A MARKET SURVEY REPORT
ON
ONLINE SHOPPING
SESSION: 2009-2010
SUBMITTED TO: SUBMITTED BY:
Mrs. Gurpreet Kaur Adita !a"de
Asst. !r#$ess#r BBA % I& Se'.
(#)) N#. : 1010*0*2
+E(TI,I+ATE
Date………………
This is to certified that Adita !a"de is a regular student of B.B.A IV Sem and
she has completed the market survey report on the topic -O")i"e S.#ppi"/
E0perie"1e a"d +ust#'ers Satis$a1ti#" 2 Under my supervision.
It is certified that the hole market survey report is !ased on his individual efforts
and the analysis is found up to mark.
I therefore recommend that the market survey report preparer !y the candidate !e
sent for evaluation.
Mrs. Gurpreet Kaur
Asst. !r#$ess#r
BBA Depart'e"t
(BMI3 BA(EI44Y.
!(E,A+E
"nline shopping in the Asia#$acific region is set to e%pand rapidly in coming
years& underpinned
!y rapid economic groth& ith 'hina and India to lead the region. In
addition& internet penetration rates in less(developed countries like 'hina&
India and Thailand are poised to improve significantly as internet usage
gros and associated infrastructure is developed in the region) this ill also
!oost online shopping rates.
In this pro*ect I have try to discuss a!out latest trends in "nline Shopping
+%perience and 'ustomers Satisfaction
A+KNO54EDGEMENT
I ould like to take this opportunity to e%press my deep gratitude to all those
ho& directly or indirectly made this pro*ect possi!le.
I have got considera!le help and support in making this pro*ect report a
reality from many people.
I ould like to thank Mrs. Gurpreet Kaur 3 ,B-I& Bareilly hose
endeavor for perfection& under fatiga!le .eal& innovation and dynamism
contri!uted in a !ig ay in completing this pro*ect. This ork is the
reflection of his thought& ideas& concept and a!ove all his modest effort.
+ONTENT
? INT(ODU+TION
? '"-$A/0 $,"1I2+
? 3/"42+D5+ AB"UT '"-$A/0
? "B6+'TIV+ "1 T7+ SU,V+0
? (ESEA(+6 MET6ODO4OGY
? 70$"T7+SIS
? '"22+'TI"/ "1 DATA
? 8U+STI"//AI+,
? DATA ANA4YSIS AND INTE(!(ETATION
? +ON+4USION
? ,INDING AND SUGGESSION
? BIB4IOG(A!6Y
? A!!ENDI7
Introduction
5.at is e-s.#ppi"/ 8
The use of computers and internet have !een e0pa"di"/ si/"i$i1a"t)
over the years. $resently internet has !een used idely as a 'ea"s #$
1#''u"i1ati#"& as a potential s#ur1e #$ i"$#r'ati#"& as a 'ea"s #$
e"tertai"t'e"t and many more. 4ith in fe years after e%istence of
internet& !usiness men reali.ed the possi!ilities of using i"ter"et as a
'ediu' #$ 9usi"ess. This idea kick started the first #")i"e 9usi"ess
ventures.
-odern technology has !een developed to the e%tent that even s.#ppi"/
made possi!le #:er t.e i"ter"et. The process of s.#ppi"/ d#"e #:er t.e
i"ter"et is called online shopping. Both products and services can !e
purchased !y online shopping. "nline shopping is used for !usiness to
!usiness transactions or !usiness to customer transactions ith
applications of e)e1tr#"i1 1#''er1e. 9 e+#''er1e :
O")i"e s.#ppi"/ is the process consumers go through to purchase
products or services over the Internet. An online shop& eshop& e(store&
internet shop& e!shop& e!store& online store& or virtual store evokes the
physical analogy of !uying products or services at a !ricks(and(mortar
retailer or in a shopping mall.
The metaphor of an online catalog is also used& !y analogy ith mail
order catalogs. All types of stores have retail e! sites& including those
that do and do not also have physical storefronts and paper catalogs.
"nline shopping is a type of electronic commerce used for !usiness(to(
!usiness 9B;B: and !usiness(to(consumer 9B;': transactions.
6ist#r #$ O")i"e S.#ppi"/
6ist#r #$ O")i"e S.#ppi"/ starts not so long ago. Tim Berners(2ee
created <The World Wide Web Browser< in =>>?. In=>>@ fe other
developments took place. "nline !ank & the first of its kind opened this
year. Another development as opening of #")i"e pi;;a s.#p !y pi..a
hut.
In the same year /etscape introduced SS4 e"1rpti#" to ena!le
encryption over the data transferred online. This later !ecame the
necessity of online shopping. In =>>A& Ama.on started operation& one of
the largest online shopping mall no. Then in =>>B e!ay started its online
shopping portal.
=>>C itnessed use of e)e1tr#"i1 p#sta/e sta'ps& here people can
donload and print postal stamps after paying nominal fee. In =>>> the
first online shop in UK launched.
Design
4hy does electronic shopping e%istD 1or customers it is not only !ecause
of the high level of convenience& !ut also !ecause of the !roader
selectionE competitive pricing and greater access to information.
F>GF=?G
. 1or
organi.ations it increases their customer value and the !uilding of
sustaina!le capa!ilities& ne%t to the increased profits
F==G
.
I"$#r'ati#" )#ad
Designers of online shops should consider the effects of information load.
-ehra!ian and ,ussel 9=>H@: introduced the concept of information rate
9load: as the comple% spatial and temporal arrangements of stimuli ithin
a setting.
F=;G
The notion of information load is directly related to concerns
a!out hether consumers can !e given too much information in virtual
shopping environments. 'ompared ith conventional retail shopping&
computer shopping enriches the information environment of virtual
shopping !y providing additional product information& such as
comparative products and services& as ell as various alternatives and
attri!utes of each alternative& etc.
F=IG
To ma*or su!(dimensions have !een identified for information load)
comple%ity and novelty.
F=@G
'omple%ity refers to the num!er of different
elements or features of a site& hich can !e the result of increased
information diversity. /ovelty involves the une%pected& suppressing& ne&
or unfamiliar aspects of the site. A research !y 7uang 9;???: shoed that
the novelty dimension kept consumers e%ploring the shopping sites&
hereas the comple%ity dimension has the potential to induce impulse
purchases
F=IG
.
+#"su'er e0pe1tati#"s
The main idea of online shopping is not in having a good looking e!site
that could !e listed in a lot of search engines and it is not a!out the art
!ehind the site.
F=AG
It also is not only *ust a!out disseminating information&
!ecause it is all a!out !uilding relationships and making money.
F=AG
-ostly& organi.ations try to adopt techniJues of online shopping ithout
understanding these techniJues and#or ithout a sound !usiness model.
F=AG
,ather than supporting the organi.ationKs culture and !rand name& the
e!site should satisfy consumerLs e%pectations.
F=AG
-any researchers
notify that the uniJueness of the e! has dissolved and the need for the
design& hich ill !e user centered& is very important.
F=AG
'ompanies
should alays remem!er that there are certain things& such as
understanding the customerKs ants and needs& living up to promises&
never go out of style& !ecause they give reason to come !ack.
F=AG
And the
reason ill stay if consumers alays get hat they e%pect.
-cDonaldi.ation theory can !e used in terms of online shopping& !ecause
online shopping is !ecoming more and more popular and e!site that
ants to gain more shoppers ill use four ma*or principles of
-cDonaldi.ation) efficiency& calcula!ility& predicta!ility and control.
"rgani.ations& hich ant people to shop more online for them& should
consume e%tensive amounts of time and money to define& design& develop&
test& implement& and maintain e!site.
F=AG
Also if company ants their
e!site to !e popular among online shoppers it should leave the user ith
a positive impression a!out the organi.ation& so consumers can get an
impression that the company cares a!out them.
F=AG
The organi.ation that
ants to !e accepta!le in online shopping needs to remem!er& that it is
easier to lose a customer then to gain one.
F=AG
2ots of researchers state that
even hen site as a Mtop(ratedN& it ould go nohere if the organi.ation
failed to live up to common etiJuette& such as returning e(mails in a timely
fashion& notifying customers of pro!lems& !eing honest& and !eing good
steards of the customersK data.
F=AG
"rgani.ations that ant to keep their
customers or gain ne ones try to get rid of all mistakes and !e more
appealing to !e more desira!le for online shoppers. And this is hy many
designers of e!shops considered research outcomes concerning
consumer e%pectations. ,esearch conducted !y +lliot and 1oell 9;???:
revealed satisfactory and unsatisfactory customer e%periences.
F=BG
User i"ter$a1e
It is important to take the country and customers into account. 1or
e%ample& in 6apan privacy is very important and emotional involvement is
more important on a pensionKs site than on a shopping site.
F==G
/e%t to that&
there is a difference in e%perience) e%perienced users focus more on the
varia!les that directly influence the task& hile novice users are focusing
more on understanding the information.
F=HG
There are several techniJues for the inspection of the usa!ility. The ones
used in the research of 'hen O -acredie 9;??A: are 7euristic evaluation&
cognitive alk through and the user testing. +very techniJue has its on
9dis
advantages and it is therefore important to check per situation hich
techniJue is appropriate.
F=CG
4hen the customers ent to the online shop& a couple of factors
determine hether they ill return to the site. The most important factors
are the ease of use and the presence of user(friendly features
O")i"e S.#ppi"/ Ad:a"ta/es
+#":e"ie"1e
"nline stores are usually availa!le ;@ hours a day& and many consumers
have Internet access !oth at ork and at home. A visit to a conventional
retail store reJuires travel and must take place during !usiness hours.
Searching or !rosing an online catalog can !e faster than !rosing the
aisles of a physical store. 'onsumers ith dial(up Internet connections
rather than !road!and have much longer load times for content(rich e!
sites and have a considera!ly sloer online shopping e%perience.
Some consumers prefer interacting ith people rather than computers
9and vice versa:& sometimes !ecause they find computers hard to use. /ot
all online retailers have succeeded in making their sites easy to use or
relia!le.
In most cases& merchandise must !e shipped to the consumer& introducing
a significant delay and potentially uncertainty a!out hether or not the
item as actually in stock at the time of purchase. Bricks and clicks stores
offer the a!ility to !uy online !ut pick up in a near!y store. -any stores
give the consumer the delivery companyLs tracking num!er for their
package hen shipped& so they can check its status online and kno
e%actly hen it ill arrive. 1or efficiency reasons& online stores generally
do not ship products immediately upon receiving an order. "rders are
only filled during arehouse operating hours& and there may !e a delay of
anyhere from a fe minutes to a fe days to a fe eeks !efore in(
stock items are actually packaged and shipped. -any retailers inform
customers ho long they can e%pect to ait !efore receiving a package&
and hether or not they generally have a fulfillment !acklog. A Juick
response time is sometimes an important factor in consumersL choice of
merchant. A eakness of online shopping is that& even if a purchase can
!e made ;@ hours a day& the customer must often !e at home during
normal !usiness hours to accept the delivery. 1or many professionals this
can !e difficult& and a!sence at the time of delivery can result in delays& or
in some cases& return of the item to the retailer. Automated delivery
!ooths& such as D72Ls $ackstation& have tried to address this pro!lem.
In the event of a pro!lem ith the item ( it is not hat the consumer
ordered& or it is not hat they e%pected ( consumers are concerned ith
the ease ith hich they can return an item for the correct one or for a
refund. 'onsumers may need to contact the retailer& visit the post office
and pay return shipping& and then ait for a replacement or refund. Some
online companies have more generous return policies to compensate for
the traditional advantage of physical stores. 1or e%ample& the online shoe
retailer Pappos.com includes la!els for free return shipping& and does not
charge a restocking fee& even for returns hich are not the result of
merchant error. 9/ote) In the United 3ingdom& "nline shops are
prohi!ited from charging a restocking fee if the consumer cancels their
order in accordance ith the 'onsumer $rotection 9Distance Selling: Act
;???.
F;?G
:
I"$#r'ati#" a"d re:ie<s
"nline stores must descri!e products for sale ith te%t& photos& and
multimedia files& hereas in a physical retail store& the actual product and
the manufacturerLs packaging ill !e availa!le for direct inspection
9hich might involve a test drive& fitting& or other e%perimentation:.
Some online stores provide or link to supplemental product information&
such as instructions& safety procedures& demonstrations& or manufacturer
specifications. Some provide !ackground information& advice& or ho(to
guides designed to help consumers decide hich product to !uy.
Some stores even allo customers to comment or rate their items. There
are also dedicated revie sites that host user revies for different
products.
In a conventional retail store& clerks are generally availa!le to anser
Juestions. Some online stores have real(time chat features& !ut most rely
on e(mail or phone calls to handle customer Juestions.
!ri1e a"d se)e1ti#"
"ne advantage of shopping online is !eing a!le to Juickly seek out deals
for items or services ith many different vendors 9though some local
search engines do e%ist to help consumers locate products for sale in
near!y stores:. Search engines and online price comparison services can
!e used to look up sellers of a particular product or service.
Shoppers find a greater selection online in certain market segments 9for
e%ample& computers and consumer electronics
F;=G
: and in some cases loer
prices. This is due to a rela%ation of certain constraints& such as the si.e of
a <!rick(and(mortar< store& loer stocking costs 9or none& if drop shipping
is used:& and loer staffing overhead.
Shipping costs 9if applica!le: reduce the price advantage of online
merchandise& though depending on the *urisdiction& a lack of sales ta%
may compensate for this.
Shipping a small num!er of items& especially from another country& is
much more e%pensive than making the larger shipments !ricks(and(mortar
retailers order. Some retailers 9especially those selling small& high(value
items like electronics: offer free shipping on sufficiently large orders.
The ma*or ad:a"ta/e #$ #")i"e s.#ppi"/ is the 1#":e"ie"1e it offers. By
sitting !ack at home you can no shop anything from candles to vehicles
!y several clicks of mouse !uttons.
The orry you may have on travelling& traffic !locks and parking
constraints in real orld shopping can !e a:#ided hile shopping online.
4ith online shopping& you need not have to orry a!out eather
conditions as ell.
Another !ig advantage of online shopping is the $)e0i9i)it #$ s.#ppi"/.
