A PROJECT REPORT

ON

RISING TREND OF E-COMMERCE PLATFORM

A PROJECT SUBMITTED
TO
University of Mumbai for partial completion of
the degree of
Bachelor in Business Management Studies
(Finance)

Under the Faculty of

Commerce

By

MARIYA BASHEER AHMAD MUKADAM

Under the
Guidance of

PROF.SHARAVATHI.C

MAHATMA EDUCATION
SOCIETY’S
 PILLAI COLLEGE OF ARTS COMMERCE AND
SCIENCE,
PLOT NO 10, SECTOR- 16, NEW PANVEL-
410206
2019-
20
(AUTONOMUS)

DECLARATION BY LEARNER

I the undersigned Miss MARIYA BASHEER AHMAD MUKADAM hereby,

declare that the work embodied in this project work titled
“RISING TRENDS OF E-COMMERCE PLATFORM”, forms my own
contribution to the research work carried out under the
guidance of PROF.SHARAVATHI.C is a result of my own research
work and has and has not been previously submitted to any other
Degree/Diploma to this or any other University.

Wherever reference has been made to previous works of others,

it has been clearly indicated as such and included in the
bibliography.

I, here by further declare that all information of this

document has been obtained and presented in accordance with
academic rules and ethical conduct.

Name
and Signature of the Learner
Certified by

Name and Signature of the Guiding Teacher

ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are

so numerous and the depth is so enormous.

I would like to acknowledge the following as being idealistic

channels and fresh dimensions in the completion of this
project.

I take this opportunity to thank the University oh Mumbai for

giving me chance to do this project.

I would like to thank my Principal Dr (C.A) GAJANAN WADER for

providing the necessary facilities required for completion of
this project.

I take this opportunity to thank our Coordinator in Charge

Prof. SUNITA SAINI, for her moral support and guidance.
I would also like to express my sincere gratitude towards my
Project Guide Prof. SHARAVATHI.C whose guidance and care made
the project successful.

I would like to thank my College Library, for having provided

various reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly
or indirectly helped me in the completion of the project
especially my Parents and Peers who supported me throughout my
project.

INDEX
SR CHAPTERS PAGE
NO. NO.

1 CHAPTER 1: INTRODUCTION 1-24

1.1 Introduction to E-Commerce

1.2 History/Background of E-Commerce

 2 CHAPTER 2: RESEARCH METHADALOGY 25-32
2.1 Objective of Study

2.2 Scope of Study

2.3 Limitation of Study

2.4 Significance of Study

2.5 Selection of Problem

2.6 Sample Design

2.7 Sources of Data Collection

3 CHAPTER 3: REVIEW OF LITERATURE 31-39

4 CHAPTER 4: CONCEPTUAL FRAMEWORK 40-44

5 CHAPTER 5: DATA ANALYSIS AND INTERPRETATION 45-65

6 CHAPTER 6: FINDING, SUGGESTION AND CONCLUSION 66-71

7 CHAPTER 7: BIBLIOGRAPHY 72

8 CHAPTER 8: APPENDIX 73-79

Questionnaire

CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION TO E-COMMERCE

E-commerce means using the Internet and the web for business transactions and/or commercial transactions,
which typically involve the exchange of value (e.g., money) across organizational or individual boundaries
in return for products and services. Here we focus on digitally enabled commercial transactions among
organizations and individuals.
E-business applications turn into e-commerce precisely, when an exchange of value occurs. Digitally enabled
transactions include all transactions mediated by digital technology and platform; that is, transactions that
occur over the Internet and the web.

Hence, e-tailing is a subset of e-commerce, which encapsulates all “commerce” conducted via the Internet.
It refers to that part of e-commerce that entails the sale of product merchandise and does not include sale of
services, namely railway tickets, airlines tickets and job portals.

The term electronic commerce or e-commerce refers to any sort of business transaction that involves the
transfer of information through the internet. By definition it covers a variety of business activities which use
internet as a platform for either information exchange or monetary transaction or both at times.

There are three types of destinations that cater to retail sales:

1. Traditional retail- brick-and-mortar
2. Corporatized retail- brick-and-mortar
3. Corporatized retail- e-tailing

 MEANING OF E-COMMERCE:
E-Commerce or Electronic Commerce means buying and selling of goods, products, or services over the
internet. E-commerce is also known as electronic commerce or internet commerce. These services provided
online over the internet network. Transaction of money, funds, and data are also considered as E-commerce.
These business transactions can be done in four ways: Business to Business (B2B), Business to Customer
(B2C), Customer to Customer (C2C), Customer to Business (C2B).

The standard definition of E-commerce is a commercial transaction which is happened over the internet.
Online stores like Amazon, Flipkart, Shopify are examples of E-commerce websites. By 2020, global retail
e-commerce can reach up to $27 Trillion. Let us learn in detail about what is the advantages and
disadvantages of E-commerce and its types.

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For example, the numbers of consumer brand retail sites like information about products and also allows
monetary transactions to happen over the internet. On the contrary there are the auctions sites like
Quickr.com and Ebay.com where the information about certain listed products and services are provided but
the monetary transactions normally happen physically.

Apart from these two categories of e-commerce sites, there are some sites which enable businesses to
exchange trading goods and also service between two or more companies. All of these forms of internet-
based business platforms are known as e-commerce.
Over the last decade the advent of e-commerce has actually transformed the manner in which people used
internet. People now are not only just using internet for gathering information, leisure or socializing online
but also at the same time they are seeking measures to conduct business.

 OBJECTIVES OF E-COMMERCE:
1. Development of Business Relationship
2. Better customer service
3. Getting more customers

 KEY FEATURES:
Feature 1. E-Commerce is Technology-Enabled:
Traditional commerce is taking place since times immemorial but E-commerce is result of integration of
digital technology with business processes and commercial transactions. The technological foundations of
E-commerce are internet, WWW and various protocols.

Feature 2. Technology Mediated:

In E-commerce buyers and sellers meet in cyber space rather than physical place. Hence E-commerce does
not involve face to face contact.

Feature 3. Universality:
Buying and selling take place through websites in E-Commerce. The websites can be accessed from
anywhere around the globe at any time therefore it possesses the feature of universality.

Feature 4. Intercommunication:
E-commerce technology ensures two-way communications between buyer and seller. On one hand by using
E- commerce firms can communicate with customers through E-commerce enabled websites. On the other
end, customers can also fill order forms, feedback forms and can communicate with business operating firms.
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Feature 5. Delivery of Information:

E-commerce serves as the best channel of communication. E-commerce technologies ensure speedy delivery
of information at very low cost and considerably increase information density as well.

Feature 6. Electronic Completion of Business Processes:

By using E- commerce we can perform business transactions like accounting and inventory through
computers at global level.
Feature 7. Virtual Communities:
Virtual Communities are online communities created by means such as chat rooms and specifically designed
sites like, where people can interact with each other having common interest using the internet.

Feature 8. Inter-Disciplinary in Nature:

Implementation of E-Commerce needs a lot of knowledge of managerial, technological, social and legal
issues. Besides this, understanding of consumer behaviour, marketing tools and financial aspects is as crucial
as designing interactive E- Commerce websites.

Feature 9. Customization:
With the use of E-commerce technology, the world is moving from mass-production to mass-customization.
Product customization ensures that goods are tailor made as per the requirements and preferences of
customers.
Like Dell Computers Website www(dot)dell(dot)com enables the consumers to mention configuration of a
Computer and then the product is made available and delivered as per the configuration ordered by the
customer.

 TYPES OF E-Commerce:
5 Major Types: Business-to-Business, Business-to-Consumer, Business-to-Government, Consumer-to-
Consumer and Mobile Commerce.
The major different types of E-Commerce are:
I. Business-to-Business (B2B);
II. Business-to-Consumer (B2C);
III. Business-to-Government (B2G);
IV. Consumer-to-Consumer (C2C);
V. Mobile Commerce (M-Commerce).

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Type I. Business to Business (B2B):
1. Business to Business or B2B refers to E-Commerce activities between businesses.
2. In E-Commerce B2B, transactions are usually carried out through Electronic Data Interchange or EDI.
EDI is an automated format of exchanging information between businesses over private networks.
3. EDI is composed of standards that enable businesses’ computers to conduct transactions with each other,
without human intervention.
4. For Example- Manufacturers and wholesalers are B2B companies.

Type II. Business to Customer (B2C):

1. Business to Customer or B2C refers to E-Commerce activities that are focused on consumers rather than
on businesses.
2. For instance, a book retailer would be a B2C company such as Amazon.com

Type III. Customer to Business (C2B):

1. Customer to Business or C2B refers to E-Commerce activities, which use reverse pricing models where
the customer determines the price of the product or services.
2. For example – tele workers and online auctions are C2B processes.

Type IV. Customer to Customer (C2C):

1. Customer to Customer or C2C refers to E-Commerce activities, which uses an auction style model.
2. Customers are also the business and C2C enables customers to directly deal with each other. An example
of this is peer auction giant, E Bay.

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Type V. M-Commerce (Mobile Commerce):
1. M-commerce (mobile commerce) is the buying and selling of goods and services through wireless
technology i.e., handheld devices such as cellular telephones and personal digital assistants. Japan is seen as
a global leader in m-commerce.
2. As content delivery over wireless devices becomes faster, more secure and scalable, some believe that m-
commerce will surpass wire line e-commerce as the method of choice for digital commerce transactions.
This may well be true for the Asia-Pacific where there are more mobile phone users than there are Internet
users.
3. E-commerce stands for electronic commerce, wherein shopping is done over the internet. ... M-commerce
implies the use of mobile devices, so people can do their business transactions anywhere they go as long as
they can access the internet on their smartphones and can perform transactions with just a few taps on the
screen.
4. M-commerce (mobile commerce) is the buying and selling of goods and services through wireless
handheld devices such as smartphones and tablets.

 E-Commerce – Need in Modern Business Era:

Electronic commerce, known as E-Commerce, occurs daily when sellers and buyers use the internet to
conduct business transactions. Technology makes it possible for anyone to buy or sell practically anything
online.
The study of following factors shows the need for E-Commerce in modern business era:
1. Wider Audience- The internet provides businesses, access to millions and millions of people. A 2010
survey by Internet World Stats showed there are 266,244,500 internet users in North America. On the World
Wide Web, companies move beyond geographic limits to reach wider audience.

2. Cost Efficiency- At the beginning of the internet age in the 1990s, creating websites was a costly
undertaking. As the years passed, building websites became less and less expensive. In fact, small businesses
can now build their own sites.

3. Faster Information- The information superhighway permits speedy exchange of data across the world,
which also means new information, is available faster.

4. Enhanced Service- Development of E-Commerce equipped domestic providers to offer more services to
clients.
Some of the other reasons for need of E-Commerce in modern economy is:
1. Wider audience reach.
2. Purchase decisions are influenced by E-Commerce
3. E-Commerce provides convenience
4. Store promotions becomes easy with E-Commerce

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  Business Applications: Sale, Purchase of Goods, Real Estate Market, Online Banking,
Delivery of Goods, Import and Export, E-Tailing and a Few Others.

Following are the major business application areas where E-Commerce is used widely:
1. Sale, Purchase of Goods:
By using E-Commerce, consumers can buy the various products and services from the different
manufacturers. Industries can purchase raw materials, components etc. using E- Commerce. Sellers can sell
their products by using E-commerce.

2. Real Estate Market:

Online real estate services are provided by websites that show listing of houses, shops and flats put up for
sale and rent. Online real estate sites play supporting role for property dealer. Now builders can use virtual
reality technology on their website to demonstrate three-dimensional floor plans to buyers. This helps real
estate companies to attract buyers.

3. Online Banking:
Online Banking is also known as electronic banking, Net banking, virtual banking and internet banking
online banking is defined as automated delivery of new and traditional banking products and services through
electronic and interactive communication channels. Customers can access online banking services by using
electronic devices like laptop, ATM.

4. Delivery of Goods:
E-Commerce allows the delivery of products. For example, the computer software is directly downloaded
by the software manufacturer on computer of the customer.

5. Import and Export:

Electronic payments are playing a great role in import and export business. The internet has simplified the
import and export business. By using E-commerce importers can make enquiries about the products, their
manufacturers, price, quality, other terms and conditions etc. Exporters can also make enquiries
about suitable customers. Payments can be made by electronic modes including digital means like internet.

6. Supply Chain Management:

A supply chain is a set of relationships between a number of companies who have a symbiotic relationship
with each other in that one company supplies commodities or services to other companies which, in turn,
supply commodities or services to other companies, and so on.
An important point about an application such as this one is that information should be kept confidential as it
flows across the internet.

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7. E-Tailing:
E-tailing refers to retailing over the internet. Thus an E-t is a B2C business that executes a transaction with
the final consumer. E-tailer can be pure play businesses like amazon.com or businesses that have evolved
from a legacy business, Tesco.com.

 E-COMMERCE CHANNELS:
1. COMMERCIAL CHANNELS:
These channels provide information, news, libraries, education, travel, sports and reference, entertainment,
shopping services, dialogues opportunities and e-mail etc.

2. THE INTERNET:
The Internet is a global web of computer networks that has made instantaneous and decentralised global
communication possible.

 Essentials and Procedures:

Product/Service, Processing Mechanism, Payment Gateway, Delivery of Product, After Sale Service and
Reverse Logistics. E-commerce operates digitally. It has some unique ways to put a business transaction in
place. Let’s see how this happens:
1. Product/Service:
For E-commerce to happen there should be a prod-uct or service that has value and for which someone is
willing to pay a price. If this criterion is met, then you can sell anything on ecommerce websites—gadgets,
books, automobiles, grocery, toys, apparel, vegetables and digital goods such as music, e-books, software,
air tickets, magazine subscriptions and the like.
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2. Processing Mechanism:
The ecommerce website of a company should put an easy process in place so that the customer browsing
through the site can place an order. The software that makes this happen is called a shopping cart.

