Question

Select an e-commerce company of your choice & based on the information you found on their website, briefly

0. Describe their business model

1. Identify their customer value proposition

2. Identify its revenue model

3. Identify their main competitors

4. Identify their market strategy

Ecommerce Website: flipkart.com

Answer 1

0.

In April 2013, flipkart.com adopted the Marketplace Business Model, tilted by FDI' s (Foreign Direct Investment) support towards the stated model. Thus flipkart.com does not own most of the offered products and services and merely acts as a mediator. It is a business to consumer as well as business to business portal. The model it follows is stated below.

- Provide an e-portal for limited interaction between sellers and customers

-Display products of sellers in contract with flipkart.com

-Display customised list of products for each customer by tracking their online activity like product searches

-Occasional rebates and discounts to attract traffic away from its competitors

-Product ordered

-flipkart.com receives the ORDER ITEM VALUE (decided by the seller) as the payment from the customer

-if product not returned flipkarts.com subtracts some commission and pays the SETTLEMENT VALUE to the seller

-else it refunds the money to the customer

1.

Customer Value Propostion :

- excellent UI of web portal

-customised product display and relevant ads

-robust Customer Support Team

-product reviews

-convenient and multiple payment options

-timely delivery

-hassle free refunds and products return

-nation wide outreach

-vouchers and occasional discounts

2.

Revenue Model:

=>For online products,

Settlement Value = Order Item Value - Marketplace Fee - GST on Marketplace Fee

Settlement Value: Amount credited to the seller's bank account after commission deductions

Order Item Value: Amount decided by the seller based on MRP

Marketplace fee: includes Shipping Fee, Commission depending on Product, Fixed Fee(transaction based) and Collection Fee

GST on Marketplace Fee: self explanatory

=>Other means of revenue include Ad revenues:

-revenues through flash sales based on quatitative sale

-banner Ads

-revenues earned for advertising sponsored products

-branding partners eg. Xiaomi

3.

The main competitors of flipkart.com are:

- amazon.com

-snapdeal.com

-alibaba.com

4.

Strategies are based on marketing segmentations

Segments are created on 4 broad factors:

=>Geography

caters to the orders of the customers based in TIER 1, TIER 2 and TIER 3 cities

=>Demography

caters mainly to the needs of the youth of the nation since 75 percent of the online users are aged between 14-35

=>Behaviour

concentrates on web friendliness

=>Psychography

concentrates on more psychographic, which helps in deciding where to display ads online. They target online shoppers and encourage those who don't(TVC).