Comparitive analysis of e commerce portals

8/18/2019 Comparitive analysis of e commerce portals

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CERTIFICATION

This is to Certify that the project entitled “EXPANDING e-COMMECE !"#INE##E#- A

COMPAITI$E #T"D%& 'ade (y has (een co'pleted )nder 'y *)idance and I a'

satisfied +ith the +or, carried o)t (y her The project is an ori*inal +or,. has not (een

s)('itted earlier to any other instit)tion The project +as s)ccessf)lly carried o)t for the

partial f)lfill'ent of !!A /III #e'0 fro' Maharaja #)raj'al Instit)te. 1ana,p)ri. Ne+ Delhi.

affiliated to G)r) Go(ind #in*h Indraprasta "ni2ersity. d)rin* the acade'ic year 3456-57

Dr Poona' Ahla+at

/Project *)ide0


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DECLARATION

I here(y declare that the Project +or, entitled “EXPANDING e-COMMECE

!"#INE##E#- A COMPAITI$E #T"D%& is an a)thentic +or, carried o)t (y 'e )nder

the *)idance of ad'inistration and this has not (een s)('itted any+here else for the a+ard

of any other de*ree or Diplo'a


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ACKNOWLEDGEMENT

E2ery project (i* or s'all is s)ccessf)l lar*ely d)e to the effort of a n)'(er of +onderf)l people +ho ha2e al+ays *i2en their 2al)a(le ad2ice or lent a helpin* hand I sincerely

appreciate the inspiration8 s)pport and *)idance of all those people +ho ha2e (een

instr)'ental in 'a,in* this project a s)ccess

I +o)ld li,e to e9press 'y deepest appreciation to all those +ho pro2ided 'e the possi(ility

to co'plete this report A special *ratit)de I *i2e to o)r project *)ide. Dr Poona' Ahla+at.

+hose contri()tion in sti')latin* s)**estions and enco)ra*e'ent. helped 'e to coordinate

'y project especially in +ritin* this report

I +o)ld also li,e to than, all the fac)lty 'e'(ers of Maharaja #)raj'al Instit)te for theircritical ad2ice and *)idance +itho)t +hich this project +o)ld not ha2e (een possi(le

:ast ()t not the least I place a deep sense of *ratit)de to 'y fa'ily 'e'(ers and 'y friends

+ho ha2e (een constant so)rce of inspiration d)rin* the preparation of this project +or,


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TABLE OF CONTENTSTitle Page No.CETI;ICATE

DEC:AATION

ACAPTE P:AN?

C>APTE I ? INTOD"CTION

O!1ECTI$E# O; T>E #T"D%

E#EAC> MET>ODO:OG%

:IMITATION# O; T>E #T"D%

C>APTE II ? PO;I:E O; T>E OGANI#ATION/#0

C>APTE III? ANA:%#I# AND INTEPETATION O; DATA

C>APTE I$? CONC:"#ION# AND ECOMENDATION#

Bibliography


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CHAPTER-I:INTRODUCTION


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INTRODUCTION

E-Coe!"e i# I#$ia

India has an internet )ser (ase of a(o)t 3743 'illion as of 1)ne 3456 The penetration of

e-co''erce is lo+ co'pared to 'ar,ets li,e the "nited #tates and the "nited o+e2er. COD 'ay har' e-co''erce ()siness in

India in the lon* r)n and there is a need to 'a,e a shift to+ards online pay'ent 'echanis's

#i'ilarly. direct i'ports constit)te a lar*e co'ponent of online sales De'and for

international cons)'er prod)cts /incl)din* lon*-tail ite's0 is *ro+in* ')ch faster than in-

co)ntry s)pply fro' a)thorised distri()tors and e-co''erce offerin*s

E-"oe!"e logi%ti"% o$el%: A !a$i"al %&i't '!o !eg(la! logi%ti"%

http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Market_penetrationhttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Cash_on_deliveryhttp://en.wikipedia.org/wiki/Direct_importshttp://en.wikipedia.org/wiki/Long-tailhttp://en.wikipedia.org/wiki/Market_penetrationhttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Cash_on_deliveryhttp://en.wikipedia.org/wiki/Direct_importshttp://en.wikipedia.org/wiki/Long-tailhttp://en.wikipedia.org/wiki/India


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The stron* e'er*ence of e-co''erce ill place an enor'o)s press)re on the s)pportin*

lo*istics f)nctions The proposition of e-co''erce to the c)sto'er is in offerin* an al'ost

infinite 2ariety of choices spread o2er an enor'o)s *eo*raphical area ;ir's cannot co'pete

solely (ased on sheer 2ol)'es in todayFs e2er-e2ol2in*. infor'ation sy''etric and

*lo(alised +orld of e-co''erce Instead. the real' of co'petition has shifted to deli2erin*to e2er-shortenin* deli2ery ti'eliness. (oth consistently and predicta(ly Ne*li*i(le or ero

deli2ery prices. doorstep deli2ery. tracea(ility sol)tions and con2enient re2erse lo*istics ha2e

(eco'e the 'ost i'portant ele'ents of differentiation for pro2iders

=hile the c)rrent lo*istics challen*es relatin* to 'an)fact)rin* and distri()tion of

cons)'er prod)cts and or*anised retail are +ell-,no+n. the de'ands of e-co''erce raise

the associated co'ple9ities to a different le2el E-co''erce retailers are +ell-a+are of

these challen*es and are co*niant of the need to in2est in capital and operational assets

Rea"&i#g t&e "(%toe!: Goi#g )e*o#$ t&e t!a$itio#al $e'i#itio#

The essence of e-retailin* is in its a(ility to transcend physical (o)ndaries and reach

c)sto'ers in a 'anner different fro' the traditional (ric,-and- 'ortar stores. to their 2ery

doorstep >o+e2er. the (ase of the e-retailin* 'odel is technolo*y and lo*istical sol)tions

that facilitates the c)sto'er acH)isition and the final reachF process E-co''erce f)rther

(rin*s to the ta(le 2a*aries in c)sto'er orders acco'panied +ith diffic)lt scenarios s)ch as

free deli2ery. order resched)lin*. cancellation. ret)rns and cash-on-deli2ery

Additionally. an e9pected 'ini'ised t)rn-aro)nd-ti'e /TAT0 +hich +ill potentially lead

to +ord-of-'o)th p)(licity. feed(ac, and c)sto'er retention to the e-portal or +e(siteAn infor'ation net+or, +hich shares )pdated infor'ation +ith respect to in2entory

stat)s. de'and sched)les and forecasts. ship'ent sched)les and pro'otion plans a'on*

all the sta,eholders of the s)pply chain +ill for' the (ac,(one of an e-retailer

IndiaJs e-co''erce 'ar,et +as +orth a(o)t K@B (illion in 344. it +ent )p to K53 (illion

in 345@ In 345@. the e-retail 'ar,et +as +orth "#K 3@ (illion A(o)t 4 of IndiaJs e-

co''erce 'ar,et is tra2el related India has close to 54 'illion online shoppers and is

*ro+in* at an esti'ated @4 rate 2is-L-2is a *lo(al *ro+th rate of B54 Electronics and

Apparel are the (i**est cate*ories in ter's of sales

This st)dy is a co'parati2e (et+een the fo)r 'ajor players in the Indian E-Co''erce'ar,et They are- ;lip,artco'. #napdealco'. A'onco'. e!ayco'


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S#a+$eal."o is an online 'ar,etplace. headH)artered in Ne+ Delhi. India The co'pany

