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Flipkart Big 10 Sale: E-Commerce Titan Expects Five-Fold Increase in Transactions

by Loknath Das
written by Loknath Das

Flipkart Big 10 Sale: E-Commerce Titan Expects Five-Fold Increase in Transactions

During the Flipkart Big 10 Sale, the e-commerce major expects to see a five-fold growth in transactions on its platform during. The upcoming Flipkart sale, which is different from the flagship The Big Billion Days sale, will be held between May 14 and 18, and marks completion of 10 years of Flipkart’s operations.

Flipkart Director Smrithi Ravichandran told PTI, “We have been preparing for months for this sale. It is a big event for us. During the sale, we expect about 5X of the usual number of transactions we see on our platform on any given day.”

She added that the company has also expanded its back-end operations for logistics and last-mile delivery to ensure smooth operations during the sale days. Flipkart doesn’t disclose number of transactions on its platform.

The Flipkart sale will see offers on products across categories like fashion, smartphones, electronics, smart televisions and home decor.

“We have expanded warehousing capacity. We have also added mom and pop stores as partners to ensure smooth last mile delivery,” she said.
Interestingly, Flipkart’s sale comes just after US-based rival Amazon’s sale, something Ravichandran said was just coincidence. The Amazon sale started on May 11 and will last till May 14.

Both companies are aggressively investing into the Indian market, expanding their infrastructure and platform to bring more sellers and shoppers on board.

In April, Flipkart received a funding of $1.4 billion from eBay, Microsoft, and Tencent, while Amazon has also pledged investments worth $5 billion into the Indian market.

According to a Google-AT Kearney report, the number of online shoppers in India is estimated to grow 3.5 times to touch 175 million by 2020, from 50 million in 2015.

Also, e-tailing is expected to drive 25 percent of the total organised retail sales of $240 billion in India by 2020, as per the report.

 

 
[“source-ndtv”]

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Internet

Government Has Received Over 1,300 Complaints Against E-Commerce Firms

by Rajdeep
written by Rajdeep

Government Has Received Over 1,300 Complaints Against E-Commerce Firms

Government has received over 1,300 complaints against direct selling and e-commerce companies till December 2016, Parliament was informed on Tuesday.

It also made clear that there is no proposal to bring in a separate law to regulate e-commerce platforms.

Placing the details of complaints received by its National Consumer Helpline against direct selling and e-commerce companies in the Lok Sabha, Minister of State for Consumer Affairs C R Chaudhary said: “The received complaints were dealt with as per consumer grievance redressal procedure.”

A consumer can file a complaint relating to e-commerce transactions in the appropriate consumer forum established under the provisions of the Consumer Protection Act, he said in his written reply to the Lower House.

As per the data, 1,386 complaints have been received up to December 2016.

A maximum of 449 complaints were against bookmyoffer.com, followed by ebay (135), snapdeal.com (120), amazon.in (114), flipkart.com (92), whaaky.com (79), shopclues.com (47), and paytm.com (46).

Around 15 complaints were received against Homeshop 18, followed by jabong.com (15), naaptol.com (13), Shop CJ Network India (10), askmebazar.com (6) and myntra.com (2) during this period, the data showed.

The minister also said there is no proposal for setting up of National Consumer Safety Authority.

However, the Consumer Protection Bill, 2015, already introduced in Parliament, seeks to provide setting up of a central consumer protection authority to look into, inter alia, unfair trade practices, he added.

[Source:- gadgets.ndtv]

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Online Marketing

E-Commerce Food Biz Operators Must Obtain Licence: FSSAI

by Rajdeep
written by Rajdeep

E-Commerce Food Biz Operators Must Obtain Licence: FSSAI

E-commerce food companies will have to obtain licence for their entire supply chain besides ensuring that delivery of products is done by ‘trained personnel’ in order to maintain safety under the new guidelines issued by food regulator FSSAI on Friday.

