ACKNOWLEDGMENT

I am sincerely thankful to Prof. (Project Faculty Guide), under whose

guidance I have successfully completed this project and time spent with
him had been a great learning experience. I think him constant
encouragement, warm responses and for filling every gap with valuable
ideas has made this project successful. He made it possible for me to put
all my theoretical knowledge to work out on the topic: “E-Commerce [A
STUDY ON THE IMPACT OF ONLINE RETAILING ON THE
SECTOR A CASE ON AMAZON]”

A mammoth project of this nature calls for intellectual nourishment,

professional help and encouragement from many people. We are highly
thankful to all of them for their help and encouragement. We wish to
acknowledge our great debt to all of them whose ideas and contribution
influenced me to complete the project work.

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 TABLE OF CONTENTS

CHAPTER 1 –
INTRODUCTION
 Introducing the topic
 Company Profile
 Industry Profile
 Therotical background
 Need of the study

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  Literature review
 Objective of the study
 Limitation of the study
 Research Methodology
CHAPTER 2 –
 Literature review
 Brief Introduction of Amazon
CHAPTER 3 –
Research Methodology
CHAPTER 4
Data analysis Interpretantion and presentation

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 CHAPTER 1
INTRODUCTION

INTRODUCING THE TOPIC –

1. E-COMMERCE
Although the terms e-commerce and e-business are often used
interchangeably, there are differences. E-commerce is the buying and
selling of goods and services on the Internet or other computer
network. Any brick and mortar store can become an e-commerce
business by adding a virtual storefront with an online catalogue. In most
cases, e-business refers exclusively to Internet businesses, but it may
also refer to any business that uses Internet technology to improve
productivity and profitability.

2. E-BUSINESS
Business transactions that involve the exchange of money are covered
by the term e-commerce. E-business includes all aspects of running a
business that sells goods and services, including marketing, earning and
retaining customers, procurement, developing business partners and
customer education. In order to be successful, e-commerce and e-
businesses must have quality storefronts that are simple to navigate and
peruse, with accurate and thorough catalogue information. E-business
became an extension of e-commerce to encompass all aspects of
businesses that function online. E-business involves e-commerce, but e-
Commerce does not cover all aspects of e-business.
3. BUSINESS MODELS E-Commerce or Electronics Commerce business
models can generally be categorized in the following categories:-

 Business - to - Business (B2B)

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  Business - to - Consumer (B2C)
 Consumer - to - Consumer (C2C)
 Consumer - to - Business (C2B)
 Business - to - Government (B2G)
 Government - to - Business (G2B)
 Government - to - Citizen (G2C)

Business - to - Business (B2B)

Website following B2B business model sells its product to an intermediate buyer
who then sells the product to the final customer. As an example, a wholesaler
places an order from a company's website and after receiving the consignment,
sells the end product to final customer who comes to buy the product at
wholesaler's retail outlet

Business - to - Consumer(B2C)
Website following B2C business model sells its product directly to a customer. A
customer can view products shown on the website of business organization. The
customer can choose a product and order the same. Website will send a
notification to the business organization via email and organization will dispatch
the product/goods to the customer.

Consumer - to - Consumer (C2C)

Website following C2C business model helps consumer to sell their assets like
residential property, cars, motorcycles etc. or rent a room by publishing their
information on the website. Website may or may not charge the consumer for its
services. Another consumer may opt to buy the product of the first customer by
viewing the post/advertisement on the website.

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Consumer - to - Business (C2B)
In this model, a consumer approaches website showing multiple business
organizations for a particular service. Consumer places an estimate of amount
he/she wants to spend for a particular service. For example, comparison of
interest rates of personal loan/ car loan provided by various banks via website.
Business organization who fulfills the consumer's requirement within specified
budget approaches the customer and provides its services.

Business - to - Government (B2G)

B2G model is a variant of B2B model. Such websites are used by government to
trade and exchange information with various business organizations. Such
websites are accredited by the government and provide a medium to businesses
to submit application forms to the government. Government uses B2G model
website to approach business organizations. Such websites support auctions,
tenders and application submission functionalities.

Government - to - Citizen (G2C)

Government uses G2C model website to approach citizen in general. Such
websites support auctions of vehicles, machinery or any other material. Such
website also provides services like registration for birth, marriage or death
certificates. Main objectives of G2C website are to reduce average time for
fulfilling people requests for various government services.

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Company Profile of Amazon – The world’s largest online
retailer

You must have been buying a lot of products from Amazon. Who is not lured
by so many exciting offers presented by Amazon? All of us are growing
fanatic for online shopping because of its cool and exciting benefits.

An online platform which is becoming successful day by day,  towards which

we are growing more and more addicted and which we all are using so often,
we should have a craving to know about its company profile.

So let’s learn some facts about Amazon India and its parent
company Amazon.
Introduction
Amazon India launched its operations in June 2013. The company soon
launched its website Amazon.in which is offering customers a wide variety of
choices in apparel, groceries, household items, books, movies, television
shows and almost everything that a person requires.

On the very first day of its operations, the company received more than
10,000 orders. Amazon India is a subsidiary of US-based e-commerce giant
Amazon Inc.

The parent company Amazon was founded by Jeff Bezos in 1994. The
company wanted to explore other countries for sales increment and the
growth of the company.
So it did not limit its operations to the United States, and soon launched its
operations in other countries. Amazon looked upon China as a lucrative

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option because of its huge market, well-developed infrastructure, and internet
connectivity.

Hence, earlier Amazon expanded its operations to China. However, it did not
prove to be that much fruitful that it expected because of the stiff competition
by local e-commerce companies such as Alibaba.

So it further expanded its operations and looked for some viable options. The
Amazon analyzed India as a country having great potentials and it was sure
that India will turn out to be fruitful for its growth. Hence, Amazon came to
India and launched its operations here in 2013.

In a very short span of time, Amazon India has acquired an eminent position
in the Indian e-commerce space and has become a major shopping giant for
millions of customers. Amazon India is currently offering millions of
products on its platform and has millions of registered users.

It has an endless list of products under broad categories and sub-categories

such as mobile phones, computers, men’s and women’s fashion, books,
sports & fitness, electrical & electronic items, movies, music, cars,
motorbike, baby products, toys, grocery items, and so on.

Amazon India did not limit its expansion and operations here, it has started
operating a Global store which allows the customers to buy directly from
sellers in the United States. Recently the company launched Amazon prime
in India which provides various services to its customers like streaming
video, music, e-books etc.

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It currently delivers to most of the serviceable PIN codes in India. It has
connected millions of sellers and buyers in a network, making the shopping a
much easier task for people. It caters to more than 20,000 Indian sellers and
has 41 fulfillment centers across 13 states in India.

In India, the popular advertisement of Amazon claiming it to be “APNI

DUKAAN” is turning out to be successful in grabbing millions of customers.
It has become a reliable and convenient source of buying and selling for
people.

Background History of Amazon:

The parent company, Amazon was founded by an American technology
entrepreneur Jeff Bezos in 1994 in the United States. Thereafter, it started its
operations in various countries in the world such as China, India, Japan,
France, Singapore, Italy, Germany, UK, Spain, Netherlands, Canada, Mexico,
Brazil and Australia.

Amazon.in was launched in India in 2013. Amit Agarwal leads and handles
Amazon India; he is currently the Managing Director of the company,
Amazon India.

Funding in Amazon India:

Amazon founder Jeff Bezos started the company by making a total
investment of $5 billion in Amazon India. It may take several more years to
generate profits for Amazon India, but the founder, Jeff Bezos is quite bullish
on India. He is ready to make more investments, as may be needed for the
operations of Amazon India.

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Acquisitions made by Amazon:
The Parent company Amazon has acquired scores of companies across the
globe, but in India, it has adopted a different strategy for growth. In India,
Amazon has acquired a payments company named Emvantage Payments Pvt.
Ltd. in 2016.

Emvantage is an Indian company that offered services similar to PayPal and

has a platform that enabled online merchants to accept credit and debit cards.
Recently,  Amazon India has been planning and trying to acquire the
BigBasket, which is India’s biggest online food and grocery store, offering
more than 18,000 products.

Competition from home-grown e-commerce companies:

Amazon India has been facing cut-throat competition from various local e-
commerce companies such as Flipkart and Snapdeal. Still, the primary
competition for the Indian e-commerce market is currently between Amazon
India and flipkart only

The Indian e-commerce market is expected to touch $50 billion in sales by

2020, so both Amazon India and  are aggressively trying to grab a larger
market share.
About the Founder of Amazon (Jeff Bezos):
The parent company Amazon, Inc. was founded by Jeff Bezos on July 05,
1994. Jeff Bezos is an entrepreneur, investor, and philanthropist. He is the
founder, chairman and Chief Executive Officer of Amazon.

He acquired his education (Bachelor of Science degrees in electrical

engineering and computer science) from Princetown University. Prior to

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launching Amazon, he had worked at Wall Street, as a computer science
profession. He is majorly known for AMAZON-The world’s largest online
retailer and BLUE ORIGIN.

