MODULE-II E-Commerce
MODULE-II E-Commerce
WEBSITE
A website it a combination or Set of webpages that are accessible to everyone over the internet
using a web browser. Web page is what we can see on the screen when we enter the web url
and click on the link. A webpage is containing different type of information, that may vary. For
an example a webpage of an e-commerce company may contain home page, category of
products, e-cart, customer account details (if created), images of product and services, FAQ,
consumer policy, contact us etc.
A website is mainly containing home page that define the information about the website and
the services or product of the websites. The home page may consist of a single or more than
one page that may extends to tens or hundreds. Generally, all the pages of a websites are linked
to each other within the homepage of a website. On the home page, you can click to the link to
the other pages to access other sections of the site.
1) 24/7 Online Presence: One of the major reasons of having a website is that it is accessible
to anyone, anywhere, anytime. Even during non-business hours, customers can access your
website and avail your services or get the information they need, which is one of the key
elements in the importance of a website in business. The website is always at work to ensure
that customers who come in are always served in the comfort of their homes.
2) 24/7 Customer Support: Providing customer support is a tough job for any business.
However, providing customer support online is easier and more cost-efficient than hiring
personnel to provide support. This is where the importance of having a website becomes
clear as customer support through a website can be provided in various ways:
• FAQs – This is the most commonly used medium. All the frequent customer queries
are answered on the website, saving your time and resources, while also providing
precise and relevant information to customers.
• Chatbots – Chatbots on websites also do the job of addressing frequent customer
queries through template answers. Chatbots can also provide users with many other
important pieces of information like signing-up procedures, information about
services/products, and so on.
3) Information Exchange: Over 50% of the customers expect any brand or business to have
an online presence where they can access their services. One of the most captivating aspects
of a website is how easy it makes information accessible to customers. At its core, a website
is nothing but a medium to communicate with customers and to provide them with
information and resources. Here are a few ways in which websites help in exchanging
information:
• Advertisements that update customers about the latest offers on products and services
• Newsletters that update customers about any upcoming events and news
• Contact forms that invite enquiries or requests from customers
4) Establish Credibility and Build Trust: Just like in the old days, when customers expected
businesses to have contact numbers and addresses mentioned in their information brochure,
customers nowadays expect businesses to have a website or online presence. This is a
crucial first step in establishing trust. From this perspective, for a business, a website is
highly important. To take it a bit further, if a business’s website is superlative (excellent)
in its features and navigation, customers are more inclined to trust the business and avail
of their services. Websites are an essential tool for businesses to establish their credibility
and build trust with their customers. Chances are there are several providers offering a
similar service to yours. One way you can stand out is by having a website that looks good
and clearly communicates quality information to your consumers. Without a website,
people may question your legitimacy as a business. Having a website is an opportunity to
make a great first impression and give people comfort that you’re a real businessx.
5) Professional Web Design: Website visitors have no reason to stay on any Web page unless
they’re tempted to. Visitors can get bored very easily and expect something unique to
capture their interest whenever they’re visiting any website. Hence, it is crucial that
businesses build their websites with immaculate (perfect) design and architecture so that
customers are offered exceptional features and convenient navigation. This will encourage
more visitors to take a peek at your website, and potentially buy from your business.
6) Sales: The accessibility of your business grows exponentially with a website, as it can be
accessed from any corner of the world. Hence, websites help businesses break geographical
barriers and significantly increase their sales.
7) Revenue: There is no limit to the revenue that could be generated by your website. If the
reach of your website can cross the borders, the revenue can reach sky high. All you need
to do is optimise (fully perfect, functional, or effective as possible) your site and make sure
that your audience find you when they are looking for you. Besides that, you can also give
some of your digital space on your website for display ads. Let’s say your site is about
reviewing or selling mobile phones. You can give some of your digital space on your
website to display ads relevant to these phones. This is just an additional way with which
you can generate more revenue.