3. Payment Gateway:
Once the customer fills the cart with items that he or she has shopped, the site should take the customer
towards the payment gateway, which collects money electronically. If the product is downloadable such as
music, e-book etc., the website must also provide for that after accepting payment from customer.

4. Delivery of Product:
Once customers make the payment, the e-com-merce site must ensure the delivery of product in good
condition on time. Logistics is a specialized function, so most sellers outsource it to third party logistics
providers. Like Amazon using the services.

5. After Sale Service:

Customers need to be serviced pre-sales as well as post sales. Before the sale, customers might have queries
about product features that are not mentioned on the website. They might have ques-tions about
customization and accessories. After the sale, customers might have queries related to the usage, repair or
enhancement of the products or services that they have already purchased.

6. Reverse Logistics:
There is no guarantee of supplying an error-free product. If products get damaged or stop functioning after
a while, or a wrong product is delivered—the ecommerce seller must ensure the flow of products in the
reverse direction—known as reverse logistics—where goods flow from customer to the seller.

 Internet Strategies for Business and Key Success Factors in E-Commerce:

Internet users are better educated, better informed. As more and more people find their way onto the internet,
the cyberspace population is becoming more mainstream and diverse

Younger users of Internet in general place a greater value in information, entertainment, socialising etc. Old
users are more likely to use Internet for investment and more serious matters. In general, Internet users
respond to messages aimed at selling, and receive information about products and services.

Internet ‘search engines’ such as “Yahoo” and “Google” give consumers access to varied information
sources, making them better informed and more discerning shoppers.

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  E-COMMERCE FOUR MAJOR MARKET SEGMENTS

E-commerce is a means of conducting business, where the buying or selling of goods and services or the
transmitting of funds or data, occur via electronic medium. There are no physical market places and the
entire process of marketing and selling of goods, takes place on-line or electronically. This means, the buyer
and the seller do not often meet face to face. It is a replica of a physical market place in the virtual world.

E-commerce, also called e-trading, operates in all four major market segments – Business to Business,
Business to Consumer, Consumer to Consumer and Consumer to Business. Examples of E-commerce
include on-line shopping, electronic payments, on- line auctions, internet banking, on-line ticketing etc.

(1) E-TAILING:
E-Tailing is the abbreviation of electronic retailing. It is the sale of goods and services through the internet.
E-tailing involves business-to-business or business-to-customers transactions. It can be regarded as the
internet front of any traditional retailer.

E-tailing shops believe in building strong brands. The web sites they create are easily understood by the
visitors. They also provide discounts and offers to engage the customers. The pricing, in E-tailing shops, is
generally lower than that of a traditional shop.

In this way the e-tailing shops lure the customers to make purchases on-line. The customers also get benefited
from the fact that he/she does not need to physically visit the shop for making the purchase. The customers
are free to make their own decisions regarding the purchase, at their own leisure time. However, e-tailing
shops need to have a strong distribution network in order to secure the delivery of the products.

(2) E-ADVERTSING:
E-Advertising is the mechanism of promoting products or services on-line. It is the process of gaining
attention of the customers, through the digital media.

The main purpose of e-advertising is to reach out to a wider range of customers. It is more cost effective
when compared to the traditional forms of advertising. E-advertising also enables you to target the specific
customers.

On safeguard to be taken regarding E-advertising is that advertisement had to be consistently monitored and
controlled because if it is done poorly, it can severely damage the image of the company.

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(3) E-Marketing:
Electronic marketing (e-marketing) is also known as internet marketing, web marketing and digital
marketing on on-line marketing. It is the process of marketing a product or service using the internet, e-mail
and wireless media. Unlike e-advertising, e- marketing is very subtle. It is not always a direct message of
persuasion but rather it is something which will educate the customers and convince them to buy the product
or service.

Digital marketing techniques include Search Engine Optimization (SEO), Search Engine Marketing (SEM),
content marketing, e-commerce marketing, social media marketing, display advertisement, marketing
through SMS and on-hold mobile ring tones, etc.

When compared to the means of traditional marketing, e-marketing offers several advantages. E-marketing
provides much better return on the investment made by the marketer. It reduces the cost of marketing
campaign. The marketer can easily monitor and track activities.

 IMPACT OF E-COMMERCE:

E-commerce has made a profound impact on society. People can now shop online in the privacy of their own
homes without ever having to leave. This can force larger brick and mortar retailers to open an online
division. In some cases, it can also force smaller businesses to shut their doors, or change to being completely
online.
It also changes the way people look at making purchases and spending money. E-commerce has changed the
face of retail, services, and other things that make our economy work. Undoubtedly, it will continue to
influence how companies sell and market their products, as well as how people choose to make purchases
for many years to come.
THE IMPACTS OF E-COMMERCE ON ECONOMY ARE AS FOLLOWS:
(1) Impacts on Directing
 Product promotion
 Customer service
 Direct savings
 Advertisements
 Customization
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(2) Impacts on Organisation
 Technology and organisational learning
 Changing nature of work
 New product capabilities
(3) Impacts on Manufacturing
(4) Impacts on Finance
(5) Impacts on Supply Chain Management

 E-COMMERCE ADVANTAGES AND DIS-ADVANTAGES.

ADVANTAGES:
e-commerce provides the following main advantages:
(1) Convenience –
Customers can order products or services 24 hours a day wherever they are.

(2) Information –
Customers can find reams of comparative information about companies, products, competitors and prices
without leaving their office or home.

(3) Fewer Hassel –

Customers don’t have to face sales people or open themselves up to persuasion and emotional factors, they
also don’t have to wait in line.

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(4) Quick Adjustment to Market Conditions by Marketers –
Companies can quickly add products to their offering and change prices and descriptions.

(5) Lower Cost –

On-line Marketers avoid the expense of maintaining a store and the costs of rent, insurance and utilities.
They can produce digital catalogues for much less cost than the cost of printing and mailing paper catalogues.

(6) Relatively Building –

On-line marketers can dialogue with consumers and learn from them. Marketers can download useful reports
or a free demo of their software.

(7) Audience Sizing –

On-line Marketers can learn how many people visited their web site and how many of them shopped at
particular places on the site. This information can help them improve offers and advertisements.

(8) On-line Marketing –

It is easy affordable by small firms, who otherwise would not have been able to advertise in the print or
broad cost media.

(9) E-Commerce –
E-commerce through Internet and web site can access and retrieve information very fast, compared to
overnight mail and even fax.

(10) Large and Medium –

These companies have designed their own websites to automate corporate purchasing. The high cost on
invoices and purchase order copies including time are saved a great deal due to E-Commerce and Internet
phase.

(11) Internet newsgroups set up for commercial purposes help companies place on-line advertisements and
thus save cost and time.

(12) New groups, Bulletins board systems (BBSs) and Web committees help also buyers, sellers and people
in general to have access to valuable information on diverse topics including information of cultivation for
farmers.
 (12)

DIS-ADVANTAGES:
1. Security:
Security continues to be a problem for online businesses. Customers have to feel confident about the integrity
of the payment process before they commit to the purchase. Banks such as ICICI Bank, HDFC Bank, State
Bank of India have added secure payment gateways to process online bank-ing transactions quickly and
safely.

2. System and Data Integrity:

Data protection and the integrity of the system that handles the data are serious concerns. Computer viruses
are rampant, with new viruses discovered every day. Vi-ruses cause unnecessary delays, file backups, storage
problems, and other similar difficulties. The danger of hackers accessing files and corrupting accounts adds
more stress to an already complex operation.

3. System Scalability:
A business develops an interactive interface with customers via a website. After a while, statistical analysis
determines whether visitors to the site are one-time or recurring customers. If the company expects 2 million
customers and 6 million show up, website performance is bound to experience degradation, slowdown, and
eventually loss of customers. To stop this problem from happening, a website must be scalable, or upgradable
on a regular basis.

4. E-Commerce is Not Free:

So far, success stories in e-commerce have forced large business with deep pockets and good funding to
invest in creating on-line web-sites. According to a report, small retailers that go head-to-head with e-
commerce giants are fighting losing battle. As in the brick-and-mortar environment, they simply cannot
compete on price or product offering. Brand loyalty is related to this issue, which is supposed to be less
impor-tant for online firms. Brands are expected to lower search costs.

5. Consumer Search is not Efficient or Cost-Effective:

On the surface, the electronic marketplace seems to be a perfect market, where worldwide sellers and buyers
share and trade without intermediaries. However, a closer look indicates that new types of intermediaries are
essential to e-commerce. They include electronic malls that guar-antee legitimacy of transactions. All these
intermediaries add to transaction costs.

6. Customer Relations Problems:

Not many businesses realise that even e-business cannot survive over the long term without loyal customers.
Building customer loy-alty to a specific site is not an easy task. Customers are notoriously fickle-minded,
and do not minding visiting a competing website just to avail even one-time benefits or discounts.
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7. Products-People Won’t Buy Online:

Imagine a website called furniture, com or living.com, where venture capitalists are investing millions in
selling home furnishings online. In the case of a sofa, you would want to sit on it, feel the texture of the
fabric etc. Beside the sofa test, online furniture stores face costly returns which makes the product harder
to sell online.

8. Corporate Vulnerability:
The availability of product details, catalogues, and other information about a business through its web-site
makes it vulnerable to access by the competition. The idea of extracting business intelligence from the
website is called web framing. And such threats are in-creasing day by day.

9. High Risk of Internet Start-Up:

Many stories unfolded in 1999 about successful executives in established firms leaving for In-ternet start-
ups, only to find out that their get-rich dream with a dot.com was just that – a dream.

GROWTH OF E-COMMERCE IN INDIA:

India is rapidly marching towards becoming a digitally empowered society. The push for e-governance, the
proliferation of smartphones, increasing Internet access and booming digital payments are fuelling the
country’s journey towards a trillion-dollar digital economy by 2025. The widespread acceptance of Digital
is being seen as a catalyst for overall economic growth, and with the combination of favourable
demographics and policy reforms, India presents a unique and powerful growth story. With Internet
penetration expected to almost double to 60% by 2022, the country is arguably the world’s most promising
Internet economy, with a rapidly increasing ‘netizen’ population.
India has an internet users base of about 475 million as of July 2019, about 40% of the population. This
number is expected to be 627 million by the end of 2019. Despite being the second-largest userbase in
world, only behind China (650 million, 48% of population), the penetration of e-commerce is low
compared to markets like the United States (266 million, 84%), or France (54 M, 81%), but is growing,
adding around 6 million new entrants every month. The industry consensus is that growth is at an
inflection point.

In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail
activities. Demand for international consumer products (including long-tail items) is growing faster than
in-country supply from authorised distributors and e-commerce offerings. In 2017, the largest e-commerce
companies in India were Flipkart, Amazon, Paytm, and Snapdeal. In 2018, Amazon beat Flipkart and was
recorded the biggest ecommerce in India in terms of revenue.

According to reports published by International Monetary Fund (IMF) and Central Statistics Office (CSO),
India is among the fastest growing economies in the world. Among several factors, a conscious
patronization of online commerce, and an emergence of retail as a dominant market segment have
contributed to the unprecedented growth of eCommerce in India.
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For the financial year 2016-17, eCommerce sales reached the US $16 billion with a projection of a seven-
fold growth within the next two fiscals as estimated by Morgan Stanley. By 2020 online commerce sales is
expected to cross $120 billion.

The three principal driving factors for this growth in eCommerce sector of India are:
 Participation of niche companies in online trading
 Unmatched FDI (Foreign Direct Investment)
 Uniform GST (Goods and Services Tax)

1. Participation of Niche Companies:

With the increase in awareness about the benefits of online trading, there has been a significant rise in
investment in eCommerce business. Hand in hand with offline trading, many established business houses
have set up online transaction channels. Online retailing is the ‘in-thing’ in today’s commerce. Every other
day a new company is being set in the online retail segment.

Specialization and customization are the underlining features of online trading. eCommerce companies are
specializing in exclusive items and have consciously moved away from the ‘one for all’ concept. Every new
company is focusing on a definite item or targeting a particular demographic segment. So instead of
addressing universally, it is better to concentrate on a single area and execute it to your best ability.
Consumers prefer this kind of preferential treatment and personalized attention.

India, being a land full of diversity offers ample scope for new companies to join in this eCommerce business
tirade. Business opportunities are limitless considering the innumerable clothing, food, and cultural habits
of Indian communities.

2. Role of FDI:
Foreign Direct Investments (FDIs), till lately, was not allowed in eCommerce for single brand or multi-brand
retail companies. It was only allowed for B2B businesses. Now, FDI is allowed in cases of wholesale trading
or in cases where involvement is limited to use of technology platform.
The ever-expanding Indian eCommerce market has attracted companies from Europe and United States who
are joining as conglomerates. Though FDI has been successful in lending variety to online market of India,
their full participation is limited by government laws.

3. Implementation Of GST:
A uniform taxation structure, which GST (Goods and Services Tax) purports to achieve would contribute to
the success of eCommerce business in India. Online business is carried out pan-India, and a uniform tax
structure makes calculations easier and uniform. Same tax for same product or service across Indian Territory
would certainly help in maintaining price uniformity. For online business operators, differential tax structure
was a deterrent.
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Inclusion of food and Grocery in Online Retailing:

Earlier, food and grocery were never thought of as items for online trading. However, with the change of
working habits, and consumers opting for adaptability and convenience, there are now innumerable small
and large eCommerce companies selling provisions and food items. Indian eCommerce industry is in a
position to sustain itself as a viable business opportunity not only for established names but even for start-
ups. Thus, we believe that for many young Indians, online shopping may become their primary way to shop
throughout their lives. Whenever significant opportunities like e-commerce present themselves, many
market participants compete aggressively to try to emerge as undisputed leaders to gain brand recognition
and customer loyalty and often times these players change their business models along the way to grow with
the market, said the report.

