Project of E-Commerce

Submitted for the partial fulfillment of the requirement for the degree of Master of
Business Administration (2017-19 Batch)

SUBMITTED TO :- SUBMITTED BY :-
Dr. Meenal Pahwa Sanjana Lamba
MBA 4th Sem.
REG.NO.-1412031824
 Acknowledgement
I would like to express my deepest appreciation to all those who
provided me the possibility to complete this report .A special gratitude I
give to my teacher Mrs. Dr. Meenal Pahwa , whose contribution in
stimulating suggestions and encouragement helped me to coordinate my
project especially in writing .

Sanjana Lamba
 Declaration

I Sanjana Lamba , declare that this e-commerce project is made by me

and it is an authentic work carried by me . The matter embodied in this
has not been submitted earlier to the best of my Knowledge .
Sanjana lamba
 CERTIFICATE
This is to certify that Sanjana Lamba student of MBA final year Reg.no.
1412031824 has worked under my guidance on the e-commerce project
entitled “E-Commerce Project – FLIPKART” . The project is completed
in the partial fulfilment for the requirement of the degree of MBA .

I wish her all the source in life & future .

Dr. Meenal Pahwa

(Assistant professor )
KIIT College of Engineering
 PROJECT OF E-COMMERCE

FLIPKART.COM
 Flipkart

Electronics retail company

flipkart.com

Description

Flipkart Pvt Ltd. is an Indian e-commerce company based in Bengaluru, India. Founded by Sachin Bansal and Binny Bansal in 2007, the
company initially focused on book sales, before expanding into other product categories such as consumer electronics, fashion, and lifestyle
products.

Customer service: 1800 208 9898

CEO: Kalyan Krishnamurthy (Jan 2017–)

Founded: October 2007

Subsidiaries: Myntra, PhonePe, Liv.ai Pvt. Ltd., MORE

Founders: Binny Bansal, Sachin Bansal Parent organization: Walmart

 INTRODUCTION

Flipkart, is an E-Commerce company founded in 2007 by Sachin Bansal and Binny Bansal. It is registered in Singapore and it operates in
India, where it is headquartered in Bangalore, Karnataka. Flipkart has launched its own product range under the name "DigiFlip" with products
including tablets, USBs, and laptop bags.

Flipkart (Company) was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi. They had
been working for Amazon.com previously. The business was formally incorporated as a company in October 2007 as Flipkart Online Services
Pvt. Ltd. The first product sold by them was the book Leaving Microsoft To Change The World, bought by VVK Chandra from Andhra Pradesh.
Flipkart now employs more than 16000 people. Flipkart allows payment methods such as cash on delivery, credit or debit card transactions, net
banking, e-gift voucher and card swipe on delivery.
Flipkart Pvt Ltd. is an Indian e-commerce company based in Bengaluru, India. Founded by Sachin Bansal and Binny Bansal in 2007, the
company initially focused on book sales, before expanding into other product categories such as consumer electronics, fashion, and lifestyle
products.

The service competes primarily with Amazon's Indian subsidiary, and the domestic rival Snapdeal.[5][6] as of March 2017, Flipkart held a 39.5%
market share of India's e-commerce industry.[7] Flipkart is significantly dominant in the sale of apparel (a position that was bolstered by its
acquisitions of Myntra and Jabong.com), and was described as being "neck and neck" with Amazon in the sale of electronics and mobile
phones.[8] Flipkart also owns PhonePe, a mobile payments service based on the Unified Payments Interface(UPI).
PRODUCTS
 HISTORY

Flipkart was founded in October 2007 by Sachin Bansal and Binny Bansal, who were both alumni of the Indian Institute of Technology
Delhi and formerly worked for Amazon. The company initially focused on online book sales with country-wide shipping. Following its launch,
Flipkart slowly grew in prominence; by 2008, it was receiving 100 orders per day. In 2010, Flipkart acquired the Bangalore-based social book
discovery service weRead from Lulu.com.

In late 2011, Flipkart made several acquisitions relating to digital distribution, including Mime360.com and the digital content library of
Bollywood portal Chakpak.

