Name: Crispin Joshua Nyss

Class: 12 C2

Roll Number: 13013

Business Studies Project

2nd Term
 Introduction

Online Business or e-business is any kind of business or commercial

transaction that includes sharing information across the
internet. Commerce constitutes the exchange of products and services
between businesses, groups, and individuals and can be seen as one of the
essential activities of any business. Electronic commerce focuses on the use
of information and communication technology to enable the external activities
and relationships of the business with individuals, groups, and other
businesses, while e-business refers to business with help of the internet.
Electronic business differs from electronic commerce as it does not only deal
with online transactions of selling and buying of a product and/or service but
also enables to conduct of business processes (inbound/outbound logistics,
manufacturing & operations, marketing and sales, customer service) within the
value chain through internal or external networks. The term "e-business" was
coined by IBM's
Points of
 E-Business Traditional business
marketing and Internet
differences
team in 1996.
It refers to the local store
It means electronic business. It
which provides the
Meaning also refers to the activities
products and services to
through the internet.
the local customers.

Traditional business having

There is very less cost to start
Cost a high cost for start-up and
an electronic business.
other activities.
Difference
Operating cost is less in e-
Operating
cost
business because all the
activities are through online
In traditional business,
operating cost is high.
Between
mode.

In e-business, no physical
This business includes all
those activities which are
Electronic and
Physical
Traditional
examination of goods is related to the local market,
examination
required. so physical examination is
possible in this case.

As an online business, there is In this business, various

no channel of distribution
Distribution
because all the transactions
are through the internet.
intermediaries are involved
Business
such as wholesaler,
retailer, sale agents etc. 1

As all parties are connected

High risk is involved in the
and having personal
electronic business as there is
Risk interaction so there is very
no personal or direct contact
less chance of risk related
between the parties.
to misconduct.

Semi-skilled and skilled

Technically qualified and IT
Human human resources can run
professionals are needed to run
Resources traditional business
an online business.
smoothly.
 Amazon (E-Business)

Amazon.com, Inc. is an American multinational technology company which

focuses on e-commerce, cloud computing, digital streaming, and artificial
intelligence. It is one of the Big Five companies in the U.S. information
technology industry, along with Alphabet (Google), Apple, Meta (Facebook),
and Microsoft. The company has been referred to as "one of the most
influential economic and cultural forces in the world", as well as the world's
most valuable brand.
Jeff Bezos founded Amazon from his garage in Bellevue, Washington, on July 5,
1994. Initially an online marketplace for books, Amazon has expanded into a
multitude of product categories: a strategy that has earned it the moniker,
"The Everything Store". The company has multiple subsidiaries including cloud
computing company, Amazon Web Services; autonomous
vehicle company, Zoox; satellite internet company, Kuiper Systems; and
computer hardware R&D company, Amazon Lab126. Other subsidiaries
include Ring, Twitch, IMDb, and Whole Foods Market. Its acquisition of Whole
Foods in August 2017 for US$13.4 billion substantially increased its footprint as
a physical retailer.
Amazon has earned a reputation as a disruptor of well-established industries
through technological innovation and mass scale. As of 2021, it is the
world's largest Internet company, online marketplace, AI
assistant provider, cloud computing platform, and live-streaming service as
measured by revenue and market share. In 2021, Amazon
surpassed Walmart as the world's largest retailer outside of China, driven in
large part by its paid subscription plan, Amazon Prime, which has over
200 million subscribers worldwide. It is the second-largest private employer in
the United States, one of the world's most valuable companies, and as of
2021, the world's most valuable brand.
Amazon also distributes a variety of downloadable and streaming content
through its Amazon Prime Video, Amazon Music, Twitch, and Audible units. It
publishes books through its publishing arm, Amazon Publishing, film and
television content through Amazon Studios, and is currently in the process of
acquiring film and television studio, Metro-Goldwyn-Mayer. Amazon also
produces consumer electronics, most notably, Kindle e-
readers, Echo devices, Fire tablets, and Fire TV.
Amazon has been criticized for practices including technological surveillance
overreach, a hyper-competitive and demanding work culture, tax
avoidance, and anti-competitive behavior.

ORIGIN:
Jeff Bezos founded Amazon in July 1994, choosing Seattle because of technical
talent as Microsoft is located there. Mackenzie Scott played a big role in the
founding of Amazon and drove across the country with Jeff to start it. After
Scott graduated, she applied to work for D. E. Shaw & Co., a quantitative hedge
fund in New York City, as a research associate to "pay the bills while working
on her novels". She was interviewed by Jeff Bezos, who was then a vice-
president at the firm. The interview was her first meeting with him.
In May 1997, Amazon went public. It began selling music and videos in 1998, at
which time it began operations internationally by acquiring online sellers of
books in United Kingdom and Germany. The following year, Amazon began
selling items including video games, consumer electronics, home improvement
items, software, games, and toys.
In 2002, Amazon launched Amazon Web Services (AWS), which provided data
on website popularity, Internet traffic patterns and other statistics for
marketers and developers. In 2006, Amazon grew its AWS portfolio
when Elastic Compute Cloud (EC2), which rents computer processing power as
well as Simple Storage Service (S3), that rents data storage via the Internet,
were made available. That same year, Amazon started Fulfillment by
Amazon which managed the inventory of individuals and small companies
selling their belongings through the company internet site. In 2012, Amazon
bought Kiva Systems to automate its inventory-management business,
purchasing Whole Foods Market supermarket chain five years later in 2017.
On February 2, 2021, Amazon announced that Jeff Bezos would be stepping
down as CEO and transition to Executive Chair of Amazon's board in Q3 of
2021. Andy Jassy, who is currently CEO of AWS, will succeed Bezos as CEO of
the company.

