PROJECT REPORT

On
“SCOPE OF E-RETAILING
IN INDIA”

Submitted in partial fulfillment of the degree of

Masters of Business Administration
Session (2016-2017)

SUBMITTED TO: SUBMITTED BY:

EXAM CONTROLLER AYUSHI AGGARWAL

(M.D. UNIVERSITY) MBA 4th SEM.

D.A.V INSTITUTE OF MANAGMENT, FARIDABAD

(AFFILIATED TO MAHARISHI DAYANAND UNIVERSITY)
 ACKNOWLEDGEMENT

I am very much thankful to MRS.KANIKA (PROJECT GUIDE) for giving me

opportunity and her guidance which helps me throughout preparing this report. She has
also provided me a valuable suggestions and excellence guidance about this project
which proved very helpful to me to utilize my theoretical knowledge in practical field.

I am thankful to M.D University, Rohtak for putting me to this valuable exposure into the
field of Research Methodology.

I would also like to thanks my family for motivating me and supporting me at every part
of my life.

At last I am also thankful to my friends, who have given me their constructive advice,
educative suggestion, encouragement, co-operation and motivation to prepare this report.

(AYUSHI AGGARWAL)
 PREFACE

The title of my project is “E-RETAILING”

This project report is on how computers have evolved from the earlier twentieth century
till today. It contains E-Retailing and E-Commerce. This report also contain why e-
retailing become an essential need in today’s world and how they are influencing our life.
It also tells about the business uses of e-retailing. And what is the scope and uses of e-
retailing.

(AYUSHI AGGARWAL)
 TABLE OF CONTENTS

CHAPTE TITLE PAGE

R NO. NO.
1. INTRODUCTION TO THE TOPIC
RESEARCH METHODOLOGY
• OBJECTIVE OF THE STUDY
• SCOPE OF THE STUDY
• LIMITATION OF THE STUDY
• DATA COLLECTION

2. REVIEW OF LITERATURE

3. DATA ANALYSIS & INTERPRETATION

4. CONCLUSION & RECOMMENDATION

BIBLIOGRAPHY
 CHAPTER -1

INTRODUCTION
TO
THE TOPIC
 INTRODUCTION TO E-RETAILING

E-Retailing is the sale of goods and services through the Internet. Electronic retailing, or

e-tailing, can include business-to-business and business-to-consumer sales. E-

tailing revenue can come from the sale of products and services, through

subscriptions to website content, or through advertising.

INVESTOPEDIA EXPLAINS 'ELECTRONIC RETAILING- E-

TAILING'
E-tailing requires businesses to tailor traditional business models to the rapidly changing

face of the Internet and its users. E-tailers are not restricted solely to the Internet, and

some brick-and-mortar businesses also operate websites to reach consumers. Online

retailing is normally referred to as e-tailing.

It is a play on the words "retail" and "e-commerce."

If few years back technology brought the shopping information on to the laptops, today it

brings the products right to the doorstep. With the use of internet as a medium a person

can buy products from a virtual store (shopping website). Though detractors to this

technological advancement thought that this would take the joy off shopping, it has only

added a whole new perspective to shopping

The word E-tail has its roots in the word ‘retail’. Here the letter E stands for ‘electronic’
since the shopping process happens through the electronic media (internet). With the use
of a web-space a virtual shop is created and the products are displayed through images in
this space with the features and price tags. By accessing this shopping site a customer can
choose his/her products into a cart. The payment to this product can be done in various
modes as mentioned by the shopping site. The product would be delivered to the address
specified by the customer.

Steps Involved In E-Tailing:-

The shopping process through internet media happens in 5 steps generally.
1) Customer visit: The customer accesses the website of the e-tailer through his/her
mobile or PC or laptop. This visit is very critical to the e-tailer because it is this
visit that would create an opportunity for a business. The simplicity of the site, the
arrangements of the products in the site and various other factors decide the first
impression of the customer.

2) Choice of product: Once the customer visits the site he/she would choose a
product based on the image and valid information available on the web page. This
information can include the price tag, details about the product,
availability/deliverable time span and even customer reviews on the product.
3) Payment online: Once the customer chooses the product the next step would be to
go through a secure process of data exchange. The e-tailer may provide a unique
user account to the customer to keep the transaction safe. Payments to the product
can be made online through credit or debit card or even cash on delivery basis
where the customer pays the e-tailer when the product is delivered to him/her.

4) Product delivery: Once the order is placed with the e-tailer the next process would
test the efficiency of supply chain network of the e-tailer. The delivery of the
product would be based on the availability of the product in the inventory closest
to the customer’s delivery address. This process may also involve shipment of the
product. There are different methods used in this process. Some e-tailers just
create a platform through a website where the business actually takes place
between the customer and a company (or business) who is a client to the e-tailer.
Here the e-tailer would just take the commission on each product sold. Typically
an e-tailer may also choose to buy products that have potential demand and then
display it on the site. In this case the e-tailer would have to take care of inventory
expenses and also the entire procurement and disbursement cycle.

5) Customer feedback: Once the product is delivered to the customer the feedback
from the customer is very much important. This is primarily because of the
absence of a real shopping store environment. The entire experience of the
customer during the process would be an indicator of the efficiency of e-tailing.
This experience of the customer can be accessed through proper customer service
for feed backs and the problems faced by the customer should be corrected by the
e-tailer. Late delivery, wrong product, damaged product etc can be some of the
customer complaints which the e-tailer would have to sort out.
Benefits of E-tailing:-
• It reduces the space occupied by retail outlets in the real world.

• It gives quick and easy access to a shopping space at any time and from any place
where there is access to internet.

• It saves time of the customer that is spent on travelling to a shopping place in real
world.

It creates a new platform for goods from different parts of the world which could be
imported by placing an order.

E-tailers in India:-
• Yebhi.com

• Flipkart.com

• Infibeam.com

• Myntra.com

• E-bay.com

• India times shopping

Increased Internet penetration, improved security measures, convenience of shopping in
lives pressed for time, and, of course, dozens of retailers to choose from – these are
a few factors that are attracting more and more consumers to shop online. In fact,
the recently concluded Google's Online Shopping Festival (GOSF) saw some 16
million Indians shopping online within four days. Yet, while online shopping is an
easy way for comparison of different products on the basis of their features and
specifications—without going from shop to shop, many consumers do find it
difficult to choose the best and safest sites for making purchases. This report
focuses on the consumer-side story so far, specifically the distance between
expectation and experience in the online shopping space, and thereby attempts to
identify problems that consumers face when purchasing online. Priyanka Joshi and
Hemant Upadhyay I n the third week of December, the anchor space in Economic
Times was occupied by a positive story on e-commerce in India. Published after a
thorough background research and interviews with industry leaders and with
support from statistical information from IMRB research, the report concluded that
‘major Indian online retailers, including Snapdeal and fashion portal Myntra,
expect to turn profitable in the next two years, signalling a seismic shift in an
industry where so far growth has been pursued at the expense of the bottom line.’
Dozens of follow-up stories to the story were being e-
Commerce Report published by various other leading dailies till this piece went to print,
and all of them were underlining the fact that India was buying online like never
before and that the numbers of online buyers would continue to grow. Bearing in
mind the popularity of e-stores, we at Consumer Voice set out to capture the
experiences of consumers who were regularly visiting these portals and making
purchases. The mandate was also to review the services of the top e-retailers.
Through a formal survey, we identified the highly rated e-commerce sites and also
identified a few problems that consumers faced on online/Web retail stores. We
identified nearly 140 variables, of which 112 were considered worth researching
and grouped as prepurchase and post-purchase variables (see box). Pre-Purchase
Behaviour Analysed in Phase 1 of survey Post-Purchase Behaviour Analysed in
Phase 2 of survey

• Browsing experience and visual appearance

• Search experience

• Range and availability of products

• Comprehensiveness of information

• Comparison facility

• Terms and conditions

• Shopping cart

• Payment process

• Delivery
• Refund

• Return/Replacement

• Customer care

The e-retailing(less frequently; e-Retailing, e-Tailing, etc.) is the concept of selling of

retail goods using electronic media, in particular, the internet. The vocabulary electronic
retailing, that used in internet discussions as early as 1995, the term seems an almost in
evitable addition to e-mail, e-business and e-commerce, etc. e-retailing is synonymous
with business- to- consumer (B2C) transaction model of e-commerce. Although e-
retailing is an independent business model with certain specific constituents like; trust
model, electronic transaction process, etc, but in reality it is a subset of e- commerce by
nature.