In February 2012, the company unveiled its DRM-free online music store Flyte. However, the service was unsuccessful due to competition from
free streaming sites, and shut down in June 2013.

In May 2012, Flipkart acquired Letsbuy, an online electronics retailer. In May 2014, Flipkart acquired Myntra, an online fashion retailer, for ₹20
billion (US$280 million). Myntra continues to operate alongside Flipkart as a standalone subsidiary; the site focuses on an upscale, "fashion-
conscious" market, while Flipkart itself focuses on the mainstream market and major international brands.

On 6 October 2014, in honour of the company's anniversary and the Diwali season, Flipkart held a major sale across the service that it promoted
as "Big Billion Day". The event generated a surge of traffic, selling US$100 million worth of goods in 10 hours. The event received criticism via
social media over technical issues the site experienced during the event, as well as stock shortages.

In March 2015, Flipkart blocked access to its website on mobile devices, and began requiring that users download the site's mobile app instead.
The following month, Myntra went further and discontinued its website on all platforms, in favour of operating exclusively through its app. The
"app-only" model, however, proved to be unsuccessful for Myntra (reducing sales by 10%), and its main website was reinstated in February
2016. The experiment with Myntra led to suggestions that Flipkart itself would perform a similar move, but this did not occur. In November
2015, Flipkart launched a new mobile website branded as "Flipkart Lite", which provides an experience inspired by Flipkart's app that runs
within smartphone web browsers.

In April 2015, Flipkart acquired Appiterate, a Delhi-based mobile marketing automation firm. Flipkart stated that it would use its technology to
enhance its mobile services. In October 2015, Flipkart reprised its Big Billion Day event, except as a multi-day event that would be exclusive to
the Flipkart app. Flipkart also stated that it had bolstered its supply chain and introduced more fulfilment centres in order to meet customer
demand. Flipkart achieved a gross merchandise volume of US$300 million during the event, with the largest volumes coming from fashion sales,
and the largest value coming from mobiles.

Flipkart held a 51% share of all Indian smartphone shipments in 2017, overtaking Amazon India (33%).Flipkart sold 1.3 million phones in 20
hours on 21 September alone for its Big Billion Days promotion, doubling the number sold on the first day of the event in 2016 (where it sold a
total of 2.5 million phones in five days).
 FUNDING OF FLIPKART

Initially, the Bansals spent ₹400,000 (US$5,600) on developing the site. Flipkart later raised funding from venture capital funds Accel
India (US$1 million in 2009) and Tiger Global (US$10 million in 2010 and US$20 million in June 2011). On 24 August 2012, Flipkart
announced the completion of its 4th round of US$150 million funding from MIH (part of Naspers Group) and ICONIQ Capital. The company
announced, on 10 July 2013, that it has raised an additional US$200 million from existing investors including Tiger Global, Naspers, Accel
Partners and Iconiq Capital.

Flipkart reported a loss of ₹2.81 billion (US$39 million) for the FY 2012–13. In July 2013, Flipkart raised $160 million from private equity
investors.

In October 2013, it was reported that Flipkart had raised an additional US$160 million from new investors Dragoneer Investment
Group, Morgan Stanley Wealth Management, SofinaSA, and Vulcan Inc., with participation from existing investor Tiger Global.

On 29 July 2014, Flipkart announced that it raised US$1 billion from Tiger Global Management LLC, Accel Partners, and Morgan Stanley
Investment Management, and a new investor, Singapore sovereign-wealth fund GIC.

In December 2014, after it received $700 million from another funding, Flipkart had a market cap of $11 billion..

On 19 September 2018, Flipkart Marketplace Singapore infused INR 3,463 crore into the Indian entity Flipkart Internet. The transaction was
done in two tranches according to the regulatory filings.
 BUSINESS RESULT OF FLIPKART

Flipkart India Pvt. Ltd, the wholesale entity of the country’s largest online retailer owned by US-based Walmart Inc., had a tough 2017-18 with
its net loss widening nine-fold, although the company managed to grow its business at a fast pace. The marketplace arm, Flipkart Internet Pvt.
Ltd, however reported narrower losses and a significant pickup in growth, according to regulatory documents sourced from Tofler and
Paper.VC.

