You are on page 1of 8

1

1.0 Introduction
1.1 History of online shopping:
History of Online Shopping starts not so long ago. Tim Berners-Lee created "The World Wide Web Browser" in 1990. In1994 few other developments took place. Online bank, the first of its kind opened this year. Another development was opening of online pizza shop by pizza hut. In the same year Netscape introduced SSL encryption to enable encryption over the data transferred online. This later became the necessity of online shopping. In 1995, Amazon started operation, one of the largest online shopping mall now. Then in 1996 ebay started its online shopping portal. 1998 witnessed use of electronic postage stamps, where people can download and print postal stamps after paying nominal fee. In 1999 the first online shop in UK launched.

1.2 Overview:
Online shopping is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. An online shop, e-shop, e-store, Internet shop, web shop, web store, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping centre. The process is called business-to-consumer (B2C) online shopping.(www.flipkart.com) When a business buys from another business it is called business-to-business (B2B) online shopping. When a consumer buys from another consumer it is called as consumer to consumer(C2C).online shopping.(www.OLX.com) Our generation stands on very cusps of greatest technology revolution that mankind ever faced. Traditionally consumer buys and sells their product and services on various shops and stores. But in todays world Internet is changing the way consumers shop and buy good services, and rapidly evolved into a global phenomenon. Many companies have started using the internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive market. Companies also use the Internet to convey communication and disseminate information, to sell the product, to take feedback and also to conduct satisfaction surveys with customer. The growing use of Internet in India provides a developing prospect for online shopping. If E-marketers know the factors affecting online Indian behavior, and the relationships between these factors and the type of online buyers, then they can further develop their marketing strategies to convert potential customers into active ones, while retaining existing online customers. The ecommerce industry in India is all set to touch Rs. 9210 crore by the end of FY08. (30% jump from Rs 7,080 crore in 07).

1.3 Current status:


In November 2011, 27.2 million online users in India age 15 and older accessed the Retail category from a home or work computer, an increase of 18 percent from the previous year, as consumers continue to turn to the web to shop for and purchase items and retailers continue to increase their online visibility through active marketing campaigns. Analysis of some of the largest Retail subcategories revealed that Coupons was the largest with 7.6 million visitors, an increase of 629 percent from the previous year as consumers rapidly adopt daily deal sites. Consumer Electronics ranked next with 7.1 million visitors growing 12 percent from the previous year, while 5.8 million online users visited Comparison Shopping sites, an increase of 25 percent from the previous year. Amazon Sites led as the top retail destination in India reaching 6.8 million visitors, representing 14.7 percent of the online population. Apple.com Worldwide Sites saw its audience reach 3.4 million visitors, followed by Samsung Group with nearly 2.8 million visitors. Other top retail destinations included Flipkart.com (2.7 million visitors), HomeShop18.com (2.3 million visitors) and Naaptol.com (2.1 million visitors). Top 10 Retail Sites by Unique November Total India Visitors Age 15+ Home/Work Locations Visitors (000) 2011

Total Unique % Reach Visitors (000) Total Internet : Total Audience Retail Amazon Sites Apple.com Worldwide Sites Samsung Group Flipkart.com Homeshop18.com Naaptol.com Bookmyshow.com Myntra.com Priceindia.in Alibaba.com Corporation 46,390 27,171 6,805 3,426 2,759 2,675 2,286 2,145 2,125 2,110 2,047 1,973 100.0% 58.6% 14.7% 7.4% 5.9% 5.8% 4.9% 4.6% 4.6% 4.5% 4.4% 4.3%

1.4 Major Player in online shopping in India

1) Ebay.in Ebay is the leader when it comes to online shopping in India. With just about every thing under the sun, ebay is the best portal for shopping in India. Ebay provides a large number of options for buyers in every category. May it be laptops, music CDs or fitness equipment they have it all.

