The presentation provides an overview to the e-commerce market in India for budding entrepreneurs. Highlights the areas to focus on.

1. An Introduction to E-Commerce
Market in India
by Anirudh Chari

2. E-Commerce Market has evolved from a ‚here-also‛ to a dedicated platform to showcase,
promote and sell products over the internet to an audience not limited by geography or store
location
Broadband
penetration Indian companies start to
witnesses experiment, new
Amazon sudden growth
USPS entrepreneurs start online
posts first in most
Launches e- businesses
ever profits markets
stamps
globally Even traditional players such
Backbone of 3G networks by as utsav sarees, Chirag Din,
e-commerce Facebook Mobile
Google etc. find success in e-
formed launched for operators made
Launched commerce
college operational
its beta
students
version
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
New business models start
Acquires emerging globally such as
Netscape One of the Ebay Youtube Groupon, etsy, Kaboodle, etc.
Launched first large acquires largely oriented to facilitate
companies PayPal for iTunes online shopping
SSL to reach $1 $1.5 mn becomes
Encryption mn in online the largest Mobile commerce witnesses a
enabled sales digital spurt backed by growing
Online music number of MIDs
Shopping retailer
The roots for social – e-
commerce were laid
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 1
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

3. The e-commerce market in India is currently in its nascent stage and is expected to grow at
about 35% CAGR over the next 3-4 years
■ The e-commerce market in India is estimated to be valued E-Commerce Market in India (in INR Crores)
at over INR 30,000 Crores and is forecasted to grow at 50,000 46,520
around 35% CAGR over the next 3-4 years
40,000
31,598
■ The usage pattern, however, has remained quite uniform 30,000
and skewed over the years with services continuing to 19,688
dominate the overall market while others still lag behind. 20,000 14,030
8,146
10,000
■ Online travel contributes to close to 80% of the total
market 0
CY 2007 CY 2008 CY 2009 CY 2010 CY 2011
■ Financial services market, such as online insurance
payments and transactions through trading accounts, grew Travel Non travel Total E-Commerce Industry
at an estimated 25% during the one-year period ending Source: IAMAI report on the E-commerce Market in India
December, 2010 Components of the E-Commerce Market in India
e-tailng, 8%
‒ Comprising 8% of the e-commerce market, this Other Online
sector is expected to grow by 34% by 2012 Services, 6%
Financial
■ Online retailing contributes to about 8% of the total market. Services, 8%
It comprises of buying consumer items such as cameras, Digital
computers, home & kitchen appliances, flowers and toys, Downloads,
2%
gifts online Online Travel,
76%
‒ This category has grown from about INR 980
crores in year 2007 to over INR 1,500 in year 2009;
and is currently valued at about INR 2,200 crores. Source: IAMAI report on the E-commerce Market in India
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 2
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

4. Backed by a advances in technology, i.e. internet penetration, security, evolving user
experience management and cost competitiveness, the e-commerce market is only expected
to grow
Critical mass of Internet users  100 million Internet users
Mobile Internet is a big growth driver  mobile installed base 6x to 8x bigger than PC installed
base
Rising middle class with disposable income  consumers that are spread across the country
are computer literate and also have access to devices from where they can access the internet.
Middle class is increasingly turning to e-commerce as the primary outlet for sophisticated consumer
products and services
Payment gateways & logistics  new breed of domestic logistics companies recognize the
importance of reliable delivery and technology investment, and a number of new payment gateway
companies such as CC Avenue have sprung up to service the growing e-commerce ecosystem.
Alternative payment methods such as net-banking and cash on delivery are now mandatory
offerings for leading e-commerce platforms
User Experience  Customers prefer a trusted relationship with an e-commerce brand, and the
conveniences and reliability of e-commerce businesses have to outweigh the benefits of traditional
retail outlets
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 3
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

