Project Report
Project Report
Date:
Supervisor Signature
ACKNOWLEDGEMENT
I offer my sincere thanks and humble regards to Chanderprabhu Jain College of Higher
Studies & School of Law, GGSIP University, New Delhi for imparting us very
valuable professional training in B.com(H).
I pay my gratitude and sincere regards to Ms. Shalu Chauhan , my project Guide for giving
me the cream of her knowledge.
I am thankful to her as she has been a constant source of advice, motivation and
inspiration.
I am also thankful to her for giving her suggestions and encouragement throughout the
project work.
I take the opportunity to express my gratitude and thanks to our computer Lab staff
and library staff for providing me an opportunity to utilize their resources for the
completion of the project.
Student’s Signature
CONTENTS
Declaration (I)
Certificate (II)
Acknowledgement (III)
Chapter -1 Introduction
Chapter-6 Conclusion
References / Bibliography
CHAPTER - 1
INTRODUCTION
1.1 About the Industry (E-Commerce)
Electronic commerce refers to the buying and selling of products or services over electronic
systems such as the Internet and other computer networks. The Shopping Cart is a very important
feature used in e-commerce to assist people making purchases products online. It also includes
the entire online process of developing, marketing, selling, delivering, servicing and paying for
products and services. In order to purchase a shopping cart is provided to the user. The amount of
trade conducted electronically has grown extraordinarily with widespread Internet usage. The use
of commerce is conducted in this way, spurring and drawing on innovations in electronic funds
transfer, supply chain management, Internet marketing, online transaction processing, electronic
data interchange (EDI), inventory management systems, and automated data collection systems.
The eCommerce site will let customers view and order products online from any part of the
world.
The main advantage of e-commerce over traditional commerce is the user can browse online
shops, compare prices and order merchandise sitting at home on their PC. Secure registration and
profile management facilities for Customers. Shopping Cart feature allows online shopping
customers to “place” items in the cart. It Decreases the cost of creating, processing, distributing,
storing and retrieving paper-based information. Expands the marketplace to national and
international markets. Upon “checkout” the software calculates the total for the order including
shipping and handling postage, packing and taxes, if applicable. Reduces the time between the
outlay of capital and the receipt of products and services. Customers should be able to mail the
Shop about the items they would like to see in the Shop
The proposed system helps in building a website to buy, sell products or goods online using
internet connection. Enables consumers to shop or do other transactions 24 hours a day, all year
round from almost any location. It can be accessed over the Internet.
Purchasing goods online, users can choose different products based on categories , online
payments , delivery services and hence covering the disadvantages of the existing system and
making the buying easier and helping the vendors to reach a wider market. It Provides consumers
with more choices. Customers can purchase Products Online.
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Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer,
supply chain management, Internet marketing, online transaction processing, Electronic Data
Interchange (EDI), inventory management systems, and automated data collection systems.
● E- Commerce is about the sale and purchase of goods or services by electronic means,
particularly over the internet. In a pure e-commerce system, transactions take place via
electronic means. In this case, you will access a cyber bookstore and download a digital
book from a server computer.
● In a physical or traditional commerce system, transactions take place via contact between
humans usually in a physical outlet such as a bookstore. For e.g., if you want to buy a
book, you will go to a physical bookstore and buy the physical book from a salesman.
● E-Commerce is more suitable for standard goods, intangible goods; whereas traditional
commerce is more suitable for nonstandard goods, perishable goods, and expensive
goods.
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1.12 History of E-Commerce
● The history of Ecommerce seems rather short but its journey started over 40 years ago in
hushed science labs
● In the 1960s, very early on in the history of Ecommerce, its purpose was to exchange
long distance electronic data. In the early days of Ecommerce, users consisted of only
very large companies, such as banks and military departments, who used it for command
control communication purposes. This was called EDI, and was used for electronic data
interchange.
● Originally, electronic commerce was identified as the facilitation of commercial
transactions electronically, using technology such as Electronic Data Interchange (EDI)
and Electronic Funds Transfer (EFT). These were both introduced in the late 1970s,
allowing businesses to send commercial documents like purchase orders or invoices
electronically.
● The growth and acceptance of credit cards, automated teller machines (ATM) and
telephone banking in the 1980s were also forms of electronic commerce
● In 1982 Transmission Control Protocol and Internet Protocol known as TCP & IP was
developed. This was the first system to send information in small packets along different
routes using packet switching technology, like today's Internet! As opposed to sending
the information streaming down one route
● Beginning in the 1990s, electronic commerce would include enterprise resource planning
systems (ERP), data mining and data warehousing
● In 1995, with the introduction of online payment methods, two companies that we all
know of today took their first steps into the world of Ecommerce. Today Amazon and
eBay are both amongst the most successful companies on the Internet
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1.13 E-Business
Business transactions that involve the exchange of money are covered by the term e-commerce.
E-business includes all aspects of running a business that sells goods and services, including
marketing, earning and retaining customers, procurement, developing business partners and
customer education. In order to be successful, e-commerce and e-businesses must have quality
storefronts that are simple to navigate and peruse, with accurate and thorough catalogue
information. E-business became an extension of e-commerce to encompass all aspects of
businesses that function online. E-business involves e-commerce, but e-Commerce does not
cover all aspects of e-business.
● In both cases, E stands for “Electronic networks “ and describes the applications of
Electronic network technology – including internet and electronic data interchange (EDI)
– to improve and change business processes .
● E-commerce covers outward - facing processes that touch customers, suppliers and
external partners, including sales, marketing, order taking, delivery, customer service,
purchasing of raw materials.
● E-business includes E-commerce but also covers internal processes such as production,
inventory management, products development, finance, human resources, E-business
strategy is more complex, productivity and cost savings:-eBay, Amazon.
Broadly speaking, electronic commerce emphasizes the generation and exploitation of new
business opportunities and to use popular phrases: “generate business value” or “do more with
less”.
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Electronic Commerce is enabling the customer to have an increasing say in what products are
made, how products are made and how services are delivered (movement from a slow order
fulfillment process with little understanding of what is taking place inside the firm, to a faster
and rt1ore open process with customers having greater control.
Electronic Commerce endeavors to improve the execution of business transactions over various
networks.
4. Effective Performance
It leads to more effective performance i.e., better quality, greater customer satisfaction and better
corporate decision making.
We may achieve greater economic efficiency (lower cost) and more rapid exchange (high speed,
accelerated, or real-time interaction) with the help of electronic commerce.
6. Execution of Information
It enables the execution of information-laden transactions between two or more parties using
inter connected networks. These networks can be a combination of ‘plain old telephone system’
(POTS), Cable TV, leased lines and wireless. Information based transactions are creating new
ways of doing business and even new types of business.
7. Incorporating Transaction
8. Increasing of Revenue
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Firms use technology to either lower operating costs or increase revenue. Electronic Commerce
has the Potential to increase revenue by creating new markets for old products, creating new
information-based products, and establishing new service delivery channels to better serve and
interact with customers. The transaction management aspect of electronic commerce can also
enable firms to reduce operating costs by enabling better coordination in the sales, production
and distribution processes and to consolidate operations and reduce overhead.
9. Reduction of Friction
Electronic Commerce research and its associated implementations is to reduce the “friction” in
online transactions; frictions are often described in economics as transaction cost. It can arise
from inefficient market structures and inefficient combinations of the technological activities
required to make a transaction. Ultimately, the reduction of friction in online commerce will
enable smoother transition between buyers, intermediaries and sellers.
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1.16 Electronic Markets:-
An electronic market is the use of information and communication technology to present a range
of offerings available in a market segment so that the purchaser can compare the prices of the
offerings and make a purchase decision e.g., Airline Booking System
● It provides a standardized system for coding trade transactions so that they can be
communicated from one computer to another without the need for printed orders and
invoices & delays & errors in paper handling.
● It is used by organizations that make a large no. of regular transactions e.g., EDI is used
in the large supermarket chains for transactions with their suppliers.
• Internet Commerce:-
● Information and communications technologies can be used to advertise & make sales of a
wide range of goods & services.
● This application is both for business to business & business to consumer transactions e.g.,
The purchase of goods that are then delivered by post or the booking of tickets that can
be picked up by the clients
1.17 Features :-
● Non-Cash Payment : E-Commerce enables the use of credit cards, debit cards,
smartcards, electronic fund transfer via the bank's website, and other modes of electronic
payment.
● 24x7 Service availability : E-commerce automates the business of enterprises and the
way they provide services to their customers. It is available anytime, anywhere.
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● Advertising/Marketing : E-commerce increases the reach of advertising of products and
services of businesses. It helps in better marketing management of products/services.
● Improved Sales : Using e-commerce, orders for the products can be generated anytime,
anywhere without any human intervention. It gives a big boost to existing sales volumes.
● Support : E-commerce provides various ways to provide pre-sales and post-sales
assistance to provide better services to customers.
● Inventory Management : E-commerce automates inventory management. Reports get
generated instantly when required. Product inventory management becomes very efficient
and easy to maintain.
● Communication improvement : E-commerce provides ways for faster, efficient, reliable
communication with customers and partners.
● Marketing:- One of the areas it impacts particularly is direct marketing. In the past this
was mainly door-to-door, home parties (like the Tupperware parties) and mail orders
using catalogues or leaflets. This moved to telemarketing and TV selling with the
advance in television technology and finally developed into e-marketing.
● Human Resource Management:- Issues of on-line recruiting, home working and
‘entrepreneurs’ working on a project-by-project basis replacing permanent employees.
● Business law and ethics:- The different legal and ethical issues that have arisen as a result
of a global ‘virtual’ market. Issues such as copyright laws, privacy of customer
information etc.
● Management Information System:- Analysis, design and implementation of e-business
systems within an organization ; issues of integration of front-end and back-end systems.
● Product Operations and Management:- The impact of on-line processing has led to
reduced cycle time. It takes seconds to deliver digitized products and services
electronically; similarly, the time for processing orders can be reduced by more than 90
percent from days to minutes.
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● Finance and Accounting:- On-line banking ; issues of transaction costs ; accounting and
auditing implications where ‘intangible’ assets and human capital must be tangibly
valued in an increasing knowledge-based economy.
● Economy:- The impact of E-commerce on local and global economies; understanding the
concepts of a digital and knowledge-based economy and how this fit into economic
theory.
ADVANTAGES :-
The advantages of e-commerce can be broadly classified into three major categories:
● Advantages to Organizations
● Advantages to Consumers
● Advantages to Society
Advantages to Organizations
● Using e-commerce, organizations can expand their market to national and international
markets with minimum capital investment. An organization can easily locate more
customers, best suppliers, and suitable business partners across the globe.
