Chapter-1: E-Commerce On Flipkart
Chapter-1: E-Commerce On Flipkart
Chapter-1: E-Commerce On Flipkart
CHAPTER-1
INTRODUCTION
1.1: Introduction.
India has always been a land of great potential. The social economic
conditionof the country has improved many folds after independence and India is
now emerging as one of the leading countries in the world. Moreover with a
population over 100 crore and growth rate is above 6%, it can be compared to a
marketing giant. Hence it can be well judged why online shopping in India is rise
at fast pace over the day. As technology is seared to a remotest village and many
job opportunities are presenting themselves to the unemployed youth and
more and more people are gaining awareness and the money to purchase
expensive and luxuries item over the internet.
Let us talk about the home-grown India e-commerce site “flipkart” also
considers as the Amazon of India.A company which started with just 4 lakhs is
now worth is over more than 2000 crore, according to data flipkart has provided to
Ministry of Corporate Affairs: the companies revenue is 2011-2012 was $77
Million (Rs. 500 crore). For the fiscal 2012-2013, their revenue is estimated to be
$350 Million. With this huge success flipkart is becoming the fate of online retail
in India. This paper attempt to through light and growth of online retail in
business in India with special reference to flipkart (analyzing the consumers
feedback about the online businessmodel of flipkart).
The invention has opened the whole new world of possibilities for us. Not
onlywe can communicate with the we love with in moment but now a day many
vital tasks like job, shopping, socializing and many others can be done easily at
the convenience of the homes. The concept of online shopping is relatively
new one and it enables us to buy all our favourite goods and accessories over the
internet. This will not only save the time but also we can get the product at much
discounted price and that too all our homes. There are many online storesthat have
developed in recent times like lets shops.in, flipcart.com and many others. This
stores host a wide range of products like bags, shoes, books, gadgets and many
others. To purchase any product you have to visit the site and click on the
product that you would like to purchase and the product will be delivered to you
within a week maximum. It’s that simple.
The nature of Indian e-commerce is also different. Travel has the lions
share of 71% of Indian e-commerce, but e-tailing has grown the fastest, at a 59%
CAGR between FY09-13E, to reach 16% market share. Compared to the west,
India’s e-commerce industry is still in its infancy, but we believe that it may
become a bigger part of the entire retail universe than in the west.
2. Customer Demographics:
This objective examines how Flipkart generates revenue (e.g., through sales,
ads, or subscriptions) and manages costs (e.g., logistics, technology, and
marketing). Understanding the business model provides insights into
operational efficiency and profitability.
This objective involves studying the technology Flipkart uses, such as its
website infrastructure, mobile app features, and data analytics tools. It also
explores innovations like AI and machine learning that enhance the shopping
experience or streamline operations.
1.4 Methodology:
Data Collection Method:
a) Primary Data:
Primary data was collected through the survey method
(questionnaire observation and interview) from the respondents.
Observations regarding the rise of online shopping trends. The
questionnaires aimed at studying the customer’s preference and
feedback for the online shopping sites flipkart. Unstructured
interview was conducted for some of the respondents to find out the
drawbacks of the online model of flipkart.
b) Secondary data:
Secondary data was collected through various websites and articles
available on the internet.
1.5 Limitations:
1. Intense Competition: Flipkart competes with global giants like Amazon and
local players such as Reliance’s Jio Mart. This intense competition puts
pressure on pricing, market share, and customer retention.
2. Profitability Challenges: Flipkart has struggled with profitability due to high
operational costs, including logistics and marketing expenses. Despite
revenue growth, achieving consistent profitability remains a challenge.
3. Logistics and Delivery Issues: Managing an extensive supply chain and
ensuring timely deliveries can be complex and costly. Issues such as delays,
high shipping costs, and logistics inefficiencies can impact customer
satisfaction.
4. Regulatory and Compliance Hurdles: Navigating various regulatory
requirements, including data protection laws and e-commerce regulations,
can be challenging and costly. Compliance with local and international laws
adds to operational complexity.
