E-COMMERECE

A project report submitted in partial fulfillment of the requirements for the diploma of

POST GRADUATE DIPLOMA IN COMPUTER APPLICATION

OF

CEC BELTOLA
2024

Submitted by

Chinmay Daimary
(1002/07/2023/239)

Guided by
DIMPI KALITA

CEC
GUWAHATI
ASSAM
 CEC
Centre Name
GAUHATI
ASSAM

CERTIFICATE

This is to certify that the dissertation entitled E-commerce submitted by Chinmay Daimary, for
partial fulfillment for the requirement of award of the degree of Post Graduation Diploma in
Computer Application, CEC Beltola is a work carried out by her/him under my supervision and
guidance.
To the best of my knowledge, the work has not been submitted to any other institute for the
award of any other degree or diploma.

Faculty Name : Dimpi Kalita

Date : 02/08/2024
Place : Guwahati
 DECLARATION

I hereby declare that the project entitled E-commerce has been carried out by me and
submitted in partial fulfillment for the requirement of award of the degree of Post Graduate
Diploma in Computer Application, CEC Beltola. I also declare that any or all contents
incorporated in the project, has not been submitted in form for the award of any other
degree of any other institute.

Name of the student : Chinmay Daimary

Date : 02/08/2024 Reg. No : 1002/07/2023/239

Place : Guwahati Course : Post Graduate Diploma in

Computer Application
 ACKNOWLEDGEMENT

At the very outset, I would like to express my heartiest gratitude to my project guide Dimpi
Kalita for her support, encouragement, advice and motivation to work in this area.
I also offer my sincere thanks to Kishore K Das for his support towards this project.

Above all, I thank Dimpi Kalita for being for us always.

Name of the student : Chinmay Daimary

Date : 02/08/2024 Reg. No : 1002/07/2023/239

Place : Guwahati Course : Post Graduate Diploma in

Computer Application
 Content
1. Introduction

2. Online Shopping

3. Growth of online retailer in India

4. Types of e-commerce

5. Advantages

6. Disadvantages

7. Technological innovation in e-commerce

8. Future trend

9. Conclusion

10.
 INTRODUCTION

What is E-Commerce ?
Electronic commerce, commonly known as E-commerce or
eCommerce, is trading in products or services using computer
networks, such as the Internet. Electronic commerce draws on
technologies such as mobile commerce, electronic funds transfer,
supply chain management, Internet marketing, online
transaction processing, electronic data interchange (EDI),
inventory management Systems, and automated data collection
systems. Modern electronic commerce typically uses the World
Wide Web for at least one part of the transaction's life cycle,
although it may also use other technologies such as e-mail.
E-commerce businesses may employ some or all of the
following:

• Online shopping web sites for retail sales direct to consumers

• Providing or participating in online marketplaces, which

process third-party business-to-consumer or consumer-to-
consumer sales

• Business-to-business buying and selling

• Gathering and using demographic data through web contacts

and social media

• Business-to-business electronic data interchange

• Gathering and using demographic data through web contacts

and social media

• Business-to-business electronic data interchange

• Marketing to prospective and established customers by e-mail

or fax (for example, with newsletters)

• Engaging in retail for launching new products and services

India has always been a land of great potential. The
socioeconomic condition of the country has improved many
folds after independence and India is now emerging as one
of the leading countries in the world. Moreover, with a
population of over 100 crore and a growth rate of above 6%,
it can be compared to a marketing giant. Hence it can be
well judged why online shopping in India is rising at fast
pace over the days. As technology is spreading to the
remotest villages and many job opportunities are presenting
themselves to the unemployed youth more and more
people are gaining awareness and the money to purchase
expensive and luxurious items over the internet.

Online Shopping
Which company flashes in your mind first? Flipkart, Amazon, eBay
etc. Well, let us talk about the home-grown, Indian, e-commerce site
'Flipkart', also considered as the Amazon of India.
 A Company which
started with just 4 lakhs is
now worth over more than
2000 crores According to
the data Flipkart has
provided to Ministry of
Corporate Affairs; the company's revenue in 2011—13 was $77
million (Rs. 500 crore). For the fiscal 2013—13, their revenue is
estimated to be S350 million. With this huge success Flipkart is
becoming the fate of online retail in India. This paper attempts to
throw light on the growth of online retail business in India with
special reference to Flipkart (analysing the consumer feedback about
the online business model of Flipkart).