E-Retailing stores sell online promotion only for goods that can be sold easily online,
e.g., Amazon did for Books & CDs, etc. The online retailing require lots of displays and
specification of products to make the viewers have a personal feel of the product and its
quality as he gets while physically present in a shop.

E-Retailing refers to retailing over the internet. Thus an e-Retailing is a B2C (Business to
customer) business model that executes a transaction between businessman and the final
consumer. E-Retailers can be pure play businesses like amazon.com or businesses that
have evolved from a legacy business such as tesco.com. The e-retailing is a subset of e-
commerce. Thus, e-commerce is the master domain defining the e-retailing operation.

Essentials of E-Retailing:-

Electronic retailing or e-tailing, as it is generally being called now, is the direct sale of
products, information and service through virtual stores on the web, usually designed
around an electronic catalogue format and auction sites. There are thousands of
storefronts or e-commerce sites on the Internet that are extensions of existing retailers or
start-ups. Penetration of computers and proliferation of the Internet has given rise to
many new forms of businesses, such as business process outsourcing, call centre based
customer relationship management, medical transcription, remotely managed educational
and medical services and of course, electronic retailing.

There are certain essential ingredients for an electronic retailing business to be

successful. One must consider these components well in advance before setting up an
electronic storefront. These essential components are:

• Attractive business-to-consumer (B2C) e-commerce portal

• Right revenue model
• Penetration of the Internet

E-Catalog- It is a database of products with prices and available stock.

Shopping Cart- The customers select their goodies and fill shopping cart. Finally, as in
a real store, at the time of checkout, the system calculates the price to be paid for the
products.

A payment gateway -Customer makes payments through his/her credit card or e-cash.
The payment mechanism must be fully secure.

Support Services in E-Retailing:-

The electronic retail business requires support services, as a prerequisite for successful
operations. These services are required to support the business, online or offline,
throughout the complete transaction-processing phases. The following are the essential
support services:

• Communication backbone
• Payment mechanism
• Order fulfillment
 RESEARCH METHODOLOGY

Research methodology is not only the application of the research methods but also the
comparision of the logic behind the methods that is being used in this context of research
study and explain why particular methods or techniques are used and why others are not
being used. Research methodology is the to systematically solve the research problem .In
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them are studied in order to have a clear view of the study.
Research methodology is the way to systematically solve the research
problem. It may be understand as a science of studying how research is
done scientifically. In it I study the various steps that are generally adopted by a
researcher in his research problem along with the logic behind them. It is
necessary f o r t h e researcher to know not only the research method but also the
methodology.

The report has different direction and features, including different steps as follows:

The research process includes the following steps:

• Defining the problem

• Statement of research objectives
• Planning the research design
• Planning the sample
• Collection of data
• Analyzing the data
• Formulation of conclusion
• Preparation of the report

OBJECTIVES OF THE STUDY

1. To learn about the advancement of the e-retailing in India.

2. To know what are the various e-retailing interfaces.
3. To gather knowledge about how to increase the sales for manufacturer and how to
influence the customers.
4. To know what are the advantage and disadvantage of e-retailing.
 SCOPE OF THE STUDY
1) This study comprises of in-depth coverage of E-Retailing. A little bit of E-
Commerce is also covered.
2) However this study is limited to the extent that it is only related to the study of E-
Retailing.
3) This study does not focus on the wide spectrum use of e-retailing in daily life on
our social lives and businesses.
 4) There is no doubt in saying that technology is changing our view of living but
side by side it has some side effects or we can say bad effects especially on our
children and society and it can’t be neglected.
5) Scope of the study is limited to the extent of information gather from the internet.
6) This study will help the people to learn about the substitutes available for the
same product.
7) This study explains about the factors which involve in managing the sale and
purchase over network.

RESEARCH DESIGN

The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will
effectively address the research problem; it constitutes the blueprint for the collection,
measurement, and analysis of data.

A research design is the plan of a research study. The design of a study defines the study
type.

The various types of research designs which are used in collection of data are:

• Exploratory Research Design

• Descriptive Research Design

• Diagnostic Research Design

• Experimental Research Design

Research design for the present study applied is an Exploratory

research.

DATA COLLECTION

The type of research design which is used in this study is exploratory research design

Depending on the source, statistical data are classified under two categories:
Primary Data: Primary data are obtained by a study specifically designed to fulfill the
data needs of the problem at hand. Such data are original in character and are generated
in large no. of survey conducted with a sample.

Secondary Data: These data are not originally collected but rather obtained from
published or unpublished source
The source of data collection is Secondary Data.

The various sources which I used for collecting data for this study involve:
• The use of internet
• Books
• Newspaper
• Magazines
These sources really help me a lot in gathering and collecting knowledge about
computers which helped me in completing my project on the topic evolution of
computers successfully.

For the purpose of secondary data, secondary sources of information like

magazines, newspapers, journals; studies conducted in past etc. had been referred. The
main sources of secondary data in the study are
1. Websites
2. Books
3. Journals

LIMITATION OF THE STUDY

 The findings of this study are based on the expressed opinion of the respondents.

 Some respondents were hesitant in providing complete information.

 The sample of the respondents is not representative of the total universe.

 Another limitation lies in the measurement of attitudes toward online privacy in

general. Consumers may behave differently when making purchase decisions
concerning specific Web sites or product categories.

CHAPTER-2

REVIEW OF
LITERATURE
 ESSENTIALS OF E-RETAILING

Electronic retailing or e-tailing, as it is generally being called now, is the direct sale of
products, information and service through virtual stores on the web, usually designed
around an electronic catalogue format and auction sites. There are thousands of
storefronts or e-commerce sites on the Internet that are extensions of existing retailers or
start-ups. Penetration of computers and proliferation of the Internet has given rise to
many new forms of businesses, such as business process outsourcing, call centre based
customer relationship management, medical transcription, remotely managed educational
and medical services and of course, electronic retailing.

There are certain essential ingredients for an electronic retailing business to be

successful. One must consider these components well in advance before setting up an
electronic storefront. These essential components are:

• Attractive business-to-consumer (B2C) e-commerce portal

• Right revenue model
• Penetration of the Internet

E-Catalog It is a database of products with prices and available stock.

Shopping Cart The customers select their goodies and fill shopping cart. Finally, as in a
real store, at the time of checkout, the system calculates the price to be paid for the
products.

A payment gateway Customer makes payments through his/her credit card or e-cash.
The payment mechanism must be fully secure.

SUPPORT SERVICES IN E-RETAILING

The electronic retail business requires support services, as a prerequisite for successful
operations. These services are required to support the business, online or offline,
throughout the complete transaction-processing phases. The following are the essential
support services:

• Communication backbone
• Payment mechanism
• Order fulfillment
• Logistics

HISTORY OF E-REATILING
One of the most popular activities on the Web is shopping. It has much allure in it — you
can shop at your leisure, anytime, and in your pajamas. Literally anyone can have their
pages built to display their specific goods and services.

History of e-retailing dates back to the invention of the very old notion of "sell and buy",
electricity, cables, computers, modems, and the Internet. Ecommerce became possible in
1991 when the Internet was opened to commercial use. Since that date thousands of
businesses have taken up residence at web sites.

