“Study on E-commerce”

SUBMITTED TO

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD

OF THE DEGREE
OF
BACHELORS OF BUSINESS ADMINISTRATION
IN
International Business

SUBMITTED BY
Pratik.N. Pawar

(200102161004)
UNDER THE GUIDENCE OF

Dr. Shilpa Mishra

SCHOOL OF COMMERCE & MANAGEMENT SCIENCES SANDIP

UNIVERSITY

MAHIRAVANI, NASHIK- 422 213 (2022-2023)

SANDIP UNIVERSITY SCHOOL OF COMMERCE & MANAGEMENT SCIENCES

DEPARTMENT OF MANAGEMENT

1
 CERTIFICATE

This is to certify that the Summer Internship Project report entitled “Study on E-

commerce” submitted by Pratik.N. Pawar (200102161004) in partial fulfillment of the

degree in Bachelors of Business Administration (International Business) of Sandip
University is a record of his own work carried out under my supervision and guidance. The
matter enclosed here is not been submitted elsewhere for award of any degree or diploma.

Dr. Shilpa Mishra

Guide Dean
Assistant Professor Sandip University, Nashik
Sandip University, Nashik
EXAMINERS’ CERTIFICATE OF APPROVAL

The Summer Internship Project entitled “Study on E-commerce” submitted by

Pratik.N. Pawar (200102161004) in partial fulfillment of the requirement for the award
of the degree of Bachelors of Business Administration/ Bachelors of Business
Administration(International Business) of Sandip University, Nashik is hereby
approved for the award of the degree.

CHAIRMAN: EXAMINERS:

(1) External

2
 (2) Internal

Place: Nashik
Date:

ACKNOWLEDGEMENT

A moment comes which comes but rarely in a student’s life, when

with outmost pleasure and satisfaction. I, Pratik Nandulal Pawar,
submit my project report on “A Study on E-Commerce"

I would first like to thank my thesis advisor professor Dr. Shilpa Mishra
of the School of commerce and management studies at Sandip
University.

I would grateful thankful to DEAN,

Head of School of Commerce and Management Studies , Sandip

University, Nashik , Maharashtra , for extending all the available
facilities for my work.

Finally, I must express my very profound gratitude to my parents and to

my friends and to my friends for providing me with unfailing support
and continuous encouragement throughout my years of study and
through the process of researching and writing this thesis. This
accomplishment would not have been possible without them.

THANK YOU,

3
PRATIK NANDULAL PAWAR

DECLARATION

I hereby declare that internship project entitled " A Study on E-Commerce" has
been carried out by me for the academic purpose only . This is my own efforts
and original work which has not been submitted for any degree or diploma to any
university or institute.

Place:
Nashik Date:

PRATIK PAWAR
(PRN NUMBER 200102161004)

4
 Table of content

Chapter Particular Page no.

Abstract Abstract on e-Commerce 7
Chapter – 1 1.1 Literature 8
Introduction
1.2 Need and benefits of 9
Study
11
1.3 Objective of the Study
12
1.4 Scope of Study
13
1.5 Limitation of Study

Chapter – 2 2.1 Theoretical background 15

Conceptual Background and of
literature review Study
16
2.2 Literature review
Chapter – 3 3.1 Background of 21
Profile of organization organization
24
3.2 Activities of the
organization 26

3.3 Growth and development

of
the organization

Chapter – 4 4.1 Nature of data 28

Research Methodology
4.2 research design 29

4.3 Research tools and 30

techniques

Chapter – 5 5.1 Table Representation 33

Data analysis and
interpretation 5.2Graphical representation 37

Chapter – 6 6.1 Findings 43

Summary of findings and
suggestions and conclusion 6.2 Suggestions 44

5
 6.3 Conclusion 45

6.4 Bibliography 47

ABSTRACT
The business to consumer aspect of electronic commerce (e-commerce) is the most visible
business use of the Word Wide Web. The primary goal of an e- commerce site is to sell goods
and services online. This project is a web-based shopping system for an existing shop. The
project objective is to deliver the online shopping application. This project is an attempt to
provide the advantages of online shopping to customers of a real shop. It helps buying the
products in the shop anywhere through internet by using a web site. Thus, the customer will get
the service of online shopping and home delivery from this shop. This system can be
implemented to Sai Supermarket in the locality. If shops are providing an online portal where
their customers can enjoy easy shopping from anywhere, the shops will not be losing any more
customers to the trending Online shop such as Flipkart shop Bay, Since the application is
available in the given site it is easily accessible and always available.

E-commerce (electronic commerce) is the buying and selling of goods and services, or the
transmitting of funds or data, over an electronic network, primarily the internet. These business
transactions occur either as business-to-business (B2B), business-to-consumer (B2C),
consumerto-consumer or consumer-to-business.

The terms e-commerce and e-business are often used interchangeably. The term e-tail is also
sometimes used in reference to the transactional processes that make up online retail shopping.

Chapter – 1

1] INTRODUCTION

1.1 Literature

Literature of E-Commerce-

E-commerce literature refers to the body of scholarly and practical work that explores various
aspects of electronic commerce. This includes the study of online business models, consumer
behavior, digital marketing, payment systems, and technology infrastructure, among other
topics. Below are some key works in the field of e-commerce literature:

6
 i. "E-Commerce: Business, Technology, Society" by Kenneth C. Laudon and Carol
Guercio Traver - This comprehensive textbook provides an overview of e-commerce,
including its history, infrastructure, and legal and ethical issues.

ii. "The Long Tail: Why the Future of Business is Selling Less of More" by Chris
Anderson - This book discusses the rise of niche markets in the digital age and how e-
commerce has enabled businesses to serve smaller, specialized audiences.

iii. "The Art of SEO: Mastering Search Engine Optimization" by Eric Enge, Stephan
Spencer, Jessie Stracchino, and Rand Fishkin - This guidebook teaches readers how to
optimize their websites for search engines, a crucial aspect of e-commerce success.

iv. "The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create
Radically Successful Businesses" by Eric Ries - This book explores the concept of lean
startup methodology and how it can be applied to e-commerce businesses to help them
quickly test and iterate their ideas.

v. "The Four Steps to the Epiphany" by Steve Blank - This book provides a framework
for developing successful e-commerce startups, emphasizing the importance of
customer discovery and product-market fit.

vi. "The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail" by
Clayton Christensen - This classic work explores the challenges that established
companies face when disruptive new technologies, such as e-commerce, emerge.

vii. "Electronic Commerce: A Managerial Perspective" by Efraim Turban and David King -
This textbook provides an overview of e-commerce strategy and management, with a
focus on business-to-business (B2B) e-commerce.

viii. "Information Rules: A Strategic Guide to the Network Economy" by Carl Shapiro and
Hal R. Varian - This book explores the economics of e-commerce and how businesses
can use information technology to gain a competitive advantage.

ix. "Groundswell: Winning in a World Transformed by Social Technologies" by Charlene

Li and Josh Bern off - This book explores the impact of social media on e-commerce
and how businesses can use social technologies to engage with customers and build
brand awareness.

1.2 Need and benefits of study

Need and benefits of E-Commerce -

7
 E-commerce is a rapidly growing field with enormous potential for individuals and businesses
alike. If you are interested in pursuing a career in this field or starting your own e-commerce
business, there are several reasons why studying e-commerce is essential:

i. Understanding the fundamentals: Studying e-commerce will help you understand the
basic principles and concepts of online commerce, such as website design, online
marketing, and digital payments.

ii. Staying ahead of the competition: E-commerce is a highly competitive field, and
staying up-to-date with the latest trends and technologies is crucial to success. By
studying ecommerce, you can gain a competitive edge and stay ahead of the curve.

iii. Developing critical skills: E-commerce requires a diverse range of skills, such as web
development, digital marketing, customer service, and logistics. Studying e-commerce
can help you develop these skills and become a well-rounded professional.

iv. Building a network: Studying e-commerce can also help you build a network of
likeminded individuals and industry professionals, which can be invaluable for career
growth and business development.

