02 Nov 2017
The explosion in the use of electronic commerce (e-commerce) by the sector has been tremendous since its origination solely many years ago. From governments to international firms to one-man start-ups, e-commerce is progressively viewed as a key business modality of the longer term. Easy dealing, widening markets, and minimized overheads are factors that build e-commerce solutions additional and additional enticing, as evident with the expansion of on-line sales. Unquestionably, e-commerce has been a positive development for many people as it has made shopping easier and more convenient, as well as provided an income for others.
An e-commerce payment system facilitates the acceptance of electronic payment for on-line transactions. Additionally called a sample of Electronic knowledge Interchange (EDI), e-commerce payment systems became progressively in style with the widespread use of the internet-based looking and banking.
The term "when the dust settles" often is used when discussing e-commerce, and with good reason. The technology, the business models, and the value chain relationships are new and in many ways different from traditional business environments. While purchasing online, there is always a concern for the customer regarding the privacy and security. It will lead them to show the hesitation towards purchasing the goods online. The uncertainty remains there with the risk of privacy and security theft of customer. Customers are more concerned over their security while making online payment. Compared to offline shoppers, online shoppers put higher values on the perceived return on their money, time and effort investments. In addition, there are more risks involved in non-store shopping, including online shopping, than in offline brick-and-mortar shopping. This increased degree of perceived risk may be explained by lack of physical/tangible inspection, lack of interpersonal interaction, lack of security and trust, difficulty in returning the product, and so forth. Because of the increased risks involved with on-line shopping, the degree of online purchase hesitation is expected to be higher than that of offline purchase hesitation.
Online shopping has continued to gain momentum in the marketplace, but several key factors, including concerns for security and privacy are threatening these growth projections. A common consensus among offline buyers is that online transactions expose users to tremendous financial risk of credit card fraud. Offline buyers are also concerned about the potential that the information consumers provide during online transactions may be forwarded to other companies without their permission. As the proliferation of online activity continues, so continues the concern for online security and privacy. As a result, many consumers have chosen not to buy online. Instead, they browse online and shop offline. To realize the full potential of the "Internet economy," the electronic commerce (EC) industry must address the continued consumer apprehension about the security of their credit cards, as well as, concerns that personal information the consumers provide during online transactions may be misused.
Internet online shopping is different in many aspects from such traditional offline shopping outlets as physical stores, telephone ordering, and mail order; for example, the vast number of alternative available to consumers, higher machine interactivity, higher message customization and interaction etc. Compared to offline shoppers, online shoppers put higher values on the perceived return on their money, time and effort investments. In addition, there are more risks involved in non-store shopping, including online shopping, than in offline brick-and-mortar shopping. This increased degree of perceived risk may be explained by lack of physical/tangible inspection, lack of interpersonal interaction, lack of security and trust, difficulty in returning the product, and so forth.
Because of the increased risks involved with online shopping, the degree of online purchase hesitation is expected to be higher than that of offline purchase hesitation. Similarly, online shoppers may have different reasons for delaying product purchase online (e.g., lack of skills and trust, confused by over choice) and different types of delay behaviors (e.g., abandoning shopping carts, hesitating to click the payment button, hesitating to register as a buyer). Therefore, it is imperative to study the types of consumers’ delay behaviors online and the underlying reasons for hesitation in making online product purchases.
In times of ubiquitous electronic communication and increasing industry pressure for standard electronic authentication, the maintenance of privacy, or "the right to be left alone" becomes a subject of increasing concern. The possibility of a "transparent human," whose vital information is up for grabs, can most easily be envisioned in the realm of e-commerce, due in part to the large amounts of data available, and in part to the high payoffs expected from using this data for marketing purposes.
Online shoppers may have different reasons for delaying product purchase online (e.g., lack of skills and trust, confused by over choice) and different types of delay behaviors (e.g., abandoning shopping carts, hesitating to click the payment button, hesitating to register as a buyer). Therefore, it is imperative to study the types of consumers’ risks and the underlying reasons for hesitation in making an online payment.
The e-commerce industry has undergone massive transformations since the launches of early industry leaders Amazon and eBay that created the backbone of the industry as we know it today. Although Amazon and eBay are still dominant players in the industry, major forces of disruption have taken place in the last few years that took e-commerce to an entirely new level.
Social networks like Facebook and Twitter have been spreading like wildfire – the term "social commerce" was coined and the networks became huge drivers of a new e-commerce wave. The daily deal site Groupon launched in November 2008 and infamously turned down Google’s $6 billion offer in December 2010. The e-commerce industry was never the same again with over 100 similar companies launched, attempting to share a slice of the pie. Private sales companies like Gilt Groupe and GSIowned Rue La La started offering deeply discounted luxury clothing via flash sale in the midst of one of the worst recessions ever and successfully built an empire of online sample sales – there are more than 80 of such companies to date. In addition, new technologies like tablets and 3G/4G smartphones have become an enormous catalyst of mobile commerce.
Source: Gridley & Company LLC
E-Commerce is Growing at 5x in Traditional Retail. Online sales are expected to overtake traditional sales in less than 10 years. The U.S. was the 2010 leader in global e-commerce sales at 27% of worldwide volume; U.S. e-commerce retail sales totaled about $177 billion in 2010, up an average of 13% from 2009.New avenues for e-commerce, e.g. daily deals, private sales, etc. boosted the sector’s momentum in 2010 and will contribute an increasingly larger share of the e-commerce market in the next few years.