TOP 7 E-COMMERCE WEBSITES IN INDIA.

Recent years have seen an exceptional evolution in the way India trades and shops. E-commerce is one of
the rapidly growing sectors, stimulating an entire generation of entrepreneurs, large scale manufacturing of
small and medium-sized enterprises. E-commerce has enabled helped reduce barriers and bring the
manufacturer closer to the customer. The presence of a virtual store on e-commerce websites has helped
millions of business flourish in India and has led to more employment opportunities as well.

Today, technology has advanced at a rapid pace and with the use of smart phones, the online shopping
experience has become seamless for customers. With easy to use mobile apps with elaborate store catalogues,
e-commerce has ushered new opportunities for both traders and consumers.

India is one of the largest markets of e-commerce players. With giants like Amazon, Flipkart, Snapdeal, and
Myntra, new entrants like PayTm Mall, Shopclues, etc are also establishing a strong hold in the Indian
market.
 (16)

1. Amazon:
Amazon is one of the biggest online stores with a global presence. It not only provides a variety of product
choices but also provides a great user experience and splendid customer service. Besides putting prominence
to personalization, Amazon also monitors user’s browsing and purchase patterns in order to provide them
recommended products for future purchases. It operates in India as a marketplace rather than a retailer.
Amazon has started two new initiatives for sellers in India: the ‘Self Service Registration (SSR)’ and
‘Amazon Easy Ship’.

Amazon SSR allows sellers to self-register in Amazon marketplace, irrespective of location and size of the
catalogue. It enables sellers to start selling within a day without any third-party intervention. With Amazon
Easy Ship, the seller has to pack the shipment and confirm to Amazon that they are ready to ship. Amazon
Logistics ensures that the pack is delivered to the customers within two to three working days.

With new features such as Amazon Prime, customers can receive delivery of products within 24 hours. By
reducing the shipping time, Amazon keeps both retailers and customers happy and increases customer
stickiness on the website. Right from mobile phones, to fashion products, electrical appliances, books, and
grocery, Amazon has become a one-stop shop for all consumer needs.

2. Flipkart:
Flipkart is an Indian based e-commerce venture and over the years, it has garnered a lot of interest in the
minds of Indian consumers. It has opened up the scope for Indian e-tail market in a tremendous way. It
started out as an online bookstore and now it has a gamut of products ranging from: books, apparels,
electronics, digital music, home care and beauty. Moreover, it has now become a mega marketplace.
Flipkart’s fundamental differentiator is its supply chain efficiency— definitive delivery of goods. It has been
continuously developing and improving the customer experience. The website is easy to browse, hassle-free,
and convenient.

Two of the most important reasons for Flipkart’s grand success are the discounts and the option of Cash- on-
Delivery which makes consumers more confident in purchasing products. Flipkart has an amazing customer
retention rate with 70% of repeat customers. Apart from the shopping experience, Flipkart’s biggest online
shopping festival – Big Billion Days is one of the most successful campaigns and it churns out millions of
orders during that shopping season.

3. Jabong:
Jabong came into the e-commerce market with a bang and created a revolution within 6 to 7 months of 3
third-party sellers. They predominantly cater to apparel, footwear, jewellery, and accessories and catalogue
more than 50,000 products across 700 brands.

(17)
Jabong is known for its own logistics network that ensures fast delivery. If you are in a city like Delhi, you
are bound to receive the product within 24 hours of order placement. Jabong is also trying to expand its
international presence through its site ‘JabongWorld.com’. It ships Indian products to international
customers.

One of Jabong’s uniqueness lies in its new idea of a fashion magazine— “The Juice “an interesting blend of
fashion, people, trends and pop culture. The magazine has everything in it that readers would love to read in
a fashion magazine. Jabong has also collaborated with films such as “Bhaag Milkha Bhaag”, “Main Tera
Hero”, and “Humpty Sharma ki Dulhaniya” to offer exclusive products inspired by the movie. The various
payment gateways offered by Jabong have made it convenient for consumers to order products from the
website. In 2016, Jabong was acquired by Myntra.

4. Snapdeal
Snapdeal is a successful e-commerce portal catering to customer’s buying needs at a much wider aspect. It
was established with a concept of making products available to the customers at a discounted rate through
offers and Snapdeal coupons.

It gives you the best deals in a particular city in various service categories ranging from: restaurants, spas
and salons, apparel, footwear, baby care, home and décor. It has adopted the marketplace business model.
Snapdeal came up with a unique idea of permitting local vendors and manufacturers to publish their product
catalogue and sell it on the Snapdeal portal. This avoids expensive costs involved in building own inventory.

Snapdeal’s business model was awarded with mammoth funding to scale up their products, business and
operations. It focuses on logistics and efficient delivery to customers. It operates in such a fast pace that a
new product is added in every 30 seconds.
5. Myntra
Myntra is one of the largest shopping e-tailers in fashion and lifestyle merchandise. It supplies a wide range
of products from clothing to footwear and accessories. It focuses on bringing the most fashionable brands
for its customers. In 2014, Myntra was acquired by Flipkart. Myntra has created a niche in the territory of e-
commerce and subtle trust from people. Additionally, from discounts to Cash-on-Delivery benefits, the
Myntra success mantra belongs to its hybrid logistics model. It takes uttermost care of its supply chain
management and employs delivery agents with high experience.

Myntra has also come up with a complete guide to your everyday fashion and latest style trends. The
“MyntraLookGood” is a daily fix of style tips, beauty tricks, celeb fashion, and non-stop entertainment. The
tie-ups with celebrities and events are an outstanding strategy by Myntra to represent that fashion is in its
DNA. Myntra has many celebrity brands— Hrithik Roshan’s HRX, Salman Khan’s Being Human, Deepika
Padukone’s All About You, and Farhan Akhtar’s MARD. They believe that Bollywood influences fashion
and frequent tie-up with celebrities helps to bring customers closer to Myntra.

(18)

6. Shopclues
Shopclues is the latest addition to the top e-commerce websites in India. Unlike Amazon and Flipkart,
Shopclues is a market place that focuses on unstructured categories of home, electrical, fashion, and daily
utility items. The mass market of shopclues comes from tier 2 and tier 3 cities and most of its business
comes from smaller cities. Shopclues helps give brands from unstructured markets a voice of its own.
Shopclues has a comparatively larger merchant base. It focuses on small and medium sized traders located
in smaller cities and helps them take their business online. With over 50 million visitors on its website, one
of the major revenues generating categories has been the home and kitchen appliances category.

7. PayTm
PayTm is the second largest e-commerce platform in India and has also made its way to the list of unicorn’s
start-ups. Primarily started as a mobile wallet, in 2016, PayTm entered the e-commerce industry with PayTm
Mall. As the name suggests, it is an online market place for products ranging from electronics to daily
consumer needs.

One of the attractive features of PayTm has been its cashback feature. Consumers are given a variety of
discount coupons to choose from and also provide good savings on the purchase of goods. With close to 120
million buyers on the platform, PayTm Mall is finding new ways to enhance the buying experience. It is also
collaborating with retail brick-and-motor stores and with use of its mobile app and QR codes, it takes the
customer through an online shopping experience with attractive discounts.

Thus, India is a growing marketplace and e-commerce industries are bound to flourish. But with the right
technology and design strategy, new entrants can have a competitive edge.
Be it a website, a mobile app, or even building a market place software from scratch, GoodWorkLabs has
helped clients in the retail, real estate, and fashion industry build powerful e-commerce applications for their
business.

SOME OTHER TOP E-COMMERCE WEBSITES IN INDIA ARE AS FOLLOWS:

1. Shein
2. Ebay
3. Koovs
4. Homeshop18
5. Target
6. Lenskart
7. Alibaba
8. Gadgetsguru
9. Toabao
10. Walmart
(19)

1.2 HISTORY/BACKGROUND OF E-COMMERCE.

One of the most popular activities on the Web is shopping. It has much allure in it — you can shop at your
leisure, anytime, and in your pajamas. Literally anyone can have their pages built to display their specific
goods and services.

History of ecommerce dates back to the invention of the very old notion of "sell and buy", electricity, cables,
computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened
to commercial use. Since that date thousands of businesses have taken up residence at web sites. The history
of E-commerce begins with the invention of the telephone at the end of last century. EDI (Electronic Data
Interchange) is widely viewed as the beginning of ecommerce if we consider ecommerce as the networking
of business communities and digitalization of business information. Large organizations have been investing
in development of EDI since sixties. It has not gained reasonable acceptance until eighties. The meaning of
electronic commerce has changed over the last 30 years.

Originally, electronic commerce meant the facilitation of commercial transactions electronically, using
technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These were
both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders
or invoices electronically. The growth and acceptance of credit cards, automated teller machines (ATM) and
telephone banking in the 1980s were also forms of electronic commerce. Another form of E-commerce was
the airline and railway reservation system.

At first, the term ecommerce meant the process of execution of commercial transactions electronically with
the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer
(EFT) which gave an opportunity for users to exchange business information and do electronic transactions.
The ability to use these technologies appeared in the late 1970s and allowed business companies and
organizations to send commercial documentation electronically.

Online shopping, an important component of electronic commerce was invented by Michael Aldrich in the
UK in 1979. The world’s first recorded business to business was Thomson Holidays in 1981. The first
recorded Business to consumer was Gateshead SIS/Tesco in 1984. During the 1980s, online shopping was
also used extensively in the UK by auto manufacturers such as Ford, General Motors and Nissan. The
systems used the switched public telephone network in dial-up.

From the 1990s onwards, electronic commerce would additionally include enterprise resource planning
systems (ERP), data mining and data warehousing. An early online information marketplace, including
online consulting, was the American Information Exchange, another pre-Internet online system introduced-
in 1991.

In 1990 Tim Berners-Lee invented the World Wide Web and transformed an academic telecommunication
network into a worldwide everyman everyday communication system called internet/www(dot)Commercial
enterprise on the Internet was strictly prohibited until 1991.
(20)

Although the Internet became popular worldwide around 1994 when the first internet online shopping
started, it took about five years to introduce security protocols and DSL allowing continual connection to
the Internet. By the end of 2000, many European and American business companies offered their services
through the World Wide Web. Since then people began to associate a word “E-commerce” with the ability
of purchasing various goods through the Internet using secure protocols and electronic payment services.

Although the Internet began to advance in popularity among the general public in 1994, it took approximately
four years to develop the security protocols (for example, HTTP) and DSL which allowed rapid access and
a persistent connection to the Internet. In 2000 a great number of business companies in the United States
and Western Europe represented their services in the World Wide Web. At this time the meaning of the word
ecommerce was changed. People began to define the term ecommerce as the process of purchasing of
available goods and services over the Internet using secure connections and electronic payment services.

The dot-com collapsed in 2000 led to unfortunate results and many of ecommerce companies disappeared,
the "brick and mortar" retailers recognized the advantages of electronic commerce and began to add such
capabilities to their web sites (e.g., after the online grocery store Webvan came to ruin, two supermarket
chains, Albertsons and Safeway, began to use ecommerce to enable their customers to buy groceries online).
By the end of 2001, the largest form of ecommerce, Business-to-Business (B2B) model, had around $700
billion in transactions.

GRAPH- RETAIL E-COMMERCE SALES:

 Estimated U.S. Retail E-commerce Sales as a
Percent of Total Retail Sales. (1999-2007)

3.4

2.8
2.4
2.1
1.8
1.6
1.2
1
0.6

1999 2000 2001 2002 2003 2004 2005 2006 2007

E-commerce sales

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According to all available data, ecommerce sales continued to grow in the next few years and, by the end of
2007, ecommerce sales accounted for 3.4 percent of total sales.

Ecommerce has a great deal of advantages over "brick and mortar" stores and mail order catalogues.
Consumers can easily search through a large database of products and services. They can see actual prices,
build an order over several days and email it as a "wish list" hoping that someone will pay for their selected
goods. Customers can compare prices with a click of the mouse and buy the selected product at best prices.

Online vendors, in their turn, also get distinct advantages. The web and its search engines provide a way to
be found by customers without expensive advertising campaign. Even small online shops can reach global
markets. Web technology also allows to track customer preferences and to deliver individually-tailored
marketing.

History of ecommerce is unthinkable without Amazon and Ebay which were among the first Internet
companies to allow electronic transactions. Thanks to their founders we now have a handsome ecommerce
sector and enjoy the buying and selling advantages of the Internet. Currently there are 5 largest and most
famous worldwide Internet retailers: Amazon, Dell, Staples, Office Depot and Hewlett Packard. According
to statistics, the most popular categories of products sold in the World Wide Web are music, books,
computers, office supplies and other consumer electronics.
Amazon.com, Inc. is one of the most famous ecommerce companies and is located in Seattle, Washington
(USA). It was founded in 1994 by Jeff Bezos and was one of the first American ecommerce companies to
sell products over the Internet. After the dot-com collapse Amazon lost its position as a successful business
model, however, in 2003 the company made its first annual profit which was the first step to the further
development.

At the outset Amazon.com was considered as an online bookstore, but in time it extended a variety of goods
by adding electronics, software, DVDs, video games, music CDs, MP3s, apparel, footwear, health products,
etc. The original name of the company was Cadabra.com, but shortly after it become popular in the Internet
Bezos decided to rename his business "Amazon" after the world's most voluminous river. In 1999 Jeff Bezos
was entitled as the Person of the Year by Time Magazine in recognition of the company's success. Although
the company's main headquarters is located in the USA, WA, Amazon has set up separate websites in other
economically developed countries such as the United Kingdom, Canada, France, Germany, Japan, and
China. The company supports and operates retail web sites for many famous businesses, including Marks &
Spencer, Lacoste, the NBA, Bebe Stores, Target, etc.