INDUSTRY PROFILE

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Amazon is a global technology and retail giant that has revolutionized the way people
shop, consume media, and conduct business. Founded by Jeff Bezos in 1994 as an
online bookstore, Amazon has since expanded its operations to encompass a wide
range of products and services, including e-commerce, cloud computing, digital
streaming, artificial intelligence, and more. Over the years, Amazon has grown into one
of the world's most valuable and influential companies, with a dominant position in
multiple industries and a significant impact on global commerce and consumer
behavior.

E-commerce Industry:

One of Amazon's key industries is e-commerce, which refers to the buying and selling of
goods and services over the internet. Amazon is widely regarded as one of the pioneers
of e-commerce and has played a significant role in shaping the industry as it exists
today. The company's e-commerce platform allows customers to browse and purchase
a vast range of products, including electronics, clothing, home goods, books, and more.
Amazon has developed a highly efficient and customer-centric e-commerce model,
leveraging advanced technologies and data analytics to offer personalized
recommendations, fast shipping, and seamless customer experiences.

Amazon's e-commerce business has experienced tremendous growth over the years,
driven by factors such as increased internet penetration, changing consumer
preferences, and the convenience and accessibility of online shopping. The company
has continually expanded its product offerings and global footprint, acquiring or
partnering with various e-commerce companies to further strengthen its position in the
market. Amazon's e-commerce dominance has had a profound impact on traditional
brick-and-mortar retail, leading to the disruption of traditional retail models and changing
consumer shopping habits.

Cloud Computing Industry:

Another significant industry where Amazon has a dominant presence is cloud

computing, which involves the delivery of computing resources, including storage,
processing power, and software applications, over the internet. Amazon Web Services
(AWS), Amazon's cloud computing division, is one of the largest and most widely used
cloud platforms in the world. AWS provides a broad range of cloud services, including
computing power, storage, networking, machine learning, analytics, and more, to
businesses, governments, and individuals.

AWS has played a pivotal role in shaping the cloud computing industry, driving the
adoption of cloud services and transforming the way businesses and individuals
manage their computing needs. AWS has a vast global infrastructure, with data centers
located in multiple regions around the world, enabling customers to access cloud
resources with low latency and high performance. The platform has become a critical
component of the digital economy, powering a wide range of applications and services,

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from startups to established enterprises, across various industries such as healthcare,
finance, media, gaming, and more.

Digital Media and Entertainment Industry:

Amazon has also made significant inroads into the digital media and entertainment
industry, which encompasses various forms of digital content, including movies, TV
shows, music, books, and more. Amazon Prime Video, the company's streaming video
platform, competes with other major players in the industry such as Netflix, Hulu, and
Disney+, offering a vast library of original and licensed content for on-demand
streaming. Amazon also operates Amazon Music, a music streaming service, and owns
Audible, a leading provider of audiobooks.

Amazon's entry into the digital media and entertainment industry has disrupted
traditional media distribution channels and created new opportunities for content
creators and consumers. The company has invested heavily in producing original
content, including TV shows and movies, to attract and retain customers on its
platforms. Amazon's digital media and entertainment offerings are closely integrated
with its e-commerce business, with services such as Prime Video and Prime Music
being bundled with Amazon Prime, the company's subscription-based loyalty program.
This integration has helped Amazon build customer loyalty and drive engagement
across its various platforms.

Artificial Intelligence (AI) and Machine Learning (ML) Industry:

As a technology company, Amazon has been at the forefront of

NEED OF THE STUDY (E-COMMERCE)

1.     Exploitation of New Business

Broadly speaking, electronic commerce emphasizes the generation and

exploitation of new .business opportunities and to use popular phrases: “generate
business value” or “do more with less”.

2.     Enabling the Customers

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Electronic Commerce is enabling the customer to have an increasing say in what
products are made, how products are made and how services are delivered
(movement from a slow order fulfillment process with little understanding of
what is taking place inside the firm, to a faster and rt1ore open process with
customers having greater control.

3.     Improvement of Business Transaction

Electronic Commerce endeavors to improve the execution of business transaction

over various networks.

4.     Effective Performance

It leads to more effective performance i.e. better quality, greater customer

satisfaction and better corporate decision making.

5.     Greater Economic Efficiency

We may achieve greater economic efficiency (lower cost) and more rapid
exchange (high speed, accelerated, or real-time interaction) with the help of
electronic commerce.

6.     Execution of Information

It enables the execution of information-laden transactions between two or more

parties using inter connected networks. These networks can be a combination of
‘plain old telephone system’ (POTS), Cable TV, leased lines and wireless.
Information based transactions are creating new ways of doing business and even
new types of business.

7.     Incorporating Transaction

Electronic Commerce also inco11'orates transaction management, which

organizes, routes, processes and tracks transactions. It also includes consumers
making electronic payments and funds transfers.

8.     Increasing of Revenue

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Firm use technology to either lower operating costs or increase revenue.
Electronic Commerce has the Potential to increase revenue by creating new
markets for old products, creating new information-based products, and
establishing new service delivery channels to better serve and interact with
customers. The transaction management aspect of electronic commerce can also
enable firms to reduce operating costs by enabling better coordination in the
sales, production and distribution processes and to consolidate operations arid
reduce overhead.

9.     Reduction of Friction

Electronic Commerce research and its associated implementations is to reduce

the “friction” in on line transactions frictions is often described in economics as
transaction cost. It can arise from inefficient market structures and inefficient
combinations of the technological activities required to make a transaction.
Ultimately, the reduction of friction in online commerce will enable smoother
transaction between buyers, intermediaries and sellers.

10.   Facilitating of Network Form

Electronic Commerce is also impacting business .to business interactions. It

facilitates the network form of organization where small flexible firms rely on
other partner, companies for component supplies and product distribution to
meet changing customer demand more effectively. Hence, an end to end
relationship management solution is a desirable goal that is needed to manage
the chain of networks linking customers, workers, suppliers, distributors and even
competitors. The management of "online transactions" in the supply chain
assumes a central roll.

11.   Facilitating for Organizational Model

It is facilitating an organizational model that is fundamentally different from the

past. It is a control organization to the information based organization. The
emerging forms of techno-organizational structure involve changes in managerial
responsibilities, communication and information flows and work group structures.

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Chapter 2 Literature Review

LITERATURE REVIEW

Several researchers have carried out studies in their effort to examine consumers
‘online buying behavior. For example, Bellman et al (1999) investigated various
predictors for whether an individual will purchase online. These authors
concluded that demographic variables, such as income, education and age, have a
modest impact on the decision of whether to buy online, whereas the most
important determinant of online shopping was previous behavior, such as earlier
online purchases. This is consistent with Forrester Research which proved that
demographic factors do not have such a high influence on technology as the
consumers ‘attitudes do (Modal, 2000). Stein field and Whitten (1999) suggested
that the combination of the Internet, plus physical presence, provides more
opportunities to capture business than the online-only presence, because they
can provide better pre-purchase and post-sales services to lower consumer
transaction cost and build trust in online stores. However, it is worth mentioning
that beliefs and attitudes that are found in the stage prior to the adoption of e-
commerce are different to those in the ―post-adoption‖ stage (Geffen et al,
2003; Venkatesh and Brown, 2001; Yu et al, 2005.

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The advent of e-commerce has revolutionized the way people buy and sell goods
and services. Among the many platforms available, Amazon has emerged as one
of the leading online retailers, offering a wide range of products and services to its
customers. The company's success can be attributed to its innovative approach to
e-retailing, which has set the standard for online shopping. This literature review
aims to analyze the key factors that have contributed to Amazon's success in e-
retailing, the challenges it has faced, and its future prospects.

Overview of E-Retailing

E-retailing is the process of buying and selling products and services online. It has
gained popularity in recent years, driven by the growth of the internet and
advancements in technology. E-retailing has many advantages, including
convenience, accessibility, and lower costs for both retailers and customers.
Online retailers can reach a wider audience, and customers can shop from the
comfort of their own homes, at any time of day. Amazon is one of the largest e-
retailers in the world, and its success can be attributed to several key factors.

Factors Contributing to Amazon's Success in E-Retailing

1. Customer Focus

Amazon's customer-centric approach is one of the key factors that have

contributed to its success. The company has a deep understanding of its
customers' needs and preferences and uses this information to provide
personalized shopping experiences. Amazon's recommendation engine uses data
to suggest products to customers based on their browsing history and previous
purchases, making it easier for customers to find what they are looking for. The
company also offers a wide range of products and services, from books to
electronics, making it a one-stop-shop for customers.

1. Technology

Amazon has invested heavily in technology, which has enabled it to offer a

seamless shopping experience to its customers. The company's website is user-
friendly and easy to navigate, with a simple checkout process. Amazon has also
developed mobile apps for iOS and Android devices, making it easy for customers
to shop on-the-go. The company's use of big data analytics and machine learning

17
algorithms has also allowed it to optimize its operations, reduce costs, and
improve customer satisfaction.

