E-Commerce Unit 1

Unit I: Introduction to E-commerce: Meaning and concept; Electronic commerce versus traditional commerce; Media
convergence and e- business; Channels of e-commerce; Business applications of e- commerce; Need for e-commerce.

E-Commerce

E-commerce (electronic commerce) is the activity of electronically buying or selling products on online services or over
the Internet. E-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.

E-commerce businesses may also employ some or all of the following:

 Online shopping for retail sales direct to consumers via web sites and mobile apps, conversational
commerce via live chat, chatbots, and voice assistants.

 Providing or participating in online marketplaces, which process third-party business-to-consumer (B2C)

or consumer-to-consumer (C2C) sales;

 Business-to-business (B2B) buying and selling.

 Gathering and using demographic data through web contacts and social media.

 B2B electronic data interchange.

 Marketing to prospective and established customers by e-mail or fax (for example, with newsletters).

 Engaging in pretail for launching new products and services.

 Online financial exchanges for currency exchanges or trading purposes.

Advantages of e-commerce

 The benefits of e-commerce include its availability, accessibility, speed of access, selection of goods and services
and international reach.

 Around-the-clock availability. Aside from outages and scheduled maintenance, e-commerce sites are
available 24/7, enabling visitors to browse and shop at any time. Brick-and-mortar businesses tend to open for a
fixed number of hours and even close entirely on certain days.

 Speed of access. While shoppers in a physical store can be slowed by crowds, e-commerce sites run quickly,
depending on compute and bandwidth considerations of both the consumer device and the e-commerce site.
Product, shopping cart and checkout pages load in a few seconds or less. A typical e-commerce transaction
requires a few clicks and takes less than five minutes.

 Wide selection. Amazon's first slogan was "Earth's Biggest Bookstore." It could make this claim because it was an
e-commerce site and not a physical store that had to stock each book on its shelves. E-commerce enables brands
to make an array of products available, which are then shipped from a warehouse or various warehouses after a
purchase is made. Customers are likely to have more success finding what they want.
  Easy accessibility. Customers shopping in a physical store might have difficulty locating a particular product.
Website visitors can browse product category pages in real time and use the site's search feature to find the
product quickly.

 International reach. Brick-and-mortar businesses sell to customers who physically visit their stores. With e-
commerce, businesses can sell to anyone who can access the web. E-commerce has the potential to extend a
business's customer base.

 Lower cost. Pure play e-commerce businesses avoid the costs of running physical stores, such as rent, inventory
and cashiers. They might incur shipping and warehouse costs, however.

 Personalization and product recommendations. E-commerce sites can track a visitor's browsing, search and
purchase histories. They can use this data to present personalized product recommendations and obtain insights
about target markets. Examples of how such insights are used include the sections of Amazon product pages
labeled "Frequently bought together" and "Customers who viewed this item also viewed."

Disadvantages of e-commerce

 Limited customer service. If customers have a question or issue in a physical store, they talk to a clerk, cashier or
store manager for help. In an e-commerce store, customer service can be limited. The site might only provide
support during certain hours and its online service options might be difficult to navigate or not able to answer
specific questions.

 Limited product experience. Viewing images on a webpage can provide a good sense of a product, but it's
different from experiencing the product directly, such as playing a guitar, assessing the picture quality of a
television or trying on a shirt or dress. E-commerce consumers can end up buying products that differ from their
expectations and have to be returned. In some cases, the customer must pay to ship a returned item back to the
retailer. Augmented reality is expected to improve customers' ability to examine and test e-commerce products.

 Wait time. In a store, customers pay for a product and go home with it. With e-commerce, customers must wait
for the product to be shipped to them. Although shipping windows are decreasing as next-day and even same-
day delivery becomes common, it's not instantaneous.

 Security. Skilled hackers can create authentic-looking websites that claim to sell well-known products. Instead,
the site sends customers fake or imitation versions of those products -- or simply steals credit card information.
Legitimate e-commerce sites also carry risk, especially when customers store their credit card information with
the retailer to make future purchases easier. If the retailer's site is hacked, threat actors may steal that credit
card information. A data breach can damage a retailer's reputation.

7 types of eCommerce

The eCommerce market consists of various models, each with unique features to meet businesses' specific needs. Before
diving into the world of eCommerce business, consider and understand these models:

1. Business-to-consumer (B2C)

2. Business-to-business (B2B)

3. Business-to-government (B2G)

4. Consumer-to-consumer (C2C)
 5. Consumer-to-business (C2B)

6. Consumer-to-government (C2G)

7. Business-to-business-to-consumer (B2B2C)

01. Business-to-consumer (B2C)

Most common types of eCommerce used today, business-to-consumer (B2C) businesses focus on selling goods and
services directly to the end consumer. These businesses invest in creating a seamless user experience, offering
personalized recommendations and providing easy checkout options. They often use digital marketing strategies like
social media advertising and email marketing to drive traffic to their eCommerce website. Popular types of eCommerce
within this include dropshipping, print on demand and ghost commerce. B2C examples: Amazon, Meta & Netflix etc

Advantages of B2C eCommerce

The following are some of the top advantages of B2C eCommerce:

1. The inflexibility of the catalog

The direct “link” characteristic has the remarkable capacity to display a huge range of content material facts and visually
attractive factors, which might already be gifted on the websites owned by our numerous consumers. With this
revolutionary function, there’s surely no want that allows you to implore or rely on the services of any marketing
consultancy organisation. The direct “hyperlink” empowers you to take control of your personal online presence and
effortlessly showcase your website’s current content material and visible assets to your target market, ensuring
maximum visibility and effect.

2. Shrinks Competition Gap

One advantage we’ve got is the affordability of our marketing and advertising, which permits us to go head-to-head with
mounted organisations about offering, within your means, first-rate merchandise that might be easily handy to clients.
This price-effectiveness in selling our objects opens up possibilities for us to efficaciously take care of well-known
manufacturers and meet the demands of our target market in terms of price, exceptional quality, and comfort.