8) Cost-Effective: A physical store requires a massive investment for owning or renting a
commercial space. Besides that, furniture, interiors, and employees are also some additional
expenses that cannot be ignored. On the other hand, creating a website is very easy and
cost-effective. With CMS like WordPress, Shopify, or Wix, one can easily create a website
with little or no help. Only if you are setting up a complex website like E-commerce or one
with thousands of pages, or complex filters and facets, then you might need the help of
experts. However, the cost can still be minimal in comparison with setting up the physical
store.
9) Visibility: Websites can become your online store, office, or showroom at a very minimal
cost. A physical store will have visibility within a particular radius of its location,
depending on its type. However, when it comes to a business with an online presence, the
visibility or the reach has no bound. Users from any part of the world can access the
website.
10) Marketing: Marketing plays a crucial role in the expansion of any business. Having a
website makes it pretty easy to spread a word about your business when people are
searching for them. Let us say your offline business is doing well, and now you want to
expand it online If you have a website, you can make it appear on a Search Engine whenever
people search using a keyword. There are two types of marketing method that makes this
possible. One is Search Engine Optimization (SEO), and the second is Search Engine
Marketing (SEM) i.e. Pay Click (PPC). Besides SEO and PPC, you can also market your
website using social media, display Ads, and other techniques. You can set up a target
audience of your choice and use demographics like age, gender, location, and more for the
same. You can go as broad as you want or as niche as you wish. A digital marketing agency
with proven success records helps you create and execute a marketing plan for your
business that would drive relevant users to your website.
11) Portfolio: Do not limit your website for just selling products or services. Create a portfolio
that shows how well you are doing in the business. Let us say your business is into travel
and tourism. You can create a video portfolio of a family that shows their overall experience
from booking tickets to taking trip pictures all the fun. You can ask them to share their
feedback in a video format and add it to the portfolio video. Such portfolios help build the
trust of people into your business. Having a website has become crucial in this digital age.
A business with no website loses multiple opportunities that can come online. Apart from
these essential benefits, a website has to offer, it also helps in numerous other ways. For
example, a website can provide a map or directions to their business locations or offices. If
someone wants to know about a business at their convenient hour, a website can help them
with the same since it is accessible at any time. A well designed and engaging website can
strengthen the brand image. To become a successful business person, you must have a
professional website.
12) Growth Opportunity: A website can act as a company’s portfolio or resume. This can
prove to be beneficial for businesses as the website can act as a reference for potential
investors in which they can be acquainted with your services, what you have achieved so
far, and what your plans for the future are as a business.
13) Attract Organic Traffic: If you have developed an effective website using various search
engine optimization techniques, there are very high chances your website will rank well in
the Google search results. Ranking high in the search results will ensure that when people
search online for a product or service similar to yours, they will be able to view your website
and will visit it to get more information. This will give you an opportunity to increase your
customer base..
14) Updates And Announcements: A website is accessible 24/7, you can post regular updates
and announcements on it and customers can be notified easily. It is the easiest way to keep
the customers updated about what the business is doing and what it plans for the future.
This is a great way to remain connected with your customers.
15) Improve Customer Experience: Businesses frequently receive calls from prospective or
existing customers to inquire about simple questions like the address or hours of operation
etc. Many times, you or your staff may not be able to attend and reply to all calls, this may
leave a customer unhappy and you make lose a prospect. Having to answer so many calls
can also affect the productivity of the staff as a lot of time is lost on attending calls. Having
a website can reduce the number of calls received and also improve the productivity of the
employees. A well-designed website can help customers to find useful information easily
without calling. Easy access to information can boost customer experience.
16) Boost word-of-mouth marketing: A website offers a great incentive for customers to
share your company with others and thus naturally boost your word-of-mouth marketing.
If a customer wants to recommend your products, they can simply link them to their friends.
These functions make the process of recommendation much faster – and thus decrease the
time it takes someone new to become a customer. In turn, this results in acquiring customers
faster – and at an ever-accelerating rate.
BENEFITS OF WEBSITE
Internet Protocol or IP is a set of requirements for addressing and routing data on the internet. It allows devices to contact each other.