At first, the term ecommerce meant the process of execution of commercial transactions
electronically with the help of the leading technologies such as Electronic Data
Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for
users to exchange business information and do electronic transactions. The ability to use
these technologies appeared in the late 1970s and allowed business companies and
organizations to send commercial documentation electronically.
Although the Internet began to advance in popularity among the general public in 1994, it
took approximately four years to develop the security protocols (for example, HTTP) and
DSL which allowed rapid access and a persistent connection to the Internet. In 2000 a
great number of business companies in the United States and Western Europe represented
their services in the World Wide Web. At this time the meaning of the word ecommerce
was changed. People began to define the term ecommerce as the process of purchasing of
available goods and services over the Internet using secure connections and electronic
payment services. Although the dot-com collapse in 2000 led to unfortunate results and
many of ecommerce companies disappeared, the "brick and mortar" retailers recognized
the advantages of electronic commerce and began to add such capabilities to their web
sites (e.g., after the online grocery store Webvan came to ruin, two supermarket chains,
Albertsons and Safeway, began to use ecommerce to enable their customers to buy
groceries online). By the end of 2001, the largest form of ecommerce, Business-to-
Business (B2B) model, had around $700 billion in transactions.

2) ESTIMATED U.S RETAIL ECOMMERCE SALES AS A PERCENT OF TOTAL

RETAIL SALES

According to all available data, ecommerce sales continued to grow in the next few years
and, by the end of 2007, ecommerce sales accounted for 3.4 percent of total sales.
Ecommerce has a great deal of advantages over "brick and mortar" stores and mail order
catalogs. Consumers can easily search through a large database of products and services.
They can see actual prices, build an order over several days and email it as a "wish list"
hoping that someone will pay for their selected goods. Customers can compare prices
with a click of the mouse and buy the selected product at best prices.

Online vendors, in their turn, also get distinct advantages. The web and its search engines
provide a way to be found by customers without expensive advertising campaign. Even
small online shops can reach global markets. Web technology also allows to track
customer preferences and to deliver individually-tailored marketing.

History of ecommerce is unthinkable without Amazon and Ebay which were among the
first Internet companies to allow electronic transactions. Thanks to their founders we now
have a handsome ecommerce sector and enjoy the buying and selling advantages of the
Internet. Currently there are 5 largest and most famous worldwide Internet retailers:
Amazon, Dell, Staples, Office Depot and Hewlett Packard. According to statistics, the
most popular categories of products sold in the World Wide Web are music, books,
computers, office supplies and other consumer electronics.

Amazon.com, Inc. is one of the most famous ecommerce companies and is located in
Seattle, Washington (USA). It was founded in 1994 by Jeff Bezos and was one of the first
American ecommerce companies to sell products over the Internet. After the dot-com
collapse Amazon lost its position as a successful business model, however, in 2003 the
company made its first annual profit which was the first step to the further development.

At the outset Amazon.com was considered as an online bookstore, but in time it extended
a variety of goods by adding electronics, software, DVDs, video games, music CDs,
MP3s, apparel, footwear, health products, etc. The original name of the company was
Cadabra.com, but shortly after it become popular in the Internet Bezos decided to rename
his business "Amazon" after the world's most voluminous river. In 1999 Jeff Bezos was
entitled as the Person of the Year by Time Magazine in recognition of the company's
success. Although the company's main headquarters is located in the USA, WA, Amazon
has set up separate websites in other economically developed countries such as the
United Kingdom, Canada, France, Germany, Japan, and China. The company supports
and operates retail web sites for many famous businesses, including Marks & Spencer,
Lacoste, the NBA, Bebe Stores, Target, etc.

Amazon is one of the first ecommerce businesses to establish an affiliate marketing

program, and nowadays the company gets about 40% of its sales from affiliates and third
party sellers who list and sell goods on the web site. In 2008 Amazon penetrated into the
cinema and is currently sponsoring the film "The Stolen Child" with 20th Century Fox.

According to the research conducted in 2008, the domain Amazon.com attracted about
615 million customers every year. The most popular feature of the web site is the review
system, i.e. the ability for visitors to submit their reviews and rate any product on a rating
scale from one to five stars. Amazon.com is also well-known for its clear and user-
friendly advanced search facility which enables visitors to search for keywords in the full
text of many books in the database.

One more company which has contributed much to the process of ecommerce
development is Dell Inc., an American company located in Texas, which stands third in
computer sales within the industry behind Hewlett-Packard and Acer.

Launched in 1994 as a static page, Dell.com has made rapid strides, and by the end of
1997 was the first company to record a million dollars in online sales. The company's
unique strategy of selling goods over the World Wide Web with no retail outlets and no
middlemen has been admired by a lot of customers and imitated by a great number of
ecommerce businesses. The key factor of Dell's success is that Dell.com enables
customers to choose and to control, i.e. visitors can browse the site and assemble PCs
piece by piece choosing each single component based on their budget and requirements.
According to statistics, approximately half of the company's profit comes from the web
site.
In 2007, Fortune magazine ranked Dell as the 34th-largest company in the Fortune 500
list and 8th on its annual Top 20 list of the most successful and admired companies in the
USA in recognition of the company's business model.

History of ecommerce is a history of a new, virtual world which is evolving according to

the customer advantage. It is a world which we are all building together brick by brick,
laying a secure foundation for the future generations.