● E-commerce helps organizations to reduce the cost to create, process, distribute, retrieve
and manage the paper-based information by digitizing the information.
● E-commerce improves the brand image of the company.
● E-commerce helps organizations to provide better customer service.
● E-commerce helps to simplify the business processes and makes them faster and efficient.
● E-commerce reduces the paperwork.
● E-commerce increases the productivity of organizations. It supports "pull" type supply
management. In "pull" type supply management, a business process starts when a request
comes from a customer and it uses just-in-time manufacturing.
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Advantages to Customers
● It provides 24x7 support. Customers can enquire about a product or service and place
orders anytime, anywhere from any location.
● E-commerce applications provide users with more options and quicker delivery of
products.
● E-commerce applications provide users with more options to compare and select the
cheaper and better options.
● A customer can put review comments about a product and can see what others are
buying, or see the review comments of other customers before making a final purchase.
● E-commerce provides options for virtual auctions.
● It provides readily available information. A customer can see the relevant detailed
information within seconds, rather than waiting for days or weeks.
● E-Commerce increases the competition among organizations and as a result,
organizations provide substantial discounts to customers.
Advantages to Society
● Customers need not travel to shop a product, thus less traffic on road and low air
pollution.
● E-commerce helps in reducing the cost of products, so less affluent people can also afford
the products.
● E-commerce has enabled rural areas to access services and products, which are otherwise
not available to them.
● E-commerce helps the government to deliver public services such as healthcare,
education, social services at a reduced cost and in an improved manner.
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DISADVANTAGES :-
The disadvantages of e-commerce can be broadly classified into two major categories:
● Technical disadvantages
● Non-technical disadvantages
Technical Disadvantages
Non-Technical Disadvantages
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● Internet access is still not cheaper and is inconvenient to use for many potential
customers, for example, those living in remote villages.
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● Mobile ticketing
● Mobile Vouchers, Coupons and
● Mobile contract purchase and delivery mainly consumes the sale of ring tones,
wallpapers and games of mobile phones.
5. E-LEARNING: E-Learning comprises all forms of electronically supported learning and
teaching-Learning specially the computer and network skills and knowledge-Learning
applications include web-based learning, computer-based learning. Content is delivered
via. The internet, intranet, audio, or video tape, satellite TV, and
ED-ROM.Computer-Based Learning, refers to the use of computers as a key component
of the education environment.
6. ONLINE SHOPPING:- Online shopping is the process whereby consumers directly buy
goods or services from a store in real time, without intermediary services over the
internet . Online shoppers commonly use credit card to make payments, however some
systems enable users to create accounts and pay by alternative means ,such as
● Billing to mobile phones and landline.
● Cheque.
● Postal money order.
7. SEARCH ENGINE:- A web search engine is designed to search for information on the
WWW and FTP servers. The search results are generally presented in a list of results and
are often called hits. The information may consist of web pages, images, information, and
other types of files.
8. ONLINE TRADING:- An online trading community provides participants with a
structured method for trading bantering (exchanging goods with goods) or selling goods
and services. These communities often have forums and chat rooms, designed to facilitate
communication between the members.
9. ENTERTAINMENT:- The conventional media that have been used for entertainment are
● Books/magazines.
● Radio.
● Television/films.
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● Video games
REVENUE MODEL
In business, revenue typically consists of the total amount of money received by the company for
goods sold or services provided during a certain time period. Therefore, revenue models are a
part of the business model. Many online companies generate revenues from multiple income
streams such as advertising, subscription, affiliate marketing etc. Online models not only sell
goods or services but also contacts (e.g., banner) and information (e.g., user-data).
Typically, fees are generated from advertisers in exchange for advertisements, which is
ultimately the classic principal among the revenue models besides sales. Even if representatives
of major media companies complain about earning less money with online advertising than with
advertising in print or TV, the figures indicate steadily rising revenues.
The advertising revenue model is based on contacts making it one of the indirect sources of
revenue. The conventional version is display-marketing - for example wallpaper, super banner,
rectangle, skyscraper- which is paid according to traffic (invoice per CPC/cost-per-click or
CPX/cost-per-action). Examples –
Users are charged a periodic (daily, monthly or annual) fee to subscribe to a service. Many sites
combine free content with premium membership, i.e., subscriber- or member-only content.
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Subscription fees do not depend on transactions. Subscribers use the content as long and often as
they want. Examples :-
● Publishers and content services, e.g., newspapers, magazines, tv channels - they provide
text, audio or video content to users who subscribe for a fee to get access to the service or
to download the new issue: New York Times, Spiegel Online, Zattoo, Netflix.
● Networks offer premium memberships to find business partners or former classmates,
subscribers can use all services, i.e., they get any information about their account via
short notifications or newsletter, receive and send emails, get job offers: Xing, LinkedIn,
Stayfriends.
● Internet service providers offer the connectivity (e.g., via broadband) and services around
(security software for download, e-mail-services): T-Online, AOL
A company receives commissions based on volume for enabling or executing transactions. The
revenue is generated through transaction fees by the customer paying a fee for a transaction to
the operator of a platform. The company is a marketplace operator providing the customer with a
platform to place his transactions.
During this process the customer may be presented as a buyer as well as a seller. To actively
participate in this emarket, customers must register, so both parties of a transaction taking place
are identified. From a business perspective, the offer is determined by others as customers offer
their goods online and are acting as sellers. The amount of the transaction fee can be both – fixed
and percentage calculated. Examples –
● eBay
● Amazon
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Wholesalers and retailers of goods and services sell their products online. The main benefits for
the customer are the convenience, time savings, fast information etc. The prices are often more
competitive. In terms of online sales there are different models such as marketplaces as common
entry points for various products from multiple vendors. Examples -
● the shops of single companies, sometimes based on web-catalogs (combines mail, online
and telephone ordering): Otto
● e-tailers operating solely over the web: Amazon
● marketplaces: Buy.com, Etsy
● live shopping: iBood, guut.de, woot!
● shopping clubs: brands4friends, vente-privee.com
The affiliate program is an online distribution solution which is based on the principle of
commission. Merchants advertise and sell their products and services through links to
partner-websites. It is a pay-for-performance model: Commissions are only paid for actual
revenue or measurable success.
An affiliate-link includes a code, which identifies the affiliate. That’s how clicks, leads or sales
are tracked. The affiliate therefore acts as the interface between merchants and customers. This
model leads to a win-win situation: the merchants sell their products or services and the affiliates
get their commissions. Variations include banner exchange, pay-per-click and revenue sharing
programs. The affiliate model is well-suited for the web and therefore very popular. Examples -
Types of E-Commerce
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● Business to Consumer (B2C)
● Consumer to Business (C2B)
● Consumer to Consumer (C2C)
● Business to Government (B2G)
By processing payments electronically, companies are able to lower the number of clerical errors
and increase the speed of processing invoices, which result in lowered transaction fees. In
general, B2Bs require higher security needs than B2Cs.
With the help of B2B E-commerce, companies are able to improve the efficiency of several
common business functions, including supplier management, inventory management and
payment management.
Business to Customer (B2C):- Business to Customer or B2C refers to E-Commerce activities that
are focused on consumers rather than on businesses.
For instance, a book retailer would be a B2C company such as Amazon.com. Other examples
could also be purchasing services from an insurance company, conducting on-line banking and
employing travel services.
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In this type of E-Commerce, consumers get a choice of a wide variety of commodities and
services, along with the opportunity to specify the range of prices they can afford or are willing
to pay for a particular item, service or commodity.
Customers are also a part of the business and C2C enables customers to directly deal with each
other. An example of this is peer auction giant eBay.
Any citizen may interact with these websites to know the various details. This helps the people to
know the facts without going to the respective departments.
This also saves time for the employees as well as the citizens.
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translated by software programs into standard EDI format for transmission to one or more
trading partners. The trading partners’ computers, in turn, translate the information using
software programs into a form they can understand.
Barcodes - Barcodes are used for automatic product identification by a computer. They are a
rectangular pattern of lines of varying widths and spaces. Specific characters (e.g., numbers 0-9)
are assigned unique patterns, thus creating a “font” which computer can recognize based on light
reflected from a laser.
The most obvious example of bar codes is on consumer products such as packaged foods. These
codes allow the products to be scanned at the checkout counter. As the product is identified the
price is entered in the cash register, while internal systems such as inventory and accounting are
automatically updated.
Electronic Mail - Messages composed by an individual and sent in digital form to other
recipients via the Internet.
Internet - The Internet is a global network of millions of diverse computers and computer
networks. These networks can all "talk" to each other because they have agreed to use a common
communications protocol called TCP/IP. The Internet is a tool for communications between
people and businesses. The network is growing very, very fast and as more and more people are
gaining access to the Internet, it is becoming more and more useful.
World Wide Web - The World Wide Web is a collection of documents written and encoded with
the Hypertext Markup Language (HTML). With the aid of a relatively small piece of software
(called a "browser"), a user can ask for these documents and display them on the user’s local
computer, although the document can be on a computer on a totally different network elsewhere
in the world.
HTML documents can contain many different kinds of information such as text, pictures, video,
sound, and pointers, which take users immediately to other web pages.
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It is this ability to jump from site to site that gave rise to the term "World Wide Web." Browsing
the Web (or "surfing the Net") can be a fascinating activity, especially to people new to the
Internet. The World Wide Web is by far the most heavily used application on the Internet.
Product Data Exchange - Product data refers to any data that is needed to describe a product.
Sometimes that data is in graphical form, as in the case of pictures, drawings and CAD files. In
other cases, the data may be character based (numbers and letters), as in the case of
specifications, bills of material, manufacturing instructions, engineering change notices and test
results. Product data exchange differs from other types of business communications in two
important ways.
First, because graphics are involved users must contend with large computer files and with
problems of compatibility between software applications. (The difficulty of exchanging CAD
files from one system to another is legendary).
Second, version control very quickly gets very complicated. Product designs, even late in the
development cycle, are subject to a great deal of change, and because manufacturing processes
are involved, even small product changes can have major consequences for getting a product into
production.
Electronic Forms - Electronic form is a technology that combines the familiarity of paper forms
with the power of storing information in digital form. Imagine an ordinary paper form, a piece of
paper with lines, boxes, check-off lists, and places for signatures. To the user an electronic form
is simply a digital analogue of such a paper form, an image, which looks like a form but which
appears on a computer screen and is filled out via mouse, and keyboard.
