Chapter No 1
E-Commerce
The following points we will discuss in this chapter.
Points:  Introduction
 Understanding Internet Marketing
 Search Engine Optimization
 Search Engine Marketing
 Email Marketing
 Digital Display Marketing
1.1 Introduction
Every individual of a company that wants to earn a living and develop their
company needs to understand the market potential, business implications
and especially the technological foundations of e-commerce. So, what is this
e-commerce?
In the 21st century, it is difficult not to have heard of the word
‘e-commerce’. However, understanding the meaning of this very word is an
entirely different story altogether. E-commerce, which is short for
“Electronic Commerce”, is associated with the buying and selling of
information, products and services via computer network today. It is a
modern business methodology that addresses the desire of a firm, consumer
and management to cut cost while improving the quality of goods and
increasing the speed of services.
The buying and selling of products and services by businesses
and consumers through
an
electronic medium,
without
using
any paper documents. E-commerce is widely considered the buying and
selling of products over the internet, but any transaction that is completed
solely through electronic measures can be considered e-commerce.
When buyer-seller transactions occur in the electronic marketplace,
information is accessed, absorbed, arranged and sold in different ways. The
information of a product or service is as important as the physical product
or service itself in terms of its effect on a company’s profits. Thus,
information-based business transactions are creating new ways of doing
business, and even new types of business.
Definition: “E-commerce (electronic commerce) is the buying and selling of goods and
services, or the transmitting of funds or data, over an electronic network.”
Generally electronic network refers to the internet.
Definitions by different means:  From a communication perspective, e-commerce is the delivery of
information, products or payments via telephone lines, computer
networks or any other means.
 From a business perspective, e-commerce is the application of
technology toward the automation of business transactions.
 From a online perspective, e-com provides capability of buying &
selling products & information on the internet.
 E-business refers to a broader definition of EC, not just the buying
and selling of goods and services, but also servicing customers,
collaborating with business partners, conducting e-learning, and
conducting electronic transactions within an organization.
Types of E –Commerce: When we look at ecommerce businesses, they typically take the form of one
to two of these four different business models, depending on who is doing
the buying and who is doing the selling.
There are so many types of e-commerce but first four are the main types of
e-commerce are as given bellow,
1)Business to Business
2)Business to Consumer
3)Consumer to Consumer
4)Consumer to Business
5)Government to Business
6)Business to Government
7)Government to Consumer
8)Consumer to Government
9)Government to Government

B2B (Business-to-Business)
Companies doing business with each other such as manufacturers
selling to distributors and wholesalers selling to retailers. Pricing is
based on quantity of order and is often negotiable.
E.g. Software company sells their product to manufacturing company.

B2C (Business-to-Consumer)
The term business-to-consumer (B2C) refers to the process of selling
products and services directly between a business and consumers
who are the end-users of its products or services. Most companies
that sell directly to consumers can be referred to as B2C companies.
In this type we consider all types of Social media marketing sites like
E.g. Amazon, flipkart, etc. There should be not supply chain
management. The transaction between Business to Consumer directly.

C2B (Consumer-to-Business)
The transaction between consumer and Business are take place in C2B
type. E.g. when a consumer writes reviews or when a consumer gives
a useful idea for new product development then that consumer is
creating value for the business if the business adopts the input.

C2C (Consumer-to-Consumer)
There are many sites offering free classifieds, auctions, and forums
where individuals can buy and sell thanks to online payment systems
like PayPal where people can send and receive money online with
ease. eBay's auction service is a great example of where person-toperson transactions take place every day since 1995.
G2G(Government to government)
Government to government (G2G) is the electronic sharing of data
and/or information systems between government agencies,
departments or organizations. The goal of G2G is to support egovernment initiatives by improving communication, data access and
data sharing. E.g. Data sharing between state government to central
government.

Government to Business(G2B)

The G2B domain focuses on the interaction between government and
businesses via a computer mediated environment. One of the earliest
examples of G2B interaction is via electronic data interchange (EDI),
which represents a standardized method for sharing documents.

Government to Consumer (G2C)
The electronic commerce activities performed between
the government and its citizens or consumers, including paying taxes,
registering vehicles, and providing information and services.
Advantages and Disadvantages of E-commerce
E-Commerce Advantages for Customers

Convenience. Every product is at the tip of your fingers on the
internet, literally. Type in the product you are looking for into your
favourite search engine and every option will appear in a wellorganized list in a matter of seconds.