HTTP and HTTPS are forms of IP
SLD – Second Level Domain
TLD – Top Level Domain
https://www.youtube.com/watch?v=miSSi0lEcr8&list=PLkD5HZpxLQGgsx_-WB4SMn_A2hUC85qL5&index=2
Here are some tips to help you pick the perfect domain name:
• Relevance: Ensure that your domain name reflects your website’s content or purpose. If
you’re starting a photography blog, a name like “Photography.com” is much more relevant
than a generic name.
• Simplicity: Keep your domain name simple, easy to spell, and memorable. Avoid using
hyphens, numbers, or special characters, as these can confuse potential visitors.
• Branding: If you’re building a brand, consider using your brand name as your domain
name. Consistency across your brand and domain name can enhance recognition.
• Keyword Research: Research keywords related to your niche. Including relevant
keywords in your domain name can boost your website’s visibility in search engines.
Once you’ve settled on a domain name, check its availability using a domain registrar’s search
tool. If your desired domain name is available, congratulations! You’re ready to move on to
the next step.
DNS, or the Domain Name System, translates human readable domain names (for
example, www.amazon.com) to machine readable IP addresses (for example, 192.0.2.44). DNS
acts like a phonebook for the internet. Whenever people type domain names, like Fortinet.com
or Yahoo.com, into the address bar of web browsers, the DNS finds the right IP address. The
site's IP address is what directs the device to go to the correct place to access the site's data.
Web hosting is an online service that enables you to publish your website or web application on the
internet. When you sign up for a web hosting service, you basically rent some space on a physical
server where you can store all the files and data necessary for your website to work properly. Eg.
Hostinger, Siteground, Hostgator, Bigrock, Bluehost, GoDaddy, Google domains etc.
https://www.youtube.com/watch?v=xo53SxObpr0&list=PLkD5HZpxLQGgsx_-WB4SMn_A2hUC85qL5&index=5
https://www.youtube.com/watch?v=oFitZ-Cxewg&list=PLkD5HZpxLQGgsx_-WB4SMn_A2hUC85qL5&index=4
WEBSITE DESIGN PRINCIPLES
1) Purpose: For every page in the website should have a clear purpose, which fulfil the need
for your website users. Eg. Your e-commerce website should include all information about
your products and services which customer requires before making purchase decision.
2) Well structured: Organize the information using headlines and sub headlines, using bullet
points and instead of long windy sentences, and cutting the waffle (unnecessary
information)
3) Typefaces: Mostly, Sans Serif fonts are used to write the content of website as it is easy to
read online such as Times New Roman, Arial and Verdana. Sans Serif fonts are simple
looked fonts without any decorative finishes. For online reading 16 px is ideal font size and
it is considerable to use maximum typefaces.
4) Colours: In order to make content of your website easier to read for eye using contrasting
colours for the text and background is better option and for button and focusing things
vibrant colours is preferred. White space is vey effective for website.
5) Images: In order to improve ranking of website and to connect with target audience it is
very necessary to use right images for websites. It is preferable to add caption to image
which helps in improving google ranking.
6) Navigation: Navigation is related to how easily people take action and move around
website. Some effective way to navigation includes a logical page hierarchy, using bread
crumbs, designing clickable buttons.
7) Grid based layouts: Placing content randomly on your web page give haphazard or weird
appearance to website which seem so messy arrange the content into sections, columns and
boxes that line up the content into sections, columns and boxes that line up the content of
website, and results in a better-looking website design.
8) “F” pattern design: Eye tracking studies have identified that people generally scan their
system or computer screens and an “F” pattern mean most of the people see top and left of
the screen but rarely the right side of the screen. Effective designed websites will display
information in left to right, and top to bottom fashion.
9) Load time: Everybody hates a website that takes large time to load the content. It is
suggested that make page whose load times is less and more effective which can be achieve
by optimising image size, make use of centralized CSS or JavaScript file it reduces HTTP
requests.
10) Mobile friendly or responsive design: It is very common to access websites from multiple
devices with multiple screen sizes, so it is important to develop a website in mobile friendly.
If your website is not mobile friendly, it gives very weird appearance in comparison to
responsive layout.
https://www.youtube.com/watch?v=ZDw5aw_actw
In marketing and distribution, businesses employ different strategies to promote and sell their
products or services. Two commonly used strategies are push strategy and pull strategy. While
both strategies aim to increase sales and reach customers, they differ in their approach and
focus.
