LITERATURE REVIEW

Mishra & Kotkar(2019)

A study on Status of E-Commerce in India: A Comparative Analysis of E –

Commerce websites”

Objectives

 The objective of the study is to examine :

1)The current status of e commerce (B2B,B2C) in india

2) To study the depth and the significance of web based technologies in

different business operations, thus, improving their efficiency through
effective B2B e-commerce

Findings

 This study trace the timeline and development of B2C e-commerce

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.
 Though online travel and hotel bookings still control the lion’s share
of e-commerce market, their share has comparitively 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. presents a
comprehensive definition of e-commerce while isolating it from e-
business.
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 The paper enlists the different ecommerce models i.e. B2B, B2C, B2G
and C2C, narratively analysing the nitty gritties of each. Author talks
about 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 author identifies the revolutionary role played by earlier internet
applications like e-mail and eletronic 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 upto date
product and market information, significantly increase the speed of
communications and increase the quality of customer relationships
by facilitating close contact and constant communication. The paper
studies depth, the significance of web based technologies in different
business operations, thus, improving their efficiency through
effective B2B e-commerce.
 Author 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
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new revolution. SWOT analysis of e-commerce conducted by the

author.
 Author 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 houseolds, rise in internet subscriptions and infilteration
of mobile commerce.
 In the face of rising competition, the survival of the firms will depend
upon how efficiently they are able to bridge the exsting 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 succesfully 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 e commerce
but will also emerge as an important support tool to brick and
mortar stores.
 Despite innumerable prospects, the growth of e-commerce in India
has not been upto its full potential due to certain challenges that
inhibit the growth of firms. The growth of digital commerce in India
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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, emarketplaces 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 fulfillment 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 the growth of e-
commerce firms by resulting in huge loss include home decor,
branded and unbranded apparel, accessories, and technology
products.

Reference

 KPMG Report ‟ authored by Doger Kritika and Tanwar Prahlad”

Dr Kishore Kumar Das (2018) –

“Growth of E-Commerce and its impact in India”

OBJECTIVE

 The objective of this paper is to study

 The key drivers of e commerce
 key challenges and future of e commere
 The impacts on indian economy

Findings

 Author talked about E commerce as one of the highest growing

business, with India having great market potential for
investments.There has been huge surge in investment since; last year
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and more, is expected in coming years. The rapid growth in use of

mobile and internet users has facilitated ecommerce business in both
urban and rural cities.
 The topics covered include the terms study of commerce, key drivers
of growth, market growth potential,investment, retail market,
logistics infrastructure, internet regulations, key challenges and
future of ecommerce.”
 The impacts of globalization, and rapid developments are,
experienced in knowledge and technology raises level of e-
commerce. E-commerce provides businesses to sell their goods and
services with a different method around theworld and admits, to
consumers to access goods and services easily.
 Taxation of e-commerce is an important,issue for countries,
businesses and consumers who want to be a party of e-commerce.
The issues such as tax lossand tax evasion are crucial in terms of
countries. Difficulties like, uncertainty and double taxation make
partiesof e-commerce reluctant and affect development of e-
commerce negatively.
 In this study, the role of taxation problems on the development of
ecommerce is examined with the aim to focus on how e-commerce
can developed with proper tax regulations.”
 It also presents the surfing pattern of Indian public, to give the
critical review on truth of various reports being published from time
to time. It also critically analyses the e-commerce with major focus
on electronic commerce . The paper concluded that potential for
growth of e-commerce in India is enormous.
 It also examine the amount of interest that is there for travel
industry is not seen in other services. Professional e-commerce,
websites are doing excellent job but what are the factors that are
inhibiting users from purchasing online need to be ascertained.
 The e commerce in India is in a nascent stage, the website factors that
generate trust among Indian customers were somewhat different
from theresults of previous studies carried out in the US and Canada.
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In this paper they for the first time in the Indian context, have
comprehensively tested the mediator role of trust in online shopping

Reference

 Jehangir, M., Dominic, P., Naseebullah, & Khan

Sukumar Gupta (2020)

“Study on E commerce in India”

Objectives

the purpose of the study is:

 To better understand the impact of functioning of e-commerce in

India and its implications for markets and competition.
 To engage with industry and advocacy priorities in relation to e-
commerce, with greater clarity on market developments and
emerging impediments to competition,
 The study covered various aspects of e-commerce, but the focus was
on gathering qualitative insights from market participants on such
trends, practices, and issues which are relevant to competition.

Findings

 E-commerce in India has attracted investors from across the world.