 The invention has opened a whole new world of possibilities for

us. Not only we can communicate with the person we love
within moments but nowadays many vital tasks like jobs,
shopping, socializing and many others can be done easily at the
convenience of our homes. The concept of online shopping is a
relatively new one and it enables us to buy all our favourite
goods and accessories over the internet. This not only saves
 time but also, we can get the products at a much-discounted
price and that too at our homes. There are many online stores
that have developed in recent times like letsshop.in, nykaa.com
and many others. These stores host a wide range of products
like bags, shoes, books, gadgets and many others. To purchase
any product, you have to visit the site and click on the product
that you would like to purchase and the product will be
delivered to you within a week maximum.

The act of buying things from websites and not shops

certainly took a long time to blend in with the shopping
mind-set of the Indian customer, The current scenario is
one, which is witnessing a change in this mind-set. There
have been many websites that have been launched with
the objective of selling products to customers.

Products belonging to various product sectors are

now being sold on these websites and the range is
quite a large one right from expensive laptops and
LCD televisions to mundane grocery items.
Online shopping in India, is certainly witnessing a
period, which entails things such as rising number of
online sales and fantastic revenue and profit figures.
There have been many products, which have caught
the fancy of online shoppers and one of them is a
handset. Handsets, irrespective of the brand, are being
sold in magnanimous numbers on different websites.
All the major market players in the
telecommunications sector, FMCG sector. services,
mobile sector etc. are doing quite well with the sales
that they are getting from this online platform. The
money that is earned is being put to good use by using
it in the betterment of the respective R&D
departments.

Apart, from the businesses doing well, the

customers are also given many fantastic features. Some of
them include things such as free gifts with every online
purchase while some involve special offers that are quite
economical and affordable.
 Growth of online retailing in
India

India e-commerce has grown at a compounded annual growth

rate of 30% since FY09, and is expected to be $18 billion (around
Rs1,116,00crore) opportunity by FY 15. The findings part of
report: Indian Ecommerce-Tip of the Iceberg, by Macquire
Equities Research back this high growth rate on rising internet
population, over 300 million middle class population, increasing
mobile penetration and low levels of e-commerce activity.
"Compared to the west, India's ecommerce industry is still in its
infancy. Ecommerce contributes only 0.6% of the country's GDP vs
1-3% for other countries, with only 13% of India's online
population transacting online vs 64% for the US and over 50% for
China," said Atul Soni and Nitin Mohta in the report. This growth
will further be accentuated by companies going in for public
listing. In the Indian context, only two internet-based companies
are listed on the markets, including Infoedge, which runs India's
largest job portal (naukri.com), and justdial, which is India's
largest local search site.
The nature Of Indian e-commerce is also different. Travel has the
lion's share Of71 % of Indian e-commerce, but e-tailing has grown
the fastest, at a 59% CAGR between FY09-13E, to reach 16%
market share. Compared to the west, India's ecommerce industry
is still in its infancy, but we believe that it may become a bigger
part of the entire retail universe than in the west.

"We believe that for many young Indians, Online

shopping may become their primary way to shop
throughout their lives. Whenever significant
opportunities such as ecommerce present themselves,
many market participants compete aggressively to try to
emerge as undisputed leaders to gain brand recognition
and customer loyalty, and oftentimes these players
change their business model along the way to grow with
the market," said the report.

Types of E-commerce Models

E-commerce encompasses various models, each catering to
different types of transactions and participants. Here are
the primary e-commerce models, explained briefly with
examples:

1. Business to Consumer (B2C)

B2C e-commerce involves

transactions between businesses

and individual consumers. This is

the most common model, where businesses sell products or services

directly to the end-users.

Example: Amazon - A global online retailer where consumers can

purchase a wide range of products from books to electronics.

Example: Walmart - An online extension of the retail giant offering

groceries, clothing, electronics, and more directly to consumers.

2. Business to Business (B2B)

B2B e-commerce
involves transactions
between businesses. This
model is focused on
supplying goods or
services that other
businesses need to
operate or resell.
Example: Alibaba - A platform where businesses can buy products in bulk
from manufacturers and suppliers.

