4. 1. AMAZON SUPPLY
Launched in 2012
It offers industrial and scientific components and
Maintenance, Repair and Operations (MRO) supplies.
It uses the same order fulfillment and distribution system as
Amazon.com
Provides a modified user interface and dedicated customer
service facilities, along with corporate lines of credit.
5.
6. 2.SELL ON AMAZON
Lists product on Amazon’s
marketplace.
Maintains own inventory, fulfills order and
provides customer service.
Has access to a suite of integrated services that
can help them easily grow their business online.
8. 3. FULFILLMENT BY AMAZON
Seller sends their products to an
Amazon fulfillment centre
They store seller’s inventory
Pick, pack and ship their orders
across India and provide
customer service.
12. CRITERION TRADITIO
NAL WAY
PROBLEMS
FACED BY THE
TRADITIONAL
WAY
E-COMMERCE WAY
1 Availability of
books and
other
reading/study
material
Students buy
the books
from various
shops.
If the shops are not
accessible to a
student or if he
cannot afford it, he
has to struggle.
Waste of a lot of
paper.
All NCERT books are
downloadable and
available on the website
for free, thus ensuring
that every student has
access to the same
reading material.
COMPARITIVE ANALYSIS OF THE TRADITIONAL
WAY V/S THE E COMMERCE WAY
13. CRITERION TRADITION
AL WAY
PROBLEMS
FACED BY THE
TRADITIONAL
WAY
E-COMMERCE WAY
2 Employment
news
Search the
newspapers
for possible
employment.
Very time taking.
People seldom
find the right jobs
for them in time.
Current vacancy announced by—
UPSC, SSC, Indian Army, Navy,
Air Force, PSU & employment
Exchanges.
Also available online :
List of state employment exchanges
for online application
Link to Directorate of
Employment & Training
3 Applying for
scholarship
Information
is sometimes
put in the
newspapers.
Mouth
publicity.
News of
scholarships
seldom reaches
people who
actually need
them.
Available online :
Scholarships-related information
(merit & category based)
Information on various study
programs
14. CRITERION TRADITIONAL
WAY
PROBLEMS FACED
BY THE
TRADITIONAL WAY
E-COMMERCE WAY
4 Examination
result
Results would be
printed in
newspapers or sent
by mail only
Loss of paper.
Long waiting times.
Very difficult and time
taking to search for an
individual’s result.
Available online :
Exam results of class X, XII and
all competitive exams (i.e.,
Engineering, Medical, MBA, CA,
etc.)
Results of CBSE, ICSE and state
board
5 Student loan
for higher
education
Students have to
visit the offices
multiple times for
applying for loans.
Even after all the running
around, they are never
sure if they will receive
the loans in time.
Many students give up the
idea of higher studies
because of the high fees in
the absence of a loan.
Model student loan scheme of
Indian Banks' Association and
education loan schemes of various
Banks available online.
15. LIMITATIONS AND RECOMMENDATIONS
Currently there is very less awareness amongst the
common people who actually need these services.
Some awareness camps need to organize educating
people about the usability of these services.
These services can be availed only by people having a
computer and working internet connection, which most
people of the country can only dream of. India needs to
become more pro-technology in order to develop as a
nation.
16. Upload videos, science experiments to make the lessons
interesting
Start a question answer forum
Appoint teachers to be available on mail, to address the
students’ doubts
Programmes of home tuition and academic certificates can
be started so that students do not have to leave the house or
pay any extra money except the exam fees.
18. SECTION - 1
Basic Understanding and Comparison
between Traditional Stores and Online
Stores through a case study
19. BACKGROUND
1. The traditional
way: Go to a Puma
store and buy it
2. The e-commerce
ways: Go to a B2C
website and place
an order
Consider a person ‘X’ who wants to buy sports shoes
from the brand Puma.
20. KEY PURCHASE CONSIDERATIONS
CRITERION TRADITIONAL E COMMERCE
PRICE
Costs higher
(Includes the cost of rent,
employees, electricity etc.)
