PROJECT ON E-COMMERCE IN

GLOBAL SCENARIO

SUBMITTED FOR FULFILLMENT OF GENERAL

MANAGEMENT SUBJECT in M.M.S
PROGRAMME
SUBMITTED BY
MOATASIM IMRAN PARKAR
UNDER THE GUIDANCE OF
PROF:-RENAPURE L.N.

SUBMITTED TO
RAJARAM SHINDE COLLEGE OF M.B.A
PEDHAMBE, CHIPLUN

FOR THE ACADEMIC YEAR

2018-2019
 ACKNOWLEDGEMENT

Apart from the efforts by me, the success of any project depends largely on

the encouragement and guidelines of many others. I take this opportunity to

express my gratitude to the people who have been instrumental in the

successful completion of this project.

I would like to show my greatest appreciation to Mr. Laxman Renapure

(Professor, MES) .I can‘t say thank you enough for his tremendous support

and help. Without his encouragement and guidance this project would not

have materialized.

The guidance and support received from all the members who contributed

and who are contributing to this project, was vital for the success of the

project. I am grateful for their constant support and help.

1
 PREFACE

E-commerce as anything that involves an online transaction. E-commerce

provides multiple benefits to the consumers in form of availability of goods

at lower cost, wider choice and saves time. The general category of e-

commerce can be broken down into two parts: E-merchandise: E-finance. E

commerce involves conducting business using modern communication

instruments: telephone, fax, e-payment, money transfer systems, e-data

interchange and the Internet. Online businesses like financial services,

travel, entertainment, and groceries are all likely to grow. Forces influencing

the distribution of global e-commerce and its forms include economic

factors, political factors, cultural factors and supranational institutions.

It has an impact over the economy of many countries among which India is

on the top of that list. It has named as new gold rush in e-commerce. E-

commerce has many reasons that why it is very crucial in developing the

country. For the study we have taken several parts of the world such as

North America, Latin America, Europe, Middle-East, Africa and South Asia,

and Australia. E-commerce has an intent to bring some transformation in the

society and that‘s the reason it’s essential for the B2B and B2C commerce.

2
 SCOPE OF STUDY

This study being ―desk analysis" contains views of various writers and

researchers of E-commerce. This study includes the global trends including

India as a major source of E-commerce, increasing use of e- commerce in

developing nations, reasons behind success of e-commerce as an industry,

the use of e-commerce in global sourcing, advantages of E-commerce and

several more topics being covered under the project analysis. The use of e-

commerce in various countries and their influence over the people or citizens

of that country is remarkable.

3
 RESEARCH OBJECTIVES

 The study is focused on achievement of following objectives:

 To assess the latest trend in e-commerce globally.

 The impact of growth of e-commerce.

 To analyze the latest global scenario of e-commerce.

 The impact of growth on overall economy.

4
 EXECUTIVE SUMMARY

The Internet is dramatically expanding opportunities for business-to-

business (B2B), Business-to consume (B 2 C) e -commerce transactions

across borders. For B2Ctransactions especially, the Internet sets up a

potential revolution in global commerce: the individualization of trade. It

gives consumers the ability to conduct a transaction directly with a foreign

seller without traveling to the seller‘s country. While this could be done in

the past by post, telegram, phone, or fax, such sales were relatively rare

because the consumer had to know in advance where

tomake contact and what to buy. The Interne t al lows sellers to put their stor

efronts, in theform of Web pages, in front of consumers all over

the world. Technology has

expanded theconsumer marketplace to an unprecedented degree, and it will c

hangethe way we think abo trade. The implications of this

for economic development, globalization,

and cultural exchangeare immense. This creates opportunities for both

consumers and small enterprises that must not be squandered. But for all the

potential of global e-commerce, there are countless vexing policy questions

to be worked out, any one of which can threaten the viability of this nascent

form of trade. All of the Internet issues being debated in the United States —

5
consumer protect ion, data privacy, taxation, content regulation,

copyright, spam, technology deployment ,and many more— need to be

resolved at the international level as well.

However, unlike the United States,

which has a federal government and a constitutional guarantee of free trade,

global ecommerce faces two additional serious complications: no central

international authority to make the rules and regulations and no

uniform commitment to global

free trade. Moreover, conducting electronic commerce across national borde

r s adds manymore policy issues to the mix—jurisdiction,

customs duties, import and export restrictions ,intellectual property

licensing, and more — that are only now being examined.

6
 TABLE OF CONTENTS

Acknowledgement

Preface

Scope of the study

Objectives

Executive summary
I. Introduction of the topic
 Research methodology

II. Conceptual Framework

 Global trends in E-Commerce

 E-commerce in India

 E-Commerce in Global Sourcing Scenario.

 Security concern in e-commerce

 E-commerce: A Boon for the Current Economic Downturn

 Key Reasons for success of e-Commerce

 Factors affecting Distribution and form of Global e-commerce.

7
o Internet Adoption.

o Buying and selling online.

o Advertisement and searching phase.

o Payment phase

o Delivery phase.

 Brief review of literature on e-commerce.