Behind the screen, however, lie numerous functions that paper and pencil cannot provide. Those
extra functions come about because the data from electronic forms are captured in digital form,
thus allowing storage in databases, automatic information routing, and integration into other
applications.
Framework of E-Commerce
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● This framework, first developed by Kalakoda and Winston, Professors of Information
Systems and prolific authors on the subject, takes a holistic view and identifies the
different components of business and technology that make up e-commerce. Using the
analogy of the architecture of a building illustrated in Fig., they explain how the different
components fit and interact together, emphasizing the relative importance of each
component.
● Kalakoda and Winston use the analogy of a traditional transportation company to
describe the complexity of the network and how the different components that make up
the technology infrastructure are interlinked.
● The network infrastructure is like the network of roads that are interconnected and are of
different widths, lengths and quality – for example, the Internet, local area networks,
intranets. Network infrastructures also take different forms such as telephone wires,
cables, wireless technology (such as satellite or cellular technology).
● The publishing infrastructure (including the WWW, Web servers) can be seen as the
infrastructure of vehicles and warehouses, which store and transport electronic data and
multimedia content along the network. Multimedia content is created using tools such as
HTML and JAVA. This content can be very different with varying degrees of complexity
similar to different vehicles travelling on the roads. For example, text only, or more
complex is an application, such as a computer game, containing audio, video, graphics
and a programme.
● Messaging and information distribution infrastructure are the engines and fuel, which
transport the data around the network. Once the multimedia content is created, there has
to be a means of sending and retrieving this information, for example by EDI, e-mail,
Hypertext Transfer Protocol.
● Once content and data can be created, displayed and transmitted, supporting business
services are necessary for facilitating the buying, selling and other transactions safely and
reliably. For example, smart cards, authentication, electronic payment,
directories/catalogues.
● Public policy, regulations and laws that govern issues such as universal access, privacy,
electronic contracts and the terms and conditions that govern e-commerce.
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● Universal agreement of technical standards dictates the format in which electronic data is
transferred over networks and is received across user interfaces, and the format in which
it is stored. This is necessary so that data can travel seamlessly across different networks,
where information and data can be accessed by a whole range of hardware and software
such as computers, palmtops, and different kinds of browsers and document readers.
● The interaction of people and organizations to manage and coordinate the applications,
infrastructures and businesses are all necessary to make e-commerce work.
● All these elements interact together to produce the most visible manifestation of
e-commerce. These applications include on-line banking and financial trading;
recruitment; procurement and purchasing; marketing and advertising; auctions; shopping
are just a few examples.
● This is a particularly useful framework for managers to understand the importance of
technology and business, both within the organization and external to it, in the planning
and development of any e-commerce or e-business solution.
E-commerce in India
E-commerce has transformed the way business is done in India. The Indian E-commerce market
is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much of the
growth for the industry has been triggered by an increase in internet and smartphone penetration.
As of August 2020, the number of internet connections in India significantly increased to ~760
million, driven by the ‘Digital India’ programme. Out of the total internet connections, ~61%
connections were in urban areas, of which 97% connections were wireless.
India has an Internet user base of about 504 million as of May 2020, about 40% of the
population. This number is expected to be 627 million by the end of 2019. Despite being the
second-largest user base in world, only behind China (650 million, 48% of population), the
penetration of e-commerce is low compared to markets like the United States (266 million,
84%), or France (54 M, 81%), but is growing, adding around 6 million new entrants every
month. The industry consensus is that growth is at an inflection point.
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In India, cash on delivery is the most preferred payment method, accumulating 75% of the
e-retail activities. Demand for international consumer products (including long-tail items) is
growing faster than in-country supply from authorized distributors and e-commerce offerings.
Long tail business strategy allows companies to realize significant profits by selling low volumes
of hard-to-find items to many customers, instead of only selling large volumes of a reduced
number of popular items. The term was first coined in 2004 by Chris Anderson.
In 2017, the largest e-commerce companies in India were Flipkart, Snapdeal and Amazon. In
2018, Amazon beat Flipkart and was recorded the biggest ecommerce in India in terms of
revenue.
Market Size
Smartphone shipments in India increased by~8% y-o-y to reach 50.0 million units in the first
quarter of 2020, driven by positive shipments of all smartphone vendors in the market. Samsung
led the Indian smartphone market with 24% shipping share, followed by Xiaomi at 23%.
India's e-commerce market was worth about $3.9 billion in 2009. As per "India Goes Digital", a
report by Avendus Capital, the Indian e-commerce market is estimated at ₹28,500 Crore ($6.3
billion) for the year 2011. Online travel constitutes a sizable portion (87%) of this market today.
Online travel market in India had a growth rate of 22% over the next 4 years and reached
₹54,800 crore ($12.2 billion) in size by 2015. Indian e-tailing industry is estimated at ₹3,600
crore (US$800 million) in 2011 and estimated to grow to ₹53,000 crore ($11.8 billion) in 2015.
The market went up to $12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3
billion. About 79% of India's e-commerce market was travel related in 2013. According to
Google India, there were 35 million online shoppers in India in 2014 Q1 and was expected to
cross the 100 million mark by the end of 2016.
CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest
categories in terms of sales. Overall e-commerce market had reached ₹1,07,800 crores (US$24
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billion) by the year 2015 with both online travel and e-tailing contributing equally. Another big
segment in e-commerce is mobile/DTH recharge with nearly 1 million transactions daily by
operator websites. Year 2016 also saw online sales of luxury products like jewelry also increased.
Most of the retail brands have also started entering into the market and they expect at least 20%
sales online in the next 2–3 years. According to Google India Research in 2016, by 2021 India is
expected to generate $100 billion online retail revenue out of which $35 billion will be through
fashion e-commerce.
The ecommerce industry was reported at $24 billion in 2017 and was recognized as the fastest
growing industry in India. The ecommerce market grew to $38.5 billion in 2018. It is estimated
that one in every three Indian shops via smartphone and online retailers deliver to 20,000
pin-codes out of the 100,000 pin-codes in India. As per Goldman Sach, India's e-commerce
industry will reach $99 billion in size while online retail is expected to more than double to
around 11% by 2024 from 4.7% in 2019 while increasing at 27% compound annual growth rate
(CAGR). The online grocery segment that is below $2 billion will reach $29 billion in size by
2024. Online grocery orders will grow from 3,00,000 per day in 2019 to more than 5 million per
day by 2024. Non grocery eCommerce penetration will be 16.1 percent by 2021.
As per property consultant Colliers International, the demand for warehousing of 5,000 to 10,000
square feet size will increase due to COVID-19 lock-downs which lead to a surge in online
orders of essential items for same day delivery especially in tier-1 cities like Mumbai, Kolkata,
Bengaluru, Chennai and New Delhi. Flipkart will debut a hyperlocal service called Flipkart
Quick in Bengaluru to start 90 minutes deliveries. Amazon observed a spike in page views with
four times increase in “Add to Cart” during the lockdown, leading to doubling of sales. It also
started selling auto insurance in partnership with Acko General Insurance which is available to
users through Amazon app and mobile website. With the opening of 10 new warehouses, the
count of Amazon warehouses in India stands at 60 across 15 states that has an area equivalent to
more than 100 football fields.
Report from software as a service (SaaS) provider Unicommerce shows increasing penetration of
e-commerce beyond tier-1 cities with major growth coming from tier-2 and tier-3 towns/villages
due to increasing vernacular language content and improving last mile delivery. Consumers are
also diversifying their purchasing option from large scale e-commerce channels like Amazon or
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Flipkart to specific retail brand websites. As per Goldman Sachs, three or four players can
co-exist in the e-commerce space given the size of India but travel, food delivery, ride-hailing
services will see a maximum of two players capturing the market. Reliance Jio will increase
competition in grocery, fintech, online retail, food delivery. From February 2020 to June 2020
during the Covid19 lock-down period, e-commerce increased by 117% with the delivery of only
essential supplies that is now bigger than the pre-Covid19 level. Flipkart surpassed 1.5 billion
visits per month with 45% growth in monthly active users while 30% growth in transaction per
consumer. Tier-3 markets are showing 53% year on year growth with higher internet penetration
and connectivity. Kinetic Green started selling electric auto rickshaw and golf carts online
mainly in eastern and northern parts of India with a revenue of ₹75 crore in 2019 which now
stands at ₹100 crore as of August 2020. E-commerce helped Nestlé increase sales at a rate of
122% which contributes to 3.6% of overall sales during Q2 of 2020-21. Apple Inc. is opening an
online channel to sell products in India for the first time during August 2020 to target the festival
seasons.
Investments/ Developments
Some of the major developments in the Indian e-commerce sector are as follows:
● On October 23, 2020, Flipkart acquired a 7.8% stake in Aditya Birla Fashion and Retail,
a subsidiary of the Aditya Birla Group, for Rs. 1,500 crore (US$ 203.8 million).
● Flipkart partnered with PayTM for its annual Big Billion Days Sale event in October
2020, offering customers the convenience of making payments directly through the
latter's application with the bonus of receiving PayTM cashbacks over and above Flipkart
discounts.
● Infibeam Avenues signed a contract with Oman’s second-largest bank, the Bank of
Muscat, to process the bank’s online card transactions of various payment networks
through its digital payment solution—CCAvenue Payment Gateway Service in November
2020.
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● In November 2020, Amazon India announced collaboration with Hindustan Petroleum
Corporation Limited. Under this partnership, customers will be able to book and pay for
their LPG cylinders until the delivery.
● In November 2020, Reliance Retail Ventures Ltd. (RRVL), a subsidiary of Reliance
Industries (RIL), acquired a minority stake of Urban Ladder Home Decor Solutions Pvt.
Ltd. for Rs. 182.12 crore (US$ 24.67 million).
● In November 2020, Flipkart acquired Scapic, an Augmented Reality (AR) firm, to boost
user experience.
● In November 2020, Amazon India opened a 'Made in India' toy store, in line with the
government's ‘Atmanirbhar Bharat’ vision. The store will allow thousands of
manufacturers and vendors to sell toys driven by the Indian culture, folk tales and toys
that promote creative thinking and are locally crafted & manufactured.
● In October 2020, Amazon India collaborated with the Indian Railway Catering and
Tourism Corporation (IRCTC) to enable users to book and reserve train tickets on
Amazon.
