Programme Name: BCS

Course Code: CSC 1020

Course Name: Introduction to E-Commerce
Second Assignment
Date of Submission: 10/08/2020

Submitted By: Submitted To:

Student Name: Manjil Karmacharya Faculty Name: Yogendra Mahata
IUKL ID: 041901900018 Department: PO
Semester: 5th
Intake: March
1. What could have been the reason for Snapdeal's success in the earlier stage of
its online operation? Justify your reason with an appropriate example and
explanation relating to Snapdeal and its industry.
Answer: Snapdeal was officially established in 2010 and at 2011 Snapdeal moved
online. The first investor of the Snapdeal was Vani Kola venture capital firm. The
Snapdeal founder make a big decision at November 2011 after success of Alibaba.com.
The Snapdeal’s success in earlier stage of its online operation because of the following
reason:
 Snapdeal’s take a risk to move from offline to online and main motivation of
moving was Alibaba.com. They sell more and more product after moving
online.
 Vision of founder Kunal Bahl and Rohit Bansal because they already research
on success of Alibaba.com and they were going to create similar lines.
 They always learnt from their mistake and increasing the improving speed. At
beginning of the Snapdeal’s their journey was liked jerk ride.
 Also, the eBay invest on it which brought immense experience onto them. eBay
was on hype at that time in India.
 Innovation in Indian market also gives them a success in early stage. Online
product order and delivery system was new in India at that time.
 Founder had the confident of those idea at same time they show right effort on
it. Confident on the business model and always chase the success by learning
from mistake.
So, Snapdeal’s main success reason at early phase was it is new in market and bought
the eBay experience in same table at a time.

2. In your opinion what type of e-commerce business model can Snapdeal be

classified provide. Two (2) reason for your opinion.
Answer: Snapdeal operates the digital B2C (Business to customer) marketplace, that
allows third-party sellers to sell their products on Snapdeal’s website directly to
Snapdeal’s customers. Snapdeal operates a portfolio business model; the company at its
core operates a matchmaking business model, where it connects online sellers directly
to online buyers. Snapdeal had B2C type of ecommerce business model at that time
because of the following reason:
 In B2C, Customer get the product and services directly from whole seller or
retailer. Snapdeal’s website provides an online platform which allows
consumers to select a range of products from different worldwide brands.
Example: Customer order the jacket on Online in Snapdeal’s (whole seller name
is Sindhu Sports) then Snapdeal have delivery boy who visit on Sindhu Sports
for picking product then deliver to customer directly.
 Retailer also can provide the information of multiple products at single platform
and customer also can easily search the required product in single platform. If
many businesses company have same product in single platform and customer is
 single then the price will drop down which mean their will be more customer to
buy the product.
B2C is the best for the Snapdeal’s for e-commerce business model because at Snapdeal
customer purchased the product from company directly which mean Business is
directly associate with customer. So, B2C business model is best for it.
3. From your analysis, what could have been the reason for Snapdeal’s failure in
the E-commerce business?
Answer: The reason behind the Snapdeal’s failure in E-commerce business are:
 Rising competitor Flipkart and Amazon. The sudden rise in competition in the
e-commerce space, complaints on the quality of their products made it difficult
for Snapdeal, as they lacked the 'edge' over others.
 Amazon, carrying its strong reputation of quick delivery, disrupted the Indian e-
commerce space and the competition became intensive.
 Snapdeal lost his 20 percent market share in two-year 2015 to 2017 where
Flipkart and Amazon enter the Indian market and Amazon rising like rocket.
 Complaints on the degrading quality of the product and on late deliveries had
piled up and the company's reputation in the e-commerce space drove the
customers away.
 The marketplace models of Snapdeal's rivals were dynamic. By the time
Snapdeal shifted from its traditional pure-play marketplace to a managed or
controlled marketplace model, its rivals had already changed their model to a
hybrid one
4. Express the TEN (10) factors that affect consumer satisfaction with internet
shopping.
Answer: The ten factors that affect consumer satisfaction with internet shopping are as
follows:
 Deliverability: Delivery of ordered product takes more time then may customer not
order the product from next time.
 Product Quality: Product quality should be same as shown in internet if not may
be customer not buy a product.
 Payment Method: Not all customer wants to pay the money offline some customer
wants too online. So, online payment needs at that time.
 Service Quality: Internet shop should be run all the time because customer check
the product at any time. Customer sometime call for inquiry and objection at that
time shop keeper should peek call.
 Language: More than 50% of consumers won’t make a purchase if information
about a product isn’t available in readable language. Without great communication,
there can be no great customer experience.
 Choice: When offering choices make sure to support customers and enable them to
figure out the optimal choice that is right for them.
 Accessibility: Online Shop need to ensure that customers are able to find and
access your products and services efficiently, without barriers and friction, on their
preferred channel.
 Page Load Speed: The faster website loads, the happier visitors. If one of pages
doesn’t appear lightning-fast, customer will move on to speedier online stores.
 Simplicity: Customer always want the shop page clean; they don’t want any
decoration that make them to see the product hard and uncomfortable.
 Navigation: A website that’s difficult to navigate will only lead to customer
frustration and a loss of potential customers.
5.
a) There is various form online payment. List out at least Ten (10 and briefly
explain each of the online payment.
Answer: The various form of online payment are as follows:
i. Mastercard: It is the global bank card which is like debit and credit card of
bank. We can use it in paying money online which may charge little amount
while transferring money from master card to other payment.