+as started (y


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;lip,artco' is re*istered in #in*apore. and o+ned (y a #in*apore-(ased holdin*

co'pany ;lip,art has la)nched its o+n prod)ct ran*e )nder the na'e Di*i;lip. offerin*

ca'era (a*s. pen-dri2es. headphones. co'p)ter accessories. etc

;lip,art also recently la)nched its o+n ran*e of personal healthcare and ho'e appliances

)nder the (rand Citron The (rand offers 4 day replace'ent *)arantee and On-site repair

s)pport )nder its +arranty ter's

:e*ally. ;lip,art is not an Indian co'pany since it is re*istered in #in*apore and 'ajority of

its shareholders are forei*ners !eca)se forei*n co'panies are not allo+ed to do ')lti-(rand

e-retailin* in India. ;lip,art sells *oods in India thro)*h a co'pany called =# etail Other

third-party sellers or co'panies can also sell *oods thro)*h the ;lip,art platfor'

Aao#."o I#". is an A'erican international electronic co''erce co'pany +ith

headH)arters in #eattle. =ashin*ton It is the lar*est Internet (ased co'pany in the "nited

#tates A'aonco' started as an online (oo,store. ()t soon di2ersified.

sellin* D$Ds. $>#s. CDs. 2ideo and MP@ do+nloadsQstrea'in*. soft+are. 2ideo

*a'es. electronics. apparel. f)rnit)re. food. toys. and je+ellery

The co'pany also prod)ces cons)'er electronics Rnota(ly. A'aon


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eBa* I#".. is an A'erican ')ltinational corporation and e-co''erce co'pany.

pro2idin* cons)'er-to-cons)'er ()siness-to-cons)'er sales ser2ices 2ia Internet

It is headH)artered in #an 1ose. California. "nited #tates e!ay +as fo)nded (y PierreO'idyar in 57. and (eca'e a nota(le s)ccess story of the dot-co' ()((le8 it is a ')lti-

(illion dollar ()siness +ith operations localied in o2er thirty co)ntries

The co'pany 'ana*es e!ayco'. an online a)ction and shoppin* +e(site in +hich people

and ()sinesses ()y and sell a (road 2ariety of *oods and ser2ices +orld+ide

e!ayco' is not a free +e(site. rather it char*es )sers an in2oice seller fee on the (asis of if

they ha2e sold or listed any ite's

eportedly. e!ay +as si'ply a side ho((y for O'idyar )ntil his Internet ser2ice pro2ider

infor'ed hi' he +o)ld need to )p*rade to a ()siness acco)nt d)e to the hi*h 2ol)'e of

traffic to his +e(site

The res)ltin* price increase /fro' K@4Q'onth to K3740 forced hi' to start char*in* those

+ho )sed e!ay. and +as not 'et +ith any ani'osity

http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Consumer-to-consumerhttp://en.wikipedia.org/wiki/Business-to-consumerhttp://en.wikipedia.org/wiki/Business-to-consumerhttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/San_Jose,_Californiahttp://en.wikipedia.org/wiki/San_Jose,_Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Pierre_Omidyarhttp://en.wikipedia.org/wiki/Pierre_Omidyarhttp://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Online_auction_business_modelhttp://en.wikipedia.org/wiki/Online_auction_business_modelhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Consumer-to-consumerhttp://en.wikipedia.org/wiki/Business-to-consumerhttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/San_Jose,_Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Pierre_Omidyarhttp://en.wikipedia.org/wiki/Pierre_Omidyarhttp://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Online_auction_business_model


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OB/ECTI0ES OF THE STUD1

The project ai's at st)dyin* the chan*in* trends of Indian c)sto'er (eha2io)r fro' in-store

p)rchasin* to online p)rchasin*

E-co''erce has co'e a lon* +ay since its inception and is only *ettin* (i**er As

technolo*y contin)es to *ro+ rapidly. e-co''erce retailers are adoptin* ne+er techniH)es to

facilitate sellers and ()yers to sell and ()y online 'ore efficiently. than,s to e2er droppin*

rates of internet s)rfin* (oth for +e( and 'o(ile interfaces +hich is co'pli'entin* to the

soarin* pop)lation of internet )sers

This project ai's at identifyin* the ,ey players in the e-Co''erce 'ar,ets The st)dy

specifically foc)ses on co'parin* the in2est'ent and 'ar,et strate*ies of ?

#napdealco' Do'estic Players

;lip,artco'

e!ayco' International players

A'aonco'

Accordin* to a st)dy (y Accel Partners. online shoppin* of physical *oods in India +ill *ro+

to "#K B7 (illion in 345 and the n)'(er of online shoppers in India +ill (e 'ore than

do)(le to 64 'illion The internet )ser (ase is predicted to increase to @44 'illion (y 3457

The st)dy shall help co'pare Cross-c)lt)ral 'ana*e'ent styles /incl)din* the >)'aneso)rce policies0 (et+een the do'estic and international players

Indian e-co''erce and online shoppin* are set to +itness *reater hei*hts in the co'in*

years. not j)st o+in* to the increasin* internet pop)lation. ()t also d)e to the chan*in*

dyna'ics of the s)pportin* ecosyste' The ,ey players in the 'ar,et are )nderta,in*

ri*oro)s efforts to f)rther enhance the areas li,e pay'ent str)ct)re and lo*istics

Moreo2er. the Indian cons)'erFs perception of online shoppin* has e9perienced a s)(stantial

chan*e and for the *ood In 2ie+ of these de2elop'ents. (oth the in2estors and the aspirin*

e-co''erce players ha2e (een *ranted n)'ero)s opport)nities. +ho +ere th)s far li'itin*

the'sel2es to the sidelines Today. they are all ta,in* a ,een interest in the co)ntryFs e-

co''erce 'ar,et

Therefore . the project shall help )nderstand the ()siness operatin* 'odel of the ,ey players

in the Indian e-Co''erce 'ar,et and project the f)t)re trends of e-Co''erce ()siness in

India


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E#EAC> MET>ODO:OG%

Re%ea!"& in co''on parlance refers to a search for ,no+led*e Once can also defineresearch as a scientific and syste'atic search for pertinent infor'ation on a specific topic

The p)rpose of research is to disco2er ans+ers to H)estions thro)*h the application of

scientific proced)res

The 'ain ai' of research is to find o)t the tr)th +hich is hidden and +hich has not (een

disco2ered as yet

The research for this project report has (een carried o)t )sin* Se"o#$a!* Data %o(!"e%.

Se"o#$a!* Data So(!"e%: #econdary data is data collected (y so'eone other than the )ser

Coo# %o(!"e% o' %e"o#$a!* $ata for social science incl)de cens)ses. or*anisational

records and data collected thro)*h H)alitati2e 'ethodolo*ies or H)alitati2e research

P!ia!* $ata. (y contrast. are collected (y the in2esti*ator cond)ctin* the research

As is the case in pri'ary research. secondary data can (e o(tained fro' t+o different

research strands?