PUSH STRATEGY
A push strategy is when you use various forms of communication to directly persuade or
incentivize intermediaries, such as wholesalers, retailers, or distributors, to promote and sell
your product or service to the end consumers. The main objective of a push strategy is to
generate demand and increase sales through the distribution network. Some of the common
channels and tactics for a push strategy are trade shows, sales promotions, personal selling,
trade advertising, and discounts.
Examples
• Salesforce visiting retail stores to persuade them to carry and promote a new product.
• Offering trade discounts or incentives to distributors to encourage them to purchase and
distribute products.
• Using advertising and promotional campaigns targeted at intermediaries to create
awareness and generate demand.
PULL STRATEGY
A pull strategy is when you use various forms of communication to directly attract and engage
the end consumers, creating a preference and demand for your product or service that motivates
the intermediaries to stock and sell it. The main objective of a pull strategy is to build
awareness, loyalty, and reputation among the target audience. Some of the common channels
and tactics for a pull strategy are mass media advertising, social media, content marketing,
public relations, and word-of-mouth..
Examples
• Creating engaging advertising and promotional campaigns that directly target end
customers to build brand awareness and generate interest.
• Implementing content marketing, social media, and influencer marketing strategies to
engage with customers and create a desire for products.
• Offering limited-time discounts or promotions directly to customers to encourage them to
purchase products.
EDI stands for Electronic Data Interchange. It is a process that allows the exchange of business
documents and transactions between two or more organizations electronically without manual
intervention. EDI typically involves transferring data such as purchase orders, invoices,
shipping notices, and other business-related documents between computer systems in a
standardized format agreed upon by both parties. EDI is used to streamline business processes,
reduce paperwork, and improve efficiency by eliminating the need for manual data entry and
processing. EDI is commonly used in retail, manufacturing, logistics, and healthcare industries.
By using EDI, businesses can automate their data exchange processes and reduce the need for
manual data entry and processing. This can help to streamline business processes, reduce
errors, and improve efficiency.
1) Artificial Intelligence (AI) & Machine Learning (ML): AI and ML are revolutionizing
the eCommerce industry by providing state-of-the-art technology solutions and automation
capabilities. AI is the development of computer systems that can perform tasks that
typically require human intelligence. It involves solving problems, make/suggest decisions
and perform tasks in a way similar to humans. ML, on the other hand, is a subset of AI that
focuses on enabling systems to learn and improve from data without explicit programming.
It uses data to learn and match pattern. In eCommerce, AI and ML have revolutionized the
customer journey in several ways. Examples of these technologies include:
• Chatbots and intelligent virtual assistants (IVAs): AI-powered chatbots and IVAs
provide instant customer support, answering queries and assisting with purchases.
These virtual assistants use natural language processing and ML algorithms to
understand customer needs and provide personalized recommendations.
• AI-powered personalization: AI and ML algorithms analyze customer data to offer
personalized product recommendations, tailored marketing campaigns and customized
experiences. This level of personalization boosts customer engagement and drives
conversions.
• Supply chain optimization: AI and ML optimize supply chain management by
analyzing data on inventory levels, demand patterns and delivery routes. This allows
businesses to streamline operations, reduce costs and ensure timely deliveries.
https://www.youtube.com/watch?v=FyHrIW2FdTg
• Virtual showrooms: VR creates virtual environments where customers can explore and
interact with products in a more immersive way. Virtual showrooms can simulate real-life
shopping experiences, providing customers with a sense of presence and allowing them to
examine products from different angles and perspectives.
• Virtual events and experiences: AR and VR technologies have been leveraged to create
virtual trade shows, product launches, and interactive brand experiences. These virtual
events enable businesses to reach a wider audience, provide unique engagement
opportunities and overcome physical limitations.