Overall, studying e-commerce can provide you with the knowledge, skills, and network needed
to succeed in this exciting and rapidly evolving field.

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

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.

8
 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
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 role.

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
technoorganizational structure involve changes in managerial responsibilities, communication
and information flows and work group structures.

9
1.3 Objective of study of E-Commerce

The primary objective of studying e-commerce is to gain a thorough understanding of the

various aspects of conducting business online. E-commerce refers to the buying and selling
of goods and services over the internet, and studying it can help you achieve the following
objectives:

i. To discover the key factors that influence online buying behavior of consumers in
India.

ii. To identify who are the online shoppers in terms of demography.

iii. To understand the customer awareness on Flipkart.com.

iv. To determine the factors responsible for customer satisfaction.

v. Understanding the online marketplace: E-commerce encompasses a wide range of

online activities, such as online shopping, online payments, digital marketing, and
supply chain management. By studying e-commerce, you can gain a deeper
understanding of the online marketplace and how it operates.

vi. Developing digital marketing skills: E-commerce relies heavily on digital marketing to
attract and retain customers. By studying e-commerce, you can learn about various
digital marketing strategies and techniques, such as search engine optimization (SEO),
social media marketing, and email marketing.

vii. Learning about website design and development: A well-designed and user-friendly
website is essential for the success of any e-commerce business. By studying e-
commerce, you can learn about website design and development and how to create a
website that is optimized for online sales.

viii. Understanding the legal and regulatory environment: E-commerce is subject to a range
of legal and regulatory requirements, such as data privacy laws, intellectual property
laws, and online consumer protection laws. By studying e-commerce, you can gain an
understanding of these requirements and how to comply with them.

ix. Enhancing customer service skills: E-commerce businesses rely heavily on good
customer service to build and maintain customer loyalty. By studying e-commerce, you

10
 can learn about various customer service techniques and strategies, such as live chat,
email support, and social media engagement.

Overall, the objective of studying e-commerce is to develop the knowledge, skills, and
expertise needed to succeed in the online marketplace and to leverage the potential of the
internet to grow and expand businesses.

1.4 Scope of study of E-Commerce

Scope of study of e-commerce: -

The scope of studying e-commerce is vast, and it covers various aspects of online business
operations. Here are some of the key areas that fall under the scope of studying e-
commerce:

i. Online marketplaces: E-commerce involves buying and selling products and services
over the internet. Online marketplaces like Amazon, eBay, and Alibaba have become
dominant players in the e-commerce space, and studying them can provide insights into
their business models and strategies.

ii. Digital marketing: E-commerce businesses rely on digital marketing to attract and retain
customers. Studying e-commerce can help you understand the various digital marketing
channels, such as search engine optimization (SEO), pay-per-click (PPC) advertising,
social media marketing, and email marketing.

iii. Website design and development: E-commerce businesses need well-designed and
userfriendly websites to showcase their products and services. Studying e-commerce
can help you learn about website design and development, including user experience
(UX) design, responsive design, and content management systems (CMS).

iv. Supply chain management: E-commerce businesses need to manage their supply chain
effectively to ensure timely delivery of products to customers. Studying e-commerce
can provide insights into supply chain management techniques, such as inventory
management, logistics, and fulfillment.

v. Online payments: E-commerce businesses rely on secure and convenient online

payment methods to process transactions. Studying e-commerce can help you

11
 understand the various online payment methods, such as credit cards, e-wallets, and
digital currencies.

vi. Legal and regulatory environment: E-commerce businesses are subject to a range of
legal and regulatory requirements, such as data privacy laws, intellectual property laws,
and consumer protection laws. Studying e-commerce can help you understand these
requirements and how to comply with them.

Overall, the scope of studying e-commerce is vast and covers various areas of online
business operations. Studying e-commerce can provide you with the knowledge and skills
needed to succeed in the rapidly evolving online marketplace.

1.5 Limitation of study of E-Commerce

Limitation of study of e-commerce:-

There are several limitations to the study of e-commerce, some of which include:

i. The study is mainly concentrated on Flipkart.com.

ii. The sample of the size will be limited to time and resources.

iii. The information will be collected valid until there is no any technical change or any
innovation.

iv. Limited sample size: As e-commerce is a relatively new phenomenon, it can be difficult
to find large and diverse samples for research. This can limit the generalizability of the
findings.

v. Lack of historical data: As e-commerce has only been around for a relatively short
period of time, there is a limited amount of historical data available for analysis. This
can make it difficult to identify long-term trends and patterns.

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 Data quality issues: E-commerce data can be difficult to collect and analyze due to the
complex nature of online transactions. Data quality issues such as missing data, errors,
and inconsistencies can also affect the accuracy of the findings.

Rapidly changing environment: E-commerce is a rapidly evolving field with new

technologies and trends emerging constantly. This can make it difficult to keep up with
the latest developments and to make accurate predictions about the future.

Lack of standardization: E-commerce is a global phenomenon, but there is a lack of

standardization in terms of how data is collected and reported. This can make it difficult
to compare data across different countries and regions.

vi.

vii.

14

viii. 14
 Chapter – 2

2] Conceptual background and Literature review

2.1 Theoretical study of e-commerce: -

E-commerce, or electronic commerce, is the buying and selling of goods and services over the
internet. It has become an increasingly important aspect of modern business, with more and
more companies and consumers using online platforms for their transactions.

A theoretical study of e-commerce would involve examining the various models and
frameworks that can be used to understand the dynamics of online markets, as well as the
factors that influence consumer behavior and business strategy in this context.

One important model is the technology acceptance model (TAM), which proposes that the
likelihood of individuals adopting new technologies depends on their perceived usefulness and
ease of use. Another model, the diffusion of innovation theory, suggests that the spread of new
technologies is driven by factors such as relative advantage, compatibility, complexity, and
observability.

In addition to these models, research on e-commerce has also explored topics such as trust and
security, social influence, online reviews and ratings, and the role of intermediaries in
facilitating transactions. For example, studies have shown that consumers are more likely to
make purchases when they perceive that a website is secure and trustworthy, and that they are
influenced by the opinions and experiences of others when making decisions.

On the business side, research has examined topics such as pricing strategies, supply chain
management, and the impact of e-commerce on traditional brick-and-mortar retailers. For
example, studies have shown that businesses can use dynamic pricing algorithms to optimize
their pricing strategies in real time, and that e-commerce can lead to increased efficiency in the
supply chain.

Overall, a theoretical study of e-commerce would involve synthesizing and analyzing existing
research on these and other topics to develop a comprehensive understanding of the dynamics
of online markets and the factors that influence their success.

E-commerce, or electronic commerce, is the buying and selling of goods and services over the
internet. As a theoretical study, e-commerce is an interdisciplinary field that encompasses
various domains such as marketing, information technology, economics, and psychology.

One of the central aspects of e-commerce is online shopping, which has been growing
exponentially in recent years. Theoretical studies of online shopping seek to understand
consumer behavior, including the factors that influence purchasing decisions, such as price,
quality, convenience, and trust.

