E-commerce project in brief pdf

1. The Bhawanipur Education Society College Rise of E-Commerce- The Indian

Scenario The Success Story of Flipkart and Online Shopping By:-
Sanjeet Singh Dhanjal
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2. Rise of E-Commerce- The Indian Scenario Page 1 of 37 PROJECT REPORT
(Submitted for the Degree of B.com Honours in Accounting & Finance
under the University of Calcutta) RISE OF E-COMMERCE- THE INDIAN
SCENARIO SUBMITTED BY Sanjeet Singh Dhanjal Registration No.
017-1121-0965-12 Studying in The Bhawanipur Education Society College
College Roll No. 0101121115 SUPERVISED BY Prof. Supriya Pincha for
The Bhawanipur Education Society College Submitted on the month of February
of the year 2015
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3. Rise of E-Commerce- The Indian Scenario Page 2 of 37

Table of Contents
Chapter-I
Introduction................................................................................................. 4
Literature Review........................................................................................ 6
Methodology...............................................................................................11
Objectives of the Study..……………… ……………………………………...11
Scope of the Study……………………………………………..………………12
Sample Size………………………………………….………………………….13
Limitations of the Study………………………………………………………..14
Chapter-II
Conceptual Framework/ National/ International Scenario .. ………………15
Flipkart Success Story................................................................................15
Regional Market ................................................................................... 15
Flipkart Marketing Strategy………………………………………………….19
Future RoadMap…………………………..…………………………………19
Chapter-III
Presentation of Data & Analysis………………………………………..20
Findings…………………..29
Chapter-IV
Recomendations…………………………………………………………31
Conclusion………………………………………………………………..32
Bibliography/ References……………………………………………………..33
Questionnaires………………………………………………………………….34

Annexure
I-A...................................................................................................37 Annexure
I-B……………………………………………………………………...............38
4.

ACKNOWLEDGEMENT
I take this opportunity to thank The Bhawanipur Education
Society College for the 3 amazing years of my college life and being the best
institution for pursuing the degree of B.com (Hons.) Special thanks to my
supervisor in charge Prof. Supriya Pincha for guiding me in making the project
whole and complete and also in supporting me throughout the process. Also I
would like to thank my friends and family members who were supportive and
helpful in preparing this project work at various stages. Will always remember
making this project work and the knowledge I gained while doing so. Concluding
this with a heartiest thanks to my college and its
faculty members for always being there when the students needed it. Thank you.

Introduction What is E-Commerce ? Electronic commerce, commonly known as E-

commerce or eCommerce, is trading in products or services using computer
networks, such as the Internet. 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. Modern
electronic commerce typically uses the World Wide Web for at least one part of
the transaction's life cycle, although it may also use other technologies such as e-
mail. E-commerce businesses may employ some or all of the following: Online
shopping web sites for retail sales direct to consumers Providing or participating in
online marketplaces, which process third-party business-to-consumer or consumer-
to-consumer sales Business-to-business buying and selling Gathering and using
demographic data through web contacts and social media Business-to-business
electronic data interchange Marketing to prospective and established customers by
e-mail or fax (for example, with newsletters) Engaging in pretail for launching new
products and services According to an Associated Chambers of Commerce and
Industry of India (ASSOCHAM) survey, the online retail market in India may
grow to Rs.70 billion (over $1.30 billion) by 2015 from Rs.20 billion in 2011 as
internet access improves India has always been a land of great potential. The
socioeconomic condition of the country has improved many folds after
independence and India is now emerging as one of the leading countries in the
world. Moreover with a population of over 100 crore and a growth rate of above
6%, it can be compared to a marketing giant. Hence it can be well judged why
online shopping in India is rising at fast pace over the days. As technology is
spreading to the remotest villages and many job opportunities are presenting
themselves to the unemployed youth more and more people are gaining awareness
and the money to purchase expensive and luxurious items over the internet. Online
Shopping Which company flashes in your mind first? Flipkart, Amazon, Snapdeal
etc. Well, let us talk about the home-grown, Indian, e-commerce site ‘Flipkart’,
also considered as the Amazon of India A Company which started with just 4 lakhs
is now worth over more than 2000 crores According to the data Flipkart has
provided to Ministry of Corporate Affairs; the company’s revenue in 2011–12 was
$77 million (Rs. 500 crore). For the fiscal 2012–13, their revenue is estimated to be
$350 million. With this huge success flipkart is becoming the fate of online retail
in India. This paper attempts to throw light on the growth of online retail business
