E-COMMERCE

MODULE-2

CONSUMER ORIENTED E-COMMERCE

E-commerce: a consumer oriented approach:

E-commerce, or electronic commerce, is the buying and selling of products or service over the
internet. As with any business, the success of an e-commerce venture ultimately depends on the
satisfaction of its customers. Therefore, taking a consumer orientated approach is crucial for the
success of an e-commerce business.

Ways to approach e-commerce from a consumer-oriented perspective:

1. User-friendly website: the website should be designed with the customer in mind, with
the clear and easy-to-use interface.
2. Product information: customers should be able to find all the information they need
about the products or services on offer, including detailed descriptions, specification, and
pricing.
3. Personalization: e-commerce business can use data analytics to personalize the shopping
experience for each customer.
4. Customer service: providing excellent customer service is essential for building trust
and loyalty with customers.
5. Secure payment options: customers need to feel secure when making purchases online.
6. Fast and reliable shipping: customers expect fast and reliable shipping, with real-time
tracking information. E-commerce business should have a robust shipping infrastructure
in place, with options for expedited shipping if necessary.
7. Returns and refunds: customers should have a clear understanding of the return policy,
including how to initiate returns and how refunds will be processed. E-commerce
business should make the process as easy and transparent as possible.

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Adopting a consumer –oriented approach in e-commerce can benefit business in several

ways:

1. Increased customer satisfaction: by prioritize the needs and preferences of

customers, business can provide a better shopping experience, leading to increased
customer satisfaction.
2. Improved brand reputation: providing excellent customer service and a seamless
shopping experience can help build a positive reputation for business, leading to
increased customer loyalty and word-of-mouth referrals.
3. Higher conversion rates: a user-friendly website, personalized recommendations,
and secure payment options can increase likelihood of customers completing their
purchases.
4. Reduced cart abandonment: by addressing customer concerns and offering clear
return policies businesses can reduce number of abandoned carts.
5. Competitive advantage: in today’s competitive e-commerce landscape, adopting a
consumer-oriented approach can help business stand out from their competitors and
attract and retain more customers.

E-RETAILING

E-retailing also known as electronic retailing refers to the sale of goods and services through the
internet.

This form of retail leverages online platforms to reach consumers directly, allowing them to
browse, select, and purchase products or service online.

E-Retailing features:

1. Online products catalogs: e-retailing display their products through online catalogs,
which include detailed product information, images, and sometimes videos.
2. Search and filter functions: consumers can quickly find products by using search bars
and filter options based on various attributes like price, brand, size, and color. This makes
the shopping experience more efficient and personalized.

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3. Customer reviews and ratings: e-retail platforms often include customer reviews and
ratings for products.
4. Shopping carts: shopping carts allow customers to select multiple item and review their
choice before making a purchase.
5. Secure payment gateway: this involves transactions over the internet, necessitating
secure payment gateway for processing payments.
6. Personalized shopping experiences: through the use of cookies and data analytics, e-
retailing can personalize the shopping experience for each visitor, recommending
products based on past searches, views, and purchases.
7. Order tracking: customers can track the status of their orders in real-time , from
processing to delivery
8. Mobile compatibility: with the increasing use of smart phones for online shopping, e-
retail sites are optimized for mobile devices, ensuring a seamless shopping experience
across all platforms.
9. Social media integration
10. Flexible return policies
11. Multichannel selling
12. Automated customer service

Advantages of E-retailing:

A. Convenience and accessibility : customers can shop from anywhere and at any time,
making it more convenient and accessible for busy or remote customers
B. Wide range of products and brands: e-retailers can offer a wider range of products and
brands than physical stores, as they are not limited by physical space.
C. Price comparison: e-retailers can offer price comparison options, allowing customers to
easily compare prices across different products and retailers.
D. Lower overhead costs: e-retailing requires lower overhead costs than traditional retailing,
as there is no need for physical stores or high staffing levels.
E. Global reach :

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Disadvantages of E-Retailing:

A. Lack of tangible experience: customers cannot touch, try on or examine products before
making a purchase, which may lead to uncertainty or dissatisfaction
B. Delayed gratification : customers have to wait for shipping or delivery, which may take
longer than the immediate gratification of buying in-store
C. Potential for fraud: E-retailing is susceptible to fraud and security breaches, as
sensitivity information such as credit card details may be vulnerable to theft.
D. Completion from other E-retailers: with the rise of E-commerce, the competition
between e-retailers has intensified, making it challenging for business to differentials
themselves.
E. Technical issues: e-retailing relies heavily on technology, which can lead to technical
issues such as website crashes or payment processing errors.

