This project shows comparative study between Ebay and Amazon.

1. A PROJECT REPORT
ON
VS
On the basis of Marketing Strategies
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF
THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION AFFILIATED TO GGSIPU
(2014-2017)
Submitted To: - Submitted By :
MS.Parul Raj Name : Gaurav
(Associate Prof.) Roll no : 01750401714
JAGAN INSTITUTE OF MANAGEMENT STUDIES
Sector-5, Rohini, Delhi
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2. INDEX
S.NO. TOPIC PAGE NO.
1 Certificate 3
2 Acknowledgement 4
3 Executive Summary
• Chapter 1 (Introduction)
• Chapter 2 (Literature Review)
• Chapter 3 (Research methodology)
• Chapter 4 (Data Interpretation)
• Chapter 5 (Conclusion)
• Chapter 6 (Recommendation)
6-48
4 Bibliography 49-50
5 Appendix
• Questionnaire
• List of Figure
51-54
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3. CERTIFICATE
This is to certify that the project titled “Marketing Strategies of Amazon and
eBay” has been accomplished by Gaurav under my guidance and supervision.
The project is being submitted by him in partial fulfilment of requirements for the
paper PD & CS (Minor Project Report) of the Bachelors of Business
Administration degree in Business management from Guru Gobind Singh
Indraprastha University.
This work has not been submitted by him anywhere else for the award of any
degree or diploma. All sources of information and help have been duly mentioned
and acknowledged.
Ms. Parul Raj
Associate Professor
JIMS, Rohini
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4. ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was so fortunate to get
support from a large number of people to whom I shall always be grateful. I would
like to record my gratitude to “Amazon” and “eBay” for allowing me to understand
this project.
I would also like to thank my faculty member, Ms. Parul Raj, Associate Professor,
JIMS, Rohini, for her guidance, precious time and support that she offered.
Last but not the least, I would also like to thank all the respondents for giving me
their precious time and relevant information and experience that I required towards
fulfilment of this project.
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5. Chapter - 1
INTRODUCTION
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6. Marketing Strategy
1.1 Concept meaning
The terms marketing strategy and strategic market planning are often used interchangeably,
which sometimes leads to confusion. We will use the term marketing strategy to mean the overall
strategy of an organization in relation to a particular market. In this learning guide we will
explore the process of analysis and decision making which organizations go through as they
define and implement their approach to that market. Marketing plans will form part of this
process, in particular when it comes to implementation.
Key aspects of the process are that it is cyclical, i.e. subject to constant review and reiteration;
that it is dynamic, subject to changes in the environment (including customers and competition);
and that it should be shared within the organization, rather than being the sole preserve of the
marketing department, if it is to be wholeheartedly adopted and implemented by the whole
organization.
Two interrelated trends in marketing approaches have changed the emphasis of marketing
strategy in recent years. These are relationship marketing and customer economics. The
increased use of sophisticated database information in marketing has helped further the adoption
of these two approaches and indeed both require such information in order to be successfully
implemented. If you are specifically interested in relationship marketing, there is a further
learning guide specifically on this topic.
This overview will introduce a framework for the steps to be followed in a comprehensive
marketing strategy process, the information and analysis required at each stage and the decisions
to be taken at each stage. There are of course other possible frameworks and approaches which
would be equally acceptable, provided all the key steps are included. What is crucial is to see
each stage, and the whole process, as dynamic and iterative.
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7. Process of Marketing Strategies
1.2Objectives and Scope
 To understand the topic.
 To know about marketing strategies of Ebay and Amazon.
 To get more information about marketing.
 Increase knowledge about both company.
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8.  To dawn upon the areas of excellence and improvement.
1.4 Company profile
eBay Inc. is an American multinational corporation and e-
commerce company, providing consumer to consumer &business to consumer sales services
via Internet. It is headquartered in San Jose, California. eBay was founded by Pierre Omidyar in
1995, and became a notable success story of the dot-com bubble. Today, it is a multi-billion
dollar business with operations localized in over thirty countries
The company manages eBay.com, an online auction and shopping website in which people
and businesses buy and sell a broad variety of goods and services worldwide. In addition to its
auction-style sales, the website has since expanded to include "Buy It Now" shopping; shopping
by UPC, ISBN, or other kind of SKU (via Half.com); online classified advertisements
(via Kijiji or eBay Classifieds); online event ticket trading (via StubHub); online money transfers
(via PayPal) and other services.
