e commerce industry overview -bme-grp 13

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Jane Gloria pinto-15050 Jees Jose-15051 Leslie Leo Menezes – 15064 Minnumol-15069 E Commerce Industry Overview 1

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Page 1: E Commerce Industry Overview -BME-Grp 13

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• Jane Gloria pinto-15050• Jees Jose-15051

• Leslie Leo Menezes – 15064 • Minnumol-15069

E Commerce Industry Overview

Page 2: E Commerce Industry Overview -BME-Grp 13

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• Ex- Make My Trip, Book my show

Online Ticketing (50%)

• Online Retail (35%)• Online Marketplace (65%)

E Retail (43%)

• Ex- Groupon India, Coupon Dunia

Online Deals (1%)

• Ex- zomato, Caewale

Online Portals

E Commerce Industry in India

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Requirements for operating an e-Commerce website in India

• locally registered entity• an account at an NEFT-enabled branch of an Indian bank• to comply with the RBI's norm that companies enabling electronic/ online payments

FDI in e-Commerce • FDI in e-Commerce companies is not permitted

• Norms to source minimum 30% of the products from Indian manufacturers in India.• Government has planned to prepare a comprehensive FDI policy

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National Broadband Plan• Aims to provide broadband connectivity by 2014• Minimum download speed of 2 Mbps and at least 100 Mbps on

demand.• Under the 'Digital India program', free-high speed Wi-Fi in 2500 cities• National Telecom Plan (NTP) aims to boost broadband-on-demand

services• 600 mn broadband connections by 2020 from 164 million as on

March 2013

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HOW DOES E-COMMERCE WORK?

• The front end website

1. Web hosting

2. Interface

3. Product catalogue

4. Shopping cart

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HOW DOES E-COMMERCE WORK?

• Back end application1. Placing order2. Downloading order in OMS3. Inventory allocation4. Pick up5. Packaging and labelling the order6. Shipment7. Delivery and customer care

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Logistics service provider

Domestic Logistics service providers

•40+•80+•120+

Global logistics service providers

•70+•100+•150+

In-house logistic service providers

•20+•50+•70+

Intra-cityMetros others

Delivery charges Rs/Package

Emerging trends Chhotu

E-com Express pvt.ltd

Dotzot

Delhivery

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• most customers opt for cash-on-delivery (COD) •credit card penetration is low.

Payment options

Major issues related to payment•High failure and downtime rates.•Unavailability of transaction reversal option•COD can drive working capital requirements.•product returns

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Payment gateways

•Online payment gateways are a hassle-free mechanism to

collect payments for every transaction on an online retail website.

•Factors -selecting a payment gateway-- security, support, setup cost,

transaction costs, maintenance cost, integration flexibility

•Micro-payment-the user has the flexibility to pay through

mobile/ smartphones.eg: Yippster Technologies

•International payment gateways, e.g. paypal- rarely used in

Indian e-Commerce.

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•Should have an account at a NEFT-enabled.•Should have state-of-the-art security and risk mitigation techniques.•should take care of physical and data center security, OS and application security.•level of customization the gateway.•maintain cash reserves for risk mitigation.•Gateways with the least downtime and the quickest response time should be preferred.•Websites should be aware of the hidden costs.•provide a 24*7 customer support.

Factors to consider before identifying payment gateways