Brihan Maharashtra College of Commerce (BMCC)

Pune, (Autonomous)

Submission of Project Report

On

Title: REATIL AND ECOMMERCE INDUSTRY ___ ___

Submitted to Submitted by

Dr. Ranjana Gujrati Name- Rakshita Rajesh Mahajan

Faculty- Business Administration II Class- SY Div D
Dept. of Business Administration Roll No- 424
Signature- Date- 31st July 2024
Signature-

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E -commerce is the process of buying and selling tangible products and services
online. It involves more than one party along with the exchange of data or currency
to process a transaction. It is part of the greater industry that is known as electronic
business (e-business), which involves all of the processes required to run a company
online.

Providing goods and services in an online mode isn't as easy as it may seem. It requires a
lot of research about the products and services you wish to sell, the market, audience,
competition, as well as expected business costs. Once that's determined, you need to
come up with a name and set up a legal structure, such as a corporation. Next, set up an e-
commerce site with a payment gateway. For instance, a small business owner who runs a
dress shop can set up a website promoting their clothing and other related products online
and allow customers to make payments with a credit card or through a payment
processing service.

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  HISTORY OF ECOMMERCE….

I t was in the early 2000s that the Indian internet invasion began. Online transactions
came much later, mostly being restricted to paying bills for utility services and buying
train tickets- and eventually, flight bookings.

Ecommerce in India, as we know it, today was slowly growing. In 2007, the Indian
ecommerce industry saw the
launch of Flipkart. While online
shopping was technically
present before that, it took flight
with the deeply discounted
model that Flipkart introduced.
Soon, young people were
flocking online to buy gadgets
and clothes in unprecedented
numbers.

The change did not go

unnoticed. Global players now
saw a huge potential market in
India. The next benchmark in India’s ecommerce market was the entry ecommerce
behemoth Amazon. Amazon India emerged as the main competitor to Flipkart, and they
went neck to neck in discounting and holding regular sales.

Meanwhile, other big players like Snap deal, Shop Clues, HomeShop18 and other online
commerce sites also made their entry. However, as the market grew more competitive,
many were pushed out, while the bigger players acquired other smaller ones.

In 2018, the sector saw the takeover of

Flipkart by WalMart in one of the
biggest deals in the Asia Pacific
region. How this new development
plays out is anybody’s guess- but one
thing is for sure- Indian shoppers will
surely be spoilt for choices and will be
aggressively courted by the global
giants.

In the chart below we see a distinct

upward jog in total global retail sales
from 2019-2020, giving a strong boost
to a steady 8% growth in retail
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ecommerce sales worldwide forecast through 2024.This shows us an increase in online
retail sales as a result of the paradigm shift that COVID disruptions have brought to
business.

 SCOPE AND OBJECTIVE OF E-COMMERCE…

W ell, to put it bluntly, the scope of e-business in the near future looks to be ever-
increasing and growing, because the trend has really caught on here. E-commerce
giant Amazon is keen to conquer the Indian market and has already invested a great deal;
especially with its 49% stake in the Future Group.

Indian online retail giant Flipkart has already opened a few offline stores and plans more
stores in smaller cities. They plan
to combine online and offline
stores to maximize their selling
potential.

Google and Tata Trust have

launched a joint program ‘Saathi’
to increase internet and mobile
penetration among rural women.

The Government of India is also

making a huge push for numerous
sops to startups, cyber parks, and
so on through its Digital India program.

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As of now, there are close to 20,000 E-commerce companies in India, with many more
expected to join the bandwagon every month. Experts are of the opinion that by 2034, we
will outperform the US where online shopping is concerned, becoming the second-largest
e-commerce economy in the world.

 MARKET SIZE OF E-COMMERCE IN INDIA…

T he India e-commerce
market size was
valued at USD 88.6 billion
in 2022 and is expected to
grow at a compound annual
growth rate (CAGR) of
19.6% from 2023 to
2030. The increasing
penetration of 5G and 4G
internet services in India,
coupled with the adoption
of low-cost Smartphone’s
and other consumer
electronics devices such as
laptops and tablets, is
gaining momentum; thus, providing exposure to online shopping is a major factor driving
the market growth. Likewise, government initiatives such as Made in India, Startup India,
and 100 % foreign direct investment in B2B e-commerce is expected to support middle
and small enterprise to enter the e-commerce space, further driving the market growth.

