A PROJECT REPORT

ON

"COMPARITIVE STUDY BETWEEN FLIPKART AND AMAZON

INDIA"
Submitted in partial fulfillment of the requirements
of the degree of
BACHELOR OF BUSINESS ADMINISTRATION (BBA)

SESSION(2022-2023)

SUBMITTED TO: SUBMITTED BY:

CONTROLLER OF EXAMINATION GUNJAN

M.D.UNIVERSITY , ROHTAK REG. NO.

191130372

ROLL NO.

D.A.V/INSTITUTE OF MANAGEMENT

NH-3 N.I.T FARIDABAD

 TABLE OF CONTENT

1. INTRODUCTION

2. REVIEW OF LITERATURE

3. RESEARCH METHOLOGY

4. DATA ANALYSIS AND INTERPRETATION

5. FINDING SUGGESTION AND CONCLUSION

6. ANNEXURE

 BIBLIOGRAPHY
 QUESTIONAIRE
 DECLARATION

I declare that this written submission represents my ideas in my own words and where
others' ideas or words have been included, I have adequately cited and referenced the
original sources. I also declare that I have adhered to all principles of academic honesty and
integrity and have not misrepresented or fabricated or falsified any idea / data / fact / source
in my submission. I understand that any violation of the above will be cause for disciplinary
action by the Institute and can also evoke penal action from the sources which have thus not
been properly cited or from whom proper permission has not been taken when needed.

Place:
Date: Signature of the Student

( GUNJ
AN)
 ACKNOWLEDGEMENT

I hereby take this opportunity to express my sincere gratitude to the following

eminent personalities who supported me to complete this project work successfully without
any difficulty.
I am indebted to DR. ANJALI AHUJA OF DAV INSTITUTE OF
MANAGEMENT , for his expertise guidance and valuable suggestions which enable me to
submit this project report.

Finally, I would like to thank one and all who have helped me directly or indirectly in
preparing this report.

NAME:- GUNJAN

REG. NO:- (191130372)

ROLL NO:-
INTRODUCTION TO THE STUDY
 INTRODUCTION

INTERNET became more powerful and basic tools for every person's need and the way people
work by integrating various online management tools using internet, innovative companies have set
up the payment system for taking customer orders, facilitate making of payments, customer service,
collection of marketing data, and online feedback respectively. These activities have collectively
known as ecommerce or Internet commerce. Online shopping made so easy for everyone with their
product variations and simple way to buy things. An attempt has been made to critically examine
various corporate and business level strategies of two big e-trailers and those are Flip kart and
Amazon. Comparison have been done considering e-commerce challenges, their business model,
funding, revenue generation, growth, survival strategies, Shoppers’ online shopping experience,
value added differentiation, and product offerings. Both these big players made their own mark in
India, but who is going to be ultimate winner or be the top one is going to be. A comparative study
of Flipkart.com with one of the close competitor Amazon.com delivers the information about the
different strategies to succeed in e-commerce market and different opportunities available in India.
E-COMMERCE IN INDIA

India had an internet user base of about 354 million as of June 2015 and is expected to cross 500
million in 2016. Despite being the second-largest user base in world, only behind china (650
million, 48% of population), the penetration of e-commerce is low compared to markets like
the united states (266 million, 84%), or France (54 m, 81%), but is growing at an unprecedented
rate, adding around 6 million new entrants every month. The industry consensus is that growth is
at an inflection point. In India, cash on delivery is the most preferred payment method,
accumulating 75% of the e-retail activities. Demand for international consumer products
(including long-tail items) is growing much faster than in-country supply from authorized
distributors and e-commerce offerings. Largest e-commerce companies in India
are Flip kart, Snap deal, Amazon India, paytm.
 Market size

India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion in
2013. In 2013, the e-retail segment was worth us$2.3 billion. About 70% of India’s e-commerce
market is travel related. According to google India, there were 35 million online shoppers in
India in 2014 q1 and is expected to cross 100 million mark by end of year 2016. Cagr vis-à-vis a
global growth rate of 8–10%. Electronics and apparel are the biggest categories in terms of sales.
By 2020, India is expected to generate $100 billion online retail revenue out of which $35 billion
will be through fashion e-commerce. Online apparel sales are set to grow four times in coming
years.

FLIPKART

Flip kart has launched its own product range under the name “dig flip”, Flip kart also recently
launched its own range of personal healthcare and home appliances under the brand “citron”.
During its initial years, Flip kart focused only on books, and soon as it expanded, it started
offering other products like electronic goods, air conditioners, air coolers, stationery supplies and
life style products and e-books. Legally, Flip kart is not an Indian company since it is registered
in Singapore and majority of its shareholders are foreigners. Because foreign companies are not
allowed to do multi-brand e-retailing in India, Flip kart sells goods in India through a company
called vs retail. Other third-party sellers or companies can also sell goods through the Flip kart
platform. Flip kart now employs more than 15000 people. Flip kart allows payment methods
such as cash on delivery, credit or debit card transactions, net banking, e-gift voucher and card
swipe on delivery. Flip kart is presently one of the largest online retailers in India, present across
more than 14 product categories & with a reach in around 150 cities and delivering 5 million
shipments per month.

EXCLUSIVE PRODUCTS

Motorola mobility, previously owned by google but then sold to Lenovo, in an exclusive tie up
with Flip kart launched its budget smartphone motto g in India on 5 February 2014 more than
20,000 units were sold within hours of launch on Flip kart after this Flip kart was looking for a
long term tie up with Motorola mobility. They also launched their android smartphone, the motto
x, on 19 march 2014. Flip kart later sold the motto e, cheaper than motto g, from 13 may 2014.
The sale of high-end smartphone xiaomi mi3 produced by xiaomi tech was launched in India on
an exclusive tie-up with Flip kart. The first batch was sold out within 39 minutes on 22 July
2014, the second in 5 seconds on 29 July 2014. The sale was proceeded on pre-registration mode
where more than 150,000 buyers booked for the 5 august 2014 sale. This got sold off in less than
2 seconds. Following this xiaomi tech sold 20,000 units in the next sale on 12 august 2014.

On 2 September 2014 Flip kart held a flash sale of the xiaomi Redmi 1s budget android
smartphone which was launched in India in July 2014. 40, 000 units priced at Rs 5999 each were
sold within seconds. A further 40,000 units were sold within 4.5 seconds on sept 9, 2014. The
third REDMI 1s sale on sept 16, 2014 sold 40,000 units in 3.4 seconds; in the 4th round of sale of
REDMI 1s, 60,000 units sold in 5.2 seconds on sept 23, 2014. On 30 September 2014 60,000
units sold in 13.9 seconds. Redmi note in India exclusively through Flip kart; 50,000 units sold in
6 seconds on 2 December 2014. In July 2014 Flip kart launched its own set of tablet, mobile
phones & phablet. The first among these series of tablet phones was dig flip pro 712 tablet. In
July 2014 Flip kart launched its first networking router, under its own brand name named dig flip
wr001 300 bit/s wireless n router. In September 2014 Flip kart launched its in-house home
appliances and personal healthcare brand citron. The label includes a wide range of cooking
utilities and grooming products.

ACHIEVEMENTS IN E- COMMERCE

In September 2015, SACHIN BANSAL and BINNY BANSAL entered Forbes India rich list
debuting at the 86th position with a net worth of $1.3 billion each. Co-founder of Flip kart,
SACHIN BANSAL, got entrepreneur of the year award 2012-2013 from economic times, leading
Indian economic daily. Flipkart.com was awarded young Turk of the year at cubic TV 18's 'India
business leader awards 2012' . Flipkart.com- got nominated for INDIAMART leaders of
tomorrow awards 2011.

FAILURE IN MUSIC INDUSTRY

In October and November 2011, Flip kart acquired the websites mime360.com and chakpak.com.
Later, in February 2012, the company revealed its new FLYTE digital music store. Flyte, a legal
music download service in the vein of iTunes and Amazon.com, offered drm-free mp3
downloads. But it was shut down on 17 June 2013 as paid song downloads did not get popular in
India due to the advent of free music streaming sites.

ACQUISITIONS

• 2010: we read, a social book discovery tool.

• 2011: mime360, a digital content platform company.
• 2011: chakpak.com, a Bollywood news site that offers updates, news, photos and videos.
Flip kart acquired the rights to champak’s digital catalogue which includes 40,000
filmographies, 10,000 movies and close to 50,000 ratings. Flip kart has categorically said
that it will not be involved with the original site and will not use the brand name.

• 2012: letsbuy.com, an Indian e-retailer in electronics. Flip kart has bought the company
for an estimated us$25 million. Letsbuy.com was closed down and all traffic to lets buy
has been diverted to Flip kart.
• 2014: acquired myntra.com in an estimated ₹ 20 billion (2,000 crore, about us$319
million) deal.
• 2015: Flip kart acquired a mobile marketing start-up APPITERATE as to strengthen its
mobile platform.

 AMAZON

Amazon is the largest internet based company in the united states. Amazon.com started as an
online bookstore, but soon diversified, selling DVDS, vhss, cds, video and
mp3downloads/streaming, software, video games, electronics, apparel, furniture, food, toys, and
jewelers. The company also produces consumer electronics notably, kindle, fire tablets, fire tv
and phone and is a major provider of cloud computing services.
Amazon has separate retail websites for united states, united kingdom & Ireland, France, Canada,
Germany, the Netherlands, Italy, Spain, Australia, brazil, japan, china, India and Mexico, with
sites for SRILANKA and south east Asian countries coming soon. Amazon also offers
international shipping to certain other countries for some of its products. In the year 2011, it had
professed an intention to launch its websites in Poland, and Sweden. In early June 2013,
Amazon.com had launched their Amazon India marketplace without any marketing campaigns.
In July, 2013, Amazon had announced to invest $2 billion (Rs 12,000 crores) in India to expand
business, after its largest Indian rival Flipchart too had announced to invest$1 billion.
EXCLUSIVE PRODUCTS

The Amazon kindle is a series of e-readers designed and marketed by Amazon.com. Amazon
kindle devices enable users to browse, buy, download and read e-books, newspapers, magazines
and other digital media via wireless networking to the kindle store. The hardware platform,
developed by Amazon subsidiary lab126, began as a single device and now comprises a range of
devices, including e-readers with e ink electronic paper displays, and android-based tablets with
color lcd screens. All kindle devices integrate with the kindle store to acquire content and as of
February 2016, the store has over 4.3 million e-books available in the us. The one plus one
launched as an Amazon exclusive in India last year, but now the device is available for purchase
on rival e-commerce store Flip Kart. Moto g (gen 4) and motto g plus (gen 4) will be available
exclusively on Amazon.

