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Introduction

Ever since internet has been introduced to the world, it has made a huge impact on people;
business is one of such example where internet has made the difference. In July 1995
Amazon.com started selling books online and the response they received was unexpected as in
short time span books sold online in all 50 states of USA and 45 countries. Amazon presently
offers music, movies, toys; electronics and home equipment, there are seven different
international websites of Amazon with distributed customer service centres in seven countries
and over 17,000 people work in Amazon worldwide. Today there are over 100 popular e-
commerce websites are providing online services worldwide. An e-commerce opens the global
market to the customer, it helps the customer by providing huge options while buying a product
or a service, the online searching and comparing facilities enables customer to select right
product or service, another major advantage of e-commerce is that it is 24x7 available to the
customer the customer can shop almost anything within his/her comfort zone just by sitting at
home, office, during travel or almost from any place at any time.

E-commerce is trading of services and products with the help of internet. E-commerce
introduced in the end of 70s and became popular during the 90s in western countries like
USA and UK. E-commerce introduced new possibilities in trading and attracted attention
of many traders.
E-commerce offers products and services through websites, a customer simply has to visit an e-
commerce website and browse various offering through browser catalogue, a customer can
select multiple offerings and can add them to the shopping cart, once the shopping is done the
customer can checkout and proceed to payment section where various online payment options
are available like internet banking, credit card, debit card etc. Once payment is done the
customer is notified about the order and order is shipped on the postal address provided by the
customer.
2. COMPANY PROFILE
2.1 Flipkart:
2.1.1 History and growth of Flipkart
It is an e-Commerce company founded in the year 2007, by Mr. Sachin Bansal and Binny
Bansal both alumni of the Indian Institute of Technology, Delhi. They had been working for
Amazon.com previously. It operates exclusively in India, where it is headquartered in
Bangalore, Karnataka. It is registered in Singapore, and owned by a Singapore based holding
company. Flipkart has launched its own product range under the name “DigiFlip”, Flipkart
also recently launched its own range of personal healthcare and home appliances under the
brand “Citron”. During its initial years, Flipkart 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, Flipkart 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, Flipkart sells
goods in India through a company called WS Retail. Other third-party sellers or companies
can also sell goods through the Flipkart platform. Flipkart now employs more than 15000
people. Flipkart allows payment methods such as cash on delivery, credit or debit card
transactions, net banking, e-gift voucher and card swipe on delivery. Flipkart is presently one
of the largest online retailers in India, present across more than 14 products categories & with
a reach in around 150 cities. Flipkart is currently a 10,000-member strong team, with 3000
sellers on its platform and delivering 5 million shipments per month. It made its presence felt
in online retailing by offering path breaking services like Cash on Delivery (COD), 30 Day
replacement Guarantee, EMI options, Flipkart mobile app, etc.

2.1.2 EXCLUSIVE PRODUCTS

Motorola mobility, previously owned by google but then sold to Lenovo, in an exclusive tie
up with Flipkart launched its budget smart phone moto gin India on 5 February 2014 more
than20,000 units were sold within hours of launch on Flipkart after this Flipkart was looking
for along term tie up with Motorola mobility. They also launched their android smart phone,
the Motox, on 19 march 2014. Flipkart later sold the moto e, cheaper than moto g, from
13 may 2014. The sale of high-end smart phone xiaomi mi3 produced by xiaomi tech was
launched in India on an exclusive tie-up with Flipkart. 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 preceded on
pre-registration mode where more than 150,000 buyers booked for the 5 august 2014 sale. This
got
sold off in less than 2seconds. Following this xiaomi tech sold 20,000 units in the next sale
on 12

august 2014.On 2 September 2014 Flipkart held a flash sale of the xiaomi redmi 1s budget
android smart phone 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
Flipkart; 50,000 units sold in 6seconds on 2 December 2014. In July 2014 Flipkart launched
its own set of tablet, mobile phones& tablet. The first among these series of tablet phones was
digiflip pro xt 712 tablet. In july2014 Flipkart launched its first networking router, under its
own brand name named digiflipwr001 300 mbit/s wireless n routers. In September 2014
Flipkart launched its in-house home appliances and personal healthcare brand citron. The label
includes a wide range of cooking utilities and grooming products.

