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The E-Commerce Model

E-Commerce Business Models – Highly Recommended

Internet User Statistics in India:

  • 100 Million unique internet users
  • 25 Million Facebook users
  • 20 Million Youtube users
  • 10 Million tweeters
  • Ecommerce market size: 46520 Crores


Role of Trade and Commerce:

Trade and commerce play a decisive role in boosting up a country’s economy. An economy is said to expand only when a country concentrates on bringing a radical change in its commercial activities. Needless to say, the invention of computers and computer based services, has revolutionized the industry of commerce, where trading is done online. The emergence of “E-Commerce” is a real benefit bestowed on the traders to sell their merchandise in a popular platform called internet. E-commerce has overturned the history of retail selling market, due to the unanimous support of the consumers.

Lifestyle Changes:

The changing life styles of consumers have led to the evolution of e-commerce as an appealing alternative to terrestrial retail network. Everything has been made simple and easy. All kinds of services are available for the consumer at a mouse click’s distance. Internet gives him the privilege and liberty to happily surf through the net, from the cool confines of his house, to finalize and order a product or service of his choice. Payment systems are again made easy, through PayPal or credit or debit cards, electronically verified and authorized. So, why would consumers wait in a long queue to avail a specific service or drive down to the market place for purchasing their merchandise anymore, when e-commerce presents them all in a platter at their door steps?

The Internet – Virtual Market Place:

Internet serves as the virtual market place, where exchange of goods and services are quick and convenient. Many big corporate companies have started selling their products online, to manage the stiff competition posed by other competitors and small online vendors. Online presence is necessary to accelerate your profits and retain your market share. Through e-commerce, you also stand a chance to win over the interests of various sections of a society because of global internet penetration.

The following list would give you a fair idea about the extensive penetration of e-commerce cutting through various economic layers.

  • You can compete globally with other big merchants, as this is a virtual market arena, devoid of any geographical boundaries. Your prerequisite would be a computer terminal with high speed internet connection and a valid bank account.
  • Electronic fund transfer through Real Time Gross Settlement and Net Banking, through which you are able to receive and transfer funds immediately.
  • Online business works round the clock, so you are accessible 24/7, that really helps you to increase your sales and thus your profit margins.
  • There is no need for credit sales, until and unless you have a dealer network to which you have to extend credit facilities.
  • Payment of tax, electricity bills, telephone bills are now made online through the internet.
  • Firms are able to cut down their costs, in terms of infrastructure, marketing, holding inventory, customer relationship management, information processing etc. , The highlight is, you also get instant feedback on the price and other features of your product or service, that helps you to employ pricing and promotional strategies.
  • Travel industry, consumer electronics, shipping industry, Companies producing fast moving consumer goods, car rentals and so many other industries are thriving in the web market, thanks to e-commerce.

Talking about the shortcomings, I must say that internet has not touched millions of people yet across the globe, to enable them to enjoy the benefits and privilege of this new economic system-commerce may not suit certain sectors of business like perishable food items, where time is an important factor. But undoubtedly e -commerce will rule the world when developing countries too, start utilizing the services in a full-fledged fashion.