Amazon is one of the first ecommerce businesses to establish an affiliate marketing program, and nowadays
the company gets about 40% of its sales from affiliates and third-party sellers who list and sell goods on the
web site. In 2008 Amazon penetrated into the cinema and is currently sponsoring the film "The Stolen Child"
with 20th Century Fox.

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According to the research conducted in 2008, the domain Amazon.com attracted about 615 million
customers every year. The most popular feature of the web site is the review system, i.e. the ability for
visitors to submit their reviews and rate any product on a rating scale from one to five stars. Amazon.com is
also well-known for its clear and user-friendly advanced search facility which enables visitors to search for
keywords in the full text of many books in the database.

One more company which has contributed much to the process of ecommerce development is Dell Inc., an
American company located in Texas, which stands third in computer sales within the industry behind
Hewlett-Packard and Acer.

Launched in 1994 as a static page, Dell.com has made rapid strides, and by the end of 1997 was the first
company to record a million dollars in online sales. The company's unique strategy of selling goods over the
World Wide Web with no retail outlets and no middlemen has been admired by a lot of customers and
imitated by a great number of ecommerce businesses. The key factor of Dell's success is that Dell.com
enables customers to choose and to control, i.e. visitors can browse the site and assemble PCs piece by piece
choosing each single component based on their budget and requirements. According to statistics,
approximately half of the company's profit comes from the web site.
In 2007, Fortune magazine ranked Dell as the 34th-largest company in the Fortune 500 list and 8th on its
annual Top 20 list of the most successful and admired companies in the USA in recognition of the company's
business model.

History of ecommerce is a history of a new, virtual world which is evolving according to the customer
advantage. It is a world which we are all building together brick by brick, laying a secure foundation for the
future generations.

THE INTERNET AND THE WEB:

The Internet was conceived in 1969, when the Advanced Research Projects Agency (a Department of
Defence organization) funded research of computer networking. The Internet could end up like EDI without
the emergence of the World Wide Web in 1990s. The Web became a popular mainstream medium (perceived
as the fourth mainstream medium in addition to print, radio and TV) in a speed which had never been seen
before. The Web users and content were almost doubled a couple of months in 1995 and 1996.

Michael Aldrich. Michael Aldrich (22 August 1941 – 19 May 2014) was an English inventor, innovator and
entrepreneur. In 1979 he invented online shopping to enable online transaction processing between
consumers and businesses, or between one business and another, a technique known later as e-commerce.
History of ecommerce dates back to the invention of the very old notion of "sell and buy", electricity, cables,
computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened
to commercial use. Since that date thousands of businesses have taken up residence at web sites.

(23)

INDIAN SCENARIO:
There is no denying the fact that e-commerce has re-entered India and is here to stay. Even the small and
medium retailers of the country want to ride the wave and are ready to make a fortune out of the market
place concept. It may be now that online shopping has become popular but the concept of e-Commerce was
introduced long back in the 20th century.

Circa 1991: Introduction of E-Commerce

The year 1991 noted a new chapter in the history of the online world where e-commerce became a hot choice
amongst the commercial use of the internet. At that time nobody would have even thought that the buying
and selling online or say the online trading will become a trend in the world and India will also share a good
proportion of this success.

Circa 2002: IRCTC teaches India to Book ticket online.

India first came into interaction with the online E-Commerce via the IRCTC. The government of India
experimented this online strategy to make it convenient for its public to book the train tickets. Hence, the
government came forward with the IRCTC Online Passenger Reservation System, which for the first time
encountered the online ticket booking from anywhere at any time. This was a boon to the common man as
now they don’t have to wait for long in line, no issues for wastage of time during unavailability of the trains,
no burden on the ticket bookers and many more.
The advancements in the technology as the years passed on have been also seen in the IRCTC Online system
as now one can book tickets (tatkal, normal, etc.) on one go, easy payments, can check the status of the ticket
and availability of the train as well. This is a big achievement in the history of India in the field of online E-
Commerce.

Circa 2003: Introduction of Low-Cost Airline with AirDeccan

After the unpredicted success of the IRCTC, the online ticket booking system was followed by the airlines
(like AirDeccan, Indian Airlines, SpiceJet, etc.). Airline agency encouraged, web booking to save the
commission given to agents and thus in a way made a major population of the country to try E-Commerce
for the first time. Today, the booking system is not just limited to the transportation rather hotel bookings,
bus booking etc. are being done using the websites like MakeMyTrip and Yatra.

Circa 2007: The Deeply Discounted model of Flipkart,

The acceptance of the ecommerce on a large scale by the Indian people influenced other business players
also to try this technique for their E-businesses and gain high profits. Though online shopping has been
present since the 2000 but it gained popularity only with deep discount model of Flipkart. In a way it re-
launched online shopping in India. Soon other portals like Amazon, Flipkart, Jabong, etc. started hunting
India for their businesses.

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CHAPTER 2: RESEARCH
METHADALOGY
2.1 OBJECTIVE OF
STUDY

The objective of this study is to use of e-commerce domain companies and consumers. This study is
conducted to evaluate the perception and attentive and secure recommending payment method based on
analysis and study. The results are expected to contribute significantly towards the current thinking, security
regarding e-commerce online transactions. The main objectives are involved an attempt to determine the
current awareness and alert in the particular area in ecommerce like security issues, Screening,
Recommended payment method, Internal order cancellations. This study provides best solution to e-
commerce domain companies/industries and alert and awareness to common man.

For safe and secure transaction consumers and e-commerce domain companies should follow some basic
rules and regulations with latest technologies. Hacking is now a day’s very common so we consumers’ and
companies they should maintain their transaction more secure and safe in this regards our study proposing
and recommending best payment method and discussing Internal order cancellation. This is an alarming sign
for the whole world.
(1) VISION STATEMENT:
1. To meet the altering & challenging needs of society in the field of E-commerce Online
transactions by innovation, problem solving, eradicating threats;
2. To make Cyber world safer, better managed and easy for the common man, E-commerce
companies;
3. To STOP victimizing the innocent;
4. To promote the e-commerce transactions by making it Safe and Secure.
5. To enhance the confidence level of the common people to carry e-commerce activities like online
transactions, purchases, auctioning;
6. To look toward a next generation approach to security engineering by Research;
7. Safe and secure solution solutions in the payment method.
8. Simple and easy flow chart for Internal order cancellation to Companies.
Our driving vision is a networked world in which software and systems can be understood far better and
faster is possible today.

(2) MISSION STATEMENT:

To create and distribute knowledge through research, creative inquiry and learning to make our contribution
to the society to eradicate global cyber-crime. This awareness can be increased through a series of seminars
to make the common man in the society ‘ALERT & AWARE’ of issues of Cyber-attacks and solutions
thereof. And SAFE & SECURE transactions through online”
(25)
To transfer our intellectual findings to enhance society in meaningful and sustainable ways. Main Mission
of this study is to make the entire society AWARE & ALERT, SAFE and SECURE transactions and
knowledge on security and safety. To give best solutions to E-commerce domain companies in the area of
different kinds of Screenings, safe and secure, trusted payment method, internal order cancellations for
solving placed orders.

SOME OTHER OBJECTIVES OF E-COMMERCE IS AS FOLLOWS:

1. The motto of e-commerce activity is to reach millions of customers easily and to increase sales in
business. It generates a high revenue in the online industry as the viewers are turning into the audience
every day.

2. To spread the small-scale retails into large level business, e-commerce is developed with best-in-
class features. In simple, it is a big opportunity for small vendors to huge traffic of customers.

3. To learn about the major components of E-commerce infrastructure and about the major E-commerce
security.

4. To identify and assess major technologies and methods for securing E-commerce access and
communications.
 5. To ensure one needs not to maintain the whole stock of products in most cases. To build brands more
quickly since many people can access it through social networks. To allow easy diversification of
brands once they have been built.

 OBJECTIVES (INDIAN MARKET)

1. To study the online retail growth of market in India.

2. To explore the online business of model of online business.

3. To analyse the online feedback.

4. The most prominent domain in India in which e-commerce is used most frequently.

5. To analyse the top e-commerce websites used in India.

6. To analyse the most preferred website.

7. To study which sector of occupation use e-commerce websites the most for online shopping.

8. To understand the benefits of e-commerce on Indian economy.

9. To analyse that people of which age group are most frequent users of e-commerce websites in India.

10. To reveal the satisfaction level of consumer.

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2.2 SCOPE OF STUDY

There is high scope of e-commerce in each aspect of business, at present it is in the embryonic stage but in
future e-commerce would be the part of day to day activity of business firms.

SCOPE: (INDIAN MARKET)

The scope of eCommerce Business in India is undoubtedly going to increase year after year. A recent report
by the Internet and Mobile Association of India shows that a fast-paced growth of around 50% is to be
expected in the coming five years.

The primary attribute of this growth is undoubtedly the rise of 3G/4G mobile internet users and a large
number of smartphone users because the same mobile commerce is expected to change how business
transactions happen in India.

The scope of eCommerce business is turning out to be more famous day-after-day according to the market
demand. And this requirement is generating innovations worldwide focused on delivery time, ease of
transactions and several features served by eCommerce businesses, for example, drone delivery or artificial
intelligence.

SCOPE OF FLIPKART IN INDIAN MARKET:

1. Finding out the strength and weakness of Flipkart.
2. Finding the number of future purchases.
3. Finding the customer satisfaction and their means of awareness of Flipkart.
4. Finding the perception among the competitors.
5. Finding out the perception of customers about Flipkart.

Following are the marketing areas where we seek scope of e-commerce:

 Marketing, sales and sales promotion.
 Pre-sales, subcontracts, supply.
 Financing and insurance.
 Commercial transactions – ordering, delivery, payment.
 Product service and maintenance.
 Co-operative product development.
 Distributed co-operative working.
 Use of public and private services.
 Business-to-administrations
 Transport and logistics.
 Public procurement.
 Automatic trading of digital goods like games, learning material, songs and music etc.
 Accounting and financial management.
 Legal advice
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2.3 LIMITATION OF STUDY

Though e-commerce offers many advantages to customers, business, society and nation, there are still
some areas of concern that need to be addressed. There are to types of difficulties in e-commerce study: (a)
Technical limitations (b) Non-technical limitations. The following are some of the limitations or
disadvantages of e-commerce:

1. Security
The biggest drawback of e-commerce is the issue of security. People fear to provide personal and financial
information, even though several improvements have been made in relation to data encryption. Certain
websites do not have capabilities to conduct authentic transactions. Fear of providing credit card
information and risk of identity limit the growth of e-commerce.

2. Lack of privacy
Many websites do not have high encryption for secure online transaction or to protect online identity.
Some websites illegally collect statistics on consumers without their permission. Lack of privacy
discourages people to use internet for conducting commercial transactions,
3. Tax issue
Sales tax is another bigger issue when the buyer and seller are situated in different locations. Computation
of sales tax poses problems when the buyer and seller are in different states. Another factor is that physical
stores will lose business if web purchases are free from tax.

4. Fear
People fear to operate in a paperless and faceless electronic world. Some of the business organizations do
not have physical existence, People do not know with whom they are conducting commercial transactions.
This aspect makes people to opt physical stores for purchases.

5. Product suitability
People have to rely on electronic images to purchase products. Sometimes, when the products are
delivered, the product may not match with electronic images. Finally, it may not suit the needs of the
buyers. The lack of ‘touch and feel’ prevent people from online shopping.

6. Cultural obstacles
E-commerce attracts customers from all over the world. Habits and culture of the people differ from nation
to nation. They also pose linguistic problems. Thus, differences in culture create obstacles to both the
business and the consumers.

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7. High Labour cost

Highly talented and technically qualified workforce are required to develop and manage the websites of the
organization. Since internet provides a lot of job opportunities, business organizations have to incur a lot of
expenses to retain a talented pool of employees,

8. Legal issues
The cyber laws that govern the e-commerce transactions are not very clear and vary from country to country.
These legal issues prevent people from entering into electronic contracts.

9. Technical limitations
Some protocol is not standardized around the world. Certain software used by vendor to show electronic
images may not be a common one. It may not be possible to browse through a particular page due to lack of
standardized software. Insufficient telecommunication bandwidth may also pose technical problems.

9. Huge technological cost

It is difficult to merge electronic business with traditional business. Technological infrastructure may be
expensive and huge cost has to be incurred to keep pace with ever changing technology. It is necessary to
allocate more funds for technological advancement to remain competitive in the electronic world.

 IN INDIAN MARKET:

It is not possible for any market study to make it accurate due to many hurdles in the collection of
data. Some limitations of the study are listed below,

1. The sampling frame to conduct the study has been restricted to area near Kolkata.

2. Respondents show reluctance towards giving incorrect information.

3. Findings of the study are based on the assumption that respondents have disclosed in the
questionnaire.

4. Time was a major constraint.

Thus, though E-commerce has several benefits which have a significant impact on the economy but there
are also some obstacles that are mentioned above which hinders this process.

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2.4 SIGNIFICANCE OF STUDY

Today, we can see e-commerce is becoming a part of study of almost all

the courses in management and commerce. It is an integral part of any
book or manuscript that is written on retailing, and it claims a
significant share in this text also. The reason behind this lies in the
fact that e-commerce technology is different and more powerful than any
of the other technologies we have seen in the past century.

While these other technologies transformed economic life in the 20th

century, the evolving Internet and other ITs will shape the 21st century
in many ways. The foremost of these is the rise of a sizeable class of
Internet-habituated consumers, and then is the creation of an ecosystem
essential for e-tailing’s growth. In India’s case, both these factors are
poised to fall into place rapidly.