It is a free website, but charges users an invoice fee when sellers have sold or listed any
items
CEO : Devin waning
Address: eBay Headquarters
2065 Hamilton Avenue
San Jose, California 95125
USA
Phone no: (800) 322-9266, (448) 376-7400
Type of company: E-commerce
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9. Amazon.com, Inc.is an American electronic
commerce and cloud computing company with headquarters in Seattle, Washington. It is the
largest Internet-based retailer in the United States.Amazon.com started as an online bookstore,
diversified,selling DVDs, Blurays, CDs, video downloads/streaming, MP3downloads/streaming,
software, video games, electronics, apparel, furniture, food, toys and jewelry. The company also
produces consumer electronics—notably, Amazon Kindle e-book readers, Fire tablets, Fire
TV and Fire Phone—and is the world's largest provider of cloud computing services. Amazon
also sells certain low-end products like USB cables under its in-house brand AmazonBasics.
Amazon has separate retail websites for United States, United
kingdom & Ireland, France, Canada, Germany, Italy,Spain,the Netherlands, Australia, Brazil, Jap
an, China, India and Mexico. Amazon also offers international shipping to certain other countries
for some of its products. In 2011, it professed an intention to launch its websites
in Polandand Sweden.
Amazon is founded by jeffbazos in 1994
Address:410 terry ave.north Seattle
WA USA
Phone no:1-206-266-1000
Type of company: E-commerce
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10. 1.4.2 List of Actuations:
StubHub
StubHub was acquired by eBay in January 2007 for a reported $310 million. According to CNN
Money, 2007 was a very successful year for the company, handling five million individual
transactions, more than in the previous six years combined of its history. Staffing at StubHub had
increased to 350 workers by the time of the sale. Eight months after the acquisition, StubHub
reached an exclusive agreement with Major League Baseball(MLB). They get a piece of the 25%
in commissions StubHub earns on either end of a season tiy in 2007, alleging "intentional
interference" with Ticketmaster's contractual rights.
Skype
eBay Inc. acquired Skype in 2005 and significantly expanded its customer base to more than 480
million registered users worldwide. To focus on its core e-commerce and payments businesses,
eBay Inc. sold a majority stake in Skype in November 2009, retaining a minority investment in
the company. In May 10, 2011, Microsoft announced that they had acquired Skype for $8.5
billion.
Craigslist
In the summer of 2004, eBay acknowledged that it had acquired 25% of classified listings
website, Craigslist Former Craigslist executive Phillip Knowlton was the seller, and he insisted
that his former employer was aware of his plans to divest his holdings. Initially, eBay assured
Craigslist that they would not ask the company to change the way it does business. eBay
spokesman Hani Durzy stated that the "investment was really for learning purposes; it gives us
access to learn how the classified market online works".
In March 2005, eBay launched the classifieds service KijijiIn April 2008, eBay sued Craigslist to
"safeguard its four-year financial investment", claiming that in January 2008, Craigslist took
actions that "unfairly diluted eBay's economic interest by more than 10%. Craigslist countersued
in May 2008 "to remedy the substantial and ongoing harm to fair competition" that Craigslist
claims is constituted by eBay's actions as a Craigslist shareholder. In September 2010, Delaware
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11. Judge William Chandler ruled that the actions of Craigslist were unlawful, and that the actions
taken by Craigslist founders Jim Buckmaster and Craig Newmark had "breached their fiduciary
duty of loyalty", and restored eBay's stake in the company to 28.4% from a diluted level of
24.85%. However, the judge dismissed eBay's objection to a staggered board provision citing
that Craigslist has the right to protect its own trade secrets. eBay spokesman Michael Jacobson
stated "We are very pleased that the court gave eBay what it sought from the lawsuit".
PayPal
On October 3, 2002, PayPal became a wholly owned subsidiary of eBay Its corporate
headquarters are in San Jose, California United States at eBay's North First Street satellite office
campus. The company also has significant operations inOmaha, Scottsdale, Charlotte, Austin,
and Boston in the United States; Chennai in India; Dublin in Ireland; Kleinmachnowin Germany;
and Tel Aviv in Israel. From July 2007, PayPal has operated across the European Unionas a
Luxembourg-based bank.
On September 30, 2014, eBay Inc. announced it would split into two independent public
companies—eBay and PayPal—on July 20, 2015.
2003
• Online music retailer CDNow. By 2011, the website cdnow.com was defunct and in use
by a different company.
2004
• Joyo.com a Chinese e-commerce website2005
• BookSurge, a print on demand company
• Mobipocket.com an e-book software company
• CreateSpace.com (formerly CustomFlix), a distributor of on-demand DVDs (since
expanded to include print on-demand books, CDs, and video), based in Scotts Valley,
California
• Smallparts.com, an industrial component supplier.
