Case Study Ecommerce

Case Study Ecommerce

You must have heard about Amazon or Flipkart which are E-commerce websites but have you ever wondered what is E-commerce? (Case Study Ecommerce) or what is the meaning of this word, how it works and what are its advantages and disadvantages etc? Of course, online business is very popular these days but despite it being so popular, there are actually still a lot of people who don’t know what it is.

The main purpose of this article(Case Study Ecommerce) is to provide accurate and better information about e-commerce to you so that at least there is no doubt in your mind about what is e-commerce or its business type. Next time someone asks about it, can explain it well. Then you are ready to know everything about e-commerce.

What is E-commerce?

E-commerce, also called electronic commerce, is the process of buying and selling products, services, and transferring money online, and sharing data through the Internet and other electronic means. In addition to physical products, e-commerce also deals in the trading of electronic goods and services.

If we put in more simple words, doing online shopping is called e-commerce. You can offer physical products (furniture, kitchen items, industrial machinery, etc.), digital goods (e-books, e-magazines, e-papers, video courses, graphics, paintings, etc.), and services (consultancy, teaching, writing, health advice, legal advice, etc.) can be bought and sold online.

Through e-commerce, shops and goods are just a click away. You just select the goods, make the payment, and shopping is done. You neither went to the shop, did not count the money, nor did you meet the shopkeeper. It is so easy to do online shopping through e-commerce.

E-commerce marketplaces like Amazon, Flipkart, Walmart, Bigbasket, Alibaba, Paytm Mall, Myntra, Snapdeal, ShopClues, etc. have made online shopping a massive reach and ensured easy access to their customers. This has benefited the customers as well as the merchants.

History of E-commerce (Case Study Ecommerce)

One afternoon on August 11, 1994, ‘Phil Brandenberger’ started his computer and bought Sting’s CD from NetMarket (an online store) for $12.48, paid for by credit card. The name of this CD was ‘Ten Summoners’ Tales’. This incident created history. And even today it is considered as the real e-commerce transaction. Because during this online transaction, Encryption Technology was used for the first time in online shopping. Which has become common today.

However, e-commerce was also born at the time of the Internet. Because of universities, educational institutions, researchers. Scientists started exchanging their research papers and educational materials. This process had taken its steps after the formation of Arpanet.

During the 1960s, businesses started sharing their business documents with other companies using Electronic Data Interchange (EDI). Then in 1979, the American National Standard Institute created a universal standard for sharing business documents, which is known as ASC X12.

After this, the birth of electronic companies like eBay, Amazon, etc. started. And the e-commerce revolution started. The technology that started with document sharing is in our hands today. And we can buy the item available online from any corner of the world with a single click. This is the real power of e-commerce. But, during this historical sequence of events, many incidents happened and new platforms, tools, techniques were invented, which are being briefly described in E-commerce Timeline.

Types of E-commerce Business Model

E-commerce can be classified into seven main categories which are described as follows:

  1. Business to Business Model: This is Business to Business transactions. Here only companies do business with each other. It does not include the final consumer. So only manufacturers, wholesalers, retailers etc. are involved in online transactions. Here traders mostly buy raw materials, repacking goods, and software and legal advice are included in the form of services.
  2. Business to Consumer Model: Here the company will sell its goods or services directly to the consumer. Consumers can browse the website and view products, pictures, and reviews. They then place their order and the company delivers the goods directly to them. Some popular examples are Amazon, Flipkart, Myntra etc. Here, the transaction is directly between the business to the consumer.
  3. Consumer to Consumer Model: Consumer to consumer, where consumers are in direct contact with each other. No company is involved. It helps people to sell their personal belongings and assets directly to the interested party. Typically, the goods traded are cars, bikes, electronics, etc. OLX, Quikr etc follow this model.
  4. Consumer to Business Model: It is the opposite of Business to consumer, it is consumer to business model, in which the consumer provides products or services to the company. One thing that differentiates C2B from other business models is that consumers create value for the products. Moreover, this model fulfills the need of freelancers, who work on the tasks given by the clients. C2B examples include Google Adsense, Commission Junction, and Amazon etc.
  5. Government to Business Model: The best example of this business model is e-governance. Under which governments or administrative institutions provide their services to business institutions through the Internet. The list of these services may vary from country to country. Governments are providing online legal documents, registration, social security schemes, job provision and other business services. Due to which both the time and capital of the government and business establishments are being saved.
  6. Business to Government Model: When governments buy some goods or services they need from businesses online, it is called B2G e-commerce model. For example, if a local government agency has to install CCTV cameras in its jurisdiction, then it buys cameras from a camera store for this. And the contract to get them installed can also be given to any business. All these functions come in this model. The best example of this in India is Baba Ramdev’s popular Swadeshi Patanjali brand (private business) which is selling its products to the Indian Army (government organization). This business model is under B2G only.
  7. Consumer to Government Model: E-governance service is applicable here also. Because even a common citizen has a lot of government work. For which he has to make rounds of government offices. But when government services become available online, the customer can directly take advantage of these services through the website or app. Examples of this model are e-Mitra service, UMANG, e-filling, Digilocker, FASTag etc.

