Professional Documents
Culture Documents
Ecommerce in India
Ecommerce in India
Ecommerce in India
ON
“E-COMMERCE IN INDIA”
Department of Management
INTERNATIONAL INSTITUTE FOR SPECIAL EDUCATION,
LUCKNOW
SESSION: 2010-2013
DECLARATION
PALLAVI SRIVASTAVA
2
ACKNOWLEDGEMENT
Every work constitutes great deal of assistance and guidance from the
people concerned and this particular project is of no exception.
PALLAVI SRIVASTAVA
3
PREFACE
The term Electronic commerce or e-commerce consists of all business activities
carried on with the use of electronic media, that is, computer network. It involves
conducting business with the help of the electronic media, making use of the
Electronic commerce involves buying and selling of goods and services over the
World Wide Web. Customers can purchase anything right from a car or a cake sitting
comfortably in his room and gift it to someone sitting miles apart just by click of a
mouse. Shipping method is generally used for the delivery of the goods ordered.
The low cost of the PC and the growing use of the Internet has shown the tremendous
and IMRB International, “ The total online transactions in India was Rs. 7080 crores
(approx $1.75 billion) in the year 2006-2007 and expected to grow by 30% to touch
9210 crores (approx $2.15 billion) by the year 2007-2008. According to a McKinsey-
Nasscom report the e-commerce transactions in India are expected to reach $100
billion by the 2008. Although, as compared to the western countries, India is still in is
Home Internet usage in India grew 19% from April 2006 to April 2007. In April 2007
it became 30.32 million and the eMarketer accept that there will be 71 million total
Ecommerce. Rival tradeindia.com have 700,000 registered buyers and it has the
growth rate of 35% every year which is likely to double in the year 2008.
Indiamart.com claims revenues of Rs. 38 crores and has a growing rate of 50 every
year. It receives around 500,000 enquiries per month. Undoubtedly, with the middle
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class of 288 million people, online shopping shows unlimited potential in India. The
real estate costs are touching the sky. The travel portals' share in the online business
contributed to 50% of Rs 4800 crore online market in 2007-08. The travel portal
20% of total e-commerce market in India. Further an annual growth of 65% has been
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TABLE OF CONTENT
PREFACE i-ii
DECLARATION 2
ACKNOWLEDGEMENT 3
OBJECTIVE 5
INTRODUCTION 7
LITERATURE REVIEW 12
E-COMMERCE IN INDIA 21
SWOT ANALYSIS 39
RESEARCH METHODOLOGY 42
FINDINGS 46
RECOMMENDATION 52
CONCLUSION 56
ANNEXURE 58
o BIBLIOGRAPHY 59
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OBJECTIVE
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STUDY OBJECTIVE
products.
To examine the online shopping sites prevalent in Lucknow such as the mall.
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INTRODUCTION
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E-Commerce:
Business has been looking for ways to increase their profits and market share. The
search for more efficient ways of doing business has been driving another revolution
planners in institutions and organizations now see technology not only as a supportive
cofactor, but as a key strategic tool. They see electronic commerce as a “wave of
future”.
made it a truly global phenomenon .One of the most visible icons of the IT Revolution
is the internet – the world wise web. Which is a gigantic anarchic network of
interactive long distance computing and exchange of information giving rise to a host
entertainment?
E-commerce exists because of internet. It has been born on the net and is growing
with the net. It involves carrying business on and through the net.
redefining technology, individual and global societies as well as national and global
economies.
Communication services support the transfer of information from the originator to the
recipient. Data management services define the exchange format of the information.
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Security mechanisms authenticate the source of information, guarantee the integrity of
Prior to the development of e-commerce, the process of marketing and selling goods
E-Commerce Defined:
“The use of internet and the WEB to transact business. More formally, digitally
“Electronic commerce is commerce via any electronic media, such as TV, fax, and
online networks. Internet-based commerce makes use of any Internet facility and
service. Web-based commerce focuses on the opportunity of the World Wide Web
Benefits/Features of E-Commerce:
Electronic commerce increases the speed, accuracy, and efficiency of business and
physical space and makes it possible to shop from your desktop, at home, at
work, or even from your car using mobile commerce .From customer point of
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traveling to market. At a broader level, the ubiquity of e-commerce lowers the
cross cultural and national boundaries far more conveniently and cost
market size for e-commerce merchants is roughly equal to the size of the
universal standards – they are shared by all nations around the world. The
costs - the cost merchants must pay just to bring their goods to market. At the
same time, for consumers, universal standards reduce search cost – the effort
message.
• Information Density: the internet and the Web vastly increase information
density –the total amount and quality of information available to all market
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costs .At the sale time; these technologies increase greatly, the accuracy and
quality.
With the increase in information density, a great deal of information about the
consumer’s past purchases and behavior can be stored and used by online
customization.