2) FutureBazaar.com FutureBazaar.com from the Future group which is very successful with its brands like Big Bazaar and Pantaloons is the online shopping site from the group. It is place to find great electronic and fashion deals.

3) HomeShop18.com HomeShop18 comes from the Network18 group and is fast becoming one of the best place to shop online in India. Some products can also bought via the cash on delivery option. It provides free shipping and also has an EMI facility for ICICI Bank card holders with no additional cost.

4) Indiatimes Indiatimes shopping has the widest range of consumer electronic items at lowest prices. The portal is supported by the Times of India group and offers support mostly in the north western part of India.

5)Naaptol Launched in January 2008, Naaptol has grown to become India's leading comparison based social shopping portal, the one-stop destination for all shoppers, merchants and market enthusiasts.

6) Flipkart.com Originally started as books only site it now has a good collection of games and movies among other items. Cash on delivery option can also be availed besides other online payment options. Flipkart.com has now emerged as a major player in the online shopping arena in India. They offer cash on delivery on products of all sizes and amount. Moreover they have now started giving 30 day replacement guarantee which is of utmost use. Specifically when we buy electronic items and other gadget there is always a chance that it might get some problems. Also, as Flipkart themselves acquires products in bulk directly from suppliers and ships items by its own self delivery personnel, for this reason there is a marked difference in the product price at Flipkart.com. Whereas sites such as ebay.in has different small-time sellers that sell their items. Majorly shopping at Flipkart is a great experience and value for money.

2.0 Advantages of online Buying:


The major advantage of online shopping is the convenience it offers. By sitting back at home you can now shop anything from candles to vehicles by several clicks of mouse buttons. The worry you may have on travelling, traffic blocks and parking constraints in real world shopping can be avoided while shopping online. With online shopping, you need not have to worry about weather conditions as well. Another big advantage of online shopping is the flexibility of shopping. Unlike offline shops, online shops have no holidays, closing times or any other problems. You can shop 24hrs a day, 7 days a week and 365 days a year. Is n't that amazing to have a shop open always? One of the advantages of online shopping is the facilities available for product, price comparisons. Since so many companies have come up with the facilities of online shopping, the price comparison and quality comparison of the products and services are possible. Some online malls also provide customer reviews about each product, thus you can easily find out what other customers think about the product or services before buying it. You can efficiently use these facilities to decide whether a product or service is worth the price quoted. If you are lucky you will be also getting amazing offers from different online stores that will effectively reduce the price than buying offline. In short , online shopping offers more convenience and save time in comparison with real - world shopping.

3.0 Future Opportunity:


As rules of the advertising game change rapidly, online or digital marketing market size in India is estimated to touch close to Rs 2,000 crore in the next two years from a Rs 1,400 crore now, say management experts. It is expected that by 2016 modern retail industry in India will be worth US$ 175200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.

4.0 Literature Review:


Electronic commerce commonly known as e-commerce or eCommaerce, consist of the buying and selling of products or services over electronic systems such as the internet and other computer networks. Firms engage in electronic commerce in order to achieve better management of commercial transaction and to increase business efficiency. Electronic services aimed at individual consumers are developing rapidly. Online shopping is small part of e-commerce Shun &Yunjie (2006) in their study showed that there are product types, which are more likely to be sold online such as software, books, electronics and music. Reason for this is that when purchasing these types of products, one does not require personal inspection and most, if not all features, can be outlined in the product description and images. Most products in the mobile phone family belong to this category. According to the recent research on consumer behavior on the Internet users (Cotte, Chowdhury, Ratenshwar& Ricci, 2006), there are four distinct consumer groups with different intentions and motivations: Exploration, Entertainment, Shopping, and Information. Anders Hasslinger; Selma Hodzic; Claudio Opazo (2008-02-01) in their study they showed that developed into a new distribution channel and online transactions are rapidly increasing. This has created a need to understand how the consumer perceives online purchases. The purpose of this dissertation was to examine if there are any particular factors that influence the online consumer. Primary data was collected through a survey that was conducted on students at the University of Kristianstad.Price, Trust and Convenience were identified as important factors. Price was considered to be the most important factor for a majority of the students. Furthermore, three segments were identified, High Spenders, Price Easers and Bargain Seekers. Through these segments we found a variation of the different factors importance and established implications for online book stores. San Francisco, CA 6th October 2009 - the leader in online Customer Experience Management software (CEM), today announced the results of the 5th annual survey of online consumer behavior, commissioned by Tealeaf and conducted by Harris Interactive [results available at www.tealeaf.com/Harris]. The survey found that 48% of U.S. online adults say that they are now conducting more online transactions than they did in the past given the current economic climate.