III. Summary & Conclusion

 Reference

8
 CHAPTER-I

INTRODUCTION

E-commerce (electronic commerce or EC) is the buying and selling of goods

and services on the Internet, especially the World Wide Web. In practice,
this term and a newer term, e-business, are often used interchangeably. For
online retail selling, the term e-tailing is sometimes used

Electronic commerce is generally considered to be the sales aspect of e-

business. It also consists of the exchange of data to facilitate the financing
and payment aspects of business transactions

E-commerce can be divided into

 E-tailing or "virtual storefronts" on Web sites with online catalogs,

sometimes gathered into a "virtual mall"

 The gathering and use of demographic data through Web contacts

 Electronic Data Interchange (EDI), the business-to-business exchange

of data

 E-mail and fax and their use as media for reaching prospects and
established customers(for example, with newsletters)

 Business-to-business buying and selling

9
  The security of business transactions

Today Ecommerce is an integral part of business because of various reasons

like:

 Ease of use & Accessibility all across the globe

 Great variety & easy compassion of products from different vendors

 Trusted payment channels

 Shopping can be done sitting in the convenience of home shopping,

hence it isles time consuming.

It is therefore very important for any new entrepreneur to

understand the significance of E-Commerce and should know how to utilize
this tool for the growth and development of business.

So, whether you have an existing business or launching a brand new

business, whether the volume of your business is large or small, you can
always generate profit by demonstrating your products or services online,
thereby acquiring a large amount of viewer exposure. In concise, buying and
selling will result in profits and returns.

10
There are so many factors which make e-commerce to come to the fore front
in today's world. Saving precious time involved in business transactions is
really a prominent factor. Like for instance, net banking makes it easy to
carry out money and baking transactions in a break neck speed as compared
to the real banking scenario. This asserts the fact that Ecommerce is
beneficial to both business and consumer wise as payment and
documentations can be completed with greater efficiency and reliability.
Another important factor determining the flow of whole business is
connectivity. Connectivity is very important for both consumers and
business. Ecommerce provides better connectivity for all the potential
candidates all over the globe, thus helping in enhancing the business without
any geographical barriers. From the view point of the customer, Ecommerce
is a good platform for hassle free shopping by sitting in your home. The
customer can browse through all the products and services available and can
review and compare the prices of the similar products available in the online
space.

In global market scenario, the emergence of Ecommerce as a forerunner has

opened up various windows of opportunities for a variety of online
companies and investors. More and more resources are being directed into
electronic securities, internet facilities, business plans and new technologies
due to the boom in the space of E-commerce. As a result various new
markets have emerged from Ecommerce itself giving a boost to the global
market.

11
 Research Methodology

Sources of Data

For having the detailed study about this topic, it is necessary to have some of
the secondary information, which is collected from the following:-Books,
Websites and Newspapers. So in this basically
Secondary data is used in collecting the information. The sources of data
are:

Websites:

 Wikipedia

 Wikinvest

 India-commerce

Newspapers:

 Hindustan Times

Type of Study

The research design or type of study specifies the methods and procedures

for conducting a particular study. The type of research design applied here

are―Descriptive and ―Desk Analysis as the objective is to have knowledge

12
about the ecommerce in global Scenario. Descriptive study means situation,

but

notthe causal linkages among its different elements. Descriptive studies (suc

h asa cross

sectional study) help in generating hypothesis on which furtherresearch may

be based. Desk analysis is to Gather and analyze information, already

available in print or published on the internet.

13
 CHAPTER-II

CONCEPTUAL FRAMEWORK

Global trends in E-commerce

 Government programs are a significant vehicle for c-commerce

implementations

 Retail, grocery and logistics industries are the most active in

encouraging trading partners to implement EDI

 Small and medium sized companies demand flexible integration

solutions

 European companies focus on core competencies and outsource

technology to consulting groups

 High percentage of first time implementers seek to achieve full

integration

 Organizations are seeking a scalable, reliable system that is easy to

deploy and manage

 Software needs to be capable of handling different business processes

and must integrate with existing IT investments

As social media, app stores and global availability become standard; many

companies are looking to enhance the online customer experience. And

while retail and other transactions via Internet are customary, more than ever

companies are simplifying the ways in which customers interact with their

website and ultimately make online purchases. Here are eight trends
14
happening right now in global e-commerce that seek to enhance the user

experience:

 Micro-payments

Among the most revolutionary changes in the coming months not years is

the use of micro-payment systems from a variety of financial firms, e.g.,

PayPal, Visa, Western Union, among others, including banks. This trend

is facilitated by the W3C working group that approved these protocols and

technical standards for the interworking. These systems will change not only

how we carry money but how we value money and think

about purchases. (Consider how a purchase of $4.99 feels in a mobile app

store vs. at Dunkin' Donuts.) Payment systems that make it easier to

buy online, coupled with mobile will accelerate the usage of global e-

commerce applications.

 Mobile technologies

More people access the Internet on their mobile devices than on any other

device. We are rapidly approaching the time (if we are not already there)

where designs must be created for the mobile Web first, and for the desktop

second. Mobile technologies facilitate comparison shopping; with the advent

of barcode reader apps and price-comparison databases, a consumer could

15
snap a bar code in Wal-Mart and quickly reference product reviews and

prices on walmart.com (or compare prices with

Walmartcompetitors). Mobile technologies also facilitate impulse buys

especially with the advent of micro-payments tied to the mobile device. Just

recently, Starbucks customers can not only place an order with their

Smartphone, but also make a purchase.