15
Another important area of e-commerce research is online marketing. This includes the study of
various marketing strategies used by online retailers, such as search engine optimization (SEO),
social media marketing, and email marketing. Researchers in this area also explore the impact
of online reviews and ratings on consumer behavior.
Theoretical studies of e-commerce also focus on the technological infrastructure that enables
online transactions, including payment systems, security protocols, and website design.
Researchers in this area seek to identify and address the challenges associated with e-
commerce, such as fraud and privacy concerns.

In addition, e-commerce research explores the impact of digital globalization on international

trade, and how e-commerce is transforming traditional business models. It also examines the
role of government policies and regulations in shaping the e-commerce industry.

Overall, the theoretical study of e-commerce is a vast and multifaceted field that seeks to
understand the complex interplay between technology, consumer behavior, marketing strategies,
and economic factors that underpin the growth of online commerce.

2.2 Literature Review

Keyword search on “E-Commerce adoption in India” “e-business in India”

“E-Commerce and India” and “e-business and India” in various databases like EBSCO,
ProQuest, and Emerald Management Xtra found the following ten E-Commerce/e-business
research articles done in Indian context.

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 ―postadoption‖ stage (Geffen et al, 2003; Venkatesh and
Brown, 2001; Yu et al, 2005

Raven et al. compared India and China’s approaches in adoption of e-business. Based on the
literature survey and secondary data, the study analyses various factors influencing the growth
of e-businesses in the two countries. The factors examined include government policy and
focus, existing technology infrastructure regulatory environment, experience and understanding
of business operations, and culture, among others. The study concludes that China appears to be
ahead of India in the infrastructure, but India is ahead in e-readiness. Further, it states that both
countries are poised for rapidly increasing e-business, however, problems of poverty and
inequality between urban and rural connectivity must be resolved to really take advantage of
ebusiness in both the countries.

16
Malhotra and Singh studied the determinants of Internet banking adoption by banks in India.
Panel data of 88 banks in India covering the financial years 1997–1998 to 2004–2005 was
collected through CMIE (Centre for Monitoring Indian Economy) database. Logistic regression
analysis was used, the dependent variable is categorical with a value of 1 if a bank adopted
Internet banking during the study period and 0 otherwise. Independent variables included in the
study are firm size, firm age, bank deposits ratio, average wages, expenses (fixed assets &
premises), ROA (ratio of average net profits to average assets), market share, average number
of branches, percentage of banks adopted Internet banking.
The results of the study prove that Bank type (Private), firm size, bank deposits ratio, firm age,
market share, average number of branches, percentage of banks adopted Internet banking and
expenses, are found to be significant in adoption decision. Wage and ROA are found to be
insignificant. This study contributes to the empirical literature on diffusion of financial
innovations, particularly Internet banking in Indian context. Most of the study on adoption of
technology was related to developed markets like US and Europe, this study is an important
contribution to evolving literature as it dealt the problem of technology adoption in developing
country context.

Study by Tarafdar and Vaidya examined the factors that determine the organizational
inclination to adopt E-Commerce (EC). The study proposes a framework based on the
qualitative data on four financial firms in India collected through multiple case study design.
Face to face interview was used to collect primary data and existing database, company
documents, press reports and websites are used to collect secondary data. The framework
describes two broad factors—leadership characteristics and organizational characteristics—to
explain the influence of organizational factors on the propensity to employ EC technologies.
The study found that both leadership and organizational characteristic influence EC adoption.

It establishes that leadership characteristics influence adoption of EC technologies in

centralized organization and organizational characteristics influence EC adoption in de-
centralized organization. The study also found that characteristics of Information Systems
professional and organization structure influence EC adoption.

Another study by Tarafdar and Vaidya, analyses organizational and strategic imperatives that
influence Information System (IS) assimilation in Indian organizations. IS assimilation here
referring to the extent to which a system or technology becomes diffused in organizational
processes. The study is based on multiple case study method. Data on nine firms which have
deployed IS was collected through face-to-face structured interview involving middle
managers, senior managers of IS and other departments.

The study examines the nature of the system present—data processing/transaction oriented,
operational, strategic—and how these systems affected key operational processes. Strategic
imperatives are examined by analyzing the environmental factors—presence or absence of
government regulation, pressure from customers, suppliers and competitors, and strategic stance
—whether product and process changes, and the consequent IS deployment were proactive or
reactive Organizational imperatives were investigated by qualitatively assessing six factors—
top management support; IS department knowledge of business, technology and involvement in
IS deployment, IT literacy of managers, management style; presence of IT champions and
availability of IT resources. Data was analyzed across-case and within-case. The study identifies
three categories of organizations—innovative IS users, enlightened IS users and reluctant IS

17
users—with respect to IS assimilation, and describes strategic and organizational factors
characteristics of each group. The study also traces the evolution of the IS application portfolio
in each of the studied firms and analyses accompanying changes in strategic and organization
factors. In short, the paper presents an integrated and first level analysis of strategic and
organizational imperatives that have influenced the assimilation and evolution of IS in Indian
organizations.

Viswanathan and Pick examined the issue of e-commerce in India and Mexico from the
framework of developing countries as suggested by Tallon and Kraemer. The framework
included critical factors that might impact the diffusion of e-commerce. The factors are
government policy, legal framework, technology infrastructure, relationship with developed
economies and extent of e-commerce usage by individual, corporate and government.

The study’s primary focus is on India. Mexico is analyzed more briefly, and compared with
India based on common international datasets. The analysis and the data presented in this paper
represent a synthesis of data from secondary research and data from interviews conducted with
senior executives in the IT industry in India and Mexico. The study suggests that substantial
efforts must be made to invest in telecommunications infrastructure, and to create a culture of
electronic payments and e-commerce usage that will support economic growth.

Dasgupta and Sengupta paper on e-commerce in Indian insurance industry discusses the
features of e-insurance in comparison with the traditional offline insurance service. The authors
put forth that e-insurance offers benefits such as reduction in search cost and hidden cost, price
comparison for customers, and benefits such as opportunity to have niche market, first mover
advantage and product bundling for insurance companies going online. Further, it discusses that
status of e-insurance in India is still formative stage, but stands to gain particularly from the
rural markets since the availability of insurance agent is very less compared to urban markets.
The study is conceptual in nature and offers insights based on market reports and data from
secondary sources.

Vishwasrao and Bosshardt used a theoretical framework developed by Katz and Shapiro
(1987) to examine the ongoing technology adoption behavior of foreign owned and domestic
firms. Firm level data on 1400 medium to large Indian firms from 1989 to 1993 was used to test
the model. Probit and Poisson estimation was used to analyze the data and model. Variables
included in the study are no. of collaboration, nature of collaboration—foreign or otherwise,
firm age, total assets, total sales, net profit, Herfindahl index, R&D expenditures by industry as
percentage of sales. Results of the study throw some interesting light on technology adoption
behavior of foreign firms. In general, it shows that liberalization happened in India after 1991
has positive impact on technology adoption, but it is found that foreign firms are quick to take
advantage than domestic firms. R&D expenditure is found to be not significant for technology
adoption, firm size (large firms are more likely to adopt) and age of firm are found to be
significant. Also, it is found that foreign firms adopt new technology when profits are down,
and doesn’t adopt technology in competitive markets.

Lal studied the determinants of adoption of Information Technology (IT) in

India. The study was based on 59 electrical and electronic goods manufacturing firms situated
in NOIDA. Semi-structured questionnaire was used to collect the data. The study examined the
factors influencing the degree of IT adoption by firms. The factors included are entrepreneur
characteristics measured by entrepreneur’s qualification, importance given to market share,

18
R&D and quality consciousness, firm’s international orientation factors measured by import and
export intensity, work force skill and firm size. The sample firms were divided into four
categories depending on their intensity of IT use, these are: (1) non-IT firms (firms that do not
use IT tools);
(2) low-level of IT users (firms using only MIS for office automation);
(3) moderate level of IT users (these firms have adopted CAD/CAM in addition to MIS);
and
(4) high level of IT using firms (firms that have adopted FMS in addition to CAD/Cam
and MIS).
Ordered probability model (PROBIT) was used since the dependent variable is categorical and
follows ordinal ranking scale. The estimates were obtained by maximum likelihood method.
The study found that entrepreneur’s qualification, importance given to market share, R&D,
export intensity, work force skill and firm size influence the degree of adoption of IT by the
firms.