Example: Salesforce - A provider of CRM software and services to other

businesses to enhance their customer relationship management.

3. Consumer to Consumer (C2C)

C2C e-commerce involves

transactions between consumers.
This model is facilitated by third-
party platforms that allow
individuals to buy and sell
products directly to each other.

Example: eBay - An auction

and shopping website where people can buy and sell a variety of goods.

Example: Poshmark - A platform for buying and selling second-hand

fashion items.
4. Consumer to Business (C2B)

C2B e-commerce involves transactions where individuals sell

products or services to businesses. This model includes freelance work,
influencer marketing, and other services offered by individuals to
businesses.

Example: Upwork - A freelance platform where professionals offer their

services to businesses looking for specific skills.

Example: Shutterstock - A website where photographers and designers

sell their images and designs to businesses.
5. Business to Government (B2G)

B2G e-commerce involves transactions between businesses and

government entities. This model includes supplying goods or services to

government agencies through contracts and tenders.

Example: SAP Ariba - A platform facilitating B2G transactions by allowing

businesses to respond to government tenders and procurement requests.

6. Government to Citizen (G2C)

 G2C e-commerce involves transactions between government
entities and citizens. This includes public services, information
dissemination, and electronic payments.

Example: Online Tax Filing - Platforms like the IRS website in the U.S.
where citizens can file taxes online.

Example: E-Government Portals - Websites where citizens can access

services like renewing licenses, paying fines, or applying for permits.

Each of these e-commerce models caters to different market needs and

participants, utilizing the internet to facilitate various types of
transactions and interactions.
ADVANTAGES
 Advantages of e-commerce

Cost
24/7 Effective

Saves shop any

time store
worldwide

ship your
Other
gift
Facilities
directly

ETC.
Saves time:
Online shopping saves us a huge amount of time. We can buy
any of our favourite products from our home only and need not visit
the malls.

Cost Effective:
The products can be bought at a much-discounted rate by
shopping online. This is because online stores offer huge discounts
and lucrative offers on the purchase of each and every product. This
is done to attract more customers from all over the world.

Other Facilities:
The products are freely shipped and delivered at our doorstep
without any extra charge. Moreover, if we find them not suited to
our purpose, we can return them without purchasing any time.
Apart from that if we do purchase these items and find them to be
defective then we can return them within fourteen days of the
purchase and we will get all the money back.
Shop any store worldwide:
Never again be limited geographically. Many merchants do
not have physical stores in every state, and certainly not in every
country. When you shop online, you can browse through stores
around the block or around the globe! Discover amazing new items
from exotic places that you perhaps have never even heard of
before.

Ship your gifts directly:

When you order online, you can send gifts or even have gift
baskets delivered directly to their recipient. This means you can
avoid long waits at the post office and you can get your gift
delivered faster. Many stores even offer customized cards and gift
wrapping to go along with your present.

Find items you might not see in stores:

Since brick-and-mortar stores are limited on space, merchants
usually don't carry all of the items they sell in store. Online, you can
find their entire inventory, along with many choices of colours,
styles, and even customization options. Shop on the Internet so you
can find exactly what you want.
No more waiting in line and pushing through crowds:
Malls and retail stores can be chaotic. especially during a big
sale or a holiday season. Don't stress yourself out, just shop from
home! You'll never have to stand in a long checkout line or weave
your way through crowds just to get the items you want. Shop
online and you can stay in the comfort of your own home

The Internet never closes:

You can shop anytime online 24 hours a day 7 days a week.
Online stores never close. so, you never have to worry about
making time to go to the store. Online shopping is perfect for night
owls or anyone who is just too busy to make a trip to the store.
CHALLENGES AND
LIMITATION
Challenges and Limitations of
E-commerce
 customer
Security
trust and
Concerns
satisfaction

Logistics and
Supply Chain compettion
Management
and market
saturation

Competition
technology
and Market
dependence Saturation
 ETC.

Despite its many advantages, e-commerce faces several

challenges and limitations that businesses must address to
succeed. Here are some key challenges with brief
explanations and examples:

1. Security Concerns

Issue: E-commerce platforms are prime targets for cyber-attacks, data

breaches, and fraudulent activities.