2(a#titati3e? Cens)s. ho)sin*. social sec)rity as +ell as electoral statistics and other

related data(ases

• 2(alitati3e? #e'i-str)ct)red and str)ct)red inter2ie+s. foc)s *ro)ps transcripts. field

notes. o(ser2ation records and other personal. research-related doc)'ents

A clear (enefit of )sin* secondary data is that ')ch of the (ac,*ro)nd +or, needed has

already (een carried o)t. for e9a'ple? literat)re re2ie+s. case st)dies 'i*ht ha2e (een carried

o)t. p)(lished te9ts and statistics co)ld ha2e (een already )sed else+here. 'edia pro'otion

and personal contacts ha2e also (een )tilied

This +ealth of (ac,*ro)nd +or, 'eans that secondary data *enerally ha2e a pre-esta(lished

de*ree of 2alidity and relia(ility +hich need not (e re-e9a'ined (y the researcher +ho is re-

)sin* s)ch data

;)rther'ore. secondary data can also (e helpf)l in the research desi*n of s)(seH)ent pri'ary

research and can pro2ide a (aseline +ith +hich the collected pri'ary data res)lts can (e

co'pared to Therefore. it is al+ays +ise to (e*in any research acti2ity +ith a re2ie+ of the

secondary data

http://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Social_sciencehttp://en.wikipedia.org/wiki/Censushttp://en.wikipedia.org/wiki/Censushttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Primary_datahttp://en.wikipedia.org/wiki/Primary_researchhttp://en.wikipedia.org/wiki/Semi-structured_interviewhttp://en.wikipedia.org/wiki/Structured_interviewhttp://en.wikipedia.org/wiki/Focus_groupshttp://en.wikipedia.org/wiki/Focus_groupshttp://en.wikipedia.org/wiki/Field_noteshttp://en.wikipedia.org/wiki/Field_noteshttp://en.wikipedia.org/wiki/Observationshttp://en.wikipedia.org/wiki/Observationshttp://en.wikipedia.org/wiki/Literature_reviewhttp://en.wikipedia.org/wiki/Literature_reviewhttp://en.wikipedia.org/wiki/Literature_reviewhttp://en.wikipedia.org/wiki/Case_studyhttp://en.wikipedia.org/wiki/Case_studyhttp://en.wikipedia.org/wiki/Descriptive_statisticshttp://en.wikipedia.org/wiki/Descriptive_statisticshttp://en.wikipedia.org/wiki/Validityhttp://en.wikipedia.org/wiki/Reliability_(statistics)http://en.wikipedia.org/wiki/Research_designhttp://en.wikipedia.org/wiki/Research_designhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Social_sciencehttp://en.wikipedia.org/wiki/Censushttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Primary_datahttp://en.wikipedia.org/wiki/Primary_researchhttp://en.wikipedia.org/wiki/Semi-structured_interviewhttp://en.wikipedia.org/wiki/Structured_interviewhttp://en.wikipedia.org/wiki/Focus_groupshttp://en.wikipedia.org/wiki/Field_noteshttp://en.wikipedia.org/wiki/Field_noteshttp://en.wikipedia.org/wiki/Observationshttp://en.wikipedia.org/wiki/Literature_reviewhttp://en.wikipedia.org/wiki/Case_studyhttp://en.wikipedia.org/wiki/Descriptive_statisticshttp://en.wikipedia.org/wiki/Validityhttp://en.wikipedia.org/wiki/Reliability_(statistics)http://en.wikipedia.org/wiki/Research_design


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LIMITATIONS OF STUD1

The project report s)ffers fro' the follo+in* li'itations in research?

Sel'-!e+o!te$ Data: Most of the data )sed for the project report has (een collected fro' the

internet and other p)(lished so)rces Th)s the a)thenticity of s)ch data cannot (e f)lly

confir'ed

O3e!%ea% o+e!atio#%: T+o of the co'panies /A'aonco'. e-!ayco'0 st)died for

co'parison are international players in the e-Co''erce 'ar,et and th)s ha2e o2erseas

operations Th)s all acc)rate data relatin* to these co'panies is not easily accessi(le

Tie : The topic of co'parati2e analysis of the players in e-Co''erce 'ar,et in India is a

+ide topic of st)dy and th)s the ti'e reH)ired for s)ch a st)dy is a lot Th)s any a'o)nt of

ti'e pro2ided is not eno)*h tho)*h I ha2e tried to co'plete this project +ithin a li'ited ti'e

period


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CHAPTER-II :

PROFILE

OF

THE

ORGANISATION4S5


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PROFILE OF THE ORGANISATION4S5

The follo+in* section sho+s the profile of the fo)r or*anisations co'pared in this report

Fli+,a!t."o

;lip,artco' is an e'er*in* Indian online 'e*a-store ;lip,art has follo+ed has sa'e

()siness 'odel as of A'aonco' ie startin* fro' sellin* (oo,s therefore +e can call it

“;lip,art-the A'aon of India& >o+e2er. ;lip,art is no+ re*ional (ased e-!)siness that is

only tar*etin* the Indian 'ar,et

;lip,art +as started (y #achin !ansal and !inny !ansal /not (rothers0 +ho +ere for'er

A'aon e'ployees ;lip,art +or,s +ith the ai' of 'a,in* *oods easily a2aila(le at the

doorstep of anyone +ith internet access

;lip,art entered the cons)'er electronics cate*ory +ith la)nch of 'o(ile phones in 3454

Today. ;lip,art is present across 2ario)s cate*ories incl)din* 'o2ies. ')sic. *a'es. 'o(iles.

ca'eras. co'p)ters. healthcare and personal prod)cts. ho'e appliances and electronics.

stationery. perf)'es. toys. apparels. shoes and still co)ntin*S

It is no+ one of the leadin* e-Co''erce players in India. c)rrently ran,s at the top 34

+e(sites in India. spread in @ cities +ith 557 'illion pl)s 'illion (oo, titles. 56 different

cate*ories. @ 'illion pl)s re*istered )sers and sale of 67444 ite's per day


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The inno2ati2e e-Co''erce ser2ices pro2ided (y ;lip,art incl)de?

• Cash on Deli2ery

• @4-day replace'ent policy• Easy Monthly Instal'ent options /EMI0

• ;ree shippin*

• Disco)nted prices and deals

The co'pany +as initially self-f)nded (y (oth of its co-fo)nders spendin* s6.44.444 to set

)p the ()siness They later raised f)nds fro' Pri2ate EH)ity In2estors ie Accel Partners and

Ti*er Glo(al Mana*e'ent of K@5 'illion

In the year 3454. the co'pany acH)ired =eead. a social (oo, disco2ery tool

In 3455. Mi'e@4. a di*ital content platfor' co'pany and Cha,pa,co' a (olly+ood ne+s

site8 and its 'ost recent acH)isition :ets()yco' +hich is IndiaFs second lar*est e-retailer in

electronics

• ;lip,art e'ployees 67444 people

• 3 'illion sales )nit and 6'illion 2isitors per 'onth

• 557 'illion titles. ;lip,art is IndiaFs lar*est online (oo, retailer

• e*istered )ser (ase of 6'illion c)sto'ers

• #hips o)t as 'any as 67444 ite's per day. cloc,in* daily sales of appro9i'ately s37

Cr

• ;lip,art is no+ in2estin* in e9pandin* its net+or, of distri()tion centres.

proc)re'ent operations +hich is no+ only in B cities in the co)ntry. so as to reach

'ore and 'ore Indian cities

• The co'pany is e2en settin* )p its o+n deli2ery net+or, +hich is no+ in @ cities.