Although funding in the e-commerce sector started in 2009, it
gathered momentum in 2014 and maximum investment of around
USD 3500 million took place in 2017 in 124 funding rounds.
 Since 2009, the e-commerce sector has received around USD 13,338
million in 904 funding rounds. Due to the increase in investments in
the e-commerce sector, new companies started to enter the market
since 2009. Maximum number of new e-commerce companies i.e.
1650 were formed in 2015. At present around 4757 e-commerce
startups are active in India.
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 India is the fastest growing market for the e-commerce sector.

Revenue from the sector is expected to increase from USD 39 billion
in 2017 to USD 120 billion in 2020, growing at an annual rate of 51
percent, the highest in the world.6 Consumers benefit from
ecommerce for the convenience of accessing it anytime and from
anywhere with internet access.
 The mobile phone subscriber base in India has increased from 904.51
million in March 20147 to 1173.75 million in September 2019.8 The
number of internet users has increased from 445.96 million in 2017 to
665.31 million in 2019 and is expected to increase to 829 million in
2021.
 Besides the growth in smartphone penetration and access to internet,
the growth of e-commerce has been enabled through introduction of
cash on delivery at a time when Indians were still adapting to digital
payments.
 Discounts and deals offered by the marketplaces, faster deliveries
including one-day delivery and access to a large product range,
especially in tier II and tier III cities where choices were limited,
revolutionised retail as well as service delivery.
 E-commerce in the goods category in India has grown at a compound
annual growth rate (CAGR) of 57% in last seven years, and is
expected to grow by 18.6% till 2022.11 The online retail market in
India is estimated to be worth USD 17.8 billion in terms of gross
merchandise value (GMV)12 as of 2017.13 As of July 2018, the
number of transactions in e-commerce retail was 1-1.2 million per
day and on e-commerce platforms was 55-60 million per month.
 The growth engine has been smartphones, with only or primarily
online retailers or e-tailers witnessing their sales mix shifting heavily
into smartphone and electronics, supported by direct partnerships
with brands.15 As per a Working Paper of UNIDO, nearly half (45%)
of the manufacturing output in India comes from the Micro Small &
Medium Enterprises (MSMEs) and 43% of the MSMEs participate in
online sales in India.
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 The sales from online travel bookings in India is likely to reach USD
39.09 billion by 2021,17 growing at a CAGR of 16% between 2015 and
2021.18 In hotel booking, an increase has been witnessed across all
star categories in reservations using online reservation systems and
other websites, with the all-India average increasing from 10.3% in
FY 13 to 24.5% in FY17
 The food tech industry in India is estimated to grow at a CAGR of
more than 12% between 2016 and 2021,20 driven by the growth in
internet and smartphone penetration.
 As per National Restaurant Association of India (NRAI) report,
during FY 16 to FY 19, the delivery marketplaces raised 90% of the
total funding, while remaining proportion of total funding amount
raised was equally split between cloud kitchen (35%) and other
business models (21%) in the food tech industry.
 India’s food tech expansion is no longer a metro phenomenon, as
non-metro cities grew seven times faster (quarter on quarter) as
compared to metro cities (80% growth vs 12%)
 Against this backdrop, the study attempted to understand the market
participants’ perception of the emerging trends relating to e-
commerce as also to gather information on the key features of the e-
commerce ecosystem in India.
 The results of the study confirm that online commerce is gaining
importance across the sectors studied. Within the broad category of
consumer goods, the study covered the goods most sold online in
India, namely, mobile phones, electrical & electronic appliances,
lifestyle related goods, and also included grocery where online
commerce is still nascent in the country.
 In the goods category, the findings reveal that the share of online
distribution and its relative importance as a sales channel vis-à-vis
the offline channels varies significantly across products.
 In case of mobile phones, online sales reportedly account for around
40% of total sales in India, with smartphones selling online more than
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feature phones. Latest models of mobile phones are often launched

