INTRODUCTION

At present, in the world of internet,
everything has become online and there are many e-commerce and e-business
websites which are providing online services worldwide. In order to understand
about e-business, first we should know the meaning of business. A business is
“an organization or economic system where goods and services are exchanged for
one another or for money.”1
Whereas e-business means Electronic Business, where business is operated and
conducted with the help of internet. In this type of business transactions, the
parties interact electronically, where internet is used as a medium to promote
the business, but not by usual mode of physical exchanges or direct physical
contact.2
Some of the e-business websites that are emerging as a great success are
Amazon, eBay, Flipkart, Jabong etc.On the other hand, e-commerce means the
process of buying and selling of goods and services, or the transmitting of
funds or data, through an electronic medium, primarily being internet.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

BRIEF
HISTORY OF E-COMMERCE

The history and evolution of the concept
of e-commerce traces back to 1960s, that’s when businesses in order to share
business documents with other companies, started to use Electronic Data
Interchange (EDI) as a means. Later in the year 1979, the American National
Standards Institute has developed a universal standard for businesses so as to
share the documents through electronic networks and it is known as ASC X12.3 Finally
in 1990s with the advent of eBay and Amazon, the e-commerce became much popular
first in USA and UK. Later in mid 1990s e-commerce was introduced to India. Due
to many reasons like limited availability of internet, weak online payment and
lack of awareness in the customers the e-commerce advent was very slow in
India. But in mid of 2000, there was a rapid change in the Indian e-commerce
industry where they offered online services like travelling, shopping online,
online payments. Thus, many Indian companies offered online services to the
customers due to rapid growth of e-commerce industry in the country.4

DIFFERENCES
BETWEEN E-BUSINESS AND E-COMMERCE

Though the words e-business and
e-commerce are used interchangeably, there are not one and the same. They
differ in some respects which are discussed now. E-commerce is a narrower
discipline and hence it is a subset of e-business. When we go by the
definition, e-commerce is trading of goods and services over internet. Whereas,
e-business is running the business with the help of internet. E-commerce is
limited only to monetary and commercial transactions, but e-business carries on
business transactions which are not just limited to monetary transactions. An
e-commerce requires only a website to represent the business, whereas an
e-business requires not only website but also Customer Relationship Management
(CRP), Enterprise Resource Planning (ERP) etc. for running the business over
the internet. The approach of e-commerce is extroverted and covers customers,
suppliers, distributors, etc. but the approach of e-business is ambiverted that
covers both internal and external processes. In e-commerce only internet is
used as a medium to connect with the rest of the world, whereas in e-business
internet, intranet and extranet, all these are used as a medium for connecting
with the parties.5

FEATURES
OF E-BUSINESS AND E-COMMERCE

 

ADVANTAGES
AND DIS-ADVANTAGES OF E-COMMERCE

ADVANTAGES

Ø 
One
of the most important advantage of e-commerce is that it has a lower
operational or start-up cost. Since, for a physical store the retailer has to
pay thousands as rent for the stores, in addition to that it will have
inventory cost, sales equipment etc. Whereas, e-commerce stores need to pay
only $3192 a year. Thus, business expenses in e-commerce are really low.

Ø 
The
other advantage being the online stores are available 24/7 and thus open for
business at any time of the day. Customers can shop at any time without any
cost for transport.

Ø 
The
procedure of buying and selling is easy as well as fast.

Ø 
A
small brand can sell its products to the customers worldwide.

Ø 
The
store will have unlimited reach to the customers since there are no theoretical
geographic limitations.

Ø 
There
is no need to setup any physical stores in any part of the country to reach
wide range of customers because the online store is accessible to wide range of
customers not only in the country but also worldwide.

Ø 
Customers
can choose to buy a wide variety of products at any time leisurely, at any
place, without any costs, thus saving time of the customers.

Ø 
You
can personalize the online shopping experience. You can target a customer who
has already visited the store by attracting them by displaying an ad on the
product upon which they are interested.