2006
• Shopbop, a retailer of designer clothing and accessories for women, based in Madison,
Wisconsin
2007
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12. • dpreview.com a digital photography review website based in London; Brilliance Audio,
the largest independent publisher of audiobooks in the United States.
2008
• Audible.com Fabric.com;
• Box Office Mojo
• AbeBooks
• Shelfari(including a 40% stake in LibraryThing and whole ownership
of BookFinder.comGojaba.com, and Fillz)
• Reflexive Entertainment a casual video game development company
2009
• Zappos an online shoe and apparel retailer
• Lexcycle
• SnapTell, an image matching startup,
• Stanza, a rival e-book reader to Amazon's Kindle.
2010
• Touchco
• Woot
• Quidsi
• BuyVIP
• Amie Street
• Toby Press
2011
• LoveFilm
• The Book Depository
• Pushbutton
• Yap
2012
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13. • Kiva Systems
• Teachstreet
• Evi
2013
• IVONA Software
• Goodreads
• Liquavista,
2014
• Double Helix Games
• comiXology
• Twitch
2015
• Annapurna Labs, a chip designer based in Yokneam, Israel
1.4.3 Company’s mission and vision statement:
• eBay's mission is to provide a global trading platform
where practically anyone can trade practically anything.
• eBay Inc. pioneers communities built on commerce,
sustained by trust, and inspired by opportunity. eBay
brings together millions of people every day on a local,
national and international basis through an array of
websites that focus on commerce, payments and
community
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14. • “We seek to be Earth’s most customer-centric company
for four primary customer sets: consumers,
sellers, enterprises, and content creators.”
• To build the world’s most customer–centric company.
• To establish a place where customers could buy
anything.
• Located in Seattle.
1.4.4 Product Range:
And
• Mobile and accessories.
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15. A mobile phone (also known as a cellular phone, cell phone, hand phone, or simply a phone)
is a phone that can make and receive telephone calls over a radio link while moving around a
wide geographic area. It does so by connecting to a cellular network provided by mobile phone
operator, allowing access to the public telephone network. Mobile phone accessories include
any hardware or software that is not integral to the operation of a mobile phone as designed by
the manufacturer.
• Laptop and Tablet.
A laptop or a notebook is a portable personal computer with a clamshell form factor,
suitable for mobile use. Although there used to be a distinction
between laptops and notebooks (the former were bigger and heavier than the latter), there
is often no longer any difference in practice. Laptops are commonly used in a variety of
settings, including at work, in education, and for personal multimedia.
A tablet computer, commonly shortened to tablet, is a mobile computer with
a touchscreen display, circuitry and battery in a single device. Tablets come equipped
with sensors, including cameras, a microphone and an accelerometer, and the touchscreen
display uses finger or stylus gestures substituting for the use of computer
mouse and keyboard. They usually feature on-screen, pop-up virtual keyboards for
typing. Tablets may include physical buttons for basic features such as speaker volume
and power, and ports for network communications and battery charging
• Fashion
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16. Fashion is a popular style or practice, especially
in clothing, footwear, accessories, makeup, body piercing, or furniture. Fashion is a
distinctive and often habitual trend in the style in which a person dresses. It is the
prevailing styles in behavior and the newest creations of textile designers.[1]
Because the
more technical term costume is regularly linked to the term "fashion", the use of the
former has been relegated to special senses like fancy dress or masquerade wear, while
"fashion" generally means clothing, including the study of it. Although aspects of fashion
can be feminine or masculine, some trends are androgynous
And
• Home and Living items.
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17. Home accessories are furniture items which are easy to replace and easy to move, and include almost
any items that aren't strictly functionally necessary in the decorated space. These accessories include
such items as curtains, sofa sets, cushions, tablecloths and decorative craft products, decorative
wrought iron, and so on. These items are commonly used in indoor furnishings and layout and can
include cloth items, paintings, and plants.
• Beauty product.
Cosmetics, also known as makeup or make-up, are care substances used to enhance
the appearance or odor of the human. They are generally mixtures of chemical
compounds, some being derived from natural sources (such as coconut oil) and many
being synthetics. Lips stick, foundation eye liner, mascara etc. come under it
And
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18. • Other electronic items.
Consumer electronics are electronic equipment intended for everyday use, most often
in entertainment, communications and office productivity. In British English they are
often called brown goods by producers and sellers.Radio broadcasting in the early 20th
century brought the first major consumer product, the broadcast receiver. Later products
include personal computers, telephones, MP3 players, audio
equipment, televisions, calculators, GPS automotive electronics, digital cameras and
players and recorders using video media such as DVDs, VCRs or camcorders.
Increasingly these products have become based on digital technologies.