19
 Chapter – 3

3] Profile of Organization

India is the second fastest growing economy in the world. It is third largest economy in the
world in terms of GDP and fourth largest economy in terms of Purchasing Power Parity. India
presents a huge opportunity to the world at age, to use as a hub. Standing on the threshold of a
retail revolution and witnessing a fast-changing retail landscape, India is all set to experience
the phenomenon of global village.

India is the “promised land” for global brands and Indian retailers A “Vibrant economy”. India
tops in the list of emerging market for global retailer and India’s retail sector is expanding and
modernizing rapidly in line with India’s economic growth. The future is promising; the market
is growing; government policies are becoming more favorable and emerging technologies are
facilitating operations.

Retailing in India is gradually inching its way toward becoming the next boom industry. The
whole concept of shopping has altered in terms of format and consumer buying behavior,
ushering in a revolution in shopping in India. Modern retail has entered India as seen in
sprawling shopping centers, multi-storied malls and huge complexes offer shopping,
entertainment and food all under one roof. The Indian retailing sector is at an inflexion point
where the growth of organized retailing and growth in the consumption by the Indian
population is going to take a higher growth trajectory. The Indian population is witnessing a
significant change in its demographics.

A large young working population with median age of 24 years, nuclear families in urban areas,
along with increasing working-women population and emerging opportunities in the services
sector are going to be the key growth drivers of the retail sector in India. Retailing in India is
evolving rapidly, with consumer spending growing by unprecedented rates and with increasing
no of global players investing in this sector. Organized retail in India is undergoing a
metamorphosis and is expected to scale up to meet global standards over the next five years.

India’s retail market has experienced enormous growth over the past decade. The most
significant period of growth for the sector was between year 2000 & 2006, when the sector
revenues increased by about 93.5% translating to an average annual growth of 13.3%.The
sectors growth was partly a reflection of the impressive Indian economic growth and overall
rise in income level of consumers.

Apparels and consumer durables are the fastest growing vertical in the retail sector. Mobile
phone as a product category has witnessed the highest growth in the consumer demand amongst
all retail products offering, with increasing penetration of telecommunication in towns and
villages. The telecommunication sector has been adding on an average 5 million new users
every month. The other product categories are gaining traction predominantly in the urban areas
and emerging cities, with increasing average income and spending power of young urban India.

20
3.1 Background of Organization

a) Background of organization of e-commerce: -

E-commerce refers to the buying and selling of goods and services over the internet. E-
commerce has become an important part of modern business and has led to the creation of
various organizations that facilitate online transactions.

E-commerce, or electronic commerce, refers to the buying and selling of goods or services over
the internet or other electronic networks. The organization of e-commerce businesses can vary
widely depending on the specific industry, products or services being offered, and other factors.

There are several types of e-commerce organizations, including:

i. Online marketplaces: These are platforms that connect buyers and sellers, allowing
them to conduct transactions. Examples include Amazon, eBay, and Alibaba.

ii. Online retailers: These are companies that sell products directly to consumers over the
internet. Examples include Zappos, ASOS, and Wayfair.

iii. Payment gateways: These are organizations that facilitate online payments by
processing transactions between buyers and sellers. Examples include PayPal, Stripe,
and Square.

iv. Logistics and delivery companies: These are organizations that handle the
transportation and delivery of products purchased online. Examples include FedEx,
UPS, and DHL.

v. E-commerce software providers: These are companies that provide software and tools
to businesses to help them set up and manage their e-commerce operations. Examples
include Shopify, Magento, and WooCommerce.

vi. Digital marketing agencies: These are organizations that provide marketing services to
help e-commerce businesses promote their products and reach customers online.
Examples include HubSpot, Moz, and Neil Patel Digital.

vii. Sole proprietorship: In this structure, the e-commerce business is owned and operated
by a single individual. This is a common structure for small e-commerce businesses,
particularly those that are just starting out.

viii. Partnership: A partnership involves two or more individuals who own and operate the
ecommerce business together. Partnerships can be general, where all partners share in
the profits and losses equally, or limited, where certain partners have more limited
roles and responsibilities.

21
 ix. Corporation: A corporation is a legal entity that is separate from its owners. In this
structure, the e-commerce business is owned by shareholders who elect a board of
directors to oversee the company's operations. Corporations can be either publicly
traded or privately held.

x. Limited liability company (LLC): An LLC is a hybrid structure that combines elements
of a partnership and a corporation. Like a corporation, an LLC offers its owners limited
liability protection, but it is also more flexible in terms of management and taxation
than a corporation.

xi. Regardless of the specific organizational structure, successful e-commerce businesses

typically have a clear business plan, a strong online presence, and efficient and
effective systems in place for managing orders, inventory, shipping, and customer
service.

Overall, the e-commerce industry is constantly evolving, with new organizations and
technologies emerging to meet the changing needs of consumers and businesses in the digital
age.

b) A Brief History of the Online Sector:

The e-commerce and Internet sector has evolved rapidly, going through several distinct stages
since its beginnings in the 1970s:

The Internet is born: First, there were the early days, when the Internet was seen by many as a
realm for techies only, one that would produce few, if any, and commercial enterprises. Initially
designed in 1973, the Internet was a series of communication protocols written by Vinton Cerf
as part of a project sponsored by the U.S. Department of Defense’s “Defense Advanced
Research Projects Agency” (DARPA). The first demonstration of a three-network Internet
protocol-based connection occurred in November 1977. Eventually, a well-enabled Internet was
rolled out in 1983, primarily as a failsafe method of defense communications and as a means for
researchers at various universities to communicate.

The Web is Created: Next, the World Wide Web and the coding language of HTML were
conceived in 1989 and implemented between 1990 and 1993 by Tim Berners-Lee, enabling a
never-ending hyperlinked cyber world where sharing unlimited data became user-friendly
thanks to the magic of linked pages.

The Boom Ensues: Starting in 1993 and 1994, entrepreneurs and financiers realized that
hyperlinked, electronically posted data could be commercialized with vast, global potential. A
dramatic revolution in retailing, publishing and entertainment was visualized, one in which
consumers and business people alike would eagerly pay for the convenience of online shopping,
trading and viewing of published data. An economic boom ensued, the likes of which hadn’t
been seen since the beginnings of earlier technological breakthroughs: electricity, the railroad,
the telephone, the automobile and the passenger-carrying airliner.

22
Thousands of hopeful new businesses were launched. Capitalization for these new
Internetenabled companies ranged from cash-strapped ventures launched with Visa card credit
lines, to companies like Web Van that received vast sums from professionally managed venture
capital firms only to fail miserably. Roughly 6,000 new firms of significant size raised a
cumulative total of more than $100 billion in venture capital in the boom period (1994-2000).
About 450 of these companies sold their stock to the public via IPOs (initial public offerings).
Stock markets soared and instant billionaires were made. Individuals and families from all
walks of life bet their savings on technology stocks and watched their wealth rise quickly.
Venture funds that cashed out early reaped phenomenal gains, and financiers easily found
additional investors for new venture capital pools. The NASDAQ index of stocks rose to 5,000
by early in the year 2000, and the Chairman of the Federal Reserve warned of “exuberant
optimism.” Some said this boom couldn’t last— others said it was the beginning of a “new
economy” that would last forever.

