Ayesha Firdose Final

““A STUDY ON SIGNIFICANCE OF E-COMMERCE IN TODAY’S
BUSINESS SCENARIO”
Project Report submitted to Karnataka State Open University in partial

fulfilment for the award of the degree of
MASTER OF COMMERCE
Submitted By
AYESHA FIRDOSE
08P221011601563
M.Com 4th Semester
Under the guidance of

Dr. PRASAD H K,
Associate Professor
Maharanis Womens Commerce and Management College
Mysuru - 12
Department of Studies and Research in Commerce

KARNATAKA STATE OPEN UNIVERSITY
Mukthagangothri, Mysuru, Karnataka.
2024-25
MUKTHAGANGOTHRI, MYSURU-570 006
DEPARTMENT OF STUDIES AND RESEARCH IN COMMERCE
GUIDE CERTIFICATE
This is to certify that the project report entitled “A STUDY ON

SIGNIFICANCE OF E-COMMERCE IN TODAY’S BUSINESS
SCENARIO” Submitted by Ms. AYESHA FIRDOSE bearing Reg.No.
08P221011601563, to the Department of Studies and Research in
Commerce, Karnataka State Open University, Mysuru. The work done under
my guidance has been satisfactory and is recommended for the consideration
towards partial fulfilment for the award of the degree of Master of
Commerce (M.Com).
Place: MYSORE
Date:
i
CHAIRPERSON’S CERTIFICATE
This is to certify that Ms. AYESHA FIRDOSE bearing the Reg. No.
08P221011601563 , has successfully completed the project work on “A
STUDY ON SIGNIFICANCE OF E-COMMERCE IN TODAY’S
BUSINESS SCENARIO” under the guidance of Dr. PRASAD H K,
Associate Professor, Maharanis Womens Commerce and Management
College, Mysuru The project report is submitted to the Department of
Studies and Research in Commerce, Karnataka State Open University,
Mysore. In partial fulfilment of the requirement for the award of Master of
Commerce (M.Com) during the academic year 2024-25.
Place: Mysore
Date: Dr. Sukanya R.
Chairperson
Department of Commerce
Karnataka State Open University,
Mukthagangotri, Mysuru
ii
DECLARATION
I hereby declare that the Project Report entitled “A STUDY ON

SIGNIFICANCE OF E-COMMERCE IN TODAY’S BUSINESS
SCENARIO” is submitted to the Department of Studies and Research in
Commerce, Karnataka State Open University, Mysuru, in partial fulfillment
for the award of the degree of Master of Commerce (M.Com) is an original
research work carried out by me under the guidance of Dr. PRASAD H K,
Associate Professor, Maharanis Womens Commerce and Management
College, Mysuru. I also declare that the report was neither submitted to any
other University or Institution for the award of any Degree Certificate nor
published elsewhere any time earlier.
Place: Mysore
Date:
AYESHA FIRDOSE
Reg. No.: 08P221011601563
Fourth Semester, Master of Commerce

Department of Studies and Research in Commerce
Mysuru.
ACKNOWLEDGEMENT
The satisfaction of the successful completion of any task would be

incomplete without the expression if the gratitude to the people who made it
possible. I acknowledge till those who have guided and encouraged me.
I would like to thank Dr. Sukanya R., Chairperson, Department of
Commerce, Karnataka State Open University, Mukthagangotri, Mysuru for
her kind support and valuable right guidance.
My sincere thanks to Dr. PRASAD H K, Associate Professor, Maharanis
Womens Commerce and Management College, Mysuru.who helped as
internal guide and gave ideas and information regarding the project and
helped me throughout the project.
I would like to thank my loved ones, who have supported me throughout
entire process, both by keeping me harmonious and helping me putting
pieces together. I will be grateful forever for your love.
Last but not least I would like to express my deep sense of gratitude towards
my parents and other people who have helped in making this project
successful.
AYESHA FIRDOSE
08P221011601563
M.Com 4TH SEM
TABLE OF CONTENTS
Sl. No. Particulars Page No.

1 Introduction 1-20
2 Review of literature 21-29
3 Research Methodology 30-36
4 Conceptual framework 37-53
5 Profile of E Commerce 54-64
6 Data analysis and Interpretation 65-81
7 Summary of Major Findings, Suggestions and 82-84
Conclusion
8 Bibliography 85-87
9 Appendices 88-91
EXECUTIVE SUMMARY
A developing country can become industrialized and modernized if it can extensively
apply IT to enhance productivity and international competitiveness, develop e-commerce
and e-governance applications. An information-based society or knowledge based society
is composed of IT products, IT applications in society and economy as a whole. Many
countries in Asia are taking advantage of e-commerce through opening of
economies, which is essential for promoting competition and diffusion of
Internet technologies. The Internet is boosting efficiency and enhancing market
integration in developing countries. The developed world has had a long lead over the
developing countries in the telecom infrastructure. The world average of tale - density is
15 per cent compared to the developed world average of 55 to 60 percent.
Same is true of PCs, Internet connections, and the number of Internet hosts. All these
traditional indicators for India as seen above are still small. But the total numbers of
Internet connections are large in absolute numbers. Large enough to have critical masses
of 10 to 20 million make an impact on e-commerce and e-governance. In the next 3 to 5
years, India will have 30 to 70 million Internet users which will equal, if not surpass,
many of the developed countries. Internet economy will then become more meaningful
in India. The number of e-transactions will be large enough to sustain the Internet
econom
A developing country can become industrialized and modernized if it can extensively

apply IT to enhance productivity and international competitiveness, develop e-commerce
and e-governance applications. An information-based society or knowledge based society
is composed of IT products, IT applications in society and economy as a whole. Many
countries in Asia are taking advantage of e-commerce through opening of
economies, which is essential for promoting competition and diffusion of
Internet technologies. The Internet is boosting efficiency and enhancing market
integration in developing countries. The developed world hashad a long lead over the
developing countries in the telecom infrastructure. The world average of tale - density is
15 per cent compared to the developed world average of 55 to 60 percent.
CHAPTER –1
INTRODUCTION
1
INTRODUCTION
WE are living in e-century. The Internet and information and communications
technologies (ICT) are central to economic growth and productivity. Internet-based
technologies and networks can increase productivity, decrease costs and open new
market opportunities.
Now-a-days, using the Internet and email to conduct business is not uncommon.
However, lack of technical and management skills in Information and
Communications Technology is a barrier. There are a wide variety of resources
available to help you to improve your e-commerce skills. Simply, decide what skills
you need and identify the appropriate resources to help you to build those skills.
The skills that may be required range from basic abilities, like word processing
and Internet navigation, to more complex capabilities such as designing and building
websites and database management.
There are a range of resources to help you broaden your understanding of the e-
commerce environment and develop your technical skills. These include online
resources, books and magazines, seminars and training courses.
Keeping this in mind, a summary on the background of Electronic Commerce is
being provided.
E-Commerce: Meaning
E-Commerce or Electronics Commerce is a methodology of modern business
which addresses the need of business organizations, vendors and customers to reduce
cost and improve the quality of goods and services while increasing the speed of
delivery. E-commerce refers to paperless exchange of business information using
following ways.
 Electronic Data Exchange(EDI)
 Electronic Mail(e-mail)
 Electronic Bulletin Boards
 Electronic Fund Transfer(EFT)
 Other Network-based technologies
The concept of e-commerce is all about using the internet to do business better and
faster.
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E-commerce is the process of buying and selling over the Internet, or conducting any
transaction involving the transfer of ownership or rights to use goods or services through
a computer-mediated network without using any paper document.
Electronic commerce or e-commerce refers to a wide range of online business activities
for products and services. It also pertains to “any form of business transaction in which
the parties interact electronically rather than by physical exchanges or direct physical
contact.”
Business transacted through the use of computers, telephones, fax machines, barcode
readers, credit cards, automated teller machines (ATM) or other electronic appliances
without the exchange of paper-based documents. It includes procurement, order entry,
transaction processing, payment authentication, inventory control, and customer support.
E-commerce is subdivided in to three categories: business to business orB2B (Cisco),
business to consumer or B2C (Amazon), and consumer to consumer or C2C (eBay) also
called electronic commerce.
E-commerce the phrase is used to describe business that is conducted over the Internet
using any of the applications that rely on the Internet, such as e-mail, Instant messaging,
shopping carts, Web services, UDDI, FTP, and EDI, among others.
A type of business model, or segment of a larger business model, that enables a firm or
individual to conduct business over an electronic network, typically the internet.
Electronic commerce operates in all four of the major market segments: business to
business, business to consumer, consumer to consumer and consumer to business.
Ecommerce has allowed firms to establish a market presence, or to enhance an existing
market position, by providing a cheaper and more efficient distribution chain for their
products or services.
Examples of E-Commerce
 An individual purchases a book on the Internet.
 A government employee reserves a hotel room over the Internet.
 A business calls a toll free number and orders a computer using the seller's interactive
telephone system.
 A business buys office supplies on-line or through an electronic auction.
 Retailer orders merchandise using an EDI network or a supplier's extranet.
 Amanufacturingplantorderselectroniccomponentsfromanotherplantwithinthe company
using the company's intranet.
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 An individual withdraws funds from an automatic teller machine(ATM).
 Accepting credit cards for commercial online sales
 Driving information through a company via its intranet
 Driving manufacturing and distribution through a value chain with partners on an
extranet
 Selling to consumers on a pay-per-download basis, through a Website, etc
E-Commerce Definitions
The definition of e-commerce includes business activities that are business-to-business
(B2B), business-to-consumer (B2C), extended enterprise computing (also known as
"newly emerging value chains"), d-commerce, and m-commerce.
Ecommerce is simply a part e-business, more specifically, the trading aspect of e-
business. Although there are many definitions and explanations of e-commerce, the
following definition provides a clear distinction. There are many definitions and
understanding about E- Commerce. They are as follows:
1. According to the editor-in-chief of International Journal of Electronic Commerce,
Vladimir Zwass, ‘Electronic commerce is sharing business information, maintaining
business relationships and conducting business transactions by means of
telecommunications networks’.
2. Electronic Commerce is where business transactions take place via
telecommunications networks, especially the Internet – E. Turban, J. Lee, D. King and
H.M. Chung,
3. Electronic commerce is about doing business electronically –P. Timmers
4. Electronic commerce or e-commerce refers to a wide range of online business
activities for products and services – Anita Rosen
5. It pertains to “any form of business transaction in which the parties interact
electronically rather than by physical exchanges or direct physical contact.” – MK,
Euro Info Correspondence Centre (Belgrade, Serbia),
6. E-commerceisusuallyassociatedwithbuyingandsellingovertheInternet,or conducting
any transaction involving the transfer of ownership or rights to use goods or services
through a computer-mediated network. – Thomas L. Mesenbourg
7. A more complete definition is: E-commerce is the use of electronic communications
and digital information processing technology in business transactions to create,
4
transform, and redefine relationships for value creation between or among
organizations, and between organizations and individuals. – Emmanuel Lallana, Rudy
Quimbo, Zorayda Ruth Andam, ePrimer
From your reading it should be apparent to you that electronic commerce is more than
online shopping.
E-Commerce–Features
Electronic commerce, or e-Commerce, refers to the purchasing and selling of goods or
services via electronic means, such as the Internet or mobile phone applications. It may
also refer to the process of creating, marketing, servicing and paying for services and
goods. Businesses, governments and the public can participate in e-Commerce
transactions. The following discussion will elicit the unique features of e-commerce. The
unique features of e-commerce technology include:
Ubiquity:
e-Commerce is ubiquitous, It is available just about everywhere and at all times by using
internet and Wi-Fi hotspot such as airport, coffee cafeand hill station places.. Consumer
can connect it to the Internet at any time, including at their homes, their offices, on their
video game systems with an Internet connection and mobile phone devices. E-Commerce
is ubiquitous technology which is available everywhere Moreover, individuals who have
cell phones with data capabilities can access the Internet without a Wi-Fi connection.
Global reach:
The potential market size is roughly equal to the size of the online population of the
world. E-Commerce Technologies earn lessly stretches across traditional cultural and
national boundaries and enables worldwide access to the client. E-Commerce website has
ability to translate the multilingual websites as well as allow the access to visitors all over
the world, purchase products and make business interactions.
Universal standards:
The technical standards of the Internet are shared by all of the nations in the world. The
whole online tradition are growing and expanding their featuresinthe world.To
development any kind of business need Internet and communication application which
make the business relationship more lovingly and attractive for secure business and
successful business.
Richness:
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Users can access and utilize text messages and visual and audio components to send and
receive information. An individual may see information richness on a company's blog if a
post contains a video related to a product and hyperlinks that allow him to look at or
purchase the product and send information about the post via text message or email.
Interactivity:
E-commerce technologies allow two-waycommunication between the merchant and the
consumer. As a result, e-Commerce technologies can adjust to each individual’s
experience. For example, while shopping online, an individual is able to view different
angles of some items, add products into a virtual shopping cart, checkout by inputting his
payment information and then submit the order.
Personalization:
Technologies within e-Commerce allow for the personalization and customization of
marketing messages that groups or individuals receive. An example of personalization
includes product recommendations based on a user's search history on aWeb site that
allows individuals to create an account.
Information density:
The use of e-Commerce reduces the cost to store, process and communicate information,
At the same time, accuracy and timeliness increase; thus, making information accurate,
inexpensive and plentiful. For example, the online shopping process allows a company to
receive personal, shipping, billing and payment information from a customer all at once
and sends the customer's information to the appropriate departments in a matter of
seconds.
Social technology:
E-Commerce technology has tie up the social media networking applicationto providethe
best source of content sharing technology and e-Marketingsystems. You can share your
content or data easily in just one click.
User-Generated Content:
Social networks use e-Commerce technologies to allow members, the general public, to
share content with the worldwide community. Consumers with accounts can share
personal and commercial information to promote a product or service. When a company
has a professional social networking account, a member of the same social network has
the option of associating himself with the company or a product by saying he likes or
recommends it. When an individual updates his status on a social networking account, he
6
may also mention a product or company by name, which creates word-of-mouth
advertising.
Differences between Traditional Commerce and E-Commerce
Point of E-commerce TraditionalCommerce
Difference
Cost E-commerce is cost effective. Cost has to be incurred for the
Effective The cost incurred on role of middlemen to sell the
middlemen is eliminated as company’s products. The total
there is direct link between overhead cost is more.
the business and the Running a traditional business
customers. . The total require a head office with
overhead cost required to run several branches to cater to the
e- business is comparatively needs of customers situated in
less. Running an e-business different places.
require only a head office.
Overhead cost can be
eliminated by hosting a
website.
Time A lot of valuable time for It takes a lot of time to
both the consumers and complete a transaction.
business is saved. A product
can be ordered and the
transaction can be completed
in few minutes through
internet.
Convenience It provides convenience to It is not so convenient method
both customers and business. as that of E-commerce.
It provides better connectivity Customers have to move away
for its prospective and from their home or work place
potential customers as the to locate and purchase a desired
website can be accessed product.
virtually from anywhere,
anytime through internet. Itis
7
not necessary to move away
from their work place or home
to locate and purchase a
desired product.
Accessibility It is easy to expand the size of It may not be easy to expand

