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A COMPARATIVE STUDY BETWEEN FLIPKART AND AMAZON – AN OVERVIEW

1
Dr.P. Sri Jothi and 2Sureka D
1
Associate Professor and Head and 2Research Scholar
1&2
Department of Visual Communication, Vels Institute of Science Technology and Advanced Studies
Chennai, Tamil Nadu, India

ABSTRACT
Internet became more powerful and basic tool for every person’s need and the way people work. By integrating various online
information management tools using Internet, various innovative companies have set up systems for taking customer orders, facilitate
making of payments, customer service, collection of marketing data, and online feedback respectively. These activities have collectively
known as e-commerce or Internet commerce. Online shopping made so easy for everyone with their product variations and simple way
to buy things. An attempt has been made to critically examine various corporate and business level strategies of two big e-tailers and
those are Flipkart and Amazon. Comparison have been done considering e-commerce challenges, their business model, funding, revenue
generation, growth, survival strategies, Shoppers online shopping experience, value added differentiation and product offerings. Both
these big players made their own mark in India, but who is going to be ultimate winner or be the top one is going to be. A comparative
study of Flipkart.com with one of the close competitors Amazon.com delivers the information about the different strategies to succeed
in e-commerce market and different opportunities available in India.

Keywords: E-commerce, E-Tailers, Online Shopping, Shopping Experiences, Strategies.

1. INTRODUCTION
Online shopping is basically a process of selling and buying of goods and services on World Wide Web. As (Forsythe and
Shi, 2003) explains ”Internet shopping has become the fastest growing use of the Internet; Most online consumers, however, use
information gathered online to make purchases off-line”.

1.1 FUTURE OF ONLINE SHOPPING

People use the Internet to shop online for mobile phones, laptops and other consumergoods. If the Internet is anything
to go by, India's technological and economic growth has moved into the top gear. With more India's online shopping registering a
phenomenal 100 per cent annual growth, many retail chains and consumer durable companies are joining the Web bandwagon
to tap the e-shopping market. The online shopping industry in India is fast catching on, not just in the larger metros but also in the
smaller cities. According to Google, India has more than 100 million Internet users, out of which around half opt for online purchases
and the number is growing every year. With such a large market size, companies, right from retail shops to consumer goods, are
entering the Web space to attract potential customers. Even traditional retailers like Shoppers Stop, Westside and Pantaloons
are looking at the online shopping space for the growth.

1.2 OBJECTIVES
To compare the customer satisfaction level of Amazon and Flipkart customers and the aspects of online shopping provider which
satisfies the customers.
To identify the respondents perception towards Amazon and Flipkart online shopping website.
 To understand tactics and methods those are used by e-commerce players to grab the customers in India.
 To know how consumers are evaluating e-commerce sites for their purchases.
 To study complexities and barriers those are there in between e-commerce sites and customers.
To investigate the major factors that impact customer satisfaction towards Amazon and Flipkart.
To know about online consumer’s buying behaviors towards online shopping in Flipkart and amazon among users in Chennai city.

1.3 SCOPE OF THE STUDY

In India e-commerce were valuated like a giant with huge opportunity and success rate. There are so many big and small players
in market. Are they really going to sustain in market for a long time and is there success rate for them. What are customers
expecting from them and are they ready to fulfill their requirements. The study is to understand both parties’ requirements and
procedures The study was done to understand the customers and e-tailers perspective towards their motto of e-commerce.

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 ISSN:2277-7881; IMPACT FACTOR :8.017(2022); IC VALUE:5.16; ISI VALUE:2.286
Peer Reviewed and Refereed Journal: VOLUME:11, ISSUE:9(1), September: 2022
Online Copy of Article Publication Available (2022 Issues)
Scopus Review ID: A2B96D3ACF3FEA2A
Cover Page Article Received: 2nd September 2022
Publication Date:10th October 2022
DOI: http://ijmer.in.doi./2022/11.09.05 Publisher: Sucharitha Publication, India
www.ijmer.in Digital Certificate of Publication: www.ijmer.in/pdf/e-CertificateofPublication-IJMER.pdf

