Preface

“Learning Categories you, and practicing on that learning specialize you”
The importance of any academic courses would gain advantage and the acceptance of the
true form, only through practical experiences. Hence it is quite necessary to put theories
as into task.
Someone has greatly said that practical knowledge is far better than classroom
teaching. During this proect ! fully reali"ed this and come to know about the present real
world .The present report entitled as “A Growth of E-commerce in India’’ a fruitful
outcome of my research done during the course of my fourth semester of MBA
programmed. This research report forms an integral part of my #$% degree course at
Technical Education Research Institute P!G! "ollege Gha#ipur. &'commerce
provides multiple benefits to the consumers in form of availability of goods at lower cost,
wider choice and saves time. The general category of e'commerce can be broken down
into two parts( &'merchandise( &'finance. &'commerce involves conducting business
using modern communication instruments( telephone, fax, e'payment, money transfer
systems, e'data interchange and the !nternet. )nline businesses like financial services,
travel, entertainment, and groceries are all likely to grow. *orces influencing the
distribution of global e'commerce and its forms include economic factors, political
factors, cultural factors and supranational institutions.
&' commerce has an intent to bring some transformation in the society and that+s the
reason it,s essential for the $-$ and $-. commerce. The %ims and )bectives of this
research are to have an in'depth knowledge of the &commerce growth in !ndia. ! have
tried my level best to make it simple and understandable. The findings were in favor of &'
commerce being vital for the !ndian organi"ation and they are not diminishing in today,s
/
world, but they are at the booming stage0 and every organi"ation would want to use &'
commerce. The research deals with basics of &'commerce and its climate affect in
organi"ation. The first chapter is dedicated to the introduction of the &'commerce, &'
commerce growth in !ndia, !mportance of &'commerce growth in !ndia and definition of
&'commerce. !t also deals the factors affecting &'commerce growth in !ndia. This chapter
gives detail about the &'commerce growth in !ndia. !t also deals the challenges and
problems come at the time of &commerce growth in !ndia. The second chapter deals with
the )bective of the study and !mportance of the study1 also included the Scope of the
study. The third chapter is a summary of the various research methodologies used for the
development of the proect. The methodology used for the implementation of the assigned
proect is based on secondary data. The whole study is based on secondary data. The
fourth chapter deals the data analysis and interpretation .hapter five deals with the
findings and recommendations related to the research report. The conclusion1 2imitation
of the proect is provided in chapter six and this chapter also deals with the $ibliography
1 3eference of this proect.
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Ac%nowledgement
$efore ! thank anybody for the compilation of this work ! would like to thank %lmighty
for providing guidance and me all the necessary help. !t is grace only that ! have
completed this work.
%n understanding of the study like this is never the outcome of the efforts of an
individual0 rather it bears the imprint of a number of individuals who directly helped me
in completing the present study.
*irst 1 foremost, ! would like to express my regard to Mr! Rahul Anand &ingh '(!)!*!
of M!B!A!+ and *r! ,eetu &ingh the training - placement-in-charge and the
honorable 3eaders of #.$.%. Department for this constant encouragement and support. !
would also like to express immense gratitude towards supervisor *r! ,eetu &ingh, for
providing the knowledge, guidance and cooperation in research report.
! am also sincerely thankful to all my friends for giving me opportunity and resource to
work on the research report and giving me support whenever necessary.
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4
I,TR)*."TI),
!nternet is one component which has recently become the key ingredient of quick and
rapid lifestyle. $e it for communication or explorations, connecting with people or for
official purposes, +internet, has become the central'hub for all. 3esultantly, !nternet
growth has led to a host of new developments, such as decreased margins for companies
as consumers turn more and more to the internet to buy goods and demand the best prices,
as observed by ..5 6rahalad 6rofessor, $usiness School, and 7niversity of #ichigan.
/The internet means that traditional businesses will change because +,incumbents 8in
markets9 and large firms do not have the advantage +, ust by virtue of being there first or
by being of big, he said. The implication of perfectly competitive market as the world will
observe is that market will produce an efficient allocation of resources. !nternet has truly
been an effective agent in changing the fundamental ways of doing business. !n any
market with no entry barriers : the ;et is biggest of them, the continuous influx of
competition will, automatically, drive down the prices. !n such a case, in long term all
firms could only earn normal profits, &'commerce 8electronic commerce or &.9 is the
buying and selling of goods and services on the !nternet, especially the <orld <ide <eb.
!n practice, this term and a newer term, e'business, are often used interchangeably. *or
online retail selling, the term e'tailing is sometimes used .&lectronic commerce is
=
generally considered to be the sales aspect of e'business. !t also consists of the exchange
of data to facilitate the financing and payment aspects of business transactions.
E- "ommerce
&lectronic commerce 8or e'commerce9 encompasses all business conducted by means of
.omputer networks. %dvances in telecommunications and computer technologies in
recent years have made computer networks an integral part of the economic
infrastructure. #ore and more companies are facilitating transactions over web. There has
been tremendous competition to target each and every computer owner who is connected
to the <eb. %lthough business'to'business transactions play an important part in e'
commerce market, a share of e'commerce revenues in developed countries is generated
from business to consumer transactions. &'commerce provides multiple benefits to the
consumers in form of availability of goods at lower cost, wider choice and saves time.
6eople can buy goods with a click of mouse button without moving out of their house or
office. Similarly online services such as banking, ticketing 8including airlines, bus,
railways9, bill payments, hotel booking etc. have been of tremendous benefit for the
customers. #ost experts believe that overall e'commerce will increase exponentially in
coming years. $usiness to business transactions will represent the largest revenue but
online retailing will also enoy a drastic growth. )nline businesses like financial services,
travel, entertainment, and groceries are all likely to grow.

>
E-commerce can /e di0ided into
 &'tailing or ?virtual storefronts? on <eb sites with online catalogs, sometimes
gathered into a ?virtual mall?
 The gathering and use of demographic data through <eb contacts
 &lectronic Data !nterchange 8&D!9, the business'to'business exchange of data
 &'mail and fax and their use as media for reaching prospects and established
customers 8for example, with newsletters9
 $usiness'to'business buying and selling
 The security of business transactions
Toda1 Ecommerce is an integral part of /usiness /ecause of 0arious
reasons li%e2
 &ase of use 1 %ccessibility all across the globe
 @reat variety 1 easy compassion of products from different vendors
 Trusted payment channels
 Shopping can be done sitting in the convenience of home shopping, hence it is
less time consuming.
!t is therefore very important for any new entrepreneur to understand the significance of
&' .ommerce and should know how to utili"e this tool for the growth and development of
business. So, whether you have an existing business or launching a brand new business,
whether the volume of your business is large or small, you can always generate profit by
A
demonstrating your products or services online, thereby acquiring a large amount of
viewer exposure. !n concise, buying and selling will result in profits and returns. There
are so many factors which makes e'commerce to come to the fore front in todayBs world.
Saving precious time involved in business transactions is really a prominent factor. 2ike
for instance, net banking makes it easy to carry out money and baking transactions in a
break neck speed as compared to the real banking scenario. This asserts the fact that
&commerce is beneficial to both business and consumer wise as payment and
documentations can be completed with greater efficiency and reliability. %nother
important factor determining the flow of whole business is connectivity. .onnectivity is
very important for both consumers and business. &commerce provides better connectivity
for all the potential candidates all over the globe, thus helping in enhancing the business
without any geographical barriers. *rom the view point of the customer, &commerce is a
good platform for hassle free shopping by sitting in your home. The customer can browse
through all the products and services available and can review and compare the prices of
the similar products available in the online space. !n global market scenario, the
emergence of &commerce as a forerunner has opened up various windows of
opportunities for a variety of online companies and investors. #ore and more resources
are being directed into electronic securities, internet facilities, business plans and new
technologies due to the boom in the space of &'commerce. %s a result various new
markets have emerged from &commerce itself giving a boost to the global market.
C
Glo/al trends in E-commerce
 @overnment programs are a significant vehicle for c'commerce implementations
 3etail, grocery and logistics industries are the most active in encouraging trading
partners to implement &D!