The Indian e-commerce market has been among the major beneficiaries of the COVID-19
pandemic, with containment measures introduced the country to the convenience of
online shopping. The shopping pattern across the country experienced a structural shift
with e-commerce companies such as Flipkart Private Limited and Amazon.com, Inc.
observing that the prioritization of safety and social distancing coupled with large
smartphone user-based and low-cost data plans have further galvanized the growth of e-
commerce in tier 2 and tier 3 cities during the pandemic. The pandemic also propelled the
purchase frequency of FMCG products such as fruits, vegetables, pulses, grains,
beverages, cleaning supplies, and cosmetics, thereby creating new growth opportunities
for the Indian e-commerce market.

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 The growing
traction of E-
commerce in India
has led to the
generation of a large
amount of user data,
which is being
leveraged by the
market players to
devise customer-
centric trends and
experiences. Data
management, predictive analytics, machine learning, and artificial intelligence are at the
forefront of driving innovation in the Indian e-commerce space. Trends such as
personalized recommendations, user experience, and customization are possible through
the optimum availability of data. Moreover, the market is also experiencing the
emergency of hyper-local deliveries through Quick Commerce. Quick commerce
typically refers to the rapid delivery of FMCG and consumer electronics products within
a span of 10-30 minutes. Q-commerce is gaining momentum in metro cities while
establishing its foothold in tier 2 cities. The model is based on dark stores situated near
localities to facilitate fast deliveries, thereby augmenting the e-commerce market growth.

 CHALLENGES FACED BY ECOMMERCE INDUSTRY….

Few challenges faced by ecommerce industry are as follows:

 Cyber & Data Security: When it comes to ecommerce, one of the biggest
challenges faced is security breaches. There is a lot of information/data that is
involved while dealing with ecommerce and a technical issue with data can cause
severe damage to the retailer’s daily operations as well as brand image.

 Online Identity Verification: When a shopper visits an ecommerce site, how

would the retailer know if the person is who they say they are? Is the shopper
entering accurate information? Is the shopper genuinely interested in the
ecommerce products? If you do not have the accurate details or information, how
do you proceed? Well, it does become tricky. The solution would be to invest in
online identity verification.

 Attracting the Perfect Customer: Shoppers have a myriad of options to choose

from these days. If they are looking to buy a handbag, they do some thorough
research before finalizing on one. If shoppers have several options, how do you

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 make sure they pick you? How do you go about finding that perfect customer that
wants your product, at your rate and to the places you can ship?

 Customer Experience: Customer experience or user experience is key to a

successful ecommerce website. Shoppers expect a similar if not same experience
as one they would get in a brick and mortar store. The flow of the website, the
segmentation of the website and the retail personalization of products based on
the shopper’s preferences are imperative.

 Customer Loyalty : Here are two facts that show the importance of customer
loyalty:(a) It can cost up to 5 times more to acquire a new customer than retaining
an existing one and (b) the success rate of selling to a current customer is 60-70%
compared to only 5-20% success rate of selling to a new customer. The above two
facts are testament to how important customer retention or loyalty is. Once a
customer makes a purchase or utilizes a service from a retailer, they have to make
sure that they keep this customer for life. But how is this possible?

 Converting Shoppers into Paying Customers : One of the biggest ecommerce

challenges is to convert visitors into paying customers. An ecommerce website
might have a lot of traffic, a lot of clicks and impressions but they aren’t making
the sales they anticipated. What can they do to get more sales?

 Competition & Competitor Analysis : Have you heard of a Jam Experiment?

Well it has quite a controversial conclusion, which is – the less you offer
customers the more likely they are to actually purchase something. A lot of people
these days are fatigued by all the options that are out there. A simple search
(personalized search) for something like headphones will give you thousands of
options – how does one make a choice? From a retailer’s standpoint, how do they
stand out from the crowd? How do they bring shoppers to their website, instead of
buying a similar product from their competitors?

 Price & Shipping : We have all heard of customers that prefer to purchase
products from places that have free shipping. ecommerce giants like Amazon
provide such attractive shipping deals that customers seldom want to look at other
places. How does one bring down costs for shipping?

