E-Commerce by Ishika Agarwal
E-Commerce by Ishika Agarwal
E-Commerce by Ishika Agarwal
OF
ISHIKA AGARWAL
BISHOP COTTON
WOMEN’S CHRISTIAN
COLLEGE
NO, 19 3RD CROSS CSI COMPOUND,
BANGALORE 5600727
GUIDE CERTIFICATE
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INTRODUCTION
Electronic commerce, commonly known as E- commerce or E -
commerce, is trading in products or services using computer networks,
such as the internet. Electronic commerce draws on technologies such
as mobile commerce, electronic funds transfer, supply chain
management, Internet marketing, online transaction processing,
electronic data inter charge (EDI), Inventory management systems, and
automated data collection systems. Modern electronics commerce
typically uses the World Wide Web for at least one part of the
transaction life’s cycle, although it may also use other technologies such
as e-mail.
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6%, it can be compared to a marketing giant. Hence it can be well judged
why online shopping in India is rising at fast pace over the days. As
technology is spreading to the remotest villages and many job
opportunities are presenting themselves to the unemployed youth more
and more people are gaining awareness and the money to purchase
expensive and luxurious items over the internet.
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ONLINE SHOPPING
A company which started with just 4 lakhs is now worth over more than
2000 crores. According to the data Flipkart has provided to Ministry of
Corporate Affairs; the company’s revenue in 2011-12 was $77 million
(Rs.500 crore). For the fiscal 2012-13, their revenue is estimated to be
$350 million. With this huge success Flipkart is becoming the fate of
online retail in India. This paper attempts to throw light on the growth of
online retail business in India with special reference to Flipkart (analyzing
the consumer feedback about the online business model of Flipkart)
The invention has opened a whole new world of possibilities for us. Not
only we can communicate with the person we love within moments but
nowadays many vital tasks like jobs, shopping, socializing and many
others can be done easily at the convenience of our homes. The concept
of online shopping is a relatively new one and it enables us to buy all our
favorite goods and accessories over the internet. This not only saves time
but also we can get the products at a much discounted price and that too
at our homes. There are many online stores that have developed in
recent times like letsshop.in, flipkart.com and many others. These stores
host a wide range of products like bags, shoes, books, gadgets and many
others. To purchase any product you have to visit the site and click on
the product that you would like to purchase and the product will be
delivered to you within a week maximum. It’s that simple
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LITERATURE REVIEW
“In online buying, the rate of diffusion and adoption of the online buying
amongst consumers is still relatively low in India. In view of above an
empirical study of online buying behavior was undertaken. Base on
literature review, four predominant psychographic parameters namely,
attitude, motivation, personality and trust were studied with respect to
online buying. The online buying decision process models based on all
the four parameters were designed after statistical analysis. These
models were integrated with business intelligence, knowledge
management and data mining to design Behavioral business intelligence
framework with a cohesive view of online buyer Behavior. For better
understanding the factors of internet and consumer shopping behavior
towards internet shopping, this chapter would provide academic
research reviews and relative ideas expressed in the literature that
associated with this subject. Furthermore, a number of hypotheses will
be tested to answer the research questions that mentioned already in
the introduction. Due to the recent research shows the internet
shopping becomes a full and effective business model, therefore there
are several studies that already investigated more to less related on
internet shopping and consumer behavior. In the following chapter,
some point of view will be taken from literatures, and needs careful
review to achieve them as the basis of the subsequent research
investigation”
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ADVANTAGES OF ONLINE SHOPPING
1. Saves time: Online shopping saves huge amount of time. We can buy
any of our favorite products from our home only and need not visit shops
or malls.
3. Other facilities: The products are freely shipped and delivered door to
door without extra charges. Moreover, if we find them not satisfying we
can return them within few days of purchase.
5. Ship your gifts directly: When you order online, you can send gifts or
even have gift baskets delivered directly to the recipient. This means you
can avoid long waits at the post office and you can get your gift delivered
faster. Many stores even offer customized cards and gift wrapping to
along with your present.
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6. No more waiting in line and pushing through crowds: malls and retail
stores can be chaotic, especially during a big sale or a holiday season.
Shop home is more convenient than standing in long checkout lines.
7. The internet never closes: You can shop anytime online 24 hours a day
7 days a week. Online stores never close, so you never have to worry
about making time to go to the store. Online shopping is perfect for night
owls or anyone who is too busy to make a visit to the store.
The act of buying things from websites and not shops certainly took a
long time to blend in with the shopping mind-set of the Indian customer.
The current scenario is one, which is witnessing a change in this mind-
set. There have been many websites that have been launched with the
objectives of selling products to customers.
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DISADVANTAGES OF ONLINE
SHOPPING
1. Delay in delivery: Long duration and lack of proper inventory
management result in delays in shipment. Though the duration of
selecting, buying and paying for an online product may not take more
than 15 minutes the delivery of the product to consumer’s doorstep
takes about 1-3 weeks. This frustrates the customer and prevents them
from shopping online.
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help them in purchasing goods. Certain online shopping mart offers
service to talk to a sales representatives.