the market from regional to the size of the market from
international level. By regional to national level.
hosting a website, a business Business organizations have to
can penetrate into global incur a lot of expenses to enter
market. It is quite easy to international market.
attract customers from Global
markets at a marginal cost.
Introduction It is easy to introduce a It takes a lot of time and
of new product on the website and money to introduce a new
product get the immediate feedback product and analyse the
of the customers. Based on response of the customers.
the response, the products can Initially, cost has to be
be redefined and modified for incurred to carry out pilot
a successful launch. surveys to understand the taste
of the customers.
Profit It helps the organization to The cost incurred on the
enjoy greater profits by middlemen, overhead,
increasing sales, cutting cost inventory and limited sales
and streamlining operating pulls down the profit in
processes. traditional commerce.
Physical It does not allow physical It is possible to physically
Inspection inspection of goods. inspect goods Before the
purchase.
Time Round the clock service is Business is open only for a
available. limited time.
E-commerce, short for electronic commerce, refers to the buying and selling of goods or
services over the online. It encompasses a wide range of online transactions, including
online retail stores, digital marketplaces, online auctions, and (B2B) transactions. E-
8
commerce allows businesses and consumers to conduct transactions electronically, often
using websites or mobile apps, without the need for physical storefronts or face-to-face
interactions. It has become increasingly popular due to its convenience, accessibility, and
ability to reach a global audience. One of the most profound changes currently transpiring
in the world of business is the introduction of electronic commerce. The impact of
electronic commerce (ecommerce, or EC) on procurement, shopping, business
collaboration, and customer services as well as on delivery of various services is so
dramatic that almost every organization is affected. E-commerce is changing all business
functional areas and their important tasks, ranging from advertising to paying bills. The
nature of competition is also drastically changing, due to new online companies, new
business models, and the diversity of EC-related products and services. EC provides
unparalleled opportunities for companies to expand worldwide at a small cost, to increase
market share, and to reduce costs. In this chapter we will explain the major applications
of EC, the issues related to its successfulimplementation and to its failures, and what
services are necessary for its support. We look at business-to-consumer (B2C) commerce,
business-to-business (B2B) commerce, intrabusiness commerce, and e-government.
Electronic commerce (e-commerce, or EC) describes the buying, selling, and exchanging
of products, services, and information via computer networks, primarily the Internet.
Some people view the term commerce as describing transactions conducted between
business partners. To them, the term electronic commerce seems fairly narrow, so many
use the term e-business (electronic business) instead. It refers to a broad definition of EC,
not just buying and selling, but also servicing customers, collaborating with business
partners, and conducting electronic transactions within an organization. E-commerce is
the process of buying and selling over the Internet, or conducting any transaction
involving the transfer of ownership or rights to use goods or services through a computer -
mediated network without using any paper document. Electronic commerce or e-
commerce refers to a wide range of online business activities for products and services. It
also pertains to “any form of business transaction in which the parties interact
electronically rather than by physical exchanges or direct physical contact.” Business
transacted through the use of computers, telephones, fax machines, barcode readers, credit
cards, automated teller machines (ATM) or other electronic appliances without 4 the
exchange of paper-based documents. It includes procurement, order entry, transaction
processing, payment authentication, inventory control, and customer support. E-
commerce is subdivided into three categories: business to business or B2B (Cisco),
9
business to consumer or B2C (Amazon), and consumer to consumer or C2C (eBay) also
called electronic commerce. E-commerce the phrase is used to describe business that is
conducted over the Internet using any of the applications that rely on the Internet, such as
e-mail, instant messaging, shopping carts, Web services, UDDI, FTP, and EDI, among
others. A type of business model, or segment of a larger business model, that enables a
firm or individual to conduct business over an electronic network, typically the internet.
Electronic commerce operates in all four of the major market segments: business to
business, business to consumer, consumer to consumer and consumer to business.
Ecommerce has allowed firms to establish a market presence, or to enhance an existing
market position, by providing a cheaper and more efficient distribution chain for their
products or services. E-commerce basically stands for Electronic commerce. The term
electronic commerce or e-commerce refers to any sort of business transaction that
involves the transfer of information through the internet. using the Internet and the web
for business transactions and/or commercial transactions, which typically involve the
exchange of value (for example money) across organizational or individual boundaries in
return for products and services’ E-commerce occurs daily when sellers and buyers use
the internet to conduct business transactions. Technology makes it possible for anyone to
buy or sell practically anything online. E-business refers to that when you bring all your
business activities on e-Format. E-business applications turn into e-commerce precisely,
when an exchange of value occurs. Digitally enabled transactions include all transactions
mediated by digital technology and platform; that is, transactions that occur over the
Internet and the web. Electronic commerce or e-commerce refers to any sort of business
transaction that involves the transfer of information through the internet. By definition, it
covers a variety of business activities that use the internet as a platform for either
information exchange or monetary transaction or both at times.
For example, the number of consumer brands retail sites, like Amazon.com
and Flipkart.com normally provides information about the products and also allows
monetary transactions to happen over the internet. On the contrary, there are the auction
sites like Quickr.COM and eBay.COM where the information about certain listed
products and services are provided but the monetary transactions normally happen
physically. Apart from these two categories of e-commerce sites, there are some sites that
enable businesses to exchange trading goods and also services between two or more
companies. All of these forms of internet-based business platforms are known as e-
commerce. India has emerged as one of the major players on the new international
10
business scene. Its unstoppable economic growth since reforms in 1991 has become the
focus of attention of researchers in the area of international business and management.
The purpose of this paper is to review the impact of e-commerce on Indian Commerce
that has been published in top business and management journals, with the aim of
knowing what arethe most influential papers, what are the issues that have received the
most attention, which are the main findings or what more needs to be done in terms of
research. E-commerce is a paradigm shift. It is a ``disruptive” innovation that is radically
changing the traditional way of doing business. Electronic commerce is a type of business
model, or segment of a larger business model, that enables a firm or individual to conduct
business over an electronic network, typically the internet. E-commerce is the buying and
selling of goods and services, or the transmitting of funds or data, over an electronic
network, primarily the Internet. These business transactions are business-to-business,
business-to-consumer, consumer-to-consumer or consumer-to-business. The term e-tail is
used in reference to transactional processes around online retail. E-commerce is
conducted using a variety of applications, such as email, fax, online catalogues and
shopping carts, Electronic Data Interchange (EDI), File Transfer Protocol, and Web
services. It can be thought of as a more advanced form of mail-order purchasing through a
catalogue. E-Commerce is the movement of business onto the World Wide Web. The
effects of e-commerce are already appearing in all areas of business, from customer
service to new product design. It facilitates new types of information-based business
processes for reaching and interacting with customers like online advertising and
marketing, online order taking and online customer service. Electronic commerce or e-
commerce refers to a wide range of online business activities for products and services. It
also pertains to “any form of business transaction in which the parties interact
electronically rather than by physical exchanges or direct physical contact. E-commerce is
the use of electronic communications and digital information processing technology in
business transactions to create, transform, and redefine relationships for value creation
between or among organizations, and between organizations and individuals. E-
commerce is usually associated with buying and selling over the Internet, or conducting
any transaction involving the transfer of ownership or rights to use goods or services
through a computer-mediated network. E-commerce applications began in the early 1970s
with such innovations as electronic transfer of funds. However, the applications were
limited to large corporations and a few daring small businesses. Then came electronic
data interchange (EDI), which added other kinds of transaction processing and extended
11
participation to all industries. Since the commercialization of the Internet and the
introduction of the Web in the early 1990s, EC applications have rapidly expanded. The
field of e-commerce is broad.
Evolution of E-Commerce in India

The rapid development in communication technology results in rapid growth in internet
and smartphone penetration in India. Introduction of 4G technology and availability of
internet data at affordable prices, the number of internet users reached 718.74 million in
2019, and smartphone users reached 502 million in 2019. An increase in usage of the
internet and smartphone results in the rapid growth of the ecommerce industry in India.
India’s e-commerce market reaches $50 billion and is expected to reach $99 billion in
2024.India has emerged as one of the major players on the new international business
scene. Its unstoppable economic growth since reforms in 1991 has become the focus of
attention of researchers in the area of international business and management. The
purpose of this paper is to review the impact of e-commerce on Indian Commerce that has
been published in top business and management journals, with the aim of knowing what
are the most influential papers, what are the issues that have received the most attention,
which are the main findings or what more needs to be done in terms of research.E-
commerce is a paradigm shift. It is a ``disruptive” innovation that is radically changing
the traditional way of doing business. Electronic commerce is a type of business model,
or segment of a larger business model, that enables a firm or individual to conduct
business over an electronic network, typically the internet. E-commerce is the buying and
selling of goods and services, or the transmitting of funds or data, over an electronic
network, primarily the Internet. These business transactions are business-to-business,
business-to-consumer, consumer-to-consumer or consumer-to-business. The term e-tail is
used in reference to transactional processes around online retail. E-commerce is
conducted using a variety of applications, such as email, fax, online catalogs and
shopping carts, Electronic Data Interchange (EDI), File Transfer Protocol, and Web
services. It can be thought of as a more advanced form of mail-order purchasing through a
catalog. E-Commerce is the movement of business onto the World Wide Web.The launch
of the World Wide Web gave rise to the concept of online shopping. The first Worldwide
Web server was created by Tim Berners-Lee in the year 19901. In the year 1991, it was
made open for commercial use. In 1994, some advances took place in this field and it
12
leads to starting of online banking services by some banks. In the same year, an online
pizza shop was started by Pizza Hut. Amazon, an American-based company launched its
first online shopping site in the year 1995. In India, the first online shopping website
fabmart.com (later renamed Indiaplaza) was launched in the year 1993. Online shopping
is changing the way consumers buy goods and services. With rapid development in
communication technology, many companies have started their online shopping websites
and also launched mobile App to make online shopping more convenient. the effects of e-
commerce are already appearing in all areas of business, from customer service to new
product design. It facilitates new types of information-based business processes for
reaching and interacting with customers like online advertising and marketing, online
order taking and online customer service. The growth in e-commerce has changed the
way of shopping in many ways. A large number of people prefer to purchase products and
services online rather than going to a physical store. This trend of growth in ecommerce
will further boost in the future due to the many advantages of online shopping over
offline shopping. The current growth is not the result of one or two days but it is achieved
after the long journey. Therefore, there is a need to understand the history of e-commerce
in India. Below given timeline helps to understand the history of e-commerce in India
 1995 – Launch of dialup internet in 6 cities of India
 1996-97 – Launched first online matrimonial site bharatmatrimony.com in
India.
 1997 – Launch of online banking by ICICI bank
 1999 – Launch of first online departmental store fabmart.com, later it was
renamed as Indiaplaza. Rediff also introduced online shopping this year.
 2000 – Online shopping site launched by IndiaTimes. In the same year,
bazee.com was launched which is dedicated to buy and sell pre-owned
products. Later on, bazee.com was acquired by USA-based company eBay.
 2002 – Launched online rail ticket booking facility by Indian Railway. First-
time Indian people feel safe while making online payments through credit
cards because this site was under the surveillance of the government.
 2003 – Launch of online air ticket booking by Air Deccan.
 2005 – Launched online air ticket booking site MakeMyTrip.com.
 2007 – Launched bookmyshow.com, dedicated to making online booking of
movies show in the multiplex.
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 2007 – Sachin Bansal and Binny Bansal from India launched Flipkart. Flipkart
introduced many new ideas in online shopping. Deep Discount strategy and
excellent customer service have created a long-lasting impact on online
shoppers. Flipkart makes online shopping popular and convenient. Flipkart
was acquired by US-based retail chain Walmart in 2018.
 2009 – launched Myntra.com, initially engaged in personalized products.
Later, the company expanded its catalog to retail fashion and lifestyle
products.
 2012 – An Indian fashion and lifestyle e-commerce portal jobong.com was
launched. It was the most visited site in India in 2013.
 2013 – An USA base company Amazon launched its site in India. Initially, it
started with electronics products and now expanded into fashion, lifestyle,
kitchen Appliances, healthcare, digital content, and many more. Amazon is
India’s top e-commerce site.
 2014 – Flipkart acquired online portal Myntra.
 2017 – Flipkart acquired online portal eBay.in.
14
BACKGROUND OF THE STUDY
E-commerce is platform of communication through internet that takes place between
companies and their customers (Whitely, 2000). The e-commerce provides various
services such online shopping, online bank and E-enterprise which are also emerging
trends on their own. Online shopping is one biggest service of e-commerce which allows
consumers to buy, order and view goods and service on online through their gadget,
anywhere they are (Dennis et al. 2004; McCormick, 2009). Based on fact that world is
connected through internet and the new generation prefer to utilise technology than do
things in manual process (going physical retail). E-commerce, commonly known as E-
commerce, has become a popular way of buying and selling of goods and services online
using computer networks such as internet. This new innovation of trading not only brings
a great number and variety of merchandise to potential consumers, but also offers a
numerous business activities and huge market. However, the history of E-commerce
begins with the invention of the telephone at the end of last century. EDI (Electronic Data
Interchange) is widely viewed as the beginning of E- commerce if we consider E-
commerce as the networking of business communities and digitalization of business
information. Originally, electronic commerce meant the facilitation of commercial
transactions electronically, using technology such as Electronic Data Interchange (EDI)
and Electronic Funds Transfer (EFT). These were both introduced in the late 1970s,
allowing businesses to send commercial documents like purchase orders or invoices
electronically. The growth and acceptance of credit cards, automated teller machines
(ATM) and telephone banking in the 1980s were also forms of electronic commerce.
Another form of E-commerce was the airline and railway reservation system. From the
1990s onwards, electronic commerce would additionally include enterprise resource
planning systems (ERP), internet marketing, supply chain management, data mining and
data warehousing. In the dot com era, it came to include activities more precisely termed
“Web Commerce”- the trading of goods and services over the World Wide Web, usually
with secure connections (HTTPS, a special server protocol that encrypts confidential
ordering data for customer protection) with e-shopping carts and with electronic payment
services, like credit card payment authorization. Although the Internet became popular
worldwide around 1994, when the first internet online shopping started, it took about five
years to introduce security protocols and Digital Subscriber Line (DSL) allowing
continual connection to the Internet for electronic transactions. By the end of 2000, many
15
European and American business companies offered their services through the World
Wide Web. Since then people began to associate a word “E- commerce” with the ability
of purchasing various goods through the Internet using secure protocols and electronic
payment services. Today E-commerce encompasses a very wide range of business
activities and processes, from e-banking to offshore manufacturing to e-logistics. E-
commerce is a paradigm shift. It is a ``disruptive” innovation that is radically changing
the traditional way of doing business. Electroniccommerce is a type of business model, or
segment of a larger business model, that enables a firm or individual to conduct business
over an electronic network, typically the internet. E-commerce is the buying and selling
of goods and services, or the transmitting of funds or data, over an electronic network,
primarily the Internet. Almost anything can be purchased through e-commerce today,
which makes e-commerce highly competitive.E-commerce courses equip learners with
the skills to build and manage online businesses. Introductory classes cover key topics
such as setting up online stores, digital marketing, and customer engagement strategies.E-
commerce is fast gaining ground as an accepted and used business paradigm. More
and more business houses are implementing web sites providing functionality for
performing commercial transactions over the web. It is reasonable to say that the
process of shopping on the web is becoming commonplace. The objective of this
project is to develop a general-purpose e-commerce store where product like clothes
can be bought from the comfort of the home through the Internet. However, for
implementation purposes, this paper will deal with an online shopping for clothes. In
the current business around the world, most of organizations tend to expand their
market channels towards online market, aiming for increasing income, awareness and
reliability, with capability of worldwide connection and convenient access, Internet is
the most preferred media used by companies to serve this purpose. Of course, it
facilitates online technology which is used to achieve online business development. An
online store is a virtual store on the Internet where customers can browse the
catalogue and select products of interest. The selected items may be collected in a
shopping cart.The Internet and information and communications technologies (ICT) are
central to economic growth and productivity. Internet-based technologies and networks
can increase productivity, decrease costs and open new market opportunities. Now-a-
days, using the Internet and email to conduct business is not uncommon. However, lack
of technical and management skills in Information and Communications Technology is a
barrier. There are a wide variety of resources available to help you to improve 3 your e-
16
commerce skills. Simply, decide what skills you need and identify the appropriate
resources to help you to build those skills. The skills that may be required range from
basic abilities, like word processing and Internet navigation, to more complex capabilities
such as designing and building websites and database management. There are a range of
resources to help you broaden your understanding of the e-commerce environment and
develop your technical skills. These include online resources, books and magazines,
seminars and training courses. Keeping this in mind, a summary on the background of
Electronic Commerce is being provided.
HISTORY OF E-COMMERCE
The history of E-Commerce is an interesting one, tracing its roots back to the early days
of the internet. From humble beginnings as a way for individuals to buy and sell goods
online. It has grown into a multi-billion-dollar industry that has revolutionized the way
we shop. Today, online sales are commonplace and have become an integral part of our
lives. The development of eCommerce has been a long and winding road, and it is
important to understand how it all started.
• The history of Ecommerce seems rather short but its journey started over 40 years
ago in hushed science labs.
• In the 1960s, very early on in the history of Ecommerce, its purpose was to
exchange long distance electronic data. In these early days of Ecommerce, users
consisted of only very large companies, such as banks and military departments,
who used it for command control communication purposes. This was called EDI,
and was used for electronic data interchange.
• Originally, electronic commerce was identified as the facilitation of commercial
transactions electronically, using technology such as Electronic Data Interchange
(EDI) and Electronic Funds Transfer (EFT). These were both introduced in the
late 1970s, allowing businesses to send commercial documents like purchase
orders or invoices electronically.
• The growth and acceptance of credit cards, automated teller machines (ATM) and
telephone banking in the 1980s were also forms of electronic commerce.
• In 1982 Transmission Control Protocol and Internet Protocol known as TCP & IP
was developed. This was the first system to send information in small packets
17
along different routes using packet switching technology, like today's Internet! As
opposed to sending the information streaming down one route.
• Beginning in the 1990s, electronic commerce would include enterprise resource
planning systems (ERP), data mining and data warehousing.
• In 1995, with the introduction of online payment methods, two companies that we
all know of today took their first steps into the world of Ecommerce. Today
Amazon and eBay are both amongst the most successful companies on the
Internet.
• The growth and acceptance of credit cards, automated teller machines (ATM), and
telephone banking in 1980s were also forms of electronic commerce.
• Another line of E-commerce was the airline reservation system, for example Sabre
in the USA and Travicom in the UK.
• By the end of 2000, many European and American business companies offered
thWideeir services through the World Web.
• Since then people began to associate a word “E-Commerce" with the ability of
purchasing various goods through the Internet using secure protocols and
electronic payment services.
E-Commerce Pioneers
The birth of companies such as eBay and Amazon (launched in the year 1994) really
began to lead the way in e-commerce. Both eBay and Amazon were among the first to
establish prominent-commerce brands. The most prominent e-commerce categories today
are computers, books, office supplies, music, and a variety of electronics.The world of e-
commerce has undoubtedly transformed the way we conduct business and engage in
online transactions. While there are several key contributors to the development and
growth of e-commerce, one individual is widely recognized as the visionary pioneer of this
revolutionary concept. In this article, we explore the life and achievements of the father of
e-commerce, highlighting his significant contributions to the field. Furthermore, we
emphasize the importance of partnering with the best e-commerce development agency to
leverage his ground-breaking ideas and propel businesses towards digital
success.Amazon.com, Inc., founded by Jeff Bezos, was the original e-commerce pioneer
and certainly the most recognizable. In the beginning, Amazon’s business model required
massive investment in warehousing, delivery and fulfilment capability and took years for
18
Amazon to gain profitability. But finally, in the year 2003, almost 10 years after
launching the company, Amazon.com realized its first annual profit. Amazon began as
just an online bookstore but over the years has extended its offering to a wide variety of
product categories, including health and beauty products and even households’ goods.
Bezos, was responsible truly global presence with stand-alone websites in six other
countries, including the United Kingdom, Canada, France, Germany, Japan and China.
Amazon.com was also the original pioneer in affiliate marketing, allowing other websites
to earn sales commissions for referring Amazon products to their customers. Today,
Amazon generates anywhere between 30 to 40 percent of its total sales revenue from
affiliates or third-party merchants who list and sell their products on Amazons website.
Today the Amazon moniker certainly applies as it is one of the most recognized and most
profitable e-commerce businesses on the planet. In the year 1999, Jeff Bezos was
honoured with Time Magazine’s “Person of the year” award, immortalizing him as
forever probably the single most recognizable figure in the entire e-commerce
community.
Amazon and fellow e-commerce industry giant Dell remain two of the largest internet
retailers in the world, among other offline industry giants such as Staples, Office Depot,
and Hewlett Packard.Dell.com is another one of the most recognizable e-commerce
brands online. Dell.com‟s website was launched in the year 1994 with a single static web
page and their online presence quickly grew. In year 1997, Dell announced a single-day
sales record of a million dollars on its website. In fact, roughly half of Dell‟s total
profits come directly from their website alone. With no offline retail outlets to speak of,
Dell is another e-commerce pioneer that many businesses have tried to model themselves
after by selling products almost exclusively online.
The advent of e-commerce has revolutionized the way business is conducted worldwide,
and India is no exception. Over the past few decades, e-commerce in India has experienced
significant growth, transforming the retail landscape and offering unprecedented
opportunities for businesses and consumers alike. In this article, we delve into the early
pioneers who introduced e-commerce in India and shed light on the key players that have
shaped the industry. Additionally, we explore the importance of partnering with the best e-
commerce development company to thrive in this competitive market.The title of the
father of e-commerce in India sits lightly on K Vaitheeswaran, the entrepreneur who
19
founded India plaza, India’s first online shopping company in 1999 and since then has
been single-handedly championing the cause of the Indian e-commerce industry.
Today when there is a new founded enthusiasm on e-commerce and everyone from
bright-eyed entrepreneurs to over excited investors are going gaga over online shopping,
Vaithee (as he is popularly known to everyone) is satisfied with a “I knew this all along”
gleam in his eye. Ask him what is unique about India plaza and he says ‘It is the only
Indian online shopping company to have been in business since the last millennium! “Ask
him further whether being referred to as the “father of Indian e-commerce” makes him
feel old and his response is: “The best way to gain respect and credibility in any industry
is to spend a lot of time in that area and also grow old. I have managed both successfully.
Interestingly, we are in a business that is primarily targeted at the younger audience so the
trick is to think like them.”
20
CHAPTER 2
REVIEW OF LITERATURE
21
The literature review will be based on e-commerce as a whole and as you go further in the
literature review, you’d find more detailed review on mobile commerce and smart phone
consumer behavior in relation mainly with businesses and then look into elements like
entertainment, research and studies, and many other elements of e-commerce.
The term E-commerce is viewed as transactions conducted between business partners,
Electronic commerce is an emergence that describes the process of buying and selling or
exchanging of products, services and information via computer network that is primarily
the internet.In e-commerce processes, all aspects of trading are involved like the creation
of a virtual marketplace, providing product information, accepting the order, receiving
money, and delivering the order. Online shopping makes it possible to purchase goods
and services without leaving the home place. E-commerce helps business organizations to
reach a large number of potential customers than earlier. Small traders are also engaged in
e-commerce activity through some giant portals like Amazon, Flipkart, Snapdeal, etc.
Now a day, several small traders starting their websites for the online selling of goods and
services.
Sonnet and Gypsy (2014) has examined the significant issues and challenges in
promoting E- Commerce applications in India. Both the authors carried out the study
which primarily aims to identify the key drivers that influence the growth of E-Commerce
and also uncover the threats that E-Commerce firms are encountering in Indian markets.
The study also identifies some key factors for effective online shopping. These factors are
safe and secure payments; use of understandable language; cost effective methods of
advertisements; reliable and secure choice of servers; prompt delivery services; product
awareness and brand loyalty, etc. The author opines that along with the development in e-
commerce, there are unclarified security and privacy concerns among the customers. In
their article.
Dhiren and Deepak (2013) have discussed (a) Future prospectus of E-Commerce in
India, (b) Facilitators of E-Commerce, (c) Advantages and Challenges in E-Commerce,
(d) Threats involved in E-Commerce. The study examined that E-Commerce is a great
opportunities for retailers, distributors, wholesalers, producers and customers as a whole.
Some considerable factors like 24/7 operation, disintermediation, replacement policies,
invoices of online transactions, etc. will significantly contribute to the boom of E
Commerce industry.
22
In his study Rajendra (2015) has briefly examined the market and technology trends that
will define E-Commerce in near future. The study reported that one crucial issue from the
consumer viewpoint is the unclarified legal aspects, which are frequently causing
difficulties in exploiting the potential of E-Commerce. The author concluded that the
current problems faced by online providers is lack of trust in concluding virtual
transactions and management errors. Other problems like organization scaling; tax and
regulatory structure; digital experiences; fraud and cyber security are need to be
addressed.
In the review article, Abhijit (2013) have focused on the present status regarding single
and multi- product, present trends and facilitators of E-commerce in India. The study
analysed various bottlenecks of E-Commerce like logistic, taxation, and payment
collection. He rightly concludes that the dawn of the internet generation opened up
amazing new possibilities and e commerce has come out as a perfect amalgamation of
technology and marketing acumen.
In a study entitled, ‘Emerging trend of E-Commerce in India: Some crucial issues,
prospectus and challenges’, Sarbapriya (2011) presented a chronological array of
major affairs put ting forth the concerns regarding the growing of E commerce business
and the evolution of internet. The author also highlights different categories of E-
Commerce, which includes sectors such as Automobiles, Online trading in stocks and
shares, Real estate, Travel and Tourism, Gifts, Hobbies, Matrimony, Employment,
Online Retailing, Online advertisement, etc. Her study concluded that the government
should take subtle steps to provide proper legal framework regarding basic rights such as
privacy, intellectual property, prevention of fraud, consumer protection, etc.
Nitika and Deepam (2016) in their study enlists various factors crucial for the growth
of E- Commerce in the subjected location. Many of the reasons covered like Diligent
lifestyle; High disposable income; knowledge of products; Rise in the educational level
of computers, Increased usage of internet data, etc. are considered behind the growth of
E-Commerce in India. The results obtained from the study revealed that the basic hurdle
for the rapid growth of e commerce is due to low literacy, transportation facilities and
unavailability of broadband services. These factors are still very prominent in remote
areas.
23
Nisha and Sangeeta (2012) in their study examined the various segments that will
grow in future. Some essential factors like Customer convenience, Return policies,
Location based services, multiple payment options, Price comparability, Shipment
options, Quality check, Customer care center, Logistics, Legal challenges, etc. In India,
the future of E – Commerce appears to be bright in the coming years, if all essential
factors would be implemented properly. Realising this, will contribute to the boom of E
– Commerce Industry in India. The study also include some expert views regarding
future growth of e commerce in India given by reputed company dignitaries.
Kishore and Affreen (2015) in their study attempted to define the terms of E-
Commerce, key drivers of growth, Challenges and future of e commerce. Their study
indicate that the rapid growth of e commerce is challenged by legal hassles which need
to address early. Companies need to work hard to provide better service to customers.
In the article, Ashok et al. (2016) analyze the current as well as future of electronic
business in India. Their study also highlights the key factors that are responsible for the
growth of E- business in India. The results obtained from the study reveals that there is
a need of increasing awareness among consumers about product quality, change in
consumer habits and shopping habits.
Naveen (2018) in his study discuss the present and future scenario of E-Commerce in
India. The author briefly explains E-commerce business models (B2B, B2C, C2B and
C2C). Barriers like Poor internet fluency, unsecured security system, Logistic supply
chains, Tax framework, High competition, Absenteeism of cyber laws, etc. are being
reflected in the study. The study indicates that E-Commerce industry is the largest
growing industries at present in India, and is expected to grow by almost 4 times by
2021. There are massive opportunities of growth of E-commerce in future but there are
assertive challenges which need to be addressed properly.
In the review article, Rina (2016) gives an overview of applications related to E-

