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International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume 6 Issue 5, July-August 2022 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470
@ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1459
A Study on E – Commerce and Online Shopping:
A Case Study of Indian Retail Market
Dr. Reetika Agarwal1
, Ms. Anukriti Mishra2
1
Associate Professor, 2
Assistant Professor,
1,2
School of Management, BBD University, Lucknow, Uttar Pradesh, India
ABSTRACT
With the changing market scenario and economical growth, the
demand for online shopping has increased. Explosion of e-commerce
has changed the buying patterns and preferences of customers. The
important brands are also moving towards e commerce technology
for increased sale of their products. There is no doubt about it that
ecommerce has made the transactions smooth, quick, faster and
easier. Both the sellers and the buyers get benefited by his
technology. As we all are aware that Commerce and Business are the
backbones of a country’s development, if they were supported by the
electronic technology and tools like e-commerce, it will make
wonders in the economical growth of the country. An important part
of e –commerce is online shopping. It helps in many ways both
parties, the buyer as well as the seller. The e –commerce technology
and the usage of online shopping has increased in tremendous ways
in India. Today almost every big company has adopted these
technologies to increases sales, to make branding all over the globe.
Online shopping in India saw a 128% growth in interest from
consumers in 2012 as compared to the previous year, according to a
new report. The growth was only 40% between 2010 and 2011, said
the report compiled by Google and TNS Australia. The report used
data from Google Trends and a sample survey of 800 users in
November 2012. Consumers were most interested in apparels &
accessories (30%) and consumer electronics (34%). Other categories
that Indians searched for online were Books (15%), Beauty &
Personal care (10%), Home & furnishing (6%), Baby products (2%)
and healthcare (3%). The present paper is an attempt to study the
recent trends, influences, preferences of customers towards e-
commerce and online shopping and to give the suggestions for the
improvement in online shopping websites.
KEYWORDS: e – Commerce, Internet, Online Shopping, Business
How to cite this paper: Dr. Reetika
Agarwal | Ms. Anukriti Mishra "A Study
on E – Commerce and Online Shopping:
A Case Study of Indian Retail Market"
Published in
International Journal
of Trend in
Scientific Research
and Development
(ijtsrd), ISSN: 2456-
6470, Volume-6 |
Issue-5, August
2022, pp.1459-1469, URL:
www.ijtsrd.com/papers/ijtsrd50627.pdf
Copyright © 2022 by author (s) and
International Journal of Trend in
Scientific Research and Development
Journal. This is an
Open Access article
distributed under the
terms of the Creative Commons
Attribution License (CC BY 4.0)
(http://creativecommons.org/licenses/by/4.0)
INTRODUCTION
E –commerce and online shopping in India is
getting a noticeable growth. The urban and rural
population both are using internet facilities. More
usage of internet facilities, high educational standards,
changing life style, more women employment and
economical growth of the country are the few major
reasons for the demand of e commerce techniques and
tools. Among these techniques online shopping has a
vital role. The top most companies and MNCs could
not neglect the importance of online shopping for
their product branding, promotion and increased
sales. In the year 2011 to 2012, consumer interest in
online shopping in India grew 128 percent compared
to only 40 percent, the previous year. According to
Rajan Anandan, Vice President and Managing
Director of Google India "With approximately 8
million Indians shopping online in 2012, the online
shopping industry in India is growing rapidly and will
continue to see exponential growth," Bylooking at the
trends in 2012, we expect 2013 to be a strong growth
year for players who are focused on fast-growing
categories like apparels and accessories, and niche
product categories like baby products, home
furnishings, and health and nutrition. We expect the
IJTSRD50627
International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1460
growth to come from outside of the top eight
metros." People turned to the Internet to buy
everything from diapers to books, houses and even
groceries this year, pushing e-commerce revenues
in the country to $14billion with the possibility of
even higher earnings in 2013. "Increasing Internet
penetration and availability of more payment options
boosted the e-commerce industry in 2012. Besides
electronics, customer traction grew considerably in
categories like fashion and jewelery, home and
kitchen and lifestyle accessories like watches and
perfumes," Snapdeal Vice President (Marketing)
Sandeep Komaravelly said. "Apparel, books and
lifestyle categories (beauty, footwear and health) will
drive e-commerce," HomeShop18.Com Founder and
CEO Sundeep Malhotra said, adding that relatively
stable and growing domestic economywill also be the
major growth drivers. "The coming year looks
promising for the industry." Accordingto the owner
of peppercloset.com, Sumeet Arora, e-commerce
segment has doubled to $14 billon this year from
$6.3 billion in 2011. This figure is likely to reach
38 million by 2015.So, what can one expect in 2013
from the thousands of e-commerce websites?
According to homeshop18.Com, an innovation that
will "revolutionize" e-commerce in India is cost
optimization through warehouse and logistics
management that will enable companies to do
profitable business. According to a study by IMRB
International and IAMAI, there were an estimated 137
million Internet users in the country as of June 2012.
Of this, while 99 million were from urban parts of the
country, the remaining 38 million were from rural
India.
The rural areas are also taking participation in the
usage of Internet in a wonderfulway. According to a
study by CRISIL and preliminary date released for
2011-12 by National Sample Survey Organization
(NSSO), the consumption of FMCG product, usage
of technology is also enhanced in rural areas.
According to a recent survey in December 2012 of
IMRB and Internet and Mobile Association of India
(IMAI), “the number of claimed internet users has
witnessed a Compounded Annual Growth Rate
(CAGR) of 73 percent since December 2010. As of
June 2012 there are 3.6 million mobile internet users
in rural India. This has grown 7.2 times in the past
two years. The penetration of the computer
literates among the rural population is 8.4 percent
while the penetration of claimed internet users has
grown from 2.68 percent in 2010 to 4.6 percent in
2012. E- Commerce which involves commercial
transaction between seller and buyer over the internet,
enables a new economic environment and new
business practices.
LITERATURE REVIEW-
ASSOCHAM Study (2015) found the highest growth
rate in the apparel segment, almost 69.5 per cent over
2014, followed by electronic items, up 62 per cent,
baby care products, up 53 per cent, beauty and
personal care products at 52 per cent and home
furnishings at 49 per cent. Rapid growth of digital
commerce in India is mainly due to increased use of
smartphones. Mobiles and mobile accessories have
taken up the maximum share of the digital commerce
market in India, noted the study. Moreover, almost 45
per cent online shoppers reportedly preferred cash on
delivery over credit cards (16 per cent) and debit cards
(21 per cent). Only 10 per cent opted for internet
banking and a scanty 7 per cent preferred cash cards,
mobile wallets, and other such modes of payment. The
18-25 years of age group has been the fastest growing
age segment online with user growth being
contributed by both male and female segments. The
survey highlights that 38 per cent of regular shoppers
are in 18-25 age group, 52 per cent in 26-35, 8 per
cent in 36-45 and 2 per cent in the age group of 45-60.
