In fy, these entities had posted a revenue of rs 1,195. We elaborate a substantive definition of the business model as decisions. Why walmart bought flipkart ecommerce business model. History of flipkart flipkart was founded in 2007 by sachin bansal and binny bansal, both alumni of the indian institute of technology delhi. The online platform of the flipkart is a b2c buyer to consumer model which provides ample shopping opportunities. Business model of flipkart, it makes most of the money via sale on its platform, listing fee from sellers. Ecommerce companies have become all the rage, with companies such as snapdeal, flipkart and amazon fighting to acquire as much marketshare as they can. Flipkarts logistics arm ekart unveils alternative delivery model. Flipkart and amazon india continue to make losses, but theres a silver lining.
The research framework is adapted from osterwalders business model framework. Due to international competitor such as, flipkart has to change its strategy according to the competition. Snapdeal is an online marketplace that was founded by kunal bahl and rohit bansal in 2010. The company started with an inventory based model, but it was in 20 that it moved to a market place model, which is how even operates. Exclusive flipkart will continue to be a marketplace for. Analyze the current state of ecommerce in india analyze flipkarts business model and strategy identify the key failures and successes of flipkart identify the key hurdles faced by flipkart record consumers perspective and attitude about flipkart and the overall online shopping exercise, through survey. While shopping and looting the numerous discount offered by. Both companies were, however, tied as indias most trusted brand in metros. Portal list sellers who sell the desired portfolio products get customers browsing through the. Flipkart is an online internet commerce company founded by sachin bansal and binny bansal in 2007. Rest all business models are mix and match of any of following 3 models. With the increase in awareness about the benefits of online trading, there has been a significant rise in investment in ecommerce business. Difference between amazon and flipkart difference between.
Even then just 23% of all acquisitions earn their cost of capital. Aggregator business model is a network model where the firm collects the information about a particular goodservice providers, make the providers their partners, and sell their services under its own brand. An insight into business model of flipkart indias ecommerce giant. An insight into business model of flipkart indias e. The company in the later half of last decade got funded and ventured into full fledged online retail selling almost everything. In another model, ekarts hubs deliver the packages at kirana stores they partner with. To start with, flipkart has onboard 50 sellers that are selling in the books, media, and consumer electronics categories. Here is the marketing strategy of flipkart analysing its bcg, swot, competitive analysis. Read more about flipkart changes business model, launches flipkart marketplace on business standard. Flipkart is one of the top 3 unicorns from india in the online selling space. But rather than doing a wholesale imitation of amazon or alibaba, flipkart is starting to carve out a business model of its own, one that can work in india, which is a completely different market. Pdf indian online retail ecosystem a study on flipkart. Flipkart has devised a complicated maze of interconnected and purportedly independent entities that receive massive amounts of money it raises to build an integrated ecommerce business. When we designed flipkarts employee benefits and policies, we wanted to ensure that they are meaningful for our employees, rather than being just good on paper, says satheesh k v, director total rewards at flipkart.
Flipkart s more than 50% revenue comes from mobile, and mobile has been at the core of sachins plan right from the beginning. Aggregator business model what is it and how does it. In this video i am discussing about how ecommerce websites like flipkart, snapdeal and amazon earns money and what their earning statics are. Thoughtful insights on business model components of top eretailers based in india have been achieved through content analysis of reliable books, reports, journals and web. Flipkart announced today that it had embraced a marketplace system, turning the portal into a virtual mall and giving consumers access to multiple sellers and brands on one platform. Flipkart has taken lead over amazon in terms of brand recall and popularity in tier 1 and 2 towns in the july to september quarter, a recent study by redseer consulting suggests. Swot analysis of flipkart discusses the internal analysis for the massive online retailer which was started in 2007 by the brothers sachin and binny bansal who were examazon employees. Jan 24, 2018 the new delivery model, which flipkart has been perfecting since november, will reduce its lastmile delivery costs by 2530 per cent, at a time when ecommerce players are grappling with mounting.
Business model of flipkart how does flipkart make money. A case study on supply chain management by flipkart by neetu. Flipkart was initially an online book selling website just like the way amazon started in usa. It will no longer have an inventory of its own, rather whereas the shipping and delivery of the products will be done by flipkart itself. An attempt has been made to critically examine various corporate and business level strategies of two big etailers and those are flipkart and amazon. Flip back the years with this timeline of milestones. Flipkart s technology has enabled them to deliver 5 million shipments per month. He says, mobile gives you 10 times data as compared to desktop. The model will be similar to big players like ebay, amazon, etc. It was founded by sachin bansal and binny bansal in 2007. The procurement model is at the heart of flipkarts success, asmost delays or troubles occur in this part of business. It is the robust logistics at flipkart that sets it apart from otherwannabe ecommerce sites.
Marketing strategy of flipkart flipkart strategic analysis. Flipkart is a company founded in the year 2007 by sachin bansal and binny bansal. Flipkart envisioned to become indias number one online book store before launching its ecommerce platform. Business model of jabong jabong, backed by berlinbased rocket internet gmbh a venture arm of the samwer brothers which is known for cloning several successful online business models of the us in other markets, is reverseengineering the success formula of flipkart in india. Research article survey paper case study available online at. Ecommerce is increasingly attracting customers from tier 2 and 3 cities, where people have limited access to brands but have high aspirations.