Costs much lower than maintaining
a physical store at an equally
popular location
CONVINIENCE
It requires much more time and
money to drive down to a store
and buy something
It just requires a working internet
connection and a basic knowledge
of how to use a website
VARIETY
Physical stores can only store a
limited number of materials,
according to the available store
space
Online stores have no restrictions on
the number of styles it can include,
usually going up to thousands
21. KEY PURCHASE CONSIDERATIONS
CRITERION TRADITIONAL E COMMERCE
TRUST
Most people have no issues trusting a store
which they can walk into, buying an item
they can physically touch, and dealing with
people they can interact with, face to face.
Since there have been cases of credit
card frauds etc., most people still find it
difficult to place their trust in an e tail
store.
FITTING
Ability to touch and check the items, to
make sure they are suitable, and even try
them on.
It’s only possible to check the fitting of
the item once it’s been delivered.
TIME
The buyer receives the product as soon as
he selects it and pays for it
E commerce websites usually take at
least a day to deliver the products,
depending on your location.
24. KEY PURCHASE CONSIDERATIONS
CRITERION PUMA Store Online Amazon.in
PRICE
Comparatively provides fewer
discounts.
Provides more percentage of
discounts.
CONVINIENCE
Better if a peculiar brand is an
attraction for the buyer.
More convenient if buyer is
looking for a particular article
and not a brand specifically.
Quite similar to the “mall
culture” shopping, just online.
VARIETY
Provides stock versatility of an
individual brand. Lacks variety
in design and prices.
Provides ample choices to the
customer on one website with
versatile price and quality
ranges.
25. KEY PURCHASE CONSIDERATION
CRITERION PUMA Store Online Amazon.in
TRUST Same in both cases. Same in both cases.
FITTING Same in both cases. Same in both cases.
TIME
A brand specific costumer
would be saving his time since
he/she knows what design,
quality and price he/she is
looking for exclusively.
Saves time drastically if the
customer is not brand specific
and is open for different
designs and tastes.
26. SECTION - 3
MARKET SURVEY
Conclusions of a market survey conducted
for people of age group : 13 to 50 years
27. 56%
35%
9%
Age group : 13-27 years
Not comfortable with online
transactions
Not comfortable with online
transactions above INR 1000
Not comfortable with online
transactions above INR 10000
88%
9%
3%
Age group : 28-50 years
Not comfortable with online
transactions
Not comfortable with online
transactions above INR 1000
Not comfortable with online
transactions above INR 10000
PAYMENT METHODS:
28. Cash on delivery
• It is observed that 89% of the customers are comfortable with
the Cash on Delivery option, the reasons being:
1. Lack of Payment Alternatives
2. Product Condition and Satisfaction
3. Scam Scare!
4. Indian Nature
29. PRODUCT CHOICES:
We gave the customers the following list of
products and asked them to prioritize the products
in the order in which they are most to comfortable
in buying the product online.
•Books
•Perfumes
•Mobiles
•Electronic items
•Music
• shoes
•Bottom wear
•Intimate wear
•Handbags
•Accessories
•Movies
•Beauty products
•Home décor
•Sunglasses
30. PRODUCT CHOICES:
Depending upon the priorities that the customers gave,
we divided the product list into 3 categories and got the
following results:
• Books, electronic items, beauty
products, music, movies
Category A
(Most Comfortable)
• Mobiles, accessories, sunglasses,
handbags, home decor
Category B
(Comfort is
subjected to factors)
• Intimate wear, Bottom wear,
shoes, perfumes
Category C
(Least Comfortable)
31. PRODUCT CHOICES:
Reason
for being
most
comforta
ble in
ordering
Category
A items:
No need
to hand
feel
before
buying.
Reasons
for being
comforta
ble in
ordering
Category
B items:
Need to
hand
feel
before
buying.
Reasons
for being
least
comforta
ble in
ordering
Category
C items:
Need to
hand
feel and
fitting
before
buying.