Unlike offline shops& online shops have no holidays& closing times or any
other pro!lems. 0ou can shop ;@hrs a day& H days a eek and IBA days a
year. Is nLt that ama.ing to have a shop open alays D
"ne of the advantage of online shopping is the $a1i)ities availa!le for
product& price 1#'paris#"s. Since so many companies have come up
ith the facilities of online shopping& the pri1e 1#'paris#" and =ua)it
1#'paris#" of the products and services are possi!le. Some online malls
also provide 1ust#'er re:ie<s a!out each product& thus you can easily
find out hat other customers think a!out the product or services !efore
!uying it.
0ou can efficiently use these facilities to decide heather a product or
service is <#rt. the price Juoted. If you are lucky you ill !e also getting
a'a;i"/ #$$ers from different online stores that ill effectively reduce
the price than !uying offline.
In short 3 #")i"e s.#ppi"/ offers '#re 1#":e"ie"1e and sa:e ti'e in
comparison ith real ( orld shopping.
O")i"e S.#ppi"/ Disad:a"ta/es
"ne of the important disadvantages of online shopping is )a1> #$
pers#"a) i"tera1ti#". Another disadvantage of online shopping is
ta"/i9i)it $a1t#r. Seeing the picture of a product is far inferior to that of
seeing it in real orld. 4hen you go for real orld shopping& you can
actually touch& feel or sense it ith different means& !ut for online
shopping you can only vie the e)e1tr#"i1 1ata)#/ues. +venthough this
pro!lems has !een rectified to certain e%tent !y use of ?D pr#du1t
1ata)#/ues& some online malls still uses the old fashioned images in
product catalogues.
Another factor is s.ippi"/ 1#st. If the shipping cost is more than that you
need to actually carry the product home& then online shopping !ecome un
attractive.
0et another concern is a!out #")i"e se1urit. If you are shopping online&
you have to take additional care a!out your credit cards so that to protect
from u"aut.#ri;ed usa/e.
"nline shopping lacks the rea) <#r)d s.#ppi"/ e0perie"1e that e get
shopping ith relatives and friends offline. +venthough online shopping
has several disadvantages& the ad:a"ta/es #ut "u'9er the disadvantages
and thus more and more people started !uying online.
O")i"e S.#ppi"/ Guide - Steps 5.e" Bui"/ O")i"e
O")i"e s.#ppi"/ malls are *ust an electronic catalogue of products.
7ence to facilitate easier access to reJuired products& almost all ma*or
online malls a))#<s sear1.i"/ the entire catalogue.
The first step in the online shopping is to sear1. $#r t.e spe1i$i1 product
categories using integrated search function. "nce you find the reJuired
product& put it in a virtual <Shopping Cart< and continue shopping.
After you have added enough items in shopping cart& check out each of
the them. 0ou can add or delete the contents in shopping cart.
The ne%t step is to login using a username and passord. -any online
malls first re=uire #u t# re/ister ith them !efore alloing you to pay
for the !ought items. +nter the address to hich you ant the product to
!e delivered. 0ou might also ant to select the pa'e"t '#des for
payment here. After choosing the mode of payment there ill other !o%es
to fill your 9i))i"/ address or the pa'e"t detai)s. Some online malls
even asks for your e'ai)3 p.#"e "u'9ers etc.
Then ait for the confirmation of your order& you can also '#di$ t.e
#rder !y adding or removing items. 0ou can also cancel order if needed.
3eep the pri"ted 1#p of the purchased order and confirmations for
records. In the event of any disputes& you ill need to sho these
documents for verification.
Market share
+(commerce product sales totaled Q=@B.@ !illion in the United States in
;??>& representing a!out BR of retail product sales in the country. The
Q=C.I !illion orth of clothes sold online represented a!out =?R of the
domestic market.
1or developing countries and lo(income households in developed
countries& adoption of e(commerce in place of or in addition to
conventional methods is limited !y a lack of afforda!le Internet access.
!ri:a13 Se1urit @ Sa$et O")i"e
Privacy Online
-any online malls use 1##>ies t# tra1> the user activity for shoing
relevant results to ma%imi.e the shopping e%perience. It can also !e used
to tra1> #ur pers#"a) details. Thus !efore you pass your personal
information& ensure the 1redi9i)it of the online merchant. 5ood
companies post thier privacy policy 9 that is ho they are going to use the
personal information a!out you : on the e!site. ,ead carefullyS
Security & Saety Online
The important considerations after privacy are the se1urit a"d sa$et
$eatures used !y online malls. ,emem!er that good e!sites are 'ade i"
1#'p)ia"1e ith industrial standards such as SS4 9secured socket layer:.
These standards use e"1rpti#" te1."#)#/ to transfer information from
your computer to online merchantLs server.
By using SS2 the information you sent are s1ra'9)ed& this means it is not
possi!le to get details ithout encryption code. Since this is done
automatically in merchants server& it can !e ensured that your personal
details are secure. Thus make sure that you alays do payment over SS2.
4hen the company you ant to deal is ne to you& try to get ma%imum
information a!out them !efore making any orders. 3eep your passord
secret and make it in such a ay that other may not !e in a position to
guess it.
+redit 1ard tra"sa1ti#"s are considered to !e the sa$est '#de of
payment for online shopping.
-ake yourself understood ith the companyLs policies especially on ho
they are going to keep your financial and personal data secured.
3eep pri"ted 1#pies of purchase order and confirmation details& so that it
can !e used in the event of disputes.
O")i"e S.#ppi"/ M#de #$ !a'e"ts
!a'e"t 9 1redit 1ard is the idely accepted 'et.#d #$ pa'e"t for
online shopping. 7oever the other methods& like using e 1.e1>s3 papa)
O 9a"> tra"s$er are also common. The method of payment is decided
upon the mutual trust and familiarity !eteen online merchant and the
customer. Various methods of payment are descrip!ed !elo.
• 'redit 'ards
• De!it 'ards
• +lectronic 'ash O 'ash on Delivery
• 'heJue $ayment
• -oney "rder
Some sites ill not allo international credit cards and !illing address
and shipping address have to !e in the same country in hich site does its
!usiness. "ther sites allo customers from anyhere to send gifts
anyhere. The financial part of a transaction might !e processed in real
time 9for e%ample& letting the consumer kno their credit card as
declined !efore they log off:& or might !e done later as part of the
fulfillment process.
4hile credit cards are currently the most popular means of paying for
online goods and services& alternative online payments ill account for
;BR of e(commerce volume !y ;??> according to 'elent
Usi"/ +redit +ards $#r O")i"e S.#ppi"/
A +redit +ard is a small plastic electonic card made according to IS"
HC=? standard specification hich is used for settling the payments. Issuer
of the 1redit 1ard lends money to the holder hich is used for settling the
payment.
+redit +ard issuer 9 !anks usually : issue the card to user hich ill !e
having a pre(negotiated credit limit. 4hen a purchase is done& the
consumer sign a slip in hich the amount to !e paid& along ith details of
credit card ill !e mentioned.
The consumer send the details of purchase and the amount oed to 1redit
1ard issuer is paid in months. The consumer can pay minimum portion of
the !ill !y due date or any amount a!ove the minimum amount. The credit
provider 1.ar/e a" i"terest on the credit amount. If the amount is not
paid ithin due date the interest rate *ump up or if it is paid ithin due
date credit issuer 'a <ai:e the interest.
Usi"/ De9it +ards $#r O")i"e S.#ppi"/
De9it +ard is a small plastic e)e1t#"i1 1ard looking very similar to credit
cards. The important difference is that de!it cards uses your sa:i"/s
a11#u"t 9a)a"1e for payments.
There are to ma*or types of de!it cards. O")i"e de9it 1ards and O$$)i"e
de9it 1ards. "nline de!it cards uses !ers#"a) Ide"ti$i1ati#" Nu'9er
A !IN B to authenitcate the system. "ffline de!it cards are not compati!le
ith $I/ system.
4ith #")i"e de9it 1ards& the de!it is immediately reflected on the
account. "ffline de!it cards usually reJuire 2-? das to actually effect on
the userLs savings account.
"nline de!it cards are 1#"sidered superi#r !ecause the !IN sste' has
'#re se1urit than signature system& hich is used in offline de!it cards.
7oever online de!it cards has the disadvantage that at the point of sale
seperate key pad is necessary.
O")i"e S.#ppi"/ B E)e1tr#"i1 +as.
!lectronic "und Transer
+lectronic fund transfer 9E,T: is another method of payment used for
online shopping. These mode of transactions are complicated and are not
popular. 7oever there are fe e%ceptions such as "ctopus 'ard System
in 7ong 3ong.
Web Based Merchant Syste#
!apa) @ 2+.e1>#ut are the leading online shopping merchant systems.
This systems stores money in electronic form and transaction !eteen
user 1redit 1ard # user a11#u"t t# 'er1.a"t a11#u"ts are done almost
instantly.
Cash on Delivery
In this system payment is made only at the time of delivery of products.
!r#du1t de)i:er
"nce a payment has !een accepted the goods or services can !e delivered
in the folloing ays.
• Donload) This is the method often used for digital media products
such as softare& music& movies& or images.
• Shipping) The product is shipped to the customerLs address.
• Drop shipping) The order is passed to the manufacturer or third(party
distri!utor& ho ships the item directly to the consumer& !ypassing the
retailerLs physical location to save time& money& and space.
• In(store pickup) The customer orders online& finds a local store using
locator softare and picks the product up at the closest store. This is the
method often used in the !ricks and clicks !usiness model.
• In the case of !uying an admission ticket one may get a code& or a
ticket that can !e printed out. At the premises it is made sure that the same
right of admission is not used tice.
S.#ppi"/ 1art sste's
• Simple systems allo the offline administration of products and
categories. The shop is then generated as 7T-2 files and graphics that
can !e uploaded to a e!space. These systems do not use an online
data!ase.
• A high end solution can !e !ought or rented as a standalone program
or as an addition to an enterprise resource planning program. It is usually
installed on the companyLs on e!server and may integrate into the
e%isting supply chain so that ordering& payment& delivery& accounting and
arehousing can !e automated to a large e%tent.
• "ther solutions allo the user to register and create an online shop on
a portal that hosts multiple shops at the same time.
• open source shopping cart packages include advanced platforms such
as Interchange& and off the shelf solutions as Satchmo& os'ommerce&
-agento& Pen 'art& "pen'art& Virtue-art& 1lying 'art and $restaShop or
the dual licensed $h$epperShop.
• 'ommercial systems can also !e tailored to ones needs so that the
shop does not have to !e created from scratch. By using a frameork
already e%isting& softare modules for different functionalities reJuired
!y a e! shop can !e adapted and com!ined.
Concerns
,raud a"d se1urit 1#"1er"s
5iven the lack of a!ility to inspect merchandise !efore purchase&
consumers are at higher risk of fraud on the part of the merchant than in a
physical store. -erchants also risk fraudulent purchases using stolen
credit cards or fraudulent repudiation of the online purchase. 4ith a
arehouse instead of a retail storefront& merchants face less risk from
physical theft.
Secure Sockets 2ayer 9SS2: encryption has generally solved the pro!lem
of credit card num!ers !eing intercepted in transit !eteen the consumer
and the merchant. Identity theft is still a concern for consumers hen
hackers !reak into a merchantLs e! site and steal names& addresses and
credit card num!ers. A num!er of high(profile !reak(ins in the ;???s has
prompted some U.S. states to reJuire disclosure to consumers hen this
happens. 'omputer security has thus !ecome a ma*or concern for
merchants and e(commerce service providers& ho deploy
countermeasures such as firealls and anti(virus softare to protect their
netorks.
$hishing is another danger& here consumers are fooled into thinking they
are dealing ith a reputa!le retailer& hen they have actually !een
manipulated into feeding private information to a system operated !y a
malicious party. Denial of service attacks are a minor risk for merchants&
as are server and netork outages.
8uality seals can !e placed on the Shop e! page if it has undergone an
independent assessment and meets all reJuirements of the company
issuing the seal. The purpose of these seals is to increase the confidence of
the online shoppersE the e%istence of many different seals& or seals
unfamiliar to consumers& may foil this effort to a certain e%tent.
A num!er of resources offer advice on ho consumers can protect
themselves hen using online retailer services.
F;;G
These include)
• Sticking ith knon stores& or attempting to find independent
consumer revies of their e%periencesE also ensuring that there is
comprehensive contact information on the e!site !efore using the
service& and noting if the retailer has enrolled in industry oversight
programs such as trust mark or trust seal.
• +nsuring that the retailer has an accepta!le privacy policy posted. 1or
e%ample note if the retailer does not e%plicitly state that it ill not share
private information ith others ithout consent.
• +nsuring that the vendor address is protected ith SS2 9see a!ove:
hen entering credit card information. If it does the address on the credit
card information entry screen ill start ith <7TT$S<.
• Using strong passords& ithout personal information. Another
option is a <pass phrase&< hich might !e something along the lines) <I
shop @ good a !uySS< These are difficult to hack& and provides a variety of
upper& loer& and special characters and could !e site specific and easy to
remem!er.
Although the !enefits of online shopping are considera!le& hen the
process goes poorly it can create a thorny situation. A fe pro!lems that
shoppers potentially face include identity theft& faulty products& and the
accumulation of spy are. -ost large online corporations are inventing
ne ays to make fraud more difficult& hoever& the criminals are
constantly responding to these developments ith ne ays to
manipulate the system. +ven though these efforts are making it easier to
protect yourself online& it is a constant fight to maintain the lead. It is
advisa!le to !e aare of the most current technology and scams out there
to fully protect yourself and your finances.
F;IG
.
"ne of the hardest areas to deal ith in online shopping is the delivery of
the products. -ost companies offer shipping insurance in case the product
is lost or damagedE hoever& if the !uyer opts not to purchase insurance
on their products& they are generally out of luck. Some shipping
companies ill offer refunds or compensation for the damage& !ut it is up
to their discretion if this ill happen. It is important to reali.e that once
the product leaves the hands of the seller& they have no responsi!ility
9provided the product is hat the !uyer ordered and is in the specified
condition:.
Trends
"ne third of people that shop online use a search engine to find hat they
are looking for and a!out one fourth find e!sites !y ord of mouth.
4ord of mouth has !ecome a leading ay !y hich people find shopping
e!sites. 4hen an online shopper has a good first e%perience ith a
certain e!site& si%ty percent of the time they ill return to that e!site to
!uy more.
FHG
Books are one of the things !ought most online. 7oever& clothes& shoes&
and accessories are all very popular things !ought online. 'osmetics&
nutrition products& and groceries are increasingly !eing purchased online.