While Flipkart Internet books commissions on each sale through its app or website, the wholesale unit sources goods and sells them to third-
party sellers who, in turn, sell them to shoppers.

Although the results pertain to the period prior to Walmart’s $16-billion buyout of Flipkart, it highlights the challenges the new owner of India’s
largest online retailer faces to turn around the company amid a bruising battle for market leadership with Amazon in the world’s fastest-growing
economy.

The high-stakes market share battle against Amazon India will require Flipkart to spend heavily to maintain its slender lead over its rival.

For the year ended March 2018, Flipkart India’s revenue rose 39% to ₹ 21,658 crore from ₹ 15,569 crore in the year earlier. Net loss widened
nine-fold to ₹ 2,065 crore.

Flipkart attributed the higher losses to a spike in employee benefit expenses, finance costs, and an increase in the purchase of traded goods.

A spokesperson for Flipkart did not immediately respond to an email seeking comment on the company’s earnings.
In the same period, Flipkart Internet’s revenue rose 36% to ₹3,060 crore from ₹ 2,253 crore in the previous year. Net loss narrowed to ₹ 1,159
crore from ₹ 1,639 crore.

Since Flipkart started out in 2007, the company has adopted a complex corporate structure to accommodate all its subsidiaries, since India
bans foreign direct investment in online retail. The two Flipkart entities—Flipkart India and Flipkart Internet—generated roughly ₹ 24,718 crore
in 2017-18 compared to ₹ 17,822 crore in the previous fiscal.

After Walmart’s buyout of Flipkart in May, the US-based retail giant had disclosed that the Flipkart Group (which includes Myntra and
PhonePe) generated gross merchandise value of $7.5 billion (before product returns), with net sales of $4.6 billion, in the last financial year.

Mint had in May reported that Flipkart is likely to burn $2 billion in cash over the next 18 months — an affirmation that sales growth, rather than
cutting losses, remains the top priority for the online retailer after its takeover by Walmart.

Both Flipkart and Amazon are expected to spend several billions of dollars over the next 5-10 years in their quest to dominate India. Last week,
Amazon highlighted the importance of India to its global ambitions, as it blamed a late Diwali in India for a slowdown in its international
sales during the September quarter.
 What is e-commerce ?

Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet,
and the transfer of money and data to execute these transactions. Ecommerce is often used to refer to the sale of physical products online, but it
can also describe any kind of commercial transaction that is facilitated through the internet.

Whereas e-business refers to all aspects of operating an online business, ecommerce refers specifically to the transaction of goods and services.

E-commerce (EC), an abbreviation for electronic commerce, is the buying and selling of goods and services, or the transmitting of funds or data,
over an electronic network, primarily the internet. These business transactions occur either as business-to-business (B2B), business-to-consumer
(B2C), consumer-to-consumer or consumer-to-business. The terms e-commerce and e-business are often used interchangeably. The term e-tail is
also sometimes used in reference to the transactional processes for online shopping.
Process of E-commerce
 E-Commerce framework

The term e-commerce framework is related to software frameworks for e-commerce applications. They offer an environment for building e-
commerce applications quickly.

E-Commerce frameworks are flexible enough to adapt them to your specific requirements. As result, they are suitable for building virtually all
kinds of online shops and e-commerce related (web) applications.

An e-commerce framework must

 allow replacing all parts of the framework code

 forbid changes in the framework code itself
 contain bootstrap code to start the application
 be extensible by user-written code

E-Commerce frameworks should

 define the general program flow

 consist of reusable components
 be organized in functional domains

They provide an overall structure for e-commerce related applications.

 Electronic Payment

An electronic payment (e-payment), in short, can be simply defined as paying for goods or services on the internet. It includes all financial
operations using electronic devices, such as computers, smartphones or tablets.