Ø 
Hiring
the employees for the e-commerce stores is quite affordable.

Ø 
In
a physical store the amount of information that you can show is very limited.
But in e-commerce you can add as much information as you may think fit for that
purpose.

DISADVANTAGES

Ø 
The
quality of the product on an e-commerce store is not guaranteed. The product
may or may not be a good one.

Ø 
There
is a lack of personal touch in e-commerce, thus it may or may not become a
business disadvantage.

Ø 
Though
online shopping can be done at any time, at any place but some of the gods can
never be purchased online. For example, the perishable products like milk,
vegetables, or a product of some odd size.

Ø 
The
other disadvantage is that, in a purchase from an e-commerce store, you have to
wait for several days to use the product, even if there is a fastest shipping
option you have to wait for some hours. Whereas, when you go to the physical
store you can buy and use it at the same time.

Ø 
In
most of the cases customers are habituated to test the products, like to trial
the garments or wear a shoe and see whether it is fit for you or not and in
case of any clothes to touch and feel what material is it made of etc. But
these things are not possible in e-commerce.

TYPES
OF E-COMMERCE

The process of e-commerce is carried out
in five levels and the primary and the main aspect of e-commerce is a merchant
selling products or service to the customers. While e-business deals with many
kinds of business concern, starting from retail site of the consumer, it also
includes auction.

The five categories of e-commerce are as
follows:

1.     
Business
to business (B2B)

2.     
Business
to consumers (B2C)

3.     
Consumers
to consumers (C2C)

4.     
Business
to employees (B2E) and

5.     
Consumer
to business (C2B)

BUSINESS
TO BUSINESS (B2B)

E-commerce is not always between
business and customers, this business model tries to define that seller and
buyer are two different bodies. It consists of largest form of e-commerce and
involves a smart business. In this type of business transaction, the
interaction is between businesses or companies. A wholesaler selling product to
the retailer is B2B business model. A company may place an order for supplies
with any other business directly over the internet.  It involves widening the circle of suppliers
and plays a crucial role in any online business.6

BUSINESS
TO CONSUMERS (B2C)

In this type of business transaction,
the interaction is between a consumer and the business which involves selling
of goods and services to consumers online. It is an indirect trade between the
company and the consumers. Anybody can purchase the goods directly from the
seller’s website at any time as the online stores provide goods and services 24
hours a day, seven days a week and 365 days a year. The companies know the
customers preference and buying trends as there is two way accessibility of the
internet. This are used by the companies to set up marketing strategies and
offer the customers what product they want and when they want. This type of
e-commerce is most popular where the individuals i.e. the consumers are involved
in B2C e-commerce.

EXAMPLES:
Amazon, Flipkart,
Snapdeal, Jabong etc.

CONSUMER
TO CONSUMER (C2C)

In this type of business transaction the
interaction is between consumer to consumer. This is where consumers sell their
goods, either used or new ones, in auction sites like e-Buy Bid or Buy.com. The
traditional old auction houses cyber version is this form of e-commerce. If anyone
wants to sell anything, all they have to do is take a picture of the product
and post it on the site, mentioning product details and the price and wait till
any customer buys it.7

EXAMPLES:
OLX, Buy.com etc.

CONSUMER
TO BUSINESS (C2B)

It is a business transaction where a
consumer posts his project with a preferred price on the website. Within hours,
the requirements of the consumer are studied by the companies and they bid on the
project. The consumer also reviews the bids by the companies and selects one of
them that would complete the project.8

EXAMPLE:

Price line.com. This site allows the future
airline travellers or tourists who are need of hotel reservations etc. to visit
its websites and post their desired price for the travel between two cities. If
any of the airlines are willing to issue a ticket upon the said price, the
consumer can travel to his place of destination at his terms.

