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eCommerce
e-commerce, is the buying and selling of product or service over electronic systems such as the Internet and other computer networks. Amazon: Started with books mainly Started marketplace model. More than 40% revenue from this Powerful search & reviews and ratings Dell: Sold assembled computers online More than 50% revenue comes from website eBay: Online auction site Seller ratings
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eCommerce
Power of eCommerce:
Unlimited assortment Search Reviews and ratings Convenience of ordering from home / office Usually, cheaper prices Extremely easy to compare prices online
Concerns related to transacting online Building entire supply chain Monitoring quality Compete with several players at once Buying a product without physically touching it
eCommerce in INDIA
eCommerce in INDIA
Key factors influencing eCommerce growth in India:
Extremely low cost of PCs Ever growing use of internet Rising middle class with high disposable income Limited reach of certain brands to people in tier 2 cities Cash on Delivery Change in mindset: Irctc.co.in Matrimony sites Job sites Online travel agents (makemytrip.com) .
eCommerce in INDIA
Growth of eCommerce in India.
(Internet and mobile association of India)
eCommerce in INDIA
%reach (travel)
eCommerce in INDIA
%reach (retail)
eCommerce in INDIA
%reach (retail across categories)
eCommerce in INDIA
In US, 400 billion coupons were sold in 2007, in India this was 0.
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Buy a scratch card worth 99 & get coupons on mobile. Internet penetration was quite low compared to mobile (2008) In free trial, 1 lac customers signed up, but barely a few paid.
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Distributed through CCD Limited customer touch points Also offered to corporates, to pass on to employees (B2B2C) Corporate & Snapdeal co-branding
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A merchant partner suggested this to CEO Goal was to achieve 100 transactions / day after 3 months. It happened in 3 weeks Acquired grabbon in June 2010
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By offering them products across 17 categories Products sold across 12,000 pincodes in India
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Brand stores Many brands do not have ecommerce site Or, dont have the expertise to handle backend 3000 brand stores already in, expected to reach 10,000 Allowing vendors to upload and manage products
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Doubled the revenues within one week Still it seems there is a lot of untapped potential
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Culture at Snapdeal.com
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Culture at Snapdeal.com
Feature releases will usually happen after 00:00 hrs since traffic is lesser then
At 5:00 AM, test manager has discovered some issue
Culture at Snapdeal.com
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Culture at Snapdeal.com
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Mobile
Internet
124 million internet users (all devices) 10% penetration 75% of online audience is between 15-34 years of age Retail has grown by 43% online and reaches 60% penetration among online users
Others
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eCommerce revenues expected to increase from USD 1.6 billion in 2012 to USD 8.8 billion in 2016 52 eCommerce companies raised USD 700 million from VCs in last 3 years Currently more than 80% revenue is from travel, but abroad this is around 35%. Online retail is expected to grow
VCs are bullish on eCommerce growth: Invested US$ 177 million in 2011
Online grocery shopping is starting to appeal to upper and middle class consumer eCommerce is expanding into non metropolitan India More than 50% of sales of Myntra.com are from outside top 10 cities in India Social media and mobile are helping accelerate eCommerce adoption India is Facebooks third largest audience in the world
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Payment gateways are terribly inconsistent (35% failures) Upto 70% transactions of some eCommerce companies are through COD
23% online shoppers prefer COD. Mainly first time shoppers In Myntra, 60% transactions are through COD Return rate for COD is upto 25% in some categories
Card on Delivery in also provided by several players Logistics remain an issue Flipkart chose in house delivery solution. A model used in China and Russia as well. Several payment methods are a must to keep your business going, Credit Card, Debit Card, Net Banking, Pay Pal, COD
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References:
State of Ecommerce in India - Sept 2012 (A research report by comScore for ASSOCHAM INDIA). Trends in Indias eCommerce Market By Forrestor research for ASSOCHAM INDIA.
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References:
Mobile internet in India - IMRB
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