Tag: Modern Marketing Bangalore University BBA Notes

University of Mumbai BMS Notes

Major Stakeholders of Industrial Relations

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Government:

The role of the government has been changing from time to time in the matter of IR. Till 19th century, the governments throughout the world adopted a policy of laissez faire and left the IR matters to be settled by the employers and employees. However, with the increasing conflicts between them even on tiny matters, the governments’ attitudes changed to some kind of intervention in IR matters towards the end of 19th century.

In the present context, everywhere, governments intervene in the HR system in different ways. In India, government has prescribed various laws dealing with employer-employee relations and set machinery for resolving conflicts labour courts, tribunals at state and national levels.

These courts and tribunals intervene in the solution of industrial disputes referred to these. While developing IR system, an organization has to take into account the role played by the government in IR activities.

Employers’ Associations:

Like employees’ associations, employers may also join associations at the local or national level. The major associations of employers at all-India level are Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII), Associated Chambers of Commerce and Industry (ASSOCHAM), Federation of Indian Export Organizations (FIEO), etc.

Besides, there are associations at national level representing each major industrial sector and state/regional level associations.

The major functions of the employers’ associations with regard to IR are:

  • To represent employers in collective bargaining at the national or industry level.
  • To develop machinery for the avoidance of disputes.
  • To provide information on employee relations.
  • To advise member organizations on the issues related to IR.

Employers:

The second party to IR is employers. Since in the corporate form of organization, management represents the owners/employers, it can be treated as the second party to IR. The management is an organization is responsible to various stakeholders including the employees. Therefore, employer-employee relationship is also termed as management-labour relations.

Management tends to see employee relations in terms of the following activities:

  • Creating and maintaining employee motivation.
  • Obtaining commitment from the workforce.
  • Establishing mutually beneficial channels of communication throughout the organization.
  • Achieving high level of efficiency.
  • Negotiating terms and conditions of employment with employees’ representatives.
  • Sharing decision making with employees.
  • Engaging in a power structure with trade unions.
  • Management’s role in determining the status of IR system is quite crucial.

The following factors related to the management are important for IR:

  1. Attitudes of management towards the employees and their unions.
  2. The extent to which the management wants to exercise absolute authority to enforce decisions affecting the interests of the employees.
  3. The extent to which the management has designed the procedures for handling grievances, claims, and demands of the employees.
  4. The extent of the effectiveness of management in dealing with the problems and disputes related to IR.
  5. The organization’s business strategy; Stagnating, Growing, or Declining. In different situations, different IR strategy will be adopted.

Employees:

Employees are a party to IR as they are affected most by the IR outcomes. In an IR system, employees may be grouped into two categories- those who have been defined as workers/workmen under the Industrial Disputes Act, 1947 and those who are not covered by this Act.

Various characteristics of employees such as their commitment to the organization, their level of education and social background, their attitudes towards the management and the organization, and their commitment to the work determine the extent to which they will-

  1. Improve their conditions of employment
  2. Voice any grievances
  3. Exchange views and ideas with management
  4. Share in decision making.

Trade Unions:

Trade unions or other employees’ associations play crucial role in the effectiveness or otherwise of an IR system. The employees may have grievances, claims, and other demands on individual basis but they express these, often, on group basis. In order to strengthen their bargaining power, they form some kind of associations to voice their grievances.

According to Armstrong, trade unions/employees’ associations have the following broad objectives in relation to IR:

  1. To secure improved terms and conditions of employment for their members, and the maximum degree of security to enjoy these terms and conditions.
  2. To increase the bargaining advantage of the individual worker vis-a-vis the individual employer by joint or collective action for the individual action.
  3. To obtain improved status for the worker in his work.
  4. To increase the extent to which unions can exercise democratic control over decisions that affect their interests by power sharing at the national, corporate, and plant levels.

The role of unions in determining the status of IR in an organization depends on their membership, attitudes towards management, inter-union rivalry, and the strengths at the national or local level.

University of Mumbai BMS Notes

Principles of a good Industrial Relations

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The term ‘Industrial Relations’ comprises “Industry” and “relations”. Industry means any productive activity in which an individual is engaged. It includes:

(a) Primary activities like agriculture, fisheries, plantation, forestry, horticulture, mining etc. etc.