Prior to the development of e-tailing, the process of marketing and

selling goods was a mass- marketing and/or sales force-driven process.
Consumers were considered as passive targets of advertising (promotional)
“campaigns,” and branding blitzes were intended to influence their long-
term product perceptions (brand positioning) and immediate purchasing
behaviour.

Selling was conducted in typical well-insulated “channels.” Consumers

were viewed to be trapped by geographical and social boundaries, unable
to search widely for the alternatives with best price and quality.
Information about prices, costs, and tariffs could be hidden from the
customers to get the resultant profitable “information asymmetries” for
the selling firm.

Here, information asymmetry means any disparity in relevant market

information among parties in a transaction. E-commerce has challenged
much of these traditional retail business norms, assumptions, and
behaviour.

Also, Electronic business techniques allows business, companies and organizations to link their
internal and external data processing systems more efficiently and flexibly, to work more closely with
the suppliers and partners and to better cope up the needs and expectations of the customers.

Through e-commerce consumers are give more choices on what product they will buy. Consumers can
open process and conduct the transactions whenever they want to as long as they have their gadgets
in their hands.

Thus, this study of e-commerce is very important and plays a significant role as it helps in improving
the marketing strategies which helps in increasing the sales and this results in improving the market
of the economy. This study is important as it helps in creating strong brand image which thereby helps
in attracting customers and gaining their loyalty.

(30)

2.5 SELECTION OF PROBLEM.

The tragedy of e-commerce can be measured in percentage: 75.8% (almost 8

out of 10) of online shopping carts are abandoned without the purchase
being completed. Deficient checkout processes are often singled out as
the main cause, but many other problems faced by e-commerce consumers
could be behind it.

Slow load times, poor return policies, lack of customer warranties or

absurd requirements are among the problems that make online shopping
difficult. In the following lines, you will discover these and other bad
practices that reduce the commercial performance of online stores,
knowing them is the best way to avoid them.

1. Scarce information on research sheet.

2. Slow loading times.
3. Poor logistics and long delivery times.
4. Insecurity for the consumers.
5. Bad return policies or lack of buyer warranties.

2.6 SAMPLE DESIGN.

FOR THE RESEARCH OF SAMPLE SIZE OF:

 100 respondents were taken out of which 80% of the population are frequent users of online shopping.

 The geographical area is limited within an area of Mumbai city.

SAMPLING PROCEDURE;
To obtain the representative sample, a non-probability sample can be drawn, In this study the method of
selecting samples is convenience sampling.

TOOLS:
The tools used for analysing data are rating method, graphs, pie charts etc. Questionnaire is distributed to
the individual respondents and special care has been taken to make him/her comfortable, so that he/she could
answer the questions. Convenience method is used for sampling. This method is used to follow the unbiased
answers.

2.7 SOURCES OF DATA COLLECTION

DATA COLLECTION METHOD:

  PRIMARY METHOD:

MEANING:
Primary data is data that is collected by a researcher from first-hand sources, using methods like
surveys, interviews, or experiments. It is collected with the research project in mind, directly from
primary sources. The term is used in contrast with the term secondary data.

HOW WAS IT COLLECTED?

Primary method was collected through survey method (questionnaire, observation and interview)
from the respondents. Observations regarding the rise of online shopping trends. The questionnaire
aimed at studying the customers preference and feedback for the online shopping sites Flipkart.
Unstructured interview was conducted for some of the respondents to find out the drawbacks of the
online model of Flipkart.

 SECONDARY METHOD:

MEANING:
Secondary data refers to data that is collected by someone other than the user. Common sources of
secondary data for social science include censuses, information collected by government
departments, organizational records and data that was originally collected for other research
purposes. Secondary data can save time that would otherwise be spent collecting data, particular in
case of quantitative data.

HOW WAS IT COLLECTED?

Secondary data was collected through various websites and articles available on the Internet.
Some examples of secondary data collection are as follows:
1. Economic Times Newspaper.
2. Magazines
3. Blogs
4. Wikipedia

CHAPTER 3: REVIEW OF LITERATURE.

A literature review is a comprehensive summary of previous research on a topic. The literature review
surveys scholarly articles, books, and other sources relevant to a particular area of research. ... It should
give a theoretical base for the research and help you (the author) determine the nature of your research.
The estimated internet penetration in Asia is by far the largest among any continent accounting for 42% of
the world usage. Being the second largest country in Asia, India has an internet penetration rate of 6.9%
for the year 2010, and is ahead of China in e-readiness (VAITHIANATHAN, 2010). The potential for
banking service is very high in India 2 as compared to other countries, which is evident from the
comparative statistic of number of customers per traditional bank branch among various countries
(MARAKARKANDY and DAPTARDAR, 2011) and the increase in internet usage.

In online buying the rate of diffusion and adoption of the online buying amongst consumers is still
relatively low in India. In view of above problem an empirical study of online buying behaviour was
undertaken. Base on literature review, four predominant psychographic parameters namely attitude,
motivation, personality and trust were studied with respect to online buying. The online buying decisions
are based on four parameters were designed after statistical analysis. These models were integrated with
business intelligence, knowledge management and data mining to design Behavioural Business
Intelligence framework with cohesive view of online buyer behaviour.

For better understanding the factors of internet and consumer buying behaviour towards internet shopping,
this chapter would provide academic research reviews and relative ideas expressed in the literature that is
associated with this subject.

Furthermore, a number of hypothesis will be tested to answer the research questions that is already
mentioned in the introduction.
Due to recent research shows the internet shopping becomes a full and effective business model, therefore
there are several studies that already investigated more or less related on internet shopping and consumer
behaviour. In the following chapters, some point of view will be taken from literatures, and needs careful
review to achieve them as the basis of subsequent research investigation.

Also, in this study, a narrative literature review regarding culture and e-commerce website design has been
introduced. Cultural aspect and e-commerce website design will play a significant role for successful
global e-commerce sites in the future. Future success of businesses will rely on e-commerce. To compete
in the global e-commerce marketplace, local businesses need to focus on designing culturally friendly e-
commerce websites. To the best of my knowledge, there has been insignificant research conducted on
correlations between culture and e-commerce website design. The research shows that there are
correlations between e-commerce, culture, and website design. The result of the study indicates that
cultural aspects influence e-commerce website design.

CONSUMER EMOTIONS AND E-COMMERCE: LITERATURE REVIEW:

The purpose of this paper is to take a look at the current state of the research related to consumer emotions
in the context of electronic commerce (e-commerce). As the popularity of online shopping is constantly
growing, the author performed an integrative literature review of 66 journal articles on e-emotions
(consumer emotions visible in an online environment) and classified the articles into four groups.
According to the analysis of the groups, consumer emotions are present at various points of the e-
commerce relationship from pre-purchase intentions to post consumption behaviour. Based on this
literature review, directions for future research in e-emotions are also introduced.

As we all know, internet and e-commerce are entirely committed towards every developed country. But we
think it can be accomplished and can make a remarkable benefit to developing countries also if an ideal
business purpose can be made. Ohidujja man clearly discussed that E-commerce is a revolution & turning
point in online business practices and can make a huge contribution to the economy and Hasan also
indicated that currently, e-commerce organizations have increasingly become a fundamental component of
business strategy and a strong catalyst for economic development.

A huge amount of research works has been done on e-Commerce which is basically on online shopping. A
large group of researchers has found out and also pointed out the necessity and possibilities of Online
Shopping. On the other hand, limitation of ecommerce is found and at the same time, they provided
essential suggestion and came to a prediction to make Online Shopping more useful for the consumers. But
the contribution of traditional marketing is also inescapable but compare to online shopping it is less
effective we think. So on this basis, Mehrdad Salehi found out distinguish between online marketing &
traditional marketing. Though most of the people of Bangladesh especially the rural people are not enough
capable of operating internet to run the online business. For that reason, they need to be dependent on
traditional marketing.

Thus, a literature review discusses published information in a particular subject area, and sometimes
information in a particular subject area within a certain time period. A literature review can be just a
simple summary of the sources, but it usually has an organizational pattern and combines both summary
and synthesis.

The literature review acknowledges the work of previous researchers, and in so doing, assures the reader
that your work has been well conceived. It is assumed that by mentioning a previous work in the field of
study, that the author has read, evaluated, and that work into the work at hand. A literature review creates a
"landscape" for the reader, giving her or him a full understanding of the developments in the field.

LITERATURE REVIEW: THE INIDAN SCENARIO.

Firms across the globe have adopted e-commerce (EC) in their operations and have reaped benefits thereof.
While firms in technologically developed countries like US and UK has deployed EC to its advantage,
whereas firms in developing countries like India failed to follow the suit. Though it has been widely
acknowledged by the researchers that the adoption of EC by businesses in developing countries is an
important economic indicator of growth; many firms in India still have not realized the potential benefits of
EC. This study examines the existing status of EC in India and reviews the available literature on E-
commerce adoption in India and puts forth opportunities for future research. The study might serve as a
starting point for further research in e-commerce in India.

Gupta (2014) in her paper “E-Commerce: Role of e-commerce in today’s business”, presents a
comprehensive definition of e-commerce while isolating it from e-business. The paper enlists the different
ecommerce models i.e. B2B, B2C, B2G and C2C, narratively analysing the nitty gritty of each. Rina (2016)
also elaborates the different applications of e-commerce in “Challenges and Future Scope of Ecommerce in
India”, at the same time, defining the degree to which they are operational in the country. Gunasekaran,
Marri, MCGAUGHEY, & NEBHWANI (2002) give a broad outlook of electronic commerce within
organisational systems in “E-commerce and its impact on operations management”, defining it with
reference to e-trading and elaborating- how it has permeated every field of business. The paper identifies the
revolutionary role played by earlier internet applications like e-mail and electronic data interchange and
details the revolutionary changes brought by the internet technologies in manufacturing, marketing,
purchasing, design, production, selling and distribution, warehousing and human resource management.
Internet based technologies have enabled businesses to shorten development, purchase and procurement
cycles, maintain up to date product and market information.

Also, it significantly increases the speed of communications and increase the quality of customer
relationships by facilitating close contact and constant communication. The paper studies in depth, the
significance of web-based technologies in different business operations, thus, improving their efficiency
through effective B2B e-commerce.

MISHRA and KOTKAR (2015) trace the timeline and development of B2C e-commerce in “A Study on
Current Status of E-Commerce in India: A Comparative Analysis of Flipkart and Amazon” with its inception
in the mid-1990s through the advent of matrimonial and job portals. However, due to limited internet
accessibility, weak online payment systems and lack of awareness, the progress was very slow. The Indian
B2C e-commerce industry got a major boost in mid 2000s with the expansion of online services to travel
and hotel bookings which continue to be major contributors even today. Das & Ara (2015) observe in
“Growth of E-Commerce in India” that though online travel and hotel bookings still control the lion’s share
of e-commerce market, their share has comparatively fallen over the years due to the recent augmentation
and consequent rise of e-tailing services. There has been a tremendous surge in the volume of investment in
this sector. With the e-commerce markets in the west reaching their saturation, investors see tremendous
potential in the Indian market, in the light of which, many start-ups have received funding from venture
capitalists and private equity firms.

China's Alibaba Group and affiliate Ant Financial became the largest shareholders of One97
Communications, the parent of Indian E-TAILER Paytm, by investing $680 million, in 2015 (AULAKH,
2015). To tap the potential of what it regards as “underdeveloped internet economy” of India, Japanese
investment company and technology powerhouse Softbank invested $627 million into online retailing
marketplace Snapdeal and $210 million in Ola cabs. (Mac, 2014). Similarly, New York firm Tiger Global
Management has funded companies such MakeMyTrip, Flipkart, MYNTRA and QUICKR.

The availability of funds has presented a favourable ecosystem and growth opportunities for big as well as
small companies. It has enabled local start ups to survive in cut throat competition against foreign giants and
has facilitated the penetration of e-commerce to every facet Growth of E-commerce in India: An Analytical
Review of Literature DOI: 10.9790/487X-1906019195 www.iosrjournals.org 93 | Page of human life; such
that the differentiation between e-commerce and traditional business is getting blurred.(Aggarwal, 2014).

Through “PROBLES and PROSPECTS of E-Commerce”, RAGHUNATH & PANGA (2013) present a
comprehensive analysis of various nuances of e-commerce while accentuating that, in present time every
business activity, be it advertising, ordering, payment etc, can be performed in the digital ecosystem. The
paper also enlists numerous points on the importance of e-commerce which are responsible for its
development as the new convention. It has enabled the creation and exploitation of new business
opportunities, at the same time increasing the say of customers in the development of new products and
services.

E-commerce has not only augmented the performance of internal business management, but, has also
enabled better customer relationships by promoting a business model that is essentially based on information
sharing. The accessibility of internet connectivity and other online tools herald a new revolution. SWOT
analysis of e-commerce conducted by AWAIS & SAMIN (2012) highlights ubiquity, low operating cost,
improved customer interaction and time saving as the unique strengths of e-commerce, but, at the same time
accentuates upon the necessity for the firms to adapt themselves to the changing environment and innovate
constantly to come up with better offerings for customers.

With an increase in the number of players in the B2C segment, competition for the first position is set to
intensify, making it imperative for the firms to enhance service quality and to invest in logistics, so as to
derive benefits from increase in the disposable income of households, rise in internet subscriptions and
infiltration of mobile commerce.

(Das & Ara, 2015). In the face of rising competition, the survival of the firms will depend upon how
efficiently they are able to bridge the existing gaps in e-commerce transactions. The ubiquitous nature of
internet has enabled e-commerce to defy geographical boundaries and permeate different markets, so as to
elicit demand from sub-urban and rural areas, after having successfully tapped its potential in metropolitan
cities.