Time saving. With e-commerce there is no driving in circles while
looking and digging in hopes of finding what you need. Stores online
offer their full line as well as use warehouses instead of store fronts—
products are easy to locate and can be delivered to your door in just
days.

Options, options, options! Without driving from store to store the
consumer can easily compare and contrast products. See who offers
the best pricing and have more options to choose from. While a
physical store has limited space, the same store on the internet will
have full stock.

Easy to compare. Side by side comparisons are readily available and
easy to do. When products are placed online, they come with all the
specifics, and they want you to compare them with others, know they
have the best options and come back for more!

Easy to find reviews. Because the competition is high, companies
online want you to look at other consumer reviews. Good and bad
reviews are on every site, not only can you see if the product is liked,
you can also see the reasons behind the thumbs up or down.

Coupons and deals. With every online business wanting you, more
and more coupons and deals can’t be avoided, which are totally great
for customers. With major sites that act as department store, you may
find items up to 80% off! Take advantage of the competition and find
the best price available.
E-Commerce Advantages for Businesses

Increasing customer base. The customer base is every business’s
main concern, online or off. When online, a business doesn’t have to
worry about getting the best property in town, people from around the
world have access to their products and can come back at any time.

Rise in sales. By not managing a storefront, any business will have
more sales online with a higher profit margin. They can redistribute
money to make the consumer shopping experience faster and more
efficient. While being available to international markets, more
products will sell.

24/7, 365 days. If it’s snowing and the roads are closed, or it’s too hot
and humid to even step outside in the summer, or a holiday that every
store in town closes, your online business is open for consumers 24/7
every day of the year. The doors never close and profits will keep
rising.

Expand business reach. A great tool on the internet is…translation!
A business online does not have to make a site for every language. With
the right marketing, every consumer around the globe can find the
business site, products and information without leaving home.

Recurring payments made easy. With a little research, every
business can set up recurring payments. Find the provider that best
suits your needs and billing will be done in a consistent manner;
payments will be received in the same way.

Instant transactions. With e-commerce there is no more waiting for
the check to clear, or a 30-day wait for certain other types of payment.
Transactions are cleared immediately or at most two to three days for
the money to clear through the banking system.
E-Commerce Disadvantages
E-Commerce Disadvantages for Customers

Privacy and security. Before making instant transactions online, be
sure to check the sites certificates of security. While it may be easy and
convenient to shop, no one wants their personal information to be
stolen. While many sites are reputable, always do your research for
those with less than sufficient security.

Quality. While e-commerce makes everything easily accessible, a
consumer cannot actually touch products until they are delivered to
the door. It is important to view the return policy before buying.
Always make sure returning goods is an option.

Hidden costs. When making purchases, the consumer is aware of the
product cost, shipping, handling and possible taxes. Be advised: there
may be hidden fees that won’t show up on your purchasing bill but will
show up on your form of payment. Extra handling fees may occur,
especially with international purchases.

Delay in receiving goods. Although delivery of products is often
quicker than expected, be prepared for delays. A snow storm in one
place may throw off the shipping system across the board. There is
also a chance that your product may be lost or delivered to the wrong
address.

Need access to internet. Internet access is not free, and if you are
using free wifi, there is the chance of information theft over an
unsecure site. If you are wearing of your public library, or cannot
afford the internet or computer at home, it may be best to shop locally.

Lack of personal interaction. While the rules and regulations of each
e-commerce business is laid out for you to read, there is a lot to read
and it may be confusing when it comes to the legalities. With large or
important orders, there is no one you can talk to face to face when you
have questions and concerns.
E-Commerce Disadvantages for Businesses

Security issues. While businesses make great efforts to keep
themselves and the consumer safe, there are people out there that will
break every firewall possible to get the information they want. We
have all seen recently how the biggest and most renown business can
be hacked online.

Credit card issues. Many credit card businesses will take the side of
the consumer when there is dispute about billing—they want to keep
their clients, too. This can lead to a loss for e-commerce business when
goods have already been delivered and the payment is refunded back
to the consumer.

Extra expense and expertise for e-commerce infrastructure. To
be sure an online business is running correctly, money will have to be
invested. As an owner, you need to know transactions are being
handled properly and products are represented in the most truthful
way. To make sure you get what you need, you will have to hire a
professional to tie up any loose ends.