● In October 2020, Flipkart acquired a 140-acre land at Rs. 432 crore (US$ 58.87 million)
to establish their largest fulfillment centre in Asia, in Manesar, Gurgaon, in a bid to scale
their fulfilment infrastructure to cater to increased demand post COVID-19.
● In October 2020, Amazon India invested over Rs. 700 crore (US$ 95.40 million) into its
payment unit, Amazon Pay.
Infrastructure
There are many hosting companies working in India, some of which offer SaaS for hosting web
stores. India has got its own version of Cyber Monday known as Great Online Shopping Festival
which started in December 2012, when Google India partnered with e-commerce companies
including Flipkart, HomeShop18, Snapdeal, Indiatimes shopping and Makemytrip. "Cyber
Monday" is a term coined in the US for the Monday coming after Black Friday, which is the
Friday after Thanksgiving Day. Most recent GOSF Great Online Shopping Festival was held
during Dec, 2018.In early June 2013, Amazon.com launched their Amazon India marketplace
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without any marketing campaigns. In July 2014, Amazon had said it will invest $2 billion (Rs
12,000 crore) in India to expand the business, after its largest Indian rival, Flipkart announced $1
billion in funding. In June 2016, Amazon agreed to invest another $3 billion to further pressure
rivals Flipkart & Snapdeal. Amazon has also entered the grocery segment with its Kirana now in
Bangalore and is also planning to enter in various other cities like Delhi, Mumbai and Chennai
and faces stiff competition with Indian startups. A large proportion of traffic towards
e-commerce sites is driven by coupon sites.
Funding
Examples of venture capital firms having invested in e-commerce companies in India are as
follows: Flipkart.com raised about USD 2.3 billion. On 10 July 2013, Flipkart announced it had
received $200 million from existing investors Tiger Global, Naspers, Accel Partners, and
ICONIQ Capital, and an additional $160 million from Dragoneer Investment Group, Morgan
Stanley Wealth Management, Sofina, Vulcan Inc. and more from Tiger Global.
In February 2014, online fashion retailer Myntra.com raised $50 million from a group of
investors led by Premji Invest, the investment company floated by Azim Premji, Chairman of
Wipro. May 2014 also witnessed an acquisition of Myntra by Flipkart reportedly for ₹2,000
crores.
In September 2015, PepperTap raised $36 million from Snapdeal and others.In July 2020,
Purplle raised $30 million from Goldman Sachs and others.
Niche retailers
The spread of e-commerce has led to the rise of several niche players who largely specialize their
products around a specific theme. As many as 1,06,086 websites are registered daily and more
than 25% are for niche businesses. During 2014, Royal Enfield sold 200 bikes of special series
Online. Online apparel is one of the more popular verticals, which along with computers and
consumer electronics make up 42% of the total retail e-commerce sales. Niche online
merchandising brands like Headbanger's Merch, Redwolf and No Nasties partner with and even
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help sustain independent musicians. Some established brands like Arvind are now creating
clothing lines just for the e-commerce markets. Some of the bigger online retailers like VoxPop
Clothing have secured multiple rounds of funding, the last round raising $1 million from Blume
Ventures in 2014.
As these niche businesses get popular, they are slowly getting acquired by the big players.
BabyOye was acquired by Mahindra Retail, part of the $17 billion Mahindra Group. Ekstop was
acquired by the Godrej Group to complement their offline chain of Nature's Basket stores.
According to a report by Grant Thronton, as much as US$2.1 billion worth of mergers and
acquisitions were inked in 2017 in the booming Indian e-commerce industry. Here is the list of
Mergers & Acquisitions which happened in India over a period of time:
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April Acquisition Snapdeal acquires FreeCharge US$400
2015 million
Regulation
Foreign e-commerce is subject to regulations in India; under local law, foreign companies are to
serve solely as marketplaces between vendors and their customers, and are forbidden from
holding inventory in the country. Under new regulations effective 1 February 2019, foreign
companies will be forbidden from selling any products from vendors that they control or have
equity stakes in, and it is forbidden to enter into exclusivity deals between vendors and websites.
This regulation is seen as a counter to Amazon and Walmart's influence on the market, which
have given smaller traders a disadvantage in the market.
Government initiatives
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Since 2014, the Government of India has announced various initiatives, namely Digital India,
Make in India, Start-up India, Skill India and Innovation Fund. The timely and effective
implementation of such programs will likely support growth of E-commerce in the country.
Some of the major initiatives taken by the Government to promote E-commerce in India are as
follows:
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● In October 2020, amending the equalisation levy rules of 2016, the government mandated
foreign companies operating e-commerce platforms in India to have permanent account
numbers (PAN). It imposed a 2% tax in the FY21 budget on the sale of goods or delivery
of services through a non-resident ecommerce operator.
● In order to increase the participation of foreign players in E-commerce, Indian
Government hiked the limit of FDI in the E-commerce marketplace model to up to 100%
(in B2B models).
● Heavy investment made by the Government in rolling out fiber networks for 5G will help
boost E-commerce in India.
Road Ahead
The E-commerce industry has been directly impacting micro, small & medium enterprises
(MSME) in India by providing means of financing, technology and training and has a favourable
cascading effect on other industries as well. Indian E-commerce industry has been on an upward
growth trajectory and is expected to surpass the US to become the second largest E-commerce
market in the world by 2034. Technology enabled innovations like digital payments, hyper-local
logistics, analytics driven customer engagement and digital advertisements will likely support the
growth in the sector. The growth in the E-commerce sector will also boost employment, increase
revenues from exports, increase tax collection by ex-chequers, and provide better products and
services to customers in the long-term. Rise in smartphone usage is expected to rise 84% to reach
859 million by 2022.
The E-retail market is expected to continue its strong growth - it registered a CAGR of over 35%
to reach Rs. 1.8 trillion (US$ 25.75 billion) in FY20. Over the next five years, the Indian e-retail
industry is projected to exceed ~300-350 million shoppers, propelling the online Gross
Merchandise Value (GMV) to US$ 100-120 billion by 2025.
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The Indian E-commerce industry has been on an upward growth trajectory and is expected to
surpass the US to become the second largest E-commerce market in the world by 2034. India's
e-commerce sector will reach US$99 billion by 2024 from US$30 billion in 2019, expanding at a
27% CAGR, with grocery and fashion/apparel likely to be the key drivers of incremental growth.
The Indian e-commerce sector is ranked 9th in cross-border growth in the world, according to the
Payoneer report. Indian e-commerce is projected to increase from 4% of the total food and
grocery, apparel and consumer electronics retail trade in 2020 to 8% by 2025.
As most Indians have started shopping online rather than stepping outside their houses, the
Indian e-commerce sector witnessed an increase. Also, as per the Mckinsey report, ~96%
consumers have tried a new shopping behaviour; ~60% consumers are expected to shift to online
shopping in the festive season and continue shopping online beyond the COVID-19 pandemic.
Much of the growth in the industry has been triggered by increasing internet and smartphone
penetration. As of August 2020, the number of internet connections in India significantly
increased to ~760 million, driven by the ‘Digital India’ programme. Out of the total internet
connections, ~61% connections were in urban areas, of which 97% connections were wireless.
Smartphone shipments in India increased by~8% y-o-y to reach 50.0 million units in the
first-quarter of 2020, driven by positive shipments of all smartphone vendors in the market.
Samsung led the Indian smartphone market with 24% shipping share, followed by Xiaomi at
23%.
The Government of India's policies and regulatory frameworks such as 100% Foreign Direct
Investment (FDI) in B2B E-commerce and 100% FDI under automatic route under the
marketplace model of B2C E-commerce are expected to further propel growth in the sector. As
per the new FDI policy, online entities through foreign investment cannot offer the products
which are sold by retailers in which they hold equity stake.
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In October 2020, Minister of Commerce and Industry, Mr. Piyush Goyal invited start-ups to
register at public procurement portal, GeM, and offer goods and services to government
organisations and PSUs.
Through its Digital India campaign, the Government of India is aiming to create a trillion-dollar
online economy by 2025.
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1.2 About the Organisation :-
Flipkart was founded in October 2007 by Sachin Bansal and Binny Bansal. It is one of India’s
leading E-commerce marketplaces and is headquartered in Bengaluru. The company initially
started as an online bookstore. Later, it also started selling other items such as movies and
mobile phones. Now the company offers more than 80 million products spread across more than
80 categories. It has the capacity to deliver eight million shipments per month.
Flipkart Group raised an additional US$ 1.2 billion from Walmart-led investor group in July
2020. Its valuation has reached US$ 24.9 billion post equity round. Flipkart has pledged to
completely transition to electric vehicles (EVs) by 2030 across its E-commerce value chain by
partnering with Climate Group’s global electric mobility initiative, EV100.
The service competes primarily with Amazon's Indian subsidiary and domestic rival Snapdeal.
As of March 2017, Flipkart held a 39.5% market share of India's e-commerce industry. Flipkart
has a dominant position in the apparel segment, bolstered by its acquisition of Myntra, and was
described as being "neck and neck" with Amazon in the sale of electronics and mobile phones.
Flipkart also owns PhonePe, a mobile payments service based on the Unified Payments
Interface.
In August 2018, U.S.-based retail chain Walmart acquired an 81% controlling stake in Flipkart
for US$16 billion, valuing Flipkart at around $20 billion.
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1.21 Partnerships and acquisitions
Acquisitions
In 2011, Flipkart acquired the digital distribution business Mime360.com and the digital content
library of the Bollywood portal Chakpak. Following this acquisition, Flipkart launched their
DRM-free online music store Flyte in 2012. Because of competition from free streaming sites,
the site was unsuccessful and shut down in June 2013.
With its eyes on India's retail market, Flipkart acquired Letsbuy, an online electronics retailer, in
2012, and Myntra, an online fashion retailer, for $280 million in May 2014. Myntra continues to
operate alongside Flipkart as a standalone subsidiary focusing on separate market segments. In
April 2015, Flipkart acquired Appiterate, a Delhi-based mobile marketing automation firm.
Flipkart stated that it would use Appiterate's technology to enhance its mobile services. In
December 2015, Flipkart purchased a minority stake in the digital mapping provider
MapmyIndia. In 2016, Flipkart acquired the online fashion retailer Jabong.com from Rocket
Internet for $70 million and the UPI mobile payments startup PhonePe. In January 2017, Flipkart
made a $2 million investment in TinyStep, a parenting information startup. Flipkart invested $35
million in Arvind Fashions Limited's newly formed subsidiary Arvind Youth Brands for a 27%
stake in the company. Arvind Youth Brands owns Flying Machine.
