Flipkart was established in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology

Delhi.

Flipkart.com, Indias largest eFlipkart is among the top 30 Indian web sites and has been commerce player in physical products credited with being India's largest online bookseller with over 11acquired Letsbuy, the second largest million titles on offer. retailer in electronics. With this move, Flipkart firmly The store started with selling books and in 2010 branched out to established itself as the leader in the selling : consumer electronic space
CDs, DVDs, mobile phones & accessories, cameras, computers, computer accessories and peripherals, pens & office supplies, other electronic items such as home appliances, kitchen appliances, personal care gadgets, health care products etc

real Flipkarts achievement has been in solving

the pain points in Indian eCommerce that most well funded players are still complaining about.

Discoverabi l ia y m e n t s P ty
Inventory
Delivery

Credit/Debit Cards

How do IInternet banking make payments for aOn Cash Delivery (COD) Flipkart purchase e- Gift Vouchers ?

Credit/Debit Cards
Internet banking

Cash On Delivery (COD)

e- Gift Vouchers

 All major credit/ debit cards are accepted Is done automatically by software packaged with electronic commerce software. SSL encryption International cards not accepted

Two types of schemes:

3 months
No processing fee charge

6 months
A flat Rs. 500 EMI processing fee charge

Only ICICI, HDFC & CITIBANK

Internet banking
Cash On Delivery (COD)
e- Gift Vouchers

Credit/Debit Cards

Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions.

Flipkart.com The system is updated has tie-ups with immediately after every a number of transaction automatically banks like ABN AMRO, AXIS, BOI, SBI,

Advantages / disadvantages
Check account balances and track recent account activity Transfer money between accounts Issue stop payment requests Apply for auto, mortgage, home equity, student, or personal loans Receive investment product and Need an account with an Internet Service Provider (ISP) Security concerns, like hackers accessing your bank accounts Original setup for bill paying time is time-consuming but will ultimately be a time-saver

It is convenient.

It isn't bound by operational timings. There are no geographical barriers.

Services can be offered at a miniscule cost.

For high volume players

Two types of players in this field

Lower TDR Lower Setup fees

Bank itself providing its own payment gateway (like ICICI payseal)
Low setup fees TDR as high as 7 % Banks need lots and lots of paperwork, and integration time is usually more than 2 weeks. 3rd party players typically have lesser requirements.

3rd party service like Ccavenue which ties up with many banks

 Uses secure servers throughout and adopts stringent security measures

Customers enter all their personal information and Credit Card details on e- payments and the same is encrypted before it is transmitted over the Internet to the Acquiring Banks
CCAvenues server is behind security firewalls to ensure maximum protection of your customers

The Process

The biggest 3rd party player in India. Offers variety of payment options which no other player come even close. Reliable . They are also the most expensive in the industry. They don't offer any custom plan other than the ones mentioned on their site

Credit/Debit Cards
Internet banking

Cash On Delivery (COD)

e- Gift Vouchers

Cash payment to the courier partner only at the time of delivery

Captcha texts for validation Maximum order Rs. 50,000 E- gift vouchers cant be used

Credit/Debit Cards
Internet banking Cash On Delivery (COD)

e- Gift Vouchers

The Wallet is a prepaid instrument that enables one to shop on Flipkart.com multiple times by making a payment only ONCE The upper limit on each Wallet refill is Rs. 10,000.

Make one payment and shop multiple times

Simpler and faster checkout process

No more worries of failed payment transactions When you make an order, you can choose to use the Wallet as the mode of payment and the amount will be deducted from the balance in your Wallet. The total balance in the Wallet (irrespective of the source) will always be available for redemption.

As of 2nd February 2012, the Refunds Policy for the Wallet has been slightly modified. As per the earlier policy, the entire balance in the wallet was fully refundable. Under the updated policy, the Topped-Up balance in the Wallet will not be refundable starting 2nd February 2012. Going forward, once you have purchased balance for your wallet, it will only be redeemable against a purchase and not a refund.

All other terms with respect to the wallet remain the

IS IT SAFE ???

No credit card/internet banking Fear to transact online. Repeat transaction failures.

Auto redirection to banking site

Flipkart never lands you on CCavenue page, you are auto redirected to the banks page where the info is required to be filled By-passes one unnecessary page by passing the required parameters directly to CCavenue What does Flipkart do to and not through a user interface.

overcome these? Banks Status

Flipkart maintains its own real time status if the banks netbanking is working or not

Encryption

Flipkart and their trusted payment gateways use SSL encryption technology to protect your card information.

Secure Sockets Layer (SSL)

Cryptographic system that uses two keys to encrypt data a public key known to everyone and a private known only to recipient of the message.

Secure HTTP (S-HTTP)

S-HTTP is designed to transmit individual messages securely while SSL creates a secure connection between a client and a server over which any amount of data can be sent securely

Complementary rather than competing technologies.

Strengths

Weakness

Opportunities

Threats

STRENGTHS
Flipkart uses SSL encryption technology, one the most trusted technology. Flipkart never lands you on 3rd party Website page (CCavenue) auto redirected to the banks page

Flipkart maintains its own real time status if the banks netbanking is working or not.

Flipkart had atleast 4 different Payment Gateways integrated. They introduced Cash-onDelivery and order on phone.

WEAKNESSES
Potential for overall system being slower during transaction
They can include failure of technology, frauds and tracking of individuals Power failures at the time of transaction can create serious issues

OPPORTUNITIES
Flipkart can use a tracking system for recording the behavior of consumers

c) Better feedback mechanism for Payment related queries can be a edge.

b) Opportunity to decrease the use of paper cash by making system more secure and reliable.

THREATS
This business attracts competition and Flipkart one the first Indian Ecom website so it has created a model for others to enter in to the same business.
Lack of continuous updating can lead to failures as this is a technology driven business so continuous upgradation is required.

Aggregators like CCavenue are just intermediaries between bank/credit card processor and the merchant Removing this intermediary will improve payment success rate and reduce the commission charged So, as the grow, it is important to integrate with credit card gateways like AXIS/HDFC SUCCESS RATE IMPROVES

Heavy investment in Fraud Monitoring System to reduce liability