3. Unlimited Market Place

By providing a platform in which customers can easily browse and store merchandise at any time, online shops have
opened up a sizable and untapped marketplace. As a result, those shops now do not require the offerings of an
advertising and marketing consulting company, as they’ve efficiently created a self-maintaining environment for clients
to make purchases at their own comfort.

4. 24-Hour Store with a Shorter Sale Cycle

It is unnecessary to send prolonged emails that include a surplus of statistics or make an immoderate number of
cellphone calls that can be considered redundant.

5. Lower Cost of Business

The B2C (business-to-client) version has extensively reduced the charges associated with various elements of
accomplishing business. These consist of the charges related to staffing, such as income prices, recruitment costs, and
training charges. In addition, the implementation of B2C has introduced a lower price range within the allocation of price
ranges towards making purchases, whether or not it’s for stock or supplies wished for every day operations.
The need for mailing confirmations has also faded because the method can now be automated and done electronically,
saving on postage fees and the need for a bodily garage of statistics. Moreover, the reliance on cellphone conversations
has been eased, thanks to the availability of online verbal exchange channels and powerful messaging systems.

6. Eliminating Third Party Clients

In order to maximise performance and keep control over our business operations, we keep the freedom to without delay
sell our services or products to clients, bypassing the need for any intermediaries or middlemen in the transaction
method.

7. Business Administration Made Simpler

Compared to the conventional methods of business administration, it has become simpler to record store inventories,
shipments, logs, and all other business operations.

Disadvantages of B2C eCommerce

The following are some of the top disadvantages of B2C eCommerce:

1. Lack of Catalogue Flexibility

However, it’s crucial to rearrange the catalogue after adding new data and merchandise, respectively.

2. Infrastructure

Even though it has a large patron reach and is ready to overcome cultural obstacles by means of addressing everyone at
the same time, it is crucial to know that reality still stays unchanged and unalterable, regardless of these elements.

Despite its widespread reach and ability to connect with people from numerous cultures, it’s vital to take into account
that the fact continues to exist as is, without any effect or modification from such factors.

3. Competition

Since there are thousands of online stores and services, the rivalry is indeed fierce and could jeopardize our company’s
consumer base. Some online stores have been able to keep a sizable portion of the market, allowing them an
opportunity to endure over time.

4. Product Exposure Limits

It is important to note that e-commerce has limited the amount of product exposure available to purchasers online,
although it provides them with easy accessibility and a special degree of product customization.

5. Entering a Cut-Throat Competition

Without conducting market research and B2C campaigns, many people are influenced to launch a B2C e-commerce
business. As a result, they begin to cater to the market or special segment where numerous e-commerce companies
have already been created to serve the public.

6. Shipping Charges

Whether you promote merchandise or items in large or small quantities, it’s a plain truth that transportation fees could
be incurred. Moreover, in the modern generation of e-commerce, clients have come to assume not only top-notch
products but also free shipping as standard. Consequently, corporations have to recollect the impact of these additional
fees on their profit margins and locate innovative methods to fulfill their clients’ needs.

7. Security Concerns

The transactional data from your site can be hacked by a lot of cybercriminals. After that, they are free to use someone
else’s name to purchase anything they want.

02. Business-to-business (B2B)

While business-to-consumer models involve a transaction from a business to a private individual, business-to-business
(B2B) is the sale of goods or services from one business to another. Businesses focus on providing a streamlined ordering
process, allowing buyers to order products in bulk, manage their inventory and track orders in real-time. B2B
eCommerce platforms can offer customization features like tailored pricing for bulk orders, easy reordering options and
integration with inventory management systems.

B2B examples: Amazon, IndiaMart, Trade India.

There are three major types of B2B eCommerce categories, and each of them has its pros and cons.

 B2B2C

B2B2C, or business-to-business-to-consumer, this type of B2B eCommerce sells directly to the consumer without any
middleman. These goods are then sold to the B2B entities that sell directly to the consumer.

 Wholesale

Wholesale businesses buy goods in bulk from distributors or manufacturers to then offer them for sale to the consumer
at retail prices.

 Manufacturer

Manufacturers produce goods in large amounts that are then sold to other suppliers, wholesalers, or manufacturers.
Businesses are increasingly needing manufacturers to be able to complete online transactions with access to
personalized features like pricing, production schedules, or sizing.

Distributor

Distributors majorly take care of packaging, shipping, and marketing. These are things that usually manufacture wouldn’t
prefer doing in-house.

B2B eCommerce Business Model Advantages

Market Predictability

Compared to the other business strategies, the B2B eCommerce business model has more market stability. B2B sectors
grow gradually and can adapt to various complex market conditions. This helps to strengthen the online presence and
business opportunities and get more potential clients and resellers.

Better Sales
An improved supply chain management process along with a collaborative approach increases customer loyalty in the
B2B eCommerce business model. This, in turn, leads to improved sales. It helps businesses to showcase product
recommendations and unlock effective upselling and cross-selling opportunities.

Lower Costs

Due to an effective supply chain management process, this online business model leads to lower costs for businesses. In
most cases, the work is done through automation that eradicates the chances of errors and undue expenditure.

Data-Centric Process

One of the main advantages of the model is that it relies on effective and factual data to streamline the whole process. In
this way, errors can be avoided and proper forecasts can be made. With an integrated data-driven approach, you can
calculate detailed sales statistics.

B2B eCommerce Business Model Disadvantages

Just like the other business models, the B2B eCommerce Business model has some flaws too, which are:

Limited Market

Compared to the B2C model, this type of business has a limited market base as it deals with transactions between
businesses. This makes it a bit of a risky venture for small and medium eCommerce businesses.

Lengthy Decision

Here, the majority of the purchase decisions involve a lengthy process as there are two businesses involved. The process
may involve dependence on multiple stakeholders and decision makers.

Inverted Structure

Compared to the other models, consumers have more decision-making power than sellers in the B2B business model.
They may demand customizations, impose specifications and try to lower price rates.

03. Business-to-government (B2G)

Businesses in this eCommerce model sell products or services to government agencies. These include a wide range of
sectors like cybersecurity, waste management and urban planning. B2G platforms often have robust security features
and strict compliance standards to ensure the safety of sensitive information shared between the two parties.

