PROJECT REPORT On “SCOPE OF E-RETAILING ” ININDIA Submitted in partial fulfillment of the degree of Masters of Business Administration Session (2016-2017) SUBMITTED TO: SUBMITTED BY: EXAM CONTROLLER AYUSHI AGGARWAL (MLD. UNIVERSITY) MBA 4° SEM. D.A.V INSTITUTE OF MANAGMENT, FARIDABAD (AFFILIATED TO MAHARISHI DAYANAND UNIVERSITY)ACKNOWLEDGEMENT Tam very much thankful to MRS.KANIKA (PROJECT GUIDE) for giving me opportunity and her guidance which helps me throughout preparing this report. She has also provided me a valuable suggestions and excellence guidance about this project Which proved very helpful to me to utilize my theoretical knowledge in practical field, Lam thankful to M.D University, Rohtak for putting me to this valuable exposure into the field of Research Methodology. I would also like to thanks my family for motivating me and supporting me at every part of my life, At last Iam also thankful to my friends, who have given me their constructive advice, educative suggestion, encouragement, co-operation and motivation to prepare this report (AYUSHI AGGARWAL)PREFACE ‘The title of my project is “E-RETAILING” This project report is on how computers have evolved from the earlier twentieth century till today. It contains E-Retailing and E-Commerce. This report also contain why e- retailing become an essential need in today's world and how they are influencing our life. I also tells about the business uses of e-retaiting, And what is the scope and uses of e- retailing, (AYUSHI AGGARWAL)CHAPTE R__ NO. TITLE PAGE NO. 1. INTRODUCTION TO THE TOPIC RESEARCH METHODOLOGY + OBJECTIVE OF THE STUDY * SCOPE OF THE STUDY © LIMITATION OF THE STUDY * DATA COLLECTION 2 REVIEW OF LITERATURE, DATA ANALYSIS & INTERPRETATION CONCLUSION & RECOMMENDATION BIBLIOGRAPHYCHAPTER -1 INTRODUCTION TO THE TOPICITRODUCTION TO E-RETAILING ees SAE Nic ctailing is the sale of oods and services through the Intemet, Electronic retailing, or ¢-tailing, can include business-to-business and business-to-consumer sales, tailing revenue can come from the sale of products and services, through subs criptions to website content, or through a idvertising. TAILING' E-tailing requires businesses to tailor traditional business models to the rapidly changing face of the Internet and ers. E-tailers are not restricted solely to the Internet, and some brick-and-mortar bus also operate sites to reach consumers. Online retailing is normally referred to as e-t ting,Itisa play on the words "retail" and "e-commerce." If few years back technology brought the shopping information on to the laptops, today it brings the products right to the doorstep. With the use of intemet as a medium a person can buy products from a virtual store (shopping website). Though detractors to this technological advancement thought that this would take the joy off shopping, it has only added a whole new perspective to shopping ‘The word E- il has its roots in the word *retail". Here the letter E stands for ‘electron’ since the shopping process happens through the electronic media (intemet). With the use of a web-space a virtual shop is created and the products are displayed through images in this space with the features and price tags. By accessing this shopping site a customer can choose hisvher products into a cart, The payment te this product ean be done in various ‘modes as mentioned by the shopping site. The product would be delivered to the address specified by the customer. Steps Involved In E-Tailing:- ‘The shopping process through internet media happens in 5 steps generally. 1) Customer visit: The customer accesses the website of the e-tailer through hissher mobile or PC or laptop. This visit is very critical to the e-tailer because it is this, th vis would create an opportunity fora business, The simplicity of the site, the arrangements of the products in the site and various other factors decide the first impression of the customer. 2) Choice of product: Once the customer visits the site he/she would choose a product based on the image and valid information available on the web page, This information can include the price tag, details about the product, availability/deliverable time span-and even customer reviews on the product,3) Payment online: Once the customer chooses the product the next step would be to g0 through a secure process of data exchange. The e-tailer may provide a unique user agcount to the customer to keep the transaction safe, Payments to the product ean be made online through eredit or debit card or even eash on delivery basis where the customer pays the e-tailer when the product is delivered to hinvher. 4) Product delivery: Once the order is placed with the e-tailer the next process would test the efficiency of supply chain network of the e-tailer. The delivery of the product would be based on the availability of the product in the inventory closest to the customer's delivery address, This process may also involve shipment of the product, There are different methods used in this process. Some e-tailers just create a platform through a website where the business actually takes. place between the customer and a company (or business) who is a client to the e-tailer. Here the e-tailer would just take the commission on each product sold. Typically an e-tailer may also choose to buy products that have potential demand and then display it on the site. In this ease the e-tailer would have to take care of inventory expenses and also the entire procurement and disbursement cycle. 5S} Customer feedback: Once the product is detivered to the customer the feedback from the customer is very much important. This is primarily beeause of the absence of a real shopping store em sament, The entire experience of the customer during the process would be an indicator of the efficieney of e-talling. This experience of the customer ean be accessed through proper customer service for feed backs and the problems faced by the customer should be corrected by the e-tailer. Late delivery, wrong product, damaged product etc can be some of the ‘customer complaints which the e-tailer would have to sort out,Benefits of E-tailing:- # Itreduces the space occupied by retail outlets in the real world. © It gives quick and easy access to a shopping space at any time and from any place where there is access to internet. + It saves time of the customer that is spent on travelling to a shopping place in teal world, It creates a new platform for goods from different parts of the world which could be imported by placing an order. E-tailers in India: + Yebhiscom © Flipkar.com © Infibeam.com + Myntra.com © E-bay.com © India times shoppingIncreased Internet penetration, improved seeurity measures, convenience of shopping in lives pressed for time, and, of course, dozens of retailers to choose from — these are a few factors that are atiracting more and more consumers to shop online. In fact, the recently concluded Google's Online Shopping Festival (GOSF) saw some 16 million Indians shopping online within four days. Yet, white online shopping is an easy way for comparison of different products on the basis of their features. and spccifieations—without going from shop to shop, many consumers do find it difficult to choose the best and safest sites for making purchases. This report focuses on the consumer-side story so far, specifically the distance between expectation and experience in the online shopping space, and thereby attempts to identify problems that consumers face when purchasing online, Priyanka Joshi and Hemant Upadhyay I n the thied week of December, the anchor space in Economie India, Published after ‘Times was occupied by a positive story on e-commerce thorough background research and interviews with industry leaders and with support from statistical information from IMRB research, the report concluded that ‘major Indian online retailers, including Snapdleal and fashion portal Myntra, expect fo tum profitable in the next two years, signalling a seismic shift in an industry where so far growth has been pursued at the expense of the bottom | Dozens of follow-up stories to the story were being e-Commerce Report published by various other leading dailies till this piece went to print, andl all of them were underlining the fact that India was buying online like never before and that the numbers of online buyers would continue to grow. Bearing in mind the popularity of e-stores, we at Consumer Voice set out to capture the experiences of consumers who were regularly visiting these portals and making purchases. ‘The mandate was also to review the services of the top ¢-retailers. ‘Through a formal survey, we identified the highly rated e-commerce sites and also identified a few problems that consumers faced on online/Web retail stores. We identified nearly 140 variables, of which 112 were considered worth researching and grouped as prepurchase and post-purchase variables (See box), Pre-Purchase Behaviour Analysed in Phase 1 of survey Post-Purchase Behaviour Analysed in Phase 2 of survey + Browsing experience and visual appearance + Search experience + Range and ailability of products + Comprehcnsiveness of information + Comparison facility + Terms and conditions + Shopping cart + Payment process * Delivery+ Refund + Retura/Replacement +Customer care ‘The e-retailing(less frequently; ¢-Retailing, ¢-Tailing, etc.) is the concept of selling of reiail goods using electronic media, in particular, the internet, The vocabulary electronic retailing, that used in internet discussions as early as 1995, the term seems an almost in cvitable addition to e-mail, e-business and e-commerce, ete, e-retailing is synonymous with business to- consumer (B2C) transaction model of e-commerce, Although e- retailing is specific constiments like; trust an independent business model with cert model, electronic transaction process, etc, but in reality it is a subset of e+ commerce by nature. E-Retailing stores sell online promotion only for goods that can be sold easily online, e.g, Amazon did for Books & CDs, ete. The online retailing require lots of displays and specification of products to make the viewers have a personal feel of the product and its quality as he gets whil physically present ina shop. to ssman and the final E-Retailing refers to retailing over the internet, Thus an ¢-Retailing is a B2C (Busin customer) business model that executes a transaction between busis consumer, E-Relailers ean be pure play businesses like amazon.com or businesses that have evolved from a legacy business such as tesco.com, ‘The e-retailing is a subset of e- commerce, Thus, e-commerce is the master domain defining the e-retailing operation, Essentials of E-Retailing:- Electronic retailing or e-tailing, as it is generally being called now, is the direct sale of products, information and service through virtual stores on the web, usually designed round an electronic catalogue format and auction sites, There are thousands of storefronts or e-commerce sites on the Intemet that are extensions of existing retailers or startups, Penetration of computers and proliferation of the Internet has given rise tomany new forms of businesses, such as business process outsourcing, call centre based customer relationship management, medical transcription, remotely managed educational and medical services and of course, electronic retailing. ‘There are certain essential ingredients for an electronic retailing business to be successful, One must consider these components well in advance before sctting up an electronic storefront, ‘These essential components are + Attractive business-to-consumer (B2C) ¢-comme! portal + Right revenue model + Penetration of the Internet E-Catalog- It is a database of products with prices and available stock. Shopping Cart- The customers select their goodies and fill shopping cart, Finally, as in a real store, at the time of checkout, the system calculates the price to be paid for the products, A payment gateway -Customer makes payments through his/her eredit card or e-cash, ‘The payment mechanism must be fully secure, Support Services in E-Retailing:- ‘The electronic retail business requires support services, as a prerequisite for successfull jiness, online or offline, operations, These services are required to support the bu: throughout the complete transaction-processing phases, The following are the essential support services: + Communication backbone + Payment mechanism + Order fulfillmentRESEARCH METHODOLOGY Research methodology is not only the application of the researeh methods but also the comparision of the logic behind the methods that is being used in this context of research study and explain why particular methods or techniques are used and why others are not being used. Research methodology is the to systematically solve the research problem In various steps that are generally adopted by a researcher in studying his research problem along with the logie behind them are studied in order to have a clear view of the study.Research methodology is the way systematically solve the research problem. It may be understand as a science of studying how research is done scientifically. In it I study the various steps that are generally adopted by a researcher ii his research problem along with the logic behind them. It i necessary for the researcher to know not only the research method but also the methodology. ‘The report has different direction and features, including different steps as follows; ‘The research process includes the following steps: * Del ig the prabler + Statement of research objectives Planning the researeh design © Planning the sample © Collection of data Analyzing the data © Formulation of conclusion © Preparation of the report OBJECTIVES OF THE STUDY 1. To leam about the advancement of the e-retailing in India. 2, To know what are the various e-retailing interfaces. 3. To gather knowledge about how to increase the sales for manufacturer and how to influence the omens, 4, To know what are the advantage and disadvantage of e-reiailing,SCOPE OF THE STUDY This study comprises of in-depth eoverage of E-Retailing. A little bit of ‘Commerce is also covered, However this study is limited to the extent that it is only related to the study of E= Retai ng. This study does not focus on the wide spectrum use of e-retailing in daily life on ‘our social lives and businesses,4) There is no doubt in saying that technology is changing our view of living but side by side it has some side effects or we can say bad effects especially an our children and society and it can’t be neglected. 5) Scope of the study is limited to the extent of information gather from the internet. 6) This study will help the people to lean about the substitutes available for the same product. 7) This study explains about the factors which involve in managing the sale and purchase over network. ‘The research design refers to the overall strategy that you choose to integrate the different components of the study in a coherent and logical way, thereby, ensuring you willeffectively address the research problem; it constitutes the blueprint for the collection, measurement, and analysis of data, ‘A research design is the plan of a research study, The design of a study defines the study type. ‘The various types of research designs which are used in collection of data are: Exploratary Research Design Descriptive Research Design Diagnostic Research Design Experimental Research Design Research design for the present study applied is an Exploratory DATA COLLECTION ‘The type of research design which is used in this study is exploratory research design Depending on the source, statistical data are classified under two categories:Primary Data: data needs of the problem at hand. Such data are original in character and are generated imary data are obtained by a study specifically designed to fulfill the in large no. of survey conducted with a sample. Secondary Data: These data are not originally collected but rather obtained from published or unpublished source ‘The source of data collection is Secondary Data, ‘The various sources which I used for collecting data for this study involve: © The use of internet * Books © Newspaper © Magazines, ‘These sources really help me a lot in gathering and collecting knowledge about computers which helped me in completing my project on the topic evolution of computers successfully. For the purpose of secondary data, secondary sources of information like ‘magazines, newspapers, journals; studies conducted in past ete. had been referred. The main sourees of secondary data in the study are 1. Websites 2. Books 3. Journals LIMITATION OF THE STUDY The findings of this study are based on the expressed opinion of the respondents. * Some respondents were hesi nt in providing complete information.* The sample of the respondents is not representative of the total universe. nother limitation lies in the measurement of attitudes toward online privacy in general, Consumers may behave differently when making purchase decisions serning specific Web sites or product categories. CHAPTER-2 REVIEW OF LITERATUREESSENTIALS OF E-RETAILING. the direct sale of Electronic reta generally being called now, Wg oF e-tailing, as products, information and service through virtual stores on the web, usually designed m sites, There are thousands of around an electronic catalogue format and aue storefronts or e-commerce sites on the Internet that are extensions of existing retailers or startups. Penetration of computers and proliferation of the Internet has given rise to outsourcing, call centre based many new forms of businesses, such as business procs customer relationship management, medical transcription, remotely managed educational and medical services and of course, electronic retailin ‘There are certain essential ingredients for an electronic retailing business to be successful, One must consider these components well in advance before setting up an electronic storefront, These essenti | components are: © Attractive busi ss-to-consumer (B2C) e-commerce portal + Right revenue model + Penetration of the Internet E-Ca log It is a database of produets with prices and avsShopping Cart The customers select their goodies and fill shopping cart. Finally, as ina real store, at the time of checkout, the system calculates the price to be paid for the products A payment gateway Customer makes payments through his/her credit card ar e-eash, ‘The payment mechanism must be fully secure. SUPPORT SERVICES IN E-RETAILING ‘The electronic retail