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LITERATURE REVIEW
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E-Commerce industry
growth. With this increased interest comes a surge in demand for facts, trends and
indicators. Highly concentrated urban areas with very high literacy rates, a vast rural
population with fast increasing literacy rate, a rapidly growing internet user base,
technology advancement and adoption and such other factors make India a dream
business economics. As of the last 10 years, online visibility for such online
enterprises now heavily rely on the relationship between the own online sales
platform and Search Engines for improved traffic consisting of presumable customers
with the intent of acquiring products or services related to the customers’ needs. In
2008 an Internet behavioural analysis showed that over 90% percent of internet users
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make use of search engines at least once a week, stating that online visibility through
Logo of e commerce
The eCommerce industry continues to grow at a rapid pace translating the rules of
demographics and regions that were difficult to access through the traditional retailing
methods. As the rapid Internet Penetration, the widening network of online payment
solutions, the progressively wider acceptance of online commerce and the maturity in
fulfilment solutions provide a robust backbone for wider and rapid adoption of
eCommerce, merchants today are also faced with some of the most unique challenges
retailing has ever witnessed. ECommerce business houses small or big, generic or
specialized, today need to deal with fierce global competition right at the doorstep.
evolving global regulations, short product lifecycles and dropping margins are just
some of the significant business challenges that eCommerce business today need to
deal with upfront. These challenges require merchants to develop unique strategies to
liaison with partners & service providers and adopt radical strategies for eMarketing,
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Internet Advertisement, Brand identity management, pricing, fulfilment, payments,
well as offline shopping experience besides core commerce that is beyond the realms
of traditional eCommerce.
E-commerce is the process of buying and selling of various products and services by
businesses through the Internet. It deals various kind of business concern, from retail
site of the consumer, which includes auction. The main focus is to concentrate on
E-commerce is the purpose of Internet and the web to Conduct business but when we
selective information systems under the guarantee of the firm it accepts the form of e-
business. Nowadays, the word ‘e’ is hitting momentum. If you’re looking to get into
this business, one of the fore most things you have to have is a Virtual Private Cloud
Hosting keeping the traffic in mind and respecting customer’s valuable time.
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BUSINESS TO CONSUMER (B2C)
B2C stands for Business to Consumer as the name suggests, it is the model taking
businesses and consumers interaction. Online business sells to individuals. The basic
concept of this model is to sell the product online to the consumers. B2C is the
indirect trade between the company and consumers. It provides direct selling through
online. For example: if you want to sell goods and services to customer so that
anybody can purchase any products directly from supplier’s website. Directly interact
with the customers is the main difference with other business model. As B2B it
manages directly relationship with consumers, B2C supply chains normally deal with
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BUSINESS TO BUSINESS (B2B)
B2B stands for Business to Business. It consists of largest form of Ecommerce. This
model defines that Buyer and seller are two different entities. It is similar to
manufacturer issuing goods to the retailer or wholesaler. Dell deals computers and
other associated accessories online but it is does not make up all those products. So, in
govern to deal those products, first step is to purchases them from unlike businesses
“It is one of the cost effective way to sell out product throughout the world”
Benefits:
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CONSUMER TO CONSUMER (C2C)
C2C stands for Consumer to Consumer. It helps the online dealing of goods or
services among people. Though there is no major parties needed but the parties will
not fulfil the transactions without the program which is supplied by the online market
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PEER TO PEER (P2P)
It is a discipline that deal itself which assists people to instantly shares related
computer files and computer sources without having to interact with central web
server. If you are going to implement this model, both sides demand to install the
expected software so that they could able to convey on the mutual platform. This kind
of e-commerce has very low revenue propagation as from the starting it has been
tended to the release of use due to which it sometimes caught involved in cyber laws.
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M-COMMERCE
It deals with conducting the transactions with the help of mobile. The mobile device
consumers can interact with each other and can lead the business. Mobile Commerce
involves the change of ownership or rights to utilize goods and related services.
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E-COMMERCE IN INDIA
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REPORT ON THE INDUSTRY
This report provides a brief overview of the ecommerce in India with information on
the market characteristics, the various ecommerce models, key players and the future
The Online e-commerce Industry is very well developed and is booming largely due
to the Internet-savvy urban population. The segments are categorized under travel
industry and online non-travel industry, include e-Tailing (online retail), online
shopping, online classifieds and Digital Downloads are still in a nascent stage).
Though eCommerce took a beating in the dotcom bust, it seems set to grow globally.
The global revival of eCommerce is having a ripple effect in India too where the B2B
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(Business to Business), B2C (Business to Consumer), C2C (Consumer to Consumer),
India has its share of success stories in the B2C segment in the form of
Monster.com and Makemytrip.com ,ebay.com etc. These and such other portals are
generating a lot of interest and increasing transaction traffic. Smaller businesses have
jumped onto the bandwagon by offering products and services online and have
successfully carved out niches for themselves. The online community is growing by
online because the initial fears and apprehensions are being laid to rest. Research
studies have indicated several factors responsible for the sudden spurt in growth of
Improved fraud prevention technologies that offer a safe and secure business
environment and help prevent credit card frauds, identity thefts and phishing
Bigger web presence of SME’s and Corporate because of lower marketing and
infrastructure costs.
