PROJECT REPORT

Submitted for the Degree of Bachelor of Commerce (Honours) in Accounting &

Finance under University of Calcutta

TITLE OF THE PROJECT

E-Commerce (A Study of FLIPKART and AMAZON)

Submitted by
Name of the student :

Registration no. :

Name of the college :

College Roll no. : 579

Supervised by

Name of the Supervisor :

Name of the college :

Month of Submission

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 Supervisor's Certificate

This is certify that a student of B.Com( Honours) in Accounting & Finance

under University of Calcutta has worked under my supervision and guidance for
his project work and prepared with the title E-COMMERCE.

The project report, which he is submitting, is his genuine and original work to
the best of my knowledge.

Place: Signature:

Date:

Name:

Designation:

College:

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 Student's Declaration

I hereby declare that the project work with the title E-COMMERCE submitted
by me for the partial fulfilment of the degree of B.Com (Honours) in
Accounting & Finance under University of Calcutta is my original work and has
not been submitted earlier to any other University for the fulfilment of the
requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by me.

Place: Kolkata. Signature:

Date:

Name of the student :

Registration no. :

Name of the college :

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TABLE OF CONTENTS
TOPICS PAGE
Supervisor’s Certificate 2
Student’s Declaration 3

Acknowledgement 5

Preface
6

1. Introduction of the topic

 Background of Study 9
 Literature Review 11
 Objective of Study 14
 Methodology 15
 Limitations of study & Design of the Study 16
2. Conceptual overview
 E-commerce 17
 Features of E-commerce 19
 Global scenario 20
 Indian scenario 21
 Advantages of E-commerce 23
 Disadvantages of E-commerce 24
 Flipkart 25
 Amazon 26

3. Data analysis and finding

 Research design & Methodology 27
 Analysis of Data 29
 Other findings 38
4. Conclusion & Recommendations
 Conclusion 40
 Recommendations 41
 Limitations in conducting study 42
5. Questionnaire 43

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 ACKNOWLEDGEMENT

It gives me immense pleasure to present this project report, assigned

to me as part of my curriculum course at XXX College. I express my
sincere gratitude for giving me an opportunity to work on such a
project and exploring it.

In this era of increasing competition, it is important that we remain

updated with all details associated with financial market, legal
enactments, rules and regulations. As a member of finance world, I
believe we should have an updated idea about the current market
scenario and rules and regulations impacting the financial areas of the
country.

This project has been made possible because of a thankful support of

a few people. Firstly, I am grateful to our Principal who gave me the
opportunity to do this project, and my respected supervisor,
Prof.XXXX, whose constant guidance and assistance has helped me
to complete the project successfully. Secondly, I am also thankful to
my family and friends who helped me from time to time whenever
was in need of anything for my project and lastly my God who gave
me the strength throughout the tenure of the project, to help me
complete it in time.

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 PREFACE

As per "India Goes Digital", a report by Avendus Capital, a leading Indian

Investment Bank specializing in digital media and technology sector, the Indian
e-commerce market is estimated at Rs. 28,500 Crores ($6.3 billion) for the year
2011. Online travel constitutes a sizable portion (87%) of this market today.
Online travel market in India is expected to grow at a rate of 22% over the next
4 years and reach Rs. 54,800 Crores ($12.2 billion) in size by 2015. Indian e-
tailing industry is estimated at Rs. 3,600 crores (US$800 mn) in 2011 and
estimated to grow to Rs. 53,000 Crores ($11.8 billion) in 2015.

Overall e-commerce market is expected to reach Rs. 1, 07,800crores (US$ 24

billion) by the year 2015 with both online travel and e-tailing contributing
equally. Another big segment in e-commerce is mobile/DTH recharge with
nearly 1 million transactions daily by operator websites.

The project is designed so as to provide an insight into the framework for

understanding the electrified business activities in the dynamic environment of
today. The project makes a comparison of the position of the Indian business
online portal with that of the Global one. The study also indicated the
perceptions of the people regarding Indian E-Business.

Regarding primary data I have tried to know the view of Indians about e-
marketing through different questionnaire on both the companies and e-business
as an aspect of whole. In my study I have tried to accumulate knowledge which
gives a brief overview of the emergence and the on-going status of e-commerce
activities in today’s business world. Rather have tried to make a comparison
between two most market capturing companies like Flipkart and Amazon.

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CHAPTER 1: INTRODUCTION

INTRODUCTION:-

Electronic commerce, commonly known as e-commerce, is a type of industry

where the buying and selling of products or services is conducted over
electronic systems such as the Internet and other computer networks.

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 at least at one point in
the transaction's life-cycle, although it may encompass a wider range of
technologies such as e-mail, mobile devices, social media, and telephones as
well.

E-Business also covers online transactions that would constitute e-commerce; it

covers a broad range of other activities beyond buying and selling goods and
services. Therefore, e-commerce can be said to be a subset of e-business. E-
business activities can include virtually all elements of running a business,
simply moved to an online setting.