In anticipation of increasing demand from Tier 2 and 3 cities, many e-commerce firms are undertaking efforts
to widen their reach by investing in better infrastructure. In the light of growing number of websites, offering
similar goods and services, greater significance is being attributed to Internet Marketing, which shall play
an unparalleled role in audience acquisition for e-commerce websites, by displaying the advertisements on
search engine result pages and other portals. Internet Marketing shall not only propel ecommerce but will
also emerge as an important support tool to brick and mortar stores. (GANGESHWAR, 2013).

Apart from Internet Marketing, DESHMUKH & THAMPI (2013) recognise another important development:
m-commerce, which they identify as a subset of e-commerce. “Transformation from Ecommerce to M-
commerce in Indian Context” reviews the current and potential status of e-commerce and m-commerce in
the Indian market, while projecting the latter as the potential future. The paper discerns ubiquity,
personalization, flexibility and immediacy as the singular advantages of m-commerce. The authors affirm
the idea that smart phone penetration and rise in internet user base, mostly driven by youth, shall propel the
growth of e-commerce.
Statistical data is used to emphasize that the infrastructure requisite for m-commerce development already
exists, however, it is yet to be properly deployed. With mobile penetration providing a boost to digital
downloads and enabling cheaper monetary transfers, the need of the hour is to enhance customer confidence
by providing them assurance of safety and privacy, which shall accelerate movement towards a cashless
economy. Despite innumerable prospects, the growth of e-commerce in India has not been up to its full
potential.

The growth of digital commerce in India is impeded by inadequate infrastructure, logistics failure, lack of
tax uniformity and declining margins. In the face of intense competition, firms have to pamper the customers
with huge discounts, everyday offers and liberal returns policy which proves detrimental to their profits.
As against the firms following inventory model, e-market places are more adversely affected by subsidies
as they have to offer incentives to the seller for listing their products on the website in addition to the
humungous discounts and wide range of offers to the customers. The increasing fulfilment costs (includes
every cost incurred from the point an order is placed till the time its delivered to the customer.), lack of last
mile connectivity in many sub-urban and rural areas and the rising reverse logistics also hinder the growth
of e-commerce firms by resulting in huge loss.(Rina, 2016).

Also, Businesses use IT innovations to achieve strategic objectives (Pandya, 2008). The use of internet and
other networking technologies for conducting business transactions is called as electronic commerce
(VAITHIANATHAN 2010). India's overall e-commerce potential is estimated at 146.2 million or 61.3% of
total consumer households in the country for the year 2009–2010 (Internet and Mobile Association of India
report, 2011).

In Online buying the rate of diffusion and adoption of online buying amongst consumers is still relatively
low in India There are four parameters in literature review. The online buying decision process models were
designed after statistical analysis. These models were integrated with business intelligence, knowledge
management and data mining.

India's overall e-commerce potential is estimated at 146.2 million or 61.3% of total consumer households in
the country for the year 2009–2010 (Internet and Mobile Association of India report, 2011). The size of
Indian business to customer (B2C) segment in the e-commerce industry has been growing tremendously
over the last few years with an annual growth rate of 30% (2010). Internet is not considered as merely
information sharing resource but is increasingly used as distribution channel (KARDARAS and
Papathanassiou, 2001), to advertise financial services (Birch and Young, 1997) and to carry out financial
transactions (VIJAYGEETA, 2011).

The estimated internet penetration in Asia is by far the largest among any continent accounting for 42% of
the world usage. Being the second largest country in Asia, India has an internet penetration rate of 6.9% for
the year 2010, and is ahead of China in e-readiness (VAITHIANATHAN, 2010). The potential for banking
service is very high in India 2 as compared to other countries, which is evident from the comparative statistic
of number of customers per traditional bank branch among various countries (MARAKARKANDY and
DAPTARDAR, 2011) and the increase in internet usage.

Keyword search on “E-commerce adoption in India”, “E-Business in India”, “E-commerce and India”, “E-
Business and India” in various databases like EBSCO, ProQuest and Emerald Management Xtra found the
following E-commerce research articles done in Indian context:
(1) Raven et al.
(2) Malhotra and Singh,
(3) Vishwanathan and Pick.
(4) Dasgupta and Sengupta.
(5) Tarafdar and Vaidya.

Also, in India a narrative literature review regarding culture and e-commerce website design has been
introduced. Cultural aspect and e-commerce website design will play a significant role for successful global
e-commerce sites in the future. Future success of businesses will rely on e-commerce. To compete in the
global e-commerce marketplace, local businesses need to focus on designing culturally friendly e-commerce
websites. To the best of my knowledge, there has been insignificant research conducted on correlations
between culture and e-commerce website design.

The research shows that there are correlations between e-commerce, culture, and website design. The result
of the study indicates that cultural aspects influence e-commerce website design. This study aims to deliver
a reference source for information systems and information technology researchers interested in culture and
e-commerce website design, and will show less focused research areas in addition to future directions.

CHAPTER 4: CONCEPTUAL FRAMEWORK.

MEANING:

A conceptual framework is an analytical tool with several variations and contexts. It can be applied in
different categories of work where an overall picture is needed. It is used to make conceptual distinctions
and organize ideas. Strong conceptual frameworks capture something real and do this in a way that is easy
to remember and apply.

Isaiah Berlin used the metaphor of a "fox" and a "hedgehog" to make conceptual distinctions in how
important philosophers and authors view the world.[1] Berlin describes hedgehogs as those who use a single
idea or organizing principle to view the world (such as Dante Alighieri, Blaise Pascal, Fyodor Dostoyevsky,
Plato, Henrik Ibsen and Georg Wilhelm Friedrich Hegel). Foxes, on the other hand, incorporate a type of
pluralism and view the world through multiple, sometimes conflicting, lenses (examples include Johann
Wolfgang von Goethe, James Joyce, William Shakespeare, Aristotle, Herodotus, Molière, and Honoré de
Balzac).

Economists use the conceptual framework of "supply" and "demand" to distinguish between the behaviour
and incentive systems of firms and consumers. Like many conceptual frameworks, supply and demand can
be presented through visual or graphical representations (see demand curve). Both political Science and
economics use principal agent theory as a conceptual framework. The politics-administration dichotomy is
a long-standing conceptual framework used in public administration.[3] All three of these cases are examples
of a macro level conceptual framework.

A conceptual framework represents the researcher's synthesis of literature on how to explain a phenomenon.
It maps out the actions required in the course of the study given his previous knowledge of other researchers'
point of view and his observations on the subject of research.

CONCEPTUAL FRAMEWORK OF E-COMMERCE:

Framework tells about the detail of how ecommerce can take place. It defines actually how e-commerce
implemented, how online trading or business can be done. It defines important components that should be
present to do some transaction.

Network Infrastructure is called as “Information super highway” is the path through which actual
information flows and moves between sender and receiver. The web allows small businesses and individuals
to develop content in the form of Hypertext mark-up language and publish it on a web server. Web provides
a means to create product information (content) and a means to publish it in a distribution centre. Once
contents have been created and stored on a server, messaging and information distribution methods carry
that content across the network. Network Infrastructure includes the different methods for facilitating online
buying and selling processes.
 Common Business Service Infrastructure.
PUBLIC,
POLICY AND Messaging and Information Distribution TECHNICAL
LEGAL STANDARD
System.
PRIVACY FOR
ISSUES Multimedia Content and Network DOCUMENTS
, SECURITY
Publishing System.
AND
NETWORK
Network Infrastructure. PROTOCOL.

Thus, Framework tells about the detail of how ecommerce can take place. It defines actually how e-
commerce implemented, how online trading or business can be done. It defines important components that
should be present to do some transaction.

 EVOLUTION OF E-COMMERCE: A CONCEPTUAL FRAMEWORK.

Before the 1990s, the digital exchange of information between companies was achieved using electronic
data interchange (EDI) and needed agreement between the organizations. The early 1990s saw the
commercialization of the Internet and the advent of open computer technology and connectivity became
affordable for individuals as well as businesses. The consequence was the World Wide Web. As e-commerce
activities extended across businesses, enterprises, and industries, a genre of Web sites emerged allowing the
integrative management of business operations. Here, we provide an evolutionary perspective of e-
commerce Web sites. We posited that there have been four eras. To chart the evolution of e-commerce Web
sites, a conceptual framework was developed to characterize such sites. Based on the framework, we
conducted a longitudinal study between 1993 and 2001. The result showed that the proposed four eras were
clearly discernible.

 ABSTRACT:
The recent boom in the new economy of internet-based commerce has created a large number of firms with
a variety of business models that aim to leverage the power of the internet to further their business goals. In
this paper we attempt to provide a conceptual framework for understanding e-commerce business models on
a number of important dimensions - nature of consumer activity, nature of e-commerce activity, target
customers, targeting strategy, revenue generating modes, delivery modes, payment collection modes,
operating modes, market places, advantage mechanisms and domination characteristics. We also examine
means of improving value proposition and net-friendliness for e-commerce activities and identify areas
where e-commerce models have not been explored or fully exploited so far.

Since the range of economic activities on the internet is vast and growing, newer models and opportunities
are likely to emerge through improvements in internet technologies as well as innovations in their application
to business contexts. Hence any conceptual framework on e-commerce business models, including our own,
can never be comprehensive.
  CONCEPTUAL FRAMEWORK: NATIONAL AND INTERNATIONAL SCENARIO.
(FLIPKART)

NATIONAL SCENARIO:

Flipkart has worked wonders in the field of E-commerce, wholly revolutionizing the way Indians purchased
the products, that to directly from the conglomerates themselves. This was brought about by a sound Finance
System.

Initially the founders had spent Rs 4 Lakhs to set up the business. Flipkart has later raised funding from
venture capital funds Accel India (US$1 million in 2009) and Tiger Global (US$ 10 million in 2010 and
US$ 20 million in June 2011). On 24th August 2012, Flipkart announced the competition of its 4th round of
$150 million from MIH (part od Naspers Group) and ICONIQ Capital.
The company announced, on 10th July 2013, that it has raised and additional $200 million from existing
investors including Tiger Global, Naspers, Accel Partners and ICONIQ Capital.

Flipkart’s reported sales Rs 40 million in FY- 2008-2009, Rs 200 million in FY 2009-2010 and Rs 750
million for FY 2010-2011. In FY 2010-2011, Flipkart is set to cross the Rs 5 Billion (US $100 million) mark
as Internet usage in the country increases and people get accustomed to making purchases online. Flipkart
projects its sale to reach Rs 10 billion by 2014. On average, Flipkart sells 20 products per minute and is
aiming at generating a revenue of Rs 50,000 crore (US $ 8 Billion) by December 2015.

On November 2012, Flipkart became one of the companies being probed for alleged violations of FDI
regulations of Foreign Exchange Management Act, 1999.

In July 2013, Flipkart raised USD 160 million from private equity investors, taking the total to USD 360
million in its recent fund-raising drive to build and strengthen technology and bolster its supply chain.

In October 2013, it was reported the Flipkart had raised an additional $ 160 million from new investors
DRAGONNER Investment Group, Morgan Stanley Investment Management, SOFINA SA and Vulcan
Capital with participation from existing investor Tiger Global. With this, the company had raised a total
$360 million in its 5th round of funding, the largest investment raised by an Internet company in India,
emulating INMOBIS’S $200 million investment from Softbank in September 2011.

The company valued at approx. US$ 15.5 billion (May 2015), and plans to use the capital raised to improve
its technology and supply chain capabilities, enhance its end user experience and for hiring.

India’s E-commerce market was worth about $2.5 Billion in 2009, it went up to $6.3 Billion in 2011 and
$14 Billion in 2012. About 75% of this is travel related (Airline tickets, Railway tickets, Hotel bookings,
Online mobile recharge etc.) Online retailing comprises about 12.5% ($300 Million as of 2009).

India’s retail market is estimated at $470 Billion in 2011 and is expected to grow to $675 Bn by 2016 and
$850 Bn by 2020, - estimated CAGR of 7%. According to Forrester, the E-Commerce market in India is set
to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012-16.

INTERNATIONAL SCENARIO:

Flipkart’s reach has not yet reached the International market so we cannot comment on this International
Scenario but the management has plans of extending its business to the South East Asian region.
 CHAPTER 5: DATA ANALYSIS AND INTERPRETATION.

 MEANING:

Data analysis is, a process that involves examining, and moulding, collected data for interpretation to
discover relevant information, draw or propose conclusions and support decision-making to solve a research
problem. This involves interpreting data to answer research questions and making research findings be ready
for dissemination. Data analysis also serves as a reference for future data collection and other research
activities.
During data analysis:
1. Data collected is transformed into information and knowledge about a research performed.
2. Relationships between variables are explored.
3. Meanings are identified and information is interpreted.

 DATA ANALYSIS AND INTERPRETATION OF E-COMMERCE WEBSITE. (FLIPKART)

This chapter aims to obtain the objective of the study by critically analysing the qualitative data through
thoroughly examining the interviewee’s responses and beliefs. This has been achieved through evaluating
the most relevant responses by the participants. The data has been analysed and discussed by comparing the
comments made by the respondents with the literature review keeping in mind the research objective of the
study. Thus, the rationale of this analysis is based on the personal answers provided by the respondents. An
appropriately designed questionnaire was used to collect the primary data for the study. The data for 100
respondents was organized systematically in tables and graphs and then was subjected to analysis using
appropriate statistical tools. The results of the analysis are presented in the following section in order to asses
the customer perception towards online shopping on Flipkart.com in India. Here, for analysing we are
considering two factors. That is: 1. Demographical Factors and 2. Behavioural Factors.
DEMOGRAPHICAL FACTORS.