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GROWTH OF ONLINE RETAILING IN
INDIA
India in e-commerce has grown at a compounded annual growth of 30%
since FY09, and is expected to be $18 billion (around Rs 1,16,00 crore)
opportunity by FY15. The findings part of report: Indian Ecommerce- Tip
of the iceberg, by Macqire Equites research back this high growth rate
on rising internet population, over 300 million middle class population,
increasing mobile penetration and low levels of e-commerce activity.
The nature of Indian E-commerce is also different. Travel has the lion’s
share of 71% of Indian E-commerce, but E-tailing has grown the fastest,
at a 59% CAGR between FY09-13E, to reach 16% market share.
Compared to the West Indian’s E-commerce industry is still in its infancy,
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but we believe that it may become a bigger part of the entire retail
universe than in its west.
“We believe that for many young Indians, Online shopping may become
their primary way to shop throughout their lives. Whenever significant
opportunities such as E-commerce present themselves, many market
participants compete aggressively to try to emerge as Undisputed
leaders to gain brand recognition and customer loyalty, and oftentimes
these players change their business model along the way to grow with
the market” said the report.
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METHODOLOGY
RESEARCH DESIGN
The type of design being used for making this project is Meta-Analysis
Design.
OBJECTIVES
To study the growth of online retail business in India.
To explore the online business of model of Amazon.
To analyze the customer Feedback of Amazon over other available
online retail stores in India.
To find out the mode by which the customer became aware of
amazon.
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To reveal the satisfaction level of the consumer
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DATA COLLECTION METHOD
PRIMARY DATA
Primary data was collected through the survey method (Questionnaire
observation and Interview) from the respondents. Observations
regarding the rise of online shopping trends. The questionnaire aimed at
studying the customer’s preference and feedback for the online
shopping sites at Amazon. Unstructured interview was conducted for
some of the respondents to find out the find out the drawbacks of the
online model of Amazon.
SECONDARY DATA
Secondary data was collected through various websites and articles
available on the Internet.
SAMPLING SIZE
SAMPLING PROCEDURE
To obtain the representative samples of students, a non-profitability
sample can be drawn. In this study the method of selecting samples is
Convenience sampling.
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TOOLS
The tools used for analyzing data are rating method; Graphs, pie charts
etc.
TECHNIQUES OF ANALYSIS
The data collected from the customer are transcript to the
worksheet in the form of Tally bars and analyzed by statistical tools by
drawing Tables and Graphs, inferences were drawn on a marketing
concept and conversation. Based on the marketing concepts findings of
the research were driven and recommendations are made.
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AMAZON SUCCESS STORY
Amazon emerged as a company with a trillion dollar market cap proving
that online shopping is the future. Jeff Bezos founded Amazon in July
1994. He chose Seattle because of technical talent as Microsoft is located
there. In May 1997, the organization went public. The company began
selling music and videos in 1998, at which time it began operations
internationally by acquiring online sellers of books in United Kingdom
and Germany. The following year, the organization also sold video
games, consumer electronics, home-improvement items, software,
games, and toys in addition to other items.
When Amazon started in 1995, it was a site that only sold books. Within
a month of its inception, the company had already shipped books to over
40 different countries. Since then, Amazon has become one of the
world’s largest e-commerce companies, accounting for around 44% of
total e-commerce sales in the United States for 2017.
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FACTORS WHY AMAZON IS
SUCCESSFUL
5. Merging design with content: It’s no secret that long tail content is a
huge component of E-commerce SEO. Amazon uses lengthy product
pages. Taking any product page of Amazon it is also noticed that the long
tail doesn’t adversely affect its flow or UX.
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PRESENTATION OF DATA & ANALYSIS
On the basis of the answers received from the annexed questionnaire the
following analysis has been made.
Figure 1
The above Figure 1, line graph shows the frequency of visits by the number
of customers on how frequently do they shop through E-commerce online
websites
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Figure 2
10% Amazon
10%
Flipkart
Snapdeal
Others
80%
I do not use E-commerce
websites at all
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Figure 3
How frequently have you used the E-commerce website for getting
information before shopping at a physical store?
The above figure 3, shows that how frequently have the customers used
E-commerce website for getting information before shopping at physical
store:
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Figure 4
All the product varieties that you generally prefer buying Online
Sales
Sales, Others, 5%,
4%
Sales, Personal
Products, 15%, 14% Sales, Clothing,
25%, 23% Clothing
Electronic gadgets
Personal Products
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Figure 5
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Bad
50% of the respondents show that they have excellent first time
experience with Amazon
While 30% said they have overall good experience.
The remaining said that they have average and bad experience
while shopping for the first time with Amazon
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Figure 6
Above Figure 6, shows that when the respondents were asked that why
they prefer shopping on Amazon over other shopping sites.