Sephora, a cosmetics retailer, leverages AR technology
to offer virtual try-on experiences for makeup products
[Source: Sephora]
3) Mobile Commerce & Progressive Web Apps (PWAs): Mobile commerce (m-commerce)
is the buying and selling of goods and services through mobile devices such as tablets and
smartphones. With the increasing prevalence of mobile devices and their convenience, m-
commerce has become a significant driver of eCommerce growth. To cater to mobile users,
businesses are adopting Progressive Web Apps (PWAs). PWAs are web applications that
provide a native app-like experience on mobile devices. They combine the flexibility of the
web with the functionality and performance of native apps, offering a seamless and
responsive user experience.
4) Voice Commerce: Voice commerce, also known as v-commerce, is a growing eCommerce
technology trend that leverages voice assistants and smart devices to enable customers to
make purchases using voice commands. With the rise of virtual assistants like Amazon’s
Alexa, Apple’s Siri, Google Assistant and Microsoft’s Cortana, voice commerce has gained
significant traction and is transforming the way customers interact with brands and make
online purchases. Voice commerce is gaining traction primarily because it offers a more
convenient and user-friendly shopping experience. By leveraging voice commands, users
can interact with online platforms in a seamless and intuitive manner. The hands-free
operation of voice commerce enables users to perform tasks and make purchases without
the need for manual input, making it particularly appealing in various situations. What’s
more, voice commerce promotes accessibility and inclusivity, opening up eCommerce to
individuals with disabilities or those who may face challenges with traditional interfaces.
• Bank transfers: Some customers prefer to make direct payments from their bank accounts
through bank transfer options. This method requires customers to authorize the transfer of
funds from their bank to the merchant’s account.
• Digital wallets: Digital wallet services like PayPal, Apple Pay, Google Pay and Amazon
Pay provide a convenient and secure way for customers to store their payment information
and make quick online purchases.
• Cryptocurrencies: With the rise of cryptocurrencies like Bitcoin, Ethereum and Litecoin,
some eCommerce platforms accept digital currencies as a form of payment. Cryptocurrency
transactions offer decentralization, security and privacy.
• Buy Now, Pay Later (BNPL): BNPL services, such as Klarna, Afterpay and Affirm, allow
customers to split their purchase amount into installments, making it more affordable and
flexible for them to make larger purchases.
• Prepaid cards: Prepaid cards or virtual gift cards offer a convenient way for customers to
make online purchases without using their personal credit or debit cards. These cards are
preloaded with a specific amount and can be used for transactions until the balance is
exhausted.
• Streamlined order processing: ERP systems streamline the entire order processing
workflow, from order placement to delivery. Orders can be efficiently processed, tracked
and fulfilled, ensuring timely deliveries and improving customer satisfaction.
• Scalability and growth: ERP solutions are designed to accommodate the growth of
eCommerce businesses. They can scale to handle increasing transaction volumes, expand
product catalogs and support multi-channel sales strategies.
8) Warehouse & Delivery Automation Technologies: Warehouse and delivery automation
technologies are revolutionizing the eCommerce industry by streamlining logistics
processes, reducing costs and improving overall efficiency. These technologies leverage
automation, robotics and advanced data analytics to optimize inventory management, order
fulfillment and last-mile delivery.
Here are some notable examples of trending warehouse and delivery automation
technologies:
• Internet of Things (IoT): The Internet of Things refers to the network of interconnected
physical devices embedded with sensors, software and connectivity that enables them to
collect and exchange data. In the context of warehouse and delivery automation, IoT plays
a crucial role in optimizing operations and enhancing efficiency.
Example: Amazon harnesses the power of IoT devices like smart shelves, robots and
sensors to keep a close eye on inventory levels, track shipments and optimize the picking
and packing process. These interconnected devices maintain constant communication with
each other and the central system, enabling the retrieval of real-time data and valuable
insights for enhanced decision-making.
• Intelligent automation: Intelligent automation combines artificial intelligence (AI) and
robotic process automation (RPA) to automate repetitive and rule-based tasks. It involves
the use of AI algorithms and machine learning to enable systems to learn, adapt and make
decisions autonomously. Example: Ocado, a UK-based online grocery retailer, employs
intelligent automation in its highly automated warehouses. They use AI-powered robots
that navigate the warehouse, pick products from shelves and prepare orders for delivery.
The system learns from past orders, optimizing the picking routes and improving efficiency
over time.