5. Dependence on Discounts and Offers: Flipkart often relies on heavy
discounts and promotional offers to drive sales. This dependence can erode
profit margins and create a perception of low value when not running
promotions.
CHAPTERS-2
INDUSTRY PROFILE AND COMPANY PROFILE
2.1 Industry Profile:
The e-commerce also started a virtual storefront that is dedicated to the
academic needs of students named 'Flipkart Student's Club'. The 'Flipkart Green'
venture was created in 2023 for customers who want to have a sustainable
lifestyle by providing certified sustainable products. Things are easier said than
done! To realize our dreams and that also in such a grand manner is really a tough
task. The founders of Flipkart have probably conquered their dreams with the
amazing success of Flipkart. Flipkart is something which has really opened up the
Indian e-commerce market and that also in a big way. Flipkart was co-founded by
Sachin Bansal and Binny Bansal in Oct 2007. Both are graduates from IIT-Delhi
and have prior work experience in Amazon.com They both were solid coders and
wanted to open a portal that compared different e-commerce websites, but there
were hardly any such sites in India and they decided to give birth to their own e-
commerce venture - Flipkart.com. This was born Flipkart in Oct 2007 with an
initial investment of 4 lakh (co-founders savings). It was never going to be easy
since India has had bad past experiences with e-commerce trading. It was not an
easy segment to break into, people were very particular in paying money for
something which they had not seen and received. The trust was missing in the
Indian customers. So what Flipkart had to do was to instill trust and faith in their
customers. Flipkart began with selling books, since books are easy to procure,
target market which reads books is in abundance, books provide more margin, are
easy to pack and deliver, do not get damaged in transit and most importantly
books are not very expensive, so the amount of money a customer has to spend to
try out one's service for one time is very minimal. Flipkart sold only books for the
first two years.
In the financial year 2008-09, Flipkart had made sales to the tune
of 40 million Indian rupees. This soon increased to 200 million Indian rupees the
following year. Flipkart targets to hit the one billion mark by 2015. Going by their
ever increasing popularity, it does not seem like a farfetched thought.
The second problem was the entire supply chain system. Delivering
goods on time is one of the most important factor that determines the success of
an ecommerce company. Flipkart addressed this issue by launching their own
supply chain management system to deliver orders in a timely fashion.
The company operates both ways when an order is received. The products
for which it holds inventory are dispatched by it directly. For the products they do
not store in inventory, they just send the order received by them to the supplier
who ships it. The company plans to spend about ₹ 75 crores on e-commerce
advertising in the year 2016.Flipkart reserves the right to terminate your
membership and/or refuse to provide you with access to the website if it is brought
to Flipkart’s notice or if it is discovered that you are under the age of 18 years.
This is because as per the Indian contract Act, 1872, the minors, un-discharged
insolvents, etc.
2.4 Vision:
2.5 Mission:
2.6 Values:
Flipkart emphasizes several core values that guide its operations and interactions
within the e-commerce landscape. These values are integral to how Flipkart
conducts business and shapes its corporate culture:
E-commerce typically uses the web for at least a part of a transaction's life cycle
although it may also use other technologies such as e-mail. Typical e-commerce
transactions include the purchase of products (such as books from Amazon) or
services (such as music downloads in the form of digital distribution such as
the iTunes Store). There are three areas of e-commerce: online retailing, electronic
markets, and online auctions. E-commerce is supported by electronic business.
The existence value of e-commerce is to allow consumers to shop online and pay
online through the Internet, saving the time and space of customers and
enterprises, greatly improving transaction efficiency, especially for busy office
workers, and also saving a lot of valuable time.
Online shopping for retail sales direct to consumers via web sites and mobile
apps, conversational commerce via live chat, chatbots, and voice assistants.[4]
Providing or participating in online marketplaces, which process third-
party business-to-consumer (B2C) or consumer-to-consumer (C2C) sales;
Business-to-business (B2B) buying and selling.[5]
Gathering and using demographic data through web contacts and social media.
B2B electronic data interchange.
Marketing to prospective and established customers by e-mail or fax
(for example, with newsletters).
Engaging in retail for launching new products and services.
Online financial exchanges for currency exchanges or trading purposes.
