ecommerce in india
TRANSCRIPT
E-Commerce industry
Study Objective
To learn about the existing trends in e-commerce industry today
To analyse in depth the benefits and limitations of online transactions of products
To examine the online shopping sites prevalent in Coimbatore such as the
mall.coimbatore which is an online shopping store and personal buying assistant in
Coimbatore
To observe the future of the industry and recommend improvement ideas
Need for selecting the ecommerce Industry
India, one of the fastest growing economies presents a world of opportunities to
entrepreneurs, investors, and researchers with an interest in the global economy. India’s e-
Commerce industry is on the growth curve and experiencing a spurt in growth. With this
increased interest comes a surge in demand for facts, trends and indicators. Highly
concentrated urban areas with very high literacy rates, a vast rural population with fast
increasing literacy rate, a rapidly growing internet user base, technology advancement and
adoption and such other factors make India a dream destination for ecommerce players. E-
commerce combines web technology with business economics. As of the last 10 years, online
visibility for such online enterprises now heavily rely on the relationship between the own
online sales platform and Search Engines for improved traffic consisting of presumable
customers with the intent of acquiring products or services related to the customers’ needs. In
2008 an Internet behavioural analysis showed that over 90% percent of internet users make
use of search engines at least once a week, stating that online visibility through the use of
search engines now is a crucial business marketing aspect.
Logo of e commerce
The eCommerce industry continues to grow at a rapid pace translating the rules of traditional
retailing and enabling merchants to tap into customer segments, demographics and regions
that were difficult to access through the traditional retailing methods. As the rapid Internet
Penetration, the widening network of online payment solutions, the progressively wider
acceptance of online commerce and the maturity in fulfilment solutions provide a robust
backbone for wider and rapid adoption of eCommerce, merchants today are also faced with
some of the most unique challenges retailing has ever witnessed. ECommerce business
houses small or big, generic or specialized, today need to deal with fierce global competition
right at the doorstep. Rapid loss of differentiation, extremely price sensitive fickle customer
loyalty, evolving global regulations, short product lifecycles and dropping margins are just
some of the significant business challenges that eCommerce business today need to deal with
upfront. These challenges require merchants to develop unique strategies to liaison with
partners & service providers and adopt radical strategies for eMarketing, Internet
Advertisement, Brand identity management, pricing, fulfilment, payments, channel
convergence, customer behaviour analysis & personalization and an online as well as offline
shopping experience besides core commerce that is beyond the realms of traditional
eCommerce.
The Five Different Types of E-Commerce
E-commerce is the process of buying and selling of various products and services by
businesses through the Internet. It deals various kind of business concern, from retail site of
the consumer, which includes auction. The main focus is to concentrate on business
substitutes involving goods and services between various corporations.
E-commerce is the purpose of Internet and the web to Conduct business but when we
concentrate on commercial deals among organizations and individuals demanding selective
information systems under the guarantee of the firm it accepts the form of e-business.
Nowadays, the word ‘e’ is hitting momentum. If you’re looking to get into this business, one
of the fore most things you have to have is a Virtual Private Cloud Hosting keeping the traffic
in mind and respecting customer’s valuable time.
There are primarily five types of e-commerce models:
Business to Consumer (B2C)
B2C stands for Business to Consumer as the name suggests, it is the model taking businesses
and consumers interaction. Online business sells to individuals. The basic concept of this
model is to sell the product online to the consumers. B2C is the indirect trade between the
company and consumers. It provides direct selling through online. For example: if you want
to sell goods and services to customer so that anybody can purchase any products directly
from supplier’s website. Directly interact with the customers is the main difference with other
business model. As B2B it manages directly relationship with consumers, B2C supply chains
normally deal with business that are related to the customer.
Business to Business (B2B)
B2B stands for Business to Business. It consists of largest form of Ecommerce. This model
defines that Buyer and seller are two different entities. It is similar to manufacturer issuing
goods to the retailer or wholesaler. Dell deals computers and other associated accessories
online but it is does not make up all those products. So, in govern to deal those products, first
step is to purchases them from unlike businesses i.e. the producers of those products.
