Definition of E-commerce

E-commerce, also known as electronic commerce, is a process by which businesses and

consumers sell and buy goods and services through an electronic medium. E-commerce is
often used to refer to the sale of physical products online, but it can also describe any kind
of commercial transaction that is facilitated through the internet.

Types of E-commerce
There are many types of electronic commerce. Generally, when we think of E-commerce,
we think of an online commercial transaction between a supplier and a client. While this
idea is correct, it can actually divide E-commerce into four major types, all with different
characteristics.
Business-to-Consumer (B2C):
In this business, a business sells products or services directly to the consumer on the
Internet. For example, you buy anything from Amazon, Flipkart or any other site.
Business-to-Business (B2B):
Here companies sell products or services to other companies on the Internet. Companies
doing business with each other such as manufacturers selling to distributors and
wholesalers selling to retailers. Examples of B2B is IndiaMart.com, TradeIndia.com,
Amazon Business, etc.
Consumer-to-Consumer (C2C):
When the consumer sells his product to another consumer on the Internet, this transaction
is called Consumer-to-Consumer (C2C). In this, a consumer sells his property like his old
car, bike directly to the other consumer through the internet.
Generally, these transactions are done through third parties, which provide online
platforms. For this, many companies like Olx, Quikr charge the consumer for service or
provide free service.
Consumer-to-Business (C2B):
In this model the consumer sells their products and services to businesses. The best
examples for this model are the job portals. In India websites like Monster.com,
TimesJobs.com etc. can be put in this category. Here the consumer, the job seeker, puts her
resume on the website in order to get a job offer from employers.

Major Players in E-commerce in India

Amazon
Amazon is an American web based business organization with base camp in Washington
and it is a B2C type. Jeff Bezos established the organization on July 5, 1994. It is the
biggest web retailer as far as turnover and market capitalization overall it’s come to
number 1 in Top Internet business organizations in India.
Flipkart
Flipkart is the national leader of e-commerce in India. Founded in 2007, Flipkart was
initially selling books, before it expanded to other popular categories including mobile
phones, electronics, fashion, and lifestyle products. In 2018, Walmart, one of the largest
American companies and leading platforms of e-commerce in the US, acquired 77% of
Flipkart for 16 Billion US $.
IndiaMart
Founded in 1999, IndiaMart is an online B2B marketplace for Indian companies. A
competitor of Alibaba, IndiaMart allows manufacturers, suppliers, and exporters to
propose their products directly through the platform to get contacted by its visitors.
IndiaMart was India's biggest online commercial centre until 2012 and is the second-
biggest B2B commercial centre on the planet after Alibaba.
Myntra
Myntra is a specialized online fashion, home and lifestyle retailer in India. Launched in
2007, Myntra has developed a strong online presence, especially through its mobile
applications. Acquired by the Indian e-commerce company Flipkart in 2014, Myntra has
consolidated its presence in fashion e-commerce through the acquisition of its competitor
Jabong.com.
Snapdeal
Snapdeal is a diversified online shopping platform, offering products ranging from
electronics and fashion to home and appliances. Founded in 2010, Snapdeal has received
several rounds of funding from famous investors, including Alibaba Group, Foxconn, and
Softbank, to fuel its growth and compete for the top spots in India’s e-commerce
landscape.
Firstcry
A specialized e-commerce platform for baby care products, kids’ clothes, and toys,
Firstcry is a pioneer of e-commerce in India offering products from thousands of brands.
Having expanded into franchised stores, Firstcry now also offers its products through tens
of stores across numerous Indian cities.
1mg
1mg is an online pharmacy and healthcare information website. Founded in 2015, 1mg
provides online consultations, lab tests and a mine of medical information in order to better
serve the Indian market and population’s need, and be able to direct its visitors to the right
medicine or product from its shop.
BookMyShow
BookMyShow is the leading show ticketing portal and retailer in India. Since its launch in
2007, BookMyShow has expanded to sell millions of tickets every month for movies,
sports events, plays, and more. 
Advantages of E-commerce to Customers
Lower Prices
The lower costs of running an e-commerce store versus a physical store translate to cost
savings for the consumer. This is one of the biggest e-commerce advantages. Online prices
are typically lower than traditional store prices, and e-commerce sites are able to offer
more discounts and promotions that are easier to claim.
Convenient and safe
Shopping when you want from where you want is far preferable (and a whole lot safer)
than heading out in this COVID-infested reality we’re now living in. Coronavirus aside,
there’s also something to be said about shopping from your bedroom, without having to
venture out, wait in lines, battle cold weather, and all the other challenges that go along
with consumerism.
Wide product variety
In the global marketplace that is the internet, consumers can buy electronics from China,
books from England, clothes from Paris, and good old US products all from the comfort of
home. The width and depth of products sold online are unbeatable.
More informed decision-making
Information is literally at your fingertips when buying online, including:
 Reviews from real customers – this is probably the most effective 
 Product descriptions
 Usage videos
 Product guides
 Social validation
Comparison shopping is another one of the top benefits of e-commerce to consumers, who
can easily compare products, brands, and websites with even side-by-side comparison
possible. Many comparison shopping sites exist with the sole purpose of enabling
consumers to compare products side-by-side based on price and discount metrics.
Saves times
In an age where time is a rare commodity, shopping online provides massive time savings
to the consumer. Since 63% of consumers start their shopping journey online, it makes
sense to be able to buy where you already are. No need to head out, shop in-store, wait in
line and then journey back home when you can access a greater product variety at a lower
price from the comfort of home.
Disadvantages of E-commerce to Customers
Lack of touch and feel
India consumer has mindset that they wanted to touch products before buy. Lack of touch-
feel-try creates concerns over the quality of the product on offer. Online shopping is not
quite suitable for clothes as the customers cannot try them on.
Lack of interactivity in online shopping
Physical stores allow price negotiations between buyers and the seller. The show room
sales attendant representatives provide personal attention to customers and help them in
purchasing goods.
Lack of shopping experience
The traditional shopping exercise provides lot of fun in the form of show-room
atmosphere, smart sales attendants, scent and sounds that cannot be experienced through a
website. Indians generally enjoy shopping. Consumers look forward to it as an opportunity
to go out and shop.
Lack of close examination in online shopping
A customer has to buy a product without seeing actually how it looks like. Customers may
click and buy some product that is not really required by them. The electronic images of a
product are sometimes misleading. The colour, appearance in real may not match with the
electronic images.