Electronic commerce is generally considered to be the sales aspect of e-

business. It also consists of the exchange of data to facilitate the financing and
payment aspects of business transactions. This is an effective and efficient way
of communicating within an organization and one of the most effective and
useful ways of conducting business.

E-Business Components

E-business involves several major components: Business Intelligence (BI),

Customer Relationship Management (CRM), Supply Chain Management
(SCM), Enterprise Resource Planning (ERP), e-commerce, conducting
electronic transactions within the firm, collaboration, and online activities
among businesses.

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CLASSIFICATION OF E-BUSINESS:-

 BUSINESS TO BUSINESS (B2B): It includes the IOS transactions and

electronic market transactions between organizations. IOS Transactions
means Inter Organizational Information Systems refers to flow of standard
transactions information between business partners, such as placing orders,
building or paying.
 BUSINESS  TO  CUSTOMERS (B2C): These are retailing transactions
with individual shoppers.
 CUSTOMER  TO  CUSTOMER (C2C): In this transaction customer sells
directly to customers examples like selling residential properties, cars, etc.,
 NON BUSINESS E-COMMERCE: An increased no. of non-business
institutions such as academic institutions, not for profit institutions religious,
organizations, social organizational activities.
 CUSTOMER TO BUSINESS (C2B):This category includes individuals
who sell products are services to organizations.
 INTRA BUSINESS E-COMMERCE: In this category includes all internal
organizational activities, usually preformed on intranet that involves
exchange of goods, services are information.

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1.1 BACKGROUND OF THE STUDY:-

The e-commerce is one of the biggest things that have taken the Indian business
by storm. It is creating an entire new economy, which has a huge potential and
is fundamentally changing the way businesses are done. It has advantages for
both buyers as well as sellers and this win-win situation is at the core of its
phenomenal rise.

Rising incomes and a greater variety of goods and services that can be bought
over the internet is making buying online more attractive and convenient for
consumers all over the country.

Trends in the Industry:

- Feminization of the Industry
- Mounting Social Media
- M-commerce – A new wave!
- Online Group Buying – Explosive growth!
- After VC’s, Now Celebrities
- Change in the Business Model
- Hiring the best

The Industry is expected to grow at a Compound Annual Growth Rate (CAGR)

of 40%, from US $ 5.9 billion in 2010 to US $ 34.2 billion in 2015E. As Indian
e-commerce market is in nascent stage but it will surely amplify in years to
come. Though there are some weak links, with improvements in technology,
they will be ironed out, making the e-commerce easy, convenient and secure.
The ecommerce is certainly here to stay.
Today, the market place is flooded with several e-commerce options for
shoppers to choose from. A variety of innovative products and services are
being offered spoiling customers for choice. Online shopping is no more a
privilege enjoyed by your friends and family living in the US or UK. Today, it
is a reality in India. In the last couple of years, the growth of e-commerce
industry in India has been phenomenal as more shoppers have started
discovering the benefits of using this platform. There is enough scope for online
businesses in the future if they understand the Indian shopper’s psyche and cater
to their needs.
Cities beyond metros are in the limelight for all the good reasons. On an
average, almost 50 – 55% of our business come from tier 2 and tier 3 cities and

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I believe this ratio is similar across other ecommerce companies in the country.
With metro markets reaching saturation, I believe tier 2 and 3 cities are going to
be the biggest drivers for ecommerce businesses in India in the not so distant
future. Building a robust supply chain is critical to efficiently fulfilling orders
from these cities and tapping their full market potential.

The e-commerce industry is growing at a rapid pace and changing the dynamics
of the retail industry. In the coming years, e-commerce is expected to contribute
close to 8-10% of the total retail segment in India. This growth is bound to
continue provided e-commerce companies focus on innovating, building strong
technology infrastructure and delivering the best customer experience.
The e-commerce frenzy is booming in India nowadays, many e-commerce
portals are popping up every second in India.  And if, reports are to be believed
consumers in India prefer to shop via their mobile phones – with Quikr,
Amazon, and Flipkart being the most popular sites in the country, based on
year-on-year September stats from Opera Software.
Here’s a list of the top 10 e-commerce sites that mobile users in India visited
Top 10 E-Commerce Sites in India
1. Flipkart.com
2. amazon.in/amazon.co.uk
3. quikr.com
4. alibaba.com
5. snapdeal.com
6. homeshop18.com
7. naaptol.com
8. indiamart.com
9. infibeam.com
10. Ebay.com/eBay. in

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1.2 LITERATURE REVIEW:-

 Kenneth Laudon and Jane Laudon authors of Essentials of

Management Information Systems define e-commerce as “The process of
buying and selling goods and services electronically involving
transactions using the Internet, networks, and other digital technologies.”

 “very precise way [of highlighting the way of doing business] because
stakeholders such as chief executive officers, marketers and business
developers should agree on it, and because it is a crucial bottom line part
of the requirements for an electronic commerce system”. Gordijn,
Akkermans and van Vliet.