B2G examples include: Companies providing construction of buildings, highways, and infrastructure. Cloud-based or on-
premises software solutions.

04. Consumer-to-consumer (C2C)

When two individuals engage in a transaction, rather than business entities, it falls under the category of consumer-to-
consumer. Online platforms can act as intermediaries, providing a secure platform for buyers and sellers to connect and
complete transactions. It also allows consumers to buy used or refurbished items at a lower price point, making it an
ideal option for budget-conscious shoppers.

C2C examples: E-Bay, OLX, Quikr.

05. Consumer-to-business (C2B)

Consumer-to-business covers services provided by individuals, for businesses. Freelancers, consultants and independent
contractors who offer their skills and services to the marketplace often use this structure. Businesses use online
platforms to post the projects they need help with, and individuals can bid on those projects, providing services at a
competitive price. C2B also includes influencer marketing, where individuals with a large following on social media can
collaborate with businesses to promote products or services.

C2B examples: Wix Marketplace, Fiverr and Upwork

06. Consumer-to-government (C2G)

Consumer-to-government eCommerce involves transactions between individuals and government agencies. Consumers
sell goods or services directly to government agencies, including providing goods or services for government contracts,
grants or other procurement opportunities. This type of eCommerce is frequently seen in the healthcare industry, where
medical equipment or services for government hospitals are purchased from individuals.

C2G examples: eHealthTech, Medical Equipment USA and Grants.gov

How the process of B2C works.

Traditionally the process of B2C follows the following steps

 Customer identifies a need and decides to purchase the said product to fulfil their requirements.
 Persons search for the goods or service.
 Selects a vendor and negotiates the price.
 The customer receives the product and service (logistics, inspection & acceptance takes place)
 The customer makes the payment either by cash or card.
 The customer eventually gets service and warranty claims.

In case of B2C, where E-Commerce is involved, the following steps are followed.

 The customer searches the product on the virtual mall (various websites and at the desired price and
specifications
 After deciding on the product, the customer either registers on the site if the customer is a new user or they will
log in if they are a registered user.
 After logging in, the customer buys the product and places the order.
 The merchant places the order and the payment is processed on the necessary gateways.
 The operations department of the seller process the order and packages the product and hands it over to
shipment and delivery partner.
 After the customer receives the product, the order is completed and after sales services are used if required.

Electronic commerce versus traditional commerce

Traditional commerce and e-commerce represent two distinct approaches to conducting business. While traditional
commerce relies on physical interactions and brick-and-mortar establishments, e-commerce harnesses the power of the
internet and digital platforms. Each model possesses its unique advantages and disadvantages.
S.No. TRADITIONAL COMMERCE E-COMMERCE

Traditional commerce refers to the commercial E-commerce refers to the commercial transactions or
transactions or exchange of information, buying or selling exchange of information, buying or selling
product/services from person to person without use of product/services electronically with the help of
01. internet. internet.

In traditional commerce it is difficult to establish and In e-commerce it is easy to establish and maintain
02. maintain standard practices. standard practices.

In e-commerce indirect interaction through seller

In traditional commerce direct interaction through seller and buyer occurs using electronic medium and
03. and buyer is present. internet.

Traditional commerce is carried out by face to face, E-commerce is carried out by internet or other
04. telephone lines or mail systems. network communication technology.

In traditional commerce processing of transaction is In e-commerce processing of transaction is

05. manual. automatic.

06. In traditional commerce delivery of goods is instant. In e-commerce delivery of goods takes time.

07. Its accessibility is for limited time in a day. Its accessibility is 24×7×365 means round the clock.

Traditional commerce is done where digital network is E-commerce is used to save valuable time and
08. not reachable. money.

Traditional commerce is a older method of business style E-commerce is a newer concept of business style
09. which comes under traditional business. which comes under e-business.

10. Its resource focuses on supply side. Its resource focuses on demand side.

In traditional commerce customers can inspect products In e-commerce customers can not inspect products
11. physically before purchase. physically before purchase.

Its business scope is worldwide as it is done through

12. Its business scope of business is a limited physical area. digital medium.

For customer support, information exchange there is no For customer support, information exchange there is
13. such uniform platform. exists uniform platform.
Traditional Commerce

Traditional commerce refers to the conventional method of conducting business where transactions take place in
physical locations such as stores, markets, or offices. It involves face-to-face interactions between buyers and sellers,
where customers can physically examine products, negotiate prices, and make purchases. Traditional commerce has
been the dominant model for centuries and encompasses a wide range of industries, including retail, hospitality, and
services.

Advantages of Traditional Commerce

1. Direct interaction with customers, fostering personalized service.

2. Tangible experience, allowing customers to see, touch, and try products.

3. Immediate satisfaction through instant product availability.

4. Local brand recognition and community engagement.

5. Trust-building through face-to-face relationships.

6. Opportunities for impulse purchases and upselling.

7. Job creation and support for local economies.

8. Secure transactions through physical payment methods.

9. Higher customer loyalty through personal connections.

10. Enhanced customer feedback and market research through direct conversations.

Disadvantages of Traditional Commerce

1. Limited operating hours, restricting convenience for customers.

2. Higher overhead costs, including rent, utilities, and employee salaries.

3. Geographical limitations, hindering market expansion and reach.

4. Higher product prices due to operational expenses.

5. Inventory management challenges, potentially leading to stockouts or overstocking.

6. Dependence on physical infrastructure and maintenance.

7. Limited scalability compared to digital business models.

8. Relatively slower transaction process and paperwork.

9. Difficulty in tracking and analyzing customer data.

10. Vulnerability to unforeseen events, such as natural disasters or economic downturns.

E-Commerce
E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. It
involves online transactions, digital marketing, and various technological tools to enable virtual commerce. E-commerce
has revolutionized the business landscape, providing opportunities for businesses of all sizes to reach a global audience
and conduct transactions electronically.

Advantages of E-Commerce

1. 24/7 availability, allowing customers to shop at their convenience.