E-payments come with various methods, like credit or debit card payments or bank transfers. Note that one of the most popular and common
online payment methods nowadays are credit cards.

The electronic payment system has grown increasingly over the last decades due to the growing spread of internet-based banking and shopping.
As the world advances more with technology development, we can see the rise of electronic payment systems and payment processing devices.
As these increase, improve, and provide ever more secure online payment transactions the percentage of check and cash transactions will
decrease.
Process of E-Payment
 Electronic Payment System c

Credit payment system

 Credit Card — A form of the e-payment system which requires the use of the card issued by a financial institute to the
cardholder for making payments online or through an electronic device, without the use of cash.

 E-wallet — A form of prepaid account that stores user’s financial data, like debit and credit card information to make an online
transaction easier.
 Smart card — A plastic card with a microprocessor that can be loaded with funds to make transactions; also known as a chip
card.

Cash payment system ent SysteCm

 Direct debit — A financial transaction in which the account holder instructs the bank to collect a specific amount of money
from his account electronically to pay for goods or services.
 E-check — A digital version of an old paper check. It’s an electronic transfer of money from a bank account, usually checking
account, without the use of the paper check.
 E-cash is a form of an electronic payment system, where a certain amount of money is stored on a client’s device and made
accessible for online transactions.
 Stored-value card
 EPS

How does EPS works ?

*The customer selects their bank from the list of participating banks.
*After selecting the bank, the customer logs in to the online banking environment.
* In the online banking environment the customer reviews the prefilled payment details.
* If all the information is correct the customer authorizes the payment.
* After the authorization the customer will receive a confirmation and the product will be send.
Electronic paymen
 Electronic Data Interchange

Electronic Data Interchange (EDI) is the electronic interchange of business information using a standardized format; a process which allows one
company to send information to another company electronically rather than with paper. Business entities conducting business electronically are
called trading partners.

Many business documents can be exchanged using EDI, but the two most common are purchase orders and invoices. At a minimum, EDI
replaces the mail preparation and handling associated with traditional business communication. However, the real power of EDI is that it
standardizes the information communicated in business documents, which makes possible a "paperless" exchange.

The traditional invoice illustrates what this can mean. Most companies create invoices using a computer system, print a paper copy of the invoice
and mail it to the customer. Upon receipt, the customer frequently marks up the invoice and enters it into its own computer system. The entire
process is nothing more than the transfer of information from the seller's computer to the customer's computer. EDI makes it possible to
minimize or even eliminate the manual steps involved in this transfer.
How EDI Works
 EDI V/S PAPER BASED SYSTEM

EDI PAPER BASED SYSTEM

Machine audit Human Audit
Point-to-point Courier Delivery
VAN Network Postal Services
Transection Document
 Benefits of EDI

 It’s fast – streamlined business processes mean that documents can be exchanged in minutes
 It’s accurate – manual data entry errors are eliminated
 It’s secure – you receive confirmation that your documents have arrived safely
 It cuts costs – of printing, copying, filing, storage and postage, and of repetitive, labour intensive tasks, administration and disputes
caused by data entry errors
 It happens in real-time – informing and speeding up business decisions and response times
 It’s great for business – you’re part of a connected trading community and can build more productive relationships with suppliers and
customers alike
 It’s great for cash flow – payment schedules are shorter and more reliable
 It’s flexible – you can integrate your EDI system with your back office accounts, warehouse or ERP systems for more business
efficiencies
 It’s liberating! – you’re free to concentrate on high value tasks, like customer service, sales and marketing and product development.
 E-Commerce Marketing

E-commerce marketing is the practice of guiding online shoppers to an e-commerce website and persuading them to buy the products or services
online. E-commerce marketing can include practices like:

 Search engine optimization to help a website to rank higher in organic search engine listings
 Affiliation with better-known websites through referral marketing or banner advertising
 Retention of current customers through email marketing

While there are many similarities between marketing an e-commerce website and marketing a brick and mortar store, e-commerce marketing
involves some unique challenges and opportunities (See also Brick-and-Mortor Marketing). Online, consumers don’t feel invested in a shopping
venture the way they would if they’d gotten in their car to visit a physical location, because visiting an e-commerce website requires no more
effort than a mouse click.