 Social media

As Facebook has become the most visited site on the Web, the role of social

media, including Facebook and its local clones such as Twitter, is

increasingly important. Social media sites increasingly act as points of

entry to e-commerce sites, and vice versa, as e-commerce sites build rating,

loyalty and referral systems tied to social media. Group buying (e.g., Group

on) is also gaining mainstream ground, with many “deal of the day" sites

competing for an increasingly savvy consumer base, but improvements lie

ahead as the social aspects and user experience are refined.

 Fulfillment options

I believe that users will want to have multiple fulfillments and return options

when interacting with a vendor: ship to address, courier, pick-up in store,

return to store, etc. Having many fulfillment options is how customers view

their overall customer experience. Some companies have made a business

16
proposition online by being exceptional in service to the online channel

(e.g., Zippos).

 Global availability

Increasingly, consumers want the availability to buy products from foreign

sites and have them delivered locally. Thus, currency and customs will

be of growing concern to many online retailers. Along with this, there

will be concerns with local privacy laws and restrictions on related data

collection and storage.

 Localization

While the trend is to globalize, what‘s often more important is to localize.

User Centrica’s research clearly shows that sites that feel ‘local with proper

imagery, language, time/date, weights/measures, currency, etc. resonate far

more than sites that seem culturally distant or sterile.

 Customizability

Consumers want control, and want to be able to design the details of the

items they purchase.

 Time-based availability

17
Some of the hottest and most successful sites are those that have a time-

critical response component. Sites like Group on, Gilt and others capitalize

on the perception of limited-time availability. Creating a sense of urgency

drives traffic and purchase behavior.

Business models across the world also continue to change drastically with

the advent of ecommerce and this change is not just restricted to USA. Other

countries are also contributing to the growth of ecommerce. For example,

the United Kingdom has the biggest e-commerce market in the world when

measured by the amount spent per capita, even higher than the

USA.Theeconomy in UK is likely to grow by 10% between 2010 to 2015.

This has led to changing dynamics for the advertising industry

Amongst emerging economies, China's eCommerce presence continues to

expand. With 384million internet users, China's online shopping sales rose

to $36.6 billion in 2009 and one of the reasons behind the huge growth has

been the improved trust level for shoppers. The Chinese retailers have been

able to help consumers feel more comfortable shopping online. Ecommerce

is also expanding across the Middle East. Having recorded the world‘s

fastest growth in internet usage between 2000 and 2009, the region is now

18
home to more than 60 million internet users. Retail, travel and gaming are

the region‘s top ecommerce segments, in spite of difficulties such as the lack

of region-wide legal frameworks and logistical problems in cross-border

transportation. E-Commerce has become an important tool for businesses

worldwide not only to sell to customers but also to engage them.

Asia Pacific

Chinese and Korean online consumers are the most prolific online shoppers

the Asia Pacific region with 95 percent of Internet users intending to make a

web purchase in the next six months. Conversely, over one fourth of online

consumers In Hong Kong (27%) and Thailand (26%) and one fifth of

residents in

Japan. New Zealand, Indonesia and Australia do not plan an online purchase

m the upcoming months. Koreans who shop online are most likely to buy

books, cosmetics, clothing/accessories/shoes and groceries via the Internet in

the next six months. While connected Chinese also favor books and clothes.

40 percent plan to make an electronic purchase online. Web-savvy

Malaysians like online shopping for booking travel, with airline tickets and

hotel/tour reservations the top picks. More online Australians intend to

purchase event ticket sand non-downloadable videos/DVDs/games than any

19
other in the region. And one fifth of online Indian shoppers plan to buy non-

downloadable music.

Total online spending as a percentage of total monthly spending vanes by

country with Chinese and Korean online consumers allocating the most via

the web than any other in the region. Online consumers in New Zealand.

Australia, Malaysia and Hong Kong allocate the least.

Europe

Intention to shop online in Europe is high 79 percent of online European

consumers plan to purchase products or services via the Internet in the next

six months. Online consumers in Norway and Great Britain show the

greatest propensity with almost 90 percent planning a web purchase in the

near future. More online residents of Estonia & Croatia and Latvia indicate

they would not be making any online purchases in the next six months than

in the rest of Europe (42%. 41%. and 41%. Respectively)

More than half of online Austrians who shop via the web plan to buy books,

while online Germans and Czechs intend to turn to the Internet for clothing

and shoes more than any other online shoppers in the region .Future online

purchases for Norwegians are likely to include a vacation or a show as

20
indicated by their strong intent to purchase travel aid event tickets More than

one third of online Brits plan to purchase DVDs and games online. While

connected Greeks indicate a preference for electronic equipment and

computer hardware. Web-savvy Israelis seek the Internet to purchase

electronic equipment more than any other item and are the least likely in the

region to purchase clothing or shoes online.

North America

Half of online Americans favor sites for stores that can only be shopped

online and the majority of Canadian web shoppers are split between a

preference for online-only sites (31%) and those that have traditional

physical stores (19%) the list of products and services that are favored by

American and Canadian online shoppers is almost identical. Books, clothing

and airline tickets are the items most likely tagged for online purchase in the

next six months. One-third of online Canadians say they don‘t plan on

making an online purchase in the next six months, which is more than the

one-fifth of connected Americans who said the same. In fact, 28 percent of

online Canadian consumers indicate that they have never shopped online

compared to 15 percent of Americans.