business requit support services, as a prerequisite for successful operations, These services are required to support the business, online or offi throughout the complete transaction-processing phases, The following are the essential support services: + Communication backbone + Payment mechanism © Order fulfillment + LogisticsInternet users worldwide ul 13995 1995 1997 958 199" 2000 20m 2omz 200% 2008 2005 2005 2007 2008 2008 2010 2011 2012 2018 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 e-retailing dates back to the invention of the very old notion of "sell and buy", electricity, cables, computers, modems, and the Intemet, 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. At first, the term ecommerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Blectronie 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 clectronically.Although the Intemet began to advanee 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 aceess and a persistent connection to the Internet. In 2000 a {great number of business companies in the United States and Westem 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. Although the dot-com collapse 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 (¢.g., afler the online grocery store Webvan came te 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, 2) ESTIMATED U.S RETAIL ECOMMERCE SALES AS A PERCENT OF TOTAL. RETAIL SALES ‘According to all available data, ecommerce sales continued to grow in the ment 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 catalogs, 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 lored marketing. customer preferences and to deliver individually- 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 Intemet. Currently there are S largest and most famous worldwide Intemet retailers: Amazon, Dell, Staples, Office Depot and Hewlett Packard. According to statistics, the books, ‘most popular eutegories of products sold in the World Wide Web are mus computers, office supplies and other consumer electronics, Amazon.com, Ine. 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. AL the outset Amazon.com was considered as an online bookstore, but in time it extended a variety of goads by adding eleetronies, 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 sucess. 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 thied party sellers who list and sell goods on the web site, In 2008 Amazon penetrated into the 20th Century Fox, cinema and is currently sponsoring the film "The Stolen Child” wit 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, ie. the ability for visitors to submit their reviews and rate any product om a rating scale from one to five stars, Amazon.com is also well-known for its and user friendly advanced search facility which enables visitors to search for keywords in the full text off 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 ne middlemen has been admired by a lot of customers and i ted by a great number of ecommerce businesses. The key factor of Dell's suecess is that Dell.com cnables 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 Sth 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. = 1989 - Peapod brings the grocery store to the home PC 1992, -U.S. Supreme Court upholds 1967 ruling, effectively freeing web retailers from collecting sales tax in states where they have no physical presence -Phone-based 1-800-Flowers plants itself on the webs + 1994 -A department store comes to the Internet: J.C. Penney Jerry and David's Guide to the World Wide Web is renamed Yahoo -Netscape unveils SSL encryption, enhancing web security ~The future king of e-commerce, Amazon.com, launches ~Auction Web launches a site soon to be rechristened eBay + 1997 -Dell becomes first company to hit $1 million in annual online sales begins operations, changing the way people rent movies -PayPal launches its alternative payment service; eBay aequires PayPal in 2002 -Google, the future king of search, debuts -Yahoo launches selling platform Yahoo Stores Annual online retai sales hit $8 billion + 1999 -Zappos launches web-only shoe store emphasizing customer service; in 2008, annual sales top $1 billion-dnternet Retailer magazine debuts in March -Online grocery service Webvan starts its engines -Global Sports, which becomes GS! Commerce in 2002, debuts fully outsourced e-commerce platform -Levi gets hands slapped by retailers for selling direct to consumers, kills its web site -eToys.com among first online retailers to jump into Internet [PO boom -Heavy-hitter Furniture Brands International says furniture doesn’t fit the web; housewares/home furnishings retailers rack up $3.9 billion in web sales in 2007 =Victoria’s Secret debuts site with an online video viewed by | million on Day One -Weekly web sales top SI jon for first time in December 1999 Annual online retail sales skyrocket 100% to $16 billion 2000 -Amazon.com and Toys ‘R’ Us announce 10-year agreement for eobranded online store -Disgruntied customers file class action suit against ToysRUs.com for failing to meet Christmas delivery -In Q4, quarterly e-commerce sales exceed 1% of total retail sales -Wal-Mart introduces buy online/pick up in store program -cToys crashes repeatedly during December; shoppers looking. to buy file class action law: 2000 (The Dot Com Investment Bust) -Garden.com throws in the trowel -Pets.com winds up in the a -Hyped fashion retailer Boo.com closes its closet ~The Internet falls out of favor with Wall Street, but not Main Strect: o sales soar 81.3 % to $29 billion Internet grocery service Webvan runs out of gas -One-hour delivery service Kozmo.com crashes -eToys.com shuts its toy chest-Despite ongoing dot-com investment implosion, annual onli 48.3% to $43 billion 2001 ¢ retail sales leap -Branded retailers account for 2% of all merchandise sold on eBay -Amazon.com blazes a trail, launching a mobile commerce site -Court shuts down free music-sharing site Napster; site relaunches in 2003 as paid service - Amazon.com posts first net profit in Q4, proving pure-plays can play 2002 -Number of web users who have bought online crosses 50% mark; 52.4% aged 14+ bought on the web in 2002 -Annual online retail sales up 25.6% to $54 billion 2003 -Apple launches iTunes store for digital music downloads “Social network MySpace launches, followed by rival Facebook in 2004 -Congress passes the CAN-SPAM Act, setting miles far marketing ¢-iail -Annual online retail sales jump 29.6% to $70 billion 2004 -Credilt card companies create PCI data security standards -Anternet Retailer debuts Top 300 Guide, which will become the Top 500 Guide -Annual online retail sales up 25% to $87.5 billion 2005 -One million Valentine's Day shoppers crash Hallmark.com multi Streamlined Sales Tax Project launches, stepping up pressure for retailers 10 collect sales tax on online sales First Internet Retailer Conference and Exhibition -YouTube launches; its massive popularity inspires e-retailers to take another look at online video customer reviews with first client, Golfsmith; customer reviews soon gain widespread popularity-1.C. Penney becomes first retail chain te hit $1 billion in online sales -Web 2.0 takes hold as more retailers ineorporate user-generated content and new technologies that make sites more interactive Annual online retail sales jump 25%eagain-to $109.4 billion 2006 -Google debuts Google Checkout to compete with the likes of PayPal -Web-only Newegg hits $1 billion in sales only five years after launch -Annual online retail sales up 25%-yet again-to $136.2 billion ZA-Smaller players drive online sales growth: 1-100 in the Intemet Retailer Top 300 Guide grow 199%; 401-500 grow 23% 2007 -Apple debuts the iPhone with full web browsing and downloadable apps, advancing m-commerce -Nike CEO says he “woke up” to potential of e-commerce, charts new course to achieve “full potential” of the web -Apparel sales exceed computer sales online for the first time -Not-so-metry Christmas: Amazon.com, Macys.com, Overstock.com and Yahoo Stores crash during the holiday crush Annual online retail sales growth slips.a bit, up 21.8% to $165.9 bil 2008 Amazon.com surpasses eBay in most monthly unique vi -Levi is back sell tors 1g online; manufacturers account for 14% of sales of Top 500 online retailers -Amazon.com introduces TextBuylt, enabling consumers to buy products via text messages -Number of smartphone users nears 25 million and 3G wireless broadband subscribers surpasses 70 million; both technologies dramatically improve mobile web browsing-The Friday after Thanksgiving, Sears.com down for 2 hours and 45 minutes due {0 popularity of online promotions -Google Sites generate 85 billion searches, Yahoo Sites only 25 billion and Microsoft Sites 10 billion ~As the economy tanks, the heyday of 20%-plus e-commerce growth ends: annual online retail sales up only 6% 2009 -Amazon.com and Overstock.com lose New York online sales tax battleCHAPTER-4 DATA ANALYSIS & INTERPRETATIONDefinition of E-Retailing: ‘The e-retailing(less frequently; e-Retailing, ¢-Tailing, etc.) is the concept of selling of retail goods using electronic media, in particular, the internet. The vocabulary electronic retailing, that used in internet discussions as early as 1995, the term seems an almost in table addition to