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    Find, consult and hire the best Lawyers in India


2017-11-01 13:05:22

Keywords: e-commerceevaluation of information systemsinformation systems successuse of information systemsuser satisfactionvalue of information technology.

Now everything is available on one click. Our scientists and social scientists are busy day and night around the clock to make human life easy and comfortable and they have succeeded in many aspects. 21st century is dominated by information technology. Earlier we used to go to physical retailers now it’s available on single click. The important issue here is to provide an overview of changing facets of Indian commerce from ‘physical commerce’ to ‘e-Commerce’.[1]


1.1.1 Business to Business (B2B)

The term B2B stands for Business to Business. It consists of one of the largest form of e-Commerce.  This model defines that buyer and seller are two different entities. It is the largest form of e-Commerce involving business of trillions of dollars/ Rupees. B2B is the selling between companies, wholesaler and the retailer. Efficient use of capital demands small inventories, which entails anticipating demand, and so maintaining detailed information that flows between all parties involved in today’s complex manufacturing processes. B2B e-Commerce is an important part of any online business. Leaving aside the simple transfer of funds, many businesses need some combination of: Creditworthiness assessment, Guarantee of quality and delivery of goods (escrow services), Safeguards against fraud, Fast collection of funds with ability to vary the collection period, Reporting: approval of sale, invoicing, delivery, payment, Procedures to handle disputes and information of all types-corporate, technical, identity-building has to be interchanged across the scattered divisions of large companies and as a result new ideas fostered, assessed and disseminated.[2]


1.1.2 Business to Consumer (B2C)

This is the most common e-Commerce segment involving businessmen and consumers. In this model, online businessmen sell products to individual consumers. B2C stands for Business to Consumer as the name suggests, it is the model taking businesses and consumers interaction.

Direct interaction with the customers is the main feature of this business model that is different from other business models.[3]


1.1.3 Consumer to Business (C2B)

It represents a consumer-business platform, where one consumer acts as a resource person selling goods in an online medium to other consumers at a price. This is an improvement over traditional selling or auction processes, where the relationship is in the form of ‘Business to Consumers’. Consumer-to-Business (C2B) can be described as a form of e-Commerce where, the transaction, originated by the customer has a set of required specifications and specific price for a commodity, service or item. In this type of e-Commerce customers get a choice of wide variety of commodities and services, along with the opportunity to specify the range of process. As a result, it reduces the bargaining time, increases the flexibility and creates ease at the point of sale for both the merchant and the consumer. The C2B business model is in many ways a hybrid of B2C and C2C e-Commerce.[4]


1.1.4 Consumer to Consumer (C 2 C)

C2C stands for Consumer to Consumer. The introduction of this new economy has helped to create a very individualistic and independent society. Consumers are no longer totally reliant on corporations and are increasingly looking to conduct their own business transactions. This is evident in Western Australia where the numbers of small businesses has doubled from 1983 to 1999 (Australian Bureau of Statistics, 2001). It helps the online dealing of goods or services among people. It facilitates the online transaction of goods or services between two people.[5]

·         E-commerce has undergone a boom with e-commerce sites taking over the physical retail business significantly. It creates new challenge before our neighborhood retailer. On the one side, e-commerce offers various offers and discounts across a wide range of products, attracting more customers to save money, and on the other side, e-commerce provides service on 24X7 bases.

·         Adequate legal protection is granted to the retailers, but implementation of these laws at the end of retailers is lacking.

·         There is need to strengthen retailer himself by using e-commerce and other relevant methods at local level to meet the challenge of the current scenario.


The Key drivers of in Indian ecommerce have been:

·         Increasing broadband Internet and 3G penetration.

·         Growing Living standards

·         Availability of much wider product range

·         Busy lifestyles and lack of time for offline shopping

·         Increased usage of online categorized sites

·         Evolution of the online marketplace model with websites like eBay, Flip kart, Snap deal, etc.


