E-Commerce and Business Structure Models - Class XI

The disadvantages of e-commerce business includes the lack of interpersonal relations between customers and business enterprise as they don't know about the physical existence of each other and it is not suitable where customer requires personalized services. Security is a main concern in pursuing e-commerce activities.

E commerce activities helps in reducing the costs of business transactions as physical stores are not required by an enterprise to function, provides economies of scale that leads to reduction in the price of products and increases the customer satisfaction and maintaining the goodwill of business enterprise.

Buying and selling through internet i.e E commerce activities helps in reducing the costs of business transactions as physical stores are not required by an enterprise to function, provides economies of scale that leads to reduction in the price of products and increases the customer satisfaction and maintaining the goodwill of business enterprise.

The drawbacks of e commerce business includes the lack of interpersonal relations between customers and business enterprise as they don't know about the physical existence of each other, internet is not available universally and it is not suitable where customer requires personalized services. Security is a main concern in pursuing e commerce activities.

E- business is a form of conducting business in which transactions are carried out with the electronically mediated communication like internet, intranet etc. between an organisation and its stakeholders.

E-Commerce in India, is the rapidly growing business platform as it includes buying and selling of goods, services and information. Goods and services that includes cameras, clothes, subscription to some law sites, placement services can be purchased and sold through internet. There is nothing in the market that cannot be purchased online.

Web farms refers to the collection of servers in single location called a data center in order to function as a coordinated group that can be controlled and managed easily. Web farming refers to extracting the idea from the web pages.

There are many types of e-commerce activities i.e. business to business (B2B) transactions, Business to Customer, Consumer to Consumer, Consumer to Business(C2B) etc.

Business to business form of e-business includes transactions that takes place between two business enterprises without including customers. For example: Car manufacturing firm can ask for quotation of prices from spare parts manufacturing firm.

Under GST law, e-commerce operators are required to collect Tax Collected at Source (TCS) on the net value of taxable supplies made through them by other suppliers.

When buyers are carrying out the transactions between them, then this form of e-commerce is known as customer to customer e-business. Here, buyers or consumers communicate with each other on the given platform regarding buying and selling of products.

B2B is a type of business in which two business firm carries out a transaction without involving any customer. For example: Private trading market is a form of e business in which a particular seller deals with other trading partners.

Intra-B Commerce refers to the transactions that takes place between the parties or persons who are the part of one firm only. Generally a firm deals with customers, suppliers, employees etc. These are called intra business transactions.

B2C commerce means transactions offered by business enterprises directly to customers. It includes services such as legal services and goods like clothes, shoes, camera, other accessories. In these transactions, customer is communicating directly to the business enterprise.

Business to Business refers to a situation when one business firm makes a commercial transaction with another firm. For example: a chips manufacturing business enterprise communicates with salt manufacturing business firm so as to deliver its own product in the market.

In consumer to consumer (C2C) form of e-commerce, transactions takes place between the customers. For example: OLX is an application in which one customer uploads a photo of their used product which they want to sell and another person can purchase the product if it matches their requirement.

If a foreign e-commerce operator has no physical presence or representative in India, they are legally required to appoint a person in the taxable territory to discharge their tax liabilities.

Digital products are ideal for B2C e-commerce because they are easily customized, can be delivered instantly upon purchase, and are standardized, making them efficient to distribute.

Suppliers using e-commerce platforms can avoid registration if they do not meet the mandatory registration threshold under Section 22 AND the e-commerce operator is not required to collect TCS under Section 52.

E-commerce activity where customers interact or trade with each other without involving any business enterprise. Here, buyers decide their own prices. Companies such as ebay are of e-commerce model.

Electronic commerce refers to pursuing commerce activities i.e. buying and selling of goods over an electronic network typically,  internet. These business transactions occur either as business to business transactions, business to consumer transactions, consumer to consumer transactions and customer to business services.

E commerce activities helps in reducing the costs of business transactions as physical stores are not required by an enterprise to function, provides economies of scale that leads to reduction in the price of products and increases the customer satisfaction and maintaining the goodwill of business enterprise.

Consumer to business is a business model in which customer offers some product or services to a business enterprise. For example: when a consumer writes reviews  or when a consumer gives a useful idea for new product development, it comes under C2B form of e business.