• 1989
- Peapod brings the grocery store to the home PC
• 1992
-U.S. Supreme Court upholds 1967 ruling, effectively freeing web retailers from
collecting sales tax in states where they have no physical presence
-Phone-based 1-800-Flowers plants itself on the web
• 1994
-A department store comes to the Internet: J.C. Penney
-Jerry and David’s Guide to the World Wide Web is renamed Yahoo
-Netscape unveils SSL encryption, enhancing web security
-The future king of e-commerce, Amazon.com, launches
-Auction Web launches a site soon to be rechristened eBay
• 1997
-Dell becomes first company to hit $1 million in annual online sales
-Netflix begins operations, changing the way people rent movies
• 1998
-PayPal launches its alternative payment service; eBay acquires PayPal in 2002
-Google, the future king of search, debuts
-Yahoo launches selling platform Yahoo Stores
-Annual online retail sales hit $8 billion
• 1999
-Zappos launches web-only shoe store emphasizing customer service; in 2008,
annual sales top $1 billion
 -Internet Retailer magazine debuts in March
-Online grocery service Webvan starts its engines
-Global Sports, which becomes GSI Commerce in 2002, debuts fully outsourced
e-commerce platform
-Levi gets hands slapped by retailers for selling direct to consumers, kills its web
site
-eToys.com among first online retailers to jump into Internet IPO boom
-Heavy-hitter Furniture Brands International says furniture doesn’t fit the web;
housewares/home furnishings retailers rack up $3.9 billion in web sales in 2007
-Victoria’s Secret debuts site with an online video viewed by 1 million on Day
One
-Weekly web sales top $1 billion for first time in December 1999
-Annual online retail sales skyrocket 100% to $16 billion
• 2000
-Amazon.com and Toys ‘R’ Us announce 10-year agreement for cobranded online
store
-Disgruntled customers file class action suit against ToysRUs.com for failing to
meet Christmas delivery
-In Q4, quarterly e-commerce sales exceed 1% of total retail sales
-Wal-Mart introduces buy online/pick up in store program
-eToys crashes repeatedly during December; shoppers looking to buy file class
action lawsuit
• 2000 (The Dot Com Investment Bust)
-Garden.com throws in the trowel
-Pets.com winds up in the litter
-Hyped fashion retailer Boo.com closes its closet
-The Internet falls out of favor with Wall Street, but not Main Street: online retail
sales soar 81.3 % to $29 billion
-Internet grocery service Webvan runs out of gas
-One-hour delivery service Kozmo.com crashes
-eToys.com shuts its toy chest
 -Despite ongoing dot-com investment implosion, annual online retail sales leap
48.3% to $43 billion
• 2001
-Branded retailers account for 2% of all merchandise sold on eBay
-Amazon.com blazes a trail, launching a mobile commerce site
-Court shuts down free music-sharing site Napster; site relaunches in 2003 as paid
service
-Amazon.com posts first net profit in Q4, proving pure-plays can play
• 2002
-Number of web users who have bought online crosses 50% mark; 52.4% aged
14+ bought on the web in 2002
-Annual online retail sales up 25.6% to $54 billion
• 2003
-Apple launches iTunes store for digital music downloads
-Social network MySpace launches, followed by rival Facebook in 2004
-Congress passes the CAN-SPAM Act, setting rules for marketing e-mail
-Annual online retail sales jump 29.6% to $70 billion
• 2004
-Credit card companies create PCI data security standards
-Internet Retailer debuts Top 300 Guide, which will become the Top 500 Guide
-Annual online retail sales up 25% to $87.5 billion
• 2005
-One million Valentine’s Day shoppers crash Hallmark.com multiple times
-Streamlined Sales Tax Project launches, stepping up pressure for retailers to
collect sales
tax on online sales
-First Internet Retailer Conference and Exhibition
-YouTube launches; its massive popularity inspires e-retailers to take another look
at online video
-Vendor Bazaarvoice launches customer reviews with first client, Golfsmith;
customer reviews soon gain widespread popularity
 -J.C. Penney becomes first retail chain to hit $1 billion in online sales
-Web 2.0 takes hold as more retailers incorporate user-generated content and new
technologies that make sites more interactive
-Annual online retail sales jump 25%-again-to $109.4 billion
• 2006
-Google debuts Google Checkout to compete with the likes of PayPal
-Web-only Newegg hits $1 billion in sales only five years after launch
-Annual online retail sales up 25%-yet again-to $136.2 billion
ZA-Smaller players drive online sales growth: 1-100 in the Internet Retailer Top
500 Guide
grow 19%; 401-500 grow 23%
• 2007
-Apple debuts the iPhone with full web browsing and downloadable apps,
advancing m-commerce
-Nike CEO says he “woke up” to potential of e-commerce, charts new course to
achieve “full potential” of the web
-Apparel sales exceed computer sales online for the first time
-Not-so-merry Christmas: Amazon.com, Macys.com, Overstock.com and Yahoo
Stores crash during the holiday crush
-Annual online retail sales growth slips a bit, up 21.8% to $165.9 billion
• 2008
-Amazon.com surpasses eBay in most monthly unique visitors
-Levi is back selling online; manufacturers account for 14% of sales of Top 500
online retailers
-Amazon.com introduces TextBuyIt, enabling consumers to buy products via text
messages
-Number of smartphone users nears 25 million and 3G wireless broadband
subscribers
surpasses 70 million; both technologies dramatically improve mobile web
browsing
 -The Friday after Thanksgiving, Sears.com down for 2 hours and 45 minutes due
to popularity of online promotions
-Google Sites generate 85 billion searches, Yahoo Sites only 25 billion and
Microsoft Sites 10 billion
-As the economy tanks, the heyday of 20%-plus e-commerce growth ends: annual
online retail sales up only 6%
• 2009
-Amazon.com and Overstock.com lose New York online sales tax battle
\

CHAPTER-4

DATA ANALYSIS
&
INTERPRETATION
Definition of E-Retailing:

The e-retailing(less frequently; e-Retailing, e-Tailing, etc.) is the concept of selling of

retail goods using electronic media, in particular, the internet. The vocabulary electronic
retailing, that used in internet discussions as early as 1995, the term seems an almost in
evitable addition to e-mail, e-business and e-commerce, etc. e-retailing is synonymous
with business- to- consumer (B2C) transaction model of e-commerce. Although e-
retailing is an independent business model with certain specific constituents like; trust
model, electronic transaction process, etc, but in reality it is a subset of e- commerce by
nature.

E-Retailing stores sell online promotion only for goods that can be sold easily online,
e.g., Amazon did for Books & CDs, etc. The online retailing require lots of displays and
specification of products to make the viewers have a personal feel of the product and its
quality as he gets while physically present in a shop.

E-Retailing refers to retailing over the internet. Thus an e-Retailing is a B2C (Business to
customer) business model that executes a transaction between businessman and the final
consumer. E-Retailers can be pure play businesses like amazon.com or businesses that
have evolved from a legacy business such as tesco.com. The e-retailing is a subset of e-
commerce. Thus, e-commerce is the master domain defining the e-retailing operation.
 APPLICATIONS OF E-RETAILING:

The applications of E-commerce are used in various business areas such as retail and
wholesale and manufacturing. The most common E-commerce applications are as
follows:

• Retail and wholesale:

E-commerce has a number of applications in retail and wholesale. E-retailing or on-
line retailing is the selling of goods from Business-to-Consumer through electronic
stores that are designed using the electronic catalog and shopping cart model.
Cybermall is a single Website that offers different products and services at one
Internet location. It attracts the customer and the seller into one virtual space through
a Web browser.

 Marketing:
Data collection about customer behavior, preferences, needs and buying patterns is
possible through Web and E-commerce. This helps marketing activities such as price
fixation, negotiation, product feature enhancement and relationship with the
customer.

• Finance:
Financial companies are using E-commerce to a large extent. Customers can check
the balances of their savings and loan accounts, transfer money to their other account
and pay their bill through on-line banking or E-banking. Another application of E-
commerce is on-line stock trading. Many Websites provide access to news, charts,
information about company profile and analyst rating on the stocks.

• Manufacturing:
E-commerce is also used in the supply chain operations of a company. Some
companies form an electronic exchange by providing together buy and sell goods,
trade market information and run back office information such as inventory control.
This speeds up the flow of raw material and finished goods among the members of
the business community. Various issues related to the strategic and competitive
issues limit the implementation of the business models. Companies may not trust
their competitors and may fear that they will lose trade secrets if they participate in
mass electronic exchanges.

• Auctions:
Customer-to-Customer E-commerce is direct selling of goods and services among
customers. It also includes electronic auctions that involve bidding. Bidding is a
special type of auction that allows prospective buyers to bid for an item. For
example, airline companies give the customer an opportunity to quote the price for a
seat on a specific route on the specified date and time.
• India's popular online fashion store receives 5 unique visitors per second.

• 114 tickets are sold every second on a leading online entertainment website in
India.
 • A local search service generates 1 search query every second via mobile internet.

• An Indian e-commerce company sells a product every second.

The digital world is dramatically shaping the retail sector where constant contact with
the customer is essential. Opinions are now being shaped by bloggers, tweeters,
Facebook likes and YouTube comments. Your next customer is increasingly going to
the internet before going to the store. These new empowered customers have a list of
demands.

• They want retailers to anticipate and service their shopping needs

• They want retailers to make it convenient and easy for them to interact
• They want retailers to be available when they need them
• They want retailers to remember all of their interactions
Cloud, Analytics, Mobility and Social solutions from IBM are exactly what you need to
adapt to today's marketplace. Customers are responding faster to retailers that add value
through innovations and have little interest in retailers who don't meet their expectations.
The customer experience is evolving into a model with heavy emphasis on mobile, social,
analytics and cloud. The power is now shifting to consumers and this shift will continue
to reshape the retailing landscape for years to come.

THE IMPACT THESE SOLUTIONS WILL HAVE ON YOU AS A

RETAILER:

• Customer Experience:
-Turn loyal customers into brand advocates who will actively build the customer
base.

• Inventory & Fulfilment:

- Improve inventory optimisation and customer satisfaction
- Create access to a single pool of inventory to deliver the product when and
where the customer wants it

• Associate Empowerment:
-Increase employee stature and retention while reducing turnover

• Brand Development:
-Increase brand loyalty leading to greater share-of-wallet
 DIFFERENT MODELS FOR E-RETAILING

1) Interactive Systems In E-Retailing -

This kind of e-retailing system permits two way interactions and consists of promotional
touch screen booths or internet and kiosks for components such as holiday or airline
bookings. Some systems can describe the product in use. In case of touch screens
systems, they permit further inquiries or give printouts from the database. A feature of
both systems is that a credit card can be used in order to protect the sale.