ii. Prepaid Cards: Prepaid cards are a type of debit card issued by a bank or credit
card company and ‘loaded’ with a certain amount of money. Example: virtual
currency being stored in prepaid cards for a player to use on in-game
transactions.

iii. Paytm: Paytm is the Indian e-commerce payment system and financial
technology. Paytm is an e-commerce payment system, which is designed to
transfer cash into an assimilated wallet via debit card, credit card, etc.

iv. Google Pay: Google Pay lets shoppers choose from saved payment methods in
their Google account in order to check out quickly and smoothly on third-party
sites.

v. PayPal: PayPal is an eCommerce payment method where user have account in

PayPal then they can pay a money through internet. User have to transfer money
from bank to PayPal account like Nepal eSewa.

vi. Gift cards: gift card is technically known as a closed-loop card, meaning it can
only be used with a particular retailer, although some retail groups will allow
the same gift card to be used at other affiliated stores.

vii. Bitcoin: Bitcoin is the digital currency where people use as alternative online
payment by exchanging the currency with material value.

viii. Apple Pay: Apple Pay an online payment service It offers your customers an
easy, secure and faster alternative to traditional credit and debit card payments,
 as it skips the need to enter long card details and operates with a one-click
payment process.

ix. Direct debit payments: Direct debit payments are most commonly used for
B2B transactions as they allow for recurring, automated payments to be made.
Customer don’t have to approve payments or remember to pay; the money is
simply taken from their account automatically once the direct debit has been set
up.

x. eBay Managed Payments: eBay’s own payments system enables shoppers to

enter payment information and process it without having to digitally travel to a
third-party site and therefore leave the marketplace.

b) Describe further on e-cash or electronic cash

Answer: Electronic cash is defined to be an electronic payment system that provides, in
addition to the above security features, the properties of user anonymity and payment
un traceability. Electronic cash is a specific kind of electronic payment scheme, defined
by certain cryptographic properties. Properties are:
 Electronic Payment: The term electronic commerce refers to any financial
transaction involving the electronic transmission of information. The packets of
information being transmitted are commonly called electronic tokens. The storage
medium as a card since it commonly takes the form of a wallet-sized card made of
plastic or cardboard.
 Conceptual Framework: In e-cash system there is conceptual framework which is
work on the basis of four component:
 Issuers: It can be bank or non-bank institution.
 Customers: User who spend e-cash.
 Merchants: Vendors who receive e-cash.
 Regulators: Government agencies.
It is work like customer buy a material and send cash to merchants then
merchants check for authentication of issuer and regulator regulate all the
information from one path to other.
Basically, it's an ordinary card, made by Shlumberger, but with a very smart mind.
Instead of a magnetic strip, you have an actual microchip containing all the data about
that particular account is built into the card. All you have to do is operate the card with
a unique Personal Identification Number (PIN) that gives you credit facilities as well as
full security against misuse as long as you keep it to yourself. The customer has to pay
an annual sum for the use of the card.