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19. And
1.4.5 Size of organization:
• Revenue = 17.9 billion us dollar
• Operating income =3.51 billion us dollar
• Employees = 34000
• Total asset = 45 billion US dollar
• Revenue =88.8 billion us dollar
• Operating income = 178 million US dollar loss
• Total Asset =54 billion US dollar
• Employees = 1,83
1.4.6 Organization structure:
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20. The organizational structure of eBay revolves around two different business segments. These
two business segments include our marketplace and payment segment. Our marketplace segment
consists of the ecommerce companies that we own. These companies include ebay.com,
stubhub.com, shopping.com, rent.com and half.com.These websites give our company the ability
for global commerce. The company is structured such that these individual commerce companies
fall under the management of the President of Ebay Marketplaces (Ebay 2010 annual report )
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21. With so many different products and services, Amazon has a divisional structure. In a
divisional structure, different departments for different products and services allow department
heads to appropriately focus their resources and results, as well as monitor the organization's
performance.
This structure is best for such a large organization because it is the most flexible. Amazon's
organizational structure is comprised of CEO and founder Jeffery Bezos (pictured above) and an
eight-member board of directors. The CEO oversees the Chief Financial Officer (CFO), the
Chief Technology Officer and the following 8 departments: Business Development, ecommerce
Platform, International Retail, North America Retail, Web Services, Digital Media, Legal &
Secretary, and Kindle. The CFO oversees the Real Estate and Control department. International
Retail oversees three separate departments: China, Europe and India. North America Retail
oversees the following five departments: Seller Services, Operations, Toys, Sports & Home
Improvement, Amazon Publishing and Music & Video. The Web Services department oversees
Amazon S3 and Database Services. Other departments include Product Development & Studios,
Europe Operations, Global Advertising Sales, Computing Services, and Global Customer
Fulfilment.
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22. 1.4.7 Company position in market:
This is the eBay's Indian version. eBay is an American company founded in 1995.
eBay is basically a market place where seller can list their products. EBay is one of
the oldest market places in the web industry. It do have auction as well as buy now
feature for a product. EBay 2nd
largest e - commerce site
Amazon was started in 1995 as online store for books. But very sooner, they
expanded to all other trendy products like DVD,electronics and other ones.
Amazon now do have nearly 1 lakh employees .It is said that amazon do have
more 250 M unique visits per month. The growth of amazon was really fast and
have acquired a lot of companies. Amazon is largest e-commerce site in world
1.5 Industry:
and
Both are belongs to E- Retailor is a form of electronic commerce which allows consumers to
directly buy goods or services from a seller over the Internet using aweb browser. Alternative
names are: e-web-store, e-shop, e-store, Internet shop, web-shop, web-store, online store, online
storefront and virtual store. Mobile commerce (or m-commerce) describes purchasing from an
online retailer's mobile optimized online site or app
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23. 1.5.1 History
English entrepreneur Michael Aldrich invented online shopping in 1979. His system connected a
modified domestic TV to a real-time transaction processing computer via a domestic telephone
line. He believed that videotex, the modified domestic TV technology with a simple menu-driven
human–computer interface, was a 'new, universally applicable, participative communication
medium — the first since the invention of the telephone.' This enabled 'closed' corporate
information systems to be opened to 'outside' correspondents not just for transaction processing
but also for e-messaging and information retrieval and dissemination, later known as e-business.
His definition of the new mass communications medium as 'participative' [interactive, many-to-
many] was fundamentally different from the traditional definitions of mass
communication and mass media and a precursor to the social networking on the Internet 25 years
later.
In March 1980 he went on to launch Redifon's Office Revolution, which allowed consumers,
customers, agents, distributors, suppliers and service companies to be connected on-line to the
corporate systems and allow business transactions to be completed electronically in real-time.
During the 1980s he designed, manufactured, sold, installed, maintained and supported many
online shopping systems, using videotex technology. These systems which also provided voice
response and handprint processing pre-date the Internet and the World Wide Web, the IBM PC,
and Microsoft MS-DOS, and were installed mainly in the UK by large corporations.
The first World Wide Web server and browser, created by Tim Berners-Lee in 1990, opened for
commercial use in 1991Thereafter, subsequent technological innovations emerged in 1994:
online banking, the opening of an online pizza shop by Pizza Hut, Netscape's SSL v2 encryption
standard for secure data transfer, and Intershop's first online shopping system. The first secure
retail transaction over the Web was either by NetMarket or Internet Shopping Network in
1994. Immediately after,Amazon.com launched its online shopping site in 1995 and eBay was
also introduced in 1995. Alibaba's sites Taobao and Tmall were launched in 2003 and 2008,
respectively.