e-mail, e-business and e-commerce, ete. e e-retailing is synonymous with business- to- consumer (B2C) transaction model of e-commerce, Although e- retailing is an independent business model with certain specific constituents like; trust model, electronic transaction process, etc, but in reality it is a subset of e- commerce by nature, E-Retailing stores sell online promotion only for goods that ean be sold easily online, . Amazon did far Books & CDs, et specification of products to make the viewers have a personal feel of the product and its The online retailing require lots of displays and quality as he gets while physically present ina shop. E-Retailing refers to retailing over the internet. Thus an e-Retailing is a B2C (Business to customer) business model that executes a transaction between businessman and the final consumer, E-Retailers ean be pure play businesses like amazon.com or businesses that have evolved from a legacy business such as tesco.com. ‘The e-retailing is a subset of e- commerce. Thus, e-commerce is the master domain defining the e-retailing operation.APPLICATIONS OF E-RETAILING: ‘The applications of E-commerce are used in various business areas such as retail and wholesale and manufacturing. The most common E-commerce applications are as follows: + Retail and wholesale: E-commerce has a number of applications in retail and wholesale, E-retailing or o line retailing is the selling of goods from Business-to-Consumer through electronic stores that are designed using the electronic catalog and shopping cart model. Cybermall is a single Website that offers different products and services at ane Internet location. It attracts the customer and the seller into one virtual space through a Web browser, "Marketing: Data collection about customer behavior, preferences, needs and buying patterns is possible through Web and E-commerce. This helps marketing activities such as price fixation, negotiation, product feature enhancement and relationship with the customer, + Finance: ‘ancial companies are using E-commerce to a large extent. Customers can check the balances of their savings and loan accounts, transfer money to their other account and pay their bill through on-line banking or E-banking, Another application of E~ commerce is on-line stock trading, Many Websites provide access to news, charts, information about company profile and analyst rating on the stocks. + Manufacturing: E-commerce is also used in the supply chain operations of a company. Somecompanies form an electronic exchange by providing together buy and sell goods, trade market information and run back office information such as inventory control, This speeds up the flow of raw material and finished goods among the members of the business community. Various issues related to the strategic and competitive jssues limit the implementation of the business models. Companies may not trust their competitors and may fear that they will lose trade secrets if they participate in mass electronic exchanges, * Auctions: Customer-io-Customer E-commerce is direct selling of goods and services among customers. It also includes electronic auctions that involve bidding. Bidding is a special type of auction that allows prospective buyers to bid for an item, For example, airline companies give the customer an opportunity to quote the price for a seat on a specific route on the specified date and time, * In 's popular online fashion store receives $ unique visitors per second. © 114 tickets are sold every second on a leading online entertainment website in Indi© A local search service generates | search query every second via mobile internet, * An Indian e-commerce company sells a product every second. Customers Want to Feel Connected ‘The digital world is dramatically shaping the retail sector where constant contact with the customer is essential. Opinions are now being shaped by bloggers, tweeters, Facebook likes and YouTube comments, Your next customer is increasingly going to the internet before going to the store. These new empowered customers have a list of demands. ‘They want retailers to anticipate and service their shopping needs ‘They want retailers to make it convenient and easy for them to interact, ‘They want retailers to be available when they need them ‘They want retailers (o remember all of their interactionsThe Retail Shift Cloud, Analytics, Mobility and Social solutions from IBM are exactly what you need to adapt to today’s marketplace, Customers are responsding faster to retailers that add value through innovations and have little interest in retailers who don't meet their expectations. ‘The customer experience is evolving into a model with heavy emphasis an mobile, social, analytics and cloud, The power is now shifting to consumers and this shift will continue to reshape the retailing landscape for years to come. * Customer Experience: Turn loyal customers into brand advocates who will actively build the eustomer base. © Inventory & Fulfilment: = Improve inventory optimisation and customer satisfaction ~ Create access to a single pool of inventory to deliver the product when and where the customer wants it © Associate Empowerment: Increase employee stature and retention while reducing turnover * Brand Development: -Increase brand loyalty leading to greater share-of-wallet1) Interactive Systems In E-Retailing - This kind of e-retaiting system permits two way interactions and consists of promotional touch sereen booths of intemet and kiosks for components such as holiday or airline bookings, Some systems can describe the product in use, In ease of touch sereens systems, they permit further inquiries or give printouts from the database. A feature of both systems is that a credit card can be used in order to protect the sale. 2) Passive systems in e-retailing- ‘These are non interactive one way media, where the retailer can decide upon the timing ch as clubs on television, shopping pages or one way cable systems. The form of selling ibe the and content of messages. They include entire one way communication media form: us ng passive systems const ts of electronic media or video eatalogs which des product in use or offers further information.‘Technology today has seen a wide development so as to facilitate the electronic retailing function properly for both online businesses and consumers (Sople, 2009), The electronic retailer, in order to make the retailing process a success has to make several decisions regarding how online business will funetion. However, all decision must be taken over and against the principles guiding direct marketing,E-Retailing Benefits Both Consumers and Marketers Bh ectronic retailing is a powerful marke ng technique for the right product with the right message to the right person, But what makes for the right combination? Why do consumers respond to TV offers or shop online? ‘The short answer is that the consumer benefits. People respond to electronic retailing messages because sto their advantage to do so. Ik addresses their needs, either practical or psychological. Electronic retailing, whether on TV or the Intemet, is about motivation. How do you influence sameone to do something - to pick up the phone or log on toa Website and then make a purchase? Consumers will buy a product or service through an electronic retailing campaign because they pereeive its value or because it makes them look better or feel better about themselves. They do this even though they cannot examine the product in person and may have to wait four to six weeks to receive the product. “They accept these drawbacks for various reasons, including: + Convenience, For people who are pressed for time and do not enjoy shopping, an electronic retailing product may take on added value because the buying transaction can be completed wa traditional retailing is unavailable, It saves them time and energy, out hassle, quickly and at hours when in retail # Early access, While many eleetronic retailing products are avaitabl stores at some future date, the spot, infomercial or Web site offers the product now, An electronic retailing campaign may be the only place where itis available immediately. If the product solves a difficult problem or offers an important improvement, consumers who buy from the electronic retailer can have the product in their hands sooner.