• Global Reach

• Reduced Costs
• 24/7 Availability
Benefits of • Wide Product Range

E- •
•
Improved Customer Engagement
Personalization and Customer Insights
commerce •
•
Cost-Effective Marketing
Easy Inventory Management
• Faster Transaction Processing
• Data-Driven Decision Making
 Improved Customer
Global Reach: E- 24/7 Availability: Reduced Costs: Wide Product Range: E- Engagement:
commerce allows Online stores are Operating an e- commerce platforms can Customers can shop
businesses to reach a open 24/7, allowing commerce store showcase a vast array of products from the comfort of
global audience. customers to shop at often requires fewer from different categories and their homes or on
Your products or their convenience, overhead costs brands. This extensive selection the go, making the
services can be which can lead to compared to a gives customers a broader range shopping experience
accessible to anyone increased sales and physical retail store. of choices, allowing them to find more convenient.
with an internet revenue. There's no need for products that best match their They can also easily
connection, physical storefronts, preferences, needs, and budgets. compare prices, read
potentially extensive on-site reviews, and access a
expanding your staff, or utilities like wide range of
customer base heating and cooling. products and
significantly. services.
 Personalization and Cost-Effective Easy Inventory Faster Transaction Data-Driven
Customer Insights : Marketing: Digital Management: E- Processing: Online Decision Making: E-
E-commerce marketing methods, commerce platforms payment systems can commerce platforms
websites can use such as social media often come with process transactions collect a wealth of
customer data to advertising and email inventory in real-time, instantly customer data,
personalize the marketing, are management tools authorizing and which can be used to
shopping experience generally more cost- that help businesses verifying payments. analyze buying
by recommending effective than track stock levels in This eliminates the patterns,
products based on traditional real-time, reducing need for manual preferences, and
previous purchases advertising methods the risk of payment processing behavior. This data
and browsing history. like print and TV ads. overstocking or and reduces the risk can help businesses
running out of of errors associated make informed
products. with paper-based decisions and tailor
transactions. their offerings to
customer needs.
Limitations of E-Commerce
• Security & Privacy Concerns
• Limited Product Inspection
• Lack of Personal Interaction
• Dependence on Technology
• Logistics Issues
• Returns and Exchanges
• Fraud and Scams
• Cultural and Language Barriers
• Lack of Trust
• Competition and Market Saturation
• Social Isolation
Security and Privacy Concerns: E-commerce transactions involve the exchange of sensitive financial and personal information,
making them susceptible to hacking, data breaches, and cyberattacks. Ensuring robust security measures is essential to
protect both businesses and customers. Also, businesses often collect extensive customer data, raising concerns about privacy
and how this data is used. Striking a balance between personalization and respecting privacy is crucial.

Limited Product Inspection: Customers cannot physically touch, feel, or try products before purchasing them. This can be a
barrier, especially for products that customers prefer to examine in person, such as clothing or furniture. Customers may be
concerned about receiving counterfeit or subpar products when shopping online. Ensuring product quality and authenticity is
essential to maintain trust.

Lack of Personal Interaction: E-commerce lacks the face-to-face interaction that physical stores provide. Some
customers value personalized assistance and the ability to ask questions in real-time, which can be limited in
online shopping.

Dependency on Technology: E-commerce relies heavily on technology infrastructure, including websites,

payment gateways, and servers. Technical glitches, downtime, or website crashes can disrupt the shopping
experience.

Logistics Issues: Delays, damaged goods, or lost shipments can lead to customer dissatisfaction. E-
commerce businesses must effectively manage shipping logistics and communicate delivery times
accurately.
 Frauds and Scams: These can pose Cultural and Language Barriers: Different cultures
Returns and Exchanges: Returning have varying norms, values, and sensitivities. E-
risks to both businesses and
products purchased online can be commerce businesses must be culturally sensitive in
consumers. The fraudulent activities their marketing, product offerings, and customer
more complex and time-consuming
can take various forms, and it's interactions to avoid unintentional offense or
than returning items to a physical misunderstanding. Language differences can create
essential for everyone involved in e-
store. Customers may need to challenges in providing product descriptions,
commerce to be aware of them. specifications, and customer support in multiple
package and ship items back, and languages. Customers may be hesitant to make
Frauds and Scams can be of any
return policies vary among e- purchases if they cannot understand product details
nature related to payment, price, or have questions that cannot be answered in their
commerce businesses.
reviews, rating, offers, etc. preferred language.

