factors affecting the growth of e business in india n.
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E-Commerce & Online Shopping

E-Commerce & Online Shopping

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E-Commerce & Online Shopping

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  1. Factors Affecting the Growth of E -Business in India Presented by, Yogesh sharma SEO Executive in Bizarre craft pvt ltd.

  2. Objectives of the presentation • Overview of terms E Business & E Commerce. • Difference between E business & E commerce • Factors affecting the growth of E Business in developing countries like India. • Impact of E Business on SMEs in India • Proposed Model for E Business in rural agricultural markets for farmers, traders

  3. Introduction to E Business • Both e-business and e-commerce rely on the Internet to accomplish their goals • “E Business includes buying and selling of products and services, servicing customers, collaborating with business partners, and conducting other intra-business tasks” • Successful E Business depends on a critical threshold of online users, the precursor to a critical threshold of sellers & buyers

  4. E Business & E Commerce E Business E Commerce E commerce refers to online transactions - buying and selling of goods and services over the Internet involving transaction of monetary nature E commerce is a subset of E Business. E-commerce focuses on appearance much more than e-business. • E business is a broader aspect with e commerce, Internet marketing, e procurement etc. • E-business applications strive to give a good idea of their company, promoting the values they use to market their business • Transactions involving money are "e Commerce" activities including the interactions with business partners, customers, vendors

  5. E Business in India • E Business has tasted much success in India in recent past and has provided Indian business a new heights, global reach, competitive advantage, acquiring new customers (global & local), foreign product knowledge etc • E Business has become integral part of everyday life from online banking to brokerage transactions, e contracts to global marketing • E Business has seen significance impact on airline sector, banking sector, educational, matrimonial services, placement sites and many B2B transactions

  6. Need of study • The tremendous rise of growth in E business has also increased the growth of risks, security threats, hackers, fear among internet shoppers. • Apart from have had on Indian users, there are few traditional sectors which has touched the expectations of ecommerce. There is much scope open left for e business in global marketing, online shopping, delivery of products, advertising. • Currently, there are less than 1,000 merchants in the country who are doing business online. Large chunk of these merchants are SMEs • Successful E Businesses based on viable E Business models and sound business principles will grow, change and mature; on other hand, E Business models based on flawed E Business models find it difficult ()

  7. Barriers affecting the growth of E Business • The factors affecting the growth of E Business as follows: • IT and Security factors • Customer perception & Attitudes • Technological factors • General factors • Internet factors • Infrastructural & Internal resisting factors • Regulatory & Political factors • User interface factors

  8. Information Technology & Security factors • Major hurdle for growth of e business all over world is the security of online data • Ensuring security of payments and privacy of online transactions is key to widespread acceptance of e commerce • Virus, spyware, worms, Phishing increases fear • Denial of Service attacks & spoofing • Lack of transparency in electronic transactions • Internet provides greater access to data not only to legitimate users, but also hackers, disgruntled employees, corporate spies.

  9. Customer perception and attitude • Lack of trust among customers for online business • Not sure of product quality • No touch & feel of product • Many Indians prefer to physically go out for shopping • Indian customers has attitude to bargain products • Impatience to wait for receiving the purchased product • “it’s one thing to submit a credit card number to buy a product. It’s quite another thing to put your entire personnel dossier online and hope that no one intercepts it,”.

  10. Technological factors • E business partners find it hard to invest & update with new technologies • Bandwidth: Transmission capacity of a communication channel is a major barrier for products that require more graphical & video data. • Rapidly changing technologies & emerging of new technologies • Financial costs: Storing information, data mining, processing orders has impact • High costs of developing, purchasing new software, licensing of software, Integration into existing systems, costly e business solutions for optimization

  11. General factors • Lack of awareness & understanding the value of e business & security involved in it • Lack of understanding on how E business operation works • Lack of trust: Safety, security, delivery • Need for insurance of high cost products • Shipping & courier costs • Lack of IT knowledge to purchase online • Different local languages & cultural factors • Leaders of many SMEs have less literacy in computers & IT area

  12. Internet factors • According to, India with a population of over 1.1 billion has estimated 6.9% (81 million) Internet users by 2008 [5] • E business depends on speed, bandwidth of communication. • Internet connections yet to reach many rural areas. • Broadband connections are limited to urban & sub-urban areas. • Low internet penetration as well as low credit card population.

  13. User Interface factors • Some products require more graphics than textual data • Some website’s GUI confusing at times • Limited menus, poorly designed navigations, difficulty in comparing multiple products on same screen • Lack of online support with product selection • Room for improvements in sound and picture quality • Virtual immaturity: This area in which much progress has not taken place • Web page design can change customer preferences

  14. Proposed E Business model for agricultural trading

  15. References • Bizarre Crafts Pvt. Ltd.Office No 101, First Floor, U.S.M.S.S Ltd. Near Jasola Apollo Metro Station, New Delhi, INDIA -110076 • Call Us:  +91-11-65399965, +91-9540995322, +91-9785109100

  16. Thank you