Advantage of E-commerce :

The biggest advantage of e-commerce is that you do not have to go to the shopkeeper or store to buy the goods, but the goods will come to you themselves. You just place the order and pay and select the delivery address and the purchase is done. But apart from this, there are many other benefits to a customer whose details are as follows.

  • Cheap Rate: The operation of e-commerce is not even equal to a grocery store if you create your own storefront online. You can start an online shop without spending a single rupee. Therefore, more cheap products are available to the customers to buy. Because companies do not have to resort to middlemen. Their cost has a direct effect on the cost of the product. Since their need ends. Hence the actual price of the product gets reduced. And if you do not even have to go to the shop to buy goods, then you can also add the savings of rent and petrol and diesel.
  • Easy Shopping: Buying goods online is easy. People themselves have admitted that they find it easier to buy goods online than to buy goods from the shop. And this method is effective for those people who find it difficult or uncomfortable to go to stores, malls. He can easily order his desired goods from home, office, college, etc., and can also get them delivered to the desired place.
  • Global Reach: With the help of e-commerce, you reach all over the world. If you are a seller then there is no need for you to find new customers. Because the whole world is ready to be your customer. And stores around the world are available for the customer to sell the goods. He can buy anything of his choice by seeing and knowing comfortably.
  • Electronic commerce significantly reduces transaction costs. Due to which companies get to enjoy higher margin of profit.
  • E-commerce allows the customer and the business to be in direct contact without any intermediaries. It allows for quick communication and transactions.

Disadvantages of E-commerce :

Just like a coin has two sides. In the same way, there are advantages to e-commerce and there are also some disadvantages. Which can entangle the customer in many troubles.

  • No Self Satisfaction: When the customer touches the item with his hands and sees and examines it with his eyes, then the satisfaction he gets is not possible to compare with online purchase. Because you do not get the facility to touch and see. Yes, you can be happy looking at the photos of the product. That’s the truth!
  • Security Issues: E-commerce is the most prone to fraud. Because online fraud is more easy and subtle. A normal user is not able to recognize it. Therefore it is considered unsafe. The increasing graph of cybercrime strengthens it further. Phishing, keyloggers, duplicate URLs etc. are the ways through which online fraud is done.
  • Lack of Customer Service: You can get a lot of doubts resolved within minutes while shopping from the store. You can ask questions directly to the cashier, clerk, manager. But this facility is not available on the online store and you will have to wait for a certain time if you want to answer any question.

Example of E-commerce

E-commerce can happen in different ways. And merchants can provide services ranging from physical products to letter writing. Below are the different forms of e-commerce.

  • Wholesale: In wholesale trade, goods are sold in groups. Here customers are retailers. Because there is no relation with the real consumer.
  • Dropshipping: Selling a product whose manufacturer is someone else and someone else is going to deliver it. That is, the seller’s contact is only with the customer, he does not manufacture the product himself. Rather sells the product of another manufacturer. Dropshipping has become one of the emerging businesses nowadays, especially among the people who want freedom from 9-5 jobs, are taking this business in their hands.
  • Crowdfunding: Crowdfunding is called crowdfunding, taking money from people in exchange for it even before the product comes into the market. This is a great and tried-and-tested principle to raise money in the early stages for a startup business.
  • Subscription: Subscription is the repurchase of a product and service within a specified period of time. This method is mostly tried on software as a service (SAAS) business model. Along with this, platforms like online magazines, e-papers, membership forms etc. use this business model.

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