 “…a Business model is a description of how your company intends to

create value in the marketplace. It includes that unique combination of
products, services, image, and distribution that your company carries
forward. It also includes the underlying organization of people, and the
operational infrastructure that they use to accomplish their work”
Chesbrough and Rosenbloom,

 “In the most basic sense, a business model is a method of doing business
by which a company can sustain itself- that is, generate revenue. The
business model spells out how a company makes money by specifying
where it is positioned in the value chain”. Rapp

 “…the method by which a firm builds and uses its resources to offer its
customers better value than its competitors and to make money doing so
an ecommerce business model can be conceptualised as a system that is
made up of components, linkages between components, and dynamics.”
Afuah and Tucci

 “A loose conception of how a company does business and generates

revenue”, Porter

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 “An ecommerce business model is a description of the commercial
relationship between a business enterprise and the products and/or
services it provides in the market.” Hawkins

 “…a business concept that has been put into practice.” Hamel

 ‘e-Business as the evolution of e- commerce from the buying and selling

over the Internet, and argue that the former is a subset of the latter”. (
Turbanetal,2006)

 Raven et al. compared India and China’s approaches in adoption of e-

business. Based on the literature survey and secondary data, the study
analysed various factors influencing the growth of e-businesses in the two
countries. The factors examined include government policy and focus,
existing technology infrastructure regulatory environment, experience
and understanding of business operations, and culture, among others. The
study concludes that China appears to be ahead of India in the
infrastructure, but India is ahead in e-readiness. Further, it states that both
countries are poised for rapidly increasing e-business, however, problems
of poverty and inequality between urban and rural connectivity must be
resolved to really take advantage of e-business in both the countries.

 Dasgupta and Sengupta paper on e-commerce in Indian insurance

industry discusses the features of e-insurance in comparison with the
traditional offline insurance service. The authors put forth that e-
insurance offers benefits such as reduction in search cost and hidden cost,
price comparison for customers, and benefits such as opportunity to have
niche market, first mover advantage and product bundling for insurance
companies going online. Further, it discusses that status of e-insurance in
India is still formative stage, but stands to gain particularly from the rural
markets since the availability of insurance agent is very less compared to
urban markets. The study is conceptual in nature and offers insights based
on market reports and data from secondary sources.

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 Study by Tarafdar and Vaidya examined the factors that determine the
organizational inclination to adopt E-Commerce (EC). The study
proposes a framework based on the qualitative data on four financial
firms in India collected through multiple case study design. Face to face
interview was used to collect primary data and existing database,
company documents, press reports and websites are used to collect
secondary data. The framework describes two broad factors—leadership
characteristics and organizational characteristics—to explain the
influence of organizational factors on the propensity to employ EC
technologies. The study found that both leadership and organizational
characteristic influence EC adoption. It establishes that leadership
characteristics influence adoption of EC technologies in centralized
organization and organizational characteristics influence EC adoption in
de-centralized organization. The study also found that characteristics of
Information Systems professional and organization structure influence
EC adoption.

 Viswanathan and Pick examined the issue of e-commerce in India and

Mexico from the framework of developing countries as suggested by
Tallon and Kraemer. The framework included critical factors that might
impact the diffusion of e-commerce. The factors are government policy,
legal framework, technology infrastructure, relationship with developed
economies and extent of e-commerce usage by individual, corporate and
government. The study’s primary focus is on India. Mexico is analyzed
more briefly, and compared with India based on common international
datasets. The analysis and the data presented in this paper represent a
synthesis of data from secondary research and data from interviews
conducted with senior executives in the IT industry in India and Mexico.
The study suggests that substantial efforts have to be made to invest in
telecommunications infrastructure, and to create a culture of electronic
payments and e-commerce usage that will support economic growth.

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 1.3 OBJECTIVE OF THE STUDY:-

This project has been prepared with the aim to achieve the following objectives:

 To get an overview of the e-commerce specifically; emerging of e-

business activities in the present sphere
 To assess the latest trend in e-commerce globally.
 The impact of growth of e-commerce.
 To analyse the latest global scenario of e-commerce.
 Scope of the Indian E-business in the near future.
 Comparative analysis of Flipkart.com & Amazon.com.
 What people think about E-Commerce in India?
 The impact of growth on overall economy.

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15
 1.4 RESEARCH METHODOLOGY:-
I have reviewed the academic literature to gain insight into “E-Commerce
in India”. So, various articles, journals, books, websites etc. have been
used to study the evolution, conceptual framework, definitions, key
players, present trends (relating to internet penetration, growth prospects,
modes of payments preferred etc.), future prospects and barriers of E-
commerce.

All the data included is secondary base and proper references have been
given wherever necessary.

The methodology adopted in conducting the study:

 An exercise is being worked out through primary data for getting the
views of public about E-commerce in India.

 The data required for the study has been collected from secondary
sources.

 The relevant information was taken from textbooks, journals and internet.

 Various statistical data and trends have been depicted with the help of
graphical representations like bar chart, line chart and tabular
representation of data etc. to give a better interpretation.