1. Logistics and Fulfillment

Amazon's logistics and fulfillment capabilities are among the best in the industry.
The company has developed a sophisticated network of warehouses and
distribution centers, allowing it to offer fast and reliable shipping to customers.
Amazon's Prime program, which offers free two-day shipping to members, has
been a game-changer, driving customer loyalty and repeat purchases. The
company's use of robotics and automation in its fulfillment centers has also
enabled it to reduce costs and impro. In addition, Amazon's use of customer data
has come under scrutiny, with some lawmakers calling for

Chapter 3 Research Methodology

Research Objectives : As one of the world's largest e-commerce companies,

Amazon has transformed the way consumers shop for goods and services. The
company's success is due in large part to its innovative e-retailing practices, which
have enabled it to offer an unparalleled customer experience. This paper aims to
explore the research objectives of e-retailing on Amazon, including the history of
the company, the evolution of e-retailing, and the impact of e-retailing on the
retail industry as a whole.

History of Amazon

Amazon was founded in 1994 by Jeff Bezos in Seattle, Washington, as an online

bookstore. The company quickly expanded to include a wide range of products,
from electronics to clothing, and became one of the largest online retailers in the
world. In addition to its retail business, Amazon has also developed a number of
other services, including cloud computing, streaming video and music, and AI-
powered voice assistants.

Evolution of e-retailing

E-retailing has come a long way since the early days of Amazon. In the early days
of e-commerce, consumers were hesitant to buy goods and services online, as
they were unsure about the safety of their personal and financial information.

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However, as technology has advanced and online security measures have become
more sophisticated, consumers have become increasingly comfortable with
shopping online.

Today, e-retailing has become an integral part of the retail industry. According to
a report by eMarketer, e-commerce sales are expected to reach $4.9 trillion by
2021. Amazon has played a significant role in this growth, with the company
accounting for nearly 40% of all e-commerce sales in the United States.

Impact of e-retailing on the retail industry

The growth of e-retailing has had a significant impact on the retail industry. In
addition to providing consumers with a convenient and efficient way to shop, e-
retailing has also forced traditional brick-and-mortar retailers to adapt to a
changing marketplace. Many retailers have responded to the rise of e-commerce
by developing their own online stores or partnering with online marketplaces like
Amazon.

Despite the challenges posed by e-retailing, traditional retailers still have a

number of advantages over their online competitors. For example, brick-and-
mortar retailers can provide consumers with a tactile shopping experience that
cannot be replicated online. Additionally, traditional retailers have the ability to
offer personalized customer service and build strong relationships with their
customers.

Research objectives of e-retailing on Amazon

There are a number of research objectives that can be explored when studying e-
retailing on Amazon. These include:

1. Understanding consumer behavior: Amazon's success is due in large part to

its ability to understand consumer behavior and tailor its offerings to meet
their needs. Researchers can study consumer behavior on Amazon to
identify trends and patterns that can be used to develop more effective e-
retailing strategies.
2. Improving customer experience: Amazon has set a high bar for customer
experience, offering fast shipping, easy returns, and personalized

19
 recommendations. Researchers can study Amazon's customer experience
to identify best practices that can be applied to other e-retailers.
3. Developing new technologies: Amazon has been at the forefront of
developing new technologies to improve the e-retailing experience.
Researchers can study Amazon's use of AI, machine learning, and other
technologies to identify ways that these technologies can be applied to
other industries.
4. Analyzing the impact on the retail industry: As one of the largest e-
commerce companies in the world, Amazon has had a significant impact on
the retail industry. Researchers can study this impact to identify ways that
traditional retailers can adapt to a changing marketplace.
5. Exploring ethical considerations: As e-retailing continues to grow, there are
a number of ethical considerations that must be addressed. Researchers
can explore the ethical implications of e-retailing on Amazon, including
issues related to privacy, data security, and

Sampling Unit

Amazon is one of the world's largest online marketplaces, and it collects a vast
amount of data from various sources, including customer transactions, browsing
history, search queries, user reviews, and ratings. This data provides valuable
insights into customer behavior, preferences, and trends, which Amazon uses to
improve its services, target its marketing efforts, and make data-driven decisions.
In this article, we will explore the different types of data that Amazon collects,
how it collects this data, and how it uses this data to enhance its business
operations.

Types of Data Collected by Amazon

1. Customer Data: Amazon collects a vast amount of customer data, including

name, address, email address, phone number, payment information, and
purchase history. It uses this data to provide personalized
recommendations, product suggestions, and targeted advertisements.
2. Browsing Data: Amazon tracks customers' browsing behavior, including the
pages they visit, the products they view, and the time they spend on each
page. It uses this data to improve its website's user experience, suggest
relevant products, and make data-driven decisions about product
placement and pricing.

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 3. Search Data: Amazon tracks customers' search queries, including the
keywords they use, the products they search for, and the filters they apply.
It uses this data to improve its search algorithms, suggest relevant
products, and make data-driven decisions about product placement and
pricing.
4. Review and Rating Data: Amazon collects customer reviews and ratings for
products sold on its platform. It uses this data to improve its product
offerings, identify customer pain points, and provide better customer
support.
5. Seller Data: Amazon collects data on sellers' performance, including sales
volume, customer feedback, and return rates. It uses this data to improve
its seller support services, identify top-performing sellers, and prevent
fraudulent activities.
6. Social Media Data: Amazon monitors social media platforms to track brand
mentions, customer feedback, and trends. It uses this data to improve its
customer support services, respond to customer queries and complaints,
and identify new product opportunities.

Data Collection Methods Used by Amazon

1. Cookies: Amazon uses cookies to track customer behavior on its website.

Cookies are small text files that are stored on customers' devices and used
to remember customer preferences and track their activity.
2. Tracking Pixels: Amazon uses tracking pixels to collect data on customer
behavior on its website. Tracking pixels are small images embedded in web
pages that track when a customer opens a page or clicks on a link.
3. Third-Party Data Sources: Amazon collects data from third-party sources,
including data brokers, social media platforms, and other websites. This
data is used to supplement its own customer data and provide more
comprehensive customer insights.
4. Customer Surveys: Amazon conducts customer surveys to collect feedback
on its services, products, and user experience. This data is used to improve
its services, identify customer pain points, and make data-driven decisions.
5. Product Reviews: Amazon collects customer reviews and ratings for
products sold on its platform. This data is used to improve its product
offerings, identify customer pain points, and provide better customer
support.

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 6. Customer Feedback: Amazon collects customer feedback through various
channels, including email, chat, and phone support. This data is used to
improve its customer support services, respond to customer queries and
complaints, and identify new product opportunities.

Data Usage by Amazon

1. Personalized Recommendations: Amazon uses customer data to provide

personalized product recommendations based on customer behavior,
purchase history, and browsing history.
2. Targeted Advertising: Amazon uses customer data to deliver targeted
advertisements based on customer behavior, purchase history, and
browsing history.
3. Product Development: Amazon uses customer feedback, reviews, and
ratings to identify areas for product improvement and develop new
products that meet customer needs.
4. Pricing Optimization: Amazon uses

Target audience

Amazon is a global e-commerce giant that has a broad target audience. The
company's primary goal is to offer a wide variety of products and services to
meet the needs of as many customers as possible. Amazon has built its
business model around offering low prices, convenient shopping experiences,
and a wide selection of products. With its extensive range of offerings and
competitive pricing, Amazon has become one of the most popular online
shopping destinations for a diverse range of customers.

The primary target audience for Amazon is online shoppers, which includes
individuals and households of all ages, income levels, and backgrounds. This
audience is attracted to Amazon's vast selection of products, including books,

22
electronics, clothing, home goods, and groceries. Amazon's competitive pricing
and convenience, such as its two-day shipping and same-day delivery options,
also appeal to this group. Amazon also caters to tech-savvy shoppers, who
appreciate the company's user-friendly website and mobile app, as well as its
artificial intelligence-powered recommendation system.

In recent years, Amazon has expanded its target audience to include small
business owners and entrepreneurs. The company's Marketplace platform
allows third-party sellers to list their products on Amazon's website, providing
them with access to a massive customer base. Amazon has also launched a
suite of tools and services to help small businesses sell on its platform,
including Amazon Advertising, Fulfillment by Amazon, and Amazon Web
Services. These services help small business owners leverage Amazon's
resources to grow their businesses and reach more customers.

Another target audience for Amazon is media consumers, including those who
are interested in movies, TV shows, music, and books. Amazon's Prime
membership program, which includes access to its streaming video and music
services, appeals to this group. Amazon also offers a range of e-books and
audiobooks through its Kindle e-reader and Audible platforms, respectively.
These offerings have helped Amazon establish itself as a major player in the
media and entertainment industry.

Lastly, Amazon also targets parents and families with young children. The
company's Baby Registry and Amazon Family programs offer discounts and
special deals on baby products, including diapers, formula, and baby gear.
These programs cater to parents who are looking for affordable, high-quality
baby products and want to save money on their purchases.

In conclusion, Amazon's target audience is vast and diverse, ranging from

online shoppers to small business owners, media consumers, and parents. The
company has built its business around offering low prices, a wide selection of
products, and convenient shopping experiences. By catering to a broad range

23
of customers, Amazon has become one of the world's most successful e-
commerce companies

5.