Nearly 65 per cent online shoppers are male and 35
per cent female.
Mitra Abhijit (2013) suggests E-Commerce has
unleashed yet another revolution, which is changing
the way businesses buy and sell products and services.
New methodologies have evolved. The role of
geographic distances in forming business relationships
is reduced. E-Commerce is the future of shopping.
With the deployment of 3G and 4G wireless
communication technologies, the internet economy
will continue to grow robustly. In the next 3 to 5
years, India will have 30 to 70 million internet users
which will equal, if not surpass, many of the
developed countries. Internet economy will then
become more meaningful in India. With the rapid
expansion of internet, Ecommerce is set to play a very
important role in the 21st century, the new
opportunities that will be thrown open, will be
accessible to both large corporations and small
companies. The role of government is to provide a
legal framework for E-Commerce so that while
domestic and international trade are allowed to expand
their horizons, basic rights such as privacy,
intellectual property, prevention of fraud, consumer
protection etc are all taken care of
Chanana Nisha and Goele Sangeeta (2012) propose
that the future of E-Commerce is difficult to predict.
There are various segments that would grow in the
future like: Travel and Tourism, electronic appliances,
hardware products and apparel. There are also some
essential factors which will significantly contribute to
the boom of the E-Commerce industry in India i.e.
International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1461
replacement guarantee, M-Commerce services,
location based services, multiple payment option, right
content, shipment option, legal requirement of
generating invoices for online transactions, quick
Service, T & C should be clear & realistic, the product
quality should be same as shown on the portal,
dedicated 24/7 customer care centre should be there.
Awais Muhammad and Samin Tanzila (2012) indicate
that use of internet has made the world a global
village. The use of Internet has reduced the distances
and brought the people together. A nation’s back bone
is commerce and it will be strengthened if backed by
electronic tools in which e-commerce plays a vital
role. The important feature in ecommerce is privacy
which not only increases competitive advantage but
confidence level also. E-commerce brings sellers and
potential buyers at the distance of one click and it
saves time as it is cost effective, as E-commerce is
becoming key to success Internet banking, one among
the innovative and significant internet based services
has experienced explosive growth and led to
transformation of traditional banking practice. Online
banking or net banking in today’s dynamic age of
banking has made things much easier for the people
and saves a lot of time for its customers. The
traditional way of standing in the queues and filling up
all the forms are well solved and now it is no hassle
for making any transaction with the banks by virtue of
internet banking. The financial institutions which
operated traditionally are now able to lower their
operational costs and increase the consumer retention
by virtue of technology. Internet banking as a latest
and potential means for banking now holds a similar
importance as that of ATM’s, phone banking and
traditional bank branches. The works by ABA, 2004;
Fox, 2005 suggest that an internet banking strategy
may be effective, with reports of more profitable,
loyal and committed consumers compared with
traditional banking consumers (D’silva et al., 2010).
Dutta and Dutta, (2009) found tangibles have the
highest impact on overall customer satisfaction. The
largest discrepancybetween the customer expectations
and perceptions is in terms of empathywhich includes
Bank locations and ATM machines in convenient
places and telebanking and internet banking facility.
The study regards this a major source of concern for
Indian banking industry as a huge service quality gap
exists for all the banks in this category. Kumar and
Rajesh (2009) suggest that the facilities of the banks
should be made more convenient for customer
comforts. The ATM services should be extended with
few more cabins. 8 The work also concludes that with
sincere efforts and positive attitude, the needs of many
customers can be satisfied when banks aim at
‘customer delight’. Blasio (2008), in his study does
not find the support for the argument that the Internet
reduces the role of distance. Internet usage is much
more frequent among urban consumers than among
their non-urban counterparts. The use of e-commerce
is basically unaffected by the size of the citywhere the
household lives. Geographicallyremote consumersare
discouraged from purchasing goods by the fact that
they cannot inspect them beforehand. Leisure
activities and cultural items (i.e., books, CDs, and
tickets for museums and theaters) are the only goods
and services for which e-commerce is used more in
isolated areas. Finally, e-banking bears no relationship
to city size. In choosing a bank, non-urban customers
give more importance to personal acquaintance than
do urban clients, partly because bank account holders
in remote areas are more likely to have taken out a
loan from their bank.
Ozok et al (2007) identified ten items contributing to
overall consistency in e-commerce customer
relationship management. These items are consistency
of transaction steps, consistency of Web site design,
consistency of navigation, consistency of promotions,
consistency of in-stock indications, consistency of
product variety, consistency of fraud protection,
consistency of product guarantees, consistency of
overall site fairness, and consistency of return
policies. This list of consistency items includes three
usability items. It can be concluded that sites with
good usability have a better chance of having
successful CRM implementation in their business.
Consistency of promotions, in-stock indications,
product variety, fraud protection, guarantees, fairness,
and return policies indicate mainly that customers in
fact demand a high level of security-related
information as well as trustworthiness and high ethics
on the shopping site to become regular customers of
evendors. Customers demand equal and consistent
treatment concerning products and productrelated
services. The findings indicate that the level of
security and guarantees presented to customers has a
significant positive effect on customer retention and
customer acquisition.
Singh and Lalwani (2007) in their work on internet
banking suggest that internet banking has facilitated
the banking relationships with the customers . It is
now widely accepted in the country because of the
fact that it is the cheapest source of providing banking
services. As more and more banks will succeed in
online banking, a day will come when it will reach a
common place as ATM’s. It has not onlyincreased the
banking transactions but also has reduced the time and
cost factor. It has brought revolution in the banking
industry.
International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1462
OBJECTIVES OF THE STUDY-
The research paper consists of the following
objectives:
1. To study the changing buying patterns
2. To analyze the growth of .e-commerce and
online shopping
3. To recognize the factors to decide the success of
online shopping
4. To throw light on the improvements to make the
websites appealing for enhancing thenumber of
buyers.
5. To study the impact of E-Commerce Market on
Indian Retail Market.
RESEARCH METHODOLOGY
For making this research successful and worthy, a
questionnaire was structured. Through the help of the
questionnaire, primary data has been collected.
Interviews have been taken of 250 respondents. The
research also includes secondary data which has been
collected from various websites, books etc.
REASONS BEHIND THE GROWTH OF E –
COMMERCE
1. Busy Lifestyle- The lifestyle of people is so busy
that they are unable to go to the crowded markets
every time for shopping. The customers prefer to
shop in a relaxed environment at their own
convenience.
2. High Disposable Income: With growing job
opportunities the income sources have also
increased. Because of high spending power,
customers are willingly able to pay for the
products online.
3. Awareness of Products: People are much more
aware nowadays regarding the products
available in the markets. They are quite aware
about new products, product features, availability,
price etc. through the help of media like
television, radio, newspaper etc. Because of these
reasons they feel confident while shopping
online.