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Longer reach - Consumers in the Tier II & Tier III cities are fast realizing the
There is a growing awareness among the business community in India about the
opportunities offered by eCommerce. Ease of Internet access and navigation are the
critical factors that will result in rapid adoption of Net commerce. Safe and secure
payment modes are crucial too along with the need to invent and popularize
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POPULAR USES OF ECOMMERCE IN INDIA
electronic medium such as the internet has gained tremendous popularity in the recent
years. ECommerce involves paperless transactions and usage of EDI (Electronic Data
Interchange), electronic mail, bulletin boards, fax transmissions, and electronic fund
apace with the current scenario of electronic data exchanges and has taken to
People use credit or debit cards for making purchases in an online store. ECommerce
is being used for purchase and sale of multiple products and there are multiple players
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A. Online Travel Industry in India
Use of eCommerce in India is increasing in the travel segment. Online travel industry
initiative in India. It has contributed Rs 340 Million to the total eCommerce business
of Rs 900 Million. The Indian Travel Ministry has introduced a travel portal called
Incredible India. This portal is a big success as tourists can easily contact travel
agents, tour operators and hoteliers easily. This portal has also caused a surge in
medical tourism to India. By the year 2010, the medical tourism market in India is
expected to be around US$ 2 million. Other travel portals include Makemytrip, Yatra,
Cleartip, and Travelguru. Makemytrip has targeted revenue of Rs 230 Million for the
vendors, areas where the products can be procured, etc. Currently, the online retail
to have the third largest internet user base, which improves the prospects of online
purchases. Some of the retail stores offering online retail facilities include: Reliance's
online stock trading companies include online buying and selling of stocks and shares,
research on equity and mutual funds, customer services through email and chat.
Online trading also has an added advantage of real time stock trading without calling
or visiting the broker's office. Major online stock trading websites in India include:
Securities.
D. Online Advertisements
The Indian population accesses the internet from home, office, and cybercafés. There
identified the internet as a medium for enhancing the awareness for their business
activities. Online advertising in India is expected to cover all organizations and their
accounting for 38% growth rate in 2008-2009. The growth rate for the year 2009-
Another area where eCommerce is widely used is that of employment. Internet has
simplified the process of search for 'right people on the right job'. There are a number
of web portals and sites that match a prospective employer's requirements with that of
candidates applying for that job. Some of the popular job sites in India include:
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Naukri, Monster India, Times Jobs, Careerjet, Naukri Hub, Career India, Bixee,
There are a number of real estate portals and sites that provide information to users
regarding the property they wish to buy/sell. This information includes properties
available for sale/purchase, the cost, location, etc. Some of the popular real estate
the prospective matches, region of their residence, their religion, caste, etc. Allied
services are also provided to the listed members. These services include: astrology,
information on customs and rituals, legal issues, health and beauty, fashion, wedding
planners, etc. Some of the leading matrimony portals in India include: Shaadi.com,
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GOVERNMENT REGULATIONS AND POLICIES
The Government of India laid down the Information and Technology Act in 2000 and
became the 12th country in the world to have cyber-laws. The IT Act of 2000 covered
The IT Act 2000 was substantially modified through the Information and Technology
Amendment Act, 2008, which came into effect from October 27, 2009.The IT Act of
has added sections on offences, such as Cyber terrorism and Data Protection. This act,
however, has been criticized because of lack of legal and procedural safeguards to
The IT Act covers cyber laws and crimes, which are subject to the Indian Penal Code.
Trojan attack, virus and worm attack, email related attacks (email spoofing
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and email spamming, email bombing), and denial of service attacks (DOS).
DOS include:
pornography.
o Forgery
Online payments are generally credited to the intermediaries like PayPal, who transfer
these payments to merchants. To address this situation, Reserve Bank of India has
issued new norms for facilitating eCommerce transactions. As per the directives, the
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payment will be credited directly to the merchants and not the intermediaries. With
transaction. This will expedite shipping of goods to the customer on time. Online
transactions require use of electronic cards – credit or debit. The credit card market is
currently not too vast, with less than 25 million credit cards issued in the market.
However, debit cum ATM cards are widely used by account holders.
example, all debit cards are ATM cards, but all ATM cards are not debit cards.
facilities. This facility is mostly for checking account balance, and this should
Take steps to improve debit and credit card penetration. RBI should specify a
time frame to banks to issue credit cards, debit cum ATM cards.
