Ques- Explain Limitation of E-Commerce?

1. Security:- the security risk in e

commerce can beclient / server risk
data transfer and transaction risk
virus risk
2. High start up cost:The various components of cost involved with e
commerce are:connection:- connection cost to the internet.
hardware / software:- this includes cost of sophisticated computer, moduer, rout
ers, etc.
maintenance:- this include cost invole in traning of employees and maintenance o
f web-pages.
3. Legal issues:- these issues arises when the customer data is fall in the hand
s of strangers.
4. Lack of skilled personnel:- there is difficulty in finding skilled www develo
pers and knowledgeable professionals to manage and a maintain customer on line.
5. Loss of contact with customers:-Sometimes customers feels that they doesnot h
ave received sufficient personal attention.
6. Uncertainty and lack of information:- most of the companies has never used an
y electronic means of communication with its customers as the internet is an unk
nown mode for them.
7. Some business process may never be available to e
commerce:-Some items such a
s foods, high cost items such as jwellery may be impossible to be available on t
he internet.
QUES 2) write in your words: Future of E-commerce in India and in globe?
ndian e-commerce industry has evolved over a period of time with innovations tha
t have changed the rules of the game globally. Cash on delivery (COD) is one suc
h example. In a country where credit card penetration is much lower than other d
eveloped markets and where e-commerce companies are still working hard to build
trust among shoppers, introducing cash on delivery has been one of the key facto
rs for the success of the segment. At present, COD is the preferred payment mode
for close to 55-60% of all online transactions in the fashion and lifestyle seg
ment in India.
COD is here to stay owing to its convenience and its cultural affinity and will
be a major part of payment mechanisms for at least the next four to five years.
Executing COD efficiently and painlessly for the customer is critical to the suc
cess of any e-commerce player in the country.
Delivering experiences
Besides COD, e-commerce players need to focus on customer experience as a means
to build trust and confidence. Customer experience encompasses every interaction
a customer has with your service from placing an order to interacting with your
customer service team, to the actual delivery experience.
Providing a great delivery experience is one of the core aspects to delighting c
ustomers. This doesn t necessarily mean constantly pushing the frontier on faster
deliveries. Being a day behind the fastest in the market isn t a big deal, but tru
st, consistency and reliability are more important. The more faith the customer
has in your delivery service, the more likely he is to buy again. Delivering a g
ood experience is critical not only to ensure repeat purchase from a customer, b
ut also for building a good brand image and word-of-mouth publicity.
Growing the base
Online shopping has seen a lot of traction in the last 12-18 months. India has a
lmost 130 million online users at present, out of which as many as 10% are engag
ing in online transactions. The online user base is expected to cross 300 millio
n in the next 2 3 years and a larger percentage of people are expected to transa
ct online by 2015. This large base will provide vast scope for e-commerce busine
sses to establish themselves in India.
Growing opportunities
Cities beyond metros are in the limelight for all the good reasons. On an averag

e, almost 50
55% of our business come from tier 2 and tier 3 cities and I believ
e this ratio is similar across other ecommerce companies in the country. With me
tro markets reaching saturation, I believe tier 2 and 3 cities are going to be t
he biggest drivers for ecommerce businesses in India in the not so distant futur
e. Building a robust supply chain is critical to efficiently fulfilling orders f
rom these cities and tapping their full market potential.The e-commerce industry
is growing at a rapid pace and changing the dynamics of the retail industry. In
the coming years, e-commerce is expected to contribute close to 8-10% of the to
tal retail segment in India. This growth is bound to continue provided e-commerc
e companies focus on innovating, building strong technology infrastructure and d
elivering the best customer experience.
Ques3) What is E-commerce life cycle Model (ESLC)?