(y +hich co'pany can sa2e cost associated to the o)tso)rced shippin* an lo*istic

f)nction and is set to e9pand this f)rther (y this year

Th)s ;lip,art has (een s)ccessf)l (y pro2idin* c)sto'ers +ith *reat ser2ices li,e cash on

deli2ery. @4-day replace'ents etc

;lip,artJs reported sales +ere 64 'illion in ;% 344B344.@@U@6U 344 'illion in ;% 344

3454 and 74 'illion for ;% 34543455 In ;% 34553453. ;lip,art crossed the 7 (illion

/"#K544 'illion0 'ar, as Internet )sa*e in the co)ntry increases and people *ot acc)sto'ed

http://en.wikipedia.org/wiki/Fiscal_Yearhttp://en.wikipedia.org/wiki/Flipkart#cite_note-bs-33http://en.wikipedia.org/wiki/Flipkart#cite_note-34http://en.wikipedia.org/wiki/Flipkart#cite_note-34http://en.wikipedia.org/wiki/Fiscal_Yearhttp://en.wikipedia.org/wiki/Fiscal_Yearhttp://en.wikipedia.org/wiki/Fiscal_Yearhttp://en.wikipedia.org/wiki/Fiscal_Yearhttp://en.wikipedia.org/wiki/Flipkart#cite_note-bs-33http://en.wikipedia.org/wiki/Flipkart#cite_note-34http://en.wikipedia.org/wiki/Fiscal_Yearhttp://en.wikipedia.org/wiki/Fiscal_Year


18/48

to 'a,in* p)rchases online ;lip,art projects its sales to reach 54 (illion (y end of the year

3456 ;lip,art is ai'in* at *eneratin* a re2en)e of 74 (illion /"#K4B5 (illion0 (y 3457

On No2e'(er 3453. ;lip,art (eca'e one of the co'panies (ein* pro(ed for alle*ed

2iolations of ;DI re*)lations of the ;orei*n E9chan*e Mana*e'ent Act. 5

In 1)ly 345@. ;lip,art raised "#D 54 'illion fro' pri2ate eH)ity in2estors

In Octo(er 345@. it +as reported that ;lip,art had raised an additional K54 'illion fro' ne+

in2estors Dra*oneer In2est'ent Gro)p. Mor*an #tanley =ealth Mana*e'ent. #ofina #A

and $)lcan Inc +ith participation fro' e9istin* in2estor Ti*er Glo(al

On 3 May 3456. ;lip,art anno)nced that it has raised K354 'illion fro' %)ri Milner Fs D#T

Glo(al and its e9istin* in2estors Ti*er Glo(al. Naspers and IconiH Capital

In early 1)ly 3456. it +as also hi*hly spec)lated that ;lip,art +as in ne*otiations to raise at

least K744 'illion. for a li,ely listin* in the "# for 345

On 3 1)ly 3456. ;lip,art anno)nced that it raised K5 (illion fro' Ti*er Glo(al Mana*e'ent

::C. Accel Partners. and Mor*an #tanley In2est'ent Mana*e'ent and a ne+ in2estor

#in*apore so2erei*n-+ealth f)nd GIC

On Octo(er 3456. ;lip,art sold prod)cts +orth IN 74Crore in 54 ho)rs in a special one-

day e2ent - The !i* !illion Day. clai'in* they had created e-co''erce history. ()t their

hard-+on rep)tation for *ood c)sto'er ser2ice s)ffered (eca)se of technical pro(le's. and

an*ry reactions on social 'edia fro' ()yers disappointed +ith the pricin* and a2aila(ility of

prod)cts It clai'ed to sell a +hoppin* 7 la,h 'o(ile handsets. fi2e-la,h clothes and shoes

and 37.444 tele2ision sets +ithin ho)rs of openin* its disco)nted sale at B AM

http://en.wikipedia.org/wiki/Morgan_Stanley_Wealth_Managementhttp://en.wikipedia.org/wiki/Sofinahttp://en.wikipedia.org/wiki/Vulcan_Inc.http://en.wikipedia.org/wiki/Vulcan_Inc.http://en.wikipedia.org/wiki/Yuri_Milnerhttp://en.wikipedia.org/wiki/INRhttp://en.wikipedia.org/wiki/INRhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Morgan_Stanley_Wealth_Managementhttp://en.wikipedia.org/wiki/Sofinahttp://en.wikipedia.org/wiki/Vulcan_Inc.http://en.wikipedia.org/wiki/Yuri_Milnerhttp://en.wikipedia.org/wiki/INRhttp://en.wikipedia.org/wiki/Crore


19/48

S#a+$eal."o

#napdeal is an online 'ar,etplace offerin* (est priced deals on (randed prod)cts s)ch as

'o(iles. electronics. apparel and accessories feat)rin* a +ide assort'ent of prod)cts across

cate*ories li,e Mo(iles. Electronics. ;ashion accessories. Apparel and ;oot+ear. o'e

and


20/48

#napdealco' +as started in ;e(r)ary 3454 as a daily deals platfor' inspired

(y Gro)ponco' ()t e9panded in #epte'(er 3455 to (eco'e an e-co''erce co'pany 2ia a

'ar,etplace 'odel after +atchin* flip,artJs s)ccess in the local 'ar,et=ith 34 'illion

re*istered )sers. #napdeal is one of the first and lar*est online 'ar,et places in India offerin*

an assort'ent of 6 'illion prod)cts across di2erse cate*ories fro' o2er 34.444 sellers.

shippin* to 6.444 to+ns and cities in India

#napdeal has recently la)nched its 'o(ile app for iO# )sers The app. already a2aila(le for

=indo+s and Android )sers. pro2ides )serFs access to #napdealJs 2ario)s prod)ct cate*ories

#napdeal has recei2ed 7 ro)nds of f)ndin*?

• o)nd 5? In 1an)ary 3455. #napdeal recei2ed a f)ndin* of K53 'illion fro' Ne9)s

$ent)re Partners and Indo-"# $ent)re Partners

•

o)nd 3? In 1)ly 3455. the co'pany raised a f)rther K67 'illion fro' !esse'er$ent)re Partners. alon* +ith e9istin* in2estors Ne9)s $ent)re Partners and Indo-"#

$ent)re Partners

• o)nd @? #napdeal then raised a @rd ro)nd of f)ndin* +orth K74 'illion fro' e!ay

and recei2ed participation fro' e9istin* in2estors ie !esse'er $ent)re Partners.

Ne9)s $ent)re and Indo"# $ent)re Partners

• o)nd 6? #napdeal recei2ed its 6th ro)nd of f)ndin* of K5@@ 'illion on ;e(-3456

The 6th ro)nd of f)ndin* +as led (y e!ay +ith all the c)rrent instit)tional in2estors.incl)din*


21/48

In the year 3453-5@ #napdeal had said that it e9pects to *arner re2en)es of a(o)t

44 crore /"#K 'illion0 !ettin* (i* on the *ro+th of 'o(ile co''erce.


22/48

Aao#."o

A'aonco'. Inc /A'aonco'0 . incorporated on May 3B. 5. ser2es cons)'ers thro)*h

its retail +e(sites and foc)s on selection. price. and con2enience The Co'pany offers

pro*ra's that ena(les sellers to sell their prod)cts on its +e(site and their o+n (randed+e(sites and to f)lfil orders thro)*h the'. and pro*ra's that allo+ a)thors. ')sicians.

fil''a,ers. application de2elopers. and others to p)(lish and sell content

The Co'pany operates in t+o se*'ents? North A'erica and International The Co'pany

ser2es cons)'ers thro)*h its retail +e(sites. and foc)s on selection. price. and con2enience

The Co'pany desi*ns its +e(sites to ena(le 'illions of prod)cts to (e sold (y the Co'pany

and (y third parties across doens of prod)ct cate*ories C)sto'ers access its +e(sites


23/48

directly and thro)*h its 'o(ile +e(sites and apps It also 'an)fact)res and sells


24/48

I#te!#atio#al

The International se*'ent consists of a'o)nts earned fro' retail sales of cons)'er prod)cts

and s)(scriptions thro)*h internationally-foc)sed +e(sites This se*'ent incl)des e9port

sales fro' these internationally (ased +e(sites. incl)din* e9port sales fro' these sites to

c)sto'ers in the "# and Canada

This A'erican international electronic co''erce co'pany +ith headH)arters in #eattle.