6. Amazon is one of the world's largest online retailers, providing customers

with a wide range of products and services at competitive prices. The
company has a diverse target audience, which includes online shoppers,
small business owners, media consumers, parents, and more. In this article,
we will explore Amazon's target audience in greater detail.

Online Shoppers
The primary target audience for Amazon is online shoppers, which includes
individuals and households of all ages, income levels, and backgrounds. This
audience is attracted to Amazon's vast selection of products, including
books, electronics, clothing, home goods, and groceries. Amazon's
competitive pricing and convenience, such as its two-day shipping and
same-day delivery options, also appeal to this group.

In addition to its wide range of products and competitive pricing, Amazon

has established a reputation for providing excellent customer service. The
company's website and mobile app are user-friendly and easy to navigate,
and its customer support team is available around the clock to answer
questions and resolve issues. These factors have helped Amazon build a
loyal customer base, which continues to grow year after year.

Small Business Owners

In recent years, Amazon has expanded its target audience to include small
business owners and entrepreneurs. The company's Marketplace platform
allows third-party sellers to list their products on Amazon's website,
providing them with access to a massive customer base. Amazon has also
launched a suite of tools and services to help small businesses sell on its
platform, including Amazon Advertising, Fulfillment by Amazon, and
Amazon Web Services. These services help small business owners leverage
Amazon's resources to grow their businesses and reach more customers.

Small business owners who sell on Amazon appreciate the platform's ease

24
of use and the ability to reach a large audience quickly. They also benefit
from Amazon's reputation for providing excellent customer service, which
helps build trust and credibility with customers. Additionally, Amazon's
tools and services help small business owners streamline their operations,
reduce costs, and improve efficiency, making it easier for them to grow
their businesses over time.

Media Consumers
Another target audience for Amazon is media consumers, including those
who are interested in movies, TV shows, music, and books. Amazon's Prime
membership program, which includes access to its streaming video and
music services, appeals to this group. Amazon also offers a range of e-books
and audiobooks through its Kindle e-reader and Audible platforms,
respectively. These offerings have helped Amazon establish itself as a major
player in the media and entertainment industry.

Media consumers appreciate the convenience of Amazon's digital media

services, which allow them to access a wide range of content from a single
platform. They also appreciate the company's competitive pricing and
frequent promotions, which make it easier for them to save money on their
favorite media products. Additionally, Amazon's recommendation engine,
which uses artificial intelligence to suggest new content based on a user's
browsing and purchase history, helps media consumers discover new
products they might enjoy.

Parents
Amazon also targets parents and families with young children. The
company's Baby Registry and Amazon Family programs offer discounts and
special deals on baby products, including diapers, formula, and baby gear.
These programs cater to parents who are looking for affordable, high-
quality baby products and want to save money on their purchases.

Parents appreciate Amazon's wide selection of baby products, which

includes both well-known brands and niche products that might be hard to
find elsewhere. They also appreciate the convenience of Amazon's one-click
ordering and fast shipping options, which make it easy to get the products
they need quickly. Additionally, Amazon's customer reviews and ratings

25
 system provides valuable feedback from other parents, helping new
parents make informed purchasing decisions.

Tech-Savvy Shoppers
Finally, Amazon targets tech-savvy shoppers who appreciate the company's
use of advanced technology to enhance the shopping experience. Amazon's

Scope and limitation

Unveiled just weeks after Amazon warned investors for the first time in its annual
report about the risk of fake goods to its profits, platform, and reputation 1,
Project Zero is the ecommerce giant’s latest anti-counterfeiting initiative. It aims
to supplement the platform’s existing Brand Registry and Brand Transparency
programs and is available by invitation-only to companies that have already
enrolled in Brand Registry. Recently, we broke down the initiative and listed how
our online brand protection technology, supplements it to help ensure
infringements are removed in quick-time.

However, this week we look at how, despite its workable state, Project Zero lays
bare some of the persistent flaws in Amazon’s approach to infringement on its
platforms.

Limitations

The initiative combines three tools: automated protections, a self-service

counterfeit removal tool, and product serialization codes as an attempt to drive
down the number of counterfeit goods available on its marketplace.

Previous efforts by Amazon to stop the flood of fake goods, such as the ‘Brand
Registry’2 program launched in 2017, have proven to be ineffective for many
brands, with some going as far to say that they merely pay lip service to the
problem. Although Project Zero in theory is a good sign of progress, there are
constraints to Amazon’s approach and questions remain surrounding where
accountability should lie. Below are the six key limitations that we have identified
to the initiative in its current form.

26
Brands retain responsibility for removing counterfeits

Whilst self-service counterfeit removal is seen as a welcome change, the platform

may be absolving itself of responsibility for the majority of counterfeit
enforcement. Brands are expected to actively monitor the platform for
infringements with the enforcement burden now on them. In theory, Amazon
could now take a more hands-off approach and simply point brands to the anti-
counterfeiting tools they can use.

Self-service removal data also feeds into the automated protection tool and will
likely require significant enforcement input from the brand to ensure Amazon
gets takedowns right.

Brands without trademarks cannot register

Enrollment to Project Zero is invitation-only to brands currently signed-up to

Amazon’s Brand Registry. This limits the scope of the program, as brands without
trademarks cannot register for Brand Registry. Those that rely on design rights or
patents when enforcing against infringements are shut-out of Amazon Brand
Registry.

Only targets counterfeiting

Project Zero is an anti-counterfeiting program first and foremost rather than

a brand protection solution. It is not designed to assist with the full spectrum of
intellectual property issues on Amazon, including trademark misuse in
competitors’ listings. The enforcement tool is not to be used by brand owners to
manage other third-party seller activity, even if that activity is unlawful.

Flawed ASIN system

Project Zero is focused on helping brands manage counterfeit sellers who sell
under brand owner Amazon Standard Identification Numbers (ASINs) and share
the same product listing page. The tools are not helpful in detecting counterfeit
infringers who set up separate ASINs that seek to “private label” counterfeit
products without explicit reference to your trademarks.

27
Lack of prioritization

Amazon’s tools lack prioritization to determine which sellers are the most prolific
or possess the most stock, offer no way of linking connected sellers to determine
if they are operating together, and provide no means of “whitelisting” your own
legitimate products under the ASIN. The process is time consuming because it is
very hard to filter out what you want to enforce upon, so everything has to be
reviewed in turn.

Brands pay for serialization

For smaller brands with fewer products, particularly products that are new to
market and with high individual unit prices, serialization could be beneficial. But
for larger brands that have historically sold through multiple outlets or those that
offer lower-priced products, the advantages remain unclear. On top of the
US$0.01 – $0.05 that Amazon charges per unit, brands will also have to alter their
manufacturing processes, bearing a further cost.

Areas of improvement

Depending on the success of Project Zero, there are other initiatives Amazon
could investigate, such as seller transparency and accountability. It is currently
too easy for counterfeiters to create new seller accounts and hijack top-selling
products; bad actors need only an email, phone number, address, credit card, ID,
business name and bank account3.

In contrast, platforms such as Alibaba force sellers to provide much more

information and make that information available to consumers so that they can
determine whether the seller ought to be trusted. However, even detailed seller
information is only part of the jigsaw that allows effective enforcement and
lasting impact.

Increasing transparency about the identity of sellers and forcing them to provide
additional information about their product offerings would protect the consumer
and allow brand owners to more effectively manage infringement on Amazon.

Combine with an intelligence-based solution

28
The Project Zero functionality is best used as part of a comprehensive brand
protection strategy that targets multiple platforms and regions to take down the
largest and highest priority criminal enterprises. Without wider insight and
further collaboration, the Amazon tools will always have their limitations.

Automated, AI-enhanced brand protection technology ensures that brands can

prioritize the top offenders. By automating the enforcement process, brand
owners can save time and achieve lasting impact against infringers. Using
Amazon’s tools in combination with smart automation is the best way to make a
real difference.

If you would like to find out more about how Corsearch’s technology integrates
with Amazon’s anti-counterfeiting tools and allows

OBJECTIVES
Amazon is one of the largest multinational technology companies that specializes
in e-commerce, cloud computing, digital streaming, and artificial intelligence.
Founded by Jeff Bezos in 1994, the company started as an online bookstore and

29
has since expanded its business to offer a wide range of products and services to
customers worldwide. In this essay, we will discuss the objectives of Amazon, its
mission and vision statements, and how it has managed to achieve its goals over
the years.

Mission Statement
Amazon’s mission statement is “to be Earth’s most customer-centric company,
where customers can find and discover anything they might want to buy online,
and endeavors to offer its customers the lowest possible prices.” This statement
reflects Amazon’s commitment to providing exceptional customer service and
delivering a wide range of products at affordable prices.

Vision Statement
Amazon’s vision statement is “to be the most customer-centric company on earth;
to build a place where people can come to find and discover anything they might
want to buy online.” This statement reflects Amazon’s aspiration to provide a
seamless shopping experience to customers by offering a vast selection of products
and services.