+ Innovative or unique products. Getting a new, innovative product to market through traditional channels is expensive and time-consuming, and it requires some luck on the part of the product's developer. Electronic retailing allows a product's developer to bypass this process and sell directly to end-users. ‘Consumers who see or hear an electronic retailing campaign get access to products that may never show up in a retail store because the developer lacked the resourees to take on the massive retail industry. # Better salesmanship. Let's fee it: Most products are not well-merchandised. Key sales messages are poorly communicated or may be missing entirely. Electronic retailing often overcomes these problems, because the medium itself television or the Internet - allows the person to be sold the produet. They understand how it works and why. The benefits are presented clearly and convincingly. And make no mistake about eople enjoy being sold to, So what's in it for marketers? Perhaps the scales are tipped in favor of consumers, particularly in today’s e-commerce environment, But for a marketer with a new product, electronic retailing can be a cost-effective method of testing a product's viability in the marketplace, A successful electronic retailing campaign not only generates revenue but also builds brand awareness and paves the way for broader distribution. ‘That's not to say that electronic retailing does not have its pitfalls. While the cost of entry is low compared with the cost of mounting a traditional retail strategy, a paorly executed electronic retailing campaign ean cost hundreds of thousands of dollars. And once launched, a product can be "knocked off” by an unserupulous competitor. For many marketers unfamiliar with electronic retailing and how it works, itis easy t0 hook up with inexperienced partners and vendors that do not know how to develop and managea campaign effectively. That's scary. Overall, though, the benefits outweigh the risks for many marketers. An electronic retailing campaign is a low-overhead operation without the network of wholesalers andretailers between the seller and the consumer. It is almost exclusively a eash business, in that electronic retailing marketers do not have to extend credit to their buyers the way traditional manufacturers da to wholesalers and retailers. Most important is the control an electronic retailing campaign gives the seller. The timing and terms of an offer, the price of a product and the content of the message all are uncer the direct control of the marketer and can be adjusted quickly as conditions warrant, ‘The rapid growth of electronic retailing is a testament to a Fundamental truth: Peaple on both sides of the equation benefit in tangible and meaningful ways. And that is a powerful formula for success. E-TAILING STRATEGY Assessment of Brand Strength & Opportunities ae, Analyzing Online & Offline ‘Online Buying E-Tailing Patterns Consumer & Management Buying Behavior Perspective of ‘Overall Goals Study1) Branding Do you have a ‘thing’ for brands? Do you like Prada or Gucci? Do-you like Starbucks? A brand is a belief and the most powerful thing. That is the reason you decide to pay higher price without any problem, So think, how do you brand your business? What are the current methods for brand building? Are they really helpful? Are they costing much? Can you measure the ROL (retum-on-investment)? Is it sealable process? Ityou're answers have more ‘No’ than ‘yes’, then it's time to tune your Brand-Bui method. Now, how can you build a strong brand if you're totally new? ‘These are the effective ways to build a stronger brand using Internet for a new business 1. Unique Design: Good enough to hold them! If you're able to amaze them, you ean sell even more, Get a Logo and designed website. It doesn't eost you much if you use service like Elance. Hl, Utilize Social Networks; Facebook, Twitter and Linkedin presence are very helpful here. They got some very innovative products (Twitter Promoted, Facebook Ads ete) to promote a brand. Spend some time to discover the ‘best practices”2) USP. USP stands for Unique Selling Propos: others? What are the product differentiators? 1. How do you differentiate your business from ‘A buyer usually spends a good time on research. He searches for Price * Quality * Deals * Reviews ete So How do you differentiate your products? Is it price, quality, customer support, any guaranty (Money Back, warranty ete.) oF payment flexibilities? When you find your USPs, showease them everywhere, It'll help buyers to make decisions. For example, I'm willing to pay higher price for fast shipping. It's strange but justifies my impatient behavior 3) Store Experience A good store experience is a must have for Ecommerce success. If your eart or design sucks, not is going to help to convert better, Make your store as much as user-friendly you can, Get a good design, speed-up the store (1 second delay in site speed may decrease conversion rate by 7%), smooth the Cart and get higher conversion rate. A good Ecommerce platform or software is a necessi Offer number of features but don't confuse them with lot of options. Simplicity is also necessary, 4) Customer Retention ‘A business is never going to be a success without the army of Loyal Customers. Customer retention is helpful to get more sales and to build your brand. A loyal customer not only buys from you but he also spreads the good words in his network,Also you've to apply less effort to sell something to existing customers again. They've already used the product and they won't be affected by FUD (Fear, Uncertainty and Doubts), Simple advice, always be connected with your existing customers. Let them feel special. Ask fr regular advice (design or feature) using newsletters, blogs or surveys. Thus they'll be connected and feel like a part of the business and not only a proposition/asset. 5) Multi-Channel Marketing ‘There are opportunities lying everywhere in Imtemet, Some businesses are m millions from Facebook, Some businesses are killing their competition with Search Engine Marketing. ‘The mantra is to spread your reach everywhere. It’s not that hard with Internet. Let me ask you somethin, »w do you promote your business? What are the current quality traffic sources? If'you can only list 2 or 3 traffic sources, be ready for sudden loss. = 90.38% Search Traffic 216 Visits = 1.26% Referral Traffic 3 Vests = 8.37% Direct Traffic 20 Visits This is Bad.It you're totally depended on search engines, a negative ehange in ranking algorithm can affect your whole business. If you rely on Ads for traffic, their policy change can bring you to a danger situation. An ideal marketing strategy should focus on no, of marketing channels. You can use Email Marketing, SEM, Affiliate Marketing, Referral Marketing, Social Media and. offline campaigns to diversify your reach. ™ 23.08% Search Traffic 6 Visits = 30.77% Referral Traffic 8 Visits = 38.46% Direct Traffic 10 Visas = 7.69% Campaigns 2 Visits: This is Good. Differences between Online Retail & Traditional Retail Businesses Often times, it is easy to overlook the differences between selling online through a shopping cart and retail selling through a brick and mortar storefront, Online retail is different from selling through a store in many ways and you should become familiar with the differences so you can better understand the many benefits of selling online compared to selling through a physical storefront. The obvious differences are the way the products are displayed to customers and the way in which they enter your store to browse around,Main Differences Between Online Retail & Physical Storefronts «Display: By shopping at a brick and mortar store the customers are able to physically touch and handle items they are interested in buying. Online retailers are forced to display items using only pictures, graphics and text based product descriptions, ‘+ Expense: Typically, there are major differences in the amount of funding or startup capital needed to open the store, Brick and mortar stores usually require a bigger budget since you have to lease space, rent property and pay for other location expenses. Online store owners do not usually have to worry about building leases or property expense. = Location: Online retailers are not limited to one location and have no geographical boundaries like a traditional brick and mortar storefront has. Physical business locationscan limit the amount of eustomer traffie and foot traffic from shoppers, especially if they. are not in a bigger city or metre area, Online retailers have no limits and can typically service local, national and international customers. = Communication: It ean be harder to commu te with customers through an online store compared to the face-to-face interaction customers get by shopping at a brick and ‘mortar store or physical business location. Online retailers may have a hard time getting, information across to the customer and must be sure to answer all possible buyer questions through text and graphics on the site so there is no confusion during the purchase. «Technology: Another main difference is the types and amount of technology needed to run each type of business. Most online store owners find that their technology is constantly changing and there is a bigger need for them to keep up and adjust as it improves. The technology used to run brick and mortar businesses has been around for years and rarely changes as often as it does in the online selling world. E-Retailing Benefits Both Consumers and Marketers Electronic retailing is a powerful marketing technique for the right product with the right message to the right person, Bul what makes for the right combination? Why do consumers respond to TV offers or shop online? ‘The short answer is that the consumer benefits. People respond to electronic retailing messages because it is to their advantage to do so. It addresses their needs, either practical, Electronic retailing, whether on TV or the Internet, is about motivation, How do you influence someone to do something - to pick up the phone or log on toa Web site and then make a purchase? Consumers will buy a product or service through an electronic