EMERGING TRENDS IN
E-COMMERCE
Leveraging the Internet and World Wide Web to
generate revenue.
BY
SEEMA YADAV
SECTION-A
WHAT IS E-COMMERCE?
Electronic commerce or e-commerce consists primarily
of the distributing, buying, selling, marketing, and
servicing of products or services over electronic systems .
It can involve electronic funds transfer, supply chain
management, e-marketing, online marketing, online
transaction processing, electronic data interchange (EDI),
automated inventory management systems, and
automated data collection systems.
It typically uses electronic communications technology
such as the Internet, extranets, e-mail, e-books,
databases, and mobile phones.
DISTINCT CATEGORIES OF E-
COMMERCE
Now we also have
business to government
(B2G)
also.
In the early days of the Internet, many companies
implemented standalone Web stores that were separate
from their accounting system.
This meant managing inventory in both locations and
hand-keying orders received from their Web store.
These Web stores gave customers the ability to place
orders online at their convenience, but often the orders
were error-ridden because the Web site was out of date
or the order was incorrectly re-keyed.
The online stores often caused more problems than they
solved
In response, a new generation of Web stores has hit the
market. These solutions are feature-rich, completely
customizable, and are fully integrated to the
accounting system.
These new Web stores offer many customer self-
service options. Accounts receivable and order history
is displayed on the Web. Customers can re-order past
or existing orders with a single click of their mouse.
They can use their credit cards to pay online,
Emerging trend in E-commerce
[Link] COMMERCE
Any electronic transaction or information interaction
conducted using a wireless, mobile device, and mobile
networks.
Business transactions and payments conducted in a non-pc
based environment.
M-Commerce is not about selling products and services on
a mobile device.
The transmission of data without wires.
The drivers of M-Commerce:
Interestin the Internet
Deployment of High Speed Networks
Growth in Mobile Devices
Several categories of service comprise M-Commerce:
Information-based consumer services
Transaction services
Location centric, personalized services
Mobile Commerce
Location is the critical factor in M-Commerce.
The wireless channel for promotions can target
promotion campaigns for individual stores.
Another benefit of location-centricity is in location
tracking of products, services and even people.
Benefits to consumers.
Convenience and flexibility.
8
Mobile Commerce
Satellite
Cellular Systems
Handheld
Transmitter/Receiver
Device
9
Mobile Commerce
Satellite
Discount store Centralized
database Cellular
Supermarket ?? User
10
Mobile Commerce
For M-Commerce to be successful, four critical
factors are monitored:
Mobility – Most people consider their mobility
critical to their lifestyle.
Personalization – Individualized service.
Global standardization – One bill, one password
and one user interface.
Customer profiling – Takes into consideration
personalization features, as well as customization.
11
2. Wi-Fi
Why Wireless?
The wireless Web is a technological frontier, open
and growing.
The goal of wireless is to enable mobile
computing.
Wireless mobile technology makes information
availability anywhere.
With wireless technology, information can be
accessed as it happens.
The most obvious benefits are time and money.
Another benefit relates to shopping.
12
Wireless Fidelity (Wi-Fi)
Represents a collection of related wireless
technologies.
An emerging industry standard that makes it
possible for hardware firms to create wireless
products.
The appeal of Wi-Fi is for home users as well as in
business.
E-Commerce continues to grow at phenomenal
rates, although most of the development involves
wired infrastructures.
13
The wireless Web works in four major areas:
Wireless work environments.
Employees help companies reach suppliers and
improve customer service.
Smart environment with no more handwritten
reports or bills.
Open new shortcuts to stock trading, banking and
more.
14
[Link] APPLICATION PROTOCOL
In 1997, WAP Forum was formed to create a
standardized solution to the problem of how to
provide Internet access from mobile phones.
An open, global, industry-wide mobile
specifications for wireless network architecture.
The basis for the mobile Internet.
One is able to access the Internet and keep in touch
with anyone, anywhere, anytime via a micro
browser-equipped wireless phone.
15
WAP ARCHITECTURE
WAP
Wireless WAP Server
network Gateway (WML)
WAP device Base station HTML to
WML
filter
Web server
(HTML)
Web server
(HTML)
Internet
Web server
(HTML) 16
In M-Commerce using WAP, a gateway is used at
the intersection of the wireless mobile network and
the conventional wired network to conduct e-
business.
Customer Domain MSP Domain Merchant Domain
Wireless Wired
Network Network
WAP Device WAP Gateway Web Server
17
WAP Benefits
Greater mobility and instant access to critical
information.
Increased productivity from anywhere at any time.
Tailored WAP applications for the business
community.
WAP applications to capture micro payments.
Other experts believe that WAP applications will
link business transaction systems to other
machines in the future.
18
WAP Limitations
Small screens with questionable clarity.
High latency delays before making the
connections.
Challenging without the use of keyboard and
mouse.
