E-COMMERCE

Study Of E-commerce In India

Abstract
Internet plays an important role in our daily life. We use internet daily almost for every single
work. Before e-commerce buying and selling were done without internet physically in the
markets but after the arrival of e-commerce in India our life has become more convenient
because of its number of advantages. Online shopping is a part of e-commerce which is done
mostly by the users due to e-commerce websites in India which allows us to buy and sell the
products according to our choice at affordable price. E-commerce website has a lot of impacts
on different markets and retailers. In this paper we will discuss about the different markets and
retailers and impacts of e-commerce on them.

CHAPTER-1
1. Introduction
E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or
the transmitting of funds or data, over an electronic network, primarily the internet. Today in
the fast growing world E-commerce business has growing in a rapid way. Many people are
attracted towards online business. It consists of buying and selling of goods and services over
computer network or internet through which transactions or terms of sale are performed
electronically.

So E-commerce means buying and selling products online. Let us say you have products to
sell. So you simply start a website and put the product images along with the cost on your
website. Customers who visit your site purchase those products using their credit/debit card.
Nowadays to make payment transactions more simple, cash on delivery is being offered. In
cash on delivery you can pay the money after receiving the product from the vendor.( Usually
products are sent through couriers.)
 2. Objective of the study

The paper has following objectives:

• To explain the concept of E-commerce

• To describe the conceptual framework of e-commerce
• To know the growth of e-commerce in India
• To know the market research of e-commerce

3. Methodology of the study

The methodology for this research paper is based on secondary research, which is based on
different journals, books and web-site resources. Secondary research also includes international
magazines which highlights the issues of adoption of e-commerce. The information is collected
from various sources in order to make it more concrete. The nature of the study mentioned here
is descriptive.

4. Scope of the study

The main concern of my study is to have a knowledge and an idea about e-commerce business
in India. In this paper I am going to give you a brief explanation of e-commerce and it’s
conceptual framework in India. I am also give a short note or report on growth of e-commerce
business in India. I did a descriptive study about various trust building factors in e-commerce
industry. This paper help you to know why e-commerce is important for growth of any country.
So the main scope of this study is to study the present situation of e-commerce businesses.

5. Limitation of the study

There is no activity that can be completed without any limitation. the main limitations faced
during the preparation of this seminar paper on “Study of E-commerce in India” is as follows:-

• Time available for completion of the project very short; hence much information could
not undertake.
• The information collected from secondary data. some of the information might be
wrong.
• A too wide area of investigation is impractical.
• Criteria provided like number of pages is very less.
 CHAPTER-2
1. Discussion
E-commerce stands for electronic commerce. E-Commerce refers to the exchange of goods and
services over the Internet. All major retail brands have an online presence, and many brands
have no associated bricks and mortar presence. However, e-Commerce also applies to business
to business transactions, for Example, between manufacturers and suppliers or distributors.

Electronic commerce or e-commerce consists primarily of the distributing, buying, selling,

marketing, and servicing of products or services over electronic systems such as the Internet
and other computer networks. The information technology industry might see it as an electronic
business application aimed at commercial transactions. It can involve electronic funds transfer,
supply chain management, e-marketing, online marketing, online transaction processing,
electronic data interchange (EDI), automated inventory management systems, and automated
data collection systems. It typically uses electronic communications technology such as the
Internet, extranets, e-mail, e-books, databases, and mobile phones.

2. ANALYSIS

The Indian e-commerce industry has been on an upward growth trajectory and is expected to
surpass the US to become the second largest e-commerce market in the world by 2034. India’s
e-commerce industry is expected to grow at a Compound Annual Growth Rate (CAGR) of 30
per cent to reach US$ 200 billion by 2026. India’s internet economy is expected to double from
US$125 billion as of April 2017 to US$ 250 billion by 2020, majorly backed by ecommerce.

Much growth of the industry has been triggered by increasing internet and smartphone
penetration. Internet penetration in India grew from just 4 per cent in 2007 to 34.08 per cent in
2016, registering a direct increase of 89 per cent in 2016 over 2007. The number of internet
users in India is expected to increase at a CAGR of 15.6 per cent from 450 million as of June
2017 to 700 million by 2020.
• The e-commerce retail market is estimated to be worth US$ 12 billion in gross
merchandise value (GMV) terms as of 2016.
• Electronics is currently the largest segment in e-commerce in India with a share of 47
per cent and is expected to grow at a CAGR of 43 per cent by 2020.
• Currently, there are 1-1.2 million transactions per day in e-commerce retailing.
Conceptual framework of E-commerce in India
Today E-commerce is a byword in Indian society and it has become an integral part of our
daily life. There are websites providing any number of goods and services. Then there are those,
which provide a specific product along with its allied service.

India has an internet users base of about 450 million as of July 2017, 40% of the population.
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 authorised distributors and e-commerce
offerings. In 2015, the largest e-commerce companies in India were Flipkart, Snapdeal, Amazon India,
and Paytm

3.1 Multi-Product E-Commerce

Some Internet portals provide almost all categories of goods and services in a single site; hence,
they are targeting buyers of every possible product and service.
The most popular examples are

• www.indiaplaza.com,
• www.thebestofindia.com,
• www.khoj.com,
• www.sify.com,
• www.rediff.com,
• www.indiatimes.com and so on.