ACHIEVEMENTS IN E- COMMERCE

On the mobile app side, Amazon had the fastest growing app download rate in 2015. In October
alone, downloads increased 200 per cent. Amazon web traffic was the highest in October as per
comes core data, at 30 million visitors. Amazon active customers have gone up 230 per cent year
on year. The awards were conferred at retailing India's flagship conference and exhibition 2014,
an event that brought together major stakeholders in the retail and e-commerce business in the
country. The "path-breaking debut of the year" award went to Amazon...
 FAILURE

Amazon starts using India post and screws up its delivery system in India. At the time when the
competition among online shopping portals in India is at its highest level possible and each
player is pooling in millions from funding’s and trying to beat each other with never-before
discounts and amazing services, Amazon has taken the worst step ever possible. Amazon India
has chosen India post as its primary delivery partner and all “Amazon fulfilled” orders are now
being shipped through India post. Anyone who lives in India or has some experience with the
postal system in India needs no introduction about India post.
ACQUISITIONS

It’s no secret that e-commerce giant Amazon has been betting on India as one of its next big
markets outside the U.S. The company is not only investing capital in the region, but also
acquiring startups to help expand its presence in the country. On Tuesday, Amazon announced it
had acquired Indian payments company advantage payments PVT. Ltd. Amazon did not disclose
the acquisition amount. Similar to stripe or PayPal, advantage allows online merchants to accept
credit and debit cards. The company also allowed merchants to set up their own branded pre-paid
debit cards and mobile payments. In order to differentiate itself, company acquired many it & e-
commerce start-ups like pets.com, audible.com, junglee.com, imbd.com, zappos.com, woot etc
MAJOR PLAYERS IN E-COMMERCE INDUSTRY :-
OBJECTIVES OF THE STUDY:-

 To understand and estimate the consumer perception and factors affecting their
behavior for choosing e-commerce sites.

 To understand tactics and methods that are used by e-commerce players to grab the
customers in India.

 To know how consumers are evaluating e-commerce sites for their purchases.

 To understand the work flow of Amazon and Flipkart which are leading in India.

 To study complexities and barriers those are there in between e-commerce sites and
customers.

 To find out new opportunities and to succeed in those procedures.

REVIEW OF
LITERATURE

LITERATURE REVIEW
Sharma and Mittal (2009) in their study “prospects of e-commerce in India”, mentions
that India is showing tremendous growth in the e-commerce. Undoubtedly, with the middle
class of 288 million people, online shopping shows unlimited potential in India. The real
estate costs are touching the sky. Today e-commerce has become an integral part of our daily
life. There are websites providing any number of goods and services. The e-commerce portals
provide goods and services in a variety of categories. To name a few: apparel and accessories
for men and women, health and beauty products, books and magazines, computers and
peripherals, vehicles, software, consumer electronics, household appliances, jewelry, audio,
video, entertainment, goods, gift articles, real estate and services. Ashish gupta, senior
managing director of hellion venture partners and one of the first backers of flip kart as an
angel investor: “flip kart has been absorbing companies that have some potential (lets buy,
myntra). In that process, some of the bets will go wrong, for sure. But that is par for the
course. The company (flip kart) is consciously taking bets that allow it to either grow or
eliminate competition that reduces marketing spend and improves economics.”

Miyazaki and Fernandez (2001) substantiated that the prior experience was found to affect
the intention and behavior significantly and in a variety of ways. The results of this study
imply that the technology acceptance model should be applied to electronic commerce
research with caution. In order to develop a successful and profitable web shop,
understanding customers' needs is essential. It has to be ensured that products are as cheap in
a web shop as purchased from traditional channels. According to Sharma and Mittal (2009) in
their study “prospects of e- commerce in India”, mentions that India is showing tremendous
growth in the e-commerce.

Undoubtedly, with the middle class of 288 million people, online shopping shows unlimited
potential in India. The real estate costs are touching the sky. Today e-commerce has become
an integral part of our daily life. There are websites providing any number of goods and
services.

The e-commerce portals provide goods and services in a variety of categories. To name a few:
apparel and accessories for men and women, health and beauty products, books and
magazines, computers and peripherals, vehicles, software, consumer electronics, household
appliances, jewelry, audio, video, entertainment, goods, gift articles, real estate and services.
Samadhi and (2010) compared the perceived risk level between internet and store shopping,
and revisit the relationships among past positive experience, perceived risk level, and future
purchase intention within the internet shopping environment.

ABHIJIT MITRA. (2013), “e-commerce in India-a review”, international journal of

marketing, financial services & management research. Concluded that the e-commerce has
broken the geographical limitations and it is a revolution-commerce will improve
tremendously in next five years in India.

D.K.GANGESHWAR. (2013),” e-commerce or internet marketing: a business review

from Indian context”, international journal of u- and e- service, science and technology.
Concluded that the e- commerce has a very bright future in India although security, privacy
and dependency on technology are some of the drawbacks of e-commerce but still there is a
bright future to e- commerce.

Martin dodge. (1999),”finding the source of Amazon.com: examining the hype of the earth’s
biggest book store”, center for advanced spatial analysis. Concluded that Amazon.com has
been one of the most promising e-commerce companies and has grown rapidly by providing
quality service.
VIJAY GOVINDARAJAN is one of the world’s leading experts on strategy and innovation.
GOVINDARAJAN, coxe distinguished professor at Dartmouth college’s tuck school of
business and Marvin bower fellow at Harvard business school, is also a best-selling author.
The biggest opportunity in India is e-commerce. Why? Three important factors will drive this:
1) mobile phone penetration; 2) a young demographic that is used to ordering things using the
mobile platform; 3) growth of consumerism with more Indians with higher disposable
income. We will see many new innovative business models in the e-commerce space in the
next five years. No doubt we will see new innovative high-growth companies—Indian
equivalents of ALIBABA.
Speed of delivery is as important as the product quality for a customer. It would
not be wrong to say that logistics could be the defining factor for success of e-commerce
companies in retaining their customers. Indian logistics market itself is estimated to grow at a
cagr of 12.17 per cent by 2020. Innovations are very important in this sector, as the demand is
always for more reach and faster shipping at lower costs. Yet, the companies will need to invest
in automation, while utilizing existing resources well.

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VEHICLE TRACKING CRUCIAL IN E-COMMERCE

Vehicle tracking plays a significant role in providing necessary control and effective route
planning for faster delivery. Since the logistics market is highly unorganized in India, under-
utilization of resources is not surprising. Increasing adoption of technology in operations is
essential to keep up customer satisfaction. Amazon added that fast, reliable and resourceful
internet connectivity across devices will help us use technology better for vehicle tracking.

flip kart benefited by its investment in blackbuck in capturing data on vehicular movement and
utilization, and utilizing the data for better planning. “the efficiency improvement on
information gathering and orchestration is a primary focus area for us in the next year as well”.
Logistics solutions provider login next–which caters to paytm, myntra and Amazon among
others– even, provides ‘heat maps’ for giving information on those areas where maximum delays
are happening. Login next working with cold chain logistics service providers for delivering
perishables. Our scheduler takes input from the system about the products being transported and
accordingly schedules the deliveries. Also, the temperature and other settings required for a
particular product could be set via their app used by delivery boys.

 FLIPKART

1. Delivery within two days: the first few e-commerce web sites broke the trust of
many Indian customers by not delivering the order product on time. flip kart realized
this problem and in order to bring the customer back to on line shopping it came up
with idea of delivering the product in 2 days and if there is a delay then the customer is
paid interest on the value of product.

2. Thirty days return policy: in order to satisfy the Indian customer after the product is
delivered, flip kart came up with idea of providing thirty day return policy. This is done
to ensure that the product delivered to the customer is not faulty.
3. Card swipe on delivery: flip kart realized that most of Indian customers are not
comfortable sharing their credit card details online, as there is always a risk of fraud. For
solving this problem it came up with the idea of card swipe on delivery. The delivery guy
brings the card swipe machine so that all the transaction happens before customer.
 DATA ANALYSIS AND
INTERPRETATION

COMPARATIVE STUDY OF FLIPKART AND AMAZON

LOGISTICS PARTNER
E-kart provides logistic solutions for Indian e-commerce giant flip kart. flip kart today is 3
companies: Vs retail, which is the primary retailer on Flipkart.com, ekart logistics, the shipping

partner for vs retail and others, and flip kart itself, which builds, maintains and runs the
marketplace. flip kart tied up with partner stores that act as alternative delivery channels (such as
e com express, blue dart, gate etc.), so that customers can pick up their shipments at their
convenience. “by bringing together core capabilities of iota, devices, data and automation, we
have started implementing the automation technology to pick and move packages to designated
picking station, among several other applications that make warehouse processes quicker and
smoother.

PROCEDURE

flip kart team will map their supply chain end to end and know exactly how many hours and
minutes would it take for the item to reach from one step to next. E.g. How long would it take to
pick an item in our fulfillment Centre (fc), how much time would it take to pack it and finally
how soon can them handover to the logistics partners for transport? Then they proceeded to do a
thorough analysis and optimization to achieve the best-possible timelines for each step. In
logistics, they needed to know the exact transport connection timings with their transport time
and reliability. They had to work closely with vendors/airlines to ensure reliable connection
and delivery of in-a-day packages without any offloading. In fact, there were some airline
partners which were piloting their express delivery capabilities along with their pilot for in-a-
day. Airlines were even helping our partners grow. In the last mile logistics, they had to ensure
that the delivery is attempted within the promised time without fail and had dedicated field
executives to guarantee the delivery.

