A Study on Marketing Strategies of Online Shopping Portals – A Comparative study on Flipkart and Amazon India

Abstract

Online shopping is growing by leaps and bounds due to change in lifestyles. Economics of people have undergone a drastic change resulting vicissitudes in lifestyle. The present generation is following the technology trends and updating themselves to lead life. The purchasing in past were purely traditional and online shopping was not easily accepted as they were lacking trust. First online shopping portal in India was “Fabmart”, it was started in 1999. But was not much successful due to absence of logistics, online payments and various, As the time passed changes occurred in markets with new establishments like manufacturing firms, logistic firms with national and international services, online banking services, telecommunications, guidelines from government promoting online business and many more that were favorable for e-commerce activities. In recent past smartphones became integral part of human life, it is being used in daily activities like video calls, online shopping, e- banking, browsing, entertainment, education, cooking, health and fitness, travel and many more apart from calls. This transformation happened with advancement in telecommunication technologies and devices especially with Internet of Things, websites and Apps designed to support business online. These supporting activities provided scope for business to expand with cost reduction, Government initiation on implementing IT and IS for enhanced citizen services such as e-banking, e-administration, e-registrations, e-reservations, e-payments and so on. The rules and regulations are framed by government to take action against who surpasses them, in order to create trust in the minds of people to go online for faster and better services. Technological revolutions and its interventions in all sectors are being accepted and followed. All these favorable situations enabled businesses to enter into e- markets by creating convenience for customer to shop online. Some of the e-businesses are even influencing people’s life. Traditional business houses, which are financially strong. Started their own website for market expansion through internet. Small firms who couldn’t maintain websites were looking for the support of third party operated portals for selling their products via e-market. It was observed and treated as an opportunity by entrepreneurs to enter into e-market by creating the websites to sell products of others involved in traditional retailing, who couldn’t afford own websites and update them regularly. These portals run by e-tailors had increased market share by targeting all segments as a whole and within no time they had increase customer base in Multifood. Software professionals designed applications according to the requirements of virtual market operators, where these applications allowed sellers to upload product images that were handled by image interaction technologies in 3D forms. The buyer can view it from any angle just by a mouse click they can purchase it with online payment through banks/UPI supporting e-transaction with simplification of transaction process through secure methods like OTP and payment gateways where the consumers are preferring to shop online using net banking, debit cards, and credit cards. These institutions are linked in networks and are accessed through application programmed for smoother services and even other payment options are provided like EMI or Cash on Delivery service to increase sales. To have a good online shopping experience these online portals designed the user interfaces like websites accessed at desktop/laptop and Android Apps for smartphones that provide mobility. With user interfaces the customers can access all the features provided in portal like product search with filtration option that allows customer to explore according to prerequisites like interested brands, specifications, price range and many more. These online portals settled their brand image in the minds of customer by selling products that may belong to their own in-house brands and other companies with reduced prices by eliminating intermediaries and saving costs, compared to traditional markets. Sellers and customers are benefitted with e-market.