ARPIT Course in COMMERCE -

Financial Markets and Emerging Business Models

Module 3.5

Dr. Asha E. Thomas Assistant Professor

St. Paul’s College, Kalamassery, Kerala asha@stpauls.ac.in

ELECTRONIC COMMERCE AS AN EMERGING BUSINESS MODEL

In this module:

1. Introduction to Electronic Commerce (E- Commerce)

2. Architecture of E-Commerce System

3. How electronic payment schemes work in E-

Commerce?

4. The challenges faced by E-Commerce industry

E-Commerce

Primarily refers to the purchases made on the internet through an online store

Paperless exchange of business information using any of the following ways:

Electronic data exchange

Electronic mail

Electronic bulletin boards

Electronic fund transfer

History of E-Commerce Business

1970s - the process of sharing electronic documents and arranging sales

1990s - few commercial websites

1995 - Introduction of Amazon and e Bay

Types of E- Payments

Credit card payments Electronic cheque payments Micro or small payments Electronic cash payments

E-Commerce Business Models

Business To Business (B2B)

Business To Consumer (B2C)

Consumer To Consumer (C2C)

Consumer To Business (C2B)

Business To Government ( B2G)

Government To Business (G2B)

Government To Citizen (G2C)

Business Models

https://www.google.com/search?q=e+commerce+b+to+b+business+model&sxsrf=ACYBGNS252rgX1aP3d9BqliJys-Uu-VWGg:1573514154032&source=lnms&tbm=isch&sa=X&ved=0ahUKEwi-18yBpePlAhWJsY8KHbRuAbYQ_AUIEygC&biw=1536&bih=754#imgrc=P984gwJxrhaqOM

Business Models

https://www.google.com/search?q=e+commerce+b+to+b+business+model&sxsrf=ACYBGNS252rgX1aP3d9BqliJys-Uu-VWGg:1573514154032&source=lnms&tbm=isch&sa=X&ved=0ahUKEwi-18yBpePlAhWJsY8KHbRuAbYQ_AUIEygC&biw=1536&bih=754#imgrc=P984gwJxrhaqOM

Marketing Process in E-Commerce Trade

Buyers entering the market through World Wide Web(WWW)

Selecting the products

Filling out the purchase orders

Purchase order sent to the seller

Seller confirming the order

Payment stage

Marketing Process in E-Commerce Trade (Contd.)

Payment information sent to the bank

Credit check

Payment made

Delivery of the product

Value creation by E-Commerce Business Models

Low cost of providing detailed content Effective asynchronous communication Flexibility Made available to many people Cost savings on distribution

Potential for using consumer behaviour to

suggest future purchases Economies of centralised inventories

Operating Models of E-Commerce Business

Market Place Model Aggregator Model Inventory Model

Aggregator Model

Aggregator

SELL

ERS BUYERS

E-Commerce Pricing Strategies

1. Cost-plus pricing

2. Target return pricing

3. Value-based pricing

4. Competitive pricing

5. Lead generation pricing

Challenges for E-Commerce Industry

Inadequate infrastructure

Low digital literacy

Lack of clarity in regulations

Counterfeit goods

Cyber security

Traditional payment system

Higher goods return ratio

Aggressive pricing policies