TECHNOLOGY USED
 To promise in-a-day guarantee to the customers, flip kart developed a new
product called promise engine. This engine knew all about our fulfillment capabilities and thus
exactly where the item would be shipped from (depending on seller's inventory
location). Hence, it could calculate an accurate promise date for the customer. This engine also
needed to be able to provide multiple delivery speed options to customers to choose from. Once
an order is placed, the fulfillment system gave an exact hour and minute’s deadline to fcs to
process the item. This deadline also accounts for the transport connection between the source and
the destination. The deadline feature helps us to ensure seamless processing of both in-a-day and
regular orders. flip kart claims that its algorithm on routing makes delivery and pick-up more
accurate and faster than anyone else in this business. Flip kart’s investment in make my India has
helped the company too. E kart spokesperson said: “the accurate address data for both sellers and
buyers will allow us to better schedule deliveries and pickups.”

 AMAZON
Amazon India, the company received 65 per cent orders from tier ii and iii cities in 2015. To
establish rural distribution centers in rural India, Amazon has been training teams in packaging,
checking shipments, tracking deliveries through a mobile app, route planning to make deliveries
on time etc. Many of these centers have witnessed a five-fold increase in the number of
deliveries. Amazon has a ‘service partner’ programed too for last-mile delivery in remote areas.
“budding entrepreneurs in these areas act as Amazon. In’s local distribution network providers
and create the last-mile delivery footprint. This program now covers more than 100 satellite
towns and tier ii and iii towns and villages.

LOGISTIC PARTNER

Cloud tail India PVT. Ltd, a joint venture between Amazon.com inc And . Narayana mirth’s
catamaran ventures, has become the biggest seller or merchant on Amazon India’s platform,
underlining how the world’s largest online retailer has used loopholes in the law to deploy a mix
of the marketplace and the direct-selling business model in India. Cloud tail is now the key
growth driver for Amazon India, generating at least 40% of the company’s sales in some months,
three people familiar with the matter said. Cloud tail is particularly dominant in electronics and
fashion sales, two of the three largest categories for Amazon India (promoted by Amazon seller
services PVT. Ltd). Since it launched as a seller on Amazon in July 2014, cloud tail has
expanded aggressively. Its capital was increased to rs.500 crore last month from just rs.500, 000
last July, according to documents available with the registrar of companies (roc). The equity
capital has been pumped in jointly by Amazon Asia and catamaran through an entity called
prions business services PVT. Ltd. Apart from the rs.500 crore in equity capital, cloud tail has
access to secured loans totaling rs.300 crore, roc documents show. ATSL will be one of the
logistics partners for Amazon's Indian marketplace.

PROCEDURE

Amazon has set up a logistics company in India to deliver products directly to consumers,
opening a new front in the battle for top honors in the country's fast-growing online retail
industry. Amazon transportation services private limited, a subsidiary of us-based Amazon, will
ship goods from sellers who transact on the company's online marketplace in India. Such a
service is already on offer from flip kart through logistics company EKART, and snap deal,
which bought a stake in delivery firm go javas last week. The logistics arm has been set up to aid
in last- mile delivery as products can be shipped faster. Amazon currently operates nine
fulfilment Centre’s, ecommerce jargon for warehouses, in eight Indian states. It was the first
online marketplace to offer two-day and one-day guaranteed delivery in India, a norm in the us
market. Amazon India also recently launched easy ship, an assisted shipping platform for 12,000
out of its 20,000 sellers, a platform which the company has now taken global. With easy ship, our
sellers can now choose their courier partners, and ship even on the same day. More than 60% of
our customers are eligible for next-day shipping on products fulfilled by Amazon. Amazon has
struggled with deliveries in cities where snarl-ups are frequent and road signs unreliable. In
response, firms have set up logistics networks and use motorbikes instead of trucks. Another
service introduced in India in may and considered for export to other markets, seller flex, allows
sellers to have the flexibility to store goods and ship them to customers on their own, instead of
routing them through Amazon. Amazon provides technology and training to ensure goods are
packed, labelled and delivered as the company would. While Amazon in developed markets may
not want to tweak its model for best selling goods, analysts said, it could consider the made-in-
India seller solution to cut down on warehousing and delivery costs for thousands of “non-core”
products which are offered, but infrequently bought. “Amazon is becoming a lot more flexible
about how it services its customers.
TECHNOLOGY USED
Amazon.com in said it has acquired Indian payments processor advantage payments PVT ltd for
an undisclosed sum. Advantage’s employees will join Amazon's India unit that will use the
company's technology on its e-commerce website, Amazon said in a statement. Online retailer
Amazon.com in. Is localizing its technology operations in India by freeing up its engineers to
launch new features and customize its smartphone app for shoppers. These changes have
significantly improved both the company’s user addition and retention rates. More shoppers
installed Amazon India’s smartphone app than any rival’s app in the last three months of 2015,
the online retailer said, citing data compiled by app Annie, an analytics company. Downloads of
Amazon India’s shopping app tripled in the key shopping month of October compared with the
year-ago period. These numbers are significant as a majority of online shopping in India is
expected to happen on smartphones over the next five years. Already, Amazon and its rivals flip
kart ltd and snap deal (jasper InfoTech pt. Ltd) get more than 70% of their traffic from
smartphones. Amazon’s tech expertise in consumer-facing products, predictive analytics, supply
chain, among other areas is one of the reasons it is catching up fast with flip kart and snap deal.
Another change was the sign-up process for mobile customers. “the sign-up process was you
enter the email, then password, then you verify it, etc.—that was too much. Now, we pre-detect
the mobile number and the new user only has to enter a password. You get an opt, which is read
and entered automatically. This is another feature we have opened up in other markets. Overall,
the goal is to understand where there is friction for the customer and then eliminate that. Initially,
however, Amazon adopted most of the features of its global app in India. Those features
included things such as barcode scanning, which were of no use to Indian shoppers. Apart from
irritating customers, the features also caused the app to become very heavy in terms of taking up
space on smartphones. This was particularly problematic as a majority of Amazon’s current and
future customers will own low-end smartphones that offer limited storage space. Clunky apps
also don’t tend to work best on cheap smartphones.
 FLIPKART
Flip kart’s business model is much deeper and much expansive that could possibly elaborate
here. However, a few key points -

• Rationalized supply chain - inbound logistics

• Strategic warehousing and distribution capability - operations
• Well aligned fulfillment process - outbound logistics

All the three processes are extremely well integrated - first by a sound strategy, around which the
organizational structure is built. So they have a strategy, and a complementing structure to
support their strategy. The third critical success factor for flip kart is the technology as an
enabler. A strong information systems is at the core of the organization, which drives visibility
and end-to-end integration across their supply chain processes (inbound - operations - outbound)
resulting in a well lubricated efficient machine.

flip kart, must be seen as a logistics company rather than a retail business. Although it sells
products to consumers, and hence is academically classified as a b2c business, the core of the
business lies in its efficient logistics, which allows it to sell products at attractive prices.

However, its competitive advantage is not in its retailing capabilities. In fact that aspect of the e-
commerce business is easily imitable and hence not sustainable. The sustainable competitive
advantage of flip kart, lies in its logistics and operations infrastructure - which has a very high
barrier to entry: owing to its extensive capital investment and difficult to replicate strategy-
structure-culture mix.

Cons: potential threat of the original replacing the imitated.

It is important to reflect upon the fact that its founder members (the Bansal’s) have had an early
stint with Amazon and have successfully modeled Flip kart’s business on Amazon strategy. So, it
would be fair to say that flip kart imitated Amazon's model to an extent. However, owing to
governmental regulation and international trade barriers (read retail fid restrictions), Amazon has
not yet been able to compete with flip kart on an even keel. (Amazon operates as a marketplace
 rather than a retailer). Amazon has all the infrastructure, culture, and technology enablers in place
that flip kart has - and on a much larger scale. One other thing that they have is huge financial
muscle power - much larger than what flip kart has. And the moment when these restriction on
in retail are lifted, Amazon will be a major threat to flip kart. And all these acquisitions that flip
kart has been making, is to bulk up and brace up for the competition it faces.

MARKETING MIX OF FLIPKART

Product in the marketing mix of flip kart - flip kart is an online retailing industry and started its
operations with the sale of books. For two years, it sold only books through its website as the
management and shipment of books was much easier. After its expansion, it started dealing with
products like air coolers, washing machines, air conditioner, life style products, stationary
supplies, cell phones, computers, calculators, microwave ovens, water purifiers, laptops,
cameras, audio players, products relating to health care, dishwashers and e-books. Products sold
on flip kart have the same warranties of the brand if sold outside in a showroom. It has recently
launched its personal product range called “dig flip”. Under this brand, it offers products like
computer accessories, camera bags, headphones and pen drives. In July, flip kart introduced its
own tablet phones and networking router under its personal range “dig flip”. On February 5,
2014 in a special tie up with Motorola mobility, flip kart has provided a platform for the launch
of
‘motto g’. Online shoppers went crazy with the unveiling of this smart phone. This awe-inspiring
response resulted in the sales of nearly 20,000 mobiles in a few hours. Continuing their
association, ‘motto x’, an android smartphone, was introduced on march 19. On may 13,‘moto e’
was launched at the same site triggering the same response. Continuing this success story flip
kart in a tie up with xiaomi tech introduced ‘xiaomi mi3’ on its platform. In the first phase
on22nd July all the phones were sold in just 39 minutes and in the 2nd phase on 29th July the
sold out was complete in only 5 seconds. On 5th august the sale was completed in just 2 seconds.
This amazing response and hyper mania has helped in giving flip kart an immense lift up.
Place in the marketing mix of flip kart - flip kart functions entirely in India and it has its
headquarters in the garden city of Bangalore in Karnataka. It is owned by a Singapore based
company and is registered over there. According to India’s foreign policy, a foreign company is
not allowed e- retailing over here. Therefore, in India, flip kart sells the merchandises through an
Indian company vs retail. flip kart also provides its own platform to other companies who are
interested in selling their goods. The website is very easy and hassle free. Browsing, keeping
track of products, getting reviews, ordering goods and payment methods are very convenient for
the individuals. At first flip kart started its operations on the consignment model in which they
personally bought the book and couriered it. Later they opened many warehouses where the
goods were stored safely. The first warehouse was opened in Bangalore and later in Delhi,
Mumbai, Chennai, Hyderabad, PUNE, Noida and Kolkata. As of today, more than five hundred
suppliers are working for flip kart. At least 80% of the orders placed are handled and controlled
via warehouses. Shipping companies and courier companies are the real mediators in this setup.
The quick and well-organized service is the reason why the company has been able to put its
mark on the Indian market. Their delivery network is spread over thirty-seven cities with delivery
being possible in any nook and corner. Price in the marketing mix of flip kart - though flip kart
started its venture with an investment of just INR 400,000, today its net worth is nearly 1billion
dollars as its sales are increasing day by day. It still earns revenue of 50% from selling books
online. Electronic commerce has become a huge hit because of flip kart. Its price policy is very
flexible because of online transactions. Amount to be charged is determined after looking at the
innumerable expenses like transport expenses, supplier expenses, packaging costs, courier
charges, shipping cost, office expenses, maintenance expenses, discount allowances,
depreciation, taxes, advertisement expenses and many other expenses. Discounts up to 35% are
allowed periodically to boost up the sales and maintain competitive prices. For payments, flip
kart allows credit card transactions, cash payment after delivery, transaction through debit card,
by swiping card on delivery, vouchers available as e-gift and net banking. Promotions in the
marketing mix of flip kart - flip kart has changed the concept of multi brand retailing of products
through internet in India. Its huge success has proved to be an inspiration for other companies. It
operates mostly through mouth advertising. The satisfied customers have been their best
promoters. To have a firm grip on the online world flip kart has used the services of google ad-
words and SEO. These marketing tools have made them household names. Downloading the
exclusive app of flip kart helps in getting alerts about the current offers, order status, price drops,
recent launches and various gift coupons. flip kart has also taken the help of creative and
interesting advertisements so that an awareness and trust is generated for their website amongst
the people. Their first campaign was shown on TVC with the concept that books can be delivered
with just a single click. Recently an ad has been launched to increase the social visibility where
the tag line is “no kidding no worries”. Trained individuals are hired to fulfill their
responsibilities adequately. The systematic planning and level of effort undertaken to reach such
heights is commendable.