(b) Secondary activities like manufacturing, construction, trade, transport, commerce, banking, communi­cation etc.

Industrial relation aims at building a strong relation between the employees and the employer as well as among the employees themselves. A strong industrial relation ensures protection of employee’s interest and successful attainment of organisational objectives in smooth and efficient manner.

Industrial relations are the relationships between employees and employers within the organizational settings. It looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated.

Principles

  • All employees be treated equally in the organisation. No discrimination should be practised in enforcing the policies and rules of the organisation.
  • Workers should be given reasonable remuneration for their work. It will lead to contentment among them and contribute to industrial peace.
  • Sense of belonging to organisation is created among workers when they get opportunity of participation in management. Their morale is boosted. It leads to good industrial relations.
  • Industrial disputes should be a resolved by collective bargaining between trade unions and employers’ associations. Legal methods be used only if all other measures fail.
  • Frank and free exchange of views between Trade Unions and Employers’ associations.
  • In order to establish good industrial relations there should be desire for mutual co-operation between trade unions and management associations.
  • There should be effective communication between workers and managements for good industrial relations. In this case, there will be minimum conflicts between them.
  • Human treatment be meted out to the workers. Such a treatment will go a long way to make good industrial relations.
Management Notes

Benefits of EDI, Drawbacks of EDI, Applications of EDI

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Electronic Data Interchange (EDI) is a standardized method for transferring data between different computer systems or networks. It allows businesses to exchange documents electronically, such as invoices, purchase orders, and shipping notices, in a standardized format, eliminating the need for paper-based communication. EDI improves operational efficiency, reduces errors, speeds up business transactions, and enhances partner relationships. It is widely used in various industries, including retail, manufacturing, healthcare, and logistics, facilitating seamless B2B interactions.

Benefits of EDI:

  • Efficiency:

EDI streamlines business processes by automating the exchange of documents, reducing manual handling and processing time.

  • Cost savings:

With fewer manual errors, reduced paperwork, and streamlined processes, businesses can save money on labor, printing, postage, and storage costs.

  • Accuracy:

Electronic data interchange significantly reduces the chances of errors that can occur with manual data entry, resulting in more accurate transactions and fewer disputes.

  • Faster Transactions:

EDI enables real-time or near-real-time exchange of data, leading to faster transactions and improved responsiveness to customer demands.

  • Improved data quality:

EDI systems enforce data standards and validation rules, ensuring that data exchanged between trading partners is consistent and conforms to predefined formats.

  • Enhanced productivity:

By automating routine tasks and reducing paperwork, EDI frees up employees’ time to focus on more strategic activities, increasing overall productivity.

  • Better inventory management:

With timely and accurate information exchange, businesses can better manage their inventory levels, reduce stockouts, and minimize carrying costs.

  • Competitive advantage:

Implementing EDI allows businesses to meet the electronic trading requirements of larger trading partners, making them more attractive partners and opening up new opportunities for growth.

  • Improved customer satisfaction:

Faster order processing, accurate invoicing, and better communication enabled by EDI can enhance the overall customer experience, leading to higher satisfaction and loyalty.

  • Compliance with regulatory requirements:

In industries with strict regulations, such as healthcare and automotive, EDI helps businesses comply with industry standards and regulatory requirements for data exchange and reporting.

Drawbacks of EDI:

  • Initial setup costs:

Implementing EDI can be expensive initially due to the costs associated with acquiring the necessary software, hardware, and network capabilities. Training staff and integrating EDI with existing systems also contribute to the upfront expenses.

  • Complexity:

Setting up and maintaining EDI standards and systems can be complex, especially for businesses with limited IT resources. This complexity can extend to mapping documents to the appropriate formats and managing ongoing changes in EDI standards.

  • Dependence on Trading partners:

The effectiveness of EDI largely depends on the cooperation and readiness of trading partners. If partners are not equally committed to using EDI, its benefits can be diminished.

  • Upgrades and maintenance costs:

Over time, maintaining an EDI system may require additional investments in software upgrades, system maintenance, and training to keep up with evolving standards and technologies.