 Small and medium si"ed companies demand flexible integration solutions
 &uropean companies focus on core competencies and outsource technology to
consulting groups
 High percentage of first time implementers seek to achieve full integration
D
 )rgani"ations are seeking a scalable, reliable system that is easy to deploy and
manage
 Software needs to be capable of handing different business processes and must
integrate with existing !T investments
%s social media, app stores and global availability become standard0 many companies are
looking to enhance the online customer experience. %nd while retail and other
transactions via !nternet are customary, more than ever companies are simplifying the
ways in which customers interact with their website and ultimately make online
purchases. Here are eight trends happening right now in global e'commerce that seek to
enhance the user experience(
Micro-pa1ments 3
%mong the most revolutionary changes in the coming monthsEnot yearsEis the use of
micro'payment systems from a variety of financial firms, e.g., 6aypal, Fisa, <estern
7nion, among others, including banks. This trend is facilitated by the <4. working
group that approved these protocols and technical standards for the interworking. These
systems will change not only how we carry money but how we value money and think
about purchases. 8.onsider how a purchase of G=.HH feels in a mobile app store vs. at
DunkinB Donuts.9 6ayment systems that make it easier to buy online, coupled with
mobile technologies will accelerate the usage of global e'commerce applications.
Mo/ile technologies 3
H
#ore people access the !nternet on their mobile devices than on any other device. <e are
rapidly approaching the time 8if we are not already there9 where designs must be created
for the mobile <eb first, and for the desktop second. #obile technologies facilitate
comparison shopping0 with the advent of barcode reader apps and price'comparison
databases, a consumer could snap a bar code in <al'#art and quickly reference product
reviews and prices on walmart.com 8or compare prices with <al'#art competitors9.
#obile technologies also facilitate impulse buys : especially with the advent of micro'
payments tied to the mobile device. Iust recently, Starbucks customers can not only place
an order with their Smartphone, but also make a purchase.
&ocial media -
%s *ace book has become the most visited site on the <eb, the role of social media,
including *ace book and its local clones such as Twitter, is increasingly important. Social
media sites increasingly act as points of entry to e'commerce sites, and vice versa, as e'
commerce sites build rating, loyalty and referral systems tied to social media. @roup
buying 8e.g., @roup on9 is also gaining mainstream ground, with many ?deal of the day?
sites competing for an increasingly savvy consumer base, but improvements lie ahead as
the social aspects and user experience are refined.
4ulfillment options 3
! believe that users will want to have multiple fulfillments and return options when
interacting with a vendor( ship to address, courier, pick'up in store, return to store, etc.
Having many fulfillment options is how customers view their overall customer
experience. Some companies have made a business proposition online by being
exceptional in service to the online channel 8e.g., Jappos9.
/K
Glo/al a0aila/ilit1 :
!ncreasingly, consumers want the availability to buy products from foreign sites and have
them delivered locally. Thus, currency and customs will be of growing concern to many
online retailers. %long with this, there will be concerns with local privacy laws and
restrictions on related data collection and storage.
5ocali#ation 3
<hile the trend is to globali"e, what+s often more important is to locali"e. 7ser .entric+s
research clearly shows that sites that Lfeel+local : with proper imagery, language,
timeMdate, weightsMmeasures, currency, etc. : resonate far more than sites that seem
culturally distant or sterile
"ustomi#a/ilit1 3
.onsumers want control, and want to be able to design the details of the items they
purchase.
Time-/ased a0aila/ilit1 3
Some of the hottest and most successful sites are those that have a time'critical response
component. Sites like @roup on, @ilt and others capitali"e on the perception of limited'
time availability. .reating a sense of urgency drives traffic and purchase behavior.
//
$usiness models across the world also continue to change drastically with the advent of
ecommerce and this change is not ust restricted to 7S%. )ther countries are also
contributing to the growth of ecommerce. *or example, the 7nited 5ingdom has the
biggest e'commerce market in the world when measured by the amount spent per capita,
even higher than the 7S%. The internet economy in 75 is likely to grow by /KN between
-K/K to -K/>. This has led to changing dynamics for the advertising industry
%mongst emerging economies, .hinaBs ecommerce presence continues to expand.
<ith 4D= million internet users, .hinaBs online shopping sales rose to G4A.A billion in
-KKH and one of the reasons behind the huge growth has been the improved trust level for
shoppers. The .hinese retailers have been able to help consumers feel more comfortable
shopping online. &commerce is also expanding across the #iddle &ast. Having recorded
the world+s fastest growth in internet usage between -KKK and -KKH, the region is now
home to more than AK million internet users. 3etail, travel and gaming are the region+s
top ecommerce segments, in spite of difficulties such as the lack of region'wide legal
frameworks and logistical problems in cross'border transportation. &'.ommerce has
become an important tool for businesses worldwide not only to sell to customers but also
to engage them.
/-
E-commerce in India
*or developing countries like !ndia, e'commerce offers considerable opportunity. &'
commerce in !ndia is still in nascent stage, but even the most'pessimistic proections
indicate a boom. !t is believed that low cost of personal computers, a growing installed
base for !nternet use, and an increasingly competitive !nternet Service 6rovider 8!S69
market will help fuel e'commerce growth in %sia,s second most populous nation. !ndian
middle class of -DD million people is equal to the entire 7.S. consumer base. This makes
!ndia a real attractive market for e'commerce. To make a successful e'commerce
transaction both the payment and delivery services must be made efficient. There has
been a rise in the number of companiesB taking up e'commerce in the recent past. #aor
!ndian portal sites have also shifted towards e'commerce instead of depending on
advertising revenue. #any sites are now selling a diverse range of products and services
from flowers, greeting cards, and movie tickets to groceries, electronic gadgets, and
computers. <ith stock exchanges coming online the time for true e'commerce in !ndia
has finally arrived. )n the negative side there are many challenges faced by e'commerce
sites in !ndia. The relatively small credit card population and lack of uniform credit
agencies create a variety of payment challenges unknown in !ndia. Delivery of goods to
/4
consumer by couriers and postal services is not very reliable in smaller cities, towns and
rural areas. However, many !ndian $anks have put the !nternet banking facilities.
The speed post and courier system has also improved tremendously in recent years.
#odern computer technology like secured socket layer 8SS29 helps to protect against
payment fraud, and to share information with suppliers and business partners. <ith
further improvement in payment and delivery system it is expected that !ndia will soon
become a maor player in the e'commerce market. <hile many companies, organi"ations,
and communities in !ndia are beginning to take advantage of the potential of e'commerce,
critical challenges remain to be overcome before e'commerce would become an asset for
common people. !ndia,s ecommerce industry is on the growth curve and experiencing a
spurt in growth. The )nline Travel !ndustry is the biggest segment in ecommerce and is
booming due largely to the !nternet'savvy urban population. The other segments,
categori"ed under online non'travel industry, include e'Tailing 8online retail9, online
classifieds and Digital Downloads 8still in a nascent stage9. The online travel industry has
some private players such as #akemytrip, .leartrip and Oatra as well as a strong
government presence in terms of !3.T., which is a successful !ndian 3ailways initiative.
The online classifieds segment is broadly divided into three sectors0 Iobs, #atrimonial
/=
and 3eal &state. #obile .ommerce is also growing rapidly and proving to be a stable and
secure supplement to ecommerce due to the record growth in mobile user base in !ndia, in
recent years. @rowth drivers and barriers are present in equal measures for new
ecommerce ventures. % report by the !nternet and #obile %ssociation of !ndia has
revealed that !ndia +a &'commerce market is growing at an average rate of CK percent
annually and has grown over >KK percent since -KKC. The current estimate of 7SG A.CH
billion for year -K/K is way ahead of the market si"e in the year -KKC at G/.C> billion.
The following chart depicts the growth of &'commerce in !ndia in the last couple of years.
%pparently, more online users in !ndia are willing to make purchases through the !nternet.
)verall e'commerce industry is poised to experience a high growth in the next couple of
years. The CK percent year on year growth is expected to continue and !ndia,s e'
commerce market is forecast to reach a whopping G7S /K billion by the end of -K//.The
e'commerce market in !ndia was largely dominated by the online travel industry with
DKN market share while electronic retail 8&'Tailing9 held second spot with A.=DN market
share. &'Tailing and digital downloads are expected to grow at a faster rate, while online
travel will continue to rule the maor proportion of market share. Due to increased e'
commerce initiatives and awareness by brands, e'Tailing has experienced decent growth.