AMAZON
SEGMENTATION

E-commerce giants like Amazon uses demographic & psychographics segmentation to segment
the markets. Amazon’s segmentation is based on actual purchase behavior: not what people
might have expressed interest in, but what they actually did. Amazon’s micro-level segmentation
targets each customer individually, allowing the company to convert visitors into long-term,
high-value customers. Customer segmentation often involves creating personas who will buy in a
certain way & certain products. Similarly Amazon targets the middle class & upper class people
who have got hands on experience in the basic technology but don’t have time or prefer
convenience over shopping from the physical outlets. Amazon has successfully positioned itself
as a local (go global act local) e-commerce giant where one can buy anything & get it delivered
at any remote locations. Using the catchphrase #aurdikhao in its most recent campaign in India,
it has further helped them carve a distinct space in the consumer’s mind.

MARKETING STRATEGY

In order to differentiate itself, company acquired many it & e-commerce start-ups like pets.com,
audible.com, junglee.com, imbd.com, zappos.com, woot etc. Which helped them in providing
high value to their customers using existing technology of the acquired partners at low cost?
Amazon has also achieved economies of scale through extensive product offerings which include
electronics, toys and games, apparels, and many more. These offerings help Amazon to keep its
prices low thereon passing on the benefits to the consumers. Amazon’s robust customer centric
approach to analyses the customer buying behavior based upon preferences has helped them to
have competitive edge over their competitors. More than 50% of the consumers are the repeat
buyers at Amazon.com. Furthermore, Amazon is one of the longest players to be present in the
online sector and has a solid hold in European countries and us. This bottom line is helping the
company to expand in new markets.

Brand equity in the marketing strategy of Amazon – from being merely an e-book provider to
emerging as the 2ndlargest e-commerce company in the world, Amazon.com has steadily
increased its spending on advertising and promotion to make its brand stronger and have a higher
brand equity. By April 2015, the brand of Amazon.com was worth us$ 176 billion. “a brand for a
company is like a reputation for a person. You earn reputation by trying to do hard things. With
more than 55% repeat buyers, the numbers tells everything about the brand. It is among 13
world’s most valuable brand” (Forbes list).

Competitive analysis in the marketing strategy of Amazon –short listing the competitors of
Amazon depends on what business sector of Amazon is being considered. Apple would be the
largest competitor when considering book or content related delivery such as books, movies,
magazines, and audiobooks. The itunes store will always be a threat to the Amazon store because
of apples devices like the iPad, iPhone, and MacBook. When considering web services google
would emerge as the largest competitor.

Walmart is the biggest threat to Amazon in us as reports roll in of various attempts to compete
with the large online retailer. Reports of Walmart testing a locker system for consumers where
shoppers can order and pay online and pickup at their convenience are surfacing. Walmart is
also still testing same-day delivery in four cities and remains the fourth largest online
retailer. Walmart rakes in about $9 billion in internet sales, which Amazon more than doubles in
a quarter. However, Amazon does not have the physical structure base that Walmart has to start
with.
In developing countries as well as in developed, there are many local portals which give tough
competition to Amazon. For example – snap deal, flip kart are some of the competitors of
Amazon. Similarly, group on, first cry are specialized e-commerce portals which take away
traffic from Amazon. Thus, these local competitors of each country also react strongly to
Amazon’s presence. Market analysis in the marketing strategy of Amazon- the global e-
commerce market is still in the evolving phase. With the adaptation of technology in the
developing economies customers are now becoming more comfortable with online shopping.
Fierce competition from biggies like ALABABA, eBay, start-ups & local ecommerce players
like flip kart, snap deal is more of resulting into overall growth of the industry which is good for
the industry.

Customer analysis in the marketing strategy of Amazon- Amazon customers consist of upper
& middle class social groups who have inclination towards using e-commerce portals and are
comfortable with online shopping. Majority of the customers are professionals or businessmen
 who are busy with their business/job & find it convenient to purchase anything online rather than
visiting the physical outlet in order to save time & money. Furthermore, the customers might also
be the ones who are searching for deals. Due to this, the portal is known to have specific days
where they give massive discounts to their buyers.

MARKETING MIX

Product in the marketing mix of Amazon

Amazon is an international ecommerce company, using connections to the internet from various
gadgets such as phones and tablets, to allow its customers to browse and purchase products
immediately. These products are then delivered to the customer, using delivery service
companies. Amazon has built up a huge product base, and sells almost everything, including:
kindle, books, DVDS, mobile phones/tablets, gaming consoles and games, clothes for
men/women and children, jewelers, gardening equipment. Amazon initially started only with
books and it is till date known as the highest book seller in the world. This is why, Amazon also
introduced kindle. Kindly is an e book reader from Amazon and it is the reason that the
publishing market is having such a big revolution of converting hard paper to digital e books
because ease of reading by kindle. Due to success of kindle, Amazon also introduced kindly fire
– its own tablet pc. Type in a search entry into a search engine for a specific product, and the
chances are that Amazon will stock what you need, and will be on the search list. As they
continue to grow, more and more products are added to their inventory. Once established into
books, Amazon quickly expanded to other products to maintain its presence in the market. Where
e bay is know for techie products, Amazon is known for knowledgeable products. Amazon
continues to expand its product base, and in july 2014 it entered the smart phone market,
releasing its very own fire phone. The phone followed the release a month earlier of Amazon’s
very own set top box system – Amazon fire tv- which allows streaming from various channels, as
well as supporting speech commands when searching.

Place in the marketing mix of Amazon

 In the recent past, sites such as India plaza and all school stuff were forced to close due to the
lack of trust when buying goods online. However, the brand image of Amazon enables it to have
a far and wide presence and the bottom line of the company is enough to enable massive r & d
efforts to secure the website. Amazon has customer service bases in many of the countries where
it has an online presence, with most bases being located in the different states of the usa. Amazon
employees are friendly and relaxed.

Promotion in the marketing mix of Amazon

While Amazon has broadcast television commercials, these are mostly in the American
market. Amazon uses mainly web based advertising, and they make some use of billboard
and smaller methods of advertising. Amazon also uses advertising networks online so that
whenever you check something on Amazon, you will see an ad for the same thing
somewhere else on some other website. Search engine marketing and getting the
company’s name high up the search engine’s results is also a smart promotional strategy by
Amazon. The founder of Amazon had this in mind

In India, Amazon can be seen to rely on the best source of promotion there is – word of mouth.
People telling others about the site, or mentioning it in a positive way is a sure way to have a new
future customer. However, there are several print media ads to make their presence felt to the
people. However, much more is needed in the promotions department from Amazon in India
because the traffic of Amazon is being taken over fast by flip kart.

Price in the marketing mix of Amazon

Amazon is competitive with its prices, and has little ways of staying ahead of its market
contemporaries. For example, if you are looking to buy a book, Amazon offers you a new copy,
or a used copy as well, complete with pricing and condition. Another initiative is to pay to have a
premium account, ensuring faster deliveries. Amazon can also keep their prices competitive due
to their use of staff. Minimum numbers – but well trained – ensure that consumers benefit from
the lack of overheads, and the result is shown in the prices online.
As more and more people can access broadband connections in India and get online, the
competition for the likes of Amazon.com will toughen. Amazon’s quiet entry into India has seen
some growth so far due to its brand image, and it will be looking to keep its prices as low as
possible to capture a slice of the growing market place. It faces tough competition from the likes
of e bay, flip kart and snap deal.
COMPARATIVE STUDY OF ADVERTISING
2021 ADVERTISING STATISTICS FOR E-COMMERCE FIRMS

2015 was the year when e-commerce companies opened up their war chest, built over years, and
spent heavily on advertising on garnering market share and brand building. The advertising
amount was spent across channels – TV, print and digital media – with TV ad spends getting the
lion’s share. It was an interesting year. Advertising budget for a startup had a direct correlation
with the amount of funds raised by it. For e.g. Lime road, gofers and crafts villa collectively
raised close to Rs. 60 crores in 2015 of which Rs. 28.5 crores were spent in advertising.

Let’s have a look at the highlights of the advertising spend done by various e-commerce
companies in 2015.