Flipkart Wholesale recently launched a digital platform for kiranas and MSMEs. In October
2020, Flipkart acquired a 7.8% stake in Aditya Birla Fashion and Retail for $204 million.
Partnerships
In April 2017, eBay announced that it would sell its Indian subsidiary, eBay.in, to Flipkart and
invest $500 million in the company. While eBay suggested that the partnership would eventually
allow Flipkart to access eBay's network of international vendors, these plans never actually came
to fruition. In July 2017, Flipkart made an offer to acquire its main domestic competitor,
Snapdeal, for $700–800 million. It was rejected by Snapdeal, which was seeking at least $1
billion.
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In August 2019, Flipkart entered into a partnership with Authentic Brands to license and
distribute Nautica in India.
Flipkart invested $4 million in the customer engagement and rewards platform EasyRewardz on
19 November 2019.
Mobile retailing
In February 2014, Flipkart partnered with Motorola Mobility to be the exclusive Indian retailer
of its Moto G smartphone. Motorola also partnered with Flipkart on the Moto E, a phone targeted
primarily towards emerging markets such as India. High demand for the phone following its
midnight launch on 14 May caused the Flipkart website to crash. Flipkart subsequently held
exclusive Indian launches for other smartphones, including the Xiaomi Mi 3 in July 2014 (whose
initial release of 10,000 devices sold out in around 5 seconds), the Redmi 1S and Redmi Note in
late 2014, and Micromax's Yu Yunique 2 in 2017. Flipkart held a 51% share of all Indian
smartphone shipments in 2017, overtaking Amazon India (33%).
On 6 October 2014, in honor of the company's anniversary and the Diwali season, Flipkart held a
major sale that it promoted as "Big Billion Day". The event generated a surge of traffic, selling
$100 million worth of goods in 10 hours. The event received criticism via social media over
technical issues the site experienced during the event and stock shortages.
In October 2015, Flipkart reprised the Big Billion Day event as a multi-day event exclusive to
the Flipkart app. Flipkart bolstered its supply chain and introduced more fulfillment centers to
meet customer demand. Flipkart achieved a gross merchandise volume of $300 million during
the event, with the largest volumes coming from fashion sales and the largest value coming from
mobiles. In 2017, Flipkart sold 1.3 million phones in 20 hours on 21 September in its Big Billion
Days promotion, doubling the number sold on the first day of the same event in 2016.
In March 2015, Flipkart blocked access to its website on mobile devices and began requiring that
users download the site's mobile app instead. The following month, Myntra went further and
discontinued its website on all platforms, operating exclusively through its app. The "app-only"
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model, however, proved to be unsuccessful for Myntra, reducing its sales by 10%, and its main
website was reinstated in February 2016. The experiment with Myntra led to rumors that Flipkart
itself would perform a similar move, but the company did not follow suit. In November 2015,
Flipkart launched a new mobile website branded as "Flipkart Lite" that provides an experience
inspired by Flipkart's app and runs in smartphone web browsers.
Acquisition by Walmart
On 4 May 2018, it was reported that the US retail chain Walmart had won a bidding war with
Amazon to acquire a majority stake in Flipkart for $15 billion. On 9 May 2018, Walmart
officially announced its intent to acquire a 77% controlling stake in Flipkart for $16 billion.
Following the purchase, Flipkart co-founder Sachin Bansal left the company. The remaining
management team now reports to Marc Lore, CEO of Walmart eCommerce US. Walmart
president Doug McMillon cited the "attractiveness" of the market, explaining that their purchase
"is an opportunity to partner with the company that is leading the transformation of eCommerce
in the market". Indian traders protested against the deal, considering the deal a threat to domestic
business.
In a filing with the U.S. Securities and Exchange Commission on 11 May 2018, Walmart stated
that a condition of the deal prescribed the possibility that Flipkart's current minority shareholders
"may require Flipkart to effect an initial public offering following the fourth anniversary of the
closing of the transactions at a valuation no less than that paid by Walmart".
Following the announcement of Walmart's deal, eBay announced that it would sell its stake in
Flipkart back to the company for approximately $1.1 billion and relaunch its own Indian
operations. The company stated that "there is the huge growth potential for e-commerce in India
and significant opportunity for multiple players to succeed in India's diverse, domestic market."
Softbank Group also sold its entire 20% stake to Walmart without disclosing terms of the sale.
The acquisition was completed on 18 August 2018. Walmart also provided $2 billion in equity
funding to the company.
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On 13 November 2018, Flipkart CEO Binny Bansal resigned after facing an allegation of
"serious personal misconduct". Walmart stated that "while the investigation did not find evidence
to corroborate the complainant's assertions against Binny, it did reveal other lapses in judgment,
particularly a lack of transparency, related to how Binny responded to the situation."
According to a report in November 2014, Flipkart was operating through a complex business
structure that included nine firms, some registered in Singapore and some in India. In 2012,
Flipkart co-founders sold WS Retail to a consortium of investors led by Rajeev Kuchhal.
Flipkart's Indian entities are owned by Flipkart Pvt. Ltd, which is registered in Singapore. The
Singapore-registered entity owns eight Indian companies, including Flipkart Internet Pvt. Ltd,
the company that runs the e-commerce marketplace Flipkart.com, Flipkart India Pvt. Ltd, the
wholesale business, and Flipkart Logistics Pvt. Ltd, which runs Ekart.
1.23 Funding
The initial development budget of Flipkart was INR ₹400,000 (US$5,600). It later raised funding
from venture capital firms Accel India (receiving US$1 million in funding in 2009) and Tiger
Global (US$10 million in 2010 and US$20 million in June 2011). On 24 August 2012, Flipkart
announced the completion of its 4th round of funding, netting a total of US$150 million from
MIH (part of the Naspers Group) and ICONIQ Capital. The company announced on 10 July
2013 that it had raised an additional US$200 million from existing investors, including Tiger
Global, Naspers, Accel Partners and Iconiq Capital.
Flipkart's reported sales were ₹40 million (US$560,000) in the FY 2008–2009, ₹200 million
(US$2.8 million) in the FY 2009–2010 and ₹750 million (US$11 million) in the FY 2010–2011.
Flipkart reported a loss of ₹2.81 billion (US$39 million) for the FY 2012–13. In July 2013,
Flipkart raised $160 million from private equity investors.
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In October 2013, it was reported that Flipkart had raised an additional US$160 million from new
investors Dragoneer Investment Group, Morgan Stanley Wealth Management, Sofina SA, and
Vulcan Inc., with a share of the funding coming from existing investor Tiger Global.
On 26 May 2014, Flipkart announced that it had raised US$210 million from Yuri Milner's DST
Global and its existing investors Tiger Global, Naspers, and Iconiq Capital.
On 29 July 2014, Flipkart announced that it raised US$1 billion from Tiger Global, Accel
Partners, Morgan Stanley Investment Management, and a new investor, Singaporean
sovereign-wealth fund GIC.
In December of 2014, after it received $700 million from another round of funding, Flipkart had
a market cap of $11 billion.
On 20 December 2014, Flipkart announced its filing application with Singapore-based company
regulator ACRA to become a public company. This announcement came after the company
received $700 million in long-term strategic investments from more than 50 Indian investors.
The $700 million in funding raised by Flipkart added new investors to the company's board,
including Baillie Gifford, Greenoaks Capital, Steadview Capital, T. Rowe Price Associates, and
Qatar Investment Authority. Its existing investors DST Global, GIC, ICONIQ Capital and Tiger
Global also participated in this financing round. As of May 2015, Flipkart had raised $550
million in additional funding from its existing investors in a deal that raised its total valuation to
$15 billion.
By August 2015, after raising another US$700 million, Flipkart had raised a total of $3 billion
over 12 rounds of funding from 16 major investors. In April 2017, Flipkart underwent another
round of funding, receiving $1.4 billion in funding from investors including eBay, Microsoft,
and Tencent. On 10 August 2017, Softbank Vision Fund invested another US$2.5 billion in
Flipkart.
On 19 September 2018, Flipkart Marketplace Singapore infused INR 3,463 crore into Flipkart
Internet. The transaction was done in two tranches, according to regulatory filings.
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1.24 Regulatory action and lawsuits
In November 2012, the Indian Enforcement Directorate began investigating Flipkart for alleged
violations of the foreign direct investment regulations of the Foreign Exchange Management Act
of 1999. On 30 November 2012, Flipkart's offices were raided by the Enforcement Directorate.
Documents and computer hard drives were seized by the agency. In August 2014, the
Enforcement Directorate claimed that it had found Flipkart to be in violation of the Foreign
Exchange Management Act. The Delhi High Court declared that several e-commerce firms,
including Flipkart, had violated foreign investment regulations.
In January 2016, a public interest litigation hearing came up accusing Flipkart of contravention
of foreign investment norms. The court asked the Reserve Bank of India to provide the latest
circular on foreign investment policy. The same month, the Department of Industrial Policy and
Promotion (DIPP) clarified that it did not recognize the marketplace model of online retail. In
February 2016, Health Minister J P Nadda announced that the Maharashtra FDA had taken
action against Flipkart, among others, for selling drugs without a valid license.
Flipkart operates several house brands, including Citron (home appliances) and Digiflip
(formerly for electronics and accessories). In 2017, Flipkart launched additional house brands,
including Billion (smartphones), Smartbuy (electronics accessories, effectively replacing
Digiflip), and MarQ (for large appliances, although its launch was complicated by a trademark
.
dispute with an existing company, Marc Enterprises)
In 2019, Flipkart began selling Nokia-brand televisions. A 55-inch, Android TV-based 4K Smart
TV was the first product released under that licensing agreement. A 43-inch TV was unveiled on
4 June 2020.
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Flipkart launched an in-app streaming service called Flipkart Video in August 2019, so as to
compete with industry rivals like Amazon who were also offering premium video options. The
initial line up of content was curated from the service providers like Viu, Voot and TV.
To strengthen its content offering on Flipkart Video, Flipkart forayed into original content
production, known as Flipkart Video Originals. The first show was launched on October 19,
2019. Named Back Benchers, it was a Bollywood celebrity quiz show hosted by Farah Khan.
1.28 Criticism
In 2014, competitors such as Future Group (owner of retail chain Big Bazaar) filed complaints
with India's Ministry of Commerce and Industry, alleging that Flipkart's Big Billion Days
discounts undercut prices in a manner predatory to other retailers. The ministry stated that it
would look into the complaints.
In April 2015, Flipkart faced criticism for being a launch partner in the Airtel Zero program.