“It is one of the cost effective way to sell out product throughout the world”
Benefits:
Encourage your businesses online
Products import and export
Determine buyers and suppliers
Position trade guides
Consumer to Consumer (C2C)
C2C stands for Consumer to Consumer. It helps the online dealing of goods or services
among people. Though there is no major parties needed but the parties will not fulfil the
transactions without the program which is supplied by the online market dealer such as eBay.
Peer to Peer (P2P)
It is a discipline that deal itself which assists people to instantly shares related computer files
and computer sources without having to interact with central web server. If you are going to
implement this model, both sides demand to install the expected software so that they could
able to convey on the mutual platform. This kind of e-commerce has very low revenue
propagation as from the starting it has been tended to the release of use due to which it
sometimes caught involved in cyber laws.
M-Commerce
It deals with conducting the transactions with the help of mobile. The mobile device
consumers can interact with each other and can lead the business. Mobile Commerce involves
the change of ownership or rights to utilize goods and related services.
Fig Overview of e-commerce industry
Report on the Industry
This report provides a brief overview of the ecommerce in India with information on the
market characteristics, the various ecommerce models, key players and the future potential of
the e-commerce industry.
Fig. e-commerce process
E-Commerce in India: Overview and Reasons for Growth
The Online e-commerce Industry is very well developed and is booming largely due to the
Internet-savvy urban population. The segments are categorized under travel industry and
online non-travel industry, include e-Tailing (online retail), online shopping, online
classifieds and Digital Downloads are still in a nascent stage). Though eCommerce took a
beating in the dotcom bust, it seems set to grow globally. The global revival of eCommerce is
having a ripple effect in India too where the B2B (Business to Business), B2C (Business to
Consumer), C2C (Consumer to Consumer), G2B (Government to Business) and G2C
(Government to Citizens) segments are showing rapidly increasing activity over the past few
years.
India has its share of success stories in the B2C segment in the form of Indiatimes.com,
Rediff.com, Shaadi.com, Indiamatrimony.com, MagicBricks.com, Monster.com and
Makemytrip.com ,ebay.com etc. These and such other portals are generating a lot of interest
and increasing transaction traffic. Smaller businesses have jumped onto the bandwagon by
offering products and services online and have successfully carved out niches for themselves.
The online community is growing by leaps and bounds as an increasing number of consumers
have started transacting online because the initial fears and apprehensions are being laid to
rest. Research studies have indicated several factors responsible for the sudden spurt in
growth of eCommerce in India such as:
Rapidly increasing Internet user base
Technology advancements such as VOIP (Voice-over-IP) have bridged the gap
between buyers and sellers online
The emergence of blogs as an avenue for information dissemination and two-way
communication for online retailers and eCommerce vendors
Improved fraud prevention technologies that offer a safe and secure business
environment and help prevent credit card frauds, identity thefts and phishing
Bigger web presence of SME’s and Corporate because of lower marketing and
infrastructure costs.
Longer reach - Consumers in the Tier II & Tier III cities are fast realizing the
potential of the Internet as a transacting medium
The young population find online transactions much easier
E-Commerce offers several benefits to businesses
Easy reach to a fast growing online community
Unlimited shelf place for products and services
Fuse the global geographical and time zone boundaries
Helps reach national and global markets at low operating costs
There is a growing awareness among the business community in India about the opportunities
offered by eCommerce. Ease of Internet access and navigation are the critical factors that will
result in rapid adoption of Net commerce. Safe and secure payment modes are crucial too
along with the need to invent and popularize innovations such as Mobile Commerce.
Popular Uses of eCommerce in India
ECommerce referring to the process of trading goods and services through an electronic
medium such as the internet has gained tremendous popularity in the recent years.
ECommerce involves paperless transactions and usage of EDI (Electronic Data Interchange),
electronic mail, bulletin boards, fax transmissions, and electronic fund transfers. With
advancements in technology, there have been changes in the methodology for business
transactions. India, being a rapid adaptor of technology is apace with the current scenario of
electronic data exchanges and has taken to eCommerce. The number of eCommerce
transactions have increased manifold. People use credit or debit cards for making purchases
in an online store. ECommerce is being used for purchase and sale of multiple products and
there are multiple players using various portals and websites for this purpose.