4. Rising Computer Literacy Level: Due to the
efforts of Government and Private Educational
Institutions in India, computer education is
getting new horizons. People are much more
aware regarding the tools and techniques of
computers. Not only students of urban areas,
students of rural areas, housewives and business
persons are also attracted towards the advance
technologies of computer like e – commerce and
e-business. With the development of educational
standards there is automatically agreat demand
to buy and use new products.
5. Increased Usage of Internet Among the Masses
- With more than 100 million Internet users,
the country is beginning to achieve a critical mass
of users who are familiar with web services. In
addition, over the past few years, relatively
sophisticated online travel agents (“OTAs”), such
as MakeMyTrip – which started turning these
initial Web users into Web consumers – have
dominated Indian e-commerce. Saves Money –
One another reason for adapting e- Commerce
and online shopping technology is that the
unwanted expenditure of petrol, parking and
toll etc. is considerably reduced.
6. Convienence to find Review of Product– It is
quite easy to find the review of productsby the
help of online shopping. E–commerce has made it
simpler to get information regarding the product
and the customers can purchase the products
after getting reviews and feedback of the product.
ESSENTIALS FOR MAKING ONLINE
SHOPPING EFFECTIVE
1. It must be Secure – Every customer wants to
make safe and secure transactions while
purchasing online. If the website is secure,
customers will tend to purchase more from it.
Secure Sockets Layer (SSL) is a standard security
technology for establishing an encrypted link
between the web server and a browser. E –
commerce websites with theSSL certificate are
able to prevent and protect the users’ information
when customers access their websites.
2. Easy and Understandable Content – The
website must be in easy language and
understandable. While making the website, the
language must be kept simple and if possible the
translation of the content must be given on the
website in other languages.
3. Combination of Branded Products and Non
Branded Products –An online shopping website
must be a combination of branded products as
well as of non- branded products. Customers’
preferences and taste are different and even
sometimes customers change their buying
patterns because of many reasons such as price,
utility of the product, purpose behind buying the
product etc.
4. Create Awareness – An online website must
create awareness among the customers regarding
the products. The website should include all the
latest news about the products, innovations of the
market, new product features, revised pricing,
new price list, information about the gifts and
discounts etc.
5. Deliver High and Quick Quality Services – One
International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1463
of an important feature to make your online
shopping websites better than others is to deliver
high and quick quality services. The processing
on the website must be quick in regards of
payments, home deliveryservices etc.
6. Appealing and Informative Design of Website
– The website which has designed for online
shopping purpose must be designed in such a
way that it will attract more and more
customers towards it by the offers, patterns, quick
services etc. The content of the website must be
understandable. Some important icons like
shopping cart, payment system icons, social
media links and icons, store location along with
map, phone /contact number in case of any
problem, login box, search box etc. must be on
the website for making online shopping
experience better and enjoyable.
Difference between Online Shopping and Traditional Shopping
The world is moving fast and one of the greatest reasons behind the demand of online shopping is busy
lifestyle and economic growth. Online Shopping is different from Traditional Shopping in many ways like the
product descriptions gifts, home delivery, payment modes, etc. are easy to access online now a days. The
difference between boththe modes is more defined in the following ways –
Online Shopping vs. Traditional Shopping
Traditional Shopping Online Shopping
Sales clerk service
Product descriptions, information pages, gift services, search
function, clerk on the phone/e-mail
Sales promotion
Special offers, online games and lotteries, linksto other sites of
interest, appetizer information
Store window displays Home page
Store atmosphere
Interface consistency, store organization,interface and graphics
quality
Aisle products Featured products on hierarchical levels of thestore
Store layout Screen depth, browse and search functions,indices, image maps
Number of floors in the store Hierarchical levels of the store
Number of store entrances and store
outlets/branches
Number of links to a particular online retailstore
Checkout cashier Online shopping basket and/or order form
Look and touch of the merchandise
Limited to image quality and description, potential for sound
and video applications
Number of people entering the store Number of unique visits to the online retailstore
Sales per period Sales per period
Source: Lohse and Spiller (1999)
SAMPLE SIZE
The respondents in the sample consisted of urban consumers. 250 (two hundred fifty) respondents of Lucknow,
the capital city of Uttar Pradesh were interviewed. These respondents have certain exposure to the online
shopping. The samples are further presented in the tabulation form with their responses.
INFERENCES
Through the help of structured questionnaire, the study has been done. Each of the questions cover the valid
reasons to find out the online shopping factors, influences and demands. The analysis of the table is as follows:
Table 1 Age of Respondents who prefer to Shop Online
Response Number of Respondents Percentage
Less than 20 years 62 24.8
21 – 30 years 90 36
31 – 40 years 49 19.6
41-50 years 25 10
50 years above 24 9.6
Total 250
International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1464
The first question was designed to find out the age of the respondents, who preferred to shop online. The above
table and the graph reveals that 32.5% of age group 21-30- years were mainly involved in the research work for
concluding the influences, demands and improvements in online shopping.
Table 2 Gender of Respondents Participated in the Study
Response Number of Respondents Percentage
Male 70 28
Female 180 72
Total 250
The table and graph 2 reveals that female respondents were 180 higher than the male respondents 70. Online
Shopping is preferred by the females rather than males.
Table 3 Monthly Income of Respondents
Response Number of Respondents Percentage
Less than 10,000 5 2
Rs . 10 ,001 - 20,000 14 5.6
Rs . 20 ,001 - 30,000 22 8.8
Rs. 30,001- 40,000 34 13.6
Rs.40,001- 50,000 116 46.4
More then 50,000 59 23.6
Total 250
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It is analyzed that the monthly income of maximum people who shop online is in the range between of
Rs.40,001-50,000, which indicates that the respondents are willing to make expenditure on online purchase of
products and that they have the buying capacity.
Table 4 Education Level of Online Buyers
Response Number of Respondents Percentage
Less than Vth
0 0
Upto VIIIth
5 2
Upto Xth
10 4
Upto XIIth
39 15.6
Graduate 75 30
Post Graduate 121 48.4
Total 250
The said table analyzed the education level of the online buyers (respondents) who have been involved in the
research. It clearly shows that most of the respondents are having educationup to Postgraduate level. So it can
be concluded that they are able to understand the language, content, terms and conditions of the product while
shopping online.
Table 5 Preferred Websites for Online Shopping
Response Number of Respondents Percentage
Flipkart 20 8
eBay 25 10
Jabong 26 10.4
OLX 38 15.2
Homeshop 18 59 23.6
Snapdeal 31 12.4
Myntra 27 10.8
Zovi 6 2.4
Naaptol 9 3.6
Yebhi 5 2
Yepme 4 1.6
Total 250
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The table and graph 5 reveals that the most preferred website for online shopping isHomeshop18, according
to the respondents.