in India with special reference to flipkart (analyzing the consumer feedback about
the online business model of flipkart) The invention has opened a whole new world
of possibilities for us. Not only we can communicate with the person we love
within moments but nowadays many vital tasks like jobs, shopping, socializing and
many others can be done easily at the convenience of our
homes. The concept of online shopping is a relatively new one and it enables us to
buy all our favourite goods and accessories over the internet. This not only saves
time but also we can get the products at a much discounted price and that too at our
homes. There are many online stores that have developed in recent times like
letsshop.in, flipcart.com and many others. These stores host a wide range of
products like bags, shoes, books, gadgets and many others. To purchase any
product you have to visit the site and click on the product that you would like to
purchase and the product will be delivered to you within a week maximum. It’s
that simple.
Literature Review “In online buying, the rate of diffusion and adoption of the
online buying amongst consumers is still relatively low in India. In view of above
problem an empirical study of online buying behaviour was undertaken. Base on
literature review, four predominant psychographic parameters namely, attitude,
motivation, personality and trust were studied with respect to online
buying. The online buying decision process models based on all the four
parameters were designed after statistical analysis. These models were
integrated with business intelligence, knowledge management and data mining to
design Behavioural Business Intelligence framework with a cohesive
view of online buyer behaviour. For better understanding the factors of internet and
consumer shopping behaviour towards internet shopping, this
chapter would provide academic research reviews and relative ideas expressed in
the literature that associated with this subject. Furthermore, a number
of hypotheses will be tested to answer the research questions that mentioned
already in the introduction. Due to the recent research shows the internet
shopping becomes a full and effective business model, therefore there are several
studies that already investigated more or less related on internet
shopping and consumer behaviour. In the following chapter, some point of view
will be taken from literatures, and needs careful review to achieve
them as the basis of the subsequent research investigation.” -Archana Shrivastava
& Ujwal Lanjewar (2011) Advantages of Online Shopping 1) Saves
time: Online shopping saves us a huge amount of time. We can buy any of our
favourite products from our home only and need not visit the malls. 2)
Cost Effective: The products can be bought at a much discounted rate by shopping
online. This is because online stores offer huge discounts and
lucrative offers on the purchase of each and every product. This is done to attract
more customers from all over the world. 3) Other Facilities: The
products are freely shipped and delivered at our doorstep without any extra charge.
Moreover if we find them not suited to our purpose we can return
them without purchasing any time. Apart from that if we do purchase these items
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8. Rise of E-Commerce- The Indian Scenario Page 7 of 37 and find them to be
defective then we can return them within fourteen days of the purchase
and we will get all the money back. 4) Shop any store worldwide: Never again be
limited geographically. Many merchants do not have physical stores
in every state, and certainly not in every country. When you shop online, you can
browse through stores around the block or around the globe! Discover
amazing new items from exotic places that you perhaps have never even heard of
before. 5) Ship your gifts directly: When you order online, you can
send gifts or even have gift baskets delivered directly to their recipient. This means
you can avoid long waits at the post office and you can get your gift
delivered faster. Many stores even offer customized cards and gift wrapping to go
along with your present. 6) Find items you might not see in stores:
Since brick and mortar stores are limited on space, merchants usually don’t carry
all of the items they sell in store. Online, you can find their entire
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inventory, along with many choices of colors, styles, and even customization
options. Shop on the Internet so you can find exactly what you want. 7)
No more waiting in line and pushing through crowds: Malls and retail stores can be
chaotic, especially during a big sale or a holiday season. Don’t
stress yourself out, just shop from home! You’ll never have to stand in a long
checkout line or weave your way through crowds just to get the items you
want. Shop online and you can stay in the comfort of your own home 8) The
Internet never closes: You can shop anytime online 24 hours a day 7 days
a week. Online stores never close, so you never have to worry about making time
to go to the store. Online shopping is perfect for night owls or anyone
who is just too busy to make a trip to the store. The act of buying things from
websites and not shops certainly took a long time to blend in with the
shopping mind-set of the Indian customer. The current scenario is one, which is
witnessing a change in this mind-set. There have been many websites
that have been launched with the objective of selling products to customers.
