Case Study: Snapdeal: Will The E-Commerce Be Profitable

Consumer to consumer e-commerce industry is a worldwide stage for any purchaser or customer. While most income originates from colossal number of exchanges, they increase enough from ads, auctions, reviews and so forth. Samples of such e-business incorporate Amazon, Etsy, Craigslist, Kickstarter, Taobao and so forth.

Growth prospects e-commerce E-commerce has continued to be a business trend and it continued to grow in 2015. According to the data the Stefany Zaroban got from the U.S. Commerce Department, the web sales in 2015 totaled “$341.7 billion for the year, a 14.6% increase over 2014’s $298.3 billion” (Zaroban, 2016). This reveals that Amazon would continue to have the chance to increase their sales as well as an increase to bringing in more customers. According to the data that GlobalData received, U.S. had around “300 million internet users in the year 2014 which was an increase of 7% over the previous years” (GlobalData). These statistics show that with the increase of online shoppers every year and the definite advance in technology in the future, more people will shop online than to go to retail stores.

The essence of e-retailing is in its capacity to rise above physical limits and reach clients in a way which is unique in comparison to the conventional brick and- mortar stores, to their extreme doorsteps. On the other hand, the base of the e-retailing model is engineering and logistical solutions that encourages the client acquisition and the last "reach" process. E-business further brings to the table notions in client requests went hand in hand with troublesome situations, for example, free conveyance ,request rescheduling, scratch-off, returns and

According to E-Commerce statistics (2016), “Retail e-commerce sales in the United States are projected to grow at a fast pace in the coming years, going from 322.17 billion U.S. dollars to just over 485 billion U.S. dollars” (para.2). Generally, people think E-commerce is simply buying and selling of goods and services through electronic media. In today’s digital world this definition of e-commerce is not very comprehensive and well define. According to Gupta.A. (2014), “ E-commerce is the electronic communication and digital information processing technology in business transections to create, transform, and redefine relationships for the creation between or among organizations and individuals” (p.2). There are different categories of electronic-commerce, such as Business-to-business (B2B), Business-to-consumer (B2C), Business-to-government (B2G), Consumer-to-consumer (C2C), and Mobile commerce (m-commerce). All these methods of conducting business or selling or buying products is through a proper digital /electronic channel. In this paper, the discussion is more about online shopping through Internet and mobile device. Nowadays, on line shopping is getting popular among people of all ages. From ordering pizza to ordering a big giant T.V through the Internet is very common. Many people are switching their method of purchasing goods from stores to websites. Dawson (2016) stated that, today, in most established countries, approximately 60% of people like to purchase via

Also India had a diverse culture and preferences about the products and about the thinking about the e-commerce industry. Gaining confidence of the Indian customers on the ecommerce products was one of the most important threat of the amazon.

E-retailing or online is growing at faster pace in India. It has steady growth rate of 50-60% over the years. E-retailing accounts for 10% of e-commerce activities in India. There is lot of growth in online retail and same number of challenges to be faced. The article focuses on the opportunities and challenges for online retailers in business environment. Electronic retail is process of doing business through computer networks. A person sitting on his chair in front of a computer can access all the facilities of the Internet to buy or sell the products.

With today’s smart phones consumers are making purchases online with their phones. An example is someone bought a 1966 Corvette for $75,000 using their smart phone. The availability for people to research the costs of goods and compare them to in-store prices has evolved beyond anybody’s expectations. Even when someone is boasting of a good deal, it only takes a buyer seconds to look up comparable items and prices on their phone. E-commerce is not just e-commerce anymore, it is just plain commerce. By connecting anything and anyone in an instant Ebay has transformed business and quality of life. A person who lives in the backwoods of Wyoming can still purchase high end item and have them the same week. It may take the nearest town’s store months to purchase and sell similar items on their shelves. I know that Ebay has changed the way our household is run. We rely on Ebay to makes ends meet by shaving dollars off goods and clothes we buy on a day to day basis.

There are two E-commerce scenarios that have been looked at that face logistical issues in Australian organisations of Big W and Oz Hut and through the analysis of these organisations we will be looking into the systems used and how they are dysfunctional to these companies. Also exploring better ways to improve order fulfilment, third party logistics and the growing online retailing industry of changes needed to enhance competitiveness. With transportation having a substantial impact on the way the e-commerce trade is facilitated been a key element of building trust between sellers and buyers. (Commission, 2012)

Lawrence & Tar (2010) also states that without an efficient system in place, logistic infrastructures among others, the main purpose of e-Commerce would be defeated. To adopt e-Commerce, developing countries will require a drastic upgrade from the prevailing archaic logistic and transportation infrastructures to efficient structures that can support timely and efficient delivery of goods and services.

The e-commerce company’s strategy focus allowed it to differentiate itself by providing better services to its customers. The company put an innovative business model in which customers would try out the company’s services without any cost. As time progressed, the company was able to generate revenue from alternative means. In addition, the company began to generate revenue from an increase in the willingness of its users to pay for additional services. First mover advantage is referred to as a competitive advantage because it allows the first company to acquire superior brand recognition and customer loyalty, while allowing the company to perfect its product or service. Alibaba’s operations stated when e-commerce was at infancy stage in

E-commerce means today, to take care of their own website, constantly updates to publish and in social networks to be present. The recent studies from the 2014 show for the first seven indicators for the successful marketing of products and services on the Internet. And this study was not focused on the largest and most successful companies, such as Amazon. Their marketing methods are usually not feasible for smaller companies without large marketing budget.

The mobile internet user base is growing, aided by the introduction of 3G data plans and declining smartphone prices. Several smartphone models are available at less than Rs. 8000 in the Indian market. Mobile internet users are expected to account for more than 60% of the user base in India, considering that their number is forecast to reach 200 million by 2015.

Snapdeal.com, India’s largest online marketplace was started by Kunal Bahl and Rohit Bansal in the month of February of 2010. After just six years of operation, it has the widest assortment of 30,000,000+ products across 800+ diverse categories which are from more than 125,000 national, regional and international retailers and brands (Snapdeal, 2016). Snapdeal now has more than a million users and more than 300,000 sellers and delivers the products in more than six thousand cities in India. With this, it has now become a shopping destination for almost all internet users across India. The journey and history of Snapdeal can be summarized in the following timeline:

The global and Indian telecommunication industry will present numerous business opportunities in the year 2015. India’s metros are set to transition from 3G networks to 4G network, while many of the 2nd and 3rd tier cities in India will transition from 2G to 3G networks. Reliance,

Flipkart is a private e-commerce company in India. The company was founded in 2007 by Sachin Bansal and Binny Bansal, both were the alumni of the Indian Institute of Technology Delhi. The company headquarters is located in Bangalore, Karnataka. Filpkart Online Services Pvt. Ltd was formally incorporated as a firm in October 2008. This is the company which made online shopping famous in India. According to Alexa Traffic Ranks, filpkart is in 10 rank in India and globally it is in 143 rank. Flipkart first started selling books in its initial period and later it started to sale products like electronic items, air conditioner, air coolers, mobile phones and laptops etc. It also offered stationery items, life style products and e-books. Flipkart has launched its own product range under the name of “DigiFlip” offering camera bags, pen-drives, headphones etc. A book “Leaving Microsoft To Change The World” is the initial product traded by flipkart. The payment methods opted by them are cash on delivery, online payment through credit or debit cards. Further analysis about the initial investments, sources of funding and the entrepreneurial life cycle of Flipkart is showed in my report.