Table 6 Online Shopping Duration of Respondents
Response Number of Respondents Percentage
Daily 2 0.8
Weekly 74 29.6
Every Six Months 32 12.8
Occasionally 41 16.4
Monthly 59 23.6
Yearly 37 14.8
Never 5 2
Total 250 100
The table and graph no.6 highlights the duration period of online shopping by the respondents. It can be clearly
observed that most of the respondents prefer to buy onlineweekly. 74 respondents among 250 agreed that they
purchase weekly although it is not clearly told by them as to what they purchase every week.
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Table 7 Preferred Products to Buy Online
Response Number of Respondents Percentage
Books and Stationery 16 6.4
Grocery 58 23.2
Clothing andAccessories 70 28
Furniture 10 4
Household and Basic 48 19.2
Electronic 8 3.2
Jewellery 5 2
Footwear 15 6
Kids and Baby Products 20 8
Total 250
Table and graph no.7 analyzed that respondents were interested to shop Clothing and Accessories online.
Among 250 respondents 70 respondents buy clothes and accessories.One more reason behind the high number of
Clothing and Accessories is also that most of the buyers (respondents) are females who shop online.
Table 8 Security while Shopping Online
Response Number of Respondents Percentage
Positive 163 65.2
Negative 87 34.8
Total 250
The above table and graph 8 reveals that the number of respondents is higher and positive in regards to the safety
and security factors. Customers find online shopping safe and secure in context to give their details and
payments.
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Table 9 Preference of Payment Mode
Response Number of Respondents Percentage
Cash on Delivery 69 27.6
PayPal 15 6
Credit Card 48 19.2
Debit Card 62 24.8
Online e-Payment 30 12
Mobile Payments 15 6
Bank Transfer 11 4.4
Total 250
The last table and graph number 9 shows that most of the respondents prefer Cash on deliverywhile making
online shopping.
Challenges of E‐commerce in India
E-commerce sectors have been facing multiple
challenges in their business operations like taxation
issues, incidents of fraud, and issues with cyber
security, intense competition and preference for
payment in cash (COD) by customers, inadequate
infrastructure and low digital literacy. There is no
uniform tax structure across various states and there is
ambiguity with respect to categorization of offerings
into ‘goods’ or ‘services’.
Guidelines on taxation of certain transactions like e-
wallets, cash on delivery, gift vouchers etc. are not
clearly defined. Some of these challenges are expected
to be resolved after the implementation of the Goods
and Services Tax (GST). Incidents of distribution of
counterfeit goods through E-commerce platform have
also been increasing which has added to the woes of
both consumers as well as E-commerce companies.
This is mainly because of the absence of a trustworthy
mechanism which can allow consumers to
authenticate sellers or their products.
Data/cyber security is another major challenge faced
by the players as they deal with huge volumes of
customer information, a lot of which is shared with
third parties such as logistics providers raising
concerns about exploitation by external entities.
Another challenge is payment by customers in cash.
Receiving payment in cash (COD) makes the process
laborious, riskyand more expensive for the companies
as their working capital requirement increases. Higher
return ratio for goods sold online is also proving
expensive and presenting challenges for companies.
Incidentally, return percentage of orders in COD is
much higher compared to online payments. The E-
commerce industry in India has seen intensified
competition in the sector, which in turn has forced
companies to adopt aggressive pricing policies,
offering heavy discounts to customers and high
commissions to vendors and other parties. This has
exerted a lot of pressure on the profitability of the
companies.
As far as e‐commerce is concerned it is still in an
infancy stage in India. The environment exist today is
not much suitable for the fast growth of e‐commerce.
We can list out the important challenges one byone as
follows
1. One of the important challenges faced by this
sector is the lack of adequate infrastructure for IT
technology and Internet. The penetration of
personal computers in India is as low as 3.5 per
thousand of population compared to over 6 per
thousand in China and 500 per thousand in USA.
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2. Another important reason for not developing
e‐commerce is the high tariff rate charged by
Internet Service Providers [ISPs] Speed and
connectivity is also poor.
3. Another problem faced is that e‐commerce sites
are one of the favourite targets of hackers.
4. the most serious drawback is the absence of
effective cyber law at the moment. 5.commerce is
governed by the UNCITRAI model code, but this
is not binding on any country. It is expected that
all WTO member countries will soon enact laws
to govern
5. The reason low growth of e‐commerce is the
privacy and security issues. Measures like digital
signatures, Digital certificates, and fire walls can
be adopted to secure safety and protection over the
message passed on internet.
6. Payment related problems also continue to block
the e‐commerce activities. Electronic cash, credit
cards etc. are some of the popular payment
method used for e‐commerce transactions. But
unfortunately penetration of e‐cash and credit
cards not only low, but Indian consumers are
suspicious about the threat of fraud played by
unscrupulous hackers. In order to minimize this
problem, experts suggest the use of digital
certificate along with credit card to secure their
payment activities.
7. Electronic commerce is also characterized by
some technological and inherent limitations
which have restricted the number of people using
this revolutionary system.
CONCLUSION
The research reveals that most of the people who are
engaged in making the decisionof purchasing, are in
the age group of 21-30 years. While making the
website for online shopping it must be designed in a
very planned and strategic way. The websites for
shopping were mostly visited by the females. The
study also highlights that most of the time customers
prefer to shop clothing and accessories from online
shopping websites. The study also throwsa light that
most of the customers (respondents) like to make
payments on delivery of the products at their places.
By the present study it can be concluded that online
shopping and e- Commerce are an important part of
B2B in the present world. To make products globally
recognized every small or big, National or
International company needs to focus and start selling
their products online. It doesn’t matter whether the
product is an FMCG, Jewelry, Books and Stationery,
Health and Medical, Electrical or Electronic. There
are several opportunities for online shopping websites
if designed and processed in the quick, secure and
qualitative way. Marketers need to concentrate
properly on the requirements of the e- Commerce and
online tools and techniques to make wonders and hype
their sales. Branding, Product Positioning, Awareness
of new features in the products etc. all were supported
by the help of online websites. Not only this, the
undue advantages which the fake retail stores were
enjoying can also be stopped through online shopping
websites.
REFERENCES
[1] Isac Lijo, “Using E-commerce to Fuel Rural
Growth in India”, paper presented on “In
Search of Excellence” at MBA Batch 2006,
FMS, New Delhi.
[2] E-Commence Evolution in India: Creating the
bricks behind the clicks, Designed by Corporate
Communications, India available at
www.pwc.in
[3] Annual Report 2015-16, of Ministryof MSME,
Govt. of India.
[4] NASSCOM, 2006.DOT Annual Report, 2015
[5] Indian ITES-BPO Industry - Fact Sheet,
NASSCOM,2006.