These Indian 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
 • Consumer electronics
• Household appliances
• Jewellery
• Audio/Video entertainment goods
• Gift articles
• Real estate and services
• Employment
• Travel tickets
• Matrimony
• Pets…and more.

3.2 single product e-commerce

Some Indian portals/websites deal in a specialized field, for example:

➢ Automobiles:

Examples are: http://www.indiacar.com/ and http://www.automartindia.com/.

On these sites we can buy and sell four-wheelers and two-wheelers, new as well as used
vehicles, online.

Some of the services they provide are:

• Car research and reviews

• Online evaluation
• Technical specifications
• Vehicle Insurance
• Vehicle Finance
• Dealer Locator
• Regional Transport Office regulations
• Expert speak. And more.

➢ Stocks and shares and e-commerce

In India today, we can even deal in stocks and shares through e-commerce. Some of the sites
are: http://www.equitymaster.com; http://www.5paisa.com.

Some of the services offered to registered members are:

• Online buying/dealing of stocks and shares;
• Market analysis and research
• Company information.
• Comparison of companies.
• Research on Equity and Mutual Funds.
 • Tracking Market Trends.
• 24-Hour helpdesk….and more.

➢ Real estate and E-commerce:

Portals like http://www.indiaproperties.com/ facilitate online dealing in real estate. They offer
either outright purchase or lease of a property through their portal. They provide information
on new properties as well as properties for resale. One can deal directly with developers or
builders or through consultants and brokers.

Allied services:

• Housing Finance
• Insurance companies
• Architects & Interior Designers
• NRI services
• Property Management Consultants
• Security & Maintenance Services and more.

➢ Gifts and E-commerce:

In the bygone days, one had to plan what to gift a loved one, trudge across to your favourite
shop, and browse for hours before purchasing a gift. Today there are specific Indian websites
making the act of gifting quick and easy to suit ones lifestyle. One such site is
http://www.indiangiftsportal.com/.

The gifts are categorized as:

• Collectibles like paintings and sculptures

• Luxury items like leather goods, perfumes, jewellery boxes, etc.
• Household curios and carpets, etc.
• Toys & games
• Chocolates
• Flowers.

➢ Matrimony and E-commerce:

It is said that marriages are made in heaven, but in the world of E-commerce they are made
on marriage portals like http://www.jeevansathi.com/ (meaning life-partner.com in Hindi)
and http://www.shaadi.com/ (meaning marriage.com in Hindi)

Allied services for registered member are -:

• Astrological services ,Legal issues information on Customs, health and Beauty, fashion
&style, wedding planners etc.
3.3 Facilitators of e-commerce
❖ Information directory
The products and services are listed with appropriate sub-headings to make it easy for a serious
information-seeker to find what he wants. Portals like http://www.trade-india.com/ and
http://trade.indiamart.com/ maintain directories giving trade details on almost any topic.

❖ Bank
Bank is very important for existence of e-commerce in every country.

➢ Net banking / phone banking

This is an online banking facility available for savings account holders as well as current
account holders. Some of the special Net banking services are:

• Demat accounts for sale/purchase of stocks and shares.

• Foreign Exchange services.
• Direct/Instant payment of bills on the account-holder’s behalf.
• Financial Planning & advice.
• Electronics Funds Transfer.
• Loans to account-holders.
• NRI services…and more.

➢ Credit / Debit card

Banks facilitate E-commerce by providing the most vital trade instrument, namely the Credit
or Debit Card, without which E-commerce would be impossible. Some of the major Indian
players in this field are: http://www.hdfcbank.com/, http://www.icicibank.com/ and
http://www.statebankofindia.com/.

2.4 Study of E-commerce in India

We live in a world where we communicate with each other over mobile phones than we do
face to face. For keeping in touch, shopping, hailing a cab, or ordering food… everything
begins and ends with that smartphone.
And it is only getting bigger. According to a new study by Forrester Research, approximately
a fifth of total retail sales will take place online by 2021 in Asia Pacific, with 78 percent of that
coming from mobile, up from 63 percent in 2016. The study adds that online retail via mobile
will grow at a CAGR of 15.6 percent, to reach $1 trillion in 2020, up from $539 billion in 2016.

With $681 billion in online retail sales in 2016, China is the largest market for e-commerce
globally, followed by the US, and the fastest growing one is India.

3.4.1 Market research 2017

According to reports published by International Monetary Fund (IMF) and Central Statistics
Office (CSO), India is among the fastest growing economies of the world. Among several
factors, a conscious patronization of online commerce, and an emergence of retail as a
dominant market segment have contributed to the unprecedented growth of e-commerce in
India. For the financial year 2016-17, e-commerce sales reached the US $16 billion with a
projection of a seven fold growth within the next two fiscals as estimated by Morgan Stanley.
By 2020 online commerce sales is expected to cross $120 billion.