 Product Return & Refund Policies : According to ComScore, more than 60% of
online shoppers say that they look at a retailer’s return policy before making a
purchase. When an ecommerce site says “no returns or refunds” it makes a
shopper nervous and less likely to trust the retailer. When shopping online,

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 customers want the flexibility of making a mistake that doesn’t cost them.

 Choosing the Right Technology/Partners To Fix Your ecommerce Challenges

: Choosing the right technology or partner will make or break your business. A
retailer’s growth might be stunted because their technology is limiting them or
because they have hired the wrong agency to help them manage their
projects. There are a lot of aspects that need to be in place for a successful retail
business, but a good technology foundation is crucial.

NOW WE WILL BE CONSIDERING “AMAZON” (AN ONLINE

MARKETPLACE FOR SHOPPING) AND DISCUSS FURTHER…

Amazon was founded on July 5, 1994, by Jeff Bezos

in Bellevue, Washington. The company originally
started as an online marketplace for books but gradually
expanded its offerings to include a wide range of
product categories. This diversification led to it being
referred to as "The Everything Store".
Slogan of Amazon is "Work hard, Have fun, Make
history."

More details about Amazon

PATICULARS DETAILS
Product and services Product  Retail Goods:

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  Amazon Devices

 Digital Content

 Amazon Fresh and Whole Food

 Amazon Prime

Service  Amazon Prime Video

 Amazon Music

 Amazon Web Services (AWS)

 Amazon Advertising

 Amazon Business.

 Kindle Direct Publishing (KDP)

 Amazon Mechanical Turk

Pricing and perks  Free Delivery to eligible addresses

 Discounted delivery charges to eligible addresses
 Amazon Pay ICICI Bank Credit Card
 Prime Reading
 Prime Advantage
 Prime Early Access & Exclusive Deals
And so on….
Marketing of product  SEO strategy.
 PPC advertisements and affiliate marketing
 Product diversification.
 Dynamic pricing strategy.
 Optimized UI design.
 Customer loyalty
Technology stack  React
used  Java
 MySQL
 Amazon RDS
 Amazon EC2
 Amazon VPC
And many more
Level of engagement Customer base  Size
 Retention
e-commerce  Product Variety

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 platform  User Experience
Digital content  Prime Video and Music
and services  Kindle and eBooks
Technology  AWS (Amazon web services)
innovation  Alexa and Echo Devices
Advertising  Seller Engagement
and market  Amazon Advertising
place
Physical retail  Amazon Go
presence  Whole Foods
Community  Customer Reviews and Feedback
and corporate  Corporate Social Responsibility
security
SWOT Strengths  Market Leadership
 Customer Centricity
 Technological Innovation
 Diverse Product Offering
 Global Presence.
Weakness  Dependency on Third-Party Sellers
 Regulatory Scrutiny
 Operational Complexity
 Profitability Concerns
Opportunity  Expanding Prime Membership
 Global E-commerce Growth
 Diversification
 Technological Advancements
Threat  Intense Competition
 Changing Consumer Behavior
 Supply Chain Disruptions
 Cyber security Risks

Amazon's online marketplace for shopping is positioned as a leader in the global e-

commerce industry, benefiting from scale, technological process, and customer-centric
strategies. However, it faces significant challenges and must navigate regulatory
complexities, operational hurdles, and competitive pressures to sustain its growth and
leadership position. Strategic investments in technology, customer experience, and
diversification into new sectors present opportunities for Amazon to further strengthen its
market position and mitigate threats.

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MORE ABOUT COMPETITORS OF AMAZON…
The four major competitors of Amazon are as follows:

 FLIPKART : Flipkart is known for pioneering

services such as Cash on Delivery, No Cost EMI
and easy returns, which are customer-centric
innovations that have made online shopping more
accessible and affordable for millions of Indians. In
2024, Flipkart also introduced the Flipkart UPI
handle to further enhance its digital payment
offerings for all customers and further India’s digital
economy vision..
FLIPKART TAGLINES/SLOGANS…
Ab Har Wish Hogi Poori.
Abhi Nahi Toh kabhi Nahi.
If it’s trendy, it’s on Flipkart.
Be trendy, Always.
Itne mein, ITNAAA milega.
The Online Mega Store.
Shoping ka naya Address.
Ab Mehengaai Giregi.