%ccording to the third edition of e$ay !ndia census -K/K conducted across -D states and
Seven union territories, !ndia,s top five rural e'commerce hubs are %mbalapu"ha
85erala9, Saiyavadar 8@uarat9, %dala 8@uarat9, %bdalipur 8<est $engal9 and
5angayampalayam 8Tamil ;adu9. This means there are two rural e'commerce hubs of
@uarat in top five across !ndia. The survey reveals that @uarat has emerged as one of the
top five online shopping markets in the country. @uarat is ranked =th after #aharashtra,
Delhi and Tamil ;adu. During the census in -KKH, @uarat was ranked at seventh, from
which it has umped to fourth position. The city of %hmadabad ranks Cth among top /K
/>
ecommerce hub in the country. &$ay !ndia, a /KK per cent subsidiary of e$ay !nc one of
the leading e'commerce hub in !ndia, has observed a surge in the number of e'commerce
hubs in !ndia from -,>KK last year to 4,4KK this year. %ccording to the e$ay .ensus @uide
-KKH for !ndian ecommerce scenario, it has been found that !ndia has over -,=C/
ecommerce Hubs. These hubs are the cities, towns, villages and smaller towns covering
the entire length and breadth of the country. Technology or technology related products
dominate !ndia,s domestic ecommerce. <hereas, lifestyle product category dominates in
the global trade. Technology, being !ndia,s favorite traded vertical category contributes
==N of totals ecommerce transactions according to the latest e$ay .ensus. 2ifestyle
category at 4>N comes second in popularity for online !ndians. *or @lobal Trade,
lifestyle is the clear winner at A=N of all transactions followed by #edia 1 .ollectibles
at />N each. &laborating !ndia,s domestic online shopping scenario, South !ndia has the
most active buyers at =/N of all transactions, followed by <est !ndia at -CN. However,
<est !ndia has the most active sellers at =AN, followed by ;orth !ndia at -DN. Delhi
entrepreneurs sold the most technology gadgets at =AN of all transactions to buyers in
!ndia. 2ifestyle scored on the &xports front at ACN of all transactions Delhi sells the most
musical instruments : percussion, brass, synthesi"ers, and guitars ' in the country. !n
addition to this, Delhi buyers bought the most sunglasses in the country according to the
e$ay census. Delhi buyers have also bought the most number of high end digital cameras
in the country. !ndia is showing tremendous growth in the &commerce. 3ival
tradeindia.com has CKK,KKK registered buyers and it has the growth rate of 4>N every
year which is likely to double in the year -K/K. !ndiamart.com claims revenues of 3s. 4D
crores and has a growing rate of >K every year. !t receives around >KK,KKK enquiries per
month. 7ndoubtedly, with the middle class of -DD million people, online shopping shows
unlimited potential in !ndia. The real estate costs are touching the sky. The travel portalsB
/A
share in the online business contributed to >KN of 3s =DKK crores online market in -KKC'
KD. The travel portal #ake#yTrip.com has attained 3s /KKK crores of turnovers which
are around -KN of total e'commerce market in !ndia. *urther an annual growth of A>N
has been anticipated annually in the travel portals alone.
4acilitators of e-commerce in India
6! Information directories2
The products and services a relisted with appropriate sub'headings to make it easy for
a serious information'seeker to find what he wants. %llied services provided by them(
#essage boards, chat rooms, forums, etc.
7! Ban%s2
a! ,et /an%ing8phone /an%ing2
This is an online banking facility available for savings account holders as well as
current account holders. Some of the special ;et banking services are( Demat
accounts for saleMpurchase of stocks and shares, *oreign &xchange services,
DirectM!nstant payment of bills on the account'holder,s behalf, *inancial 6lanning.
/! "redit8*e/it "ards-
$anks facilitate &'commerce by providing the most vital trade instrument, namely the
.redit or Debit .ard, without which &'commerce would be impossible.
/C
Growth of e-commerce
During the year -KKK'-KK/, two maor !ndustry %ssociations produced separate reports
on e'commerce in !ndia. )ne was prepared by the ;ational .ommittee on &commerce set
up the .onfederation of !ndian !ndustry 8.!!9, while the other was commissioned by the
;%SS.)# and prepared by the $oston .onsulting @roup. $oth the reports are
optimistic about the growth of e'commerce in !ndia. The .onfederation of !ndian
!ndustry 8.!!9 report estimates the volume of e commerce to grow to 3s >KK billion 87SG
/K.A billion9 in the year -KK4. The ;%SS.)#'$.@ 3eport, on the other hand, estimates
for the same year that the total volume of ecommerce will be 3s /,H>K billion 87SG =/.>
billion9. %mul, a milk cooperative, is successfully using ecommerce to deepen its brand
loyalty. 2ikewise, corporate in the automotive sector are improving their customer
relations through this medium. Some of the new names that are rediscovering e'
commerce through new portals at relatively low capital cost, without venture capital
funding include( 5ey - crorepati, #usic %bsolute, @ate - $i". The low cost of the 6. and
the growing use of the !nternet has shown the tremendous growth of &commerce in !ndia,
in the recent years. %ccording to the !ndian &commerce 3eport released by !nternet and
#obile %ssociation of !ndia 8!%#%!9 and !#3$ !nternational, P The total online
transactions in !ndia was 3s. CKDK crores 8approx G/.C> billion9 in the year -KKA' -KKC
and expected to grow by 4KN to touch H-/K crores 8approx G-./> billion9 by the year
-KKC'-KKD. %ccording to a #c5insey';asscom report the e'commerce transactions in
!ndia are expected to reach G/KK billion by the -KKD. %lthough, as compared to the
western countries, !ndia is still in is its initial stage of development. &'#arketer forecasts
that online sales will more than double by reaching G/AD.C billion in -K//. #arket share
/D
is moving toward %ustralia, !ndia and especially .hina. .hina,s share of regional $-. e'
commerce will grow more than threefold from =./N in -KKA to /=.4N by -K//. %t the
low end, South 5orea,s $-. e'commerce sales will grow by /4.4N over the same period.
$etween -KKA and -K//, the aggregate .%@3 for the five countries will be -4.4N. Sales
of selected countries in %sia 6acific )nline travel is the largest e'commerce sales
category in most maor countries. *or the same group of five countries, plus ;ew
Jealand, online leisure and unmanaged business travel sales totaled about G/C.C billion in
-KKC and are forecast to rise to G=/.C billion by -K//. &'#arketer forecasts that from
-KKA to -K// online travel sales will grow at a -=.DN annual rate, higher than the -4.4N
rate for $-. e'commerce. This indicates that travel is one of the key drivers of e'
commerce sales in the 6%. region.
&tatus of e-commerce in India
Today &'commerce is a byword in !ndian society and it has become an integral part of
our daily life. There are websites providing any number of goods and services. Then there
are those, which provide a specific product along with its allied services. !ndian &'
commerce portals provide goods and services in a variety of categories. To name a few(
%pparel and accessories for men and women, Health and beauty products , $ooks and
maga"ines, .omputers and peripherals, Fehicles, Software, .onsumer electronics,
Household appliances, Iewelry, %udioMvideo, entertainment, goods, @ift articles, 3eal
estate and services .
/H
&ome Indian portals8we/sites deal in a speciali#ed field for e$ample2
Automo/iles-
)n these sites we can buy and sell four wheelers and two'wheelers, new as well as used
vehicles, online. Some of the services they provide are( .ar research and reviews, online
evaluation, Technical specifications, Fehicle !nsurance, Fehicle *inance.
&toc%s and shares and e-commerce-
!n !ndia today, we can even deal in stocks and shares through e'commerce. Some of the
services offered to registered members are( )nline buyingMselling of stocks and shares,
#arket analysis and research, .ompany information, .omparison of companies,
3esearch on &quity and #utual *unds.
Real estate and e-commerce-
They provide information on new properties as well as properties for resale. )ne can deal
directly with developer through consultant. %llied services( Housing *inance, !nsurance
companies, %rchitects 1 !nterior Designers, ;3! services, 6ackers 1 #overs.
Tra0el - tourism and e-commerce-
!ndia has a rich history and heritage and e'commerce is instrumental, to a large extent, in
selling !ndia as a product, encouraging !ndians as well as foreigners to see its
multifaceted culture and beauty. The tourist destination sites are categori"ed according to
-K
themes like( %dventure ' trekking, mountain climbing etc, &co'Themes pertains to
ungles, flora and fauna.
Gifts and e-commerce-
!n the bygone days, one had to plan what to gift a loved one, trudge across to your
favorite shop, and browse for hours before purchasing a gift. The gifts are categori"ed as(
.ollectibles like paintings and sculptures, 2uxury items like leather goods, perfumes,
ewellery boxes, etc, household curios and carpets, etc, Toys 1 games, .hocolates,
*lowers, <oodcraft.
