Case Study On Online Shopping In India

You might hear this before: always testing, and testing everything

However, If you're running an e-commerce business, everything is not so easy that way. Testing entirely your business is very risky and the task if analyzing your data is so hard. And after researching, you found that you have a thousand things you should do today. So with that in mind, we've pulled together the following 2 real-world eCommerce lessons to help you cut straight to the chase in implementing some simple solutions to increase your online sales.

Case Study 1: Goat Rodeo In Online Payment In India


Today I would like to deliver the topic about an online shopping case study in india which is the mobile payment marketplace: Goat Rodeo

Alright, so what is the term Goat Rodeo?

It is a chaotic situation, in which powerful players with different agenda compete with one another for public acceptance and huge potential revenue.

There are many players in the online payment market like Visa, MasterCard, PayPal, American Express, Google Wallet, Apple Pay, and even large retailers like walmart and best buy.


We will take some team players to illustrate how this is called Goat Rodeo.

The first candidate: Apple Pay

Apple enters the battle on September 9 2014 with this announcement of Apple pay for iphone 6, joining other tight end like Google, already have develop a mobile payment system using near of your communication protocol.

Apple pay is not just an app, but an entire system within an ecosystem. Apple has develop relationships with many credit giants as well as 11 large bank credit card issuers, including jpmorgan chase, bank america, citigroup, and well fargo, which together account for eighty-three percent of us credit card payment volume.

Apple pay system uses several levels of security to avoid the loss of customer information. apples relies on the customer having a credit card on file with Apple, iTunes.

And three levels of security are

fingerprint reader

swipe device and

16 digit code

Traditional credit card payment system gather extensive information on user charge, but Apple pay gather no consumer information which is really a customer. in contrast, google wallet is paid for by placing ads on these screens, as user make mobile payment, therefore google has to gather the purchase information to target to track consumer.



So the question is: how will Apple make money from Apple pay? that will charge the credit card issuer Bank a 0.15% fee in return for guaranteeing authenticity of the transaction. zero point fifteen percent is a very small charge but the real value to apple is not the revenue from Apple pay, but from the sales of Apple product like iPhone, iPad, as well as the entire Apple ecosystem of services provided by items. however, there are some drawback to Apple pay: this works always on Apple devices. merchandise need to buy NFC edible part of so terminal. and consumer need to change their behavior to achieve widespread acceptance.

Apple has several competitor in more payment, the most popular only mobile payment systems are fought by Paypal, and Square.

The second one: Square

Square started in 2009 with square reader: a square plastic device that plugs into an iPhone or iPad using square up to alarm merchant to either accept credit card payment from customers. square also develop a square register, which is says software apps that turn a tablet into a point-of-sale terminal, and cast will register. Square has been very popular with small business like coffee shops, small retailers, and taxis driver, allowing them to a set credit payment.

And the next big player: Paypal

The next player must be told is Paypal. Paypal is currently most successful and palatable mobile payment system. it enables mobile payment in three ways:

 first Sells to merchants of device that allow them to swipe credit card using a smartphone or tablet just like square device.

 second is offer mobile Paypal browser to customer to purchase and make payment at a website.

 and the third method is based on updated app for iOS and Android device

 paypal is currently processing 180 billion in transactions.

OK. so how about Google wallet?

It is an online nfc-based payable system that uses an Android. Google Wallet is enabled by a prepaid mastercard.And new users must keep a cash balance with the issuing bank to fund purchases. and have a Google Wallet account.


 so how does Google wallet make money? Google Wallet is free to credit card company, and merchants, and does not take any slight transaction like many other mobile payment system. instead Google retains the right to display ads and coupons, loyalty programs, and daily deals by local merchants on the user mobile screen.


 so far however, google wallet has not been a market success and has not gained attraction with consumers and merchants. perhaps the strongest competition for what Apple pay and Google Wallet will come from the merchant customer exchange.


MCX was the adventure of 50 large.the mcx system is called currency that was released in a national roll-out in 2015. and It is  the only merchant-owned mobile payment system. currencies in an app based mobile payment system for both iOS and Android devices that permit customer to pay at the point of sale from credit or debit card, gift cards or by macau's using their smartphones . currency work by allowing user to load value into the apps, it then generates the QR code unique to the customer that is displayed on the full screen. After swiping these QR code, and encrypted token is generated and sent to the mcx cloud servers which store all the credit confirmation and make me approval decision. 

Why do they want to invest in this field?

Why all these national one merchant willing to invest big liam in the mobile payment system when the financial service firms, and technology players also investing millions in competing system. the answer is control over the customer during transaction and inflammation on customer purchase history that the apps will be recording.


The merchants do not want this valuable marketing is says to your floaty financial services firms or google. it coming mobile payment better is one between 1.  tech company like apples and Google and 2. traditional brick-and-mortar merchants. the bank and credit company will benefit no matter who wins, the future for smartphone mobile payments is a sore, but it is unlikely that all payment system described about will survive and also quite likely that consumer will remain confused at all their pain options for some time yet to come.


Case Study 2: Why Ecommerce Businesses In India Get Loss?

We often see in news that every Ecommerce is in loss. Sometimes Snapdeal faced a loss of 500 Cr or Flipkart faced a loss of 1000 Cr. What is the problem in their business model due to which every ecommerce is in loss? Today we will talk about Ecommerce Majority of e-commerce nowadays is in lossBut why is it so? Directly they are buying from companies at good margins. But still company is paying from its pocket when it gets delivered to end user. What is this happening?

the EXPENSES is too high

To understand for eg,there is juicer grinder worth 1000 but amazon buys it worth 800 from the company. And we think company margin of 200 is saved. But there are many additional expenses involved Major cost is Logistics Cost. If any product is coming at your place, so the logistics cost which is being spent by the company is 20-25%


If the product is light, it will come by air and if it is heavy it will come by land. Let's take a real life example that you want to send a product from delhi to chandigarh. How much logistics cost you need to spend to send it to chandigarh? If you are sending by surface or land, you have to give Rs.110 flat. Additionally,there will be 20% fuel cost, If its COD, then Rs.25 or 1% of amount have to be given to them. Then the packing cost involves Rs.18-19 per running feet. Running feet is if you have a product, then add length, breadth and height in feets and get it multiplied by 4, you will get running feet.


 Multiply that running feet by 19.5, that will be the packaging cost. Total will be the Logistics cost. They have also given additional service tax for that. They are also paying sales tax and tax, and if they paying through Payment gateway rather than COD, then cost is involved for payment gateway as well.


and too many other types of expenses

We have not added employment salary, operation, building, website running and advt cost yet. So why ecommerce are still working on loss making propagation? Every company needs it. First Mover advantage, For eg, paytm. Everyone had in their mind that PayTM is the first payment gateway. So everyone approached PayTM after demonetization. Ecommerce company wants the same. So whenever there will be e-commerce need, first demand will be of Flipkart, Amazon, Snapdeal, Jabong, myntra.  All these brands will be in your mind.


Then they will earn money from you. Majority of companies are running ecommerce to take money from investors. So this was the main business of ecommerce. Why are they in so much loss. Why no ecommerce in India is profitable. So guys,this topic ends here. If you liked it, please like, share and comment.


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