[6] Future of e-Commerce: Uncovering Innovation,
available at www.deloitte.com/in
[7] E Marketer, Asia Pacific B2C E-Commerce
China, Japan and South Korea,
[8] http://www.emarketer.com/Reports/All/Em_b2
c_eco m_asia_feb07.aspx
[9] IMAI, Mobile Internet Users in India to touch
46M in September: IAMAI-IMRB Study,
[10] www.statista.com
[11] http://www.itcportal.com/newsroom/press ian!8
04.htm
[12] www.digitaldividend.org/pdfrechoupal case.pdf
[13] http://poverty.woridbank.org/files/14647 E-
choup
[14] http://www.echoupal.com/home/Sitemap.asp
[15] http://www.itcportal,com/newsroom/press ianl
6.htm
[16] http://www.echoupal.com/NewsRoom/Press/ne
ws2.htm
[17] Rebirth of E-commercial in India, report by
Ernst & Young LLP available at www.ey.com
[18] http://www.itcportal,com/newsroom/press ianl
6.htm
[19] http://www.echoupal.com/NewsRoom/Press/ne
ws2.htm
[20] http://www.skumars.comal-web.pdf

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A Study on E – Commerce and Online Shopping A Case Study of Indian Retail Market

  • 1. International Journal of Trend in Scientific Research and Development (IJTSRD) Volume 6 Issue 5, July-August 2022 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470 @ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1459 A Study on E – Commerce and Online Shopping: A Case Study of Indian Retail Market Dr. Reetika Agarwal1 , Ms. Anukriti Mishra2 1 Associate Professor, 2 Assistant Professor, 1,2 School of Management, BBD University, Lucknow, Uttar Pradesh, India ABSTRACT With the changing market scenario and economical growth, the demand for online shopping has increased. Explosion of e-commerce has changed the buying patterns and preferences of customers. The important brands are also moving towards e commerce technology for increased sale of their products. There is no doubt about it that ecommerce has made the transactions smooth, quick, faster and easier. Both the sellers and the buyers get benefited by his technology. As we all are aware that Commerce and Business are the backbones of a country’s development, if they were supported by the electronic technology and tools like e-commerce, it will make wonders in the economical growth of the country. An important part of e –commerce is online shopping. It helps in many ways both parties, the buyer as well as the seller. The e –commerce technology and the usage of online shopping has increased in tremendous ways in India. Today almost every big company has adopted these technologies to increases sales, to make branding all over the globe. Online shopping in India saw a 128% growth in interest from consumers in 2012 as compared to the previous year, according to a new report. The growth was only 40% between 2010 and 2011, said the report compiled by Google and TNS Australia. The report used data from Google Trends and a sample survey of 800 users in November 2012. Consumers were most interested in apparels & accessories (30%) and consumer electronics (34%). Other categories that Indians searched for online were Books (15%), Beauty & Personal care (10%), Home & furnishing (6%), Baby products (2%) and healthcare (3%). The present paper is an attempt to study the recent trends, influences, preferences of customers towards e- commerce and online shopping and to give the suggestions for the improvement in online shopping websites. KEYWORDS: e – Commerce, Internet, Online Shopping, Business How to cite this paper: Dr. Reetika Agarwal | Ms. Anukriti Mishra "A Study on E – Commerce and Online Shopping: A Case Study of Indian Retail Market" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456- 6470, Volume-6 | Issue-5, August 2022, pp.1459-1469, URL: www.ijtsrd.com/papers/ijtsrd50627.pdf Copyright © 2022 by author (s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0) INTRODUCTION E –commerce and online shopping in India is getting a noticeable growth. The urban and rural population both are using internet facilities. More usage of internet facilities, high educational standards, changing life style, more women employment and economical growth of the country are the few major reasons for the demand of e commerce techniques and tools. Among these techniques online shopping has a vital role. The top most companies and MNCs could not neglect the importance of online shopping for their product branding, promotion and increased sales. In the year 2011 to 2012, consumer interest in online shopping in India grew 128 percent compared to only 40 percent, the previous year. According to Rajan Anandan, Vice President and Managing Director of Google India "With approximately 8 million Indians shopping online in 2012, the online shopping industry in India is growing rapidly and will continue to see exponential growth," Bylooking at the trends in 2012, we expect 2013 to be a strong growth year for players who are focused on fast-growing categories like apparels and accessories, and niche product categories like baby products, home furnishings, and health and nutrition. We expect the IJTSRD50627
  • 2. International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1460 growth to come from outside of the top eight metros." People turned to the Internet to buy everything from diapers to books, houses and even groceries this year, pushing e-commerce revenues in the country to $14billion with the possibility of even higher earnings in 2013. "Increasing Internet penetration and availability of more payment options boosted the e-commerce industry in 2012. Besides electronics, customer traction grew considerably in categories like fashion and jewelery, home and kitchen and lifestyle accessories like watches and perfumes," Snapdeal Vice President (Marketing) Sandeep Komaravelly said. "Apparel, books and lifestyle categories (beauty, footwear and health) will drive e-commerce," HomeShop18.Com Founder and CEO Sundeep Malhotra said, adding that relatively stable and growing domestic economywill also be the major growth drivers. "The coming year looks promising for the industry." Accordingto the owner of peppercloset.com, Sumeet Arora, e-commerce segment has doubled to $14 billon this year from $6.3 billion in 2011. This figure is likely to reach 38 million by 2015.So, what can one expect in 2013 from the thousands of e-commerce websites? According to homeshop18.Com, an innovation that will "revolutionize" e-commerce in India is cost optimization through warehouse and logistics management that will enable companies to do profitable business. According to a study by IMRB International and IAMAI, there were an estimated 137 million Internet users in the country as of June 2012. Of this, while 99 million were from urban parts of the country, the remaining 38 million were from rural India. The rural areas are also taking participation in the usage of Internet in a wonderfulway. According to a study by CRISIL and preliminary date released for 2011-12 by National Sample Survey Organization (NSSO), the consumption of FMCG product, usage of technology is also enhanced in rural areas. According to a recent survey in December 2012 of IMRB and Internet and Mobile Association of India (IMAI), “the number of claimed internet users has witnessed a Compounded Annual Growth Rate (CAGR) of 73 percent since December 2010. As of June 2012 there are 3.6 million mobile internet users in rural India. This has grown 7.2 times in the past two years. The penetration of the computer literates among the rural population is 8.4 percent while the penetration of claimed internet users has grown from 2.68 percent in 2010 to 4.6 percent in 2012. E- Commerce which involves commercial transaction between seller and buyer over the internet, enables a new economic environment and new business practices. LITERATURE REVIEW- ASSOCHAM Study (2015) found the highest growth rate in the apparel segment, almost 69.5 per cent over 2014, followed by electronic items, up 62 per cent, baby care products, up 53 per cent, beauty and personal care products at 52 per cent and home furnishings at 49 per cent. Rapid growth of digital commerce in India is mainly due to increased use of smartphones. Mobiles and mobile accessories have taken up the maximum share of the digital commerce market in India, noted the study. Moreover, almost 45 per cent online shoppers reportedly preferred cash on delivery over credit cards (16 per cent) and debit cards (21 per cent). Only 10 per cent opted for internet banking and a scanty 7 per cent preferred cash cards, mobile wallets, and other such modes of payment. The 18-25 years of age group has been the fastest growing age segment online with user growth being contributed by both male and female segments. The survey highlights that 38 per cent of regular shoppers are in 18-25 age group, 52 per cent in 26-35, 8 per cent in 36-45 and 2 per cent in the age group of 45-60. Nearly 65 per cent online shoppers are male and 35 per cent female. Mitra Abhijit (2013) suggests E-Commerce has unleashed yet another revolution, which is changing the way businesses buy and sell products and services. New methodologies have evolved. The role of geographic distances in forming business relationships is reduced. E-Commerce is the future of shopping. With the deployment of 3G and 4G wireless communication technologies, the internet economy will continue to grow robustly. In the next 3 to 5 years, India will have 30 to 70 million internet users which will equal, if not surpass, many of the developed countries. Internet economy will then become more meaningful in India. With the rapid expansion of internet, Ecommerce is set to play a very important role in the 21st century, the new opportunities that will be thrown open, will be accessible to both large corporations and small companies. The role of government is to provide a legal framework for E-Commerce so that while domestic and international trade are allowed to expand their horizons, basic rights such as privacy, intellectual property, prevention of fraud, consumer protection etc are all taken care of Chanana Nisha and Goele Sangeeta (2012) propose that the future of E-Commerce is difficult to predict. There are various segments that would grow in the future like: Travel and Tourism, electronic appliances, hardware products and apparel. There are also some essential factors which will significantly contribute to the boom of the E-Commerce industry in India i.e.