commerce. The study also focuses on certain challenges which are sometimes expensive
to handle for start-up business. These challenges are Electronic Infrastructure, Branding
and marketing, Decline of margins, Product supply chains, etc. keeping in mind, the
24
exponential increased dependency on digitalization, the author also left clues for certain
topics which could be aligned parallelly.
The study conducted by, Rajasekar and Sweta (2016) presents a surfing timeline pattern
of development of E-commerce starting from 1971 to 2015, to give review on the
occurrence of various events being published from time to time. It also critically
analyses the E-commerce with major drivers in India. Difficulties like credit facilities,
lack of trust, delay postal services, etc. make E-commerce reluctant and affect
development of E-commerce negatively.
After detail study of ‘Digital India with E-commerce Revolution in Rural India-
Transform India Digitally and Economically’ by Anooja (2015), it has been observed that
the author shows her concern with the government initiatives “Digital India” and its
impact on E-commerce industries for trading of rural Indians. The results obtained from
her study concluded that E-commerce companies have to choose some innovative
advertising and promotion strategies that can influence the rural markets electronically.
On the other side, government should spread better internet connectivity in rural areas
which would boost and empower E- commerce in rural areas.
Andrew (2001) in his study aimed to determine the compatibility between E -commerce
and global trade within the guidelines or the set of norms by the World Trade
Organization (WTO). The author begin his study with a workable definition of E-
commerce and also examines the growth and its impact on economy. The study goes on
to consider compatibility between E- commerce and global trade. The study also
concluded that few amendments are required in GATS so that agreements can easily
apply to E-commerce.
The study, Priya and Manjari (2015), attempts to provide a detailed study of Indian E-
Commerce sector with regard to the immense market potential which still remains
untapped. Further, the authors outlines major drivers and the conducive ecosystem, being
responsible for the growth of E-commerce segments in India. The study also focuses on
the advantages offered to the consumers along with the operational challenges of e
commerce.
In a study entitled, ‘Development of E-Commerce in India’, Behnaz et al. (2017)
examined the development of E-commerce in India on the basis of qualitative research
methodology. The study reported that e commerce divide into three broad categories
which includes physical goods, physical services and virtual goods. The study suggested
25
that the players of e-commerce need to concentrate on better innovation in order to tackle
various challenges in this field.
Elizabeth and Sue (2000), in their study examined the impact of E-commerce on
public policy initiative, consumer education and businesses. The study primarily aims to
explore some of the positives and negatives associated with the adoption of the world-
wide phenomena. The author rightly concludes that (a) more research work is sorely
needed on the public policy initiatives (b) the existing government norms lag in the field
of consumer experience. Creation of new laws and direct implementation are needed to
improve the situation rapidly and (c) Empowerment of the consumer, which is the
ultimate goal of consumer education, is an enormous challenge in the global electronic
market.
In an article entitled, ‘E-Commerce and its impact on Indian and Global market’,
Aparna (2017), made an attempt to find out the influence and growth of E-Commerce.
She also focus on its impact on national and global markets. All the major driving
factors for the growth of E- commerce sector in Indian market as well as global market
have been discussed in her study. She concluded that in recent coming years E-
commerce sector has various driving forces in national market which leads to higher
revenue generation. Also on the other side E-commerce is showing tremendous growth
in promotion of global business.
B.K and Priyanka (2018), in their study focuses on an interesting problem called “cold
start problem” and the ways of resolving it by products recommending from E -
commerce websites which don’t have historical purchase records. Further, the study
concluded that E-commerce can make use the channels of micro blogging to market
their products and services, using the vocal language. With the span of time the
boundaries between E-commerce and social networking has become blurred. E-
commerce websites now support media platform, which increasingly gaining popularity
within Indian rural markets.
The present study, Anuj et al. (2018) analysed the impact of E-commerce on Indian
economy. Authors give critical review on the roles of entrepreneurs and the decreasing
value of ease of doing business. They concluded that (a) with more literacy rate of the
nation, the growth of E- commerce in a country will be more, (b) for encouraging E-
26
commerce in India, government are making necessary changes to promote digitalization.
The study looks towards the role of government in e-commerce industry and various
hurdles of e-commerce in Indian aspects.
➢Kumar, N., (2019) in their study mentioned tremendous growth in e-commerce is

expected to rise 4 times by year 2021 in comparison to 2015. Major contributors to this
growth are going to be smartphones and internet users, rise in awareness among general
public, better internet services, digitalization of most of the initiatives with the support of
government, entry of foreign investors and business players, advanced payment options
available to consumers. And the study concluded that the Government needs to take steps
to provide proper legal framework and minimize obstacles in growth, which improves
their competitiveness globally.
➢Mahipal, D., (2018) had tried to mention in his paper about different phases of internet
from year1995 to present era which has marked a continuous development in E-
commerce. Further, the study concludes that with this tremendous growth of E-
commerce in coming years provided there will be security in legal framework and e-
commerce so that domestic and international trade could expand.
➢Khosla and Kumar (2017) in their report coined that some of the trends expected to
come in near future in E-commerce can be growth in Omni channels, niche businesses,
mergers and acquisitions, trapping more rural markets, rise in internet marketing, focus
on services, rise in digital payment modes, better infrastructure and supply chain
management. Thus, the report concluded that through using E-commerce, rural
companies can connect with their trading partners for ‘just in time production’ and ‘just in
time delivery’
➢Shahjee, R., (2016) reported that E-commerce has given a platform to companies to
display their varied products and to make it easy for consumers to quickly find out
products of their interest, which was comparatively difficult by marketing traditionally.
But on the contrary, e commerce is facing lot of difficulties related to infrastructural
capabilities and computer and internet lack of knowledge among consumers, especially in
rural areas.
27
➢Nanehkaran, Y. A. (2013) stated that Electronic Commerce is a powerful concept and
process that has fundamentally changed the current human life. It is one of the main
criteria of revolution of Information Technology and communication in the field of
economy.
➢ This is again very similar to what Gangeshwar, D.K. (2013) had mentioned in their
analytical report. They mentioned that the effects of E-commerce already appear in all
areas of business, from customer service to new product design. It facilitates new types
ofinformation-based business processes for reaching and interacting with customers like
online advertising and marketing, online taking order and online customer services etc.
Concluding, it stated that E-commerce reduces cost in managing orders, interacting with
wide range of customers and trading partners as all the procedures are done through
online.
➢Goele, S., Chanana, N., (2012) mentioned in their study that some of the industries
like Travel and tourism, electronic, hardware products and apparel are going to boom in
the coming future with the help of E-commerce. Some of the factors which will
contribute to this growth are M-commerce, replacement guarantees, different payment
modes, logistics and shipment options, product quality standards, customer care services.
Thus, there is a growing interest in the use of E-commerce as a means to perform
business transaction.
➢Kedah, Z. (2023) focuses on the use of E-commerce in the business realm underscores
its transformative impact on global markets. Scholars emphasize its role in fostering
efficiency, expanding market reach, and enhancing customer experiences. Studies delve
into the challenges posed by cybersecurity and privacy concerns, highlighting the need
for robust digital infrastructure. The evolving landscape of E-commerce continues to
shape business strategies, prompting ongoing research to understand its implications on
traditional commerce and the broader socioeconomic fabric.
➢Akhmetova, Z., Baimukhanbetova, E., Belgozhakyzy, M., Alikbaeva, A., &