5. Business models in the space have evolved across the spectrum, engulfing personalized
time-share on every device…
Business Traditional E-Commerce Emerging E-Commerce
Models
E-Retailers - E-Retailers - 3rd Party – Seller Private Sales Daily Deal Mobile
Brands Stores Platforms Stores Commerce
Push Deals
Penny Auctions
Service Infrastructure Marketing Companies Execution / Integration Processing / Order
Fulfillment
Providers
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 4
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

6. …with convergence as the theme today
■ E-Commerce models are converging as different marketplaces and disruptive
business models are springing up and growing fast
‒ amazon’s investment in living social
‒ Groupon rejected offer by Google
‒ GSI Commerce acquisition of Ruelala
■ E-Commerce is no longer only an alternative distribution channel, but a way for
brands and merchants to reach out to customers in a targeted manner
‒ Convergence of e-commerce, distribution and services with full-service/marketing
■ E-Commerce is converging with content and social to create strong audience
relationships and enable sophisticated audience segmentation and targeting
‒ Higher content engagement, greater content stickiness
‒ Higher consumer yield and consumer lifetime value
‒ Greater audience reach and segmentation through social mechanisms
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 5
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

7. Friend Centric Social Shopping is fast evolving as a the next big wave, especially backed by
the increasing socially connected user bases on social networking sites
• They offer deep discounts – up to 90% off – local products, services and events.
Group Buying / • The sites are able to offer massive discounts because they rely on group buying – offering local businesses a
Daily Deal slew of new customers who all purchase the deal in bulk
• E.g.:Groupon, Snapdeal, etc.
• People tend to trust peer reviews over corporate advertising. These types of shopping sites usually have a list
of products that are rated and reviewed by members of the site
Reviews and
• This is nothing new – think Amazon – but with the latest social shopping craze, these recommendation sites
Recommendations
have really stepped it up: many offer discounts for reviewing a product or points for recommending a
purchase to friends and family.
• Users log on to a site and either connect with their friends via Facebook or another social network, or invite
Real-Time Online their friends and family via email. They can then shop online at the same time, discussing products and
Shopping getting each other’s opinion on services.
• E.g.: Wet Seal, DoTogether
• Amid a relatively new form of commerce comes an even newer way to leverage social technology for
consumers: geo-location-based social shopping. Using a geo-location service like Foursquare or Facebook
Places, this type of social shopping happens in brick-and-mortar stores. Upon entering, you are usually given
Geo Location
some points or are directed to in-store deals from within the geo-location app on your smartphone. Users can
Based
also look up product information and interact with other shoppers, all via their smartphones.
• The points earned can be redeemed for gift certificates at that stores
• E.g.: Shopkick, myShopanion
• Users are rewarded based on their purchases and on visiting stores (virtual or brick & mortar) which can hence
Rewards Based
be redeemed for later buys.
Social Shopping
• These are similar to credit card programs and more the users spend the faster they can accumulate the credits
• Another major trend in the social shopping experience is combining consumerism with charity. There are
Charity-Based several websites and apps that allow users to somehow donate to charity when they shop. This donation is
Shopping usually either added on as a percentage of the sale, or, more commonly, costs the consumer nothing and
instead is given by a sponsor or corporate partner of the social shopping service
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 6
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

8. Hence, it is imperative for an E-Commerce company to develop the right set of capabilities to
capture the vast opportunities in the space, including but not limited to managing a users
experiences…
Moving online store visitors up the relationship ladder provides significant opportunities for growth:
 Loyal customers have almost double visit to carts
 Loyal customers have almost triple conversion rate
 Loyal customers have 10% higher cart value
Towards mature decisions
Loyal
Decision Quality
Purchase
Interested
Aware
Unaware
Maturity of
Decision
Free Fall Stage Guess Work Stage Impromptu Stage Imformed Stage
 Decisions are not  Decisions are based on  Some decisions are  Decisions are based on
consciously made opinions based on facts absolute facts
 Actions do not have  Actions have limited  Some Actions  Actions have
consistancy consistancy consistancy consistancy
 Daily happenings direct  Personal motivations  Facts direct some parts  Facts direct business
business direct business of business  Key factor for success is
 Key factor for success is  Key factor for success is  Key factor for success is accuracy
luck experience focus
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 7
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