2) Passive systems in e-retailing-

These are non interactive one way media, where the retailer can decide upon the timing
and content of messages. They include entire one way communication media forms such
as clubs on television, shopping pages or one way cable systems. The form of selling
using passive systems consists of electronic media or video catalogs which describe the
product in use or offers further information.
Technology today has seen a wide development so as to facilitate the electronic retailing
function properly for both online businesses and consumers (Sople, 2009). The electronic
retailer, in order to make the retailing process a success has to make several decisions
regarding how online business will function. However, all decision must be taken over
and against the principles guiding direct marketing.
 E-Retailing Benefits Both Consumers and Marketers

Electronic retailing is a powerful marketing technique for the right product with the right
message to the right person. But what makes for the right combination? Why do
consumers respond to TV offers or shop online?

The short answer is that the consumer benefits. People respond to electronic retailing
messages because it is to their advantage to do so. It addresses their needs, either
practical or psychological.

Electronic retailing, whether on TV or the Internet, is about motivation. How do you

influence someone to do something - to pick up the phone or log on to a Web site and
then make a purchase? Consumers will buy a product or service through an electronic
retailing campaign because they perceive its value or because it makes them look better
or feel better about themselves. They do this even though they cannot examine the
product in person and may have to wait four to six weeks to receive the product.
They accept these drawbacks for various reasons, including:

• Convenience. For people who are pressed for time and do not enjoy shopping, an
electronic retailing product may take on added value because the buying
transaction can be completed without hassle, quickly and at hours when
traditional retailing is unavailable. It saves them time and energy.

• Early access. While many electronic retailing products are available in retail
stores at some future date, the spot, infomercial or Web site offers the product
now. An electronic retailing campaign may be the only place where it is available
immediately. If the product solves a difficult problem or offers an important
improvement, consumers who buy from the electronic retailer can have the
product in their hands sooner.
 • Innovative or unique products. Getting a new, innovative product to market
through traditional channels is expensive and time-consuming, and it requires
some luck on the part of the product's developer. Electronic retailing allows a
product's developer to bypass this process and sell directly to end-users.
Consumers who see or hear an electronic retailing campaign get access to
products that may never show up in a retail store because the developer lacked the
resources to take on the massive retail industry.

• Better salesmanship. Let's face it: Most products are not well-merchandised. Key
sales messages are poorly communicated or may be missing entirely. Electronic
retailing often overcomes these problems, because the medium itself - television
or the Internet - allows the person to be sold the product. They understand how it
works and why. The benefits are presented clearly and convincingly. And make
no mistake about it: People enjoy being sold to.
So what's in it for marketers? Perhaps the scales are tipped in favor of consumers,
particularly in today's e-commerce environment. But for a marketer with a new product,
electronic retailing can be a cost-effective method of testing a product's viability in the
marketplace. A successful electronic retailing campaign not only generates revenue but
also builds brand awareness and paves the way for broader distribution.

That's not to say that electronic retailing does not have its pitfalls. While the cost of entry
is low compared with the cost of mounting a traditional retail strategy, a poorly executed
electronic retailing campaign can cost hundreds of thousands of dollars. And once
launched, a product can be "knocked off" by an unscrupulous competitor.

For many marketers unfamiliar with electronic retailing and how it works, it is easy to
hook up with inexperienced partners and vendors that do not know how to develop and
manage a campaign effectively. That's scary.

Overall, though, the benefits outweigh the risks for many marketers. An electronic
retailing campaign is a low-overhead operation without the network of wholesalers and
retailers between the seller and the consumer. It is almost exclusively a cash business, in
that electronic retailing marketers do not have to extend credit to their buyers the way
traditional manufacturers do to wholesalers and retailers.

Most important is the control an electronic retailing campaign gives the seller. The timing
and terms of an offer, the price of a product and the content of the message all are under
the direct control of the marketer and can be adjusted quickly as conditions warrant.

The rapid growth of electronic retailing is a testament to a fundamental truth: People on

both sides of the equation benefit in tangible and meaningful ways. And that is a
powerful formula for success.

E-TAILING STRATEGY
 Key Success Factors For E-Retailing

1) Branding

Do you have a 'thing' for brands? Do you like Prada or Gucci? Do you like Starbucks?

A brand is a belief and the most powerful thing. That is the reason you decide to pay
higher price without any problem.

So think, how do you brand your business? What are the current methods for brand
building? Are they really helpful? Are they costing much? Can you measure the ROI
(return-on-investment)? Is it scalable process?

If you’re answers have more ‘No’ than ‘yes’, then it’s time to tune your Brand-Building
method.

Now, how can you build a strong brand if you’re totally new?

These are the effective ways to build a stronger brand using Internet for a new business.

I. Unique Design: Good enough to hold them! If you’re able to amaze them, you
can sell even more. Get a Logo and designed website. It doesn't cost you much if
you use service like Elance.

II. Utilize Social Networks: Facebook, Twitter and LinkedIn presence are very
helpful here. They got some very innovative products (Twitter Promoted,
Facebook Ads etc) to promote a brand. Spend some time to discover the ‘best
practices’.
2) USP

USP stands for Unique Selling Proposition. How do you differentiate your business from
others? What are the product differentiators?

A buyer usually spends a good time on research. He searches for • Price • Quality • Deals
• Reviews etc So How do you differentiate your products? Is it price, quality, customer
support, any guaranty (Money Back, warranty etc.) or payment flexibilities?

When you find your USPs, showcase them everywhere. It’ll help buyers to make
decisions.

For example, I’m willing to pay higher price for fast shipping. It's strange but justifies my
impatient behavior.

3) Store Experience

A good store experience is a must have for Ecommerce success. If your cart or design
sucks, nothing is going to help to convert better.

Make your store as much as user-friendly you can. Get a good design, speed-up the store
(1 second delay in site speed may decrease conversion rate by 7%), smooth the Cart and
get higher conversion rate. A good Ecommerce platform or software is a necessity.

Offer number of features but don’t confuse them with lot of options. Simplicity is also
necessary.

4) Customer Retention

A business is never going to be a success without the army of Loyal Customers.

Customer retention is helpful to get more sales and to build your brand. A loyal customer
not only buys from you but he also spreads the good words in his network.
Also you’ve to apply less effort to sell something to existing customers again. They’ve
already used the product and they won’t be affected by FUD (Fear, Uncertainty
and Doubts).

Simple advice, always be connected with your existing customers. Let them feel special.

Ask for regular advice (design or feature) using newsletters, blogs or surveys. Thus
they’ll be connected and feel like a part of the business and not only a proposition/asset.

5) Multi-Channel Marketing

There are opportunities lying everywhere in Internet. Some businesses are making
millions from Facebook. Some businesses are killing their competition with Search
Engine Marketing.

The mantra is to spread your reach everywhere. It’s not that hard with Internet.

Let me ask you something. How do you promote your business? What are the current
quality traffic sources? If you can only list 2 or 3 traffic sources, be ready for sudden loss.
If you’re totally depended on search engines, a negative change in ranking algorithm can
affect your whole business. If you rely on Ads for traffic, their policy change can bring
you to a danger situation.

An ideal marketing strategy should focus on no. of marketing channels. You can use
Email Marketing, SEM, Affiliate Marketing, Referral Marketing, Social Media and
offline campaigns to diversify your reach.

Differences between Online Retail & Traditional Retail Businesses

Often times, it is easy to overlook the differences between selling online through a
shopping cart and retail selling through a brick and mortar storefront. Online retail is
different from selling through a store in many ways and you should become familiar with
the differences so you can better understand the many benefits of selling online compared
to selling through a physical storefront. The obvious differences are the way the products
are displayed to customers and the way in which they enter your store to browse around.
Main Differences Between Online Retail & Physical Storefronts

• Display: By shopping at a brick and mortar store the customers are able to physically
touch and handle items they are interested in buying. Online retailers are forced to
display items using only pictures, graphics and text based product descriptions.