E-Retailing Components

1. Website or online storefront: the website or online storefront the virtual equivalent of a
physical retail store. Its where customers can browse products, make purchases, and
interact with the brand.
2. Product catalog: an online products catalog is a digital listing of all the products or
services offered by the e-retailer. Each listing typically includes product subscriptions,
specifications, prices, and images.
3. Shopping cart software: shopping cart software enables customers to select temporarily
store products they wish to purchase.
4. Payment processing system: a secure payment processing system is essential for
handling online transactions. It allows customers to pay for their purchase using this
methods
5. Order management system: this component tracks from receipt through fulfillment.
6. Customer relationship management: A CRM system helps e-retailing mange customer
interactions and data throughout the customer lifecycle.
7. Content management system: CMS allows E-retailing to create, manage, and modify
content on their website without needing specialized technical knowledge.

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8. Security features: Securities protect the website and its users from cyber threats.

E-RETALING BENEFITS

1. Wider reach: e-retailing allows business to reach a global audience, breaking

geographical barriers that physical stores cannot overcome. This increases the potential
customer base exponentially.
2. Lower costs: without the need for physical storefronts, e-retailers can save on rent,
utilities, and staffing costs, allowing them to either increase their margins or offer
competitive pricing.
3. Detailed analytics: online retail platforms can track user interactions in detail, providing
valuable data on customer behavior, performances, and purchasing patterns.
4. Open24/7: an e-retail store is never closed. This round the-clock operation enables
business to generate sales even outside of traditional shopping hours/.
5. Convenience: shoppers can browse and purchase products anytime, anywhere, without
the need to travel to a store.
6. Broader selection: e-retail platforms often offer a wider selection of products than
physical stores, including items that are rare or not available locally.
7. Price comparisons: consumers can easily compare prices and find the best deals across
different e-retail website, ensuring they get the best value for their money.
8. Access to reviews: online reviews and ratings provide valuable insights from other
customers, helping shoppers make informed decisions.
9. Easy returns: many e-retail offer hassle-free return policies, making it easier for
customers to return products if they’re not satisfied.

E-RETAILING MODELS:

1. Business to consumer (B2C): The B2C model is the most common form of e-retailing,
where businesses sell products or services directly to consumers over the internet.
2. Consumer to consumer (C2C): in the C2C model, consumer sells directly to other
consumers using third-party platforms that facilitate these transactions.

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3. Business to business (B2B): the B2B model involves transactions between businesses.
Companies use online platforms to buy and sell products or service from other
businesses. This model is used for sourcing materials, wholesale products, software as a
service and other corporate service.
4. Consumer to business (C2B): in the C2B model, individuals offer products or services
to business to businesses. This can include freelance work, crowd sourcing platforms, and
influencer marketing where companies pay consumers to market their products.
5. Business to government (B2G): the B2G model, also known as business to
administration (B2A), involves companies providing goods or services to government
agencies through online platforms.

KEY SUCCESS FACTORS IN E-RETAILING:

The success of e-retailing, or electronic retailing, is influences by various factors that contribute
to effective online operations and customer satisfaction.

Factors for e-retailing:

1. User-friendly website: a well-designed and user-friendly website is essential for e-

retailers. The website should be easy to navigate, have clear product descriptions and
images.
2. Mobile optimization: with the growing use of mobile devices, e-retailers need to ensure
their websites are optimized for mobile devices, such as smart phones and tablets.
3. Strong online presences: e-retailers should maintain strong online presences through
social media, search engine optimization, and other digital marketing strategies to attract
and engage customers.
4. Customer services: providing excellent customer service is critical for e-retailers to
build customer loyalty and gain repeat business.
5. Competitive pricing: e-retailers need to offer competitive pricing to remain completive
in the market.
6. Wide range of products: e-retailers should offer a wide range of products to appeal to
different customer segments and increase the likelihood of making a sale.