Tulebaeva, N. (2020) emphasize the significance of robust technological frameworks and
28
secure online platforms. The review highlights the interplay between regulatory
frameworks, cybersecurity measures, and the scalability of e-commerce infrastructure.
This research illuminates the importance of adapting to modern conditions, emphasizing
how well-established e-commerce infrastructure fosters growth, innovation, and sustained
success in the dynamic digital landscape of contemporary business environments.
➢Rav en et al.compared India and China’s approaches in adoption of e -

business. Based on the literature survey and secondary data, the study analysed
various factors inﬂuencing the growth of e-businesses in the two countries. The
factors examined inclu de government policy and focu s, existing technology
infrastructure regulatory environment, experience and understanding of business
operations, and culture, among others. The study concludes that China appears to be
ahead of India in the infrastructure, but India is ahead in e -readiness. Further, it
states that both countries are poised for rapidly increa sing e-bu siness,
however, problems of poverty and inequality between u rban and rural
connectivity mu st be resolved to really take advantage of e -business in both the
countries.
29
CHAPTER 3
RESEARCH METHODOLOGY
30
RESEARCH METHODOLOGY
In this project report, the research methodology has been done based on mainly Primary
Data. The research methodology is planned to know and understand the different
objectives of the study on E-commerce. In this particular study, Meta-Analysis Method is
used to systematically collect, evaluate, analyse and summarize the results from a number
of respondents.
Methodology
As the study deals with factors like customer expectations about the quality involved in
E-Commerce activities as well as the problems faced by the companies at the time of
providing products and services, the research is based on direct personal investigation and
online reply by the respondents. For this purpose two specific research instruments
‘Questionnaire and Interview Guide’ are used. The study is survey in nature with
Qualitative and Quantitative approach. As a tool the study has used Questionnaire at large
and Interview Guide to a small extent to collect more in-depth information. In all
240people were selected for each product across all socio-economic strata as the sample
ofthe study.
Research Design:
Survey
Research Instrument
Pre-tested structured questionnaire with both open-ended and close-ended questions and
in-depth interviews with for customers, managers and employees involved in E-
Commerce activities.
Sample Unit
Residents of India in the age group of 16 – 60 years who are the managers and employees
of E-Commerce companies or customers of the products of last five years are selected.
This period is selected as maximum online products are being available to the customers
in the last years five years.
31
Sample Techniques
Simple stratified random sampling and interview techniques are used for the study. In
present study researcher has used analysis of the primary and secondary data. The
research survey is limited to the E-Commerce activities of customers. Around
30customers of every type of E-Commerce, 30 employees of Business to Employee E-
Commerce as well as managers of every type of E-Commerce are selected using random
sample technique. There are so many Indian E-Commerce companies as well as the
international brands are available for E-Commerce transactions. While selecting the
companies and the customers ‘Lottery Method’ was adopted. In this study sample
statistical techniques will be used to ascertain desired results by way of data analysis.
Research Area
E-Commerce companies are located in Mumbai, Pune, Delhi and Bangalore. The western
line of Mumbai the area like Andheri, Boriwali, Bandra are located in the south-east ofthe
state. There are so many Indian E-Commerce companies as well as the international
brands are available for E-Commerce transactions. So many private companies
likeFlipkart.com as well as government companies like irctc.co.in etc are studied. In this
study sample statistical techniques are used to ascertain desired results by way of data
analysis. The companies are selected from various segments based on types of online
business activities and customers or employees attached to it.
Research Design
As the study deals with factors like E-Commerce types, quality issues and problem areas,
the research is based on direct personal investigation on these parameters. For these
purpose two specific research instruments ‘Questionnaire and Interview Guide’ are used.
The study is a survey in nature with both Qualitative and Quantitative approach. As a tool
the study has used Questionnaire at a large and Interview Guide at a small extent to
collect more in-depth information about the quality issues of E-Commerce.
STATEMENT OF THE PROBLEM:

One of the prominent applications of internet is E-Commerce – the business through
computer network. The growth and penetration level of E-Commerce is very low in India
when compare to other developing nations in the world, where the Indian share is
just1.26% of world E-Commerce trade. The primary investigation revealed that there are
any quality issues in E-Commerce applications as well as there are some problems in the
32
implementation of E-Commerce practices. The study is focused on applications of Total
Quality Management (TQM) to address various critical quality issues of E-Commerce
hampering the growth of the sector. The TQM approach has to be thoroughly tested forall
forms of E-Commerce.
Objectives
• To study the lower penetration of E-Commerce.
• To study various forms of E-Commerce and related quality issues.
• To study the characteristics of TQM as a solution and resolve the quality issues of
E-Commerce
• To understand the different models of E-commerce.
• To find out the awareness and usage of E-commerce among customers of different
age group.
• To identify which E-commerce website is mostly preferred by the customers and
for which product category.
• To know which payment method is mostly selected by the customers to make
payments through E-commerce for online shopping.
• To analyse the satisfaction level of the customers for the selected online products.
• To find out, whether in this pandemic situation E-commerce has made our life
easier or not.
• To get a full acquaintance of the E-commerce in india.
• To analyse the factors responsible for the non-accessibility of E-commerce still
now.
• Lastly, to give the suggestions for the improvement in E-commerce.
• To know the challenges in E-commerce.
• To know the current scenario in India.
• The primary goal of E-commerce is to reach as many customers as possible at the
right time to increase sales and profitability.
• To study the factors affecting decision making towards E-commerce.
• To study sales promotional techniques to boast online purchasing in India.
• Satisfaction level at various components of online purchasing.
The objectives of this capstone project are designed to guide the research process
systematically, ensuring a comprehensive exploration of the significance of E-commerce
in the modern business landscape. The objectives can be categorized into primary and
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secondary goals, each contributing to a holistic understanding of the subject matter.
Objectives of E Commerce successfully is both intriguing and daunting. This constant
pressure to satisfy customers and navigate potential pitfalls.
NEED OF THE STUDY:

E-commerce helps you take your brick and mortar store online in a creative, more
attractive, and easier way. When you offer quality products round the clock along with a
dedicated customer support team, social media interactions, knowledge-base, blogs, etc.,
you are creating a strong online presence for your brand. Electronic plays an essential role
in advancing information technology and the communication. This is particularly true in
the realm of the economy. In the age of globalizing economics, many markets have
become progressively international and competitive. E-Commerce or Electronic Commerce
means buying and selling of goods, products services over the internet. E-commerce is also
Hypothesis
One of the most important motives of this study is to evaluate the critical elements in formulating long
term E-Commerce strategies like customer expectations of quality, the problems during transactions
and the risk involved. The study is also an attempt to find the problems of companies providing
products and services as well as the importance given to employees through the involvement in the E-
Commerce improvement process by considering them as internal customers of the organization. This is
one of the effort made to cover all aspects of E-Commerce and socio-economic sections of the society.
Following are the main and the specific hypothesis of the study.
Main Hypothesis
The companies that are doing business through E-Commerce have notbeen successful in
developing long term E-Commerce strategies.
Specific Hypothesis
1.E-Commerce penetration levels are lower due to lack of customer centric approach.
2. E-Commerce penetration levels are lower due to lack of consideration of employee as
the internal customer.
3. All forms of E-Commerce are having diversified quality issues.
4.TQM is the method to resolve the quality issues of all E-commerce today
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SCOPE OF THE STUDY:
The potential for e-commerce development is enormous. Now a days one can buy
products online through some sites like Flipkart and Amazon. In the age of e-commerce
everything from gym equipment to laptops are available online. E-Commerce is a super
set of business cases. It includes E-trading, E-Franchising, E-Mailing, E-Engineering etc.
Scope of e-commerce can be enumerated as follows:
1. Exchange of digitized information
2. Technology-enabled
3. Customers retention
4. Accounting
5. Supplier integration
6. Support the exchange
❖SOURCE OF DATA:
For studying the influences and preferences of customers towards E-commerce, data have
been primarily collected from the responses of the people through the survey method.
This method is followed to get unbiased answers of the questionnaire.
LIMITATIONS OF THE STUDY:

 The Study of the Project is limited to significance of e-commerce in today’s
business scenario
 The sample size of the Project is restricted to only 100 respondents.
RESEARCH GAP:
The research gaps in e-commerce include the need for more sustainable practices There is
a lack of research that integrates sustainability transitions (ST) into the context of e-
commerce E-commerce has the potential to lead to sustainable logistics, but more
empirical research is needed to confirm this, The research on e-commerce supply chain
management is extensive, but there is a need to explore emerging topics such as live-
streaming, emerging technologies, disruption risk, and behavioural preference,
Additionally, there is a research gap in understanding the relationship between e-
commerce and digital transformation, which requires more comprehensive analysis and
visualization.
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CHAPTER SCHEME:
The present project report is mainly divided into four chapters with reference: -
➢Chapter 1- Introduction - Which covers the introduction of the topic (The study on
significance of e-commerce in today’s business scenario), Evolution of e-commerce,
involving a brief background of the study on E-commerce, History of e-commerce, E-
commerce pioneers, etc….
➢Chapter 2- Review of literature.
➢Chapter 3- Research Methodology- Research gap, Statement of the problem and
justification of the study, Need of the study, Objectives of the study, Scope of the study,
Research Methodology, Delimitation of the study, Chapter scheme.
➢Chapter 4- Conceptual Framework – Definitions of e-commerce, examples of e-
commerce, Applications of e-commerce, features of e-commerce, it also includes
different models, advantages, disadvantages relating to the topic E- commerce, E-
commerce opportunities and challenges, Factors influencing e-commerce
development,besides these, the national and international scenario of E-commerce.
➢Chapter 5 – Profile of e-commerce websites.
➢Chapter 6 - The current E-commerce Scenario and growth prospects of E-commerce

in India.
➢Chapter 7- Presentation of Data, Analysis and Findings, where the collected primary
data through a survey have been presented with the help of different charts and tables.
Thereafter, the analysis on the mentioned data has been made using statistical tools.
Based on this analysis, the interpretation has been made to bring out the findings as per
the objective of the study.
➢Chapter 8 – Summary of findings, Conclusion and Recommendation, which covers a

final conclusion based on the main findings of the study on E-commerce. And also,
several recommendations for the improvement in E-commerce have been made.
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CHAPTER 4
CONCEPTUAL FRAMEWORK
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E-commerce framework is related to software frameworks for e-commerce applications.
They offer an environment for building e-commerce applications quickly. E-commerce
frameworks are flexible enough to adapt them to specific requirements. As result, they are
suitable for building virtually all kinds of online shops and e-commerce related web
applications. E-commerce stands for electronic commerce and relates to trading in goods
and services through the electronic medium, i.e. the Internet or phone. On the Internet, it
pertains to a website, which sells products or services directly from thesite using a
shopping cart, shopping basket system, and allows credit card payments. It involves
conducting business with the help of the electronic media, making use of the information
technology such as Electronic Data Interchange is (EDI). In simple words, Electronic
commerce involves buying and selling of goods and services over the World Wide Web.
Customers can purchase anything right from a car or a cake sitting comfortably in his
room and gift it to someone sitting miles apart just by click of a mouse, E-commerce
(electronic commerce or EC) is the buying and selling of goods and services on the
Internet. In practice, this term and e-business are often used interchangeably. For online
retail selling, the term e-tailing is sometimes used. Ecommerce, e-commerce, or electronic
commerce is the conduct of a financial transaction by electronic means. With the huge
success of commerce on the Internet, ecommerce usually refers to shopping at online
stores on the World Wide Web, also known as ecommerce Web sites. E-commerce can be
business to business (B to B) or business to consumer (B to C). Today, we can see e-
commerce is becoming a part of study of almost all the courses in management and
commerce. It is an integral part of any book or manuscript that is written on retailing, and
it claims a significant share in this text also. The reason behind this lies in the fact that e-
commerce technology is different and more powerful than any of the other technologies
we have seen in the past century.
DEFINITIONS OF E-COMMERCE
The term was coined and first employed by Robert Jacobson, Principal Consultant to the
California State Assembly's Utilities & Commerce Committee, in the title and text of
California's Electronic Commerce Act, carried by the late Committee Chairwoman Gwen
Moore (D-L.A.) and enacted in 1984.
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The term Electronic Commerce or E-commerce is defined as any sort of business
transaction that involves the transfer of information through the internet. It means using
the Internet and the web for business transactions and/or commercial transactions, which
typically involve the exchange of value (e.g., money) across organizational or individual
boundaries in return for products and services. Thus, by definition it covers a variety of
business activities which use internet as platform for either information exchange or
monetary transaction or both at times.
Following are well known definitions of E-Commerce,

The World Trade Organization defines,
E-commerceas, "E-commerce is the production, distribution, marketing,sales or delivery
of goods and services by electronic means."
The Organization for Economic Co-operation and Development (OECD),

E-commerce means “commercial transactions, involving both organizations and
individuals, that are based upon the processing and transmission of digitized data,
including text, sound and visuals images and that are carried out over open networks
(like, the internet) or closed networks (like, AOL or Mintel) that have gateway onto an
open network
Oxford Research Encyclopaedia’s,
Defines e-commerce as the purchase or sale of goods or services over any kind of
computer network, including the internet, an extranet, or an electronic data interchange
(EDI) network.
The OECD definition for ecommerce has been adopted by Governments and their
agencies in most of the major economies. It is:
“the sale or purchase of goods or services, conducted over computer networks by methods
specifically designed for the purpose of receiving or placing of orders. The goods or
services are ordered by those methods, but the payment and the ultimate delivery of the
goods or services do not have to be conducted online. An e-commerce transaction can be
between enterprises, households, individuals, governments, and other public or private
organisations. To be included are orders made over the web, extranet or electronic data
interchange. The type is defined by the method of placing the order. To be excluded are
orders made by telephone calls, facsimile or manually typed e-mail.”
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According to Phillip Kotler, “E-commerce can be defined as a general term for buying
and selling processes that is supported by electronic means”
According to Thomas L. Mesenbourg,

“E-commerce as the buying and selling of goods or services over the internet, or any
transaction involving the transfer of ownership or rights to use goods or services
through a computer-mediated network”. E-commerce is usually associated with buying
and selling over the Internet.
According to Zwass (1998),