The popular uses of eCommerce in India involve the following:
A. Online Travel Industry in India
Use of eCommerce in India is increasing in the travel segment. Online travel industry is
expected to be worth US $6 billion in 2011. It is the most successful eCommerce initiative in
India. It has contributed Rs 340 Million to the total eCommerce business of Rs 900 Million.
The Indian Travel Ministry has introduced a travel portal called Incredible India. This portal
is a big success as tourists can easily contact travel agents, tour operators and hoteliers easily.
This portal has also caused a surge in medical tourism to India. By the year 2010, the medical
tourism market in India is expected to be around US$ 2 million. Other travel portals include
Makemytrip, Yatra, Cleartip, and Travelguru. Makemytrip has targeted revenue of Rs 230
Million for the financial year ending March 2010.
B. Online Retailing or eTailing
Due to improved broadband connections and increased penetration of credit card facilities to
a wider population, eTailing or online retailing is witnessing a substantial growth. Internet
retailers provide a wide range of facilities to the consumers, including discounted prices,
comparison of product features offered by various vendors, areas where the products can be
procured, etc. Currently, the online retail industry in India is estimated to be worth Rs 110
Million. By 2013, India is expected to have the third largest internet user base, which
improves the prospects of online purchases. Some of the retail stores offering online retail
facilities include: Reliance's Rmoneymall, Pantaloon's FutureBazaar.com,
Videocon's eDigiworld.com, Vishalmart's Vishalmegamart.com, and the Tata Group's
Westside.
C. Online Trading in Stocks and Shares
Online stock trading activity is gaining momentum in India. Services offered by the online
stock trading companies include online buying and selling of stocks and shares, market
analysis and research, details of companies, comparison of companies, and research on equity
and mutual funds, customer services through email and chat. Online trading also has an added
advantage of real time stock trading without calling or visiting the broker's office. Major
online stock trading websites in India include: ICICIDirect.com, Sherkhan.com,
Indiabulls.com, 5Paisa.com, Motilal Oswal Securities, HDFC Securities, Reliance Money,
IDBIPaisaBuilder, Religare, and Kotak Securities.
D. Online Advertisements
The Indian population accesses the internet from home, office, and cybercafés. There is a
large segment of population that is fast adapting to internet. Advertisers have identified the
internet as a medium for enhancing the awareness for their business activities. Online
advertising in India is expected to cover all organizations and their products. The online
advertisement industry grew to Rs 3250 million in India, accounting for 38% growth rate in
2008-2009. The growth rate for the year 2009-2010 is expected to be 32% which amounts to
Rs 4300 million.
E. Online Job Sites
Another area where eCommerce is widely used is that of employment. Internet has simplified
the process of search for 'right people on the right job'. There are a number of web portals and
sites that match a prospective employer's requirements with that of candidates applying for
that job. Some of the popular job sites in India include: Naukri, Monster India, Times Jobs,
Careerjet, Naukri Hub, Career India, Bixee, ClickJobs, CareerAge, and Freshersworld.
F. Real Estate Portals
There are a number of real estate portals and sites that provide information to users regarding
the property they wish to buy/sell. This information includes properties available for
sale/purchase, the cost, location, etc. Some of the popular real estate portals include:
Indiaproperty.com, 99acres.com, Magicbricks.com, and Makaan.com.
G. Online Matrimony Websites
Matrimony eCommerce portals provide the seekers appropriate information regarding the
prospective matches, region of their residence, their religion, caste, etc. Allied services are
also provided to the listed members. These services include: astrology, information on
customs and rituals, legal issues, health and beauty, fashion, wedding planners, etc. Some of
the leading matrimony portals in India include: Shaadi.com, Jeevansathi.com,
Bharatmartimony.com, Indiamatrimony.com, and Simplymarry.com, and
LifepartnerIndia.com.