9. Rise of E-Commerce- The Indian Scenario Page 8 of 37 Products belonging to
various product sectors are now being sold on these websites and the
range is quite a large one right from expensive laptops and LCD televisions to
mundane grocery items. The frequency of B2C transactions has certainly
increased over time in the Indian subcontinent. There are many shopping websites,
which are now witnessing a decisive surge in traffic (this statement
is being made while keeping in view the performance of shopping websites in the
last five years). With an increase in the number of persons visiting
these websites, they have also become ideal platforms for advertisements and
banners of different brands. Online shopping in India, is certainly
witnessing a period, which entails things such as rising number of online sales and
fantastic revenue and profit figures. There have been many products,
which have caught the fancy of online shoppers and one of them is a handset.
Handsets, irrespective of the brand, are being sold in magnanimous
numbers on different websites. All the major market players in the
telecommunications sector, FMCG sector, services, mobile sector etc. are doing
quite well with the sales that they are getting from this online platform. The money
that is earned is being put to good use by using it in the betterment
of the respective R&D departments. Apart, from the businesses doing well, the
customers are also given many fantastic features. Some of them include
things such as free gifts with every online purchase while some involve special
offers that are quite economical and affordable.
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10. Rise of E-Commerce- The Indian Scenario Page 9 of 37 Growth of online
retailing in India India e-commerce has grown at a compounded annual
growth rate of 30% since FY09, and is expected to be $18 billion (around Rs
1,116,00crore) opportunity by FY15. The findings part of report: Indian
Ecommerce-Tip of the Iceberg, by Macquire Equities Research back this high
growth rate on rising internet population, over 300 million middle class
population, increasing mobile penetration and low levels of e-commerce activity.
“Compared to the west, India’s ecommerce industry is still in its
infancy. E- commerce contributes only 0.6% of the country’s GDP vs 1-3% for
other countries, with only 12% of India’s online population transacting
online vs 64% for the US and over 50% for China,” said AtulSoni and NitinMohta
in the report. This growth will further be accentuated by companies
going in for public listing. In the Indian context, only two internet-based
companies are listed on the markets, including Infoedge, which runs India’s
largest job portal (naukri.com), and justdial, which is India’s largest local search
site. The nature of Indian e-commerce is also different. Travel has the
lion’s share of 71% of Indian e-commerce, but e-tailing has grown the fastest, at a
59% CAGR between FY09-13E, to reach 16% market share.
Compared to the west, India’s ecommerce industry is still in its infancy, but we
believe that it may become a bigger part of the entire retail universe
than in the west. “We believe that for many young Indians, Online shopping may
become their primary way to shop throughout their lives. Whenever
significant opportunities such as e- commerce present themselves, many market
participants compete aggressively to try to emerge as undisputed
leaders to gain brand recognition and customer loyalty, and oftentimes these
players change their business model along the way to grow with the
market,” said the report.