Additionally, e-commerce businesses don’t have opportunities to draw customers in with the physical enticements of a well-run store – there is
no soft music, relaxing smell or helpful, well-dressed salesperson to help them make their choice.

On the flipside, however, shopping online is faster, easier and more private, which makes it very appealing to tech-savvy consumers. With a
fully-functioning, easy-to-use website and effective customer engagement tools, an e-commerce website can make shoppers want to complete
their transactions online. This is financially beneficial, as e-commerce businesses require much less overhead to run successfully.

Still, many e-commerce marketing companies use this lack of investment in online shopping to justify high spending on increasing traffic to the
website. Often, if a marketing firm puts thought into their e-commerce marketing strategy, this high spending may not be necessary.
 B2B Marketing model

B2B (business-to-business) marketing is marketing of products to businesses or other organizations for use in production of goods, for use in
general business operations (such as office supplies), or for resale to other consumers, such as a wholesaler selling to a retailer.

B2B marketing success doesn’t come from broadcasting a product over radio or television. B2B marketing success comes from
embedding your company in the industry, and making your product seem like a staple. Get in front of niche buyers by:

 Hosting informational webinars

 Setting up booths at popular industry tradeshows
 Sending out email newsletters positioning your company as an industry expert
 Maintaining an active, interactive social media presence
 Attending industry networking events and building buyer relationships

Advantages

 More Business Opportunities

 Improved Sales
 Lower Costs
 Customer Reviews
 New Markets
 Data Driven Sales And Marketing Operations
Traditional V/S Digital Marketing
 Security

Security is an essential part of any transaction that takes place over the internet. Customers will lose his/her faith in e-business if its security is
compromised. Following are the essential requirements for safe e-payments/transactions −

 Confidentiality − Information should not be accessible to an unauthorized person. It should not be intercepted during the transmission.
 Integrity − Information should not be altered during its transmission over the network.
 Availability − Information should be available wherever and whenever required within a time limit specified.
 Authenticity − There should be a mechanism to authenticate a user before giving him/her an access to the required information.
 Non-Repudiability − It is the protection against the denial of order or denial of payment. Once a sender sends a message, the sender
should not be able to deny sending the message. Similarly, the recipient of message should not be able to deny the receipt.
 Encryption − Information should be encrypted and decrypted only by an authorized user.
 Auditability − Data should be recorded in such a way that it can be audited for integrity requirements.

Measures to ensure Security

 Encryption − It is a very effective and practical way to safeguard the data being transmitted over the network. Sender of the information
encrypts the data using a secret code and only the specified receiver can decrypt the data using the same or a different secret code.
 Digital Signature − Digital signature ensures the authenticity of the information. A digital signature is an e-signature authenticated
through encryption and password.
 Security Certificates − Security certificate is a unique digital id used to verify the identity of an individual website or user.
 Cyber Laws In India

With the increased dependency on the use of technology need for cyber law was felt necessary as like every coin has two sides the dependency
on the technology had its own pros and cons. Thus, the rise of 21st century also marked for the evolution of cyber law and Information
Technology Act, 2000 was introduced as the Indian IT law and set way for evolution of cyber law. The first ever cyber crime was recorded in
1820. The objective of Information technology law in India are as follow :

 To protect the legal recognition to E-transactions

 Legal recognition to digital signature as a valid signature to accept agreements online
 Protection of online privacy and stopping cyber crimes
 To give legal recognition to keeping accounting books in electronic form by bankers as well as other organizations
 The Indian IT law updated the Reserve Bank of India Act and Indian Evidence Act.

Need for Cyber law

In present world which is a more tech savvy world the cyber law and cyber crimes has also become more sophisticated. Internet and
technology were launched for research purpose and making the life of humans easy but as the use and number of people on internet
increased the need for cyber law was felt. As the nature of internet is anonymous it is easy to commit cyber crimes and this aspect was
being misused largely. Hence, there was need for cyber laws in India.
 Secure Socket Layer (SSL)

SSL (Secure Sockets Layer) is the standard security technology for establishing an encrypted link between a web server and a browser. This link
ensures that all data passed between the web server and browsers remain private and integral. SSL is an industry standard and is used by millions
of websites in the protection of their online transactions with their customers.