Advantages of E-commerce to Businesses

Lower costs
Going online eradicates the need for a physical storefront, meaning lower fixed costs for
the business. Also, since most of e-commerce is automated, fewer staff members are
required. Marketing an e-commerce store, using Google AdWords, e-commerce Facebook
advertising and social media marketing for example, is much more cost effective than
promoting offline These cost savings translate to lower prices for the consumer and more
sales for the business. This is one of the key benefits of e-commerce for businesses.
Customer data
Selling online gives the retailer access to a goldmine of customer data that is just not
accessible through brick-and-mortar retailing. 
Not only do online consumers typically provide their name, email address and phone
number when checking out or registering on a site, but they also provide a wealth of
consumer behaviour and demographic data, available through Google Analytics, that can
help online retailers optimize the consumer journey and market more effectively and
accurately.
Wider customer base 
With e-commerce, geographical boundaries become inconsequential. You could sell your
products to online shoppers across the country or even across the globe. You’re not limited
to shoppers in your physical location.
Open always
When you sell online, your business is open 24/7/365. Even though your customer support
may be sleeping, automation ensures that the rest of the sales process is always flowing
and consumers can buy on any day, at any time.
Easier to scale up
Scaling up or growing a physical store requires more floor space (and the expense that
comes with it!), employees and shelf space. In contrast, it’s very simple to grow an online
store, which is one of the less obvious benefits of e-commerce for businesses.
All you need is more inventory, a few digital tweaks and possibly more storage space,
which is far less costly than storefront space. Being online also eliminates the need for
opening a new store in another location as you’re already within the reach of a global
marketplace.

Disadvantages of E-commerce to Businesses

Lack of Tactile Experience
No matter how well an image or a video is made, consumers still can't touch and feel a
product. It's not an easy feat to deliver a brand experience, which could often include the
sense of touch, smell, taste, and sound, through the two-dimensionality of a screen.
Price and Product Comparison
With online shopping, consumers can compare many products and find the lowest price.
This forces many merchants to compete on price and reduce their profit margin.
Credit Card Fraud
Credit card fraud is a real and growing problem for online businesses. It can lead to
chargebacks that result in the loss of revenue, penalties, and bad reputation.
Customers Have Concerns About Privacy and Security
Many consumers are still wary about giving out personal information especially credit and
debit cards to online sources. The fact is, instances of fraud has grown with the growth of
the ecommerce sector, so online stores have to have secure systems, encrypted payment
software, and other safeguards against online fraud.