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11. Rise of E-Commerce- The Indian Scenario Page 10 of 37 METHODOLOGY
Research Design The type of design being used for making this
project is Meta-Analysis Design. Meta-analysis is an analytical methodology
designed to systematically evaluate and summarize the results from a
number of individual studies, thereby, increasing the overall sample size and the
ability of the researcher to study effects of interest. Statement of the
Problem The study is being conducted for Online Shopping in Kankurgachi Area
of Kolkata City only, to find out the customer preferences in choosing
Flipkart. It is required to find out the preferences based on certain aspects (Income,
levels selection of products, satisfaction level of customers).
Objectives To study the growth of online retail business in India. To explore the
online business of model of Flipkart. To analyse the Customer
Feedback of Flipkart over other available online retail stores in India. To find out
the mode by which the customer became aware of Flipkart To
reveal the satisfaction level of the consumer
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12. Rise of E-Commerce- The Indian Scenario Page 11 of 37 Need of the Project
Nowadays retail stores are facing more competition in retailing
business. Good store design increase the visiting of more customers in to the store
and increase the store goodwill, and price also plays major factor to
use the customer giving preference and selection of the store. And as industry
research has shown, there is much need to know the customer
expectations, customer preferences and their store choice’s(features) and we will
find out solutions for designing effective store which will getting
more customers and getting more profits. Scope of the Study Finding out the
strengths and weaknesses of Flipkart Finding the number of future
purchases Finding the customer satisfaction and their means of awareness of
Flipkart Finding the perception among the competitors Finding
out the perception of the customers about Flipkart Data Collection Method Primary
Data Primary data was collected through the survey method
(questionnaire observation and interview) from the respondents. Observations
regarding the rise of online shopping trends. The questionnaire aimed at
studying the customers preference and feedback for
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13. Rise of E-Commerce- The Indian Scenario Page 12 of 37 the online shopping
sites flipkart. Unstructured interview was conducted for some of the
respondents to find out the drawbacks of the online model of flipkart Secondary
Data Secondary data was collected thorough various websites and
articles available on the internet. Sampling Size Sample size: For the research the
sample size of:- 100 respondents were taken out of which 80% of
the population are frequent users of online shopping. The geographical area is
limited within an area of Kankurgachi, Kolkata. Sampling Procedure
To obtain the representative sample, a non-probability sample can be drawn. In this
study the method of selecting samples is Convenience sampling.
Tools The tools used for analyzing data are rating method; graphs, pie charts etc.
Questionnaire is distributed to the individual respondents and special
care has been taken to make him/her feel comfortable so that, he/she could answer
all the questions. This method is followed to get unbiased answers.
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14. Rise of E-Commerce- The Indian Scenario Page 13 of 37 Technique of
Analysis The data collected from the customer are transcripted to the
worksheet in the form of tally bars and analyzed by statistical tools by drawing
tables and graphs, inferences were drawn on a marketing concept and
conversation. Based on the marketing concepts findings of the research were
driven and recommendations are made. Limitation of the Study It is not
possible for any market study to make it accurate due to many hurdles in the
collection and computation of data. Some limitations of the study are
listed below The sampling frame to conduct the study has been restricted to area
near Kankurgachi, Kolkata. Respondents show reluctance
towards giving correct information. Findings of the study are based on the
assumption that respondents have disclosed in the questionnaire. Time
was a major constraint.
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15. Rise of E-Commerce- The Indian Scenario Page 14 of 37 Conceptual
Framework/ National and International Scenario Flipkart Success Story When
they were starting out, Sachin Bansal and Binny Bansal would get on a motorbike
to make the rounds of book warehouses across Bangalore, ride back
to their two-bedroom apartment and package orders for online customers. It was a
humble beginning for two former software developers for
Amazon.com who set out in 2007 to beat their one-time employer at its own game
long before Amazon entered India. The firm's success mantra:
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employing technology for speedy and accurate delivery to customers. Sachin and
Binny Bansal co-founded the e-commerce site in 2007 after resigning
from their jobs at Amazon India. With Rs. 4 lakh in seed capital and just the two of
them as employees, they were pouncing on a demand-supply gap in
online bookselling. The duo initially did everything, from programming, forging
supplier relationships and book procurement to logistics, packing and
shipping. “It was a minimal start and a case of figuring out things as they came,”
Sachin recalls. “We started earning customer goodwill, and what
followed was phenomenal word-of-mouth publicity. We became profitable in six
months.” In 2007, Flipkart started by offering 50,000 titles. Today, it
offers four million. It has 500,000 registered users, and has sold 750,000 books so
far. Half the buyers have returned to buy a second book. There are
websites that offer better discounts, but Flipkart plans to focus on expanding
logistics and adding value. “For now, we are not joining the pricing game.