NATURE:

Amazon offers its business operations – such as its warehouse, packaging,

shipping, advertising and checkout services – to other businesses. So Amazon
is also in the “Fullfillment” business, helping other companies take care of their
customers from the point of sale to delivery of the product.

SIZE:

As a company, it is one of the world’s most valuable and only one of the
handful to have reached a market cap greater than $1trn. In 2019,
it reported $280.5bn in revenue and $11.58bn in net income. And it is one of
the few firms that have continued to grow despite the COVID-19 pandemic and
lockdowns, having reported 26% revenue growth in the recent quarter.

PRODUCTS AND SERVICES:

Amazon product lines include (books, DVDs, music CDs, videotapes, and

software), apparel, baby products, consumer electronics, beauty products,
gourmet food, groceries, health and personal-care items, industrial & scientific
supplies, kitchen items, jewelry and watches, lawn and garden items, musical
instruments, sporting goods, tools, automotive items and toys/games.
The company launched amazon.com Auctions, a web auctions service, in
March 1999. However, it failed to chip away at the large market share of the
industry pioneer, eBay. Later, the company launched a fixed-
price marketplace business, zShops, in September 1999, and the now defunct
partnership with Sotheby's, called Sothebys.amazon.com, in November.
Auctions and zShops evolved into Amazon Marketplace, a service launched in
November 2000 that let customers sell used books, CDs, DVDs, and other
products alongside new items. As of October 2014, Amazon Marketplace is the
largest of its kind, followed by similar marketplaces from Sears, Rakuten,
and Newegg.
In August 2007, Amazon announced AmazonFresh, a grocery service
offering perishable and nonperishable foods. Customers could have orders
delivered to their homes at dawn or during a specified daytime window.
Delivery was initially restricted to residents of Mercer Island, Washington, and
was later expanded to several ZIP codes in Seattle proper] AmazonFresh also
operated pick-up locations in the suburbs of Bellevue and Kirkland from
summer 2007 through early 2008.
In 2012, Amazon announced the launch of Vine.com for buying green products,
including groceries, household items, and apparel. It is part of Quidsi, the
company that Amazon bought in 2010 that also runs the
sites Diapers.com (baby), Wag.com (pets), and YoYo.com (toys). Amazon also
owns other e-commerce sites like Shopbop.com, Woot.com, and  Zappos.com.
Amazon's Subscribe & Save program offers a discounted price on an item
(usually sold in bulk), free shipping on every Subscribe & Save shipment, and
automatic shipment of the item every one, two, three, or six months.
In 2013, Amazon launched its site in India, Amazon.in. It started with electronic
goods. In July 2014, Amazon said it would invest $2 billion (Rs 12,000 crore) in
India to expand business, after its largest Indian rival Flipkart announced $1
billion in funding.
In 2014, Amazon sold 63% of all books bought online and 40% of all books sold
overall.
In 2015, a study by Survata found that 44% of respondents searching for
products went directly to Amazon.com.
On September 30, 2015, Amazon announced the launch of Merch by Amazon,
a service intended to help content creators generate revenue through the sale
of branded T-shirts and other merchandise items such as long sleeve shirts,
sweatshirts, hoodies and PopSockets grips, designed by creators and sold,
produced and fulfilled by Amazon. Since the summer of 2018, the service has
also been available on the European marketplaces in Germany and Great
Britain.
In October 2015, Amazon announced a new handmade marketplace called
Handmade By Amazon, already having 5,000 sellers from 60 countries and
 80,000 items for sale. The platform is designed for artisans to sell their good
directly to the public, similar to the platform Etsy.

FUNCTIONING AND POLICIES:

 Adhere to all applicable laws and abide by all Amazon policies.

 Maintain current account information.
 Never misrepresent yourself.
 Always act in a manner that ensures a trustworthy experience for Amazon
customers.
 Never list products that may cause harm to Amazon customers.
 Never engage in any misleading, inappropriate or offensive behaviour. This
applies to all your activities, including but not limited to:
o Information provided on your account
o Information provided in listings, content or images
o Communication between you and Amazon or you and our customers
 Act fairly at all times. Unfair behaviour includes but is not limited to the
following:
o Behaviour that could be deemed as manipulation or "gaming" of any part
of the buying or selling experience
o Actions that could be perceived as manipulating customer reviews,
including by directly or indirectly contributing false, misleading or
inauthentic content
o Activities that could be perceived as attempting to manipulate Amazon's
search results or sales rankings
o Actions that intentionally damage another seller, their listings or their
ratings
o Only maintain one Seller account for each region in which you sell, unless
you have a legitimate business need to open a second account and all of
your accounts are in good standing. Examples of a legitimate business
justification include:
o You own multiple brands and maintain separate businesses for each
o You manufacture products for two distinct and separate companies
o You are recruited for an Amazon programme that requires separate
accounts.
 Flipkart(E-Business)