Improving the network connectivity of ATMs: Users can use one bank’s ATM
card for holding transactions with another bank because these ATMs are
accept all credit cards, debit cards, and internet banking facilities that all banks
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integrate such services of any new bank within some stipulated duration of the
and customer satisfaction. An effective e-business solution enables your entire value
chain and can give you a sustainable competitive advantage by improving processes
and creating stronger relationships with your business partners and customers.
technology connected via the Internet to assist and enhance a variety of business
Web and opening an e-commerce storefront requires merchants to master many tasks
not only website development and design, but also maintaining the confidentiality and
The benefits of E-Commerce are not just available to large corporations and
government departments and many small to medium businesses are discovering new
cost -effective opportunities to use Internet - related technology to help their business
Shorten procurement cycles through on-line catalogue, ordering and payment. Cut
costs on both stock and manufactured parts through efficient JIT and QR systems that
E-Commerce Applications
Video on-demand
Remote Banking
Home shopping
threats that can result in significant financial and information losses such as credit
card numbers, financial data or medical history. To minimize risk, win customer
confidence, ultimately, gain a competitive edge. We can arrange with leading Security
provider, for Secure Sockets Layer (SSL) technology, which is the industry- standard
protocol for secure, Web-based communications and your web server is ready to work
with if it's from Apache Freeware, C2Net, IBM, Lotus, Netscape, Microsoft, Open
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Advantages and Disadvantages of Electronic Commerce:
information can be obtained online globally through the Internet, which makes very
easy for customers to compare and evaluate the particular product or service.
Electronic commerce can offer wide range of choices to extend markets and
opportunities to both consumers and business firms. Customers could save delivery
time because of contribution of digital services and product. On other hand, business
firms could decrease operating and marketing cost and increase profit. The negative
clothes when the customers are purchasing online. Another disadvantage associated
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EFFECT OF ELECTRONIC COMMERCE:
The invention of electronic commerce has changed the conventional means of online
exchanges and transaction. It is generating a novel market place and opportunities for
the restructure of economic processes in a more competent way. The world wide
structure of the Internet and the very low prize of using it, allows the interconnection
business firms and consumers a pioneering and strong information system and another
medium of communication. This changes the way consumer search and purchase
goods or services among the highly customized, distributed and exchanged different
products or services.
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MARKET SIZE & GROWTH
India’s e-commerce market was worth about $2.5 billion in 2009. About 75% of this
is travel related (airline tickets, railway tickets, hotel bookings, online mobile
recharge etc.). Online Retailing comprises about 12.5% ($300 Million as of 2009).
India has close to 10 million online shoppers and is growing at an estimated 30%
CAGR vis-à-vis a global growth rate of 8-10%. Electronics and Apparel are the
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LIST OF TOP E-COMMERCE COMPANIES OF INDIA:
20North.com:
accessories.The site also offers lucrative deals.Log onto the site to shop.Happy
Shopping!!!
99labels.com:
This site offers many fashion and luxury brands at good prices.Checkk this site for
more brands .
Dealsandyou.com:
This site offers various kinds of deals be it holidays,shirts etc. Also this site gives
heavy discounts on regular basis that cab be profitable for the shoppers.Browse this
Fashionandyou.com:
This site also is a great place to shop and that too sitting at home.Also this site
declares sale and heavy discounts almost every day.Sign Up today to get more deals.
Flipkart:
This site offers various kinds of products and that too at one place.Mobile,its
accesorries,books,camera and laptop accesorries and many more things are available
on this site.One can find deals for home appliances also that are available at
Indiangiftsportal:
This is known for providing gifts for various occasions like birthdays, anniversary,
wedding, bhai dooj, diwali and many more. Also flowers, cakes, chocolates and many
more things are offered by this site. Browse it today to send gifts to your loved ones.
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MagazineMall:
This company specifically deals in magazines and one can get magazines of different
Myntra:
The site offers fashionable clothes for men,women,kids. Also this site has products of
almost all the famous brands.The prices quoted by this site are also affordable.
Naaptol:
Snapdeal:
This site offers lucrative deals that can be beneficial for you all.From Loreal to
vacations, the site has the deals.Sign up today to avail the deals.
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SWOT ANALYSIS
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SWOT analysis of the industry
Strengths of e-commerce
bedroom.
By visiting different websites one can within a short time can compare
Weaknesses of e- commerce
enough.
Opportunities
Big companies are already entering in this field so; they are making
Threats
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INERNET BANKING AT
STATE BANK OF INDIA
44
Internet banking at State Bank of India
45
CBS - Core Banking System Components
Desktops,
Branch Core-Banking
Servers Application
ELITEX-2008 8
Chapter deals with the information related to various services an products of SBI
internet banking
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Online SBI (www.onlinesbi.com)
State Bank of India is India’s largest bank with a branch network of over 11000
branches and 6 associate banks located even in the remotest parts of India. State
Bank of India (SBI) offers a wide range of banking products and services to
corporate and retail customers.
OnlineSBI is the Internet banking portal for State Bank of India. The portal provides
anywhere, anytime, online access to accounts for State Bank’s Retail and Corporate
customers. The application is developed using the latest cutting edge technology and
tools. The infrastructure supports unified, secure access to banking services for
accounts in over 11,000 branches across India.