• Cobots: Cobots, short for collaborative robots, are robots designed to work alongside
humans in a collaborative manner. They are equipped with sensors and advanced safety
features that allow them to interact and collaborate with human workers without causing
harm. Example: BMW has integrated cobots into their manufacturing processes to enhance
productivity and efficiency. These cobots work alongside human workers, assisting with
repetitive or physically demanding tasks. They are equipped with sensors and advanced
safety features that enable them to operate safely in close proximity to humans.
• Autonomous delivery vehicles: Autonomous delivery vehicles are self-driving vehicles
used for the transportation of goods. These can be drones, ground robots, trucks and vans
and boats and ships. They leverage technologies such as computer vision, sensors and GPS
to navigate and operate without human intervention. Example: Waymo, a subsidiary of
Alphabet Inc. (Google’s parent company), is developing autonomous delivery vehicles for
last-mile logistics. These vehicles are equipped with advanced sensors and AI systems to
safely navigate roads, deliver packages and optimize delivery routes, improving efficiency
and reducing delivery costs.
• Automated returns management systems: Automated returns management systems
streamline and automate the process of handling product returns. These systems utilize
technologies such as barcode scanning, RFID and AI algorithms to efficiently process
returns, manage inventory and provide real-time visibility into return statuses.
Example: Optoro, a technology company specializing in returns management, offers an
automated returns platform. Their system uses AI algorithms to determine the optimal
disposition of returned products, whether it’s restocking, reselling, refurbishing or
liquidation. This automated process helps reduce the time and costs associated with returns
while maximizing recovery value.
9) eCommerce Security Technology: eCommerce security technology encompasses a range
of tools, protocols and practices designed to safeguard online businesses and their
customers from malicious activities. These technologies play a critical role in maintaining
the trust and confidence of consumers, ensuring the integrity of transactions and protecting
sensitive information. New eCommerce technology trends businesses should consider
implementing to improve security include:
• Biometric authentication: Biometric authentication involves using unique biological
characteristics, such as fingerprints, facial recognition, iris scans or voice recognition,
to verify the identity of an individual. It is a highly secure and convenient method of
authentication, as these characteristics are difficult to forge or replicate.
APPLICATIONS OF E-COMMERCE
1) Retail and wholesale: A retailer solely sells products to the final customer as their target
market whereas the primary objective of a wholesaler is to sell products to businesses or
retailers who will then resell to another party. Online retailing allows customers to browse
and purchase goods and services from the comfort of their own homes using a computer or
mobile device. Online stores eliminate the need for physical storefronts and allows
businesses to reach a wider audience, potentially even globally. You can use various
methods to attract and retain customers such as offering discounts, loyalty programs, and
personalised recommendations based on purchase history. Online wholesaling or e-
wholesaling is lucrative for businesses looking for bulk buying or selling. E-retailing, on
the other hand, allows SMEs to reach a larger audience than traditional retail. With an
online store, SMEs can sell their products to customers anywhere in the world. Moreover,
e-retailing helps SMEs save money on rent, utilities, and other expenses as there’re no
overhead costs to maintain a physical store.
2) Online booking: Most of us have booked hotels, vacations, plane tickets, travel insurance,
etc. online. An internet booking engine, or IBE is responsible for these bookings and
reservations. Customers can self-book and pay through website, apps or other channels, to
access a business’ products and services. For example, BookMyShow, Asia's entertainment
platform and ticketing service, enables customers to book entertainment experiences
varying from movies, concerts, travel, comedy shows, theatre and more. This application
improves customer experience as they’re able to make bookings instantly.
3) Online marketing: Selling online enables you to collect customer data such as buyer’s
location, purchasing habits and average spending. You can use this valuable data to
optimise online marketing such as better targeting of ads, improve messaging and price
setting. By gathering this information, you can improve brand awareness and increase
conversions, particularly when selling to overseas customers.
4) Manufacturing: Applications for e-commerce in the manufacturing industry have
evolved. SMEs can leverage e-commerce to effectively handle their supply chains. This
includes tasks like sourcing raw materials, delivering finished products to customers, and
facilitating the electronic exchange of goods. Additionally, e-commerce enables the
exchange of market information and provides back-office support for functions like
inventory control. Furthermore, SMEs can use inventory management tools to track
inventory levels, automate reordering, and manage logistics for their ecommerce business.
