E-retailing IN INDIA

What is E-retailing?
E-retailing is the use of technology such as computers and the internet to sell a range of products and services online to people throughout the world. Electronic retailing (also called e-tailing and Internet retailing) is a retail format in which the retailer and customer communicate which each other through an interactive electronic network. After an electronic dialogue between the retailer and customer, the customer can order merchandise directly through the interactive network or by telephone. The merchandise is then delivered to the customers address. Electronic retailing(E-retailing) is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service.

Essentials of E-Retailing
E-Catalog Shopping A

Cart

payment gateway

Main differences b/w online retail and physical storefronts

Display

Expense
Location Communication

Technology

E-RETAILING A BRIEFING
To start an e-retailing business, an organization or an individual should have the below.
A UNIQUE IDEA / PRODUCT TO SELL
A PERFECT BUSINESS PLAN

TECHNOLOGY PLANS
E-RETAILERS BACK OFFICE MANAGEMENT PAYMENT GATEWAY

HOW AN E-RETAILING SITE WORKS

Let me illustrate the buying process in the image above 1.Online visitor of the site, will pick up the items to be purchased.
2. Confirming / finalizing the item list selected and checkout. 3. Enter the credit / debit card information to make the payment. 4. User payment information is getting checked with banker via payment gateway and once its authenticated. 5. The payment will be credited to retailer account and an Order confirmation is shown to the visitor along with order details and shipping information.

The visitor will also be notified on the purchase made via email.
The visitor will be able to track their order status and an SMS / email update will be frequently sent to visitor on the product or service delivery

E-RETAILERS BACK OFFICE MANAGEMENT

E-RETAILING BOOMING IN INDIA

As Internet penetration is increasing and e-commerce becoming more secure, the number of people transacting online is expected to touch 39 million by 2015, says a study. According to the study by financial services firm Avendus, this will also provide a further fillip to the Indian e-commerce market which is estimated to grow to USD 24 billion by 2015 from USD 6.3 billion now. At present, about 8-10 million people in India transact online, which is about 11 per cent of the 80 million Internet users in the country, which represents a penetration of seven per cent of the population and 17 per cent of the urban population, says the study titled Indian Digital Consumer Industry. The number of transacting users in the US was 170 million in 2010, comprising of 69 per cent of the overall Internet users there. This number has been growing at eight per cent for the last six years

FLIPKART.COM
Flipkart is an Indian e-retailing company headquartered in Bangalore, Karnataka. It was founded by Sachin Bansal and Binny Bansal in 2007. In its initial years, Flipkart focused on online sales of books but it later expanded to electronic goods and a variety of other products FUNDING Initially funded by the Bansals themselves with 400,000, Flipkart has since then raised funding from venture capital funds Accel Indiain 2009 and Tiger Global (US$10 million in 2010 and US$20 million in June 2011). ACQUISITIONS

2011: Chakpak.com is a Bollywood news site that offers updates, news, photos and videos
2012: Letsbuy.com is India's second largest e-retailer in electronics. Flipkart has bought the company for an estimated US$ 25 million..Letsbuy.com had been closed down and all the traffic of Letsbuy is diverted to Flipkart.

Business results
Flip kart's reported sales were 40 million in FY20082009, 200 million in FY 20092010 and 750 million for FY 20102011. in FY20112012, flipkart is set to cross the 5 billion (us$100 million) mark as internet usage in the country increases and people get accustomed to making purchases online. on average, flip kart sell s nearly 20 products per minute and is aiming at generating a revenue of 50 billion (us$1 billion) by 2014.

MYNTRA.COM
Myntra.com is an Indian online shopping retailer focus on fashion and casual lifestyle products, and headquartered in Bangalore. It is among the top ecommerce companies in India and is scaling rapidly. Myntra was established by Mukesh Bansal , Ashutosh Lawania, and Vineet Saxena in February 2007. All three are IIT alumni, and have worked for several start-ups. Myntra is headquartered in Bangalore and have been funded by top tier Venture Capital funds like IndoUS, IDG & Accel Partners. Focus And Products Myntra has tied up with top fashion and lifestyle brands in India, such as NIKE, Reebok, Puma, Adidas, Asics, Lee, Lotto, Decathlon, FIFA, John Miller, Indigo Nation etc. to offer a wide range of current season merchandise from these brands

BUISNESS MODEL
In October 2007, A Funding Of $5 Million From Nea-indous Ventures, IDG Ventures And Accel Partners.

Towards The End Of 2011, Myntra.Com Raised $20 Million In Its Third Round Of Funding Led By Tiger Global.
Myntra Launched A Brand Campaign With Its First Tvc In July 2011. . Myntra's Second Campaign, With The Tagline "Ramp It Up", Was Launched In October 2011 With A Tvc. In June 2012, Myntra Launched Its Third Campaign. Created By Taproot, The Communication Emphasises The Benefits Of Buying Online, And Is Titled 'Real Life Mein Aisa Hota Hai Kya'..

AWARDS
Myntra.com was announced as a winner of the Red Herring Global 100 award CNBC - TV18 awarded Myntra.com as one of the Hottest Internet Companies of the Year at the Mercedes - Benz CNBC - TV18 Young Turks Awards.

