website to prevent it
from getting hacked. Pick the one that works best for your eCommerce website.
• Online Identity Verification - When a shopper visits an eCommerce site, how would the retailer know if the person is who
they say they are? Is the shopper entering accurate information? Is the shopper genuinely interested in the eCommerce
products? If you do not have the accurate details or information, how do you proceed? There are different ways to
incorporate online identity verification. Some examples include biometrics, AI, single sign on, one time password,
two-factor authentication and so on.
• Attracting the Perfect Customer - Shoppers have a myriad of options to choose from these days. If they are looking to buy
a camera, they do some thorough research before finalizing on one. If shoppers have several options, how do you make sure
they pick you? How do you go about finding that perfect customer that wants your product, at your rate and to the places
you can ship? Partner with companies that help you target your customers. Digital marketing is preferred over
traditional marketing because they can target your ideal customer. While this might not happen overnight, with A/B
testing, finetuning and analysis – your products could be showing up to potential customers on different social media
platforms.
• Customer Experience - Customer experience or user experience is key to a successful eCommerce website. Shoppers expect
a similar if not same experience as one they would get in a brick and mortar store. The flow of the website, the segmentation
of the website and the retail personalization of products based on the shopper’s preferences are imperative. There are
several ways to improve the user experience. The most important would be to have a clean and simple website so that
shoppers can navigate through easily. The next point would be to have clear CTAs (call to action) so that the shopper
knows exactly what to do. Here is a post that shows you 10 ways to improve user experience.
 CHALLENGES & MITIGATION - ECOMMERCE

• Customer Loyalty - customer retention or loyalty are key to the success of ecommerce.. Once a customer makes a purchase
or utilizes a service from a retailer, they have to make sure that they keep this customer for life. These are a few different
methods that can be used to retain customers. The first would be to have excellent customer service – a customer is
happy to have purchased a great product, but they are ecstatic when the customer service is superb. The next step is
to keep in touch with the customer via a method that they like – be it an email, SMS or blog posts – be sure to find
out what works best for your customer. The last point would be to let them know about new products, sales
promotions and special coupon codes for being such loyal customers.
• Converting Shoppers into Paying Customers - One of the biggest ecommerce challenges is to convert visitors into paying customers.
An eCommerce website might have a lot of traffic, a lot of clicks and impressions but they aren’t making the sales they anticipated.
What can they do to get more sales? The first and foremost would be to understand why your shoppers aren’t converting – are you
targeting the right audience? Is your mobile website working seamlessly? Do your online platforms face technical challenges all the
time? Does your customer base trust you? Do you personalize your website for your customers? Always think from a shopper’s
perspective and see if you are doing everything possible to make them paying customers.
• Competition & Competitor Analysis - A lot of people these days are fatigued by all the options that are out there. A simple search (
personalized search) for something like headphones will give you thousands of options – how does one make a choice? From a retailer’s
standpoint, how do they stand out from the crowd? How do they bring shoppers to their website, instead of buying a similar product
from their competitors? Always do a thorough analysis of your competitors. Find out what products they are selling, how they are
generating leads and how they keep in touch with their customers. The next step would be to make sure you stand out – be it the
colors you use, the topnotch functionality of your website or amazing user experience. And finally, offer services or products that are
unique and relevant to your customer base.
 CHALLENGES & MITIGATION - ECOMMERCE