Government Regulations and Policies
The Government of India laid down the Information and Technology Act in 2000 and became
the 12th country in the world to have cyber-laws. The IT Act of 2000 covered the following
aspects:
a. Legal recognition of electronic documents
b. Legal recognition of digital signatures
c. Offences and Contraventions
d. Justice Dispensation Systems for Cybercrimes
The IT Act 2000 was substantially modified through the Information and Technology
Amendment Act, 2008, which came into effect from October 27, 2009.The IT Act of 2008
covered amendments that provided additional focus on information security. It has added
sections on offences, such as Cyber terrorism and Data Protection. This act, however, has
been criticized because of lack of legal and procedural safeguards to prevent violation of civil
liberties of Indian people.
Cyber Laws and Crimes as per the Indian IT Act
The IT Act covers cyber laws and crimes, which are subject to the Indian Penal Code. Such
cyber crimes include:
Crimes related to technical aspects, such as unauthorized access and hacking, Trojan
attack, virus and worm attack, email related attacks (email spoofing and email
spamming, email bombing), and denial of service attacks (DOS). DOS include:
o Consumption of limited or non-renewable resources like NW bandwidth and
RAM, alteration or destruction of configuration information, destruction or
alteration of network components, and pornography.
o Forgery
o IPR violations, which include software piracy, copyright infringement,
trademark violations, etc. This also includes cyber terrorism, Banking and
credit card related crimes, eCommerce and investment frauds, sale of illegal
articles, defamation.
o Cyber stacking, identity theft, data diddling, theft of internet hours.
o Breach of privacy and confidentiality.
Monitoring of Online Payments by Regulatory Bodies
Fig Payment mode
Online payments are generally credited to the intermediaries like PayPal, who transfer these
payments to merchants. To address this situation, Reserve Bank of India has issued new
norms for facilitating eCommerce transactions. As per the directives, the payment will be
credited directly to the merchants and not the intermediaries. With this arrangement, money
will be available to the merchant within 3 days of transaction. This will expedite shipping of
goods to the customer on time. Online transactions require use of electronic cards – credit or
debit. The credit card market is currently not too vast, with less than 25 million credit cards
issued in the market. However, debit cum ATM cards are widely used by account holders.
Steps by RBI to improve eCommerce Transactions
Issue appropriate instruments (cards) to facilitate online payments: For example, all
debit cards are ATM cards, but all ATM cards are not debit cards. Additionally, there
are some co-operative banks offering internet banking facilities. This facility is mostly
for checking account balance, and this should be extended to online transactions as
well.
Take steps to improve debit and credit card penetration. RBI should specify a time
frame to banks to issue credit cards, debit cum ATM cards.
Improving the network connectivity of ATMs: Users can use one bank’s ATM card
for holding transactions with another bank because these ATMs are connected to
BANKS ATM network. Several banks still need to be connected to this network. RBI
should facilitate to expedite this connectivity.
Improving payment gateway infrastructure: There is a need to improve payment
gateway infrastructure in the country. The payment gateways should accept all credit
cards, debit cards, and internet banking facilities that all banks are offering. RBI
should provide a mandate to the payment gateways to integrate such services of any
new bank within some stipulated duration of the new bank operations going live.
Issues in e commerce industry
E-business provides unique opportunities for enterprises to exchange goods and services with
substantial improvements in operational efficiencies, transaction costs, and customer
satisfaction. An effective e-business solution enables your entire value chain and can give
you a sustainable competitive advantage by improving processes and creating stronger
relationships with your business partners and customers. Internet Commerce or E-Commerce
(Electronic Commerce) uses online electronic technology connected via the Internet to assist
and enhance a variety of business processes, functions and systems.
Running an online business can be an overwhelming task. Extending a business to the Web
and opening an e-commerce storefront requires merchants to master many tasks not only
website development and design, but also maintaining the confidentiality and security of
consumer data and accepting and processing payments.
The benefits of E-Commerce are not just available to large corporations and government
departments and many small to medium businesses are discovering new cost -effective
opportunities to use Internet - related technology to help their business operations locally and
internationally.
E-Commerce will enable companies
Shorten procurement cycles through on-line catalogue, ordering and payment. Cut costs on
both stock and manufactured parts through efficient JIT and QR systems that reduce the
inventory and facilitate automatic replenishment. Shrink product development cycles and
accelerate time-to market through collaborative engineering and product customization.
