1.

Explain the business models of the following in short notes:

a) Amazon:

It can be a curious effort to define the Amazon business model given that this global trade behemoth
expands its reach year after year, both geographically and in terms of the goods and services it offers.
Amazon puts a high priority on customer service and offers both individuals and companies a user-
friendly platform to sell their goods. It adheres to the Long Tail economic theory and provides a wide
range of goods to satisfy various client needs. To serve customers who prefer in-person shopping
experiences, Whole Foods and other physical locations have been added to Amazon's business strategy,
which includes both online and offline channels. The business has now broadened its services to include
Amazon Web Services (AWS), which provides companies with cloud hosting options. Further broadening
its offerings, Amazon now provides well-known streaming services like Amazon Prime Video and
Amazon Music. Amazon has established itself as a major player in e-commerce, cloud computing, and
entertainment because of its all-encompassing strategy and emphasis on convenience.

b) Zomato:

Zomato is an online meal delivery, discovery, and search engine for Indian restaurants. The food tech
unicorn was developed by Deepinder Goyal and Pankaj Chaddah in 2008. Zomato is well known
throughout the nation and has over the years successfully entered a number of foreign markets. It
presently provides service to 10,000 cities across 25 nations, including the United States, Qatar in the
Middle East, India, Australia, Brazil, and New Zealand.

In addition to consultancy services, Zomato currently focuses on online meal ordering, restaurant
reservations, and loyalty programmed. Like the Google search engine, Zomato is a food-search engine
that covers a wide range of foods and places. From a small-business endeavour, the company has grown
into one of the biggest food aggregators in the world. Zomato works together with restaurants to create
a sustainable ecology in addition to connecting consumers to food in all contexts.

With its distinctive and sustainable business and revenue strategy, the company has been able to
maintain its position as a leading player in the market. Because of elements like cost, accessibility, and
variety, Zomato has been able to gain the trust of customers over the course of its existence. Zomato
strives to provide its customers with cutting-edge services.

c) Nykaa:

Nykaa operates according to an inventory-based business model, where all goods are kept in
warehouses dispersed throughout various locations. As a result, Nykaa is able to make direct purchases
from retailers and manufacturers and complete orders based on the availability of the goods. In addition
to its internet, the business also runs in several physical locations, including Nykaa Kiosks, Nykaa Luxe,
and Nykaa on Trend.

The omnichannel experience that Nykaa offers its clients is one of its main strategies. This ensures
simplicity and flexibility by enabling people to shop via several channels, such as the website and
physical stores. Nykaa also gives users the chance to try brands that might not have actual retail
locations in India, expanding the selection of goods that are readily available to consumers.
In addition, Nykaa has developed a network community where users may connect, exchange concepts,
advice, and tutorials, resulting in an engaging and motivating platform for users. By encouraging a
feeling of connection and belonging, this community-building method aids in both retaining current
clients and luring in new ones.

Nykaa has been able to provide its customers with a smooth shopping experience both online and
offline thanks to its inventory-based business model and customer-centric strategies including
omnichannel experiences and network communities.

d.) Zepto works on the Dark Store distribution model, where dark stores are distribution points that are
not open to visitors. These micro-warehouses fulfill orders quickly and accurately, providing shoppers
with resources and options such as purchasing products online, same-day delivery, or in-store pickup.

The Dark Trade Model (DSM) reduces the trivial challenges faced by any delivery service, traffic
congestion, navigation and connectivity. Zepto reports that leveraging information on location,
geography, population, road patterns, traffic dynamics, weather, last mile inventory availability,
property values, etc. has improved network performance. And it currently has more than 40 dark shops
in various locations.

One disadvantage of dark stores is that they are designed for quick deliveries and cannot handle high
volumes of sales, although Zepto has not compromised on these shortcomings. They have over 1000
items on display. Additionally, their AI-powered technologies enable a seamless transition from picking
to packing to shipping.

Their business style is truly customer-centric and immediate service-oriented; they offer fast delivery
and are known for fast business. It claims to have an average delivery time of less than 9 minutes and
completes food deliveries in 11 minutes

e) MakeMyTrip's business approach is very strategic and customer service oriented. MakeMyTrip
delivers excellent products to the audience as well as the ability to order tickets.

As the fastest growing digital travel agency, India is helping companies like MakeMyTrip by positioning
them as a strong challenger in the global market. And their business strategy for this completely plans
marketing, pricing, name, promotion and positioning. Through its fantastic customer-centric services,
the organization provides satisfaction to its consumers.

MakeMyTrip goes far beyond just providing the best possible customer experience. In a competitive
market, MakeMyTrip provides an option for user testimonials to provide positive feedback to the
company's customer service managers. And it is from a positive customer experience that the
organization benefits the most.