• Price & Shipping – Customers always prefer to purchase products from places that have free shipping. eCommerce giants
like Amazon provide such attractive shipping deals that customers seldom want to look at other places. How does one bring
down costs for shipping? While all eCommerce sites cannot completely get rid of shipping costs, always look to find
options that work for your customer base. Would a subscription reduce the cost of shipping? Would a certain time of
the month give them lower shipping costs? Or is there a carrier that is reliable but offers a cheaper rate? Be sure to
do your research and find the best possible solution for your shoppers.
• Product Return & Refund Policies - When shopping online, customers want the flexibility in return policy in case if they
make a mistake. Customer satisfaction is the most important factor for any retailer. Therefore having a flexible return
and refund policy not only helps with customer satisfaction with it also helps with customers making purchases
without being nervous.
• Choosing the Right Technology/Partners To Fix Your eCommerce Challenges - Choosing the right technology or
partner will make or break your business. A retailer’s growth might be stunted because their technology is limiting them or
because they have hired the wrong agency to help them manage their projects. It is crucial to find the right that offers
effective platforms using state of the art technologies and data science will help retailers generate product, and
customer intelligence, and combine these with market insights, to power growth.
• Customer Support - With the scale of eCommerce increasing rapidly and with the rising number of users facing everyday
issues with eCommerce services, Customer support has been augmented with chatbots which enable faster processing and
response to tickets. However, many customers find themselves feeling uncomfortable or dissatisfied with automated
responses from chatbots. eCommerce companies should utilize a combination of technology and human assistance to
deal with customer support by tagging specific issues that require human assistance and distinguishing the queries
that can be handled by a chatbot.
 CHALLENGES & MITIGATION - ECOMMERCE

• Cross-border eCommerce - A lot of eCommerce sites tend to stagnate due to the lack of interaction with customers outside their
geographical and linguistic range. Users that do not speak the primary language used on the site tend to look for other retailers that
can offer them a better user experience. Moreover, the differences in pricing, tax rates, etc., deter users from purchasing across
borders. Implementing a multi-lingual site that is translated for customers that do not speak the primary language of your
site can make a huge difference in attracting customers and also improving your conversion rates. Using technology to
enable an easy conversion of currencies and taxing the products appropriately will also significantly contribute to growth.
• Marketing Budgets - With digital marketing becoming the norm for most eCommerce businesses, more companies are flocking
towards their digital and social media ad spends. With the demand for clicks and virtual advertising space increasing, so does the
price. This can become very expensive for small and medium-sized retailers and in fact, this is one of the biggest eCommerce
challenges that they face. Create specific customer profiles that will help your business with targeting your social media and
digital ads so that you significantly improve your return on investment on your spends.
• Going Omnichannel - Selling your products through multiple channels enables you to increase your overall revenue and Average
Order Value(AOV). A customer that shops on multiple channels is likely to spend three-times more than the average customer.
However, if not done right, some channels might lead to losses if they don’t attract the right customers and the required volume of
customers. Use the data you receive from the different channels you operate on to identify the top-performers and optimize
them for your customers and reduce your spending on the platforms that do not gain the traction that you need.
• Data Privacy - Customers today are aware of the importance of their data and the need for data privacy. Device manufacturers like
Apple are going the extra mile to ensure that their users’ data are kept safe from third-parties. However, user data can also enable
platforms to provide them a better user-experience. Collect Zero-party data, where your customers will intentionally and
voluntarily share their data with your brand as opposed to collecting third-party data, which is what customers these days
are extremely cautious about.
 CHALLENGES & MITIGATION - ECOMMERCE

• Logistics - Companies across the world are affected by supply chain issues every year, and considering it is a layered process, issues
and errors occur at multiple steps during the process, which leads to added expenses and delays.Gain visibility of your entire
supply chain. Supply Chain Visibility enables you to track your inventory accurately and also establish a clear
communication system that can help you stay up-to-date with different parts of the supply chain process.This is one of those
eCommerce challenges that requires time and effort, but is also extremely essential.
• Store Agility - How rapidly can you roll out new features, post and market fresh content? Due to the rapid evolution of ecommerce,
it is crucial that you implement an agile company model. Staying relevant and up-to-date with trends is crucial for eCommerce
businesses to survive and thrive and provide their customers the best possible user-experience. Ensure that your team is
adaptable and has processes set to deal with changes, both internal and external to enable quick decision-making.
• Customer Expectations - Modern consumers these days are increasingly informed and aware with the advent of new technology
and exposure to multiple brands and services. The modern consumer has high expectations for the kind of products and services
they pay for and are constantly on the lookout for better experiences. A thorough awareness of contemporary web design trends
is required. A thorough examination of current trends will enable you to recognise the adjustments that your company needs
to make and assist in making them.
• Placement of Elements within your page - The design and placement of important elements such as the navigation bar, tabs etc.,
on your website can significantly impact your conversions and sales because your user-interface contributes to the customer’s
experience on your site. Users tend to be wary of sites that they cannot easily navigate through. Constantly improve on your User
Interface design, understand what designs your customers respond well to and remove any unnecessary hindrances that
hamper your users from fully engaging with your site.
• Sustainability - Retailers are now being incentivized to market their goods and delivery services as having a low environmental
impact due to the increased global attention on sustainability due to consumer demand. Improve the efficiency of your supply
chains and identify key areas where your carbon footprint can be reduced for improved environmental impact.
 ECOMMERCE - PERFORMANCE METRICS

