Courses
Courses for Kids
Free study material
Free LIVE classes
More

E-Commerce - New Era for Business

VSAT 2023


E-commerce


E-commerce


Scope of E-Business 

Explanation of the scope of e-Business can be listed as hereunder:

  • There are a large number of people involved in e-commerce, such as the transporter, seller, buyer, intermediary, delivery agency and many more such organisations, which provide a huge base of employment to the various sections of society.

  • It promotes digitalisation not only in terms of the selling of goods but due to the availability of various modes of payment such as phone pe, Paytm, wallet and many such agencies.

  • The database is integrated from a centralised system. Hence there is a quick update of the data, which is how faster transactions are processed and reach the customers on time.


Online Shopping


Online Shopping


Difference between the E-business and Traditional Business

S.No.

Basis

Traditional Business

E-Business

1.

Meaning

Traditional business includes the processing of transactions of business i.e. buying and selling of goods which are manual and no use of the internet is involved in it.

E-business is the new form of interaction between sellers and buyers where they meet electronically and process commercial transactions.

2.

Location

The location of traditional business is the marketplace. 

The location of business for the e-business is the internet 

3.

Transaction 

processing

Manual

Internet

4.

Availability of the marketplace

It has a fixed time for opening and closing

Anytime and anywhere

5.

Delivery of goods

Instantly

It takes time to reach the consumer

6.

Business Scope

Limited to a local area or a town or a city

Worldwide reach


Directions for the E-Business 

There are 4 kinds of direction of E-business

  1. B2B Commerce (Business-to-Business)

In this case, the business provides services or provides manufactured goods to other businesses in order to generate revenue


  1. B2C Commerce (Business-to-Consumer)

B2C commerce directly serves the final consumers by delivering goods directly to the final consumers and eliminating the intermediaries.


  1. B2G Commerce (Business-to-Government)

Here the business enterprise provides goods either to the central government or state government or some local authorities. They may also be provided to the government corporations in the case of B2G Commerce.


  1. C2C Commerce (Consumer-to-Consumer)

Sometimes, one consumer sells goods to another consumer in order to generate income in the form of brokerage or commission. Such a type of direction is known as C2C commerce.


Directions of E-business


Directions of E-Business


Case Study

Vishal has recently started his business. His friend Nishad insists on him selling goods via an e-commerce platform, but Vishal refuses to do so. So in favour of Nishad, enlist some benefits of e-commerce.


Ans: The benefits available to Vishal are as under

  1. It attracts a large customer base from anywhere in the world.

  2. It brings uniformity to scaled business

  3. The entry is very easier into the e-commerce business

  4. Elimination of time delays in respect of payments and in delivery of goods


Conclusion

E-commerce has eased the life of humans, it now becomes just a click and then done. There is a need to shift every enterprise on e-commerce to beat the competition. Anytime and anywhere is the most important keynote for e-commerce.

FAQs on E-Commerce - New Era for Business

1. List the illustration of the e-commerce transactions

Various steps in e-commerce transactions are as follows.

Step 1Either download the app or go to the website of the e-commerce platform of your choice and login it

Step 2: After login, choose the type of product, then the product which the user wants to buy.

Step 3: Then choose the online payment and confirm all the details of the user

Step 4: After proceeding for payment choose the payment gateway and enter the relevant payment details and then make the payment

Step 5: Save the acknowledgment details of goods purchased or either trace it from the e-commerce website of e-commerce.

2. List the benefits of e-commerce to consumers.

The benefits of e-commerce to the consumers are as follows:

  1. Anytime and anywhere, the consumer can buy goods of his own choice.

  2. Various deals and other incentives are available to the consumer, which reduces the cost of purchased goods.

  3. On e-commerce websites, reviews and ratings are also available in order to choose whether the goods are fit for the consumption of a consumer or not.

  4. Due to the wide variety of options available in the market, it is easier for the consumer to crack the best deals available by comparison from various e-commerce websites.

3. List the components of the e-commerce vendors and laws applicable to e-commerce.

Components of e-commerce vendors are as follows:

  • Suppliers and supply chain management

  • Warehouse operations

  • Shipping and returns

  • E-commerce catalogue and product display

  • Marketing and loyalty programs

  • Showroom and offline purchase 

  • Different ordering methods

  • Guarantee

  • Privacy policy

  • Security


Laws applicable on e-commerce business are as follows

  • Indian contract act 1872

  • Labour Laws

  • Indian copyright act 1957

  • The patents act 1970

  • Goods and services tax

  • The income tax act 1961

  • Information technology act 2000

  • Consumer protection act 2019

  • Companies Act 2013

Comment