“E-commerce is the sharing of business information, maintaining business relationships,
and conducting business transactions by means of telecommunications networks.
EXAMPLES OF E-COMMERCE:
The following are the various examples of E-commerce, they are as follows:
➢Retail: The sale of products directly to consumers (without any intermediary) via
AMAZON, FLIPKART, SNAPDEAL etc.
➢Drop shipping: The sale of products that are manufactured and shipped to consumers
through a third party via WAYFAIR etc.
➢Digital products: Downloadable items like templates, courses, e-books, software, or

media that must be purchased for use. Kendle, wordpress.org, filehippo.com etc.
➢Wholesale: Products sold in bulk. Wholesale products are usually sold to a retailer,
who then sells the products to consumers via INDIAMART etc.
➢Services: These are skills like coaching, writing, influencer marketing, etc., that are
purchased and paid for online i.e. brainly.in, vedantu.com, unacademy.com etc.
➢Subscription: A popular D2C model, subscription services are the recurring purchases
of products or services on a regular basis i.e. AMAZON PRIME, NETFLEX etc.
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➢Online shopping: Consumers can buy products and services online using a website or
marketplace.
➢Mobile commerce: Customers can shop online using their mobile phones.
APPLICATIONS OF E-COMMERCE
E-commerce, or internet commerce, has many applications, including:
❖BANKING: E-banking allows customers to perform transactions online, such as
balance checks, bill payments, and money transfers.
❖MANUFACTURING:E-commerce allows manufacturing businesses to streamline

the process of purchasing and selling components and products to other businesses.
❖RETAIL AND WHOLESALE: It’s a type of business-to-consumer e-commerce and
in some cases B2B commerce. The retailers use the e-catalog to showcase their products
on various websites like Amazon, Flipkart, etc. and the payment is done through the E-
payment method.
❖FINANCE SECTOR: Finance and e-commerce are more connected than ever before.
Banks use e-commerce extensively in their operations. Check balances, debt repayments,
transfers, and other resources are available in online banking.
❖PRODUCTION SECTOR: In the manufacturing industry, e-commerce serves as a

platform for firms to conduct e-transactions.
❖MARKETING SECTOR: With the help of various data analytics tools, the data of
customers is collected which is then used in marketing activities to show the products you
like and recent searches across various platforms.
❖AUCTIONS: An auction helps to break the geographic boundary and helps people to
trade items with their price. For example, booking window seats in the train, buses, etc.
This is a type of e-commerce that can be used for a variety of purposes, it is generally e-
commerce auctions or online auctions.
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❖ANALYTICS:E-commerce businesses can use analytics to understand the customer
experience and identify pain points by analysing customer behaviour and website
performance.
❖MOBILE AND WEB APPLICATIONS:E-commerce is usually done with the help
of websites or applications. Mobile applications are considered to be the heart of E-
commerce.
❖TRADE: Applying e-commerce to trade elevates it to a higher level, allowing

individuals to participate without regard for geographical borders. This encourages more
participation, more bargaining and contributes to the success of the trade.
❖DIGITAL SHOPPING:People's buying habits have shifted dramatically in the

previous several years. "Go online" has become a success mantra for all
enterprises. Online shopping is easy, pleasant, and, in most cases, inexpensive. The
success of online shopping applications like FLIPKART and AMAZON demonstrate it.
E-commerce applications is a somewhat confusing terminology since it may lead to two
different interpretations: one that refers to the use of e-commerce as a marketing medium;
retail and wholesale; auctioning; e-banking; booking, and so on. E-commerce
applications is a slightly confusing phrase since it leads to two different perceptions: one
where it refers to the use of e-commerce as a medium of marketing; retail and wholesale;
auctioning; e-banking; booking, and so on.
FEATURES OF E-COMMERCE
E-commerce, often known as electronic commerce, refers to the online buying and sale of
products and services. In 1994, a man sold a Spider CD to a buddy via his online presence
Net Market, a platform for American retailers. This is the first instance of an end user
purchasing an item from a company via the World Wide Web, which is commonly
referred to as e-commerce. Following that, e-commerce developed to make it simpler to
find and buy things via online retailers and marketplaces’-commerce is a business model
or a larger business model that allows companies or individuals through the electronic
network. E-Commerce has certain key features which are explained as follows: -
➢Technology-Enabled: Traditional commerce is taking place since times immemorial

but E-commerce is result of integration of digital technology with business processes and
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commercial transactions. The technological foundations of E-commerce are internet,
WWW and various protocols.
➢Technology Mediated: In E-commerce buyers and sellers meet in cyber space rather
than physical place. Hence E-commerce does not involve face to face contact.
➢Universality: Buying and selling take place through websites in E-Commerce. The
websites can be accessed from anywhere around the globe at any time therefore it
possesses the feature of universality.
➢Intercommunication: E-commerce technology ensures two-way communications

between buyer and seller. On one hand by using E-commerce firms can communicate
with
customers through E-commerce enabled websites. On the other end, customers can also
fill order forms, feedback forms and can communicate with business operating firms.
➢Delivery of Information: E-commerce serves as the best channel of communication.

E-commerce technologies ensure speedy delivery of information at very low cost and
considerably increase information density as well.
➢Electronic Completion of Business Processes: By using E- commerce we can perform

business transactions like accounting and inventory through computers at global level.
➢Inter-Disciplinary in Nature: Implementation of E-Commerce needs a lot of

knowledge of managerial, technological, social and legal issues. Besides this,
understanding of consumer behaviour, marketing tools and financial aspects is as crucial
as designing interactive E- Commerce websites.
➢Customization: With the use of E-commerce technology, the world is moving from
mass-production to mass-customization. Product customization ensures that goods are
tailor made as per the requirements and preferences of customers.
➢Global reach: Technology has no bounds and extends across national borders all
around the world. Customers from the rest of the globe can readily visit a company that
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launches an e-commerce website. A company's clients with e-business solutions are equal
to the world's whole population.
➢Wealth: E-commerce has advantages over conventional trade. E-business ways to
communicate are many. Customers may learn more regarding the products and services
that they wish to buy by reading the content of communications offered by e-businesses
such as text, video, image, communication, sounds, links, and so on.
➢Ubiquity: E-Commerce is ubiquitous, it is available just about everywhere and at all
times by using internet and Wi-Fi hotspot such as airport, coffee cafe and hill station
places. Consumer can connect it to the Internet at any time, including at their homes, their
offices, on their video game systems with an Internet connection and mobile phone
devices. E-Commerce is ubiquitous technology which is available everywhere Moreover,
individuals who have cell phones with data capabilities can access the Internet without a
Wi-Fi connection.
➢Universal standards: The technical standards of the Internet are shared by all of the
nations in the world. The whole online tradition is growing and expanding their features
in the world. To development any kind of business need Internet and communication
application which make the business relationship more lovingly and attractive for secure
business and successful business. 1.4.4 Richness: Users can access and utilize text
messages and visual and audio components to send and receive information. An
individual may see information richness on a company's blog if a post contains a video
related to a product and hyperlinks that allow him to look at or purchase the product and
send information about the post via text message or email.
E-commerce, often known as electronic commerce, refers to the online buying and sale of
products and services. In 1994, a man sold a Spider CD to a buddy via his online presence
Net Market, a platform for American retailers. This is the first instance of an end user
purchasing an item from a company via the World Wide Web, which is commonly
referred to as e-commerce. Following that, e-commerce developed to make it simpler to
find and buy things via online retailers and marketplaces. Technical assets that include
managing the supply chain, internet marketing, electronic payment processing, a system
for managing information, and a system for inventory control enable e-commerce.
MODELS OF E-COMMERCE
If you're starting an ecommerce business, odds are you'll fall into at least one of these four
general categories. Each has its benefits and challenges, and many companies
simultaneously operate in several. Knowing what bucket your idea fits in can help you
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think creatively about what your opportunities and threats might be. No matter your
growth stage or business model, BigCommerce can position your business for its
maximum potential. If you're interested in learning more, contact sales to request a demo.
E-Commerce or Electronics Commerce business models can generally be categorized in
the following categories: -
➢Business - to - Business (B2B): The B2B e-commerce paradigm describes online

transactions between firms, such as a manufacturer and a distributor. The Internet and the
need of many corporate operations on other businesses for raw materials, utilities, and
services are important factors in growing the adoption of B2B e-commerce. It is a rapidly
growing section of e-commerce. Through the Internet, the company may verify and
change purchase orders, invoicing, inventory, and shipment status. Website following
B2B business model sells its product to an intermediate buyer who then sells the product
to the final customer. For example, a wholesaler places an order from a company's
website and after receiving the consignment, sells the end product to final customer who
comes to buy the product at wholesaler's retail outlet. Example-Alibaba, India art, Trade
India etc.
➢Business - to - Consumer(B2C): Website following B2C business model sells its

product directly to a customer. A customer can view products shown on the website of
business organization.In the B2C e-commerce paradigm, businesses offer products and
services directly to individual customers. E-commerce, which supplements conventional
commerce, offers all items and services online through electronic means. The Internet
functions as an electronic channel. Websites that fall under this category include
www.flipkart.com, www.infibeam.com,www.amazon.in,andwww.homeshop18.com.
Individuals may buy apparel, mobile phones, and electronic devices from these websites.
➢Consumer - to - Consumer(C2C): Consumer-to-Consumer (C2C) online shopping is a
business model that supports goods and service transactions between two customers.
Using Web and Web technologies, customers sell products and services directly to
additional consumers in this e-commerce paradigm. A single consumer will utilize
classified adverts to market or promote several items and services on the internet or on
online auction platforms. The eBay.com, quicker.com, craigslist.org, and gittigidiyor.com
are some e-commerce examples. It lowers costs for the buyer and seller consumers.
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Customers may also promote and sell the goods and offerings to other workers over the
corporate Intranet using this e-commerce paradigm
➢Consumer - to - Business(C2B): Consumer-to-Business (C2B) is an e-commerce

paradigm in which consumers (individuals) sell items and services to corporations and
organizations. This paradigm is the polar opposite of the B2C model. Individuals
determine the price and value of certain items and services under this approach. For
example, if a consumer writes a review for a new product or provides a helpful suggestion
for future product development, he or she is producing value for the firm if the review or
concept is adopted by the company. Companies may help the C2B model by establishing
discussion forums websitesCompaniessuchaswww.mobshop.com,
www.pazaryerim.com, and www.priceline.com, for example, are C2B transaction
organizers.
➢Business - to - Government(B2G): Marketing is sometimes known as "public sector

marketing" in the marketing world. It is developed from business-to-business marketing
and includes actions such as promoting goods and services for government agencies.
Such marketing is carried out via a variety of integrated marketing approaches such as
advertising, branding, public relations management, internet communication strategies,
and so on. B2G model is a variant of B2B model. Such websites are used by government
to trade and exchange information with various business organizations. Such websites are
accredited by the government and provide a medium to businesses to submit application
forms to the government. Example- Sense ware, Mark43.
➢Government - to - Business (G2B): Government uses B2G model website to approach

business organizations.G2B in ecommerce denotes as Government to Business. In the
G2B model, the initiative comes from a government agency, and businesses are the target
audience. In fact, businesses play the role of customers in the e-commerce model, and
government agencies are, figuratively speaking, the customer support service. Such
websites support auctions, tenders and application submission functionalities.
Example:http://www.dti.gov.uk/
➢Government - to - Consumers (G2C): Government uses G2C model website to
approach citizen in general. Such websites support auctions of vehicles, machinery or any
other material. Such website also provides services like registration for birth, marriage or
46
death certificates. Main objectives of G2C website are to reduce average time for
fulfilling people requests for various government services. Government to consumers
(G2C) e commerce is the online interaction between a government and its citizens. It
allows citizen to access services and information from the government through online
portals and websites.
ADVANTAGES OF E-COMMERCE
There’s no doubting it – the opportunity of selling online has helped several businesses
earn more and grow successfully. Like any other business strategy, there are many plus
points and the benefits of ecommerce can help one to excel. We couldn’t agree more and
have compiled some information to explain the plus points and help you with business
decisions. The online marketplace is a good platform for you to expand your business.
We are going to explain what kind of advantages there are by sharing what we know
about online selling. There is no doubt that E-commerce has digitally enabled commercial
transactions among organizations and individuals. It provides the following main
advantages to the society.
E-COMMERCE OPPORTUNITIES AND CHALLENGES:

E-Commerce is presently an essential ingredient of India’s trade facilitation policy. Since
1991, after economic reforms explicitly took place in India, the need to facilitate
international trade both through policy and procedure reforms has become the foundation
stone of India’s trade and fiscal policies. Resultantly, a technological revolution
accompanied by the wide spread use of the Internet, web technologies and their
applications took place. E-Commerce has changed and is still changing the way business
is conducted around the world.
Opportunities:
There is a rising awareness among the businesses in India about the opportunities offered
by e-commerce. E-commerce provides a new place for connecting with consumers and
conducting transactions. Virtual stores operate round the clock.
a) Global Trade: E-business is one of the major factors in the globalization of business.
Other factors include decreases in trade barriers, globalization of capital markets. Indian
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e-business has grown at a compounded annual growth rate of 30% since FY09, and is
expected to be $18 billion (around Rs 1,116,00 crore) opportunity by FY15.
b) Virtual Businesses: Business firms now have the ability to become virtual E-
Business. Virtual business uses electronic means to transact business as opposed to the
traditional means of face to face transaction.
c) Lower search costs: The Internet brings low search costs and high price lucidity. E-
business has proved to be highly cost effective for business concerns as it cuts down the
cost of marketing, processing, inventory management, customer care, etc.
d) Round the clock: Customers can do transactions for the product or enquiry about any
product/services provided by a company anytime, anywhere from any location.
e) Greater Economic Efficiency: Greater economic efficiency (lower cost) and more
rapid exchange (high speed, accelerated, or real-time interaction) are achieved with the
help of electronic business.
The e-commerce market in India has grown by 34 percent in the last decade, was about
USD 600 million in 2011-12 and is expected to touch USD 9 billion by 2016 and USD 70
billion by 2020. According to Forrester, the Indian e-commerce market is expected to
grow at a CAGR of over 57 percent between 2012 and 2016, which is the fastest within
Asia-Pacific region.
Challenges:
The growth of ecommerce volumes in India is attracting the attention of players around
the world. Despite lower per-capita purchasing power, the population still makes India
one of the most attractive emerging markets for ecommerce. But India is far from being a
bed of roses. Here are the top 8 challenges that ecommerce businesses face in India.E-
commerce the phrase is used to describe business that is conducted over the Internet using
any of the applications that rely on the Internet, such as e-mail, instant messaging,
shopping carts, Web services, UDDI, FTP, and EDI, among others. A type of business
model, or segment of a larger business model, that enables a firm or individual to conduct
business over an electronic network, typically the internet. Electronic commerce operates
in all four of the major market segments: business to business, business to consumer,
consumer to consumer and consumer to business. Ecommerce has allowed firms to
establish a market presence, or to enhance an existing market position, by providing a
cheaper and more efficient distribution chain for their product or services. India has less
credit card population, lack of fast postal services in rural India. Accessing the Internet is
currently hindered down by slow transmission speeds, frequent disconnects, cost of
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Wireless connection and wireless communication standards over which data is
transmitted. High-speed-bandwidth Internet connection not available to most citizens of
the nation at an affordable rate. In India, mostly people are not aware about the English
language or not so good in English language. So that for the transaction over internet
through electronic devices, language becomes one of the major factors to purchases, hire
and sell a particular product or services. Multiple issues of trust in e-commerce
technology and lack of widely accepted standards, lack of payment gateways, privacy of
personal and business data connected over the Internet not assured security and
confidentiality of data not in place to deploy ubiquitous IT Infrastructure and its
maintenance. The major challenges faced by the sellers and the buyer which carrying out
business transactions through internet are as follows
a) Indian customers return much of the merchandise they purchase online.
Indian customers return much of the commodities they purchase online. E business in
India has many first time buyers. This means that they have not yet made up their mind
about what to expect from e-business websites. As a result, buyers sometimes fall prey to
hard sell. But by the time the product is actually delivered, they regret and return the
goods. Returns are expensive for e-business companies; as reverse logistics presents
unique challenges. This becomes all the more complex in cross border e-business.
b) Cash on delivery is the preferred payment mode.
Cash on delivery is the preferred payment mode. Low credit card access and low trust in
online transactions has led to cash on delivery being the preferred payment choice in
India. Unlike electronic payments, manual cash collection is painstaking, risky, and
expensive.
c) Payment gateways have a high failure rate.
Indian payment gateways have an unusually high failure rate by global standards.
Business companies using Indian payment gateways are losing out on business, as several
customers do not attempt making payment again after a transaction fails.
d) Internet penetration is low.
Internet penetration is low. Internet penetration in India is still a small fraction of what is
there in a number of western countries. The quality of connectivity is poor in several
regions. But both these problems are on their last legs. The day is not far when
connectivity issues would not feature in a list of challenges to e-business in India.
e) Feature phones still rule the roost.
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Though the total number of mobile phone users in India is very high, a significant
majority still use feature phones, and not smart phones. As a result, this consumer group
is unable to make e-business purchases on the move. Though India is still a couple of
years away from the scales tipping in favour of smart phones, the rapid downward spiral
in the price of entry-level smart phones is an encouraging indication.
f) Postal addresses are not standardized.
If an online order is placed in India, it is quite likely get a call from the logistics company
to ask about exact location. Clearly address is not enough. This is because there is little
standardization in the way postal addresses are written.
g) Logistics is a problem in thousands of Indian towns.
Given the large size of the country, there are thousands of towns that are not easily
accessible. The problem with logistics is compounded by the fact that cash on delivery is
the preferred payment option in India. International logistics providers, private Indian
companies, and the government-owned postal services are making a valiant effort to solve
the logistics problem.
h) Overfunded competitors are driving up cost of customer acquisition.
The long-term prospects for ecommerce companies are so exciting that some investors are
willing to spend irrationally high amounts of money to acquire market share today.
Naturally the Indian consumer is spoiled for choice.
• Private and public corporation is not involved jointly to grow the business of e-
commerce. Private and public joint initiative is needed to develop the ecommerce
business. Joint initiatives bring credibility inside people, which is needed for
flourishing the ecommerce business.
• There is a lack of system security, reliability, standards, and some communication
protocol. Customer loses their money if the website of ecommerce site is hacked.
Most common problem of e-commerce website is not having enough cyber
security.
i)Financial institutions and intermediaries: Thus far, financial institutions and banks in
developing countries are hesitant to take an active role in promoting e-commerce.
However, merchants need the involvement of banks to broaden the reach and appeal of
ecommerce and to help prevent fraud and potential losses attributable to credit card fraud.
But beyond the credit card approach, banks and other financial service intermediaries are
challenged to develop alternative modalities for secure and reliable online transactions in
environments where credit cards are not commonplace (Anupam-2011).
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NATIONAL SCENARIO OF E-COMMERCE
India first came into interaction with the online E-Commerce via the IRCTC (Indian
Railway Catering & Tourism Corporation Limited), through which the Government of
India made it convenient for its public to book the train tickets. This was a boon to the
common man as now they don’t have to wait for long in line and also no burden on the
ticket bookers. Thereafter, the online ticket booking system was followed by the airlines
encouraging Web Booking to save time and money. Today, the booking system is not ju st
limited to the transportation rather hotel, bus etc. are also being booked using the websites
like MakeMyTrip and Yatra. Although online shopping has been present since 2000 but it
gained popularity only with discount model of Flipkart in 2007. Soon other portals like
Amazon, Jabong, etc. started hunting India for their business. The E-Commerce growth in
India may be lower than the US and other European markets, but it continues to grow at a
rapid rate with many new trends. E-Commerce isheavily dependent on the web and
Smartphone that has altered the way of business interacting with customers. Over the past
few years the Indian sector has grown by 34% (Compounded Annual Growth Rate,
CAGR) since 2009, touched 16.4 billion USD in 2014 (Internet and Mobile Association
of India research report) and 22 billion USD in 2015. It is worthy to mention that, today
the E-commerce industry in India is growing fast, booming, and expanding at a larger
rate. The concept of online shopping has attracted the Indian population tremendously.
Exposure to Internet has been highly instrumental in the e-commerce success. According
to IAMAI-IMRB report, over 460 million Indians use Internet and India has been the
second largest online market after China. It is obvious that E-commerce growth is directly
related to the number of Internet users. Furthermore, a study by Forrester Research states
that India’s online market is expected to reach $64 billion by the year 2025, growing at a
five-year CAGR of 31.2%.The Indian e-commerce industry has been on an upward
growth trajectory and is expected to surpass the US to become the second largest e-
commerce market in the world by 2034. The E-commerce market is expected to reach Rs
13,97,800crore (US$ 200 billion) by 2027 from Rs 2,69,076.5 crore (US$ 38.5 billion) in
2017. India's e-commerce market has the potential to grow more than four folds to Rs
10,48,350crore (US$ 150 billion) by 2022 supported by rising incomes and surge in
internet users. Internet penetration in India grew from just 4 per cent in 2007 to 34.42 per
cent in 2017, registering a CAGR of 24 per cent between 2007 and 2019. In FY19,
internet penetration in India was 48.48 per cent. Internet penetration in rural India is
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expected to grow as high as 45 per cent by 2021 compared to the current rate of 25.36 per
cent. Components of e-commerce sectors, like logistics, warehousing, ITs, are expected to
create direct employment for around 1.45 million of workforce by 2021, a significant
jump from the 23,500 jobs which existed in 2012. The contribution of e-commerce to
total GDP of India increased significantly, from 0.13% in 2009 to 0.22% in 2018. With
this increasing contribution to GDP, it strengthens the Indian economy. According to
statista.com, there will be more increase in e-commerce sales in India and thus will
contribute 2.5% of GDP by 2030. The contribution of agricultural sector in e-commerce
is only less than 3 per cent, and only 14 per cent of farmers have registered on the
National Agriculture Market (e-NAM). Of those who have registered, 51 per cent have
not benefited from the trading platform. Data from the Ministry of Agriculture and
Farmers' Welfare revealed that 1.64 crore farmers and more than 1.24 lakh traders have
registered on e-NAM. Of the registered farmers, about 80 lakhs (49 per cent) got the
benefit of trading on the platform. Nearly 26.31 crore workers are engaged in the farm
sector.
INTERNATIONAL SCENARIO OF E-COMMERCE

