Recent Trends in E Commerce with special reference to Mobile Commerce

R. Lakshmi M.com. M.B.A., MPhil., Ph.D., Research Scholar Bharathiar University Coimbatore J. Lysa Eben M.C.A., M.Phil.,

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Assistant professor D.B. Jain college - Chennai

Abstract E-business is a very broad concept that involves a business organization to use electronic medium to carry out all specialized or overall business activities. In e-business, information and computing technologies are used to enhance ones business. It includes any process that a business organization conducts over electronic and computer enabled network. E-business deals with recruiting, training employees and sharing any internal information to enhance business process. In e-commerce, information and computing technologies are used in inter business and inter-business transactions and in business to consumer transactions. Electronic commerce involves the use of telecommunications and data processing technology to conduct business transaction. Electronic communication technologies such as internet, extranet, e-mail, e-books and databases are used to execute e-commerce transactions. Technologies such as electronic data interchange, electronic funds transfer and e-mail are used to receive payments and keep track of business transactions. E-commerce literally means buying and selling of goods and services through the internet. It is the online transaction of business, featuring linked computer systems between the seller, host and the buyer. Mobile commerce has developed due to the rapid growth of the Internet users. The promising technological advancement of wireless communication and devices, the growth of m-commerce is more prominent in Asia as there are more number of mobile users. Mobile users are able to check e-mails, movie details, hotel reservation details, stock quotes examination results and make payment through credit cards and carry many other applications on their mobile devices.

Recent Trends in E Commerce with special reference to Mobile Commerce

Introduction of E-Business and E-Commerce The terms e-business and e-commerce are often used interchangeably. When electronic medium is used an all the day-to-day activities, then it may be termed as e-business. When a commercial transaction takes place over electronic network, then it is termed as e-commerce. Some experts consider when business is completely carried on through an electronic medium, it may be referred to as e-business. E-business does not have physical presence in a market. When a business organization physically owns an office and along with its physical presence carries out a business transaction over internet, it may be referred as e-commerce. For example Amazon (www.amazon.com) and eBay (www.ebay.com) are considered to be the worlds two biggest e-business units. When Nalli Stores along with it physical presence sells textiles through its web site (www.Nalli.com), then it may be referred as e-commerce. IBMs Internet division, states the difference between e-commerce and e-business: ECommerce is all about buying and selling (on the internet) and all the processes that support buying and selling, such as advertising, marketing, customer support, credit-card activities etc. E-business, in addition to encompassing e-commerce, includes lots of applications to help business run more efficiently. It also includes more internal applications for linking employees together and helping employees work more productively. E-business also involves publishing and accessing information. So e-commerce and e-business are two halves of the same coin. E-business is the grand strategy, and ecommerce is an extremely important subset of e-business. E-business and E-commerce both address the business processes, as well as a technology infrastructure of databases, application servers, security tools, systems management and legacy systems. Need for E-Business The rapid changes in telecommunication and computing technologies evidenced in the internet and World Wide Wed have led to a whole new range of business applications, process and structure. Ebusiness is essential for existing business organization that do not possess a website are considered to

be brick and mortar businesses and organizations that own a web site are considered to be click and order businesses. E-business provides cost and transaction efficiency and helps business organization to enjoy economies of scale. Today, online presence along with physical presence is required for business organizations. Companies that have been conservative in the use of computers are rushing to have their presence in the internet world. E-business generates revenues and increases the productivity of the country. Following factors point out the need for e-business.

MOBILE COMMERCE Definition Forrester defines mobile commerce as the use of mobile hand-held devices to communicate and interact via high-speed connection to the internet. Factors that Drive M-Commerce The unique features of mobile device such as portability, convenience and personalized features have attracted users to get attached to the device. These are considered as personal companion and they drive users towards m-commerce. The technological cost involved in entering into mobile commerce is quite affordable for business organizations and the cost factor pulls business organizations towards m-commerce. The technological advances and evolution of hand-held devices incorporating WAR, GPRS are diving users towards m-commerce. The changing interest of consumer and adoption of internet for conducting E-commerce transactions have given confidence to business entrants to tap the gap that arises because of popularity of E-commerce.

