Project-on-E-Commerce-Applications by Muskan Goyal
Project-on-E-Commerce-Applications by Muskan Goyal
ON
“E-Commerce Applications”
Submitted in the Partial Fulfilment for the Award of Degree of
Masters of Business Administration (MBA) under
Bharati Vidyapeeth Deemed University Pune
BATCH: 2022-2024
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STUDENT DECLARATION
I Muskan Goyal (MBA 2nd SEM) would like to declare that the Project report entitled
“E-COMMERCE APPLICATIONS”. Submitted to Bharati Vidyapeeth Deemed University
School of Distance Education Academic Study Centre-BVIMR, and New Delhi in partial
Fulfilment of the requirement for the award of the degree.
It is an original work carried out by under the guidance of MR. YASHWANT KUMAR. All
respected guides, faculty member and other sources have beer properly acknowledged
and the report contains no plagiarisms.
To the best of my knowledge and belief the matter embodies in this project is a genuine
work done by me and it has been neither submitted for assessment to the university nor
to any other University for the fulfilment of the requirement of the course of study
MUSKAN GOYAL
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ACKNOWLEDGMENT
I would also like to give my sincere gratitude to my friends and colleagues who help
me in collecting information and preparing this report.
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Table of Contents
Chapter-I Introduction…………………………………..
Literature Review………………………………..
Methodology…………………………………….
Objectives of the Study……………………
Scope of the Study……………………………
Sample Size……………………………………..
Limitations of the Study…………………………
Chapter-IV Recommendations…………………….
Conclusion………………………………………
Bibliography/ References………………………
Questionnaires………………………………….
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Introduction
What is E-Commerce ?
Electronic commerce, commonly known as E-commerce or
eCommerce, 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 interchange (EDI),
inventory management systems, and automated data collection systems.
Modern electronic commerce typically uses the World Wide Web for at
least one part of the transaction's life cycle, although it may also use
other technologies such as e-mail.
E-commerce businesses may employ some or all of the
following:
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• Marketing to prospective and established customers by
email or fax (for example, with newsletters)
• Engaging in pretail for launching new products and
services
According to an Associated Chambers of Commerce and Industry of
India
(ASSOCHAM) survey, the online retail market in India may grow to
Rs.70 billion (over
$1.30 billion) by 2015 from Rs.20 billion in 2011 as internet access
improves
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India has always been a land of great potential. The socioeconomic
condition of the country has improved many folds after independence
and India is now emerging as one of the leading countries in the world.
Moreover with a population of over 100 crore and a growth rate of above
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.
Online Shopping
Which company flashes in your mind first? Flipkart, Amazon, eBay
etc.
Well, let us talk about the home-grown, Indian, e-commerce site
‘Flipkart’, also considered as the Amazon of India
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)
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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 favourite 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 [Link], [Link] 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 amongstconsumers is still relatively low in India. In view of
above problem an empirical study of online buying behaviour 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 Behavioural Business
Intelligence framework with a cohesive view of online buyer behaviour.
For better understanding the factors of internet and consumer shopping
behaviour 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 or less related on internet shopping and consumer
behaviour. 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.” -Archana Shrivastava &
Ujwal Lanjewar (2011)
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Advantages of Online Shopping
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6) Find items you might not see in stores : Since
brick and mortar stores are limited on space, merchants usually don’t
carry all of the items they sell in store. Online, you can find their entire
inventory, along with many choices of colors, styles, and even
customization options. Shop on the Internet so you can find exactly
what you want.
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 mindset.
There have been many websites that have been launched with the
objective of selling products to customers. Products belonging to various
product sectors are now being sold on these websites and the range is
quite a large one right from expensive laptops and LCD televisions to
mundane grocery items.
The frequency of B2C transactions has certainly increased over
time in the Indian subcontinent. There are many shopping websites,
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which are now witnessing a decisive surge in traffic (this statement is
being made while keeping in view the performance of shopping
websites in the last five years). With an increase in the number of
persons visiting these websites, they have also become ideal platforms
for advertisements and banners of different brands.
Online shopping in India, is certainly witnessing a period, which
entails things such as rising number of online sales and fantastic
revenue and profit figures.