(o//ies and e-commerce-
The most popular hobbies from time immemorial are reading, music and films. The
book,s cover a wide range of topics like $usiness, %rt, .ookery, &ngineering, .hildren,s
Stories, Health, #edicine, $iographies, Horror, Home 1 @arden, etc.
Matrimon1 and E- commerce-
!t is said that marriages are made in heaven, but in the world of &'commerce they are
made on marriage portals )ne can search for a suitable match on their websites by region
of residence 8!ndia or abroad9, religion or caste. %llied services for registered members(
%strological services, !nformation on .ustoms and 3ituals, 2egal issues, Health 1
$eauty, *ashion 1 Style, <edding.
-/
Emplo1ment and e-commerce-
Two maor portals like www.#onsterindia.com and www.naukri.com 8meaning ob.com
in Hindi9 are instrumental in providing ob seekers with suitable employment at the click
of a mouse. The service for ob seekers is free and for &mployers they charge a nominal
fee. Iobs are available online in fields ranging from secretarial to software development,
and from real estate to education lanners.
--
Ma9or "hallenges faced /1 Ecommerce Industr1 in India
The ecommerce industry in !ndia is growing at a remarkable pace due to high penetration
of internet and sophisticated electronic devices. However, the recent growth rate of
ecommerce in !ndia is far lagging behind than other developed countries. There are many
big problems and challenged on the way of an online merchant. *actors like safety and
security of online money transaction being the biggest problem along with others, have
curb the smooth expansion of the online industry in the country. %lthough, maor portion
of e'business sectors have affected by the below mentioned challenges but still there are
-4
few online giants like #akemytrip.com, flipkart.com, Snapdeal.com who have overcome
the challenges and represents the perfect growth trends of ecommerce in !ndia.
Poor :nowledge and Awareness2
<hen it comes to ratio of internet consumers, scenario is not so admirable one. #aority
of !ndian rural population are unaware of internet and it uses. Surprisingly, most of
internet savvies or urban populations are also suffering from poor knowledge on online
business and its functionalities. Fery few are aware of the online corruption and fraud and
thus darkness still exists. % reliable survey reveals that >KN of !ndian online users are
unaware of the solution of online security.
)nline Transaction2
#ost of !ndian customers do not possess plastic money, credit card, debit card and net
banking system, which is one of the prime reasons to curtail the growth of ecommerce.
;evertheless, in recent years, some of the nationali"ed banks have started to issue debit
cards to all its account holders. This is undoubtedly a positive sign for !ndian online
entrepreneurs.
"ash )n *eli0er12
.ash on Delivery 8.)D9 has evolved out of less penetration of credit card in !ndia. #ost
of !ndian &'commerce companies are offering .)D as one of mode of payment for the
buyers. 4KN'>KN of buyers are also taking advantage of this mode of payment while
making purchase of any product and service over internet. .)D has been introduced to
counter the payment security issues of online transaction, but this mode has been proving
-=
to be loss and expensive to the companies. !t is seen that maority of the customers denied
to make the payment at the time of delivery of the product. Hence, companies tend to lose
the sale along with product transit fees. !n order to curb the problem of .)D, online
companies should take some udicial steps0 otherwise basic logic behind the ecommerce
business will be at risk.
)nline &ecurit12
!n case of start up and small business, $usiness owners are ignoring the importance of
authentic software due to budget constraints. They are even failing to take the initial steps
to secure and protect their online business through installation of authentic protection
services like antivirus and firewall protection, which indeed a crucial step for successful
online business players. !n !ndia, maximum number of business entrepreneurs used
unauthori"ed software in their server, which usually does not come with upgraded online
security. Such pirated software leaves room for virus, malwares and Troan attacks and it
is highly risky task to make online transactions in the systems, which may disclose or leak
sensitive details of credit cards and online banking of the users. These kinds of droopiness
should be banned in !ndian ecommerce sectors. %ffiliation to SS2 certificate should be
imposed as a mandatory action for every owner.
5ogistics and &hipment &er0ices2 !n !ndia, logistics and courier services required
lots of improvement. <hile, perfect and strong logistics service is one of the key reasons
behind the success of any online company, !ndia is lagging far behind in this sector as
most of the town and small villages are still not covered under serviceable area of many
->
of the courier and logistic companies. &commerce is hampered in a big way owing to the
limited services offered by the courier service companies.
Ta$ &tructure2
Tax rate system of !ndian market is another factor for lesser growth rate of ecommerce in
!ndia in comparison to other developed countries like 7S% and 75. !n those countries,
tax rate is uniform for all sectors whereas tax structure of !ndia varies from sector to
sector. This factor creates accounting problems for the !ndian online business companies.
4ear factor2
*ear of making online payment is a universal psychological factor of !ndian customers.
<ith the spread of knowledge on online transactions and its reliability, some percentages
of customers have overlooked this fear and they are fearlessly engaging themselves in
online shopping. $ut still, maority of customers are not aware of online transactions and
its security. They often reluctant to disclose their credit card and bank details and
preferred to stay away from online world of shopping.
;Touch and 4eel’ factors2
!ndian customers are more comfortable in buying products physically. They tend to
choose the product by touching the product directly. Thereby, !ndian buyers are more
inclined to do ticketing and booking online in Travel sectors, books and electronics.
.ompanies dealing with products like apparel, handicrafts, ewelry have to face
challenges to sell their products as the buyers want to see and touch before they buy these
stuffs.
-A
Top E-"ommerce "ompanies in India
6+ A&A &1stel "ommunications P0t 5td2
!t is a leading &'commerce company in !ndia which provides innovative and superb
quality web services which encompasses the building of e'commerce related websites and
portals. The company also uses the latest payment modes and security. The company has
its offices in .hennai, 2ucknow and will shortly set up offices in Delhi, #umbai,
5athmandu, $hopal.

7+ "andid Info(
-C
This !ndian &'commerce company is based in ;ew Delhi. !t is a renowned )ffshore
)utsource <eb designing development e'commerce .ompany. !t offers off shore web
development, designing, and S&) solutions for large corporations and S#&Bs.

<+ "hena/ Information Technologies Pri0ate 5imited2
This &'commerce company in !ndia comprises of web enabled business and web bases
services, airline and security systems by using the internet technologies and tools of the
state of the art. The company has three Software Development centers in #umbai and the
overseas branch office in ;ew Oork.
=+ Euro lin% &1stems 5imited2
This leading &'commerce company provides consulting and e'business solutions,
*lexT.% Systems, Trillium 6rotocol services to the global community. The company has
its office in &ngland, 7.S, Swit"erland, and !ndia with about -KK employee strength.

>+ (ashPro Technologies2 !t offers e'business and traditional analysis, development,
implementation, design and strategic planning. !t is a leader in the provider of integrated
talent management software organi"ation in !ndia. !t is key technology consulting
provider. !t renders services like the &'commerce Hosting, !nternet #arketing and Human
3esources. The e'<orkforce initiative of the company will enable the company to
become a /KK percent e'.orporation.
?+ "ompare Info Base(
-D
The company is leading provider of e'commerce portals and !T solutions. The company
manages about />KK websites and portals with =KKK domain names. !t has web presence
in #aps, Software Development, @!S Travel, &ducation, #edia, and @reetings etc. !t
speciali"es in .ontent development services, <ebsite development services0 6H6
6rogramming 1 Development etc. !t has its office in #umbai, 5olkata and Delhi.
@+ &an0er E-solutions(
This .ompany is based in #umbai. They believe that !nformation Technology is a way to
the business obectives. !t is an !T consulting and Solutions 6rovider which offers
personali"ed and personal business solutions using !nformation and .ommunication
Technology.
A+ Planet Asia(
This &'commerce company in !ndia uses track record and deep experience in externali"ed
applications to produce high quality $-S6&.8$usiness to 6artner, Supplier, .ustomer9
solutions to global enterprises.
B+ "andid Ce/ Technolog1-
This fast growing &'.ommerce .ompany in !ndia is a provider of .om <eb Solutions
for the design and development of dynamic web sites .The clients of the e'commerce
company spans from the small scale companies to corporate organi"ations.
6D+ Trisoft *esign2
-H
Trisoft Systems is a software services company that offers solutions exclusively on the
#icrosoft 6latform to customers worldwide. /K years of experience on the #icrosoft
6latform puts the company at the forefront of .;et Technology.