The Bust: In mid-2000 the Internet industry entered a bleak and dreary phase after the
NASDAQ collapsed in March, bringing the entire sector to its knees. Hundreds of thousands of
people lost their jobs. Stock portfolio values plummeted. Thousands of firms closed their doors,
filed bankruptcy, downsized, or were scooped up at bargain prices by competitors.

Sellers of hardware, software, consulting, and telecommunications services suffered mightily.

Entrepreneurs found it nearly impossible to raise funds to launch or sustain their businesses.

The dream of a “new economy” became a nightmare for some—profits still matter; business
cycles still happen. The Reality Phase: By early 2003, this sector’s dark clouds were abating,
and a “reality phase” was taking shape. Well-conceived, Internet-based businesses were proving
their value. Consumers had become devoted fans of buying over the Internet. Businesses of all
types were finding that the Internet creates true operating efficiencies and drives profitability.

For example, while most of the airline industry suffered terribly in recent years, value-based
discount airlines southwest and JetBlue enjoyed superior financial performance, in no small part
because of their use of e-commerce to efficiently book reservations and sell tickets online.
“Efficiency” is the most important factor in the e-commerce and Internet sector’s newfound
success. Consumers find the Internet to be a terrific way to efficiently expend their shopping
and banking efforts. Travelers find the Internet to be an efficient way to book hotels rooms and
airplane seats. Corporate procurement managers find the Internet to be the most efficient way to
purchase needed goods and inventory. Hundreds of millions of people worldwide find e-mail,
instant messaging and VOIP telephony to be the most efficient ways to communicate.
Low Costs Fuel the Steady Global Growth Phase: Today, access to fast Internet, both wired and
wireless, is available at bargain prices in a growing footprint across the globe. Even in relatively
undeveloped nations, both consumers and businesses have grown to rely on the Internet for
everyday needs. The “second billion” set of users worldwide has been reached, and the third
billion is clearly in sight over the mid-term, as cheaper devices continue to proliferate. Mobile
computing is accelerating at blazing speed thanks to inexpensive cell phone plans offering
enhanced Internet access.

Meanwhile, the cost of developing and maintaining web sites has plummeted, opening the door
to millions of self-funded entrepreneurs, and making it easier for venture capital firms to fund
start-ups using low amounts of cash. Trends such as open software and cloud computing, along

23
with modular development tools, have made it easier, faster and cheaper to start sophisticated
web sites.

3.2 Activities of the Organization

a) Activities of organization of e-commerce: -

The activities of an organization involved in e-commerce can vary depending on the specific
business model and industry. However, some common activities include. The activities of an
ecommerce organization can vary depending on its size, type of products or services offered,
and business model. However, some common activities that most e-commerce organizations
perform are:

i. Product sourcing: The organization needs to identify and source the products they want
to sell through their e-commerce platform. This may involve working with suppliers or
manufacturers to ensure that they have a reliable supply chain.

ii. Website design and development: The organization needs to create a user-friendly and
responsive e-commerce website to showcase their products and services. This includes
designing and developing the website, creating product pages, setting up payment
gateways, and ensuring that the website is secure.

iii. Marketing and advertising: The organization needs to promote their products and
services through various marketing channels, such as social media, search engine
optimization, email marketing, and paid advertising. This involves creating compelling
content, targeting the right audience, and measuring the success of campaigns.

iv. Order fulfillment and shipping: The organization needs to manage the order fulfillment
process, which includes processing orders, packaging products, and shipping them to
customers. This requires efficient inventory management, order tracking systems, and
shipping logistics.

v. Customer service: The organization needs to provide high-quality customer service to

ensure customer satisfaction and loyalty. This involves responding to customer
inquiries and complaints promptly, providing accurate information, and resolving
issues quickly.

vi. Data analysis and reporting: The organization needs to collect and analyze data related
to sales, customer behavior, and website traffic to make informed decisions and
improve their e-commerce operations. This involves using analytics tools, generating
reports, and making data-driven decisions.
24
 vii. Continuous improvement: The organization needs to continuously improve their
ecommerce operations to stay ahead of the competition and meet changing customer
needs. This involves monitoring trends, testing new strategies, and adapting to new
technologies.

viii. Website development and maintenance: Developing a user-friendly and visually

appealing website that showcases the products or services is crucial for any e-
commerce organization. This involves designing, coding, testing, and maintaining the
website.

ix. Product/Service sourcing: Depending on the business model, an e-commerce

organization may source products from manufacturers, wholesalers, or other suppliers.
In some cases, the organization may also offer its own services.

x. Inventory management: E-commerce organizations need to maintain adequate stock

levels to ensure timely delivery to customers. They also need to track inventory, handle
returns, and manage the warehouse or distribution center.

xi. Online marketing: E-commerce organizations need to promote their website and
products through various digital marketing channels such as search engine
optimization, social media advertising, email marketing, and influencer marketing.

xii. Payment processing: E-commerce organizations need to have a secure and reliable
payment processing system to facilitate online transactions.

xiii. Customer service: E-commerce organizations need to provide efficient and effective
customer service to handle inquiries, complaints, and returns.

xiv. Logistics and delivery: E-commerce organizations need to ensure timely delivery of
products to customers. This involves partnering with logistics providers and managing
the shipping process.

xv. Data analysis: E-commerce organizations need to track and analyze customer behavior,
sales data, and website traffic to make informed decisions and improve business
performance.

Overall, e-commerce organizations need to be flexible, agile, and customer-centric to succeed in

the highly competitive digital marketplace.

b) Online Shopping in India

Online shopping is quite common these days in the developed world than it was about 5 years
ago but it is not the same in India for its own set of reasons. In developed economies consumers
find the worldwide web a great place for bargain-hunting, with most goods available at lower
prices than in a bricks-and-mortar store. But convenience appears to be an even bigger

25
attraction as revealed in surveys because most online shoppers find the crowded high street too
stressful.

Though online shopping has witnessed growth in India but it is still not pervasive like the west
and the growth is also limited to certain areas like online travel booking and perhaps stock
trading (which is not pure e-commerce). The main reason why shoppers in India are not willing
to shop online is that they do not get any real value or incentive. Also, they are wary about
fraud, delivery and customer service and their fears are not imaginary.
Online shopping India sites offer a wide variety of products to choose according to your tastes
and budget. Shopping online in India always offer benefit of price as online stores do not have
to spend on building and maintaining showrooms. In addition, heavy discounts are offered on
various popular products to attract worldwide customers to one site. Some online shopping
India sites also offer online coupons, gift certificates and promotional codes as special offers
through which the products prices are reduced to a great extent. Online shopping in India is
easy and quick as wide variety of products are categorized in a very convenient manner, so that
it will be easy for you to find the exact product you want.

One of the biggest advantages of online stores is that they provide complete and specific
information like, product description, specification, model, size, colors, prices, customer
reviews and various other details about each and every product offered by them. The best part is
that they are available 24*7; therefore, you can shop at your own convenience.

Today more and more people prefer to buy products from online stores in India, as you can find
wide categories of products right from gadgets, clothes, footwear, furniture, jewelers, books,
music, and gifts to many more. So, whichever product you wish to buy, you simply need few
clicks and the product will be delivered to your doorstep.