Flipkart is an Indian e-commerce company, headquartered in Bangalore,

Karnataka, India, and incorporated in Singapore as a private limited
company. The company initially focused on online book sales before expanding
into other product categories such as consumer electronics, fashion, home
essentials, groceries, and lifestyle products.
The service competes primarily with Amazon's Indian subsidiary and domestic
rival Snapdeal. As of March 2017, Flipkart held a 39.5% market share of India's
e-commerce industry. Flipkart has a dominant position in the apparel segment,
bolstered by its acquisition of Myntra, and was described as being "neck and
neck" with Amazon in the sale of electronics and mobile phones. Flipkart also
owns PhonePe, a mobile payments service based on the UPI.
In August 2018, U.S.-based retail chain Walmart acquired a 77% controlling
stake in Flipkart for US$16 billion, valuing Flipkart at around $20 billion.

ORIGIN IN BRIEF:

Flipkart was founded in October 2007 by Sachin Bansal and Binny Bansal,

alumni of the IIT, Delhi and former Amazon employees. The company initially
focused on online book sales with country-wide shipping. Flipkart slowly grew
in prominence and was receiving 100 orders per day by 2008. In 2010, Flipkart
acquired the Bangalore-based social book discovery service WeRead
from Lulu.com.

NATURE:

Flipkart is an Indian e-commerce company based in Bangalore, Karnataka,

India. It was founded by Sachin Bansal and Binny Bansal in 2007. The company
initially focused on book sales, before expanding into other product categories
such as consumer electronics, fashion, home essentials & groceries, and
lifestyle products.

SIZE:
Flipkart is the largest online retailer in India, with a 31.9% market share in
2018, followed by Amazon at 31.2%, according to Forrester. After adding the
market share of its fashion specialty sites Myntra and Jabong, Flipkart controls
a 38.3% market

PRODUCTS AND SERVICES:

The Company provides books, movies, music, games, consoles, televisions,

mobiles, digital cameras, computers, network components, software,
peripherals, apparel, shoes, and kitchen appliances.

FUNCTIONING AND POLICIES:

Although WS Retail was incorporated in 2009, most of the products being sold
on Flipkart till 2013 were from the inventory owned by Flipkart. As seen in an
earlier post, this was at a time when the FEMA policies on e-commerce and
multi-brand retail were unclear.

As the rules became clear that e-commerce and multi-brand retail entities
could not have FDI, WS Retail was sold off to a group of HNIs led by Rajiv
Kuchhal in 2013, with a board comprising of unknown individuals rumoured to
be relatives of the Flipkart founders (unconfirmed).

If true, this makes it a notional separation with WS Retail working closely with
Flipkart, although they are two different legal entities.
Currently, Flipkart is operating in the marketplace model where any seller can
put up their products and pay a commission to Flipkart. However, it is to be
noted that a vast majority of products available are owned by WS Retail,
making it one of the largest sellers by far.

PayZippy (Flipkart Payment Gateway Services Pvt Ltd)

This company was incorporated in 2011 with the board comprising of Amod
Malviya and others. Amod is currently the CTO of Flipkart and was earlier the
Head of Engineering. He has prior experience of financial transactions
in ApnaPaisa.com. PayZippy Merchant services (payment gateway) was
launched in July 2013 with the claimed intention of tackling the existing
problems of low transaction success rates, slow refunds and lack of
transparency. PayZippy Consumer services were launched in December 2013 –
it is essentially a prepaid wallet where credit card details will be saved and a
simple two-factor authentication can be used by consumers to make online
payments quickly and effectively.

Flipkart has tried to bring in incremental innovation in both services. For the
merchant side, the product aims to increase the transaction success rate to
enable merchants to have a better cash flow. In addition, the pricing system is
comparable to other gateways, but does not have any annual fee that almost
every other payment gateway has. For the consumer side, the feature is a
variation on what Paypal is doing in other countries. They have managed to
gain early buy-ins from websites such as MakeMyTrip, CaratLane and so forth.
The target for consumer side was set at 1 million users by June 2014 although
the current user base is unknown.

eKart (Legal entity name unknown)

Flipkart’s in-house delivery and logistics team were spun off under the brand
name eKart, although there is no specific website and the legal entity that
owns eKart is also not known. As this post goes live, all eKart delivered
packages can only be tracked on the Flipkart website, and typically for the
products owned by WS Retail. However, the service was offered to third-party
e-commerce websites from February this year, starting as a pilot with just a
few unknown partners. eKart claims to have a reach of about 150 cities in
India.

Flipkart’s competitors too are expanding upstream and downstream. For

example, DTDC has launched a specific e-commerce related delivery service
called DotZot. Amazon and Snapdeal provide logistics services to the sellers
selling on their platforms.