As commerce on the Internet has grown, the inevitable fallout from failed transactions and business relationships has resulted in a developing body of case law. Indeed, in the area of consumer fraud, the emerging issues in e-commerce are less related to substantive legal principles, than they are to procedural issues, such as the courts’ jurisdiction over out-of-state defendants and discovering and stopping fraud from taking place online.[6]

Hill v. Gateway, 2002


The main objective of UNCITRAL Model Law of E-commerce is to offer national legislators with a set of internationally acceptable rules as to how the legal obstacles in the communication of legal significant information through paperless messages, may be removed and how a more secure legal environment may be created for E-commerce.

Advantages of Electronic Commerce (e-Commerce)

The applications of electronic commerce have expanded rapidly because of the rapid expansion of the technology as well as the development of networks, protocols, software and specifications. Electronic commerce can be attributed as multi-disciplinary nature.

1.      Electronic commerce is highly economical. Unlike the brick– and –mortar environment, in e-Commerce there is no need of physical store space, insurance or infrastructure investment. All that is required is an idea, a unique product and a well designed web store front to reach cyber customers.

2.       Electronic commerce enables customers to shop or do other transactions 24 hours a day, all year round, from almost every location.

3.      Electronic commerce provides customers with more choices; they can select variety of products from many vendors at reasonable prices.

4.      Electronic commerce frequently provides customers with less expensiveproducts and services by allowing them to shop from far places with quick comparison.

5.      Electronic Commerce facilitates delivery of public services such as health care, education, distribution of government social services at a reduced cost and with improved quality.

6.       Electronic Commerce enables people to enjoy products and services that otherwise are not available to them. This includes opportunities to learn professions and earn academic degrees also.

7.      Electronic Commerce allows merchandise to be sold at lower prices. With this middle class people can buy more and increase their standard of living.

8.      Electronic commerce enables more individuals to work at home and to do less traveling for shopping,






After taking a holistic view of the industry trends, it is seen e-commerce is emerging as an important tool to ensure exploding growth of Indian economy. To achieve this, there should be more investments in supporting infrastructure and innovative and game changing business models in India.

The threat landscape is always evolving and increasingly challenging. The phenomenal growth of the e-commerce sector is accompanied by various challenges mentioned below

·         No proper implementation of laws

·         There are various controversies in law relating to e-commerce

·         Lack of awareness among people

·          Low entry barriers leading to reduced competitive advantages

·         Rapidly changing business models

·         Mainly restricted to urban areas as Internet usage in rural areas is limited

·          Shortage of manpower

·         Customer loyalty

·         Risk of logistics and shipping



·         With the growing competition in the ecommerce market, players who are able to adapt and improve quality products will gain profit and enhance the economy of the country.

·         Both electronic learning and mobile learning enhances the access of the good educational institutions in remote areas.

·         The rise of online sales in the developing markets will encourage retailers to go online for global expansion.

·          E-marketplaces are working well in India due to high fragmentation on the supply side.



1. Traditional shopkeepers should improve its knowledge about E - commerce process.

2. To give the training and information to customers for E - commerce process and operating an E - commerce site to traditional shopkeeper.

3. To develop employee's managements skills.

4. To improve the co-ordination of producers, dealers and customers.

5. To give the quick online support to customers.

 6. To understand the customers proper behavior, habits and expectations and then produce and develop the products.

7. Traditional shopkeeper to improve his services to attract consumer.


[1] R.K.Tiwari, P.K. Sastry and R.V. Ravi Kumar, Computer Crime and Computer Forensics, 5(2000).

[2]Hanson Ward, Principles of Internet Marketing, 110 (2000).

[3]Jim Blythe and Alan Zimmerman, Business to Business Marketing Management: A Global Perspective, 4(2005).

[4]Alan R. Simon and Steven L. Shaffer, Data Warehousing and Business Intelligence for e- Commerce, 66(2001).

[5] P.J. Boniface, “IT- Internet e-Commerce: Exports”, Pratiyogita Darpan, 979(2006).




[6] C. S. V. Murthy, E-commerce: Concept, models, strategies, 10(2011).

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