3.3 Growth and development of the organization

Growth and development of organization of e-commerce: -

The growth and development of an e-commerce organization can be attributed to several

factors, including technological advancements, consumer behavior, and effective marketing
strategies. Here are some key elements that contribute to the growth and development of an e-
commerce organization. The growth and development of an e-commerce organization can be
achieved through several key factors. These include:

i. User-friendly website: A user-friendly and responsive website is essential for e-

commerce success. The website should be easy to navigate, fast-loading, and optimized
for search engines.

ii. Mobile optimization: With the increasing number of mobile users, it is essential for
ecommerce organizations to optimize their website for mobile devices to reach a larger
audience.

26
iii. Effective marketing strategies: E-commerce organizations must employ effective
marketing strategies to attract potential customers, such as social media advertising,
email marketing, and SEO.

iv. Customer service: Providing excellent customer service is crucial for e-commerce
success. Offering multiple support channels and responding quickly to customer queries
can help build a loyal customer base.

v. Personalization: Personalized shopping experiences can enhance customer engagement

and increase sales. E-commerce organizations can leverage customer data to offer
personalized product recommendations, discounts, and promotions.

27
28
 vi.
Inventory management: Effective inventory management is essential for e-commerce
success. A streamlined inventory management system can help prevent stockouts and
improve the overall customer experience.
vii.
Logistics and shipping: E-commerce organizations must ensure timely and reliable
delivery of products to customers. Partnering with reputable shipping providers and
optimizing shipping processes can help improve customer satisfaction.
viii.
Market Research: E-commerce organizations should conduct market research to identify
the needs and preferences of their target audience. This can help them to develop
products and services that meet the needs of their customers and remain competitive in
ix.
the market.

User Experience: Providing a seamless and user-friendly online shopping experience is

essential for the growth and success of an e-commerce organization. This can be
achieved by optimizing the website for mobile devices, ensuring fast loading times, and
x. providing easy navigation.

Product Range: E-commerce organizations should offer a wide range of products to

meet the needs of their customers. This can help to attract new customers and retain
xi. existing ones.

Marketing: Effective marketing strategies can help to increase the visibility of the
ecommerce organization, attract new customers, and retain existing ones. This can
xii. include SEO, social media marketing, email marketing, and paid advertising.

Customer Service: Providing excellent customer service is crucial for the growth and
development of an e-commerce organization. This includes providing prompt and
helpful responses to customer inquiries, addressing customer concerns and complaints
xiii. promptly, and offering refunds or exchanges when necessary.

Technology: Investing in the latest technology and software can help e-commerce
xiv. organizations to streamline their operations, improve efficiency, and reduce costs.

The growth and development of an e-commerce organization require a focus on

providing a high-quality customer experience, offering a wide range of products,
effective marketing, and leveraging technology to improve efficiency and reduce costs.

27
 Chapter – 4

4] Research Methodology

4.1 Nature of Data

Nature of data of e-commerce :

E-commerce data can vary depending on the specific platform and industry. However, in
general, e-commerce data typically includes information related. The nature of data in
ecommerce can vary depending on the type of e-commerce business and the specific data
being collected. However, some common types of data in e-commerce include:

i. Customer data: This includes personal information such as name, address, email,
and payment information.

ii. Transaction data: This includes information on the products or services purchased,
order value, payment method, and shipping information.

iii. Website analytics data: This includes data on website traffic, user behavior, and
conversion rates.

iv. Inventory data: This includes data on product availability, stock levels, and reorder
points.

v. Marketing data: This includes data on marketing campaigns, customer engagement,

and conversion rates.

vi. Customer service data: This includes data on customer inquiries, complaints, and
support tickets.

vii. Fraud detection data: This includes data on fraudulent activity, such as chargebacks
and identity theft.

viii. Supply chain data: This includes data on suppliers, shipping partners, and inventory
management.

ix. Sales: This includes data on the products sold, the quantity of each product sold,
and the total revenue generated from sales.

30
x. Customer information: This includes data on customer demographics, behavior, and
preferences. This data can include information such as age, gender, location, purchase
history, and search history.

xi. Website and app data: This includes data related to website and app usage, such as page
views, click-through rates, bounce rates, and conversion rates.

xii. Inventory management: This includes data related to inventory levels, stockouts, and
reorder points.

xiii. Payment processing: This includes data related to payment methods used by customers,
transaction amounts, and payment processing times.

xiv. Shipping and logistics: This includes data related to shipping times, delivery methods,
and shipping costs.

Overall, e-commerce data is typically very rich and varied, and can provide valuable insights
into customer behavior, market trends, and business performance.

4.2 Research Design

The type of design being used for making this project is Meta-Analysis Design.

Meta-analysis is an analytical methodology designed to systematically evaluate and

summarize the results from a number of individual studies, thereby, increasing the overall
sample size and the ability of the researcher to study effects of interest.

a) Meta-analysis design for e-commerce:-

Meta-analysis is a statistical technique used to combine and analyze data from multiple
studies on a particular topic. In the context of e-commerce, a meta-analysis could be
designed to investigate the effectiveness of various e-commerce strategies or interventions.

Here are some steps to consider when designing a meta-analysis for e-commerce:

i. Define the research question: Clearly define the research question that the
metaanalysis will address. For example, you might want to investigate the impact of
free shipping on conversion rates in e-commerce.

ii. Conduct a comprehensive literature search: Conduct a thorough search of relevant

academic journals, conference proceedings, and other sources of information to
identify studies that address your research question.
 iii. Establish inclusion criteria: Develop a set of inclusion criteria that will help you
determine which studies should be included in the meta-analysis. These criteria
might include factors such as the study design, sample size, and outcome measures.

iv. Extract data from selected studies: Extract relevant data from each of the selected
studies. This might include data on the study design, sample size, interventions or
strategies used, and outcomes.

v. Analyze the data: Use statistical techniques to analyze the data and determine the
effect size of the interventions or strategies being investigated. This might involve
calculating a weighted average effect size across studies.

vi. Interpret the results: Interpret the results of the meta-analysis in the context of the
research question. Consider the limitations of the studies included in the meta-
analysis and any potential sources of bias.

vii. Draw conclusions and make recommendations: Draw conclusions based on the
results of the meta-analysis and make recommendations for future research or e-
commerce strategies.

Overall, a well-designed meta-analysis can provide valuable insights into the effectiveness
of various e-commerce strategies and interventions, and help guide future research and
business decisions.

• Statement of the Problem

The study is being conducted for Online Shopping in Kankurgachi Area of Kolkata City
only, to find out the customer preferences in choosing Flipkart. It is required to find out the
preferences based on certain aspects (Income, levels selection of products, satisfaction level
of customers).

4.3 Research Tools and Techniques

Research tools and techniques for e commerce

There are several research tools and techniques that can be used in e-commerce research.
Here are some of the most commonly used ones:

i. Surveys: Surveys are a common research tool used in e-commerce to collect data from
customers and other stakeholders. Surveys can be conducted online, by mail, or in person,
and can include questions on customer demographics, preferences, and behavior.