9. …and effectively using the data collected is imperative to business success
Focus Area Objective Sample KPI’s Guidelines
 Use search engine optimization using traffic
Attract different types of  # of Visits per Month
Insights
visitors to site using alternative  Unique Visitor Count per Month
Visits to the  Utilize variety of acquisition Channels
channels and approaches,  Advertising Cost per Visitor
platform  Customize acquisition approach by prospect
providing differentiating value  % of Visitors Bookmarked Site
Segment
add  Page Rank of Homepage
 Provide additional reasons for visiting site
 Subscriber / Visitor Ratio
 Call to action for subscription on landing Page
Motivate subscription at first  Total Unique Subscriber Count
Subscription  Make subscription fast and Convenient
sight, providing additional value  Number of Subscriptions per Month
of visitors  Provide immediate value add for Subscription
add and good first impression  % of Subscribers with Full Data
 Promote competitive value Propositions
 Duration From Visit to Subscription
 # of Items Viewed per Visit
Make items of interest easily  Use effective and alternative categories for items
Creating  # of Items Viewed per Subscriber
accessible and pro-actively  Pro-actively recommend Items
interest in  % of Subscribers Viewing Items
communicate relevant  Provide ability to search with alternate means
items  # of Categories Viewed per Subs.
information on merchandise  Provide creative and instructive item views
 % of Items Not Viewed for Long Time
Avoid abandonment of added  % of Item Adds Abandoned  Provide one click check-Out
Creating items  % of Item Adds Removed  Make single item purchase faster
customer providing convenient transition  % of Cart Value Proceeded to Checkout  Cross-sell before check-out
loyalty to check-  Average Item Time in Cart  Make added items accessible even if abandoned
out and following up  Average Time to Checkout Site
 % of Check-outs Abandoned
 Provide convenience and speed in Checkout
Ensure completion of check-out  % of Potential Value Abandoned
Reduce Cart  Remind and follow up abandoned Cart
with convenient processes and  % of Abandoned Carts Purchased Later
Abandonment  Motivate abandoned cart purchase with benefits
cart follow-up  % of Abandonment to Competitor Site
 Make cart available in next visit if abandoned
 % of Subscribers with Abandoned Carts
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 8
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

10. …and thereby, increasing sales, time spent and valuation of the platform
Focus Area Objective Sample KPI’s Guidelines
 % of Payments Bounced
 Provide alternative payment modes
Streamline Process payment securely  % of Potential Value Bounced
 Ensure and promote payment Security
Payment and using alternative  % of Bounced Payments Abandoned
 Keep customers informed about payment Process
processes means  Payment Attempts per Purchase
 Follow-up and recover failed Payments
 Number of Fraudulent Cases Identified
 % of Subscribers with 2 Purchases
Identify and motivate non-  Regularly provide new content and Offerings
Promote re-  % of Subscribers with >2 Purchases
returning customers  Pro-actively take actions for dormant Visitors
visit and re-  % of Subscribers with >1 Visit
providing additional  Provide value add for repeat Business
purchase  % of High Value Loyalists
information and value add  Recommend for cross and up-sales
 % of Subscribers with Returned Goods
 Develop a rating scale for products
Identify and promote the  % of subscribers liking products
Promote  Enable users to share the products either on the
social aspects of the e-  % of subscribers recommending products
social aspects same platform or other platforms
commerce platform to  % subscribers commenting on products
on the  Motivate users to become prosumers by providing
increase sales and  % subscribers visiting other platforms from
platform additional value to them – brand ambassador
valuation ours for comparison
programs
Increase
interactivity –  Provide sellers with information on consumers for
Promote businesses as  % comments and replies on products
buyer – seller, targeted marketing
well as business for the  % sellers responding to user queries
seller-seller  Provide interaction session off-line to promote
members on the platform  # of comments on blogs and responses
and buyer- interactivity between buyers and sellers
buyer
Hence, E-Commerce performance management, through effective strategies and tactics across customer
lifecycle is imperative
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 9
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