The three principal driving factors for this growth in e-commerce sector of India are:

• Participation of niche companies in online trading

• Unmatched FDI (foreign direct investment)
• Uniform GST (Goods and Services Tax)

Participation of niche companies

With the increase in awareness about the benefits of online trading, there has been a significant
rise in investment in e-commerce business. Hand in hand with offline trading, many established
business houses have setup online transaction channels. Online retailing is the ‘in-thing’ in
today’s commerce. Every other day a new company is being set in the online retail segment.

Specialization and customization are the underlining features of online trading. e-commerce
companies are specializing in exclusive items and have consciously moved away from the ‘one
for all’ concept. Every new company is focusing on a definite item or targeting a particular
demographic segment. So instead of addressing universally, it is better to concentrate on a
single area and execute it to your best ability. Consumers prefer this kind of preferential
treatment and personalized attention.

India, being a land full of diversity offers ample scope for new companies to join in this e-
commerce business tirade. Business opportunities are limitless considering the innumerable
clothing, food, and cultural habits of Indian communities.

Role of FDI
Foreign direct investments (FDIs) till lately was not allowed in e-commerce for the single brand
or multi-brand retail companies. It was only allowed for B2B businesses. Now, FDI is allowed
in cases of wholesale trading or in cases where involvement is limited to use of technology
platform. The ever-expanding Indian e-commerce market has attracted companies from Europe
and United States who are joining as conglomerates. Though FDI has been successful in
lending variety to online market of India, their full participation is limited by government laws.

Implementation of GST
A uniform taxation structure, which GST(Goods and Services Tax) purports to achieve would
contribute to the success of e-commerce business in India. Online business is carried out pan-
India, and a uniform tax structure makes calculations easier and uniform. Sa me tax for same
product or service across Indian Territory would certainly help in maintaining price uniformity.
For online business operators, differential tax structure was a deterrent.

Inclusion of food and grocery in online retailing

Earlier food and grocery were never thought of as items for online trading. However, with the
change of working habits, and consumers opting for adaptability and convenience, there are
now innumerable small and large e-commerce companies selling provisions and food items.

Indian e-commerce industry is in a position to sustain itself as a viable business opportunity

not only for established names but even for start-ups.
 Chapter-3
1. FINDING
Among the top findings of the survey, as put forth by CouponRani, are the following:

• Convenience was listed as the top reason for shopping online by 74% of the
respondents, and at the same level were discounts and coupons. This is good news for
e-tailors, as the value proposition for online shopping is clear in the minds of shoppers.
• 27% of our respondents said they purchase majority of their goods online. We believe
this bodes well for e-tailors as online shopping is gaining acceptance.
• 95% of respondents look for discounts and coupons before purchasing.
• Coupon/ deal sites, Google search, and social media were the top 3 places for shoppers
to find coupons and offers.
• In case of marketing management in e-commerce attractive presentation of the products
on the website and one operator on the company computer are enough to carry out the
transaction of E-commerce and they are sufficient to effect the sales.
• In the job of controlling internet orders are to be processed properly and only after
confirmation of the receipt of the cash goods are to be dispatched correctly in e -
commerce.

2. SUGGESTION
• Management should improve its knowledge about E-commerce process.
• To give the training and information to customers for E-commerce process and
operating an E - commerce site.
• To develop employee's managements skills.
• To improve the co-ordination of producers, dealers and customers.
• To give the quick online support to customers.
• To understand the customers proper behaviour, habits and expectations and then
produce and develop the products.
• The similar study can be undertaken in the other companies or more companies.
• The research can be done with a longer period.
• Specific strategies and programmes should be undertaken in order to create confidence
in common people so that they can freely make use of E-commerce.
 3. CONCLUSION
After careful observation, it has come to my conclusion that e-commerce has undeniably
become an important part of our society. The world wide web is and will have a large part in
our daily lives. Online shopping is a new experience and has greatly impacted the lives of
consumers in its short time of existence. It is expected to grow constantly in years to come with
advancements in technology. Online shopping has made consumers more effective and
efficient in their shopping behaviour and has driven businesses to a new level, forcing many to
make the necessary adjustments and changes to reach the new market of knowledgeable
consumers.

• E-commerce charges entire procedure of marketing management because the attractive

presentation of the products on the website and one operator on the company computer
is enough to carry on the transaction and he is sufficient to effect sales.
• In information management receiving the feedback, suggestions, corrections,
complaints are to be processed and proper forwarding of this information is to be
undertaken for its accurate interpretation and submitting it for the decision making.
• Paper records are completely eliminated from office management in E-commerce
because every transaction is recorded in the computer.
• In the organization a completely new technique of electronic i.e. internet is to be
introduced.
• It has changed the entire transaction procedure in banking system, cheque system and
credit system in E-commerce.

4. BIBLIOGRAPHY
• http://searchcio.techtarget.com
• http://www.slideshare.net
• https://wikipedia.org
• https://www.kartrocket.com/blog
• https://www.quora.com
• https://yourstory.com