Objectives of Amazon
Amazon has a wide range of objectives that are focused on customer satisfaction,
innovation, and growth. Some of the key objectives of Amazon are:

Customer Satisfaction
Amazon’s primary objective is to ensure that its customers are satisfied with its
products and services. The company achieves this by providing excellent customer
service, offering a wide range of products, and delivering them quickly and
efficiently. Amazon has implemented various strategies to improve customer
satisfaction, such as offering free shipping, easy returns, and customer reviews.

Innovation
Amazon is committed to innovation, and this is evident in the many new products
and services that the company has launched over the years. The company’s
objective is to continually develop new and innovative ways to meet the changing
needs of its customers. Some of the innovations that Amazon has introduced
include the Amazon Echo, Alexa, and Amazon Web Services.

Growth
Amazon’s objective is to continue growing its business by expanding its product
offerings, entering new markets, and improving its operations. The company has

30
been successful in expanding its business by acquiring other companies and
launching new services, such as Amazon Prime, Amazon Fresh, and Amazon
Music.

Cost Reduction
Another objective of Amazon is to reduce its costs and improve its efficiency. The
company achieves this by leveraging its economies of scale, investing in
technology, and streamlining its operations. Amazon has implemented various
cost-cutting strategies, such as automation, to reduce its operational costs.

Sustainability
Amazon is committed to sustainability and has set ambitious goals to reduce its
environmental impact. The company’s objective is to achieve net-zero carbon
emissions by 2040 and to use 100% renewable energy by 2025. Amazon has
implemented various sustainability initiatives, such as investing in renewable
energy and reducing packaging waste.

Strategies of Amazon
Amazon has implemented various strategies to achieve its objectives and maintain
its position as a market leader in the e-commerce industry. Some of the key
strategies of Amazon are:

Customer-Centric Approach
Amazon’s customer-centric approach is at the heart of its business strategy. The
company is committed to providing exceptional customer service, delivering a
wide range of products, and ensuring fast and efficient delivery. Amazon has
implemented various strategies to improve its customer service, such as offering
free shipping and easy returns.

Continuous Innovation
Amazon is committed to continuous innovation and has a culture of
experimentation. The company encourages its employees to come up with new and
innovative ideas, and it invests heavily in research and development. Amazon has
introduced many new products and services over the years, such as the Amazon
Echo and Alexa, which have helped the company to maintain its position as a
market leader.

Technology
Amazon has invested heavily in technology and uses 

31
HYPOTHESIS
Amazon's business model is based on offering customers a wide range of products
at competitive prices, backed by fast and reliable delivery options. The company
has achieved this through a combination of efficient logistics operations, strategic
partnerships with suppliers, and the development of its own proprietary
technologies, such as its Amazon Web Services (AWS) cloud computing platform.

One of the key advantages of Amazon's business model is its ability to leverage
economies of scale to drive down costs and offer products at lower prices than its
competitors. This has been achieved through a combination of investing heavily in
automation and technology, and negotiating favorable deals with suppliers and
manufacturers.

Another key aspect of Amazon's business model is its customer-centric approach.

The company has invested heavily in developing its own customer service
capabilities, and has also established a number of self-service tools and resources
to help customers resolve issues and find answers to their questions. This has
helped to create a loyal customer base that trusts Amazon and is more likely to
return to the site to make additional purchases.

Key Drivers of Success:

32
There are several key drivers of Amazon's success, including its focus on customer
satisfaction, its use of technology and automation to drive efficiency, and its ability
to rapidly innovate and adapt to changing market conditions.

One of the key drivers of Amazon's success is its focus on customer satisfaction.
The company has invested heavily in developing a customer-centric culture, and
has implemented a number of programs and initiatives to ensure that customers are
satisfied with their experience on the site. This has included everything from
offering free shipping and returns, to providing personalized recommendations and
fast delivery options.

Another key driver of Amazon's success is its use of technology and automation to
drive efficiency. The company has invested heavily in developing its own
proprietary technologies, such as its AWS cloud computing platform and its
Fulfillment by Amazon (FBA) program, which allows third-party sellers to use
Amazon's logistics network to store, pack, and ship their products. This has helped
to drive down costs and improve efficiency, while also providing a competitive
advantage over other e-commerce companies.

Finally, Amazon's ability to rapidly innovate and adapt to changing market

conditions has also been a key driver of its success. The company has a culture of
experimentation and is constantly testing new ideas and initiatives to improve the
customer experience and drive growth. This has included everything from the
development of new product categories, such as its Amazon Echo smart speaker, to
the launch of new delivery options, such as its Prime Now service.

Challenges:

Despite its many successes, Amazon also faces a number of challenges, including
increased competition, regulatory scrutiny, and the need to balance growth with
profitability.

One of the biggest challenges facing Amazon is increased competition from other
e-commerce companies, such as Walmart and Alibaba. These companies have
invested heavily in their own logistics networks and are increasingly offering fast
and reliable delivery options to customers. This has put pressure on Amazon to
continue innovating and improving its own services in order to maintain its
position as the market leader.

Another challenge facing Amazon is increased regulatory scrutiny. The company

33
has faced a number of antitrust investigations and legal challenges in recent years,
as regulators and lawmakers have become increasingly concerned about its
dominant position in the e-commerce industry. This has led to increased scrutiny of
the company's business practices, and could potentially result in regulatory action
that could impact its ability to operate in certain markets. 

Data Analysis Interpretention And Presentataion

Amazon is one of the world's largest online marketplaces, and it collects a vast
amount of data from various sources, including customer transactions, browsing
history, search queries, user reviews, and ratings. This data provides valuable
insights into customer behavior, preferences, and trends, which Amazon uses to
improve its services, target its marketing efforts, and make data-driven decisions.
In this article, we will explore the different types of data that Amazon collects,
how it collects this data, and how it uses this data to enhance its business
operations.

Types of Data Collected by Amazon

7. Customer Data: Amazon collects a vast amount of customer data, including

name, address, email address, phone number, payment information, and
purchase history. It uses this data to provide personalized recommendations,
product suggestions, and targeted advertisements.
8. Browsing Data: Amazon tracks customers' browsing behavior, including the
pages they visit, the products they view, and the time they spend on each
page. It uses this data to improve its website's user experience, suggest

34
 relevant products, and make data-driven decisions about product placement
and pricing.
9. Search Data: Amazon tracks customers' search queries, including the
keywords they use, the products they search for, and the filters they apply. It
uses this data to improve its search algorithms, suggest relevant products,
and make data-driven decisions about product placement and pricing.
10.Review and Rating Data: Amazon collects customer reviews and ratings for
products sold on its platform. It uses this data to improve its product
offerings, identify customer pain points, and provide better customer
support.
11.Seller Data: Amazon collects data on sellers' performance, including sales
volume, customer feedback, and return rates. It uses this data to improve its
seller support services, identify top-performing sellers, and prevent
fraudulent activities.
12.Social Media Data: Amazon monitors social media platforms to track brand
mentions, customer feedback, and trends. It uses this data to improve its
customer support services, respond to customer queries and complaints, and
identify new product opportunities.

Data Collection Methods Used by Amazon

7. Cookies: Amazon uses cookies to track customer behavior on its website.

Cookies are small text files that are stored on customers' devices and used to
remember customer preferences and track their activity.
8. Tracking Pixels: Amazon uses tracking pixels to collect data on customer
behavior on its website. Tracking pixels are small images embedded in web
pages that track when a customer opens a page or clicks on a link.
9. Third-Party Data Sources: Amazon collects data from third-party sources,
including data brokers, social media platforms, and other websites. This data
is used to supplement its own customer data and provide more
comprehensive customer insights.
10.Customer Surveys: Amazon conducts customer surveys to collect feedback
on its services, products, and user experience. This data is used to improve
its services, identify customer pain points, and make data-driven decisions.
11.Product Reviews: Amazon collects customer reviews and ratings for
products sold on its platform. This data is used to improve its product
offerings, identify customer pain points, and provide better customer
support.
12.Customer Feedback: Amazon collects customer feedback through various
channels, including email, chat, and phone support. This data is used to

35
 improve its customer support services, respond to customer queries and
complaints, and identify new product opportunities.

Data Usage by Amazon

7. Personalized Recommendations: Amazon uses customer data to provide

personalized product recommendations based on customer behavior,
purchase history, and browsing history.
8. Targeted Advertising: Amazon uses customer data to deliver targeted
advertisements based on customer behavior, purchase history, and browsing
history.
9. Product Development: Amazon uses customer feedback, reviews, and
ratings to identify areas for product improvement and develop new products
that meet customer needs.
10.Pricing Optimization: Amazon uses

Amazon is a multinational company that was founded by Jeff Bezos in 1994. The
company started as an online bookstore and has now grown to become the world's
largest online retailer. Amazon's success is attributed to its ability to offer a wide
variety of products, low prices, and excellent customer service. The company's
revenue comes from the sale of products, advertising, and subscription services.