There have been many products, which have caught the fancy of
online shoppers and one of them is a handset. Handsets, irrespective of
the brand, are being sold in magnanimous numbers on different
websites. All the major market players in the telecommunications
sector, FMCG sector, services, mobile sector etc. are doing quite well
with the sales that they are getting from this online platform. The
money that is earned is being put to good use by using it in the
betterment of the respective R&D departments.
Apart, from the businesses doing well, the customers are also given
many fantastic features. Some of them include things such as free gifts
with every online purchase while some involve special offers that are
quite economical and affordable.
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Growth of online retailing in India
India e-commerce has grown at a compounded annual growth rate
of 30% since FY09, and is expected to be $18 billion (around Rs
1,116,00crore) opportunity by
FY15. The findings part of report: Indian Ecommerce-Tip of the
Iceberg, by Macquire Equities Research back this high growth rate on
rising internet population, over 300 million middle class population,
increasing mobile penetration and low levels of ecommerce activity.
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“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.
Methodology
Research Design
The type of design being used for making this project is Meta-Analysis
Design.
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Objectives
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Scope of the Study
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 customers preference and feedback
for
the online shopping sites flipkart. Unstructured interview was
conducted for some of the respondents to find out the drawbacks of the
online model of flipkart
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Secondary Data
Secondary data was collected thorough various websites and
articles available on the internet.
Sampling Size
• 100 respondents were taken out of which 80% of the population are
frequent users of online shopping.
Tools
The tools used for analyzing data are rating method; graphs, pie
charts etc.
Questionnaire is distributed to the individual respondents and special
care has been taken to make him/her feel comfortable so that, he/she
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could answer all the questions. This method is followed to get unbiased
answers.
Technique of Analysis
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Conceptual Framework/ National and
International Scenario
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Sachin and Binny Bansal co-founded the e-commerce site in 2007
after resigning from their jobs at Amazon India. With Rs. 4 lakh in seed
capital and just the two of them as employees, they were pouncing on a
demand-supply gap in online bookselling. The duo initially did
everything, from programming, forging supplier relationships and book
procurement to logistics, packing and shipping. “It was a minimal start
and a case of figuring out things as they came,” Sachin recalls. “We
started earning customer goodwill, and what followed was phenomenal
word-of-mouth publicity. We became profitable in six months.”
When you browse the website, add items to the shopping cart, and
confirm your order, you trigger Flipkart's automated communication
system. It reads your postal address code and routes the purchase order to
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one of the company's four warehouses — in Mumbai, Delhi, Kolkata and
Bangalore. If the book is not in stock, the nearest supplier is
automatically queried. When the book is available, it is packed and
picked up by a courier company within four to 24 hours. The book
arrives at your address within one to three days. According to Sachin, the
company is “aiming at 24-hour delivery of most books because that's
what the customer seeks. In the future, a customer can order a book in
the morning and get it by evening.”
Regional Market
The company is also busy switching to selling music, movies,
mobile phones and game, besides books. Flipkart is also deepening its
presence in book selling by targeting the regional language book
market, which has largely been untapped. “More books are read in
regional languages. It is tough to get a book supplier on board, but once
that is in place, this business will further explode,” says Sachin.
Things are easier said than done! To realize our dreams and that
also in such a grand manner is really a tough task. The founders of
Flipkart have probably conquered their dreams with the amazing
success of Flipkart. Flipkart is something which has really opened up
the Indian e-commerce market and that also in a big way.
Flipkart began with selling books, since books are easy to procure, target
market which reads books is in abundance, books provide more margin,
are easy to pack and deliver, do not get damaged in transit and most
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importantly books are not very expensive, so the amount of money a
customer has to spend to try out one's service for one time is very
minimal. Flipkart sold only books for the first two years. Flipkart started
with the consignment model (procurement based on demand) i.e. they
had ties with 2 distributors in Bangalore, whenever a customer ordered a
book, they used to personally procure the book from the dealer, pack the
book in their office and then courier the same. In the initial months the
founder's personal cell numbers used to be the customer support
numbers. So, in the start they tried their best to provide good service,
focus on the website - easy to browse and order and hassle-free, and
strove hard to resolve any customer issues. Since there were not any
established players in the market, this allowed them a lot of space to
grow, and they did in fact grew very rapidly.