21
When selecting the top three sources to guide decisions, online product

reviews are useful to 42percent of American and 40 percent of Canadian

web shoppers. Online reviews are most important when buying consumer

electronics, cars and software and when researching cars. Electronics and

travel.

Latin America

Connected Brazilians are the most prolific online shoppers in the region with

84 percent planning to make an online purchase in the next six months. The

items that top the list are books, electronic equipment. Computer hardware

and DVD5/games. Conversely, online Colombians are the least likely shop

online in the near future 36 percent indicate they have no plans to shop

virally in the next six months and more than one-fifth indicate they have

never shopped online.

Electronic equipment tops the list for planned online purchases for 34

percent of Venezuelan web shoppers followed by airline tickets (27%) and

computer hardware (21%). Surprisingly, a book which typically tops the list

for most online shoppers was favored by only 18 percent of online shoppers

in this country.

22
Online purchase intent in Mexico is evenly divided among the top eight

products and services: books (3 0%), electronic equipment (25%).

tours/hotel reservations (24%) event tickets and music (22%), computer

hardware (21%) clothing and video/dvd1s/games (18%). Also equally

distributed is the choice of sites that connected Mexicans prefer when

shopping online.

Middle East / Africa / Pakistan

Shopping online Is the most underdeveloped In the Middle East, Africa and

Pakistan region. Almost half (47%) of online consumers indicate they have

never made an online purchase the highest percent of any other region in the

world. Of those connected consumers who have online access, one-third say

they do not plan on making a purchase in the next six months.

The most popular products and services for planned online purchase across

the M EAP region are books (29%), airline tickets/reservations (24%) and

electronic equipment such as TV‘S and Cameras (23%). Other popular

planned online picks for South Africans are event tickets (33%) and non-

downloadable music (26%). Online residents of the United Arab Emirates

intend to book travel (27%) and buy clothing (25%). Web-savvy Pakistanis

will look online to buy computer hardware (25%) and clothing (18%),

23
although they also lead the region saying they do not plan on making an

online purchase in the next six months (38%).

Social media is not yet playing much of a role in influencing consumers‘

purchasing online,, but Saudis are most likely to use such sites to help make

buying decisions. While the majority on online consumers in the region is

not more likely to share a negative rather than a positive experience online,

Egyptians and Saudis are more likely than any other in the region. Online

reviews and opinions were most Important when buying and researching

cars, software and consumer electronics.

E-commerce in India
New Gold Rush in E-commerce in India
Kunal Bahl, founder- CEO of e-commerce site Snapdeal.com bought out

eSportsbuy.com for an estimated of Rs.50 crore.

Bahl has 20 million (Rs. 100 crore) stash for acquisition-significant because

Snap deal is itself a startup-but a rich on. It has raised Rs.52 million from

ventures funds.

24
Bahl is not alone who is scouting for potential suitor. In February this year

aggressively online shopping site Flipkart.com acquired rival Letsbuy.com.

Early last year, US-based social buying

site group on acquired India‘s SoSasta.com and renamed it as Crazeal.com.

And so it seems that e-commerce is not about customers buying goods. It is

about firms’ shopping for others. Industry trackers say leading sites are

gobbling up rivals to build size, or acquiring customer niches either to add

product segments or to get technologies that help efficient operations.

In the game in which future share issues are on the radar for bigger players,

the smaller ones often prefer to cash out than be crushed in lonely pursuits in

an aggressively competitive game.

At stake is a huge market will grow potential because India has 900 million

mobile phones, with a big chunk of that growing up from voice talk to

Internet, while the current Web user base at more than 100 million is in itself

a significant number.

25
Industry estimates say India‘s e commerce market will zoom from the

current Rs.51000 crore toRs.10, 20,000 crore in revenues by 2020. The race

leads to buyouts-often at the cost of profitability.

At present sites are falling over each other to offer deep discounts, but you

do not survive only through discounts. This only creates a disloyal discount

shopper who moves from one site to another in search of the cheaper deal, ‖

said Mahesh Murthy, managing partner of investment firm See fund

Advisors. Murthy added that sites without a credible differentiation strategy

and loyal customer’s base would bleed-and will be up for grabs.

Experts say acquisition of other sites is also a good strategy to build brand

and broaden a loyal customer base. Snapdeal.com snapped up

eSportsbuy.com to get access to its large catalogue of sports and fitness

products. Flipkart.com started out with books, added cameras and mobile

Handsets and then got Letsbuy.com to acquire muscle in electronic goods,

while Grouping’s Buyout was to enter India.

26
There is no room for newer players in the general category but there is space

for niche category players,‖ he said. This has been observed by Prashanth

Prakash, partner at Acela partners, which has invested in Flipkart.com.

Private enquiry is doing a huge amount of work backstage. Venture

capitalists say they more than doubled the funding level in e-commerce over

the past year, and the average size of investment has ranged from Rs.20 to

40 million.

However, having a deep pocket is no guarantee to success. ―Money can

only delay your death. The only key to survive is to have a credible

differentiation strategy, ‖ Murthy said.

Size is not everything, but could help if investors have a sense of timing.

―As the e commerce companies grow and get brand loyalty the valuations

are expected to increase even further. It will be the time when we can

offload our stake, for hefty profits,‖ a venture capitalist with significant stake

in leading e-commerce site.