E-Commerce Applications
Supply chain management
Video on-demand
Remote Banking
Procurement and purchasing
On-line marketing and advertising
Home shopping
Security issues and Firewalls
Today's computer systems, linked by global networks, face a variety of security threats that
can result in significant financial and information losses such as credit card numbers,
financial data or medical history. To minimize risk, win customer confidence, ultimately,
gain a competitive edge. We can arrange with leading Security provider, for Secure Sockets
Layer (SSL) technology, which is the industry- standard protocol for secure, Web-based
communications and your web server is ready to work with if it's from Apache Freeware,
C2Net, IBM, Lotus, Netscape, Microsoft, Open Market, or dozens of other vendors.
Advantages and Disadvantages of Electronic Commerce:
There are several advantages and disadvantages of electronic commerce application for
customers, business and non-profit organizations. Different levels of product information can
be obtained online globally through the Internet, which makes very easy for customers to
compare and evaluate the particular product or service. Electronic commerce can offer wide
range of choices to extend markets and opportunities to both consumers and business firms.
Customers could save delivery time because of contribution of digital services and product.
On other hand, business firms could decrease operating and marketing cost and increase
profit. The negative aspect of electronic commerce includes different anticipations of
products such as clothes when the customers are purchasing online. Another disadvantage
associated with electronic commerce includes issues related to security and privacy of
customers’ credit card detail.
Effect of Electronic Commerce:
The invention of electronic commerce has changed the conventional means of online
exchanges and transaction. It is generating a novel market place and opportunities for the
restructure of economic processes in a more competent way. The world wide structure of the
Internet and the very low prize of using it, allows the interconnection of novel and present
information and communication technologies. It provides business firms and consumers a
pioneering and strong information system and another medium of communication. This
changes the way consumer search and purchase goods or services among the highly
customized, distributed and exchanged different products or services.
Statistics of Ecommerce in India
The latest report on Ecommerce in India published by the IAMAI (Internet and Mobile
Association of India) indicates a healthy growth rate over the previous years. PC users have
increased from 72 million in 2009 to 87 million in 2010. This is primarily due to the
penetration of PC into the lower Socio Economic Classes (SEC) spread across smaller towns
in India. With increasing literacy rates and growing incomes, people from these classes have
readily adopted the Internet for Ecommerce and other uses. Claimed Internet Users (those
who have used the Internet at least once in the past) have grown by a substantial 20% in 2009
over 2008. This rate is significantly higher than the growth rates in the previous years. The
Internet penetration level in small towns of rural India has increased from a mere 5% in year
2000 to 36% in 2009. The Internet usage figures of these smaller towns have even overtaken
those of the Top 8 Metros indicating the impact of the Internet on the lives of people residing
in rural India.
The recent survey conducted by Nielsen, India has emerged as the 3rd biggest nation when it
comes to online shopping and using a credit card online. Drawn by the facilities offered by
the Web and the diversity of products available on it, Indian netizens have emerged as the
third biggest credit card users globally for online purchasing, next only to the Turkey and
Ireland. The survey shows more than 85 per cent of Internet users in the world are purchasing
goods or services online, with credit cards as the most used method of payment. Despite the
improved penetration of Internet usage, both in urban and rural India, the actual figures are
far short unlike in the US and Europe. India’s economy is pegged at about Rs.1.2 trillion (by
2008 estimates) and its Ecommerce market is approximately Rs.9000 – 10000 crore (nearly
US$ 2 billion). In comparison, the US economy is $14.2 trillion and its Ecommerce market
(B2C) is estimated at $ 220 billion in year 2008. Thus India’s ecommerce to GDP ratio is
disproportionate considering its economy is 7% of the US economy but the size of its
ecommerce market being only 1% that of the US. These figures, though disappointing,
indicate the potential for growth of India’s Ecommerce market and that it is getting there –
slowly but surely. There is still tremendous scope for investors and entrepreneurs in India’s
Ecommerce space.