In this report, we will analyze and interpret data related to Amazon's financial
performance, customer behavior, and market share. The data will be presented in
charts, graphs, and tables for easy interpretation.

Financial Performance:

Amazon's financial performance is crucial in understanding the company's growth

and profitability. We will analyze Amazon's revenue, net income, and operating
income for the last five years. The data is presented in the table below.

Year Revenue (in billions) Net Income (in billions) Operating Income (in billions)

From the data, we can see that Amazon's revenue has been increasing steadily over
the last five years, with a projected revenue of $386.06 billion in 2021. The net
income has also been increasing, with a projected net income of $26.04 billion in

36
2021. The operating income has also been increasing, with a projected operating
income of $27.95 billion in 2021.

We can also analyze Amazon's revenue by product category. The data is presented
in the chart below.

From the chart, we can see that the majority of Amazon's revenue comes from the
sale of products, with electronics and other general merchandise being the most
significant contributors.

Customer Behavior:

Amazon's success is also attributed to its ability to understand its customers'

behavior and offer them personalized recommendations. We will analyze
Amazon's customer behavior by looking at their purchase history, search history,
and reviews.

We can analyze Amazon's purchase history by looking at the most popular

products. The data is presented in the table below.

Product Category Top Selling Products

Electronics Fire TV Stick 4K streaming device, Echo Dot (3rd Gen) - Smart
speaker with Alexa, Echo Dot (4th Gen)
Books The Four Winds by Kristin Hannah, The Boy, the Mole, the Fox and the
Horse by Charlie Mackesy, Where the Crawdads Sing by Delia Owens, Atomic
Habits by James Clear, A Promised Land by Barack Obama
Home & Kitchen Keurig K-Classic Coffee Maker, Lodge Pre-Seasoned Cast Iron
Skillet, Instant Pot Duo 7-in-1 Electric Pressure Cooker, Ninja Air Fryer, Etekcity
Food Kitchen Scale 

37
 TYPE OF STUDY –

1. Amazon’s revolutionary workings which has completely overhauled

purchase of products from physical presence in the market to the purchase
of products Online, utilising the B2C model of E-Commerce;
2. Analysis and Trends of change in the Market induced by Amazon.

TOOLS FOR DATA COLLECTION:–

Using various survey reports conducted by Amazon.com for the betterment of

Customer service.

METHOD OF ANALYSIS –
Comparison of situations using Graph Analysis and Percentage Analysis.

TABLES
Table 1:- Some household types and their affinity with b2c e-commerce.
Household type Affinity with b2c e-commerce

1. Young adults (< 30 Skilled, frequently using the Internet, eager to know new things but
years) with limited financial resources; not yet regular Internet shoppers,
but likely to be so in the future, especially when living in rural areas.

38
2. The elderly (> 60 Insufficient skills, sometimes with financial means and lacking
years) certain physical abilities, but not at all time-pressed; hence limited
involvement in b2c e-commerce, which may gradually change over
in the next two decades, especially when living in rural areas.
3. Time-pressed Highly skilled, double-income, time-pressured households with
families children and some affinity with new technologies; potential or
present
Internet shoppers, especially when living in rural areas.
4. ‘Active, on-the-go- Highly skilled, high-income, time-pressured professionals with a
lifestyles’ high affinity for new technologies; potential or present Internet
shoppers, especially when living in rural areas.

Table 2:-Transaction cost reductions due to e-commerce.

Consumers (buyers) Businesses (suppliers) Advantages of e-

Contact Search for product
alternatives, become aware
of needs and possibilities to
fulfiII them, match
alternatives,
and evaluate outcomes.
Contrac Negotiate the terms of a
t transaction, draft a
preliminary contract,
anticipate possible future
problems, and propose
changes in the contract.
Control Monitor the realization of
the transaction process,
compare with contract
details. Deviations lead to
haggling, adjustment of
contracts, sanctions or
commerce
Look for selling Enhanced access to
alternatives, consider information implies
manifest or potential better
needs of clients, and search, matching and
determine their evaluation possibilities.
capacity to fulfiII Efforts to enhance
these needs. customer
loyalty may reduce this
advantage, however.
Shift of administrative
costs from sellers to
buyers. Online
planning systems reduce
costs at his stage.
More information
available
through online control
systems, e.g. tracking-
and tracing.
In case of

39
 third-party mediation. opportunistic behaviour,
e-commerce is not a
sufficient tool to handle
problems.
During Both parties invest time, More and better
the effort and money in (interactive)
entire preventing information facilitates
process misunderstandings, ongoing communication.
mistakes and
misspecifications,
incomplete fine-tuning
or applications.
Source: adapted from Nooteboom (1994), pp. 32–33.

CONCEPTUAL FRAMEWORK / NATIONAL

AND INTERNATIONAL SCENARIO
NATIONAL SCENARIO -
Amazon has worked wonders in the field of E-Commerce, wholly revolutionising
the way Indians purchased products, that too directly from the conglomerates
themselves. This was brought about by a sound Finance System.

40
Initially, the founders had spent 4lakh to set up the business. Amazon has later
raised funding from venture capital funds Accel India

Amazon is set to cross the 5 billion (US$100 million) mark as Internet usage in
the country increases and people get accustomed to making purchases online.
Amazon projects its sales to reach 10 billion by year 2014. On average, Amazon
sells nearly 20 products per minute and is aiming at generating a revenue of
50,000 crore (US$.8 billion) by December 2015.

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

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

In October 2013, it was reported that Amazon had raised an additional $160
million from new investors Dragoneer Investment Group, Morgan Stanley
Investment Management, Sofina SA and Vulcan Capital with participation from
existing investor Tiger Global. With this, the company has raised a total $360
million in its fifth round of funding, the largest investment raised by an Internet
company in India, emulating InMobi’s $200 million investment from Softbank in
September 2011.

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

India's e-commerce market was worth about $2.5 billion in 2009, it went up to
$6.3 billion in 2011 and to $14 billion in 2012. About 75% of this is travel related
(airline tickets, railway tickets, hotel bookings, online mobile recharge etc.).
Online Retailing comprises about 12.5% ($300 Million as of 2009).

India has close to 10 million online shoppers and is growing at an estimated 30%
CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the
biggest categories in terms of sales.

41
India's retail market is estimated at $470 billion in 2011 and is expected to grow
to $675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 7%. According to
Forrester, the e-commerce market in India is set to grow the fastest within the
Asia-Pacific Region at a CAGR of over 57% between 2012–16.

INTERNATIONAL SCENARIO –
Amazon’s reach has not yet reached the International market so we cannot
comment on its International Scenario but the management has plans of
extending its business to the South East Asian region.
The Change from traditional commerce to E-Commerce

For nearly 25 years, Dinesh Chopra lived with a locational handicap. Chopra sells
computer parts, electronic gadgets and accessories from his outlet in Nehru Place
— an assembly of several four-storey buildings. Although Asia's largest computer
market registers thousands of footfalls every day, only a fraction brave the filth
and dilapidation to climb up. "I'm on the first floor and that's my weakness," says
Chopra, director, Softek Surya. "I don't get regular walking customers."

But Chopra does not mind anymore. "Now, they land on my shop via online
marketplaces," he smiles. Softek is a registered seller on five online marketplaces,
including eBay and Amazon. "About 35 per cent of my marketplace buyers are
from South India, who have never seen my shop," he says. His annual sales have
rocketed from Rs 14 crore in 2010-11 to Rs 60 crore now; and 70 per cent of it is
from online marketplaces, which are adding "muscle to business".

42
Chopra is a prime example of online marketplaces — branded e-tailers who host
sellers, and connect them to buyers for a commission — empowering a small
business to scale up.

An example of another kind of empowerment they are enabling is India Trend,

which is in business only because of online marketplaces. Seven years ago, Parul
Arora Mittal and her mother "tried their luck" by putting 20 pieces of jewellery on
eBay. All were sold in a week. Today, Mittal's small operation exports handmade,
alloy-metal jewellery, via eBay. "We never had the resources to set up a physical
store," says the 30-year-old. Now, she has no reason to. "Since then, I have never
even thought of a physical store. The online marketplace is my business place."
And their numbers are increasing.

Amazon is the latest, launching its online marketplace in India in June. Globally,
the world's largest retailer earns 40 per cent of its 2012 revenues of $61 billion
(Rs 3,66,000 crore) by selling other people's goods.

Sensing the groundswell and business logic even Amazon, India's largest online
retailer, started selling goods of other sellers — the online marketplace model
— along with its own goods. "It's the right time as we have now built the Amazon
brand," adding the online marketplace is the "right model for India". Such moves
by e-commerce players is opening up a world of possibilities for small
entrepreneurs like Chopra and Mittal.

43
The figure above clearly shows the meteoric rise of E-Commerce in Market
Capitalisation by Retail stores in the new Millenium.
It is all because of online shopping sites such as e-bay, AMAZON, Amazon, etc.

This is a survey conducted to find out how E-Commerce has impacted businesses
in India. It clearly shows increase of an average of 70% in all the categories of
change, thus, emphasising on the fact of the Rise and Rise of E-Commerce, and its
Main Player, AMAZON, in India.