2. Global market reach, breaking geographical barriers.

3. Lower overhead costs compared to traditional commerce.

4. Increased scalability and potential for rapid business growth.

5. Cost savings through reduced infrastructure and staffing needs.

6. Efficient inventory management through digital systems.

7. Enhanced customer targeting and personalized marketing strategies.

8. Quick and streamlined transaction process, reducing manual paperwork.

9. Data-driven decision-making through analytics and customer insights.

10. Seamless integration with various digital payment methods for secure transactions.

Disadvantages of E-Commerce

1. Lack of personal interaction and limited customer service.

2. Potential for delayed product delivery or shipping issues.

3. Higher competition due to the global marketplace.

4. Dependence on internet connectivity and potential technical issues.

5. Limited sensory experience, as customers cannot physically examine products.

6. Trust and security concerns regarding online transactions.

7. Difficulty in establishing brand loyalty without physical presence.

8. Higher customer acquisition costs due to digital advertising expenses.

9. Potential for cyber threats and data breaches.

10. Challenges in effectively managing and responding to customer feedback.

Similarities between Traditional Commerce and E-Commerce

1. Both involve the buying and selling of goods and services.

2. Both aim to generate revenue and sustain business operations.

 3. Customer satisfaction and relationship building are essential in both models.

4. Marketing and advertising play crucial roles in attracting customers.

5. Product quality and competitive pricing are important factors in both models.

6. Both require effective inventory management for efficient operations.

7. Customer feedback and market research are valuable for business growth.

8. Financial transactions are involved in both models.

9. Both models can benefit from effective branding and reputation management.

10. Legal and regulatory compliance is necessary for both models.

Media convergence and e- business

In a technological sense, media convergence is all about integration and inter-operability; the coming together of
computing networks, information and communication technologies, and digital forms of information that are inherently
adaptable, delivered via ‘intelligent’ platforms, applications and devices. The processes that facilitate media convergence
are shaped by, whilst also shaping, social practices and cultural values; the ways that we produce and consume digital
media to communicate science, politics, sport, and so on. Where once people had opportunities to collate and filter
scientific information via various ‘traditional’ communication channels, now digital technologies are also playing an
important role.
Media convergence is the process by which multiple media technologies are brought together into one computerized
device. For example, smartphones can do the jobs which newspapers, GPS's, and telephones used to accomplish
separately.

Media convergence is exemplified by the various computerized devices which people use in their daily lives.
Smartphones, tablets, and other smart devices offer a plethora of services that used to only be available through various,
unconnected technologies.

Technological convergence is the key element of media convergence. The computer technologies which have become
part of people's everyday lives are the physical site of media convergence trends. It is smartphones, computers, and
other smart technologies which give people access to a wide variety of media at all times and in almost all places.

Media Convergence simply refers to the merging of different types of mass media such as Traditional Media, Print Media,
Broadcast Media, New Media and the Internet as well as portable and highly interactive technologies through digital
media platforms. This results in the combination of 3Cs, i.e. Communication, Computing and Content as all three are
integrated through technology. The most relevant example of media convergence is a Smartphone that blends together
various media, i.e. print media (e-books, news apps), broadcast media (streaming websites, radio, music apps) as well as
new media (the internet) into a single device that performs various functions from calling and texting to photography,
videography, gaming and so much more.

Examples

The most popular examples of Media Convergence are:

 Smartphones (converging camera, music, the internet, books, and all other media together)

 Online Radio (converging radio with the Internet)

 E-books (converging paperbacks with the digital technology)

 News Websites and Apps

Advantages

Media convergence has proved to be beneficial in the digital era which is filled with content seeking our attention
continuously. Here are the most important advantages of Media Convergence:

 The instant availability of news and moment-based content is one of the top advantages of media convergence
between traditional media and new media.

 The content producers can specifically target the best audience or group they are aiming towards by publishing
customized content.

 With media convergence, the audience has also become the creator themselves. From memes to social media
posts, media convergence has truly been beneficial to integrate audience on a global level.

 Another important benefit of media convergence that it has broadened the limitations of traditional media by
blending it with new media, thus providing instant and latest content on an international level.

 With the media convergence between traditional media and new media, the cost of digital marketing has also
become economical thus making this process beneficial and affordable.
Types of Media Convergence

(Information is gotten from multiple sources, i.e. From Telephone, TV, print & digital media)

Media convergence is an umbrella term that can be defined in the context of technological, industrial, social, textual,
and political terms.

Here are some examples of media convergence in e-commerce:

Livestream shopping- Livestream shopping is a new and growing trend in e-commerce. It involves live video broadcasts
where merchants can showcase their products and interact with potential customers in real time. Livestream shopping is
a great way for merchants to build relationships with their customers and create a sense of community.

Virtual reality (VR) shopping- VR shopping allows customers to experience products in a virtual environment before
they buy them. This can be especially helpful for products that are difficult to visualize online, such as furniture or
clothing. VR shopping can also be used to create immersive shopping experiences, such as virtual tours of stores or
restaurants.

Augmented reality (AR) shopping- AR shopping allows customers to overlay digital information onto the real world. This
can be used to provide customers with additional information about products, such as reviews, pricing, or sizing. AR
shopping can also be used to create interactive shopping experiences, such as virtual fitting rooms or product
demonstrations.

Media convergence in e-commerce is still in its early stages of development, but it has the potential to revolutionize the
way we shop online. By combining different media technologies, e-commerce businesses can create more engaging,
informative, and interactive shopping experiences for their customers.

The three main types of Media Convergence are:

 Technological Convergence

 Economic Convergence

 Cultural Convergence

Technological convergence
Technological convergence is a term that describes the layers of abstraction which enables different technologies to
interoperate efficiently as a convergent system. It is when new technologies are created and take over from past
technologies and perform the same task in a more efficient manner. Technological convergence is the combination of
computing, communication, and content around networked digital media platforms. It further aims to convert existing
media into a digital form of technology, for example, viewing a book online (E-books, Kindle). We have compiled some of
the basic fundamentals of Technological convergence below:

 Technologies convergence is when new technologies are created that mostly take over or get upgraded from past
technologies and perform the same task but in a more advance manner, for example, people used to listen to
music using the radio but now technological convergence but now the convergence has evolved majority use
smartphones.