=ashin*ton is the lar*est Internet (ased co'pany in the "nited #tates A'aonco' started

as an online (oo,store. ()t soon di2ersified. sellin* D$Ds. $>#s. CDs. 2ideo and MP@

do+nloadsQstrea'in*. soft+are. 2ideo *a'es. electronics. apparel. f)rnit)re. food. toys. and

je+ellery The co'pany also prod)ces cons)'er electronicsRnota(ly. A'aon o+e2er. it failed to chip a+ay at the lar*e 'ar,et share of the ind)stry pioneer. e!ay

:ater. the co'pany la)nched a fi9ed-price 'ar,etplace ()siness. #hops. in #epte'(er 5.

and the no+ def)nct partnership +ith #othe(yJs. called Sothebys.amazon.com. in No2e'(er

A)ctions and #hops e2ol2ed into A'aon Mar,etplace. a ser2ice la)nched in No2e'(er

3444 that let c)sto'ers sell )sed (oo,s. CDs. D$Ds. and other prod)cts alon*side ne+ ite's

As of Octo(er 3456. A'aon Mar,etplace is the lar*est of its ,ind. follo+ed (y si'ilar

'ar,etplaces fro' #ears. a,)ten and Ne+e**

In A)*)st 344. A'aon anno)nced A'aon;resh. a *rocery ser2ice

offerin* perisha(le and nonperisha(le foods C)sto'ers can ha2e orders deli2ered to their

ho'es at da+n or d)rin* a specified dayti'e +indo+ Deli2ery +as initially restricted to

residents of Mercer Island. =ashin*ton. and +as later e9panded to se2eral VIP codes in

#eattle proper A'aon;resh also operated pic,-)p locations in the s)()r(s of !elle2)e and


25/48

(o)*ht in 3454 that also r)ns the sites Diapersco' /(a(y0. =a*co' /pets0. and %o%oco'

/toys0 A'aon also o+ns other e-co''erce sites li,e #hop(opco'. =ootco'.

and Vapposco'

A'aonJs #)(scri(e #a2e pro*ra' offers a disco)nted price on an ite' /)s)ally sold in ()l,0. free shippin* on e2ery #)(scri(e #a2e ship'ent. and a)to'atic ship'ent of the ite'

e2ery one. t+o. three. or si9 'onths

In 345@. A'aon la)nched its site in India. a'aonin It has started +ith electronic *oods

and plans to e9pand into fashion apparel. (ea)ty. ho'e essentials. and healthcare cate*ories

(y the end of 345@ A'aonin arran*ed a Di+ali Dha'a,a =ee, sale fro' 54 to 5 Octo(er

3456 e9cl)si2ely to (oost )p its ()siness in Indian 'ar,et

In 1)ly. A'aon had said it +ill in2est K3 (illion /s 53.444 crore0 in India to e9pand ()siness. after its lar*est Indian ri2al ;lip,art anno)nced K5 (illion in f)ndin*

eBa*."o

e!ay Inc. incorporated on March 5@. 5B. is a *lo(al technolo*y co'pany The Co'pany

(y pro2idin* online platfor's. tools and ser2ices to help indi2id)als and s'all. 'edi)' and

'erchants aro)nd the *lo(e en*a*e in online and 'o(ile co''erce and pay'ents. theCo'pany can facilitate transactions

http://en.wikipedia.org/wiki/Diapers.comhttp://en.wikipedia.org/wiki/Woot.comhttp://en.wikipedia.org/wiki/Woot.comhttp://en.wikipedia.org/wiki/Zappos.comhttp://en.wikipedia.org/wiki/Zappos.comhttp://en.wikipedia.org/wiki/Diapers.comhttp://en.wikipedia.org/wiki/Woot.comhttp://en.wikipedia.org/wiki/Zappos.com


26/48

The Co'pany also *enerates re2en)e thro)*h 'ar,etin* ser2ices. classifieds and

ad2ertisin*

The Co'pany has also created an open so)rce platfor' that pro2ides soft+are de2elopers

and 'erchants access to its applications pro*ra''in* Interfaces /APIs0. to de2elop soft+are

and sol)tions for co''erce Its de2eloper co'')nity incl)des 'ore than B44.444 'e'(ersIn Dece'(er 345@. the Co'pany anno)nced that it has co'pleted the acH)isition of

acH)isition of !raintree effecti2e ;e(r)ary 5. 3456. e!ay Inc acH)ired Phi#i9 Inc

#ellers can choose to list their prod)cts and ser2ices thro)*h fi9ed price listin*s on e!ayco'.

its Mar,etplaces platfor'. and it classifieds +e(sites or thro)*h an a)ction-(ased for'at on

e!ayco'

Its fi9ed price for'at allo+s ()yers and sellers to close transactions at a pre-deter'ined price

set (y the seller. ()t also allo+s sellers to si*nal that they +o)ld (e +illin* to close the

transaction at a lo+er price thro)*h the Offer feat)re Its a)ction-style for'at allo+s a seller

to select a 'ini')' price for openin* (ids

In addition. its e!ay #tores for'at ena(les sellers to e9hi(it all of their listin*s in a sin*le

place on one of its e!ay Mar,etplaces platfor's and to descri(e their respecti2e ()sinesses

thro)*h c)sto'ied pa*es

e!ay #tores also pro2ides sellers +ith tools to ()ild. 'ana*e. pro'ote and trac, their

()sinesses Its classified +e(sites are a2aila(le in o2er 5.444 cities *lo(ally Its classifieds

+e(sites incl)de Den !la A2is. !il!asen. e!ay Classifieds /incl)din* e!ay An)ncios. e!ay


27/48

descri(ed In so'e non-"# 'ar,ets. protection for ()yers is li'ited to a 'a9i')' a'o)nt

per transaction

I *ot it on e!ay has (arrelled its +ay into the le9icon of the ne+ 'illenni)'. placin* a

cy(er-*rin on the corporate face of this online a)ctioneer Tradin* a(o)t K3.444 +orth of

*oods e2ery second. e!ay offers an online for)' for sellin* 'erchandise +orld+ide. fro'fine antiH)es to the latest 2ideo *a'es e!ay *enerates re2en)e thro)*h listin* and sellin*

fees and thro)*h ad2ertisin*. and (oasts 'ore than 534 'illion )sers

As e!ay is a h)*e. p)(licly 2isi(le 'ar,et. it has attracted a *reat deal of interest fro'

econo'ists. +ho ha2e )sed it to analye 'any aspects of ()yin* and sellin* (eha2io)r.

a)ction for'ats. etc. and co'pare these +ith pre2io)s theoretical and e'pirical findin*s

1)st as econo'ists ha2e sho+n interest in e!ayJs operations. co'p)ter infor'ation syste's

researchers ha2e also sho+n interest in e!ay ecently Michael Go)l. Chair'an of theCo'p)ter Infor'ation #yste's depart'ent of the = P Carey #chool of !)siness at Ariona

#tate "ni2ersity. p)(lished an acade'ic case (ased on e!ayFs (i* data 'ana*e'ent and )se