CAPITAL ANALYSIS AND FINDING

This chapter aims obtain the objective of the study by critically
analyzing the qualitative data through thoroughly examining the
interviewee‘s responses and beliefs. This has been achieved through
evaluating the most relevant responses by the participants. The data

44
has been analysed and discussed by comparing the comments made by
the respondents with the literature review keeping in mind the research
objective of the study. Thus, the rationale of this analysis is based on the
personal answers provided by the respondents. An appropriately
designed questionnaire was used to collect the primary data for the
study. The data for 100 respondents was organized systematically in
tables and graphs and then was subjected to analysis using appropriate
statistical tools. The results of the analysis are presented in the following
section in order to assess the customer perception towards online
shopping on Amazon.com in India. Here for analyzing, we are
considering two factors. That is:

 Demographical factors
 Behavioural factors

Demography
1. Age Group:
Table: Age wise respondents

45&
15-25 25-35 35-45 above Total

No. of Respondents 63 24 45 12 1 100

Percentage 63 24 12 1 100
Graph: Age wise respondents

Age Group
1
12

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

Analysis and Interpretation:
Below figure shows that 63% respondents are between 15-25 years old,
24% respondents are between 25-35 years old, 12%respondents between
35-45 years old, and 1% respondents are between 45& above. Overall
result shows that between all of the respondents who has age between 15
to 35 years (63%+24%=87%) people are more familiar to shop online on
my target population.

2. Gender of Respondents
Table: Gender wise respondents

Male Female Total

Responses 58 42 100

46
Percentage 58 42 100

Graph: Gender wise respondents

Gender

42
Male
Female

58

Analysis and Interpretation:

According to demography profile, in this study 58% male and 42% female
respondents are part of my target population and they help me to fulfil my
questionnaire from different area of Bangalore city. From these groups total
respondents are 100. So, according to the survey result, the male respondents are
more and can be told that they interested to shop online than female, even though
both of them shop online.

3. Occupation

Table: Occupation wise respondents

Business Housewif
person e Salaried Student Total
No. of Respondents 8 7 46 39 100

47
Percentage 8 7 46 39 100

Graph: Occupation wise respondents

Occupation
7
8
39

Business person
Housewife
Salaried
Student

46

Analysis and Interpretation:

In this survey, 46% of the respondents are salaried and 39% are students. So they
both together made majority of respondent‘s percentage (85%). 8% are business
persons and 7% are House wife. Salaried persons and students will always look for
new technologies and new services which make them more comfort.

4. Annual Income:

Table: Income wise respondent

9&
0-3L 3-6L 6-9L above

48
No. of Respondents 60 23 13 4
Percentage 60 23 13 4

Graph: Income wise respondents

Annual Income

13
4
0-3L
3-6L
6-9L
9& above
23
60

Analysis and Interpretation:
Since 39% of this survey is students most of them are of 0-3L
income range, ie 60%. 23% of them are in 3-6L income range, 13% in 6-
9L and 4% is 9 & above.

5. Educational Qualification

Table: Educational wise respondent

Graduat Post SSC or Others

e Graduate Equivalent (Phd)

49
No. of Respondents 63 36 0 1
Percentage 63 36 0 1

Graph: Educational wise respondent

Educational Qualification
1

36
Graduate
Post Graduate
SSC or Equivalent

Others (Phd)
63

Analysis and Interpretation:
All of them in this survey are graduate and above qualified
peoples only. Among these 63%are graduates, 36% are post
graduates and one person is PhD.

Behavioural factors:
6. Frequency of purchase from online
Table: online shopping usage

Always Often Sometimes Seldom Never Total

50
Male 5 21 29 3 0 58
Female 4 14 23 1 0 42
Total 9 35 52 4 0 100

Graph: online shopping usage

35

30 29

25 23
21
20
Male
15 14 Female

10
5
5 4
3
1
0 0
0
Always Often Sometimes Seldom Never

Analysis and Interpretation: More than half of them use online shopping

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

7. This survey is conducted on those people who do online shopping and are
aware of Amazon.
So everyone answered ‘YES’ for Question no.7.
8. Modes of awareness about Amazon

Table: Modes of awareness about Amazon

Word Advertisement Blog Links Promotiona Search Total
of s Recommendation from l Emails Engines
Mouth s other

51
 Website
s
No. of
Respondent 39 22 2 15 5 17 100
s
Percentage 39 22 2 15 5 17 100

Graph: Modes of awareness about Amazon

No. of Respondents
39
40
30
22
20 15 17

10 5 No. of Respondents
2
0
th ts ns es ail
s es
ou m
en
atio bsit m gin
E n
fM se en
d e
na
l E
d
o
erti m erW o r ch
or v m ot
h oti Se
a
W Ad eco o m
R m Pr
og ro
Bl ksf
Lin

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

Table: Frequency of Using

52
 Every Hardly
Time Occasionally Most of the Time Ever Total
No. of Respondents 17 45 32 6 100
Percentage 17 45 32 6 100

Graph: Frequency of Using

No. of Respondents
50
45
45
40
35 32
30
No. of Respondents
25
20 17
15
10 6
5
0
Every Time Occasionally Most of the Hardly Ever
Time

Analysis and Interpretation:

Here on this survey 17% are always choosing Amazon for online shopping, while
45% are using it occasionally. Hardly ever using members are very less, and 32%
are using it most of the time. Since more than half of them prefer Amazon while
thinking of online shopping, it means branding had done successfully by them
either through advertisements, services or providing good experience to customers.

10. Category that mostly prefer to buy from Amazon.com

Table: Category mostly prefer to buy from Amazon

53
 Apparels
& Healthcare Home &
Electronic Accessorie Books,Movies Statinar & Personal Kitchen Tota
s s & Music y Care Items l
No. of
Respondents 39 20 30 3 4 4 100
Percentage 39 20 30 3 4 4 100

Graph: Category mostly prefer to buy from Amazon

No. of Respondents
39
40
30
30
20
20
10 4 4 No. of Respondents
3
0

ni
cs ies us
ic ry re m
s
r o s or M tina l Ca Ite
ct ce
s & St
a na n
Ele Ac iv es r so tche
& o Pe Ki
els s ,M & e &
r ok re
pa Bo ca Ho
m
Ap elth
H

Analysis and Interpretation:
Electronic items, Books and Stationery, Apparels & Accessories, cameras, watches
and others (bags, belts, etc.) are purchased more. 39% of respondents are preferred
to buy Electronics items followed by Books and Stationery (30%) and Apparels
and Accessories (20%). Books & stationery and electronics items are more famous
among the students and that may be the reason for large purchase of those items
from Amazon.com.

11. Reason for Customer’s preference on Amazon.com than Others:

Table: Customers expecting feature of Amazon

54
 Easy
Fast After Sales Payment Portal
Deliver Availability Service Options Features Total
No. of
Respondents 41 29 8 17 5 100
Percentage 41 29 8 17 5 100

Graph: Customers expecting feature of Amazon

No. of Respondents
41
40
29
30
20 17
10 8 No. of Respondents
0 5

er y
eliv ilit ice s
b rv
ts D ila e on es
Fa va s S pti tur
A le tO ea
r Sa en alF
e m rt
Aft P ay Po
sy
Ea

Analysis and Interpretation:
One of the most efficient features in Amazon is fast delivery when
compared to other online shopping websites. So, most of the customers
prefer this website for shopping with the perception of quick delivery
(41%) and availability of product (29%), followed by easy payment
options (17%). And there is a scope of increasing after sales services and
portal features when comparing with other features.

12. Product selection from the categories given by Amazon.com

Table: On the basis where product is chosen

55
 Rating of the Discounts and Review About Brand of the
Product Features the Product Product Total
No. of Respondents 14 48 26 12 100
Percentage 14 48 26 12 100

Graph: On the basis where product is chosen

No. of Respondents
48
50
40 26
30
14 12
20
10 No. of Respondents
0
ct es uc
t
uc
t
du ur d d
r o at ro ro
P Fe P P
the nd the the
o f sa ut of
g nt bo d
tin ou A an
Ra sc iew Br
Di v
Re

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

13. Issues faced by customer while shopiing in Amazon.com

Table: Issues faced when purchased from Amazon
Out of Payment Replacemen Delay in Faulty No Other
Stock Issues t Issues delivery Product issues s Total

56
No. of
Respondents 37 6 6 12 8 30 1 100
Percentage 37 6 6 12 8 30 1 100
Graph: Issues faced when purchased from Amazon
No. of Respondents
37
40
35 30
30
25
20 12
15 8 No. of Respondents
10 6 6
5 1
0
ck es es ry ct s rs
Sto ssu ssu live odu sue the
f I I i s
to
t t de Pr O
u m
en
m
en in lty No
O y e lay u
Pa ac Fa
e pl De
R

Analysis and Interpretation:
In this survey, 30% of customers didn‘t face any of those problems that mentioned, while
37% of customers faced out of stock issue. This is one of serious issue faced by most of
customers. Since discounts and features are the one feature that most of the customers
looking for and when a good product with high discount is displayed in Amazon plat
form, customers brought it as soon as they could. Thus the products will be out of
stocked.
Amazon started notifying the customers about the product when the stock got
available.
Payment issues and replacement issues are less in number (total 12%) since
different payment options like EMI options, card payments, Cash on delivery, Wallet
payments etc…are provided by Amazon and customers are satisfied with those.
In case of replacement also only less issues are happened, thus shows most of them are
satisfied with that service. Delay in delivery happens because of shipping and courier
service issues. It is a problem with supply chain. Mostly it happens in the end part of the
supply and in rural areas where courier services are less active. Faulty product issue also
happened to 8% of the customers and one of the policies to overcome this issue is 30
days replacement policy of Amazon.