1. With an estimated advertising budget of rs. 350 crores, ask me group was the biggest
advertiser among its peer. The group is backed by hellion investments and astro
malaysia.
2. 2. During the festive period (sep – nov), e-commerce firms in India spent rs. 500 crore in
advertising. The entire advertising spent of e-commerce players, during 2014, was rs.
600 crores.
3. Jeff Bezos owned Amazon spent 224 crore on advertising during the 3 months of festive
season whereas flip kart spent almost 70 crores during the same period.
4. flip kart owned fashion brand, myntra, spent around 30 crores on advertising while
used- goods marketplace, OLX, spent over 55 crores during the peak season of sep-nov
2015.
5. According to tam media research pt. Ltd., e-commerce firms have spent a total of rs.
1,200 crores in the first 9 months of 2015 (till sep 30, 2015).
6. This was an increase of over 46 percent over the corresponding period in 2014.
Close to 70 percent of the advertising budget was spent on prime-time spots whereas
over 40 percent of the spend was done on non-fiction channels. Why non-fiction?
 Companies targeting youth believed that these channels would give them better
conversion and reach as compared to traditional entertainment channels.

E-COMMERCE ADVERTISING LANDSCAPE TILL 2015

Spending big –Flip kart’s annual advertising budget is about rs. 75 cr, while Amazon’s expected
investment in advertising for 2014 is rs. 100-150 cr. In 2013, e-commerce companies spent rs
1,355 cr on advertising overall. In 2015, nearly rs. 221 cr have already been spent on advertising
by the major players of the e-trailers in the first six months. This does not include players in the
travel industry such as make my trip, yatra and clear trip. Travel contributes 70% to the e-
commerce market in India. During recent festive season, snap deal is a clear winner with use of
massive budget on advertising and literally flooding all TV shows and movie channels with snap
deal advertisement. The exact figures are not available but rough estimates amount up to rs 100
cr being spent on festive season advertising budget.

Print vs. Radio vs. Television vs. Online – in 2014, until now, print has been the most widely
used medium of advertising, with e-commerce companies spending rs. 599 cr on it. In a country
where 47.2% households have television sets, as compared to 11% of online users, television is
the next medium of choice, where online players have spent rs. 170 cr, finally followed by radio
at rs. 13.9 cr.

Capturing the market eye-balls in travel

Travel e-commerce is valued at $8 bn in India, accounting for 70% of the overall market, and
growing at a 32% cagr. Travel websites in India have so far preferred to wage fare wars,
competing on the value of sales offered in tickets and hotel bookings rather than direct
advertising. Those that have tie-ups with hotels and offer complete travel solutions also compete
on the types of package tours and their competitive pricing. Flash sales and fare wars have
increased the overall travel spends by 20-25% in 2014.
How do e-commerce players manage to spend big amounts on advertising?

Almost all the e-commerce players are backed by global and local investors who are pouring
million of dollars in these companies. A large part of this investment is being used by e-
commerce players to enhance their brand identity and corner a loin share of online shoppers. Of-
course, the smaller companies who lack substantial investment are at a loss here. However, some
of the smaller, niche e-commerce players are making targeted marketing efforts to channelize
their advertising fund to maximize roi.

Outlook for spend on advertising in 2016

According to a report by zenithoptimedia, the ad spend in major Asian economies will continue
to grow in 2016, albeit at a lower rate of 8.4 percent when compared with 8.9 percent growth of
2015. The slowdown will primarily due to sluggish ad spending in china which currently
accounts for 74% of the total Asian advertising spend. Besides, India and china, the major Asian
economies include Indonesia, Malaysia, Pakistan, Philippines, Taiwan and Vietnam.

FLIPKART ADVERTISING AGENCY

Happy creative services, which has been the brand's creative agency since 2010. Myntra, the
fashion e-commerce major which flip kart had acquired in may 2014, will be handled by low
which had already been the brand's creative agency since march 2014. flip kart and myntra
continue to operate as separate entities and myntra founder MUKESH BANSAL is the head the
fashion business for flip kart and join the flip kart board. Flip kart’s first TV commercial for the
e-retailer, 'fairytale', was an elaborate 100-second effort. Created in the old English style of
fairytales, it was the story of an old woman, a voracious reader, who lives in a cottage and orders
her daily read by clicking on a live mouse. The rest of the ads including 'no kidding', 'shopping
ka naya address' and the most recent one, 'flip kart it', have been etched in TV viewers' minds
owing to the unique approach of using child actors to communicate the ease of shopping on flip
kart. In 2013, the e-commerce portal announced its entry into the realm of fashion and lifestyle
with a new TVs campaign titled 'fashion has a new address' - an extension of its previous punch
line, 'shopping has a new address'.
 AMAZON ADVERTISING AGENCY

Orchard advertising India is Amazon India’s advertising agency. Orchard advertising India
highlights the benefits of shopping on Amazon.com with # we Indians. Conceptualized and
executed by orchard India and directed by ANURAG KASHYAP, the one minute video shows
Amazon as a reliable place to shop from with original products, easy return policies and on-time
delivery. The video comes along with a song with lyrics by amitabh bhattacharya and music by
AMIT TRIVEDI. #AURDHIKHAO to #TRYTOHKAR, #APNI DUKAAN and now #we
Indians are the famous taglines used for Amazon India advertising.
 FLIPKART

 Strengths:

1) India’s largest e-commerce retailer: flip kart is the India’s largest e-commerce
company & had sold gm. (gross merchandising value) of $1 billion till now.
2) Experienced founders: the founders of flip kart, SACHIN & BINNY BANSAL are ex-
Amazon employees. Having prior experience in the e-commerce industry helped the
founders to work strategically and differentiate their business in a highly competitive market.

3) Acquisition: with its series of acquisitions like letsbuy.co,, chakpak.com, weread.com,

mine360 & the recent one myntra in 2014 has helped the company to expand in the e-
commerce space & used the capabilities and existing resources of acquired companies.

4) High brand recall: flip kart has established itself as a renowned e-commerce company in
India through tv ads, online branding and through its presence on social media. Brand
activities like the “big billion day” have really increased the brand recall of the company.

5) Own payment gateway & logistic arm : having its own logistics arm e-kart &
payment gateway pay zippy has helped the company to control its expenses. Thereby passing
the benefits to the end customers.

6) Exclusive & broad range of products: from having exclusive rights to launch some
products like motog motox, xiaomi mi3 as well as personal designers segments in garments
category, has helped the company to differentiate and localize its offerings.

 Weaknesses:

1) Limited distribution channel reach: although its logistics arm has kept cost’s low,
the reach has been affected which is a weakness for flip kart. Due to use of outsourcing,
global giants like Amazon & e bay can deliver the product anywhere in the country.
However, flip kart is still struggling in this field.

2) Cost of acquisition: due to stiff competition in the market & low customer retention, the
cost of acquisition is high because flip kart acquires a lot of customers through online
advertising. As per flip kart data, the company spends R.s 400/- on acquiring a new customer
on an average.

3) Power in the hand of buyers : since this industry is flooded with many players, buyers
have a lot of options to choose. Switching costs are also less for customers since they can
 easily switch a service from one online retail company to another. Same products will be
displayed in several online retail websites. Product differentiation is almost absent and the
fight then begins on the basis of price only.

 Opportunities:

1) Expansion of business: by targeting other emerging markets company can increase their
revenues as well as it can have economies of scale.

2) Expanding their product categories : this will increase their customer base & at the
same time will reduce the cost of acquisition and customer switch.

3) Changing mentality of Indian customers: with increasing numbers of customers

getting comfortable with online shopping & increase in numbers of internet users in India,
there is huge potential in this industry.

4) Supply chain: by optimizing their supply chain they can compete with the other players &
can manage the loosing sales on account of not making the product available due to delivery
constraints.

5) Establishing in other developing economies : like Amazon, flip kart can slowly start
expanding out of India and establish operations in other countries as well which will help
improve revenues.

 Threats:

1) Competition: stiff competition from the global players like Amazon, e bay as well as local
player like snap deal, tolexo and shop clues who are continuously trying to eat each other’s
market share.

2) Government regulations on the issues related to in multi branding retail has been a big
hurdle in the success of the e-commerce industry in India.
 AMAZON

 Strengths:

1) Strong background and deep pockets – built on its early successes with books,
Amazon now has product categories that include electronics, toys, games, home and kitchen,
white goods, brown goods and much more. Amazon has evolved as a global e- commerce
giant in the last 2 decades.

2) Customer centric: company’s robust crm has created customer centric processes in order
to carefully record data on customer’s buying behavior. This enables them to offer individual
items, related items or bundle them as an offer, based upon preferences demonstrated
through purchases or items visited. Also, the company claims that 55% of their customers are
repeat buyers resulting in low cost of acquisition of new buyers.

3) Cost leadership: in order to differentiate itself, company has created several strategic
alliances with other companies to offer superior customer service. The most important
strategic tie ups are with logistics provides who control costs. Because of playing on
economies of scale, Amazon is able to lower the inventory replenishment time.

4) Efficient delivery network: with its strategic partners & due to its Amazon fulfilment
centers, Amazon has created a deep & structured network in order to make the product
available even at remote locations. It also has free of cost delivery charges in certain
geographies.

5) Global strategy: by using the strategy of “go global & act local”, Amazon is able to
fight with domestic e-commerce companies through absorbing & by forming / partnering
with supply chain companies. The branding too is done as per local taste. For example- in
India, Amazon is currently using the “AUR DIKHAO” campaign to encourage users to
browse more of their products.
6) Acquisitions: acquiring companies like zappos.com, junglee.com,
imbd.com, woot.com etc. Has proven to be a successful and revenue generating step for
the e commerce giant.

 Weakness:-

1) Shrinking margins: due to extensive delivery network & price wars Amazons margins
are shrinking, which is resulting in even losses. In India, Amazon had a loss of $359 crs in
the year 2013-14.

2) Tax avoidance issue: Amazon has attracted negative publicity on account of tax
avoidance in countries like U.S & UK. Most of its revenue is generated from these well
established markets.

3) High debt: in many developing nations Amazon is still struggling to make the business
profitable thereby affecting the overall profitability of the group resulting into high debt.

4) Product flops – Amazon launched the fire phone in the us which was a big flop. At the
same time, kindle fire did not pick up as strongly as kindle did. Thus, there were several
product flops which caused a dent in Amazon’s deep pockets.

 Opportunities:-

1) Backward integration: Amazon can come up with its in-house brands in different
product categories. They can also differentiate their offering. This will help them make
profits in highly competitive e-commerce market.