retailingcampaign because they perceive its value or because it makes them look better or feel They do thi person and may have to wait four to six weeks to receive the product. better about themsel even though they cannot examine the product in Convenience. For people who are pressed for time and do not enjoy shopping, an electronic retailing product may take on added value because the buying transaction can be completed Without hassle, quickly and at hours when traditional rewiling is unavailable, Early access. While many electronic retailing products are available in retail stores at some future date, the spot, infomercial or Web site offers the product now. An electronic retailing campaign may be the only place where it is available immediately. If the product solves a difficult problem or offers an important improvement, consumers who buy from the electronic retailer can have the product in their hands sooner. Innovative or unique products. Getting a new, innovative product to market through traditional chann s is expensive and time-consuming, and it requires some luck on the part of the product's developer. Electronic retailing allows a product's developer to bypass this process and sell directly to end-users. Consumers who see or hear an electronic retailing campaign get access to products that may never show up in a retail store because the developer lacked the resourees to take on the massive retail industry Beiter salesmanship. Let's face it: Most products are not well-merchandised. Key sales messages are poorly communicated or may be missing entirely. Electronic retailing often mor the Internet - allows overcomes these problems, because the medium itself - tele, the person to be sold the produet, They understand how it works and why. The benefits are presented clearly and convincingly. So what's in it for marketers? Perhaps the scales are tipped in favor of consumers, particularly in today's e-commerce environment. But for a marketer with a new product, electronic retailing can be a cast-effeetive method of testing a product's viability in the marketplace, A successfull electronic retailing campaign not only generates revenue butalso builds brand awareness and paves the way for broader ‘That's not to say that electronic retailing does not have its pitfalls. While the east of entry is low compared with the cost of mounting a traditional retail strategy, a poorly executed electronic retailing campaign can cost hundreds of thousands of dollars, And once launch ed, a product can be "knocked off" by an unscrupulous competitor, For many marketers unfiumiliar with electronic retailing and how it works, i easy to hook up with inexperienced partners and vendors that do not know how to develop . Overall, though, the benefits outweigh the risks for many marketers. An electronic retailing campaign is a low-overhead operation without the network of wholesalers and retaile between the seller and the consumer. It is almost exclusively a cash business, in that electronic ret ailing marketers do not have to extend credit to their buyers the way traditional Most important is the control an clectronic retailing campaign gives the seller. The and terms of an offer, the price of a product and the content of the message all are under the direet control of the marketer and can be adjusted quickly as conditions warrant. ‘The rapid growth of electronic retailing is a testament toa fundamental truth: People on both sides of the equation benefit in tangible ral meaningful ways. And that is a powerful formula for success.5 ways e- commerce has transformed retai India Net savvy small town customers: People in smaller towns are buying goods online as they do not find it in the local stores. Cash payment options: Cash on Delivery by e-commerce companies has made it convenient for shoppers reluctant to pay online or don't have access to credit cards. Purchase for convenience: The hassle of driving in clogged cities and difficulties in finding parking space is making people buy daily necessities such as groceries and vegetables online Logistics: €-commerce companies are partnering with logistics companies or investing on their own to ensure timely delivery of goods to customers Partners, not competitors: Offline retail stores are partnering with e- commerce companies to sell online, How do the E -retailers like Flipkart, Amazon, Snapdeal, ete, work? From placing an order online to delivery of the product to our doorsteps, how does the whole chain of e-retailing work’ Here are the steps that are followed by Flipkart to fulfill orders placed on it’s website — 1, Customer places an order onfine 2, The order comes and falls into the Inventory Management System 3. Flipkar's system is synced with the seller’s Inventory Management System (Example Unicommerce) 4, The seller gets a notification that there is an order in the system that is not fulfilled5. A "Flipkart Serial Number” (FSN) is assigned to all SKUs that are live on the site, These FSN numbers are mapped to the seller's unique code (printed on labels present on the item) for each SKU (Done in Unicommeree). 6, Now, the guys at the warehouse are armed with a bar code scanner which they use to outward the items ‘The items are packed as required and the Flipkart logistics team "ekart Logistics picks up the parcel from the warehouse for tast mile delivery. Seles Flipkart.com is the most popular of all Indian online shopping companies, offering genuine products to people. They have huge stock of innumerable products like clothes, c, electronics, books, health products, kid's toys and accessories, perf musi , AMES, movies, home appliances, shoes, stationeries and many more things 1 del ‘The shopping website offers great advantage of faster prod ry and free shipping on ordered products for more than Rs.S00, Customers also enjoy the privilege of exceptional services like payment on delivery or “cash on delivery’, They ean also pay on he or a monthly basis, as EMIs. In case any customer is not satisfied with the product she ean even return them and get entire payment back. As one of the notable online shopping companies in Indis,Flipkart also offers 30-day replacement policy, All types of Visa and Master Debit or Credit cards are accepted to initiate the online transaction system, Dedicated delivery partners of Flipkart take the responsibility for timely product delivery at mentioned addresses.JABONG.COM JABONG E> Jabong.com is certainly in the acclaimed list of online shopping websites in India. One of the best customer support services I found in India, The online shopping website is highly popular in offering best quality products of reputed brands. Customers can cater to a wide variety of fashion apparel, footwear, accessories and even jewelries. They have huge collection of all mentioned items for women, kids and men. The online shopping website strives best to offer highest shopping satisfaction over the internet to all customers from a wide region. They even use cutting-edge technology on their online shopping platform to make it swift for surfing through various product pages. In addition, highly experienced support team provides exclusive service for consumers and tries to solve almost all problems, if any situation demands, Jabong.com is one of the fastest growing online shopping portals offering reliable, trendy and stylish products according to taste of reigning period and fashion concems of people. ‘They are highly popular as an online shopping portal offering best prices with exclusive discount offers. MYNTRA.COM MYIATIA con A one-stop online shopping portal, mynira.com caters to fulfill all requirements pertaining to fifestyle and fashion products. The company is counted in the list of ontine shopping sites raging the country recently, They even offer variety of branded products through the online shopping portal. They are primarily reasonable to make online ‘consumers conscious about brand value of different products of daily utility. From its introduction into the online business world, myntra is dealing in exclusive choices of accessories, footwear, cosmetics and apparel from more than 500 reputed imemational and Indian brands, Notable among them are Bibs, Adidas, IneS, Puma,Nike, United Colors of Benetton etc. The online shopping portal is reputed to offer more than 3000 styles of products, fitting requirements of all valued consumers. ‘The customer support service and process of home delivery are one of the swiftest in the business world, They are also one of the leading Indian online shopping companies offering guaranteed 30tay free retum of goods from doorsteps of consumers in case of unsatisfactory service. SNAPDEAL.COM snapdeals~ India's Favourite Online Mall Snapdcal.com started their online business platform in 2010 under the leadership of Rohit Bansal and Kunal Bahl, Presently, they are placed at favorable positions on the list of online shopping sites in India. They offer widest range of products — lifestyle, fashion apparel, accessories, electronics, games, eateries, chocolates, grooming, books etc., for both men and women, ‘The online shopping platform has their serviee in more than 50 cities acrass India and also has a record 15 million registered users in the country. The website features