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&A visit to. 1What is E-Commerce?What is E-Commerce?

The use of the Internet and the web to transact business. It refers to business activities conducted using electronic data transmission via the Internet and the World Wide Web.

Why E-Commerce is changing the way business operates?

Reduced costsLower product cycle timesFaster customer responseImproved service quality

How E-Commerce Works?

The consumer moves through the internet to the merchant's web site. From there, he decides that he wants to purchase something, so he is moved to the online transaction server, where all of the information he gives is encrypted. Once he has placed his order, the information moves through a private gateway to a Processing Network, where the issuing and acquiring banks complete or deny the transaction. This generally takes place in no more than 5-7 seconds.

There are many different payment systems available to accommodate the varied processing needs of merchants, from those who have a few orders a day to those who process thousands of transactions daily. With the addition of Secure Socket Layer technology, E-Commerce is also a very safe way to complete transactions. Drivers & Challenges

VCs, Mergers & Acquisitions

Questions asked to some of the employs of the leading Ecommerce portals in India1.) What is the total turnover of the company.

2.) How many shipments do you dispatch in a single day and how do you manage to dispatch this large quantity.

3.) What is the employee strength of company across India.

4.) How mobile commerce will plan out in India.

5.) How real or hyped is the Indian opportunity for Internet Retail

6.) What are the taxation issues an eCommerce venture might have to deal with, especially when it involves inter state transactions.

Answers from Flipkart1.) What is the total turnover of the company.

A) Total turnover was around 1200 crore till December 2013

2.) How many shipments do you dispatch in a single day and how do you manage to dispatch this large quantity.

It is around 30000 parcels per day after launching of the marketplace model on the portal.

3.) What is the employee strength of company across India.

A.) As you know we were having total for 5500 employs last year and has been reduced by 2000 when marketplace model was introduced so it is around 3500 currently.

4.) How mobile commerce will plan out in India.

A.)However, if talked about mobile commerce in the country, then, according to MasterCard Mobile Payments Readiness Index (MPRI), India ranked 21st among 34 countries with the score of 31.4 on a scale of 100. The index also pointed out that only 14 per cent of Indian consumers are familiar with M commerce transactions.

5.) How real or hyped is the Indian opportunity for Internet Retail.

A.) If discounts are removed, it would certainly lead to a drop in traffic. To counter that we need more players in the online retail sector, more people who are willing to do business online. So that the we achieve a balance in cost synergies.

6.) What are the taxation issues an ecommerce venture might have to deal with, especially when it involves inter state transactions.

A. Tax rates in India change from state to state. You need to levy the taxes from the state you are shipping from and not as per the state you are shipping to. When displaying products, it is very important to make a master of taxes at SQ level and not product level. Also, Invoices are nothing but displays, you play on the perceived value of product, so its most important to master the backend.

People we meet at FlipkartAbhinav PophaliManager - Business Development

Taher (A) FramewalaAsst Manager Business Development - Lifestyle & Apparel Business (West India)

Answers from Amazon India1.) What is the total turnover of the company.

A.) I cannot disclose the turnover of the company as per our policies but we have grown 10 folds since the launch of our portal.

2.) How many shipments do you dispatch in a single day and how do you manage to dispatch this large quantity.

A.) As you know we have recently launched our shopping portal and we have presence in India since 2012 via our price comparison portal Junglee. By jungle we enabled several websites to sell their products and gave them great visibility across the county. From amazon warehouses we are dispatching 7000 parcels per day. As we are introducing new categories it is increasing.

3.) What is the employee strength of company across India.

A.) Total employes around India is around 5000. This includes Amazon global support centers. For Indian operations we have around 3000 employes.4.) How mobile commerce will plan out in India.

A.) Currently we are getting 8% of the total sales from mobile phones. As the number of smartphone users increases the volume will increase. We are waiting for LTE to be introduced in pan India level. This will reduce the cost of the internet on mobile phones and the speed will be around 50Mbps which will drive a huge traffic and enable Indian consumers buy online.

5.) How real or hyped is the Indian opportunity for Internet Retail

A.) There are various promotions which we do. If we stop doing that our sales will drop down by 50%

6.) What are the taxation issues an eCommerce venture might have to deal with, especially when it involves inter state transactions.

A.) Given that Ecommerce transactions are not bounded by geographical boundaries, new entrepreneurs in this field find it hard to understand the state government laws especially for interstate/international consignments. For example, if the website is hosted in USA, product is procured from China, shipped out from Europe and delivered to India there is little clarity about how taxation should happen? Indian laws have not been properly revised to cater to the changing eCommerce industry making the situation worse.People we meet at AmazonJayaprasad VBusiness Development Manager

Sanjana SriramOn-boarding Sales Specialist

Thank You.