  • Limited Flexibility:

EDI formats can be rigid, making it challenging to customize information exchange for unique business needs or to quickly adapt to changes in business processes.

  • Data Security concerns:

Transmitting sensitive business data electronically can increase the risk of data breaches and cyber attacks. Ensuring data security requires continuous vigilance and investment in cybersecurity measures.

  • Integration challenges:

Integrating EDI systems with other internal business applications (like ERP systems) can be difficult and may require additional customization or middleware, adding to the complexity and cost.

  • Vendor lock-in:

Businesses may become dependent on specific EDI software vendors, making it challenging to switch vendors in the future due to high switching costs and the effort required to migrate to a new system.

  • Slow adoption in some industries:

In industries or regions where EDI adoption is slow, businesses may not fully realize the benefits of EDI due to a lack of electronic connectivity with some partners.

  • Need for ongoing Training:

As EDI standards and technologies evolve, there’s a continuous need for training staff to ensure they are up-to-date with the latest developments, adding to the operational costs.

Applications of EDI:

  • Supply Chain Management:

EDI facilitates the exchange of purchase orders, invoices, and shipping notices between suppliers, manufacturers, distributors, and retailers, streamlining the entire supply chain process.

  • Retail Industry:

In retail, EDI is used for electronic ordering, invoicing, and payment processing between suppliers and retailers, enabling efficient inventory management and order fulfillment.

  • Healthcare:

EDI is widely used in healthcare for claims processing, eligibility verification, and exchanging patient information between healthcare providers, insurance companies, and government agencies.

  • Finance and Banking:

Banks and financial institutions use EDI for electronic fund transfers, electronic statements, and other financial transactions between institutions, businesses, and consumers.

  • Automotive Industry:

EDI is employed in the automotive sector for electronic communication between manufacturers, suppliers, and dealerships, facilitating just-in-time inventory management and production planning.

  • Logistics and Transportation:

EDI enables electronic communication between shippers, carriers, freight forwarders, and customs agencies for tracking shipments, managing transportation schedules, and processing customs documentation.

  • Manufacturing:

EDI is used in manufacturing for electronic procurement, production scheduling, and inventory management, facilitating seamless communication between suppliers and manufacturers.

  • Government:

Governments utilize EDI for electronic filing of tax returns, processing permits and licenses, and exchanging regulatory information between government agencies and businesses.

  • Food and Beverage Industry:

EDI is employed in the food and beverage industry for electronic ordering, invoicing, and inventory management between suppliers, distributors, and retailers.

  • Apparel and Fashion:

In the apparel industry, EDI is used for electronic order processing, shipment notifications, and inventory management between clothing manufacturers, wholesalers, and retailers.

University of Mumbai BMS Notes

Campaign Marketing

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Marketing campaigns promote products through different types of media, such as television, radio, print, and online platforms. Campaigns are not solely reliant on advertising and can include demonstrations, video conferencing, and other interactive techniques. Businesses operating in highly competitive markets and franchisees may initiate frequent marketing campaigns and devote significant resources to generating brand awareness and sales.

Sometimes the best way to define something, particularly concepts such as campaign marketing, is to look at some concrete examples in action. There are some excellent instances of campaign marketing that have come out of the B2B realm over the past few years, targeting the various different segments of the Inbound Marketing and sales funnel. So, let’s take a look at two of the best of them one that targets the middle and bottom stages of the funnel as well as one that targets the top.

Marketing campaigns bring together several kinds of marketers. Some may specialize in inbound marketing, others may focus on outbound marketing, social media marketing, content marketing, or other areas.

Today, much of this collaboration between different marketers can be achieved using cloud-based applications and tools. As such, it is increasingly common for businesses to have remote marketing staff or hybrid working business models.

Marketing teams can have a mixture of on-site marketers working from the office, and others working remotely. Numerous effective marketing collaboration tools help remote and local marketing teams to achieve the highest level of productivity while working in tandem.

Other marketing tools increase the efficiency of the marketing department through other means. There are many tasks of a marketing campaign that can be time-consuming if done manually. Thanks to robotic process automation (RPA), it is possible for marketing teams to save time on these repetitive tasks and free up resources.