&ome sites are as fallow2
7D,orth!com2
This website offers variety of products like electronics, books, music, movies, and car
accessories. The site also offers lucrative deals.
BBla/els!com2
This site offers many fashion and luxury brands at good prices.
*ealsand1ou!com2
This site offers various kinds of deals be it holidays, shirts etc. %lso this site gives heavy
discounts on regular basis that can be profitable for the shoppers.
4ashionand1ou!com2
This site also is a great place to shop and that too sitting at home. %lso this site declares
sale and heavy discounts almost every day.
4K
4lip%art2
This site offers various kinds of products and that too at one place. #obile, its
accessories, books, camera and laptop accessories. %nd many more things are available
on this site. )ne can find deals for home appliances also that are available at affordable
prices.
Indiangiftsportal2
This is known for providing gifts for various occasions like birthdays, anniversary,
wedding, bhai doo, diwali and many more .%lso flowers, cakes, chocolates and many
more things are offered by this site.
Maga#ineMall2
This company specifically deals in maga"ines and one can get maga"ines of different and
unique categories like @ardeningMHousekeeping, lifestyle, fashion, luxury, current affairs
and many more.
Bindaas/argain2
Here new deal comes everyday at /K am and it is !ndiaBs first )ne Deal % Day online
shopping site.
Bu1theprice!com2
4/
The site offers #obiles, .omputers, .ameras, Home %ppliances, 2ife style, %udio and
Fideo and much more. Farieties of products are available under each category.
Perfume7order2
!t has categories like 6erfumes for #en, 6erfumes for <omen, Deodorants 1 Deo Stick,
6erfume @ift Set, Designer <allet 1 $elts, *lowers, Handbags 1 .lutches, Sunglasses
and many more things.
E-commerce in Glo/al &ourcing &cenario
&'commerce or electronic commerce, as it is popular, allows domestic as well as
international trade over the !nternet. The advent of &'commerce is boon for global
sourcing and import and export. The boost to global sourcing and importMexport through
&'commerce is because of its to conduct online marketing, monitoring supply chain and
monetary 1 data transaction in a dependable manner. !t is hard to tell whether
importMexport volume has swelled because of &'commerce but sure it made global
sourcing easier to monitor with its evolutionary phases. Three decades ago, it facilitated
fund transfers' albeit electronically besides facilitating exchange of 6)s and invoices in
international trade. &lectronic teller machines are the recent manifestations now
overtaken by internet credit card processing and endorsement of unsigned invoices even
in international trade.
Ch1 is E-commerce Popular in International Trade and
Import8E$portE
4-
2ooked at from both import and export tradersB perspective, international trade is easier
conducted electronically. Here are the points why present international trade depends
much on &' commerce.
 Quick and ease of setting up &'commerce storefronts for both global sourcing as
well as importMexport.
 %utomatic running off of an import and export outfit without having to recruit
many staff.
 @lobal sourcing agentsMcompanies can evaluateMlist importMexport vendor )nline.
 Software assisted documentation for each global sourcing and import export
transaction
 %bility to handle multiple, quick and secure data and money transaction crucial to
international trade, simultaneously
!n international trade, global sourcing happens to be one of the chief aspects of
import and export business. @lobal sourcing is an integral part of $-b scenario and has
essentially transformed world economies as well as boosted business in a great way.
;onetheless, it is also giving great transformation to the work culture around the globe
with .hina playing a lead role in global sourcing. ;evertheless, it is also transforming
work cultures around the world silently with .hina business playing a maor role. $eing
an extension of open market dynamics, global sourcing facilitates the export and import
of goods to be in the reach of several small and medium enterprises in different countries.
!n this b-b scenario, &'commerce plays an active role in the global sourcing where the
44
business houses are putting in deep efforts and reaping the benefits. !n this rally of export
and import, traders happen to claim the share of the pie in global sourcing.
E "ommerce - Glo/al &ourcing
 @lobal sourcing is one of the widely known strategies of ensuring smooth
business and access to markets in a cost effective manner. !n such a scenario, &'
commerce has brought in a new transformation. !t has added to advantages like
removing the barriers of time "ones, differences in costs, geographical locations
etc. This has resulted in a maor push in development in infrastructure, technology
and several other sectors across the globe. %s we see, & commerce is driving the
export and import and propelling the economic growth of numerous developing as
well as developed nations. $usiness strategies are becoming easy to execute and
business houses are having a wide range of options from where they can make
their choices.
 &'commerce has made the path of business smoother and has facilitated not only
in lower cost, but also resulted in procuring material from places where there is
4=
speciali"ation. #oreover, business negotiations are easier and decisions are
quicker due to this boon. Driving the import and export business in this global
sourcing scenario has opened new frontiers for higher growth. The ease in supply
chain is one of the best advantages that have come from e'commerce in the global
sourcing scenario.
 .hina, a maor player in the global sourcing scenario has reaped several benefits
in the e' commerce enabled era. The use of internet has facilitated trade and
boosted it at an immense rate. $usiness from all over the world has been bagged
by this country in spite of the competitive market. .hinese traders have minted
fast money and are still running in that race.
&ecurit1 concerns in Glo/al &ourcing
&'commerce is not without security concerns, lossMmisuse of encrypted data which are
still being seriously being viewed by importMexport operators before engaging in
international trade electronically. The truth is &'commerce providers employ SS2 8Secure
Sockets 2ayer9 to encrypt dataMmoney 8remember banks9 transfer from your desktop to
your clientsB. Oou can say, &'commerce is secure for both importMexport operators as well
as global sourcing agents alike. &'commerce has arrived on the global sourcing scene as
both import and export and international trade partners are accepting it. Despite its
growing stature and popularity &'commerce is still thriving in retail sector domestically
and the international trade needs to cover a long distance before it catches up. %nother
reason for importMexport operatorsB leaning towards &'commerce is the growing costs of
4>
delays in processing 6)s and invoices through traditional methods which render global
sourcing useless.
E-commerce2 A Boon for the "urrent Economic *ownturn
E-commerce2 A Boon for India
$y the end of -K//, the e'commerce market in !ndia had clocked close to 3s >K,KKK
cores. !t is interesting to consider whether the global economic downturn may have
negatively impacted the growth of e'commerce or possibly accelerated it as consumers
look to new online channels which can often deliver greater value than traditional stores.
Today, even though there are less than /K million internet users who are actually
engaging in e' commerce activities, there are about />K million internet users in !ndia or
around C> million households that are ready for e'commerce. The growing reach in terms
of internet connectivity to the interiors of !ndia coupled with the positive experiences of
end consumers when buying online beyond the metros and big cities are key drivers of
the e'commerce boon in !ndia. $usinesses in even the smallest towns and villages are
becoming increasingly aware of e'commerce and are excited by the growth potential.
The growing penetration of e'commerce along with positive consumer experiences is
reflected in a trend towards higher value online purchases. Today, consumers across
4A
urban !ndia are confident enough to make purchases that exceed 3s -K,KKK'->,KKK.
&arlier, the same shoppers stayed in the 3s -,KKK'>,KKK ranges. %ccording to one study
almost >CN of business for e' commerce product sites came from tier !, tier !! and tier !!!
cities while the eight metros accounted for the remainder =4N. The same pattern was
visible in the service sites too, with tier !, tier !! and tier !!! cities contributing >=N of
revenue versus =A N by the eight metros. %ccording to a report by the !%#%!, the
current e'commerce market in !ndia is around 7SG /K billion. $ut with different levels of
adoption, the market has the potential to grow anywhere between 7SG CK billion : 7SG
/>K billion under one scenario and at another level it can grow between 7SG /-> billion :
7SG -AK billion by -K-='->.
E-commerce2 The world o0er
@lobally, the scenario is much the same. $ra"il, one of fastest growing economies in
2atin %merica, is seeing considerable growth. %ccording to a recent report, it estimates
business'to'consumer 8$-.9 ecommerce, including both retail e' commerce and online
travel sales, will total to G/D.C billion in -K/-, a growth of -/.HN over the previous year.