The discounts and free shipping are possible because of our sales volumes, and low
expenses on overheads like rent — all of which we are passing on
to the customer.” The cash-on-
16. Rise of E-Commerce- The Indian Scenario Page 15 of 37 delivery (COD)
scheme for those who hesitate to pay online owing to security fears now
brings in 30 per cent of the revenue. Flipkart also continually tweaks its website,
for that is where customer satisfaction first meets the technology. A
preview of select pages from books will soon be up. Users have been demanding a
loyalty scheme, and that too is being worked out. A better search
engine, a simpler payment mechanism…the wish list stretches. When you browse
the website, add items to the shopping cart, and confirm your order,
you trigger Flipkart's automated communication system. It reads your postal
address code and routes the purchase order to one of the company's four
warehouses — in Mumbai, Delhi, Kolkata and Bangalore. If the book is not in
stock, the nearest supplier is automatically queried. When the book is
available, it is packed and picked up by a courier company within four to 24 hours.
The book arrives at your address within one to three days.
According to Sachin, the company is “aiming at 24-hour delivery of most books
because that's what the customer seeks. In the future, a customer can
order a book in the morning and get it by evening.” Regional Market The company
is also busy switching to selling music, movies, mobile phones and
game, besides books. Flipkart is also deepening its presence in book selling by
targeting the regional language book market, which has largely been
untapped. “More books are read in regional languages. It is tough to get a book
supplier on board, but once that is in place, this business will further
explode,” says Sachin. Things are easier said than done! To realize our dreams and
that also in such a grand manner is really a tough task. The founders
of Flipkart have probably conquered their dreams with the amazing success of
Flipkart. Flipkart is something which has really opened up the Indian
e-commerce market and that also in a big way. Flipkart began with selling books,
since books are easy to procure, target market which reads books is in
abundance, books provide more margin, are easy to pack and deliver, do not get
damaged in transit and most importantly books are not very expensive,
16.
17. Rise of E-Commerce- The Indian Scenario Page 16 of 37 so the amount of
money a customer has to spend to try out one's service for one time is
very minimal. Flipkart sold only books for the first two years. Flipkart started with
the consignment model (procurement based on demand) i.e. they
had ties with 2 distributors in Bangalore, whenever a customer ordered a book,
they used to personally procure the book from the dealer, pack the book
in their office and then courier the same. In the initial months the founder's
personal cell numbers used to be the customer support numbers. So, in the
start they tried their best to provide good service, focus on the website - easy to
browse and order and hassle-free, and strove hard to resolve any
customer issues. Since there were not any established players in the market, this
allowed them a lot of space to grow, and they did in fact grew very
rapidly. The company started from 2 employees and now has around 4500
employees. Flipkart started with consignment model as discussed above,
since most of the customer issues like delivery delays etc. result from procurement
model, the company started opening its own warehouses as it started
getting more investments. The company opened its first warehouse in Bangalore
and later on opened warehouses in Delhi, Kolkata and Mumbai. Today
the company works with more than500 suppliers. As on date more than 80% orders
of Flipkart are handled via warehouses which helps in quick and
efficient service. A humble beginning from books, Flipkart now has a gamut of
products ranging from: Cell phones, laptops, computers, cameras,
games, music, audio players, TV's, healthcare products, washing machines etc. etc.