2. REVIEW OF LITERATURE
Sharma and Mittal (2009) in their study “Prospects of e-commerce in India”, mentions that India is showing tremendous growth
in the e-commerce. Undoubtedly, with the middle class of 288 million people, online shopping shows unlimited potential in India. The
real estate costs are touching the sky. Today ecommerce has become an integral part of our daily life. There are websites providing any
number of goods and services. The e-commerce portals provide goods and services in a variety of categories. To name a few: apparel
and accessories for men and women, health and beauty products, books and magazines, computers and peripherals, vehicles, software,
consumer electronics, household appliances, jewelry, audio, video, entertainment, goods, gift articles, real estate and services. Ashish
Gupta, senior managing director of Helion venture partners and one of the first backers of Flipkart as an angel investor: “Flipkart has
been absorbing companies that have some potential. In that process, some of the bets will go wrong, for sure. But that is par for the
course. The company (Flipkart) is consciously taking bets that allow it to either grow or eliminate competition that reduces marketing
spend and improves economics.”

Miyazaki and Fernandez (2001) substantiated that the prior experience was found to affect the intention and behavior
significantly and in a variety of ways. The results of this study imply that the technology acceptance model should be applied to electronic
commerce research with caution. In order to develop a successful and profitable web shop,understanding customers' needs is essential.
It has to be ensured that products are as cheap in a web shop as purchased from traditional channels. According to Sharma and Mittal
(2009) in their study “prospects of e-commerce in India”, mentions that India is showing tremendous growth in the e-commerce
Undoubtedly, with the middle class of 288 million people, online shopping shows unlimited potential in India. The real estate costs are
touching the sky. Today e-commerce has become an integral part of our daily life. There are websites providing any number of goods
and services.

The e-commerce portals provide goods and services in a variety of categories. To name a few: apparel and accessories for men
and women, health and beauty products, books and magazines, computers and peripherals, vehicles, software, consumer electronics,
household appliances, jewelry, audio, video, entertainment, goods, gift articles, real estate and services. Samadi(2010) compared the
perceived risk level between internet and store shopping, and revisit the relationships among past positive experience, perceived risk
level, and future purchase intention within the internet shopping environment.

Gangeshwar (2013),” e-commerce or internet marketing: a business review from Indian context”, international journal of u-
and e- service, science and technology. Concluded that the e-commerce has a very bright future in India although security, privacy and
dependency on technology are some of the drawbacks of e-commerce but still there is a bright future to e-commerce.

Vijay G is one of the world’s leading experts on strategy and innovation. Govindarajan, coxe distinguished professor at
Dartmouth college’s tuck school of business and Marvin Bower fellow at Harvard business school, is also a best-selling author. The
biggest opportunity in India is e-commerce. Why? Three important factors will drive this: 1) mobile phone penetration; 2) a young
demographic that is used to ordering things using the mobile platform; 3) growth of consumerism with more Indians with higher
disposable income. We will see many new innovative business models in the e-commerce space in the next five years. No doubt we will
see new innovative high-growth companies-Indian equivalents of Alibaba.

Martin (1999),”Finding the source of Amazon.com: examining the hype of the earth’s biggest book store”, Center for
Advanced Spatial Analysis. Concluded that Amazon.com has been one of the most promising E-commerce companies and has
grown rapidly by providing quality service

Ashish P (2014),“An Online Shopping Change the Traditional Path of Consumer Purchasing” concluded in his research
article that a successful web store is not the just a good looking website with the dynamic technical features but is also emphasis
on building the relationship with customers with making money. The success of any e-tailer company in India is depending upon its
popularity, its branding image, its unique & fair policies, and its customer relations etc.

Francis S and Habeeb S (2016),“A Comparative study between Flipkart and Amazon India”, conducted a study to critically
examine various corporate and business level strategies of two big e-tailers and those are Flipkart and Amazon. Comparison have been
done considering e-commerce challenges, their business model, funding, revenue generation, growth, survival strategies, Shoppers’
online shopping experience, value added differentiation, and product offerings. Both these big players made their own mark in India.
The survey ended with Amazon as the winner, which satisfied the customer in all the aspects.