Retailers are increasingly selling goods and services prior to availability through pretail for
testing, building, and managing demand.
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24. Ebay vs Amazon 10 year Revenue Chart
Figure no.1.2
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25. Visitors
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26. Chapter – 2
Literature review
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27. VS
2. Literature review
EBay and Amazon, vis-a-vis their market valuations to see which stock looks cheaper.
Examining various factors that impact free cash flow and thereby valuation – such as top-line,
bottom-line, and capital expenditure indicators – we note that eBay seems slightly underpriced
currently.
Though Amazon is clearly ahead of eBay in terms of factors including number of active buyers,
transaction volumes, revenue growth, etc., its profitability levels are very low compared to
eBay’s. The latter’s asset-light business model lends to high cash flows and margins; coupled
with the rapidly growing payments business, eBay’s Marketplaces business’s outlook for
revenue growth is quite strong, in our view. In addition, eBay’s low capital expenditure
requirement allows significant cash for expansion and share buybacks. Stacking these
fundamentals against relative valuation metrics, we believe eBay’s P/E and P/FCF ratios trade at
a discount to Amazon’s metrics. We have summarized our findings in the below given info-
graphic so that our readers can go through these comparisons easily.
Amazon Is Winning In Terms Of Market Share and Revenue Growth. In terms of revenue and
market share growth, Amazon is clearly the winner against eBay. Amazon’s global active
customer base of around 260 million, far outnumbers eBay’s 152 million buyers in its
marketplaces segment. In terms of GMV, this translates into Amazon’s transaction volumes
being around 50% greater than eBay’s volumes. The revenue of both companies is not directly
comparable, as eBay’s marketplaces model primarily generates revenue through its take rate on
transactions undertaken by third-party sellers and on net-payments facilitated by PayPal; in
contrast, Amazon owns a large portion of inventory that it sells, and hence it derives gross
revenues on the sale of these products; along with that, it also recognizes its share of revenues
from sales generated by third-party sellers on its sites. As a result, this makes ratios based on
sales (such as P/S and capex as a % of sales) less comparable between the two companies.
Considering the rapid growth being seen in the e-commerce market, we think that investors have
assigned a significant weight on Amazon’s rapid market share growth in their estimate of the
company’s intrinsic value, as they think that prices and margins could be improved later after
capturing a dominant share of the market. The trailing twelve months revenue growth for
Amazon came in much higher at 21.5%, against eBay’s 9.3% and 13% sales increase in its
marketplaces and overall business. We think the top-line outlook for Amazon is strong in the
coming years, since it invests large portions of its profits on growth initiatives. The same outlook
looks weaker for eBay taking into account the recent traffic-related challenges being seen on its
websites. However, the sweet spot in eBay’s business is the rapidly growing payments business,
and we think this segment could be slightly undervalued at this point.
However, eBay’s Business Generates Higher Cash Flows and Margins
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28. Amazon’s competitive strengths seem to completely fade, when we compare its bottom-line
results with eBay’s. eBay’s asset-light marketplace model generates high cash flows and
margins, making it a much more attractive business from a value perspective. During the last
twelve months, eBay posted EBITDA and free cash flow margins of 29.5% and 26.1%
respectively – in comparison, the same ratios for Amazon were recorded at a dismal 5.2% and
1.3% respectively. Hence, even while eBay is losing some of its ground in the e-commerce
business to Amazon, it’s much more successful in terms of creating value for shareholders.We
have projected Amazon’s profitability to rise slightly in our valuation model, as we think its
management will now start focusing more closely on margins given the recent investor pressure.
The increasing proportion of third-party sales in Amazon’s business could improve its margins.
In addition, we expect Amazon to raise its prices where it can, rein in costs, and look at new
investments more analytically from a risk/return tradeoff perspective in this outlook.
Capital Expenditure Requirement Is Lower For eBay.
eBay requires lower capital expenditure (in absolute terms) in its business, since it does not have
to invest heavily in warehousing, distribution centers, data centers, etc. This reflect its
marketplace model, as we noted, which is unlike Amazon. However, when seen as a % of sales,
capex requirement seems to be higher for eBay, as its revenue gets understated (compared to
Amazon) as discussed earlier in the article.
