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Those days are over when customers had to stand and wait in queues in front of retail
outlets or ticket counters to buy books, groceries or movie tickets, railway tickets etc.
The advancements in Internet technologies have moved people from physical markets
to virtual markets, where they can buy from home or while on the go with much
convenience. This has further been supported by advancements in mobile
technologies and telecom sector as well. Today a number of e-commerce brands are
available which help the consumers make orders online and receive the products at
their doorsteps. The present study in this view aims to put light on some of the major
e-commerce brands operating in India, viz., Amazon, Flipkart, and Snapdeal. The
research design used is descriptive in nature, wherein, comparative study was done to
know consumer preferences towards e-tailer brands on the basis of various
characteristics or services offered by them. The analysis has been done with the help
of simple statistical techniques like frequency counts, averages and percentages. As
per the findings, Amazon takes the first place followed by Flipkart and Snapdeal.
However, neck-to-neck competition exists among these e-tailers. Suggestions from
various respondents might help the brand managers or marketers to find out where
their respective companies excel and where they need to work hard and improve.
The rapid pace of life today has affected the lives of people in many
ways. To keep up with the speed, people these days resort to the things
that tend to save time and can be done more conveniently. Even for
shopping, consumers are turning towards digital / virtual markets where
they can now buy almost everything easily without having to visit the
stores physically. With the evolution of web-based technologies, mobile
technologies and telecommunication services, India has witnessed a
fanatical growth in e-commerce over the past few years and is further
prospering at a fast pace.
Six of the top 10 fastest-growing ecommerce countries in 2019 hail from the
Asia-Pacific region, led by India and the Philippines at more than 30% growth
and rounded out by China, Malaysia, Indonesia and South Korea. Latin
America boasts the top-growing overall ecommerce market—Mexico at 35.0%
—and No. 8 Argentina. Even more mature regions for ecommerce like North
America (Canada, 21.1% growth) and Europe (Russia, 18.7% growth) claimed
spots in the top 10.
FLIPKART
Flipkart was founded in 2007, by Sachin and Binni Bansal, students of IIT
Delhi who were the ex-employees of Amazon.com. Flipkart is an e-
commerce company based in Singapore, it operates in India. According to
alexia internet, Flipkart is one of the most popular website visited in India.
Flipkart sells goods in India through a company called WS retail. The other
third-party traders or companies can also sell goods through the platform
of Flipkart. Initially in 2008 Flipkart sold books but soon it established itself
wide and started selling products like consumer electronics, clothing,
home decoration products, appliances, beauty and fashion products etc.
Due to the powerful network all over India and effective customer
relationship management, Flipkart has earned a topmost position in India.
Flipkart allows payment methods such as cash on delivery, net banking,
debit or credit card transactions, e-gift voucher and card swipe on delivery
The founders of Flipkart Sachin and Binny Bansal, now has taken the
combined net worth in excess of $1 billion, reaching closer to that of
Narayana Murthy and Nandan Nilekani of Infosys. The value of Bansal’s
combined stake has crossed over Rs. 6000 due to the fresh $1 billion fund
raise. The Murthy family has a net worth of near Rs. 8,700 crore being
India’s second largest it services company, while the Nilekani family's net
worth holds at Rs 6,500 crore.
Infosys took about four decade to reach market cap of about $30 billion
while Flipkart raised the valuation of $7 in just seven years, and according
the Flipkart officials the company has a set future goal of becoming $100-
billion e-commerce Company.
Pricing
Flipkart Snapdeal
Subscription Fee free free
Listing Fee free free
Payment Gateway none none
Fee
Commission 5-15% 4-20%
(depends upon
product category)
Flipkart snapdeal
Self shipping no no
Provides shipping Yes,ekart yes
Assistance
Cost of shipping 30-60/500gm 50/500gm
(approx.)
Provides packaging yes yes
Cost of packaging NA NA
Packaging
Flipkart
Snapdeal
Under its Big Billion Days sale, Flipkart is offering discounts up to 90 per
cent on various categories ranging from apparel, small and large electronic
appliances, home furnishing and more. On the first day of the sale, buyers
can avail discount of fashion, cookware, home furnishing and appliances,
among others. From the second day of Big Billion Days sale, Flipkart will
offer discounts on smartphones, laptops, and accessories too.
During its Unbox Diwali Sale, Snapdeal will be offering 60 per cent off on
men's fashion, 80 per cent off on women's fashion, 70 per cent off on
smartphones, 80 per cent off on electronics and more.
Flipkart
Flipkart
Snapdeal Snapdeal
conclusion
Flipkart has higher customer friendliness index than Snapdeal it means it
has higher level of customer friendly environment which gives customers
more trust towards it and they are more willing to purchase from flipkart
rather than snapdeal. Flipkart offers better payment system than
Snapdeal which has multiple options to pay and has various promotional
options like 0% interest EMI potions, large number of credit and debit card
acceptance,5-10% discounts on paying through e-wallets like paytm,
phonepe etc. Flipkart has higher standard of quality checks throughout the
entire product cycle like catalogue Management, product quality,
packaging, Logistics feedback, Return Management etc. It runs a program
called Flipkart Assured in which It store sellers product inventory in their
warehouse and deliver to customers, in which product undergoes 6 quality
checks and then deliver product to customers. So customers have few
complaints about products and have greater trusts towards Flipkart but
snapdeal does not have such type of assured quality checks which gives
customer higher level of quality assurance. Flipkart has fastest Logistics
service in the e-commerce industries. It has it's own Logistics service
called E-kart enabling it to have better control over Logistics operation and
customer feedback. It offers next day delivery plan for metro cities in
which product can be deliverd to customer next with in a day while
Snapdeal depends on third party courier services like Bluedart, Ecom,
Fedex, etc That's why it doesn't have close control over logistics
operations.
Flipkart has higher social media presence by online service like facebook,
twitter, instagram, and google ads etc and also It invests more in
advertisement on television and other advertisement media resulting it to
have more direct connections with customer and has greater penetration
in e commerce market. Snapdeal doesn't invest that much in
advertisement and that is one of the biggest reason why it lagging behind
the flipkart in terms of market share.
Customer loves deals and Discount promotion while purchasing onling and
Flipkart offers more deals and promotion than Snapdeal to customers so
that customer has more choice and better saving on their purchasing. It
runs best- in- industries promotion program Big Billion Day sale every year
around Festival season which is biggest in the industry and offers large
variety of deals and promotion to customers but snapdeal's promotion
programs are not that much big. The most critical aspect of online
purchasing is return and refund of the product, according to customers.
Because if customers did not like the product they ordered , they have
easy option to return the product and get refund in quick time then they
have little hesitation while ordering and have trust towards company and
higher level of customer satisfaction and flipkart has very easy
• http://www.livemint.com/Companies/pbOfYVBQigpqm1D2FguQDO/Flipkart-raises- 160-
million-in- another-round-of-funding.html
• http://trak.in/tags/businhttp://www.alexa.comess/2014/06/04/top-10-indian-
ecommerce-sites- comparison
• http://www.alexa.com.
• http://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-Indias-
online- shopping-inertia/Article1-780440.aspx
• http://www.livemint.com/Companies/pbOfYVBQigpqm1D2FguQDO/Flipkart-raises- 160-
million-in- another-round-of-funding.html