BUSINESS
TO EMPLOYEES (B2E)

In this type of e-commerce, the major
focus of the business is the employee but not consumer. It includes everything
that businesses do so as to attract and retain the well-qualified members of
the business. They are providing benefits, opportunities, bonuses, education,
flexible hours and employee empowerment strategies.9

PROFILE
OF JABONG.COM

Jabong.com has really paved a way for Indian
fashion and lifestyle e-commerce portal and was co-founded by Praveen Sinha,
Lakshmi Potluri, Arun Chandra Mohan and Manu Jain in the year 2012,
headquartered in Gurgaon. Recently, in July, 2016 Jabong was acquired by
Flipkart through its unit Myntra for about $70 million. It is a company that
aims to provide good quality and branded products. It sells apparel, footwear,
fashion accessories, beauty products, fragrances, home accessories and other
fashion and lifestyle products that caters to the fashion needs of men, women,
and kids. They try hard to achieve the highest level of “Customer
Satisfaction”. The website highly experienced the buying team and the art
customer care centre provides the customer with broader selection of products,
superior buying experience, and on-time delivery of products and quick
resolution of any concerns. It has over 1000 products and over 90,000 products.
The major customers fall between the age group of 20-35 years.10

MISSION

Our Customer’s favourite lifestyle
fashion destination and way to shop that compels them to come back for more.

 

BUSINESS
MODEL OF JABONG

The e-commerce type of Jabong.com is B2C
e-commerce. It is because the business sells the goods and services to the
consumer online. The interaction is between the business and the consumer.

The website follows inventory model and
a managed marketplace model. In the outright or bought out business model,
products are availed from various brands and these are stored in the warehouse of
Jabong. Whereas in the marketplace model, it doesn’t keep any inventory with it
but takes care of service and returns for the consumers. There is another model
called the sell or return model in which the supplier ships or transfers goods
to jabong and it will pay for them. Only after the payment, these goods can be
used by the company or even sold by them. If any of the goods are not sold,
those are returned back to the supplier of those goods.11

1 Business.
BusinessDictionary.com. Retrieved January 05, 2018, from BusinessDictionary.com
website:http://www.businessdictionary.com/definition/business.html

2 Mohammad
Ehtasham Akhtar. (n.d.). Seminar Report on
e-Business. https://www.scribd.com/doc/55598711/Introduction-to-e-Business-Project-Report.

3 E-commerce.
Techtarget.com. Retrieved January 21, 2018, from Techtarget.com website:
http://searchcio.techtarget.com/definition/e-commerce

4 Shikha Agarwal. (n.d.). The Comparative Analysis of Women’s Apparel (Western Wear
Brands) In Jabong and Myntra. http://portfolio.pearlacademy.com/assets/site/images/student/project_Jabong.PDF

5 Surbhi S. (Aug 27,
2015). Difference Between e-commerce and
e-business. https://keydifferences.com/difference-between-e-commerce-and-e-business.html

6Dr.Anil Khurana. (n.d.). Introduction To E-Commerce. https://www.scribd.com/document/311686426/Introduction-to-E-Commerce

 

7 Dr.Anil Khurana. (n.d.). Introduction
To E-Commerce. https://www.scribd.com/document/311686426/Introduction-to-E-Commerce

8 Mohammad Ehtasham Akhtar. (n.d.). Seminar Report on e-Business. https://www.scribd.com/doc/55598711/Introduction-to-e-Business-Project-Report. 

9 B2E (Business2Employee). Techtarget.com. Retrieved January
21, 2018, from Techtarget.com website: http://searchcio.techtarget.com/definition/B2E

10 Jabong.com. (n.d.). Retrieved from https://www.jabong.com/about/

11
Shikha Agarwal. (n.d.). The Comparative Analysis of Women’s
Apparel (Western Wear Brands) In Jabong and Myntra. http://portfolio.pearlacademy.com/assets/site/images/student/project_Jabong.PDF

 

Post Author: admin

x

Hi!
I'm Eileen!

Would you like to get a custom essay? How about receiving a customized one?

Check it out