A!out one fourth of travelers !uy their plane tickets online !ecause it is a
Juick and easy ay to compare airline travel and make a purchase. "nline
shopping provides more freedom and control than shopping in a store.
1rom a sociological perspective& online shopping is argua!ly the most
predicta!le ay to shop.
F
"ne knos e%actly hat e!site to go to& ho
much the product ill cost& and ho long it ill take for the product to
reach them. "nline shopping has !ecome e%tremely routine and
predicta!le& hich is one of its great appeals to the consumer.
The internet has !een around in India since Juite some time no.
7oever& e(commerce has picked up only recently. Shopping online is
sloly groing up in India too. 7oever& due to the relatively slo
penetration of the internet in many part of the country& online shopping is
limited to only ma*or metros in India. 2et us inJuire a!out online
shopping trends in this part of the orld.
+commerce can !e thought of as an activity herein the customer uses the
internet to order a product or service. In most circumstances& the
transaction may happen online also. "nline shopping places a heavy
demand on the use of the internet. "ne ma*or hurdle that online shopping
faces is the security of transactions& since it is necessary for shoppers to
su!mit their financial details on the e! too.
'urrently& only a limited num!er of merchants are doing !usiness online
due to the pro!lems related to technology. The ma*or hurdles faced are
lo penetration of computers in India& lesser amount of credit or de!it
card holders& and many adverse ta%ation rules. Also& many internet users
are reluctant to reveal their financial information online& hich hampers
the groth of the online !usiness.
'onversely& online shopping has a great potential to !ecome !ig in India.
According to many ecommerce o!servers& ecommerce has the potential of
reaching Q =?? !illion in the year ;??C. Accordingly& many enterprises
!oth !ig and small& are opening to the idea of having their B;B and B;'
portals on the internet in a !ig ay.
The internet is also proving to a !oon in disguise for many small and
medium enterprises& hich are *oining hands ith ma*or Indian online
portals to display their products and advertise their services. Analysts
predict that in the ne%t =C(;@ months& several national !rands and retailers
ill have their online shops ready for B;B and B;' transactions. This
indicates that the total num!er of merchants online ould go up to nearly
A?&??? and the total num!er of users ould go up to around A? million.
Analysts also predict that the online shopping market could go up to
nearly USD Q A? million.
"ne ay of looking at online shopping trends is e%amining the figures (
air and rail tickets estimated at I/, I? crore 9I/, I?? million: are sold
online in India every day. Already& a *eellery piece sells every five
minutes& and a mo!ile handset every eight minutes& and a car every nine
hours on the popular commodity site eBAy.com. Another popular site
Indiamart.com materialised !usiness over I/, A&??? crore through leads
generated !y it.
Today many Indians purchase goods like !ooks& electronic gadgets& air
and rail tickets& apparel& gifts& mo!iles& computer peripherals& audio
cassettes and 'Ds. There are more products hich are capa!le of !eing
sold over the internet.
-any people still locate information on the internet& !ut purchase their
products offline at traditional stores. This means that people still are
lacking in confidence to purchase products online. This trend can !e
countered !y providing secure sites for transactions& and prompt customer
service.
"nline shopping is truly catching on in India& traditional !rick and mortar
stores are also getting the hand of doing !usiness online. The trends
demonstrate that traditional stores ill keep on doing sufficient !usiness
hile the online stores increase their virtual presence on the internet.
Survey on latest #arket trend in this recession period$
A survey conducted !y credit card issuer -aster'ard 4orldide has
revealed that online shopping in the country has !een rising despite the
economic slodon. In addition to the convenience that online shopping
offers& the opportunity to !ag si.ea!le discounts is driving more and more
people to click on the internet for hat they ant to purchase& the report
has suggested.
-aster'ardLs <Insights report& economic crisis and preference for online
shopping in Asia#$acific& -iddle +ast and Africa< has noted that in India&
the average freJuency of online purchases increased to ;.> in the fourth
Juarter of ;??C& up from ;.B during the same Juarter in ;??H.
As many as A@ per cent respondents in India said they have used the
internet for the purpose of online shopping& the survey said& adding that
the top three most popular online purchases included airline tickets 9A@R:&
home appliances and electronic products 9@CR: and 'Ds#DVDs#V'Ds
9@@R:. 4hen it came to impulsive shopping& Indians seemed to prefer
home appliances and electronic products 9A=R: and 'Ds#DVDs#V'Ds
9@@R:.
The survey said a ma*or chunk of online shopping conducted in the region
as planned& ith CI per cent of online shoppers admitting that they tend
to plan their shopping in advance and conduct research on their planned
purchases.
-ost online shoppers either !ought items impulsively <hardly ever<
9IBR: or <*ust a couple of times< 9ICR:. The top reason for impulsive
!uying as the discounted prices 9BHR: that online channels afford& the
survey said.
-aster'ard 4orldideLs vice(president and country general manager&
South Asia& T V Seshadri& said& <"nline shopping is groing in popularity
as consumers realise the convenience and ease of shopping online.
Interestingly& amongst all the markets surveyed& India is the only country
here the =C to ;> years age group has the highest average spend on
online shopping. As !usinesses look to gro their online retail presence&
they need to !e aare of the preferences and concerns that drive online
shoppers.<
The survey findings suggest that economic crisis could have made online
shopping more attractive. "ne key reason for shoppers !eing motivated
into online purchases may !e the a!ility to compare prices across multiple
outlets& hence achieving the important o!*ective of <value for money.<
The survey covered A&?IH respondents across =? markets Australia&
'hina& 7ong 3ong& India& 6apan& Singapore& South 3orea& Thailand& UA+
and South Africa ith the latter to !eing ne markets included in ;??C.
/ot only have consumers shopped online more freJuently despite the
economic climate& ith the e%ception in 3orea& Singapore and 7ong
3ong& all other markets surveyed shoed an increased intention for future
online shopping compared to a year ago.
In terms of average spending on online shopping conducted in @8 ;??C&
'hina& Singapore& 3orea and 6apan sa a slight increase& hile 7ong
3ong& Australia& India and Thailand sa a slight decline& the survey
pointed out.
Product suitability
+ate/#r U.S. #")i"e sa)es C200DE
A2FB
Apparel& accessories and footear Q=C.I !illion
'omputer hardare and softare Q=H.; !illion
Autos and auto parts Q=B.H !illion
7ome furnishings Q=?.? !illion
T#ta) pr#du1ts sa)es Ce01)udi"/ tra:e)E G1FD.F 9i))i#"
Travel QHI.A !illion
F=>G
-any successful purely virtual companies deal ith digital products&
9including information storage& retrieval& and modification:& music&
movies& office supplies& education& communication& softare&
photography& and financial transactions. +%amples of this type of
company include) 5oogle& eBay and $aypal. "ther successful marketers
use Drop shipping or affiliate marketing techniJues to facilitate
transactions of tangi!le goods ithout maintaining real inventory.
+%amples include numerous sellers on eBay.
Some non(digital products have !een more successful than others for
online stores. $rofita!le items often have a high value(to(eight ratio&
they may involve em!arrassing purchases& they may typically go to
people in remote locations& and they may have shut(ins as their typical
purchasers. Items hich can fit through a standard letter!o% T such as
music 'Ds& DVDs and !ooks T are particularly suita!le for a virtual
marketer& and indeed Ama.on.com& one of the fe enduring dot(com
companies& has historically concentrated on this field.
$roducts such as spare parts& !oth for consumer items like ashing
machines and for industrial eJuipment like centrifugal pumps& also seem
good candidates for selling online. ,etailers often need to order spare
parts specially& since they typically do not stock them at consumer outlets
(( in such cases& e(commerce solutions in spares do not compete ith
retail stores& only ith other ordering systems. A factor for success in this
niche can consist of providing customers ith e%act& relia!le information
a!out hich part num!er their particular version of a product needs& for
e%ample !y providing parts lists keyed !y serial num!er
$roducts less suita!le for e(commerce include products that have a lo
value(to(eight ratio& products that have a smell& taste& or touch
component& products that need trial fittings T most nota!ly clothing T
and products here colour integrity appears important. /onetheless&
Tesco.com has had success delivering groceries in the U3& al!eit that
many of its goods are of a generic Juality& and clothing sold through the
internet is !ig !usiness in the U.S. Also& the recycling program
'heapcycle sells goods over the internet& !ut avoids the lo value(to(
eight ratio pro!lem !y creating different groups for various regions& so
that shipping costs remain lo.
+#"1)usi#"
O")i"e s.#ppi"/ is a different e%perience and you can make the shopping
creative over the internet as you get used to it. There can !e lot of
appre.e"si#"s a!out online shopping hen you get in to it for the $irst
ti'e. As you e%perience more and more of it those apprehensions get
dissapeared sloly. ,emem!er that if you stick to the !asics& online
shopping !ecome '#re e"H#a9)e a"d easier than real(orld shopping.
The internet is also proving to a !oon in disguise for many small and
medium enterprises& hich are *oining hands ith ma*or Indian online
portals to display their products and advertise their services. Analysts
predict that in the ne%t =C(;@ months& several national !rands and retailers
ill have their online shops ready for B;B and B;' transactions. This
indicates that the total num!er of merchants online ould go up to nearly
A?&??? and the total num!er of users ould go up to around A? million.
Analysts also predict that the online shopping market could go up to
nearly USD Q A? million.
"ne ay of looking at online shopping trends is e%amining the figures (
air and rail tickets estimated at I/, I? crore 9I/, I?? million: are sold
online in India every day. Already& a *eellery piece sells every five
minutes& and a mo!ile handset every eight minutes& and a car every nine
hours on the popular commodity site eBAy.com. Another popular site
Indiamart.com materialised !usiness over I/, A&??? crore through leads
generated !y it.
Today many Indians purchase goods like !ooks& electronic gadgets& air
and rail tickets& apparel& gifts& mo!iles& computer peripherals& audio
cassettes and 'Ds. There are more products hich are capa!le of !eing
sold over the internet.
-any people still locate information on the internet& !ut purchase their
products offline at traditional stores. This means that people still are
lacking in confidence to purchase products online. This trend can !e
countered !y providing secure sites for transactions& and prompt customer
service.
"nline shopping is truly catching on in India& traditional !rick and mortar
stores are also getting the hand of doing !usiness online. The trends
demonstrate that traditional stores ill keep on doing sufficient !usiness
hile the online stores increase their virtual presence on the internet.
O")i"e S.#ppi"/ %% !atter"s3 Tre"ds a"d ,uture Gr#<t.
This report e%amines e(commence trendsE and identifies the drivers and
!arriers to online pur( chases in key markets in the region. Both con sumer
!ehavior in relation to e(commerce& and e(commerce outlook in the region
are analy.ed.
The role of credit cards in e(commerce and their importance in the online
shopping regime is also e%amined. Both desk top research and an online
survey ere used in preparing this report. The key findings are)
U
"nline shopping is a groing trend in the region& ith BIR of survey
respondents report( ing that they shop online at least occasionally.
U
The
key drivers of online shopping groth are mainly internet penetration&
income levels and cultural factors.
U
7uge groth in online shopping is e%pected& led !y 'hina and India
!ut ith other countries such as Thailand also likely to e%hi!it strong
grothVV as incomes and internet penetration rise.
U
The survey suggests a loer average tendency in the region for
opportunistic purchases ith online shopping compared to offline. But
there are differences ithin countries hich suggest that the degree of
financial sophistication is a key in influencing the degree of
opportunistic spending.
= U
'redit cards are a preferred mode of payment
for online shopping. If security concerns ere allayed& there ould !e
su!stantially more online shopping and more of this online shop( ping
ould !e paid for ith credit cards.
"vervie of "nline Shopping
O")i"e S.#ppi"/%% De$i"iti#"s a"d !r#1esses "nline shopping can !e
defined as the process of purchasing goods or services over the inter(
ABOUNT EBAY INDIAIS NO. 1 E-S6O!ING !O(TA4
eBay& the WorldKs largest personal online trading communityK& as
initially set up in =>>A ith collectors in mind. It ena!led easier access to
collecti!les here the traditional inefficiencies of person(to(person trading
such as geographical fragmentation and imperfect knoledge could !e offset
through computer mediated communication.
eBay initially aimed to improve the market liJuidity for collecta!les&
hich are more pro!lematic to e%change than commodity goods such as ne
!ooks& 'Ds and other mass(produced& uniform consumer items. This as
highlighted !y eBay founder& $ierre -idyearKs story of the creation of eBay
V !ased around his girlfriendKs desire to more easily !uy and sell collecta!le
pea dispensers. 4hile this story turned out to !e a $, e%ercise and
fa!rication to get the nely founded eBay company copy space& collecti!les
as the initial market eBay moved into& !efore also targeting the ne goods
market.
The collecti!les market used to !e very important to eBay V serious
collectors and small dealers accounted for C?R of total eBay revenues even
though they only represented ;?R of registered users in ;???. The Internet
auction site !ecame the ay to esta!lish prices for items such as collecti!les
ith uncertain values cf. Smith& and collectors are regarded as a natural
demographic for Internet auctions V !eing 9geographically scattered and
highly motivated:. Pukin 9;??@: suggests that eBay !ecomes the antithesis
of standardi.ed& fi%ed price& !randed goods shopping& offering a narrative of
discovery& e%ploration and accident that re(romanticists shopping ( and also
fits in ith collecting motivations.
+Bay represents an e(commerce mainstay and household name. It has
potentially revolutioni.ed the ay e shop for second(hand and collecti!le
items V eBay is a digital intermediary hich has created opportunities for
market transactions to occur in a ay that did not e%ist !efore these type of
market places& underpinned !y Internet technologies. This orking paper
aims to e%plore the impact
of eBay on collecting and specific collecting communities V the vintage
radio and stamp# cover collecting communities V in terms of collecting
practices and rituals. Additionally& it e%amines the issues eBay raises for a
traditional trading intermediary V a cover manufacturer# dealer ( hich has
repositioned itself for the Internet era& hile maintaining a core mail order
!usiness. Although there have !een calls for more research on consumers in
virtual orlds and the movement of ork such as BelkKs 9=>>=: 'onsumer
Behavior "dyssey into virtual domains relatively little academic literature
e%ists on the impact of the Internet and eBay in terms f collecting. The
Southest(Te%as $opular 'ulture Association and American 'ulture
Association called for papers on the impact of sites like eBay on collecting.