• Sales conversion rate : The conversion rate (CVR) is the number of people who made a purchase out of the total
number of people who accessed your website. CVR = (# of Purchases / # of Sessions) x 100
• Average order value : average order value (AOV) indicates the average amount customers are spending at one time on
your online store. AOV = Total Revenue / Total Number of Orders
• Customer lifetime value : Customer lifetime value (CLV or CLTV) is the total revenue your business could expect
from a single customer throughout their lifetime (or at least the lifetime of their relationship with your business). CLV
= Average Value of a Purchase x # of Times the Customer Will Buy Each Year x Average Length of the Customer
Relationship (in Years)
• Customer acquisition costs : customer acquisition costs (CAC) tell you how much it costs, on average, to get a new
customer. CAC = Amount Spent on Marketing / # of New Customers
• Shopping cart abandonment rate : it’s when a customer adds a product to their online shopping cart but they don’t
complete the entire checkout process, essentially abandoning those items. Shopping Cart Abandonment Rate = (# of
Completed Purchases / # of Shopping Carts Created) x 100
• Returning customer rate : the number of customers who have made more than one purchase from your
shop. Returning Customer Rate = (# of Return Customers / Total # of Customers) x 100
 ECOMMERCE - PERFORMANCE METRICS
• Bounce rate : tells you the number of people who landed on your website and then left it again without taking any action, whether
that was clicking to another page, filling out a form, checking out a product, etc. Your bounce rate can be found under Audience
> Overview in your website’s Google Analytics. An average bounce rate for an ecommerce website is between 20% and 45%. To
reduce bounce rate, make sure you have an easy-to-navigate website and an attractive design, and that people can tell what you sell
immediately upon landing on your site.
• Net promoter score : Your net promoter score (NPS) measures overall customer loyalty and customer satisfaction. This metric is
calculated by surveying your customers at checkout by asking one simple question: “On a scale of 1–10, how likely are you to
recommend us to a friend or family member?” Those responses are then broken down into three categories: Promoters: Customers
who gave a rating of 9–10; Passives: Customers who gave a rating of 7–8; Detractors: Customers who gave a rating of 6 or less.
Obviously, the higher the score, the better. NPS = % of Promoters - % of Detractors
• Click-through rate : the rate at which someone clicks on an email campaign, ad, social media post, etc., and lands on your website.
CTR = (# of Clicks / # of Views/Impressions) x 100
• Store sessions by traffic source : shows you the number of visitors you have coming to your website and how they accessed it. The
most common traffic sources are: Search: Website visitors who landed on your website after clicking from search results;
Direct: Website visitors who landed on your website after typing it directly into their URL bar; Social: Website visitors who landed
on your website after clicking from a social media platform; Email: Website visitors who landed on your website after clicking
from an email newsletter. Looking at these stats can help you gauge which marketing channels are the most popular for your
business and which might need attention. You can access this right inside your analytics dashboard provided by you provider such
as Shopify.
 ECOMMERCE - PERFORMANCE METRICS
• Store sessions by device type : Your provider should also show you this analytic in their dashboard – This shows
your store visitors based on the device they’re using to access your website. The devices will typically show up as
mobile, desktop, or tablet. Being able to understand your passionate customers who buy across multiple stores and
channels helps you to cater to the experience you offer to them and ultimately serve them better.
• Store sessions by location : Your provider should also show you this analytic in their dashboard. This shows you
the top locations of your customers, helping you to adjust your marketing and product offerings based on where your
top customers are located.
• Top products by units sold : Your provider should also show you this analytic in their dashboard. This metric lets
you know which of your products are the most popular so you can plan ahead and prepare for inventory or creating
more products.
• Month-end inventory snapshot : Your provider should also show you this analytic in their dashboard. This month-
end inventory snapshot shows the quantity of each product variant you had in stock at the end of each month.
• Average inventory sold per day : Your provider should also show you this analytic in their dashboard. The average
inventory sold per day shows the number of items sold each day by product variant.
Tracking performance gives you so much power. By understanding how well your business is doing, you can
quickly identify any problems and fix them, which saves you time and money. It also helps you avoid making the
same costly mistakes in the future.
 MCOMMERCE - TYPES