Limited device memory.
Questionable connections for reliability.
19
[Link] Mining
The process of searching a large database to
discover previously unknown patterns.
Automates the process of finding predictive
information.
Discovers previously unknown relationships
among data.
Companies believe that many of their customers
follow patterns of behavior that the company does
not yet recognize, and so, cannot take advantage
of.
20
Data Mining
E-commerce is ideal for data mining because many
of the ingredients required for successful data
mining are easily satisfied.
Data mining must be integrated into the E-
commerce systems with the appropriate data from
the transaction processing system to the data
warehouse and vice versa.
21
[Link] Agents
Programs used extensively on the Web, that perform
tasks such as retrieving and delivering information
and automating repetitive tasks.
Software entities that are able to execute a wide
range of functional tasks.
They will play crucial role in all aspects of
enterprise portals.
The technology offers some interesting options for
addressing certain needs.
22
Intelligent Agents
Some software agents can track ratings of buyer
and seller reputations, create and search databases
of all kinds of buy-sell transactions on the Web.
Software agents can be used in E-commerce to
support tasks such as comparing prices,
interpreting information, monitoring activities and
working as an assistant.
Users use both search engines and intelligent
agents in E-commerce.
23
Ecommerce Trends for 2010
Despite the worldwide recession, ecommerce continues
to build sales momentum thanks to merchant
initiatives, growth in the mobility sector and more
sophisticated back-end systems, according to a new
report entitled 10 Ecommerce.
Trends for 2010 that we released this week. The report
says that online shopping is moving from a transaction
mentality to one that also embodies discovery,
entertainment and social bonding experiences.
24
Five of the report’s key ecommerce trends for 2010
include:
A Smarter Mobility:
Smartphone growth with its wider screens and compelling
applications will continue to accelerate in 2010. Just as
ecommerce sites have contributed to sales in physical
stores, we will see more aggressive pushes by mobile
applications to drive ecommerce sales. One emerging way
will be through Augmented Reality (AR), where
information is overlaid on images or vide
25
Fulfillment Rules:
More retailers will consider regional fulfillment centers
because of the volatility of fuel costs and marketplace
demand for accelerated delivery times. To minimize
inventory, drop shipping from manufacturers will gain
traction. Reverse logistics will also be a point of
emphasis as recapturing the value of goods not only
fits into heightened environmental concerns, but for
businesses represents an opportunity to reduce costs,
increase customer satisfaction and increase marketing
opportunities by offering refurbished products.
26
Customer Service is Everywhere:
As consumers utilize an increasing number of
communication channels – from texting to responding to
YouTube videos, their expectations to access information,
express themselves, and receive feedback in an immediate
time frame, poses a complex challenge that e-retailers are
beginning to take very seriously. As a result, Call Centers
are being replaced with Customer Experience Centers that
deliver consistent superior touchpoints with consumers
over a wide spectrum of communication channels.
27
Being Relevant is Virally Important:
Whether they like it or not, e-retailers are expected and
valued as more than suppliers of goods and services.
Accordingly, they must proactively take on personalities
that their market segments feel comfortable with. This
relevancy requires e-retailers actively listen, converse and
engage in a variety of areas such as online destinations and
social responsibility forums,
28
Business Intelligence Meets Business Process:
While companies retain a wealth of data, they often
lack the capture tools, analytical processes and
personnel bandwidth to turn this information into
actionable activities. In 2010, there will be a greater
commitment to unleash the intelligence residing in
data banks to create sophisticated marketing and sales
business processes that provide competitive
advantages.
29
GENERAL TRENDS
Trend 1- E-commerce is Doing Well.
Business-to-Consumer electronic commerce is
growing.
But, the growth rate has gone down.
There is considerable potential for growth.
Key players have shifted from a retailer business
model to a platform model.
30
US E-Commerce Trend
(Source: Forrester Research)
$250 60%
51% $220
48%
50%
$200
$176
40%
$150 $141
% YOY
US$B $114 30%
25% 25% growth
24%
$100
$76 20%
$50
10%
$0 0%
2002 2003 2004 2005 2006
31
Trend 2- The Web is now Worldwide
After all these years, the World Wide Web is living up
to its name.
The World Wide Web is now a dynamic global
communication platform.
New patterns of trading.
Buyers/Sellers from around the world.
New patterns of communication.
32
Global Picture
33
34
Trend 3- Advertising is growing faster than
commerce.
Online advertising is replacing commerce as the killer
business model.
As content grows, advertising grows.
Search dominating online advertising with 40% of
revenue.
35
Trend 4- User-generated Content
36 Top blog on the Internet (Xu Jinglei)
Trend 5- Emergence of Global Sourcing
Platforms.
Global Sourcing Platforms help small and medium
enterprises find buyers for their products.
Two prime examples
[Link]
[Link]
37
38
39