27
Hundreds of Internet startups went bust in 2000 and 2001 in the ―dotcom

bubble‖ and comparing the current e-commerce rush to that may not be

farfetched said Shailen Amin, co-founder and CEO of footwear sites

Bestylish.com.

There are a lot of guys in this business who don‘t have a retail background.

They are form either consulting or technology. So one should ask if they are

really qualified to run e-retail businesses.

In the world where old-fashioned retail meets high-technology and

innovative management, thinners could well be those who understand

dimensions.

What the consolidation?

 High operational costs affect profit margins.

 Most e-commerce sites compete on deep discounts, which hit their

margins.

28
  Some firms feel the time is right to cash in on brand, customer base.

 Private equity (PE) and venture capitalists (VC) are eyeing safe exit

while e-commerce ventures are still profitable.

What makes a Long-Term Player?

 Loyal customer base, fundamentally strong business models, clear

product/service differentiation.

 Deep pockets to tide over initial gestation period.

Challenges for E-Commerce Sites

 Low customer loyalty

 High returns rates on cash-on-delivery

 High cost of customer retention

29
State of Play

 Acquiring site is a good way to build brand, broaden loyal customer

base and add categories.

 The companies that are selling have real valuations, real transactions

and real customers, and are not based on eyeballs.

E-commerce companies in India offers the most tangible and finest e-

commerce solutions, provide high end e-commerce solution taking utmost

care of the privacy and security of the e-commerce website. E Commerce

service includes shopping carts, database programmers, graphic design

services, graphics, e business, Flash designs etc.

Top ten e-commerce companies in India

 20North.com:

30
This website offers variety of products like electronics, books, music,

movies, and car accessories. The site also offers lucrative deals. Log onto the

site to shop. Happy Shopping!!!

 99labels.com:

This site offers many fashion and luxury brands at good prices. Check this

site for more brands.

 Dealsandyou.com:

This site offers various kinds of deals be it holidays, shirts etc. Also this

site gives heavy discounts on regular basis that cab be profitable for the

shoppers. Browse this site for more.

 Fashionandyou.com:

This site also is a great place to shop and that too sitting at home. Also this

site declares sale and heavy discounts almost every day. Sign Up today to

get more deals.

 Flipkart :

31
This site offers various kinds of products and that too at one place. Mobile,

its accessories, books, camera and laptop accessories. And many more things

are available on this site. One can find deals for home appliances also that

are available at affordable prices. Check this site

 Indiangiftsportal:

This is known for providing gifts for various occasions like birthdays,

anniversary, wedding, bhai dooj, Diwali and many more .Also flowers,

cakes, chocolates and many more things are offered by this site. Browse it

today to send gifts to your loved ones.

 MagazineMall:

This company specifically deals in magazines and one can get magazines of

different and unique categories like Gardening/Housekeeping, lifestyle,

fashion, luxury, current affairs and many more.

 Bindaasbargain:

Here new deal comes every day at 10 am and it is India's first One Deal a

Day online shoppingsite.Check out the site for new deal. Happy Shopping

 Buytheprice.com:

32
The site offers Mobiles, Computers, Cameras, Home Appliances, Life style,

Audio and Video and much more. Varieties of products are available under

each category.

 Perfume2order:

It has categories like Perfumes for Men, Perfumes for Women, Deodorants

& Deo Stick, Perfume Gift Set, Designer Wallet & Belts, Flowers, Handbags

& Clutches, Sunglasses and many more things.

E-commerce in Global Sourcing Scenario

What Is E-commerce And How Does It Augments Global Sourcing?

E-commerce or electronic commerce, as it is popular, allows domestic as

well as international trade over the Internet. The advent of E-commerce is

boon for global sourcing and import and export. The boost to global

sourcing and import/export through E-commerce is because of its to conduct

online marketing, monitoring supply chain and monetary & data transaction

in a dependable manner.

Evolution of E-commerce with Global Sourcing?

33
It is hard to tell whether import/export volume has swelled because of E-

commerce but sure it made global sourcing easier to monitor with its

evolutionary phases. Three decades ago, it facilitated fund transfers- albeit

electronically besides facilitating exchange of POs and invoices in

international trade. Electronic teller machines are the recent manifestations

now overtaken by internet credit card processing and endorsement of

unsigned invoices even in international trade.

Why is E-commerce Popular in International Trade and Import/Export?

Looked at from both import and export traders' perspective, international

trade is easier conducted electronically. Here are the points why present

international trade depends much on E-commerce.

 Quick and ease of setting up E-commerce storefronts for both global

sourcing as well as import/export.

 Automatic running off of an import and export outfit without having

to recruit many staff.

34
  Global sourcing agents/companies can evaluate/list import/export

vendor Online.

 Software assisted documentation for each global sourcing and import

export transaction

 Ability to handle multiple, quick and secure data and money

transaction crucial to international trade, simultaneously

In international trade, global sourcing happens to be one of the chief aspects

of import and export business. Global sourcing is an integral part of B2b

scenario and has essentially transformed world economies as well as boosted

business in a great way. Nonetheless, it is also giving great transformation to

the work culture around the globe with China playing a lead role in global

sourcing. Nevertheless, it is also transforming work cultures around the

world silently with China business playing a major role.