To be able to create an SSL connection a web server requires an SSL Certificate. When you choose to activate SSL on your web server you will
be prompted to complete a number of questions about the identity of your website and your company. Your web server then creates two
cryptographic keys - a Private Key and a Public Key.

The Public Key does not need to be secret and is placed into a Certificate Signing Request (CSR) - a data file also containing your details. You
should then submit the CSR. During the SSL Certificate application process, the Certification Authority will validate your details and issue an
SSL Certificate containing your details and allowing you to use SSL. Your web server will match your issued SSL Certificate to your Private
Key. Your web server will then be able to establish an encrypted link between the website and your customer's web browser.

The complexities of the SSL protocol remain invisible to your customers. Instead their browsers provide them with a key indicator to let them
know they are currently protected by an SSL encrypted session - the lock icon in the lower right-hand corner, clicking on the lock icon displays
your SSL Certificate and the details about it. All SSL Certificates are issued to either companies or legally accountable individuals.
 Secure Electronic Transaction (SET)

Secure Electronic Transaction (SET) is a system for ensuring the security of financial transactions on the Internet. It was supported initially by
Mastercard, Visa, Microsoft, Netscape, and others. With SET, a user is given an electronic wallet (digital certificate) and a transaction is
conducted and verified using a combination of digital certificates and digital signatures among the purchaser, a merchant, and the purchaser's
bank in a way that ensures privacy and confidentiality. SET makes use of Netscape's Secure Sockets Layer (SSL), Microsoft's Secure
Transaction Technology (STT), and Terisa System's Secure Hypertext Transfer Protocol (S-HTTP). SET uses some but not all aspects of a
public key infrastructure (PKI).

Secure electronic transaction (SET) was an early protocol for electronic credit card payments. As the name implied, SET was used to facilitate
the secure transmission of consumer credit card information via electronic avenues, such as the Internet. SET blocked out the details of credit
card information, thus preventing merchants, hackers and electronic thieves from accessing this information.
Parties in secure E-Commerc
 E-SCM

Electronic supply chain management is most commonly referred to as e-supply chain management. It combines the concepts of electronic
business (e-business) and supply chain management (SCM), and depicts how trade channel members are working together to optimize
resources and opportunities

The success of an e-SCM depends on the ability of all supply chain partners to view partner collaboration as a strategic asset; a well-defined
supply chain strategy; information visibility along the entire supply chain; speed, cost, quality, and customer service; integrating the supply chain
more tightly. Application of e-SCM can reduce some problems in SCM through sharing of demand by customers with suppliers as part of
efficient consumer response (ECR), suppliers become responsible for item availability through vendor-managed inventory, human error reduced
(checks and balances can be built into system), inventory reduced throughout the supply chain through better demand forecasting and more rapid
replenishment of inventory, improved availability of information about potential suppliers and components (for example through online
marketplaces). .
 Supply Chain Solutions

 Order taking
 Order Fulfillment
 Electronic Payment
 Inventory Minimization
 Collaborative Commerce
 Benefits of E-SCM

1. It improves efficiency

2. It reduces inventory

3. It reduces cost

4. It helps to take competitive advantage over competitors.

5. It increases ability to implement just-in-time delivery, increases on-time deliveries, which enhances customer satisfaction.

6. It reduces cycle time, increases revenue, by providing improved customer service.

7. It improves order fulfillment, order management, decision making, forecasting, demand planning, and warehouse/distribution activities.

8. It reduces paperwork, administrative overheads, inventory build-up, and the number of hands that handle goods on their way to the end-user
i.e., the customer.
Thank You
 BIBLOGRAPHY

BOOKS :

VK Global Publications of e- commerce

WEBSITES :

www.google.com

www.flipkart.com

Wikipedia.org