The recent takeover of India’s e-commerce giant Flipkart’s assets by Walmart in a multi-billion dollar deal has redefined the rules of e-commerce game in India. Some analysts think that this is a brilliant move by US based Walmart which failed to make a mark in cash & carry retail last year to now aggressively enter India’s e-commerce space, while others are cautiously optimistic as there will be set of problems and challenges that Walmart will have to deal with. On the other hand, there is lack of regulatory clarity plaguing the domestic e-commerce industry. The study has gathered secondary data from a variety of sources including annual reports, articles in business press, external agencies, thinktanks, industry associations, analysts’ presentations etc. The key objectives laid down for the research study are as follows:
Introduction Zwass (2012) defined the term e-commerce as “the sharing of business information, maintaining business relationships, and the conducting business transactions by means of telecommunications networks”. The technology is fast changing which allows people to buy or sell anything at the click of a mouse. The benefits of convenience and comfort accrued to all the concerned stakeholders. E-Commerce is an important part of E-Business but both terms are often used interchangeably. It provides flexibility to consumers as it offers freedom of choice, ability to transact anything from anywhere at any time, hence saves time, money and effort. It helps in collection of data on buyers and sellers which is crucial for building relationships and crafting business strategies in the long run. Moreover, it provides a platform to small and medium scale businesses to reach out to larger customer base, enter into meaningful alliances with suppliers or other business firms, hence reduce cost and increase profits. Over the years, E-Commerce in India has grown in leaps and bounds across different products and customer segments. The industry is still at a very nascent stage but there has been a paradigm shift in the shopping behavior of an Indian customer as he is moving from traditional shopping to online shopping.
The Indian E-Commerce market is worth over $25 Billion, according to a report by PWC. The internet penetration and number of smart phone users in India have registered a sustained increase in the last five years, resulting in increase in volumes on the different online shopping websites. Around 60% of India’s e-commerce space is captured by travel and hospitality; another 30% is e-tailing