32
 ii.
Interviews: Interviews can be used to collect qualitative data from e-commerce
stakeholders, such as customers, employees, and industry experts. Interviews can be
conducted in person, by phone, or online, and can provide valuable insights into customer
needs and preferences, as well as industry trends and best practices.

iii. Observational studies: Observational studies involve observing e-commerce customers

and their behavior in real-life situations. Observational studies can provide insights into
iv. customer behavior, preferences, and decision-making processes.
A/B testing: A/B testing is a research technique used to compare two versions of a
website or mobile app to see which one performs better in terms of user engagement and
conversions. A/B testing involves randomly assigning users to one of two groups and
testing different variations of a website or app on each group.
v.
Data analytics: Data analytics involves analyzing large amounts of data collected by
ecommerce businesses to identify trends, patterns, and insights. Data analytics can
involve using tools such as Google Analytics, Tableau, or Excel to visualize and analyze
data on customer behavior, website traffic, sales performance, and more.
vi.
Focus groups: Focus groups are a research technique that involves bringing together a
small group of e-commerce customers or stakeholders to discuss a specific topic or issue.
Focus groups can provide in-depth insights into customer needs and preferences, as well
as feedback on new products or services.
vii.
interviews: Interviews are a qualitative research technique that involves asking open-
ended questions to gather detailed information on specific topics related to e-commerce.
Interviews can be conducted in person, by phone, or online.
viii.
Observational research: Observational research involves observing and recording
consumer behavior in natural settings, such as a retail store or e-commerce website. This
method can provide insights into how consumers interact with e-commerce platforms and
products.
ix.
A/B testing: A/B testing involves testing different versions of an e-commerce website or
product to see which version performs better. This method can help optimize user
experience and improve conversion rates.
x.
Big data analysis: Big data analysis involves analyzing large volumes of data generated
by e-commerce platforms to identify patterns and insights. This method can be used to
study consumer behavior, market trends, and other aspects of the e-commerce industry.
xi.
Content analysis: Content analysis involves analyzing text and other media content
related to e-commerce, such as product reviews or social media posts. This method can be
xii. Eye-tracking studies: Eye-tracking studies involve using specialized equipment to track eye
movements as consumers interact with e-commerce platforms. This method can provide
insights into how consumers visually process and navigate e-commerce websites and
products

Overall, the choice of research tool or technique will depend on the specific research
question, the type of data being collected, and the resources available

34
 Chapter – 5

5] Data Analysis and Interpretation

5.1 Table Representation

E-Commerce

Flipkart was founded in October 2007 by Sachine Bansal and Binny Bansal. It is one of
India’s leading E-commerce marketplaces and is headquartered in Bengaluru. The company
initially started as an online bookstore. Later, it also started selling other items such as
movies and mobile phones. Now the company offers more than 80 million products spread
across more than 80 categories. It has the capacity to delivery eight million shipments per
month.

Flipkart Group raised an additional US$ 1.2 billion from Walmart-led investor group in July
2020. Its valuation has reached US$ 24.9 billion post equity round. Flipkart has pledged to
completely transition to electric vehicles (EVs) by 2030 across its E-commerce value chain
by partnering with Climate Group’s global electric mobility initiative, EV100.

Here is a table representing the information about history of FlipKart.

YEAR MILESTONE
2007 • Founded in 2007 and launched books.

2010 • Launched Music, Movies and Mobiles category.

• Launched cash on delivery. Flipkart also launched its

logistic arm, Ekart.

2011 • Launches digital wallet. Delivery to more than 600 cities in

India.

2012 • Launched lifestyle and fashion portfolio. Launched

electronics private label DigiFlip.

2013 • Launched PayZippy, an online payments solution for

merchants and customers.

• Sold 100,000 books in a single day.

2014 • Flipkart became the first Indian internet retailer to register

US$ 1.9 billion gross merchandise value (GMV).

35
 • Acquired fashion e-seller Myntra.

2016 • Crossed 100 million registered customers.

Acquire Unified Payment Interface (UPI) based startup

• PhonePe. It also Launched PhonePe, India’s first UPI
based app.

2017 • PhonePe crosses 10 million download on Google

Playstore.

Softbank Vision Fund invested in Flipkart after which

• Flipkart had in excess of US$ 4 billion of cash on its
balance sheet

2018 • Walmart acquired 77% stake in Flipkart for Rs. 111,824

crores (US$ 16 billion)

Launched fund to invest in early stage start-ups to seed

• innovation in areas related to E-commerce ecosystem

2019 • Launched smart assistive feature called Flipkart Saathi

•
Launched its online grocery store, ‘Supermart’, in Mumbai

• Flipkart signed memorandum of understanding (MoU)

with the Government of Jharkhand to launch Flipkart
SAMARTH

Flipkart brought US brand Nautica onboard to tap Indian

• fashion market

36
2020 • On October 23, Flipkart acquired a 7.8% stake in
Aditya Birla Fashion and Retail, a subsidiary of the
Aditya Birla Group, for Rs. 1,500 crore (US$ 203.8
million).
•
Flipkart recorded 110 order placements per second during
their annual Big Billion Days Sale event in

October. The company stated that >50% orders were

from Tier III cities and beyond.

•
Flipkart partnered with PayTM for its annual Big
Billion Days Sale event, offering customers the
convenience of making payments directly through the
application with the bonus of receiving PayTM
cashbacks over and above Flipkart discounts.
•
On September 08, 2020, Flipkart signed an MoU with
the Government of Jharkhand to onboard Jharkhand’s
artisans, weavers and craftsmen onto ‘Flipkart
Samarth’—an initiative aimed at enabling and
handholding craftsmen from across India to set up an
online business.

•
Flipkart started wholesale e-commerce service in India.

•
Flipkart aims 100% transition to electric vehicles in next
10 years.

•
On July 09, 2020, Flipkart Group bought a minority
stake in Arvind Youth Brands, a subsidiary of Arvind
Fashions Ltd (AFL), for Rs. 260 crore (US$ 36.88
million)

Introduced voice assistant to help customers buy

• groceries

2021 • In December 2021, Flipkart and Walmart invested US$

145 million in Ninjacart for its online grocery push.

37
 •
In December 2021, the government and Flipkart have
signed a memorandum of understanding to increase
access to Self-Help Groups.

• In November 2021, Rural development ministry ties up

with Flipkart to sell products made by artisans.

•
In October 2021, Flipkart's Big Billion Days report
shows a 55% increase in new sellers and a 1.3x increase
in kiranas.
In September 2021, Flipkart launched a programme to
• spot and build direct-to-consumer (D2C) brands on its
platform through a service-fee model.

•
In September 2021, Flipkart announced to create direct
seasonal employment for >115,000 people, of which
15% comprise women and people with disabilities.
•
In June 2021, Flipkart announced its partnership with
the Telangana government to deploy drones to deliver
medical supplies in remote areas amid the COVID-19
pandemic.

•
In June 2021, Flipkart wholesale joined forces with Ace
Turtle, an omnichannel enablement platform, to secure
licensing rights for Toys“R”Us and Babies“R”Us.

•
In June 2021, the company added a new fulfilment centre
(FC) in Dankuni, West Bengal. The FC is spread across
2.2 lakh sq. ft. and has a potential to create ~3,500 direct
jobs.

•
Flipkart signed a MoU with Jharkhand government and
Federation of Indian Chambers of Commerce and
Industry (FICCI) to build infrastructure and industrial
development, including social development.

2022 In May 2022, Flipkart’s pay later credit facility crossed 6

• million users in 7 months.

38
 •
In March 2022, Flipkart launched its third fulfilment
centre in Amta at West Bengal’s Howrah district.

5.2 Graphical Representation

Flipkart has launched its own product range under the name "digiflip", Flipkart also recently
launched its own range of personal healthcare and home appliances under the brand "citron".
During its initial years, Flipkart focused only on books, and soon as it expanded, it started
offering other products like electronic goods, air conditioners, air coolers, stationery supplies
and life style products and e-books. Legally, Flipkart is not an Indian company since it is
registered in Singapore and majority of its shareholders are foreigners Because foreign
companies are not allowed to do multi- brand e-retailing in India, Flipkart sells goods in India
through a company called was retail. Other third-party sellers or companies can also sell goods
through the Flipkart platform.