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1.5 LIMITATIONS OF THE STUDY
 Being a 3rd year student I faced difficulty in preparing this project as I
lacked the experience and expertise in the field.

 Being just a student it was difficult for to understand all the technical
terms of E-commerce.

 Faced problem in downloading the required documents from the MCA

site as the site is under improvement.

 Lack of speed internet accessibility due to which the files have taken
ample time to download.

 It was difficult to apprehend the annual statements.

1.6 DESIGN OF THE STUDY:-

1. Conceptual overview

2. Analysis and findings

3. Conclusion and recommendation

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CHAPTER 2: CONCEPTUAL OVERVIEW

2.1: E-COMMERCE

Electronic commerce, commonly known as ecommerce, is a type of industry

where buying and selling of product or service is conducted over electronic
systems such as the Internet and other computer networks. Electronic commerce
draws on such technologies 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 at least at one point in the transaction’s life-cycle,
although it may encompass a wider range of technologies such as e-mail,
mobile devices social media, and telephones as well.
Electronic commerce is generally considered to be the sales aspect of e-
business. It also consists of the exchange of data to facilitate the financing and
payment aspects of business transactions.
E-commerce can be divided into:
 E-tailing or “virtual storefronts” on Web sites with online catalogs,
sometimes gathered into a “virtual mall”
 The gathering and use of demographic data through Web contacts and
social media
 Electronic Data Interchange (EDI), the business-to-business exchange of
data
 E-mail and fax and their use as media for reaching prospects and
established customers

The term e-commerce has been used for describing a variety of market
transactions enabled by information technology and conducted over the
electronic network. E-commerce consists of buying and selling process
which is supported by electronic means primarily the internet. Or e-
commerce involves paperless exchange of business information which
uses electronic mail, electronic data exchange, electronic bulletin boards,
electronic fund transfer and other network based technologies.
Electronic commerce or e-commerce actually began in the 1980s.
It became a global phenomenon in the mid 1990s when companies saw
this as a way to significantly cut costs and increase profit margins.

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    There are five types of e-commerce:-
a. B2B b. B2C c. B2E d. C2C e. C2B

1. B2B

B2B stands for Business to Business. B2B e-commerce is the most cost
effective way for sellers to reach buyers around the globe. Benefits from b2b
websites:

- Promote businesses online.

- Import and export products.
- Find buyers and suppliers.    
-Post trade leads.

2. B2C

B2C stands for Business to Consumer. It is the direct trade between companies
and end consumers. This is the direct selling via the Internet. For example:
selling goods direct to customer and anyone can buy any products from the
supplier's website.

The main difference between B2B and B2C supply chains is that the customers
are different. B2B supply chains deal directly with other businesses while B2C
supply chains generally deal with business directly to the customer. Technology
has really played a major role in changing both, the supply chain of B2B and
B2C.

3. B2E

B2E stands for Business to Employee. B2E is frequently used to refer to the
B2E portal which is company intranet that is customized for each employee.

4. C2C

C2C stands for Consumer to Consumer. The common example of C2C is the
online auction which consumers post items for sale and other consumers bid to
purchase them.

5. C2B

C2B stands for Consumer to Business. C2B enables customers to pay online for
virtually any type of invoice they may have from their homes.

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2.2 FEATURES OF E-COMMERCE

 Breaks geographical barrier: Unlike traditional retail

business, ecommerce is not bounded by geographical
barriers. Today an e commerce company can easily sell
its products to consumers residing in any part of the
country.

 Saves precious time: Ecommerce helps in saving the

most important thing in today’s modern world: ‘Time’.
Consumers from the comfort of their home, office and
even café can buy any product they wish to buy. Thanks
to e commerce, consumers save lot of precious time
that is otherwise wasted if they opt for traditional
shopping.

 Accurate information: Today e commerce companies

across the world are doling out product information’s
that are accurate & to the point, which eventually helps
consumers to make better buying decision. These
information’s are free from all the inaccuracy & hidden
facts that are very much used by traditional retail
models as their selling strategy.  Besides, e commerce
companies also provide accurate information to
customers about billing payment & shipping.
 Ubiquity: Ubiquity means state of being everywhere at
once. With unprecedented growth in the sales of tablets
& smart phones, laptops and other internet related
gadgets, e commerce companies literally follow their
consumers wherever they go. E commerce shopping can
be done even when consumer is walking or jogging.

 Impersonal interaction: Since e commerce technology

completely depends on internet & web to reach to its

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 customers, the interaction with consumers will always
be impersonal in nature; as in it is not face-to-face
interaction.

 Customers are truly king in the e commerce world:

Today every month literally hundreds of e commerce
companies are popping up in every corner of the world. 
This intense among E commerce companies is only
befitting customers, who today have more choices to
choose from and discount vouchers to avail – for
instance Littlewoods Voucher Codes.

 Power of accessibility: Since today e commerce is so

easily accessible by the virtue of power of internet,
consumers can buy anything & everything as and when
they desire for. In fact a mere impulsive desire or slight
craving for a product can lead to expensive shopping,
this is all thanks to accessibility to shopping that is
possible only via e commerce technology.