Being an extension of open market dynamics, global sourcing facilitates the

export and import of goods to be in the reach of several small and medium

enterprises in different countries. In thisb2b scenario, E-commerce plays an

active role in the global sourcing where the business houses are putting in

35
deep efforts and reaping the benefits. In this rally of export and import,

traders happen to claim the share of the pie in global sourcing.

E Commerce & Global Sourcing

 Global sourcing is one of the widely known strategies of ensuring

smooth business and access to markets in a cost effective manner. In

such a scenario, E-commerce has brought in a new transformation. It

has added to advantages like removing the barriers of time zones,

differences in costs, geographical locations etc. This has resulted in a

major push in development in infrastructure, technology and several

other sectors across the globe. As we see, E commerce is driving the

export and import and propelling the economic growth of numerous

developing as well as developed nations. Business strategies are

becoming easy to execute and business houses are having a wide

range of options from where they can make their choices.

 E-commerce has made the path of business smoother and has

facilitated not only in lower cost, but also resulted in procuring

material from places where there is specialization. Moreover, business

negotiations are easier and decisions are quicker due to this boon.

36
 Driving the import and export business in this global sourcing

scenario has opened new frontiers for higher growth. The ease in

supply chain is one of the best advantages that have come from e-

commerce in the global sourcing scenario.

 China, a major player in the global sourcing scenario has reaped

several benefits in the e-commerce enabled era. The use of internet

has facilitated trade and boosted it at an immense rate. Business from

all over the world has been bagged by this country in spite of the

competitive market. Chinese traders have minted fast money and are

still running in that race.

Security concerns in Global Sourcing

E-commerce is not without security concerns, loss/misuse of encrypted data

which are still being seriously being viewed by import/export operators

before engaging in international trade electronically. The truth is E-

commerce providers employ SSL (Secure Sockets Layer) to encrypt

data/money (remember banks) transfer from your desktop to your clients'.

37
You can say-commerce is secure for both import/export operators as well as

global sourcing agents alike.

E-commerce has arrived on the global sourcing scene as both import and

export and international trade partners are accepting it. Despite its growing

stature and popularity E-commerce is still thriving in retail sector

domestically and the international trade needs to cover a long distance

before it catches up. Another reason for import/export operators' leaning

towards E-commerce is the growing costs of delays in processing POs and

invoices through traditional methods which render global sourcing useless.

E-commerce: A Boon for the Current Economic Downturn

E-commerce: A Boon for India

By the end of 2011, the e-commerce market in India had clocked close to Rs

50,000 cores. It is interesting to consider whether the global economic

downturn may have negatively impacted the growth of e-commerce or

possibly accelerated it as consumers look to new online channels which can

often deliver greater value than traditional stores.

38
Today, even though there are less than 10 million internet users who are

actually engaging in e-commerce activities, there are about 150

million internet users in India or around 75 million households that are ready

for e-commerce.

The growing reach in terms of internet connectivity to the interiors of India

coupled with the positive experiences of end consumers when buying online

beyond the metros and big cities are key drivers of the e-commerce boon in

India. Businesses in even the smallest towns and villages are becoming

increasingly aware of e-commerce and are excited by the growth potential.

The growing penetration of e-commerce along with positive consumer

experiences is reflected in a trend towards higher value online purchases.

Today, consumers across urban India are confident enough to make

purchases that exceed Rs 20,000-25,000. Earlier, the same shoppers stayed

in the Rs 2,000-5,000 ranges. According to one study almost 57% of

business for e-commerce product sites came from tier I, tier II and tier III

cities while the eight metros accounted for the remainder 43%. The same

39
pattern was visible in the service sites too, with tier I, tier II and tier III cities

contributing 54% of revenue versus 46 % by the eight metros.

According to a report by the IAMAI, the current e-commerce market in

India is around US$ 10billion. But with different levels of adoption, the

market has the potential to grow anywhere between US$ 70 billion US$ 150

billion under one scenario and at another level it can grow between US$ 125

billion US$ 260 billion by 2024-25.

E-commerce: The world over globally, the scenario is much the same.

Brazil, one of fastest growing economies in Latin America, is seeing

considerable growth. According to a recent report, it estimates business-to-

consumer (B2C) ecommerce, including both retail e-commerce and online

travel sales, will total to $18.7 billion in 2012, a growth of 21.9% over the

previous year. Brazil will account for more than half of the totalB2C e-

commerce sales in Latin America through 2013, thanks in large to its huge

populace and growing number of online buyers

Retail e-commerce itself in the U.S.is predicted to grow at 17% and it will

likely account for $200 billion in sales in 2012, according to a presentation

40
at a popular forum. Retail e-commerce totaled $48.2 billion during the third

quarter of 2011; an increase of 13.7% compared with the third quarter of

2010, according to estimates from the U.S. Census Bureau. 2011 also saw

the European online market boom despite the floundering euro. Germany‘s

online trade increased 17% in 2011to €21.48billion compared to 2010,

crossing the €20 billion mark for the first time, outstripping traditional mail

order sales by 10%. A similar growth rate of 10% to15% is expected in

2012.

In the global scenario, China is fast emerging as the biggest player in e-

commerce. According to an e-commerce report, by 2015, it may well

surpass the U.S. In an astonishing illustration of its online growth rate,

China has added the equivalent of the entire population of France in

internet users in each of the last four years. It will add the equivalent of

the entire population of Canada as e-shoppers in each of the next four years.