RETAIL BANKING:-
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CORPORATE BANKING:-
The OnlineSBI corporate banking application provides features to administer and
manage corporate accounts online. The corporate module provides roles such as
Regulator, Admin, Uploader, Transaction Maker, Authorizer, and Auditor. These
roles have access to the following functions:
Manage users, define rights and transaction rules on corporate accounts
Access accounts in several branches with a single sign-on mechanism
Upload files to make bulk transactions to third parties, supplier, vendor and
tax collection authorities.
Use online transactional features such as fund transfer to own accounts, third
party payments, and draft issues
Make bill payments over the Internet.
Authorize, modify, reschedule and cancel transactions, based on rights
assigned to the user
Generate account statement
Enquire on transaction details or current balance
Tax payments to central and state governments through site to site integration.
Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme)
Direct Debit Facility
E Collection Facilities for:
Core Banking Transactions
Internet Bank transactions for incoming RTGS/NEFT Transactions
Internet banking transactions for SBI and associate banks
Debit facility where suppliers can directly debit their customer’s account
through internet banking
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PRODUCTS AND SERVICES:-
E-Ticketing
SBI E-Tax
Bill Payment
RTGS/NEFT
E-Payment
Fund Transfer
Third Party Transfer
Demand Draft
Cheque Book Request
Account Opening Request
Account Statement
Transaction Enquiry
Demat Account Statement
Donation
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1) E-TICKETING :-
You can book your railway, air and bus tickets online through OnlineSBI.
To book your train ticket, just log on to irctc.co.in and create an ID there at if you do
not have one. Submit your travel plan and book the ticket(s)-either
i-ticket (where the delivery of tickets will be made at your address) or
E-tickets (wherein after successful payment transactions, an e-ticket is
generated which can be printed any time. For an e-ticket, the details of photo
identity card will required to be filled in)
And select State Bank of India in the payment options. You will be redirected to
Internet Banking site of SBI (www.onlinesbi.com). After submitting the respective ID
and password, you can select your account. After a successful debit, Railways will
generate the ticket. E-ticket can be printed by you whereas the i-ticket will be
dispatched by IRCTC at the given address. Service charges @ Rs.10/- per transaction
shall be levied in addition to the cost of the ticket. Cancellation of E-ticket can be
done by logging on to IRCTC's site; refund amount will be credited to your account
directly within 2-3 days. For cancellation of i-ticket, you shall be required to submit
your ticket at a computerized counter of Railways and on cancellation; the amount
shall be credited back to your account.
You can also book your Air ticket through the e-ticketing feature. Logon to Indian
Airlines website to make a payment for an e-ticket through State Bank of India, you
need to select SBI as the payment option. The payment request will be redirected to
Internet Banking site. The request may be processed based on values sent from the
airlines website. Once a transaction is processed, an appropriate response will be sent
to airlines site to update the status of the transaction. You can print the E-ticket
immediately.
To book bus tickets to destinations in Karnataka, log on to the KSRTC website.
Provide details about the start and end points of your journey, date of journey and
number of tickets. Verify availability of seats on the selected date and confirm the
transaction. Select OnlineSBI to make the payment. Provide your credentials and
select the SBI account that will be debited for the payment. You are provided a
KSRTC reference number for your e-Ticket.
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2) SBI E-TAX:-
You can pay your taxes online through SBI E-Tax. This facility enables you to pay
TDS, Income tax, Indirect tax, Corporation tax, Wealth tax, Estate Duty and Fringe
Benefits tax. Click the e-Tax link in the home page. You are displayed a page with
two links Direct Tax and Indirect Tax.
Click the Direct Tax link. You will be redirected to the NSDL site where you can
select an online challan based on the tax you wish to pay. Provide the PAN, name and
address, assessment year, nature of payment and bank name. On selecting the bank
name as SBI and submitting the form, you will be redirected to the Internet Banking
site. After submitting the respective ID and password, you can select your account for
making payment of taxes. After payment is successful you can print the E-Receipt for
the payment. The E-receipt can be printed at a later date also and the same can be
retrieved from: Enquiries > Find Transactions > Status Enquiries > Click on the
respective transaction to print the tax receipt.
The Indirect Tax link is used to make Central Excise and Service Tax payments to
Central Board of Excise and Customs. The online payment feature facilitates anytime,
anywhere payment and an instant E-Receipt is generated once the transaction is
complete. The Indirect Tax payment facility is available to Registered Central
Excise/Service Tax Assessee who possesses the 15 digit PAN based Assessee Code.
You can make CBEC payments using the Indirect Taxes link available in the
Payments/Transfers tab. You need to provide your assessee code as registered with
CBEC and select the minor heads towards which you intend to pay tax. Select the
appropriate tax type and enter the tax amount. Select an account for debiting the total
tax amount. You can use any of your transaction accounts to make the payment. If a
payment is successful, CBEC provides a link to generate an E-Receipt for the
payment.