 The rapid growth in mobile telephony and increase in the number of wireless device users are fuelling the growth for m-commerce. The increase in network capacity is turning the business units and consumers towards mcommerce. Differences between E-Commerce and M-Commerce

Basis of differentiation

E-Commerce

M-Commerce

Device

PC

Smartphones, pagers, PDAs

Common Method

E-MAIL, Click

SMS, Call

Presentation Standards

HTML

HTML, WML, HDML, i-Mode

Stage of development

Child

Infant

Bearer Networks

TCP/IP Internet

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Fixed

Wireless GSM, GSM/GPRS, TDMA, CDMA, CDPD, paging networks

Operating System

Windows, Unix, Linux

Symbian (EPOC), PalmOS, Pocket PC, proprietary platforms

Phone.com, UP Browser, Nokia Browser Microsoft Explorer, Netscape browser, MS Mobile Explorer and other microbrowsers

Users in India

Internet users are less when compared to mobile users

Mobile users are more than internet users

Technology

World Wide Web

Wireless Application Protocol

Advantages of Mobile Commerce

Convenience: The wireless devices are portable in nature and have the ability to store data and access internet at anytime from any location.

The users can receive any information and conduct transactions from anywhere at anytime. Mobile commerce provides the services as applicable to the user whenever the need arises. For example, a person might be interested in painting his home. He can send a SMS to Asian Paints; whereby the salesman will be at his doorstep to attend to his needs. Better Reach: Business organizations are able to reach customers anywhere, anytime. Likewise, the user can also reach any person at any time. Dissemination: The wireless infrastructure allows business organization to distribute information to a large consumer population with efficient means. Since data can be delivered to a large number of people within a specific geographic region at ease, it helps the business organization to carry out sales promotion activities efficiently and quickly. Just-in-time: The information can be transferred and received within few seconds with the help of mobile devices. For example, in stock market transactions, where the prices are fluctuating, the share brokers can send stock market trends to clients mobile and obtain their instructions within a few seconds. Localization: The knowledge of the users physical location enables to provide location based applications. For example, content can be delivered based or persons geographic location. Personalization: The applications of mobile commerce can be personalized according to the needs of the specific user. Lots of information, services application are available on the internet. But the owners of the mobile devices require different sets of application and service. The mobile commerce applications can be personalized to provide information or services according to the needs of specific users. So, personalization takes the form of customized information. Personalization enables the business to reach customers and attract them. Instant connectivity: Mobile commerce provides access to information without the need to active a PC. Always on or instant contention is drawing success due to the emergence of 2.5G networks. The users can access internet easily and quickly.

Application of M-Commerce Mobile commerce has entered into finance, retail, telecommunication, healthcare, information technology, sales and services. 1. Finance: The customer (using the mobile) can pay from their bank account using mobile commerce facilities. Mobile users can transfer funds between account or receive any information related to finance from institutions or banks. WAP based mobile devices allow the user to access the internet or the website of the financial institutions. For example, a user of the credit card gets reminded from the institution stating the amount of outstanding balance, minimum amount due and the due date. Likewise, when the customer pays through cheque or when the payment is made by him, the institution sends an acknowledgement through SMS stating the amount that has been received by the institution. For example, ICICI Bank has launched iMobile. iMobile allows the customers to carry out all internet banking transactions through mobile phones. Customers can transfer funds to ICICI and non ICICI Bank accounts with the help of their mobile. It allows customers to request for a cheque book or stop payment of a cheque through mobile device. Customers can also pay their utility bills through this facility. It allows them to know their transaction details and payment due dates through mobile phones.

2. Retail and After sale Services: Companies can also online catalog of products so that the mobile users can access the catalog from their mobile devices. Customers are able to shop, place orders or hire services and pay for dues through mobile phones. For example, indiatimes.com allows the users to shop for flowers by sending SMS to 58888. Orders can be placed through mobile phone and the user can get SMS alerts of the express delivery orders. LG has introduced Prompt response service to provide an excellent after sale service. A customer can SMS to 5757554 to LG service and their service engineer reaches the customer within a day.

3. Mobile Marketing: It is easy for business organizations to send text messages to promote a new product or carryout any form of promotional campaign. For example, Reliance fresh sends the customer an SMS stating the reward points earned by them when they purchase goods from Reliance. Even if some changes are brought in providing reward points, they are informed to the customer in order to encourage sales. Likewise, some gym centres send SMS to customers stating the launch of their new exercise equipment. It is very easy to attract a customer through SMS.

4. Mobile Ticketing: Airline tickets can be purchased through mobile phone. It also enables users of mobile phone to make changes in their tickets. For example, Travelocity alerts customer when a flight is delayed. It allows the customer to make alternate change in flights or subsequent hotel reservations. With flybuy SMS launched by Kingfisher Airlines and pa ymate, customers can get the details of Kingfisher airlines flights by sending SMS. The customer can book the ticket after receiving a reply. Besides the above, movie tickets can also be booked through mobile phones.