Competition and Market Saturation:

Lack of Trust: Building trust in an
E-commerce markets are highly
online business can be challenging,
competitive, making it challenging for
especially for new or unknown
businesses to stand out. Additionally,
brands. Customers may hesitate to
price comparison websites and tools
make purchases from unfamiliar
make it easy for consumers to find the
online retailers due to concerns about
best deals, potentially leading to price
legitimacy and reliability.
wars and reduced profit margins.
 E-business models refer to the different
What is approaches that businesses can take
when conducting their operations online.
E-Business These models outline how a company
Models generates revenue, interacts with
customers, and delivers value through
digital channels.
 E-Commerce (Online Retailing) Model (E.g. Amazon)

Subscription Model (E.g. Netflix)

Freemium Model (E.g. Linkedin)

E-Business Models Online Marketplace (E.g. Olx, bookmyshow)

Peer-to-Peer (P2P) Model (E.g. Uber)

Digital Products and Services (E.g. iTunes, Udemy)

Affiliate Marketing (E.g. Influencers, bloggers affliation)

 • Online Advertising (E.g. Facebook Ads,
Youtube Ads)
• Dropshipping (E.g. Oberlo)
• Crowdfunding (E.g. Kickstarter)
• Online Auctions (E.g. eBay, DealDash)
E-Business Models
• Brick-and-Click Model (E.g. Walmart,
(contd.) H & M)
• Virtual Reality (VR) and Augmented
Reality (AR) Commerce (IKEA’s AR
Furniture app, VR Shopping Malls)
E-Commerce Model (Online Retail):
Subscription Model: Businesses
This is the most straightforward e-
offer products or services on a
commerce model, where businesses
subscription basis, where customers
sell physical products or digital
pay a recurring fee for access.
goods directly to consumers
Examples include streaming services
through their websites or online
like Netflix.
marketplaces (e.g., Amazon, eBay).

Online Marketplaces: Businesses

Freemium Model: Businesses offer
create a platform where multiple
a basic version of their product or
sellers can list and sell their
service for free and charge users for
products or services. The platform
premium features or a more
earns a commission or fee for
advanced version. Examples include
facilitating transactions. Examples
Dropbox and LinkedIn.
include Olx.

P2P Model: Platforms connect

individuals or businesses directly,
enabling them to buy, sell, rent, or
share resources such as goods,
services, or properties. Examples
include Airbnb and Uber.
Digital Product Model: Businesses sell digital products such as software, e-books, music, and digital art directly
to customers such as iTunes.

Affiliate Marketing Model: Businesses promote other companies' products or services on their websites and
earn a commission for each sale or lead generated through their referral. For example, Influencers promoting
Brands.

Advertising Model: Websites and apps generate revenue by displaying ads to users. This includes banner ads,
video ads, and native advertising. Also, Businesses pay for their advertisements to appear prominently in search
engine results. Google Ads is a prominent example.

Dropshipping Model: Dropshipping is a business model in which an e-commerce store does not keep the
products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party (usually
a wholesaler or manufacturer) and has it shipped directly to the customer.

Crowdfunding Model: Businesses leverage the collective knowledge, skills, or contributions of a crowd (usually
online) to solve problems, generate ideas, or complete tasks. Examples include Wikipedia and Kickstarter.
 Brick and Click Model:
The "Brick and Click"
business model, also
AR and VR Model: The
known as the "Clicks and
AR (Augmented Reality)
Online Auctions Mortar" or "Bricks and
and VR (Virtual Reality)
Model: Online auctions Clicks" model, combines
model combines
are a popular e- both physical (brick-and-
augmented reality and
commerce business mortar) and online (e-
virtual reality
model that allows sellers commerce) retailing
technologies to create
to list products for sale, channels within a single
immersive and interactive
and buyers can bid on business. This hybrid
experiences for users.
these products. The approach allows
This model is utilized in
highest bidder wins the businesses to reach a
various industries,
item, and the transaction broader customer base,
including gaming,
is completed. leverage the advantages
education, healthcare,
of both online and offline
retail, and more.
sales, and create a more
seamless shopping
experience for customers.
Elements of E-Business Models