ECommerce in Rural India
With internet reaching a wider base of population, eCommerce transactions happen over a
vaster segment of Indian society. According to the survey conducted by Internet and Mobile
Association of India (IAMAI), the rural internet users have outgrown the number of urban
internet users. According to the eBay Census Guide 2009, India has 2471 eCommerce hubs.
These hubs are spread over the entire country and cover cities, towns, villages, and smaller
towns. All 28 states and 7 Union Territories have witnessed eCommerce transactions. It was
also found that rural Indians are actively involved in online shopping. Online buying and
selling trends have been observed in Bundy (Rajasthan), Thevaram (Tamil Nadu), and Tezpur
(Assam). Online shopping is underway in 747 rural towns of India. The study reveals that
181 rural towns, including Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra, and Gujarat
are active entrepreneurship hubs. These hubs cater to online selling in India and worldwide.
Successful eCommerce Ventures in India
India is the fourth country in terms of Internet usage. The internet-savvy population has a
number of online markets catering to a huge number of products. The eCommerce market in
India is expected to be around Rs 950 Million, out of which market for online shopping is at
Rs 130 Million. The global growth rate for online shopping is around 8%-10%, but India has
a much higher growth rate of 30%.
Some of the areas that have observed a successful eCommerce activity include:
Travel and tourism: In India, it is the most successful eCommerce initiative. It has
contributed Rs 340 Million to the total eCommerce business of Rs 900 Million.
Online Shopping: In metro cities, particularly Delhi and Mumbai, online shopping is
becoming popular. Some of the stores providing online shopping facilities include: The
Bombay Store, Big Bazaar, Pantaloons, and shopping portals on websites such as
www.rediff.com.
Locations of widespread eCommerce activity: Mumbai is India’s leading eCommerce
marketplace. Delhi ranks second in online shopping activity. India’s top 5 eCommerce hubs
are: Delhi, Mumbai, Chennai, Jaipur and Bangalore. According to a survey conducted by
eBay, India had about 2,471 eCommerce hubs in 2009. In this year, all 28 states and 7 Union
Territories of India witnessed eCommerce transactions. Additionally, the survey reveals that
most of the eCommerce transactions originate from Andhra Pradesh, Tamil Nadu, Kerala,
Maharashtra, and Gujarat. These are the cities where most of the IT hubs are located.
E Commerce industry in Coimbatore
Coimbatore is the 15th largest eCommerce Hub in the country, according to a recent study
released by eBay India, the e-commerce marketplace. In 2008, eBay India Census ranked
Coimbatore as its 28th hub.
Guide
The eBay Census Guide documents the trends in online buying and selling across the
country. An e-commerce hub has been defined in it as selling and buying transactions (global
and domestic) on eBay from the city, according to a release from the company. The release
said that India had over 2,470 e-commerce hubs. Andhra Pradesh, Tamil Nadu, Kerala,
Maharashtra and Gujarat were the most wired States in the country and these had most of the
eCommerce cities. The study also found that online shopping was active in 747 rural towns in
the country. Of these nearly 180 were active entrepreneurial hubs that sold to buyers in India
and other countries.
Online products
According to the press release issued here, Coimbatore entrepreneurs sold mostly Indian
stamps, Indian notes, gold plated bangles, toys and T-shirts. They purchased through online
products such as handsets, CPUs, Indian stamps, British Indian coins and diamonds.
Online shopping store- mall.coimbatore.com
The mall.coimbatore is an online shopping store, which is your personal buying assistant in
Coimbatore. Browse the stores in this cybermall. Shop for yourself, or order a gift. It is
possible for any product to be shipped to any place in India. You can also select items that are
shipped worldwide. If you don't find what you are looking for, you can contact them through
live help available between 9:00 AM to 6:00 AM, Monday to Saturday. You can shop for
almost everything here including,
Food products
Books
Magazines
Cds
Beauty products
Home Appliances
Gift Vouchers
Health Coupons
They will find it for you right away! Treat your near and dear to tasty Italian dishes not
available anywhere else in Coimbatore. There is assurance of 100% security in visiting the
site. Regarding the delivery of food products, the dishes are packed hygienically and
delivered in fresh, hot condition.
Why them?
The following characteristics make us to buy products from them.