• Mobile shopping: This includes any kind of shopping you do on

your mobile devices, whether it’s ordering that new book from your
tablet’s bookstore or buying household goods through the Amazon
app on your phone.
• Mobile banking: Now think about the time you logged in to your
bank’s mobile app to transfer your money from one account to
another.
• Mobile payments: This includes any payments made via a mobile
device, like using an app to send your half of the bill after dinner or
Apple Pay or Google Pay to purchase your shopping. Mobile
payments may also power mobile shopping and banking experiences.
 BENEFITS & CHALLENGES - MCOMMERCE
Benefits:
Faster purchases: Consumers are able to browse and purchase
products faster through mCommerce than eCommerce because
there isn’t any need to pull data from a server.
Better customer experience: With speed, convenience,
interaction, and exclusivity built into your mobile commerce app,
customers are on track for a great shopping experience — one
better than they might get in person or on the web.
Connection to customers: With online shopping, you could
send email to your customers. But with mCommerce, you can
send push notifications directly to their mobile devices, which are
already attached to their person.
Tailored content: As a business owner, you can learn so much
information about your customers through mCommerce, which
helps create an even better and more personalized experience
for them.
Deeper analytics: With information such as your customer’s age,
sex, location, and shopping history, you can make sure they see
the products they love, which will encourage them to buy on the
spot.
Scalability: Mobile commerce allows you to better scale all parts
of your business, whether it’s inventory or marketing. With
marketing, for instance, you can use robust mobile data to ramp
up marketing when you see interest spiking or waning.
Challenges:
Need to optimize: As with all technology, mobile commerce is
constantly evolving. You need to stay aware of those changes —
advances in technologies, best practices, design, etc. — to
ensure you always have an easy-to-use experience.
Privacy concerns: Businesses that use mCommerce have more
access to consumer data, and a responsibility to protect it. As
with other forms of payment, you want to make sure you are
PCI compliant and work with a processor that monitors for
fraudulent activity. You also want to ensure that you know
exactly how many of your partners access and use consumer
data. Please consult a privacy professional on how best to
remain compliant with all applicable privacy regulations.
Easier to compare with competitors: Since it’s so easy to find
businesses online, it’s also easier for customers to comparison
shop. You need to keep up with your competitors — know what
they sell and for how much — so you can find ways to compete.
Damage to brick-and-mortar business: Some people worry
that focusing on mobile commerce (or eCommerce generally)
will hurt the performance of brick-and-mortar locations. The
best way to avoid that is to treat mobile not as a separate
experience but as an extension of more traditional experiences.
Find ways to tie them together. Most consumers use mobile
devices when they shop — even in-store — so use that to your
advantage.
 MCOMMERCE – DIFFERENT PAYMENT METHODS