2) Global expansion: expansion mainly in Asian & developing economies will help
 Amazon because those are the markets with low competition in e-commerce industries & are
not saturated like developed economies.

3) Acquisitions: by acquiring e-commerce companies it can decrease the competition

level & also can use the specialized capacity of the other company.

4) Opening physical stores outside U.S: by doing this Amazon can help the customers
to engage with the brand, resulting in increase in repeat purchases & increase in loyal
customer base.

 Threats:-

1) Low entry barriers of the industry: low entry barriers affect the current player’s
business as more & more company means tough competition, price wars, shrinking margins
& losses resulting into questioning the sustainability of the players.

2) Government regulations: not having clarity on the issues related to FDI in multi brand
retail, has been a big hurdle in the success of the e-commerce players in many developing
nations.

3) Local competition – India has snap deal and flip kart who are local e commerce retailers
and are taking away majority of the market. Similarly, there are many local players who take
bites from the market share thereby making it hard for a big player like Amazon to make
profits.
 PEST ANALYSIS
ESTEL Analysis of flip kart

Political
According to Chaudh any (2016), GOI (The Government of India) is currently trying to boost the economy
of the rural areas by promoting online businesses in these regions. GOI's plan may see new regulations in
the e-commerce industry, which will influence Flip kart’s operations. However, given that India elects
leaders every five years, considerable uncertainty on Flip kart’s interaction with the GOI exists because, as
Bazzi & Clemens (2013) note, some leaders may be unfriendly to investors, which will negatively impact
the company's operations. Furthermore, in 2012, the GOI opened up the retail sector to the entry of multi-
brand MNCs (Patibandla, 2014) to promote FDI (Financial-Direct-Investment), among other logistics that
could improve India's e-commerce supply chain. However, allowing foreign retailers such as Amazon into
the Indian markets has resulted in intense competition for flip kart. Finally, Mishra (2017) affirms that
Flipkart must abide by rules such as the new GST bill that limits flip kart from getting pricing benefits from
sellers that are situated in countries with lower tax rates (Garg, 2014).

 Economic
Indians' rapidly growing economy assures investors such as flip kart of continued markets. Furthermore, the
liberalization of the Indian economy to allow international investors in various industries including retail
will contribute to economic growth. Furthermore, the government requires that foreign companies in India
should sell or use specific percentage goods (for retailers) and resources (for manufacturers) respectively
that are locally sourced (Patibandla, 2014). Such a strategy is useful to ensure sustainable economic growth.
Furthermore, Kumar (2017) states that the number of online consumers is rising daily and there are
expectations that approximately hundred million people will have gone digital by 2018; this will facilitate
the growth of flip kart.

 Socio-Cultural
According to Rath & Samal (2015), most of the Indian population is rural, which stands at about sixty nine
percent and, while the urban population contributes to sixty percent of the total GDP. Rath & Samal (2015)
expect that within the next 15 years, the urban population will contribute to almost seventy-five percent of
the GDP. This trend demonstrates the importance of the urban population to organizations. However, with
the current GOI interventions to develop rural areas, these rural populations will be important to businesses
such flip kart in the future. Currently, flip kart is struggling with its logistics, which, understandably, are
concentrated in the urban areas. Nonetheless, as the importance of rural regions, which carry most of the
India populations grow, flip kart will need to expand its logistics.
  Technological
According to PADHY & SAMPAT (2017), flip kart has implemented data analytics systems for efficient
business performance. Information systems in the company integrate the information about market
opportunities and predict sales that the company is likely to make. This strategy enables the company to
take advantage of technological advancements such as big data for competitive advantage. Furthermore, by
2019, approximately eight hundred million people will be using smartphones, and a larger percentage will
be able to access e-payment platforms for an easier purchase of online products (Kumar, 2017).

 Environmental
Despite the fact that flip kart is an online retailer, its operations are subject to environmental factors. Rising
concerns by both governments and consumers about sustainable business and low carbon emissions is a
major issue (Maroon & Toder, 2014). Governments promote sustainable business practices through rules
and regulations. Some of the most popular rules pertain to carbon emissions and general environmental
regulations (Marron & Toder, 2014). In some cases, these rules introduce fines or taxes, to organizations,
which lower profitability margins for businesses.

 Legal
Chaudh any (2016) asserts that there are legal factors that affect operations of flip kart. In July 2015,
Westland books accused flip kart of selling "Scion of Ishvaku", yet West lands alone was given the rights to
sell the book by Amazon. This conflict demonstrates the need for flip kart to be more aware of property
rights such as licensing and trademarks. Furthermore, the recent Zomato breach resulted in the theft of
consumer data, which raises concerns about the ability of online organizations to protect consumer data
(Kumar, 2017). As online business continues to grow, governments and corporations alike develop
regulations. Some of these rules may complicate business practices or raise operation costs, which can
influence profitability margins.
 PESTEL analysis of amazon

PESTEL - Synthesis
The PESTEL Analysis allows to analyze and anticipate the opportunities and threats of a company’s macro-
environment (all external variables with an impact on the business). It distinguishes six categories of macro-
environmental influences. We followed 3 steps:

• Brainstorming & information searches in the media

• rouping factors to define trends
• Define whether these factors groups are opportunities or threats

 Political
Amazon's activities and development could be impacted by more or less aggressive protectionist policies.
The United States is not a symbol of trade openness, other economic states follow suit and show their
determination and claim their rank of great economic countries. The meetings of Donald Trump (President
of the USA) with Xi Jinping (General Secretary of the Chinese Communist Party) and Vladimir Poutine
(President of the Russian Federation) as well as the concerns of NATO indicate that the game of global
alliances could change the balance through economic pressures and influence the rights and duties of large
international groups like Amazon. It is specially true as substitutions to Amazon remain easily conceivable
with finally few constraints (as long as the hypermarkets and malls still exist). Sometimes politic
community can indirectly push towards e-commerce. For example, France has a specific government plan
named “plan très haut débit” in which the French government wants to accelerate the 4G and optical fiber
network deployment. This kind of political decision facilitates the access to the Internet, so to all services
based on the Internet (e-business included).
  Economical
Since the economic crisis of the beginning of the 1980-90s (stock market crash of October 1987), the world
population consumes less and is back to an almost systematic search for the best deal. People want more
comfort, always for the lowest price. The competition game pulls prices down (appearance of the "low cost"
concept), and unsurprisingly, after the decrease of computers and Internet accesses prices emerged systems
of optimized supply chain sales such as Amazon (overpressure of intermediaries, removal of physical stores
in the city). This movement is still ongoing (e.g., the recent democratization of smartphones and 4G
packages) and is maintained by the disappearance of the middle class. Jeff Bezos is in some ways an
"Edward Leclerc" (founder of the first French cooperative society and hypermarket chain) at worldwide
network level. So we can think that Amazon has in front of it a very favorable economy to continue to grow
up.

 Social
As previously pointed out, the Internet brings in more and more users because:

• Subscriptions are becoming more affordable

• People (assisted by governments and competition between Internet Service Providers) have a better
network coverage

• The development of the goods and people movements at a global level means that we need global
networks to monitor them all the time and everywhere. All the countries around the world are opening up
to the world, making large, formerly emerging countries new economic powers whose population is eager
for new technologies, information and new services (e.g., China, India).
Our modern societies (and our governments) tend to restore gender equality. With an everincreasing life
cost, couples see that both people have to work. Therefore, both man and woman are less and less at home.
This society evolution means that household chores such as errands become a waste of time that one would
rather spend on leisure if possible. The e-commerce and the "drive-in solutions" are a response to this time
optimization need. Beyond the search for "low cost", e-business has changed our societies and is now
becoming unavoidable and inseparable from our modern consumption patterns. The consumer changes his
habits according to the constraints he experiences in his environment, meaning that the consumer interest in
e-commerce is not foolproof. The consumer behavior will evolve further in the coming years depending on
the opportunities (e.g., technological developments, new services) that will minimize the impact of his daily
constraints. One can also imagine that if the concept of a universal salary were to come into being (tests are
ongoing in Finland) and became global to the world, the constraints currently applied to the consumer
would be turned upside-down and that he could then get some time again to hang out in physical stores and
would turn away from e-commerce.

 Technology
“All modern societies are characterized by a shortage of time: the more modern a society is, the less time it
has. It is not the oil that we will miss one day, but rather the time” says the German sociologist and
philosopher Hartmut Rosa. The more we innovate to do the things quicker (the more we save time), the less
we have time per task (so the less we enjoy life, so the less we live). According to Harmut ROSA,
“acceleration is not the fault of the technique. One can imagine a world where, thanks to technical progress,
it would be possible to release a surplus of time if the rate of growth were not so strong. Technical progress
broadens our horizon and our possibilities. It changes the perception of opportunities and obstacles and also
changes social expectations, both what we expect from others than what they expect from us. Technology
allows the acceleration of the life beat, but does not impose it. It gives us the means to dispose of it freely”.
But it has yet to be implemented. Hundreds of innovations grew in the recent decades and even more will in
the upcoming years. Innovations fuel innovation and today the devices to browse the Internet are diverse:
computers, tablets, hybrid computers, mobile phones, watches, etc. Channels are also more plentiful: ADSL,
CPL, optical fiber, 3G, 4G, etc. Overall, all these tools are more efficient and more effective. As a result,
more data can be processed and potentially more users can be attracted. In addition, artificial intelligence
(e.g., Alexa) and “AWS machine learning services” (making predictions more reliable) make it easier and
more commonplace to buy.

“The dream of modernity is that technology allows us to acquire temporal wealth. The idea behind it is that
technical acceleration allows us to do more things per unit of time” wrote Hartmut Rosa. Around 1900, an
average house had 400 different objects. Today, it has about 10,000. This quantitative increase leads to have
less time to take care of each object. We go faster with our computers, but we spend less time on it because
we go from a mean to another all the time (due to the diversity of solutions): computers, tablets, connected
watches, connected home, etc. Transportation is the same: switching from the “2CV” to the “DS7” allowed
us to double our speed. But at the same time, we quadrupled distances when it comes to work, leisure and
getting objects always further from home. This technological springboard has still bright years in front of
him because multiple leaps are already announced (cf. https://buzzly.fr) as for example:

• Unlimited data storage for all

• The development of all kinds of sensors and connected clothes

• The connected reading glasses

• The generalization of the digital identity

• Phones that will be more powerful than a microcomputer

• Mobile phones implanted in the body

• The trivialization of 3D printing for basic objects but also cars fully produced in 3D printing

• The generalization of the means of sharing for transport.