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 ISSN:2277-7881; IMPACT FACTOR :8.017(2022); IC VALUE:5.16; ISI VALUE:2.286
Peer Reviewed and Refereed Journal: VOLUME:11, ISSUE:9(1), September: 2022
Online Copy of Article Publication Available (2022 Issues)
Scopus Review ID: A2B96D3ACF3FEA2A
Cover Page Article Received: 2nd September 2022
Publication Date:10th October 2022
DOI: http://ijmer.in.doi./2022/11.09.05 Publisher: Sucharitha Publication, India
www.ijmer.in Digital Certificate of Publication: www.ijmer.in/pdf/e-CertificateofPublication-IJMER.pdf

3. METHODOLOGY
The study sought to determine ‘MODERN TRENDS, CHALLENGES AND OPPORTUNITY OF E-COMMERCE A
COMPARATIVE STUDY BETWEEN FLIPKART AND AMAZON – AN OVERVIEW – A special reference to Chennai District.
The study is based on systematic survey research method. The research attempts to formulate the problem of evaluating E-COMMERCE
BUSINESS following are the parameters used for the survey: E-commerce, Growth, Online, India, Internet, and Business

Research Design
 Descriptive Research Design has been used for this research.
 Quantitative study with a descriptive design is used in this study, as the main aim is to understand The Consumer perspective
MODERN TRENDS, CHALLENGES AND OPPORTUNITY OF E-COMMERCE A COMPARATIVE STUDY BETWEEN
FLIPKART AND AMAZON – AN OVERVIEW

Method of Data Collection

The researcher has collected primary data from respondent reside in Chennai city who are aware of e-commerce; researcher
has collected the data by the respondents with a structured questionnaire.

Sampling Plan
1 Sample size 200 samples
2 Sampling Units Respondents from different background i.e. students,
businessman, professional, service employees,
housewives etc.
3 Sample Methods Non Probability Convenience Method
4 Sample Area Different Areas Chennai City

4. DATA ANALYSIS
Gender Deference

Chart No: 1

Age

Chart No: 2

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www.ijmer.in Digital Certificate of Publication: www.ijmer.in/pdf/e-CertificateofPublication-IJMER.pdf

The above Chart No:1 provides the empirical findings gleaned from the collected data. It provides demographic information of
the respondents and the statistical analysis of the information collected from them. This is followed by the interpretation and discussion
about our findings. The above Chart shows that Total number of respondents 59.7 % of people are in the age group of 20-30 and 34.3%
of people are in the age group of 30-40. 6% of people are in the age group of Above 40 We are having highest respondents who do
online shopping are 20-30age group and almost all those belongs to student category. At the same time 34.3% of age group 30- 40 are
utilizing online shopping well. All those people are attracted to e-commerce sites which are offering wide range of products to
everywhere and also with their services. Another demographic factor we considered is gender. Female respondents and Male respondents
are higher both respondents shows Equal in the Above chart No:2

Marital Status

Chart No: 3

The above Chart No:3shows that Total number of respondents 57.95% of the respondents are Single and 42.1% of people are
married
Education

Chart No: 4

The above Chart No:4 shows that Total number of respondents 66% of the respondents are Post Graduates and 32.5% of
people are Under Graduates Other are lesser than 5%

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Online Copy of Article Publication Available (2022 Issues)
Scopus Review ID: A2B96D3ACF3FEA2A
Cover Page Article Received: 2nd September 2022
Publication Date:10th October 2022
DOI: http://ijmer.in.doi./2022/11.09.05 Publisher: Sucharitha Publication, India
www.ijmer.in Digital Certificate of Publication: www.ijmer.in/pdf/e-CertificateofPublication-IJMER.pdf

Online Purchase Experience

Chart No: 5

The above Chart No:5shows that Total number of respondents 64.7% of the respondents have 5-10 years’ Experience. 24.9%
of people are Below 5 years and 10.4% of people are Above 10 Years of Experience

Nature of Occupation

Chart No: 6

The above Chart No:6shows that Total number of respondents69.5% of the respondents are IT PROFESSIONALS.17.5.%
of people are doing business and 12% of people are in teaching Professionals

Monthly Income

Chart No: 7

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Online Copy of Article Publication Available (2022 Issues)
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The above Chart No:7 shows that Total number of respondents had 68.2% majority of people monthly income 20,000-30,000
/- 21.9% of people are 10,000-20,000/- 9% of people monthly income are Above 30,000/- Other are lesser than 5%

