Components of E-commerce
A typical e-commerce transaction loop involves the following major participating components:
1. The Seller of product and services
The Seller needs the following components:
- A Website with e-commerce functionality.
- Electronic Infrastructure to record and process customer orders.
- IT Team to manage and maintain the e-commerce system.
According to Statscrop.com, Flipkart.com has 6, 90,000 visitors every day and is ranked 220 in the world. Around 96% of the traffic comes from India. This reflects the tremendous potential of Indian Ecommerce Market.
2. The Customers
- The customers form a vital mass of the population with access to the internet and disposable income
- The customers should be equipped with online payment system, such as credit cards, net banking etc.
- The customers should be willing to buy online.
Hdfcbank.com is 16 years old, and has more than 4.5 visitors every day. The primary traffic is from INDIA. This reflects that India has wide population of online banking enabled customers.
3. The Internet Connectivity
The successful e-commerce industry relies on
- A robust and reliable internet infrastructure.
Most of the urban towns in India have robust internet infrastructure. But some portion of the rural india still struggles for power internet infrastructure.
4. Transaction Partners for E-Commerce:
(a) Banking Institutions
For processing credit card payments, net banking transfer, electronic fund transfers etc.
(b) Freight companies
Cost effective transportation for movement of goods. The system should offer a means for cost efficient movement of goods of small weight, such as – books, pen drive etc.
(c) Authenticating authority
That serves as a trusted third party to ensure the integrity and security of transactions.
5. The B2B Businesses
The Businesses carrying on B2B transactions forms a vital component. Both the buyer and sellers are businessmen.
6. The Government
(a) A legal framework governing e-commerce transaction.
(b) Legal institutions which would enforce the legal regulatory framework and protect consumers from fraud.
For e-commerce to grow, the above requisites and factors have to be fulfilled.