 Technological convergence is the tendency that as technology sometimes evolves towards performing a similar
task.

Ex- New media platforms have been created, news is available from Inshorts or Youtube channels etc. This has led to new
career and employment opportunities which didn’t exist before.

Economic Convergence

Just like the general definition of Economic convergence which suggests that countries with lower GDPs are going to
grow faster than countries with higher GDP, the Economic media convergence allows a single company to target larger
interest groups through various kinds of media. Some of its key features are:

 In Economic convergence large companies use old and new media to their advantage by selling merchandise or
the rights of the product.

 It is the horizontal integration of the entertainment industry companies such as Sony, AOL, Time Warner now has
an interest in film, TV books, games, and the internet, music real estate, etc.

Cultural Convergence

This concept of media convergence occurs when two or more cultures adopt each other’s traits and become more alike.
Those increasing similarities between cultures are not limited to beliefs of consumer brands and media. Some of the
major forms of cultural media convergence are:

 Acculturation: When weaker among two cultures adopt traits from more dominant culture e.g Indians mostly
speaking the English language.

 Assimilation: When original traits of weaker culture are completely erased and replaced by traces of more
dominant culture e.g war immigrants no longer speak the native language.

Importance of Media Convergence

It is important because it blends together content, communication technologies and computer networks thus leading to
the immediate transformation of many established industries, services as well as work practices and through all this, new
forms of content are born.

 It transforms the modes of communication, news reporting, and journalism. For example, Media journalism.

 It led to cross-media since a huge amount of content is now being accessed through portable devices. For
instance, news organizations no longer simply rely on print or AV transmission.
  Many new media forms are born like news portals, podcasts, news feeds, blogging, websites and mobile
applications.

 The newly converged media platforms provide online access to the archives, and endless opportunities for users
to comment on the story or provide links to relevant material.

3Cs of Media Convergence

The 3Cs of Media Convergence are Computing, Communications, and Content. Media Convergence unites these 3Cs of
Computing, Communications and Content and is an immediate result of digitization and promotion of the Internet. To
put it even more simply, the convergence of Content with Communication technologies and Computer Networks is what
leads to Media Convergence.

Disadvantages of Media Convergence

While the advantages of this form of convergence focus on content integration, faster access and international reach,
disadvantages highlight the impact of convergence on consumers as well as technology. Here are the major
disadvantages of media convergence:

 Difficulty in assessing consumer responses and reactions scattered across diverse converged platforms.

 More competition for consumer’s time and attention with various media platforms in one device.

 Audiences often feel overwhelmed with massive amounts of information overload.

 The older generation and the disabled sections of the community find it hard to learn the digital skills to use
different types of media

 Highly relied on technology and the internet thus the areas deprived of these two aspects can face issues with
using online information.

 Prone to cyber-attacks and malfunctioning.

Universalization

Universalization is another lesser-known aspect of mass media that has been highlighted with convergence. Media
convergence has led to the promotion of diversity and inclusion in our world as we get to know about various cultures,
their traditions and values and further learn to imbibe a respect for every culture. Globalisation has played a central role
in universalization of cultures through media as the world is striving to become more inclusive of everyone, irrespective
of their culture, religion, gender, etc. Here’s how media convergence has led to universalization of popular culture:

 By providing open access to cultures around the world

 Increased cross-cultural consumption through digital media

 Promotion of pop culture on the Internet

 Diversity and inclusion in media (be it through the content we consume or content creators)

 The internet is an hybridization of cultures and identities as we consume content from around the world and
learn about diverse cultures.

Channels of e-commerce

ECommerce channels refer to the various online platforms through which retailers can sell their products and services.
These channels provide a digital storefront for businesses, allowing them to reach a wider audience and sell their
products online.

E-Commerce channels can include:

 online store’s website

 social media platforms
 online marketplaces
 search engines
 comparison search engines
 affiliate networks
 mobile apps

An "ecommerce channel" is a route through which an ecommerce business sells or promotes its goods and services to its
customers. Sales channels are those in which a customer may select and pay for goods and services. The ecommerce
website is an ecommerce sales channel, as is the mobile App. Marketing channels are used for promotion of a business,
for example pay-per-click advertising (paying to have your website featured in a search engine's search results) is an
example of an ecommerce marketing channel.
Retail makes use of many sales and marketing channels beyond ecommerce. A physical retail store is a sales channel, as
is a contact center where orders are placed over the phone with a sales agent, whereas outdoor media (such as
billboards) is an example of a marketing channel.

E-Commerce Sales Channels

There are several ecommerce sales channels. For most businesses, the primary ecommerce sales channel is the website,
the other channels being a mobile App, ecommerce marketplaces, EDI and white label websites. Social shopping,
including live stream shopping, is an emerging and growing area of interest.
1. eCommerce website
The most common form of ecommerce sales channel is the ecommerce website, very familiar to everyone as a website
on which a customer can view product information and place an order. This includes both B2C and B2B
ecommerce websites.
2. Mobile App
A mobile App is another common ecommerce sales channel, which has a similar function to the website, but is installed
and then accessed as an App on a customer's mobile device (smartphone or tablet). Many businesses' Apps appear and
operate in a very similar way to their ecommerce website.
3. Marketplace
When a business sells individual products to customers through a third party website this is called marketplace sales. For
example, Amazon operates as a marketplace, allowing retailers to sell individual products on their website either
handling the fulfillment of the orders or passing them back to the retailer for fulfillment. This channel is different to the
concept of wholesale, where a brand sells a bulk quantity of a product to a retailer that the retailer can then sell in
individual units to a consumer. Amazon is also a retailer and therefore buys product wholesale in this way, but
its marketplace business is a larger than its retail business.
4. EDI
Electronic data interchange (EDI) is a method through which two businesses agree to pass information between them in
order to transact orders between systems they each control. By placing orders electronically, the human effort involved
in creating an ecommerce order is removed. For example a manufacturer's system might use EDI to transmit
automatically a re-order request for a raw material when inventory becomes low at one of its plants.
5. White label website
A "white label" website is one that is constructed and operated by a business on behalf of a corporate customer and
designed to match the customer's brand, not its own. For example a cellphone distributor can offer to set up and run a
website for a retailer who wants to offer cellphones to its customers without the operational complexity inherent in
doing so. The distributor charges a commission to the retailer for running the website and the retailer provides the
service to its customers, branded as if it were being operated by that retailer. By creating largely cookie cutter websites
for each retailer, the distributor in this example is able to gain economies of scale and the additional business generated
by these new customers. The white label website is an example of B2B2C commerce.
6. Social and Live Stream Shopping
Many retailers are experimenting with selling products directly from social networking sites and Apps, including
Facebook, Instagram and TikTok. Many ecommerce platforms (BigCommerce and Shopify as examples) include
integrations to these social networking Apps to enable this.
Live stream shopping is an ecommerce channel where influencers with a strong social media following perform live
shows to their audiences to promote products that viewers can buy from within the live stream App.