5. Mobile Entertainment: Mobile terminal acts as a portable music player. Downloading ringtones has become successful m-commerce application. Several cell phone makers and wireless providers are making good money by selling different kinds of customized ringtones.

6. Hotel Reservations: Using mobile devices, customer can reserve for restaurants and hotels according to their needs.

7. Healthcare and Medicine: Wireless services are used in healthcare and medicine for billing, lab ordering, referrals, prescriptions and clinical decisions. For example, in United States, healthcare professionals are able to obtain patient information form any location by getting connected wirelessly to the hospitals information system. They are able to access the patients and pharmaceutical information and provide better patient care.

8. Inter Office Communication: Sales personnel, who are always on the move, have to access to the company information system containing details about the product and price. But mobile

allows the travelling sales personnel to track inventory and maintain communication with seniors at ease. Travelling salesman do not have to wait a long to get approval from seniors. Any information could be transferred easily and quickly with the help of mobile devices. It removes barriers in intra-office communication.

9. Information: Mobile enable customers to get information like sport news or political news of their choice. For example, today through SMS, students are able to check their university results or public examination results. For example, Aircel allows the user to check their examination results by mentioning their roll number and the board of study and the charges are very minimum.

10. Gaming: Customers can play multi player games through mobiles. Mobile games are very popular with colorful display and it generates good revenue.

Types of mobile payment: Mobile payments can be categorized into two types: 1. Remote payment 2. Proximity payment

1.Remote payment Payment that can be made from any location without a point of sale terminal, is called a remote payment. Remote mobile payment can be made using short message services and wireless application protocol technologies. The user to make payments through SMS should first open an account with a mobile payment service provider. For example, PAY PAL or TEXT PAY ME are the examples of service providers that allow payments through mobile phones. The mobile user banks account or debit card or credit card depending upon the choice , to the account associated with the mobile phone number. The payer who wishes to pay money to the receiver sends a code or a command to the mobile payment service provider stating the value and the mobile number of the

receiver. Once the mobile payment service provider receives the information, its sends a message to the payer to confirm the transaction and seeks for the mobile personal identification number. Once the payer receives the message from MPSP, he enters the MPIN and confirms the payment. The money is transferred to the receivers third party account by the MSSP after receiving MPIN from the payer. The MPSP sends the information regarding the payment made to the receiver.

Money can be moved to the bank account after the receiver gets the payment information.

2.Proximity payment: Proximity payments can be made if only Near Field Communication chip is installed in the mobile device. Proximity payment involves exchange of payment information between users mobile device and merchants point of sale terminal. Users account information is stored on the chip in the mobile devices. If only NFC chip is installed, proximity payments can be carried out. Through NFC chip, customer waves at a point of sale terminal and makes payment. Conclusion: Future of E-Commerce in India There is a great potential for e-commerce in India and also throughout the world. Problems associated with technological infrastructure, cyber laws and security can act as a stumbling block in preventing purchases to purchase goods on the web. So, it is essential to formulate a policy and implement regulatory environment that enhances the development of e-commerce in India. Government should pay attention to ensure secured online transactions. Legal framework should be improved to provide confidence to business houses and individuals to conduct commercial transactions through web. Banking laws and regulations have to be modified to encourage internet banking and mobile banking. Implementation of e-governance in all the sectors should be pushed up in future. The tax policies on e-commerce should generate more revenue to the government and must be on par with the business conducted through physical stores. The Government of India is taking steps to ensure secured online transactions. The GOI is taking steps to bring the cyber crimes under the ambit of Indian Penal Code, Indian Evidence Act and the Code of Criminal Procedures. It will avoid the criminals from taking advantages of the loopholes in the Information Technology Act. If secured electronic platforms

with strict cyber laws emerge in future, then definitely a warm welcome will be provided to ecommerce by the consumers, business and related sectors. Future of mobile commerce Mobile commerce provides enormous opportunities and promises for revenue growth, cost savings and competitive advantage through various mobile applications. It generates a good travel level of customer understanding and promotes personalized relationship with customers, mobility has enables link business units with their customers and business associates. The wireless technological changes will soon bring dramatic and fundamental changes in business strategies, enterprise resource planning, supply chain management and customer relationship management. The increase in the number of cellular subscriber base, growth of wireless technologies and the mobile handset manufacturers, evolution of various mobile applications and mobile payment methods indicate that the mobile commerce will soon become an essential aspect in modern commerce