11. The key success factors

12. The key success factors for a start-up ecommerce platform
`
Procurement
and deciding
on what to
sell
How’ and
User
‘when’ a
product is Interface
Design
delivered
Key Success
Factors
Product
Conversion
Recommend
ation Rate
Personalizati
on and
Product
Recommend
ation
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 11
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

13. 1
A viewpoint on ‘What to Sell’ – Deciding on product categories that is amenable to be
moved to the online space and thereby developing a niche for the e-commerce platform
decides its success
While targeting a large user-base is important, developing a niche product portfolio is essential to developing a brand image.
A new start-up can focus on one or a mix of the following to develop their own brand image in the market
Options What it means to the e-commerce platform
• Developing relations with large brands offering them scale and in turn seeking discounts that can be passed
on to the consumers
Luxury products at a
• Constantly negotiating with the product / brand owner for better deals against larger volumes
unbelievable discounts • Constantly finding new brands to be showcased on the platform
• Maintaining product delivery time agreed with the customer as well as the product originator/aggregator
• Sourcing a niche portfolio of products from other geography/ market such that it is cost effective for the
Niche products not available in users
the geography/market • Maintaining product delivery time agreed with the customer as well as the product originator/aggregator
• Dealing with regulatory nuances in the local market for the product
• This can entail developing a large distribution network for delivering day-to-day products to the customers at
Making day-to-day products
given times
available – convenience and
• Sourcing the products on time each time
price • Negotiating based on volumes, product portfolio and exclusivity in the region of presence
Linked to a larger cause • Sourcing products that are linked to a larger ‘cult’ or ‘cause’ or ‘aspiration’ in the domestic market
• All large retailers and aggregators can avail of this opportunity through tie-ups with regional logistics vendors
Large offline scale being to have an online presence as well as a means of value added service to the customers
exploited online • Products unavailable in the store can be added to wish-lists and sent to the customers to offer additional
value and maintain loyalty
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 12
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

14. 2
A viewpoint on User Interface Design – entrepreneurs often get influenced by the
‚complexities‛ of their business and begin designing the experience for exceptions that
only apply to 5-10% of visitor…
While user experience is critical to success on all types of websites, it is especially critical for ecommerce websites given that
visitors purchase decisions are linked to the aesthetics to the website. A poor user experience will result in loss in sales
Below are some examples of what I consider are aesthetically designed user interfaces
Other examples
of well designed
e-commerce
websites include
1. DesignCode
2. Shoe Guru
3. J.Crew
4. Nestliving
Abercrombie & Fitch Crate & Barrel TOOBYDOO
5. Naked &
Angry
6. Hard Graft
7. Hard Graft
8. Crate and
Barrel’s
9. Armani
Exchange
10. ….
Apple Ann Taylor Russell & MacKenna
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 13
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