With an aim to regulate e-commerce food business, the Food Safety and Standards Authority of India (FSSAI) defined e-commerce Food Business Operators (FBOs) as those carrying out business through online medium.

“E-commerce FBOs shall be covered under schedule-I of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulation, 2011. These e-commerce FBOs have to obtain license from the Central Licensing Authority for the entire supply chain,” the FSSAI said in its guidelines for ‘Operations of e-commerce Food Business Operators’.

As per the new norms, the supply chain will include the companies Head Office or registered office, manufacturers, transportation, storage and distribution.

The FSSAI’s guidelines come in the wake of series of consumer complaints against e-commerce companies offering poor quality products and services.

With a view to ensure food safety, the FSSAI further said: “It shall be ensured by the e-commerce FBOs that the last mile delivery is undertaken by trained delivery personnel and the safety of food product is not compromised at the time of delivery.”

However, FSSAI said that e-commerce entities providing listing/directory services to the sellers/brand owners, restaurants, vendors, importers or manufacturers of the food product may not be required to obtain license/registration under the Act.

Although, these e-commerce entities should ensure that no misleading information/false claims pertaining to the sellers/brand owners, vendors, importers or manufacturers or misleading images of food products are made available or shown on their platform.

The e-commerce entities should clearly specify on their platform that liability of any violation of the FSS Act and applicable rules and regulation would be with sellers/brand owners, vendors, importers or manufacturers of the food products.

On a supply chain compliance, the FSSAI said that all e-commerce FBOs will be required to sign an agreement with the sellers/brand owners/manufacturers “averring that the said sellers/brand owners/manufacturers are compliant with the FSSA Act and rules and regulations.”

On handling of consumer complaints, FSSAI said that the e-commerce FBOs would have to immediately notify the issue to the sellers/brand owners/importers/manufactures who would be liable for expeditious resolution.

In case of recall, FSSAI said that e-commerce FBOs/ entities will have to immediately delist any food products listed on their platform, which are not in compliance with the Act.

[Source:- gadgets.ndtv]

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Internet

India to Overtake US as World’s Largest E-Commerce Market in Less Than 2 Decades: Study

by Rajdeep
written by Rajdeep

India to Overtake US as World's Largest E-Commerce Market in Less Than 2 Decades: Study

The Indian e-commerce market is set to overtake the US and become the second largest in the world in less than two decades, going head-to-head with China for the numero uno position, according to a report by global payments firm Worldpay.

The report said the e-commerce market is expected to grow exponentially with emerging markets leading the charge – particularly India, where the segment is predicted to mature by 28 percent per year from 2016 to 2020.

“According to Worldpay projections, India will be the world’s second largest e-commerce market by 2034, thanks to massive surges in Internet penetration, a swelling millennial population and the rising uptake of mobile phones,” it added.

Ron Kalifa, Vice Chairman at Worldpay, said the research found a number of trends that point to India’s potential for “astounding e-commerce growth in the next two decades”.

“The market is predicted to reach $63.7 billion (roughly Rs. 4,33,322 crores) by 2020 and overtake the US by 2034. This enormous development will in turn open up enormous opportunities for companies who sell online,” he said.

However, it is essential that merchants stake their claim today in order to win over India’s commerce-hungry population and capitalise on future e-commerce growth, he added.
“Leading companies such as Amazon and Alibaba are already making their move, indicating a clear incentive for merchants to gain their foothold within India’s budding eCommerce market as soon as possible,” Kalifa said.

Worldpay analysed 30 markets around the world, including India, China, Hong Kong, South Korea, Singapore and Australia in Asia-Pacific. The Global Payments Report is compiled using a combination of Worldpay’s data and insights as well as external findings and secondary data.

The report said much of India’s eCommerce growth will be the result of rising Internet penetration as roughly 350 million Indian citizens are already online and that number is expected to nearly double to 600 million by 2020.