In addition, MakeMyTrip offers its services at reasonable prices that attract a large audience.
MakeMyTrip also offers an e-marketplace that is very systematically accessible to a wide range of
people across the globe.
MMT uses omnichannel marketing to effectively promote its brand and their key components include:
Electronic banners in TV commercials, internet and other media including promotion through brick-and-
mortar stores.

f) eBay's key consumers are divided into three categories: Global Mass Market, Buyers and Sellers. The
site attracts both sellers who want to sell their items at a predetermined price and those who want to
bid on them. eBay has four main ways to contact its customers: its mobile app, its website, social media
and its digital stores.

eBay's primary activities as an online marketplace are as follows. For starters, it facilitates B2C and C2C
transactions. The organization prioritizes the client experience and provides 24/7 customer service.
eBay's third major activity is site development and server maintenance. Logistics is the last major activity
of the Internet marketplace. Logistics operations contribute to the timely and efficient delivery of goods
to customers.

The success of any company is determined by the value it offers to the lives or shopping journeys of its
clients. It is a global e-commerce hub that brings together customers and merchants from all over the
world.

A component of eBay's cost structure includes:

Online marketplace means paying staff wages.

Pay for the website, mobile app platform and other digital store maintenance.

Costs associated with logistics and marketing.

Marketing and development costs aimed at acquiring new customers.

• Redesign model of Amazon: Amazon Store

Amazon is the king of e-commerce, but it can adopt a new business strategy by
opening a visiting store in a tier one city. Customers can pre-book their visit time and the products they
want to see, allowing them to physically experience their desired purchases before making a final
decision. Additionally, visitors that go a greater distance than a specified threshold can convert that
distance into savings points. Customers can swap or resell their products in this store. This allows
Amazon to advertise its own services like Amazon Prime and showcase its own original works in advance
screenings.

2.
The Inventory Model is an e-commerce model where the platform holds inventory and sells directly to
customers. The platform manages inventory, including ordering, storage and shipping. This model can
be more capital intensive than the business model as the platforms need to invest in inventory and
products. However, it can still be more profitable because the platform can control the price and profit.

advantages:

Product Quality Management: The platform offers full control over the supply chain from order to
delivery.

Higher Revenues: Platforms can price products to generate higher revenues.

Better customer experience: The platform can provide customers with a better and more reliable
experience as it monitors the entire order process.

Disadvantages:

High investment: Platforms need to invest in inventory and products, which can be a big financial
burden.

Risk of failure: There is a risk of platform failure as the products may be outdated or discredited.

Complexity: Product models can be more complex to manage than business models.

Marketplace model

The marketplace model is an e-commerce model in which a platform acts as an intermediary between
buyers and sellers. The platform has no products for sale, but provides a platform for buyers and sellers
to connect and exchange.

advantages:

Low investment: The platform does not need to invest in inventory or storage, which can save a lot of
money.

Low risk of obsolescence: Since the platform has no inventory, there is no risk of obsolescence.

Easy to manage: The platform does not need to monitor the product level or manage the delivery.
Disadvantages:

Lower profit margins: The platform takes a commission on each sale, which reduces profits.

Less control over the supply chain: The platform does not have full control over the supply chain and
relies on suppliers to deliver the goods.

Changes in Product Quality: The Platform cannot guarantee the quality of products sold in its store.

Aggregator model

The aggregator model is an online e-commerce model in which a company, called an aggregator,
aggregates (or collects) information about products and/or services offered by various competing
websites or software applications (often called applications) and places them on your own . website or
application. In general, the aggregator does not have the ability to manufacture or manufacture
products and relies on the ability to create listings that allow visitors to easily compare prices and terms
of products and/or services. This type of service is available from many lenders and insurance
companies.

3. Identify & highlight the major emerging trends in e-commerce. Take two examples on

your own and elaborate. (200 words).

E-commerce businesses are increasingly using AR/VR, voice search, AI/ML, on-site
personalization, big data, chatbots, subscription models, and sustainability to improve the
customer experience and stay ahead of the competition.
These trends are transforming the way people shop online, and businesses that want to be
successful in the future need to start paying attention to them.

• Voice Search:
.
Customers can use voice search to find things in e-commerce by name, description, or by
requests like "find me a pair of black shoes" or "best laptop under $1,000." Additionally, it
makes purchasing more convenient by enabling users to place orders by merely saying "buy" or
"order." Additionally, voice search makes it easier to get in touch with customer support by
answering queries like "how do I return this item?" and "what is your return policy?"
 • Chatbots:

Chatbots help companies improve customer service by offering around-the-clock assistance,

cutting down on wait times, and increasing customer happiness. They enable human customer
care professionals to focus on more complex issues by efficiently handling consumer questions
about purchases, shipping, and returns. To offer personalised product recommendations,
chatbots also use information about clients' past purchases, browsing habits, and location. This
boosts sales and improves the entire customer experience.