Today, there are also platforms as a service (PaaS) application that simplify many tasks within the marketing department. It is easy to gauge the impact of your marketing strategies using tools like Google Analytics. You can find customer relationship management tools that automate certain interactions with customers in your sales funnel. Other tools, too, assist in automating email marketing.

Components

The components of a marketing campaign include a planning stage, evaluating how the results of the campaign will be measured, determining a target market, how the campaign will be delivered, how to achieve results, and finally, to assess how well the campaign did.

  1. Measurement

Creating a measurement criterion to be able to effectively analyze how the marketing campaign has performed is incredibly important. Some measurement tools can be the number of sales, pre-orders, consumer sentiment for the product, shares on social media, or how the campaign is perceived in the news.

  1. Planning

During the planning stage, it is important to find the goal of the marketing campaign and understand what it is trying to accomplish. Once these are determined for a campaign, it is easier to build a vision and understand the next necessary steps.

  1. Identification of the target market

Determining a target market is paramount to ensure that the right product is being marketing to the right client; this is one of the cornerstones of marketing. An important aspect of picking the target market is understanding what stage the consumer is in the buying process.

If the product is a new innovative technology, the target market should be centered around innovators or early adopters those who are willing and seeking to try new technologies and products. Whereas if the product is entering a developed market space, perhaps targeting an early majority or late majority audience would fare better.

  1. Results

To be able to achieve results, it is important to frequently refer to the goals that were set out from the beginning of the campaign. There may not be a set formula to achieve results, as every marketing campaign varies significantly. However, calibrating and perhaps re-calibrating marketing efforts to align with goals is vital in order to achieve desired results.

  1. Delivery of the marketing campaign

The delivery of the target campaign should form around the type of consumer that is being targeted. If the target market consists of innovators or early adopters, perhaps the delivery of a marketing campaign would be better suited to a medium that revolves around social media. Whereas if the target market is not as in tune with technology, a low-tech delivery of the marketing campaign may be better suited.

  1. Assessment of the marketing campaign

After the marketing campaign has achieved a result, it is important to assess the results of the campaign and evaluate its effectiveness. An assessment can also be achieved from external sources through feedback from consumers.

A common assessment method to release a feedback forum to consumers when the product is purchased and used. Analyzing the feedback from consumers can be incredibly helpful to understanding if the marketing campaign was successful or if the efforts should be re-evaluated.

University of Mumbai BMS Notes

Podcasts and Vodcasts

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Podcasts

A podcast is an episodic series of spoken word digital audio files that a user can download to a personal device for easy listening. Streaming applications and podcasting services provide a convenient and integrated way to manage a personal consumption queue across many podcast sources and playback devices.

A podcast series usually features one or more recurring hosts engaged in a discussion about a particular topic or current event. Discussion and content within a podcast can range from carefully scripted to completely improvised. Podcasts combine elaborate and artistic sound production with thematic concerns ranging from scientific research to slice-of-life journalism. Many podcast series provide an associated website with links and show notes, guest biographies, transcripts, additional resources, commentary, and even a community forum dedicated to discussing the show’s content.

The cost to the consumer is low. While many podcasts are free to download, some are underwritten by corporations or sponsored, with the inclusion of commercial advertisements. In other cases, a podcast could also be a business venture supported by some combination of a paid subscription model, advertising or product delivered after sale.

People are motivated to create a podcast for a number of reasons. The podcast producer, who is often the podcast host as well, may wish to express a personal passion, increase professional visibility, enter into a social network of influencers or influential ideas, cultivate a community of like-minded viewership, or put forward pedagogical or ideological ideas (possibly under philanthropic support).

Because podcast content is often free or, at the very least, affordable for the average podcast consumer, podcasting is often classified as a disruptive medium, which is averse to the maintenance of traditional revenue models. Long-running podcasts with a substantial back catalogue are amenable to binge consumption.

Vodcasts

A step beyond podcasting, vodcasting, also called video podcasting or vlogging, adds video to the downloadable sound files podcast listeners are used to. Download the video files is a simple matter of subscribing to a vodcast in one of the many freely available directory programs.