International e-commerce refers to the business of selling a product over the internet to
buyers who live in foreign countries. There are practically no limits to where your
company can expand its business, provided there is a market for your goods. But any
expansion into a new market inevitably requires a lot of time, effort, and resources.
InternationalIt involves cross-border transactions of goods and services between two or
more countries. Transactions of economic resources include capital, skills, and people for
the purpose of the international production of physical goods and services such as
finance, banking, insurance, and construction. International business is also known
as globalizationE-commerce is an undeniable growth opportunity. According to a recent
Study Conducted by Flow Commerce, 67% of online apparel shoppers across 11 top
global markets have made a cross border purchase in the prior years. The global E-
commerce market size was valued at USD 9.09 trillion in 2019 and had grown by $2
trillion in 2020, with revenues in China expected to have the largest growth rate at a
CAGR of 11.6% up to 2024. Similarly, it is expected thatU.S. market revenues will
exceed $490.9 billion by 2024, while revenues in Europe will reach $516.2 billion in the
same time frame. With the development in 4G and 5G technology, the highest incidence
of cross- border shoppers according to a research report was in Brazil, Australia, and
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Canada, however most of the other countries surveyed, including the U.S. and China,
were well over 50%. This trend is further validated by a separate report revealing that
high cross-border online shopper penetration in those countries as well as in China and
Mexico. The international E-commerce trend is certainly not slowing down and continues
to gain traction and grow. In a Global Market Outlook report, projections estimate that
international E- commerce will grow at a Compounded Annual Growth Rate (CAGR) of
almost 20% to reach $18.89 trillion by 2027. There are a number of factors impacting this
growth. The global nature of search and increasing use of search engines facilitates the
discovery of new brands and online retailers. Mobile penetration has also had an impact
helping to drive cross-border purchases. Mobile commerce sales are projected to show a
25% growth in 2020 over 2019, with additional growth in 2021. With over 3 billion
smartphone users worldwide, more and more global consumers are also shopping via
mobile phones and the opportunity in M- commerce is showing impressive growth.
International e-commerce is the business of selling a product through an e-commerce
website to buyers in foreign countries. As the proliferation of digital tools increases
internet availability worldwide, any company can sell online, making international e-
commerce easier than ever before for both pure play companies and brick and mortars.
For traditional retailers, e-commerce can also serve as a testing ground to determine
whether new, foreign markets will be successful before opening a physical location there.
While it’s tempting for e-commerce professionals to assume expansion into a country
with a similar culture will require less work, the word “international” is key.International
business encompasses a myriad of crucial elements vital for global economic integration
and growth. At its core, it involves the exchange of goods, services, and capital across
national borders. One of its pivotal aspects is globalization, which has significantly
altered the landscape of trade by facilitating increased interconnectedness between
nations. International business thrives on the principle of comparative advantage, wherein
countries specialize in producing goods and services they can produce most efficiently.
This specialization fosters efficiency, leading to optimal resource allocation and higher
overall productivity. Moreover, international business fosters cultural exchange and
understanding by promoting interactions between people of diverse backgrou nds.
However, it also poses challenges, such as navigating complex regulatory frameworks,
cultural differences, and geopolitical tensions. Effective international business strategies
require astute market analysis, risk assessment, and adaptation to local customs and
preferences.
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CHAPTER 5 :
PROFILE OF E-COMMERCE WEBSITES
54
Recent years have seen an exceptional evolution in the way India trades and shops. E-
commerce is one of the rapidly growing sectors, stimulating an entire generation of
entrepreneurs, large scale manufacturing of small and medium-sized enterprises. E-
commerce has enabled helped reduce barriers and bring the manufacturer closer to the
customer. The presence of a virtual store on e-commerce websites has helped millions of
business flourish in India and has led to more employment opportunities as well.
Today, technology has advanced at a rapid pace and with the use of smart
phones, the online shopping experience has become seamless for customers. With easy to
use mobile apps with elaborate store catalogs, e-commerce has ushered new opportunities
for both traders and consumers.
India is one of the largest markets of e-commerce players. With giants like Amazon,
Flipkart, Snapdeal, Jabong, Paytm, Myntra Shopclues etc.
AMAZON:
Amazon (Amazon.com) is the world's largest online retailer, which currently offers
millions of products starting from electronics to baby care on its platform and has
millions of registered users. It also provides users to access various services such as
streaming video, music, e-books, the latest offers, etc.
➢HISTORY: Amazon India is a fully-owned subsidiary of US based e-commerce giant

Amazon, Inc. The website Amazon.in was launched in June 2013. The parent company,
Amazon was launched in 1994 by Jeff Bezos in the United States. Over the years,
Amazon has started operations at various locations across the globe such as India, China,
Japan, Singapore, France, Germany, Italy, Netherlands, Spain, United Kingdom, Canada,
Mexico, Australia and Brazil. Amazon India is led by Amit Agarwal, who is currently the
company’s Managing Director.
➢FUNDING: Amazon founder Jeff Bezos has made a total investment of $5 billion in
Amazon India. Amazon India may take several more years to generate profits, but Jeff
Bezos is quite bullish on India and committed to more investments, as may be needed.
➢ACQUISITIONS: Parent company Amazon has acquired scores of companies across

the globe, but in India, it has a different strategy for growth. In India, Amazon acquired
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payments company Emvantage Payments Pvt. Ltd. in 2016. It has a platform that enabled
online merchants to accept credit and debit cards. In recent times, Amazon India has been
in talks with Big Basket, India’s biggest grocery store to acquire the company, offering
more than 18,000 products. Currently Amazon delivers to most of the serviceable PIN
codes in India. It has more than 20,000 Indian sellers and 41 fulfilment centres across 13
states.
➢COMPETITION: Amazon India has been facing stiff competition from home-grown
e- commerce companies such as Flipkart and Snapdeal. The primary competition for the
Indian e-commerce market is currently between Amazon India and Flipkart. The Indian e-
commerce market is expected to touch $50 billion in sales by 2025, so both companies
are aggressively trying to grab a larger market shares.
➢VISSION STATEMENT: Amazons vision is “to be Earth’s most customer-centric

company, where customers can find and discover anything they might want to buy
online”. This statement underscores the business origination’s main aim of becoming the
best E- commerce company in the world.
➢MISSION STATEMENT: Amazon’s mission statement is “We strive to offer our

customers the lowest possible prices, the best available selection, and the utmost
convenience” The statement promises attractive E-commerce services to satisfy the
customers’ need.
FLIPKART:
Flipkart is one of India’s leading E-commerce marketplaces. Flipkart works in the

Internet & E-Commerce industry, specializing in E-Commerce, Online Shopping,
PhonePe, Mobile Payments Service, and Flight Booking. ➢HISTORY: Flipkart was
founded in October 2007 by Sachin Bansal and Binny Bansal. It was started as an online
bookstore and with the popularity growth, it expanded its operations. As the revolution of
e-commerce gained momentum in India, Flipkart grew at an accelerated pace. As of now,
the company offers 80 million+ products spread across more than 80 categories. Flipkart
has 100 million registered users and more than a million sellers on its electronic
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commerce platform. To ensure prompt delivery to its customers, the company has
invested in setting up warehouses in 21 states.
➢ACHIEVEMENTS: The Company created a record by selling 1 lakh books in a single

day in 2013. Flipkart crossed the 100 million mark in registered customers in 2016.
Flipkart achieved the Young Turk of the Year Award at CNBC TV 18’s “India Business
Leader Awards 2012”.
➢FUNDING: Flipkart has received funds worth more than $ 4.5 billion, with the biggest
funding in July 2014 worth $ 1 billion and in April 2017 worth $ 1.4 billion. List of top
investors in Flipkart includes Naspers, Steadview Capital, Tiger Global Management,
Accel Partners, Dragoneer Investment Group, Baillie Gifford, Greenoaks Capital,
Microsoft, Morgan Stanley etc.
➢ACQUISITIONS: In the recent years, many mergers and acquisitions have been
witnessed in the e-commerce market and Flipkart has also made many acquisitions to
expand its business and boost its sales and earnings. The major acquisitions made by
Flipkart include Myntra, eBay India, PhonePe, Jabong, Letsbuy.com, Whereas, Mime360,
chakpak.com, Appiterate, FX Mart, and ngpay. It has recently acquired its former
competitor Snapdeal. It has acquired Snapdeal at a cost of $ 950 million.
➢COMPETITION: After acquiring Snapdeal the major competitive left against Flipkart
is Amazon India. Still, it is facing stiff competition from Amazon India because Amazon
has really captured a larger share of the market.
➢VISION STATEMENT: Flipkart vision is “To become Amazon of India”. The vision
statement of Flipkart.com is its strategic plan for the future – it defines what and where
Flipkart com Company wants to be in the future.
➢MISSIONSTATEMENT: Flipkart mission statement is “Ab har wish hogi poori”. The
mission statement for Flipkart com is a public document that details the values and
strategic aims of Flipkart.com.
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JABONG
Jabong came into the e-commerce market with a bang and created a revolution within 6 to
7 months of launch. Besides selling products on their own through inventories, Jabong is
also an online marketplace for third-party sellers. They predominantly cater to apparel,
footwear, jewellery, and accessories and catalog more than 50,000 products across 700
brands.
Jabong is known for its own logistics network that ensures fast delivery. If you are in a
city like Delhi, you are bound to receive the product within 24 hours of order placement.
Jabong is also trying to expand its international presence through its site
‘JabongWorld.com’. It ships Indian products to international customers. One of Jabong’s
uniqueness lies in its new idea of a fashion magazine— “The Juice “an interesting blend
of fashion, people, trends and pop culture. The magazine has everything in it that readers
would love to read in a fashion magazine. Jabong has also collaborated with films such as
“Bhaag Milkha Bhaag”, “Main Tera Hero”, and “Humpty Sharma ki Dulhaniya” to offer
exclusive products inspired by the movie. The various payment gateways offered by
Jabong have made it convenient for consumers to order products from the website. In
2016, Jabong was acquired by Myntra.
SNAPDEAL
Snapdeal was founded on 4 February 2010 as a daily deals platform, before expanding to
become an online marketplace in October 2011,Snapdeal is a successful e-commerce
portal catering to customer’s buying needs at a much wider aspect. It was established with
a concept of making products available to the customers at a discounted rate through
offers and Snapdeal coupons. It gives you the best deals in a particular city in various
service categories ranging from: restaurants, spas and salons, apparel, footwear, baby
care, home and décor. It has adopted the marketplace business model. Snapdeal came up
with a unique idea of permitting local vendors and manufacturers to publish their product
catalog and sell it on the Snapdeal portal. This avoids expensive costs involved in
building own inventory. Snapdeal’s business model was awarded with mammoth funding
to scale up their products, business and operations. It focuses on logistics and efficient
delivery to customers. It operates in such a fast pace that a new product is added in every
30 seconds.
MYNTRA
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Myntra is one of the largest shopping e-tailers in fashion and lifestyle merchandise. It
supplies a wide range of products from clothing to footwear and accessories. It focuses on
bringing the most fashionable brands for its customers. In 2014, Myntra was acquired by
Flipkart.Myntra has created a niche in the territory of e-commerce and subtle trust from
people. Additionally, from discounts to Cash-on-Delivery benefits, the Myntra success
mantra belongs to its hybrid logistics model. It takes uttermost care of its supply chain
management and employs delivery agents with high experience. Myntra has also come up
with a complete guide to your everyday fashion and latest style trends. The
“MyntraLookGood” is a daily fix of style tips, beauty tricks, celeb fashion, and non-stop
entertainment. The tie-ups with celebrities and events are an outstanding strategy by
Myntra to represent that fashion is in its DNA. Myntra has many celebrity brands—
Hrithik Roshan’s HRX, Salman Khan’s Being Human, Deepika Padukone’s All About
You, and Farhan Akhtar’s MARD. They believe that Bollywood influences fashion and
frequent tie-up with celebrities helps to bring customers closer to Myntra.
PAYTM
Paytm is the second largest e-commerce platform in India and has also made its way to
the list of unicorn start-ups. Primarily started as a mobile wallet, in 2016, Paytm entered
the e-commerce industry with Paytm Mall. As the name suggests, it is an online market
place for products ranging from electronics to daily consumer needs. One of the attractive
features of Paytm has been its cashback feature. Consumers are given a variety of
discount coupons to choose from and also provide good savings on the purchase of goods.
With close to 120 million buyers on the platform, Paytm Mall is finding new ways to
enhance the buying experience. It is also collaborating with retail brick-and-motor stores
and with use of its mobile app and QR codes, it takes the customer through an online
shopping experience with attractive discounts. Thus, India is a growing marketplace and
e-commerce industries are bound to flourish. But with the right technology and design
strategy, new entrants can have a competitive edge.
SHOPCLUES
Shopclues is the latest addition to the top e-commerce websites in India. Unlike Amazon
and Flipkart, Shopclues is a market place that focuses on unstructured categories of home,
electrical, fashion, and daily utility items. The mass market of shopclues comes from tier
2 and tier 3 cities and most of its business comes from smaller cities. Shopclues helps
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give brands from unstructured markets a voice of its own. Shopclues has a comparatively
larger merchant base. It focuses on small and medium sized traders located in smaller
cities and helps them take their business online. With over 50 million visitors on its
website, one of the major revenues generating categories has been the home and kitchen
appliances category.ShopClues is an Indian online marketplace, owned by Clues Network
Pvt. Ltd. The company was established in July 2011 by Sanjay Sethi, Sandeep Aggarwal
and Radhika Aggarwal. In 2015, ShopClues was valued at US$1.1 billion, with Tiger
Global, Helion Ventures, and Nexus Venture Partners as major investors.
The current status of e-commerce of e-commerce in India can be summarised in two G’s;
growing and gaining ground however there is so much more to discuss if we are seriously
looking to delve in to the growth trajectory of the e-retail market. E-commerce is
emerging as one of the most rapidly growing segments within the Indian economy.
Despite its high growth rate, the Indian e-commerce industry has lagged behind its
counterparts in many developed and emerging economies, primarily due to a relatively
low internet user base. The e-commerce market in India has evolved significantly,
transitioning from a mere marketing platform to a one-touch buying and selling
marketplace. The objective of this paper is to identify and analyse the factors that have
contributed to the e-commerce boom in India and to propose strategies to further
accelerate the growth of the e-commerce industry. We delve into historical trends and
provide evidence that positions the Indian e-commerce sector for exponential growth.
This study aims to explore the evolution of e-commerce in India, highlighting the various
challenges it has faced and identifying the factors responsible for its future growth and
development. The government initiatives and regulations would play a vital role in the
future prospects of E-commerce.
The e-commerce sector in India started their operations late nineties among business to
business (B 2 B) users. Business to consumer (B 2 C) e-commerce started in 1996. The
first E-commerce website in India was rediff.com which was one of the most trafficked
portals for both Indians & non-resident Indians present scenario of Ecommerce in India: -
 Today E-Commerce has become an integral part of our society. There are websites
providing any number of goods & services.
 India is a developing country although it shows commendable increase in the industry
of e-commerce in last few years.
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 Today most of the e-commerce transactions happened on mobile devices.  Internet
users in India crossed 100mn but even in rural areas we find people who not even heard
about internet.
 E-commerce companies provides many facilities like discount, home delivery, return on
delivery, coupons etc. which increase popularity of e-commerce.
 Various social sites have now become a medium for online sale and purchase.
 A fast-growing market in India is online grocery store because it provides convenience