Still, Flipkart derives around 50% of its revenue from selling books
online. Flipkart is the Indian market leader in selling books both offline and online,
it enjoys an online share of around 80%. The electronic items have
a large number of players like Naaptol, Letsbuy, Indiaplaza, Tradus, Infibeam,
Yebhi etc. The electronic market share is distributed among them in
different unknown proportions. India has around 13.5 crore internet users today
where as the number of homes with Cable and Satellite (C&S)
television is 10.5 crore. The expected internet users will reach a figure of 30 crore
by 2014 and C&S homes are expected to be 14 crore by 2014. Thus
India has a tremendous internet growth and with the customers getting accustomed
to e-
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18. Rise of E-Commerce- The Indian Scenario Page 17 of 37 commerce, the future
of e-commerce sector is definitely rosy. An approximated 25 lac
people have transacted online this year, the number is all set to increase with time.
Also to mention most of the Flipkart customers use internet from
PC's/Laptops to order goods. The use of mobile internet is very less at the moment,
but with the advent of smart phones the use of mobile internet for
e-commerce transactions will soar with time. India has 8 crore mobile net users at
the moment, the number is expected to swell to 22.5 crore by 2014.
Factors that lead to the grand success of Flipkart 1) They always strove to provide
great customer service. Flipkart customers are happier than with
some of their competitors like Tradus.in, Indiaplaza.com; I have myself
experienced this couple of times. 2) Their website is great, easy to use, easy to
browse through the products, add products to wish list or to a cart, get product
reviews and opinions, pre-order products, make payments using different
methods, in short hassle- free and convenient. 3) A very important point is that
they introduced the option of cash on delivery and card on delivery, this
way people demonstrated more confidence in buying products. An interesting is
that fact, today Flipkart sells 20 products/min and has a massive
customer base, still more than 60% of the Flipkart's customers use Cash on
Delivery and card on delivery methods. This is because of two reasons, one
is many people do not know how to make payments online. And secondly people
do not have immense trust in e-commerce in India. Flipkart also
provides a 30 day replacement guarantee on its products and EMI options to its
customers for making payments. 4) Flipkart's reason of success is that it
has a great customer retention rate, it has around 15 lac individual customers and
more than 70% customers are repeat customers i.e. they shop various
times each year. The company targets to have a customer base of 1 crore by 2015.
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19. Rise of E-Commerce- The Indian Scenario Page 18 of 37 Flipkart Marketing
Strategy Flipkart has been mostly marketed by word of mouth
advertising. Customer satisfaction has been their best marketing medium. Flipkart
very wisely used SEO (Search Engine Optimization) and Google
Ad-words as the marketing tools to have a far reach in the online world.
Flipkart.com official Facebook page has close to 9 lac 'likes'. Flipkart recently
launched a series of 3 ads with the tag line - "No Kidding No worries". Kids were
used to create the adverts to send out the message - if a kid can do it,
you can also do it. The message is very clear to make people more comfortable
with Flipkart, to generate a great customer relationship and loyalty on
the basis of great product prices and excellent customer service. All in all to create
a great customer experience. Future Road Map Going forward
electronics will be given more focus. Flipkart has recently added a string of
electronic items like calculators, water purifiers, microwave ovens,
washing machines, dish washers, vacuum cleaners etc. Flipkart has opened a music
store which sells CD's and DVD's of movies' music releases and
music albums. Flipkart has also acquired Bollywood movie content from Chakpak.
Since digital media in going to rise in near future, Flipkart is geared
up for the same. Soon it will start offering digital content like movies and songs
online, as in the customers can pay and stream online digital content.
Flipkart will also provide e-books very soon.
19.
20. Rise of E-Commerce- The Indian Scenario Page 19 of 37 Presentation of Data
&Analysis On the basis of the answers received from the annexed
questionnaire the following analysis has been made. Figure 1 The above Figure 1,
shows the Age Group and Gender of the number of customers who
20.