Expt No.

1
An analysis of different E-commerce sites
Aim-Analysing different E-commerce sites

Theory
1)Amazon.co.in
a)Primary Business Proposition

Amazon makes money through its retail, subscriptions, and web services, among other
channels. Retail remains Amazon's primary source of revenue, with online and physical
stores accounting for the biggest share. AWS is Amazon's largest source of operating profits
and is growing at a robust pace

b) Functionality and Type of commerce

Amazon.com is a vast Internet-based enterprise that sells books, music, movies,

housewares, electronics, toys, and many other goods, either directly or as the middleman
between other retailers and Amazon.com's millions of customers.B2C e-commerce is when
a business sells a good or service to an individual consumer. Some examples of B2C e-
commerce operations include Amazon.

c) Business value to the customer

Jeff Bezos regularly points out Amazon's three customer value propositions: Low prices, fast
delivery speed (often same day and with options of free 2-hour delivery) and a vast
selection (“Earth's biggest selection”).

d) Revenue Model

Amazon has a well-known diversified business model. According to the annual report, the
company recorded net sales of over $280 billion and net profit of over $11 billion. Amazon
business model is an e-commerce model, but over the years it has made acquisitions and
created a portfolio of business models and revenue streams. However, the biggest
proportion of sales which is fifty per cent, came from their online marketplace.Amazon
measures its success based on the lower prices, reliable tech infrastructure, free cash flow
generation and customer experience obsession. 

e) Investment Models

In January this year, Amazon founder Jeff Bezos had announced USD 1 billion (over Rs 7,000
crore) investment in India to help bring small and medium businesses online. ... "Amazon
International has also been funding these businesses to provide adequate capital for
expansion.

2)Zomato

a)Primary Business Proposition

 The business model is based on providing local restaurants search services and collecting
data on food menus, contacts and providing relevant information to their customers. The
main channels for Zomato are the mobile applications and its online website. The target
audience of the company are the users who try to find local restaurants of various cuisine
and restaurants who want their name to reach a large number of people.Zomato also caters
to customers that prefer home delivery, it helps out database and market research
companies.

b) Functionality and Type of commerce

Zomato is an On-demand delivery app. Brand aims to change what people eat by improving
how they eat. From tiniest eateries to swankiest restaurants, Zomato brings all to you.
Zomato brings convenience and gratification to you.Though the company is primarily known
for its food delivery business, it is present in several verticals across B2C and B2B categories.

c) Business value to the customer

The business model of Zomato is focused on inventing new and add-on services that
customers cannot receive anywhere else. It offers a lot of value to its customers like: The
brand offers a one-stop-shop for foodies and facilitates restaurants to be different.

d) Revenue Model

Zomato does not offer the products to customers, but the revenue is massive. Zomato is not
just a food business, as it also into the advertising business. Zomato business has two parts,
one is the delivery business and two is that they are in the advertising business. Today,
Zomato has multiple revenue channels besides online ordering, which most consumers
would be familiar with.

Revenue FY18 FY19

Delivery $38 million $115 million

Dining out $30 million $49 million

Sustainability $0 million $2 million

e) Investment Models

Its Rs 300-crore initial investment is now worth Rs 7,448 crore. To be sure, it too topped up
on its investment in further rounds and its total would be higher. Sequoia, which held a
7.3% stake in Zomato, sold shares worth about $25 million before the IPO.

3)Spotify.com

a)Primary Business Proposition

Spotify is a music streaming platform that gives users access to a large catalog of music. It
uses a freemium revenue model that offers a basic, limited, ad-supported service for free
and an unlimited premium service for a subscription fee.Spotify relies heavily on its music
algorithms and its community of users and artists to keep its premium experience delightful

b) Functionality and Type of commerce

Spotify is a digital music, podcast, and video service that gives you access to millions of
songs and other content from creators all over the world. Basic functions such as playing
music are totally free, but you can also choose to upgrade to Spotify Premium. Build
collections of music and podcasts. Spotify, a B2C audio streaming service. Spotify
subscribers have access to large music libraries without the need for the subscribers to own
a single track.B2C eCommerce is a model where a business sells goods or services to
individuals. The B2C retail is the most common type of the eBusiness model, both online
and offline. 

c) Business value to the customer

Spotify is known to offer five primary value propositions: Accessibility, customization,

pricing, performance, and brand/status. Spotify enables customization which allows
customers to search their favourite songs and create playlists.

d) Revenue Model

Spotify is known to offer five primary value propositions: Accessibility, customization,

pricing, performance, and brand/status. Spotify enables customization which allows
customers to search their favourite songs and create playlists.Its premium subscriber base
has grown from 10% of total users in 2011 to 46% in 2018.From the start Spotify saw itself
as a legal alternative to pirated music and paid song purchases on iTunes. Spotify pays a
significant portion of its revenue in the form of royalties to music labels. It has paid close to
$10 billion in royalties since its launch in 2006.The company accelerated the shift from
music downloads to streaming and disrupted Apple iTunes in the process.For the first time
in company history, Spotify made a profit in 2019.
e) Investment Models

Spotify has made 5 investments. Their most recent investment was on Mar 10, 2020, when
Sounder.fm raised $1.8M. Spotify has invested in Sounder.fm on Mar 10, 2020. This
investment - Seed Round - Sounder.fm - was valued at $1.8M.

