Introduction

Meaning of E-commerce

E-Commerce, characterized by online platforms, digit marketplaces, and seamless

transactions, has not merely become an alternative channel for shopping; it has evolved
into a global force, disrupting traditional retail paradigms, and redefining the very essence
of commerce.

E-Commerce, or electronic commerce, is the buying and selling of products and services
online. While traditional retail involves selling products in physical stores. E-Commerce
has changed the way people shop, and has a significant impact on traditional retail.

Aims and objectives

• To study positive and negative effects of e-commerce

• To study how e-commerce has shaken the traditional business in India
• To study in detail the changes witnessed by retailers and consumers with the advent
of e-commerce
• To suggest remedies to the traditional businesses for overcoming the menace of e-
commerce

How e-commerce has impact traditional retail

Reduced foot traffic

E-Commerce has led to fewer customers visiting physical stores, which has impacted
sales and profitability

Competitive disadvantage

E-Commerce businesses can scale quickly and streamline operations, which can put
traditional retailers at a competitive disadvantage

Supply chain disruption

E-Commerce has distributed traditional retail supply chains, requiring retailers to

update their operations to meet after faster delivery expectations

Environment impact

E-Commerce can increase packaging waste and transportation emissions, while

traditional retail uses more energy to operate physical locations

Limitations
Limitations of e-commerce. The biggest drawback of e-commerce is the security of
business information. It is a general fear among the clients/customers to provide personal
and financial information, even though several improvements and steps are taken up for its
security

E-Commerce can have several limitations for traditional retail, including

• Technical issues
Online shopping can be affected by technical issues like website crashes,
payment gateway errors, and slow loading times.
• Customer experience
Customers may not be able to physically examine products, which can limit
their sensory experience. They may also experience limited personal interaction and
customer services.
• Returns and refunds
Online shopping can be complicated by complicated return policies
• Legal issues
E-Commerce businesses must comply with legal and regulatory
requirements, such as data privacy, consumer protection, and tax laws.
• Trust and security
Online transactions can be subject to trust and security concerns, such as
cyber threats and data breaches.
• Customer acquisition costs
E-Commerce businesses may have higher customer acquisition costs due to
digital advertising expenses.
• Brand loyalty
It can be difficult to establish brand loyalty without a physical presence.
• Delayed product delivery
There may be potential for delayed product delivery or shipping issues.
• Customer feedback
It can be challenging to manage and respond to customer feedback.
• Expectations for instant service
Customers may expect instant service, which can difficult to meet.

Statement of problems
E-Commerce has distributed traditional retail models, creating new challenges for
retailers. These challenges include increased competition, changing consumer
expectations, and the need to adapt business models

Challenges

Competition

E-Commerce has increased competition and price transparency, forcing retailers to

reasses their pricing strategies

Consumer expectations

Online shopping has increased customer expectations for convenience, accessibility, and
personalized services

Business models

Traditional retailers need to adapt their business models to incorporate e-commerce and
create a seamless omnichannel experience

Solutions

Invest in online presence

Retailers can invest in their online presence to compete in the new retail landscape

Leverage physical stores

Retailers can leverage their physical to create unique in-store experience

Use data analytics

Retailers can use data analytics to create personalized Marketing strategies

Partner with e-commerce platforms

Retailers can partner with e-commerce platforms to create a seamless omnichannel

experience

Objectives

E-Commerce can help traditional retailers improve their customer experience, reduce
overhead, and increase their global reach.

1. Customer experience
• Personalized recommendations
 Use technology to provide customers with personalized product
recommendations
• Chatbots
Use chatbots to provide exceptional customer service
2. Low overhead
• Reduced infrastructure
Reduce infrastructure and staffing needs to save on costs
• Efficient inventory management
Use digital systems to manage inventory efficienctly
3. Global marketing reach
• Reach customers worldwide
Use the internet to reach customers across the world
• Better branding opportunities
E-Commerce businesses can have a global presence, even in countries
where they don’t have a physical stores

Other objectives of e-commerce incluse:

• Revenue and growth

• Improved margins
• Data and analytics
• Niche markets
• 24/7 availability
• Price flexibility
• Direct customer relationships
• Rapid testing and scaling
• Adapting to demand
• Lower barrier to entry

Scope

E-Commerce has expanded the scope of traditional retail by providing new ways to sell
products and services, and by increasing the reach of retailers

Benefits of e-commerce for traditional retail

• Increased reach
E-Commerce allows retailers to sell to customers anywhere in the world
• Lower costs
 E-Commerce can reduce infrastructure costs, such as rent, utilities, and
salaries
• Convenience
E-Commerce allows customers to shop from home, while travelling, or
whenever they want
• Home delivery
E-Commerce has made home delivery a common feature for many retail
brands
• Omnichannel selling
E-Commerce allows retailers to offer products and services across multiple
channels, including brick-and-motar stores and online platforms

Factors that impact e-commerce adoption

• Management qualities
• Organizational attributes
• Data systems expertise
• Organization structure

Challenges for e-commerce

Cybersecurity

E-Commerce businesses need to prioritize cybersecurity and employ effective safeguards

Legal and ethnical issues

E-Commerce businesses need to be aware of legal and ethical issues, such as copyright
laws, privacy, and the legality of electronic contracts

Needs

E-Commerce can impact traditional retail in several ways, including:

Omnichannel retailing

Integrating physical and online stores to create a consistent shopping experience for
customers

Customer retention

Retaining customers can be easier with e-commerce than with traditional retail

Faster business Operations

Digital marketplaces can be faster than physical marketplaces, which are often limited by
traditional processes

Increased search engine visibility

E-Commerce benefits from search engine traffic, while traditional retail relies on branding
and word-of-mouth

More openness to automation and technology

Technological innovations can streamline the shopping process and make it more secure
and engaging

Access to a wider market

E-Commerce can help companies, especially small, local businesses, reach a wider
market

Explanation

E-Commerce has changed consumer behavior by making it easier and more convenient to
shop. Customers can browse a wide range of products from the comfort of their homes,
and they can compare prices and evaluate options. This has made it difficult for traditional
brick-and-mortar stores to compete.

Impact of e-commerce on traditional retails

E-commerce has had a significant impact on traditional retail, leading to a decline in foot
traffic and sales. Traditional retailers have had to adapt to these changes by investing in
online stores and omnichannel strategies

• Convenience: E-commerce offers convenience and accessibility, allowing

customers to shop from anywhere, at any time
• Price comparison: E-commerce allows customers to easily compare prices and
products, leading to increased competition
• Choice: E-commerce offers a wider range of products and affordable prices

Recommendation & Remedies

The traditional business entrepreneurs can adopt following remedies to compete

with e-commerce companies and sustain for longer period in the market

• Bulk purchase
• Improvement in services
• Long term relationship with consumers
• Excessive use of social media