Another major factor driving e-commerce growth in India is the huge uptake of mobile phones. India is the world’s biggest consumer of mobile phones with the price of data plans running two times cheaper than in China and three times cheaper than in the United States, it said.

As the country’s middle class switches over to 3G and 4G networks, both offered at affordable prices, India is expected to see more mobile shopping, especially amongst millennials.

“Young people shopping via smartphones are already responsible for sharp increases in India’s online spend; and with 70 per cent of the population below the age of 35, millennials are expected to continue driving rapid digitisation even further,” it said.

Transfers and cash currently dominate the online payment landscape, with 27 percent of the market preferring bank transfers, followed by cash on delivery at 22 percent.

However, as the country’s payment infrastructure develops, new methods are expected to rise in popularity. E-wallets, the most popular payment method worldwide, are slated for rapid growth in India.

Although just 8 percent of India’s online shoppers use an e-wallet today, the country’s mobile wallet market is projected to reach $5.1 billion in 2020, according to Worldpay.

“As more Indians get access to the Internet and bank accounts, they will in turn develop confidence in buying online – at which point we can expect to see a decline in cash on delivery, accompanied by a rise in new, alternative payment methods such as e-wallets,” Kalifa said.

[Source:- gadgets.ndtv]

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Internet

India’s E-Commerce Tripled in 5 Years Despite Low Internet Penetration: Report

by Rajdeep
written by Rajdeep

India's E-Commerce Tripled in 5 Years Despite Low Internet Penetration: Report

Although India’s use of the Internet is lower than many poorer countries, the country’s e-commerce sector tripled – or grew by 209 percent over the last five years – from $4.4 billion (Rs. 20,020 crores) in 2010 to $13.6 billion (Rs. 83,096 crores) in 2014.

This data was contained in a reply given to the Lok Sabha in March 2016.

India’s e-commerce market is likely to reach $38 billion (Rs. 252,700 crores) in 2016, according to an Associated Chambers of Commerce & Industry of India (Assocham) report released in January 2016.

The online retail sector in India is expected to be a $1 trillion (Rs. 6,60,000 crores) market by 2020, according to a recent report by the Confederation of Indian Industry (CII) and Deloitte, a consultancy. The study indicates that more e-commerce will trigger big innovations in India.

The Goods and Services Tax, once implemented, is expected to boost the growth of e-commerce by simplifying taxation and logistics, said the CII-Deloitte report.

Internet penetration across the country is rising with as many as 354 million users reported as of September 2015. Online shoppers in India have increased from 20 million in 2013 to 39 million in 2015, an increase of 95 percent over three years.

India’s e-commerce market rises despite low net use

But India’s Internet penetration – the percentage of Indians who use the net – is low, 19 percent in 2014, as IndiaSpend reported earlier. Compare this with Australia (90 percent), the US (87 percent), Japan (86 percent), Brazil (53 percent) and China (46 percent).

In 2014, only 18 of 100 Indians used the Internet, against 49.3 for China and 48.3 for Vietnam. Even poorer countries, such as Ghana, had greater Internet penetration – 18.9 users per 100 people, according to a Mint report. Similarly, mobile subscriptions in India were 74 per 100 people in 2014, lower than Bangladesh (80), China (92), Indonesia (129) and Vietnam (147).

Mobile Internet spend has increased from 54 percent to 64 percent from 2014 to 2015, attributed to high-speed 3G and 4G Internet connectivity at some of the world’s lowest prices, fuelling e-commerce growth.

Despite the rise in broadband and mobile internet users, speed remains a major constraint. The average broadband speed in India is 2 mega bits per second (Mbps), ranking 115 globally, IndiaSpend has reported. Similarly, the average mobile Internet speed is 1.7Mbps, ranking below Thailand, China, Hong Kong and Singapore.

In March this year, the government allowed 100 percent foreign direct investment in online retail marketplaces-electronic platforms that connect buyers and sellers.