eCommerce Marketing Channels

Another term often used in ecommerce is "marketing channel" or "digital marketing channel". A marketing channel is a
route through which a business drives demand for its products and services by communicating with customers and
prospective customers. Traditional examples include TV, radio, print media (e.g. newspaper advertising) and direct mail.
eCommerce (or digital) marketing channels are channels that are online or electronic in nature and therefore lend
themselves well to promoting ecommerce sales.

1. Email Marketing
The most common ecommerce marketing channel is email marketing, as it is simple and very low cost.

2. Pay Per Click Marketing

Pay Per Click (PPC) is a marketing channel in which a business places concise advertisements in high traffic web
properties and payment is due to that website owner each time a visitor both sees and clicks on that advertisement.
Google and other search engines provide opportunities for businesses to "bid" for keywords and promote their content
and products within the search results. In the example below, the red box highlights PPC adverts, the green box the
organic results.
3. Banner Advertising
The banner advertising marketing channel involves a business paying to place a marketing image on a website that
receives traffic from the types of people it wishes to attract as customers. For example a cosmetics company may pay to
show a marketing image on a popular website that describes makeup tips and techniques. When a visitor clicks on the
banner, they are redirected to a so-called "landing page" on the website of the company that is advertising.

Banner advertising is a relatively simple method of promoting a business, albeit one where it is easy to spend money
without making a clear return. A business must track conversion rates of traffic from each website and from each banner
in order to refine where, when and what it shows. Another issue with banner advertising is widespread use of ad
blocking software and browser plug-ins which prevent banners being shown. While the number of people using ad
blocking software is unknowable, it is clearly a significant percentage of all Internet users.

4. Content Marketing

Producing high quality, informative or entertaining content as a means to promote a business is called content
marketing. Content is useful for encouraging website visitors to buy, i.e. improving conversion rate, as well as to spend
more time on the website and return more frequently. Good content encourages people to view a company as more
trustworthy and more authoritative in a field and are therefore more likely to accept their recommendations and to buy
from them. Content marketing is not the same as simply writing about a product. Content marketing focuses on
positioning the business as an expert in their sector, for example by producing informative how-to guides, care
instructions, expert reviews of products, or lifestyle information that relates to situations in which the products they sell
are useful.

5. Search Engine Optimization (SEO) Marketing

Publishing content on a business's website can help with improving its visibility in search engine results, in particular in
the billions of searches (Source: Google Blog, Oct 2019) conducted on Google every day, of which 15% have never been
searched for before. However, improving the ranking of that content on Google and other search engines is an art and
science in its own right, one that is called search engine optimization. Google takes into account a vast array of data in its
algorithms used to present search results for any given query. Ranking as high as possible in those results for the search
terms that your prospective customers will be searching is the ultimate goal of SEO.

6. Social Marketing

Social marketing refers to unpaid marketing activities a business conducts on social media networks such as Facebook,
Twitter, YouTube, Instagram, Pinterest, Snapchat, TikTok or LinkedIn. Social networks are chosen that work most
effectively for a business's product and its customers. Social media usage outside the US varies tremendously and
reaching international audiences demands additional care.

7. Influencer Marketing

Whereas social marketing relies on the word-of-mouth of ordinary customers, influencer marketing seeks to promote a
business through people with an established fan base and widespread appeal. An influencer can be a major celebrity
(e.g. a TV personality, sports star or well-known musician), or people whose social media activities are known to a
smaller but no less passionate audience in a specific niche, for example owners of YouTube channels, Instagram
accounts, TikTok creators and so on. Influencers are paid (or provided with free products) in return for talking about
those products on their social channels, thereby promoting them to their followers.
Influencers are sometimes also used as "the talent" in live stream shopping, which can be considered both a marketing
channel (building awareness of the brand and its products) and a sales channel (actually selling product during the live
stream).

8. Re-targeting Marketing

Re-targeting is a marketing channel that attempts to re-engage with a prospective customer that has been to a website
and shown interest in a product but has since left the site. It is distinct from banner advertising in that to be shown re-
targeting ads, the visitor must have already been to the site of the business that is paying to show this marketing,
whereas in banner advertising any visitor to the website can be shown the content.

If a known customer has placed an item in the ecommerce cart without buying it, a so-called "abandoned cart email" is a
simple form of re-targeting. By emailing the customer a few hours to a few days later, the customer is encouraged to re-
visit the site and complete their purchase, potentially with the addition of an incentive such as a discount coupon or
code.

For other customers who have looked at products on an ecommerce site, they can be shown display advertisements for
those same products when they later visit an unrelated website. This is enabled by dynamic re-targeting
technology operated by companies such as Adroll and Criteo. These re-targeting companies contract with large numbers
of ecommerce businesses as well as businesses looking to sell advertising space on their websites. By tracking visitors
across these two types of website, advertisements can be shown on websites that are otherwise unrelated.

Types of E-commerce Distribution Channels

There are three main ecommerce distribution channels: direct, indirect and hybrid.

 Direct Distribution Channel

Direct distribution channels involve selling products directly to consumers through brick-and-mortar stores or online via
a website designed by a professional web design company.

