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E Commerce Introduction, Advantages

Updated: Mar 1, 2022

22EC01 JSS -DM106 E-Commerce -BL01M01-Day 02-28Feb22 D02

What do you mean by e-commerce?

E-commerce is the buying and selling of goods and services over the Internet. It is conducted over computers, tablets, smartphones, and other smart devices; commercial transactions conducted electronically on the internet.

Types of E-Commerce

There are four traditional types of eCommerce,


  • B2C (Business-to-Consumer),

  • B2B (Business-to-Business),

  • C2B (Consumer-to-Business) and

  • C2C (Consumer-to-Consumer).

  • B2G (Business-to-Government)

Amazon. Founded in the US in 1994, Amazon started as an online bookstore that later diversified to products including media, electronics, apparel, furniture, food, toys, and jewelry1. By Participators








2. By Goods

-Physical Goods

-Digital Goods


3. By Business Model

-Drop Ship



-Private Label

-White Label

Three most important success factors affecting eCommerce

Low customer acquisition cost

High repurchase rate

Healthy margins

What are the benefits of an online marketplace?

1. cuts marketing costs, improves cost to performance ration

2. Go Global - it allows companies to internationalize its business.

3. Trust and Transparency - It creates transparency in availability, stock levels, and prices.

4. It is a great way for customers to compare prices.

5. Always On: It allows your company to function 24/7.

6. Brand Trust and Loyalty -It generates trust between your brand and customers.

7. Provide info, comparison, alternatives an options. Customers are more likely to purchase from an online marketplace with a wide range of options.

8. online market price- reduction in store selling/stock/inventory management

9. Additional source of revenue.

Types of E-Commerce

Disadvantages of eCommerce

  1. Customers have concerns about privacy and security. Some consumers are still wary about giving out personal information, especially credit and debit cards, to online sources. ...

  2. Lack of in-store engagement with customers. ...

  3. The added cost of operating an online store.

  4. Site Security

  5. problems related to website maintenance, site-crash, content uploads

  6. products to be tested before buying?

  7. delivery schedule and delays

  8. what you see is not what you get?

  9. privacy issues. customers do not wish to share personal data

  10. taxes and duties - location and country of origin

  11. High initial cost of setup and continuous maintenance

  12. shipping and packing issues

  13. Credit card frauds, general fear/disbelief in system

  14. competition and low margin per product


Monetizing your blog.

  1. Affiliate marketing. One of the most popular methods for monetizing a blog is to leverage affiliate marketing. ...

  2. Advertisements.

  3. Email marketing. ...

  4. Sell ebooks. ...

  5. Sell courses. ...

  6. Sell digital products. ...

  7. Sell coaching services. ...

  8. Secure sponsorships.

Questions for review

  1. What are the characteristics of online shopping?

  2. Impact of Online Shopping

  3. How does eCommerce affect the economy?

  4. e commerce advantages

  5. e commerce disadvantages

  6. How does eCommerce affect small businesses?

  7. Types of E-Commerce

  8. Types by the Goods/Services

Lakshminarasimman V Rao | JSS| 21DM106-ECOM| eCommerce|JSS |Study Notes| Corporate Neeti Consulting | Mysuru

All data above is a combination of data from Internet, purpose of this doc is for research and education only and responses received from Class students and interaction.

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