• Mobile wallets: A mobile wallet is a digital version of the wallet you keep in
your purse or back pocket. It’s a convenient way to make purchases on your
mobile device without physically swiping a card or handing over cash.
Apple Pay and Google Pay are both examples of mobile wallets.
• Mobile transfers: Mobile transfers are the services you usually receive
through mobile banking apps, where you’re able to transfer money from one
bank account to another with the push of a button on your mobile device. But
you can also do this through peer-to-peer apps.
• In-app payments: In-app payments occur through the convenient mobile
apps of your favorite retailers. An in-app payment allows you to make
purchases through an app you’ve downloaded to your cell phone, smart watch,
or tablet.
 HOW TO CREATE SUCCESSFUL MOBILE EXPERIENCES?

Who - Who is your target user? Basic user demographics like age and gender are a must, but try to go beyond
that— think about their desires, ambitions, obstacles, and pet peeves. Creating user personas for each of your
expected types of users can help answer this question and design a better mobile experience.
What - What does your target user need or want that they cannot currently get at all or get easily? What are
you considering to offer via mobile experiences to give the user what they want? Whatever you are offering
should be related to your business but should focus on what is important most to the user.
Why - Why are users going to use your mobile solution? Your app should fulfill a need or want they have (in
other words, it answers the “What” question). There needs to be a difference dramatic enough between using
your app and the “next best thing” for them to bother remembering your URL or downloading your app.
When - When are your users most likely to engage with your mobile solution? And how often? The “When”
can be in absolute terms (e.g. between 7PM and 10PM on weekdays, etc.) or in relative terms (during a
workout, an hour after dinner, etc.) You should consider times of engagement to create an optimal experience
for your user.
Where - Where are users most likely to engage with your app? Are there location-driven opportunities and
challenges that exist? For example, monitoring swimming performance sounds great, but users can’t use a
regular smartphone without adding some waterproof peripherals. On the other hand, mobile comparison
shopping is likely to happen in retail stores and might be facilitated by barcode scanning or QR code reading
capability, etc.
How - How are you going to reach your users? Once you have characterized your users by understanding the
answers to all of the questions above you can understand how to effectively reach them.
 ON DEMAND ECONOMY
• The on-demand economy is defined as the economic activity created by digital marketplaces and technology companies to
fulfill consumer demand via immediate access to goods and services. It involves platforms or apps that connect consumers
with providers in real-time, allowing users to access services or products on-demand.
• The on-demand economy works by taking a service, such as meal delivery, hairstyling and makeup application, or handyman
repairs, and using technology in order to connect suppliers with consumers.
• This connection usually happens through a technological service such as a website or smartphone application, with both
parties signing up for accounts in order to use the service. Then, when a customer is in need of a service, they open the app,
input their parameters, and send a request to connect with a service provider.
• The service provider is then alerted through the application of the service request and heads out to perform the task for the
consumer. Upon completion of the service, payment typically takes place through the technology company. This ensures
that there is no sharing of personal information between parties — as the technology company acts as an intermediary and
safeguarder of personal information. Following service, both parties are prompted to provide feedback and ratings for one
another, in order to improve the system and ensure the quality of service.
• The eCommerce industry has been a driving force behind the emergence and popularity of the on-demand economy, in which
consumers can easily order goods and services online and receive them quickly. Some aspects of e-commerce can be
considered part of the on-demand economy, especially when they involve quick and immediate access to products or services.
For example, same-day or one-hour delivery services provided by certain e-commerce platforms can align with the on-
demand model.
• The PWC report has estimated that by 2025, on-demand applications will touch approximately $335 billion.
 PROS & CONS OF ON DEMAND ECONOMY
Pros:
Convenience: On-demand services provide instant
access to goods and services, offering convenience and
time-saving benefits for consumers.
Flexibility: For service providers in the on-demand
economy (like gig workers), there is often flexibility in
terms of work hours and locations, allowing individuals
to choose when and where they work.
Cost Savings: Consumers can potentially save money
by only paying for the services they need when they
need them, rather than maintaining ownership of
assets.
Job Opportunities: The on-demand economy creates
job opportunities for individuals seeking flexible work
arrangements, making it easier for people to enter the
workforce or earn extra income.
Innovation: On-demand platforms often leverage
technology to create innovative solutions to traditional
problems, fostering technological advancements.
Cons:
Job Insecurity: Gig workers in the on-demand economy
may face job insecurity, lacking the stability and benefits
that traditional employment provides.
Quality and Reliability Concerns: As the workforce in
the on-demand economy is often decentralized and not
subject to traditional quality control measures, there can
be concerns regarding the consistency and reliability of
services.
Regulatory Challenges: The on-demand economy has
faced regulatory challenges in many regions, with
concerns about issues such as worker rights, safety, and
fair business practices.
Dependency on Technology: The on-demand economy
relies heavily on technology platforms, and technical
issues or disruptions can impact service delivery and user
experience.
Potential for Exploitation: Some argue that certain on-
demand platforms may exploit workers by not providing
fair wages, benefits, or proper labor protections.
 INDUSTRIES DRIVING ON DEMAND ECONOMY