 MYNTRA : As a fashion tech organization, Myntra’s vision is to

“make the world a more stylish, colorful, and happier place.” Our
entire organization strategy is built around that vision, with
different departments coming together to ensure we work towards

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 one common goal - our mission, which is to leverage technology to democratize
fashion and lifestyle to help people look and feel good.
MYNTRA TAGLINE/SLOGAN…
Ab Har Koi Reason Chalega!'

 WALMART: Walmart's low selling

prices help to achieve the mission
statement's "save people money"
component. Consumers, for example, save
money by purchasing items from specific
vendors/retailers rather than purchasing
the same or similar things from mid-scale and high-end retailers. However, it is
unclear if the corporation meets the corporate mission's "live better" component.
WALMART TAGLINE/SLOGAN…
Save people money so they can live better.

 EBAY : EBay create pathways to connect millions of

sellers and buyers in more than 190 markets around the
world. Our technology empowers our customers,
providing everyone the opportunity to grow and thrive —
no matter who they are or where they are in the world.
And the ripple effect of our work creates waves of change for our customers, our
company, our communities and our planet.
EBAY TAGLINE/SLOGAN…
Buy it. Sell it. Love it.

The below chart gives us information about the revenue of Amazon and the competitors
of Amazon for the year ending 2020, 2021 and 2022

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 REVENUE OF THE COMPETITORS
586
1700

1500 511
1300
572.75
1100
469.82
900
REVENUES

700
524
500 386.06
300

100 8.2
7.5
6.1 1.2
1
0.8 10.8
10.42
10.27
Amazon Revenue Flipkart Revenue Walmart Rev- Myntra Revenue eBay Revenue
(Billion USD) (Billion USD) enue (Billion (Billion USD) (Billion USD)
USD)
2020 386.06 6.1 524 0.8 10.27
2021 469.82 7.5 572.75 1 10.42
2022 511 8.2 586 1.2 10.8

COMPETITORS

 PRODUCTS OR SERVICE COMPETITORS OFFER…

COMPETITORS THEIR OFFERINGS…

PRODUCT SERVICE
Flipkart  Fashion  Marketplace Services
 Home Essentials  Customer Services
 Groceries  Payment Options
 Books and Media  Delivery Services
 Beauty and Personal Care  Flipkart Plus
 Jewelry and Watches  Flipkart Assured
 Sporting Goods  Flipkart Health
 Electronics  Flipkart Travel

Myntra  Fashion  Customer Services

 Home & living  Payment Options
 Delivery Services

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  Beauty & Personal care  Myntra Insider
 Myntra Studio
 Personal Styling
 Myntra Fashion Studio

Walmart  Grocery  Online service

 Electronics  Financial service
 Home Goods  Health and wellness
 Clothing  Walmart+
 Pharmacy
 Health & Beauty
 Automotive

Ebay  Electronics  Marketplace services

 Fashion  Customer services
 Home and garden  Payment options
 Motors  Selling tools and
 Toys and hobbies services
 Health and beauties  eBay plus
 Office supplies  International services
 Music, movies and books  Mobile services
 Baby’s and kids

 PRICING AND PERKS COMPETITORS OFFER….

COMPETITORS BENEFIT DETAILS

Flipkart Earn 5% SuperCoins, up to 100 SuperCoins, on
Earn More
every order. Earn bonus 200 SuperCoins on every
SuperCoins
transaction worth Rs 10,000 or more
Extra 5% savings using SuperCoins on all
Extra Savings
purchases
Privilege of
Early access to sales
Early Access
48-hour free delivery for Delhi NCR, Bengaluru,
Mumbai, Kolkata, Ahmadabad, Bhubaneswar,
Speed Coimbatore, Guwahati, Hyderabad, Patna, Pune,
Ranchi (on select pincodes)

Quick Returns Return pickup within 48 hours for Delhi NCR,

Bengaluru, Mumbai, Kolkata, Ahmedabad,

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 Bhubaneswar, Coimbatore, Guwahati,
Hyderabad, Patna, Pune, Ranchi