1. Sachin Bansal was awarded Entrepreneur of the Year, 2012–13 from The
Economic Times, a leading Indian economic daily newspaper.
2. In September 2015, the two founders entered Forbes India's richest Indian by
year, debuting in the 86th position with a net worth of US$1.3 billion each.
3. In April 2016, Sachin and Binny Bansal were named to Time magazine's
annual list of the 100 Most Influential People in the World.
4. Flipkart was reported to be at the top in the annual fairwork India Ratings
2021 - which is a 10-point system that creates a score based on fair pay,
conditions, contracts, management, and representation.
5. A total of 11 platforms were evaluated by a consortium of the Centre for IT
and Public Policy (CITAPP), International IIIT Bangalore and the global
Fairwork network .The methodology included qualitative interviews with 19-
20 workers in Delhi and Bangalore.
CHAPTER-3
ORGANISATIONAL STRUCTURE
Organizational Structure of Flipkart, The best market in the today’s world is the
online shopping market, where the online website holder can get a huge crowd as
people from all over.
Organizational Structure of Flipkart, The best market in the today’s world is the
online shopping market, where the online website holder can get a huge crowd as
people from all over the world are connecting through the internet and want the
products to be delivered at their home. Today I will discuss about the E-commerce
giant and the most reputed online shopping website “Flipkart”. The structure of
the website is very much complex and needs to be understood in a simplified.
Flipkart is the company which is incorporated in the year 2011 in Singapore and
registered itself with the Singaporean government. Flipkart Pvt Ltd is the main
holding and the parent company under which there are many subsidiaries
involved.
Flipkart follows a functional structure which is has evolved from a flat structure to
a more complex matrix as a result of its rapid expansion. This suggests that
Flipkart has its activities grouped together by common function from the bottom
to the top of the organisation. A functional structure combines all the knowledge
and skills specific to an activity together, providing a valuable depth of knowledge
for the organisation. This in-depth expertis is critical to meeting the organisational
goals, establish control and coordination in the vertical hierarchy and when
efficiency is important. For a bureaucratic culture, this sort of structure has been
widely accepted.
There are top five shareholders of the Flipkart, the list is as follows:-
Flipkart is the company which is incorporated in the year 2011 in Singapore and
registered itself with the Singaporean government. Flipkart Pvt Ltd is the main
holding and the parent company under which there are many subsidiaries
involved.
CHAPTER-4
DEPARTMENTAL STUDY / FUNCTIONAL AREAS
4.1 Departmental Study.
A department focused on studying Flipkart within the e-commerce sector
would provide a comprehensive examination of its operations and market impact.
This analysis would encompass Flipkart’s market positioning in India’s booming
e-commerce landscape, delving into consumer behavior trends and preferences
that shape purchasing decisions. The department would scrutinize Flipkart’s
business model, which integrates direct sales with a marketplace approach, and
evaluate its revenue streams, including sales, commissions, and subscription
services. Key technological innovations, such as AI for personalized
recommendations and logistics advancements, would be explored to understand
their role in enhancing operational efficiency and customer experience. Supply
chain and logistics strategies, crucial for timely deliveries across a diverse
geography, would be analyzed, alongside marketing strategies aimed at customer
acquisition and retention. Additionally, the department would assess Flipkart’s
competitive positioning relative to rivals like Amazon India and Snapdeal.
Regulatory compliance and ethical considerations, including data privacy, labor
practices, and environmental impact, would also be key areas of focus. This
multifaceted study provides a thorough understanding of how Flipkart operates
within the e-commerce ecosystem, offering insights into its successes, challenges,
and strategic responses in a dynamic market.
A department dedicated to studying Flipkart would conduct an in-depth
analysis of the company's role in the e-commerce sector. This would involve
examining Flipkart's market positioning within India's rapidly growing online
retail landscape, focusing on consumer behavior, purchasing trends, and how
these influence the platform's success. The study would cover Flipkart’s business
model, including its hybrid approach of direct retail and marketplace operations,
as well as its revenue generation strategies through sales, commissions, and
subscription services. The department would also investigate the technological
innovations employed by Flipkart, such as AI for personalized shopping
experiences and advanced logistics systems for efficient delivery.