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7. Security and privacy : e-retailers must ensure the security and privacy of customer
information, including payment detail and personal information to build trust and
credibility with customers
8. Efficient supply chain: e-retailers should have an efficient supply chain to ensure timely
delivery and avoid stock outs or overstocking.
9. Data analytics
10. Innovation and adaptability

TRADITIONAL RETALING AND E-RETAILING:

Traditional retailing:

Traditional retailing refers to the practice of selling products or services through physical stores,
such as department stores, specialty shops and boutiques. It is a long-establishes method of
commerce that has been around for centuries.

Advantages:

1. Personalized customer service: customer can receive personalized assistance from sales
associates, who can provide recommendations, answer questions, and address concerns.
2. Tangible experience: customers can see, touch, and try on products before making a
purchase, allowing them to make a more informed decision.
3. Social experience: shopping in physical stores can be a social experience, allowing
customers to shop with friends or family and enjoy the atmosphere of the store.
4. Immediate gratification: customers can take the products home with them immediately,
rather than having to wait for shipping.
5. Brand recognition: physical stores can help build brand recognition and loyalty through
visual merchandising and customer services.

Disadvantage:

1. Limited geographic reach: physical stores are limited to their local customer base and
may not be accessible to customers in other locations.

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2. Limited operating hours: physical stores have fixed operating hours, which may not be
convenient for all customers.
3. Higher overhead costs: physical stores require high overhead costs, such as rent,
utilities, and staffing.
4. Limited products range: physical stores have limited space for inventory and product
display, which may restrict the range of products available for customers.
5. Competition from e-retailers: with the rise of e-commerce, traditional retailers face
increasing competition from online retailers, who offer convenience and accessibility to
customers.

Differences between Traditional Retailing and E-Retailing:

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E-SERVICES: Categories of E-Services:

E-services or electronic services refers to the delivery of services over the internet, enabling
consumers and businesses to execute transactions, access information, and communicate in a
virtual environment.

1. E-Government services: E-Government services involve the use of electronic means to

provide governmental services to citizens, businesses, and other government agencies.
These services can include tax filing, renewing licenses, voting, and accessing public
records.
2. E-business services: E-business encompasses a wide range of business activities
conducted online. This can include supply chain management inventory management,
business-to-business transactions, customer relationship management, and enterprise
resource planning.
3. E-Commerce service: E-commerce service facilitate the buying and selling of goods and
services over the internet.

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4. E-learning service: E-learning services deliver educational content and experiences

through digital platforms. This includes online courses, virtual classrooms, e-tutoring and
educational apps.
5. E-health services: E-health services provide health-related information, telemedicine,
electronic medical records, and health care services online.
6. E-banking services: E-banking or online banking, services allow customers to conduct
financial transactions via the internet.
7. E-entertainment services: E-entertainment services provide digital entertainment
content, such as music, movies, games, and virtual reality experience, accessible over the
internet.

E-SERVICES BENEFITS:

A. Convenience: E-services are accessible 24/7 from anywhere with an internet connection,
eliminating the need to physically visit locations during specific hours.
B. Increased efficiency: E-services streamline processes, reducing the time and resources
required to complete transactions.
C. Cost reduction: by moving services online, organizations can significantly reduce
operational costs, including staffing, physical infrastructure, and paper-based processes.
D. Wider access: the internet’s global reach makes e-services accessible to a broader
audience, including individuals in remote or underserved regions.
E. Personalization: e-service can be tailored to meet individual user preferences and needs,
based on their behavior and interactions.
F. Improved customer service: many e-services include features such as live chat, AI-
powered boats, and comprehensive FAs, which provide immediate assistance and
support.
G. Data collection and analysis: e-service enables the collection of vast amounts of data,
which can be analyzed to gain insights into user behavior, preferences and trends.
H. Environmental benefits: by reduce the need for physical materials, travel, and
infrastructure, e-service have a lower environmental impact compared to traditional
service delivery methods.

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Web-enabled e-services:

Web-enabled e-services over the internet using web technologies, allowing users to access and
utilize these services through their computers, smart phones, or other connected devices.

Aspects /characteristics of web-enabled e-services:

1. Accessibility: service is accessible from anywhere at any time, provided there is internet
connectivity.
2. Interactivity: Web-enabled e-services offer interactive experiences, allowing users to
engage dynamically with the service providers.
3. Integration: many, web-enabled services can integrate with other services and systems,
enhancing their functionality and providing a seamless experience for users.
4. Scalability: service can be scaled up or down based on demand without the need for
significant physical infrastructure changes.