Critics alleged that the zero-rating scheme violated the principles of net neutrality. Flipkart later
pulled out of the project.
In 2015, around 400 delivery executives working with eKart, the logistics arm of Flipkart, went
on strike to protest poor working conditions. Complaints included seven-day workweeks,
extended hours, and a lack of clean toilets and medical assistance for bike riders involved in
accidents. In 2016, delivery executive Nanjunda Swamy was murdered by a customer who did
not have enough money to pay for a product. In response, Flipkart launched a safety initiative
-'Project Nanjunda', named after the deceased executive. This included an SOS button in the
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mobile app (called the Nanjunda button) that could be used by field executives in case of
emergencies.
Vendors on Flipkart have faced several challenges while doing business on the company's
marketplace, to the extent that some of them have quit the portal. Some of these challenges
include Flipkart's alleged unfair policies towards sellers, the lack of a competent logistics
service, and customer returns that are a result of consumer fraud.
Sachin Bansal was awarded Entrepreneur of the Year, 2012–2013 from The Economic Times, a
leading Indian economic daily newspaper.
In September 2015, the two founders entered Forbes' India Rich List debuting in the 86th
position with a net worth of $1.3 billion each.
In April of 2016, Sachin and Binny Bansal were named to Time magazine's annual list of The
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CHAPTER - 2
REVIEW OF LITERATURE
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Literature Review
A brief review of literature would be of immense help to the researcher in gaining insight into
the selected problem. The researcher would gain good background knowledge of the problem by
reviewing certain studies. The next step the researcher undertook is review of literature.
Literature and review is one of the fundamental tasks of any researcher. It helps, guides the
researcher to as below, understand where, who and how research relevant to the present study
was carried out,
3. The literature review also helps the researcher in identifying the gap that exists between past
research, present scenario and probable outcomes of the study.
2.1 Prof. Rick L. Andrews (2019) in his research paper has stated that : This study uses
data from both traditional supermarket scanners and an online supermarket to test for
expected differences in the parameters describing the choice process of consumers
attracted to shopping online versus traditional supermarkets.
2.2 Fayu Zheng (2018) in his research paper has stated that : This study mainly focuses
on the factors from the Internet and examines those factors that affect the consumer’s
online shopping behaviors. It starts with the current status of Internet development, and
mentions the background of the book industry as representation and its difference with
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physical stores in order to show the developing history of Internet shopping since
E-commerce became popular.
2.3 Prof. Zia Ul Haq (2018), in his research has said that : The perception of online
shoppers is independent of their age and gender but not independent of their qualification
& gender and income & gender. The analytical results of our study further indicate
relationships between consumers’ perceptions of the factors that influence their intention
to buy through online.
2.4 Prof. Gurvinder S Shergill & Prof. Zhaobin Chen (2018) in their research has stated
that : In line with many E-marketing researches concerning the factors which cause
consumer satisfaction in online purchasing experiences, this paper found that website
security/privacy, website design, website reliability/fulfillment and website customer
service are the four dominant factors which influence consumer perceptions of their
online purchasing experiences. New Zealand online buyers had different perceptions of
these four factors.
2.5 Lina Zhou , Liwei Dai, Dongsong Zhang (2017) in their research has stated that : This
study sheds light on some future research issues. There is a need for a better
understanding of how to improve consumer loyalty. Learning about the influential factors
for retaining consumers might be one of the best long-term strategies for online retailers.
2.6 Christy M. K. Cheung, Lei Zhu, Timothy Kwong, Gloria W.W. Chan, Moez Limayem
(2017) , in their research has stated that : Our findings show that the literature on online
consumer behavior is rather fragmented. Most studies investigated intention and adoption
of online shopping while continuance behavior (repurchase) is seriously
under-researched. Moreover, our analysis helped us to identify several fruitful directions
for future research.
2.7 Ali M. Noor , Zetty M.M. Zaini , Mohd Raziff Jamaluddin and Mohd Salehuddin
Mohd Zahari (2016), in their research paper has stated that : For conclusion, it can be said
that most of the respondents disagree that they have enough time to shop online. This was
45
due to the fact that most of the respondents were working and they had less time to
purposely browse for online grocery shopping.
2.8 Sujana Adapa (2016), in her research paper has stated that : Results obtained have
implications on venture capitalists and e-commerce business strategists. As venture
capitalists increasingly try to invest in overseas operations, it is important to consider
prevailing cultural situations for diffusion of the internet as well as for the development
of ecommerce.
2.9 Mr. Rakesh Kumar, (2015), in his research paper has stated that : The rise in number
of credit card providers and users have come of age. With these positively influencing
trends expected to continue in the near and far-future. The credit card industry is likely to
soar more than any industry segment. To add to that, easy and continuous payments'
structures with each passing day and with every Bank poised to expand its network, the
Indian credit card user community is the biggest beneficiary.
2.10 Ankur Kumar Rastogi (2015), in his research has stated that : Online shopping has
become a significant part of our life as a result of the growing internet and our busy
schedule. This adds up to faster, easier, safer and less costly shopping. Online shopping
has a great advantage for us as it is time saving and also a wide range of products can be
selected with the best offer.
2.11 Prof. Bo Dai, (2015), in his research has stated that - First, for online apparel
shopping, all relationships between the variables in the proposed research model were
significant except the influence of previous online apparel shopping experience on
consumers’ perception of privacy risk associated with online apparel shopping.
2.12 Sapna Rakesh, Arpita Khare, (2015), in their research has stated that : Factors such
as website layout, product displays and payment modes can be understood with reference
to value consciousness and low prices. Demographic factors such as education and
income can provide understanding about consumers’ Internet-savvy behavior. Types of
purchases consumers make online can be identified to understand the relevance of deals
46
and discounts. In many online service purchases, consumers may not be affected by
discounts.
2.13 Parimal Vyas, Pooja Srinivas (2015), in their research paper has stated that
:submitted to Teri University, Delhi. In this research it would be true that the majority of
the internet users were having a positive attitude towards online buying of
products/services. There exists a need for developing awareness about consumers’ rights
and cyber laws. Marketers are required to educate consumers. It calls for developing a
better distribution system for online products. Though at present online buyers in India
are only in a negligible percentage compared to total conventional buyers, it is expected
to grow substantially if better technology to assist online buying is being implemented.
2.14 Narges Delafrooz, Laily H. Paim, Sharifah Azizah Haron, Samsinar M. Sidin, and
Ali Khatibi (2015), in their research paper has stated that : The factors influence on
attitude toward online shopping, other behavioral models could be used. Future
investigation could also examine the causal relationships between factors and how
consumers’ attitude overall online shopping by employing a structural equation modeling
technique. In the dependent variable (attitude toward online shopping)., there are other
factors that influenced attitude toward online shopping, which have not been included in
this study. Enhancement of the model by addition of other relevant variables could
produce a model that has more clarifying power.
2.15 Thomas G. Brashear, Vishal Kashyap, Michael D. Musante, Naveen Donthu, (2015)
in their research paper has stated that : by examining Internet shoppers and non-shoppers
in five countries in addition to the United States. In doing so our research seeks to expand
the domain of our research to a global context
2.16 Lim Ying San, Wong Wan Jun, Tan Nya Ling, Ng Tuan Hock, (2014) in their
research has stated that : The research shows that three out of five service quality
dimensions, notably reliable/prompt responses, ease of use, and access, had significant
impacts on customers’ perceived online shopping service quality and there is a
relationship between customers’ perceived online shopping service quality and online
customers’ satisfaction.
47
2.17 Kenneth C. Gehrt, Mahesh N. Rajan, G. Shainesh, David Czerwinski, Matthew
O'Brien, (2014), in their research paper has stated that : Besides revealing that the
orientations of Indian consumers are not price-based, the relatively unfractionated factor
analysis solutions for shopping orientations and web site dimensionality suggest that, in
the emerging Indian economy, consumer conceptualizations of shopping have not yet
undergone full elaboration.
2.18 Tonita Perea y Monsuwe, Benedict G.C. Dellaert and Ko de Ruyter (2014), in their
research paper has stated that : While a large number of consumers in the US and Europe
frequently shop on the Internet, research on what drives consumers to shop online has
typically been fragmented.
2.19 Shabnam Ghaffari, (2014) , ion his research paper has stated that : When analyzing
the summation of the results from the experiment and the content analysis it is clear that
our predictions that average or larger size models used in clothing visualizations do
indeed improve most consumers’ abilities to make accurate size decisions. Consumers
with high levels of consumer experience analysis were the only group that was found to
have more accurate size decisions when exposed to visualizations utilizing thin models.
perception.
2.20 Wen Gong , Lynda M. Maddox , Rodney L. Stump, (2014) in their research paper
has stated that : As online shoppers become progressively global and multicultural, more
cross-cultural research is called for to better understand online consumers’ purchase
behaviour. Based on the diffusion of innovation theory, literature on perceived risk in e-
tailing and theories of national culture.
2.21 Dahiya Richa, (2013), in her research paper has stated that : The ANOVA results for
consumers’ response across different demographics factors shows that gender impacts
frequency of on-line shopping positively and Family Size impacts overall spend on
on-line shopping. The overall can also be used by various organizations to identify their
target customer segments.
48
2.22 Srivastava Priyanka, (2013), in his research has stated that : Overall in a study on
impact of online advertising on consumer behavior, the outcomes which came from the
survey which is conducted over the 100 number of people we can analyze the relationship
between Age of the respondents and the websites that are most clicked at, are
independent. Finally we concluded that the online advertising is informative for all age
groups of people and basically it is used for accessing E-mail in.
2.23 Prof. Javed Sayyed, (2013), in his research paper has stated that : It is very clear that
Indian consumers' buying behavior and their attitude have changed drastically in the
recent past. One thing is for sure that the pace of change in the needs, desires and wants
of the Indian consumers will be even steeper and will further change drastically in the
near future.
2.24 Shweta Tanwar, (2012) in her research paper has stated that : Online shopping has
come up as a boon for all types of consumers and it has something to offer for everyone.
Despite this fact that it is highly convenient and time saving and to a certain extent it is
also a cost cutting exercise as one need not step out of his / her home for shopping.
2.25 PROF. SANDIP PRAJAPATI; PROF. MITAL THAKOR, (2012), in their research
paper has stated that : The study reveals that the internet is the phenomenon gaining
popularity among the people of Ahmedabad. Time saving and ubiquity (Availability of
product 24*7) are the most tempting reasons for online purchase. Also, Internet surfing,
television and interaction with friends are the main sources of information about online
shopping for most people. They recommended that online shoppers should obtain one
credit card that they use only for online payments to make it easier to detect wrongful
credit card usage.