The authorsK on L'ultures of eBayL conference featured to other
orking papers on the Internet and collecting) WeBay as a la!orer of love) A
study of collectors& their collections and their relationship ith eBayK and
WThe virtual spaces of telecommunications enthusiasm) the internet& 0ahooS
5roups and eBayK. Denegri(3nott and 7unter 9;??A: consider eBay as a
colla!orator(la!orer in the collecting process ( helping collectors find their
coveted items.
T6E !(O+ESS O, eBa BUYING @ SE44ING
I"tr#du1ti#":
It is ne site of +('ommerce on hich anyone can search any product for
!uying hich is availa!le on this site. So this is as site on hich company
sells their product on(line. At this site interested people !id for the product
and ho in& get that product and called the oner of that product.
Bui"/ pr#1ess:
=. 1irstly you have to register for that product and after that you have to
sign up on pay pal site. This is the format of paypal site.
;. Se)e1t a 1ate/#r : firstly !uyer has to select the type of product in
hich he is interested. The hole information regarding the product
like item no.& inning !id& no of !idder etc.
I. 5rite a tit)e ) There should rite the name of title hich he ants to
purchase.
@. Ite' spe1i$i1s ) After selecting the title& have to specific a!out the
item& for e%) if you ant to purchase a doll then your title is doll !ut
the specific item is Bar!ie doll.
A. Ite' des1ripti#" ) here you have to mention the si.e of the product&
some characteristic of the product.
B. Add pi1tures ) !y the adding picture you can specify your product and
you can !uy the same product.
H. !ri1i"/ a"d durati#" ) in this you !id your price for that product&
time and date.
C. Ite' )#1ati#" ) 1rom here you are using this tool and !idding for
that product& the location should !e mention there.
>. !a'e"t a"d s.ippi"/ i"$#r'ati#" ) The total price a!out payment
and transportation cost should !e mention in this shipping and
payment details
This as the hole process to !uy on e(!ay for anyone.
T6E !(O+ESS O, SE44ING ON eBa
By e(!ay any vendor can sell his product. 1or selling firstly have to fill a
form named Msell your itemN& in this form you have to fill some information
But there are some additional orks also hen it complete then selling
process ill finish. 4hich are)
?'ommunicate ith the Buyer
?,eceive $ayment
? Ship Item to the Buyer
? 2eave Buyer 1eed!ack
(O4E O, eBa
IN+(EASED 4ITE(A+Y (ATE %
Due to increase in literacy rate O aareness level people kno a!out the use
of net O other facilities availa!le for them. It increases the market share of
eBay.
DEMONST(ATION E,,E+T -
According present scenario every organi.ation ants to demonstrate their
product on this type online trading community.
4A+K O, TIME -
Due to lack of time from the consumer side& they do not ant to spend their
too much time on different products.
Sa:i"/ #$ ti'e %
4ith the help of eBay it is also a useful tool for the traders they can
demonstrate their product in a ide market place.
MONEY T(ANSA+TIONS V
4ith the help of this online trading company e can easily receive
electronically from around the orld ith in a short period of time.
(O4E O, DI(E+T SE44ING
!E(IS6AB4E !(ODU+T %
By eBay concept e can not sell to perisha!le products !ecause it takes
time to deliver the goods and mainly perisha!le goods items and short
span so it !ecome typical to sell them through eBay selling.
!E(SONA4 (E4ATIONS-
-ainly e Indians are friendly in nature so here personal relation # pu!lic
relation play an important role in marketing of goods. But eBay lacks at
this step and this lack affect to eBay.
B6A(AT-
/o economists have divided to our country in to to eco(areas& I/DIA
and B7A,AT. I/DIA covers tier one and tier ; cities and high civili.ed&
ell moderni.ed part of country& here eBay seems effective.
B7A,AT covers tier I cities and rural I/DIA here moderni.ation
is still as aiting guest and hi tech !usiness are dreams& !ut H?R & hile
the situation for eBay concept are not favora!le there due to poor scale
and small !usiness firms.
E'p)#'e"t V
+mployment gives you ealth and !usiness !ut in B7A,AT there is
under employment so people have enough time and insufficient ealth so
the eBay concept presently is *ust like Mincu!ated !a!yN& !ut it ould
survive.
eBa AD&ANTAGES
Some advantages that can !e achieved from e(commerce include)
Bei"/ a9)e t# 1#"du1t 9usi"ess 2F 0 J 0 ?D*. +(commerce systems can
operate all day every day. 0our physical storefront does not need to !e
open in order for customers and suppliers in electronic !usiness.
A11ess t.e /)#9a) 'ar>etp)a1e. It is possi!le to do !usiness ith any
!usiness or person ho is connected to the Internet. Simple local
!usinesses such as specialist record stores are a!le to market and sell
their offerings internationally using e(commerce. This glo!al opportunity
is assisted !y the fact that& users are not charged according to the distance
over hich they are communicating.
Speed. +lectronic communications allo messages to negotiate the orld
almost instantly. 'ommunications delay is not a part of the Internet # e(
commerce orld.
Mar>et spa1e. The market in hich e!(!ased !usinesses operate is the glo!al market. -any
!usinesses are already facing international competition from e!(ena!led !usinesses.
Opp#rtu"it t# redu1e 1#sts. The Internet makes it very easy to Lshop aroundL for products
and services that may !e cheaper or more effective than e might otherise settle for.
+#'puter p)at$#r'-i"depe"de"t. 'omputers have the a!ility to communicate via the
Internet independent of operating systems and hardare. 'ustomers are not limited !y e%isting hardare
systemsL.
E$$i1ie"t app)i1ati#"s de:e)#p'e"t e":ir#"'e"t ( LIn many respects& applications
can !e more efficiently developed and distri!uted !ecause it can !e !uilt ithout regard to the customerLs or
the !usiness partnerLs technology platform. ,ather& Internet(related technologies provide this capa!ility
inherently through automatic deployment of softare updatesL.
A))#<i"/ 1ust#'er se)$ ser:i1e a"d K1ust#'er #uts#ur1i"/K. $eople can
interact ith !usinesses at any hour of the day that it is convenient to them& and !ecause these interactions
are initiated !y customers& the customers also provide a lot of the data for the transaction that may otherise
need to !e entered !y !usiness staff. This means that some of the ork and costs are effectively shifted to
customersE this is referred to as Lcustomer outsourcingL.
Steppi"/ 9e#"d 9#rders t# a /)#9a) :ie<. Using aspects of e(commerce technology
can mean your !usiness can source and use products and services provided !y other !usinesses in other
countries. This seems o!vious enough to say& !ut people do not alays consider the implications of e(
commerce. 1or e%ample& in many ays it can !e easier and cheaper to host and operate some e(commerce
activities outside Australia. 1urther& !ecause many e(commerce transactions involve credit cards& many
!usinesses in Australia need to make arrangements for accepting online payments national competitiveness
and the competitiveness of our industries and !usinesses.
!.si1a) pr#du1t3 supp)ier @ de)i:er u"1ertai"t. 4hen you alk out of
A "e< 'ar>eti"/ 1.a""e). The Internet provides an important ne channel
to sell to consumers. $eterson et al. 9=>>>: suggest that& as a marketing
channel& the Internet has the folloing characteristics)
• the a!ility to ine%pensively store at different virtual locations
• the availa!ility of poerful and ine%pensive means of searching&
organi.ing& and disseminating such information
• interactivity and the a!ility to provide information on demand
• the a!ility to provide perceptual e%periences that are far superior to a
printed catalogue& although not as rich as personal inspection
• the capa!ility to serve as a transaction medium
• the a!ility to serve as a physical distri!ution medium for certain goods
9e.g.& softare:
• relatively lo entry and esta!lishment costs for sellers
• /o other e%isting marketing channel possesses all of these
characteristics.
eBaDISAD&ANTAGES AND +ONST(AINTS
Some disadvantages and constraints of e(commerce
include the folloing.
Ti'e $#r de)i:er #$ p.si1a) pr#du1ts. eBay is often used to !uy goods
that are not availa!le locally from !usinesses all over the orld& meaning
that physical goods need to !e delivered& hich takes time and costs money.
In some cases there are ays around this& for e%ample& ith electronic files
of the music or !ooks !eing accessed across the Internet& !ut then these are
not physical goods.
+ON+4USION
B(I+K-B(EAKING
7ere M!rick !reakingN means here *ust to initial to oo the market from
direct selling !y eBay concept in our country and it ill gro positively
ith our moderni.ation.
DI(E+T SE44ING L EBAY SE44ING %
7ere direct sellingX eBay means presently in our country the direct selling
concept has greater market share then eBay concept ill take time to effect.
EMUI4IB(IUM-
A time ould come hen there ill !e an eJuili!rium !eteen direct selling
and eBay concept in the country !ecause !oth have some specific
characteristics irrespective ith each other as nature of product& reach&
impact& literacy rate etc means !ecause every thing cannot !e availa!le on e(
Bay to sell so it ould !e.
OBNE+TI&ES
To find out the interest shon !y the individuals and societies in online
shopping
To the position of e!ay in e(shopping sector.
To study the products offered in online shopping
To kno the !ehavior of consumer regarding online Shopping
To assess the level of customer perception toards eshopping
(ESEA(+6 MET6ADO4GY
• (ESEA(+6 DESIGN:
,esearch design is a research plan hich reJuires that )
• 4hat data are to !e collected D
• 4hat research techniJues and instruments are to !e used D
• 7o a sample is to !e selected D and
• 7o information is to !e collected from this sample D
A research design specifies the methods and procedures for conducting a particular
study. Br#ad) spea>i"/3 resear1. desi/" 1a" 9e /r#uped i"t# t.ree 1ate/#ries-
e0p)#rat#r resear1.3 des1ripti:e resear1. a"d 1asua) resear1..
• (ESEA(+6 INST(UMENT
+%ploratory research is used in this pro*ect report in order to understand the
perceptions of different consumers toards !ike industry& and their !ehavior
pattern !y studying their different demographics 9 such as V age& occupational&
income level etc.:. This is the most popular type of research techniJue& generally
used in survey research design and most useful in descri!ing the characteristics of
consumer !ehavior.
The methods used ere folloing)
? 8uestionnaire method
? Data collection.
? Direct Interaction ith the users.
• MUESTIONNAI(E MET6OD
This is the simplest method of collecting data. In this method a list of printed
Juestions is placed to the people& in hich Juestions are asked ith the given
o!*ective ansers& from hich people have to select the !est option. This is to !e
found that Juestionnaire must !e interesting& o!*ective !ased& unam!iguous& ease
to complete and generally not !urdensome& *ust to motivate respondents to anser
truthfully and completely !ecause consumers are often unilling to give time for
responding the surveys. The format and ording of Juestionnaire should !e simple
and Juestions are arranged in a proper seJuence so that consumers can understand
it easily.
The intervie as conducted !y filling up the Juestionnaire !y different categories
of people and they are given full li!erty to fill up these Juestionnaire.
DATA +O44E+TION
!E(SONA4 INTE(A+TION:
$ersonal interaction means direct communication ith the consumers to get some
information a!out their needs and reJuirement. In this method face to face
communication takes place.
4e also go to the market and to near people and interact ith them personally&
a!out their pro!lem and hat they actually need.
SE+ONDA(Y-DATA
• Data already collected !y any person or institution is called secondary data.
• These data are often used !y the investigators and other people having its
need.
• The advantages of the secondary data can !e VIt is economical& !oth in
terms of money and time spent.
• The researcher of the report also did the same and collected secondary data
from various internet sites.
• The researcher of the report also visited various li!raries for collection of
the introduction part.
• The sources of secondary data ere
• Books&
• -aga.ines and
• Internet sites.
• The secondary data could !e collected from 6ournals& ,eports& and various
pu!lications.
SAM!4E SIOE !4ANNING:
Sampling is simply the process of learning a!out the population on the !asis
of sample dran from it. It is that part of the universe YpopulationZ hich is
selected for the purpose of investigation. Sampling may !e defined as a part of the
hole YpopulationZ that represents all the features of the hole under
consideration.
Sample si.e) *0
Approach) +#":e"ie"1e sa'p)i"/
,INDINGS @ INTE(!(ETATION
1. D# #u >"#< a9#ut #")i"e s.#ppi"/8
70%
30%
Yes No
7ave you purchased any items through e(shopping
30%
70%
Yes No
Are you satisfied ith the items purchased through online shopping
Yes
No
.
Are the products of "nline shopping are mostly costly
50% 50%
Yes No
I. Are you satisfied ith the items purchased through "nline shopping
(a) Yes
40%
(b) No
60%
@. 7o did you come to kno a!out 2i!erty
(a) Advertisement 50%
(b) Word of Mouth 30%
(c) Referred by your
company / riend
!0%
(a)
Advertiseme
nt
50%
(b) Word of
Mouth
30%
(c) Referred
by your
company /
Friend
0%
5. Do you kno a!out Bata Shoes
0es H?R
/o I?R
Yes
No
.
B. 7o do you like the your product purchased through e(shopping as
compare to another !rand D
(a) "ood #0%
(b) Avera$e 50%
% &ad '0%
Su//esti#"s
a. There should !e more aareness for online shopping.
!. /ormally e(shopping products are more costly as compare to
products availa!le in open market
c. 'ompanies should improve their delivery system.
+ON+4USION
"nline shopping has many distinct and uniJue advantages and disadvantages
hich separate it from traditional retail shopping)
U
"n the plus side& online
stores are availa!le ;@#H& unlike traditional retailers& and can !e accessed
from the convenience of oneKs on home. Second& searching and
!rosing for products online is often Juicker than in a phys( ical store&
although consumers ith dial(up internet access may have trou!le accessing
con( tent(rich e!sites Juickly
MUESTIONNAI(E
Na'e:
O11upati#":
+#"ta1t "#.-
D# #u >"#< a9#ut #")i"e s.#ppi"/
0es
/o
6a:e #u pur1.ase a" pr#du1t #$ #")i"e s.#ppi"/ 4i9ert 8
0es
/o
6#< did #u 1#'e t# >"#< a9#ut es.#ppi"/
9a: Advertisement
9!: 4ord of -outh
9c: ,eferred !y your
company # 1riend
6#< d# #u ra"> O")i"e s.#ppi"/
9a: 5ood
9!: Average
[ Bad
Is money transaction is safe in e(shopping
9a: 0es
9!: /"
9c: 'antKs say
BIB4IOG(A!6Y
5EBSITES:
• .eshopping.com
• .e!ay.com
• Annual report of the e!ay
doc_724682903.doc
ON
ONLINE SHOPPING
SESSION: 2009-2010
SUBMITTED TO: SUBMITTED BY:
Mrs. Gurpreet Kaur Adita !a"de
Asst. !r#$ess#r BBA % I& Se'.