All In All, We Think eBay Is Cheaper From A Valuation Perspective
Taking into account, several relative valuation metrics including P/E, EV/EBITDA and P/FCF,
we think that eBay represents a better value to the investor, as compared to Amazon at current
pricing levels. Particularly, at around 17x forward earnings and 16x last twelve month free cash
flows, eBay seems to be trading at a discount as compared to Amazon. In addition to relative
pricing, our absolute valuation models also present a similar picture. Our valuation model for
eBay results in a $67 price target for the company, which represents around 20% premium to its
current market price. In comparison, our $303 price estimate for Amazon, is in line with the
current market price.( Forbes Dec 19,2014)
eBay India, fully owned by the US listed eBay Inc., today said it is still in investment mode in
the country. “We are still in investment mode in India. This is an important market for eBay as it
is seen growing at more than 100 per cent,” an eBay India official told PTI.According to
available information, eBay India has posted a loss of around Rs 88 crore in 2014.“The company
was focusing at new customer acquisition at a time when competition has intensified. To do that
it needs investment and hence, there are little chances that loss will reduce significantly if not
widened,” the official said. “Over the last decade, eBay India has focused on delivering a
fantastic user experience. We are offering first time user rewards this festive season,” eBay India
head, retail exports and lifestyle, Navin Mistry said here today during the launch of ‘Loudest
Diwali Ever’ program. EBay promises huge discounts on products. But the company will not go
into deep discounting or disruptive marketing model, company spokesman GirishHuria said.
The company has seen the number of buyers grow from 3.5 million in 2014 to 4.5 million till
now of 2015.The number of sellers on eBay has also seen sharp jump to 45,000 now, the
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29. company said adding Tier I and tier III cities are gradually gaining momentum in online sales
and 60 per cent of the new buyers are coming from these regions. EBay said the company will
continue to work with more state agencies like those in Gujarat and Odisha for putting up
products of Indian diaspora before the global buyers. Meanwhile, the company hopes its used
and refurbished category grows from 5 per cent of total sales to 20 per cent. (Oct.5, 2015 The
Financial Express).
Statistics show that in 2012, Asia-Pacific increased their international sales over 30% giving
them over $433 billion in revenue. That is a $69 billion difference between the U.S. revenue of
$364.66 billion. It is estimated that Asia-Pacific will increase by another 30% in the year 2013
putting them ahead by more than one-third of all global ecommerce sales.
The largest online shopping day in the world is Singles Day, with sales just in Alibaba's sites at
US$9.3 billion in 2014.
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30. Chapter - 3
Research Methodology
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31. VS
Scope of the Study
The project undertaken makes me able to improve my skill and expertise. It help me in getting an
idea about e commerce industry and also understand consumer behavior about online shopping.
It increase my confident on professional ground by dealing with consumers which is to hard to
convince them. This project also Help Company to knowing what consumer want from them.
This study increase my knowledge about both of the company (EBay and Amazon).it also help
me to understand about the marketing strategy of Amazon and EBay. In order to complete the
objective of project a survey has been conducted among the consumers of e-commerce websites.
This survey is based on questionnaire filling method and limited to some parts of Delhi region.
The survey is restricted to is the information needed to show legal, technical and financial
transparency between project developer and consumer. It’s also provide a lot of market trend and
consumer preference.
Research Methodology Adopted
• Type of research – Qualitative research.
• Sampling type - As research on the bases of geographical location
is Delhi.
• Sample size - 75
• Data Source – Primary data is collected by filled questionnaire
from consumers.
• Research Instrument – Questionnaire is conducted to extract the
information from .
Consumers.
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32. • Method of sampling – Random.
VS
Type of Data
Primary Data;-
Primary data means original data that has been collected specially for the purpose in mind. It
means someone collected the data from the original source first hand. Data collected this way is
called primary data.
The people who gather primary data may be an authorized organization, investigator, enumerator
or they may be just someone with a clipboard. Those who gather primary data may have knowledge
of the study and may be motivated to make the study a success. These people are acting as a
witness so primary data is only considered as reliable as the people who gathered it.
Example: Questionnaire made for research.
Advantage:
1. The investigator collects data specific to the problem under study.
2. There is no doubt about the quality of the data collected (for the investigator).
3. If required, it may be possible to obtain additional data during the study period.
Secondary Data ;-
Secondary data is data that has been collected for another purpose. When we use Statistical
Method with Primary Data from another purpose for our purpose we refer to it as Secondary Data. It
means that one purpose's Primary Data is another purpose's Secondary Data. Secondary data is
data that is being reused. Usually in a different context.
Example: Data from newspaper, books and etc.
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33. Advantage:
1. The data’s already there- no hassles of data collection
2. It is less expensive
3. The investigator is not personally responsible for the quality of data (“I didn’t do it”)
Chapter - 4
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34. DATA INTERPRETATION
VS
4. DATA INTERPRETATION
4.1 Figure
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35. Opinion Frequency %
Yes 72 96%
No 3 4%
According to research 96% i.e. of people shop online, whereas 4% people i.e. 3, not buy
anything from online website.