2.26 John B. Horrigan, (2012), IN HIS RESEARCH PAPER has stated that : More than
half of internet users encounter frustrations and other frictions in the course of online
shopping. More people would shop online if they trusted the e-commerce environment
more.
49
2.27 Paromita Goswami, & Mridula S. Mishra, (2012), in their research paper titled
“Would Indian consumers move from kirana stores to organized retailers when shopping
for groceries? Has stated that : Customer patronage to grocery stores was found to be
positively related to location, helpful, trustworthy salespeople, home shopping,
cleanliness, offers, quality and negatively related to travel convenience. Kiranas do well
on location but poorly on cleanliness, offers, quality, and helpful trustworthy salespeople.
The converse is true for organized retailers.
CHAPTER - 3
50
RESEARCH METHODOLOGY
Research Methodology:
51
Market research methodology is as old as the marketing is without which it is almost impossible
to reach any tangible decision. Although various methods are adopted to undertake this activity
the goal is almost the same i.e. to reach a final decision or solution of the problem. There is a
very famous quote "if you are confident of doing something, half of the work is done". And
confidence comes when you have a proper framework for the particular job. Hence to carry out
any work it is necessary to chalk out a framework. To carry out the research project, we first
define the research methodology that is to be used for the research. Research Methodology is the
way of systematically solving the research problem. It may be understood as a science of
studying how research is done scientifically. In it we study the various steps that are generally
adopted during the course of research along with the logic behind them. It is necessary for the
research to know not only the research methods but also the methodology.
The purpose of the research is to discover the answers to the questions through the application of
scientific procedures. Though each research study has its own scientific objectives, we may think
of research objective as falling in to a number of following broad groupings:-
1. To gain familiarity with a phenomenon or to achieve new insights into it.
2. To accurately portray the characteristics of a particular individual situation.
52
3. To determine the frequency with which something occurs or with which it associates with
something else.
Research Design:
Research Design is the overall plan to conduct research. It covers:-
1. Data collection methods.
2. Sampling decisions.
3. Data analysis methods.
Often constraints on resources limit research design so that it is less ideal. For example-smaller
sample size. The purpose of research design is to decide the approach that answers our problem
in the best way, given constraints on resources.
Sample:
AREA- The area covered under the survey for response is Bhiwadi.
SAMPLE SIZE- It refers to the number of people surveyed for this topic, in the study 100
people were surveyed and responses are drawn.
Our research is based on the Exploratory Study. Research is exploratory when you use no earlier
model as a basis of your study. The most usual reason for using this approach is that you have no
other choice. Normally you would like to take an earlier theory as a support, but there perhaps is
none, or all available models come from wrong contexts.
53
Exploratory research means that hardly anything is known about the matter at the outset of the
project. You then have to begin with a rather vague impression of what you should study, and it
is also impossible to make a detailed work plan in advance. The gradual process of accumulating
intelligence about the object of study means also that it will be impossible to start by defining the
concepts of study. You have to start with a preliminary notion of your object of study, and of its
context. During the exploratory research project, these provisional concepts then gradually gain
precision.
Data Collection:
This is the first step of the process. It forms the foundation for the whole of statistical analysis.
Faulty data can lead to unreliable conclusions so most care is required while collecting.
Primary data:
Primary Data has been used by me in the form of Questionnaire & Observation, which are the
two basic methods of collecting primary data, which suffices all research objectives. Primary
sources are original works of research or raw data without interpretation or pronouncement that
represents an official opinion or position. Our primary research will be based on interviews
conducted and information gathered through questionnaires in the form of Google Forms.
As per my requirement to know about the Brand loyalty of customers towards Flipkart , I have
been conducting Open ended questions and close ended Questions that will allow us to
understand and make a bright picture of brand loyalty. Example:- Questionnaire in the form of
Google Forms.
Secondary data:
Secondary Data have sources like catalogue of the company, product range book of the company
& various internet websites have been used. Secondary sources are interpretations of primary
data. Secondary research includes information from magazines, internet, encyclopedias, books,
54
newspaper articles, etc. We have conducted secondary research from the Internet, Journals,
magazines, newspapers, etc.
Example:-
1. Internet
2. Company Reports & Brochures.
3. Magazines.
4. Newspapers Articles & Journals Data is also gathered by talking to the respondents (Target
Audience) understanding their beauty needs, what aspire them to go for Oriflame and Avon
products.
All these factors were the prime criterion for selecting the products, Short listing and ranking
(level of trustworthiness or most preferred) which had helped us in identifying the winner in the
cosmetics industry.
55
1. A small sample size of study is restricted to 100 customers only.
2. The scope of the project is limited to the city of Bhiwadi. So, we cannot say that the same
response will exist throughout India.
3. The preference of products varies from one person to another.
4. Total coverage of the study is limited to the few customers.
5. Time is the one constraint of the survey.
6. Most of the respondents hesitate to give information but however an attempt is made to collect
the data systematically.
7. The result is assuming that respondents have given accurate information.
CHAPTER- 4
56
DATA PROCESSING, ANALYSIS AND INTERPRETATION
Data analysis is a process of inspecting, cleaning, transforming, and modeling data with the goal
of highlighting useful information suggesting conclusions, and supporting decision making. Data
analysis has multiple facets and approaches, encompassing diverse techniques under a variety of
names, in different business, science, and social science domains. Data analysis is the analysis of
the problem which is under the study. Having gathered the data, the researcher has to proceed
towards drawing conclusions by logical inference. At this stage, the data is in a tabulated form
and requires interpretation. Thus, analysis involves the refinement and manipulation of data. It
basically translates the raw data into measured data.
57
4.2 Data interpretation:-
The data processing and analysis is the focal point of results which we are able to understand
about right or wrong, good or bad, like dislike etc. The data processing and analysis tool is very
essential to find out the result in a good manner. It provides us with a clear picture of all our
research in analysis data that have been gathered from the different sources. The data gathered
through the primary and secondary sources will be analyzed by qualitative methods. Conclusion
and analysis will also be included in the report. The other mathematical tools like graphs, bar
diagrams, pie charts will also be used for the deep and comprehensive analysis of the data.
58
Interpretation of the analysis under the study:-
Interpretation means to bring out the meaning of data or convert into information. The climax of
the research process is approached as one prepares to draw conclusions for the data analyzed.
The whole investigation culminates in drawing inference that leads to conclusion. This phase
calls for a high degree of interpretative skill both quantitative and logical.
Questionnaire Analysis:
This method is more popular in comparison with other methods. The questionnaire is sent to the
person concerned to answer the questions formatted and return the same so on. A questionnaire
consists of a number of questions printed or typed in definite order or on a form or set of forms.
The questionnaire is sent to the respondent. In order to achieve their search objectives, it is
necessary to collect relevant and accurate data. Primary data are collected specifically for the
research situation at hand. Using respondent surveys is one of the ways of collecting primary
data namely observation, experiments, and surveys.
59
Interpretation:
The above chart shows the frequency of usage of flipkart as an ecommerce website by the
Respondents. A large number of people always use it i.e. 44% of them. 27% of people use it
often. 18% of people use it sometimes and 11% of them use it never.
60
Interpretation:
The above chart shows the mode of awareness i.e. how the respondents got to know about
Flipkart. 43% say through word of mouth, 26% say throough advertisements,newspapers etc. ,
12% say through promotional emails and 19% say through search engines.
61
Interpretation:
The above chart shows the category of products purchased by the respondents through Flipkart.
Most of them purchase electronics i.e. 40% of people.Then 24% of them purchase apparels and
accessories.17% of them purchase health care and personal care and 19% of them purchase home
and kitchen items.
62
Interpretation:
The above chart shows the feature that the respondents prefers from Flipkart. 41% prefer fast
delivery, 13% prefer after sale services,17 % prefer easy payment options and 29% prefer
availability of the products.
Q5-On what basis do you prefer to buy the product online on Flipkart?
63
Interpretation:
The above chart shows the basis on which the respondents decides to buy the product through
Flipkart.Most of them see discounts and features i.e. 48%.14% of them see ratings of the
product.26% of see reviews about the product.12% of them see brand of the product.
Q6-What issues for the product you have faced from Flipkart?
Interpretation:
The above chart shows the issues that the respondents face on the E-Commerce website of
Flipkart.36 % of them face payment issues,18% of them face delay in delivery,23% of them face
faulty issues and another 23% of them face no issues.
Q7-Do you think the Flipkart is going to replace your traditional offline shopping of goods?
64
OPTIONS NO. OF PERCENTAGE
RESPONDENTS
a)Strongly disagree 10 10
b)Disagree 15 15
c)Maybe 15 15
d)Agree 20 20
e)Strongly agree 40 40
Interpretation:
The above chart shows the percentage of Respondents who agree or disagree that Flipkart is
going to replace traditional offline shopping of goods. 10% strongly disagree, 15% disagree,
15% maybe agree or disagree, 20% agree and 40% strongly agree.
Q8-Are you satisfied with buying essential goods on Flipkart rather than buying through Retail
shops?
65
Interpretation:
The above chart shows the percentage of respondents who are either satisfied or dissatisfied on
buying of essential items through Flipkart.5% are very dissatisfied, 25% are dissatisfied, 15% are
neutral, 20% are satisfied and 35% are very satisfied.
Q9-How much do you spend on online shopping from Flipkart every month?
66
Interpretation:
The above chart shows the range of amount that is spent by the Respondents on Flipkart every
month.45% spend between 0-2000(Rs), 12% spend between 2000-4000(Rs),15% spend between
4000-6000(Rs),14% spend between 6000-10000(Rs) and other 14 spend Rs 10000 and above.
Interpretation:
The above chart shows the percentage of people whether they face challenges while checkout on
Flipkart. 64% say Yes and 36% say No.
Q11-Do you find all the products you need on Flipkart at the time of shopping online?
67
Interpretation:
The above chart shows if the respondents can find all the products they need on Flipkart. 25%
say that Yes they find, 34% say No they cannot find and 41% say maybe they find.
68
Interpretation:
The above chart shows the easinesss in completing a transaction on Flipkart. 36% say it is very
easy, 33% say it is easy, 14% say it is difficult and 27% say it is very difficult.
Interpretation:
The above chart shows the suggestions that Flipkart can think of as an E-commerce Website.