(1) AGE GROUP:

TABLE- AGE WISE RESPONDENTS:

Particulars 15-25 25-35 35-45 45 and Total

above.
No. of Respondents. 63 24 12 1 100

Percentage. 63 24 12 1 100

GRAPH: AGE WISE RESPONDENTS:

Age Group

1%
12%

15-25
25-35
24%
35-45
63%
45 & above

ANALYSIS AND INTERPRETATION:

Above figure shows that 63% respondents are between 15-25 years old, 24% respondents are between 25-
35 years old, 12% respondents are between 35-45 years old and 1% respondents are between 45 & above
years old. Overall results show that between all of the respondents who has age between 15-35 years (63%
+ 24% = 87%) people are more families to shop online on my target population.
(2) GENDER OF RESPONDENTS.

TABLE- GENDER WISE RESPONDENTS:

PARTICULARS MALE FEMALE TOTAL

Responses 58 42 100

Percentage 58 42 100

GRAPH- GENDER WISE RESPONDENTS:

Gender

Male
42% Female

58%

ANALYSIS AND INTERPRETATION:

According to demography profile, in this study 58% male and 42% female respondents are part of my target
population and they help me to fulfil their questionnaire from different area of Mumbai city. From these
groups total respondents are 100. So, according to survey results, male respondents are more and can be told
that they are more interested in online shopping then female, even though both of them shop online.
(3) OCCUPATION.

TABLE- OCCUPATION WISE RESPONDENTS:

PARTICULARS BUSINESS HOUSEWIFE SALARIED STUDENT TOTAL

PERSON
No. of 8 7 46 39 100
respondents.
Percentage 8 7 46 39 100

GRAPH- OCCUPATION WISE RESPONDENTS:

Occupation

8%
7%
Business
39%
Housewife
Salaried
Student
46%

ANALYSIS AND INTERPRETATION:

In this survey 46% are salaried and 39% are students. So they both together made majority of respondents
(85%). 8% are business person and 7% are housewife. Salaried person and students will always look for new
technologies and new services which make them more comfort.
(4) ANNUAL INCOME.

TABLE- INCOME WISE REPONDENT:

PARTICULARS 0-3L 3-6L 6-9L 9L & ABOVE

No. of 60 23 13 4
respondents.
Percentage 60 23 13 4

GRAPH- INCOME WISE RESPONDENTS:

Annual Income

1%
13%

0-3L
3-6L
24% 6-9L
62%
9L & Above

DATA ANALYSIS AND INTERPRETATION:

Since 39% of this survey is students most of them are 0-3L income range, that is 60%. 23% of them are in
3-6L income range, 13% in 6-9L and 4% is 9 & above.
(5) EDUCATIONAL QUALIFICATION.

TABLE- EDUCATIONAL WISE RESPONDENT:

PARTICULARS GRADUATE POST SSC OTHERS

GRADUATE EQUIVALENT (PHD)
No. of 63 36 0 1
respondents
Percentage 63 36 0 1

GRAPH- EDUCATIONAL WISE RESPONDENT:

Educational Qualification

2%
0%
18%
Graduate
Post Graduate
SSC or Equivalent
Others (PHD)

80%

DATA ANALYSIS AND INTERPRETATION:

All of this in this survey are graduate and above qualified person. Among these 63% are graduate, 36% are
post graduate, 0% SSC or Equivalent and 1% people are others (PHD).
BEHAVIOURAL FACTORS.

(6) FREQUENCY OF PURCHASE FROM ONLINE.

TABLE- ONLINE SHOPPING USAGE:

PARTICULARS ALWAYS OFTEN SOMETIMES SELDOM NEVER TOTAL

Male 5 21 29 3 0 58
Female 4 14 23 1 0 42

Total 9 35 52 4 0 100

GRAPH- ONLINE SHOPPING USAGE:

Chart Title
35

30

25

20

15

10

0
Always Often Sometimes Seldom Never

Male Female

ANALYSIS AND INTERPRETATION:

More than half of them use online shopping sometimes, that is 52%. People who always and mostly shop
through online shopping are also good in number, 9 and 35, together 44%. And who use online shopping
rarely is very less in number 4%. Since only 44% are mostly using this, there is a wide space to fill and to
make online shopping a great success. And there is not much gender difference in online shopping, which
means both males and females enjoying online shopping and its benefits.

(7) This survey is conducted on those people who do online shopping and are aware of Flipkart. So everyone
answered ‘YES’ for Question no.7.
 (8) MODES OF AWARENESS OF FLIPKART.

TABLE- MODES OF AWARENESS ABOUT FLIPKART:

Particulars Word Advertisement Blog Links Promotional Search Total
of recommendations from Emails Engines
mouth other
websites
No. of 39 22 2 15 5 17 100
respondent
Percentage 39 22 2 15 5 17 100

GRAPH- MODES OF AWARENESS ABOUT FLIPKART:

Chart Title
45
40
35
30
25
20
15
10
5
0

No. of Respondents

ANALYSIS AND INTERPRETATION:

Most of them are aware about Flipkart through word of mouth (39%) followed by television and online
advertisements (22%). Customers got aware through blog recommendations (2%) and promotional e-mails
(5%) are very less in number.
This means a good communication about Flipkart is going on through friends and families this proves that
word of mouth strategy by them is the most successful means of making people aware about their products.
Success can only be gained through delighted customers who act as advocates for their products and there is
a wide scope of other digital advertisement techniques like search engine marketing, Email marketing,
providing links and blog recommendations in order to make more customers.
(9) FREQUENCY OF USING FLIPKART.COM WHILE ONLINE PURCHASING.

TABLE- FREQUENCY OF USING:

PARTICULARS EVERY OCCASIONALLY MOST HARDLY TOTAL
TIME OF THE EVER
TIME
No. of 17 45 32 6 100
Respondents.
Percentage. 17 45 32 6 100

GRAPH- FREQUENCY OF USING:

Chart Title
50
45
40
35
30
25
20
15
10
5
0
Every Time Ocassionally Most of the time Hardly Ever

No. of Respondents

ANALYSIS AND INTERPRETATION:

Here on this survey 17% are always choosing Flipkart for online shopping, while 45% are using it
occasionally. Hardly ever using members are very less, and 32% are using it most of the time. Since more
than half of them prefer Flipkart while thinking of online shopping, it means branding had done successfully
by them either through advertisements, services or providing good experience to customers.
 (10) CATEGORY THAT MOSTLY PREFER TO BUY FROM FLIPKART.COM.

TABLE- CATEGORY MOSTLY PREFER TO BUY FROM FLIPKART:

PARTICULARS ELECTRONICS APPARELS BOOKS, STATINARY HEALTH HOME
AND MOVIES CAREAND AND
ACCESSORIES AND PERSONAL KITCHEN
MUSIC CARE ITEMS
No. 39 20 30 3 4 4
of Respondents.
Percentage 39 20 30 3 4 4

GRAPH- CATEGORY MOSTLY PREFER TO BUY FROM FLIPKART:

Chart Title
45
40
35
30
25
20
15
10
5
0
Electronics Apparels & Books, Movies & Statinary Healthcare & Home & Kitchen
Accessories Music Personalcare Items

No. of Respondents

ANALYSIS AND INTERPRETATION:

Electronic items, Books and Stationery, Apparels & Accessories, cameras, watches and others (bags,
belts, etc.) are purchased more. 39% of respondents are preferred to buy Electronics items followed by Books
and Stationery (30%) and Apparels and Accessories (20%). Books & stationery and electronics items
are more famous among the students and that may be the reason for large purchase of those items from
Flipkart.com.
(11) REASON FOR CUSTOMERS PREFERENCE ON FLIPKART.COM THAN OTHERS.

TABLE- CUSTOMER’S EXPECTING FEATURE OF FLIPKART:

PARTICULARS FAST AVAILIBILTY AFTER EASY PORTAL TOTAL
DELIVERY SALES PAYMENT FEATURES
SERVICE OPTIONS

No. of 41 29 8 17 5 100
Respondents
Percentage 41 29 8 17 5 100

GRAPHS- CUSTOMER’S EXPECTING FEATURE OF FLIPKART:

Chart Title
45
40
35
30
25
20
15
10
5
0
Fast Delivery Availibility After Sales Service Easy Payment Portal Features
Options

No. of Respondents

ANALYSIS AND INTERPRETATION:

One of the most efficient features in Flipkart is fast delivery when compared to other online shopping
websites. So, most of the customers prefer this website for shopping with the perception of quick delivery
(41%) and availability of product (29%), followed by easy payment options (17%).
 (12) PRODUCT SELECTION FROM THE CATEGORIES GIVEN BY FLIPKART.COM.

TABLE- ON THE BASIS WHERE PRODUCT IS CHOSEN:

PARTICULARS RATING OF DISCOUNTS & REVIEW BRAND TOTAL
THE FEATURES ABOUT THE ABOUT THE
PRODUCT PRODUCT PRODUCT

No. of Respondents 14 48 26 12 100

Percentage 14 48 26 12 100

GRAPH- ON THE BASIS WHERE PRODUCT IS CHOSEN:

Chart Title
60

50

40

30

20

10

0
Rating of the Product Discounts & Features Review about the Product Brand about the Product

No of Respondents

ANALYSIS AND INTERPRETATION:

Customer perception varies while using Flipkart; it is one of the online shopping sites which give high
discounts and offers. Most of them in this survey (48%) are looking for good featured product with high
discounts while purchasing products from Flipkart. And also, customers more often go through the product
review (26%) before making their decision to purchase.
Product review is a kind of word of mouth strategy where product users leave their review their experiences
with Flipkart. Customers are giving priority to these two features while brand of product (12%) and rating
of product (14%) also taken care by some other customers.
 (13) ISSUES FACED BY CUSTOMERS WHILE SHOPPING ON FLIPKART.COM.

TABLE- ISSUES FACED WHEN PURCHASED FROM FLIPKART:

PARTICULARS OUT PAYMENT REPLACEMENT DELAY IN FAULTY NO OTHERS
OF ISSUES ISSUES DELIVERY PRODUCT ISSUES
STOCK
No 37 6 6 12 8 30 1
of Respondents.
Percentage 37 6 6 12 8 30 1

GRAPH- ISSUES FACED WHEN PURCHASED FROM FLIPKART:

Chart Title
40

35

30

25

20

15

10

0
Out of Stock Payment Issues Replacement Delay in Faulty Product No. of Issues Others
Issues Delivery

No. of Respondents

ANALYSIS AND INTERPRETATION:

In this survey, 30% of customers didn’t face any of those problems that mentioned, while 37% of customers
faced out of stock issue. This is one of serious issue faced by most of customers. Since discounts and features
are the one feature that most of the customers looking for and when a good product with high discount is
displayed in Flipkart platform, customers brought it as soon as they could. Thus, the products will be out of
stocked. Flipkart started notifying the customers about the product when the stock got available. Payment
issues and replacement issues are less in number (total 12%) since different payment options like EMI
options, card payments, Cash on delivery, Wallet payments etc. are provided by Flipkart and customers are
satisfied with those. In case of replacement also only less issues are happened, thus shows most of them are
satisfied with that service. Delay in delivery happens because of shipping and courier service issues. It is a
problem with supply chain. Mostly it happens in the end part of the supply and in rural areas where courier
services are less active. Faulty product issue also happened to 8% of the customers and one of the policies
to overcome this issue is 30 days replacement policy.
(14) REOMMENDING FLIPKART TO OTHERS.

TABLE- RECOMMENDING FLIPKART TO OTHERS:

PARTICULARS YES NO TOTAL
No. of Respondents. 95 5 100

Percentage 95 5 100

GRAPH- RECOMMENDING FLIPKART TO OTHERS:

Chart Title
100
90
80
70
60
50
40
30
20
10
0
Yes No

No. of Respondents

ANALYSIS AND INTERPRETATION:

In this survey, most of them (95%) are happy to recommend Flipkart to others like friends and family. And
this shows word of mouth publicity is successfully running and this is one of the great advantages for
Flipkart.
(15) CUSTOMERS RATING ABOUT SERVICES ON FLIPKART.COM.

TABLE- RATING THE EXPERIENCE FROM FLIPKART.

PARTICULARS 1 2 3 4 5 TOTAL
No. of 7 11 16 49 17 100
Respondents

Percentage 7 11 16 49 17 100

GRAPH- RATING THE EXPERIENCE FROM FLIPKART.

Chart Title
60

50

40

30

20

10

0
1 2 3 4 5

No. of Respondents

ANALYSIS AND INTERPRETATION:

While analysing the rating of experiences, Flipkart provides a good and excellent experiences to most of the
customers. Mode of given data: 4 & Median of given data: 4, 49% of customers rated 4 as the experience
and more than half of the population (66%) rated4 & 5 as experience.
(16) WHICH ONLINE SHOPPING SITES DO THEY PREFER?

TABLE- PREFERED ONLINE SHOPPING SITES:

PARTICULARS FLIPKART AMAZON SNAPDEAL OTHERS NONE

No. of 45 15 10 10 20
Recommendation.

Percentage 45 15 10 10 20

GRAPH- PREFERED ONLINE SHOPPING SITES:

No. of Recommendations

20%

45%
10%

10%

15%

Flipkart Amazon Snapdeal Others None

ANALYSIS AND INTERPRETATION:

 45% respondents prefer Flipkart.
 15% respondents prefer Amazon.
 10% respondents prefer Snapdeal.
 10% respondents prefer Other online shopping websites.
 20% respondents do not use E-commerce websites.
Thus, as per the analysis Flipkart is the most used website in India.
(17) FIRST EXPERIENCE WITH FLIPKART.

TABLE- FIRST EXPERIENCE WITH FLIPKART:

PARTICULARS EXCELLENT GOOD AVERAGE BAD TOTAL

No. of 75 20 3 2 100
Respondents.
Percentage 75 20 3 2 100

GRAPH- FIRST EXPERIENCE WITH FLIPKART:

FIRST EXPERIENCE WITH FLIPKART

80

70

60

50

40

30

20

10

0
Excellent Good Average Bad

No. of Respondents

ANALYSIS AND INTERPRETATION:

 75% of the respondents show they had Excellent first time experience with Flipkart.
 20% of the respondents show they had Good experience with Flipkart.
 3% of the respondents show they had Average experience and 2% of them had Bad experience with
Flipkart.
(18) WILL YOU RECOMMEND FLIPKART TO YOUR FAMILY AND FRIENDS?