4. Explain the following e-commerce terms. State the pros and cons associated with each of

them:

Definition Pros Cons

B2B The term Bulk purchases, Longer decision-

"business-to- ongoing making times,
business" collaborations, difficult sales
(abbreviated greater revenue, cycles, and
"B2B") refers to and cost savings greater
interactions and are all examples expectations for
transactions of efficient product
between procurement. customization.
businesses
rather than
between firms
and particular
consumers.
D2C Direct-to- Control, direct Logistics,
Consumer, or customer scalability,
D2C, refers to a relationships, marketing, and
business higher margins, customer
strategy where faster feedback, acquisition
goods are brand challenges for
offered to ownership. D2C businesses.
customers
directly without
the need of
middlemen or
retailers.
Private Labels Private labels Control over Increased
are goods branding, competition,
produced by one pricing, quality, limited brand
business but and profit recognition,
offered under margins for potential quality
the brand name businesses. control issues.
of another,
usually a shop,
to create an
exclusive
product.

Hyperlocal A hyperlocal Efficient Limited

area is one that delivery, geographical
is extremely reduced reach, high
localised or shipping costs, operational
geographically enhanced costs, potential
specialised, customer logistics
usually at the experience, local challenges,
neighbourhood partnerships. scalability
or community constraints.
level, and that
focuses on
certain
activities,
occasions, or
establishments
there.

Cross Selling Potential cons of

Offering extra or Increased sales, cross-selling
similar products higher customer include
to a customer engagement, customer
who is already and enhanced annoyance,
buying or
customer reduced trust,
interested in a
satisfaction and increased
certain product is
known as cross- complexity in
selling. product
recommendatio
ns.
Seller Flex An Amazon Greater control Complex
programme over inventory logistics,
 called Seller Flex and order potential loss of
gives third-party fulfillment. control over
sellers more Improved customer
flexibility and shipping experience and
efficiency over efficiency and branding.
their business faster delivery
operations by times.
handling the Enhanced
storage, customer
fulfilment, and experience and
shipping tasks. satisfaction.

3rd Party In order to free Efficiency, Dependency on

Fulfilment up time for scalability, cost external
businesses to savings, provider,
concentrate on expertise, faster potential loss of
other elements delivery, wider control, and
of their distribution, additional costs.
operations, reduced labor.
third-party
fulfilment refers
to outsourcing
the
warehousing,
inventory
control, and
order fulfilment
processes to a
specialised
organisation.

A) FlipkartPlus

One of India's leading e-commerce platform, Flipkart, has launched the Flipkart Plus loyalty program. It
enhances members' shopping experiences and adds value by providing a range of benefits and prizes.
The main attributes and benefits of Flipkart Plus are listed below:

Free and Faster Delivery: Flipkart Plus members get free and faster delivery on eligible items.
Early access to sales: Members get first access to important Flipkart sales and promotions.

SuperCoins: Flipkart Plus subscribers can redeem their SuperCoins for various benefits and discounts.
Every purchase made on Flipkart results in earning Supercoins that users can redeem.

Amazon Prime

One of the largest e-commerce platforms in the world, Amazon, offers a premium subscription program
called Amazon Prime. It offers its members a wide range of benefits and special rewards. Here are some
of the main attributes and benefits of Amazon Prime:

Free & Fast Delivery: Like Flipkart plus Amazon Prime delivers free on select products and promises one-
day delivery for prime members. Amazon Prime Video: Amazon Prime Video is Amazon's video service
that has tons of fun movies and OTT content. Amazon Prime Music: Prime music is also free with a
subscription.

Netflix

Netflix is slightly more expensive than Prime and also offers fewer features. Prime members get
Amazon Prime Video, Amazon Music, and Amazon Reading. Netflix, on the other hand, only offers
streaming content. However, Netflix has a larger library of TV shows and movies than Amazon Prime.
Amazon Prime is catching up fast and has some exclusive content that Netflix doesn't have, like The
Grand Tour and The Boys.

Netflix also has some of the most famous shows of all time and is still the market leader in the OTT
Entertainment segment. Netflix also produces some original shows.

b) Amazon Pay, Google Pay and PhonePe are the three most popular Unified Payment Interface (UPI)
apps in India. Both allow you to pay online and in stores using your bank account. However, there are
some key differences between the three apps.

Amazon Pay is a payment service offered by Amazon India. You can pay with it on Amazon.

and other websites and apps that accept UPI payments. Amazon Pay also has a cashback program that
gives you money back for your purchases.

Google Pay is a payment service provided by Google. It can be used to pay in stores that accept NFC
payments, as well as on websites and apps that support Google Pay. Google Pay also has a cashback
service that lets you send and receive money from friends and family.
PhonePe is a payment service provided by PhonePe. It can be used to pay on PhonePe-enabled websites
and apps and at stores that accept UPI payments. PhonePe also has a cashback program that allows you
to send and receive money to friends and family.