Value Revenue Market Competitive

proposition model opportunity environment

Competitive Market Organizational Management

advantage strategy development team
1. Value Proposition

“Why should the customer buy from you?” Successful e-commerce value propositions:

Personalization/customization
Reduction of product search, price discovery
costs
Facilitation of transactions by managing
product delivery
2. Revenue Model

“How will you earn money?” Major types of revenue models:

Advertising revenue model

Subscription revenue model
Transaction fee revenue model
Sales revenue model
Affiliate revenue model
 3. Market Opportunity

“What marketspace do you intend to

serve and what is its size?”
Customer Segments: Identifies the
specific groups of customers or target
audience that the business aims to
serve.
Marketspace: Area of actual or
potential commercial value in which
company intends to operate
Realistic market opportunity:
Defined by revenue potential in each
market niche in which company
hopes to compete
 4. Competitive Environment

“Who else occupies your intended marketspace?” Influenced by:

Other companies selling similar products in the Number and size of active competitors
same marketspace Each competitor’s market share
Includes both direct and indirect competitors Competitors’ profitability
Competitors’ pricing
 “What special advantages does your firm bring to the
marketspace?”
Is your product superior to or cheaper to produce than your competitors’?

5. Competitive
Advantage
Important concepts:

First-mover
Unfair
advantage,
Asymmetries competitive Leverage Perfect markets
complementary
advantage
resources
6. Market Strategy
• “How do you plan to promote your
products or services to attract your
target audience?”
• Details how a company intends to enter
market and attract customers

• Best business concepts will fail if not properly

marketed to potential customers
• Channels:
• Specifies the digital channels and platforms used to
reach and interact with customers.
• Includes online storefronts, websites, social media,
mobile apps, and other distribution channels.
7. Organizational Development
• “What types of organizational structures within the firm are necessary to carry out the business plan?”

• Describes how firm will organize work

• Typically, divided into functional departments

• As company grows, hiring moves from generalists to specialists

• Key Resources
• Key Activities
• Partnerships and Alliances
• Cost Structure
• Distribution and Logistics
• Technology Infrastructure
• Data Analytics and Insights
 8. Management Team

“What kind of A strong Marketing and User Experience and Innovation and
backgrounds should management team: Promotion Interface Adaptation
the company’s Can make the
leaders have?” business model work
Can give credibility
to outside investors
Has market-specific
knowledge
Has experience in
implementing
business plans
Internet Marketing
• Internet marketing, also known as online marketing or digital marketing, refers to
the strategies and techniques used to promote products, services, or brands to a
target audience through various online channels. It leverages the power of the
internet to reach and engage potential customers, increase brand awareness, drive
website traffic, and ultimately, generate leads and sales. Internet marketing
encompasses a wide range of tactics and platforms, each serving specific purposes
within the overall marketing strategy.
Components / Types of Internet Marketing
Focuses on optimizing a website's content, structure, and
Search Engine Optimization (SEO): technical elements to improve its visibility in search engine
results pages (SERPs) organically.

Involves paid advertising on search engines through pay-per-

Search Engine Marketing (SEM): click (PPC) campaigns. It includes platforms like Google Ads
and Bing Ads.

Utilizes social media platforms (e.g., Facebook, Instagram,

Social Media Marketing (SMM): Twitter, LinkedIn) to engage with audiences, share content,
and promote products or services.

Involves creating and distributing valuable, relevant content to

Content Marketing: attract, engage, and educate target audiences. This can include
blog posts, articles, videos, infographics, and more.
 Uses email campaigns to communicate with subscribers
5. Email Marketing: and customers, share updates, promotions, and
personalized content.

Partners with affiliates who promote products or services

6. Affiliate Marketing: in exchange for a commission on sales generated through
their marketing efforts.

Collaborates with influencers (individuals with a strong

7. Influencer Marketing: online presence and following) to promote products or
services to their audience.

Leverages video content to engage and inform audiences.

8. Video Marketing: This includes platforms like YouTube, social media, and
video ads.

Uses paid ads on social media platforms to target specific

9. Social Media Advertising: demographics, interests, and behaviors.
 Displays visual ads, such as banners and graphics, on
10. Display Advertising: websites and apps to generate brand awareness and drive
traffic.