(#)) N#. : 1010*0*2
+E(TI,I+ATE
Date………………
This is to certified that Adita !a"de is a regular student of B.B.A IV Sem and
she has completed the market survey report on the topic -O")i"e S.#ppi"/
E0perie"1e a"d +ust#'ers Satis$a1ti#" 2 Under my supervision.
It is certified that the hole market survey report is !ased on his individual efforts
and the analysis is found up to mark.
I therefore recommend that the market survey report preparer !y the candidate !e
sent for evaluation.
Mrs. Gurpreet Kaur
Asst. !r#$ess#r
BBA Depart'e"t
(BMI3 BA(EI44Y.
!(E,A+E
"nline shopping in the Asia#$acific region is set to e%pand rapidly in coming
years& underpinned
!y rapid economic groth& ith 'hina and India to lead the region. In
addition& internet penetration rates in less(developed countries like 'hina&
India and Thailand are poised to improve significantly as internet usage
gros and associated infrastructure is developed in the region) this ill also
!oost online shopping rates.
In this pro*ect I have try to discuss a!out latest trends in "nline Shopping
+%perience and 'ustomers Satisfaction
A+KNO54EDGEMENT
I ould like to take this opportunity to e%press my deep gratitude to all those
ho& directly or indirectly made this pro*ect possi!le.
I have got considera!le help and support in making this pro*ect report a
reality from many people.
I ould like to thank Mrs. Gurpreet Kaur 3 ,B-I& Bareilly hose
endeavor for perfection& under fatiga!le .eal& innovation and dynamism
contri!uted in a !ig ay in completing this pro*ect. This ork is the
reflection of his thought& ideas& concept and a!ove all his modest effort.
+ONTENT
? INT(ODU+TION
? '"-$A/0 $,"1I2+
? 3/"42+D5+ AB"UT '"-$A/0
? "B6+'TIV+ "1 T7+ SU,V+0
? (ESEA(+6 MET6ODO4OGY
? 70$"T7+SIS
? '"22+'TI"/ "1 DATA
? 8U+STI"//AI+,
? DATA ANA4YSIS AND INTE(!(ETATION
? +ON+4USION
? ,INDING AND SUGGESSION
? BIB4IOG(A!6Y
? A!!ENDI7
Introduction
5.at is e-s.#ppi"/ 8
The use of computers and internet have !een e0pa"di"/ si/"i$i1a"t)
over the years. $resently internet has !een used idely as a 'ea"s #$
1#''u"i1ati#"& as a potential s#ur1e #$ i"$#r'ati#"& as a 'ea"s #$
e"tertai"t'e"t and many more. 4ith in fe years after e%istence of
internet& !usiness men reali.ed the possi!ilities of using i"ter"et as a
'ediu' #$ 9usi"ess. This idea kick started the first #")i"e 9usi"ess
ventures.
-odern technology has !een developed to the e%tent that even s.#ppi"/
made possi!le #:er t.e i"ter"et. The process of s.#ppi"/ d#"e #:er t.e
i"ter"et is called online shopping. Both products and services can !e
purchased !y online shopping. "nline shopping is used for !usiness to
!usiness transactions or !usiness to customer transactions ith
applications of e)e1tr#"i1 1#''er1e. 9 e+#''er1e :
O")i"e s.#ppi"/ is the process consumers go through to purchase
products or services over the Internet. An online shop& eshop& e(store&
internet shop& e!shop& e!store& online store& or virtual store evokes the
physical analogy of !uying products or services at a !ricks(and(mortar
retailer or in a shopping mall.
The metaphor of an online catalog is also used& !y analogy ith mail
order catalogs. All types of stores have retail e! sites& including those
that do and do not also have physical storefronts and paper catalogs.
"nline shopping is a type of electronic commerce used for !usiness(to(
!usiness 9B;B: and !usiness(to(consumer 9B;': transactions.
6ist#r #$ O")i"e S.#ppi"/
6ist#r #$ O")i"e S.#ppi"/ starts not so long ago. Tim Berners(2ee
created <The World Wide Web Browser< in =>>?. In=>>@ fe other
developments took place. "nline !ank & the first of its kind opened this
year. Another development as opening of #")i"e pi;;a s.#p !y pi..a
hut.
In the same year /etscape introduced SS4 e"1rpti#" to ena!le
encryption over the data transferred online. This later !ecame the
necessity of online shopping. In =>>A& Ama.on started operation& one of
the largest online shopping mall no. Then in =>>B e!ay started its online
shopping portal.
=>>C itnessed use of e)e1tr#"i1 p#sta/e sta'ps& here people can
donload and print postal stamps after paying nominal fee. In =>>> the
first online shop in UK launched.
Design
4hy does electronic shopping e%istD 1or customers it is not only !ecause
of the high level of convenience& !ut also !ecause of the !roader
selectionE competitive pricing and greater access to information.
F>GF=?G
. 1or
organi.ations it increases their customer value and the !uilding of
sustaina!le capa!ilities& ne%t to the increased profits
F==G
.
I"$#r'ati#" )#ad
Designers of online shops should consider the effects of information load.
-ehra!ian and ,ussel 9=>H@: introduced the concept of information rate
9load: as the comple% spatial and temporal arrangements of stimuli ithin
a setting.
F=;G
The notion of information load is directly related to concerns
a!out hether consumers can !e given too much information in virtual
shopping environments. 'ompared ith conventional retail shopping&
computer shopping enriches the information environment of virtual
shopping !y providing additional product information& such as
comparative products and services& as ell as various alternatives and
attri!utes of each alternative& etc.
F=IG
To ma*or su!(dimensions have !een identified for information load)
comple%ity and novelty.
F=@G
'omple%ity refers to the num!er of different
elements or features of a site& hich can !e the result of increased
information diversity. /ovelty involves the une%pected& suppressing& ne&
or unfamiliar aspects of the site. A research !y 7uang 9;???: shoed that
the novelty dimension kept consumers e%ploring the shopping sites&
hereas the comple%ity dimension has the potential to induce impulse
purchases
F=IG
.
+#"su'er e0pe1tati#"s
The main idea of online shopping is not in having a good looking e!site
that could !e listed in a lot of search engines and it is not a!out the art
!ehind the site.
F=AG
It also is not only *ust a!out disseminating information&
!ecause it is all a!out !uilding relationships and making money.
F=AG
-ostly& organi.ations try to adopt techniJues of online shopping ithout
understanding these techniJues and#or ithout a sound !usiness model.
F=AG
,ather than supporting the organi.ationKs culture and !rand name& the
e!site should satisfy consumerLs e%pectations.
F=AG
-any researchers
notify that the uniJueness of the e! has dissolved and the need for the
design& hich ill !e user centered& is very important.
F=AG
'ompanies
should alays remem!er that there are certain things& such as
understanding the customerKs ants and needs& living up to promises&
never go out of style& !ecause they give reason to come !ack.
F=AG
And the
reason ill stay if consumers alays get hat they e%pect.
-cDonaldi.ation theory can !e used in terms of online shopping& !ecause
online shopping is !ecoming more and more popular and e!site that
ants to gain more shoppers ill use four ma*or principles of
-cDonaldi.ation) efficiency& calcula!ility& predicta!ility and control.
"rgani.ations& hich ant people to shop more online for them& should
consume e%tensive amounts of time and money to define& design& develop&
test& implement& and maintain e!site.
F=AG
Also if company ants their
e!site to !e popular among online shoppers it should leave the user ith
a positive impression a!out the organi.ation& so consumers can get an
impression that the company cares a!out them.
F=AG
The organi.ation that
ants to !e accepta!le in online shopping needs to remem!er& that it is
easier to lose a customer then to gain one.
F=AG
2ots of researchers state that
even hen site as a Mtop(ratedN& it ould go nohere if the organi.ation
failed to live up to common etiJuette& such as returning e(mails in a timely
fashion& notifying customers of pro!lems& !eing honest& and !eing good
steards of the customersK data.
F=AG
"rgani.ations that ant to keep their
customers or gain ne ones try to get rid of all mistakes and !e more
appealing to !e more desira!le for online shoppers. And this is hy many
designers of e!shops considered research outcomes concerning
consumer e%pectations. ,esearch conducted !y +lliot and 1oell 9;???:
revealed satisfactory and unsatisfactory customer e%periences.
F=BG
User i"ter$a1e
It is important to take the country and customers into account. 1or
e%ample& in 6apan privacy is very important and emotional involvement is
more important on a pensionKs site than on a shopping site.
F==G
/e%t to that&
there is a difference in e%perience) e%perienced users focus more on the
varia!les that directly influence the task& hile novice users are focusing
more on understanding the information.
F=HG
There are several techniJues for the inspection of the usa!ility. The ones
used in the research of 'hen O -acredie 9;??A: are 7euristic evaluation&
cognitive alk through and the user testing. +very techniJue has its on
9dis
advantages and it is therefore important to check per situation hich techniJue is appropriate.
F=CG
4hen the customers ent to the online shop& a couple of factors
determine hether they ill return to the site. The most important factors
are the ease of use and the presence of user(friendly features
O")i"e S.#ppi"/ Ad:a"ta/es
+#":e"ie"1e
"nline stores are usually availa!le ;@ hours a day& and many consumers
have Internet access !oth at ork and at home. A visit to a conventional
retail store reJuires travel and must take place during !usiness hours.
Searching or !rosing an online catalog can !e faster than !rosing the
aisles of a physical store. 'onsumers ith dial(up Internet connections
rather than !road!and have much longer load times for content(rich e!
sites and have a considera!ly sloer online shopping e%perience.
Some consumers prefer interacting ith people rather than computers
9and vice versa:& sometimes !ecause they find computers hard to use. /ot
all online retailers have succeeded in making their sites easy to use or
relia!le.
In most cases& merchandise must !e shipped to the consumer& introducing
a significant delay and potentially uncertainty a!out hether or not the
item as actually in stock at the time of purchase. Bricks and clicks stores
offer the a!ility to !uy online !ut pick up in a near!y store. -any stores
give the consumer the delivery companyLs tracking num!er for their
package hen shipped& so they can check its status online and kno
e%actly hen it ill arrive. 1or efficiency reasons& online stores generally
do not ship products immediately upon receiving an order. "rders are
only filled during arehouse operating hours& and there may !e a delay of
anyhere from a fe minutes to a fe days to a fe eeks !efore in(
stock items are actually packaged and shipped. -any retailers inform
customers ho long they can e%pect to ait !efore receiving a package&
and hether or not they generally have a fulfillment !acklog. A Juick
response time is sometimes an important factor in consumersL choice of
merchant. A eakness of online shopping is that& even if a purchase can
!e made ;@ hours a day& the customer must often !e at home during
normal !usiness hours to accept the delivery. 1or many professionals this
can !e difficult& and a!sence at the time of delivery can result in delays& or
in some cases& return of the item to the retailer. Automated delivery
!ooths& such as D72Ls $ackstation& have tried to address this pro!lem.
In the event of a pro!lem ith the item ( it is not hat the consumer
ordered& or it is not hat they e%pected ( consumers are concerned ith
the ease ith hich they can return an item for the correct one or for a
refund. 'onsumers may need to contact the retailer& visit the post office
and pay return shipping& and then ait for a replacement or refund. Some
online companies have more generous return policies to compensate for
the traditional advantage of physical stores. 1or e%ample& the online shoe
retailer Pappos.com includes la!els for free return shipping& and does not
charge a restocking fee& even for returns hich are not the result of
merchant error. 9/ote) In the United 3ingdom& "nline shops are
prohi!ited from charging a restocking fee if the consumer cancels their
order in accordance ith the 'onsumer $rotection 9Distance Selling: Act
;???.
F;?G
:
I"$#r'ati#" a"d re:ie<s
"nline stores must descri!e products for sale ith te%t& photos& and
multimedia files& hereas in a physical retail store& the actual product and
the manufacturerLs packaging ill !e availa!le for direct inspection
9hich might involve a test drive& fitting& or other e%perimentation:.
Some online stores provide or link to supplemental product information&
such as instructions& safety procedures& demonstrations& or manufacturer
specifications. Some provide !ackground information& advice& or ho(to
guides designed to help consumers decide hich product to !uy.
Some stores even allo customers to comment or rate their items. There
are also dedicated revie sites that host user revies for different
products.
In a conventional retail store& clerks are generally availa!le to anser
Juestions. Some online stores have real(time chat features& !ut most rely
on e(mail or phone calls to handle customer Juestions.
!ri1e a"d se)e1ti#"
"ne advantage of shopping online is !eing a!le to Juickly seek out deals
for items or services ith many different vendors 9though some local
search engines do e%ist to help consumers locate products for sale in
near!y stores:. Search engines and online price comparison services can
!e used to look up sellers of a particular product or service.
Shoppers find a greater selection online in certain market segments 9for
e%ample& computers and consumer electronics
F;=G
: and in some cases loer
prices. This is due to a rela%ation of certain constraints& such as the si.e of
a <!rick(and(mortar< store& loer stocking costs 9or none& if drop shipping
is used:& and loer staffing overhead.
Shipping costs 9if applica!le: reduce the price advantage of online
merchandise& though depending on the *urisdiction& a lack of sales ta%
may compensate for this.
Shipping a small num!er of items& especially from another country& is
much more e%pensive than making the larger shipments !ricks(and(mortar
retailers order. Some retailers 9especially those selling small& high(value
items like electronics: offer free shipping on sufficiently large orders.
The ma*or ad:a"ta/e #$ #")i"e s.#ppi"/ is the 1#":e"ie"1e it offers. By
sitting !ack at home you can no shop anything from candles to vehicles
!y several clicks of mouse !uttons.
The orry you may have on travelling& traffic !locks and parking
constraints in real orld shopping can !e a:#ided hile shopping online.
4ith online shopping& you need not have to orry a!out eather
conditions as ell.
Another !ig advantage of online shopping is the $)e0i9i)it #$ s.#ppi"/.