YEBHI.COM
Yebhi.com is an Indian Online Shopping E-retailing portal for Home, Lifestyle & Fashion e-retailer, launched in the year 2009. FUNDING Yebhi, which began as BigShoeBazaar.com, has a registered user base of about 1.5 million people, of whom about half a million have transacted on the site. Nexus Venture Partners and N.R.Narayanmurthys Catamaran Ventures invested Rs 40 crore in Aggarwals company in mid-2011. On July' 10th 2012, Big Shoe Bazaar India Pvt Ltd. owner of Brand Yebhi.com announced that it has raised INR 100 Cr in Series C round of funding led by Fidelity Growth Partners India and Qualcomm. AWARDS 5th Loyalty Awards which were presented by AIMIA Hottest Internet Company at the CNBC-TV 18 Young Turks Awards powered by Mercedes Benz

SNAPDEAL
Snapdeal.com is one of the India's largest Online marketplace, headquartered in New Delhi, India. Snapdeal features products across categories like Mobiles, Electronics, Fashion accessories, Apparel, Footwear, Kids, Home and Kitchen, Sports, Books; and services like Restaurants, Spas & Entertainment amongst others. The company was started by Kunal Bahl, a Wharton graduate and Rohit Bansal, alumnus of IIT Delhi, in February 2010. Funding In January 2011, Snapdeal received a funding of $12 million from Nexus Venture Partners and Indo-US Venture Partners. Subsequently, in July 2011, the company raised a further $40 million from Bessemer Venture Partners, along with existing investors Nexus Venture Partners and Indo-US Venture Partners, taking the total investment in the company to $52 million. Acquisitions In June 2010, Snapdeal acquired Bangalore-based group buying site, Grabbon.com In April 2012, Snapdeal acquired esportsbuy.com, an online sports goods retailer based out of Delhi

HOMESHOP18
HomeShop18 is the online & on-air retail marketing and distribution venture of Network 18 Group that was launched as Indias first 24 hour Home Shopping TV channel on 9 April 2008 Network 18 has the controlling stake of 51%. PRODUCT CATEGORIES
Books & Musics Home Appliances Decoration Kitchen & Dining Fashion Accessories RECOGNITION gifts Mobiles and Cameras Health & Fitness Jewellery & Watches Kids & Babies Electronics Home Toys Personalized

HomeShop18 has won many industry awards and accolades. 2012 eRetailer of the Year at Indian eRetail Awards 2011 Brand Excellence Award in Internet Business category at the World Brand Congress, 2011 2010 Best Shoppers Insight Model Award at Asia Retail Congress 2008 PC World Best Shopping Website Award

ADVANTAGES OF SHOPPING ONLINE:There are many advantages and disadvantages to shopping online. 1. Remain Open All the Time You can do it 24/7. You can shop whenever you want.
2. Provide Comparison Shopping Wide variety of stores within a few clicks. 3. Discount Discount coupons are more readily available online. 4. Eliminate Travel Time and Cost No lines to wait in nor cranky people to deal with. 5. Overcome Geographical Limitations If you have a physical store, you are limited by the geographical area that you can service. With an ecommerce website, the whole world is your playground.

6. Locate the Product Quicker On an ecommerce website, customers can click through intuitive navigation or use a search box to immediately narrow down their product search.

7. Provide Abundant Information Ecommerce websites can make additional information easily available to customers.
8. Removes boredom You can listen to whatever music you like while shopping online.

9. Create Targeted Communication Using the information that a customer provides in the registration form, and by placing cookies on the customer's computer, an ecommerce merchant can access a lot of information about its customers. 10. Create Markets for Niche Products

Buyers and sellers of niche products can find it difficult to locate each other in the physical world.

DISADVANTAGES OF SHOPPING ONLINE

1. Ecommerce Delays Goods ecommerce websites deliver take a lot longer to get the goods into your hands. 10-15 days to receive them 2. Ecommerce Lacks That Personal Touch Not that all physical retailers have a personal approach, but I do know of several retailers who value human relationship. 3. Many Goods Cannot Be Purchased Online Despite its many conveniences, there are goods that you cannot buy online. 4. Ecommerce Does Not Allow You to Experience the Product Before Purchase You cannot touch the fabric of the garment you want to buy. 5. Anyone Can Set Up an Ecommerce Website We live in an era where online storefront providers bring you the ability to set up an ecommerce store within minutes. s.

6. Security When making an online purchase, you have to provide at least your credit card information and mailing address. 7. Time Consuming You can only see what will fit on one page at a time. You can only see what will fit on one page at a time. when you walk into a local store, you can see many more items at a glance. 8. Difficulty In Returning Returns are more difficult online than in Local stores suppose you buy a shirt from yebhi and it doesnt fit you when you try to return you have to pay shipping + 10-15 days of waiting to get. 9. Payment Got Stuck payment got stuck it happened with us many times while paying item internet gets fail or something gets wrong and we have to email lot of time to cc avenue and shopping sites to get our refund 10. Un-Necessary Shopping Sometimes due to heavy discount we tend to buy things which are not required by us and in the last they just end up in occupying the space of our house.

PAYMENT METHODS
An e-commerce payment system facilitates the acceptance of electronic payment f or online transactions. Also known as a sample of Electronic Data Interchange(EDI), ecommerce payment systems have become increasingly popular due to the widespread use of the internet based shopping and banking. . Various methods of payment are described below.
Credit cards Debit cards Electronic cash and cash on delivery Cheque payment Online banking

CREDIT CARD A Credit Card is a small plastic electronic card which can be used for online shopping and the money can be paid later Debit Card Debit Card is a small plastic electronic card looking very similar to credit cards. The important difference is that debit cards uses your savings account balance for payments where as in credit card u shop first and pay later Online Shopping Payments By Cheque Payments made using bankers cheque is a popular and widely accepted method. The customer issue the cheque in the merchant 's name. Merchant deposits the same cheque in his bank and it is sent to customer's bank for clearance. The amount will be deposited in merchants account once clearance made. Usually bank's collect a clearance charge.

Cash on Delivery

In this system payment is made only at the time of delivery of products.

Online Banking To access online banking, the customer would go to the financial institution's website, and enter the online banking facility using the customer number and password.