China is projected to rise from 145 million e-shoppers today to 329 million

by 2015.

Key reasons for the success of e-commerce

41
  Shopping 24x7

E-commerce facilitates shopping anytime, anywhere and for almost anything

desired. Busy consumers prefer this to the restrictions of when a mall/shop is

open and the need to physically travel to a shop. Online business takes

shopping a step further by taking itself to the customer creating

conveniences of shopping anywhere and at anytime.

 Reduced operational cost:

Since the entire business can be moved online, the need for physical stores

has become obsolete. Less infrastructural investment and associated labor

costs drives up the profit margin. The seller can then transfer this benefit to

the customer in the form of discounted pricing which boosts the appeal

of online shopping

 Easy to compare:

It is far easier and quicker to compare prices of goods online, equipping the

customer with the information to decide the right price or terms for

themselves. The comparison is not restricted to items from single seller, or a

42
single region. One can explore products across global markets via e

commerce.

 Safe & secure

Customers can trust the process of going online and purchasing only when

transactions are fast, convenient and secure. A high degree of integrity is

possible only when the online electronic payment provider is reputable and

trustworthy. In India, all payment transaction providers are required to

comply with the security requirements laid out by the Reserve Bank of India

making the system more robust and reliable

 Increased reach for the merchant

Just as the customer finds them able to venture across geographic markets,

the merchant too is able to display his product to customers in new

territories. Market penetration also becomes far more achievable with e-

commerce; it is possible for a merchant in Mumbai to extend his reach to

north-eastern cities or even rural villages that are now connected by the

online network.

43
  Social media trend

In India, with the increasing propensity of social media, businesses have

now begun to engage their customers on social networking portals such as

Facebook. Promotions, sales and new products are increasingly showcased

through such channels and mobile apps are now available that suggest

products to users based on their profiles. These are likely to be rapidly

developing marketing channels for the future.

The e-commerce world is changing rapidly in the digitized world. These e-

commerce developments may have been accelerated by the global economic

downturn which may be driving consumers to find new ways of reducing

their costs of living. The online channel offers a clear value proposition

for both merchants and consumers making it the most sought after and

exciting business model today

44
Factors influence distribution and forms of global e-commerce
Stage Economic Socio Political Supranationa
and culture legal factors l institutions
infrastructur factors
e related
factors
Internet Per capita Literacy The UNDP
adoption GDP rate and internet’s introduction of
computer democratic the internet in
skill nature many
incompatibl countries
e with
authoritarian
political
Availability of English Structures GATS
telephone and language competition in
computer skill telecom
sectors
Pricing Viewed as Tariff and ITA reducing
structure tool of non-tariff the price of
cultural barriers to ITC products
imperialis ITC
m in some products
Buying/sellin Availability of Intellectual Redress UNCITRAL
g online credit property mechanism model law
protection in case of

45
 problems in
online
transaction
Advertising Operating Influence Ban on Products can
and searching speed of of language some be advertised
phase computer and and symbol website and searched
used on authorizatio
n

46
 Modern size Site visited Regimes Globally on
and purchase GTPN of
decision UNCTAD
Payment Penetration Forms of Governments UNCTAD
phase rate of credit payment concern on smart card
cards check , wire the outflow of
transfer , currency
cash on
deliver etc.
Delivery Delivery Products Tariff and Electronic
phase means and stolen some non-tariff delivery free
infrastructure countries barriers of custom
duties in
WTO
member

47
Brief Literature Review
In present scenario E-Commerce is playing very essential role in the online

business. Although it’s one of the best & cheapest intermediate for reaching

out to new customers in the online market, if e-commerce implemented

effectively, it also offers a smart way of doing online business & expanding

it more. An online business ecommerce podium is planned & implemented

to make the most of its reach to potential customers and provide them with a

convenient, satisfying & protected shopping experience.

Advantages of E-Commerce to the Online Business

 E-Commerce helps to Increase the sales revenue to the business

 Business people can spend less money and earn high profits with e-

commerce

 It is very Easier to scale up online

 Easily we can track the segment of customers who are happy with

purchasing goods through online

 Avoid losing sales to competitors who are online

48
 Instantaneous global sales presence in quick time

 We can Operate the business in 24 *7 basis

 Easily we can increase our business customers

 We set up shop anywhere in the world, self-governing of geographical

locations

 Inexpensive way to turn your Web site into a revenue center

 Reduce Customer Support costs via e-mail marketing & customary

newsletters

 We can create customized mailing list

 Easily we can drive free traffic to the website

49
  Instantly we can develop our business across the internet by using

various e-commerce strategies

 Customers can easily buy their products by using different payment

gateways

 Develop more shopping carts by using e-commerce

 We can easily promote our business website by using various

promotional activities such as Search Engine Optimization, Pay Per

Click Management, Email Marketing, Social Media Optimization,

Online Banner Advertisement, Online Branding and Affiliate

Managementetc

B2C - business to consumer

In the Australian context B2C (business to consumer) trading activity has

been slow to take off as at first consumers had doubts about the security of

credit card transactions.

50
Initial B2C trading focused on music CDs, software and books - items which

were compact and easily shipped and where prices could be slashed once the

retailer's cut was taken out of the margin. The Amazon book store would be

a good example of this. These products pushed the perimeters of the market

out for goods bought on-line.

