E-commerce

Daraz.pk store

A-01 E-commerce management assignment

Submitted to: Sir Mansoor Ashiq
Submitted by:
Zunair Saeed (F20BB035)
Ahsan Rasheed (F20BB031)
M. Kamran (F20BB028)
Fatima Farooq(F20BB036)
Iqra Ghulam Ahmed (F20BB34)
Syed Saad Ali Shah (F20BB021)

Course code: MGMT 110

Date of submission: 3-3-2020
Institute: Institute of Business and Information Technology, Punjab University.
Contents
Introduction...........................................................................................................2
Daraz.....................................................................................................................3
Growth:..................................................................................................................3
Products.................................................................................................................4
Business model:.....................................................................................................4
Common misleading practices:.............................................................................4
Low quality products:............................................................................................4
Inaccurate product listings:...................................................................................5
Fake Reviews:.......................................................................................................5
Order Misplacement:.............................................................................................5
Over pricing and fake discounts:...........................................................................5
Security issues:......................................................................................................5
Conclusion:............................................................................................................6

1
 Introduction

E-commerce is the way of buying and selling things online

over internet. It is a business established on Internet that includes the use of
internet. E-commerce enables the buyers and sellers to exchange information
online using internet as mode of communication. In case of e-commerce both
digital transaction as well as physical transactions can be made. E-commerce
involves four modes of communication.

1. Business to Business.
2. Business to Consumer.
3. Business to Employee.
4. Consumer to Consumer.
5.

History of e-commerce started after the invention of telephone

in late 20th century. In the past 30 years e-commerce has been made very much
advance and making it better and safer for both the buyer and the seller. Today
E-commerce business has substituted the traditional market very efficiently.
Amazon.com which is regarded as the king of E-commerce is earning 4200USD
dollars per second.

E-commerce is a good alternative for brick-and-mortar stores.

But in some conditions, there should be a physical store and the services should
be offered traditionally. There are several organizations which offer their
services physically as well as online. Mostly an e-commerce is started by one or
two persons. Single person plays the role of CEO, Marketing officer, Designer
etc. But as the business expands more employees should be hired depending on
their expertise.

2
 CEO

Marketing Finance Services

Vertical hierarchy in case of E-commerce management is

somehow related to the management of an organization. CEO has his immediate
team of Marketing, Finance and Services. First line managers have their
subordinate employees.

Daraz

There are many E-commerce stores operating in Pakistan. One

of the most well-known online stores operating in Pakistan is Daraz. Daraz is the
leading online store in Pakistan. Daraz was established in 2012 as online fashion
retailer by two Pakistanis Muneeb Maayr (founder) and Farees Shah (co-
founder), Since then, it has been one of the largest ecommerce stores in
Pakistan. According to worthofweb.com, daraz.pk is currently worth over
100,000,000$ (Hundred Million Dollars).

Growth:
In 2012, there was a nominal competition in the field of e-
commerce. Today Daraz has risen from millions to billions of PKR in their
monthly sales. Just for record on last Blessed Friday sale, Daraz made PKR 3
billion on a single day.

3
Products:

As a multi retailer store, daraz lists a number of products

from all categories such as fashion, grocery, electronics etc. The main audience
of daraz is mostly young men and women.

Business model:

Daraz is based on B2C (Buyer to Consumer) model. It allows

the retail stores to list their items on its website, which is free of cost until the
product matures into the order of buyer. When a buyer orders the product, daraz
packages this product and deliver it to the buyer address and takes its
commission.

Common misleading practices:

No organization is perfect and every single organization has

its own set of flaws and mistakes. Similarly, Daraz also has some management
mistakes which we are going to analyze and provide optimal solutions for them.

Low quality products:

The most common found problem in E-commerce industry is

that the product listed on the website is not the one that is actually delivered to
you. The seller shoes you a high-quality product as the sample but sends you a
low-quality product.
Solution: The overall quality of the products should be verified by Daraz before
shipping and be kept at a certain standard. This problem can also be solved by
introducing a strict policy for returns and refunds.

4
Inaccurate product listings:

One of the major problems faced by customers while shopping

on Daraz is incorrect products showing up when searched for something,
another thing shows up which is not related to the item being searched for.
Solution: Better search relevance should be introduced and multiple categories
should be added so the filtered products will be shown in the search results.

Over pricing and fake discounts:

Daraz offers many sales and discounts where the price of the original product is
inflated to such an extent that the discount does not favor the buyer. This is both
ethically and socially wrong.

Solution: Daraz should not advertise false discount campaigns to lure in more
customers for their own benefit.

Fake Reviews:

The product reviews are often plagued by positive reviews

that are fabricated. On daraz, seller gets fake reviews for getting more orders.
This causes inconvenience for the buyers.
Solution: Daraz should keep checking the order records of the seller and assign
the ratings to the sellers depending upon his/her previous records.

Order Misplacement:

Daraz is using traditional procedure for delivering orders

which cause inconvenience for the buyers.
Solution: For this daraz should introduce GPS tracking services among the
delivery boys so the chance for order misplacement could be reduced.

Security issues:

5
 People have trust issues because online payments require
credit card information which can be stolen and used. Financial frauds,
spamming and phishing are the security threats to ecommerce stores.
Solutions: Hiring better IT staff and running a campaign, explaining that all the
data given to the site is safe, for people so they can be satisfied and use the store
without any doubt or insecurity.

Conclusion:

As a conclusion to the above article, it can be said that Daraz

is certainly one of the largest E-commerce stores operating within Pakistan and
like every other organization it has its own fair share of mismanagements and
mistakes but that does not mean that it is incompetent or operates at a low
standard.