Needs for expanded reverse logistics. The infrastructure of an
online business must be on point. This will be another cost to the
business because money will need to be invested to ensure proper
handling of all aspects of buying and selling, especially with
disgruntled consumers that want more than a refund.

Sufficient internet service. Although it seems that everyone is now
on the internet all the time, there are still areas in which network
bandwidth can cause issues. Before setting up an e-commerce
business, be sure your area can handle the telecommunication
bandwidth you will need to run effectively.

Constant upkeep. When a business has started as e-commerce, they
must be ready to make changes to stay compatible. While technology
grows, the systems that support your business must be kept up to date
or replaced if needed. There may be additional overhead in order to
keep data bases and applications running.
Definition -Digital Marketing: Definition: “Digital marketing is a broad term that includes all marketing
channels and methods you can use to promote products or services
on the Internet but also on electronic devices such as TVs, Radios,
mobile phones and electronic billboards.”
Keep your business updated with the 21st century’s marketing
techniques. To keep up with the ever-growing competition, small businesses
need to make their businesses Digital. There is a consistent and evident
growth in the Digital Marketing industry and this is the perfect time to make
your digital presence felt. Businesses leverage digital channels such as
search engines, social media, email and their websites to connect with
current and prospective customers. In simple terms, any form of marketing
that exists online is called Digital Marketing.
According to definition of digital marketing we are considering both
channels online channels and offline channels. The following Diagram shows
the different channels.
Why is it Important to ‘Go Digital’?
Digital Marketing has zero geographical boundaries. There is not one but
many ways to expand your business digitally. Your business will reach
masses considering the amount of time the world spends online and the
variety of digital platforms available. So, this is how does digital marketing
will help your business –
 The ability to reach a global marketplace.
 You can save money and reach more customers than traditional
marketing methods.
 Digital Marketing builds brand reputation.
 Digital Marketing caters to mobile consumers.
Understanding Internet Marketing:-(E- marketing)
Definition: “Internet marketing is the process of promoting a business or
brand and its products or services over the internet using tools that help
drive traffic, leads, and sales and also called online marketing”.
Internet marketing is subset of Digital Marketing. Internet marketing also
called as web marketing, online marketing, webvertising, or e-marketing
Internet marketing also explains as
“A strategic marketing approach focused on creating and distributing
valuable, relevant, and consistent content to attract and retain a clearly
defined audience — and, ultimately, to drive profitable customer action.”
Benefits of Internet Marketing: Internet Marketing is the most trending and effective way of upscaling your
business. The highlights of Internet Marketing are mentioned below –
1) Global reach – Your business is not only promoted locally but also
establishes a global presence. A website allows you to find new markets and
trade. E.g. Amazon marketplace allows you to sell your products online and
this can be accessed by anyone, anywhere.
2) Cost-Efficient – The cost when compared to any other mode of marketing is
much lower in digital marketing. E.g. A display ad or an ad on social media
will be cheaper than a print ad with a targeted customer reach. It’s also more
effective than traditional ways in today’s world.
3) Trackable and Measurable results – Detailed information can be tracked
and measured of how customers use your website and respond to your
advertising with the use of web analytics tools.
4) Data and results are recorded - With Google Analytics, you can check the
reach of your campaigns done and store them as well for future analysis.
5) Personalization - If your customer database is linked to your website, then
whenever someone visits the site, you can greet them with targeted offers.
6) Interaction - By getting involved with social media, you can easily have a
conversation with your customers and build a rapport which ensures
customer loyalty.
7) Cash Back Offers - Internet marketing allows you to create engaging
campaigns using different types of media content to attract more customers.
E.g. cashback offers on apps, website, etc.
Together, all of these aspects of Digital Marketing have the potential to add
up to more sales.
Search Engine:  A program that searches for and identifies items in a database that
correspond to keywords or characters specified by the user, used
especially for finding particular sites on the World Wide Web.
 Computer software used to search data (such as text or a database) for
specified information
 Search engine is a service that allows Internet users to search for
content via the World Wide Web (WWW). A user enters keywords or
key phrases into a search engine and receives a list of Web content
results in the form of websites, images, videos or other online data.
 The list of content returned via a search engine to a user is known as a