  • 3. International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1461 replacement guarantee, M-Commerce services, location based services, multiple payment option, right content, shipment option, legal requirement of generating invoices for online transactions, quick Service, T & C should be clear & realistic, the product quality should be same as shown on the portal, dedicated 24/7 customer care centre should be there. Awais Muhammad and Samin Tanzila (2012) indicate that use of internet has made the world a global village. The use of Internet has reduced the distances and brought the people together. A nation’s back bone is commerce and it will be strengthened if backed by electronic tools in which e-commerce plays a vital role. The important feature in ecommerce is privacy which not only increases competitive advantage but confidence level also. E-commerce brings sellers and potential buyers at the distance of one click and it saves time as it is cost effective, as E-commerce is becoming key to success Internet banking, one among the innovative and significant internet based services has experienced explosive growth and led to transformation of traditional banking practice. Online banking or net banking in today’s dynamic age of banking has made things much easier for the people and saves a lot of time for its customers. The traditional way of standing in the queues and filling up all the forms are well solved and now it is no hassle for making any transaction with the banks by virtue of internet banking. The financial institutions which operated traditionally are now able to lower their operational costs and increase the consumer retention by virtue of technology. Internet banking as a latest and potential means for banking now holds a similar importance as that of ATM’s, phone banking and traditional bank branches. The works by ABA, 2004; Fox, 2005 suggest that an internet banking strategy may be effective, with reports of more profitable, loyal and committed consumers compared with traditional banking consumers (D’silva et al., 2010). Dutta and Dutta, (2009) found tangibles have the highest impact on overall customer satisfaction. The largest discrepancybetween the customer expectations and perceptions is in terms of empathywhich includes Bank locations and ATM machines in convenient places and telebanking and internet banking facility. The study regards this a major source of concern for Indian banking industry as a huge service quality gap exists for all the banks in this category. Kumar and Rajesh (2009) suggest that the facilities of the banks should be made more convenient for customer comforts. The ATM services should be extended with few more cabins. 8 The work also concludes that with sincere efforts and positive attitude, the needs of many customers can be satisfied when banks aim at ‘customer delight’. Blasio (2008), in his study does not find the support for the argument that the Internet reduces the role of distance. Internet usage is much more frequent among urban consumers than among their non-urban counterparts. The use of e-commerce is basically unaffected by the size of the citywhere the household lives. Geographicallyremote consumersare discouraged from purchasing goods by the fact that they cannot inspect them beforehand. Leisure activities and cultural items (i.e., books, CDs, and tickets for museums and theaters) are the only goods and services for which e-commerce is used more in isolated areas. Finally, e-banking bears no relationship to city size. In choosing a bank, non-urban customers give more importance to personal acquaintance than do urban clients, partly because bank account holders in remote areas are more likely to have taken out a loan from their bank. Ozok et al (2007) identified ten items contributing to overall consistency in e-commerce customer relationship management. These items are consistency of transaction steps, consistency of Web site design, consistency of navigation, consistency of promotions, consistency of in-stock indications, consistency of product variety, consistency of fraud protection, consistency of product guarantees, consistency of overall site fairness, and consistency of return policies. This list of consistency items includes three usability items. It can be concluded that sites with good usability have a better chance of having successful CRM implementation in their business. Consistency of promotions, in-stock indications, product variety, fraud protection, guarantees, fairness, and return policies indicate mainly that customers in fact demand a high level of security-related information as well as trustworthiness and high ethics on the shopping site to become regular customers of evendors. Customers demand equal and consistent treatment concerning products and productrelated services. The findings indicate that the level of security and guarantees presented to customers has a significant positive effect on customer retention and customer acquisition. Singh and Lalwani (2007) in their work on internet banking suggest that internet banking has facilitated the banking relationships with the customers . It is now widely accepted in the country because of the fact that it is the cheapest source of providing banking services. As more and more banks will succeed in online banking, a day will come when it will reach a common place as ATM’s. It has not onlyincreased the banking transactions but also has reduced the time and cost factor. It has brought revolution in the banking industry.
