EVOLUTION OF ONLINE MEGASTORES IN INDIA

PRESENTERSSr. No.

Roll No.

Presenter's Name

1. 1 Aayushi Patil2. 51 Kanchi Talreja3. 39 Darshana Pise4. 19 Pooja Jangra5. 29 Vincy Nadar6. 35 Manju Parihar

Submitted to : Prof. Payal Madhok

INTRODUCTION• eCommerce: It generally means

commercial transactions conducted electronically on the internet.• e-tail is also sometimes used in

reference to transactional processes around online retail.• Indian eCommerce industry is still at its

infancy. However, over the past years, the sector has grown almost by 35% CAGR from 3.8 billion USD in 2009 to 12.6 billion USD in 2013.

2013

2009

HISTORY OF ECOMMERCE IN INDIA

1991 : Introduction to eCommerce

2015 : The Current Scenario2007 : Introduction to low cost airline with Air

Deccan

2003 : The deep discounted model of Flipkart 2002 : IRCTC teaches India to book online

ticket

TYPES OF ECOMMERCE

BUSINESS-TO-BUSINESS (B2B)

CONSUMER-TO-CONSUMER (C2C)

BUSINESS-TO-CONSUMER (B2C)

Mobile Commerce (m-commerce)

WILL M-COMMERCE OVERTAKE ECOMMERCE IN THE NEAR FUTURE?

• In 2013, only 10% of the mobile users used

Smartphones, and only 5% of the eCommerce

transactions were made through a mobiledevice.

• This figure has more than doubled, andmore than 13% of all eCommerce transactionstoday happen via mobile.

HOW DO ONLINE STORES WORK?

To understand the way the online stores work, first we need to understand the way the conventional model works :

CONVENTIONAL MODEL OF COMMERCE

E-TAIL MODEL

TRADITIONAL COMMERCE V/S ECOMMERCE

Traditional Commerce Basis eCommerce

Face to Face INTERACTION Via Customer Care Call

Higher Cost due to physical location COSTS Cheaper than a conventional

store

Limited to Geographical Area REACH World wide reach

Low as the product can be felt physically RATE OF SALES RETURN Higher as customer can’t try

the product

Credit facility & Cash on transaction PAYMENT OPTIONS Credit & Debit card, CoD,

e-wallet, Net Banking

BARRIERS TO ECOMMERCE INDUSTRYCommon

Mentality

Lack of Proper Infrastructure

International Competition

Lack of Proper Law & Order

Internet Penetration

INFRASTRUCTURAL REQUIREMENTS

• Internet Infrastructure• Logistics• Proper Legal Infrastructure• Cyber Security• Payment Gateway• Price Comparison Engine

LOGISTICS FUNCTION• Firms cannot compete

solely based on sheervolumes in today’s ever-

evolving, information symmetric and globalised

world of e-commerce. Instead, the realm of competition

has shifted to delivering to ever-shortening delivery timelines, both

consistently and predictably.

Negligible or zero delivery prices, doorstep delivery, traceability solutions and convenient reverse logistics have become the most important elements of differentiation for providers.

INNOVATION BY AMAZONAmazon PrimeAir : •Futuristic Drone-based delivery system introduced by Jeff Bezos for his company Amazon•It’s technically Miniature UAV.•It’s function is to deliver individual packages to customer’s doorstep in less than 30 minutes by using GPS.

Limitations of the model:1. The order should be small

enough to fit in the storage box.

2. The order must be less than 2.26 kgs.

3. The delivery address should be within ten miles radius from the warehouse.

THE VIRTUAL WALL

INDIA'S GROWTH POTENTIAL

Some Figures to watch on

INDIAN GOVERNMENT’S STEP TOWARDS ECOMMERCE

India Post: Government is keen on developing India Post as a revenue model to rely on. This development was a result of the time when India Post transacted a business worth ₹280 Crores INR in the cash on delivery (CoD) segment with Flipkart, Snapdeal and Amazon

Digital India Project: This project aims to offer a one-stop shop for government services that will have the mobile phone as the backbone of its delivery mechanism. The program will give a boost to ecommerce industry as bringing internet connectivity to remote areas will strengthen the reach & delivery to such areas.

ECOMMERCE ECOSYSTEM

• Online travel, ticketing, etc.Ticketing for air, rail, bus, movies, events• Online retailRetail products sold through online route• Online marketplacePlatform where sellers and buyers transact online• Online dealsDeals purchased online• Online portals classifiedIncludes car, job, property and matrimonial portals

ECOMMERCE WEBSITES

Flipkart V/S Amazon

Foundation & Headquarters

Sachin Bansal

Jeff Bezos

Headquarters

Bangalore, Karnataka Seattle, Washington

Product Basket

Alexa Rank

Considered among Top 30 eCommerce Websites 6th Rank in eCommerce

sites across the world

Area Covered

CONCLUSIONEmergence of new technologies, especially mobile, in India has sparked a social change that’s difficult to quantify. While mobile, internet, and social media penetration and growth can be quantified, describing the changes in social values and lifestyles that have accompanied those trends is far more challenging.

New technologies such as virtual walls and virtual mirrors will furtherhelp improve the retail customer experience, thereby encouraginggreater consumption.