Intro

E-commerce has transformed the way business is done in India. The Indian E-
commerce market is expected to grow to US$ 111.40 billion by 2025 from US$
46.2 billion as of 2020. By 2030, it is expected to reach US$ 350 billion.
By 2021, total e-commerce sales are expected to reach US$ 67-84 billion from the
US$ 52.57 billion recorded in 2020.
India’s e-commerce market is expected to reach US$ 111 billion by 2024 and US$
200 billion by 2026.
Much of the growth for the industry has been triggered by an increase in internet
and smartphone penetration. As of July 2021, the number of internet connections
in India significantly increased to 784.59 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.

Industry growth rate

According to NASSCOM, despite COVID-19 challenges/disruptions, India's e-
commerce market continues to grow at 5%, with expected sales of US$ 56.6 billion
in 2021.
Propelled by rising smartphone penetration, launch of 4G network and increasing
consumer wealth, the Indian E-commerce market is expected to grow to US$ 200
billion by 2026 from US$ 38.5 billion in 2017. Online retail sales in India are
expected to grow 31% to touch US$ 32.70 billion in 2018, led by Flipkart, Amazon
India and Paytm Mall.
After China and the US, India had the third-largest online shopper base of 140
million in 2020.
Indian consumers are increasingly adopting 5G smartphones even before roll out of
the next-gen mobile broadband technology in the country. Smartphone shipments
reached 150 million units and 5G smartphone shipments crossed 4 million in 2020,
driven by high consumer demand post-lockdown.
PESTLE ANALYSIS OF ONLINE INDUSTRY

Political
The country is politically stable and the environment is suitable to promote online
shopping industry. The government is all open to offer the infrastructural and
policy support needed to make the experience of online shopping safer, efficient
making it friendly to consumer, sellers and environment which will help them meet
the standards of carbon emission and reduce greenhouse gases set by The Kyoto
Protocol and The Copenhagen Climate Council. The UK government is taking up
broadband and digital media growth rapidly paving way for online shopping.
Economic
Online shopping has the potential to create huge opportunities for innovation and
economic growth in UK market which is facing recession. Online shopping will
help in economic efficiency increasing competitiveness and profitability by
mitigating environmental impacts.
Social
Social awareness about environment is also driving people not to drive to the
physical shops and buy online with increase in internet connection. The people are
more technology equipped than before. Many retails chain such as Marks and
Spencer, Ocado, etc. are now promoting green concept to sell their products online
and generating goodwill which is ultimately helping them to reduce costs and
increase profits.
Technological
Technology is one of the key drivers to successfully implement effective online
shopping. The banking system and internet payments are some areas of concern
but with improvements in technologies related to internet security such as in
Amazon.com shopping experiences are becoming more convenient and safer. The
countries, organizations and internet community must concentrate on technologies
by using effective payment, delivery and storage means e.g., Ocado warehouses
and deliveries, Mega electric cars, etc.
Environment
Organization is now challenging the status quo and thinking of changing the way
of doing business because of energy prices. During the recent spike in gas prices
online shopping brought some respite to these shops which incurred significant
losses otherwise. Implementing online sales plan will assist a company to develop
a baseline of energy use, actively managing energy use and costs, reduce emissions
without negative effect on operations, continue to improve energy use and product
output overtime and document savings for internal and external use e.g., Emission
credits.
Legal
More environmental regulation from governments will also support energy
efficient technologies such as online shopping. Consumer Protection (Direct
Selling) Act 2000 helps consumer on issues related to online shopping.

Market leaders
Amazon.in is leading the Indian e-commerce market, with e-commerce net sales of
US$ 1,082 million in 2020 generated in India, followed by Ajio.com with US$ 983
million. Third place is taken by Bigbasket.com with revenues of US$ 929 million.
Jiomart.com is the fourth biggest online store in India with net sales of US$ 424
million in 2020

Reasearch Methodology
OBJECTIVES:

1. To understand the concept of Traditional shopping and Modern online shopping

2. To study the growth of online retail trade in last decade.
3. To study composition of traditional and modern online retail trade.
4. To find out reasons of preference for traditional and online shopping

SCOPE:
The scope of our study will be limited to only those consumers who Shops Offline and Online

RESEARCH DESIGN:

RESEARCH DESIGN:

In this research study, the research type that will be used is Descriptive.

DATA COLLECTION METHODS:

 Primary Method: - Structured Questionnaire

 Secondary Method: - Related research papers, journals, case studies, magazines, books,
etc.

POPULATION:
 In this research study, the population will be taken from the specific areas of Ahmedabad
city.

SAMPLING FRAME:

The sampling frame will include the people using offline and online shopping method from
different areas of Ahmedabad city.

SAMPLING METHOD:
The primary data had collected from selected consumers on Simple Random sampling
techniques and online and offline Retail outlets and by administering the structured
questionnaires.

SAMPLING SIZE:

The sampling size will be 100 respondents using online and offline shopping services.

LIMITATIONS OF THE STUDY:

1. The study would limit up to randomly selected 150 respondents.

2. People using offline and online shopping will be only be considered in the study.
3. The study confined to retail shops in Ahmedabad City. The inference drawn purely on the
basis of respondent responses in the study area.

Suggestions
: On the basis of the findings of my research I would like to give the following
suggestions:

E-commerce websites should come up with lucrative offers on quarterly basis to

lure girls since they shop more (compared to boys)during this period.
Range and Availability of products in the price range of Rs1000-5000 and Rs500-
1000 should be given special consideration as 90% of shoppers fall in this
category.

E-tailing websites should also work considerably in building trust and friendly
relationship with customers by coming with better privacy policies as this would
encourage shoppers to use other mode of payments like debit cards, credit cards
etc as well.
Around 70% of online shoppers prefer shopping apps over shopping websites or
browsers so e-tailers should come up with ideas to improve the shopping
experience using browsers.(flipkart has already made an entry with flipkart lite)

E-commerce sites should take the privacy issue really serious as well as the
deliverance of authentic products with better return policies to make themselves
credible before the eyes of customers.

Conclusion
• As for traditional shopping buyers, the biggest disadvantage is most are
found lazy to leave the house despite their need to purchase products and
services.
• More people accept both traditional and online shopping methods
compared to those who chose either one. After over a year of being in the
COVID-19 pandemic, citizens of India start to shop more online while
maintaining the practice of buying products and services face to face.
 • However, in the comparison of respondents who chose only either one
method to shop, respondents who prefer to shop traditionally occupies a
higher percentage than those who prefer shopping online as many of them
believe that they can confirm the product’s quality only when they can
touch, see, and try the products.

Findings
70% people shifted to online shopping within one month of
outbreak.
56 % people preferred online shopping
55% people shopped once in a month
Only 13% do not shop online
Time to acquire the product and fraudulent behaviour was the
most influencing factor whether to buy product online
77% people shop using the smartphones due to its
convenience.