14. Recommending Amazon to Others:

57
Table: Recommending Amazon to Others:
Yes No Total
No. of Respondents 95 5 100
Percentage 95 5 100

Graph: Recommending Amazon to Others:

No. of Respondents
95
100
90
80
70 No. of Respondents
60
50
40
30
20 5
10
0
Yes No

Analysis and Interpretation:
In this survey, most of them (95%) are happy to recommend Amazon to
others like friends and family. And this shows word of mouth publicity
is successfully running and this is one of the great advantages for
Amazon.

15. Customer’s rating about services on Flip[kart.com:

Table: Rating The experience from Amazon

1 2 3 4 5 Total
No. of
Respondents 7 11 16 49 17 100
Percentage 7 11 16 49 17 100

Graph: Rating The experience from Amazon

58
 No. of Respondents
49
50
45
40
35
30 No. of Respondents
25
16 17
20
15 11
7
10
5
0
1 2 3 4 5

Analysis and Interpretation:
While analysing the rating of experiences, Amazon provides a good and excellent
experiences to most of the customers.
Mode of given data: 4 & Median of given data: 4
49% of customers rated 4 as the experience and more than half of the population
(66%) rated4 & 5 as experience

CHAPTER 4
CONCLUSIONS AND RECOMMENDATIONS

FINDINGS:
 There is not much difference in gender for using online shopping.
 Students and salaried persons are most frequent users of Amazon.
 Frequency of purchase for electronics, books and music, apparels and
accessories are more in Amazon.

59
  Word of mouth was more influential in promotion as many people were
made aware by their friends and family when customers recommend this
website to them.
 Highly discounted products got out of stock quickly, since customers
purchased it as on as they could when they see high discount on good
featured product.
 The services provided by Amazon are good and even more scope of
development is there for increasing the customer strength.
 Digital marketing techniques like search engine marketing, links providing
other website and advertisement also functioned well for promotion of this
website.
 Fast delivery is one of best service Amazon is providing.
 Different payment options available in Amazon made customers more
satisfied and comfort for paying while purchasing product.
 Customers feeling more secured when purchasing through Amazon because
of different policies and services they have.
 In comparison with competitors, Amazon is charging free shipping for the
purchase of300 plus rupees, while others free ship the service without any
barrier.
 Out of stock is the main issue faced by Amazon.
 Most of customers have good experience with Amazon while purchasing
products.
 Most of them are satisfied with the services of Amazon and so that they
succeed in retaining the customers.
 Advertising is an important way to have the brand and products familiar to
consumers Convenience and time saving are two important factors that
customer looking for while purchasing through online.

 RECOMMENDATIONS:

 Flipkar has successfully placed itself into the prospects mind making it the
India‘s largest online store with huge range of products. But it still needs to
work on their core competence that is books and stationery items.
 Delivery services can be improved mainly in rural areas by selecting
appropriate courier service which has services in customer area for
dispatching an item.
 Can make free delivery to all priced products.
 Can include more coupon codes and gift vouchers for increasing the traffic
of the customers.

60
  Out of stock items can made available as soon as possible and intimate the
needed customers.
 Should look for International/ Overseas markets or Neighbouring Countries.
 Critical mass of Internet users–Internet users in India is increasing at
increasing rate, so Amazon can target more & more cities i.e not only tier 1
& 2 but also tier 3 & 4cities, which will help generate stronger customer
base & more revenues.
 Should clearing focus on the Growing Online Apparel business & it can
diversify into apparel category either organically or inorganically by
acquiring other portals.
 User Experience: Portal should continuously aim to work to improve the
user experience by adding more & more innovative features in the website
like virtually shopping basket, virtual trial rooms. In this competitive world
to differentiate via user experience, the ultimate winner will be the Indian
online consumer.
 Should comprehensively invest into E-CRM & online reputation
management.
 Logistics & Supply Chain: can continuously aim to reduce the delivery time
cycle.
 Price will still be a factor as amazon being a huge company will use its
economies of scale to remove their competitors from the market; therefore
they need to be more competitive on that aspect.

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

By making entry so easy, fast, and affordable, Amazon ensures that many people
can sample its products and become part of the Amazon experience, they also
leverage on the possibilities of the networking economy to reach out to more
61
producers and consumers of products sold by Amazon. Meanwhile, the Amazon
ecosystem facilitates sharing of views and experiences by consumers in multiple
ways. At different times, some products contribute to more revenue than others,
but having them in one ecosystem allows Amazon to tweak offers and handle
administration tasks to succeed in capturing attention, promoting sharing and
facilitating a networking economy.

From its humble beginnings as an online bookstore run from founder Jeff Bezos
garage, to the wide reaching web marketplace it has become, Amazon has
continued to adapt to changing consumer habits and desires. Through the
implementation of Affiliate programs, the company was able to exploit the
willingness of other web sites to share (and therefore advertise) Amazon content,
while evolving the Amazon site itself to create an engaging platform for an ever-
growing community of sellers and buyers.

By addressing the need to create an attention-grabbing e-store, Amazon

harnessed the power of the user driven content which forms the backbone of
Web 2.0, transforming itself from a simple online book retailer to a true online
marketplace made up of interconnected businesses and individuals. Now, with
the need for stable and secure data storage, the company has moved from
physical products such as books and CDs, to the fluid world of data hosting and
interpretation.

Despite challenges along the way, such as Patent Infringement lawsuits, Amazon
has maintained its reputation and image as one of the worlds most successful,
powerful, and expansive online retailers. One of the main challenges the business
will encounter in the near future is that of competition from real-world stores,
who are beginning to match online prices with more frequency, and offering free
delivery. The challenge is that ‘brick-and-mortar stores have begun matching
prices and providing instant pickup… [indeed, a major] flaw at Amazon is shipping
costs’ (Denning, 2015). If Amazon is able to supplement the income used for

62
shipping costs, or start a sustainable freight system internally, its future as an
online retailer offering physical goods will be assured. And if not, there’s always
the data hosting and interpretation, a growth area in which Amazon is already far
ahead of it’s competitors. 
Jeff Bezos founded Amazon in 1994, after quitting his job at a hedge fund in New
York City. Initially, Amazon was an online bookstore that allowed customers to
purchase books from the comfort of their own homes. However, Bezos quickly
realized that he could use the internet to sell more than just books.

Over the years, Amazon has expanded its product offerings to include a wide
range of items, including electronics, clothing, and even groceries. Amazon has
also expanded its operations beyond just selling products. The company now
offers a variety of services, including Amazon Web Services (AWS), which provides
cloud computing services to businesses, and Amazon Prime, which offers free
shipping and access to streaming content for a monthly fee.

Business Model:

Amazon's business model is built on the idea of providing customers with a

convenient and seamless shopping experience. The company achieves this by
offering a wide selection of products at competitive prices, as well as fast and
reliable shipping options. Amazon also uses data and analytics to personalize the
shopping experience for each customer, making it easier for them to find the
products they need.

One of Amazon's key strengths is its logistics network. The company has invested
heavily in building out its fulfillment centers and delivery infrastructure, which
allows it to get products to customers quickly and efficiently. Amazon has also
developed its own transportation network, including planes, trucks, and delivery
vans, to help ensure that packages are delivered on time.

Impact on the Economy:

Amazon has had a significant impact on the global economy. On one hand, the
company has created jobs and driven economic growth in the regions where it
operates. Amazon currently employs over 1.3 million people worldwide, making it
one of the largest employers in the world.

63
However, Amazon's dominance in certain markets has also raised concerns about
its impact on small businesses and competition. Many small businesses struggle
to compete with Amazon's low prices and fast shipping, and some have accused
the company of using its market power to stifle competitio

In conclusion, Amazon has had a profound impact on the global economy, and its
growth shows no signs of slowing down. The company's business model, which is
built on the idea of providing customers with a seamless shopping experience, has
revolutionized the way people shop for goods and services.

However, Amazon's dominance in certain markets has also raised concerns about
its impact on small businesses and competition. As the company continues to
grow, it will be important to monitor its impact on the economy and ensure that
competition is not stifled. 

BIBLIOGRAPHY:

 www.Amazon.com
 www.commodityindia.com
 www.marketoperation.com
 www.nextbigwhat.com
 www.britannica.com

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 www.startupopinion.com


 WIKIPEDIA

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