Such e-commerce tools can help improve the way to operate online business. They can also
use e-commerce platforms to sell their products and services to other businesses which’ll
enable them to expand their customer base and tap into new markets.
5) E-banking: Internet banking, sometimes referred to as online banking, e-banking, or
virtual banking, is a type of electronic payment system that allows customers of banks and
other financial institutions to carry out a variety of financial transactions via the financial
institution's website or app. It allows bank customers to do transactions online without
having to wait in lengthy lines at banks. Online banking offers a range of convenient
services, including balance checks, bill payments, money transfers, and much more. With
e-banking as an e-commerce application, the web has become a space for SMEs to offer
their customers online shopping and commerce facilities, streamlining the time-consuming
and complex banking operations. It has become extremely convenient for businesses, who
were earlier making frequent visits to banks to deposit cheques, make transactions, and
withdraw money, to complete banking processes thanks to e-commerce. Not just flexibility
and hassle-free payment, e-banking also offer SMEs financial information and resources,
such as details of loans, credit and other account management tips, that were previously
unavailable to them.
6) Mobile applications: Mobile or web application development has become a prerequisite
for businesses looking to expand their business into different markets. Since mobile device
sales are dominating the e-commerce sector, there's a fair possibility that a sizable portion
of your customers use their smartphones and tablets for browsing and making purchases.
In fact, mobile devices account for 79 per cent of all global e-commerce sales (as of 2021).
Therefore, the first step in earning e-commerce sales from mobile visitors is having a user-
friendly mobile site. E-commerce mobile apps such as Amazon and Flipkart have
significant benefits over their respective websites that are surfed using search engine such
as mobility, efficiency, offline access and more: app pages load quicker and draw in more
users. If a website takes long to load, chances are the users might visit a competitor. An
app also allows users to save their preferences and items in their shopping carts. By using
mobile commerce applications businesses can retain customers and their data.
7) Online publishing: We’ve seen traditional publishers, such as Forbes, move into online
publishing, following the launch of its Forbes Store; Future Publishing, which generated
close to $1 billion in e-commerce sales in 2020. All digital newspapers, magazines,
newsletters, blogs, e-books, and articles that are capable of generating income online, are a
part of the online publishing industry. The application refers to digital publication of books,
magazines, catalogues, and digital libraries. This application is growing in popularity since
it has multiple advantages, including portability, accessibility and being lightweight.
8) Online auction: With e-commerce technology, online auctions bring people from various
geographical locations together and allow trading of items at negotiated prices. It can be
accessed by anyone if they have an internet connected device. Bidding for seats on an
airline website, car auctions, livestock markets where farmers buy and sell animals or an
auction room where collectors bid on works of art, are different examples of online auction
applications that your business might be interested in.
9) Digital Advertising: Online advertising uses the internet to deliver promotional material
to consumers. It involves a publisher, and an advertiser. The advertiser provides the ads,
and the publisher integrates ads into online content. Often there are creative agencies which
create the ad and even help in the placement. Different types of ads include banner ads,
social media ads, search engine marketing, retargeting, pop-up ads, and so on.
E-CRM
It is the web-based application technology used for emails, websites, chat rooms, forums and
other channels, etc. It is a well-structured and coordinated process of CRM that automates
the processes in marketing, sales and customer service. They have the ability to hold all the
functions of CRM. However, the overall goal can be seen as effectively managing
differentiated relationships between with all customers and communicating with them on an
individual basis.
Examples of E-CRM
• Use of Emails: When a customer purchases any product from the website. The website
stores the customer data like purchasing history, preferences, behavior, etc. This data is
used by e-CRM to send emails to existing customers regarding the similar products,
upcoming products, and discounts.
• Use of Cookies: Cookies are small files of information that a web server generates and
sends to a web browser. Many online stores like Amazon uses cookies to improve the
shopping experience of their customers. Amazon asks its customers to accept the cookies
on the website and use them to improve the customer experience. Next time, when the
visitor visits the website, he will be greeted with a greeting or a welcome back message.