After downloading and saving them to a portable video player, users can choose when and where they want to watch the video, making them independent of television programming schedules. A number of vodcasting tools also exist to help turn people from mere video consumers to producers.

Apple added vodcasting support to its popular iTunes software, which lets users subscribe to pod and vodcasts and automatically downloads the most recent updates. Ipodder, another popular service that started with podcasts, also has a vodcast directory.

Vodcasts’ large file size makes a flat rate, broadband Internet connection a necessity to speed up downloads and keeps costs down. Watching the video away from the computer also requires a mobile video player, which are often built into newer PDAs and many MP3 players, including the iPod Video.

  • A video file that is posted to some site and which is automatically downloaded by subscribers of the site.
  • A video podcast, or video clip distributed on the Internet and available for download through RSS subscription and aggregation for playback on computers or portable devices.
  • Also referred to as a Video Podcast, is a syndicated web feed of audio and video files available through the Internet.
  • A type of podcast that contains full motion video. VOD, the first three letters of vodcast are an acronym for “video on demand” but when coupled with podcast subscription is better described as a “vodcast.”

Engagement:

Research all you can:

A good vodcast like all other alternatives also requires in-depth research. The finished product is a true replica of the amount of research and study one has done for it and also depends on the success or failure of the podcast. Take inspiration; learn from vodcast examples, vodcast sites to get better.

Choose your channels:

Ensuring you post on the right forums in the next important thing hence make a list of all different medium you can target to publish your vodcast. Since this is a new trend, you will first have to check its flexibility on the domains you’re targeting and then proceed.

Go with a calendar:

Although creating a vodcast can be a pretty exclusive, time-consuming and even costly affair, a calendar can definitely make things a whole lot easier. Try creating goals that can be met instead of burdening yourself with it all at ones. Keep wholesome breathing space between creating a vodcast and podcast since churning them out every week will surely hamper the quality and add to the exhaustion.

Announce your new offering everywhere you can:

Since you’re taking a big step with digital marketing, the fact that vodcasts are being created should be highlighted on your social media so people are aware of what you’re doing. Once your followers know your offerings they will be curious to check it out.

Choose how frequently you wish to broadcast:

Keep a considerable time gap between the days you choose to upload a vodcast. For ease of making, you could create two at a time, depending if you’re able to work up both the script and video together, however, make sure to shoot them only one at a time. Doing too many at once will come forth as being too promotional.

Work on great content:

Although visuals surpass audio content in most scenarios and even for a vodcast the same can be considered, it is definitely important to consider your content with graphics. In this scenario, one can understand the vodcast software they plan to use and how it can merge your content and video in the best possible manner to ensure both shine in their own ways and produce a splendid outcome.

University of Mumbai BMS Notes

Promoting Web Traffic

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Harness the power of social media

Social media isn’t just a way for your friends from high school to show off pictures of their children or snap photos of what they ate for lunch. It’s also an effective way to promote a website, as it helps businesses reach a diverse audience and build brand awareness.

Whether it’s on Facebook, Twitter or Instagram, social media marketing is important for engaging followers. Importantly, posting compelling content increases the chances that your audience will share it which is free promotion for your website. And the more people click on your content, the more chances you’ll have of getting website traffic and improving your conversion rate.

Submit your site to online directories

In addition to optimizing your SEO to help people discover your website, you’ll want to submit your site to online directories. Online directories make it easy for people to find your URL and navigate to your site. Depending on your industry, there may be a directory for your specific business type.

Try guest blogging

Expand your website promotion even further by collaborating with a guest blogger. When another writer in your industry writes a post on your own blog, you expand your reach to their audience and gain quality leads. In addition, connecting with writers who are already established in their field helps you grow your own network. This can bring you more exposure, traffic and social media shares.

Solidify your website SEO

SEO, or search engine optimization, is one of the most effective ways to promote a website, as it helps improve a site’s ranking on Google and other search engines. Unlike paid search ads, SEO is totally free the competition is open to everyone, based on the quality of the content you publish, the fluidity of the navigation you offer to your visitors, and the number of links you receive from external sources.

You can achieve strong SEO by placing certain keywords and phrases throughout your website, adding alt text to your images and optimizing your headings so that your website can get found on search engines.