Internet banking customers can pay tax through site to site integration. For
government agencies, which are not Internet-enabled, OnlineSBI offers the
Government Tax Payment facility. This facility is available as a post login feature in
the retail and corporate banking sites of the Online SBI portal.
Please note that the cut-off time for OLTAS and CBEC payment is 8 P.M. IST. Any
transactions created after the cut off time will be processed after 7 A.M. on the
following day.
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3) Bill Payment :-
A simple and convenient service for viewing and paying your bills online.
No more late payments
No more queues
No more hassles of depositing cheques
Using the bill payment you can 'view and Pay various bills online, directly from your
SBI account. You can pay telephone, electricity, insurance, credit cards and other bills
from the comfort of your house or office, 24 hours a day, 365 days a year. Simply
logon to http://www.onlinesbi.com/ with your credentials and register the biller to
which you want to pay, with all the bill details. Once the bill is uploaded by the biller,
you can make payment online. You can see 'how do i' to learn the steps for using the
facility.
You can also set up Auto Pay instructions with an upper limit to ensure that your bills
are paid automatically whenever they are due. The upper limit ensures that only bills
within the specified limit are paid automatically, thereby providing you complete
control over these payments.
The e-PAY service is available in various cities across the country and you can now
make payments to several billers in your region.
4) RTGS/NEFT :-
You can transfer money from your State Bank account to accounts in other banks
using the RTGS/NEFT service. The RTGS system facilitates transfer of funds from
accounts in one bank to another on a "real time" and on "gross settlement" basis. This
system is the fastest possible interbank money transfer facility available through
secure banking channels in India. RTGS transaction requests will be sent to RBI
immediately during working hours post working hours requests are registered and
sent to RBI on next working day. You can also schedule a transaction for a future
date. You can transfer an amount of Rs.1 lac and above using RTGS system.
National Electronic Funds Transfer (NEFT) facilitates transfer of funds to the credit
account with the other participating bank. RBI acts as the service provider and
transfers the credit to the other bank's account.
NEFT transactions are settled in batches based on the following timings
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1.6 settlements on weekdays - at 09:00, 11:00, 12:00, 13:00, 15:00 and 17:00
hrs.
2.3 settlements on Saturdays - at 09:00, 11:00 and 12:00 hrs.
Please note that all the above timings are based on Indian Standard Time (IST) only.
In order to transfer the funds to an account with other bank, kindly ensure that the
bank branch of the beneficiary is covered under the RGTS/NEFT payment system. It
is recommended that you choose the Bank/ Branch from the drop down option
provided under the link "Add Interbank beneficiary".
Please exercise care to provide the correct account number and name of the
beneficiary.
5) E-Payment :-
You can pay your insurance premium, mobile phone bills and also you can purchase
mutual fund units by coming from the biller’s website and selecting state bank of
India in the payment option.
LIC PREMIUM: For paying premium of LIC policy logon to www.licindia.com and
register your policy details. When the premium is due select State Bank of India in the
make payment option.
SBI Mutual FUND: You can invest in the SBI Mutual Fund schemes online. Logon to
www.sbimf.com and select the scheme in which you want to make investment in the
payment option select State Bank of India.
CCAVENUES: Enjoy shopping at the CCAvenue Shopping Mall and purchase from
a wide variety of products and services through CCAvenue Certified Vendors. Make
payments for your purchases using your Internet enabled SBI accounts.
6) Fund Transfer :-
The Funds Transfer facility enables you to transfer funds within your accounts in the
same branch or other branches. You can transfer aggregating Rs.1 lakh per day to own
accounts in the same branch and other branches. To make a funds transfer, you should
be an active Internet Banking user with transaction rights. Funds transfer to PPF
account is restricted to the same branch.
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Just log on to retail section of the Internet Banking site with your credentials and
select the Funds Transfer link under Payments/Transfers tab. You can see all your
online debit and credit accounts. Select the debit account from which you wish to
transfer funds and the credit account into which the amount is to be credited. Enter the
amount and remarks. The remarks will be displayed in your accounts statement for
this transaction. You will be displayed the last five funds transfer operations on your
accounts. On confirming the transaction, you will be displayed a confirmation page
with the details of the transaction and the option to submit or cancel the funds transfer
request. A reference number will be generated for your record.
8) Demand Draft :-
The Internet Banking application enables you to register demand drafts requests
online. You can get a demand draft from any of your Accounts (Savings Bank,
Current Account, Cash Credit or Overdraft). You can set limits for demand drafts
issued from your accounts or use the bank specified limit for demand drafts.
You can opt to collect the draft in person at your branch, quoting a reference to the
transaction. A printed advice can also be obtained from the site for your record.
Alternatively, you may request the branch to courier it to your registered address, and
the courier charges will be recovered from you.
