IMPACT OF E-BUSINESS ON CUSTOMER SERVICE

AND COST

• MAYANK CHOUDHARY• RAHUL MAURYA• SPARSH GOYAL• VAISHALI BHADULA

GROUP-4

E-BUSINESS IN INDIA

• India's e-commerce market was worth about $2.5 billion in 2009

$6.3 billion in 2011 $14 billion in 2012

• Increasing number of international supplier.• Services : fast delivery, cash on delivery etc.

COMPITATIVE ADVANTAGE(ONLINE RETAILS OVER RETAIL STORES)

LESS PRICES• DISCOUNTS• CASHBACK• FREEBIES

MORE SERVICES• CASH ON DELIVERY• ONLINE PAYMENT• E-WALLET• EASY REPLACEMENT

FLIPKART-THE ONLINE MEGASTORE

EASY TO NAVIGATE | EASY TO SEARCHEASY TO COMPARE | EASY TO ORDER

SnapShot

Purchases and Procurement

Inventory Levels +Rare Ordered Product

Direct Procurement From Companies

Stocked in the warehouse and Delivery Centers

Credit period=14-30 daysCredit Limits= varies with products

Distributors of these companies delivers the product in respective flipkart’s Ware house (as per requirement)

1.Weekly2.Monthly3.One-time4.Urgent

Distributor Frame in overall India

25 Warehouses -7 previously, other converted from delivery centre

60 Delivery Centers - 35 previously, others newly formed (aim to reduce the time of delivery)

Customer order

Checked in delivery centre

inventory

YES

Delivery Time 1-2 Days

SUCCESS!!!Sent to logistics body

NOChecked in the nearest warehouse inventory

Automatic inventory check via Inventory management system

Ordered to the company

YES

Delivery time 2-5 Days

YES

Delivery time 6-15 Days

NO

Delivery & LogisticsNo. of order served Daily > 30,000

Location of the productIs Identified

Logistic body is assignedCustomer product delivery location (Delivery cost-Free If ordered > 300 Rs. Else Rs. 30 Extra)

Parameter = city, locality, Type Of product,Cost definition, inter-city agreement etc.

Logistics

Priority

Automated Software Sends Information about the product Delivery to these logistics body

AFTER SALES SERVICE1. 30-DAY Money back guaranteeUnsatisfied Calls/Connects Product Customer with flipkart returned Replacement customer service by logistics or money is partners returned in the account2. E-WALLET Feature ( flipkart adds new dimensions to its operating cycle)Loyal Deposit Use it for furtherCustomer more money purchases

3. Reporting & Analytics On the basis of your past Schemes/ Discount/ Offers/ Behavioral purchase Recommendations are generated4. Reviews

First to review Certified Buyer

How are their products less expensive than in retail shops?

Retail store (organized) Online store

Need a shop floor or chain of shop floor.

Managed by centralized warehouses .

Need skilled sales and management staff

Need customer service associates.

Need branding and displays No need for branding and displays of the product

Need to pay overheads such as electricity bill, telephone bill, stationeries etc at every store.

Comparatively less Expensive as overhead are born only for the dispatch centers

Need furniture and equipments which need maintenance at every store

Need few furniture and equipments which requires less maintenance cost

Product stocking strategy (to maximize the profit)

• Discontinued and old stock has been allotted more discounts and highlighted nicely.

• Mid priced ranged products are preferred in each category.

• Exclusive products are avoided.• Complex products which requires more

demonstration are kept less in stock. • Combo-offer

Pricing & Margins

8-35% On sale price of product

Parameter= Brand, Category margin, Premium margin, Volume, Cost of Delivery, Operating cost margin

High Margin Category

Toys, Watches, Beauty& Healthcare, luggage

Mid Margin Category

Books, TV, Home & Kitchen, Gaming, Belts,Bags

Low margin categoryMobiles & Cameras,Computer accessories

CONCLUSION

COMPITITVE ADVANTAGE

COST ADVANTAGE VALUE ADVANTAGEMEASURES

GREATER MARKET SHARE UNIQUE OFFERINGGREATEST SALES VOLUME SHORTEST LEAD TIME

HIGH ON SCALE OF ECONOMY EFFECTIVE CUSTOMER SUUPORT

HOW TO ACHIVE

BY EFFECTIVE AND EFFICIENTSUPPLY CHAIN MANAGEMENT