Healthcare:
• Telemedicine services allow patients to consult with healthcare providers remotely, often through video conferencing or
phone calls. This makes it easier for patients to access healthcare services without having to physically visit a healthcare
facility.
• Online pharmacies and home delivery services allow patients to order prescription medications online and have them
delivered to their homes, making it easier and more convenient for them to access the medications they need.
• An on-demand doctor service enables users to have consultations with medical professionals, typically a doctor, through an
application or web browser over the internet. This service allows users to consult with doctors from any location and at any
time.
• Online appointment scheduling is another service that is helping drive growth in the healthcare industry. This service is
accessible through online platforms such as apps and browsers and enables patients to schedule appointments with medical
professionals, including doctors and specialists.
• Virtual care and monitoring facilitates virtual care and monitoring of patients by allowing doctors to remotely track vital
signs and other health data using devices and sensors.
• Digital prescription service enables patients to receive prescriptions electronically, through email or mobile application. This
service offers convenience to patients as they don't need to visit a healthcare provider to obtain a prescription. It also helps in
minimizing errors and improves communication between healthcare providers.
 INDUSTRIES DRIVING ON DEMAND ECONOMY
Hyperlocal industry - refers to businesses and services that operate within a specific geographic area. These businesses and
services are able to offer highly targeted and personalized services to customers by leveraging their local knowledge and
resources.
• Food delivery allows consumers to order food from restaurants or other food establishments and have it delivered to their homes or
offices. The growth has been driven by the proliferation of mobile devices and high-speed internet access, the increased adoption of
online payment methods, and the rise of gig economy platforms like Uber Eats.
• The on-demand grocery delivery app allows consumers to order their groceries online and have them delivered to their homes or
offices. The increased adoption of online payment methods is one of the reasons for the growth of grocery delivery services.
• Fuel delivery provides a convenient and efficient way for consumers to access fuel for their vehicles. Many fuel delivery companies
offer services that allow customers to order fuel through a mobile app or website and have it delivered directly to their vehicles, either
at a specified location or to their home or office. This saves customers from the pain of waiting in never-ending queues at gas stations.
• On-demand car washing service facilitates customers who are short on time or just looking for a more convenient way to keep the
car clean.
• On-demand salon services apps allow people to access beauty services at their own convenience. This can be especially helpful for
those who don't have a lot of time to spare, as it allows them to take care of their grooming needs efficiently.
• Home services : There are many different categories within the home care industry, including repair and maintenance, home care and
design, health, wellness, and beauty, among others. The convenience and ease of accessing on-demand home services is a major
factor in their popularity.
• This laundry app allows people to easily schedule pickups for their dirty clothes and have them cleaned and delivered to their
doorstep at a convenient time. The laundry service will handle all the cleaning and ensure that fresh clothes are delivered to the
customer's doorstep within the scheduled time frame
• The professional services sector offers a wide range of services to consumers, including mechanics, carpenters, electricians, pest
control, household work, babysitting, plumbing, and specialized services such as software development and design.
 INDUSTRIES DRIVING ON DEMAND ECONOMY