15. 2 …in other words, a shop should give an average user the feel ‘special’, ‘pampered’ and
‘motivated to buy’, alongside subconsciously inducing ‘trust’
Identified below are some of the specific factors that are generally present on well-designed e-commerce websites…
Design Aspect Why its important?
Navigation • E-commerce sites often face considerable challenges with navigation because of the number of products that are presented on the
‚Design for the site
dumbest and • Large sites, such as those of department stores, have to be especially careful with navigation, because finding what the user
learned will wants will usually become increasingly difficult with more options
appreciate!‛ • One factor to consider is how the average visitor will attempt to find a particular product
• Sufficient user testing is extremely helpful for identifying potential navigational issues
Product should • A design that is extravagant for no legitimate reason will do more harm than good, it will draw attention to the design of the site
overpower Design and away from the products
• The focus of design should be on the product rather than on making the website a ‚piece of art‛
Focus on Check- • If the checkout process involves too many steps or is confusing, shoppers will wind up abandoning their cart with items left
out unpurchased
• Ideally, check-out should involve a minimal amount of steps and should be as easy as possible for shoppers
• Processing time is another aspect that should be taken care
Design to match • When designing an e-commerce site it’s important to consider the style of the products that will be available on the site
the product • If the design style does not match well with the particular products that are for sale, there will be a disconnect that exists and
visitors may have a hard time relating to products and determining if it is right for them.
Showcase what is • Showcase the popular products rather than forcing products on to the shoppers
relevant • A number of sites are using a large area on the homepage that they can use to promote current sales, new product lines, or
whatever will generate interest
• On theses sites, this area will often be updated frequently, or it may include some type of slideshow.
Promote related • Promoting the right products that buyers are likely to be interested in is key regardless of the approach that is used
products
Photos – who • Selling online is different than selling in a physical store because the buyer cannot touch the product or see it in person before
wants to see making a buying decision
unclear photos? • Providing quality photos that accurately portray the product can help to overcome this challenge and can make the buying decision
easier on visitors
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 14
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

16. 3
A viewpoint on Increasing Conversion Rate – traffic is not the best metric to judge an e-
commerce platform, instead, conversion rate is the metric new entrepreneurs should
worry about
In the virtual world - online conversions can come in many forms. If you’re selling a product online conversion happens when
a visitor makes a purchase and becomes an active customer, and if you’re offering a service your conversion might be getting
visitors to phone-in
 Unless the USPs are copied across the site, a they might never be seen
so make sure your USPs are visible across the site
1 2 3
Agility to
Flaunt your Be open to  Constantly look at additional communication channels such as online
price
USP criticism chat, Voice Over IP providers such as Skype and online feedback forms
variations
to ensure you cater for enough visitors as open communication can help
increase your credibility
 80% of customers research before committing to buy – hence while
comparing and adjusting your prices, look at the overall price to the
customer also taking into account any shipping fees and taxes
4 5 6
Mirror Your Widen Widen  Employ multi-channel coherent marketing to promote your products and
Offers on all Product Portfolio of services
channels Portfolio offers
 Always be on the lookout for new opportunities and closely follow
customer trends and taste – Analyze, Analyze and Analyze
 To become an appealing proposition, consider catering to as many
customer groups as possible by diversifying your product offers
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 15
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

17. 4 A viewpoint on Personalization and Product Recommendation – Move away from a
product centric model to a customer centric model
Converse with your customer… …to understand their needs… …their aspirations…
…but don’t force your thoughts onto
…and trust on the backend numbers… …to reward them…
your customers, let them choose what
they want
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 16
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

18. 4 A viewpoint on Product Recommendation – give the users the power to identify,
recommend and vote
‚aggregate wisdom‛ Capturing and utilizing the wisdom of the masses to pro-actively cater
to their needs.
Design Aspect Why its important?
Top Rated • Visitors are recommended products based upon the ratings received from other customers.
Products • The products that receive highest aggregated ratings in any given category or sub category start appearing as recommendations for
visitors when they visit those categories or subcategories
• Some e-tailers have actually started adding more predictive attributes in the ratings, to help other individuals make better decisions.
Collaborative • A highly advanced algorithm does statistical match across different product combinations – and the recommendations are made
filtering purely based upon the affinities across various products
• The good thing about collaborative filtering is that it minimizes the level of manual involvement from category managers and
automatically finds patterns of product combinations based upon aggregate purchase behavior
• This is what powers ‚People who purchased this product also purchased….‛ type of recommendations at Amazon
• Although these type of recommendations require a relatively high implementation cost, they minimize the need for setting up
manual business rules and can run on a ‚Auto pilot‛ mode to some extent
• Though the biggest downside with collaborative filtering recommendations is that they tend to produce ‚Averaging effects‛ which
causes the overall most popular items to be recommended more often which means that they will be consumed and rated more
frequently as a result
Expert’s voice • Although it is good to see statistically relevant recommendations based upon a democratic way of collecting insights, humans by
Humans need a nature would take recommendations more seriously if they are coming either from experts in the category or from other individuals
human touch… who have similar tastes
• For example, a serious audiophile visiting bestbuy.com may not be interested in the best selling home theater systems on the site
• The true power of online recommendations is where customers are able to get advice and recommendations from others like
them – who they can trust more than the average crowd
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 17
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