India’s e-commerce giants battle a survival of the fittest

As competition grows, and international competitors step in, domestic online retailers will struggle, experts predict.

US retailer Amazon became the second-largest online marketplace by shipments in India last month, after domestic rival Flipkart, pushing former number two, Snapdeal, to third place.

Flipkart’s growth has virtually stalled since the middle of last year and the leadership team hasn’t figured out a way to kick-start sales, according to India Value Fund Advisors partner Haresh Chawla.

“Its gross merchandise volume (GMV) – sales or revenue in online retailing – sold over a given period of time has not grown substantially, which had grown by over 200 percent per annum for the past three years,” Chawla added.

Similarly in the taxi business, multinational Uber is in race with India’s Ola, the current domestic-market leader. Last month, Uber claimed it would overtake Ola by market share within 30 days.

Jabong – an online fashion portal – reported a drop in sales and cut losses in 2015 and is now struggling to find a buyer.

“Consumer Internet startups find it difficult to navigate slowdowns,” said Chawla. “Traditional companies usually recover from these cycles. But technology-led companies simply go bust. They have very little consumer loyalty to start with. Most bribe consumers to grow rapidly and cutback (on profits), causing them to implode.”

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Internet

India’s E-Commerce Sector to See $120 Billion Revenue by 2020: Study

by Rajdeep
written by Rajdeep

India's E-Commerce Sector to See $120 Billion Revenue by 2020: Study

The country’s e-commerce sector is expected to see revenues of $120 billion by 2020 from $30 billion at the end of last fiscal, a report said.

The increase would be mainly on the back of young demographic profile, rising Internet penetration and relatively better economic performance, the Assocham-Forrester study said.

India’s e-commerce sector saw revenues of $30 billion (roughly Rs. 1,99,450 crores) at the end of the financial year 2015-16. It is expected to reach $120 billion (roughly Rs. 7,97,800 crores) by 2020, it said.

“While in terms of base, India may be lower than China and other giants like Japan, the Indian rate of growth is way ahead of others. Against India’s annual expansion of 51 percent, China’s e-commerce is growing at 18 percent, Japan 11 percent and South Korea 10 percent,” the study noted.

The report further said that India has an Internet user base of 400 million in 2016 whereas Brazil has 210 million Internet users and Russia 130 million, among the BRICS nations.

About 75 percent of the country’s online users are in the age group of 15-34 years since India is one of the youngest demographies globally and one out of every 5 (online user) visits the Indian Railways site, the report said.

In India, about 60-65 percent of the total e-commerce sales are being generated through smart phones. Branded apparel, accessories, jewellery, gifts, footwear are among the major hits on the e-commerce platforms, it added.

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Internet

E-Commerce Industry in India Likely to Be Worth $38 Billion by 2016: Assocham

by onkar
written by onkar
E-Commerce Industry in India Likely to Be Worth $38 Billion by 2016: Assocham

The e-commerce industry in the country is likely to be worth $38 billion (roughly Rs. 2,51,720 crores) by 2016, a 67 percent jump over the $23 billion (roughly Rs. 1,52,357 crores) revenues for 2015, as per industry body Assocham.

“India’s e-commerce market was worth about $3.8 billion (roughly Rs. 25,172 crores) in 2009, it went up to $17 billion (roughly Rs. 1,126,11 crores) in 2014 and to $23 billion (roughly Rs. 1,52,357 crores) in 2015 and is expected to touch whopping $38 billion mark by 2016,” Assocham said in a statement.

Increasing internet and mobile penetration, growing acceptability of online payments and favourable demographics has provided the e-commerce sector in India the unique opportunity to companies connect with their customers, it said.

There would be over a five to seven fold increase in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewellery, gifts, footwear are available at a cheaper rates and delivered at the doorstep, it added.

It noted that the the buying trends during 2016 will witness a significant upward movement due to aggressive online discounts, rising fuel price and wider and abundant choice will hit the e-commerce industry in 2016.