eCommerce Industry:
• Social media platforms such as Instagram, Facebook, and Twitter have become popular among today's
youth, and businesses are taking advantage of this by using them as e-commerce platforms.
• Allowing customers to make direct purchases by clicking on posts on Instagram or Pinterest
• Utilizing live events on social media platforms like Facebook or TikTok to engage customers and drive sales
• Responding to customer queries and providing personalized recommendations on social media platforms
to increase sales
• With the rise of online retail apps, shopping for products and services has never been easier. Using popular
on-demand apps such as Amazon, Walmart and Flipkart, consumers can purchase a wide range of products,
such as clothing, electronics, and home goods, directly from the app.
• Ghostretail is a new concept that is getting wildly popular in the on-demand e-commerce industry.
Ghostretail's concept is to provide customers with a personalized shopping experience by connecting them
with product associates directly. Customers can now have a live co-shopping experience online, where they
can view products from every angle and compare them to other options.
 INDUSTRIES DRIVING ON DEMAND ECONOMY

Education:
• Online tutoring and academic coaching have been embraced as an effective and convenient
way for students to receive additional support. Many students find it more interactive and easy to
access
• Individuals can now easily access any books or resources they want with the help of digital
libraries, which make learning and reading more enjoyable, interactive, and simple. Users are no
longer restricted by location, time, or language when they use digital libraries, as they can access
and read books, magazines, and other materials from their homes. The ability to find and access
information quickly and easily is a major factor driving the growth of the on-demand economy.
• Online courses and certifications make education and skill development more accessible and
convenient for a larger population. The flexibility of online courses, which are accessible at any
time and from any location, makes it possible for individuals to acquire new knowledge and skills
while balancing their other responsibilities. Similarly, online certifications help open up new job
opportunities and aid in personal development.
 INDUSTRIES DRIVING ON DEMAND ECONOMY
Fitness Services:
• With virtual training and coaching, people can work out from the comfort of their own homes and at a time that suits them. This has made it
more convenient for individuals to achieve their health and fitness goals. Virtual training and coaching provide a personalized approach to fitness,
allowing people to exercise at their own pace and schedule.
• Mobile fitness app - With the widespread use of smartphones and internet access, people can now access a variety of fitness resources with just
one click. Apps such as Nike Training Club and obé Fitness offer an all-in-one solution for users, with features such as custom workout plans,
progress tracking, personalized recommendations, and integration with wearable devices. These features make it more likely for users to stick to
their fitness goals.
• Wearable technology integration - With the availability of devices such as fitness trackers, smartwatches, and heart rate monitors, individuals
can easily track and monitor their health and fitness progress. These wearable devices collect a wide range of data on an individual's physical
activity, sleep, and other health metrics, making it easier for them to manage their activities and overall health. Wearables such as the Apple
Watch are helping users take control of their health by tracking activities, counting calories, monitoring heart rate, and analyzing sleep patterns.
• Nutrition tracking and meal planning - These services offer a range of features such as tracking calorie intake, macronutrient tracking, and
meal planning to help users achieve their health and fitness goals. Users can input their dietary preferences, track their food intake, and monitor
their nutrition goals with the help of mobile apps. Lifesum and Carb Manager apps include diet plans, a large recipe library and motivation tools.
• Yoga and meditation - With the advent of on-demand platforms, such as apps and websites, accessing yoga and meditation services has become
more convenient. Whether you're looking to take a class, book a private session, or purchase an online course, these platforms make it simple to
find the right yoga or meditation service to suit your needs and schedule.
 INDUSTRIES DRIVING ON DEMAND ECONOMY