Privacy Policy
At mall.coimbatore.com they value customer’s privacy. They will not sell or rent your
personal information to anyone. The details of your purchases are not revealed to third
parties. They use the information collected about you to personalize the services offered, to
speed up your orders, and to serve you better. Your email id's are not sold or hired outside.
Security
Your credit card info is very secure on mall.coimbatore.com. Here is why:
Unlike other websites, they do not capture or store any credit card information on our
servers. All card information is directly passed by a secure (https) page to
Authorize.Net or PayPal. This is more secure than the method used by many
websites.
Additionally, your card CVV number is an added security feature to help protect you
against misuse of your card. The CVV Number is a group of 3 or 4 digit numbers
printed on the back of the card, immediately following your credit card number.
Excellence
They strive for excellence in whatever they provide and focus on continuous improvement
in interactions with people, efficiency of products and their delivery, and the well being of
the site.
Customer Centricity
They mainly give importance to customers, both internal & external, by giving them
priority. They strive to exceed their expectations in terms of the value and quality
delivered.
Integrity
They ensure consistency between their words and actions, always delivering what they
commit, thereby maintaining transparency, trust and accountability.
Accountability
They feel responsible and accountable for the commitments they make and the quality of the
results we deliver to all their stakeholders.
Terms and conditions
Processing charges of 2$ applied on every order.
All prices are in US Dollars unless otherwise indicated.
Payment: You can pay by Visa and MasterCard, Money Order and Banker's Check.
Prices include shipping and handling charges within India and worldwide where
indicated.
Some products are shipped worldwide.
For corporate purchases or trade enquiries contact them. You will get the response
within 2 working days.
Because we do not stock or sell these items, they always work for you, the customer.
So, you get the very best products, a wide selection, and unmatched service. On
receiving orders from you, they buy from the company or their authorised distributor.
If you have bulk requirements, you can engage them as your buying agent.
SWOT analysis of the industry
Strengths of e-commerce
24 hrs a day, 7 days in a week your business in operation.
You can do your business globally by sitting at your office, home or in
bedroom.
The products reach to customers directly from the producers at a lower price
than the market value.
It is fast and effective.
By visiting different websites one can within a short time can compare the
price and buy on the best deal.
Advertising your product is cost effective in compare with conventional
offline system.
Low staff cost.
Financial transaction through electronic fund transfer is very fast and can be
done from any part of the world.
Can be started with very low investment.
Weaknesses of e- commerce
There is no direct interaction between the customer and the seller. Therefore,
the scope of convincing the customer does not exist.
Many times, we prefer to buy the product by reaching personally to the market
rather than purchasing through Internet.
Sometimes, transportation cost increases the product cost.
No. of potential customers who can buy through Internet is still not enough.
Opportunities
Everyday number of Internet users is increasing in a rapid way.
People of tomorrow will feel more comfortable to buy products through
Internet only.
Big companies are already entering in this field so; they are making people
habitual and confident about marketing through Internet at the cost of the
companies.
Threats
Dishonest persons entering in this field which damage the confidence and faith
of common people on marketing through Internet.
General trepidation of Internet-based business.
Increased government regulation for supplements.
Aggressive competition from other markets.
Future Potential and Growth
India realizes the importance of eCommerce, as this is an emerging practice of businesses in
today’s world. For adopting eCommerce, two requirements need to be catered to: physical
connectivity and technology, and legal framework governing the flow of trade. To ensure a
better connectivity, there has been an increase in the number of Internet Service Providers
following a growth in the Telecommunication sector. And to address trade related issues in
eCommerce, the government has set up National Task Force on Information and Technology.
Issues with eCommerce – Payment and Dispatch of Goods
One of the major factors for eCommerce not taking off in India as expected is the dispatch of
goods on time and payment issues. Merchants start order processing and shipping only after
the receipt of money through Credit Card or online banking payment. Mostly, online
payments are credited to the intermediaries like PayPal, who transfer these payments to
merchants. To address this situation, Reserve Bank of India has issued new norms for
facilitating eCommerce transactions. As per the RBI directives, the payment will be credited
directly to the merchants and not the intermediaries. With this arrangement, money will be
available to the merchant within 3 days of transaction. This will expedite shipping of goods to
the customer on time. However, still there is an underlying problem of fixing responsibility
for the goods delivered and the payment. Online retailers do not take full responsibility of a
clear e-transaction. So, the customer problems still persist. However, India has taken a
number of steps to facilitate eCommerce transactions and steadily, the loop-holes are being
plugged.