Take advantage of email marketing

There’s a reason you always see email marketing placed high up on articles that talk about how to drive traffic to your website. Why? Because it’s proven to be effective over and over. In fact, its average rate of return can be as high as 4400%, or $44 for every dollar spent.

Start a blog

When considering how to promote your website, a good practice is to create a blog to bolster your SEO and increase your site’s rank on search engines. Blogging makes it easier for people to find your site and discover your business. On top of that, it helps you establish yourself as an authority in your field and can dramatically improve your conversion rate.

University of Mumbai BMS Notes

Legal Issues in E-commerce in India

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Electronic commerce or e-commerce legal issues industry in India has come a long way since its early days and has been growing rapidly across the world. The industry has matured and has seen the entry of many new players in the market. India is considered as a profitable market for these e-commerce businesses.

Competition

E-commerce legal issues have seen a generation of new players and the merging and acquisition between several old players. This has enabled development of new services, distribution channels and far greater efficiency in business activities than ever before. This development has the possibility of leading to certain competition issues with respect to the development of strategies for growing the network and maintaining their market power.

Data Protection

Security of the information provided during an online transaction is a major concern.

The Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011 and the Section 43A of the IT Act together provide a structure and guidelines for the protection of data in India.

It is required of the Company to take all reasonable precautions to prevent any corruption, damage, loss or destruction of the private information and/ or data, even upon the termination of the contract between the parties.

The contracts often have specific clauses to deal with such privacy concerns and they bind all employees, agents, and subcontractors.

Security of the information provided during the online transaction is a major concern. Under section 43A of the IT Act the “Reasonable practices and procedures and sensitive personal data or information Rules, 2011” have been proposed, which provide a framework for the protection of data in India. Data can be personal, which has been defined as “any information that relates to a natural person, which, either directly or indirectly, in combination with other information available or likely to be available with a body corporate, is capable of identifying such person.” The date can also be sensitive and a sensitive personal data consists of password, financial information, physical, physiological and mental health condition, sexual orientation, medical records and history and biometric information. The entity collecting data should have a privacy policy in place, should always obtain consent from the provider of sensitive information and maintain reasonable security practices and procedures. Unauthorized access to personal information and any misuse of such personal information should be checked by the online goods/service providers.

E-Contracts

Electronic contracts are governed by the basic principles provided in the Indian Contract Act, 1872 (“ICA”), which mandates that a valid contract should have been entered with a free consent and for a lawful consideration between two adults. Section 10A of the Information Technology Act, 2000 (“IT Act”) provides validity to e-contracts. So, both ICA and IT Act needs to be read in conjunction to understand and provide legal validity to e-contracts. Further, section 3 of the Evidence Act provides that the evidence may be in electronic form.

Both the Indian Contract Act and the IT Act must be read in conjunction to understand the legal validity of e-contracts. Thus, e-contracts are governed by the basic principles of a valid contract that mandates that the contract must be entered in with free consent and a lawful consideration between two competent parties.

Also, Section 10A of the Information Technology Act, 2000 (“IT Act”) provides the validity of the e-contracts.

On e-commerce websites that operate in an online environment, the possibility of minors entering into contracts is very high. Hence, it is crucial for an online business portal consider such possibility and provides a form on the website stating that the individual with whom it is trading or entering into the e-contract has attained the age of majority.

Intellectual Property Rights

E-commerce websites are designed and sometimes operated by other parties specializing in the field. Often the content is also managed by a third party. Thus, unless the agreement between the parties specifically provides the IP rights, there is a possibility of infringement subject to the trademark, copyright or patent on an online platform.