In the case. Go)l disc)sses ho+ e!ay is a data-dri2en co'pany +hich processes 74 peta(ytes

of data a day

e!ay )ses a syste' that allo+s different depart'ents in the co'pany to chec, o)t data fro'

their data 'art into sand(o9es for analysis Accordin* to Go)l. e!ay has already e9perienced

si*nificant ()siness s)ccesses thro)*h its data analytics To contin)e i'pro2in* the ()siness

thro)*h data-dri2en decision 'a,in*. e!ay e'ploys 7.444 data analysts

Millions of collecti(les. decor . appliances. co'p)ters. f)rnishin*s. eH)ip'ent. do'ain

na'es. 2ehicles. and other 'iscellaneo)s ite's are listed. (o)*ht. or sold daily on e!ay

In 344. e!ay la)nched its !)siness Ind)strial cate*ory. (rea,in* into the ind)strial

s)rpl)s ()siness Generally. anythin* can (e a)ctioned on the site as lon* as it is not ille*al

and does not 2iolate the e!ay Prohi(ited and estricted Ite's policy

#er2ices and intan*i(les can (e sold. too :ar*e international co'panies. s)ch as I!M. sell

their ne+est prod)cts and offer ser2ices on e!ay )sin* co'petiti2e a)ctions and fi9ed-priced

storefronts

#eparate e!ay sites s)ch as e!ay "# and e!ay "< allo+ the )sers to trade )sin* the local

c)rrency #oft+are de2elopers can create applications that inte*rate +ith e!ay thro)*h

the e!ay API (y joinin* the e!ay De2elopers Pro*ra'

http://en.wikipedia.org/wiki/W._P._Carey_School_of_Businesshttp://en.wikipedia.org/wiki/W._P._Carey_School_of_Businesshttp://en.wikipedia.org/wiki/Collectablehttp://en.wikipedia.org/wiki/Collectablehttp://en.wikipedia.org/wiki/Interior_designhttp://en.wikipedia.org/wiki/Home_appliancehttp://en.wikipedia.org/wiki/Furniturehttp://en.wikipedia.org/wiki/Furniturehttp://en.wikipedia.org/wiki/Toolhttp://en.wikipedia.org/wiki/Toolhttp://en.wikipedia.org/wiki/Toolhttp://en.wikipedia.org/wiki/Domain_namehttp://en.wikipedia.org/wiki/Domain_namehttp://en.wikipedia.org/wiki/Intangible_assethttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/EBay_APIhttp://en.wikipedia.org/wiki/W._P._Carey_School_of_Businesshttp://en.wikipedia.org/wiki/W._P._Carey_School_of_Businesshttp://en.wikipedia.org/wiki/Collectablehttp://en.wikipedia.org/wiki/Interior_designhttp://en.wikipedia.org/wiki/Home_appliancehttp://en.wikipedia.org/wiki/Furniturehttp://en.wikipedia.org/wiki/Toolhttp://en.wikipedia.org/wiki/Domain_namehttp://en.wikipedia.org/wiki/Domain_namehttp://en.wikipedia.org/wiki/Intangible_assethttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/EBay_API


28/48

In 1)ne 3447. there +ere 'ore than 57.444 'e'(ers in the e!ay De2elopers Pro*ra'.

co'prisin* a (road ran*e of co'panies creatin* soft+are applications to s)pport e!ay ()yers

and sellers as +ell as e!ay Affiliates

Contro2ersy has arisen o2er certain ite's p)t )p for (id ;or instance. in late 5. a 'anoffered one of his ,idneys for a)ction on e!ay. atte'ptin* to profit fro' the potentially

l)crati2e /and. in the "nited #tates. ille*al0 'ar,et for transplanta(le h)'an or*ans

On other occasions. people and e2en entire to+ns ha2e (een listed. often as a jo,e or to

*arner free p)(licity In *eneral. the co'pany re'o2es a)ctions that 2iolate its ter's of

ser2ice a*ree'ent

CHAPTER-III:

ANAL1SIS

AND

http://en.wikipedia.org/wiki/Kidneyhttp://en.wikipedia.org/wiki/Organ_transplanthttp://en.wikipedia.org/wiki/Terms_of_Servicehttp://en.wikipedia.org/wiki/Terms_of_Servicehttp://en.wikipedia.org/wiki/Kidneyhttp://en.wikipedia.org/wiki/Organ_transplanthttp://en.wikipedia.org/wiki/Terms_of_Servicehttp://en.wikipedia.org/wiki/Terms_of_Service


29/48

INTERPRETATION

OFDATA

DATA-INTERPRETATION AND ANAL1SIS

Analysis of data is a process of inspectin*. cleanin*. transfor'in*. and 'odellin* data +ith

the *oal of disco2erin* )sef)l infor'ation. s)**estin* concl)sions. and s)pportin* decision-

'a,in*

The follo+in* section *i2es co'parati2e data analysis of the Indian eco''erce 'ar,et and a

co'parison (et+een Fli+,a!t Aao# S#a+$eal eBa*.

T!a3el %e"to! i% lea$i#g t&e 7a* i# E-Coe!"e. +ith 5Q@rd of all tra2el (oo,in*s are done

online Tra2el ind)stry in India is *ro+in* faster than other non-tra2el ind)stries li,e E-

tailin*. financial ser2ices. classifieds and other ser2ices?

http://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Information


30/48

http://www.mbaskool.com/business-articles/marketing/9146-online-tourism-is-india-lagging-behind.html

The a(o2e chart sho+s that eco''erce in India is 'ost pre2alent in the T!a3el I#$(%t!*

Also it sho+s the +ell-,no+n fact that the eco''erce 'ar,et in India has *ro+nsi*nificantly fro' Dece'(er 344 to Dece'(er 345@

India has an internet )ser (ase of a(o)t 3743 'illion as of 1)ne 3456 The penetration of e-

co''erce is lo+ co'pared to 'ar,ets li,e the "nited #tates and the "nited


31/48

=ithin the s'all percenta*e of people +ho ()y online. the distri()tion is 2ery one-sided

Online tra2el ser2ices +ith a 'ar,et share of a(o)t do'inate the Indian online p)rchase

space This is follo+ed (y e-tailin* +ith B share. financial ser2ices contri()tin* B. di*ital

do+nloads co'prisin* 3 and other online ser2ices ha2in*

There has (een a shift in the )sa*e of eco''erce (y the Indian cons)'er In 3454 the tra2elind)stry occ)pied B4 of the Indian 'ar,et and no+ this share has (een red)ced to The

Indian c)sto'ers ha2e no+ started considerin* )sin* the internet for shoppin* of other

prod)cts as +ell +hich incl)de e-tailin*. financial ser2ices. etc

IndiaFs eco''erce 'ar,et is esti'ated to ha2e reached reached a(o)t K54-5 (illion last

year. +ith an ann)al increase of BB and analysts project that (y 3434 it co)ld (e +orth a

+hoppin* K4-B4 (illion.

PRODUCTS SOLD IN THE INDIAN ECOMMERCE MARKET

Source: $SS%&'$( )eport* +ecember 2*214

Accordin* to the A##OC>AM /Associated Cha'(ers of Co''erce Ind)stry of India0

eport. Dece'(er 34.345@ the prod)cts that are sold the 'ost in the Indian eco''erce

'ar,et are Gift Articles follo+ed (y !oo,s. Electronic Gad*ets. ail+ay Tic,ets. Apparels

and others

Internet penetration in India has (een increasin* e9ponentially in 344 there +ere only 35

'illion acti2e internet )sers. +hich rose to 36@ 'illion )sers (y 1)ne 3456 #i')ltaneo)sly.