1. Product Management:
5. Customer Service:
1. Production Department:
5. Quality Control: Ensures that products meet quality standards before they
are shipped. This department handles inspections and manages returns related
to quality issues.
6. Packaging: Responsible for packaging products securely to prevent damage
during transit and facilitate smooth handling.
3. Finance Department:
a. Accounting:
The finance department plans and implements the company's financial year
budget. Thedepartment also conducts research and collects data that assists in
the organization's temporaryand permanent financial forecast.
Five skills you need to work in a specific finance department role are:
c) Analytical skills: Analytical thinking is how you can review data to identify
patterns, discrepancies or additional funds within the company's finances.
This skill shows employers you can view numbers in a more complex way.
4. Marketing Department:
The marketing strategies of Flipkart differentiate it from other brands. Today, the
brand also owns many small organizations like Myntra, Phonepe, etc. First, let’s
know more about the company then we’ll move toward the marketing strategies
of Flipkart. Flipkart’s prominent marketing strategy concentrates on every single
touch point their consumers are now at. It functions as the majority of its cost on
numerous digital channels comprising paid and organic marketing. Furthermore,
because India has newly experienced the digital revolution, the attempts of
Flipkart are paying off. Flipkart is regarded as one of the reliable platforms for
online shopping. Moreover, we discuss some gadgets or apparel, and Flipkart has
constantly revealed their high-quality service.
CHAPTER-5
SWOC ANALYSIS AND INTERPRETATION.
5.1 SWOC Analysis.
Flipkart is a leading Indian E-commerce firm which has been delighting Indian
consumers over the years. It started out as a small online bookstore and now is a
billion-dollar firm. In this article, I will be running through the detailed SWOT
analysis of Flipkart and provide in-depth insights about Flipkart.
We can achieve the most basic form of analysis of a company with a SWOT
analysis and here I aim to take you through the SWOT analysis of Flipkart. Don’t
you want to understand how has Flipkart been so successful? How has it manged
to be among the top 2 E-commerce firms in India since the last decade? You
might also consider getting hands on the SWOT analysis of online shopping in
India as an industry itself and we could benchmark the SWOT analysis of Flipkart
vs Amazon. These two hugely successful companies have kept delivering the
goods. Further more, they have been competing for supremacy in online retail.
Through the SWOT analysis of Flipkart, you would gain a clarity on its strategic
decisions and constant success. Let’s understand the concept of SWOT Analysis
initially.
SWOC Analysis:
Now let us get to the SWOC analysis of Flipkart.
You will see how the internal and external factors affect Flipkart and its success.
You can also analyse and indicate the strategic improvements that the company
can cater to in future.
This section will comprehensively figure out why Flipkart is such a huge success
story.
1. Strengths of Flipkart:
a. Experienced Foundation: The online retail industry in India was taking its
baby steps back in 2007-2008. And at that time, Flipkart’s founders (Bansal
brothers) who had just worked at Amazon were leading the firm. Their
technical expertise in online retail industry eased Flipkart’s growth and
prominence.
Even after Amazon’s entry, the competition is still cut throat owing
to the great foundations laid by them. You might also consider getting hands on
the SWOC analysis of online shopping in India as an industry itself and we
could benchmark the SWOC analysis of Flipkart vs Amazon. These two hugely
successful companies have kept delivering the goods. Further more, they have
been competing for supremacy in online retail. Through the SWOC analysis of
Flipkart, you would gain a clarity on its strategic decisions and constant
success. Let’s understand the concept of SWOC Analysis initially.
Be it those kids acting like adults in those TV ads or the frenzy around ‘Big
Billion Day’.