Unlike offline shops& online shops have no holidays& closing times or any
other pro!lems. 0ou can shop ;@hrs a day& H days a eek and IBA days a
year. Is nLt that ama.ing to have a shop open alays D
"ne of the advantage of online shopping is the $a1i)ities availa!le for
product& price 1#'paris#"s. Since so many companies have come up
ith the facilities of online shopping& the pri1e 1#'paris#" and =ua)it
1#'paris#" of the products and services are possi!le. Some online malls
also provide 1ust#'er re:ie<s a!out each product& thus you can easily
find out hat other customers think a!out the product or services !efore
!uying it.
0ou can efficiently use these facilities to decide heather a product or
service is <#rt. the price Juoted. If you are lucky you ill !e also getting
a'a;i"/ #$$ers from different online stores that ill effectively reduce
the price than !uying offline.
In short 3 #")i"e s.#ppi"/ offers '#re 1#":e"ie"1e and sa:e ti'e in
comparison ith real ( orld shopping.
O")i"e S.#ppi"/ Disad:a"ta/es
"ne of the important disadvantages of online shopping is )a1> #$
pers#"a) i"tera1ti#". Another disadvantage of online shopping is
ta"/i9i)it $a1t#r. Seeing the picture of a product is far inferior to that of
seeing it in real orld. 4hen you go for real orld shopping& you can
actually touch& feel or sense it ith different means& !ut for online
shopping you can only vie the e)e1tr#"i1 1ata)#/ues. +venthough this
pro!lems has !een rectified to certain e%tent !y use of ?D pr#du1t
1ata)#/ues& some online malls still uses the old fashioned images in
product catalogues.
Another factor is s.ippi"/ 1#st. If the shipping cost is more than that you
need to actually carry the product home& then online shopping !ecome un
attractive.
0et another concern is a!out #")i"e se1urit. If you are shopping online&
you have to take additional care a!out your credit cards so that to protect
from u"aut.#ri;ed usa/e.
"nline shopping lacks the rea) <#r)d s.#ppi"/ e0perie"1e that e get
shopping ith relatives and friends offline. +venthough online shopping
has several disadvantages& the ad:a"ta/es #ut "u'9er the disadvantages
and thus more and more people started !uying online.
O")i"e S.#ppi"/ Guide - Steps 5.e" Bui"/ O")i"e
O")i"e s.#ppi"/ malls are *ust an electronic catalogue of products.
7ence to facilitate easier access to reJuired products& almost all ma*or
online malls a))#<s sear1.i"/ the entire catalogue.
The first step in the online shopping is to sear1. $#r t.e spe1i$i1 product
categories using integrated search function. "nce you find the reJuired
product& put it in a virtual <Shopping Cart< and continue shopping.
After you have added enough items in shopping cart& check out each of
the them. 0ou can add or delete the contents in shopping cart.
The ne%t step is to login using a username and passord. -any online
malls first re=uire #u t# re/ister ith them !efore alloing you to pay
for the !ought items. +nter the address to hich you ant the product to
!e delivered. 0ou might also ant to select the pa'e"t '#des for
payment here. After choosing the mode of payment there ill other !o%es
to fill your 9i))i"/ address or the pa'e"t detai)s. Some online malls
even asks for your e'ai)3 p.#"e "u'9ers etc.
Then ait for the confirmation of your order& you can also '#di$ t.e
#rder !y adding or removing items. 0ou can also cancel order if needed.
3eep the pri"ted 1#p of the purchased order and confirmations for
records. In the event of any disputes& you ill need to sho these
documents for verification.
Market share
+(commerce product sales totaled Q=@B.@ !illion in the United States in
;??>& representing a!out BR of retail product sales in the country. The
Q=C.I !illion orth of clothes sold online represented a!out =?R of the
domestic market.
1or developing countries and lo(income households in developed
countries& adoption of e(commerce in place of or in addition to
conventional methods is limited !y a lack of afforda!le Internet access.
!ri:a13 Se1urit @ Sa$et O")i"e
Privacy Online
-any online malls use 1##>ies t# tra1> the user activity for shoing
relevant results to ma%imi.e the shopping e%perience. It can also !e used
to tra1> #ur pers#"a) details. Thus !efore you pass your personal
information& ensure the 1redi9i)it of the online merchant. 5ood
companies post thier privacy policy 9 that is ho they are going to use the
personal information a!out you : on the e!site. ,ead carefullyS
Security & Saety Online
The important considerations after privacy are the se1urit a"d sa$et
$eatures used !y online malls. ,emem!er that good e!sites are 'ade i"
1#'p)ia"1e ith industrial standards such as SS4 9secured socket layer:.
These standards use e"1rpti#" te1."#)#/ to transfer information from
your computer to online merchantLs server.
By using SS2 the information you sent are s1ra'9)ed& this means it is not
possi!le to get details ithout encryption code. Since this is done
automatically in merchants server& it can !e ensured that your personal
details are secure. Thus make sure that you alays do payment over SS2.
4hen the company you ant to deal is ne to you& try to get ma%imum
information a!out them !efore making any orders. 3eep your passord
secret and make it in such a ay that other may not !e in a position to
guess it.
+redit 1ard tra"sa1ti#"s are considered to !e the sa$est '#de of
payment for online shopping.
-ake yourself understood ith the companyLs policies especially on ho
they are going to keep your financial and personal data secured.
3eep pri"ted 1#pies of purchase order and confirmation details& so that it
can !e used in the event of disputes.
O")i"e S.#ppi"/ M#de #$ !a'e"ts
!a'e"t 9 1redit 1ard is the idely accepted 'et.#d #$ pa'e"t for
online shopping. 7oever the other methods& like using e 1.e1>s3 papa)
O 9a"> tra"s$er are also common. The method of payment is decided
upon the mutual trust and familiarity !eteen online merchant and the
customer. Various methods of payment are descrip!ed !elo.
• 'redit 'ards
• De!it 'ards
• +lectronic 'ash O 'ash on Delivery
• 'heJue $ayment
• -oney "rder
Some sites ill not allo international credit cards and !illing address
and shipping address have to !e in the same country in hich site does its
!usiness. "ther sites allo customers from anyhere to send gifts
anyhere. The financial part of a transaction might !e processed in real
time 9for e%ample& letting the consumer kno their credit card as
declined !efore they log off:& or might !e done later as part of the
fulfillment process.
4hile credit cards are currently the most popular means of paying for
online goods and services& alternative online payments ill account for
;BR of e(commerce volume !y ;??> according to 'elent
Usi"/ +redit +ards $#r O")i"e S.#ppi"/
A +redit +ard is a small plastic electonic card made according to IS"
HC=? standard specification hich is used for settling the payments. Issuer
of the 1redit 1ard lends money to the holder hich is used for settling the
payment.
+redit +ard issuer 9 !anks usually : issue the card to user hich ill !e
having a pre(negotiated credit limit. 4hen a purchase is done& the
consumer sign a slip in hich the amount to !e paid& along ith details of
credit card ill !e mentioned.
The consumer send the details of purchase and the amount oed to 1redit
1ard issuer is paid in months. The consumer can pay minimum portion of
the !ill !y due date or any amount a!ove the minimum amount. The credit
provider 1.ar/e a" i"terest on the credit amount. If the amount is not
paid ithin due date the interest rate *ump up or if it is paid ithin due
date credit issuer 'a <ai:e the interest.
Usi"/ De9it +ards $#r O")i"e S.#ppi"/
De9it +ard is a small plastic e)e1t#"i1 1ard looking very similar to credit
cards. The important difference is that de!it cards uses your sa:i"/s
a11#u"t 9a)a"1e for payments.
There are to ma*or types of de!it cards. O")i"e de9it 1ards and O$$)i"e
de9it 1ards. "nline de!it cards uses !ers#"a) Ide"ti$i1ati#" Nu'9er
A !IN B to authenitcate the system. "ffline de!it cards are not compati!le
ith $I/ system.
4ith #")i"e de9it 1ards& the de!it is immediately reflected on the
account. "ffline de!it cards usually reJuire 2-? das to actually effect on
the userLs savings account.
"nline de!it cards are 1#"sidered superi#r !ecause the !IN sste' has
'#re se1urit than signature system& hich is used in offline de!it cards.
7oever online de!it cards has the disadvantage that at the point of sale
seperate key pad is necessary.
O")i"e S.#ppi"/ B E)e1tr#"i1 +as.
!lectronic "und Transer
+lectronic fund transfer 9E,T: is another method of payment used for
online shopping. These mode of transactions are complicated and are not
popular. 7oever there are fe e%ceptions such as "ctopus 'ard System
in 7ong 3ong.
Web Based Merchant Syste#
!apa) @ 2+.e1>#ut are the leading online shopping merchant systems.
This systems stores money in electronic form and transaction !eteen
user 1redit 1ard # user a11#u"t t# 'er1.a"t a11#u"ts are done almost
instantly.
Cash on Delivery
In this system payment is made only at the time of delivery of products.
!r#du1t de)i:er
"nce a payment has !een accepted the goods or services can !e delivered
in the folloing ays.
• Donload) This is the method often used for digital media products
such as softare& music& movies& or images.
• Shipping) The product is shipped to the customerLs address.
• Drop shipping) The order is passed to the manufacturer or third(party
distri!utor& ho ships the item directly to the consumer& !ypassing the
retailerLs physical location to save time& money& and space.
• In(store pickup) The customer orders online& finds a local store using
locator softare and picks the product up at the closest store. This is the
method often used in the !ricks and clicks !usiness model.
• In the case of !uying an admission ticket one may get a code& or a
ticket that can !e printed out. At the premises it is made sure that the same
right of admission is not used tice.
S.#ppi"/ 1art sste's
• Simple systems allo the offline administration of products and
categories. The shop is then generated as 7T-2 files and graphics that
can !e uploaded to a e!space. These systems do not use an online
data!ase.
• A high end solution can !e !ought or rented as a standalone program
or as an addition to an enterprise resource planning program. It is usually
installed on the companyLs on e!server and may integrate into the
e%isting supply chain so that ordering& payment& delivery& accounting and
arehousing can !e automated to a large e%tent.
• "ther solutions allo the user to register and create an online shop on
a portal that hosts multiple shops at the same time.
• open source shopping cart packages include advanced platforms such
as Interchange& and off the shelf solutions as Satchmo& os'ommerce&
-agento& Pen 'art& "pen'art& Virtue-art& 1lying 'art and $restaShop or
the dual licensed $h$epperShop.
• 'ommercial systems can also !e tailored to ones needs so that the
shop does not have to !e created from scratch. By using a frameork
already e%isting& softare modules for different functionalities reJuired
!y a e! shop can !e adapted and com!ined.
Concerns
,raud a"d se1urit 1#"1er"s
5iven the lack of a!ility to inspect merchandise !efore purchase&
consumers are at higher risk of fraud on the part of the merchant than in a
physical store. -erchants also risk fraudulent purchases using stolen
credit cards or fraudulent repudiation of the online purchase. 4ith a
arehouse instead of a retail storefront& merchants face less risk from
physical theft.
Secure Sockets 2ayer 9SS2: encryption has generally solved the pro!lem
of credit card num!ers !eing intercepted in transit !eteen the consumer
and the merchant. Identity theft is still a concern for consumers hen
hackers !reak into a merchantLs e! site and steal names& addresses and
credit card num!ers. A num!er of high(profile !reak(ins in the ;???s has
prompted some U.S. states to reJuire disclosure to consumers hen this
happens. 'omputer security has thus !ecome a ma*or concern for
merchants and e(commerce service providers& ho deploy
countermeasures such as firealls and anti(virus softare to protect their
netorks.
$hishing is another danger& here consumers are fooled into thinking they
are dealing ith a reputa!le retailer& hen they have actually !een
manipulated into feeding private information to a system operated !y a
malicious party. Denial of service attacks are a minor risk for merchants&
as are server and netork outages.
8uality seals can !e placed on the Shop e! page if it has undergone an
independent assessment and meets all reJuirements of the company
issuing the seal. The purpose of these seals is to increase the confidence of
the online shoppersE the e%istence of many different seals& or seals
unfamiliar to consumers& may foil this effort to a certain e%tent.
A num!er of resources offer advice on ho consumers can protect
themselves hen using online retailer services.
F;;G
These include)
• Sticking ith knon stores& or attempting to find independent
consumer revies of their e%periencesE also ensuring that there is
comprehensive contact information on the e!site !efore using the
service& and noting if the retailer has enrolled in industry oversight
programs such as trust mark or trust seal.
• +nsuring that the retailer has an accepta!le privacy policy posted. 1or
e%ample note if the retailer does not e%plicitly state that it ill not share
private information ith others ithout consent.
• +nsuring that the vendor address is protected ith SS2 9see a!ove:
hen entering credit card information. If it does the address on the credit
card information entry screen ill start ith <7TT$S<.
• Using strong passords& ithout personal information. Another
option is a <pass phrase&< hich might !e something along the lines) <I
shop @ good a !uySS< These are difficult to hack& and provides a variety of
upper& loer& and special characters and could !e site specific and easy to
remem!er.
Although the !enefits of online shopping are considera!le& hen the
process goes poorly it can create a thorny situation. A fe pro!lems that
shoppers potentially face include identity theft& faulty products& and the
accumulation of spy are. -ost large online corporations are inventing
ne ays to make fraud more difficult& hoever& the criminals are
constantly responding to these developments ith ne ays to
manipulate the system. +ven though these efforts are making it easier to
protect yourself online& it is a constant fight to maintain the lead. It is
advisa!le to !e aare of the most current technology and scams out there
to fully protect yourself and your finances.
F;IG
.
"ne of the hardest areas to deal ith in online shopping is the delivery of
the products. -ost companies offer shipping insurance in case the product
is lost or damagedE hoever& if the !uyer opts not to purchase insurance
on their products& they are generally out of luck. Some shipping
companies ill offer refunds or compensation for the damage& !ut it is up
to their discretion if this ill happen. It is important to reali.e that once
the product leaves the hands of the seller& they have no responsi!ility
9provided the product is hat the !uyer ordered and is in the specified
condition:.
Trends
"ne third of people that shop online use a search engine to find hat they
are looking for and a!out one fourth find e!sites !y ord of mouth.
4ord of mouth has !ecome a leading ay !y hich people find shopping
e!sites. 4hen an online shopper has a good first e%perience ith a
certain e!site& si%ty percent of the time they ill return to that e!site to
!uy more.
FHG
Books are one of the things !ought most online. 7oever& clothes& shoes&
and accessories are all very popular things !ought online. 'osmetics&
nutrition products& and groceries are increasingly !eing purchased online.