 Cuts supply chain: E commerce technology has

immensely helped in cutting the cumbersome supply
chain of wholesale & retail and also overreliance on
sales force team. This only helps in reducing the cost of
the product, which eventually benefits the customer.

 Ever changing nature of business: Since today

technology is changing at lightning speed by every
passing day, the nature of e commerce business will
also change along with it. Who knows technology
development in coming years will make e commerce
more customer friendly, or there can be other
fundamental changes to the e commerce business too.

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 Technology can equally be barrier: Technology has
helped e commerce companies to break geographical &
other barriers. However overreliance on technology &
complete absence of face to face interaction has
created immense trust barrier between e commerce
companies and customers. This is especially true in the
case of conservative country like India where even
today people don’t completely trust e commerce
companies, especially when it comes to on line
payment.

2.3.1 GLOBAL SCENARIO

In 2010, the United Kingdom had the biggest e-commerce market in the world
when measured by the amount spent per capita. The Czech Republic is the
European country where e-commerce delivers the biggest contribution to the
enterprises´ total revenue. Almost a quarter (24%) of the country’s total
turnover is generated via the online channel.
Among emerging economies, China's e-commerce presence continues to
expand every year. With 384 million internet users, China's online shopping
sales rose to $36.6 billion in 2009 and one of the reasons behind the huge
growth has been the improved trust level

for shoppers. The Chinese retailers have been able to help consumers feel more
comfortable shopping online. China's cross-border e-commerce is also growing
rapidly. E-commerce transactions between China and other countries
increased 32% to 2.3 trillion Yuan ($375.8 billion) in 2012 and accounted
for 9.6% of China's total international trade.

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 In Russia, the total e-commerce market is projected to total
somewhere between 690 billion Rubles ($23 billion) and 900 billion
Rubles ($30 billion) in 2015, at 2010 values. This will equal 5% of
total retail volume in Russia. Longer-term, the market size of Russian
e-commerce could reach $50 billion by 2020. E-Commerce players
need to understand unique insights about trust factor, online payments
and language peculiarities to penetrate the Russian market.
Brazil's e-Commerce is growing quickly with retail e-Commerce sales
expected to grow at a healthy double-digit pace through 2014. By
2016, e-Marketer expects retail e-commerce sales in Brazil to reach
$17.3 billion.

2.3.2 INDIAN SCENARIO

India's e-commerce growth, on the other hand, has been slower

although the country's potential remains solid considering its surging
economy, the rapid growth of internet penetration, English language
proficiency and a vast market of 1.2 billion consumers. E-commerce
traffic grew about 50% from 2011 to 2012, from 26.1 million to
37.5 million. Still much of the estimated 14 billion dollars in 2012
e-commerce was generated from travel sites.
E-Commerce is also expanding across the Middle East. Having
recorded the world's fastest growth in internet usage between 2000
and 2009, the region is home to more than 60 million internet users.
In 2012, e-commerce sales topped $1 trillion for the first time in
history.
Mobile devices are playing an increasing role in the mix of e-
Commerce. Some estimates show that purchases made on mobile
devices will make up 25% of the market by 2017. According to Cisco
Visual Networking Index, in 2014 the amount of mobile devices will
outnumber the number of world population.

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Trends of turnover of e-business activities in the globe

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 2.4 ADVANTAGES OF E-COMMERCE
 Time saving – is the reason number one for using electronic commerce.
People now have access to their money and what they need to buy from home
and work all from a desktop computer.
 Consumers have an access to a wider range of products – company
now can use internet sites as shop fronts, so consumers can browse, buy from
many different sellers and making it easier to find exactly what they are looking
for.
 Allows small businesses to mix with the big business online – with a
relatively small cost, a new business can set its self up to conduct transactions
online.
 Provide benefits to suppliers of goods and services – company now can
target a wider variety of consumers even take the product or service
international, allowing them a means of supplying their goods to places that
were before unreachable.
 Business is Open 24 x 7 x 364 7/8 – it works while you play or sleep.
They are open for business every hour of the day, every day of the week, and
every week of the year. Your receptionist, greeter and front people are always
working for you because they are your website. They do not complain about the
long hours.
 Messages spreading (World Wide market space) – advertising on the
web can make a big or small firm’s promotional message reach out to potential
customers all over the world quickly and small cost as an online marketing
strategy.
 Help protect against frauds and theft losses – electronic payments can
be easier to monitor than payments are made by cheques.
 Thinking Outside the Globe – selling something made by someone else,
shipped by yet another and the money handled by yet another is the heart of the
advantages e commerce brings to the business world. You can even employ an
international staff. Some work you may need done can be more effectively done
by companies or even individuals in other countries.