Flipkart now employs more than 15000 people. Flipkart allows payment methods such as cash
on delivery, credit or debit card transactions, net banking, e-gift voucher and card swipe on
delivery. Flipkart is presently one of the largest online retailers in India, present across more
than 14 product categories & with a reach in around 150 cities and delivering 5 million
shipments per month

Here we will be discussing an End-to-End Machine Learning Case Study on Flipkart Dataset.
Descriptive Analytics and NLP model to predict category by the description of the product

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Figure 1 :
From above figure 1, it can be concluded that :

• 85% of population prefer online shopping

• While remaining 15% do not prefer online shopping, they prefer retail shopping.

Figure 2 :

The above Figure 2, show the occupation of customer who were taken as samples for the
sample study. Analyzing the same we could conclude the following:

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 • 5% of samples were Professionals
• 24% of samples were Self Employed
• 26% of samples were from Service Sector
• 35% of samples were Students

• 10% of samples were others

Figure 3 :

Above figure 3, shows when the respondents were asked that why they prefer shopping on
FlipKart over other shopping sites :

• 50% said that FlipKart provided them better and prompt service
• While 30% of them said that they get wide variety of options on FlipKart
• Another 15% said that they get products in right price
• While remaining 5% said that they get better quality products.

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Figure 4:
The above figure 4 , shows :

• 80% of the respondents show that they have excellent first time experience with
FlipKart

• While 15% said they overall good experience

• The remaining said that they have average and bad experience while shopping first
time with FlipKart.

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Figure 5 :
The above Figure 5, clearly shows that :

• 90% of respondents feel that shopping online is a safe affair

• While 10% among them are still conservative and avoid shopping online due to fear of
quality of products and payment options.

Figure 6:
From the above figure 6, it cab analyzed that;-

• 95% of respondents are aware of FlipKart

• Only 5% do not know about it.

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Figure 7 :
Above figure 7 shows that :-

• 90% among the respondents will recommend their friends and family members to shop
with FlipKart
• While 10%among them said that they will not.

Figure 8 :
The above figure 8, shows the analysis of the consumer’s choice of E-COMMERCE Website
of
:
• 45% respondents prefer FlipKart
• 15% respondents prefer Amazon
• 10% respondents prefer Snapdeal • 10% respondents prefer others websites
• While 205 do not use E-Commerce.
Chapter – 6

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6] Summary of Funding and Suggestion and Conclusion

6.1 Findings

i. There is not much difference in gender for using online shopping.

ii. Students and salaried persons are most frequent users of Flipkart.

iii. Frequency of purchase for electronics, books and music, apparels and accessories are
more in Flipkart.

iv. 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.

v. Highly discounted products got out of stock quickly, since customers purchased it as
soon as they could when they see high discount on good featured product.

vi. The services provided by Flipkart are good and even more scope of development is
there for increasing the customer strength.

vii. Digital marketing techniques like search engine marketing, links providing other
website and advertisement also functioned well for promotion of this website.

viii. Fast delivery is one of best service Flipkart is providing.

ix. Different payment options available in Flipkart made customers more satisfied and
comfort for paying while purchasing product.

x. Customers feeling more secured when purchasing through Flipkart because of

different policies and services they have.

xi. In comparison with competitors, Flipkart is charging free shipping for the purchase
of300 plus rupees, while others free ship the service without any barrier.

xii. Out of stock is the main issue faced by Flipkart.

xiii. Most of customers have good experience with Flipkart while purchasing products.

xiv. Most of them are satisfied with the services of Flipkart and so that they succeed in
retaining the customers.

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 xv. Advertising is an important way to have the brand and products familiar to
consumers.

xvi. Convenience and time saving are two important factors that customer looking for
while purchasing through online.

6.2 Suggestions

i. Flipkart 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.

ii. Delivery services can be improved mainly in rural areas by selecting appropriate
courier service which has services in customer area for dispatching an item.

iii. Can make free delivery to all priced products.

iv. Can include more coupon codes and gift vouchers for increasing the traffic of the
customers.

v. Out of stock items can made available as soon as possible and intimate the needed
customers.

vi. Should look for International/ Overseas markets or Neighboring Countries.

vii. Critical mass of Internet users – Internet users in India is increasing at increasing rate,
so Flipkart 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.

viii. Should clearing focus on the Growing Online Apparel business & it can diversify into
apparel category either organically or inorganically by acquiring other portals.

ix. 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.

x. Should comprehensively invest into E-CRM & online reputation management.

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 xi. Logistics & Supply Chain: can continuously aim to reduce the delivery time cycle.

xii. 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.

6.3 Conclusion

i. The thorough study is based on the consumer behavior 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.

ii. The Overall Brand Value of Flipkart 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.

iii. The study conclude that majority of the customer prefer shopping through other
shopping websites rather than Flipkart because of lack in product variety, quality,
which makes the customers more comfortable with other shopping websites rather
than Flipkart.

iv. Consider the fact that there are many of middle class, less educated people in India,
Flipkart although has many of impact on middle class people but it should think about
less educated people as now only educated peoples are using the Flipkart.

v. So, Flipkart should increase the variety of products and they should go with
qualitative products to satisfy the people who are willing to purchase through Flipkart
despite of this Flipkart is providing less cost products which helps to serve middle as
well as other relevant people of the society.

vi. 90% of respondents feel safe in online shopping they have no fear and have started
shopping online while still 10% are hesitant of shopping online they are the late
majority type of customers who adopt the technology and advancement in later stage.

vii. 85% of respondents prefer online shopping as they get variety of products of good
quality at one place while remaining respondents feel that they prefer shopping in
stores in which they get opportunity to physically observed the products and then buy.

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viii. Even though flipkart does not have a big list of competitors but there are stores Which

48
 have grabbed attention of buyers namely Jabong, eBay, Myntra, Amazon, Zevi.
ix.
80% of the respondents said that they have excellent first-time experience with flipkart
while 15% said they have overall good and remaining said that they have average
x. experience while shopping first time with flipkart.
More than majority of respondents had an amazing first experience with the site and
prefer flipkart over its competitors due to the quick services, wide variety safety
reasons, cash on delivery facility, low prices and most importantly being an Indian
venture which as wide availability of products.
xi.
Respondents are satisfied by the business model of flipkart as it is a very systematic
organization.
xii.
Flipkart is a very price efficient company because offers the products directly from the
manufacture and eliminates the profit margin of the mediators' Products at prices lower
than the market price.
xiii.
The respondents are very satisfied with the homogeneous list and options flipkart offers to
its customers.
xiv.
xv. Flipkart offers warranty for its goods, depending on the type of product.
Flipkart is very punctual in delivery their goods on time but a very small percentage of
respondents have faced problems regarding the timely delivery of goods.
xvi.
Similarly, regarding the return policy, a small percentage of the respondents have faced
delays but the larger section of the respondents had a great experience regarding the
returns policy of the goods.
xvii.
On a scale of 10, Flipkart users have rated its behavior 6 points to 9.5points depending on
their personal experiences.
xviii.
Flipkart users are not hesitant in recommending the site to any friend.
xix.
2% of customers had a bad experience with flipkart, regarding the timely delivery and the
delay in return of goods, which is not a bad ratio and can be improved further.

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6.4 Bibliography

• http://www.flipkart.com/
• http://www.marketoperation.com/
• http://www.commodityindia.com/
• http://www.ecommerce-land.com/
• http://www.britannica.com/
• http://www.nextbigwhat.com/
• http://www.marketoperation.com/
• http://www.commodityindia.com/
• https://www.academia.edu/31854919/Project_Report_Title_of_the_Project_E_Comme
rce_A_STUDY_ON_THE_IMPACT_OF_ONLINE_RETAILING_ON_THE_SECTO
R_A_CASE_ON_FLIPKART_ACKNOWLEDGMENT

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