Market basically refers to a physical destination where goods and services are exchanged. For e.g., the Sarojini market in New Delhi is well known for its cheap products, on the other hand, Sarafa, Indore is a well know spot for late-night street eating. Humans need to transport themselves to these locations to indulge in commerce (transfer of funds) but nowadays everyone prefers to bring the market to themselves. The citizens don’t wish to go outside their comfortable homes and prefer to shop while relaxing in their sofas and beds. The marketers upon realizing these conditions have successfully managed to bring giants like Amazon, Alibaba, Flipkart, Snapdeal, Myntra, and many more online. Their apps help the customers to shop whenever and wherever they wish. My study focuses on how E-commerce helps these giants to earn profit and maintain themselves in such a competitive market.
· WHAT DO WE MEAN BY E-COMMERCE?
Commerce refers to paperless exchange during a business. The full form of E-Commerce is Electronic Commerce and as the name suggests it refers to the exchange of funds electronically, which is using electronic devices. This sector boomed in 2014 and a lot of people now prefer e-commerce for day to day purchases. E-Commerce allows the business to function 24*7 hours, and 7 days a week giving customers a big-time window to fulfill their demands. In other words, e-commerce refers to buying and selling products and services online. Electronic 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 is in turn driven by the technological advances of the semiconductor industry and is the largest sector of the electronics industry. Modern-day e-commerce generally uses the World Wide Web and online apps. The concept of e-commerce started in 1971 or 1972 when the ARPANET was used to conduct a cannabis sale between the students of Stanford Artificial Intelligence Laboratory and Massachusetts Institute of Technology and this was later described as a seminal act of e-commerce. Later in 1975, Micheal Aldrich introduced and demonstrated the first online shopping system. The first business-to-business online shopping system was installed in 1981. In all the following year\’s e-commerce started to take place and people became aware of such activities. All of gave rise to Amazon in 1995, eBay in 1995 and Alibaba in 1999, and it is known to everyone about how profitable these companies are. Also, the richest man in the world is the owner of Amazon, Jeff Bezos.
· HOW DOES E COMMERCE HELP COMPANIES?
E-Commerce helps everyone, right from startups to big multinational companies. These companies can sell their products online and the customer gets benefited as they don’t have to leave their houses to do shopping. E-Commerce helps the business to be open 24 hours a day and 7 days a week along with online customer services, blogs, and social media, which would allow a company to make a mark in the market and grab the opportunity to expand its product ranges. Due to the internet’s accessibility, the company’s websites can reach millions of people, even at the same time. This cannot be done through any other way of advertising or local stores. An E-commerce site also helps to scale the business according to the need of the customers. The needs can be understood and accordingly unnecessary items can be avoided and new payment methods can be added. These sites also help in saving money as the organization does not have to invest in a physical store, insurance, or infrastructure, it is a lot more economical and reasonable.
E-Commerce plays a very important role in our daily lives. It provides a great opportunity to start a new business and expand it online. Big companies have to think a lot before applying any new policy as it would affect many employees and customers all over the world. The emergence of new technologies has sparked a lot of change in developing countries, like India. Virtual walls help customers scan barcodes for items on an electronic wall using their mobile phones and place orders with retailers. Thanks to rising internet penetration, the gross number of online users in India now exceeds the number of people who have compiled primary education. This shift emphasizes the increasing relevance of India’s digital economy. The World Bank has predicted a big increase in the Indian GDP and the Indian E-Commerce has played a huge role in it. The e-commerce sector is maturing and several serious players are entering the market. This will not be without its share of challenges, be it operational, regulatory, or digital.