DMPQ: What is ecommerce? Various types of models of e-commerce? What are the positives for e commerce.

E commerce is the sale or purchase of goods and services conducted over networks of Tv and computers.  The use of internet and network is the key feature of e commerce.  According to a report by KPMG, e-Commerce sector in India is projected to cross $80 billion by 2020 and $300 billion by 2030.

The various models for e commerce are:

  • Market place model: The seller does not own the inventory. The seller only provides the platform for transaction and the goods are sourced from an inventory owned to number of enterprises.
  • Inventory based mode Ownership of inventory rests with the seller only.


Benefits of e commerce:

  • Rapidly growing sector.
  • Spillover effect on associate industries such as logistics, online advertising , media and ITes
  • Boost to regional and local entrepreneurships; A cost effective medium for the growth of MSME
  • Consumer friendly as there is increase in the number of choices. They are more convenient for consumers also.
  • Revenue generation for Government., providing employment opportunities.
  • Balanced regional development, will help to provide safety to local artisan industries by giving exposure to a large market means globalisation of indigenous products.( eg madhubani paintings, bagru print, bandhej sarees etc.)
  • E commerce attracts huge amount of investment in the form of FDI.


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