45% said that Amazon provided them all of the qualities mentioned
above
20% said that Amazon provided them better and prompt service
While another 20% among them said they get wide variety of
options on Amazon
Another 10% said that they get better quality product
While remaining 5% said that they get products in right place
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Figure 7
Sales, No, 1, 5%
Yes
No
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Figure 8
Sales, No, 2, 2%
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Figure 9
Sales, No, 2, 2%
Yes No
Sales, Yes, 98, 98%
From the above Figure 9 shows how many respondents are satisfied with
Amazon, out of which:-
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FINDINGS
90% of respondents feel safe while shopping online they have no fear
and have started shopping online while still 10% are still hesitated of
shopping online they are late majority type of customers who adopt the
technology and advancement in later stage.
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 where they get opportunity to
physically observe the products and then buy.
80% of the respondents said that they have excellent first time
experience with Amazon while 15% said they have overall good and
remaining said that they have average experience while shopping first time
with Amazon
More than majority of respondents had an amazing first experience
with the site and prefer Amazon over its competitors due to quick services,
wide variety safety reasons, cash on delivery facility, low prices.
Respondents are satisfied by the business model of Amazon as it is a
very systematic organization
More than 50% of the consumers feel that products of Amazon are
excellent quality, durable and worth the cost
Amazon offers warranty for its goods, depending on the type of
product. Amazon 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.
The respondents is very satisfied with the homogenous list and
options Amazon offers to its customers
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On a scale of 10, Amazon users have rated its behavior 6 points to 9.5
points depending on their personal experiences.
Amazon users are not hesitant in recommending the site to any
friends and family members.
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RECOMMENDATIONS
As still in India large segment of population is untapped regarding the
online shopping the available online shopping stores can widen their
market by getting into expansion strategies.
There is also need to remove the fear in the minds of the customers
regarding the product quality, durability and Payments etc. In online
shopping
Wide expansion of Internet facilities in rural areas can bring the more
customers for the online shopping site.
Through prompt service, wide variety and easy accessibility even
consumers from the remote areas can be tapped
As Indian consumers are much more cautious about shopping online as
compared to the West. They are reluctant to divulge credit card details.
The cash on delivery services has and will help a lot of traditional
consumers turn to online shopping.
India’s E-commerce companies have far too often concentrated on the
bells instead of focusing on developing and customizing technology to
serve customer needs, so their need more customer centric approach.
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CONCLUSION
In conclusion, online shopping is the new mantra of this age and the
people of India are applying this in their lives to a great extend nowadays.
As we progress further, the growth rate of online marketing in our
country will leap to the stars. According to a research report “India’s
Internet base, is already the third highest in the world after China and
US, is growing by nearly 50% every year”. Hence the rise of online
shopping in the Indian subcontinent has been meteoric in the recent
years. The number of shopping websites has increased and so has the
total number of people who prefer shopping online.
At the end it can be said that Amazon has become the fate of online
business in India. The company is currently valued at around 2 Billion
dollars i.e 5000 crore. More importantly Amazon has ushered in the e-
commerce era in India. This has generated massive interest in e-
commerce sector; people are opening websites to sell anything from
shoes to apparels to jewels to baby care products etc. This has helped in
creating a lot of job opportunities and hence the Indian Inc. growth as
well.
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BIBILIOGRAPHY/REFRENCES
Information and data related to the project has been taken from the
sources below, special thanks to the editors for making the task easier:
1. www.sxccal.edu/msccs/ecommerce1.pdf
2. www.scribd.com/doc/172706499/QuesstionaireAmazon#scribd
3. www.euroasiapub.org/IJRIM/Mar17/7.pdf
4. www.surveymonkey.com/s/K2VVBZY
5. www.wikipedia.org/wiki/E-commerce
6. www.amazon.com/about-us
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QUESTIONNAIRE
I ISHIKA AGARWAL, a student pursuing Bachelor of Business
Administration from Bishop Cotton Women’s Christian College. As part
of my research project on “E-COMMERCE A BOON OR A CURSE, A CASE
STUDY ON AMAZON” I am conducting a survey about the success story
of Amazon and online shopping. I kindly request you to fill the
questionnaire given below. I assure your inputs will be taken for
academic purpose.
Name:
Age:
Gender:
College name:
QUESTIONNAIRE
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a. Amazon ( )
b. Flipkart ( )
c. Snapdeal ( )
d. Others ( )
e. I do not use E-commerce websites ( )
4. Tick all the product varieties that you generally prefer buying
online
a. Clothing ( )
b. Electronic Gadgets ( )
c. Personal Products ( )
d. Others ( )
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5. How was your first experience with Amazon?
a. Excellent ( )
b. Average ( )
c. Good ( )
d. Bad ( )
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8. Will you recommend Amazon to your friends and family
members?
a. Yes ( )
b. No ( )
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ANNEXURE-1A
SUPERVISOR’S CERTIFICATE
Designation :
Signature :
Place :
Date :
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ANNEXURE-1B
STUDENT’S DECLARATION
I hereby declare that the Project Work with the title E-Commerce A boon
or a curse, A case study on Amazon submitted by me for the partial
fulfillment of the degree of Bachelor Of Business Administration under
Bangalore Central University is my original work and has not been
submitted earlier to any other University for the fulfillment of the
requirement of any course of study.
Signature :
Place :
Date :
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