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If you have any queries, kindly approach your branch, quoting the reference number
generated for the request.
You can request for a cheque book online. Cheque book can be requested for any of
your Savings, Current, Cash Credit, and Over Draft accounts. You can opt for cheque
books with 25, 50 or 100 cheque leaves. You can either collect it from branch or
request your branch to send it by post or courier. You can opt to get the cheque book
delivered at your registered address or you can provide an alternate address. Cheque
books will be dispatched within 3 working days from the date of request.
Just log on to retail section of the Internet Banking site with your credentials and
select the Cheque Book link under Requests tab. You can view all your transaction
accounts. Select the account for which you require a cheque book; enter the number
of cheque leaves required and the mode of delivery. Then, submit the same.
You can view Demat account details, and generate the following statements:
statement of holding, statement of transactions, statement of billing.
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14) Donation:-
You can make donation to religious and charitable institution by using Internet
and go to Payment and transfer and click on make donation link. After selecting the
debit account select the religious/charitable institution whom you want to offer
donation. After successful payment you can print an E-receipt for the donation made.
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Chapter 6
Strengths:-
Weaknesses:-
Opportunities:-
Challenges:-
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60
RESEARCH
METHODOLOGY
61
RESEARCH METHODOLOGY
It may be understood as a science of studying how research is done. and it to study the
various steps that are generally adopted by a researcher in studying his research
problem it is necessary for the researcher to design the methodology form the problem
RESEARCH PROCESS
Before embarking on the detail of research methodology and the techniques it seems
appropriate to present the brief overview of the research process. Research process
consists of series of action or steps necessary to effectively carried out the research
and the desired sequencing of these steps one should remember that the desired
sequencing of these steps. One should remember that various steps involve in a
research process are not mutually exclusive nor they are separate and distinct they do
not necessarily follow each other. any specific order and researcher have to be
constantly anticipating at each steps in the research process however the following
order concerning various steps provide a useful procedural guideline regarding the
research process.
systems of Indian and United States of America. Reserve Bank of India & US Federal
basically the blue print for a collection of data, measurement and analysis of data. “A
research design is the arrangement of conditions for collection and analysis of data
procedure”.
Data collection
I have used secondary data for which I have searched report related topics, articles
Secondary data
Internet
Books
Journal
Manuals
Annual reports
DATA COLLECTION
The task of data collection begins after research problem has been defined and
research design/ plan chalked out while deciding about the data collection to be used
for studying one type of data is used and there is no option for Primary Data.
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Secondary data: On the other hand are those which have already been collected by
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FINDINGS
65
ECOMMERCE IN INDIA
The latest report on Ecommerce in India published by the IAMAI (Internet and
Mobile Association of India) indicates a healthy growth rate over the previous years.
primarily due to the penetration of PC into the lower Socio Economic Classes (SEC)
spread across smaller towns in India. With increasing literacy rates and growing
incomes, people from these classes have readily adopted the Internet for Ecommerce
and other uses. Claimed Internet Users (those who have used the Internet at least once
in the past) have grown by a substantial 20% in 2009 over 2008. This rate is
significantly higher than the growth rates in the previous years. The Internet
penetration level in small towns of rural India has increased from a mere 5% in year
2000 to 36% in 2009. The Internet usage figures of these smaller towns have even
overtaken those of the Top 8 Metros indicating the impact of the Internet on the lives
The recent survey conducted by Nielsen, India has emerged as the 3rd biggest nation
when it comes to online shopping and using a credit card online. Drawn by the
facilities offered by the Web and the diversity of products available on it, Indian
netizens have emerged as the third biggest credit card users globally for online
purchasing, next only to the Turkey and Ireland. The survey shows more than 85 per
cent of Internet users in the world are purchasing goods or services online, with credit
cards as the most used method of payment. Despite the improved penetration of
Internet usage, both in urban and rural India, the actual figures are far short unlike in
the US and Europe. India’s economy is pegged at about Rs.1.2 trillion (by 2008
estimates) and its Ecommerce market is approximately Rs.9000 – 10000 crore (nearly
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US$ 2 billion). In comparison, the US economy is $14.2 trillion and its Ecommerce
market (B2C) is estimated at $ 220 billion in year 2008. Thus India’s ecommerce to
the size of its ecommerce market being only 1% that of the US. These figures, though
disappointing, indicate the potential for growth of India’s Ecommerce market and that
it is getting there – slowly but surely. There is still tremendous scope for investors and
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ECOMMERCE IN RURAL INDIA
Internet and Mobile Association of India (IAMAI), the rural internet users have
outgrown the number of urban internet users. According to the eBay Census Guide
2009, India has 2471 eCommerce hubs. These hubs are spread over the entire country
and cover cities, towns, villages, and smaller towns. All 28 states and 7 Union
Territories have witnessed eCommerce transactions. It was also found that rural
Indians are actively involved in online shopping. Online buying and selling trends
have been observed in Bundy (Rajasthan), Thevaram (Tamil Nadu), and Tezpur
(Assam). Online shopping is underway in 747 rural towns of India. The study reveals
that 181 rural towns, including Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra,
and Gujarat are active entrepreneurship hubs. These hubs cater to online selling in
India is the fourth country in terms of Internet usage. The internet-savvy population
market for online shopping is at Rs 130 Million. The global growth rate for online
shopping is around 8%-10%, but India has a much higher growth rate of 30%.