The company started from 2 employees and now has around 4500
employees. Flipkart started with consignment model as discussed
above, since most of the customer issues like delivery delays etc. result
from procurement model, the company started opening its own
warehouses as it started getting more investments. The company
opened its first warehouse in Bangalore and later on opened
warehouses in Delhi, Kolkata and Mumbai. Today the company works
with more than500 suppliers. As on date more than 80% orders of
Flipkart are handled via warehouses which helps in quick and efficient
service.
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books both offline and online, it enjoys an online share of around 80%.
The electronic items have a large number of players like Naaptol,
Letsbuy, Indiaplaza, Tradus, Infibeam, Yebhi etc. The electronic market
share is distributed among them in different unknown proportions.
India has around 13.5 crore internet users today where as the
number of homes with Cable and Satellite (C&S) television is 10.5
crore. The expected internet users will reach a figure of 30 crore by
2014 and C&S homes are expected to be 14 CRORE by 2014. Thus India
has a tremendous internet growth and with the customers getting
accustomed to e- commerce, the future of e-commerce sector is
definitely rosy. An approximated 25 lac people have transacted online
this year, the number is all set to increase with time. Also to mention
most of the Flipkart customers use internet from PC's/Laptops to order
goods. The use of mobile internet is very less at the moment, but with
the advent of smart phones the use of mobile internet for e-commerce
transactions will soar with time. India has 8 CRORe mobile net users at
the moment, the number is expected to swell to 22.5 crore by 2014.
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3)A very important point is that they introduced the option of cash
on delivery and card on delivery, this way people demonstrated more
confidence in buying products. An interesting is that fact, today Flipkart
sells 20 products/min and has a massive customer base, still more than
60% of the Flipkart's customers use Cash on Delivery and card on
delivery methods. This is because of two reasons, one is many people do
not know how to make payments online. And secondly people do not
have immense trust in e-commerce in India. Flipkart also provides a 30
day replacement guarantee on its products and EMI options to its
customers for making payments.
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Future Road Map
Going forward electronics will be given more focus. Flipkart has
recently added a string of electronic items like calculators, water
purifiers, microwave ovens, washing machines, dish washers, vacuum
cleaners etc.
Flipkart has opened a music store which sells CD's and DVD's of
movies' music releases and music albums. Flipkart has also acquired
Bollywood movie content from Chakpak. Since digital media in going to
rise in near future, Flipkart is geared up for the same. Soon it will start
offering digital content like movies and songs online, as in the customers
can pay and stream online digital content. Flipkart will also provide
ebooks very soon.
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Figure 1
The above Figure 1, shows the Age Group and Gender of the number
of customers who were taken as samples for the sample study. By
analysing the same we could conclude the following:-
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Rise of E-Commerce- The Indian Scenario
Figure
2
The above Figure 2, show the occupation of customers who were taken
as samples for the sample study. By analysing the same we could
conclude the following:-
The above Figure 3, line graph shows the frequency of visits by the
number of customers who was taken as samples for the sample study
with their monthly income. The following table will show us the
frequency of visits of customers belonging to various income groups.
Frequency Monthly Income of the customers Total
Of Visits Number of
Frequency
of visits
More than 11 3 3 3 20
once a
month
Once in 1- 7 4 3 3 17
2
Months
Once 3-6 18 12 5 5 40
Months
Once in 7- 6 9 5 3 23
12 Months
Page 21 of 37
Figure 4
No
Above Figure 9, shows that when the respondents were asked that why
they prefer shopping on Flipkart over other shopping sites:-
• 50% said that Flipkart provided them better and prompt service
• While 30 % among them said that they get wide variety of options
on flipkart.
• Another 15% said that they get products in right price While
remaining 5% said that they get better quality products.
.
Figure 10
Above Figure 11, shows that when they were asked to suggest any draw
backs:-
• 95% of the respondents said they feel no drawbacks in the
functioning of Flipkart
• While 5% felt that there are still some drawbacks in Flipkart
Figure 12
%
The above Figure 12, show how many respondents are satisfied with
Flipkart, out of which:-
Findings
1)90% of respondents feel safe in online shopping they have no fear
and have started shopping online while still 10% are hesitant of
shopping online they are the late majority type of customers who
adopt the technology and advancement in later stage.