$ra"il will account for more than half of the total $-. e'commerce sales in 2atin
%merica through -K/4, thanks in large to its huge populace and growing number of
online buyers. 3etail e'commerce itself in the 7.S.is predicted to grow at /CN and it will
likely account for G-KK billion in sales in -K/-, according to a presentation at a popular
forum. 3etail e'commerce totaled G=D.- billion during the third quarter of -K//0 an
increase of /4.CN compared with the third quarter of -K/K, according to estimates from
the 7.S. .ensus $ureau. -K// also saw the &uropean online market boom despite the
floundering euro. @ermany+s online trade increased /CN in -K// to R-/.=Dbillion
compared to -K/K, crossing the R-K billion mark for the first time, outstripping traditional
4C
mail order sales by /KN. % similar growth rate of /KN to />N is expected in -K/-. !n the
global scenario, .hina is fast emerging as the biggest player in e'commerce. %ccording to
an e'commerce report, by -K/>, it may well surpass the 7.S. !n an astonishing illustration
of its online growth rate, .hina has added the equivalent of the entire population of
*rance in internet users in each of the last four years. !t will add the equivalent of the
entire population of .anada as e'shoppers in each of the next four years. .hina is
proected to rise from /=> million e'shoppers today to 4-H million by -K/>.
:e1 reasons for the success of e-commerce
&hopping 7=$@2
&'commerce facilitates shopping anytime, anywhere and for almost anything desired.
$usy consumers prefer this to the restrictions of when a mallMshop is open and the need to
physically travel to a shop. )nline business takes shopping a step further by taking itself
to the customer creating conveniences of shopping anywhere and at anytime.

Reduced operational cost2
Since the entire business can be moved online, the need for physical stores has become
obsolete. 2ess infrastructural investment and associated labor costs drives up the profit
4D
margin. The seller can then transfer this benefit to the customer in the form of discounted
pricing which boosts the appeal of online shopping.

Eas1 to compare2
!t is far easier and quicker to compare prices of goods online, equipping the customer
with the information to decide the right price or terms for themselves. The comparison is
not restricted to items from a single seller, or a single region. )ne can explore products
across global markets via e commerce.
&afe - secure2
.ustomers can trust the process of going online and purchasing only when transactions
are fast, convenient and secure. % high degree of integrity is possible only when the
online electronic payment provider is reputable and trustworthy. !n !ndia, all payment
transaction providers are required to comply with the security requirements laid out by
the 3eserve $ank of !ndia making the system more robust and reliable.
Increased reach for the merchant2
Iust as the customer finds them able to venture across geographic markets, the merchant
too is able to display his product to customers in new territories. #arket penetration also
becomes far more achievable with e'commerce0 it is possible for a merchant in #umbai
4H
to extend his reach to north'eastern cities or even rural villages that are now connected by
the online network.
&ocial media trend(
!n !ndia, with the increasing propensity of social media, businesses have now begun to
engage their customers on social networking portals such as *acebook. 6romotions, sales
and new products are increasingly showcased through such channels and mobile apps are
now available that suggest products to users based on their profiles. These are likely to be
rapidly developing marketing channels for the future.
The e'commerce world is changing rapidly in the digiti"ed world. These e'
commerce developments may have been accelerated by the global economic downturn
which may be driving consumers to find new ways of reducing their costs of living. The
online channel offers a clear value proposition for both merchants and consumers making
it the most sought after and exciting business model today.
!n present scenario &'.ommerce is playing very essential role in the online business.
%lthough it is one of the best 1 cheapest intermediate for reaching out to new customers
in the online market, if e'commerce implemented effectively, it also offers a smart way of
doing online business 1 expanding it more. %n online business ecommerce podium is
planned 1 implemented to make the most of its reach to potential customers and provide
them with a convenient, satisfying 1 protected shopping experience.
=K
Ad0antages of E-"ommerce to the )nline Business
 &'.ommerce helps to !ncrease the sales revenue to the business
 $usiness people can spend less money and earn high profits with e'commerce
 !t is very &asier to scale up online
 &asily we can track the segment of customers who are happy with purchasing
goods through online
 %void losing sales to competitors who are online
 !nstantaneous global sales presence in quick time
 <e can )perate the business in -= SC basis
 &asily we can increase our business customers
 <e set up shop anywhere in the world, self'governing of geographical locations
!nexpensive way to turn your <eb site into a revenue center
=/
 3educe .ustomer Support costs via e'mail marketing 1 customary newsletters
 <e can create customi"ed mailing list
 &asily we can drive free traffic to the website
 !nstantly we can develop our business across the internet by using various e'
commerce strategies
 .ustomers can easily buy their products by using different payment gateways
 Develop more shopping carts by using e'commerce
 <e can easily promote our business website by using various promotional
activities such as Search &ngine )ptimi"ation, 6ay 6er .lick #anagement, &mail
#arketing, Social #edia )ptimi"ation, )nline $anner %dvertisement, )nline
$randing and %ffiliate #anagement etc.
B7" - /usiness to consumer
!n the %ustralian context $-. 8business to consumer9 trading activity has been slow to
take off as at first consumers had doubts about the security of credit card transactions.
!nitial $-. trading focused on music .Ds, software and books ' items which were
compact and easily shipped and where prices could be slashed once the retailerBs cut was
taken out of the margin. The %ma"on book store would be a good example of this. These
products pushed the perimeters of the market out for goods bought on'line. $ooks and
.Ds are relatively generic products. % .D bought in the 7S will have the same music
and quality as one bought locally 8the exception is the cover art9 and so there is no doubt
in the consumers mind exactly what the product is. This is not the case with clothing,
where si"es can confuse the purchase decision... and where tactile senses figure strongly
in the purchasing decision. &$ay has really transformed purchasing behavior on the web.
#any people have made their first ecommerce transaction on &$ay. #any people sell on
=-
&$ay too, given raise to the work'from'homeMdrop shipping model of ecommerce.
!nterestingly though $-. transactions of previously locali"ed or hard to find products can
be extremely strong. !f you have a unique product that is highly relevant to a niche
audience, you are likely to do very well on the web. %lthough sales are increasing rapidly
on the !nternet, the volume of turnover figures continues to fall short of industry
estimates. $ut as retail web sites become more navigable and privacy policies are
displayed, more people will be drawn to ;et'based purchasing by lower prices and
convenience.
B7B - /usiness to /usiness
)n the !nternet, $-$ 8business to business9 is the exchange of products or services
between businesses rather than between businesses and consumers. %lthough early
interest centered on the growth of retailing on the !nternet, forecasts are that $-$ revenue
will far exceed $-. revenue in the near future. %ccording to studies published in early
-KKK, the money volume of $-$ exceeds that of $-. by /K to /. )ver the next five years,
$-$ is expected to have a compound annual growth of =/N.
=4
Pa1ment Gatewa1s
$oth 6ay6al and 6aymate offer credit card to bank account payments. 7sing one of these
services you can invoice a customer, they can pay on 6aymate and the funds will be
deposited in your bank account ... less a transaction fee. 7nlike a credit card merchant
facility you will not have ongoing, minimum monthly fees... and the transaction fee is
better than what most card companies offer small merchants. %dditional these service are
being backed into other ecommerce sites and shopping carts. &$ay for example uses
6aypal to process some payments.
The Rise and Rise of Auction &ites
%uction sites such as &$ay and Trade #e have done an enormous amount to get ordinary
people involved in online trading. Today many &$ay merchants are establishing their
own web sites to avoid &$ay and 6ay 6al fees. They have learnt about how to present
their product in their &$ay store and what issues are important to their customers in
purchasing their product and now they are ready to start their own web site.
&ecurit1
)n the !nternet, security is handled by passing ?keys? between !nternet server and client
browser. <hen entering a secure site your browser is passed a public key by which
transactions between you and the web server are encrypted. The servers key is always
kept private. )n your web site security can be handled two ways ' depending on your
budget. Oou can ?piggyback? on someone elseBs ?key? or you can register and pay for
==
your own key or SS2 certificate at Thwate or FeriSign. @enerally today businesses who
host web sites offer access to a secure server and you can use their server and secure
certificate for less than if you registered and paid for your own key. However the person
browsing your site will notice the 732 change to one they do not recogni"e or trust. This
may put your customers off 8although there is no evidence of this9. Therefore one of the
advantages of buying your own key would be to have a 732 for your secure pages that is
consistent with the rest of your site. 6resently, in %ustralia, FeriSign may sell you a key
for over GDKK while foreign ecommerce providers like !nstant SS2 can sell it for G/>K.
%lthough FeriSign will argue that their key comes with a range of value add benefits, the
bottom line is the product, i.e. the key, is the same.