Cancel/reschedule your flight on Clear trip at ₹1

Clear trip
Extra 3% Off on hotel bookings on Clear trip
Benefits
Customer
Instant access to dedicated customer support
Support
Extra 5% savings using SuperCoins on all
Extra Savings purchases

Myntra Enhanced  Personalization

Customer  User-Friendly Interface
Experience  Customer care
Broad Market  Global Accessibility
Reach  Social Media Integration
 Mobile Commerce
Effective  Real-Time Inventory Tracking
Inventory  Automated Replenishment
Management  Lower Holding Costs
Data-Informed  Predictive Analytics
Decision  Performance metrics
Making  Client insights
Cost Efficiency  Scalability
 Automated Processes
 Lower Overhead
Walmart Your Prices are
Affordable  Everyday Low-Price (EDLP) Promise
 The Repricer Tool
1. Buy Box Price
2. Competitive Price
3. External Price
Your Prices  Strike-Through Pricing & Promotion
Contribute to Flags
Enhanced  Buy Box Status
Visibility
Your Prices Make Walmart Marketplace Work for You with
Must Abide by the “Right Pricing”
Walmart’s
Rules
eBay Improve  By lowering your price with a buyer who
conversion has already shown interest in your
Target product, you may be able to close the sale
interested faster.
buyers Save
time

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 Improve  Send targeted offers directly to shoppers
conversion who have shown interest in your listings.
Target
interested
buyers Save
time
Improve  Send offers automatically to interested
conversion buyers.
Target
interested
buyers Save
time

 HOW COMPETITORS MARKET THEIR PRODUCT…?

Flipkart

 Social Media Marketing Strategy

 Search Engine Marketing (SEM) Strategy
 Affiliate Marketing Strategy
 Mobile App Marketing Strategy
 Content Marketing Strategy
 Retargeting and Remarketing

Myntra
 Email and SMS Marketing
 Social
 Media Marketing
 Advertisement Strategy
 Content marketing
 Myntra Studio
 Sponsorships And Partnerships
 Brand Ambassadors

Walmart
 Discount throughout the year
 Advertisement match
 Walmart advertising strategy
 Coupons
 Free shipping Policy

EBay
 Online advertisements
 Websites
 Billboards

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  Advertisements

 TECHNOLOGY STACK USED BY COMPETITORS…

Flipkart

 Frontend Technologies:
o React.js
o React NativeBackend Infrastructure
 Backend infrastructure:
o Microservices Architecture
o Java and Spring BootData
 Infrastructure and Cloud Services:
o Amazon Web Services (AWS)
o Docker and Kubernetes
 Machine Learning and AI:
o TensorFlow and PyTorch

Myntra
 Business intelligence and analytics:
o Adobe analytics
o PyTorch
o Qlikview
 Programming language and framework:
o My SQL
o No SQL
 Platform and storage:
o Altreyx
o Amazon web services (AWS)
Walmart

 JavaScript
 Python
 Node.js
 React

eBay
 Javascript
 Node.js
 Java
 ESG

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  LEVEL OF ENGAGEMENT ON OUR COMPETITORS
CONTENT..
When assessing the level of engagement on platforms like Flipkart, Myntra, Walmart,
and eBay, you're generally looking at how users interact with these platforms. Here’s a
brief overview of engagement for each:

COMPETITORS USERBASE ENGAGEMENT FEATURES

Flipkart As one of India’s High, with frequent Push notifications,
largest e-commerce interactions in the personalized
platforms, Flipkart form of app usage, recommendations,
has a massive user purchases, and and frequent
base. participation in sales promotions drive
events like Big high user
Billion Days. engagement.

Myntra Myntra is a major High, with users Personalized style

player in the online frequently engaging recommendations,
fashion and lifestyle through app-based seasonal sales, and
space in India. browsing, sales fashion-related
events, and fashion content contribute to
recommendations. strong engagement.

Walmart Walmart serves a Moderate to high, A mix of online

global audience depending on shopping, grocery
with both physical region. In the U.S., services, and
stores and an online Walmart's online integrated loyalty
presence. engagement is programs help keep
robust, with regular users engaged.
app usage, online
shopping, and
grocery pickup
services.

eBay eBay has a global Moderate to high. Auctions,

presence with a Users are often buyer/seller
strong focus on engaged through feedback systems,
auctions and bidding, selling, and and a diverse range
second-hand goods buying across of products
various categories. contribute to user
engagement.