search engine results page (SERP).
Search Engine Optimization (SEO): Search engine optimization is a methodology of strategies,
techniques and tactics used to increase the number of visitors (traffic) to
a website by obtaining a high-ranking placement in the search results
page of a search engine (SERP)
 SEO is the process of optimizing your website for the purpose of
getting free traffic from search engines.
 Which is the art of ranking high on a search engine in the unpaid
section, also known as the organic listings.
 SEO is important because an optimized web site is easily understood
by search engine crawlers and this increases the chances of ranking
higher in SERPS (search engine results pages).
 Organic SEO is a search engine optimization process that results in
your website content gaining increased visibility in unpaid, nonlocal results. There is no charge for clicks through to your site.
 White Hat SEO techniques and if you obey rules correctly of SEO then,
you will eventually be able to rank high on search engines and get a
portion of the search engine traffic.
 Black Hat SEO is just a term that is used to describe any actions taken
to trick search engine algorithms. They break rules of SEO.
There are following types of SEO as given
1) Technical SEO: Technical SEO is exactly what the name implies i.e. technical
parameters that affect the visibility of a website in search engines.The
main goal of technical SEO is to ensure that search engine crawlers can
crawl and index a website without any problems.
2) On-Page SEO:On Page SEO has to do with the page itself and how to make it
friendlier to search engines and users. In simple word engine crawler can
easily crawl page so use heading tag, metadata tag, alt tag, loading page
fast etc.
3) Off page SEO: Websites that are popular are more likely to rank higher on
Google than less popular websites. Most Worthy site link use on your
website.
4) Local SEO: Local SEO is a type of SEO suited for local businesses only.
In other words, if you have a website and your goal is to get clients
visiting your local store, then you should optimize your website for
local SEO.
5) Mobile SEO: Mobile SEO is subset of SEO. Your site is mobile friendly and also
support in mobile SEO. It’s a fact that more than 60% of Google
searches are now performed on mobile device.
Search Engine Marketing
“Search engine marketing is a form of Internet marketing that involved
the promotion of websites by increasing their visibility in search engine
results pages (SERPS) through optimization and advertising.”
In short
Search engine marketing, or SEM, is the strategy of using paid
advertising to get your website to appear on the first page of the search
engine results pages (SERP).
Sometimes, no matter how much time and money you pour into search
engine optimization (SEO) and keyword research, your website won’t
show up when users search. You may simply have too much competition
to make your mark – at least at first. SEM can be the answer to achieving
visibility and assuring sales faster than SEO alone.
In bellow Picture of search engine result page (SERP) shows that some
links are paid some are not paid. Paid links generally shown at the top of
the SERP that SEM links but those are not paid links still they are shown
in SERP are called organic SEO they are appears only their high raking in
SEO.
Digital Display Marketing:  Display marketing is advertising on graphical screens on the internet.
 The advertising media used are images, videos or animations, as well
as text links and moving images, which are delivered on various end
devices such as desktop PCs or smartphones.
 Display advertising is defined by banner ads (graphic or text), that
appear in specifically designated areas of a website or social media
platform (Facebook, Instagram, Twitter etc.). Digital display
advertising comes in a variety of different forms, but at its core, it
revolves around the same principle.
 The most important players in display marketing are advertisers and
publishers. Advertisers seek to promote their companies, products, or
services, while publishers offer up their resources (ad space) in
exchange for money. Different advertising forms are booked via a
display network on third-party websites. These ads are then displayed
according to the terms and conditions that were agreed upon by both
buyer and seller prior to the purchase. But before this step can be
carried out, a thorough target group analysis needs to be done in order
to make sure that the ads are displayed in the proper environment.
Forms of display marketing
There’s much more to display advertising than just your good-old-fashioned
banner ad. In addition to methods like banners and buttons, graphical
elements, like text, image, or video content can also be used. There’s a
difference between display ads and mobile ads, with the latter format being
used for mobile devices. Here’s an overview of some typical advertising
forms used in display marketing:




Banner: the sizes of banner ads can vary, and they can feature static,
animated, or interactive designs. An overview of different types of
banner ads can be found here.
Pop-up: advertising screens that ‘pop up’ when a user carries out a
specific action, like scrolling over a certain word. This method relies
on JavaScript.
Pop under: works the same way pop up ads do, but appears after a
website has been closed.
Layer ads: unlike pop ups, which open a separate window, layer ads
cover a site’s entire content