• Expense: Typically, there are major differences in the amount of funding or startup
capital needed to open the store. Brick and mortar stores usually require a bigger budget
since you have to lease space, rent property and pay for other location expenses. Online
store owners do not usually have to worry about building leases or property expense.

• Location: Online retailers are not limited to one location and have no geographical
boundaries like a traditional brick and mortar storefront has. Physical business locations
can limit the amount of customer traffic and foot traffic from shoppers, especially if they
are not in a bigger city or metro area. Online retailers have no limits and can typically
service local, national and international customers.

• Communication: It can be harder to communicate with customers through an online

store compared to the face-to-face interaction customers get by shopping at a brick and
mortar store or physical business location. Online retailers may have a hard time getting
information across to the customer and must be sure to answer all possible buyer
questions through text and graphics on the site so there is no confusion during the
purchase.

• Technology: Another main difference is the types and amount of technology needed to
run each type of business. Most online store owners find that their technology is
constantly changing and there is a bigger need for them to keep up and adjust as it
improves. The technology used to run brick and mortar businesses has been around for
years and rarely changes as often as it does in the online selling world.

E-Retailing Benefits Both Consumers and Marketers

Electronic retailing is a powerful marketing technique for the right product with the right
message to the right person. But what makes for the right combination? Why do consumers
respond to TV offers or shop online?

The short answer is that the consumer benefits. People respond to electronic retailing
messages because it is to their advantage to do so. It addresses their needs, either practical.

Electronic retailing, whether on TV or the Internet, is about motivation. How do you

influence someone to do something - to pick up the phone or log on to a Web site and then
make a purchase? Consumers will buy a product or service through an electronic retailing
campaign because they perceive its value or because it makes them look better or feel
better about themselves. They do this even though they cannot examine the product in
person and may have to wait four to six weeks to receive the product.

Convenience. For people who are pressed for time and do not enjoy shopping, an electronic
retailing product may take on added value because the buying transaction can be completed
without hassle, quickly and at hours when traditional retailing is unavailable.

Early access. While many electronic retailing products are available in retail stores at some
future date, the spot, infomercial or Web site offers the product now. An electronic retailing
campaign may be the only place where it is available immediately. If the product solves a
difficult problem or offers an important improvement, consumers who buy from the
electronic retailer can have the product in their hands sooner.

Innovative or unique products. Getting a new, innovative product to market through

traditional channels is expensive and time-consuming, and it requires some luck on the part
of the product's developer. Electronic retailing allows a product's developer to bypass this
process and sell directly to end-users. Consumers who see or hear an electronic retailing
campaign get access to products that may never show up in a retail store because the
developer lacked the resources to take on the massive retail industry.

Better salesmanship. Let's face it: Most products are not well-merchandised. Key sales
messages are poorly communicated or may be missing entirely. Electronic retailing often
overcomes these problems, because the medium itself - television or the Internet - allows
the person to be sold the product. They understand how it works and why. The benefits are
presented clearly and convincingly.

So what's in it for marketers? Perhaps the scales are tipped in favor of consumers,
particularly in today's e-commerce environment. But for a marketer with a new product,
electronic retailing can be a cost-effective method of testing a product's viability in the
marketplace. A successful electronic retailing campaign not only generates revenue but
also builds brand awareness and paves the way for broader distribution.

That's not to say that electronic retailing does not have its pitfalls. While the cost of entry is
low compared with the cost of mounting a traditional retail strategy, a poorly executed
electronic retailing campaign can cost hundreds of thousands of dollars. And once launch
ed, a product can be "knocked off" by an unscrupulous competitor.

For many marketers unfamiliar with electronic retailing and how it works, it is easy to hook
up with inexperienced partners and vendors that do not know how to develop .

Overall, though, the benefits outweigh the risks for many marketers. An electronic retailing
campaign is a low-overhead operation without the network of wholesalers and retailers
between the seller and the consumer. It is almost exclusively a cash business, in that
electronic retailing marketers do not have to extend credit to their buyers the way
traditional.

Most important is the control an electronic retailing campaign gives the seller. The timing
and terms of an offer, the price of a product and the content of the message all are under the
direct control of the marketer and can be adjusted quickly as conditions warrant.

The rapid growth of electronic retailing is a testament to a fundamental truth: People on

both sides of the equation benefit in tangible and meaningful ways. And that is a powerful
formula for success
How do the E -retailers like Flipkart, Amazon, Snapdeal, etc. work?

From placing an order online to delivery of the product to our doorsteps, how does the
whole chain of e-retailing work??

Here are the steps that are followed by Flipkart to fulfill orders placed on it's website –

1. Customer places an order online

2. The order comes and falls into the Inventory Management System

3. Flipkart's system is synced with the seller's Inventory Management System

(Example - Unicommerce)

4. The seller gets a notification that there is an order in the system that is not fulfilled
 5. A "Flipkart Serial Number" (FSN) is assigned to all SKUs that are live on the site.
These FSN numbers are mapped to the seller's unique code (printed on labels
present on the item) for each SKU (Done in Unicommerce).

6. Now, the guys at the warehouse are armed with a bar code scanner which they use
to outward the items

The items are packed as required and the Flipkart logistics team "ekart Logistics"
picks up the parcel from the warehouse for last mile delivery.

COMPANIES IN E-RETAILING:

FLIPKART.COM

Flipkart.com is the most popular of all Indian online shopping companies, offering
genuine products to people. They have huge stock of innumerable products like clothes,
music, electronics, books, health products, kid’s toys and accessories, perfumes, games,
movies, home appliances, shoes, stationeries and many more things.
The shopping website offers great advantage of faster product delivery and free shipping
on ordered products for more than Rs.500. Customers also enjoy the privilege of
exceptional services like payment on delivery or ‘cash on delivery’. They can also pay on
a monthly basis, as EMIs. In case any customer is not satisfied with the products, he or
she can even return them and get entire payment back. As one of the notable online
shopping companies in India,Flipkart also offers 30-day replacement policy. All types of
Visa and Master Debit or Credit cards are accepted to initiate the online transaction
system. Dedicated delivery partners of Flipkart take the responsibility for timely product
delivery at mentioned addresses.
 JABONG.COM

Jabong.com is certainly in the acclaimed list of online shopping websites in India. One of
the best customer support services I found in India. The online shopping website is highly
popular in offering best quality products of reputed brands. Customers can cater to a wide
variety of fashion apparel, footwear, accessories and even jewelries. They have huge
collection of all mentioned items for women, kids and men.
The online shopping website strives best to offer highest shopping satisfaction over the
internet to all customers from a wide region. They even use cutting-edge technology on
their online shopping platform to make it swift for surfing through various product pages.
In addition, highly experienced support team provides exclusive service for consumers
and tries to solve almost all problems, if any situation demands.
Jabong.com is one of the fastest growing online shopping portals offering reliable, trendy
and stylish products according to taste of reigning period and fashion concerns of people.
They are highly popular as an online shopping portal offering best prices with exclusive
discount offers.

MYNTRA.COM

A one-stop online shopping portal, myntra.com caters to fulfill all requirements

pertaining to lifestyle and fashion products. The company is counted in the list of online
shopping sites raging the country recently. They even offer variety of branded products
through the online shopping portal. They are primarily reasonable to make online
consumers conscious about brand value of different products of daily utility.
From its introduction into the online business world, myntra is dealing in exclusive
choices of accessories, footwear, cosmetics and apparel from more than 500 reputed
international and Indian brands. Notable among them are Biba, Adidas, Inc5, Puma,
Nike, United Colors of Benetton etc. The online shopping portal is reputed to offer more
than 3000 styles of products, fitting requirements of all valued consumers.
The customer support service and process of home delivery are one of the swiftest in the
business world. They are also one of the leading Indian online shopping
companies offering guaranteed 30-day free return of goods from doorsteps of consumers
in case of unsatisfactory service.