Over the years, Flipkart managed to rope in icons like Alia Bhatt, Ranbir Kapoor,
Virat Kohli etc to connect with its user segments. Tag lines like ‘Ab Har Wish
Hogi Poori’ and “India ka Fashion Capital’ are trending amongest Indian
consumers. E-commerce marketplace Flipkart says it has had a better brand recall
among customers this festive season than its rivals. According to the Bengaluru-
based firm, sales on its platform spiked during rival Amazon’s sale during
October 17-20, despite it not running any such campaign or offering extra
discount. Higher sales were reported in key categories such as smartphones,
electronics, fashion and large appliances. The unexpected jump is making Flipkart
course-correct its estimates for the month. With the company’s second sale
planned on October 25-28, it expects another large turnout that could help boost
sales to nearly four times its monthly sales average.
Flipkart has consistently been able to establish tie-ups with likes of Myntra,
Jabong, Walmart because it wanted to solidify its position.
Having a separate brand pertaining to fashion and one for digital payments
(PhonePe) contributes greatly to brand equity. Further, Flipkart has entered
many strategic partnerships like Ekart, Letsbuy, Walmart etc. This enables
Flipkart to bolster their logistics, payment gateways and digital content
creation.
2. Weaknesses of Flipkart.
The online retail giant, Flipkart also faces some internal weaknesses. Let us
have a look at some of them.
3. Opportunities of Flipkart
While there are many obstacles on the way, there are situations where Flipkart
can benefit and leverage from. Let’s take a look at the Opportunities:
a. Post-Pandemic Sentiments:
Just like COVID has wreaked havoc globally, it also provides great impetus
for embracing ‘digital’. As more and more consumers are being aware and
switching to online consumption of services. You might be ordering your daily
essentials though these E-commerce websites. It Is a golden opportunity for
Flipkart to grab on. They should extend its range of offerings focusing on
consumer sentiments and insight.
b. Market Development:
Knowing to the thrust towards digital economy and retail, Flipkart should
indulge in new market development and extend its services.
Flipkart has to be move across borders of India and serve customers from
neighbouring geographies like South-East Asian countries. Because these
countries have a high demand for online retail.
Entering into joint ventures with local players, Flipkart can look to diversify its
revenue from alternate markets.
c. Delivery Excellence:
Order returns, refunds, cancelations, redressal of delivery issues, and fake
product deliveries etc, are issues Flipkart should enhance in their ranks.
Source - Optimising the supply chain and logistics for Online Retail
Flipkart should try to reduce the delivery times and increase its operational
efficiency for tier 2 & 3 cities because rural dwellers are now surging to online
shopping.
4. Challenges of Flipkart.
In this era of intense competition for survival, there are some threats of
Flipkart that it must be vary of. Let’s take a look at them
The proposed policies expect e-commerce companies like Amazon and Flipkart
to ensure that shipments from abroad are channelised through the customs
route and have a registered business entity in the country. I hope after going
through the SWOT Analysis of Flipkart, you now have high clarity on what
Flipkart’s business is all about. I must also recommend you go and read the
SWOT analysis of Amazon. Why so? It helps you understand the different
aspects of the two rivals via the SWOT analysis of Flipkart vs Amazon.
5.2 Interpretation.
5.1: How often respondents shop online.
120
100
80
Frequency
60
Percent
40 Cumulative Percent
20
0
One in a Once in 2 More Very rarely
month months frequently
Interpretation: From above table we can interpret that how often respondents are
doing shopping online. It became habit of choosing online shopping instead of
brick and mortar shopping. Here 30% of respondents are so regular that they do
shop online at least once in month. That opens more ways to e-commerce people
to succeed in market.
Female 13 9 1 1 24
Male 6 11 1 1 19
(Paytm wallet,
Paypal, etc.)
120
100
80
60
Frequency
40 Percent
20 Cumulative Percent
0
Cash on Credit Debit Net Third (Paytm
delivery Card Card Banking Party wallet,
Paypal,
etc.)
120
100
80
Advertisements
60
Online Reviews
40 Referral by friends
20
0
Frequency Percent Cumulative
Percent
120
100
80
Frequency
60
Percent
40 Cumulative Percent
20
0
Amazon Flipkart Snapdeal Others
120
100
80
Festival
60
Offers
40 To Gift
20
0
Frequency Percent Cumulative Percent
300
250
200
Others
150
Flipkart
100 Amazon
50
0
Frequency Percent Cumulative Percent
120
100
80
Frequency
60
Percent
40 Cumulative Percent
20
0
Amazon Flipkart Snapdeal Others
CHAPTER-6
FINDINGS AND SUGGESTIONS
6.1 Findings
1. 90% of respondents feel safe in online shopping they have no fear and have
started shopping online while still 10% are hesitant of shopping online they
are the late majority type of customers who adopt the technology and
advancement in later stage.