Example: In 2013, Target experienced a massive data breach that

compromised the credit card information of 40 million customers,
highlighting the importance of robust cybersecurity measures.

2. Logistics and Supply Chain Management

Issue: Managing logistics, shipping, and returns can be complex,

especially for businesses with a global customer base.

Example: During the COVID-19 pandemic, many e-commerce businesses

faced significant delays and disruptions in their supply chains, impacting
delivery times and customer satisfaction.
3. Regulatory and Compliance Issues

Issue: Navigating different regulations, taxes, and compliance

requirements across various regions can be challenging for e-commerce
businesses.

Example: The introduction of the General Data Protection Regulation

(GDPR) in the EU required businesses worldwide to comply with strict
data privacy rules, necessitating significant changes in how they handle
customer data.

4. Customer Trust and Satisfaction

Issue: Building and maintaining customer trust is crucial, especially

regarding product quality, security, and service reliability.

Example: Zappos, an online shoe and clothing retailer, built a strong

reputation for customer service by offering a 365-day return policy and
free shipping, thereby earning customer trust and loyalty.
5. Competition and Market Saturation

Issue: The e-commerce market is highly competitive, with numerous

players vying for customer attention and market share.

Example: Small and medium-sized businesses often struggle to compete

with giants like Amazon and Alibaba, which can offer lower prices, faster
shipping, and a wider range of products.

6. Technology Dependence

Issue: E-commerce relies heavily on technology, and any technical issues

can lead to downtime, affecting sales and customer experience.

Example: In 2018, Amazon's website experienced a brief outage during

Prime Day, resulting in lost sales and frustrated customers who were
unable to complete their purchases.
7. Limited Personal Interaction

Issue: The lack of face-to-face interaction in e-commerce can be a

disadvantage for products that require personal consultation or physical
inspection.

Example: High-end fashion and luxury goods often rely on in-store

experiences to convey their value, making it challenging for online
retailers to replicate the same level of customer engagement.
TECHNOLOGICAL
INNOVATIONS
 Technological Innovations in
E-commerce

Technological advancements have significantly enhanced e-

commerce, improving efficiency, customer experience, and
operational capabilities. Here are some key innovations with
examples:

1. Artificial Intelligence (AI) and Machine Learning (ML)

Personalized Recommendations: AI algorithms analyse customer
behaviour and preferences to provide personalized product
recommendations. For instance, Amazon’s recommendation engine
suggests products based on past purchases and browsing history.

Chatbots and Virtual Assistants: AI-powered chatbots, like those used by

H&M and Sephora, offer instant customer support, handle inquiries, and
assist with purchases, improving customer service and engagement.

2. Augmented Reality (AR) and Virtual Reality (VR)

Virtual Try-Ons: AR technology allows customers to visualize products in
their environment. For example, IKEA's AR app lets users see how
furniture would look in their homes.

Virtual Stores: VR creates immersive shopping experiences. Retailers like

Alibaba have experimented with virtual stores where customers can
browse and purchase products as if they were in a physical store.

3. Blockchain Technology

Secure Transactions: Blockchain ensures secure, transparent, and tamper-

proof transactions. Companies like Overstock accept Bitcoin payments,
leveraging blockchain for secure and efficient payment processing.
Supply Chain Transparency: Blockchain enhances supply chain visibility.
Walmart uses blockchain to track the provenance of food products,
ensuring safety and transparency.

4. Mobile Commerce (M-commerce)

Mobile Payment Solutions: Mobile wallets like Apple Pay and Google Pay
enable seamless and secure transactions. Starbucks' mobile app allows
customers to order and pay ahead, streamlining the purchasing process.

Shopping Apps: Retailers like Zara and ASOS have developed mobile apps
that offer a convenient shopping experience, with features like push
notifications for promotions and personalized shopping experiences.

5. Voice Commerce

Voice-Activated Shopping: Voice assistants like Amazon's Alexa and

Google Assistant allow users to make purchases using voice commands.
For instance, customers can reorder household items through Alexa
without using a screen.

Voice Search Optimization: Businesses optimize their e-commerce

platforms for voice search to capture voice-driven traffic. Companies like
Domino's enable customers to order pizza using voice commands through
their app.

