E-Commerce in India


Consists of the buying and selling of products or services over electronic systems such as the Internet and computer networks.

Internet in Today’s business scenario
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Promotion/ awareness Web page – a company’s face Buying/ selling (e-commerce) Making Payments (e-commerce) Sharing Information


2.5 billion internet users

User rates

Market Size of E-Commerce in India
Category Year 2006-2007 Year 2007-2008 (Figures in Rs. Crores) (Figures in Rs. Crores) 5,500 1,580 850 540 20 170 7,080 7,000 2,210 1,105 820 30 255 9,210
Source: IMRB

Online Travel Industry Online Non Travel Industry -e Tailing -Online classified -Paid content subscription -Digital Downloads Total B2C/C2C ECommerce Market

Growth of E-Commerce

Online Travel Industry
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Travel aggregators Hotels –booking websites Indian Railways Online Classifieds Paid Content Subscription, Digital downloads E-Tailing
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Non – travel online industry
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Online Retailer, The Online Auctions

Potential of e-Commerce
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Secure future online payment mechanism India shining

increase in both business and leisure related activities

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Increase in the Internet users Growth in “low cost” e.g. airlines, banking Convenience is becoming priority  Customization of content and offerings More shoppers from Non-Metros M-commerce

Distribution Channel

Distribution Channel




Traditional Channels
Supplier Customer

Tapping Market Potential
Traditional Market Barriers
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Isolation – distance from market Small local markets Limited human capacity

Opportunity  Internet provides “instant” access to global market
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Contests and competitions Cartoons, jokes, trivia, games

Why e-Commerce – Top 6
1. 2. 3. 4. 5. 6.

Saves time and efforts Convenience of shopping at home Wide variety/ range of products are available Good discounts/ lower prices Get detailed information of the product You can compare various models/ brands
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Online communities Blogs

Feel good and provide special

Encourage customer loyalty
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Members-only area E-club with offers/discounts/freebies Appreciate their business

Keep in touch with your customers

- e-mail on a regular basis - Newsletters - Contests - Notification of new giveaways

What is not working?
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Not sure of product quality (1) Cannot bargain/Negotiate (2) Not sure of security of transactions /Credit card misuse(3) Items which require “touch and trial” (4)
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Luxury goods Clothes - beyond Tshirts Groceries - it works for some people but market is restricted

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loss of value through failure to deliver (5) Failure of the web site (6)
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problems with the surroundings, power failure, fire or flooding failure of the hardware and the software


Sources: www.wikipedia.com www.imrbint.com www.iamai.in http://www.stylusinc.com/website/business_models.htm http://www.indianmba.com/Faculty_Column/FC180/fc180.html http://www.chillibreeze.com/articles_various/E-tailing.asp

How we did it?


Look for information related to:
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What is e-commerce? What are its types?....etc

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Divided the tasks for studying Indian prospective Looked for articles, studies, surveys, lectures etc


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Automation of traditional methods of selling unique items Reliability in mode of payments Customer friendly company Professional services in addition to just plain selling of goods Global reach Regional diversification Successful advertising

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