SNAPDEAL.COM

Snapdeal.com started their online business platform in 2010 under the leadership of Rohit
Bansal and Kunal Bahl. Presently, they are placed at favorable positions on the list of
online shopping sites in India. They offer widest range of products – lifestyle, fashion
apparel, accessories, electronics, games, eateries, chocolates, grooming, books etc., for
both men and women.
The online shopping platform has their service in more than 50 cities across India and
also has a record 15 million registered users in the country. The website features more
than 3000 brands – national, international and even less famous yet offering quality
products. The online store has more than 200 categories featuring more than 250000
products listed with them. More than 25000 products are sold every day.
Snapdeal has close ties with reputed courier services that help in faster home delivery
process. They even offer free return policy of products, if they fail to meet the
expectations of customers. Unlike other Indian online shopping companies, they
initiate complete refund and even additional courier charges that the consumer bears, if
any, while returning the products in an undamaged and unused condition.
 AMAZON.IN

Amazon is one of the most reputed name in the world of online shopping for products
like ebooks, electronics and others items. The Amazon India website and it services are
being tweaked for India and its hugely growing online shoppers. Amazon .in is operated
by Amazon Seller Services Private Ltd, an affiliate of Amazon.com, Inc. is a Fortune 500
company based in Seattle, that opened on the World Wide Web in July 1995; and today
offers Earth’s Biggest Selection.
They are committed to ensure 100% Purchase Protection for your shopping done on
Amazon in so that you can benefit from a safe and secure online ordering experience,
convenient electronic payments and cash on delivery, easy returns, Amazon’s customer
service with 24×7 support, and a globally recognized and comprehensive purchase
protection provided by Amazon’s A-to-Z Guarantee.
You can find this Fulfilled by Amazon badge on many product pages. This specifies that
the Orders are eligible for FREE Delivery and can be placed using Cash on Delivery. It is
being mentioned by Amazon India that the orders which contains products worth Rs 499
or more are only eligible for FREE delivery. In my opinion Amazon have introduced
almost all the practical, useful and cool facilities and features on its Indian counterpart. If
you have purchased from Amazon India, please share your experiences. You can also
share your feedback on the website.

EBAY.IN

The world’s largest shopping mall on the Internet. eBay is an online marketplace, where
individuals and businesses come together to buy and sell almost anything.
You can find everything on eBay. Mobile phones, digital cameras iPods, t-shirts, shoes,
candles, furniture, jewellery, watches, handicrafts, kurtas, laptops, perfumes, computers,
microwave ovens, toys, baby products, weighing scales, and much more. There are many
ways to buy, so you can choose the format that is best for you. Make an instant purchase
for products at a fixed price with Buy It Now button. Bid using the exciting auction-style
format at the price you are willing to pay. If you are the highest bidder you get the item at
your price. If you can’t find what you want, let sellers know – Post a Want It Now!
You can Buy and Sell with Confidence. eBay’s Feedback system is very popular.
Members rate each other based on their experience during a transaction. This is the
easiest way to check a member’s reputation before you trade with them. Using eBay’s
Buyer Protection Program, eBay covers your purchases up to Rs. 50000* (for PaisaPay
transactions and up to Rs. 10,000 for non-PaisaPay transactions. eBay’s Dispute
Resolution Center is also very well known. They can help you resolve any issues with
your trading partners.

NAAPTOL.COM

Naaptol.com is one of the fastest growing top ecommerce sites in India. The company
was founded on 2008 under Manu Agarwal. Initially the company served as a search
engine to provide comparison of product prices and offer services for product research. A
year later, they emerged to be an online marketing platform and were able to create a
furor in the market. With plenty of items in store, like cameras, tablets, home appliances,
mobiles and others Naaptol saw a whopping turnover of more than Rs.10 crore in 2009-
10.
One of the top ecommerce websites in India, Naaptol initiates faster delivery of all
ordered products. However they charge a small amount of shipping charges, based on the
distance the parcel is addressed. Naaptol also offers alluring points to online customers
on ordering different products, which can also be utilized to get attractive discounts at
a later stage. All products are genuine. Naaptol reserves the right to declare products
eligible for return and refund in case a dissatisfied consumer takes up the case with
customer representatives of the company over telephone within 2 days of receiving their
orders.
YEBHI.COM

Yebhi.com is a fast growing online shopping platform that started its business venture
since 2010. They are considered to be a premium online lifestyle shopping website that
powered sales of branded footwear over top online shopping sites in India. They
attained highest success in sales of other product categories varying from accessories,
jewelry, mobiles, bags and fashion apparels.
Yebhi.com runs their own operation of warehousing that helps in fulfilling orders
completely through fastest shipping service. They are the best company to offer exclusive
choices of products for a wide genre of consumers. They are an authentic company
offering online marketing service and even deal in products from leading brands directly.
They do not sell products that do not have brand authentication.

Yebhi.com is presently one of the top e-retailing websites in India offering authentic
and dedicated support service for valuable customers. They accept payment through
online transaction mode and even initiate effective home delivery service.

How does E-Retailing Work?

E-Commerce is driven by the software, so the exact way it works depends on the
shopping cart software you select. There are several components, however, that make up
any online shopping cart solution:

• Web Hosting – The foundation of a good online store is a good Web server to
host it on. Some shopping carts come packaged with a specific hosting provider or
 product. Others, such as ShopSite, can run on a variety of Web servers and are
offered by a wide range of Web hosting providers. Factors such as support,
reliability, bandwidth, features, and cost will drive your hosting provider
selection. You may already have a Web site through a provider you are happy
with where you can put your online store. If you're looking for someone to host
your online store, check out our ShopSite Hosting Partners.

• Merchant Interface – The merchant interface is the tool you use to manage your
online store. It's what you use to set up and use all the other tools. It's more
important to have a usable merchant interface than having a fancy-looking
complex interface. On the other hand, if your merchant interface is too simple,
you lose flexibility. A good merchant interface has to strike a balance between
these opposing requirements. ShopSite is an incredibly powerful and flexible
Shopping Cart, but the merchant interface is kept as simple and straight-forward
as possible. In addition, there are a variety of wizards and tools to optimize
common or complex tasks.

• Product Catalog – Your product catalog is what your customers see, and how
they find out about the products you're selling. It is the part of your online store
where you want to invest the majority of your time and effort. Just like a printed
catalog, your online catalog consists of products and pages. The pages create
the structure of the catalog, but they also establish the look of the catalog. The
pages are also one of the main ways you will present product information to your
customers. The way you design your pages and how you present your products
will have a significant impact on how potential customers perceive your store.
We'll discuss this in greater detail when we cover how to create a product catalog
in ShopSite later on.
• Shopping Cart – The shopping cart is what your customers will use to place
orders. Customers add the products they want to purchase to the cart, provide
information about shipping and payment, then submit the order. Like the product
catalog, how the shopping cart looks has an impact on customer perception. More
importantly, however, how your shopping cart works can make the difference
between an abandoned or completed sale. One of the biggest turn-offs for
potential customers comes from not knowing the final price until they've
completed several tedious forms. ShopSite prevents this by presenting the final
cost on the first Shopping Cart screen, after the customer provides only the
essential information for calculating shipping and tax rates. ShopSite also has a
number of other features to make completing an order as simple and straight-
forward as possible. This topic is covered in more detail in the taking orders in
ShopSite section of this tutorial.

