Are E-Commerce (Shopping) Companies Targeting the Right Segment in India

Are E-Commerce (Shopping) Companies Targeting the Right Segment in India

DOI: 10.4018/978-1-7998-8486-6.ch006
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The traditional trade and business are increasingly getting tough competition from e-commerce. E-commerce has reached most of the consumers in the urban sector and the youth, but the challenge lies in front of the companies so that it reaches the rural sector and the aged people. The rural population of India has to go to nearby cities to purchase luxury products. E-commerce can widen its area of operations and come to their help. Also, thanks to Jio, the people aged more than 45 and the retired are increasingly getting digital in the urban areas. Many of them still purchase the old-fashioned way, but they may adapt to e-commerce as they are adopting the digital world. Here, e-commerce can get new market segment without changing much in their logistics. A thing that is critical within the digital marketplace is the profound understanding of people, their behavior, and their community.
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E-commerce is the combining of electronic technologies with elements of traditional stores and direct mail models. The term E-commerce was originally conceived to describe the process of conducting business transactions electronically using technology from Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These technologies, which first appeared in the late 1970’s, allowed for the exchange of information and the execution of electronic transactions between business, typically in the form of electronic purchase orders and invoices. EDI and EFT were the enabling technologies that laid the groundwork for what we now know as E-commerce. The definition of E-commerce began to change in 2000 though, the year of the dot-com collapse when thousands of internets business folded. Despite the epic collapse, many of the world’s most established traditional brick-and-mortar business was emboldened with the promise of E-commerce and the prospect of serving a global customer base electronically. With over $700 billion dollars in sales business to business transactions online became one of the largest forms of E-commerce the very next year. Many of the dot-com collapse “first-mover” failures served their offline competitors very well, providing evidence of what not to do in building a viable online business. For example, one of the most infamous national supermarket chains, Web van, who each have developed their own successful online grocery delivery business.

Types of E-Commerce

  • B2B E-Commerce: Companies doing business with other companies. Businesses such as manufacturers selling to distributors and wholesalers selling to retailers. Based on the quantity of order the pricing is set and is often negotiable.

  • B2C E-Commerce: Business selling to customers through websites or apps. E.g., Flipkart, Amazon

  • C2C E-Commerce: Customers selling to customers. These sites or apps gives the customers a platform to list the products they want to sell, and the will customers can buy it. OLX is great example in case of India.

  • Others: G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government).

Key Terms in this Chapter

Perceived usefulness: User perception of adopting a model to have an impact on operational performance.

Electronic Data Interchange (EDI): It is the computer-to-computer exchange of information in a standard electronic format between the parties.

Translucency: Ability to see in an effective and transparent manner.

Actor-Network Theory: A theory that considers some rational people interpretations or decisions as a group decision.

Innovation Diffusion: Adoption or non-adoption of new products by prospective users.

M-commerce: Use of wireless technology to conduct commercial transactions online through handheld devices.

Millennial: Denoting people who are aware about social networking groups (generally 25 to 40 years of age).

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