32/48

the n)'(er of acti2e 'o(ile internet )sers *re+ to 5B7 'illion The si*nificant rise *a2e a

thr)st to the e-co''erce in India

The *ro+th of eco''erce in India has (een considera(le It has attracted lot of forei*n

in2est'ent in the Indian econo'y

The ta(le that follo+s sho+s the 'ajor happenin*s in the Indian eco''erce 'ar,et o2er the past decade ie fro' 3446 to 3456

I#$ia# e"oe!"e Tieli#e

1EAR HAPPENINGS

899-9;

• e!ay acH)ired !aaeeco' and entered the fled*lin* India 'ar,et

• ;lip,art and Myntra +ere started aro)nd the sa'e ti'e

89


33/48

• ;lip,art la)nched ;lyte Di*ital M)sic #tore. later sh)t do+n in

345@ d)e to lac, of e9pected traction

•

;ashionandyo) acH)ired "r(an To)ch for K@4 'illion cash stoc, transaction in a (id to consolidate

• Indian Postal #er2ice )ndertoo, a 'ajor IT project to 'odernie

its operations

• oc,et Internet (ac,ed 1a(on* started operations in 3453

• Myntra acH)ired the #her #in*h pri2ate la(el created (y

E9cl)si2elyin #her#in*h specialied in sports inspired lifestyle

apparel +hile E9cl)si2elyin specialied in ethnic +ear

1)n*lee +as la)nched (y A'aonin as a price a**re*ator and

co'parison tool

89


34/48

retailers

• ;lip,art *i2en a notice (y the Enforce'ent Directorate for

potential 2iolation of the ;EMA nor's +hile acceptin* ;DIPotential penalty- IN 5644 crore

• Myntra la)nched their pri2ate la(el oadster +ith 'e*a ()d*et

ca'pai*ns r)n only for (randed *oods

• #napDeal acH)ired Dooton. a prod)ct disco2ery platfor'

• A'aon tied )p +ith !PC: in M)'(ai and Delhi

• A'aon tied )p +ith Narayana M)rthy thro)*h his pri2atein2est'ent fir' Cata'aran $ent)res. to (rin* offline s'all sellers

and #M!s online

• A'aon anno)nces plans to in2est K3 (illion in ()ildin* o)t the

Indian operations

The follo+in* *raph sho+s the fo)ndin* years and 2ario)s pop)lar eco''erce co'panies in

India and their prod)cts listed in 'illions of dollars?

http://yourstory.com/2014/06/flipkart-penalized/http://yourstory.com/2014/04/snapdeal-doozton-acquisition/http://yourstory.com/2014/07/amazon-india-investment-flipkart/http://yourstory.com/2014/07/amazon-india-investment-flipkart/http://yourstory.com/2014/06/flipkart-penalized/http://yourstory.com/2014/04/snapdeal-doozton-acquisition/http://yourstory.com/2014/07/amazon-india-investment-flipkart/


35/48

http://yourstory.com/214/,/indian-e-commerce-ecosystem/

As sho+n in the *raph a(o2e e!ayco' +as the 'i!%t to enter the Indian eco''erce 'ar,et

follo+ed (y ;lip,artco' and Myntraco' A little later #napdealco' 1a(on*co' and

A'aonco' follo+edAlso accordin* to the *raph the 'ost prod)cts listed are (y A'aonco'/aro)nd 57 'illion0.

follo+ed (y ;lip,artco' /aro)nd 54 'illion0. #napdealco' /aro)nd 7 'illionco'0 and

e!ayco' /aro)nd 5 'illion 0 and the others

Flipkart, Amazon and Snapdeal, all of them have raised investments or

have commitments of $1 Billion or more. This money is being brned to

ac!ire ne" cstomers, o#er disconts and pmp p prodcts on o#er.

:oo,in* at 54 Indian e-co''erce sites (ased on the 'onthly traffic they *enerate )sin*

#i'ilar+e( to find o)t the n)'(ers for co'parison >ere is the esti'ated 'onthly traffic of

each of the Top 54 players #tats ha2e (een ta,en for 'onth of April 3456U

http://yourstory.com/2014/08/indian-e-commerce-ecosystem/http://yourstory.com/2014/08/indian-e-commerce-ecosystem/


36/48

E9pectedly. ;lip,art topped the charts +ith o2er 3 'illion 2isits in the 'onth of April +ith

Myntra co'in* shade lo+er at 77 'illion Gi2en that (oth of the' ha2e no+ co'e

to*ether. p)rely (ased on the traffic. they cloc, 'ore traffic than the rest B players co'(ined

=hile +e e9pected either A'aon or #napdeal to *ra( the @rd place in ter's of traffic.

1a(on* too, the (rone position +ith 637 'ln 2isitors follo+ed (y #napdeal /@56 'ln0

A'aonin cloc,ed a respecta(le 3 'illion 2isits in 'onth of April /e'e'(er. they ha2e

not e2en co'pleted a year since la)nch as yet0 Also. if yo) co'(ine 1)n*lee. +hich is o+ned

(y A'aon. their traffic ()l*es to close to 64 'ln 2isits e!ay is at a fine position of 33

'illion esti'ated 2isitors per 'onth


37/48

We #o7 &ea$ to t&e "o+a!i%o# )et7ee# o(! t7o $oe%ti" +la*e!% 4Fli+,a!t."o a#$S#a+$eal."o5 a#$ t&e o%t $oi#a#t i#te!#atio#al +la*e! 4Aao#."o5:

Source: (ail oday* hursday* %ctober 1*214

T&e 'ollo7i#g g!a+& %&o7% t&e #et !e3e#(e a#$ lo%% "o+a!i%o# )et7ee# Fli+,a!t

S#a+$eal Aao# 'o! t&e *ea! 8>


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+ata Source: Techcircle 0 Note: All fi*)res are in IN Crore

lease note that the revene %gres in the grap are not the price of

prodcts sold &'()*, as these are all marketplaces, and their revenescome from commissions they get from sellers or listing fees that they

charge to list the prodcts on their site.

'() or 'ross (erchandize )ale represents the price of prodcts sold and

net revenes are +st a fraction of that

Flipkart leads the race "ith net revene of 1- crore follo"ed by Amazon

at 1/0. crore and Snapdeal at 12.11 crore.

3o"ever, "hen it comes to losses, Flipkart leads by a mch bigger margin

and their loss for 4516712 stands at 8s. 255 9rore. 9omparatively,

Amazon losses are pegged at 8s. 641.6 crore and Snapdeal had leastlosses of 6 "ith 4/2./ crore

http://techcircle.vccircle.com/2014/11/06/peek-at-how-indias-top-three-e-com-marketplaces-flipkart-amazon-snapdeal-fared/http://techcircle.vccircle.com/2014/11/06/peek-at-how-indias-top-three-e-com-marketplaces-flipkart-amazon-snapdeal-fared/http://techcircle.vccircle.com/2014/11/06/peek-at-how-indias-top-three-e-com-marketplaces-flipkart-amazon-snapdeal-fared/


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T&e g!a+& )elo7 %&o7% &o7 ("& lo%% ea"& +la*e! i#"(!% 'o! e3e!* !(+ee i# #et!e3e#(e%:

Flipkart leads the race here to losing 4.46 rpees for every 1 rpee of

revene. Amazon loses 1.5 and Snapdeal has least amont of losses at

8s. 1.-4.