4)1mg

a)Primary Business Proposition

An online pharmacy or internet pharmacy, or mail-order pharmacy is a pharmacy that

operates over the Internet and sends orders to customers through mail, shipping
companies, or online pharmacy web portal. 1mg is a digital consumer healthcare platform,
or an online pharmacy center, that makes healthcare accessible, understandable, and
affordable.

b) Functionality and Type of commerce

Functionality and Type of commerce 1mg makes money with online diagnostics and lab
testing services. These account for most of their annual revenues. Online medicine delivery,
B2B healthcare solutions, and subscription-based care plans form up the rest of their yearly
finances. The company delivers medicines and health products online along with lab tests
booking, online consultations, and authentic information from healthcare professionals,
thereby enabling customers to meet all their healthcare needs in one platform hassle-free.

c) Business value to the customer

Access medical and health information. Tata 1mg provides you with medical information
which is curated, written, and verified by experts, accurate and trustworthy. Order
medicines online. Get free medicine home delivery in over 1800 cities across India. Book lab
tests. Consult a doctor online

d) Revenue Model

1mg has 5 revenue sources as of 2020: Lab and diagnostic tests Online medicine order
delivery Doctor consultation Healthcare Partnerships Subscription-based care plans
However, as of their latest financial figures, the company has made a loss of INR 156 crore in
2019. 1mg is not profitable yet but has received a $100 million funding to sustain the
business until it turns profitable.
e) Investment Models

The firms didn't share the financial details of the deal, but a person familiar with the matter
told TechCrunch that 1mg has received over $220 million in primary and secondary
investments — with participation from some existing investors — and is being valued at
around $450 million.

5)PharmEasy

a)Primary Business Proposition

What does PharmEasy do? - PharmEasy serves as an online pharmacy and handles the
hassle-free delivery of medicines and other medical equipment. PharmEasy operates in
several major cities of India. Shopping for medicines online has become convenient and easy
through PharmEasy. The company delivers medicine and other medical equipment to
thousands of customers every day.Pharmacy is an e-commerce platform for the purchase of
medicines and other healthcare-related equipment. Whenever one uploads a prescription
on PharmEasy, it is then sent to a drugstore in their vicinity. The company uses a mobile app
and web technology to offer the best quality healthcare products and essentials to its
customers at affordable rates.

b) Functionality and Type of commerce

PharmEasy is an online medicine delivery app, which also allows you to buy healthcare
products, OTC products & medical equipment online. You can book diagnostic tests online,
including blood tests, lab tests, full body check-up & other preventive health check-ups from
the convenience of your home. PharmEasy - B2B Marketing Role - B2B Business Vertical (5-
10 yrs.) Pharmeaasy's B2B Vertical is a group company of PharmEasy is India's leading
pharmaceutical distribution company that is modernising and digitising India's fragmented
pharmaceutical supply chain.Functionality and Type of commerce

c) Business value to the customer

PharmEasy operates in several major cities of India. Shopping for medicines online has
become convenient and easy through PharmEasy
d) Revenue Model

PharmEasy primarily earns by displaying the sponsored results of various pharmaceutical

entities. These kinds of advertisements are found on the home page of such organizations.
Advertising is a major source of revenue, and this e-pharmacy leverages it to the hilt.
Attractive discounts also contribute to PharmEasy's revenue. Furthermore, PharmEasy earns
from commission from its customers for the healthcare products and medicines that sell via
the platform. The brand also earns through the delivery charges that get levied on the
products.

e) Investment Models

PharmEasy is likely to be valued at around $6 billion post the funding round, creating a
benchmark valuation ahead of a public listing. It was last valued at $4.2 billion in June.

6)Carwale.com

a)Primary Business Proposition

CarWale acts as a sales and marketing partner for car manufacturers (it gets paid by the
manufacturer for this). A bulk of its revenue comes from brokering new car sales (bringing in
a car customer to a dealer) and offering marketing services to car manufacturers

b) Functionality and Type of commerce

CarWale's mission is to bring delight in car buying, we offer a bouquet of reliable tools and
services to help car consumers decide on buying the right car, at the right price and from
the right partner. Auto Commerce Companies involved in the rental, selling, trading, or
purchasing of cars, RVs, trucks, and fleets, including auto financing companies, vehicle
auction services, online classified advertising companies with a focus on auto, and
dealership software platforms.

c) Business value to the customer

CarWale Advantage offers huge savings - up to 75 percent on your car insurance. CarWale
Advantage has left no rocks unturned to ensure satisfying all the needs of its consumers. It
offers great discounts on road trips, amusement parks and even on international travel.

d) Revenue Model
with over 20,000 used car listings carwale charges 500 per listing which acts as a secondary
revenue model whereas the primary model is that carwale acts as a sales and marketing
partner or representative for car manufacturers by brokering new car sales.

e) Investment Models

with over 20,000 used car listings carwale charges 500 per listing.. which acts as a secondary
revenue model where as the primary model is that carwale acts as a sales and marketing
partner or representative for car manufacturers by brokering new car sales

Conclusion: The sites were checked and compared on the given parameters.