exclusively on e-commerce platforms.
 On the other hand, for electronic/electrical appliances and lifestyle
related products including apparels, shoes, accessories and fashion
products, the respondents considered online as more of a
supplementary channel, brick & mortar sales being the predominant
mode of sales.
 Nature of goods and the extent of price-differential between sales
channels were among the factors cited by stakeholders that explain
the variation in the online-offline split of sales between products.
This divergence constrains construction of a unified narrative on
retail as a whole and points to the need for product-specific
assessment of markets and competition dynamics.
 Confirming what is expected of online trade, the study points to an
increased intensity of price competition across the categories studied.
Online trade has led to greater price transparency. As per the study,
majority of the respondent hoteliers and retailers track competitors’
prices and adjust price levels in response. The frequency of price
change was found to be high.
 In case of goods, most of the respondent retailers were found to
change the price several times in a day, while some reported price
revisions on a weekly basis and during promotional events. Majority
of the hoteliers reported to undertake price revision on a daily basis.
In the food service segment, only few respondent restaurants were
found to track competitors’ prices.
 Some e-commerce platforms in the goods category, besides providing
marketplace/intermediation services to connect sellers and
consumers, also provide related services such as warehousing
facilities, transactional support services, promotion and advertising,
centralized payment processing, shipment and delivery of goods,
refund and replacement, etc.
 Some have a presence in B2B (business-tobusiness) wholesale,
wherein the B2B entities reportedly procure goods from brands/
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manufacturers and sell them to sellers, who may in turn sell the
goods on the marketplace platform to consumers.
 Nature of fee charged varies across platforms. Some charge fixed
upfront fee and commission per transaction, the rate of commission
varying across product categories. Marketplaces who offer delivery
service may also include shipping charges. The other sources of
revenue are advertisements and customer subscription programs.
 Online marketplaces are multi-sided platforms that connect sellers,
buyers and advertisers to facilitate transactions between them. A
platform offers a multisided environment that internalizes
transaction costs and takes advantage of the network effects across
the different user groups27 .
 The study reveals that third-party online marketplaces play a central
role in e-commerce in India. An estimated 64%28 of digital retail
trade in India is through online platforms.
 While large brands/retailers own and manage popular standalone
websites, online commerce in India is driven largely by third party
platforms. Intermediation by online platforms allows for an online
presence of businesses, without being required to operate own
websites.
 The indirect network effects contribute to the growing importance of
online platforms and most sellers/serviceproviders in India, both in
goods and services, now depend on intermediary platforms to access
consumers online as consumers increasingly rely on these platforms
to search for and purchase products on the internet.
 The degree of dependence of sellers/service providers on platforms
was found to be a function of the nature of the product in question,
the size and resources of the seller/service provider and their brand
equity.

Reference

 Competition Commission of India

 LITERATURE REVIEW

Mr. Krishna G. Kaldat (2016)

“The Impact of E-commerce on Indian Economy”

OBJECTIVES

The objective of the study is :

 To aware about the benefits of e commerce to know the need and

impact of e commerce in indian economy
 The impact of E-commerce on Indian Economy
 Changes in the methodology for business transactions.

findings

 Indian e commerce space percentage is getting higher as more and

more online retailers enter the market. Although this level of entry in
the e-commerce market is good from a long term perspective, the
challengeis that most entrepreneurs don&t have the resources or
capital to wait for years before they can get profits .
 The past 10 years have seen a rise in the number of companies
embracing e-commerce technologies and the internet in india. Most e-
commerce sites have been targeted towards the with delivery
services,books, Audio and videocassettes etc. indian portal sites have
also shifted towards e-commerce instead of depending on advertising
revenue.
 The web communities built around these portal sites with content
have been effectively targeted to sell everything from event and
movie tickets the grocery and computers.This is not to say that the e-
commerce scenario has been bad in india as highly successfful e-
business like baba babaar and india mart have proved.
 India have been very successfful in adapting Technologies to
provide customers with real time account status, transffer of funds
between current and checking accounts, stop payment facilities. , also
have put their electronic banking over the internet facilities in place
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for the upcoming e-commerce market speed post also plan to clone
the federal eppressstory with online package status at any moment in
time.
 The future does look very bright for e-commerce in india with even
the stock exchanges coming online providing an online stock
portfolio and status with a fifteen minute delay in prices.The day
cannot be far when with regulations will able to see stock transfer
and sale over the with specialised services.

Reference

 Sarbapriya Ray (2011) emerging trend of e commerce in india

 Anshu vyas e commerce vision publications

Dr. Rajasekar, S. and 2Sweta Agarwal (2016)

“A STUDY ON IMPACT OF E-COMMERCE ON INDIA’s COMMERCE 1”

Objective

The purpose of this paper is to examine:

 The impact of e-commerce on Indian economy

 To know what are the growth and prospects of e-commerce in
India,challenges of e-commerce in India,
 Key drivers in indian e commerce
 Issues that have received the most attention and what more needs to
be done in terms of research

Findings

 Increasing internet and mobile penetration, growing acceptability of

online payments and favourable demographics has provided the e-
commerce sector in India the unique opportunity to companies
connect with their customers
 There would be over a five to seven fold increase in revenue
generated through e-commerce as compared to last year with all
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branded apparel, accessories, jewellery, gifts, footwear are available