Some others Concern:

  • Ensure proper online contracts
  • Original documentation in relation to taxation
  • Record retention obligations
  • Exchange control regulation
  • Import-export regulations
  • Foreign data protection law
  • Terms and conditions must be specific depending upon the nature of the goods & services offered and not generic.
  • Reasonable efforts to prevent the unauthorized transaction.
University of Mumbai BMS Notes

E-Commerce Laws: Need for E-Commerce laws

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Applicable Laws & Regulations

Regulatory Technology & Data Protection
1.     Foreign Direct Investment Policy

2.     Further, the Foreign Exchange Management Act, 1999  Companies Act, 2013

3.     Payment and Settlement Act, 2007 and other RBI regulations on payment mechanisms

4.     Labelling and Packaging

5.     Legal Metrology Act, 2009 read with Legal Metrology (Packaged Commodity) Rules, 2011

6.     Sales, Shipping, Refunds and Returns

7.     Moreover, Regulations prescribed by the relevant ministry/state regulations

 1.     Information Technology Act, 2000 

2.     Additionally, Information Technology (Intermediaries Guidelines) Rules, 2011 

3.     Information Technology Act, 2000 (IT Act) and General Data Protection Regulations (GDPR).

4.     Consumer Protection Act, 1986
Tax Legal
1.     Income Tax Act, 1961

2.     Double Taxation Avoidance Agreement

3.     Good and Services Tax

 1.     Indian Contract Act, 1872

2.     Indian Copyright Act, 1957

3.     The Patents Act, 1970

4.     Intellectual Property Issues

5.     Labour laws

Other Conditions include:

  • Marketplace e-commerce entities will be permitted to enter into transactions with sellers registered on its platform on a B2B basis.
  • E-commerce marketplace may provide support services to sellers in respect of warehousing, logistics, order fulfilment, call centre, payment collection, and other services.
  • Digital & electronic networks will include a network of computers, television channels, and any other internet application used in an automated manner such as web pages, extranets, mobiles, etc.
  • An e-commerce entity will not permit more than 25% of the sales affected through its marketplace from one vendor or their group companies.
  • In the marketplace model goods/services made available for sale electronically on the website should provide the name, address, and other contact details of the seller. Post-sales, delivery of goods to the customers, and customer satisfaction will be the responsibility of the seller.
  • E-commerce entities providing a marketplace will not exercise ownership over the inventory i.e. goods purported to be sold. Such an ownership over the inventory will render the business into an inventory-based model.
  • In the marketplace model, payments for sale may be facilitated by the e-commerce entity in conformity with the guidelines of the Reserve Bank of India.
  • Similarly, In the marketplace model, any warranty/ guarantee of goods and services sold will be the responsibility of the seller.
  • E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain a level playing field.
  • Further, guidelines on cash and carry wholesale trading as given in para 6.2.16.1.2 of the FDI Policy will apply to B2B e-commerce.
Type of Entity Permitted Activities Can Keep Inventory? Permitted FDI/Route
E-commerce entity Marketplace Model (for goods and services:

B2C e-commerce)

 No 100% Automatic
Manufacturer B2B and B2C e-commerce

(Selling its products manufactured in India, through wholesale and/or retail through e-commerce)

 Yes 100% Automatic
Cash & Carry Wholesale Trader B2B e-commerce

(sells goods to retailers, industrial, commercial, institutional or other professional business users or to other wholesalers and related subordinated service providers)

 Yes 100% Automatic
Single Brand Retail Trader B2C e-commerce (at least 30% Indian sourcing of products, and must be operating through at least one brick and mortar store) Yes 100% Automatic
Food Product Retail Trader B2C e-commerce (retail trading of food products manufactured and/or produced in India) Yes 100% Government Approval
Services (Subject to respective conditions and applicable laws) sale of services through e-commerce (Relevant Sectoral Cap) Automatic

Note: Many laws applicable in e-commerce and it is in developing stage., Pl Update here in comment section about any latest changes.

Need for E-Commerce laws

University of Mumbai BMS Notes

E-Trading

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Online trading is the act of purchasing and selling financial products on the Internet. The trader buys and sells using an online trading platform. Online trading may include trading in bonds, stocks (shares), futures, international currencies, and other financial instruments.

Online trading is simply buying and selling assets through a brokerage’s internet-based proprietary trading platforms. The use of online trading increased dramatically in the mid- to late-’90s with the introduction of affordable high-speed computers and internet connections.  Stocks, bonds, mutual funds, ETFs, options, futures, and currencies can all be traded online. Also known as e-trading or self-directed investing.