Impact of web-enabled E-services:

 Economic growth
 Efficiency improvements
 Enhanced customer experience
 Digital inclusion
 Environmental benefits

Web-enable e-services benefits:

1. Enhanced accessibility: web-enable e-services are accessible from anywhere at any time
provided there is an internet connection.
2. Increased convenience: user can access services online without the need to physically
visit offices or stores saving time and effort.
3. Improved efficiency and speed: web-enabled e-service streamlined processes,
automating tasks that would traditionally require manual intervention and thus reducing
processing times.

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4. Cost reduction: moving services online can significantly lower operational costs service
providers by reducing the need for physical infrastructure and manual processes.
5. Personalization: the digital nature of web-enabled e-services allows for the collection
and analysis of user data, enabling service providers to tailor their offerings to individual
user preferences and behaviors.
6. Environmental sustainability: by reducing the need for paper-based processes and
physical travel, web-enabled e-services contribute to environmental sustainability efforts.
7. Global reach
8. Enhanced communication and collaboration
9. Data-driven insights

Matchmaking e-services:

Matchmaking e-service is digital platforms that employee algorithms and data analysis to
connect individuals or organizations based on specified criteria, aiming to establish various types
of relationships or partnerships.

Types of matching e-services:

1. Dating and social networking: perhaps the most recognized form of matchmaking,
dating websites and apps connect individuals looking for romantic relationships.
2. Professional networking: these platforms connect professionals with potential
employers, mentors, or collaborators within their industry.
3. Business partnership: matchmaking in the business context involves connecting
business with potential partners, suppliers, or customers.
4. Peer support and community building: some matchmaking e-services focus on
connecting individuals seeking support or advice with peers in similar situations.
5. Academic and research collaborations: academic networking platforms match
researchers, scholars, and students based on research interests, facilitating collaboration
on projects, papers, or studies.

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6. Event networking: these services are designed to connect attendees at conferences, trade
shows, or events based on their professional interests, facilitating meaningful connections
and discussions.
7. Niche matchmaking services: some matching services target specific demographics or
interests.

Features /benefits of matchmaking e-services:

A. Personalized recommendations: algorithms analyze user data to provide tailored match

suggestions.
B. Efficiency: saves user time and effort in finding compatible matches.
C. Expand opportunities: broadens the pool of potential matches beyond geographical and
social circles.
D. Privacy and security: many platform measures to protect user data and privacy.
E. Communication tools: integrated messaging and communication features facilitate
interaction between matches.

Information selling on the web:

Information selling on the refers to the digital commerce practice of creating, marketing, and
distributing information-based products or service online.

Forms of information selling on the web:

1. E-books: authors can write and publish electronic books covering a wide range of topics.
Platforms like Amazon kindle direct publishing enable writers to self-publish and sell
their books digitally.
2. Online courses: educational content creators can develop and sell online courses on
platforms like udemy, courser, or teachable.
3. Webinars and workshops: hosting webinars or virtual workshops on specific subjects
and charging participants for access is a popular way to sell information.
4. Membership sites: content creators can create exclusive content or a community and
charge a recruiting fee for access.

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5. Subscription newsletters: individuals with specialized knowledge can offer subscription

–based newsletter, providing subscribers with regular updates, insights, or exclusive
content in exchange for a recurring fee.
6. Digital downloads: creators can sell digital files such as templates, guides or pintables
directly from their websites or through online marketplaces like easy.
7. Consulting and coaching services
8. Stock photography or videos

E-entertainment:

E-entertainment refers to forms of leisure and amusement activities that are facilitated by digital
technology and accessed via electronic devices such as computer, gaming, consoles, smart
phones, and tablets.

Role of E-entertainment:

1. Pay and watch culture: the e-commerce is redefining the entertainment sector. people
are finding entertainment way better than it was years back. The people are now, paying
to watch digital channels or get for entertainment purpose.
2. Marketing and promotion: E-commerce is a new means to sell entertainment. For the
gurus in entertainment, this is a bonus as it presents new ways to sell. One can create
series and movies then collaborate with on-demand streaming providers to have the
content reach audience.
3. Connect to viewers: it gives a new mode of connection with viewers and users of
entertainment data. There was a time when reputable brands and business cooperated
with YouTube and social media influencers to interact with their customers through
various channels.
4. Earn from ads: e-commerce provides the entertainment sector with a new means of
earning ads.
5. New method of purchase and distribution: due to safe e-commerce environment and
digitalization of content, the entertainment industry has new face now.
6. Movie ticket booking: the different payment solutions are used by different companies.