It observed mobile commerce (m-commerce) is growing rapidly as a stable and secure supplement to the e-commerce industry.

“Shopping online through smart phones is proving to be a game changer, and industry leaders believe that m-commerce could contribute up to 70 percent of their total revenues,” the statement added.

In India roughly 60-65 percent of the total e-commerce sales are being generated by mobile devices and tablets, increased by 50 percent than the last year and also likely to continue upwards, it added.

It noted that the browsing trends, which have broadly shifted from the desktop to mobile devices in India, online shopping is also expected to follow suit, as one out of three customers currently makes transactions through mobiles in tier-1 and tier-2 cities.

In 2015, 78 percent of shopping queries were made through mobile devices, compared to 46 percent in 2013.

In 2015, the highest growth rate was seen in the apparel segment almost 69.5 percent over last year, followed by electronic items by 62 percent, baby care products at 53 percent, beauty and personal care products at 52 percent and home furnishings at 49 percent.

It revealed that Mumbai ranks first in online shopping followed by Delhi, Ahmedabad, Bangalore and Kolkata.

On the mode of payment, almost 45 percent of online shoppers reportedly preferred cash on delivery mode of payment over credit cards (16 percent) and debit cards (21 percent).

Only 10 percent opted for Internet banking and a scanty 7 percent preferred cash cards, mobile wallets, and other such modes of payment, it said.

Among the above age segments, 18-25 years of age group has been the fastest growing age segment online with user growth being contributed by both male and female segments.

The survey revealed that 38 percent of regular shoppers are in 18-25 age group, 52 percent in 26-35, 8 percent in 36-45 and 2 percent in the age group of 45-60.

Almost 65 percent of online shoppers are male as against 35 percent female.

[“source-techtimes”]

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News Update

E-Commerce to Reshape Indian FMCG Sector: Report

by onkar
written by onkar

India’s smaller towns and cities are expected to contribute more in shaping future demand for the fast moving consumer goods sector, while e-commerce companies will contribute increasingly larger share of sales for such companies, a report said on Monday.

“Re-Imagining FMCG in India”, a joint report by industry chamber CII and Boston Consulting Group (BCG), said growth in disposable income, increased urbanisation, and the increase in the number of nuclear households are driving growth of the Indian branded FMCG sector estimated to be currently worth around $65 billion (roughly Rs. 4,30,914 crores).

“The growth opportunity is massive, yet, the shape of this opportunity would be very different in the future. We expect greater premiumization, tier 2-4 towns to be the drivers of growth,” BCG director Abheek Singhi said at the release of the report.

The report said that households with more than Rs.10 lakh annual income would account for 50 percent of the spending in the category.

“This would lead to premiumization across categories – from unbranded to branded – and ‘luxuriating’ of products,” the Confederation of Indian Industry (CII) said in a release here.

The report said companies will need to focus on tier 2 and 3 cities and rural regions, as their contribution will be an important source of demand for the sector as more and more consumers move from the non-branded to the branded segment.

It estimates that by 2020, more that 150 million consumers would be digitally influenced in FMCG.

“Their decision making process would be influenced by digital. These consumes would spend more than $45 billion (roughly Rs. 2,98,323 crores) on FMCG categories,” CII said.

“Companies would need to build capabilities in digital marketing and would also need to push for greater clarity on the role of new emerging channels like e-commerce would play for them and how should they engage with these new channels without conflicting their brick and mortar partners,” it added.

On this trend, Singhi said: “The combined effects of these demographic shifts with the emergence of new channels like e-commerce, proliferation of the internet connectivity and consumption of digital media, will reshape the FMCG sector.”

[“source-gadgets.ndtv”]

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Internet

Government to Open FDI in E-Commerce in a ‘Calibrated Manner’: Sitharaman

by onkar
written by onkar

Foreign investment in business to customer (B2C) e-commerce activities has been opened in a calibrated manner, Parliament was informed on Wednesday.