And we can’t imagine or anticipate the impact of nanotechnologies on innovations, business and the society.
It’s easy to see how these advances will continue to support Amazon's frenetic growth, unless our
environmental concerns and the absolute need to preserve our planet (for our children’s future) disrupt our
consumption habits.

 Environmental
his technical innovation acceleration, accompanied by an ever more targeted marketing favoring social
competition, boosts the purchases. There is a real frenzy pushing to renew faster and faster our favorite
products. Product lifetimes are shorter (sometimes voluntarily; see recent (in 2017) legal proceedings
against Apple and Epson) and the products are often no longer "economically repairable" (the repair cost is
often higher than the OEM production cost). This unbridled consumption draws on the resources of our
planet and weakens its balance. It generates, despite the efforts of the politicians, a lot of pollution during
the manufacture, the distribution and the waste treatment. This pollution is at the origin of global warming
that we know today and causes more and more natural disasters. CSR initiatives are becoming more and
more frequent because, fortunately, more and more people and companies feel concerned and responsible
for the future of our children. Even if all countries (e.g., the USA during the G7) do not deploy the same
energy, globally, governments vote laws encouraging companies to reduce their ecological impact. These
measures have a high cost and non-compliance with these laws potentially has a high power of nuisance on
the corporate image of the offending company. American and international groups like Amazon have every
interest in accelerating and anticipating their ecological expectations because their image is global and then
we can only be convinced that US laws are bound to strengthen on the subject someday. The consumer also
wants to participate in this mission. For example, brands of plastic garments such as Patagonia are growing,
despite higher prices than the competition. Emails also sport more and more the "Please consider the
environment before printing" mention at their bottom. It is perhaps also for this reason that the consumer is
moving more and more towards digital solutions such as e-commerce, considering that it is probably more
environmentally friendly to use a carrier that will deliver several products to several people rather than
having everyone to take his own vehicle to buy his object at the nearest mall.

 Legal
Laws evolve to try to preserve our planet in the long term but they are also evolve to deal with globalization.
Since the 19th century with the corporate tax ceiling put in place by the state of New Jersey (USA), the
major international groups are looking for the best organization of their "holding" allowing the best possible
tax optimization (this is called aggressive optimization). Noting the millions (and sometimes the billions) of
taxes that elude governments, they adapt regularly through lawsuits and new laws of tax laws more binding
for companies. At a minimum, international groups must provision in the event that they are the subject of
legal proceedings. They cannot ignore that social protection (even if it is not perfect) has made much
progress (as for example in the USA) this last century. Even without mentioning universal arrangements (in
terms of wages and social protection) as early as 2019, we can assume that states will have to be very
imaginative to finance its social strategy in the upcoming decades. The companies’ tax rates could then be
revised upwards with a decrease of the net income after tax.
 CUSTOMER SURVEY

Question . 1 Have you ever done online shopping?

OPTIONS RESPONDENTS %AGE

Yes 41 82%

No 9 18%

Total 50 100%

Yes No

18%

82%
INTERPRETATION:-

82% of peoples shows interest in online shopping, on the other hand, 18% of peoples does
not want to shop online.

Question. 2 :- How often do you shop online?

OPTIONS RESPONDENTS %AGE

Once in month 32 64%

Once In two month 5 10%

More frequently 3 6%

More often 10 20%

Total 50 100%
 Sales

20%

6%

10%
64%

ONCE IN MONTH IONE IN TWO MONTH MORE FREQUENTLY MORE OFTEN

INTERPRETATION:- 58% of peoples prefer flipkart online site while making

shopping online, 12% people uses amazon , 10% of snapdeal, 14% of peoples uses paytm
mall, and 6% of peoples using others websites.

Q.3 WHICH ONLINE SITE DO YOU PREFER MOST?

OPTIONS RESPONDENTS %AGE

Flipkart 29 58%

Amazon 6 12%

snapdeal 5 10%

Paytm mall 7 14%

Others 3 6%

Total 50 100%
 Flipkart Amazon snapdeal Paytm mall Others

6%

14%

10%
58%
12%

Q.4 HOW DO MAKE PAYMENT WHEN SHOPPING ONLINE?

OPTIONS RESPONDENTS %AGE

Debit card 29 58%

Cash on delivery 10 20%

Credit card 5 10%

Third party(paytm 6 12%

wallet,paypal etc.)
Total 50 100%
 Sales
12

10

58
20

DEBIT CARD CASH ON DILIVERY CREDIT CARD THIRD PARTY

Q.4 HOW DO MAKE PAYMENT WHEN SHOPPING ONLINE?

OPTIONS RESPONDENTS %AGE

Debit card 29 58%

Cash on delivery 10 20%

Credit card 5 10%

Third party(paytm 6 12%

wallet,paypal etc.)
Total 50 100%
 Sales
12

10

58
20

DEBIT CARD CASH ON DILIVERY CREDIT CARD THIRD PARTY

INTERPRETATION:-

58% of peoples make payment through debit card, 20% of peoples choose the cash on
delivery, 10% of peoples using credit card services, 12% of peoples uses other payment
methods

Q.5 WHICH ONLINE SERVICE IS MORE SATISFIED IN TERMS OF

PRODUCTS , CUSTOMER CARE AND DILIVERY?

OPTIONS RESPONDENTS %AGE

Flipkart 20 40%
Amazon 25 50%

Snapdeal 3 6%

Others 2 4%

Total 50 100%
 Sales

4%
6%

40%

50%

FLIPKART AMAZON SNAPDEAL OTHERS

INTERPRETATION:- 40% OF PEOPLE IS MORE SATISFIED IN TERMS OF PRODUCTS ,

CUSTOMER CARE & DELIVERY SERVICES FROM FLIPKART , 50% OF PEOPLE WITH
AMAZON , 6% OF PEOPLE WITH SNAPDEAL AND 4% OF PEOPLE WITH OTHERS .

Q.6 HOW DO YOU CHOOSE ONLINE SHOPPING SITE?

OPTIONS RESPONDENTS %AGE

Referred by friends 24 48%

Advertisements 15 30%

Online interviews 11 22%

Total 50 100%
 Sales

22%

48%

30%

REFERRED BY FRIEND ADVERTISEMENT

ONLINE INTERVIEW
Q. 7 HAVE YOUR ENCOUNTERED ANY PROBLEMS WITH ONLINE
SHOPPING SITE ?

OPTIONS RESPONDENTS %AGE

Flipkart 23 46%

Amazon 20 40%

snapdeal 5 10%

Others 2 4%

Total 50 100%
 Sales
4%

10%

46%

40%

FLIPKART AMAZON SNAPDEAL OTHERS

INTERPRETATION:- 46% of peoples have problems with flipkart , & 40% of

peoples with amazon , 10% of people with snapdeal , and 4% with online shopping
site.
RESEARCH METHODOLOGY
Research
Business research can be described as a systematic and Organized effort to investigate a specific
problem that needs a solution. More specifically, it is a process of planning, acquiring and analyzing
relevant data and information. We can define business research as an Organized systematic, data-based,
critical, objective, scientific problem undertaken with the purpose of finding answers to it. In fact,
research provides the needed information that guides managers to make decisions. They can deal,
successfully, with problems.

Research comprises defining and redefining problems, formulating hypothesis or suggested solutions,
collecting, Organising, and evaluating data, making deductions and reaching conclusion.

Research methodology
Research is an art of scientific investigation. It refers to a search for knowledge. The advance Learner’s
Dictionary English lays down the meaning of research as, “A careful investigation or inquiry especially
through search for new facts in any branch of knowledge.”

Research Methodology is a way to systematically solve the research problem. The research begins its
formation when the problem or objective of the research is identified for which a research report is
conducted.

Types of research:-

i) Descriptive:- Descriptive research includes surveys and fact-findings enquiries of

different kind. The major purpose of descriptive research is description of the state
of affairs as it exists at present. The main characteristics of this method is that the
researcher has no control over the variables; he can only report what has happened or
what is happening.
 ii) Analytical:- In Analytical research, the researcher has to use facts or information
already available, and analyze these to make a critical evaluation of material.
iii) Applied:- It aims at findings a solution for an immediate problem facing a society
or an organization/business organization.

iv) Fundamental:- Fundamental research is mainly concerned with generalizations

and with the formulation of a theory. Research studies concerning human behaviour
carried on with a view to make generlisations about human behaviour is an example
of fundamental research.

v) Qualitative:- It is concerned with qualitative phenomenon, i.e., phenomena

relating to or involving quality or kind. For instance ,when we are interested in
investigating the reasons for human behaviour(i.e. why people think or do certain
things), we quite often talk of ‘Motivation Research’, an important type of
qualitative research.

vi) Conceptual:- Conceptual research is that related to some abstract idea(s) or

theory.
It is generally used by philosophers and thinkers tp develop new concepts or to
reinterpret existing ones.

vii) Empirical:- Empirical research relies on experience or observation alone, often

without due regard for system and theory. It is data-based research, coming up with
conclusions which are capable of being verified by observation or experiment.

Research Design:-
A research design is the arrangement of conditions for collection and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in procedure. In fact, the research
design is the conceptual structure within which research is conducted; it constitutes the blueprint for the
collection, measurement and analysis of data.

Different types of Research Design are as follows:-

1. Research design in case of exploratory research studies.

 2. Research design in case of descriptive studies.
3. Research design in case of diagnostic research design.
4. Research design in case of hypothesis-testing research design.

In this study Descriptive research studies is used because descriptive research studies are those
studies which are concerned with describing the characteristics of a particular individual, or a group and
situation etc.

The design in such studies must focus attention on the following or process in descriptive research
design is as follows:-

(a) Formulating the objective of the study.

(b) Designing the methods of data collection.

(c) Selecting the sample

(d) Collecting the data.

(e) Processing and analyzing the data.

(f) Reporting the findings.