Targets users who previously visited a website but did not

11. Remarketing/Retargeting: complete a desired action (e.g., purchase) with
personalized ads.

Focuses on reaching audiences through mobile devices,

12. Mobile Marketing: including mobile-friendly websites, apps, SMS marketing,
and location-based services.

Utilizes automated chatbots on websites and messaging

13. Chatbots and Messaging Apps: apps to provide customer support, answer queries, and
guide users.
 Builds and maintains a positive online reputation through
14. Online Public Relations (PR): media coverage, press releases, and relationship-building
with online journalists and bloggers.

Collects and analyzes data from online marketing efforts to

15. Web Analytics and Data Analysis: measure performance, identify trends, and make informed
decisions.

Involves creating and promoting podcasts to engage with

16. Podcast Marketing:
audiences through audio content.

Hosts live online events, webinars, and streaming sessions

17. Webinars and Live Streaming: to engage audiences in real-time and deliver valuable
content.

Optimizes content and websites for voice search queries,

18. Voice Search Optimization:
considering the growing use of voice-activated assistants
 E-Tailing
Electronic retailing (E-tailing) is the sale of
goods and services through the internet. E-
tailing can include business-to-business (B2B)
and business-to-consumer (B2C) sales of
products and services. E-tailing, short for
"electronic retailing," refers to the practice of
selling products or services to consumers over
the internet.
It is a subset of e-commerce and involves
online retailers, also known as e-tailers or
online merchants, offering a wide range of
goods and services to customers through
digital channels.
Key Features of E-Tailing
• Online Storefronts
• Product Catalog
• Convenience
• Personalization
• Payment Options
• Customer Reviews and Ratings
• Shipping and Delivery
• Returns and Customer Support
• Digital Marketing
• Competitive Pricing
 ONLINE STOREFRONTS: PRODUCT CATALOG: E- CONVENIENCE: E- PERSONALIZATION: PAYMENT OPTIONS:
E-TAILERS OPERATE TAILERS MAINTAIN A TAIL WEBSITES ARE E-TAILERS USE DATA E-TAILERS OFFER A
WEBSITES OR ONLINE DIGITAL PRODUCT DESIGNED WITH ANALYTICS AND VARIETY OF
STORES WHERE CATALOG, SHOWCASING A USER-FRIENDLY CUSTOMER PAYMENT OPTIONS
CUSTOMERS CAN WIDE RANGE OF PRODUCTS INTERFACES TO BEHAVIOR TRACKING TO ACCOMMODATE
BROWSE, SELECT, AND OR SERVICES. EACH ITEM ENSURE EASY TO PERSONALIZE THE CUSTOMER
PURCHASE PRODUCTS OR TYPICALLY INCLUDES NAVIGATION, SHOPPING PREFERENCES,
SERVICES. THESE DETAILED DESCRIPTIONS, PRODUCT SEARCH, EXPERIENCE. THIS INCLUDING
WEBSITES SERVE AS THE IMAGES, PRICING AND A SEAMLESS INCLUDES CREDIT/DEBIT
PRIMARY INTERFACE INFORMATION, AND SHOPPING SUGGESTING CARDS, DIGITAL
BETWEEN THE RETAILER CUSTOMER REVIEWS. EXPERIENCE. RELATED PRODUCTS WALLETS (E.G.,
AND THE CUSTOMER. CUSTOMERS CAN AND TAILORING PAYPAL), BANK
TYPICALLY FILTER RECOMMENDATIONS TRANSFERS, AND
PRODUCTS BY BASED ON BUY NOW, PAY LATER
CATEGORY, PRICE, BROWSING AND (BNPL) SERVICES.
BRAND, AND OTHER PURCHASE HISTORY.
CRITERIA.
 CUSTOMER REVIEWS SHIPPING AND DELIVERY: RETURNS AND DIGITAL MARKETING COMPETITIVE PRICING:
AND RATINGS: E-TAILERS E-TAILERS MUST HAVE CUSTOMER SUPPORT : E- AND PROMOTIONS: E- COMPETITIVE PRICING IS
OFTEN INCLUDE EFFICIENT, RELIABLE, AND TAILERS HAVE CLEAR AND TAILERS EMPLOY VARIOUS A CRUCIAL STRATEGY IN E-
CUSTOMER REVIEWS AND TRANSPARENT SHIPPING ACCESSIBLE RETURN AND ONLINE MARKETING TAILING, AS IT DIRECTLY
RATINGS FOR PRODUCTS. AND DELIVERY REFUND POLICIES THAT STRATEGIES, INCLUDING IMPACTS A RETAILER'S
THESE REVIEWS PROVIDE PROCESSES IN PLACE OUTLINE THE PROCESS EMAIL MARKETING, ABILITY TO ATTRACT AND
VALUABLE INFORMATION INCLUDING STANDARD FOR RETURNING SOCIAL MEDIA RETAIN CUSTOMERS IN
TO POTENTIAL BUYERS SHIPPING, EXPRESS PRODUCTS AND ADVERTISING, SEARCH THE HIGHLY COMPETITIVE
AND HELP BUILD TRUST. SHIPPING, SAME-DAY RECEIVING REFUNDS OR ENGINE OPTIMIZATION ONLINE MARKETPLACE.
DELIVERY, AND FREE EXCHANGES. E-TAILERS (SEO), AND PROMOTIONS
SHIPPING FOR ORDERS OFFER CUSTOMER (E.G., DISCOUNTS,
OVER A CERTAIN SUPPORT CHANNELS COUPONS) TO ATTRACT
AMOUNT. SUCH AS EMAIL, LIVE AND RETAIN CUSTOMERS.
CHAT, AND PHONE
SUPPORT TO ASSIST
CUSTOMERS WITH
INQUIRIES, ISSUES, AND
PRODUCT-RELATED
QUESTIONS.
 ASPECT INTERNET MARKETING E-TAILING (ELECTRONIC RETAILING)