at a cheaper rates and delivered at the doorstep, (as per industry
body Assocham).
 It is noted that the buying trends during 2016 will witness a
significant upward movement due to aggressive online discounts,
rising fuel price and wider and abundant choice will hit the e-
commerce industry in 2016.
 It observed mobile commerce (m-commerce) is growing rapidly as a
stable and secure supplement to the e-commerce industry. Shopping
online through smart phones is proving to be a game changer, and
industry leaders believe that mcommerce could contribute up to 70
per cent of their total revenues.
 In India roughly 60-65 per cent of the total ecommerce sales are being
generated by mobile devices and tablets, increased by 50 per cent
than in year 2015 and also likely to continue upwards. It noted that
the browsing trends, which have broadly shifted from the desktop to
mobile devices in India, online shopping is also expected to follow
suit, as one out of three customers currently makes transactions
through mobiles in tier-1 and tier-2 cities.
 In 2015, 78 per cent of shopping queries were made through mobile
devices, compared to 46 per cent in 2013. In 2015, the highest growth
rate was seen in the apparel segment almost 69.5 per cent over last
year, followed by electronic items by 62 percent, baby care products
at 53 per cent, beauty and personal care products at 52 per cent and
home furnishings at 49 per cent.
 It revealed that Mumbai ranks first in online shopping followed by
Delhi, Ahmedabad, Bangalore and Kolkata. On the mode of
payment, almost 45 per cent of online shoppers reportedly preferred
cash on delivery mode of payment over credit cards (16 per cent) and
debit cards (21 per cent).
 Only 10 per cent opted for internet banking and a scanty 7 per cent
preferred cash cards, mobile wallets, and other such modes of
payment, it said. Among the above age segments, 18-25 years of age
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group has been the fastest growing age segment online with user
growth being contributed by both male and female segments.
 The survey revealed that 38 per cent of regular shoppers are in 18-25
age group, 52 per cent in 26-35, 8 per cent in 36-45 and 2 per cent in
the age group of 45-60.
 India has less credit card population, lack of fast postal services in
rural India. Accessing the Internet is currently hindered down by
slow transmission speeds, frequent disconnects, cost of Wireless
connection and wireless communication standards over which data
is transmitted. High-speed-bandwidth Internet connection not
available to most citizens of the nation at an affordable rate.
 In India, mostly people are not aware about the English language or
not so good in English language. So that for the transaction over
internet through electronic devices, language becomes one of the
major factors to purchases, hire and sell a particular product or
services.
 Multiple issues of trust in e-commerce technology and lack of widely
accepted standards, lack of payment gateways, privacy of personal
and business data connected over the Internet not assured security
and confidentiality of data not in place to deploy ubiquitous IT
Infrastructure and its maintenance
 Growth of e-commerce depend to a great extent on effective IT
security systems for which necessary technological and legal
provisions need to be put in place and strengthened constantly.
 While many companies, organizations, and communities in India are
beginning to take advantage of the potential of e-commerce, critical
challenges remain to be overcome before e-commerce would become
an asset for common people.
 With the explosion of internet connectivity through mobile devices
like Smartphone and tablets, millions of consumers are making
decisions online and in this way enterprises can build the brand
digitally and enhance productivity but government policies must
ensure the cost effective methods/solutions.
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 E Commerce in India is destined to grow both in revenue and

geographic reach. The challenge of establishing consumer trust in e-
commerce poses problems and issues that need further research.

References

 Abhijit Mitra 2013. “E-commerce in India- a review”, International

Journal of Marketing, Financial Services and Management Research
ISSN 2277- 3622 Vol.2, No. 2, February (2013)
 Dr. Sachin Gupta, 2014. “Benefits and Drawbacks of MCommerce in
India: A Review”, International Journal of Advanced Research in
Computer and Communication Engineering Vol. 3, Issue 4, April
2014.

6) B. Maheswara

“Impact of E-Commerce on indian econnomy”

OBJECTIVE

The main basic objective of this study are :

 To analysis the present trends of e-commerce in India

 Government initiatives and different scheme in growth of e-
commerce in India
 Impact of e-commerce on literacy rate and employment rate in India

Findings

 Through the investigation of study we came to know how vital web

based business industry right now on the planet is. With setting of
India we likewise attempt to locate the upward pattern of
development of web based business in India, and furthermore
increment in m-begin and digital infiltration in India.
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 In India with the digital economy entrance has expanded essentially,

as per measurable information web use has expanded to 429.23
million client in India and is relied upon to stretch around 830m by
year 2021 ."There has been huge ascent of web based business in
India, as India's web economy is 125 billion dollar in 2017.
 Government policies and activities has additionally lead to increment
of online business in India over years. As indicated by review after
demonetization, job of cashless economy in India has expanded
fundamentally, hence the job of web additionally similarly other such
government policies have likewise had a noteworthy effect.
 A ton have been done and a great deal must be done with regards to
web based business industry in India. Likewise we think about effect
of education rate and joblessness rate on the development of internet
business industry in India. Likewise there is noteworthy need to
expand the education rate in India and furthermore spread
mindfulness among rustic individuals in India about cashless
economy and job of web in India in today’s world.

Reference

BCG & IAMAI (2015). India @ Digital Bharat. Creating a $200 Billion
Internet Economy. Mumbai: The Boston Consulting Group.