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 2.5 DISADVANTAGES OF ECOMMERCE
 Purchase to Delivery – when making a purchase at a brick and mortar
business, you get the product when you pay for it. On the web, there may be a
time lag from purchase to actually being able to consume. The consumer will
have to wait for delivery of physical goods.
 Inability to Feel the Physical – it is nearly impossible to sell things like
furniture and tires online. Furniture is something people like to sit on and know
the feel. Tires need to be installed once purchased. The old tires also need to be
disposed of. In both instances, there is a need for real actions to fulfil the reason
for the purchase. That’s why things like food, jewellery, antiques etc. can never
turn to E-commerce.
 Trouble recruiting and retaining employees – the company needs well-
expert and skilled staff to keep up and create the ecommerce facilities of the
company. Many companies favour to outsource their improvement and
programming tasks to decrease labour costs.
 Consumers feel less confident with their credit card numbers – most
of the consumers are still not confident in providing their credit card numbers
for making payments on the website while shopping on the Internet.
 Not every company can take the benefit – some of the small companies
may not be able to take the benefit of E-commerce for example the lack of
expertise and lack of technology. The legal environment in which E-commerce
is conducted is full of unclear and conflicting laws. It should be noted that
mostly these disadvantages stem from the newness and rapidly growth of the
technology.
 

26
Flipkart is an Indian e-commerce company founded in 2007, by Sachin and
Binny Bansal and headquartered in Bangalore, Karnataka. It is considered as the
e-commerce company that made online shopping popular in India. Both had
been working for Amazon.com previously. The business was formally
incorporated as a company in October 2008 as Flipkart Online Services Pvt.
Ltd. During its initial years, Flipkart was focused only on books, afterwards
started offering other products like electronic goods, air conditioners, air
coolers, stationery supplies and life style products and e-books. The first
product sold by them was the book, “Leaving Microsoft to Change The
World”, bought by V.V.K.Chandra from Andhra Pradesh. Flipkart now
employs more than 4,500 people. Flipkart's offering of products on Cash on
Delivery is considered to be one of the main reasons behind its success. Flipkart
also allows other payment methods- Credit or Debit card transactions, net
banking, e-gift voucher and Card Swipe on Delivery.

27
Amazon.com, Inc. is the world's largest online retailer. Jeff Bezos
incorporated the company (as Cadabra) in July 1994 and the site went online as
Amazon.com in 1995. The company was renamed after the Amazon River, one
of the largest rivers in the world. Amazon's initial business plan was unusual; it
did not expect to make a profit for four to five years. This "slow" growth caused
stockholders to complain about the company not reaching profitability fast
enough to justify investing in or to even survive in the long-term. When the dot-
com bubble burst at the start of the 21st Century, destroying many e-companies
in the process, Amazon survived, and grew on past the bubble burst to become a
huge player in online sales. It finally turned its first profit in the fourth quarter
of 2001: $5 million (i.e., 1¢ per share), on revenue of more than $1 billion.
Bezos financed the operation with his own money and a $300,000 loan from his
parents. But realizing he needed much more, Bezos contacted former co-
workers and family friends and convinced fifteen of them to invest in his start-
up, bringing his total capital to $1 million. With his initial investment, and after
a month of successfully beta testing the Web site, Bezos was ready for the
business.

28
CHAPTER 3: ANALYSIS AND FINDINGS
3.1 RESEARCH DESIGN

The research design is exploratory till identification of customer’s services

parameters. Later it becomes descriptive when it comes to evaluating customer
perception of customer service of the Flipkart and Amazon. Descriptive
research, also known as stastical research, describes data and characteristics
about the population or phenomenon being studied descriptive research answers
the questions who? what? where? when? And how?

Although the data description is factual, accurate and systematic, the research
cannot describe what caused a situation. Thus, descriptive research cannot be
used to create a casual relationship, where one variable affects another. Often
the best approach, prior to writing descriptive research, is to conduct a survey
investigation. Qualitative research often has the aim of description researchers
may follow-up with examinations of why the observations exits and what the
implications of the findings are.

3.2 METHODOLOGY

The essential part of any report is research methodology .the field study was
conducted to analyse the market share and understand the distribution channel
relationship.
3.2.1 SAMPLE
Since it is not possible to study whole universe, it becomes necessary to take
sample from the universe to know about its characteristics.

CONTACT METHOD PERSONAL INTERVIEW

SAMPLING UNITS CUSTOMERS OF FLIPKART AND
AMAZON
MEASURING TOOL STRUCTURED QUESTIONNAIRE
SAMPLE TECHNIQUE RANDOM SAMPLING

29
3.2.2 SAMPLE SIZE

The survey was conducted in the city of Kolkata, with 100 customers.

3.2.3 DATA TYPE

Questionnaire, done on the basis of primary data, collected from different
sources.

3.2.4 DATA SOURCE

Data is collected from various customers through personal interaction. Some

other information is collected through secondary data also. Data was collected
through a structured questionnaire.

3.2.5 PERIOD OF STUDY

Primary data: 1 month secondary data: 6 month.

3.2.6 TOOLS USED

1. BAR DIAGRAM

2.PIE-CHART

3. LINE-GRAPH

30
 3.3 ANALYSIS OF DATA
30 Trust Meter
25
20

y 15 No of persons
10
5 The execution of this work is
0
1 2 3
totally based on the primary
x data as the subject matter
requires the deep public
thinking. It not only shows the perception of the mass but also the advantages
and disadvantages of e-business and its superiority over traditional business.