Definition Promoting products, services, or brands online. Selling products or services directly to consumers over the
internet.

Scope Broad, includes various online marketing strategies. Specific focus on online buying and selling process.

Focus Creating online presence, driving traffic, engagement. Facilitating online transactions, providing seamless shopping
experience.

Components SEO, SEM, content marketing, social media, email Online product catalogs, digital storefronts, payment
marketing, etc. processing, shipping options, etc.

Key
Differences Goals Increase website traffic, brand awareness, lead Facilitate online sales, enhance user experience, build
generation, sales, etc. customer loyalty.

between Primary Emphasis Promotion, advertisement, brand visibility. Selling, transaction facilitation, user experience.

Internet
Marketing and
Customer Journey Initial awareness to engagement and interaction. Product discovery to purchase and post-sale support.

E-Tailing Main Outcome Improved online visibility, customer engagement. Completed online sales, satisfied customers.

Example Platforms Social media, search engines, content sites. E-commerce websites, online marketplaces.

Relationship to E-Commerce Component of e-commerce strategy. Subset of e-commerce focused on selling products online.
New Questions-
• Difference between Online Market Place and Peer-to-Peer E-Business Model?
In Online Market Place model, it provide a platform for multiple vendors to list
and sell their products or services.
But in Peer-to-Peer model, individuals who want to share resources or services
are connected. Only USE of resource.

• Why Product Inspection is a Limitation and not disadvantage of E-Business?

Inability for customers to physically inspect products before purchasing online
is a limitation because it poses challenges in terms of evaluating product
quality, size, and other attributes. Businesses often work to address this
limitation through various strategies such as providing detailed product
descriptions, images, and customer reviews to help customers make informed
decisions.
• Difference between Online Advertising & Affiliate Marketing?
• Difference between marketing and advertising?
Marketing - Marketing is a broader concept that encompasses a range of
activities aimed at promoting and selling products or services. It involves
understanding customer needs and preferences, creating strategies to meet
those needs, and delivering value to customers. Marketing is a comprehensive
process that involves planning, researching, developing, and implementing
strategies to reach and engage target audiences. It includes various activities
beyond just advertising, such as market research, product development,
branding, pricing, distribution, and customer relationship management.
Advertising - Advertising is a specific subset of marketing that involves
creating and delivering promotional messages to a target audience through
various paid channels. Advertising typically involves the creation of visual,
audio, or textual content that is distributed through platforms like television,
radio, print media, online banners, social media, and more. The primary goal
of advertising is to increase brand awareness, attract attention, and encourage
customers to take a specific action, such as making a purchase or visiting a
website.