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36. VS
4.2 Figure
Opinion Frequency %
Yes 65 89
NO 8 8
According to research 89% i.e. 65 consumer think that online shopping is more secured .however
11% consumer think or may experience that online shopping is not secured.
VS
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37. 4.3 Figure
Online website Frequency %
Daily 12 16.4
Monthly 41 56.2
Annually 11 15.1
Weekly 9 12.3
According to research 16.4 % consumer are visiting daily online website for shopping, 56.2%
consumer visit monthly online website for shopping however only 15% consumer like to visit
online shopping website annually and 12.3 % consumer like to visit online website weekly
VS
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38. 4.4 Figure
Choice Frequency %
Cheaper price 16 22.5
Good quality product’s availability 12 16.9
Easy return policy 10 14.1
Free home delivery 33 46.5
According to research 22.5% consumer like shop online due to cheaper rate , 16.9% purchase
goods from online website due to good quality product’s availability ,14.1 % people like shop
online due to easy return policy and 46.5 % means majority of people prefer online shopping due
to free home delivery.
VS
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39. 4.5 Figure
Online website Frequency %
Amazon 25 25
Ebay 2 2
Flipkart 35 35
Snapdeal 9 9
Others 2 2.7
According to research amazon fulfill requirement of 25 % consumer however ebay able to fulfill
only 2.7% people requirement, 47.9 % consumer think that flipkart fulfill their requirement and
snapdeal full requirement of 12.3 % consumer however 2.7% consumer ‘s requirement from
other website fulfill.
VS
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40. 4.6 Figure
Medium Frequency %
Magazine 2 2.7
Newspaper 11 15.1
T.V 28 38.4
People 21 28.8
Other 11 15.1
According to research 2.7 % people come to know about online website, 15.! % of consumer
know about online website from magazine,38.8% of consumer come to know about online
website from t.v.,28.8% people come to to know about online website though other people.
VS
4.7 Figure
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41. Feature Frequency %
Delivery 8 11
Discount offer 31 42.5
Return and Exchange policy 25 34.2
Packaging 5 6.8
Other 4 5.5
According to research 8% of people observe delivery time while shop from online website,
however 42.5% of consumer consider discount offer while shop online from any website,34.2 %
of consumer observe return and exchange policy of online website before shop,6.8% consumer
consider packaging before shop online ,5.5% observe other factor while shop online.
VS
4.8 Figure
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42. Online Site Frequency %
Amazon 22 30.1
Ebay 5 6.8
Flipkart 34 46.6
Snapdeal 8 11
Others 4 5.5
According to research 30,1% say that amazon take less time in dispatch and delivery,6.8% of
people say that eaby take less time in dispatch and delivery,46.6% of people say that flipkart take
less time in dispatch and delivery,11% people said that snapdeal take less time in dispatch and
delivery and 5.5% people says that other website take less time in dispatch and delivery
VS
4.9 Figure
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43. Item Frequency %
Mobile and Accessories 41 56.6
Laptop and tablet 6 8.2
Beauty products 0 0
Home appliances 3 4.1
Books 2 2.7
Clothing and footwear’s 16 21.9
Others 5 6.8
According to research 56.6%people like to purchase mobile and accessories from online
website,8.2% people like to purchase laptop and tablets from online website, no one want to
purchase beauty product from online website,2.7% people like to purchase books from online
website,21.9% of people like to purchase clothing’s from online website however 6.8% people
like to purchase other things from online website.
VS
4.10 Figure
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44. Payment methods Frequency %
Cash on delivery 61 83.6
Credit or debit Card 8 11
Paypal 1 1.4
Mobikwik 3 4.1
Paytm 0 0
Others 0 0
According to research 83.6% consumer prefer cash on delivery method for payment,11 % people
prefer credit and debit card method for payment,1.4 % of consumer like to pay through PayPal,
no one want to pay through paytm,3% of consumer like to pay through mobikwik.
VS
4.11 Figure
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45. Online site Frequency %
Amazon 30 41.7
EBay 1 1,4
Flipkart 31 43.1
Sanpdeal 9 12.5
Other 1 1.4
According to research 41.1% consumer consider that amazon’s marketing strategy is best,1 %
people consider eBay’s marketing strategy and brand is best,43.1% of people says that flipkart
marketing strategy is beast ,12.5% consumer consider snapdeal’s marketing strategy is best and
1.4% people says that other website’s online websites.
VS
4.12 Figure
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46. Online site Frequency %
Amazon 25 35.2
Flipkart 25 35.2
Snapdeal 11 15.5
Ebay 9 9
Other 1 1
According to research 35.2 % of consumer says that amazon gives more exciting offer, 35.2
consumer says that flipkart gives more exciting offer,15.5 % people says that snapdeal give more
exciting offer ,12.7% of people says that eBay gives more exciting offer and 1.4% people says
other website gives more exciting offers.