The analysis is based on a questionnaire on E-commerce focusing on the above

matters.

Approached To: More than 100 individuals of 18-25 years of age group were
asked to fill up the questionnaire.

Analyzed: The analysis is being made based on the sample response of 50

individuals.

Question 1: Do you trust online trade?

0 MEANS DONT TRUST AT ALL WHILE 3 MEANS TOTALLY TRUST.

0 0
1 14
2 28
3 8

31
Interpretation
This analysis is done on the basis of “points” depicting better trust in ascending
order in the form of column diagram. So we found that fewer people are with
the maximum points than the average and low ranges. And on such basis, the
average range is being supported by the higher mass.

Question 2: Have you ever made any purchases online?

YES 90%
NO 10%

Dealing %

10%

Interpretation:

The above pie chart reflects

90% the percentage of people
made online purchases ever.

Yes No Question 3: How long have

you been shopping online?

6 month 6
1 year 10
2 year 27
5 year 6
Never 1

Chart Title
30
25
20

y 15
10
5
32
0
Never 6m 1y 2y 5y
x
Interpretation:
Line diagram reflects the time frame for which the students are using e-
commerce. The peak of the line is at 27 students who are using e-commerce for
last two years.

Question 4: For what purpose do you shop online?

For personal use 32

For business use 2
For both personal and business use 16

Both

Interpretation:
y Business Use
Persons This analysis provided
with the purposes for
Personal Use
which the e-business is
being used through the
help of Bar Diagram.
0 5 10 15 20 25 30 35

So it can be interpreted
x

that the majority

responders preferred it for personal use to business use.

The reasons can be lack of confidence or indulge into such kind of business
which does not require for purchasing online.

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 Question 5: How far are you willing to travel to shop in a
traditional shop?
100 meters 7
Drive for 1 km 26
More than 1 km 17

Persons
30

25

20

y 15 Persons

10

0
100 metres Upto 1 km More than 1 km
x

Interpretation:
This analysis provided that with the existence of e-business how many people
prefer to travel instead of shopping online from home.

So it is seen that majority of the people are ready to travel for more than 1 km
and the reasons provided by them are:

 Due to urgent need of something.

 The e-business portal does not cover the specified area for distribution.
 The portal is facing stock-out of the material required.
 Mental preferences.
 The nature of the material required physical verification.
Question 6: Do you agree that e-commerce can provide an
alternative marketing channel by eliminating middleman?

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 Agree 45
Disagree 2
Can’t say 3

Chart Title
Interpretation:
50
40 From the above diagram it is
30
y 20
clear that the maximum votes
10
0
are went in the favour of e-
Agree
Disagree commerce eliminating the role
Cant say
of the middlemen.
x

The reason is to provide the

quality product at the
reasonable price to the customers, which due to the involvement of the
middlemen is not possible.

Question 7: Upto what value are you comfortable in shopping

online?
1000 11
5000 20
10000 7
20
Above 10000 12
15

y 10
12
5

35
0
1000 5000 10000 Above 10000
x
Interpretation:
This analysis provided the amount invested by an individual with the help of
Bar Diagram.

It can be interpreted that basically the major mass are ready to invest on less
expensive materials it can be due to the discounts provided by the business
portals. But the greater part of the turnover is being generated by the persons
with the investment more than 10000.

Example:

Let us assume that 20 persons are purchasing @Rs.2,500 each on an average.

Then the total turnover works out to be Rs.50,000 (20 X 2,500).

On the other hand, if we take that 12 persons are purchasing @Rs.11,000 each
on an average than the total turnover comes to be Rs.1,32,000 (12 X 11,000).

Question 8: Preferred payment option?

Cash on delivery 27
Payment in advance 5
Does not matter 18
Preferences

18 27

36

Cash on delivery Does not matter Payment in advance

Interpretation:
This response provides us with the basic nature of the purchaser. Majority of the
customers prefer to pay at the time of delivery. Low weightage to the payment
in advance proves the conservative nature of the respondent. The reasons as
given by them are:

 Lack of confidence.
 No access to online payments.
 Tendency to check the product physically.

37
 Question 9: What is your experience about online shopping?

Good 25
Bad 3
Average 21
Never shopped online 1

Experiences
Interpretation:
1

21 25 “Experience matters a lot.”

3 The above data help to

interpret the experiences
gained by the respondents.
Half of the sample
Good Bad
Average Never Shopped online experienced “Good” as-

 Without travelling
we can get access to large variety of products,
 Filter the brands, prices, shapes etc according to the preferences.
 Time saving.
 Possibility of comparison between the products.
 Good discounts have been provided by the seller.

3.4 OTHER FINDINGS OF THE STUDY:

1) Broaden consumer choices being the important reason for the
development of the E-Business followed by the Encourages price
transparency and fasten business processes.