3. Even though flipkart doesn’t have a big list of competitions but there are
stores which have grabbed attention of buyers namely jabong, eBay, Myntra,
Amazon,Zovi.
4. 80% of the respondents said that they have excellent first time experience with
flipkart while 15% said they have overall good and remaining said that they
haveaverage experience while shopping first time with flipkart.
6. Flipkart is a very price efficient company because offers the products directly
from the manufacture and eliminates the profit margin of the mediator’s
productsat prices lower than the market price.
7. The respondents are very satisfied with the homogeneous list and option
flipkart offers to its customers.
Price will still be a factor as Flipkart being a huge company will use its
economies of scale to remove their competitors from the market; therefore
they need to be more competitive on that aspect.
6.3 Conclusion:
The thorough study is based on the consumer behaviour analysis
which serves a great idea regarding consumer perception when they go for online
shopping. In order to satisfy themselves consumer perceive many things before
buying products and they will be satisfied if the company meet their expectation.
The Overall Brand Value of Flipkart is good, but it is facing some tough
competition from its global competitors like E-bay and Amazon. Talking about
domestic market i.e India, it is the most superior E-business portal which is
aggressively expanding& planting its roots deep into the Indian market & at the
same time shifting the mind-set of the people from going & shopping from
physical store to online stores, which is magnificent!. Be very focused on
consumers and build amazing experiences for the customers. Despite its strong
market position, Flipkart faces significant competition from other major e-
commerce players and emerging platforms. To maintain its leadership, the
company must continuously innovate and adapt to evolving consumer
expectations, including demands for faster delivery, better customer service, and
more personalized shopping experiences. Flipkart's e-commerce platform stands
out as a leading player in the Indian market due to its extensive product range,
competitive pricing, and strong market presence. The platform effectively caters
to a diverse demographic, with a significant portion of its user base being younger
consumers who favor gadgets and fashion. Flipkart's strategic pricing, including
discounts and promotions, attracts price-sensitive customers and drives sales
across various categories.
Learning Experience:
My exploration of Flipkart as an e-commerce platform has been insightful,
providing valuable lessons in user interface design, customer engagement, and
operational efficiency. Flipkart's intuitive user interface facilitates easy navigation
through its extensive product categories, enhancing the shopping experience. The
clear layout, cohesive color schemes, and strategic placement of features
contribute to a user-friendly interface that simplifies browsing and purchasing.
One of the standout features of Flipkart is its robust search functionality, which
allows users to quickly locate desired products through effective filters and sorting
options. This enhances convenience and reduces the time spent searching for
specific items. Additionally, the platform's mobile app offers a seamless
experience comparable to its desktop counterpart, ensuring accessibility and
usability across different devices. Throughout my interactions, Flipkart's
commitment to customer service and support stood out. The platform provides
accessible channels for addressing queries and concerns promptly, reflecting a
customer-centric approach. This aspect not only ensures customer satisfaction but
also underscores the importance of responsive support systems in e-commerce
operations. Marketing and promotional strategies on Flipkart are strategically
implemented, with targeted offers and discounts enhancing user engagement and
loyalty. The platform's use of personalized recommendations further enriches the
shopping experience, demonstrating effective utilization of data analytics to cater
to individual preferences.
Bibliography:
1. https://www.flipkart.com/
2. https://www.caknowledge.in/organizational-structure-of-flipkart/
3. https://www.superheuristics.com/swot-analysis-of-flipkart-detailed/
4. https://en.wikipedia.org/wiki/Flipkart
5. https://en.wikipedia.org/wiki/Flipkart#Awards_and_recognition\
6. https://en.wikipedia.org/wiki/Online_shopping.