Benefits of E-"ommerce
=>
There is a growing awareness among the business community in !ndia about the
opportunities offered by ecommerce. &ase of !nternet access and navigation are the
critical factors that will result in rapid adoption of ;et commerce. Safe and secure
payment modes are crucial too along with the need to invent and populari"e innovations
such as #obile .ommerce. !ndia 3eports provides accurate and easy to understand !ndia
specific reports that capture trends, map business landscapes and custom'made reports for
specific needs. The other reports available on !ndia 3eports are on retail, outsourcing,
tourism, food and other emerging sectors in !ndia.
 &asy reach to a fast growing online community
 7nlimited shelf place for products and services
 *use the global geographical and time "one $oundaries
 Helps reach national and global markets at low operating co
4uture of E-"ommerce in India
Today, we are talking about e'commerce progress level of !ndia, the seventh'largest by
geographical area, the second'most populous country, and the most populous democracy
in the world. !ndian ecommerce space percentage is getting higher as more and more
online retailers enter the market. %lthough this level of entry in the e'commerce market is
good from a long term perspective, the challenge is that most entrepreneurs don,t have
the resources or capital to wait for years before they can get profits .The past - years have
seen a rise in the number of companiesB embracing e'commerce technologies and the
!nternet in !ndia. #ost e'commerce sites have been targeted towards the ;3!Bs with @ift
delivery services, books, %udio and videocassettes etc. #aor !ndian portal sites have also
shifted towards e'commerce instead of depending on advertising revenue. The web
communities built around these portal sites with content have been effectively targeted to
=A
sell everything from event and movie tickets the grocery and computers. This is not to say
that the e'commerce scenario has been bad in !ndia as highly successful e'business like
baba ba"aar and !ndia mart have proved. !ndian $anks too have been very successful in
adapting &. and &D! Technologies to provide customers with real time account status,
transfer of funds between current and checking accounts, stop payment facilities. !.!.!
$ank, @lobal T37ST $%;5 %;D 7T!'$ank also have put their electronic banking over
the internet facilities in place for the upcoming e'commerce market speed post also plan
to clone the federal express story with online package status at any moment in time. The
future does look very bright for e'commerce in !ndia with even the stock exchanges
coming online providing a online stock portfolio and status with a fifteen minute delay in
prices. The day cannot be far when with 3$! regulations will able to see stock transfer
and sale over the ;et with speciali"ed services.

)/9ecti0es of the stud1
/. To study about the &'commerce in !ndia.
-. To assess the latest trend in e'commerce globally.
4. The impact of growth of e'commerce.
=. The impact of growth on overall economy.
>. To know the future aspect of &'commerce in !ndia.
=C
Importance of the stud1
The importance of a proect report is following.
 The study will help to know that what additional features 1 what facilities should
be increase.
 The importance of proect study is that it is helpful to make future policy of the
market.
 To find out the satisfaction levels towards service provide by &'commerce in !ndia!
 The procedure of &'commerce development in !ndia.
=D
 !t helps in identify reason behind problems.
 The importance of proect study is that it is helpful to make good knowledge about
the &'commerce and &'commerce market.
 !t is important to know challenges 1 prospects in view of future with unique
suggestions1 &'commerce facilities that will be preferred by the users.
 &nvironmental factors of &'commerce are prime influencing elements of change
in &'commerce market.
 !t gives professionals time to anticipate opportunities in &'commerce area and
time to 6lan optional responses to these opportunities.
 !t helps professionals to develop an early warning system to prevent threats.
 &merging out from &'commerce scenario, or to develop strategies, which can turn
a threat.
 !t forms a basis of aligning the organi"ation strengths to the changes in the
environment.
 !t enables the entry of the latest nationalMinternational &'commerce developments
and &'commerce market developments.
=H
&cope of the stud1
This study being Tdesk analysis? contains views of various writers and researchers of &'
commerce. This study includes the global trends including !ndia as a maor source of &'
commerce, increasing use of e' commerce in developing nations, reasons behind success
of e' commerce as an industry, the use of e'commerce in global sourcing , advantages of
&'commerce and several more topics being covered under the proect analysis. The use of
e'commerce in various countries and their influence over the people or citi"ens of that
country is remarkable.
>K
Research Methodolog1
3esearch is a common language refers to a search of knowledge. 3esearch is scientific 1
systematic search for pertinent information on a specific topic, infect research is an art of
scientific investigation. 3esearch #ethodology is a scientific way to solve research
problem. !t may be understood as a science of studying how research is don,t
scientifically. !n it we study various steps that are generally adopted by researchers in
studying their research problem. !t is necessary for researchers to know not only know
research method techniques but also technology. The scope of 3esearch #ethodology is
wider than that of research methods.
The research problem consists of series of closely related activities. %t times, the first step
determines the native of the last step to be undertaken. <hy a research has been defined,
what data has been collected and what a particular methods have been adopted and a host
>/
of similar other questions are usually answered when we talk of research methodology
concerning a research problem or study. The proect is a study where focus is on the
following points(
Research *esign2-
% research design is defined, as the specification of methods and procedures for acquiring
the !nformation needed. !t is a plant or organi"ing framework for doing the study and
collecting the data. Designing a research plan requires decisions all the data sources,
research approaches, 3esearch instruments, sampling plan and contact methods. The
stud1 was descripti0e %ind of research!
3esearch design is mainly of following types(
/. &xploratory research.
-. Descriptive studies
4. .ausal studiesM&xperimental studies
6! E$plorator1 research2-
The maor purposes of exploratory studies are the identification of problems, the more
precise *ormulation of problems and the formulations of new alternative courses of
action. The design of exploratory studies is characteri"ed by a great amount of flexibility
and ad'hoc veracity.
7! *escripti0e research2-
Descriptive research in contrast to exploratory research is marked by the prior
formulation of specific research Questions. The investigator already knows a substantial
>-
amount about the research problem. 6erhaps as a 3esult of an exploratory study, before
the proect is initiated. Descriptive research is also characteri"ed by a 6replanned and
structured design.
<! "ausal studies8E$perimental studies
% casual design investigates the cause and effect relationships between two or more
variables. The hypothesis is tested and the experiment is done. There are following types
of casual designs
a. %fter only with control design
b. $efore after with control design
c. $efore after without control design
d. .onsumer panel design
e. &x'post facto design
3esearch Design has been classified into four subsections they are(
/. Sample selection and si"e0
-. Sampling procedure0
4. Data collection0 and
=. %nalytical tools
&ample &election and si#e
The first step of research is sample selection, for which the respondents were consumers
in Faranasi city. The total consumers covered were /-K. The same questionnaires were
distributed, but only /KK fully'completed questionnaires were received. 3esults are based
>4
on the response of these /KK respondents, and in this DK respondent chosen &veready
batteries.
&ampling Procedure
There are basically two methods of sampling('
Pro/a/ilit1 sampling
!t is also known as random sampling. 7nder this sampling design every item of the
universe has an equal chance of inclusion in the sample. !t is, so to say, a lottery method
in which individual units are picked from the whole group not deliberately but by some
mechanical process. Here it blind chance alone that determines whether one item or the
other is selected. The results obtained from probability sampling can be assured in terms
of probability.
,on Pro/a/ilit1 sampling
;on 6robability sampling is that sampling procedure which does not afford any basis for
estimating the probability that each item in the population has been included in the
sample. !n this type of sampling, items for the sample selected deliberately by the
researcher0 his choice concerning the items remains supreme.
*or the study the consumers are selected by the convenience sampling method.
The selection of units from the population based on their easy availability and
accessibility to the researcher is known as convenience sampling
*ata "ollection method
*ata "ollection Method
>=
Primar1 &econdar1
Direct personal !nterview
!ndirect personal !nterview @ovt. publication
!nformation from correspondents 3eport .ommittees
#ailed questionnaire 1 .ommissions 6rivate 6ublication
Question filled by enumerators 3esearch !nstitute
The task data collection begins after research problem has been defined. There are two
methods for data collection.
Primar1 data
6rimary data may be described as those data that have been observed and recorded by the
researcher for the first time to their knowledge.
&econdar1 data
Secondary data are those data which have been already collected and analy"ed by some
earlier agency for its own use0 and later the same data are used by a different agency.
*or the present study, the survey method was used for collecting primary data. %
structured questionnaire was used for the purpose. The questionnaire included multiple
choice questions. The main source of secondary data has been the leafy ournal of
.onsumer $ehavior, and !ndian ournal of #arketing. The study employs primary data
collected by communicating with the respondents with the help of structured
questionnaire. The study mainly deals with the behavior of individual towards .onsumer
6reference for &veready $atteries in 2ucknow.