How often do you shop online

Chart No :8

The above Chart No:8shows that Total number of respondents52.2% are doing shopping once in Two months. 28.4% of people are
frequently doing online shopping.11.4%of people are shop online once in month.8% of people are doing shopping once in month rarely

Favorite site

Chart No:9

The above Chart No:9shows that Total number of respondents50.2% of the respondents are Chosen Flipkart as the favorite
online site. 31.3% of people are chosen Amazon as favorite online site.16.4% of people are chosen Myntra as favorite online site.
Snapdeal lesser than 5%

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www.ijmer.in Digital Certificate of Publication: www.ijmer.in/pdf/e-CertificateofPublication-IJMER.pdf

Payment Method

Chart No:10

E-commerce players have to gain confidence in terms of providing security to customer’s sensitive data. The above Chart
No:10 shows that Total number of respondents51.2% of the respondents are Preferred Credit card. 25.9% of people preferred Debit
card. 22.9% of people are preferred cash on Delivery. We can analyze that cash on delivery is simple and perfect way to customer to
Pay Even delivery boys are Carrying Swipe machines and made more convenient to the customers.

Method Of Choosing

Chart No:11

Which is the perfect way to reach the customers? Or by what basis client is choosing online site for shopping. According to
above chart No:11 respondents are choosing as per Advertisements 59.2% and online review 24.9% also 15.9% of respondents are
choosing e-commerce sites based upon their friend’s suggestions referred by Friends.

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 ISSN:2277-7881; IMPACT FACTOR :8.017(2022); IC VALUE:5.16; ISI VALUE:2.286
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www.ijmer.in Digital Certificate of Publication: www.ijmer.in/pdf/e-CertificateofPublication-IJMER.pdf

Site Suggestion

Chart No:12

From above Chart No:12 we understood that friend’s suggestion is so important while purchasing online or while selecting an
e-commerce site. It is cleared that based upon the respondent’s view which e-commerce site is leading in friends suggestions. 54.2% of
respondents are suggest Flipkart to their friends and family. Amazon is leading in respondent’s suggestion 43.3%. And rests of them
are having very minimum importance and occupation in respondent’s opinion.

Occasions preferred

Chart No:13

E-commerce sites know when to and how to capture customers. The timing of offers in ecommerce sites is just perfect. Even
though people don’t need them they will purchase because of tempting deals in a row. More than 45.3% of people are doing online
shopping, when those e-commerce sites are offering so many exciting deals and offers. All the e-commerce sites are moving their pawns
competitive to each other, which lead customers in confusion. 30.3% of people where preferred to shopping to gift and 20.4% for
festivals occasions

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Online Copy of Article Publication Available (2022 Issues)
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www.ijmer.in Digital Certificate of Publication: www.ijmer.in/pdf/e-CertificateofPublication-IJMER.pdf

COMPARATIVE STUDY BETWEEN FLIPKART AND AMAZON

Service Quality

Figure:1

The first factor is Service Quality, it includes 6 variables (After sales service is not provided, Money back guarantee is not
provided, Difficulty in Returning products, Lack of trust of vendors Transportation charges is costly, Easy to choose the product) in and
it shows in figure: 1explains the variance of Flipkart and Amazon respectively Flipkart has come up with good service Quality

Products Analysis

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Figure:2

The second factor is Products, it includes 6 variables (Quality of Products, Product Collection & Variety, Effective order
matching delivery, Stock availability, Product damages, Satisfaction of Product) and it explains the variance Flipkart and Amazon both
were shows in figure:2 equally come up with the products

Delivery and Order

Figure:3
The Third factor is Delivery and order, it includes 6 variables(Timely Delivery, Easy return policy, Order cancellation procedure, Order
tracking facility, Delivery at remote areas, Quality of product) and it shows in figure:3Amazon come up with Good Delivery and Order

Website Usage

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www.ijmer.in Digital Certificate of Publication: www.ijmer.in/pdf/e-CertificateofPublication-IJMER.pdf

Figure:4

The forth factor is Website usage, it includes 6 variables (Ease of use in mobile platform, Availability of Product Information,
Product and Price, Comparison, Ease of search, Costumer care support) ) and it shows in figure:4both where came up with user friendly
interface comparatively Amazon has updated there UI more user friendly

