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E-commerce

Internet is changing the way consumers shop and buy goods and services and has rapidly evolved into a global phenomenon. Many companies have started using the internet with the aim of cutting marketing with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive markets. Companies also use the internet to convey, communicate and disseminate information to sell the product, to take feedback and also the conduct satisfaction surveys with customers. Customers use the internet not only to buy the product online, but also to compare prices, product features and after sale services facilities they will receive if they purchase the product online. Many experts are optimistic about the prospect of online business.
 In addition to the tremendous potential of the e-commerce market, the internet provides a unique opportunity for companies to more efficiently reach existing and potential customers.
Although most of the revenue of online transactions comes from business-to-business commerce, the practitioners of business –to-consumer commerce should not lose confidence.
 It has been more than a decade since business-to-consumer e-commerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace. Along with the development of e-commerce retailing, researchers continue to explain   e-commerce’s behavior from different perspective. Many of the studies have posited new emergent factors and assumptions model of consumer behavior, and examine their validity in the internet context.

E-commerce is not just only about creating an online catalogue. The mechanics of e-commerce business is same as any traditional retail business except orders are booked online. It is a highly capital-intensive business and requires strong technology, infrastructure, customer service and expertise. Most of the sales for electronics and IT products initiate with a research and customers want to evaluate all the options- brands, price comparison, payment options, ease of buying, service levels etc. before actual buying. As e-commerce is our core business, our understanding of the online customer enables us to do a better job in convincing him to buy on Letsbuy.com. Brands also want to leverage our platform as we get more than 3 million visitors on our website every month, which is more than any large format retail store selling electronics in India.

Online retailing in India is growing at a rapid pace. According to industry estimates, the current market size for pure-play internet retail is about $100 million, which is expected to grow to $ 1 billion by 2015. One of the major drivers of this growth will be the strengthening of the Indian economy leading to a higher disposable income in the hands of people who will then be more open to shopping on the internet. The other important factor will be stricter regulation on online transactions by the government, reducing frauds and resulting in trust building for the medium.


Source: INDIAN MANAGEMENT MAGZINE (THE JOURNAL OF AIMA,VOLUME 50, ISSUE 11)

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