>>
6ublished Sources 7npublished Sources
Anal1tical *ata
The data thus collected, was tabulated, interpreted and analy"ed with a view to make the
study meaningful. !n the present study, hypothesis testing, percentage, frequency and
cross tabulation methods have been used for analysis.
Growth of E-commerce Over the ears
'4igure in .&* Millions+
Ta/le- 6
Oears @rowth
-KKH /C>K
-K/K 4K/>
-K// =-4K
-K/- ACHK
-K/4 /KKKK = $1billion
>A
"hart- 6
Anal1sis
!t is found that regularly increment in E-commerce and in the !"#$ it%s &ecome
'#&illion(
Interpretation
*rom the above analysis the researcher came more online users in !ndia are willing to
make purchases through the !nternet. )verall e'commerce industry is poised to
experience a high growth in the next couple of years. The CK percent year on year growth
is expected to continue and !ndia,s e'commerce market is forecast to reach a whopping
G7S /K billion by the end of -K/4.The e'commerce market in !ndia was largely
dominated by the online travel industry with DKN market share while electronic retail 8&'
Tailing9 held second spot with A.=DN market share.
>C
E-commerce Mar%et &hare 7D6<
Ta/le- 7
Segments 6ercentage
Online Travel DKN
Digital Downloads -./-N
Financial Service A.4/N
Other Online Service 5.09%
ETailing !."#%
"hart- 7
>D
Anal1sis
!t is found that regularl1 increment in E-commerce mar%et share in online tr0ell is
ADF and other segment is low!
Interpretation
E-Tailing and digital downloads are e$pected to grow at a faster rate, while online
travel will continue to rule the ma)or proportion of mar*et share( +ue to increased e-
commerce ,nitiatives and awareness &y &rands, e--ailing has e.perienced decent
growth(
>H
4indings
 )nline users in !ndia are willing to make purchases through the !nternet. )verall
e'commerce industry is poised to experience a high growth in the next couple of
years. The CK percent year on year growth is expected to continue and !ndia,s e'
commerce market is forecast to reach a whopping G7S /K billion by the end of
-K/4.The e'commerce market in !ndia was largely dominated by the online travel
industry with DKN market share while electronic retail 8&'Tailing9 held second
spot with A.=DN market share.
AK
 The company should improve its promotional activities through advertisement,
free gifts coupons etc. Since the price of the product is also an important factor
which influence the purchasing decision so the company should design the
products price according to the customer affordance level.
 &'#ar$eter %orecasts that %ro& '009 to '01( online travel sales will grow at a
'".#% ann)al rate* higher than the '(.(% rate %or +', eco&&erce. This
indicates that travel is one o% the $e- drivers o% eco&&erce sales in the ./.,
region.
 The total online transactions in !ndia was 3s. CKDK crores 8approx G/.C> billion9 in
the year -KKH' -K/4 and expected to grow by 4KN to touch H-/K crores 8approx
G-./> billion9 by the year -K//'-K/-.
 !n !ndia, the number of valid credit and debit cards in circulation is -,KKK lakh.
During -KKH'/K, the number of transactions on such cards had been of the order of
"*0"0 la$h and the a&o)nt o% transactions 0 #9*'10 crore. The n)&ber o% card
transactions increased b- 19(% d)ring the 2eriod '00(0" to '00910.
A/
Recommendations
%fter completion of the research work the researcher came to some conclusions which
could help the company in development 1 improvement of service process. This is
helpful in future development of the company. The following points come in the
suggestion parts which came after the analysis and conclusion of the research('
A-
 The company should improve the quality of the product.
 *urther 3esearch in this area after a span of years, time would be worthwhile to
do because the &'.ommerce market is not stable.
 % research based on &'.ommerce market and new market may be come in future.
 Since &'.ommerce market depends on company on a large scale and they are of a
very fluctuating nature, further research on exchange rate would be prudent.
 %t the same time, research on the interest rate would be sensible0 because, as &'
.ommerce market have a fluctuating nature, variables depends upon the
manpower of any country for its progress and on the whole interest rate are co'
related with the &'.ommerce market.
 !n the market more scripts are required in the &'.ommerce market segment.
 The company should improve its promotional activities through advertisement,
free gifts coupons etc. Since the price of the product is also an important factor
which influence the purchasing decision so the company should design the
products price according to the customer affordance level.
A4
 )nline users in !ndia are willing to make purchases through the !nternet. )verall
e'commerce industry is poised to experience a high growth in the next couple of
years. The CK percent year on year growth is expected to continue and !ndia,s e'
commerce market is forecast to reach a whopping G7S /K billion by the end of
-K/4.The e'commerce market in !ndia was largely dominated by the online travel
industry with DKN market share while electronic retail 8&'Tailing9 held second
spot with A.=DN market share..
"onclusions
%s &'commerce in !ndia is at nascent stage but growing at a very high rate, these
competition issues may arise in the near future. &'commerce may become a platform for
the anti'competitive agreements between the companies. There are some international
cases where anti'trust issues have come up with &'commerce as a platform. .redit cards
being the facilitators of &'commerce, some international case studies are done where anti'
competitive agreements and anti'trust issues between the credit cards companies have
come up. .redit cards market in !ndia is growing at a fast rate. These issues may come up
in !ndia in the near future. %s stated in the last section, ..! must keep an eye on
A=
developing &'commerce market in !ndia as well as the credit cards companies that might
indulge in the anti'competitive practices to increase their own profits.

*rom above analysis and research proect we can conclude as follows
 The researcher found that the &' market position is good.
 &'Tailing and digital downloads are expected to grow at a faster rate, while online
travel will continue to rule the maor proportion of market share. Due to increased
e'commerce !nitiatives and awareness by brands, e'Tailing has experienced decent
growth.
 The result shows that the companies which are providing more facilities are
leading in the market.
 The researcher found that the companies, who are spending more money on their
promotional activity 1 market attractive schemes with low price, are successful in
the market.
 The result shows that the companies which employee,s cooperation is good are
leading in the market.
A>
5imitations of the Research
 The time available to conduct the study is little0 it being a wide topic has a limited
time.
 2imited resources are available to collect the information about the human
resource development.
AA
 #arket is so much volatile and it is difficult to forecast anything about it whether
you trade online or offline.
 Some of the aspects may not be covered in my study, its gives knowledge about
&'.ommerce and &'.ommerce growth small prospects and its challenges.
 !n a rapidly changing market, analysis on one day or in one segment can change
very quickly. The environmental changes are vital to be considered in order to
assimilate the findings.
 The foremost limitation is regarding the sources of information. The information
contained has been obtained from sources believed to be reliable and in good
faith, but which may not be verified independently.
 The limitation is that some of the calculations are based on certain assumptions
considered appropriate.
 7sing several statistical tools derives the estimates. Hence the findings obviously
carry all the limitations of the statistical tools used.
 Same sets of data from different sources are different. Since not all the data are
available from a single source, an attempt has been made to standardi"e the data
wherever required, which is essential to maintain uniformity throughout the
proect.
AC
 The aggregate figures for various parameters are subect to exclusion or inclusion
of various constituent variables. <hile sincere efforts are made to ensure the
absence of mismatch, the extent to which this can be done is limited.
Bi/liograph1
Boo%s8Maga#ines Referred2-
 :otler Philip - Armstrong Graw- “Principle of Mar%etingG
6earson &ducation, ;ew Delhi -KKC. 6ublisher' Dorling
5indersley 8!ndia9 6vt. 2td.
AD
 :otler Philip- PMar%eting ManagementG2 Anal1sis planning
Implementations - control 6earson &ducation, ;ew Delhi
-KK4, //
t h
&dition!
 :othari "! R! 3 “Research Methodolog1G -
nd
revised edition
-KK= published by ;ew %ge !nternational 2td.
 Beri- PMar%eting ResearchG 'Tata Mc Graw-(ill+ /HH4 -
nd
&dition.
 “Mar%eting &trateg1 and ManagementG- Mr! Michael H!
Ba%er!
 Gupta "B-“An Introduction to &tatistical Method 8Fikas9G
/HH>, H
t h
&dition!
 E0eread1 In-house ,ewsletters!
B.&I,E&& MAGAII,E - ,EC& PAPER2
 The Times of !ndia
 The &conomic Ti mes
 =6s, 6itch, $usiness 1 &conomy
AH
 $usiness <ord1 $usiness Standard
 $usiness Today
 $usiness
Internet2
 www.google.com
 www.eveready.com
 www. &vereadybatteries.com
CK