Sources Of Data:-
The task of data collection begins after a research problem has been defined and research design plan
chalked out. Basically two types of data are available to the research namely:-

• Primary Data:-We collect primary data during the course of doing experiments research but
in case we do research of the descriptive type and performs surveys, whether sample survey or
census surveys, then we can obtain primary data either through observation or through direct
communication with respondents in one form or another or through personal interviews.


• Secondary Data:-Secondary data means data that are already available i.e., they refer to the
data which have already been collected and analyzed by someone else.
In the present study, primary as well as secondary data has been used.

Sample Design:-
In most of the research design it becomes almost impossible to examine the entire universe. So the only
alternative is to report to sampling. This is true for the present study as well. Basic principles to be
followed in sampling are that the sample chosen must be representative of entire universe to be studied.

Universe and Survey Population:-Universe is the set of objective to be studied. It can be finite
and infinite. And survey population is a part of universe that represents the whole universe.

In this present study universe is 120 and survey population is 50 peoples.

Sample Size:-

In this present study we have taken the sample size of 50 peoples to get their views regarding online
shopping.

Sampling Method:-

In the present study, convenience sampling method has been used.

 Data Collection Method:-
In dealing with any real life problem it is often found that data at hand are inadequate, and hence, it
becomes necessary to collect data that are appropriate. There are several ways of collecting data which
differ considerably in context of a survey, data can be other resources at the disposal of the researcher.

Primary Data can be collected through various methods like:-

• Questionnaire method
• Observation Method
• Through Schedules
• Interview method


In the present study Primary data is collected through:-

• Questionnaire.

Secondary data can be collected though various methods like:-

• Magazines
• Newspapers
• Websites  Books

In the Present Study Secondary Data is collected through:-

• Different Websites
• Company Journals
• Books
 Data processing
Editing, classification, coding and tabulation are the important stages in research. It is at this stage the
mass of data collected during the survey is processed with a view to reducing them to manageable
proportions. In other words, the data processing which encompasses, editing, coding, classification, and
tabulation, is an intermediary stage between the collection of data and their analysis and interpretation.
Thus, these are the three crucial stages in the processing of social survey data.

Stages in data processing:-

1) Editing
2) Classification
3) Tabulation 4) Coding
 Questionnaire designing
. A questionnaire is a form prepared and distributed to secure responses to certain questions. It is a
device for securing answers to questions by using a form which the respondent fills by himself. It is a
systematic compilation of questions that are submitted to a sampling of population from which
information is desired.

Purpose of questionnaire are two fold:

• To collect information from the respondents who are scattered in a vast area.
• To achieve success in collecting reliable and dependable data. The questionnaire procedures
normally comes into use where one cannot readily see personally all of the people from whom
he desires response of where there is no particular reason to see them personally.

Questionnaire design process:

• Type of information needed

• Method of interview
• Contents of individual question
• Question structure
• Question wording
• Arranging questions in orde
RESEARCH DESIGN Descriptive

COLLECTION OF DATA Primary data, secondary data

SAMPLE SIZE 50 respondents

SAMPLING UNIT Individual

SAMPLING TYPE Convenient sampling

AREA OF STUDY Study area is limited to Sonepat

ANALYSIS PATTERN Pie charts

METHOD OF DATA COLLECTION Questionnaire method

FINDINGS, SUGGESTIONS,
CONCLUSION
FINDINGS

82% of peoples shows interest in online shopping, on the other hand, 18% of
peoples does not want to shop online.
64% of peoples shop online once In month, 10% of peoples once in two months,
6% of peoples more frequently, and 20% of peoples shop online more often.
58% of peoples prefer flipkart online site while making shopping online, 12%
people uses amazon , 10% of snapdeal, 14% of peoples uses paytm mall, and 6% of
peoples using others websites.
58% of peoples make payment through debit card, 20% of peoples choose the cash
on delivery, 10% of peoples using credit card services, 12% of peoples uses other
payment methods
40% of peoples is more satisfied in terms of products, customer care & delivery
services from flipkart, 50% of peoples with amazon, 6% of peoples with snapdeal,
and 4% of peoples with others.
48% of peoples choose online shopping site from referred by friends, 30% of
peoples from advertisements, 22% of peoples from online interviews.
46% of peoples have problems with flipkart, and 40% of peoples with amazon ,
10% of peoples with snapdeal, and 4% with online shopping sites.
32% of peoples are satisfied with the pricing strategies of flipkart, 38% of
peoples with amazon, 14% with snapdeal, 10% with paytm, 6% of peoples are
satisfied with pricing of others.
40% of peoples suggests flipkart to their family and friends, 32% of peoples
suggest amazon, 18% of peoples snapdeal, 4% of peoples paytm, and 6% of
peoples suggest others.
42% of peoples wants to make purchase on festivals, 24% of peoples purchase for
receiving gifts, 16% of peoples for offers, 10% on weddings, 8% of peoples on
others.
38% of peoples are strongly agree with they make purchasing decisions due to
promotional activities, 28% of peoples are agree, 22% of peoples are neither agree
nor disagree, 8% of peoples are disagree, and 4% of peoples are strongly disagree.
34% of peoples are extremely confident with their personal information is kept
confidential when purchasing online, 26% of peoples quite confident , 16% of
peoples are moderately confident , 4% of peoples are slightly confident, 20% of
peoples not at all confident.
42% of peoples faced problem with delay in delivery, 18% of peoples faced
problem of product range, 34% of peoples cheap quality of a product , and 6% of
peoples faced non delivery of products.
24% of peoples are satisfied with flip kart, 36% of peoples with amazon , 20% with
snap deal, and 20% of peoples with others are satisfied most for receiving after
sales assistance.
SUGGESTION

Flip kart is performing ok but not good enough. There are so many cases where people felt that
packing might have been better than this. Either it may be big or small / expensive or not product has
to be treated with care. Some of the products mostly apparel’s are turning out with original cover of
supplier, which shows negligence of them. In this issue Amazon made a mark among us, because
whatever the product is their packing will obviously safe and secure.
CONCLUSION
The study consisted with all the work flows of major e-commerce players in India, Flipkart and
Amazon. How they are performing and how they are running perfectly in the competitive world has
been explained. The innovative thinking of them to reach more and more consumers is appreciable.
They increased their network as much as possible with ultimate aim of reaching more and more
customers. They made consumers work more easy and comfortable. In this competitive market one has
to be lead and rest will follow. Based upon consumer’s survey we got our clear winner and it is
Amazon. Even though it is an international company it understood Indians very well and made its
roots stronger in India. Flipkart is also giving very tough competition to Amazon even though it is new
company when compared to Amazon. May be it takes some time to overcome, but definitely they are
doing very well in Indian e-commerce market.
ANNEXURES
Bibliography
Questionnaire
 BIBLIOGRAPHY

WEBSITES:

www.google.com

www.scribd.com

www.slideshare.com

www.academiaedu.com

www.flipkart.in

www.amazonindia.com

BOOKS:

Marketing management

Author:- Phillip kotler

Marketing management

Author:- C.B gupta

Publication:- Sultan Chand & Sons - Tb

MAGAZINES AND JOURNALS :

Newspapers and publishers
Compay info. guides
Academics journals
 QUESTIONAIRE ON ONLINE SHOPPING
DEAR MAM,
I am a student of bba 3rd year of dav institute of management , gunjan . I am conducting
this study as part of my circulum . You are requested to take out few minutes and help me
getting the survey/study done .

THANK YOU

PERSONAL DETAILS:-

NAME

MOBILE NO.

E MAIL ID

AGE

1. HAVE YOU EVER DONE ONLINE SHOPPING?

 YES

 NO

2. HOW OFTEN DO YOU SHOP ONLINE?

 ONCE IN A MONTH
 ONCE IN TWO MONTHS
 MORE FREQUENTLY
 MORE OFTEN
3. WHICH ONLINE SITE YOU PREFER MOST?

 FLIPKART
 AMAZON
 SNAPDEAL
 PAYTM MALL

4. HOW DO YOU MAKE PAYMENTS WHEN SHOP ONLINE?

 DEBIT CARD
 CASH ON DILIVERY
 CREDIT CARD
 THIRD PARTY(PAYTM, WALLET ETC)

5. WHICH ONLINE SERVICE IS MORE SATISFIED IN TERMS OF PRODUCTS , CUSTOMER

CARE AND DILIVERY?
 FLIPKART
 AMAZON
 OTHERS
6 . .HOW DO YOU CHOOSE ONLINE SHOPPING SITE?
 REFERRED BY FRIENDS
 ADVERTISEMENT
 ONLINE REVIEWS

7. HAVE YOU ENCOUNTERED ANY PROBLEMS WITH ONLINE SHOPPING SITE?

 FLIPKART
 AMAZON
 OTHERS
8. IN TERMS OF PRICING , WITH WHICH ONLINE SHOPPING SITE YOU ARE SATISFIED?
 FLIPKART
 AMAZON
 SNAPDEAL
 PAYTM
 OTHERS

9. WHICH ONLINE SHOPPING SITE YOU SUGGEST TO YOUR FAMILY AND FRIENDS?
 FLIPKART
 AMAZON
 SNAPDEAL
 PAYTM
 OTHERS

10. ON WHICH OCCASION DO YOU MAKE PURCHASE>

 FESTIVALS
 OFFERS
 WEDDING
 OTHERS
11. DOES PROTIONAL ACTIVITIES IMPACT YOUR PURCHASING DECISION?
 STONGLY AGREE
 AGREE
 NEITHER AGREE NOR DISAGREE
 DISAGREE
 STONGLY DISAGREE
12. HOW CONFIDENT ARE YOU THAT PERSONAL INFORMATION IS KEPT
CONFIDENTIAL WHEN BUYING PRODUCT ONLINE?
 EXTREMELY CONDIDENT
 QUITE CONFIDENT
 MODERATELY CONFIDENTIAL
 NOT AT ALL CONFIDENT
13. WHAT KIND OF PROBLEM DID YOU FACED WHILE DOING ONLINE SHOPPING?
 DELAY IN DELIVERY
 CHEAP QUALITY OF PRODUCT
 PRODUCT DAMAGE
 NOT DELIVERY
14. WHICH COMPANY ARE SATIFIED MOST FOR RECEIVING AFTER SALES
ASSISTANCE ?
 AMAZON
 FLIPKART
 OTHERS