6. Internet of Things (IoT)

Smart Inventory Management: IoT devices help in real-time inventory

tracking and management. Retailers like Amazon use IoT sensors in their
warehouses to monitor stock levels and automate restocking.
Connected Devices: Smart home devices, such as Samsung’s SmartThings,
enable users to control and purchase products directly from their
connected appliances.

7. Big Data Analytics

Customer Insights: E-commerce platforms like Shopify use big data to
analyse customer behaviour, enabling businesses to make data-driven
decisions and optimize marketing strategies.

Demand Forecasting: Big data helps predict market trends and consumer
demand, allowing companies like Walmart to optimize their supply chain
and inventory management.

8. Drone Delivery and Autonomous Vehicles

Faster Deliveries: Companies like Amazon Prime Air are experimenting

with drone deliveries to expedite shipping times and reduce delivery
costs.
Autonomous Delivery Robots: Businesses like Starship Technologies
deploy autonomous robots for last-mile delivery, enhancing efficiency and
reducing rely on human labour.
FUTURE TRENDS
 Future Trends in E-commerce

E-commerce is continuously evolving, driven by technological

advancements and changing consumer behaviours. Here are
some key future trends to watch:

1. Omnichannel Retailing

Definition: Integration of online and offline channels to provide a

seamless shopping experience.

Example: A customer can browse products online, check stock availability

at a nearby store, and choose to buy online and pick up in-store (BOPIS).
Retailers like Target and Walmart are leading in omnichannel strategies.
2. Sustainability and Ethical Shopping

Definition: Increasing focus on sustainable practices and ethical sourcing.

Example: Brands like Patagonia and Allbirds emphasize eco-friendly

materials and transparency in their supply chains, appealing to
environmentally conscious consumers.
3.Voice Commerce

Definition: Shopping through voice-activated devices like smart speakers.

Example: Consumers use Amazon Echo or Google Home to reorder

household items, check product availability, or add items to their
shopping carts using voice commands.

4. Augmented Reality (AR) and Virtual Reality (VR)

Definition: Enhancing the online shopping experience with AR and VR

technologies.
Example: IKEA's AR app allows customers to visualize furniture in their
homes before making a purchase. Similarly, Sephora uses AR to let users
try on makeup virtually.

5. Subscription Services
Definition: Subscription-based e-commerce models offering curated or
replenished products on a regular basis.

Example: Subscription boxes like Birchbox (beauty products) and Blue

Apron (meal kits) provide customers with personalized, recurring
deliveries.

6. Artificial Intelligence (AI) and Machine Learning (ML)

Definition: Utilizing AI and ML for personalized recommendations,

customer service, and inventory management.

Example: Amazon uses AI to recommend products based on browsing

history and previous purchases. Chatbots powered by AI, such as those
used by H&M, assist customers in real-time.
7. Social Commerce

Definition: Shopping directly through social media platforms.

Example: Instagram and Facebook have integrated shopping features,

allowing users to purchase products without leaving the app. Influencers
also play a significant role in promoting products through their channels.

8. Blockchain Technology

Definition: Enhancing security and transparency in transactions and supply

chains.
Example: Companies like IBM and Walmart use blockchain to track the
provenance of goods, ensuring authenticity and reducing fraud in supply
chains.

9. Mobile Commerce (M-commerce)

Definition: Increasing use of mobile devices for shopping.

Example: Mobile apps and optimized websites from companies like
Amazon and Alibaba make it easy for consumers to shop on the go, with
features like one-click purchasing and mobile wallets.

10. Same-Day Delivery and Improved Logistics

Definition: Enhancing delivery speed and efficiency.

Example: Amazon Prime's same-day delivery service and the use of

drones for faster shipping solutions are revolutionizing the logistics and
delivery landscape.
CONCLUSION
In conclusion, e-commerce has fundamentally
transformed the way businesses operate and
consumers shop, offering unparalleled convenience
and global reach. It has democratized access to
markets, enabled real-time transactions, and driven
innovation in consumer engagement. While it presents
challenges such as cybersecurity risks and market
saturation, the continued growth and adaptation of e-
commerce are likely to shape the future of commerce,
influencing how products and services are bought and
sold worldwide.