No7 "o+a!i#g t&e t7o i#te!#atio#al +la*e!% i# t&e I#$ia# "oe!"e a!,et:

A co'parison of re2en)e *ro+th and 2al)ation ')ltiples +ith e!ay Inc shed li*ht on the

2al)e in2estors see at A'aon


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A'aon is a clear +inner on the 'eas)re of top line *ro+th >o+e2er. e!ay has (een

*ro+in* at sta(le profit 'ar*ins a*ainst A'aonFs sole foc)s on top line res)ltin* in a 'ore

sta(le earnin*s *ro+th at e!ay =e no+ ta,e a loo, at the 2al)ations the t+o co'panies

c)rrently enjoy in the 'ar,et =e prefer to e2al)ate the t+o co'panies on the price-to-

earnin*s /PQE0 ratio on acco)nt of differences in their re2en)e reportin* and reco*nition

policies. +hich i'pact the price-to-sales co'parisons The chart (elo+ displays the c)rrent

PQE ')ltiples of the t+o co'panies

Relati3e 0al(atio# Co+a!i%o# o' Aao# ? eBa*

e!ay A'aon

:TM Earnin*s 35B 47

C)rrent #toc, Price /Mar 4. 3456 closin* price0 K7@ K@35

:TM Price Earnin*s ratio /PQE0 334 @4B


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A'aon c)rrently enjoys a pre'i)' 2al)ation as co'pared to E!ay. 'ainly on acco)nt of

faster top line *ro+th8 hence the i'portance of top line *ro+th to an A'aon in2estor is far

'ore i'portant as co'pared to top line *ro+th for an E!ay in2estor

A leadin* national daily recently sho+ed the follo+in* co'parison in the Di+ali sales share

of the 'ostly )sed eco''erce portals in India?

Di7ali Sale%

Flipkart 6:

eBay ;ndia 46:

Amazon ;ndia14.41

:Snapdeal 2:

eBay ;ndia > 1/:

Amazon ;ndia and others> 44:

Snapdeal 1-:

Diwali Shopping

Source: (ail oday* (onday* o!ember * 214

;lip,art (ein* one of the oldest and 'ost reco*nied eco''erce co'panies in India has (een

leadin*8 #napdeal started +ith deals. ()t H)ic,ly shifted to prod)cts and has (een *ro+in*


42/48


43/48


44/48

CONCLUSION

;ro' the co'parati2e st)dy of the fo)r 'ain players in the eco''erce 'ar,et in India +e

dra+ o)t the follo+in* concl)sions?

• ;irstly eco''erce in India has only recently started *ro+in* to a considera(ly hi*h

le2el This ne+ shift in the perspecti2e of the Indian ()yers has attracted lot of forei*n

in2est'ent into the co)ntryFs econo'y

• The contri()tion of eco''erce in the co)ntryFs GDP is *oin* to rise considera(ly in

the near f)t)re +hich 'a,es in2est'ent in the eco''erce 'ar,et a(sol)tely

necessary

• ;lip,artco' (ein* one of the first eco''erce sites in India is still the 'ost pop)lar

This is 'ainly d)e to the fact that they ha2e (een pro2idin* ser2ices as per the

reH)ire'ent of the Indian ()yers fro' the (e*innin*

• The ()siness 'odel adopted (y ;lip,artco' is H)ite si'ilar to that of A'aonco'

()t 'odified for the Indian 'ar,et +hich *i2es it an ed*e o2er its co'petitors

• e!ayco' altho)*h (ein* the first forei*n co'pany to enter the eco''erce 'ar,et

has not *ained as ')ch pop)larity as the others in the 'ar,et

• #napdealco' has no+ started *ainin* ne+ cons)'er (ase ()t is still (ehind

;lip,artco' d)e to so'e lac, in the ser2ices pro2ided

• #napdealco' has also attracted in2est'ent fro' forei*n *iants recently This sho+s a

positi2e *ro+th in the 'ar,et share that #napdeal 'i*ht acH)ire in the f)t)re

• A'on* the forei*n players A'aonco' ta,es the no5 spot The (rand i'a*e that

A'aon has 'ade for itself in the international 'ar,et has si*nificantly helped it in

esta(lishin* itself in the Indian 'ar,et

• ;lip,art tho)*h enjoyin* the no5 spot in the Indian 'ar,et +ill soon (e facin* stiff

co'petition fro' A'aonco' and #napdealco'

• ;lip,art has (een 'ost s)ccessf)l a'on* others also recently topin* the chart for theDi+ali sales


45/48

• The Indian eco''erce 'ar,et is to *ro+ tre'endo)sly in the co'in* years +ith the

ri*ht a'o)nt of in2est'ent co'in* in

• The Indian c)sto'ers ha2e finally started tr)stin* the portal of eco''erce rather than

j)st the traditional physical shoppin*

• All eco''erce co'panies are p)ttin* in effort to e9pand their (ase in the Indian

'ar,et loo,in* at its potential


46/48

RECOMENDATIONS

Nee$ 'o! $i''e!e#t a#agee#t o' +&*%i"al i#'!a%t!("t(!e

The ()siness 'odel of the con2entional retailers and e-co''erce pro2iders differ

si*nificantly The con2entional infrastr)ct)re 'odel relies on increasin* depth and (readth of

co2era*e thro)*h se2eral in2entory nodes. +areho)ses and stoc,in* points connected (y

(ased on 2ario)s other factors ran*in* fro' prod)ction cycles. nat)re and 2ariety of the

#


47/48

e-"oe!"e

Acti2e 'ana*e'ent of lo*istics. infrastr)ct)re and ser2ice le2els is core to the e-

co''erce ()siness in any 'ar,et E-retailers need to ha2e a hy(rid 'odel of their o+n

capti2e lo*istics ar' +hich ta,es care of their specific ()siness 'odel needs and strictly

'onitored ser2ice le2ela*ree'ents +ith @P:s to rationalise the deli2ery costs

The f)t)re co'petitors and +inners in the e-retailin* space +ill (e the ones +hich +ill )se

(oth (ric,s and clic,s and not (ric,s or clic,s alone

This is e2ident fro' the e2ol2in* lo*istics and stora*e strate*y of A'aon in the "#

A'aon has chan*ed its lo*istics net+or, fro' the

sell all. carry fe+F. 'odel to the sell all. carry 'oreF 'odel and increased the n)'(er of

+areho)ses across the

"# This e2ent)ally pro2ed (eneficial for A'aon as the increased n)'(er of +areho)ses

led to (oth (etter reach and ran*e for the s)ppliers and c)sto'ers +hich e2ent)ally res)ltedin faster ser2ice deli2ery and increased c)sto'er retention A'aon is f)rther in2estin* 56

(illion "#D in increasin* its +areho)sesF (ase (y 74 in the "#

#trictly 'onitored ser2ice le2el a*ree'ents +ith @P:s +hich ha2e de2eloped the e9pertise

and s,ills to handle the 2a*aries of the c)sto'ers in the e-co''erce space has pro2en

(eneficial for e-retailers as they are a(le to o)tso)rce the s,ills (est s)ited to the @P:s A

s)ccessf)l e9a'ple in ter's of )sa*e of #:As +ith @P:s is of e!ay +hich has partnered

+ith co)riers and allied ser2ice pro2iders for the lo*istics +ith closely controlled #:As

BIBLIOGRAPHY

http?


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ASS=93A( 8eport Gecember 45,4512

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Documents

Comparitive analysis of e commerce portals