more than 3000 brands ~ national, international and even less famous yet offering quality products. The online store has more than 200 categories featuring more than 250000 products listed with them, More than 25000 products are sold every day. ‘Snapdeal has clase ties with reputed courier services that help in faster home delivery process. They even offer free retum policy of products, if they fail to meet the expectations of customers. Unlike other Indian online shopping companies, they initiate complete refund and even additional courier charges that the consumer bears, if any, while retuming the products in an undamaged and unused condition.AMAZON.IN amazonin —— Amazon is one of the most reputed name in the world of 01 e shopping for products like ebooks, electronies and others items. The Amazon India website and it services are being tweaked for India and its hugely growing online shoppers. Amazon .in is operated by Amazon Seller Services Private Lad, an affiliate of Amazon.com, Inc. is a Fortune 500 company based in Seattle, that opened on the World Wide Web in July 1995; and today offers Earth's Biggest Selection. They are committed to ensure 100% Purchase Protection for your shopping done on Amazon in so that you can benefit from a safe and secure online ordering experience, convenient electronic payments and cash on delivery, easy returns, Amazon's customer service with 24*7 support, and a globally recognized and comprehensive purchase protection provided by Amazon’s A-to-Z Guarantee, You can find this Ful jed by Amazon badge on many product pages. This specifies that gible for FREE Delivery and can be placed u ned by Amazon India that the orders which contains products worth Rs 499 the Orders are: Cash on Delivery. It is being me or more are only eligible for FREE delivery. In my opinion Amazon have introduced almost all the practical, useful and cool facilities and features on its Indian counterpart, If you have purchased from Amazon India, please share your experiences. You can also share your feedback on the website. EBAY.IN ‘The world’s largest shopping mall on the Internet, eBay is an online marketplace, where individuals and businesses come together to buy and sell almost anything,‘You can find everything on eBay. Mobile phones, digital cameras iPods, t-shirts, shoes, candles, furniture, jewellery, watches, handicrafts, kurtas, laptops, perfumes, computers, microwave ovens, toys, baby products, weighing scales, and much more, There are many ways to buy, so you ean choose the format that is best for you, Make an instant purchase for products at a fixed price with Buy It Now button, Bid using the exciting auction-style format at the price you are willing to pay. If you are the highest bidder you get the item at your price, Ifyou can’t find what you want, let sellers know — Past a Want It Now! You can Buy and Sell with Confidence. eBay's Feedback system is very popular. Members rate cach other based on their experience during a transaction. This is the easiest way to check a member's reputation before you trade with them, Using eBay’s Buyer Protection Program, eBay covers your purchases up to Rs. $0000* (for PaisaPay transactions and up to Rs, 10,000 for non-PaisaPay transactions, eBay's Dispute Resolution Center is also very well known. They can help you resolve am NAAPTOL.COM naaptol ‘shop fight - shop more Naaptol.com is one of the fastest growing top ecommerce sites in India. The company was founded on 2008 under Manu Agarwal. Initially the company served asa search engine to provide comparison of product prices and offer services for product research, A year later, they emerged to be an online marketing platform and were able to crea furor in the market. With plenty of items in store, like cameras, tablets, home apy mobiles and others Naaptol saw a whopping turnover of more than Rs.10 crore in 2009- One of the top ecommerce websites in India, Naaptal initiates faster delivery of all ordered products. However they charge a small amount of shipping charges, based on the distance the parcel is addressed. Naaptol also offers alluring points to online customers on ordering different products, whieh can also be utilized to get attractive discounts at a later stage. All products are genuine, Naaptol reserves the right to declare productscligible for retum and refund in ease a dissatisfied consumer takes up the ease with customer representatives of the company over telephone within 2 days of receiving their orders. YEBHILCOM yebhi.com Yebhi.com is a fast growing online shopping platform that started its business venture since 2010. They are considered to be a premium online lifestyle shopping website that powered sales of branded footwear overtop online shopping sites in India, They attained highest success in sales of other product caiegories varying from accessories, jewelry, mobiles, bags and fashion apparels, Yebhi.com runs their own operation of warehousing that helps in fulfilling orders completely through fastest shipping service. They are the best company to offer exclusive choices of praduets for a wide genre of consumers, They ate an authentic company offering online marketing service and even deal in products from leading brands directly. ‘They do not sell products that do not have brand authentication Yebhi.com is presently one of the top e-retailing websites in India offering authentic and dedicated support service for valuable customers, They accept payment through online transaction mode and even initiate effective home delivery service. How does E-Retailing Work? E-Commerce is driven by the software, so the exact way it works depends on the shopping cart software you select. There are several components, however, that make up any online shopping cart solution; © Web Hosting ~ The foundation of a good online store is a good Web server to host it on, Some shopping carts come packaged with a specific hosting provider orproduct. Others, such as ShopSite, can run on a variety of Web servers and are offered by a wide range of Web hosting providers, Factors such as support, reliability, bandwidth, features, and cost will drive your hosting provider selection. You may already have a Web site through a provider you are happy with where you can put your online store, If you're looking for someone to host your online store, check out our ShopSite Hosting Partners, Merchant Interface — The merchant interface is the tool you use to lage Your online siore. I's what you use fo sel up and use all the other tools, It's more important to have a usaéle merchant interface than having a fancy-looking complex interface. On the other hand, if your merchant interface is soo simple, you lose flexibility, A good merchant interface has to strike a balance between these opposing requirements, ShopSite is an incredibly powerful and Nexible Shopping Cart, but the merchant interface is kept as simple and straight-forward as possible, In addition, there are a variety of wizards and tools to optimize ‘common or complex tasks, Product Catalog— Your product catalog is what your customers see, and how they fi where you want to invest the majority of your time and effort, Just like a printed out about the products you're selling. It is the part of your online store catalog, your online catalog consists of products and pages. The pages create the structure of the cata 12, but they also establish the laok of the catalog. The pages are also one of the main ways you will present product information to your customers. The way you design your pages and how you present your products will have a significant impact on how potcntial customers perceive your store. We in ShopSite later on, Il discuss this in greater detail when we cover how to create a product catalogShopping Cart — The shopping cart is what your customers will use to place onders. Customers add the products they want to purchase to the cart, provide information about si 1g and payment, then submit the order. Like the produet catalog, how the shopping cart Looks has an impact on customer perception. More importantly, however, how your shopping cart works can make the difference between an abandoned or completed sale, One of the biggest tum-offs for potential customers comes from not knowing the final price until they've completed several tedious forms, ShopSite prevents this by presenting the final cost on the first Shopping Cart screen, afler the customer provides only the essential information for calculating shipping and tax rates. ShopSite also has a number of other features to make completing an order as simple and straight- forward as possible. This topic is covered in more detail in the taking orders in ‘ShopSite section of this tutorial. Payment Processing — Accepting payments is the backbone of any online store; ‘without it, eustomers can't place orders. If'you have a briek-and-mortar store, you probably already have a system for processing credit card payments, Online payment processing is a similar process; customers enter payment information, which gets forwarded to a payment gateway that validates the information and confirms available funds, then transfers the funds to your merchant account. There are many different payment gateway and merchant account providers, as ‘well as online