Cannot
buy the
products
in this
category
if not
used
earlier.
33. TRADITIONAL STORES
MBO
S/he shouldn’t waste too much time
getting confused between products of
different brands.
EBO
S/he should shop at an outlet which
has new arrivals to increase the kind
of variety the outlet provides.
Shop when the discount rates are the
highest.
1. For the Customer –
34. TRADITIONAL STORES
MBO
Categorize properly and
keep low profit margins
Incorporate concept of
warehouses .
EBO
Should not let collection
get stagnant and should
change it every season.
Keep low profit margins.
2. For the Retailers –
35. ONLINE STORES
Puma Online Store
Refer to the size
measurement manual before
ordering the product
Refer to a multi-brand online
store to compare prices of
Puma.
Amazon.in
Look at the different options
available to them.
1. For the Customer –
36. ONLINE STORES
Puma Online Store
Improve their delivery
service.
Provide higher discount
percentage.
Introduce their mobile
application.
Amazon.in
Provide faster delivery to
the consumer.
Provide Text message
based product ordering.
2. For the E-tailer –
38. 1995
• Founded
• First book
sold from
Jeff Bezos’
garage
• First e-
commerce
website
ever
2006
• Serves 7
countries
• 21
fulfilment
centres
• 9 million
square
feet of
warehouse
space.
2014
• Biggest
online
bookstore
• Most
innovative
B2C portal
in the
world
• Owns 25
successful
websites
JOURNEY
39.
40. INTERESTING FACTS
Name
• Originally to be named ‘cadabra’ (From Abracadabra)
• Later named after the river to suggest scale and because
back then website listings were often alphabetical
Logo
• Designed to depict a smile that goes from A to Z
• Signifies that the company is willing to deliver everything
to everyone, anywhere in the world
Customers
• Serves 137 million customers a week
• Same as the population of China
Selling on Amazon provides businesses of all sizes a compelling sales channel with a nationwide reach.
Has access to Amazon’s proven seller coaching tools and a suite of integrated services that can help them easily grow their business online.
Currently there is very less awareness amongst the common people who actually need these services. Some awareness camps need to organize educating people about the usability of these services.
OLDER PEOPLE ARE MORE USED TO TRADITIONAL METHODS OF SHOPPING
1. Lack of Payment Alternatives
Most of India’s population either does not have a Debit or Credit card and the ones that do, do not such it much for online transactions. Cards are basically used to withdraw cash from ATMs but not for making payments online. Therefore COD is one means where a seller can reach out to buyers even if they don’t have means to make an online payment.
2. Product Condition and Satisfaction
There have been so many cases where you order something but you get something else. IN such cases, it just makes the process of online shopping very painful. If you have paid online, you’ll have to initiate refunds which again takes some time. Moreover, we Indians prefer to physically look, feel and touch something that we buy. In such cases, COD comes as a good option for buyers to actually check the product before paying for it.
In fact, this is what players like Myntra, Jabong, etc. are trying to sell through their new TVCs.
3. Competition
With so many ecommerce companies coming up, COD is a great way to have an upper hand over competition. Essentially it’s the difference between life and death for many of the small businesses.
4. Scam Scare!
The trust for online shopping and ecommerce has been increasing in India but many still fear using new ecommerce companies and fear that they’ll be scammed.
5. Indian Nature
Like mentioned, Indians love to have the ability to see, feel and touch things that they are going to buy. People have similar expectations when they buy online as well. If it wasn’t for COD, people would still walk in to a store so as to meet this criteria.
[divider]So, we know COD is very beneficial for customers and fairly enough for sellers as well. But it does come at a price to the sellers too.
LOW RISK
MEDIUM RISK
HIGH RISK
D customers dirctly intract vd d wServers i.e d front end of d website
D wsite transfers info to data warehouse
Campaign generators generate ad campaigns esp. For products that are not selling easily. As part of d campaign , they email d custs
Keep personalizing d website acc to customer needs