2)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 in which they get opportunity
to physically observed the products and then buy
3)Even though flipkart doesn’t have a big list of competitors but there
are stores which have grabbed attention of buyers namely
Jabong, eBay, Myntra, Amazon, Zovi
4)80% of the respondents said that they have excellent first time
experience with flipkart while 15 % said they have overall good
and remaining said that they have average experience while
shopping first time with flipkart
5)More than majority of respondents had an amazing first
experience with the site and prefer flipkart over its competitors due
to the quick services, wide variety safety reasons , cash on delivery
facility, low prices and most importantly being an Indian venture
which as wide availability of products .
6)Respondents are satisfied by the business model of flipkart as it is
a very systematic organization
7)Flipkart is a very price efficient company because offers the
products directly from the manufacture and eliminates the profit
margin of the mediators’ Products at prices lower than the market
price
8)The respondents is very satisfied with the homogeneous list and
options flipkart offers to its customers
9)More than 50% of the consumers feel that products of by flipkart
are of excellent quality, durable and worth the cost
10)Flipkart is a consumer friendly site and offers special after sale
services which includes replacement of goods in 7 days
11)Flipkart offers warranty for its goods, depending on the type of
product.
Flipkart 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. Similarly regarding the return policy a small
percentage of the respondents have faced delays butthe larger section
of the respondents had a great experience regarding the returns policy
of the goods
12)On a scale of 10, Flipkart users have rated its behaviour 6 points
to 9.5 points depending on their personal experiences
13)Flipkart users are not hesitant in recommending the site to any
friends
14)2% of customers had a bad experience with flipkart, regarding
the timely delivery and the delay in return of goods, which is not a
bad ratio and can be improved further.
Recommendations
1)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
2)There is also need to remove the fear in the minds the
customers regarding the product quality, durability and
payments etc. in online shopping
3)Wide expansion of internet facilities in rural areas can bring the
more customers for the online shopping sites
4)Through prompt service, wide variety and easy accessibility even
consumers from the remote areas can be tapped
5)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 service has will help a lot of
traditional consumers turn to online shopping
6)India’s e-commerce companies have far too often concentrated
on the bells and whistles instead of focusing on deploying and
customizing technology to serve customer needs, so their need
more customer centric approach.
7)Calling facility to make an order and change an order as well as,
Urgent delivery with no extra cost service can add a cherry on the
cake and would help flipkart to perform even better than its
competitors
Conclusion
Online shopping is the new mantra of this age and the people of
India are applying this in their lives to a great extent nowadays. As we
progress further, the growth rate of online marketing in our country will
leap to the stars. According to a research report — State of ecommerce
in India by Commerce for ASSOCHAM,
“India’s Internet base, is already the third highest in the world after
China and the US, is growing by nearly 40% 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 persons who prefer shopping online
At the end it can be said that Flipkart has become the fate of
online business in India. The company is currently valued at around 1
billion dollars i.e. 5000 crore. More importantly Flipkart has ushered in
the e-commerce era in India. This has generated massive interest in
ecommerce 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 thus helps the Indian Inc. growth
story as well.
Bibliography/ References
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) [Link]/msccs/[Link]
2) [Link]/doc/172706499/Questionnaire-Flipkart#scribd
3) [Link]/IJRIM/Mar17/[Link]
4) [Link]/S/K2VVBZY
5)[Link]/[Link]?PID=83009&SID=818072
6)[Link]/wp-content/ml-
loads.2014/08/onlineshoppingecommerce-ss-
[Link]
7) [Link] .org/wiki/E-commerce 8)
[Link]/about-us
Questionnaire
Respected Sir/ Madam,
I am a student, pursuing [Link] from The Bhawanipur Education
Society College. I am doing project on “Rise of E-Commerce- The
Indian Scenario” about the success story of Flipkart and Online
shopping. I kindly request you to co-operate in my research study by
kindly filling up the following questionnaire.
1)Please tick the age group you belong to
16-24 [ ]
25-34 [ ]
35-49 [ ]
50 or above [ ]
2)Gender
Male [ ] Female [ ]
9) How frequently have you used the ecommerce website for getting
information before shopping at a physical store
Always [ ]
Most Often [ ]
Often [ ]
Quite rarely [ ]
Rarely [ ]
Never [ ]
Product specifications [ ]
Price comparison among products [ ]
10) Tick all the product varieties that you generally prefer buying
online Clothing [ ]
Personal products (perfumes, beauty creams, razors, toothbrush) [
]
Mobiles/ Tablets [ ]
Laptops and accessories [
] Cameras [ ]
Books [ ]
Digital products [ ]