19. 5 A viewpoint on Securing the Payment Channel – Assurance and trust are key to repeat
purchases
All online retailers are concerned about minimizing charge-backs and payment fraud. This is one of those costs that can be
minimized if appropriate and proactive steps are taken
An e-commerce platform faces the following  Unless the USPs are copied across the site, a they might never be seen
security threats… so make sure your USPs are visible across the site
 Constantly look at additional communication channels such as online
chat, Voice Over IP providers such as Skype and online feedback forms
to ensure you cater for enough visitors as open communication can help
1 2 3 increase your credibility
Securing Securing
Securing
connections the
your own
with your payment  80% of customers research before committing to buy – hence while
servers
users channel comparing and adjusting your prices, look at the overall price to the
customer also taking into account any shipping fees and taxes
 Employ multi-channel coherent marketing to promote your products and
services
 Always be on the lookout for new opportunities and closely follow
customer trends and taste – Analyze, Analyze and Analyze
 To become an appealing proposition, consider catering to as many
customer groups as possible by diversifying your product offers
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 18
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

20. 6 A viewpoint on Delivery – ‘How’ and ‘when’ a product is delivered can decide the fate of
a platform
A developed and integrated logistics set-up is key to assuring and ensuring repeat business. Differentiation in terms of
product packaging and delivery provide the users the assurance
Challenges ahead an e-commerce start-up…
 Giving the user the option to set delivery date and time can be make
customers feel ‘special’
1 2 3
 How a package is received at the door-step and how the customer is
Options on greeted has a long term impact on sales
On-time
informed Packaging
delivery
delivery
 ‚People don’t like to wait‛, hence delivering the product on-time in the
best condition possible will influence loyalty as well as increase
customer base
 Customer is king and why should the customer pay for a damaged
product? INSURE the product that is sent to the customer and tell
4 5 6 them that you are doing them a favor,
 Who wants a product that doesn’t look and feel like, what it seemed on
Insurance Return Manage the platform? Give the users the option to return the product in case
on products Policy Costs they don’t like it. This way a consumer’s confidence on the platform
increases
 All the above cost money, and hence it becomes integral to identify the
best suited solution to the problem at hand
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I have
not undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected from 19
resources on the published public domain and meetings with market participants. Wherever sufficient information was not avai lable in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request any
user reproducing the information to contact me before using the same,

21. Anirudh Chari
Working as a management consultant, for over 4 years I have had the
opportunity to work on several projects for Indian and International clients in the
areas of Strategy Formulation, Validation & Implementation, Business Planning,
Entry & Expansion Strategy, Feasibility studies & Location Advisory and Market
Assessment. This entailed, advising several companies across sectors, such as,
Telecom, Media & Entertainment, Mobile Value Added Services, Information
Technology, Infrastructure & Financial Services, Real Estate, Manufacturing, etc.
My technical background & my management degree from IE Business School
have not only provided me leverage while assisting my clients during project
delivery, but also while pitching for new assignments and cross selling the
anirudh.chari@gmail.com services of the firm.
anirudh_chari@yahoo.com
+91 91360 11000
I have also been involved in a few start-ups and entrepreneurial ventures over
+91 99102 61161 the past years that failed. The most recent venture was an online commerce
platform with a unique social value proposition. The other ventures have been in
a.chari
the power sector and second-hand auto retailing.