Payments

Figure:5

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The fifth factor is Payments, it includes 6 variables (Offers and Discounts, Payment facility, Reasonable Price/Value for money,
Cash back offers, Security, Special Price Offer)and it shows in figure:5 comparatively Amazon has easy to pay

KEY FINDINGS
 Consumers of Amazon and Flipkart should be provided with the additional feature of comparing the product prices with other
sites. Online stores should try to give more variety of products with low price.
 As online shopping is considered more convenient for consumer, the higher delivery charge has to be reduced.
 Both the company should concentrate more on pricing of product because, sometimes low quality products are priced higher than
the retail outlets.
 Discounts and offers, free gifts can be made during festival season to attract more rational and new consumers.
 Customers are preferring quality product from e-commerce sites, even it is bit expensive.
 Flipkart is trying very hard to reach the top position but Amazon India is giving very tough competition.
 Amazon is leading in every aspect of survey such as price, preferred and also suggesting to friends.
 Undoubtedly Flipkart and Amazon made their impact on customers very strongly and captured loyal customers. And they are
ready suggesting their online shopping site to rest of their friends.
 Both Flipkart and Amazon India advertisings were very innovative and attractive. Both companies are expending so much money
on advertising and promotions.
 Every age group people are interested in offers, if they are in need or not they want to purchase.
 Amazon has high quality and products variety when compared to Flipkart, with 51% in Service quality of Products.55%
respondents are satisfied with the Timely delivery and Order tracking and payment of Flipkart, which provides the
effective services such as delivery at remote areas and easy return policy
SUGGESTIONS
Through this research Flipkart had come up with all best quality’s but not good enough. There are so many cases where people
felt that packing might have been better than this. Either it may be big or small / expensive or not product has to be treated with care.
Some of the products mostly apparel’s are turning out with original cover of supplier, which shows negligence of them. In this issue
Amazon made a mark among us, because whatever the product is their packing will obviously safe and secure.

CONCLUSION
The study consisted with all the work flows of major e-commerce players in India, Flipkart and Amazon. How they are
performing and how they are running perfectly in the competitive world has been explained. The innovative thinking of them to reach
more and more consumers is appreciable. They increased their network as much as possible with ultimate aim of reaching more and
more customers. They made consumers work easier and more comfortable. In this competitive market one has to be lead and rest will
follow. Based upon consumer’s survey we got our clear winner and it is Amazon. Even though it is an international company it
understood Indians very well and made its roots stronger in India. Flipkart is also giving very tough competition to Amazon even though
it is new company when compared to Amazon. Maybe it takes some time to overcome, but definitely they are doing very well in Indian
e-commerce market. The main task of the consumer perception is to identify the factors influencing the consumers’ needs, wants, values
and personal experience. So, the consumer perception will be affected by their actions and buying activities. The online stores can
increase their reputation by effective marketing strategies like giving physical demonstration videos for goods, on time delivery and
providing variety of products with lower cost as one stop shopping for consumers to widen their base in future. The study consisted with
the aspects in which customers of Flipkart and Amazon are satisfied and the comparison between the Customer satisfactions of both the
sites. The innovative thinking of both online shopping sites to reach more and more consumers is appreciable. They increased their
network as much as possible with ultimate aim of reaching more and more customers. Based upon the Survey we came to know that
both Flipkart and Amazon were more or less equal in satisfying the Consumers. It’s appreciable that they are doing well in E-Commerce
market.

References
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 ISSN:2277-7881; IMPACT FACTOR :8.017(2022); IC VALUE:5.16; ISI VALUE:2.286
Peer Reviewed and Refereed Journal: VOLUME:11, ISSUE:9(1), September: 2022
Online Copy of Article Publication Available (2022 Issues)
Scopus Review ID: A2B96D3ACF3FEA2A
Cover Page Article Received: 2nd September 2022
Publication Date:10th October 2022
DOI: http://ijmer.in.doi./2022/11.09.05 Publisher: Sucharitha Publication, India
www.ijmer.in Digital Certificate of Publication: www.ijmer.in/pdf/e-CertificateofPublication-IJMER.pdf

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