A!out one fourth of travelers !uy their plane tickets online !ecause it is a
Juick and easy ay to compare airline travel and make a purchase. "nline
shopping provides more freedom and control than shopping in a store.
1rom a sociological perspective& online shopping is argua!ly the most
predicta!le ay to shop.
F
"ne knos e%actly hat e!site to go to& ho
much the product ill cost& and ho long it ill take for the product to
reach them. "nline shopping has !ecome e%tremely routine and
predicta!le& hich is one of its great appeals to the consumer.
The internet has !een around in India since Juite some time no.
7oever& e(commerce has picked up only recently. Shopping online is
sloly groing up in India too. 7oever& due to the relatively slo
penetration of the internet in many part of the country& online shopping is
limited to only ma*or metros in India. 2et us inJuire a!out online
shopping trends in this part of the orld.
+commerce can !e thought of as an activity herein the customer uses the
internet to order a product or service. In most circumstances& the
transaction may happen online also. "nline shopping places a heavy
demand on the use of the internet. "ne ma*or hurdle that online shopping
faces is the security of transactions& since it is necessary for shoppers to
su!mit their financial details on the e! too.
'urrently& only a limited num!er of merchants are doing !usiness online
due to the pro!lems related to technology. The ma*or hurdles faced are
lo penetration of computers in India& lesser amount of credit or de!it
card holders& and many adverse ta%ation rules. Also& many internet users
are reluctant to reveal their financial information online& hich hampers
the groth of the online !usiness.
'onversely& online shopping has a great potential to !ecome !ig in India.
According to many ecommerce o!servers& ecommerce has the potential of
reaching Q =?? !illion in the year ;??C. Accordingly& many enterprises
!oth !ig and small& are opening to the idea of having their B;B and B;'
portals on the internet in a !ig ay.
The internet is also proving to a !oon in disguise for many small and
medium enterprises& hich are *oining hands ith ma*or Indian online
portals to display their products and advertise their services. Analysts
predict that in the ne%t =C(;@ months& several national !rands and retailers
ill have their online shops ready for B;B and B;' transactions. This
indicates that the total num!er of merchants online ould go up to nearly
A?&??? and the total num!er of users ould go up to around A? million.
Analysts also predict that the online shopping market could go up to
nearly USD Q A? million.
"ne ay of looking at online shopping trends is e%amining the figures (
air and rail tickets estimated at I/, I? crore 9I/, I?? million: are sold
online in India every day. Already& a *eellery piece sells every five
minutes& and a mo!ile handset every eight minutes& and a car every nine
hours on the popular commodity site eBAy.com. Another popular site
Indiamart.com materialised !usiness over I/, A&??? crore through leads
generated !y it.
Today many Indians purchase goods like !ooks& electronic gadgets& air
and rail tickets& apparel& gifts& mo!iles& computer peripherals& audio
cassettes and 'Ds. There are more products hich are capa!le of !eing
sold over the internet.
-any people still locate information on the internet& !ut purchase their
products offline at traditional stores. This means that people still are
lacking in confidence to purchase products online. This trend can !e
countered !y providing secure sites for transactions& and prompt customer
service.
"nline shopping is truly catching on in India& traditional !rick and mortar
stores are also getting the hand of doing !usiness online. The trends
demonstrate that traditional stores ill keep on doing sufficient !usiness
hile the online stores increase their virtual presence on the internet.
Survey on latest #arket trend in this recession period$
A survey conducted !y credit card issuer -aster'ard 4orldide has
revealed that online shopping in the country has !een rising despite the
economic slodon. In addition to the convenience that online shopping
offers& the opportunity to !ag si.ea!le discounts is driving more and more
people to click on the internet for hat they ant to purchase& the report
has suggested.
-aster'ardLs <Insights report& economic crisis and preference for online
shopping in Asia#$acific& -iddle +ast and Africa< has noted that in India&
the average freJuency of online purchases increased to ;.> in the fourth
Juarter of ;??C& up from ;.B during the same Juarter in ;??H.
As many as A@ per cent respondents in India said they have used the
internet for the purpose of online shopping& the survey said& adding that
the top three most popular online purchases included airline tickets 9A@R:&
home appliances and electronic products 9@CR: and 'Ds#DVDs#V'Ds
9@@R:. 4hen it came to impulsive shopping& Indians seemed to prefer
home appliances and electronic products 9A=R: and 'Ds#DVDs#V'Ds
9@@R:.
The survey said a ma*or chunk of online shopping conducted in the region
as planned& ith CI per cent of online shoppers admitting that they tend
to plan their shopping in advance and conduct research on their planned
purchases.
-ost online shoppers either !ought items impulsively <hardly ever<
9IBR: or <*ust a couple of times< 9ICR:. The top reason for impulsive
!uying as the discounted prices 9BHR: that online channels afford& the
survey said.
-aster'ard 4orldideLs vice(president and country general manager&
South Asia& T V Seshadri& said& <"nline shopping is groing in popularity
as consumers realise the convenience and ease of shopping online.
Interestingly& amongst all the markets surveyed& India is the only country
here the =C to ;> years age group has the highest average spend on
online shopping. As !usinesses look to gro their online retail presence&
they need to !e aare of the preferences and concerns that drive online
shoppers.<
The survey findings suggest that economic crisis could have made online
shopping more attractive. "ne key reason for shoppers !eing motivated
into online purchases may !e the a!ility to compare prices across multiple
outlets& hence achieving the important o!*ective of <value for money.<
The survey covered A&?IH respondents across =? markets Australia&
'hina& 7ong 3ong& India& 6apan& Singapore& South 3orea& Thailand& UA+
and South Africa ith the latter to !eing ne markets included in ;??C.
/ot only have consumers shopped online more freJuently despite the
economic climate& ith the e%ception in 3orea& Singapore and 7ong
3ong& all other markets surveyed shoed an increased intention for future
online shopping compared to a year ago.
In terms of average spending on online shopping conducted in @8 ;??C&
'hina& Singapore& 3orea and 6apan sa a slight increase& hile 7ong
3ong& Australia& India and Thailand sa a slight decline& the survey
pointed out.
Product suitability
+ate/#r U.S. #")i"e sa)es C200DE
A2FB
Apparel& accessories and footear Q=C.I !illion
'omputer hardare and softare Q=H.; !illion
Autos and auto parts Q=B.H !illion
7ome furnishings Q=?.? !illion
T#ta) pr#du1ts sa)es Ce01)udi"/ tra:e)E G1FD.F 9i))i#"
Travel QHI.A !illion
F=>G
-any successful purely virtual companies deal ith digital products&
9including information storage& retrieval& and modification:& music&
movies& office supplies& education& communication& softare&
photography& and financial transactions. +%amples of this type of
company include) 5oogle& eBay and $aypal. "ther successful marketers
use Drop shipping or affiliate marketing techniJues to facilitate
transactions of tangi!le goods ithout maintaining real inventory.
+%amples include numerous sellers on eBay.
Some non(digital products have !een more successful than others for
online stores. $rofita!le items often have a high value(to(eight ratio&
they may involve em!arrassing purchases& they may typically go to
people in remote locations& and they may have shut(ins as their typical
purchasers. Items hich can fit through a standard letter!o% T such as
music 'Ds& DVDs and !ooks T are particularly suita!le for a virtual
marketer& and indeed Ama.on.com& one of the fe enduring dot(com
companies& has historically concentrated on this field.
$roducts such as spare parts& !oth for consumer items like ashing
machines and for industrial eJuipment like centrifugal pumps& also seem
good candidates for selling online. ,etailers often need to order spare
parts specially& since they typically do not stock them at consumer outlets
(( in such cases& e(commerce solutions in spares do not compete ith
retail stores& only ith other ordering systems. A factor for success in this
niche can consist of providing customers ith e%act& relia!le information
a!out hich part num!er their particular version of a product needs& for
e%ample !y providing parts lists keyed !y serial num!er
$roducts less suita!le for e(commerce include products that have a lo
value(to(eight ratio& products that have a smell& taste& or touch
component& products that need trial fittings T most nota!ly clothing T
and products here colour integrity appears important. /onetheless&
Tesco.com has had success delivering groceries in the U3& al!eit that
many of its goods are of a generic Juality& and clothing sold through the
internet is !ig !usiness in the U.S. Also& the recycling program
'heapcycle sells goods over the internet& !ut avoids the lo value(to(
eight ratio pro!lem !y creating different groups for various regions& so
that shipping costs remain lo.
+#"1)usi#"
O")i"e s.#ppi"/ is a different e%perience and you can make the shopping
creative over the internet as you get used to it. There can !e lot of
appre.e"si#"s a!out online shopping hen you get in to it for the $irst
ti'e. As you e%perience more and more of it those apprehensions get
dissapeared sloly. ,emem!er that if you stick to the !asics& online
shopping !ecome '#re e"H#a9)e a"d easier than real(orld shopping.
The internet is also proving to a !oon in disguise for many small and
medium enterprises& hich are *oining hands ith ma*or Indian online
portals to display their products and advertise their services. Analysts
predict that in the ne%t =C(;@ months& several national !rands and retailers
ill have their online shops ready for B;B and B;' transactions. This
indicates that the total num!er of merchants online ould go up to nearly
A?&??? and the total num!er of users ould go up to around A? million.
Analysts also predict that the online shopping market could go up to
nearly USD Q A? million.
"ne ay of looking at online shopping trends is e%amining the figures (
air and rail tickets estimated at I/, I? crore 9I/, I?? million: are sold
online in India every day. Already& a *eellery piece sells every five
minutes& and a mo!ile handset every eight minutes& and a car every nine
hours on the popular commodity site eBAy.com. Another popular site
Indiamart.com materialised !usiness over I/, A&??? crore through leads
generated !y it.
Today many Indians purchase goods like !ooks& electronic gadgets& air
and rail tickets& apparel& gifts& mo!iles& computer peripherals& audio
cassettes and 'Ds. There are more products hich are capa!le of !eing
sold over the internet.
-any people still locate information on the internet& !ut purchase their
products offline at traditional stores. This means that people still are
lacking in confidence to purchase products online. This trend can !e
countered !y providing secure sites for transactions& and prompt customer
service.
"nline shopping is truly catching on in India& traditional !rick and mortar
stores are also getting the hand of doing !usiness online. The trends
demonstrate that traditional stores ill keep on doing sufficient !usiness
hile the online stores increase their virtual presence on the internet.
O")i"e S.#ppi"/ %% !atter"s3 Tre"ds a"d ,uture Gr#<t.
This report e%amines e(commence trendsE and identifies the drivers and
!arriers to online pur( chases in key markets in the region. Both con sumer
!ehavior in relation to e(commerce& and e(commerce outlook in the region
are analy.ed.
The role of credit cards in e(commerce and their importance in the online
shopping regime is also e%amined. Both desk top research and an online
survey ere used in preparing this report. The key findings are)
U
"nline shopping is a groing trend in the region& ith BIR of survey
respondents report( ing that they shop online at least occasionally.
U
The
key drivers of online shopping groth are mainly internet penetration&
income levels and cultural factors.
U
7uge groth in online shopping is e%pected& led !y 'hina and India
!ut ith other countries such as Thailand also likely to e%hi!it strong
grothVV as incomes and internet penetration rise.
U
The survey suggests a loer average tendency in the region for
opportunistic purchases ith online shopping compared to offline. But
there are differences ithin countries hich suggest that the degree of
financial sophistication is a key in influencing the degree of
opportunistic spending.
= U
'redit cards are a preferred mode of payment
for online shopping. If security concerns ere allayed& there ould !e
su!stantially more online shopping and more of this online shop( ping
ould !e paid for ith credit cards.
"vervie of "nline Shopping
O")i"e S.#ppi"/%% De$i"iti#"s a"d !r#1esses "nline shopping can !e
defined as the process of purchasing goods or services over the inter(
ABOUNT EBAY INDIAIS NO. 1 E-S6O!ING !O(TA4
eBay& the WorldKs largest personal online trading communityK& as
initially set up in =>>A ith collectors in mind. It ena!led easier access to
collecti!les here the traditional inefficiencies of person(to(person trading
such as geographical fragmentation and imperfect knoledge could !e offset
through computer mediated communication.
eBay initially aimed to improve the market liJuidity for collecta!les&
hich are more pro!lematic to e%change than commodity goods such as ne
!ooks& 'Ds and other mass(produced& uniform consumer items. This as
highlighted !y eBay founder& $ierre -idyearKs story of the creation of eBay
V !ased around his girlfriendKs desire to more easily !uy and sell collecta!le
pea dispensers. 4hile this story turned out to !e a $, e%ercise and
fa!rication to get the nely founded eBay company copy space& collecti!les
as the initial market eBay moved into& !efore also targeting the ne goods
market.
The collecti!les market used to !e very important to eBay V serious
collectors and small dealers accounted for C?R of total eBay revenues even
though they only represented ;?R of registered users in ;???. The Internet
auction site !ecame the ay to esta!lish prices for items such as collecti!les
ith uncertain values cf. Smith& and collectors are regarded as a natural
demographic for Internet auctions V !eing 9geographically scattered and
highly motivated:. Pukin 9;??@: suggests that eBay !ecomes the antithesis
of standardi.ed& fi%ed price& !randed goods shopping& offering a narrative of
discovery& e%ploration and accident that re(romanticists shopping ( and also
fits in ith collecting motivations.
+Bay represents an e(commerce mainstay and household name. It has
potentially revolutioni.ed the ay e shop for second(hand and collecti!le
items V eBay is a digital intermediary hich has created opportunities for
market transactions to occur in a ay that did not e%ist !efore these type of
market places& underpinned !y Internet technologies. This orking paper
aims to e%plore the impact
of eBay on collecting and specific collecting communities V the vintage
radio and stamp# cover collecting communities V in terms of collecting
practices and rituals. Additionally& it e%amines the issues eBay raises for a
traditional trading intermediary V a cover manufacturer# dealer ( hich has
repositioned itself for the Internet era& hile maintaining a core mail order
!usiness. Although there have !een calls for more research on consumers in
virtual orlds and the movement of ork such as BelkKs 9=>>=: 'onsumer
Behavior "dyssey into virtual domains relatively little academic literature
e%ists on the impact of the Internet and eBay in terms f collecting. The
Southest(Te%as $opular 'ulture Association and American 'ulture
Association called for papers on the impact of sites like eBay on collecting.