 Indirect Distribution Channel

Indirect distribution channels involve selling products to intermediaries, such as wholesalers or retailers, who then sell
the products to consumers.

 Hybrid Distribution Channel

Hybrid distribution channels combine both direct and indirect channels. Companies sell their products directly to
consumers while also partnering with selected authorized distributors to reach a broader market.

This allows businesses to maintain control over their brand while leveraging trusted intermediaries’ reach and resources.

These three ecommerce distribution channels have advantages and disadvantages, and companies must choose the best
channel for their products.

Advantages Of Direct Ecommerce Distribution Channels

These advantages highlight why some businesses choose direct distribution channels to maximize control and profits
while building strong customer relationships.

1. Avoid Sharing Profits

One of the biggest perks of direct channels is that one doesn’t have to share the hard-earned profits with anyone. This is
why many companies push customers to buy directly from them instead of going through middlemen.

2. Total Control Over Your Products

One gets to decide who buys your products and from where because you’re managing the entire sales process from start
to finish. Take Rolex, for instance. They never sell through third parties and always choose locations that align with their
luxurious brand image.

3. Build Stronger Customer Relationships

When you sell directly to your customers, you’re not just making a sale but building a relationship. Customers get to
know you and your brand, which can lead to increased loyalty. They’re more likely to stick with you because they feel
directly connected to your business.

4. Flexibility in Pricing and Promotions

With direct distribution, you can experiment with prices and run promotions whenever you see fit. You don’t have to
negotiate with intermediaries or worry about them setting prices that might not align with your strategy. This freedom
makes you more responsive to market changes and customer preferences.

5. Faster Feedback Loops

Selling directly to your customers allows you to hear from them right away. Whether it’s positive feedback or areas for
improvement, you get immediate insights that you can use to refine your products and services. This quick feedback loop
helps you stay agile and better meet customer needs.

6. Enhanced Customer Experience

When you’re in control of the entire customer journey—from browsing your website to receiving their order—you can
create a seamless and consistent experience. You can ensure that every touchpoint reflects your brand’s values, which
can help differentiate you from competitors and increase customer satisfaction.

Disadvantages Of Direct Ecommerce Distribution Channels

1. It Costs More to Sell Your Products

Selling directly to your customers can be pricey. You’ll need to invest in building up your sales and marketing teams to
reach your audience. Without a partner to handle sales and marketing, this can be tough and sometimes not financially
feasible, especially for smaller businesses.

2. Limited Reach

When you cut out the middlemen, your products might not reach as wide an audience. Intermediaries like wholesalers
or retailers have established networks that can give you access to broader markets, which can be hard to replicate
independently.

3. Resource Intensive

Direct distribution means you have to handle everything—order processing, customer service, logistics—all by yourself.
This can drain your resources, especially as your business grows and the demands increase.

4. Logistical Challenges
Managing logistics on your own, from warehousing to shipping, can get complicated and expensive. Ensuring that
products are delivered on time and handling returns without the support of distribution partners can be a real challenge.

5. Slower Market Entry

Getting into new markets can take longer when you’re using direct channels because you have to establish your own
presence from scratch. You miss out on the immediate access that intermediaries can offer.

6. Risk of Stockouts or Overstocking

Without the help of experienced intermediaries, managing inventory can be tricky. There’s a higher risk of either running
out of stock or ending up with too much, which can hurt your bottom line.

Advantages of Indirect E-commerce Distribution Channels

1. Cost Efficiency

One of indirect selling’s biggest draws is its cost efficiency. You don’t need to build and maintain your marketing or sales
teams because wholesalers and retailers take on those responsibilities for you.

It’s like hiring someone to do the heavy lifting without paying them directly from your pocket. Many companies choose
this route because it saves money and resources.

2. Tap into Existing Customers

When you sell your products indirectly, you’re not starting from scratch. Wholesalers and retailers have already spent
years, sometimes decades, building up their brands and customer bases.

They’re well-known and trusted, and their stores attract regular foot traffic. By partnering with them, you can instantly
access a large pool of customers who might not have found your brand otherwise.

3. Faster Market Penetration

Speed is another significant advantage of indirect channels. While selling directly can help you build relationships, it’s not
always the quickest way to reach your customers.

Retailers and wholesalers can get your products into the hands of consumers much faster. Customers can simply walk
into a store, pick up your product, and be on their way—no waiting for shipping or delivery. This is especially crucial for
fast-moving consumer goods that rely on quick turnover.

4. Reduced Operational Complexity

Managing all aspects of sales and distribution on your own can be overwhelming, especially as your business grows. You
hand off much of that complexity with indirect channels to your partners.

They handle the logistics, warehousing, and distribution, freeing you up to focus on other core aspects of your business,
like product development and customer experience.

5. Access to New Markets

Indirect channels can open doors to new markets that might require more work to enter independently.
Wholesalers and retailers often have established networks and a presence in regions where your brand might not be
well-known.

By leveraging their reach, you can expand your business into new areas without building a local presence from the
ground up.

6. Shared Risk

When you work with intermediaries, you also share the risks of selling your products. If a product doesn’t sell as well as
expected, the financial impact is spread out among your partners rather than falling entirely on your shoulders. This can
provide a safety net, especially when launching new products.

Disadvantages of Indirect E-commerce Distribution Channels

1. Increased Costs

One of the most significant downsides to indirect distribution channels is the increased operational costs. You’ll need to
share some of your revenue with the intermediaries, such as wholesalers or retailers.

This can eat into your profit margins, and for some businesses, it’s a steep price to pay for the benefits of broader
distribution.

2. Less Control Over Branding

When you sell through intermediaries, you lose some control over how your products are presented to customers.

Retailers may not always display your products how you’d prefer, and your brand might not be showcased as prominently
as if you were selling directly. This can dilute your brand message and impact customer perception.

3. Complex Supply Chain Management

Managing a supply chain is already challenging, but it becomes even more complex when dealing with multiple
wholesalers and retailers.