  • 4. International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1462 OBJECTIVES OF THE STUDY- The research paper consists of the following objectives: 1. To study the changing buying patterns 2. To analyze the growth of .e-commerce and online shopping 3. To recognize the factors to decide the success of online shopping 4. To throw light on the improvements to make the websites appealing for enhancing thenumber of buyers. 5. To study the impact of E-Commerce Market on Indian Retail Market. RESEARCH METHODOLOGY For making this research successful and worthy, a questionnaire was structured. Through the help of the questionnaire, primary data has been collected. Interviews have been taken of 250 respondents. The research also includes secondary data which has been collected from various websites, books etc. REASONS BEHIND THE GROWTH OF E – COMMERCE 1. Busy Lifestyle- The lifestyle of people is so busy that they are unable to go to the crowded markets every time for shopping. The customers prefer to shop in a relaxed environment at their own convenience. 2. High Disposable Income: With growing job opportunities the income sources have also increased. Because of high spending power, customers are willingly able to pay for the products online. 3. Awareness of Products: People are much more aware nowadays regarding the products available in the markets. They are quite aware about new products, product features, availability, price etc. through the help of media like television, radio, newspaper etc. Because of these reasons they feel confident while shopping online. 4. Rising Computer Literacy Level: Due to the efforts of Government and Private Educational Institutions in India, computer education is getting new horizons. People are much more aware regarding the tools and techniques of computers. Not only students of urban areas, students of rural areas, housewives and business persons are also attracted towards the advance technologies of computer like e – commerce and e-business. With the development of educational standards there is automatically agreat demand to buy and use new products. 5. Increased Usage of Internet Among the Masses - With more than 100 million Internet users, the country is beginning to achieve a critical mass of users who are familiar with web services. In addition, over the past few years, relatively sophisticated online travel agents (“OTAs”), such as MakeMyTrip – which started turning these initial Web users into Web consumers – have dominated Indian e-commerce. Saves Money – One another reason for adapting e- Commerce and online shopping technology is that the unwanted expenditure of petrol, parking and toll etc. is considerably reduced. 6. Convienence to find Review of Product– It is quite easy to find the review of productsby the help of online shopping. E–commerce has made it simpler to get information regarding the product and the customers can purchase the products after getting reviews and feedback of the product. ESSENTIALS FOR MAKING ONLINE SHOPPING EFFECTIVE 1. It must be Secure – Every customer wants to make safe and secure transactions while purchasing online. If the website is secure, customers will tend to purchase more from it. Secure Sockets Layer (SSL) is a standard security technology for establishing an encrypted link between the web server and a browser. E – commerce websites with theSSL certificate are able to prevent and protect the users’ information when customers access their websites. 2. Easy and Understandable Content – The website must be in easy language and understandable. While making the website, the language must be kept simple and if possible the translation of the content must be given on the website in other languages. 3. Combination of Branded Products and Non Branded Products –An online shopping website must be a combination of branded products as well as of non- branded products. Customers’ preferences and taste are different and even sometimes customers change their buying patterns because of many reasons such as price, utility of the product, purpose behind buying the product etc. 4. Create Awareness – An online website must create awareness among the customers regarding the products. The website should include all the latest news about the products, innovations of the market, new product features, revised pricing, new price list, information about the gifts and discounts etc. 5. Deliver High and Quick Quality Services – One
  • 5. International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1463 of an important feature to make your online shopping websites better than others is to deliver high and quick quality services. The processing on the website must be quick in regards of payments, home deliveryservices etc. 6. Appealing and Informative Design of Website – The website which has designed for online shopping purpose must be designed in such a way that it will attract more and more customers towards it by the offers, patterns, quick services etc. The content of the website must be understandable. Some important icons like shopping cart, payment system icons, social media links and icons, store location along with map, phone /contact number in case of any problem, login box, search box etc. must be on the website for making online shopping experience better and enjoyable. Difference between Online Shopping and Traditional Shopping The world is moving fast and one of the greatest reasons behind the demand of online shopping is busy lifestyle and economic growth. Online Shopping is different from Traditional Shopping in many ways like the product descriptions gifts, home delivery, payment modes, etc. are easy to access online now a days. The difference between boththe modes is more defined in the following ways – Online Shopping vs. Traditional Shopping Traditional Shopping Online Shopping Sales clerk service Product descriptions, information pages, gift services, search function, clerk on the phone/e-mail Sales promotion Special offers, online games and lotteries, linksto other sites of interest, appetizer information Store window displays Home page Store atmosphere Interface consistency, store organization,interface and graphics quality Aisle products Featured products on hierarchical levels of thestore Store layout Screen depth, browse and search functions,indices, image maps Number of floors in the store Hierarchical levels of the store Number of store entrances and store outlets/branches Number of links to a particular online retailstore Checkout cashier Online shopping basket and/or order form Look and touch of the merchandise Limited to image quality and description, potential for sound and video applications Number of people entering the store Number of unique visits to the online retailstore Sales per period Sales per period Source: Lohse and Spiller (1999) SAMPLE SIZE The respondents in the sample consisted of urban consumers. 250 (two hundred fifty) respondents of Lucknow, the capital city of Uttar Pradesh were interviewed. These respondents have certain exposure to the online shopping. The samples are further presented in the tabulation form with their responses. INFERENCES Through the help of structured questionnaire, the study has been done. Each of the questions cover the valid reasons to find out the online shopping factors, influences and demands. The analysis of the table is as follows: Table 1 Age of Respondents who prefer to Shop Online Response Number of Respondents Percentage Less than 20 years 62 24.8 21 – 30 years 90 36 31 – 40 years 49 19.6 41-50 years 25 10 50 years above 24 9.6 Total 250
  • 6. International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1464 The first question was designed to find out the age of the respondents, who preferred to shop online. The above table and the graph reveals that 32.5% of age group 21-30- years were mainly involved in the research work for concluding the influences, demands and improvements in online shopping. Table 2 Gender of Respondents Participated in the Study Response Number of Respondents Percentage Male 70 28 Female 180 72 Total 250 The table and graph 2 reveals that female respondents were 180 higher than the male respondents 70. Online Shopping is preferred by the females rather than males. Table 3 Monthly Income of Respondents Response Number of Respondents Percentage Less than 10,000 5 2 Rs . 10 ,001 - 20,000 14 5.6 Rs . 20 ,001 - 30,000 22 8.8 Rs. 30,001- 40,000 34 13.6 Rs.40,001- 50,000 116 46.4 More then 50,000 59 23.6 Total 250
  • 7. International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1465 It is analyzed that the monthly income of maximum people who shop online is in the range between of Rs.40,001-50,000, which indicates that the respondents are willing to make expenditure on online purchase of products and that they have the buying capacity. Table 4 Education Level of Online Buyers Response Number of Respondents Percentage Less than Vth 0 0 Upto VIIIth 5 2 Upto Xth 10 4 Upto XIIth 39 15.6 Graduate 75 30 Post Graduate 121 48.4 Total 250 The said table analyzed the education level of the online buyers (respondents) who have been involved in the research. It clearly shows that most of the respondents are having educationup to Postgraduate level. So it can be concluded that they are able to understand the language, content, terms and conditions of the product while shopping online. Table 5 Preferred Websites for Online Shopping Response Number of Respondents Percentage Flipkart 20 8 eBay 25 10 Jabong 26 10.4 OLX 38 15.2 Homeshop 18 59 23.6 Snapdeal 31 12.4 Myntra 27 10.8 Zovi 6 2.4 Naaptol 9 3.6 Yebhi 5 2 Yepme 4 1.6 Total 250
  • 8. International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1466 The table and graph 5 reveals that the most preferred website for online shopping isHomeshop18, according to the respondents. Table 6 Online Shopping Duration of Respondents Response Number of Respondents Percentage Daily 2 0.8 Weekly 74 29.6 Every Six Months 32 12.8 Occasionally 41 16.4 Monthly 59 23.6 Yearly 37 14.8 Never 5 2 Total 250 100 The table and graph no.6 highlights the duration period of online shopping by the respondents. It can be clearly observed that most of the respondents prefer to buy onlineweekly. 74 respondents among 250 agreed that they purchase weekly although it is not clearly told by them as to what they purchase every week.