India has an internet user base of over 100 million users. The penetration of e-commerce is low compared to markets like the United States and the United Kingdom but is growing at a much faster rate with a large number of new entrants. The industry consensus is that growth is at an inflection point with key drivers being:
Increasing broadband Internet (growing at 20% MoM) and 3G penetration.
Rising standards of living and a burgeoning, upwardly mobile middle class with high disposable incomes
Availability of much wider product range (including long tail and Direct Imports) compared to what is available at brick and mortar retailers
Busy lifestyles, urban traffic congestion and lack of time for offline shopping
Lower prices compared to brick and mortar retail driven by disintermediation and reduced inventory and real estate costs
Increased usage of online classified sites, with more consumer buying and selling second-hand goods.
Evolution of the online marketplace model with sites like ebay, Infibeam, and Tradus
India’s e-commerce market was worth about $2.5 billion in 2009. About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online Retailing comprises about 12.5% ($300 Million as of 2009). India has close to 10 million online shoppers and is growing at an estimated 30% CAGR vis-à -vis a global growth rate of 8-10%. Electronics and Apparel are the biggest categories in terms of sales.
Source: Forester Research Inc.
The India retail market is estimated at $470 Billion in 2011 and is expected to grow to $675 Billion by 2016 and $850 Billion by 2020, – estimated CAGR of 7%. According to Forrester, the e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012-16. India e-tailing market in 2011 was about $600 Million and expected to touch $9 Billion by 2016 and $70 Billion by 2020 – estimated CAGR of 61%. Mjunction.in is the largest B2B Ecommerce portal in India.
The data suggested that there is a he potential for E-commerce in India. So, Its necessary for e-commerce companies to know the customer’s concerns for the online payment and sort out their problem in a concrete way.
The e-commerce websites are surrounding the virtual world. Though consumers are getting the 24X7 access to these websites for purchasing the goods but there is always a risk factor which prevents the customer to purchase online. The risk factor is related to online payment option, as the customer is reluctant to make online payment on the risk of identity theft and other security related issues. It is also related to the payment failure and the deduction of money from the account of customer. These concerns related to online payment prevent the consumers to make an online purchase.
To identify the customers concerns for online payment.
To identify different types of online payment.
To identify the different type of risk associated with online payment.
To understand the process of making online payment in e-commerce transaction.
Online payment refers to money that is exchanged electronically. Typically, this involves use of computer networks, the internet and digital stored value systems. A facility that manages the transfer of funds from a customer to the merchant of an e-commerce Web site. The money may come from a digital wallet inside the user's machine, from a credit card stored on a server of the digital wallet service or from a prepaid account stored in the payment service's server.
A payment gateway is an e-commerce application service provider service that authorizes payments for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. It is the equivalent of a physical point of sale terminal located in most retail outlets. Payment gateways protect credit card details by encrypting sensitive information, such as credit card numbers, to ensure that information is passed securely between the customer and the merchant and also between merchant and the payment processor.
Online privacy is the privacy and security level of personal data published via the Internet. It is a broad term that refers to a variety of factors, techniques and technologies used to protect sensitive and private data, communications, and preferences. Online privacy and anonymity are paramount to users, especially as e-commerce continues to gain traction. Online privacy is cause for concern for any user planning to make an online purchase, visit a social networking site, participate in online games or attend forums. If a password is compromised and revealed, a victim's identity may be fraudulently used or stolen.
The means used to protect websites and other electronic files from attack by hackers and viruses. The Internet is, by definition, a network; networks are open, and are thus open to attack. A poor Internet security policy can result in a substantial loss of productivity and a drop in consumer confidence.
Interviews with number of respondents with a predesigned questionnaire are called a survey. Various services regularly conduct surveys. Surveys are the most flexible means of obtaining data from respondents. The researcher can focus only on a certain segment of the population. Surveys are the primary means of obtaining information about consumer’s motives, attitudes and preferences. A variety of questions can be asked, and visual aids, packages, products or other props can be used during the interviews. Properly analyzed, survey data can be manipulated in many ways so that the researcher can look at intergroup differences, examine the effects of in dependent variables such as age or income, or even predict future behavior.
Surveys can be broadly classified on the basis of their content as psychographic and lifestyles, advertising evaluation or general surveys/ field surveys.
A sample of the questionnaire is attached along with the annexure.
Sampling design starts by specifying the target population. The target population is the collection of elements or objects that process the information sought by the researcher and about which inferences are to be made. The target population has to be defined precisely. Imprecise definition of the target population will result in research that is ineffective at best and misleading at worst.
The sampling technique used is simple random sampling and convenience sampling. In this the sample is selected in such a way that every possible sample with the same number of observations is equally likely to be chosen. The sample size was for this survey will be 150-200 respondents of different age group and profession.
The present study will be based on primary data. Primary data will be collected by conducting a survey among 150-200 respondents of different age group and profession.
In this study, the statistical tools which are supposed to be used:
Pivot Table
Pivot Chart
T-Test
Descriptive Statistics
20-25
26-30
31-35
>35
Male
Female
Student
Govt. Job
Private Job
Businessman
Professional
Less than 1,00,000
1,00,000 to 3,00,000
3,00,000 to 5,00,000
5,00,000 to 7,00,000
More than 7,00,000
Yes
No
Credit Card
Debit Card
Online Banking
Cash Cards
Cash Vouchers
Credit Card
Debit Card
Online Banking
Cash Cards
Cash Vouchers
Security
Privacy
Payment Failure
Transaction Failure
Trust on E-Commerce Website
Strongly Agree
Somewhat Agree
Neutral
Somewhat Disagree
Strongly Disagree
Yes
No
https
Verisign
Security Certificate
3d secure code
Captcha Codes
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