35% suggest for better discounts,15% suggest for more reasonable prices of the products, 25%
suggest for better quality of the products and another 25% suggest for better after sale services.
69
c)Lack of Trust 37 37
d)Lack of consumer awareness 13 13
Interpretation:
The above chart shows the challenges that can act as a hindrance in Flipkart’s Growth. 16% think
it is due to slow penetration of interest. 34% think it is due to security concerns of the people.
37% think it is due to lack of trust on the website. 13% think it is due to lack of consumer
awareness about the website.
70
Interpretation:
The above chart shows what the respondents think of the future of Flipkart.48% of them think
the future to be very good.20% of them think the future to be good.Another 20% of them think
future to be no so good.12% of them think that there is no future of flipkart.
71
Interpretation:
The above chart shows for whom do people make a purchase on Flipkart. 18% of them purchase
for themselves, 32% of them for friends,17 % of them for relatives and 33% for others.
Q17-Do you find a larger range of products on Flipkart than other ecommerce websites?
72
Interpretation:
The above chart shows if the respondents can find a wide range of products on Flipkart. . 55%
say Yes,15% say No and 30% say Maybe they find a wide range of products on Flipkart.
a)Yes 65 65
b)No 10 10
c)Maybe 25 25
73
Interpretation:
The above chart shows the percentage of Respondents who are/aren’t willing to recommend
Flipkart to others. 65% say Yes,10% say No and 25% say Maybe about their recommendation.
Q19-Do you think shopping from Flipkart is playing an important role during lockdown?
74
Interpretation-
The above chart shows whether shopping from Flipkart is playing an important role during
lockdown.40% say Yes,24% say No and 36% say Maybe.
75
Interpretation:
The above chart shows if the Respondents are willing to place an order on Flipkart post
Lockdown.Mosyly people will prefer as it can be concluded with 45% of the respondents.15% of
them will often use.30% of them will use it sometimes and 10% of them will use it never.
76
Interpretation:
The above chart shows if the Lockdown has increased the purchasing frequency on
Flipkart.Therefore it can be concluded that 10% of people strongly disagree, 15% of people
Disagree, 25% of people are Neutral, 35% of people agree and 15% of people strongly agree
about their increase in frequency of flipkart during lockdown.
77
Interpretation:
The above chart shows how safe people find to purchase from Flipkart.5% of them feel very
unsafe, 10% of them feel unsafe, 25% of them feel neutral,30% of them feel safe and 30% of
them feel very safe.
78
Interpretation:
The above chart shows how people would rate Flipkart as a website out of 5.Most of them have
given 4 as a rating i.e. 30% of the respondents.Other rateings were also given by different
number of respondents10% gave 1,17% gave 2,23% gave 3 and 20% gave 5.
Q24-The products available online on flipkart are priced low in comparison to traditional
market?
79
Interpretation:
The above chart says whether the products available online on flipkart are priced low in
comparison to traditional market.60% of people say Yes,20% of people say No and another 20%
of people say Maybe.
Q25- Will you repurchase the product again in online on flipkart if there is a great different
between your expectation & real product?
OPTIONS NO. OF RESPONDENTS PERCENTAGE
a)I will 55 55
b)I will not 15 15
c)Maybe 30 30
Interpretation:
The above shows whether people will repurchase the product again in online on flipkart if there
is a great different between your expectation & real product.55% of people will repurchase.15%
of people will not repurchase and 20% of people maybe repurchase.
80
Chapter – 5
Findings & Suggestions
81
5.1 FINDINGS :-
82
5.2 SUGGESTIONS :-
Flipkart has successfully placed itself into the prospects mind making it the India's largest online
store with a huge range of products. But it still needs to work on their core competence that is
books and stationery items.
1. Delivery services can be improved mainly in rural areas by selecting an appropriate
courier service which has services in the customer area for dispatching an item.
2. Can make free delivery to all priced products.
3. Can include more coupon codes and gift vouchers for increasing the traffic of the
customers.
4. Out of stock items can made available as soon as possible and intimate the needed
customers.
5. Should look for International/ Overseas markets or Neighbouring Countries.
6. Critical mass of Internet users-Internet users in India is increasing at increasing rate, so
Flipkart can target more & more cities i.e not only tier 1 & 2 but also tier 3 & 4 cities,
which will help generate stronger customer base & more revenues.
7. Should clearing focus on the Growing Online Apparel business & it can diversify into
apparel category either organically or inorganically by acquiring other portals.
8. User Experience: Portal should continuously aim to work to improve the user experience
by adding more & more innovative features in the website like virtually shopping basket,
virtual trial rooms. In this competitive world to differentiate via user experience, the
ultimate winner will be the Indian online consumer.
9. Should comprehensively invest into E-CRM & online reputation management.
10. Logistics & Supply Chain: can continuously aim to reduce the delivery time cycle.
11. Price will still be a factor as amazon being a huge company will use its economies of
scale to remove their competitors from the market; therefore they need to be more
competitive on that aspect.
83
Chapter – 6
CONCLUSION
84
6.1 CONCLUSION
The thorough study is based on the consumer behaviour analysis which serves a great idea
regarding consumer perception when they go for online shopping. In order to satisfy themselves,
consumers perceive many things before buying products and they will be satisfied if the
company meets their expectations. The Overall Brand Value of Flipkart is good, but it is facing
some tough competition from its global competitors like Ebay and Amazon. Talking about the
domestic market i.e India, it is the most superior E-business portal which is aggressively
expanding & planting its roots deep into the Indian market & at the same time shifting the
mind-set of the people from going & shopping from physical stores to online stores, which is
magnificient. Be very focused on consumers and build amazing experiences for the customers.
The face of retail has changed. The advent of technology in recent period being the primary
reason for it.Today, retailing means going into shopping centers, going online and going mobile.
In all these, small retailers miss out somewhere. But the nearby store is always the most
important concern for all reason and seasons. It needs to revive not just survive. The retail stores
needs to simply uplift its pattern of business and face the competitive world with a more positive
outlook. E-stores and retail stores both have to survive, none at the cost of the other. It’s not just
about the livelihood it gives to the thousands of people but also the convenience and the
steadfastness of a fixed retail store.
85
BIBLIOGRAPHY
The essence of the report, are inspired and collected by these sources, listed in this chapter, not
fully partially as advisory notes.
BOOKS
1. PhilipKotler, "MarketingManagement".
2. Schiff mean Leon, knouck. Leslie, "Consumer Behavior' (Prentice hall of IndiaPvt.Ltd.
3. Kotler Philip, Keller Lane Kevin marketing, prentice hall of India, 2005.
MAGAZINE
2. Reader digests.
SITES USED
1. http://www.google.co.in/
2. www.khoj.com
3. http://www.flipkart.com/
1. www.academia.edu
2. https://theconsumer.guide
3. https://www.reviews.com
86
REFERENCES
1. Dwivedi, Y.K., Tamilmani, K., Williams, M.D. and Lal, B. (2014) Adoption of m-commerce:
examining factors affecting intention and behaviour of Indian consumers’, International
Journal of Indian Culture and Business Management, Vol. 8, No. 3, pp.345–360.
2. Fong, N.M. (2016) ‘How targeting affects customer search: a field experiment’, Management
Science, Vol. 63, No. 7, pp.2353–2364.
3. Joshi, R., Gupte, R. and Saravanan, P. (2018) ‘A random forest approach for predicting online
buying behavior of Indian customers’, Theoretical Economics Letters, Vol. 8, No. 3, p.448.
4. Kalia, P. (2015) ‘Top e-retailers of India: business model and components’, International
Journal of Electronic Marketing and Retailing, Vol. 6, No. 4, p.277
87
ANNEXURE
88
QUESTIONNAIRE
Name:
Place:
Sex:
Address::
Date:
a)Always
c)Often
c)Sometimes
d)Never
a)Word of Mouth
b)Advertisements,newspapers etc.
c)Promotional emails
d)Search Engines
a)Electronics
b)Apparels and Accessories
c)Health Care and Personal Care
d)Home and Kitchen Items
a)Fast Delivery
b)After Sale Services
c)Easy Payment Options
89
d)Availability
Q-5. On what basis do you prefer to buy the product online on Flipkart?
Q-6. What issues for the product you have faced from Flipkart?
a)Payment Issues
b)Delay in delivery
c)Faulty Issues
d)No Issues
Q-7. Do you think the Flipcart is going to replace your traditional offline shopping of goods?
a)Strongly disagree
b)Disagree
c)Maybe
d)Agree
e)Strongly agree
Q-8. Are you satisfied with buying essential goods on Flipkart rather than buying through Retail
shops?
a)Very Dissatisfied
b)Satisfied
c)Neutral
d)Satisfied
e)Very Satisfied
Q-9. How much do you spend on online shopping from Flipkart every month?
a)0-2000(Rs)
b)2000-4000(Rs)
c)4000-6000(Rs)
d)6000-10000(Rs)
e)10000 and above
90
Q-10. Do you face any challenges with Flipkart’s Checkout Method?
a)Yes
b)No
Q11. Do you find all the products you need on Flipkart at the time of shopping online ?
a)Yes
b)No
c)Maybe
a)Very Easy
b)Easy
c)Difficult
d)Very Difficult
a)Better Discounts
b)More reasonable Prices
c)Better Quality of the Products
d)Better After Sale Services
Q-14. What are the challenges for not successful usage of Flipkart in India?
a)Very Good
b)Good
c)Not so good
d)No Future
91
Q-16. For who do you mostly shop on Flipkart?
a)Myself
b)Friends
c)Relatives
d)Others
Q-17. Do you find a larger range of products on Flipkart than other ecommerce websites?
a)Yes
b)No
c)Maybe
a)Yes
b)No
c)Maybe
Q-19. Do you think shopping from Flipkart is playing an important role during lockdown?
a)Yes
b)No
c)Maybe
a)Mostly
b)Often
c)Sometimes
d)Never
a)Strongly Disagree
b)Disagree
c)Neutral
d)Agree
e)Strongly Agree
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Q-22. How safe is Flipkart for purchasing things online?
a)Very Unsafe
b)Unsafe
c)Neutral
d)Safe
e)Very Safe
Q-23. How much would you rate Flipkart as an ecommerce website(Out of 5)?
a)1
b)2
c)3
d)4
e)5
Q24- The products available online on flipkart are priced low in comparison to traditional
market?
a)Yes
b)No
c)Maybe
Q25- Will you repurchase the product again in online on flipkart if there is a great different
between your expectation & real product?
a)I will
b)I will not
c)Maybe
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