  • 9. International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1467 Table 7 Preferred Products to Buy Online Response Number of Respondents Percentage Books and Stationery 16 6.4 Grocery 58 23.2 Clothing andAccessories 70 28 Furniture 10 4 Household and Basic 48 19.2 Electronic 8 3.2 Jewellery 5 2 Footwear 15 6 Kids and Baby Products 20 8 Total 250 Table and graph no.7 analyzed that respondents were interested to shop Clothing and Accessories online. Among 250 respondents 70 respondents buy clothes and accessories.One more reason behind the high number of Clothing and Accessories is also that most of the buyers (respondents) are females who shop online. Table 8 Security while Shopping Online Response Number of Respondents Percentage Positive 163 65.2 Negative 87 34.8 Total 250 The above table and graph 8 reveals that the number of respondents is higher and positive in regards to the safety and security factors. Customers find online shopping safe and secure in context to give their details and payments.
  • 10. International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1468 Table 9 Preference of Payment Mode Response Number of Respondents Percentage Cash on Delivery 69 27.6 PayPal 15 6 Credit Card 48 19.2 Debit Card 62 24.8 Online e-Payment 30 12 Mobile Payments 15 6 Bank Transfer 11 4.4 Total 250 The last table and graph number 9 shows that most of the respondents prefer Cash on deliverywhile making online shopping. Challenges of E‐commerce in India E-commerce sectors have been facing multiple challenges in their business operations like taxation issues, incidents of fraud, and issues with cyber security, intense competition and preference for payment in cash (COD) by customers, inadequate infrastructure and low digital literacy. There is no uniform tax structure across various states and there is ambiguity with respect to categorization of offerings into ‘goods’ or ‘services’. Guidelines on taxation of certain transactions like e- wallets, cash on delivery, gift vouchers etc. are not clearly defined. Some of these challenges are expected to be resolved after the implementation of the Goods and Services Tax (GST). Incidents of distribution of counterfeit goods through E-commerce platform have also been increasing which has added to the woes of both consumers as well as E-commerce companies. This is mainly because of the absence of a trustworthy mechanism which can allow consumers to authenticate sellers or their products. Data/cyber security is another major challenge faced by the players as they deal with huge volumes of customer information, a lot of which is shared with third parties such as logistics providers raising concerns about exploitation by external entities. Another challenge is payment by customers in cash. Receiving payment in cash (COD) makes the process laborious, riskyand more expensive for the companies as their working capital requirement increases. Higher return ratio for goods sold online is also proving expensive and presenting challenges for companies. Incidentally, return percentage of orders in COD is much higher compared to online payments. The E- commerce industry in India has seen intensified competition in the sector, which in turn has forced companies to adopt aggressive pricing policies, offering heavy discounts to customers and high commissions to vendors and other parties. This has exerted a lot of pressure on the profitability of the companies. As far as e‐commerce is concerned it is still in an infancy stage in India. The environment exist today is not much suitable for the fast growth of e‐commerce. We can list out the important challenges one byone as follows 1. One of the important challenges faced by this sector is the lack of adequate infrastructure for IT technology and Internet. The penetration of personal computers in India is as low as 3.5 per thousand of population compared to over 6 per thousand in China and 500 per thousand in USA.
  • 11. International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD50627 | Volume – 6 | Issue – 5 | July-August 2022 Page 1469 2. Another important reason for not developing e‐commerce is the high tariff rate charged by Internet Service Providers [ISPs] Speed and connectivity is also poor. 3. Another problem faced is that e‐commerce sites are one of the favourite targets of hackers. 4. the most serious drawback is the absence of effective cyber law at the moment. 5.commerce is governed by the UNCITRAI model code, but this is not binding on any country. It is expected that all WTO member countries will soon enact laws to govern 5. The reason low growth of e‐commerce is the privacy and security issues. Measures like digital signatures, Digital certificates, and fire walls can be adopted to secure safety and protection over the message passed on internet. 6. Payment related problems also continue to block the e‐commerce activities. Electronic cash, credit cards etc. are some of the popular payment method used for e‐commerce transactions. But unfortunately penetration of e‐cash and credit cards not only low, but Indian consumers are suspicious about the threat of fraud played by unscrupulous hackers. In order to minimize this problem, experts suggest the use of digital certificate along with credit card to secure their payment activities. 7. Electronic commerce is also characterized by some technological and inherent limitations which have restricted the number of people using this revolutionary system. CONCLUSION The research reveals that most of the people who are engaged in making the decisionof purchasing, are in the age group of 21-30 years. While making the website for online shopping it must be designed in a very planned and strategic way. The websites for shopping were mostly visited by the females. The study also highlights that most of the time customers prefer to shop clothing and accessories from online shopping websites. The study also throwsa light that most of the customers (respondents) like to make payments on delivery of the products at their places. By the present study it can be concluded that online shopping and e- Commerce are an important part of B2B in the present world. To make products globally recognized every small or big, National or International company needs to focus and start selling their products online. It doesn’t matter whether the product is an FMCG, Jewelry, Books and Stationery, Health and Medical, Electrical or Electronic. There are several opportunities for online shopping websites if designed and processed in the quick, secure and qualitative way. Marketers need to concentrate properly on the requirements of the e- Commerce and online tools and techniques to make wonders and hype their sales. Branding, Product Positioning, Awareness of new features in the products etc. all were supported by the help of online websites. Not only this, the undue advantages which the fake retail stores were enjoying can also be stopped through online shopping websites. REFERENCES [1] Isac Lijo, “Using E-commerce to Fuel Rural Growth in India”, paper presented on “In Search of Excellence” at MBA Batch 2006, FMS, New Delhi. [2] E-Commence Evolution in India: Creating the bricks behind the clicks, Designed by Corporate Communications, India available at www.pwc.in [3] Annual Report 2015-16, of Ministryof MSME, Govt. of India. [4] NASSCOM, 2006.DOT Annual Report, 2015 [5] Indian ITES-BPO Industry - Fact Sheet, NASSCOM,2006. [6] Future of e-Commerce: Uncovering Innovation, available at www.deloitte.com/in [7] E Marketer, Asia Pacific B2C E-Commerce China, Japan and South Korea, [8] http://www.emarketer.com/Reports/All/Em_b2 c_eco m_asia_feb07.aspx [9] IMAI, Mobile Internet Users in India to touch 46M in September: IAMAI-IMRB Study, [10] www.statista.com [11] http://www.itcportal.com/newsroom/press ian!8 04.htm [12] www.digitaldividend.org/pdfrechoupal case.pdf [13] http://poverty.woridbank.org/files/14647 E- choup [14] http://www.echoupal.com/home/Sitemap.asp [15] http://www.itcportal,com/newsroom/press ianl 6.htm [16] http://www.echoupal.com/NewsRoom/Press/ne ws2.htm [17] Rebirth of E-commercial in India, report by Ernst & Young LLP available at www.ey.com [18] http://www.itcportal,com/newsroom/press ianl 6.htm [19] http://www.echoupal.com/NewsRoom/Press/ne ws2.htm [20] http://www.skumars.comal-web.pdf