WHAT IS E-RETAILING?

 E-retailing, most commonly known as e-tailing is nothing

but shopping through the Internet and other media forms.

 E-tailing is synonymous with business-to-consumer (B2C)

transaction.

 E-tailing began to work for some major corporations and

smaller entrepreneurs as early as 1997 when Dell Computer
reported multimillion dollar orders taken at its Web site.
BOTTLENECKS FACED BY
E-RETAILING IN INDIA:-
1) Problems with the Payment System

2) Problems with Shipping

3) Offline presence

4) Language Problem
FUTURE OF E-RETAILING IN INDIA:-
# There are divergent views on the future of e-retailing in
India.

# Some experts are of the opinion that the giant, big brand
retailers would dominate the small ones due to their wider
investment capacities.

# It would be next to impossible for the small retailers and the

kiranas to prove their existence in the battlefield of online
retailing.

# Another viewpoint is that there would be an exponential

growth in the online retailing business in India.
WHAT IS PROFITABILITY?
Ability of a firm to generate net income on a consistent basis.
It is often measured by price to earnings ratio.

The efficiency of a company or industry at generating earnings.

PROFITABILITY DEFINED:-

Profits = Revenues - Costs

Profits = (Unit Sales x Price) - Costs
Some examples of profitability ratios are:

 Profit Margin
 Return On Assets And
 Return On Equity.

It is important to note that a little bit of background knowledge

is necessary in order to make relevant comparisons when
analyzing these ratios.
PROFITABILITY PARADOX:-

Profits = (# Unit Sales x Price) - Costs

 Unit sales somewhat a function of price…
– The lower the price, the more might be sold
– More units sold = lower production costs

 Product Price: critical to every part of the profitability

Equation

 Every $$ over break-even is profit

TRADING ACCOUNT:-
1. An account similar to a traditional bank account, holding
cash and securities, and is administered by an investment
dealer.

2. An account held at a financial institution and administered

by an investment dealer that the account holder uses to
employ a trading strategy rather than a buy-and-hold
investment strategy.

3. Though trading accounts are traditionally thought to

hold only stocks, a trading account can hold cash, foreign
cash, securities and a number of other types of investments.
ITEMS IN TRADING A/C:-
• Opening Stock
• Carriage
• Import Duty
• Custom Duty
• Octroi Duty
• Wages
• Excise Duty
• Royalties
• Purchases
• Return Inwards
• Closing Stock
• Goods Destroyed In Fire
• Goods Distributed As Free Sample
• Sales
• Factory Insurance
• Returns Outwards
• Factory Repair
PROFIT AND LOSS ACCOUNT:-
The purpose of the profit and loss account is to:

• Show whether a business has made a PROFIT or LOSS over a

financial year.

• Describe how the profit or loss arose – e.g. categorizing costs

between “cost of sales” and operating costs.

• A profit and loss account starts with the TRADING ACCOUNT

and then takes into account all the other expenses
associated with the business
ITEMS IN PROFIT & LOSS A/C:-
• Staff salary • Commission received
• General expenses • Discount received
• Commission • Interest on investment
• Sundry expenses • Rent received
• Printing & stationary • Royalty received
• Telephone charges • Provision for discount on creditors
• Carriage outward • Miscellaneous income
• Delivery expenses • Audit Fee
• Free sample • Conveyance
• Advertising • Depreciation
• Godown rent • Provisions For Discount On Debtors
• Discount allowed • Interest On Loan
• Bank charges • Showroom Expenses
• Export duty • Bad Debts And Provisions
BALANCE SHEET?
• Balance Sheet (BS) is a financial statement at a given point
in time.

• The BS will show you how the company is funded i.e. in

Capital & Reserve by current trading profits and capital
invested by the owners, and how the funding is currently
being used i.e. stock, debtors, buildings, cash etc. 
ITEMS IN BALANCE SHEET:-
• Bills Payable • Trade Marks
• Sundry Creditors • Copy Right
• Outstanding Expenses • Motor Car
• Loans • Furniture & Fixtures
• Bank Overdraft • Plant & Machinery
• Drawing • Land & Building
• Interest On Capital • Goodwill
• Petty Cash • Closing Stock
• Cash In Hand • Stores & Spare Parts
• Cash In Bank • Fictitious Assets
• Prepaid Expenses
• Bills Receivables
• Sundry Debtors
• Loose Tools
• Investments
• Patterns