Books and CDs are relatively generic products. A CD bought in the US will

have the same music and quality as one bought locally (the exception is the

cover art) and so there is no doubt in the consumers mind exactly what the

product is. This is not the case with clothing, where sizes can confuse the

purchase decision... and where tactile senses figure strongly in the

purchasing decision.

EBay has really transformed purchasing behavior on the web. Many people

have made their first ecommerce transaction on EBay. Many people sell on

EBay too, given raise to the work-from-home/drop shipping model of

ecommerce.

51
Interestingly though B2C transactions of previously localized or hard to find

products can be extremely strong. If you have a unique product that is highly

relevant to a niche audience, you are likely to do very well on the web.

Although sales are increasing rapidly on the Internet, the volume of turnover

figures continues to fall short of industry estimates. But as retail web sites

become more navigable and privacy policies are displayed, more people will

be drawn to Net-based purchasing by lower prices and convenience.

B2B - business to business

On the Internet, B2B (business to business) is the exchange of products or

services between businesses rather than between businesses and consumers.

Although early interest centered on the growth of retailing on the Internet,

forecasts are that B2B revenue will far exceed B2C revenue in the near

future.

52
According to studies published in early 2000, the money volume of B2B

exceeds that of B2C by 10 to 1. Over the next five years, B2B is expected to

have a compound annual growth of 41%.

Payment Gateways

Both PayPal and Playmate offer credit card to bank account payments.

Using one of these services you can invoice a customer, they can pay on

Playmate and the funds will be deposited in your bank account ... less a

transaction fee.

Unlike a credit card merchant facility you will not have ongoing, minimum

monthly fees... and the transaction fee is better than what most card

companies offer small merchants. Additional these services are being backed

into other ecommerce sites and shopping carts. EBay for example uses

PayPal to process some payments.

The Rise and Rise of Auction Sites

53
Auction sites such as EBay and Trade Me have done an enormous amount to

get ordinary people involved in online trading. Today many EBay merchants

are establishing their own web sites to avoid EBay and Pay Pal fees. They

have learnt about how to present their product in their EBay store and what

issues are important to their customers in purchasing their product and now

they are ready to start their own web site.

Security

On the Internet, security is handled by passing "keys" between Internet

server and client browser. When entering a secure site your browser is

passed a public key by which transactions between you and the web server

are encrypted. The server’s key is always kept private.

On your web site security can be handled two ways - depending on your

budget. You can “piggyback" on someone else's "key" or you can register

and pay for your own key ores certificate at Thwate or Verisign.

54
Generally today businesses who host web sites offer access to a secure

server and you can use their server and secure certificate for less than if you

registered and paid for your own key.

However the person browsing your site will notice the URL change to one

they do not recognize - or trust. This may put your customers off (although

there is no evidence of this). Therefore one of the advantages of buying your

own key would be to have a URL for your secure pages that is consistent

with the rest of your site.

Presently, in Australia, Verisign may sell you a key for over $800 while

foreign ecommerce providers like Instant SSL can sell it for $150. Although

Verisign will argue that their key comes with a range of value add benefits,

the bottom line is the product, i.e. the key, is the same.

55
 CHAPTER-III

SUMMARY AND CONCLUSION

 There is a wide acceptance of e-commerce in world due to the internet

facilities available.

 The countries such as India, Brazil, and China etc. which are on the

path of development are using e-commerce for carry out various

transactions.

 The e-commerce can surpass geographical limits and can prove to be

worthy by reaching to customers. It caters to the demands of both the

national and the international market.

 The e-commerce can help in providing an edge to your rivals in the

market as one can better serve them globally.

56
 The Countries such as USA, Australia, Canada, UK etc. are trying to

come up with something innovative which will change the current

scenario.

 The countries are well aware of its benefits and are becoming more

innovative in this field as customers can easily select products from

different providers without moving around physically and it also help

business to handle its resources well.

57
 REFERENCES

Web

 http://www.articlesnatch.com/Article/E-commerce-In-Global-

Sourcing-Scenario/218150(last accessed on 20th march , 2012)

 http://usa.usembassy.de/economy-ecommerce.htm(last accessed on

20th march , 2012)

 http://archive.unctad.org/templates/webflyer.asp?docid=4253&intItem

ID=2261&lang=1(last accessed on 20th march , 2012)

 http://en.wikibooks.org/wiki/ECommerce_and_EBusiness/ECommerc

e_in_Developing_Countries(last accessed on 20th march ,2012)

 http://www.wipo.int/copyright/en/ecommerce/ip_survey/chap5.html(l

ast accessed on 20th march , 2012)

58
  http://www.nytimes.com/2003/11/24/business/e-commerce-report-

sensing-economic-opportunities-many-developing-nations-

are.html?pagewanted=all&src=pm(last accessedon 20th march, 2012)

 http://www.isoc.org/inet99/proceedings/1g/1g_2.htm(last accessed on

20th march, 2012)

 http://www.bestindiansites.com/top-companies/e-commerce/ (last

accessed on 20th march, 2012)

 http://www.india-ecommerce.com/ecommerce-web-

development.html(last accessed on 20th march,2012)

Books

 Laudon Kenneth C., Traver Carol Guercio (2008) , E-commerce

Business , technology ,society ,New Delhi ,Pearson Education

Newspapers

 Hindustan Times

59