Recommendations for the future
While E-Commerce may not completely replace other forms of Commerce, it is likely to be
the dominant mode of the commercial transactions in the future. Colleges and Schools
including Business Schools should reflect this trend in the curriculum to train the future
generation of Managers. India is increasingly expanding its horizons as a new centre for
business idea for global industrialists. Novel promotion and selling ideas are being
formulated according to needs of the new age middle class customers.
E-commerce export prospects outside India:
There are many products which can be sold and exported. It could be anything
ranging from spices to coffee. It is not essential to set up a warehouse; rather tie-ups
with Indian companies or by creating a website of your own would serve the purpose.
This gives an opportunity to manage a diverse range of products sans any risk and
cost. The step towards starting an e-commerce export business is to find a niche
market in India. It could be in any area ranging from healthcare to herbs, etc. Search
the net and find out which product can meet the requirements of a certain category of
customer. Test your product online before taking any risk. The probable risk in this
business is that the good or service may not appeal to the customers or there might not
be any sales.
E-commerce business prospects within India:
With the development in customer market the Indian economy has flourished over
the years giving rise to a class of people with disposable income. For budding
entrepreneurs it is advisable to get indulged in e-commerce boom. The potential of e-
commerce business within India is restricted for another two years. Going by the past
records of other countries, China witnessed a massive upsurge in its internet users by
4 million users in the year 1999 from 600,000 Internet users in November 1997.
But one major disadvantage of establishing an e-commerce business in India is that
only 1 million people have direct access to the internet and out of 36 Indians only 1
have phone access and many of them even do not have credit cards. Export of
animations, multimedia, graphics, etc.: The potential of this business is to cater to the
massive requirements for quality content that the web creates. To execute this idea an
entrepreneur requires expert professionals. The possible risk involved in such kind of
business is that the animations or graphics might turn out to be visually unattractive to
the Western audience. Hence, to avert any such situation a meticulous supervision is
required to ensure that the service appeals to the western audience.
Online Customer Support:
The geographic barriers are fading and with the internet revolution this type of
business opportunity has emerged in India. The potential of this type of business
undertaking is cost effective. India has the skilled workforce of people who speak
quality English as the cost of hiring a call centre employee in India is around US
$150-$200 per month. This paved way for setting up a decent online support system
in India for the United States. Indian entrepreneurs can easily surpass any problem by
training the online support staff and educating them about the attitude and lifestyle of
the American customer.
Export of data services:
For establishing a successful business in India, outsourcing of data entry is the best
option. This business is the most recent in India and is already a hit in big cities like
Bangalore. This business undertaking has a great potential. Companies in Bangalore
are flourishing to a great extent after undertaking data services like medical
transcriptions. There is a massive demand for these kinds of services because
international companies prefer their documents in an electronic format. This business
is promising as well as money spinning. The prospective entrepreneurs can
collaborate with Indian companies in order to offer high quality skilled employment.
If the quality of work is not sustained then the risk may surface with complaints
coming from the clients.
Mobile Commerce is also growing rapidly and proving to be a stable and secure
supplement to eCommerce due to the record growth in mobile user base in India, in
recent years.
Conclusion
In sum, the most successful marketplaces are expected to be those that cater to consumer's
loneliness, boredom, education and career. For instance, look at the success of on-line
chats and home shopping channels. But debates rage over whether interactive TV or on-
line computer services will become pivotal medium for solving consumer loneliness.
Nobody would want to get into something that wasn’t secure. So when you are ready for
e-business you’ll find that many organizations have developed solutions like Real Time
Intrusion Detection and Anti Virus software. These along with personal codes and
passwords make sure that any transaction that takes place or any information that is
shared is seen only by the people it’s meant for. So ensure that it is real safe to do
business online, before opting for one!