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Major forms of e-entertainment:

Video games
Streaming service
Music streaming
E-book and digital publishing
Social media and content creation platforms
E-sports

Challenges of e-entertainment:

 Content management censorship

 Privacy and data protection
 IPR
 Addiction and mental health
 Misinformation and Disinformation
 Impact on children and young people

Auctions and other specialized e-service:

Auction service involve the buying and selling of goods or services through a competition
bidding process.

Auction and other specialized e-services represent a significant segment of the digital economy,
providing platforms for the exchange of goods, services and information in innovative and
efficient ways.

Features:

 Global reach
 Convenience
 Diverse inventory
 Price discovery

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Specialized e-service:

Beyond auctions, the digital landscape is rife with specialized e-service that cater to specific
sectors or interests

1. E-learning platforms
2. Freelance marketplace
3. Crowd funding platforms
4. Digital art and NFT marketplaces
5. Health and wellness apps

Types of auction services:

1. Traditional auction: these are live in person auctions where participants gather at a
physical location, and auctioneer facilities the bidding process.
2. Online auction: platforms like eBay, heritage auctions, to have transformed the auction
industry by bringing the process to the internet.
3. Reverse auction: in a reveres auction, buyers post their requirement, and seller compete
to provide the best bid.
4. Silent auction: Silent auction typically occur at events or fundraisers.
5. Dutch auction : the auctioneer starts with high asking price and gradually lowers it until
a bidder accepts
6. Penny auctions
7. Government auctions
8. Art auction
9. Real estate auction

Business to business electronic commerce:

B2B electronic commerce refers to the online transactions and interactions between businesses,
unlike business-to-consumer e-commerce, which targets individual’s consumers, B2B e-
commerce focuses on supplying products and services directly between companies.

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Characteristics of B2B e-commerce:

1. Complex transactions: B2B transactions are often more complex than B2C transactions,
involving larger volumes, higher values, and extended negotiations.
2. Longer sales cycles: the decision-making process in B2B transactions typically involves
multiple stakeholders and can take much longer than B2C sales.
3. Personalized relationships: despite the digital nature of e-commerce, B2B relationships
often require a high degree of personalization, with tailored pricing, products, and
services based on long-term partnership.
4. Supply chain integration: B2B e-commerce platforms frequently integrate directly with
a company’s supply chain management systems, allowing for real-time inventory
management, order processing, and logistics planning.
5. Volume –based pricing: pricing in B2B transactions can vary significantly based on the
volume of the order, with discounts and negotiations common.

Types of B2B E-commerce models:

A. Supplier-oriented: these platforms are operated by suppliers aiming to gather a large

number of buyers. They help supplier manage their catalogue, orders, and customer’s
relationships efficiently.
B. Buyer-oriented: managed by buyers these platforms invite suppliers to bid on business
tenders. They aim to streamline procurement and get the best prices.
C. Intermediary-oriented: these are third-party platforms that facilitate B2B transactions
between multiple buyers and sellers.

Advantages of B2B E-commerce:

 Increased reach: companies can reach a global supplier and buyer base, expanding
their market presence.
 Operational efficiency: automating sales and procurement processes reduces manual
errors and operational costs.
 Improved customer service: digital platforms provide better data on customer needs
and behavior, allowing businesses to tailor their offering.

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 Data-driven decision making: B2B platforms offer rich data analytics, enabling
businesses to make informed decisions about inventory, pricing, and market trends.

Challenges in B2B E-commerce:

 Integration complexity: integrating e-commerce platforms with existing ERP and CRM
systems can be challenging.
 Security and trust: ensuring the security of transactions and building trust between
businesses that may never have personal interactions is critical.
 Regulatory compliance: B2B E-commerce must navigate complex regulatory
environment, especially in international trade.
 Increased adoption of AI and machine learning: for predictive analytics, personalized
customer experiences, and intelligent automation.

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