Commerce and Industry Minister Nirmala Sitharaman in a written reply to Rajya Sabha said that an entity is permitted to undertake retail trading through e-commerce under certain circumstances.

Mentioning the circumstances, she said a manufacturer is permitted to sell its product manufactured domestically through e-commerce retail.

Also, a single brand retail trading firm operating through brick and mortar stores, is permitted to undertake e-retailing.

“Foreign investment in business to customer (B2C) e-commerce activities has been opened in a calibrated manner and an entity is permitted to undertake retail trading through e-commerce under the (certain) circumstances,” she said.

As per the policy, FDI up to 100 percent is permitted in B2B e-commerce.

Replying to a separate question on tobacco she said, the Department of Industrial Policy and Promotion (DIPP) has confirmed that there is no restriction on manufacture of four items namely ‘guthka’, ‘scented khaini’, flavoured chewing tobacco and ‘pan masala’.

She said there are 16 pan masala manufacturing units in Kandla SEZ, 5 units in Surat SEZ and 4 are engaged in manufacturing of tobacco related products in Noida SEZ.

A proposal for establishment of a new unit for manufacturing of the said four items in Kandla SEZ was referred by the SEZ to the Commerce ministry.

[“source-gadgets.ndtv”]

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Online Marketing

Basic Understanding of E-Commerce

by Loknath Das
written by Loknath Das

The Different Types of e-Commerce | Trellis Inc.

Simply put, E Commerce is ‘Using Electronic Platform for Business Transactions’. It is also called a ‘Virtual Market Place’. Every minute millions of people from all over the world are logging into the Internet looking for some information, for product, services, to look for news, download music, for online shopping and so on. Every individual is looking for something that he would like to obtain or buy online instead of having to go through a physical transaction. Imagine what this means to the business organisations. If they are able to identify and access those individual users who have a specific need or want, they have a ready customer in waiting.

One could wonder whether it is the online community or the technology that is paving way for E Commerce. The answer is that both these factors are driving the E Commerce. The technological developments are providing the backbone for business transactions to take place and the growing volumes of users buying online is making it possible for E Commerce and markets to grow.

E Commerce is characterized by Business to Business and Business to Customer business models. We are very familiar with the Business to Customer model for banking; insurance as well as online shopping, online booking etc that have become very popular and accepted modes in our daily lives. On the B to B front too, business organisations have re-engineered their Business processes including Advertising, Marketing, Sales Order Management besides Supply chain management and Customer Relationship management to suit the E Commerce mode. Dell has successfully adapted ‘online selling’ model on a global scale. It allows the customers to ‘configure the model’ and to ‘Order Online’. Once the transaction has been successfully carried out and payment has been received, Dell executes the order and ensures that the DELL Products are delivered at the Customer’s door step within seven working days. DELL has not only used E Commerce successfully as its major selling channel, but at the backend they have put in place ‘Built to Order’ process where in the Computer is assembled against the specific customer order and is delivered to the customer. By integrating E Commerce and its Manufacturing process, DELL has managed to do away with holding inventories and managed to bring its costs down.

E Commerce has become a major business process for Global organisations and Multi National Companies. Most MNCs depend upon ‘Online selling ‘as well as ‘Online Procurement’ on global scale. E Commerce has made it possible for them to access global markets as well as source raw materials from across the world. Besides, E Commerce has brought down the cost of selling as well as cost of procurement drastically adding to the bottom line. In the consumer world, Insurance, banking, airlines and hospitality sectors have stood to benefit from E Commerce model of selling.

E Commerce is a reality. Several multiple technologies, platforms, agencies and networks make it possible for E Commerce to happen. EDI and Online banking and transactions have been the major enablers that have made it possible for business transactions to take place.

It is simply amazing to think that with the click of a button one can buy, sell or affect financial transactions worth millions of dollars in a few minutes. However this is true and E Commerce is the future.

[“source=managementstudyguide”]

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