6 However, 80% of adults who have conducted an online transaction in the past year experience problems when doing so in 2009. Previous Tealeaf surveys have consistently shown that approximately 87% were affected. Bikramjit Rishi (2010) in their study on Online shopping is an innovative option of distribution available in the hands of marketers. It is innovative and creative because marketers can experiment with it in form, content, visibility and availability. In India online shopping is considered as a relevant alternative channel for retailing and it is now an important part of the retail experience. This research study is an empirical study to find out the motivators and decisional influencers of online shopping. The sample has been selected from the youth population as this group of people actually use internet to buy online. The study highlights that reliability; accessibility and convenience are the major motivator factors which motivate the Indian consumer to buy online. Similarly, reluctance and preference are the two decisional factors which influence the decision.

5.0 Rationale of study:


The proposed project study focuses on online shopping current status in and future opportunity in India. In India the user of internet is increasing day to day. The study would attempt to explore and describe various factors which influence the users of India to buy online. This study is conduct for what is current status of online purchasing in India.

6.0 Scope and coverage:


It is aimed to study Indian customer behavior towards buy online. How many users are using internet to buy online shopping. Analyzing the process that the online consumer goes through when deciding and making a purchase over the Internet, shows some factors that consumers consider these factors need to be identified and taken into account by online retailers in order to satisfy consumer demands and compete in the online market.

7.0 Objectives:
To know that How many consumer use internet for online buying in India. To know the currant status and improvement of online shopping in India.

To understand various working commercial sides popular for online shopping in India. To list out the benefits of e-purchasing in India. To understand various security measures for online shopping. To study the factor influencing online shopper and consumer. To study which type of product most sold on internet.

8.0 Research Methodology of the Proposed Study:


8.1 RESEARCH DESIGN OF THE PROPOSED RESEARCH STUDY:
Research design of the proposed project work, considering its objective, scope and coverage will be Exploratory and Descriptive in nature.

8.2 RESEARCH METHODOLOGY RESEARCH STUDY: 8.2.1 Sources of Information a) Secondary Data:

OF

THE

PROPOSED

The secondary data will be obtained from published as well as unpublished search engine, newspapers, books, magazines, journals, websites the other relevant information.

8.3 DATA ANALYSIS AND DATA INTERPRETATION:

8 As the Project work is in the nature of Exploratory and Descriptive type, it will involve the complete picture of various most popular websites available in India. The collected data will be analyzed using appropriate charts, Graphs, Diagrams, and Statistical techniques. The interpretation of the data will be presented in the form of comparative tables as well as relevant diagram.

9.0 Significance of the Proposed Research Study:


As on date the various web sites are available on the internet for online shopping in India, so from those sides which sides are more popular in the customer for online shopping in India. This study help full to know which type of product is most is most purchase from the internet and which type of payment mostly given buy the customer for product like debit card, credit card or cash on delivery.

10.0 Limitations of the Proposed Research Study:


The analysis and interpretation is based on secondary data, which is collected from various source. This report includes only products shopping of Indian consumer. This project data is collected from various sides it cant be said that the projection has been made totally correct and accurate.

You might also like