COST AND BENEFIT ANALYSIS OF ONLINE

BUSINESS

PRESENTED BYANKIT CHAUHANNIHARIKA SINGH SOLANKIPARAMJOT SINGHSARABJEET KAUR

Electronic business, or e-business or Online Business is the application of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business.

Electronic commerce, or e-commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses or e business refers to business with help of internet i.e. doing business with the help of internet network.

The term "e-business" was coined by IBM's marketing and Internet team in 1996.

INTRODUCTION

CLASSIFICATION OF E-COMMERCE BY THE TYPE OF BUYER AND SELLER

1. Business to Business (B2B)

2. Business to Customer (B2C)

3. Customer to Business (C2B)

4. Customer to Customer (C2C)

Product to sell

Website

Domain name

Web hosting server

BASIC REQUIREMENTS

• Shopping cart software

• Merchant services provider

• Marketing

• Third-Party sites

SOFTWARE REQUIREMENTS

COST INVOLVED

• Website

• Cost of products

• Warehousing

• Logistics

• Business taxes

Implementation Costs for online business

• Transportation Cost

•Rent and utilities

• Implementation cost of marketing program

•Human Resource

Legal Requirements To Start An E-Commerce Website In India

Company registration

A working bank account with your company name

Import / Export license

Application to Payment Gateway

PHYSICAL PRODUCT FLOW

REASONS WHY COMPANIES SHOULD START DOING BUSINESS ONLINE

NEW ECONOMY

INTERNET IS A PERFECT VENUE FOR BUSINESS.

COMPANY’S IMAGE

PROVIDE BETTER CUSTOMER SUPPORT

MAKE INFORMATION MORE EASILY AVAILABLE TO CUSTOMERS

ABILITY TO DO BUSINESS 24 HOURS.

LOW START UP COSTS.

GO GLOBAL

E- COMMERCE IN INDIAIndia has an internet user base of about 243.2 million as of January 2014

Despite being third largest userbase in world, the penetration of Internet is low compared to markets like the United States, United Kingdom or France but is growing much faster, adding around 6 million new entrants every month

In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail activities

Demand for international consumer products (including long-tail items) is growing much faster than in-country supply from authorised distributors and e-commerce offerings.

TOP E- COMMERCE

WEBSITES

• Founder-Sachin Bansal (CEO Co-Founder) and Binny Bansal (COO Co-Founder)

• Background- IIT Delhi and ex- Amazon • Year-2007

• Investment-4 lacs ($9000)

• Headquarters- Bangalore

• Human Capital- 4500+ employees 2500+ developed on field in distribution & operations

• Current Valuation- 1$ Billion

• Revenue- 1180 cr. (US 190$ million-2012-13)

INTRODUCTION

FLIPKART Offers Wide Range of products .Over 15 million products – still counting • Movies • Music • Games • Mobiles • Cameras • Computers • Healthcare and Personal Products• Home appliances and electronics • Stationary • Perfumes • Toys and many more…

PRODUCT PORTFOLIO

SOURCES

ANY QUESTIONS