Some of the areas that have observed a successful eCommerce activity include:
Travel and tourism: In India, it is the most successful eCommerce initiative. It has
Online Shopping: In metro cities, particularly Delhi and Mumbai, online shopping is
becoming popular. Some of the stores providing online shopping facilities include:
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The Bombay Store, Big Bazaar, Pantaloons, and shopping portals on websites such as
www.rediff.com.
eCommerce marketplace. Delhi ranks second in online shopping activity. India’s top
5 eCommerce hubs are: Delhi, Mumbai, Chennai, Jaipur and Bangalore. According to
a survey conducted by eBay, India had about 2,471 eCommerce hubs in 2009. In this
year, all 28 states and 7 Union Territories of India witnessed eCommerce transactions.
Additionally, the survey reveals that most of the eCommerce transactions originate
from Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra, and Gujarat. These are the
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Future Potential and Growth
catered to: physical connectivity and technology, and legal framework governing the
flow of trade. To ensure a better connectivity, there has been an increase in the
sector. And to address trade related issues in eCommerce, the government has set up
One of the major factors for eCommerce not taking off in India as expected is the
dispatch of goods on time and payment issues. Merchants start order processing and
shipping only after the receipt of money through Credit Card or online banking
payment. Mostly, online payments are credited to the intermediaries like PayPal, who
transfer these payments to merchants. To address this situation, Reserve Bank of India
has issued new norms for facilitating eCommerce transactions. As per the RBI
directives, the payment will be credited directly to the merchants and not the
intermediaries. With this arrangement, money will be available to the merchant within
3 days of transaction. This will expedite shipping of goods to the customer on time.
However, still there is an underlying problem of fixing responsibility for the goods
delivered and the payment. Online retailers do not take full responsibility of a clear e-
transaction. So, the customer problems still persist. However, India has taken a
number of steps to facilitate eCommerce transactions and steadily, the loop-holes are
being plugged.
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RECOMMENDATIONS
71
RECOMMENDATIONS FOR THE FUTURE
Colleges and Schools including Business Schools should reflect this trend in the
expanding its horizons as a new centre for business idea for global industrialists.
Novel promotion and selling ideas are being formulated according to needs of the
There are many products which can be sold and exported. It could be anything
products sans any risk and cost. The step towards starting an e-commerce
ranging from healthcare to herbs, etc. Search the net and find out which
product can meet the requirements of a certain category of customer. Test your
product online before taking any risk. The probable risk in this business is that
the good or service may not appeal to the customers or there might not be any
sales.
With the development in customer market the Indian economy has flourished
over the years giving rise to a class of people with disposable income. For
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The potential of e-commerce business within India is restricted for another
two years. Going by the past records of other countries, China witnessed a
massive upsurge in its internet users by 4 million users in the year 1999 from
is that only 1 million people have direct access to the internet and out of 36
Indians only 1 have phone access and many of them even do not have credit
business is to cater to the massive requirements for quality content that the
professionals. The possible risk involved in such kind of business is that the
The geographic barriers are fading and with the internet revolution this type of
people who speak quality English as the cost of hiring a call centre employee
in India is around US $150-$200 per month. This paved way for setting up a
decent online support system in India for the United States. Indian
entrepreneurs can easily surpass any problem by training the online support
staff and educating them about the attitude and lifestyle of the American
customer.
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Export of data services:
best option. This business is the most recent in India and is already a hit in big
data services like medical transcriptions. There is a massive demand for these
offer high quality skilled employment. If the quality of work is not sustained
then the risk may surface with complaints coming from the clients.
secure supplement to eCommerce due to the record growth in mobile user base
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CONCLUSION
75
CONCLUSION
In sum, the most successful marketplaces are expected to be those that cater to
consumer's loneliness, boredom, education and career. For instance, look at the
success of on-line chats and home shopping channels. But debates rage over
for solving consumer loneliness. Nobody would want to get into something that
wasn’t secure. So when you are ready for e-business you’ll find that many
organizations have developed solutions like Real Time Intrusion Detection and
Anti Virus software. These along with personal codes and passwords make sure
that any transaction that takes place or any information that is shared is seen only
by the people it’s meant for. So ensure that it is real safe to do business online,
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ANNEXURE
77
BIBLIOGRAPHY
Websites:
www.google.com
http://en.wikipedia.org/wiki/Ecommerce_in_India
www.scribd.com
www.commercewiki.com
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