2) Traditional trade:

Advantages

a) Personal Touch

38
 b) Face to Face interaction
c) Better Negotiation
d) Customized services

Disadvantages

a) Time taking
b) Middleman and brokers

3) Online Trade:

Advantages
a) Fast
b) Cheaper
c) More choices

Disadvantages

a) Unsafe
b) Lack of technical knowhow among masses

4) India’s leading business portal is Flipkart.com followed by

Snapdeal.com, Myntra.com, Makemytrip.com, Jabong.com,
Homeshop18.com, Yebhi.com etc.

5) Banking Industry acquires the major part of E-Business in India followed

by Real Estate, Stocks & Shares, Professional Guidance,
Shopping, and Travel& Tourism etc.

6) “Security Concerns” being the greatest challenge for the implementation

of the E-Business in India followed by the “Consumers’ awareness level
is low”, “Lack of trust”, “Slow penetration of internet” etc.

39
CHAPTER 4: CONCLUSION AND RECOMMENDATION

4.1 Conclusion:-

In general, today’s businesses must always strive to create the next best
thing that consumers will want because consumers continue to desire their
products, services etc. to continuously be better, faster, and cheaper.  In
this world of new technology, businesses need to accommodate to the new
types of consumer needs and trends because it will prove to be vital to their
business’ success and survival.  E-commerce is continuously progressing
and is becoming more and more important to businesses as technology
continues to advance and is something that should be taken advantage of
and implemented.

From the inception of the Internet and e-commerce, the possibilities have
become endless for both businesses and consumers. Creating more
opportunities of profit and advancements for businesses, while creating more
options for consumers. However, just like anything else, e-commerce has its
disadvantages including consumer uncertainties, but nothing that cannot
be resolved or avoided by good decision-making and business practices.

As highlighted in my report there are tons of benefits of e-commerce and i also

believe that this concept of doing business is currently at its early stage of life
and will expand in near future. People will switch from their traditional manner
of shopping to online shopping gradually.

If we speak of India only there are very limited people who are connected to the
internet and among them there are very few who shops online. As the use of
internet is increasing and more and more people are getting connected to
internet, the use of online shopping is also expected to increase

Currently we have some limitations of online shopping and they are stated
below along with my suggestion.

 Reliable website – Along with the genuine websites there co-exists fake
websites also. It’s very difficult to recognise a fake website. This issue
has reduced as the people are becoming aware of genuine websites
through the advertisements and Cash on Delivery options. Moreover

40
 government should have a separate regulatory body to stop such
practices.

 Reach – Currently websites are delivering products only to cities and not
to small towns. Therefore customers from small towns are directly
excluded from internet shopping. Consequently e-commerce is deprived
of customers residing in small towns, which constitutes of major
population in India. Separately people in small town don’t get everything
in the local market of their town as everything is not available in the local
market and they have to travel to cities for purchasing such goods.
Websites should make some arrangements to deliver the product to the
customers at small towns also.

 Time requires to deliver the product – Websites usually takes a week time
to deliver the product to their customer. However, generally the
customers are not in a position to wait for that time and therefore they opt
for shopping directly from physical shops. Steps should be taken to
delivery the product more promptly.

 After sale service – Now a days for after sale service we have service
stations or we can directly talk to the shopkeeper from where we have
bought the product. However this is absent in the online shopping so
there should be a process to attend the customer after the product is sold.

4.2 RECOMMENDATIONS
 The company has built a great brand name, they just have to enhance and
maintain the same
 It needs to keep introducing more products adapting to the changing
needs of the customer with the time.
 It also needs to have a improve in their technological innovations.
 The entry of Amazon.com in 2012 in the Indian E-commerce has been
cited as a big challenge to Flipkart

41
4.3 The limitations faced in conducting the study:
 The financial details of the Flipkart are not readily available as it is a
private limited company. The access to the information is made through
the MCA portal as Form 23AC (XBRL).So faced problem in availability
of current year’s Flipkart BALANCE SHEET.

 Faced problem in downloading the required documents from the MCA

site as the site is under improvement.

 Lack of speed internet accessibility due to which the files have taken
ample time to download.

 Loss of time in sending out questionnaire.

 People are not keen to provide responses of the questions asked to them
through mail.

 The statistical tools applied in this research work are totally based on
subjective matters. It may well be noted that the same analysis could have
been done using a different statistical tool and yielded different result.

42
 QUESTIONNAIRE

1. Do you trust online trade?

0 1 2 3

2. Have you ever made online purchases?

Yes No

3. How long have you been shopping online?

6m 1yr 2yr 5yr never

4. For what purpose do you shop online?

Personal Business Both

5. How far are you willing to travel to shop in a traditional shop?

100m 1km >1km

6. Do you agree that e-commerce can eliminate middlemen?

Agree Disagree can’t say

7. Upto what value are you comfortable in shopping online?

Rs.1000 Rs.5000 Rs.10000 >Rs.10000

8. Preferred payment option?

Cash on delivery Advance Does not matter

9. What is your experience about online shopping?

Good Average Bad

43