in shopping to customers.
 With the implementation of GST, operational efficiency of e-commerce is increased
because GST simplified the system of taxation and also eliminate double taxation.
 E-commerce sector also growing because of increasing smartphone users.
 E-commerce companies provides facility of comparing prices over entire network so
that customer can get product at best available price.
 Most of the customers in India prefer cash on delivery mode.
Growth in E-Retail is Directly Related to Growth in Internet Users:

According to Wikipedia there were 354 million internet users in India in 2015 and that
number is set to grow to 500 million by the end of 2015. Having access to the internet
automatically exposes the average Indian to e-commerce and online retail and that in
itself translates in to growth for the e-commerce sector. According to Wikipedia growth
in the penetration of e-commerce is unlike anything seen before in any other country with
6 million Indians opting to use e-commerce to meet their consumer needs for the first
time joining the fray every month. This growth can only be commended.
Growth in Terms of Returns for the E-Commerce Industry in India:

1. In 2009 the market value of e-commerce in India was worth about 3.9 billion and that
figure grew to 12.6 billion in 2013.
2. The retail segment alone was worth 2.3 billion in 2013.
3. According to figures from Google India, there were 35 million people in India
shopping online and that figure is bound to rise to 100 million by the end of 2016.
4. Electronics and Apparel are definitely the winners that contribute to a large chunk of
this growth trajectory in terms of sales
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5. The Internet and Mobile Association of India conducted a study that predicts that the
e-commerce industry is estimated to reach 211,005 crore rupees by the end of 2016.
6. Estimations for future growth continue to be encouraging even after 2016 with the e-
commerce industry set to generate an estimated figure of about $100 billion with $35
billion of the total amount being generated by the fashion industry online.
7. Growth in the sales of apparel is set to spike four times the current estimate by 2020.]
Reasons for This Growth Trajectory:

The first and primary reason for the growth of the e-commerce industry is the spike in
number of broadband users and those that use 3G services. The introduction 4G services
have further fueled this growth.
India’s general economic growth and better living standards have a direct effect on the
growing number of internet users and buying power. The quick decline in poverty rates
have also contributed in a big way.
Research suggest that one of the points of impetus that fuels the growth in e-commerce is
the consumers search for a wider range of products and services that is effectively being
met online.
Figures support the fact that the growth in e-commerce is also directly related to
competitive pricing that e-commerce platforms offer the consumer.
Million-dollarstart-up firms like Flipkart, Snapdeal and Jabong further fuel this growth.
The Big WinnersThe ecommerce sector like any other business sector has had its fair
share of amazing success stories. Smart start-ups from just a few years back have now
grown in to major e-commerce giants in India and the path to success has often been the
smart retail of widely used and purchased consumer products at attractive rates that are
highly competitive when compared to price tags at real time stores, malls and boutiques.
The emphasis has been on giving the online buyer a wide range of choices at highly
competitive cost and this agenda has resulted in amazing success for eCommerce giants
like Flipkart, Snapdeal and Jabong. Aggressive marketing campaigns, promotional and
free flow of investments are also major contributing factors.
Shut Downs and AcquisitionsWhile the ecommerce sector has experienced tremendous
growth there has been a fair amount of closures and acquisitions due to the increased
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demand for funding that some ventures haven’t been able to supplement. While
aggressive advertising has been the way to success for many start-ups, the lack of proper
funding for promotions and advertising has been the reason for failure for a few.
Examples of such ecommerce ventures are Dhingana, Rock.in and Seventy MM. Many
even had to change their business models to survive.
Growth Prospects of E-Commerce in India:

Increasing internet and mobile penetration, growing acceptability of online payments and
favourable demographics has provided the ecommerce sector in India the unique
opportunity to companies connect with their customers, it said. There would be over a
five to seven-fold increase in revenue generated through e-commerce as compared to last
year with all branded apparel, accessories, jewellery, gifts, footwear are available at a
cheaper rate and delivered at the doorstep, (as per industry body Assocham). It is noted
that the buying trends during 2016 will witness a significant upward movement due to
aggressive online discounts, rising fuel price and wider and abundant choice will hit the
e-commerce industry in 2016. It observed mobile commerce (m-commerce) is growing
rapidly as a stable and secure supplement to the e-commerce industry. Shopping online
through smart phones is proving to be a game changer, and industry leaders believe that
mcommerce could contribute up to 70 per cent of their total revenues. In India roughly
60-65 per cent of the total ecommerce sales are being generated by mobile devices and
tablets, increased by 50 per cent than in year 2015 and also likely to continue upwards. It
noted that the browsing trends, which have broadly shifted from the desktop to mobile
devices in India, online shopping is also expected to follow suit, as one out of three
customers currently makes transactions through mobiles in tier-1 and tier-2 cities. In
2015, 78 per cent of shopping queries were made through mobile devices, compared to 46
per cent in 2013. In 2015, the highest growth rate was seen in the apparel segment almost
69.5 per cent over last year, followed by electronic items by 62 percent, baby care
products at 53 per cent, beauty and personal care products at 52 per cent and home
furnishings at 49 per cent. It revealed that Mumbai ranks first in online shopping followed
by Delhi, Ahmedabad, Bangalore and Kolkata. On the mode of payment, almost 45 per
cent of online shoppers reportedly preferred cash on delivery mode of payment over
credit cards (16 per cent) and debit cards (21 per cent). Only 10 per cent opted for internet
banking and a scanty 7 per cent preferred cash cards, mobile wallets, and other such
modes of payment, it said. Among the above age segments, 18-25 years of age group has
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been the fastest growing age segment online with user growth being contributed by both
male and female segments. The survey revealed that 38 per cent of regular shoppers are in
18-25 age group, 52 per cent in 26-35, 8 per cent in 36-45 and 2 per cent in the age group
of 45-60.E-commerce market in India is worth about Rs 50,000 crore in 2011. About 80%
of this is related to travel (air tickets, train tickets, hotel reservations, online mobile
recharge, etc.). Retail online comprising about 15%. India has about 11 million online
purchasers and is mounting at a predictable CAGR 45-50% vis-à-vis the overall growth
rate of 10.8%. Electronics and clothes are the major categories in terms of sales.
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CHAPTER 7
PRESENTATION OF DATA ANALYSIS,
INTERPRETATION AND FINDINGS
65
o Percentage
o Chi-square.
PERCENTAGE ANALYSISTABLE NO: 4.1
* AGE OF THE RESPONDENTS
CHART NO. 4.1
Chart representing Age wise classification of respondents.
AGE NUMBER OF RESPONDENT PERCENTAGE
15-25 74 71.2%
26-35 22 21.2%
36-45 5 4.8%
More than 45 3 2.9%
Total 104 100%
INTERPRECTATION:
In the chart we can observe 71.2% of respondent are between ages of 15-25. 21.2% of the
respondents are between ages of 26-35. 4.8% of the respondents are between ages of 35-
45. 2.9% of the respondents are more than 45 are involved in the research.
Fig 4.1: Age of the respondents.

INFERENCE:
Majority (73.1%) of the respondents of my questionnaire is belonging to age of15-25.
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TABLE NO: 4.2
GENDER OF THE RESPONDENTS
GENDER RESPONDENT PERCENTAGE

MALE 70 68%
FEMALE 34 32%
TOTAL 104 100%
INTERPRECTATION:
 From the chart we observe, 68% are the male respondents and 32% are female
respondents.
CHART NO 4.2
Chart representing Gender wise classification of respondents.
Fig 4.2 Gender of the respondents.

INFERENCE:
Majority (68.9%) of the respondents of my questionnaire is male.
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TABLE NO: 4.3
MARITAL STATUS OF THE RESPONDENT
MARITAL STATUS RESPONSES PERCENTAGE

MARRIED 16 15.5%
UNMARRIED 88 84.5%
TOTAL 104 100%
INTERPRECTATION:
 From the chart we observe, 15.5% are Married respondents and 84.5% are
unmarried respondents.
CHART NO 4.3
Chart representing marital status wise classification of respondents.
Fig 4.3 Marital status of the respondents.
INFERENCE:
Majority (84.5%) of the respondents of my questionnaire is unmarried.
68
TABLE NO: 4.4
OCCUPATION OF THE RESPONDENTS
OCCUPATIONS RESPONDENT PERCENTAGE
Students 57 54.8%
Private employee 41 39.4%
Others 3 2.9%
Business 3 2.9%
Total 104 100%
INTERPRECTATION:
From the chart we observe 54.8% are student’s respondents. 39.4% are private employee
respondents. 2.9% are others respondent and 2.9% is business respondent.
CHART NO 4.4
Chart representing the classification of Occupation of the Respondents.
Axis Title
Fig 4.4 Occupations of the respondents.

INFERENCE:
Majority (54.8%) of the respondents of my questionnaire are Students.
69
TABLE NO: 4.5
EXPERIENCE IN E-COMMERCE
OPTIONS RESPONDENT PERCENTAGE

Yes 83 80.6%
No 20 19.4%
Total 103 100%
INTERPRECTATION:
From the chart we observe 80.6% says yes and 19.4% says no.
CHART NO 4.5
Chart representing the classification of experience E-commerce of theRespondents.
PERCENTAGE
100.00%
80.00%
60.00%
40.00%
20.00% Yes No
0.00% 80.60%
Percentage 19.40%
Fig 4.5 Experience in E-commerce of the respondents.

INFERENCE:
Majority (80.8%) of the respondents have experience in E-commerce.
70
TABLE NO: 4.6
MONTHLY INCOME OF THE RESPODENCE
SALARY RESPONDENT PERCENTAGE
Rs 5000/- to Rs15000/- 32 31.4%
Rs 15,000/- to Rs 25000/- 23 22.5%

Rs 25,000/- to Rs50,000 16 15.7%
Rs 50,000/-above 7 6.9%
No Salary 24 23.5%
Total 102 100%
INTERPRECTATION:
From this chart we observe 31.4% of monthly income respondent is Rs 5000/- to Rs
15,000/- , 22.5% of monthly income respondent is Rs 15,000/- to Rs 25,000/- , 15.7% of
monthly income respondent is Rs 25,000/- to Rs 50,000/- , 6.9% of monthly income
respondent is Rs 50,000/- above, 23.5% of monthly income respondent is no salary.
CHART NO 4.6
Chart representing the classification of monthly income of the Respondents.
Rs Rs
Rs 5000/- Rs
15,000/- 25,000/-
to Rs 50,000/- No salary
to Rs to Rs
15000/- above
25000/- 50,000
Percentage 31.40% 22.50% 15.70% 6.90% 23.50%
Fig 4.6 Monthly income of the respondents.

INFERENCE:
Majority (31.4%) of the respondents monthly income is Rs 5,000/- Rs 15,000/-
71
ABLE NO: 4.7
HOW OFTEN DO YOU SHOP ON THIS SITE?
OPTIONS RESPONSES PERCENTAGE

Very often 53 52%
Seldom 26 25.5%
Not often 23 22.5%
Total 102 100%
INTERPRECTATION:
In the chart we can observe 52% of says very often, 25.5% of says seldom and 22.5% of
says not often.
CHART NO 4.7
Chart representing how often do you shop on this site?
60
53
50
40
30 26 RESPONSES
23
PERCENTAGE
20
10
0
Very often Seldom Not often
Fig 4.7 How often do you shop on this site?

INFERENCE:
Majority (52%) of the respondents many often purchasing online.
72
TABLE NO: 4.8
CHOOSE PRODUCTS YOU BUY FREQUENTLY ON THIS SITE.
PRODUCTS RESPONDENTS PERCENTAGES
Perfumes and oils 10 9.7%
Dresses 30 29.1%
Accessories 37 35.9%
Electronics Items 17 16.5%
Others 6 8.7%
Total 100 100%
INTERPRECTATION.
From this chart we observe 9.7% of people chosen perfumes and oils, 29.1% of people
chosen Accessories, 35.9% of people chosen Dresses, 16.5% of people chosen Electronic
items and 8.7% of people chosen others.
40 37
35
30
30
25
20 17 RESPONDENTS
15 PERCENTAGES
10
10
6
5
0
Perfumes Dresses Accessories Electronics Others
and oils Items
Fig 4.8 Products that buy on this sites.
INFERENCE:
Majority (35.9%) of the respondents was buy dress in online.
73
TABLE NO: 4.9
HOW MANY TIMES DO YOU SHOP ONLINE A MONTH?
OPTIONS RESPONDENT PERCENTAGES
Once 58 56.9%
Twice 16 15.7%
Thrice 9 8.8%
More that thrice 19 18.6%
Total 102 100%
INTERPRECTATION:
From this chart we observe 56.9% of people purchasing once in online, 15.7% of people
purchasing twice in online, 8.8% of people purchasing thrice in online, 18.6% of people
purchasing more than thrice in online.
CHART NO 4.9
Chart representing no of times you buy products in online in the month.
60.00%
50.00%
40.00%
30.00% More
PERCENTAGE
Once Twice Thrice than

20.00% thrice
Percentage
10.00%
56.90% 15.70% 8.80% 18.60%
0.00%
Fig 4.9 No of online purchasing a month.