payment services such as PayPal and Google Checkout, How to do this will be covered in more detail in the accepting payments in ShopSite section of this tutorial. You can also learn more about accepting payments online, as well as what payment gateway and services are supported by ShopSite on the Payment Processing in ShopSite page of our Web site,Shipping — Once you get an order, you need to gather the products, prepare them for shipping, then send them to the customer. You will need to plan how you will handle the various casts and effort this involves. It's commen practice for online merchants to pass this cost on to the customers — although offering free shipping is great incentive to get customers to buy from you, There are also different shipping services, such as next-day, second-day, and ground shipping, which you may wal to offer your customers. With all of thi your customers want to know what their shipping costs will be before they place an order. ShopSite includes a variety of options for providing real-time shipping cost calculations. You can read about in the taking orders in ShopSite section of this tutorial Tax Caleulation — Calculating, collecting, and paying appropriate sales tax is another part of your online store that you need to consider. How you handle it depends on the laws where your business is. In the United States, for example, you are currently only required to collect sales tax for orders shipped within the state your company operates from (your customers are responsible for paying sales fax in their home state otherwise). In Europe, you are responsible for collecting and paying Value Added Tax (VAT) based off your business location, your customer's location, and the type of product you are selling. ShopSite includes tools to automatically calculate and collect the taxes you are responsible for. These are discussed in the taking orders in ShopSite section of this tutorial Advertising — Drawing customers to your Web site is a critical part of any online store, and good shopping cart sofiware includes features to help you with this task. One key element of advertising an online store is making sure it shows up in the popular search engines, such as Google, Ask, and Yahoo!. Another excellentadvertising tool is E-mail marketing, particularly to customers who've bought from you before. ShopSite includes a variety of tools to help you spread the word about your online store, These ate discussed in the getting customers in ‘ShopSite section of this tutorial. PURCHASE CRITERIA * Easy to navigate, clutter-free Almost all sites scored high on criteria like ‘easy to navigate” and ‘clutter-free, visually appealing layout of web pages’, These scores ranged from 3.45 to 4.06 on a S-point scale, indicating that browsing experience and visual appeal of most sites were satisfactory. ‘* Search experience In ease of ‘search experience” covering ‘relevant People shop online for convenience, range and availability of products, and lower prices. and casy-to-sort results” and ‘unbiased and independent results’, the ranking of most sites was quite high — varying between 3.5 and 4.0.0n a S-point scale. © Range and availability The same was the case with ‘range and availability of products” options, with most sites scoring between 3,27 and 4,03 on a S-point scale,+ Comprehensi information’ varied from 3.49 to-4.19, and the rating of ‘comparison facility’ ranged from 3.16 103.88. information, comparison facility The rating of ‘comprehensive © Terms and conditions Only 60 per cent of the respondents read terms and conditions on websites, OF this 60 per cent, most have given high scores on ability to understand, adequate disclosure and customer friendliness. This shows that terms and condition by websites are in line with consumer expectations. Smart and comprehensive recommendation and personalisation Pertimm e-Commerce gives mu the tools to adapt and personalise search queries according 1 your obj ture trends and ives and sales strategy, moving from b general visitor preferences to an individual experience. Provide a perfectly ordered list of results according to a customer's preferences, Offer products that are similar and relevant Offer products popular Offer related products or accessories, other buyers Mentify consumer trends and personalise your customers’ shopping experience Your visitors’ browsing behaviour reveals their interest in certain products and highlights connections between these products. Making smart use of these data identifies trends that your marketing team can integrate in its strategy (by giving them greater or lesser prominence). Personalisation a major means of increasing your market share "Over 92% of retailers think that personalisation is an effective means of improving conversion rates" (Alties 2013)Place the visitor at the centre of your sales strategy in real time Contrary to a bricks-and-mortar store, online visitors are unable to view all of the All the more reason to offer items that are produets available in your catalogue at once most likely to appeal to them from the start, Pertimm e-Commerce steers your customers according to their preferences, Their shopping carts and s le and process to put forward personalized product offerings, e navigation, your sales structure, comprise information that our algorithms integrCHAPTER 5 CONCLUSION & SUGGESTION CLUSION* Italso help us to increase the sales for manufacturer by dircet dealing from customers. + We can also conclude advantages and disadvantages in E-Retailing « * We can also learn the advancement of e-retailing in India ‘The internet has created a new avenue for organizations to leverage technology to create new revenue streams, lower the cost of doing business, improve customer satisfaction, and attract new customers, Objectives such as these often compel managers to collect large amounts of customer information to aid in their strategic decision making information will be disclosed processes, Increasingly, consumers are concerned that thei to third parties or used for purposes other than those for which it was collected. Consumer concems have only heightened as media coverage of consumer privacy issues has increased over the past decade, The research was conducted to have a perceptual study of privacy issues in E retailing. On the basis of review of literature questionnaire was developed for the collection of primary data, This research contributes to the emerging body of research on privacy issues to address consumer privacy concerns involved in online transactions. Privacy issues are very important from the point of view of customers as well as marketer, The growth of business to consumer electronic commerce seems to be non stoppable. Yet, online shopping accounts very much less as compared to overall retail revenues, For the future growth electronic marketing, barriers such as security and privacy concerns must be tom down, The best way to get over barriers is to clearly understand how they work and why they existE-retailing need to manage perceptions of privacy regulation. Policy efforts to improve privacy protection should be clearly communicated to the customers, ‘Managers should look carefully at the concept of information transparency and its relevant items, Online marketers should provide sufficient privacy policy statements in a prominent place on the website, Privacy policy should include information about what kind of information the company is collecting in the databases, how lang they keep this information ete. Managers should also consider using multiple strategies to suit various audiences ‘with different levels of privacy concerns. The company could offer assessments of risk in clear and simple terms, provide evidence of past performance in terms of security and predictability, include icators of credentials or competence, and display customer feedback and/or testimonials, It is important to offer easy ways to give control to. users, which inereases the likelihood that the individual will provide the information needed for personalization. ‘It is suggested to improve and develop the legal and other measures to protect the consumers’ privacyBIBLOGRAPHY1. Brown, Muchira (2004). “Invest Concems and Online Purchase Behavior”, Journal of Electronic Commerce ing the Relationship between Internet Privacy Researes, Volume 5, Issue 1, Pt. 62-70 2. Peterson, R.A., Balasubramanian, S, and Bronnenberg, BJ. (1997), “Exploring the Implications of the Intemet for Consumer Marketing", Journal of the Academy of Marketing Science, Vol. 25, No. 4, pt. 329-46. 3. Sheehan, K. B., & Hoy, M. G. (1999), “Flaming, Complaining, Abstaining: How online users respond to privacy concerns.” Journal of Advertising, 28 (Fall), pt. 37-51. 4, Garbarino, E., Johnson, M., 1999. “The different roles of satisfaction, trust and iions”, Journal of Marketing, Vol 63 (2), pt 70-87. ‘commitment in customer rel 3. Cheung, C.M.K., Lee, M.K.O., 2001. “Trust in internet shopping: instrument development and validation through classical and modern approaches”, Journal of Global Information Management, vol 9 (3), pt. 23-46. NEWSPAPERS:-1. The times of India 2, Economic times BOOKS:- 1. Savino, William M., “Protecting Online Privacy”, Markering Management, Vol. 11, No. 249-51, 2002