Transportation:
• E-hailing services - With the widespread use of smartphones and connected vehicles, individuals can now request a
ride at any time and from any location, making it easier for them to fit transportation into their busy lives. Uber and
Lyft have made it simple for people to request a ride, track the vehicle's location, and pay for the ride through their
apps. This has reduced the demand for traditional taxi services while making transportation more accessible and
affordable for many people.
• Car-sharing services - Individuals can use services such as Zipcar and Car2Go to reserve a car that's owned by a real
person via a mobile app, pick it up at a designated location, and return it to another designated location.
• Car rental companies such as Avis and Hertz provide rental services where individuals can rent a car for a short or
long period. Customers can easily reserve a car through an online platform or mobile app and then pick up and drop off
the vehicle at designated locations. These services offer a variety of car options, from economy cars to luxury cars, so
customers can choose the one that fits their needs and budget.
• Station-based mobility is an on-demand service, which refers to a transportation service where customers can rent a
vehicle, such as a bike, scooter, or electric vehicle, from a specific location and drop it off at different locations. It is a
flexible transportation option for people who may not have access to a personal vehicle or who prefer not to own one.
 INDUSTRIES DRIVING ON DEMAND ECONOMY

Travel:
• The availability of on-demand flight booking and management services has made it simpler for individuals
to plan their travel. Companies like Expedia, Kayak, and Orbitz have greatly influenced the on-demand
economy by providing users with the ability to search, compare, book, and pay for flights through their apps
or websites.
• Hotel and accommodation booking services - Through mobile apps and websites, these services enable
individuals to easily find, compare and book hotel rooms and other types of accommodations. The major
companies that provide such services are Booking.com, Expedia, and Hotels.com, offering a wide range of
options from budget-friendly to luxury accommodations.
• Travel insurance and protection companies offer coverage services for unforeseen events, such as trip
cancellations, medical issues, lost or stolen personal items, and other travel-related risks. The convenience of
being able to purchase coverage online makes it easy for travellers to secure insurance at any time and from
anywhere. Travellers can have peace of mind knowing that they are covered in the event of an emergency by
purchasing travel insurance and protection.
 INDUSTRIES DRIVING ON DEMAND ECONOMY

Logistics:
• Real-time package tracking - Due to the integration of advanced technology
such as RFID in logistic services, you can track the location and status of their
packages in real-time. Companies such as FedEx and UPS provide customers with
real-time information on the location of their packages as well as estimated
delivery times. Customers can then plan and organize their schedules accordingly,
ensuring they are available to receive their package when they arrive.
• A fleet management system helps companies keep track of things like how
much fuel their vehicles use, how long the engines are idle, how many hours their
drivers are working, and how efficient their routes are. It also helps with things
like staying compliant with laws and managing insurance costs. It uses
technology and software that provide on-demand information and helps make
the company's fleet of vehicles run more smoothly and efficiently.
 INDUSTRIES DRIVING ON DEMAND ECONOMY

Freelancing Service Industry:

• This industry includes freelancers, part-time workers, contractors, and day laborers
• The on-demand economy seems to be the best setting to provide a better work-life balance
because each employee has more control over the jobs they accept and the hours they are
available to work.
• Even big tech companies and startups are outsourcing their projects to freelancers and part-time
workers. Whether it’s technical or non-technical, all types of work are being outsourced by
employers who are not willing to hire a full-timer for short projects. With this, they save the costs
of hiring and providing facilities to hired employees.
• The on-demand economy connects employers and freelancers. As a result, the independent
contractors sign up for the apps and confirm that they are there to provide a service that comes
under their niche.
 INDUSTRIES DRIVING ON DEMAND ECONOMY

Entertainment Industry:
• Youtube, Netflix, Hotstar, etc., are a few of the services ruling in this sector. These
on-demand entertainment services come along with monthly or yearly
subscription plans. It allows users to watch, read, or listen to nearly anything they
want, whenever they want.
• The Internet is rapidly taking over all traditional entertainment mediums. Not
only did it take over the mediums through which audiences used to seek
entertainment, but it also offered and profitable way for the producers to
experiment with content on.