The authorsK on L'ultures of eBayL conference featured to other
orking papers on the Internet and collecting) WeBay as a la!orer of love) A
study of collectors& their collections and their relationship ith eBayK and
WThe virtual spaces of telecommunications enthusiasm) the internet& 0ahooS
5roups and eBayK. Denegri(3nott and 7unter 9;??A: consider eBay as a
colla!orator(la!orer in the collecting process ( helping collectors find their
coveted items.
T6E !(O+ESS O, eBa BUYING @ SE44ING
I"tr#du1ti#":
It is ne site of +('ommerce on hich anyone can search any product for
!uying hich is availa!le on this site. So this is as site on hich company
sells their product on(line. At this site interested people !id for the product
and ho in& get that product and called the oner of that product.
Bui"/ pr#1ess:
=. 1irstly you have to register for that product and after that you have to
sign up on pay pal site. This is the format of paypal site.
;. Se)e1t a 1ate/#r : firstly !uyer has to select the type of product in
hich he is interested. The hole information regarding the product
like item no.& inning !id& no of !idder etc.
I. 5rite a tit)e ) There should rite the name of title hich he ants to
purchase.
@. Ite' spe1i$i1s ) After selecting the title& have to specific a!out the
item& for e%) if you ant to purchase a doll then your title is doll !ut
the specific item is Bar!ie doll.
A. Ite' des1ripti#" ) here you have to mention the si.e of the product&
some characteristic of the product.
B. Add pi1tures ) !y the adding picture you can specify your product and
you can !uy the same product.
H. !ri1i"/ a"d durati#" ) in this you !id your price for that product&
time and date.
C. Ite' )#1ati#" ) 1rom here you are using this tool and !idding for
that product& the location should !e mention there.
>. !a'e"t a"d s.ippi"/ i"$#r'ati#" ) The total price a!out payment
and transportation cost should !e mention in this shipping and
payment details
This as the hole process to !uy on e(!ay for anyone.
T6E !(O+ESS O, SE44ING ON eBa
By e(!ay any vendor can sell his product. 1or selling firstly have to fill a
form named Msell your itemN& in this form you have to fill some information
But there are some additional orks also hen it complete then selling
process ill finish. 4hich are)
?'ommunicate ith the Buyer
?,eceive $ayment
? Ship Item to the Buyer
? 2eave Buyer 1eed!ack
(O4E O, eBa
IN+(EASED 4ITE(A+Y (ATE %
Due to increase in literacy rate O aareness level people kno a!out the use
of net O other facilities availa!le for them. It increases the market share of
eBay.
DEMONST(ATION E,,E+T -
According present scenario every organi.ation ants to demonstrate their
product on this type online trading community.
4A+K O, TIME -
Due to lack of time from the consumer side& they do not ant to spend their
too much time on different products.
Sa:i"/ #$ ti'e %
4ith the help of eBay it is also a useful tool for the traders they can
demonstrate their product in a ide market place.
MONEY T(ANSA+TIONS V
4ith the help of this online trading company e can easily receive
electronically from around the orld ith in a short period of time.
(O4E O, DI(E+T SE44ING
!E(IS6AB4E !(ODU+T %
By eBay concept e can not sell to perisha!le products !ecause it takes
time to deliver the goods and mainly perisha!le goods items and short
span so it !ecome typical to sell them through eBay selling.
!E(SONA4 (E4ATIONS-
-ainly e Indians are friendly in nature so here personal relation # pu!lic
relation play an important role in marketing of goods. But eBay lacks at
this step and this lack affect to eBay.
B6A(AT-
/o economists have divided to our country in to to eco(areas& I/DIA
and B7A,AT. I/DIA covers tier one and tier ; cities and high civili.ed&
ell moderni.ed part of country& here eBay seems effective.
B7A,AT covers tier I cities and rural I/DIA here moderni.ation
is still as aiting guest and hi tech !usiness are dreams& !ut H?R & hile
the situation for eBay concept are not favora!le there due to poor scale
and small !usiness firms.
E'p)#'e"t V
+mployment gives you ealth and !usiness !ut in B7A,AT there is
under employment so people have enough time and insufficient ealth so
the eBay concept presently is *ust like Mincu!ated !a!yN& !ut it ould
survive.
eBa AD&ANTAGES
Some advantages that can !e achieved from e(commerce include)
Bei"/ a9)e t# 1#"du1t 9usi"ess 2F 0 J 0 ?D*. +(commerce systems can
operate all day every day. 0our physical storefront does not need to !e
open in order for customers and suppliers in electronic !usiness.
A11ess t.e /)#9a) 'ar>etp)a1e. It is possi!le to do !usiness ith any
!usiness or person ho is connected to the Internet. Simple local
!usinesses such as specialist record stores are a!le to market and sell
their offerings internationally using e(commerce. This glo!al opportunity
is assisted !y the fact that& users are not charged according to the distance
over hich they are communicating.
Speed. +lectronic communications allo messages to negotiate the orld
almost instantly. 'ommunications delay is not a part of the Internet # e(
commerce orld.
Mar>et spa1e. The market in hich e!(!ased !usinesses operate is the glo!al market. -any
!usinesses are already facing international competition from e!(ena!led !usinesses.
Opp#rtu"it t# redu1e 1#sts. The Internet makes it very easy to Lshop aroundL for products
and services that may !e cheaper or more effective than e might otherise settle for.
+#'puter p)at$#r'-i"depe"de"t. 'omputers have the a!ility to communicate via the
Internet independent of operating systems and hardare. 'ustomers are not limited !y e%isting hardare
systemsL.
E$$i1ie"t app)i1ati#"s de:e)#p'e"t e":ir#"'e"t ( LIn many respects& applications
can !e more efficiently developed and distri!uted !ecause it can !e !uilt ithout regard to the customerLs or
the !usiness partnerLs technology platform. ,ather& Internet(related technologies provide this capa!ility
inherently through automatic deployment of softare updatesL.
A))#<i"/ 1ust#'er se)$ ser:i1e a"d K1ust#'er #uts#ur1i"/K. $eople can
interact ith !usinesses at any hour of the day that it is convenient to them& and !ecause these interactions
are initiated !y customers& the customers also provide a lot of the data for the transaction that may otherise
need to !e entered !y !usiness staff. This means that some of the ork and costs are effectively shifted to
customersE this is referred to as Lcustomer outsourcingL.
Steppi"/ 9e#"d 9#rders t# a /)#9a) :ie<. Using aspects of e(commerce technology
can mean your !usiness can source and use products and services provided !y other !usinesses in other
countries. This seems o!vious enough to say& !ut people do not alays consider the implications of e(
commerce. 1or e%ample& in many ays it can !e easier and cheaper to host and operate some e(commerce
activities outside Australia. 1urther& !ecause many e(commerce transactions involve credit cards& many
!usinesses in Australia need to make arrangements for accepting online payments national competitiveness
and the competitiveness of our industries and !usinesses.
!.si1a) pr#du1t3 supp)ier @ de)i:er u"1ertai"t. 4hen you alk out of
A "e< 'ar>eti"/ 1.a""e). The Internet provides an important ne channel
to sell to consumers. $eterson et al. 9=>>>: suggest that& as a marketing
channel& the Internet has the folloing characteristics)
• the a!ility to ine%pensively store at different virtual locations
• the availa!ility of poerful and ine%pensive means of searching&
organi.ing& and disseminating such information
• interactivity and the a!ility to provide information on demand
• the a!ility to provide perceptual e%periences that are far superior to a
printed catalogue& although not as rich as personal inspection
• the capa!ility to serve as a transaction medium
• the a!ility to serve as a physical distri!ution medium for certain goods
9e.g.& softare:
• relatively lo entry and esta!lishment costs for sellers
• /o other e%isting marketing channel possesses all of these
characteristics.
eBaDISAD&ANTAGES AND +ONST(AINTS
Some disadvantages and constraints of e(commerce
include the folloing.
Ti'e $#r de)i:er #$ p.si1a) pr#du1ts. eBay is often used to !uy goods
that are not availa!le locally from !usinesses all over the orld& meaning
that physical goods need to !e delivered& hich takes time and costs money.
In some cases there are ays around this& for e%ample& ith electronic files
of the music or !ooks !eing accessed across the Internet& !ut then these are
not physical goods.
+ON+4USION
B(I+K-B(EAKING
7ere M!rick !reakingN means here *ust to initial to oo the market from
direct selling !y eBay concept in our country and it ill gro positively
ith our moderni.ation.
DI(E+T SE44ING L EBAY SE44ING %
7ere direct sellingX eBay means presently in our country the direct selling
concept has greater market share then eBay concept ill take time to effect.
EMUI4IB(IUM-
A time ould come hen there ill !e an eJuili!rium !eteen direct selling
and eBay concept in the country !ecause !oth have some specific
characteristics irrespective ith each other as nature of product& reach&
impact& literacy rate etc means !ecause every thing cannot !e availa!le on e(
Bay to sell so it ould !e.
OBNE+TI&ES
To find out the interest shon !y the individuals and societies in online
shopping
To the position of e!ay in e(shopping sector.
To study the products offered in online shopping
To kno the !ehavior of consumer regarding online Shopping
To assess the level of customer perception toards eshopping
(ESEA(+6 MET6ADO4GY
• (ESEA(+6 DESIGN:
,esearch design is a research plan hich reJuires that )
• 4hat data are to !e collected D
• 4hat research techniJues and instruments are to !e used D
• 7o a sample is to !e selected D and
• 7o information is to !e collected from this sample D
A research design specifies the methods and procedures for conducting a particular
study. Br#ad) spea>i"/3 resear1. desi/" 1a" 9e /r#uped i"t# t.ree 1ate/#ries-
e0p)#rat#r resear1.3 des1ripti:e resear1. a"d 1asua) resear1..
• (ESEA(+6 INST(UMENT
+%ploratory research is used in this pro*ect report in order to understand the
perceptions of different consumers toards !ike industry& and their !ehavior
pattern !y studying their different demographics 9 such as V age& occupational&
income level etc.:. This is the most popular type of research techniJue& generally
used in survey research design and most useful in descri!ing the characteristics of
consumer !ehavior.
The methods used ere folloing)
? 8uestionnaire method
? Data collection.
? Direct Interaction ith the users.
• MUESTIONNAI(E MET6OD
This is the simplest method of collecting data. In this method a list of printed
Juestions is placed to the people& in hich Juestions are asked ith the given
o!*ective ansers& from hich people have to select the !est option. This is to !e
found that Juestionnaire must !e interesting& o!*ective !ased& unam!iguous& ease
to complete and generally not !urdensome& *ust to motivate respondents to anser
truthfully and completely !ecause consumers are often unilling to give time for
responding the surveys. The format and ording of Juestionnaire should !e simple
and Juestions are arranged in a proper seJuence so that consumers can understand
it easily.
The intervie as conducted !y filling up the Juestionnaire !y different categories
of people and they are given full li!erty to fill up these Juestionnaire.
DATA +O44E+TION
!E(SONA4 INTE(A+TION:
$ersonal interaction means direct communication ith the consumers to get some
information a!out their needs and reJuirement. In this method face to face
communication takes place.
4e also go to the market and to near people and interact ith them personally&
a!out their pro!lem and hat they actually need.
SE+ONDA(Y-DATA
• Data already collected !y any person or institution is called secondary data.
• These data are often used !y the investigators and other people having its
need.
• The advantages of the secondary data can !e VIt is economical& !oth in
terms of money and time spent.
• The researcher of the report also did the same and collected secondary data
from various internet sites.
• The researcher of the report also visited various li!raries for collection of
the introduction part.
• The sources of secondary data ere
• Books&
• -aga.ines and
• Internet sites.
• The secondary data could !e collected from 6ournals& ,eports& and various
pu!lications.
SAM!4E SIOE !4ANNING:
Sampling is simply the process of learning a!out the population on the !asis
of sample dran from it. It is that part of the universe YpopulationZ hich is
selected for the purpose of investigation. Sampling may !e defined as a part of the
hole YpopulationZ that represents all the features of the hole under
consideration.
Sample si.e) *0
Approach) +#":e"ie"1e sa'p)i"/
,INDINGS @ INTE(!(ETATION
1. D# #u >"#< a9#ut #")i"e s.#ppi"/8
70%
30%
Yes No
7ave you purchased any items through e(shopping
30%
70%
Yes No
Are you satisfied ith the items purchased through online shopping
Yes
No
.
Are the products of "nline shopping are mostly costly
50% 50%
Yes No
I. Are you satisfied ith the items purchased through "nline shopping
(a) Yes
40%
(b) No
60%
@. 7o did you come to kno a!out 2i!erty
(a) Advertisement 50%
(b) Word of Mouth 30%
(c) Referred by your
company / riend
!0%
(a)
Advertiseme
nt
50%
(b) Word of
Mouth
30%
(c) Referred
by your
company /
Friend
0%
5. Do you kno a!out Bata Shoes
0es H?R
/o I?R
Yes
No
.
B. 7o do you like the your product purchased through e(shopping as
compare to another !rand D
(a) "ood #0%
(b) Avera$e 50%
% &ad '0%
Su//esti#"s
a. There should !e more aareness for online shopping.
!. /ormally e(shopping products are more costly as compare to
products availa!le in open market
c. 'ompanies should improve their delivery system.
+ON+4USION
"nline shopping has many distinct and uniJue advantages and disadvantages
hich separate it from traditional retail shopping)
U
"n the plus side& online
stores are availa!le ;@#H& unlike traditional retailers& and can !e accessed
from the convenience of oneKs on home. Second& searching and
!rosing for products online is often Juicker than in a phys( ical store&
although consumers ith dial(up internet access may have trou!le accessing
con( tent(rich e!sites Juickly
MUESTIONNAI(E
Na'e:
O11upati#":
+#"ta1t "#.-
D# #u >"#< a9#ut #")i"e s.#ppi"/
0es
/o
6a:e #u pur1.ase a" pr#du1t #$ #")i"e s.#ppi"/ 4i9ert 8
0es
/o
6#< did #u 1#'e t# >"#< a9#ut es.#ppi"/
9a: Advertisement
9!: 4ord of -outh
9c: ,eferred !y your
company # 1riend
6#< d# #u ra"> O")i"e s.#ppi"/
9a: 5ood
9!: Average
[ Bad
Is money transaction is safe in e(shopping
9a: 0es
9!: /"
9c: 'antKs say
BIB4IOG(A!6Y
5EBSITES:
• .eshopping.com
• .e!ay.com
• Annual report of the e!ay
doc_724682903.doc