Most people trade online through an online broker. An online broker is a brokerage firm that offers its services on the Internet. Unlike traditional brokers, the investor does not meet the broker face-to-face or via the telephone. Everything happens on the web.

The online trader has much more control over trades than the traditional trader. They can execute trades considerably faster than they ever could face-to-face or over the telephone.

Apart from being able to manage multiple positions simultaneously, the online trader has access to extensive data. Online brokers and other websites provide comprehensive information on companies, exchanges, and markets.

The Advantages of Online Trading are:

  • Chances of Error is less
  • It’s Simple
  • It is Less Expensive
  • Quick & less time consuming.
  • Complete Control
  • Access Reports.
  • Monitor Investment All time
University of Mumbai BMS Notes

Brick and Mortar

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The term “brick-and-mortar” refers to a traditional street-side business that offers products and services to its customers face-to-face in an office or store that the business owns or rents. The local grocery store and the corner bank are examples of brick-and-mortar companies. Brick-and-mortar businesses have found it difficult to compete with mostly web-based businesses like Amazon.com Inc. (AMZN) because the latter usually have lower operating costs and greater flexibility.

Brick and mortar (also bricks and mortar or B&M) refers to a physical presence of an organization or business in a building or other structure. The term brick-and-mortar business is often used to refer to a company that possesses or leases retail shops, factory production facilities, or warehouses for its operations. More specifically, in the jargon of e-commerce businesses in the 2000s, brick-and-mortar businesses are companies that have a physical presence (e.g., a retail shop in a building) and offer face-to-face customer experiences.

This term is usually used to contrast with a transitory business or an Internet-only presence, such as fully online shops, which have no physical presence for shoppers to visit, talk with staff in person, touch and handle products and buy from the firm in person. However, such online businesses normally have non-public physical facilities from which they either run business operations (e.g., the company headquarters and back office facilities), and/or warehouses for storing and distributing products. Concerns such as foot traffic, storefront visibility, and appealing interior design apply to brick-and-mortar businesses rather than online ones. An online-only business needs to have an attractive, well-designed website, a reliable e-commerce system for payment, a good delivery or shipping service and effective online marketing tactics to drive web traffic to the site. Governments are also adopting e-government approaches, which is the use of online services for citizens to enable them to fill in government forms, pay tax bills and register for government programs online; these services aim to cut bricks and mortar costs (building leasing/purchase and staff costs) and improve services to citizens (by offering 24/7 access to information and services).

Benefits

The presence of brick and mortar establishments may bring many benefits to businesses;

  • Customer service: face-to-face customer service can be a big contributor into increasing sales of a business and improving customer satisfaction. When customers can take a product back to the store to ask staff questions or help them learn to use it, it can make customers feel more satisfied with their purchase. Research has shown that 86% of customers will pay more for a product if they have received great customer service.
  • Face-to-face interaction: Many consumers prefer to be able to touch products, and experience and test them out before they buy. This is often attributed to Baby Boomers, older Generation X customers and the elderly being used to a more traditional in-person approach when it comes to shopping and preferring to have a demonstration of products or services, especially when buying new technology. Other studies show, given equal prices, a 90% preference for the in-person shopping experience, including among teens, who combine social interaction with shopping. On the other hand, many of these consumers engage in showrooming: trying on clothes or otherwise examining merchandise in-store, and then buying online at cheaper prices.
  • Trust: Online commerce presents an increased risk of internet fraud, and thus some consumers may be averse to it.

Attracting More Attention to Physical Stores

Online retailers often find an easier time attracting customers because it takes less effort and time to draw them in. Online sales continue to grow over the years because customers can shop from the convenience of their homes, 24 hours a day.

Brick and mortar stores must employ more tricks in order to entice customers to leave their homes and come and shop in a physical store. The reality is that technology and the internet are also vital to the success of brick and mortar stores in today’s world. Stores that offer the latest in technology-based payment systems, ordering options, and websites are usually the ones that bring in the most business. Consumers are constantly looking for easier and faster ways to shop and purchase the things they want and need.

Brick and mortar stores, while not as necessary as they once were, are still thriving. While online retail stores seem to be taking over, many companies are embracing the changing times and now operate with both online and brick and mortar options.

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