Authors: Dr. Somabhusana Janakiballav Mishra, Debasish Rout, Dr. Ranjan Kantha, Binita Majhi
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In the world of business, the competition is very high. Every firm, every corporation is in the race to win more and more customers as if they are in a war with one another where one organization attacks another with their strategies and other defends itself. As a world of red ocean where everyone is attacking one another and there’s always danger around them. This war can be distinctively seen in the e-commerce industry. The e-retails websites try to overtake their competitors by adopting new and advanced technologies and strategies to gain better goodwill in the market, which will ultimately increase their web traffic. This study is an insight of the scenario of the two giants e-commerce e-retailers of India. It aims to check the difference between these two giants in India viz. Amazon India and Flipkart under the customer perception towards them.
A. History of Flipkart
Flipkart.com is an e-commerce company that was founded in the year of 2007 by Mr. Sachin Bansal and Mr. Binny Bansal. They both are the alumni of the Indian Institute of Technology, Delhi. They both had been working for Amazon.com previously. It is operating exclusively in India where its HQ is in Bangalore, Karnataka. The company is registered in Singapore and is being owned by a Singaporean based holding company. Flipkart has launched its own product range under the name “DigiFlip”, Flipkart also launched its own range of personal healthcare and home appliances under the brand “Citron”. During their initial years, Flipkart focused only on books, but soon, expanded and it started offering other products like electronic goods, A/Cs, air coolers, stationary supports, lifestyle products and E-books.
Legally, Flipkart is not an Indian company, rather a Singaporean company because it is registered in Singapore and majority of the shareholders are foreigners. And because foreign companies are not allowed to do multi-branding e-retailing in India, Flipkart sells goods in India through a company called WS Retails so, other third-part sellers or companies can also sell their goods through the Flipkart platform. Flipkart now employs more than 23,000 people where Flipkart has now offered the employees to have a permanent work from home, hence 16,000 full time people and except for a few critical roles, most of them have been working work from home since march 2020, after the outbreaks of the Covid-19 pandemic. Flipkart allows payment methods such as Cash on Delivery (COD), credit/debit card transactions, net banking, e-gift vouchers, card swipe on delivery and now the e-wallets and the UPIs. Flipkart is presently one of the largest and biggest online retailers on India, present across more than 14 products categories and with a reach in around 150 cities. Flipkart is currently 10000 members strong team, with 3000 sellers+ on its platform and delivering 5 million shipments per month.
It made its presence felt in online retailing by offering path breaking services like Cash on Delivery (COD), 30 days re-placement Guarantee, Emi options, Flipkart mobile app etc.
B. History of Amazon.in
Amazon.com founded by Mr. Jeff Bezos in 1994, is an American electronic commerce company with HQ in Seattle, Washington. Jeff Bezos incorporated the company as “Cadabra” on July 5, 1994, and the site went online as Amazon.com in 1995. Bezos changed the name ‘Cadabra.com” to Amazon.com because it sounded too much like cadaver. Additionally, a name beginning with ‘A’ was preferential due to probability due to the probability it would occur at the top of any list that was alphabetized. It is the largest internet-based company in the united-states. Amazon.com started as an online bookstore, but soon diversified, selling DVDS, CDs, video games, electronic, Furnitures, food, toys and jewellery. The company also produces consumer electronic notably, Kindle, Fire Tablets, Fire Tv and phone and is a major provider of cloud computing services.
Amazon has separate retail websites for US, UK and Ireland, France, Canada, Germany, the Netherlands, Italy, Spain, Australia, Brazil, Japan, China, India and Mexico with sites for Sri Lanka and South East Asian countries coming soon. Amazon also offers international shipping to certain other countries for some of its product. In the year of 2011, it had professed an intention to launch its websites in Poland, and Sweden.
In early June 2013, amazon.com had launched their Amazon India marketplace without any marketing campaigns in July, 2013, Amazon had announced to invest $2 Billion (Rs. 12,000 crores) in India to expand business, after its largest Indian rival Flipkart too had announced to invest $1 Billion.
C. Reverse Logistics
Reverse logistics is a type supply chain management that moves goods from customers back to the sellers or manufacturers. Once a customer receives a product, processes such as returns or recycling require reverse logistics.
II. LITERATURE REVIEW
III. OBJECTIVE OF THE STUDY
IV. SCOPE OF THE STUDY
The scope of the study extends to two giants e-retailers of India viz. Flipkart and Amazon India.
V. SIGNIFICANCE OF THE STUDY
The study is an insight into the competitive scenario of the e-commerce industry of India. This study helps us to understand reverse logistics as an integral part of the e-commerce business.
VI. LIMITATIONS OF THE STUDY
VII. RESEARCH METHODOLOGY
For this particular study, the researchers have used primary research as a research tool, a questionnaire has been made for taking responses from the 60 people which was circulated through online platforms as few responses can be collected using online questionnaire. For the additional data, the researchers used secondary analysis method to collect data from various websites, case studies, articles, publications.
VIII. DATA ANALYSIS AND INTERPRETATION
This study throws light on various aspects related to Flipkart and Amazon India. Also, it is seen that Flipkart is better than Amazon in terms of rating. It is also seen that many of the respondents had chosen Amazon and Flipkart in different aspects. And it is proven that Flipkart is the Market leader, it is still observed that respondents also like Amazon India. A valid reason for this would be the wider accessibility of products of superior quality. Also, Flipkart’s customer care is proven to be better than Amazon India. It is also observed that most of the respondents choose cash on delivery followed by debit cards and credit cards. Fashion-related and skincare and personal hygiene are the product categories that are the most returned products and even if they are the high-returned products because of their late delivery or cheap quality of products and but they scored the best on the customer’s return experience, showing the returned products are easily accepted by the seller. It is also observed that the most ordered products are fashion-related products and electronics. It is also observed that there are a lot of ties between the Amazon India and Flipkart like the pricing strategy, their impression on the customers and customer’s preferrable online shopping site. It is also observed both the Amazon India and Flipkart are into deep neck competition. Through people are attracted towards Flipkart, yet it was many of them choose to not retain with Flipkart and rather switch to Amazon India for its better quality and Flipkart should learn from its mistakes and should make a balance between convenience, quality and quantity to retain its leadership position in the long run.
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Copyright © 2022 Dr. Somabhusana Janakiballav Mishra, Debasish Rout, Dr. Ranjan Kantha, Binita Majhi. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.