2.1.3 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 Flipkart, 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 CNBC TV 18's 'India business
leader awards 2012' (ibla). Flipkart.com- got nominated for India mart leaders of tomorrow
awards 2011.

2.1.4 Failure in Music Industry


In October and November 2011, Flipkart acquired the websites mime360.com and
chakpak.com. Later, in February 2012, the company revealed its new flyte digital music store.
Flute, 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.
2.1.5 Marketing strategy
Flipkart has been mostly used marketed by word of mouth. Customer satisfaction has been
their best market medium. Flipkart very wisely used SEO (Search Engine Optimization) &
Google Ad-words as the marketing tools to have a far reach in the online world. All in all to
create a great customer experience. Kids were used to create the adverts to send out the
message -if a kid can do it, we can also do it.

2.1.6 Brand Awareness


Brand Awareness is key success factor in the market. Flipkart is the industry leading with
80% market share having a very high Brand Awareness and lowest price.

2.1.7 Brand loyalty


Excellent user experience on the e-commerce website in term of usability speed clarity will
enhance the loyalty of existing customer and move a step ahead of brand awareness towards
customer retention.
2.2 Amazon:

2.2.1 History and Growth of Amazon

Amazon.com, founded by Jeff Bezos in 1994, is an American electronic commerce


company with headquarters in Seattle, Washington. Jeff Bezos incorporated the company
as “Cadabra” on July 5, 1994, and the site went online as Amazon.com in 1995. Bezos
changed the name cadabra.com to amazon.com because it sounded too much like cadaver.
Additionally, a name beginning with “A” was preferential due to the probability it would
occur at the top of any list that was alphabetized. It 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 Jewellery. 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 Sri Lanka 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 Flipkart too had announced to invest$1 Billion.

2.2.2 EXCLUSIVE PRODUCTS


The Amazon kindle is a series of readers designed and marketed byAmazon.com. Amazon
kindle devices enable users to browse, buy, download and read e-
books, newspapers, magazine sand 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 Flipkart. Moto
g (gen 4) and moto g plus (gen 4) will be available exclusively on Amazon.

2.2.3 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 com score data, at 30 million visitors. Amazon active customers have gone
up 230 per cent year on year. The awards were conferred at e-tailing 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.in.

2.2.4 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.
RESEARCH METHODOLOGY
Objectives

To understand and estimate the consumer perception and factors affecting their
behaviour for choosing e-commerce sites.
To understand tactics and methods those are used by e-commerce players to grab the
customers in India.
To know how consumers are evaluating e-commerce sites for their purchases.

Research Design

Exploratory Research

Exploratory research conducted for a problem that has not been clearly defined.
Exploratory research helps determine the best research design, data collection method and
selection of subjects. It should draw definitive conclusions only with extreme caution.
Exploratory research often relies on secondary research such as reviewing available
literature and/or data, or qualitative approaches such as informal discussions with
consumers, employees, management or competitors, and more formal approaches through
in-depth interviews, focus group sand projective methods.

Descriptive Research
The objective of descriptive research is to describe the characteristics of various aspects,
such as the market potential for a product/company or the demographics and attitudes of
consumers who buy the product with the help of primary data collected.

Data Collection

The goal for all data collection is to capture quality evidence that then translates to
rich data analysis and allows the building of a convincing and credible answer to
questions that have been posed.
Primary Data
Primary data was collected from various people and their opinion and information for the
specific purposes of study helped to run the analysis. In essence, the questions asked were
tailored to elicit the data that will help for study. The data was collected through
questionnaire to understand their experience and preference towards their loyal company.

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