INFERENCE:
Majority (56.9%) of the respondents purchase once in a month in online.
74
TABLE NO: 4.10
HOW MUCH DO YOU SPEND ON ONLINE SHOPPINGEVERY MONTH?
AMOUNT RESPONDENT PERCENTAGE

Less than Rs 500/- 30 28.8%
Rs 500/- to Rs 2000/- 43 41.3%
Rs 2000/- to Rs 3000/- 19 18.3%
Percentage
Rs 3000/- to Rs 5000/- 7 6.7%

More than Rs 5000/- 5 4.8%
Total 104 100%
INTERPRECTATION:
From this chart we observe 28.8% of people spending the amount less than Rs. 500/- for
online shopping, 41.3% of people spending the amount Rs 500/- to Rs 2000/- for online
shopping, 18.3% % of people spending the amount Rs 2000/- to Rs 3000/- for online
shopping, 6.7% of people spending the amount Rs 3000/- to Rs 5000/- for online
shopping, 4.8% of people spending the amount more than Rs 5000/- for online shopping.
CHART NO 4.10
Chart representing that respondent spend on online shopping every month.
spend online shopping every

Rs Rs
More
month.2000/- 3000/-
than Rs
50.00% to Rs to Rs 5000/-
40.00% 3000/- 5000/-

30.00% 18.30% 6.70%
Percentage 28.80% 41.30% 4.80%
20.00%
10.00%
0.00%
Less Rs 500/-
than Rs to Rs
Fig: 4.10 No of respondent spend online shopping every month.
500/- 2000/-
INFERENCE:
Majority (41.3%) of the respondents purchase once a month Rs 500/- to Rs2000/-
75
TABLE NO: 4.11
HOW WOULD YOU RATE YOUR OVERALL ONLINE SHOPPING
EXPERIENCE?
Excellent 38 36.5%
Very good 27 26%
Good 34 32.7%
Fair 5 4.8%
Total 104 100%
Interpretation.
From this chart we observe 36.5% of respondent rated excellent for online shopping
experience. 26% of respondent rated very good for online shopping experience. 32.7% of
respondent rated good for online shopping experience. 4.8% of respondent rated fair for
online shopping experience.
CHART NO 4.11
Chart representing that respondent rated overall online shopping experience.
RESPONDENT RATED OVERALL

ONLINE SHOPPING EXPERIENCE.
40.00%
35.00%
30.00%
PERCENTAGE
25.00%
20.00%
15.00% Excellent Very good Good Fair
Percentage 36.50% 26% 32.70% 4.80%
10.00%
5.00%
0.00%
Fig 4.11 No of respondent rated overall online shopping experience.
INFERENCE:
Majority (36.5%) of the respondents says excellent for an online experience.
76
TABLE NO: 4.12
HOW LIKELY ARE YOU TO RETURN TO THIS WEBPAGEFOR YOUR
ONLINE SHOPPING?
Very likely 52 50.5%

Somewhat likely 45 43.7%
Highly likely 6 5.8%
Total 103 100%
INTERPRETATION.
From this chart we observe 50.5% of respondent very likely to visit online shopping.
43.7% of respondent somewhat likely to visit online shopping. 5.8% of respondent highly
likely to visit online shopping.
CHART NO 4.12
Chart representing that respondent are likely return through the webpage for online
shopping.
RESPONDENT
Very likely
Somewhat likely
52
45 Highly likely
Fig 4.12 Respondent are likely return through the webpage foronline shopping.
INFERENCE:
Majority (50.5%) of the respondents very likely return to the webpage through
online shopping.
77
TABLE NO: 4.13
WHICH PAYMENT METHOD DO YOU PREFER FOR ONLINE SHOPPING?
PAYMENT MODE RESPONDENT PERCENTAGE

Cash on delivery 57 54.8%
UPI 27 26%
Credit/Debit card 14 13.5%
Net banking 6 5.8%
Total 104 100%
INTERPRETATION.
From this chart we observe 54.8% of respondent prefer cash on delivery for online
shopping. 26% of respondent prefer UPI for online shopping. 13.5% of respondent prefer
credit/ debit card for online shopping. 5.8% of respondent prefer net banking for online
shopping.
CHART NO 4.13
Chart representing payment method for online shopping.
60 57
50
40
30 27
RESPONDENT
PERCENTAGE
20
14
10 6
0
Cash on UPI Credit/Debit Net banking
delivery card
Fig 4.13 Respondent is payment method for online shopping.

INFERENCE:
Majority (54.8%) of the respondents were used cash on delivery mode.
78
TABLE NO: 4.14
WHICH APP DOES YOU MOSTLY USED FOR SHOPPING?
ONLINE SHOPPING RESPONDENT PERCENTAGE
Amazon 62 59.6%
Flipkart 29 27.9%
Snapdeal 1 1%
Myntra 4 3.8%
Others 8 7.7%
Total 104 100%
INTERPRETATION.
From this chart we observe 59.6% of respondent was mostly used for Amazon shopping,
27.9% of respondent was mostly used for Flipkart shopping, 1% of respondent was
mostly used for snapdeal shopping, 3.8% of respondent was mostly used for myntra
shopping, 7.7% of respondent was selected others.
CHART NO 4.14
Chart representing app mostly used for shopping.
70
62
60
50
40 RESPONDENT
29
30 PERCENTAGE
20
PERCENTAGE
8
10 4
1
0
Amazon Flipkart Snapdeal Myntra Others
Fig 4.14 Respondent are app most use for shopping.

INFERENCE:
Majority (59.6%) of the respondents was mostly used for Amazon shopping.
79
TABLE NO: 4.15
DID YOU SUGGEST YOUR FRIENDS TO PURCHASE IN ONLINE SHOPPING?

YES 73 71.6%
No 7 6.9%
Maybe 22 21.6%
Total 102 100%
INTERPRETATION.
From this chart we observe 71.6% of respondent was chosen yes, 6.9% ofrespondent was
chosen no, 21.6% of respondent was chosen maybe.
CHART NO 4.15
Chart representing that respondent suggest friends to purchase in onlineshopping.
80
73
70
60
50
40 RESPONDENT
PERCENTAGE
30
22
20
10 7
0
YES No Maybe
Fig 4.15 Respondent are suggesting friends to purchase through online shopping.
INFERENCE:
Majority (71.6%) of the respondents was suggesting their friends to purchase through
online shopping.
80
CHI SQUARE
Age of respondent and opinion about overall online shopping experience.
H0 (Null hypothesis) = There is no significant relationship between Age ofrespondent and
opinion about overall online shopping experience.
H1 (Alternative Hypothesis) = There is significant relationship between Age of respondent
and opinion about overall online shopping experience.
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
VAR00001 * VAR00002
120 100.0% 0 0.0% 120 100.0%
Chi-Square Tests
Value df Asymp. Sig. (2-sided)

Pearson Chi-Square
134.388a 20 .000
Likelihood Ratio 28.258 20 .103
N of Valid Cases 120
a. 23 cells (76.7%) have expected count less than 5. The minimum expected count is .01.
81
CHAPTER 8
CONCLUSIONS AND RECOMMENDATIONS
82
CONCLUSION:
The growth of e-commerce in India relies significantly on the implementation and
continuous strengthening of effective IT security systems, along with the establishment of
necessary technological and legal provisions. While an increasing number of companies,
organizations, and communities in India are beginning to tap into the potential of e-
commerce, there are crucial challenges that must be addressed before it can truly benefit
the common people. With the proliferation of internet connectivity through mobile
devices such as smartphones and tablets, millions of consumers are now making online
purchasing decisions. This trend presents an opportunity for enterprises to establish a
digital presence, enhance productivity, and build their brand digitally. However,
government policies must ensure that cost-effective methods and solutions are available
to support this growth. E-commerce in India is poised for significant growth, both in
terms of revenue and geographic reach. This is largely attributed to the fact that
customers can place orders from anywhere with an internet connection. To succeed, e-
commerce providers should prioritize delivering a seamless customer experience, offering
multiple payment options, and making a wide range of functions available online.
Additionally, expanding product offerings and reaching a broader geographic audience
are other advantages. Despite these opportunities, e-commerce businesses face various
challenges in their quest for success. One prominent challenge is the establishment of
consumer trust in the e-commerce ecosystem, which warrants further research and
attention.
Growth of e-commerce depend to a great extent on effective IT security systems for
which necessary technological and legal provisions need to be put in place and
strengthened constantly. While many companies, organizations, and communities in India
are beginning to take advantage of the potential of e-commerce, critical challenges remain
to be overcome before e-commerce would become an asset for common people. With the
explosion of internet connectivity through mobile devices like Smartphone and tablets,
millions of consumers are making decisions online and, in this way, enterprises can build
the brand digitally and enhance productivity but government policies must ensure the
cost-effective methods/solutions. ECommerce in India is destined to grow both in revenue
and geographic reach. This is due to customer can place a purchase an order from
anywhere with internet connection. E-commerce business provider should give
importance on every customer by giving smooth service and many options for payment
83
and have more functions available online. Other benefits are expanded product offerings
and expanded geographic reach. But e-commerce business faces a lot of challenges in
flourishing their business. The challenge of establishing consumer trust in e-commerce
poses problems and issues that need further research.E-commerce has changed the way
products were shopped in older days. It involves buying & selling of goods & services or
transactions of funds or data over electronic network. E-commerce Industry is one of the
largest growing industries in India at present. Sale of e-commerce industry is expected to
grow in near future due to increase in smart phones internet users, 3G/4G internet
services, awareness in public, government initiative of digitalisation, advance shipping &
payment options etc. But cyber security laws in India is weak that is why Indian people
are facing challenges towards e-commerce. Government should take steps to provide a
proper legal framework so that hurdles in growth of e-commerce are reduced to
minimum-commerce in India is not just a marketplace; it's a catalyst for economic
growth, innovation, and inclusivity. Several factors are propelling the growth of e-
commerce in India. Firstly, the rapid expansion of internet connectivity, especially in
rural areas, is broadening the potential customer base. Additionally, the proliferation of
smartphones and affordable data plans has facilitated easy access to online shopping
platforms. The increasing digitization of payments through platforms like UPI (Unified
Payments Interface) has simplified transactions, fostering trust and convenience among
users. Moreover, the emergence of e-commerce marketplaces offering a wide range of
products at competitive prices and regular sales has attracted consumers from diverse
demographics. By addressing challenges, fostering innovation, and
embracing opportunities, India can harness the full potential of e-commerce to drive
prosperity and empowerment across the nation.
84
BIBLIOGRAPHY
85
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Influences. International Journal of Computer Engineering and Technology.
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Journal of Computing and Business Research.
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Business Strategy. Volume 3 (Issue1).
 Mitra, A. (2013). E-Commerce in India- A Review. International Journal of
Marketing, Financial Services and Management Research. Volume 2 (Issue 2).
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Applied Research. Volume 2 (Issue 8).
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and Challenges. International Journal of Computer Science and Information
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Opportunities. International Journal of Applied Research. Volume 1 (Issue 12).
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Transform India digitally and economically. Engineering International. Volume
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87
ANNEXURE
APPENDIX:
A STUDY ON EMERGING OF E-COMMERCE.
QUESTIONNAIRE:
1. Name of the respondent
2. Age of respondents a.
a. 15-25
b. 26-35
c. 36-45
d. 45 and above.
3. Marital status of the respondent

a. Married
b. Unmarried
c. Separated.
4. Occupation of the respondent

a. Government employee
b. Private Employee
c. Student
d. Others
e. Business
88
5. Monthly income of the respondent a. Rs 5,000/- to Rs
15,000/-
b. Rs 15,000/- to Rs 25,000/-
c. Rs 25,000/- to Rs 50,000/-
d. Rs 50,000/- above
e. No salary.
6. Gender of the Respondent

a. Male
b. Female
c. Prefer not to say
d. Others
7. Can you have experience in E-commerce?

a. Yes
b. No
8. How often do you shop on this site?

a. Very often
b. Seldom
c. Very often
9. Choose products you buy frequently on this site

a. Perfumes and oils
b. Accessories
c. Dresses
d. Electronic Items
e. Others
89
10. How many times do you shop online a month?
a. Once
b. Twice
c. Thrice
d. More than Thrice
11. How much do you spend on online shopping every month?

a. Less than Rs 500/-
b. Rs 500/- to Rs 2000/-
c. Rs 2000/- to Rs 3000/-
d. Rs 3000/- to Rs 5000/-
e. More than Rs 5000/-
12. How would you rate your overall online shopping experience?
a. Excellent
b. Very good
c. Good
d. Fair
13. How likely are you to return to this webpage for your onlineshopping?
a. Very likely
b. Somewhat likely
c. Highly likely
14. Which payment method do you prefer for online shopping?

a. Cash on delivery
b. UPI
c. Credit/Debit card
d. Net banking
15. Which app do you mostly use for shopping?

a. Amazon
b. Flipkart
90
c. Snapdeal
d. Myntra
e. Others
16. Did you suggest your friends to purchase in online shopping?
a. Yes
b. No
c. Maybe
17. Any suggestions about E-commerce
91

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““A STUDY ON SIGNIFICANCE OF E-COMMERCE IN TODAY’S

Project Report submitted to Karnataka State Open University in partial

Under the guidance of

Department of Studies and Research in Commerce

This is to certify that the project report entitled “A STUDY ON

I hereby declare that the Project Report entitled “A STUDY ON

Fourth Semester, Master of Commerce

The satisfaction of the successful completion of any task would be

Sl. No. Particulars Page No.

A developing country can become industrialized and modernized if it can extensively

Accessibility It is easy to expand the size of It may not be easy to expand

Evolution of E-Commerce in India

In the review article, Rina (2016) gives an overview of applications related to E-

➢Kumar, N., (2019) in their study mentioned tremendous growth in e-commerce is

➢Akhmetova, Z., Baimukhanbetova, E., Belgozhakyzy, M., Alikbaeva, A., &

➢Rav en et al.compared India and China’s approaches in adoption of e -

STATEMENT OF THE PROBLEM:

NEED OF THE STUDY:

LIMITATIONS OF THE STUDY:

➢Chapter 6 - The current E-commerce Scenario and growth prospects of E-commerce

➢Chapter 8 – Summary of findings, Conclusion and Recommendation, which covers a

Following are well known definitions of E-Commerce,

The Organization for Economic Co-operation and Development (OECD),

According to Thomas L. Mesenbourg,

According to Zwass (1998),

➢Digital products: Downloadable items like templates, courses, e-books, software, or

❖MANUFACTURING:E-commerce allows manufacturing businesses to streamline

❖PRODUCTION SECTOR: In the manufacturing industry, e-commerce serves as a

❖TRADE: Applying e-commerce to trade elevates it to a higher level, allowing

❖DIGITAL SHOPPING:People's buying habits have shifted dramatically in the

➢Technology-Enabled: Traditional commerce is taking place since times immemorial

➢Intercommunication: E-commerce technology ensures two-way communications

➢Delivery of Information: E-commerce serves as the best channel of communication.

➢Electronic Completion of Business Processes: By using E- commerce we can perform

➢Inter-Disciplinary in Nature: Implementation of E-Commerce needs a lot of

➢Business - to - Business (B2B): The B2B e-commerce paradigm describes online

➢Business - to - Consumer(B2C): Website following B2C business model sells its

➢Consumer - to - Business(C2B): Consumer-to-Business (C2B) is an e-commerce

➢Business - to - Government(B2G): Marketing is sometimes known as "public sector

➢Government - to - Business (G2B): Government uses B2G model website to approach

E-COMMERCE OPPORTUNITIES AND CHALLENGES:

INTERNATIONAL SCENARIO OF E-COMMERCE

➢HISTORY: Amazon India is a fully-owned subsidiary of US based e-commerce giant

➢ACQUISITIONS: Parent company Amazon has acquired scores of companies across

➢VISSION STATEMENT: Amazons vision is “to be Earth’s most customer-centric

➢MISSION STATEMENT: Amazon’s mission statement is “We strive to offer our

Flipkart is one of India’s leading E-commerce marketplaces. Flipkart works in the

➢ACHIEVEMENTS: The Company created a record by selling 1 lakh books in a single

 A fast-growing market in India is online grocery store because it provides convenience

Growth in E-Retail is Directly Related to Growth in Internet Users:

Growth in Terms of Returns for the E-Commerce Industry in India:

Reasons for This Growth Trajectory:

Growth Prospects of E-Commerce in India:

Fig 4.1: Age of the respondents.

GENDER RESPONDENT PERCENTAGE

Fig 4.2 Gender of the respondents.

MARITAL STATUS RESPONSES PERCENTAGE

Fig 4.3 Marital status of the respondents.

Fig 4.4 Occupations of the respondents.

OPTIONS RESPONDENT PERCENTAGE