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Engagement Metrics: To gauge engagement more precisely, you might look at metrics
like:

 Active User Rates: How often users return to the platform.

 Session Duration: How long users spend on the site or app.
 Conversion Rates: The percentage of users who make a purchase.
 User Retention: How well the platform retains users over time.

Each platform’s engagement can vary based on its target audience, features, and market
strategies.

 PERFORMING SWOT ANALYSIS OF THE COMPITITORS…

FLIPKART Strengths  Strong market presence in India, with a large

customer base.
 Diverse product range including electronics,
fashion, and groceries.
 Backing from Walmart provides financial stability
and resources.

Weakness  Intense competition in the Indian e-commerce

market, particularly from Amazon.
 Logistics and infrastructure challenges in certain
regions.
 Dependency on external funding for growth and
expansion.

Opportunity  Growing e-commerce market in India, especially in

tier-II and tier-III cities.
 Expansion into new product categories and
services (like Flipkart Supermart for groceries).
 Leveraging Walmart's global network for
international expansion.

Threat  Regulatory challenges and changing policies in

India.
 Aggressive competition from Amazon, Reliance
Retail, and other local players.
 Rapidly changing consumer preferences and
technological advancements.

MYNTRA Strengths  Strong brand recognition in the Indian fashion e-

commerce segment.
 Extensive collection of fashion brands and
exclusive collections.

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  Integration with Flipkart's logistics and customer
base.

Weakness  Heavy reliance on discounts and promotions to

drive sales.
 Vulnerability to changes in fashion trends and
consumer preferences.
 Limited international presence compared to global
fashion giants.

Opportunity  Increasing adoption of online shopping for fashion

in India.
 Launching new private label brands and exclusive
collections.
 Partnerships with global fashion brands for
exclusive collaborations.

Threat  Intense competition from Amazon Fashion and

other local fashion e-commerce platforms.
 Economic downturn affecting discretionary
spending on fashion.
 Counterfeit and copycat products impacting brand
reputation.

WALMART Strengths  Global retail leadership with extensive supply

chain and logistics capabilities.
 Strong financial position and ability to invest in
technology and innovation.
 Diversified revenue streams across different
markets and sectors.

Weakness  Online retailing expertise still developing

compared to Amazon.
 Vulnerability to economic downturns affecting
consumer spending.
 Regulatory challenges and scrutiny in various
international markets.

Opportunity  Expanding e-commerce market globally, especially

in emerging economies.
 Leveraging data analytics and AI to enhance
customer experience and operational efficiency.
 Acquiring or partnering with tech startups to
enhance digital capabilities.

Threat  Intense competition from Amazon in both retail

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 and cloud computing sectors.
 Changing consumer preferences towards online
shopping and digital services.
 Regulatory challenges and antitrust scrutiny in
multiple countries.
EBAY Strengths  Established global marketplace with a diverse
range of products.
 Strong brand recognition and trust among
consumers and sellers.
 Focus on unique, rare, and collectible items sets it
apart from competitors.

Weakness  Declining market share in the face of competition

from Amazon, Alibaba, and others.
 Perception of higher fees compared to other online
marketplaces.
 Limited growth in certain product categories
compared to broader e-commerce platforms.

Opportunity  Expanding into emerging markets with growing

internet penetration.
 Enhancing mobile and digital payment capabilities
to improve user experience.
 Partnering with small businesses and artisans to
offer unique products.

Threat  Intense competition from larger e-commerce

platforms offering broader product ranges.
 Economic downturns affecting consumer spending
on discretionary items.
 Regulatory challenges and tax policies impacting
cross-border e-commerce transactions.

Each company faces unique challenges and opportunities based on their market position,
operational strengths, and external market conditions.

REFERENCES…

 Investopedia
 Wikipedia
 Flipkart corporate website
 About Amazon
 About us – Myntra
 About Walmart

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 eBay
 Google
 ChatGPT
 Grand View Research
 Vue.ai
 ShareStack

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