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47. Chapter - 5
CONCLUSION
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48. 5.) CONCLUSION
While free and disseminated shipping is a big story. There is more. to online" shopping and the
customer experience. In fact, many shoppers are willing to pay a nominal Fee to receive the
product faster if given the option. Shipping and delivery timing is important during check-out «
it's all about communication!
To reduce shopping cart abandonment, retailers should show the shipping costs, present how
much more should be purchased to get free shipping, and give consumers the option of time
frames. Customers are willing to wait for their packages. but need to know what is happening —
they want estimated delivery time clearly stated and they want e—mail or text alerts about their
delivery.
Also important to the customer is the feeling of control. Options such as “special delivery
instructions,” the ability to schedule a late delivery, or having a delivery Window give the
consumers the control they need to better their shipping experience. According to the research
study on role of logistic in online shopping in eBay and Amazon, both the company has a better
logistic system in Indian market by keeping a strict watch on just in time strategy.
Both the company focusing on better customer service to the consumer who are engage in online
shopping. As there is a stiff competition between amazon and eBay, therefore they are offering
product at a less price to achieve the market strength.
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49. Chapter – 6
Recommendation
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50. 6.) Recommendation:-
1. Online shopping sites have to keep transparency in transaction to satisfy consumer of secured.
2. EBay and Amazon both has to adapt logistic techniques for quickly delivery of product to an
end users.
3. Amazon need to do a more and innovative advertising for enhancing demand in Indian
Market.
4. Online company must have accurate customer care service facility to the consumer if any
Disturbance occurred.
5. In my experience of internet business and what I have studied from gurus who share online
business guides, I realized it is advisable to create a blog for your business. The advantage that a
blog has over a website is that on a blog you will be able to interact with your target audience.
While on a website communication is one way.
6. Online should assist your customers by responding to their feed-back and any problems they
are encountering as regard to the product or service. As you communicate you will create
customer confidence thus generate business sales leads.
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51. BIBLIOGRAPHY
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52. 7.) BIBLIOGRAPHY
1. www.google.com
2. www.ebay.com
3. www.amazon.com
4. www.wikkipedia.com
5. www.forbes.com
6. www.thetimesexpress.com
7. www.google.com/image
8. www.slideshow.com
9. www.thetimesofindia.com
10. www.investopedia.com
11. www.ncchannel.com
12. www.shopify.com
13. www.moneynation.com
14. www.theeconomicstimes.com
15. www.slideshow.com
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53. Chapter – 8
Appendix
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54. Questionnaire
1. Have you ever experience of online shopping?
• Yes
• No
2. How often you visit online website for shopping?
• Daily
• Weekly
• Monthly
• Annually
3. Do you feel that online shopping is secured?
• Yes
• No
4. Why you shop online?
• Good quality product
• Cheaper price
• Easy return policy
• Free home delivery
5. Which online shopping website can meet you requirement?
• Amazon
• EBAY
• Flipkart
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55. • Snapdeal
• other
6. How you know about online website?
• Magazine
• Newspaper
• By friends
• T.V.
• Other
7. Which of the following feature you observe before obtaining?
• Discount offers
• Delivery Time
• Packaging.
• Easy replace and refund policy.
8. Which online site take less time in dispatch and delivery?
• Amazon.
• Ebay.
• Flipkart.
• Snapdeal.
• Others.
9. Which kind of product you like to purchase online?
• Books
• Beauty product
• Clothing’s
• Laptop and tablets
• Mobile and assessors.
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56. • Other electronics.
• Others
10. What would be your best payment method if you buy online?
• Cash on delivery
• Credit and debit card
• Postage draft
• Paypal
• Paytm
• Mobikwik
• others
11. Which online company has best marketing strategy and brand?
• Amazon.
• Ebay
• Flipkart
• Snapdeal
• Shopclues.
• Other
12. Which online company gives you more exciting offers?
• Amazon
• Ebay
• Flipkart
• Snapdeal
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57. List of Figure
Figure no Shows
1.1 Process of marketing
1.2 Revenue chart
1.3 Total no of visitors
4.1 No. of consumer shop online
4.2 Suffering on online shopping website
4.3 Online shopping is secured or not?
4.4 Region of purchase online
4.5 Most preferable website of consumer
4.6 Advertisement
4.7 What effect consumer choice
4.8 Less time taking dispatch and delivery website
4.9 Consumer want to buy product online
4.10 Payment method
4.11 Best Marketing strategies of company
4.12 online company gives more exciting offers
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