The larger your company and the more products you sell, the more complicated it becomes to manage these
relationships and ensure everything runs smoothly. You’ll need skilled personnel to oversee these operations, adding
another layer of complexity and cost.

4. Potential for Lower Customer Loyalty

Indirect channels can make building a direct relationship with your customers harder. Since you’re not interacting with
them directly, you miss out on opportunities to build brand loyalty.

Customers might associate their purchase more with the retailer than your brand, making it easier for them to switch to
a competitor’s product if it’s available at the same store.

5. Slower Feedback and Adaptation

Because you’re one step removed from your customers, feedback can be slower to reach you. Retailers and wholesalers
may not always relay customer feedback promptly, making it harder to adapt products or services quickly to meet
customer needs.

This can slow down your ability to respond to market changes or address issues before they escalate.
 6. Dependency on Partners

Relying on intermediaries means you’re dependent on their performance and decisions. If a key retailer decides to drop
your product or goes out of business, it can significantly impact your sales.

This dependency can also limit your flexibility, as you might need to align your strategies with your partners’ priorities,
which may not always match your own.

Advantages of Hybrid E-commerce Distribution Channels

1. Increased Market Reach

A hybrid distribution model allows you to reach a broader audience by combining the strengths of both direct and
indirect channels.

You can sell directly to customers who prefer buying from your website while reaching those who shop through
authorized distributors or retailers.

2. Flexibility in Strategy

With a hybrid approach, you can adapt your distribution strategy based on market demands and customer preferences.

Depending on what’s most effective, you can push certain products through direct channels while leveraging your
partners to handle others.

3. Enhanced Control Over Brand and Sales

By selecting your authorized distributors, you maintain significant control over how your brand is represented in the
market.

This ensures consistency in your brand’s image and helps you maintain the quality of customer experience across
different sales channels.

4. Balanced Risk and Reward

Hybrid distribution allows you to spread the risk between direct and indirect sales channels. If one channel faces
challenges, the other can help balance out the impact. This diversification can protect your business from potential
market fluctuations.

5. Better Customer Insights

Selling directly to customers gives you access to valuable data about their purchasing behavior, preferences, and
feedback.

Combined with the sales data from your indirect channels, you get a more comprehensive view of the market, enabling
you to make better-informed decisions.

Disadvantages of Hybrid E-commerce Distribution Channels

1. Increased Complexity
Managing a hybrid distribution model can be complex. Balancing direct sales with partnerships, managing multiple sales
channels, and ensuring consistent customer experiences across all touchpoints require significant coordination and
resources.

2. Potential Channel Conflict

With both direct and indirect channels in play, there’s a risk of channel conflict. For instance, your authorized distributors
might feel they’re competing with your direct sales efforts, which can strain relationships and impact sales performance.

3. Higher Operational Costs

While hybrid distribution offers flexibility, it can also lead to higher operational costs. You must invest in your direct sales
infrastructure and manage partner relationships. These costs can include logistics, marketing, and technology.

4. Diluted Brand Control

Even though you choose your authorized distributors, once your product is in their hands, you have less control over how
it’s marketed and sold than direct channels. There’s always a risk that your brand might not be represented exactly as
you’d like.

5. Coordination Challenges

Keeping all parts of the hybrid system aligned can be challenging. Ensuring that your direct sales, authorized distributors,
and retailers are all working towards the same goals requires constant communication and coordination, which can be
resource-intensive.

Business Application of E-commerce:

1. Retail & Wholesale

E-retailing, often known as online retailing, is the sale of products and services by businesses to customers via online
stores. This is done through the use of tools such as virtual shopping carts and e-catalogs. There are several e-commerce
applications in this industry.

2. Accounting & E-Banking

Finance and e-commerce are more intertwined than ever before. Banks and stock exchanges make extensive use of e-
commerce in their operations. Balance checks, bill payments, money transfers, and more services are available through
online banking. Online stock trading allows users to trade stocks online by providing information about equities such as
performance reports, analysis, charts, and so on via websites.

3. Production

In the manufacturing industry, e-commerce serves as a platform for firms to conduct electronic transactions. Groups of
firms can carry out their activities more smoothly by combining purchasing and selling, exchanging market conditions,
inventory check information, etc.

4. Trade

Applying e-commerce to trade elevates it to a higher level, allowing individuals to participate without regard for
geographical borders. This encourages more participation, more bargaining and contributes to the success of the trade.

5. Marketing & Advertising

Development and commercialization strategies like pricing, product characterization, and customer relationship can be
boosted by utilizing e-commerce. This will give consumers a more enriched and personalized purchasing experience.
Digital marketing tactics have grown in importance as a means of promoting enterprises.

6. Digital Shopping

People's buying habits have shifted dramatically in the previous several years. "Go online" has become a success mantra
for all enterprises. Online shopping is easy, pleasant, and, in most cases, inexpensive. The success of online shopping
applications like Flipkart and Amazon demonstrates this.

7. Web and mobile applications

Mobile commerce or m-commerce application is a subset of retail e-commerce. Mobile or web application
development has become a must-have for companies looking to showcase their skills. Purchases are made by the
consumer using mobile or web applications that are optimized for the merchant. These programs also provide payment
security by utilizing secure e-payment mechanisms.

8. Digital Reservations

Travel and tourism is a flourishing sector today, and online booking is a developing e-commerce application. Online
booking allows customers to buy travel necessities such as train/flight tickets, book hotel rooms, get tourism packages,
transportation services, and so on. It makes people's trips comfortable and easy because everything can be set at the tip
of their fingertips.

9. Digital Media

E-books and digital periodicals are gradually displacing traditional printed publications. It has numerous advantages,
including portability, lightweight, accessibility from anywhere, and so on. They are also environmentally friendly because
they assist in reducing paper use and saving forests. Because of these factors, internet publication, often known as e-
publishing, has grown in popularity.

10. Internet Banking

E-Banking, often known as online banking, is an e-commerce program that has streamlined people's time-consuming and
complex banking operations. It allows bank customers to do transactions online without having to wait in lengthy lines at
banks. To provide virtual banking services to their consumers, most of the banks now have their web applications.