TABLE: RECOMMENDATION TO USE FLIPKART:

PARTICULARS YES NO TOTAL
No. of 90 10 100
Recommendation
Percentage 90 10 100

GRAPH: RECOMMENDATIION TO USE FLIPKART:

Recommendation to use Flipkart

10%

90%

Yes No

ANALYSIS AND INTERPRETATION:

Above figure shows that when they were asked for recommendations:
 90% among the respondents will recommend their friends and family to shop with Flipkart.

 While 10% among them said that they will not recommend.
(19) ANY DRAWBACKS IN FLIPKART?

TABLE- DRAWBACKS OF FLIPKART:

PARTICULARS YES NO TOTAL

No. of Respondents 95 5 100

Percentage 95 5 100

GRAPH- DRAWBACKS OF FLIPKART:

100

80

60

40 Column1
Column 2
20
No. of Respondents
0
Yes No

No. of Respondents

ANALYSIS AND INTERPRETATION:

Above figure shows that when they were asked to suggest any drawbacks:
 95% of the respondents said they feel no drawbacks in the functioning of Flipkart.

 While 5% felt that there are still some drawbacks in Flipkart.

(20) ARE THEY SATISFIED WITH FLIPKART?

TABLE- ARE THEY SATISFIED WITH FLIPKART?

PARTICULARS YES NO TOTAL

No. of 85 15 100
Recommendations.
Particulars 85 15 100

GRAPH- ARE THEY SATISFIED WITH FLIPKART?

Satisfied with Flipkart?

No
15%

Yes
85%

Yes No

ANALYSIS AND INTERPRETATION:

 85% of the respondents are satisfied with Flipkart.
 15% of the respondents are not satisfied with their experience on Flipkart.
 Thus, among all the people maximum (85%) of the people had good online shopping experience with
Flipkart.
 CHAPTER 6- FINDING, SUGGESTION AND CONCLUSION.

(A) FINDINGS:
 There is not much difference in gender for using online shopping.

 Students and salaried persons are most frequent users of Flipkart. Frequency of purchase for
electronics, books and music, apparels and accessories are more in Flipkart.

 Word of mouth was more influential in promotion as many people were made aware by their friends
and family when customers recommend this website to them.

 Highly discounted products got out of stock quickly, since customers purchased it as on as they could
when they see high discount on good featured product.

 The services provided by Flipkart are good and even more scope of development is there for
increasing the customer strength.

 Digital marketing techniques like search engine marketing, links providing other website and
advertisement also functioned well for promotion of this website.

 Different payment options available in Flipkart made customers more satisfied and comfort for
paying while purchasing product.

 Customers feeling more secured when purchasing through Flipkart because of different policies and
services they have.

 In comparison with competitors, Flipkart is charging free shipping for the purchase of 300 plus
rupees, while others free ship the service without any barrier.

 Out of stock is the main issue faced by Flipkart.

 Most of customers have good experience with Flipkart while purchasing products.

 Fast delivery is one of best service Flipkart is providing.

 Most of them are satisfied with the services of Flipkart and so that they succeed in retaining the
customers.

 Advertising is an important way to have the brand and products familiar to consumers Convenience
and time saving are two important factors that customer looking for while purchasing through online.
  90% of the respondents feels safe in online shopping they have no fear and have started shopping
online while 10% are hesitant of shopping online they are the late majority type of customers who
adopt the technology and advancement in later stage.

 85% of respondents prefer online shopping as they get variety of products at good quality at one
place while remaining respondents feel that they prefer shopping in stores.

 Even though Flipkart does not have a big list of competitors’ there are online shopping websites who
has caught the attention of buyers such as SHEIN, JABONG, EBAY, MYNTRA, AMAZON, etc.

 Maximum customers are satisfied with the services provided by Flipkart.

 On scale of 1 to 10, Flipkart users have rated its behaviour 6 points to 9.5 points depending on their
personal experiences.

 2% of customers have bad experience with the services provided by Flipkart, regarding time of
delivery and delay in the return of goods which is not a bad ratio and can be improved.

(B) SUGGESTIONS:

 Flipkart has successfully placed itself into the prospects mind making it the India‘s largest online
store with huge range of products. But it still needs to work on their core competence that is books
and stationery items.

 Delivery services can be improved mainly in rural areas by selecting appropriate courier service
which has services in customer area for dispatching an item.

 Can make free delivery to all priced products.

 Can include more coupon codes and gift vouchers for increasing the traffic of the customers.

 Out of stock items can made available as soon as possible and intimate the needed customers.

 Should look for International/ Overseas markets or Neighbouring Countries.

 Critical mass of Internet users–Internet users in India is increasing at increasing rate, so Flipkart can
target more & more cities that is not only tier 1 & 2 but also tier 3 & 4cities, which
will help generate stronger customer base & more revenues.

 Should clearing focus on the Growing Online Apparel business & it can diversify into apparel
category either organically or inorganically by acquiring other portals.
  Should comprehensively invest into E-CRM & online reputation management.

 User Experience: Portal should continuously aim to work to improve the user experience by adding
more & more innovative features in the website like virtually shopping basket, virtual trial
rooms. In this competitive world to differentiate via user experience, the ultimate winner will be the
Indian online consumer.

 Should comprehensively invest into E-CRM & online reputation management.

 Logistics & Supply Chain: can continuously aim to reduce the delivery time cycle.

 Price will still be a factor as amazon being a huge company will use its economies of scale to remove
their competitors from the market; therefore, they need to be more competitive on that aspect.

 Wide expansion of internet facilities in rural areas can bring more customers for the online shopping
sites.

 Through prompt service, wide variety and easy accessibility even consumers from the remote are can
be tapped.

 The cash on delivery will help a lot of traditional consumers turn to online shopping.

 There is also a need to remove the fear in the mind of customers regarding the product quality,
durability and payments etc. in online shopping.

 Calling facility to make an order and change an order as well as Urgent delivery with no extra cost
service can a cherry on the cake and would help Flipkart to perform even better than its competitors.

(C) CONCLUSION:
E-Commerce is not just about conducting business transactions via the Internet. Its impact will be far-
reaching, and more prominent then we know currently. This is because the revolution in information
technology is happening simultaneously with other developments, especially the globalization of the
business. The new age of global e-commerce is creating entirely new economy and that will tremendously
change our lives, will reshape the competition in various industries, and alter the economy globally. As
companies are gaining high profits, more and more other companies are developing their websites to increase
their profits. Since more businesses are being held online resulting in high economy development and
emergence of a more innovative and advanced technology.

After careful observation, it has come to my conclusion that e-commerce has undeniably become an
important part of our society. The world wide web is and will have a large part in our daily lives. It is
therefore critical that small businesses have their own to keep in competition with the larger websites. Since
web developers have lowered down the prices for their services, it has become more affordable for small
businesses to use the world wide web to sell their products.
Although there are negative aspects of e-commerce, small businesses have tried to accommodate to the needs
of the consumers. For example, one of the negative aspects of e-commerce is that consumers lack the advice
and guidance of sellers, to accommodate that, they have customer service through the phone of online to
answer any questions. It is also important to note that e-commerce does not benefit all small companies
equally
How much revenue a business gets from e-commerce depends on what kind of service it gives. For example,
most people would like to try on clothes before they buy them, so it probably would not benefit a small
business that sells clothes as much as a small business that sells home supplies or specialty books.
Nevertheless, e-commerce does benefit any business even in small ways. This is why it is crucial to
understand how e-commerce affects small businesses because it is becoming such a huge part of how society
functions that it effects the economy greatly and whatever happens to the economy affects us. This is why is
it important to understand this subject because in the long run, it will affect all of us.

INDIAN SCENARIO:
Online shopping is the new mantra of this age and the people of India are applying in their lives to a great
extent now a days. As we progress further, the growth rate on online marketing in our country will leap to
the stars. According to research report- State of E-commerce in India by COMMERCE for ASSOCHAM,
“India’s internet base, is already the third highest in the world after china and the US, is growing nearly by
40% every year.” Hence, the rise of online shopping in Indian subcontinent has been meteoric in the recent
years. The number of shopping websites has increased and so has the total number of people who prefer
online shopping.

The thorough study is based on the consumer behaviour analysis which serves a great idea regarding
consumer perception when they go for online shopping. In order to satisfy themselves consumer perceive
many things before buying products and they will be satisfied if the company meet their expectation. The
Overall Brand Value of Flipkart is good, but it is facing some tough competition from its global competitors
like EBAY and AMAZON. Talking about domestic market that is India, it is the most superior E-business
portal which is aggressively expanding & planting its roots deep into the Indian market & at the
same time shifting the mind-set of the people from going & shopping from physical store to online
stores, which is magnificent. Be very focused on consumers and build amazing experiences for the
customers.

At the end it can be said that Flipkart has become the fate of online business in India. The company is
currently valued at around 1 billion dollars that is 5000 crore. More importantly Flipkart has ushered in the
E-commerce era in India This has generated a massive interest in E-commerce sector; people are opening
websites to sell anything from shoes to apparels to jewels to baby care products etc. This has helped in
creating a lot of job opportunities and thus helps in Indian Income growth story as well.
 CHAPTER 7: BIBLIOGRAPHY.

Information and data related to the project has been taken from the sources below, special thanks to the
editors for making the task easier.

BIBLIOGRAPHY:
 Magazines
 Economic Times Newspaper
 Blogs

WEBLIOGRAPHY:
 www.flipkart.com
 www.commodityindia.com
 www.marketoperation.com
 www.nextbigwhat.com
 www.britannica.com
 www.ecommerce-land.com
 www.commodityindia.com
 www.marketoperation.com
 www.slideshare.net
 Wikipedia
 APPENDIX.

QUESTIONNAIRE:
1. For how many years you are using e-commerce?
a. Less than one year.
b. One year but < five year.
c. More than five year.
d. Do not know/ Cannot say

2. For what purpose do you use e-commerce?

a. For personal use
b. For business use
c. For both personal and business use

3. From the various types of e-commerce, what according to you has the largest market share?
a. B2B Commerce
b. B2C Commerce
c. B2G Commerce
d. Others

4. According to you how is e-commerce helpful to the consumer in the e-business domain?
a. Broadens consumer choice
b. Encourages price transparency
c. Fastens business process
d. Do not know/ Cannot say

5. According to you how e-commerce is helpful for the business discourse?

a. Effectively caters to customers’ demands
b. Smoothens business by creating customer and businessman network
c. Ensures guarantee of payment
d. Do not know/ Cannot say
6. Do you think that the application of e-commerce has increased over the years in India?
a. Yes
b. No
c. Do not know/ Cannot say

7. Do you agree that e-commerce as commercial means has its advantages over the traditional commercial
methods?
a. Agree
b. Disagree
c. Do not know/ Cannot say

8. Do you agree that e-commerce can provide an alternative marketing channel by eliminating middleman?
a. Agree
b. No
c. Do not know/Cannot say

9. Which is the most prominent domain in which e-commerce is used in India?

a. Matrimony
b. Real Estate
c. Stocks & shares
d. Travel and tourism
e. Banking Others

10. What are the challenges to the implementation of e-commerce in India?

a. Slow penetration of internet
b. Security concerns
c. Lack of trust
d. Consumers’ awareness level is low
e. Other factors

11. Do you thing that the Govt. of India is doing its enough to promote e-commerce in India?
a. Yes
b. No
c. Do not know/Cannot say
12. What measure would you recommend for promotion of e- commerce in India?
a. Promotion of internet
b. To increase the awareness level of people
c. An integrated promotional approach
d. Other measures

13. What will be the impact of E-commerce in the Indian market?

a. Positive
b. Negative
c. Both

14. What according to you is the future of e-commerce in India?

a. Very good
b. Good
c. Not so good
d. Do not have a future in India
e. Do not know/ Cannot say

15. Please tick the age group belong to.

a. 16-25
b. 25-35
c. 35-50
d. 50 and above

16. Please tick your occupation.

a. Salaried occupation
b. Salaried executive
c. Business
d. Student
e. Unskilled
f. Others, please specify
17. Gender?
a. Male
b. Female

18. Please tick your income range.

a. Less than 2 lakhs per annum
b. Rs 2 to 5 lakhs per annum
c. Rs 5 to 8 lakhs per annum
d. Rs 8 to 10 lakhs per annum
e. More than 10 lakhs per annum

19. Please tick your education as relevant.

a. Post graduate
b. Graduate
c. Higher secondary school certificate
d. High school certificate
e. Less than 12 years in school

20. Are you aware about Flipkart- an e-commerce website?

a. Yes
b. No

21. Which is your most preferred e-commerce website?

a. Flipkart
b. Amazon
c. Snapdeal
d. Others (please specify)
e. None
22. How frequently do you shop from e-commerce websites?
a. Most likely
b. Very likely
c. Not likely
d. I never shop online

23. Tick all the varieties you prefer to buy on the online store.
a. Clothing
b. Mobiles/Laptops
c. Watches
d. Personal Products
e. Books
f. Camera
d. Accessories

24. Do you prefer shopping online?

a. Yes
b. No

25. How was your first experience with Flipkart?

a. Excellent
b. Good
c. Average
d. Bad

26. Why do you prefer Flipkart over its competitors?

a. Wide variety
b. Price efficient
c. Better service
d. Better quality
27. Do you consider online shopping safe?
a. Yes
b. No

28. Will you recommend Flipkart to your friends and family members?
a. Yes
b. No

29. Are you satisfied with Flipkart?

a. Yes
b. No

30. Do you find any drawbacks in Flipkart?

a. Yes
b. No