• Payment Processing – Accepting payments is the backbone of any online store;

without it, customers can't place orders. If you have a brick-and-mortar store, you
probably already have a system for processing credit card payments. Online
payment processing is a similar process; customers enter payment information,
which gets forwarded to a payment gateway that validates the information and
confirms available funds, then transfers the funds to your merchant account.
There are many different payment gateway and merchant account providers, as
well as online payment services such as PayPal and Google Checkout. How to do
this will be covered in more detail in the accepting payments in ShopSite section
of this tutorial. You can also learn more about accepting payments online, as well
as what payment gateway and services are supported by ShopSite on the Payment
Processing in ShopSite page of our Web site.
• Shipping – Once you get an order, you need to gather the products, prepare them
for shipping, then send them to the customer. You will need to plan how you will
handle the various costs and effort this involves. It's common practice for online
merchants to pass this cost on to the customers — although offering free shipping
is great incentive to get customers to buy from you. There are also different
shipping services, such as next-day, second-day, and ground shipping, which you
may want to offer your customers. With all of this, your customers want to know
what their shipping costs will be before they place an order. ShopSite includes a
variety of options for providing real-time shipping cost calculations. You can read
about this in the taking orders in ShopSite section of this tutorial.

• Tax Calculation – Calculating, collecting, and paying appropriate sales tax is

another part of your online store that you need to consider. How you handle it
depends on the laws where your business is. In the United States, for example,
you are currently only required to collect sales tax for orders shipped within the
state your company operates from (your customers are responsible for paying
sales tax in their home state otherwise). In Europe, you are responsible for
collecting and paying Value Added Tax (VAT) based off your business location,
your customer's location, and the type of product you are selling. ShopSite
includes tools to automatically calculate and collect the taxes you are responsible
for. These are discussed in the taking orders in ShopSite section of this tutorial

• Advertising – Drawing customers to your Web site is a critical part of any online
store, and good shopping cart software includes features to help you with this
task. One key element of advertising an online store is making sure it shows up in
the popular search engines, such as Google, Ask, and Yahoo!. Another excellent
 advertising tool is E-mail marketing, particularly to customers who've bought
from you before. ShopSite includes a variety of tools to help you spread the word
about your online store. These are discussed in the getting customers in
ShopSite section of this tutorial.

PURCHASE CRITERIA

◆ Easy to navigate, clutter-free Almost all sites scored high on criteria like ‘easy to
navigate’ and ‘clutter-free, visually appealing layout of web pages’. These scores ranged
from 3.45 to 4.06 on a 5-point scale, indicating that browsing experience and visual
appeal of most sites were satisfactory.

◆ Search experience In case of ‘search experience’ covering ‘relevant People shop online
for convenience, range and availability of products, and lower prices. and easy-to-sort
results’ and ‘unbiased and independent results’, the ranking of most sites was quite high –
varying between 3.5 and 4.0 on a 5-point scale.

◆ Range and availability The same was the case with ‘range and availability of products’
options, with most sites scoring between 3.27 and 4.03 on a 5-point scale.
 ◆ Comprehensive information, comparison facility The rating of ‘comprehensive
information’ varied from 3.49 to 4.19, and the rating of ‘comparison facility’ ranged from
3.16 to 3.88.

◆ Terms and conditions Only 60 per cent of the respondents read terms and conditions
on websites. Of this 60 per cent, most have given high scores on ability to understand,
adequate disclosure and customer friendliness. This shows that terms and condition by
websites are in line with consumer expectations.

Smart and comprehensive recommendation and personalisation

Pertimm e-Commerce gives you the tools to adapt and personalise search queries
according to your objectives and sales strategy, moving from big-picture trends and
general visitor preferences to an individual experience.

• Provide a perfectly ordered list of results according to a customer's preferences.

• Offer products that are similar and relevant.
• Offer products popular with other buyers.
• Offer related products or accessories.

Identify consumer trends and personalise your customers' shopping experience

Your visitors' browsing behaviour reveals their interest in certain products and highlights
connections between these products. Making smart use of these data identifies trends that
your marketing team can integrate in its strategy (by giving them greater or lesser
prominence).

Personalisation a major means of increasing your market share "Over 92% of retailers
think that personalisation is an effective means of improving conversion rates" (Altics
2013)
Place the visitor at the centre of your sales strategy in real time

Contrary to a bricks-and-mortar store, online visitors are unable to view all of the
products available in your catalogue at once. All the more reason to offer items that are
most likely to appeal to them from the start.

Pertimm e-Commerce steers your customers according to their preferences. Their

shopping carts and site navigation, in your sales structure, comprise information that our
algorithms integrate and process to put forward personalized product offerings.
 CHAPTER 5

CONCLUSION
&
SUGGESTION

CONCLUSION

• E-retailing help us to conclude that e-retailing bring advancement in India.

 • It also help us to increase the sales for manufacturer by direct dealing from
customers.

• We can also conclude advantages and disadvantages in E-Retailing .

• We can also learn the advancement of e-retailing in India

The internet has created a new avenue for organizations to leverage technology to create
new revenue streams, lower the cost of doing business, improve customer satisfaction,
and attract new customers. Objectives such as these often compel managers to collect
large amounts of customer information to aid in their strategic decision making
processes. Increasingly, consumers are concerned that their information will be disclosed
to third parties or used for purposes other than those for which it was collected.
Consumer concerns have only heightened as media coverage of consumer privacy issues
has increased over the past decade.
The research was conducted to have a perceptual study of privacy issues in E
retailing. On the basis of review of literature questionnaire was developed for the
collection of primary data. This research contributes to the emerging body of research on
privacy issues to address consumer privacy concerns involved in online transactions.
Privacy issues are very important from the point of view of customers as well as
marketer. The growth of business to consumer electronic commerce seems to be non-
stoppable. Yet, online shopping accounts very much less as compared to overall retail
revenues. For the future growth electronic marketing, barriers such as security and
privacy concerns must be torn down. The best way to get over barriers is to clearly
understand how they work and why they exist.

SUGGESTION
1. E-retailing need to manage perceptions of privacy regulation. Policy efforts to
improve privacy protection should be clearly communicated to the customers.
2. Managers should look carefully at the concept of information transparency and its
relevant items.
3. Online marketers should provide sufficient privacy policy statements in a
prominent place on the website.
4. Privacy policy should include information about what kind of information the
company is collecting in the databases, how long they keep this information etc.
5. Managers should also consider using multiple strategies to suit various audiences
with different levels of privacy concerns.
6. The company could offer assessments of risk in clear and simple terms, provide
evidence of past performance in terms of security and predictability, include
indicators of credentials or competence, and display customer feedback and/or
testimonials.
7. It is important to offer easy ways to give control to users, which increases the
likelihood that the individual will provide the information needed for
personalization.
8. It is suggested to improve and develop the legal and other measures to protect the
consumers’ privacy
BIBLOGRAPHY

BIBLOGRAPHY
WEBSITES:-
www.eretailing.com
www.investopedia.com
www.techopedia.com
www.maaniecnology.com
www.wikipedia.com

JOURNALS:-

1. Brown, Muchira (2004). “Investigating the Relationship between Internet Privacy

Concerns and Online Purchase Behavior”, Journal of Electronic Commerce
Researcs, Volume 5, Issue 1, Pt. 62-70

2. Peterson, R.A., Balasubramanian, S. and Bronnenberg, B.J. (1997), “Exploring

the Implications of the Internet for Consumer Marketing”, Journal of the
Academy of Marketing Science, Vol. 25, No. 4, pt. 329-46.

3. Sheehan, K. B., & Hoy, M. G. (1999). “Flaming, Complaining, Abstaining: How

online users respond to privacy concerns.” Journal of Advertising, 28 (Fall), pt.
37–51.

4. Garbarino, E., Johnson, M., 1999. “The different roles of satisfaction, trust and
commitment in customer relations”, Journal of Marketing, Vol 63 (2), pt 70–87.

5. Cheung, C.M.K., Lee, M.K.O., 2001. “Trust in internet shopping: instrument

development and validation through classical and modern approaches”, Journal
of Global Information Management, vol 9 (3), pt. 23–46.

NEWSPAPERS:-
 1. The times of India
2. Economic times

BOOKS:-
1. Savino, William M., “Protecting Online Privacy”, Marketing Management, Vol.
11, No. : 49-51, 2002