Foreign Direct Investment (Fdi) In E Commerce In India

3040 words - 12 pages

INTRODUCTION

The Internet has become a key ingredient of strenuous and busy lifestyle. ‘Internet’ has become the central-hub for communication, explorations, connecting with people or for official purposes. Resultantly, Internet growth has led to a plethora of new developments, such as decreased margins for companies as consumers turn more and more to the internet to buy goods and demand the best prices.

E-Commerce is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. 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. It also includes ‘M-commerce’ which makes use of various mobile devices or smart phones. It means "the delivery of e-commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology.” The various services available on M-Commerce are Mobile Money Transfer, Mobile ATM, Mobile ticketing, Mobile vouchers, coupons and loyalty cards, News, Stock Quotes, shopping apps, Mobile brokerage etc. Launching of Google Wallet Mobile App is one of the recent developments.

E-commerce is about two decades old, yet due to its fascinating dimensions, it remains a challenging area for researchers and professionals.

Ecommerce can be sub-divided into four main categories given below:
B2B commerce
It encompasses all those activities in which one business builds relationships with other businesses for efficiently managing several of their business functions. Thus it involves commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. IndiaMART.com is one such B2B online market place which provides a platform for businesses to find other competitive suppliers.

B2C commerce
It include all those activities in which Businesses sell to the general public typically through catalogues utilizing shopping cart software. Thus manufacturer or the intermediary directly trade with the consumer.

C2C Commerce
In this model consumers have dealings with other consumers. E-commerce has made it possible to bring together strangers and providing a platform for them to trade on. For example, eBay, olx and quikr enable consumers to transact with other consumers.
C2B Commerce
A consumer posts his requirements with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project.

People turned to the Internet to buy everything from electronics to books, houses, cars and even groceries, pushing e-commerce revenues. More and more companies are opting for selling wares through the internet route, offering...

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