Further, cookies also recommend similar products based on their purchase history. All this
is managed through an E-CRM.
• Use of Loyalty Cards: Many businesses like Tesco offer loyalty cards or coupons to its
customers. When the customers use them at the time of checkout, their data is fed in the
electronic CRM to track purchase history. Based on this history, the company sends money
saving coupons to customers to convince them to purchase more products.
TYPES OF E-CRM
1) Operational CRM: An operational CRM system is the most common type and covers
the broadest range of functions. It blends all business processes, such as customer service,
marketing and sales, into one within a company. Its primary goal is to help streamline
business operations, centralize customer interactions and sales, marketing processes, and
service and support efforts in one place. Further, it stores information on customers, leads
and employees using a shared platform to better support existing and potential customers.
An operational CRM system captures customer details and uses them to provide service
across the customer lifecycle, including marketing, sales and service automation.
• Sales Automation: Sales automation allows you to use several tools to eliminate or
speed up tedious, manual tasks. By reducing the time spent on repetitive or
administrative tasks at your business, you can increase efficiency and focus on other
important matters. For example, sales representatives can automate messages at various
points in the customer journey, so they don’t have to draft an email from scratch or send
the same email to multiple prospects. As a result, they can nurture leads to land more
sales and strengthen their bond with existing clients for retention.
• Marketing Automation: Main purpose of marketing automation is to find out the
best way to offer products and approach potential customers. Major module in
marketing automation is campaign management. It enables business to decide effective
channel/s (like emails, phone calls, face to face meeting, ads on social media) to reach
up to potentials customers.
• Service Automation: It is a customer support process that reduces human
involvement in solving customer inquiries. It includs setting up inboxes that aggregate
customer emails, coordinating live chats and setting up chatbots. Further, service
automation provides ways to delegate service tasks to reps via ticketing systems and
can include knowledge base or FAQ pages as additional features.
2) Analytical CRM: Analytical CRM helps top management, marketing, sales and support
personnel to determine the better way to serve customers. Data analysis is the main function
of this type of CRM application. It analyzes customer data, coming from various touch
points, to get better insights about current status of an organization. It helps top
management to take better decision, marketing executives to understand the campaign
effectiveness, sales executives to increase sales and support personnel to improve quality
of support and build strong customer relationship.
3) Collaborative CRM: Collaborative CRM, sometimes called as Strategic CRM, enables
an organization to share customers’ information among various business units like sales
team, marketing team, technical and support team. For example, sales and purchase history,
customer service contact, marketing preferences, and technical support interaction. When
teams collaborate and share customer information, they can maximize profitability, and
increase customer satisfaction and loyalty..
In E-enterprise, business is conducted electronically. Buyers and sellers through Internet drive
the market and Internet-based web systems. Buying and selling is possible on Internet. Books,
CDs, computer, white goods and many such goods are bought and sold on Internet. The new
channel of business is well-known as E-commerce. On the same lines, banking, insurance,
healthcare are being managed through Internet E-banking, E-billing, E-audit, & use of Credit
cards, Smart card, ATM, E-money are the examples of the E-commerce application.
Due to Internet capabilities and web technology, traditional business organisation definition
has undergone a change. It has no geographic boundaries as it can extend its operations where
Internet works. All this is possible due to Internet and web moving traditional paper driven
organisation to information driven Internet enabled E-business enterprise. E-business
enterprise is open twenty-four hours, and being independent, managers, vendors, customers
transact business anytime from anywhere.
In E-business enterprise, most of the things are electronic, use digital technologies and work
on databases, knowledge bases, directories and document repositories. The business processes
are conducted through enterprise software like ERP, SCM, and CRM supported by data
warehouse, decision support, and knowledge management systems.
Today most of the business organisations are using Internet technology, network, and wireless
technology for improving the business performance measured in terms of cost, efficiency,
competitiveness and profitability. They are using E-business, E-commerce solutions to reach
faraway locations to deliver product and services.
BENEFITS E- ENTERPRISE
LIMITATIONS OF E- ENTERPRISE