Keywords snapdeal model, ebay model, flipkart model introduction. Flipkart business model how does flipkart make money. May 21, 2018 in this video, i have explained how ecommerce companies make money and walmart flipkart deal business model of ecommerce 1. Adkins s s, 2011, the us market for mobile learning products and services. Dec 02, 2015 flipkart believes that indian market resembles closely to that of china instead of the us and also due to the success of alibabas ipo they changed the strategy to advertisingdriven revenue model. The procurement model is at the heart of flipkarts success, as most delays or troubles occur in this part of business.
Nov 04, 2015 revenue model of flipkart is quite straight forward. But maybe investors need to take a second look at this one. Explore more on flipkart at business insider india. The eretailing form of market was fairly something unheard of to the indian consumer in 2007. Pragati priya radha december 2015 business models 2. The volume introduces and examines the business environment model and presents methods of appraisal to examine the model, allowing students to view the business environment both internally and externally. Flipkart changes business model, launches flipkart. Flipkart, started by a team of 2 is currently 20000 people strong and has 26 million registered users clocking over 8 million daily visits. Flipkart shifts to the amazons marketplace model inc42 media. Davinder kaur symbiosis centre for management studies, noida. Amazon business model has been diversified to include many online book retailers, book catalogues, comics distribution platforms, and other books and ebook services. Difference between flipkart and amazon flipkart vs amazon. A business model is a framework for finding a systematic way to unlock longterm value for an organization while delivering value to customers and capturing value through monetization strategies.
It is the second most preferred websites by the people who look for shopping online in india. A business model is a holistic framework to understand, design, and test your business. It was incorporated on 19 september, 2011 and is located in bangalore, karnataka. Opinions expressed by forbes contributors are their own. When flipkart started its operations, they had employed the consignment model of procurement. Flipkart started as a book selling website, but later went on to operate as a complete online retail site. Flipkart started off with a directtoconsumer model selling books and some other products, before. The ecommerce player recently announced the launch of flipkart marketplace, wherein it will provide a platform for buyers and sellers to deal. Customer pickup is flipkarts new delivery model the hindu.
Jan 23, 2014 the ecommerce player recently announced the launch of flipkart marketplace, wherein it will provide a platform for buyers and sellers to deal. Having prior experience in the ecommerce industry helped the founders to work strategically and differentiate their business. Flipkart, which has redefined shopping in india, works on a b2c business to consumer model. Apr 01, 2017 in this video i am discussing about how ecommerce websites like flipkart, snapdeal and amazon earns money and what their earning statics are. The walmart business model in a nutshell fourweekmba. Mar 17, 2017 can ebay india benefit from a merger with flipkart. The online platform of the flipkart is a b2c buyer to consumer model which provides ample shopping opportunities to the indian consumers in an effective manner. Before we do that a little background of the ecommerce giant. Flipkart is a web based business entrance, b2c shopping portal, for indian clients or right now, customers requesting the products for delivering in india. In this article we try to briefly analyse the flipkart model and perhaps find answers to some of its nagging growth issues. Mar 11, 2016 flipkart was initially an online book selling website just like the way amazon started in usa.
Flipkart was originally started as an online book store in october 2007. Organizational structure of flipkart, the best market in the todays world is the online shopping market, where the online website holder can get a huge crowd as the people from all over the world are connecting through the internet and want the products to be delivered at their home. Research article survey paper case study available a study on. According to comscore and amazon claims, flipkart lost its number one position to amazon. Flipkart private limited, dba flipkart is an indian ecommerce company based in bengaluru, india. Ecommerce and expanded the shopping experience with shopping now as easy as sitting at home and clicking on items to add them to the inventory.
They have acquired companies like myntra, jabong, appiterate, letsbuy, mine360, weread and the latest one being upibased payments startup phonepe. The amazon logo was created to represent the message that it sells everything from a to z the arrow connects the two letters and also represents the smile that customers would experience by shopping on web site the arrow becomes a smile. Snapdeal and flipkart are two companies that are based in india. A step by step guide on how you can become a working model by pj medina from flipkart. Comparison have been done considering ecommerce challenges, their business model, funding, revenue generation, growth, survival strategies, shoppers online shopping experience.
In this model, the retailer in this case flipkart holds the inventory owned by the supplier, and buys it from the supplier only when it is sold to the end consumer. Flipkart has subsidiaries including phonepe, which is a mobile payments service, myntra, ekart, jeeves and. Jun 30, 2014 flipkart is looking for 10 male and 10 female models to be part of their growing lifestyle segment if you have the style, if you have the attitude, go ahead and send us your portfolio and you could actually find yourself as the next flipkart style icon. Flipkart started off with a directtoconsumer model selling books and. An overview the electronic commerce, or ecommerce, marketplace continues to grow, as more consumers. Innovation brings with itself a new set of challenges. The company has two directors santosh kumar bethala and prabhu bala srinivasan. Can ebay india benefit from a merger with flipkart.
They charge commission from seller who sell their product on flipkart 10% of the product price. It will help students to understand how business organizations operate in political, social, technological, legal, and economic environments. It is the second most preferred websites by the people who look for. The company still makes money from books and it is not limited to the marketplace. In late 2014, satheeshs team took an employee pulse and focused group discussions to understand the needs of flipsters. Find flipkart latest news, updates, news articles and more information on flipkart from business insider india. Flipkart is an online shopping destination for india founded in 2007 by sachin bansal and binny bansal.
As a popular online marketplace, flipkart also allows the various sellers from across the country to sell their products under different categories on the online platform. Flipkart is looking for 10 male and 10 female models to be part of their growing lifestyle segment if you have the style, if you have the attitude, go ahead and send us your portfolio and you could actually find yourself as the next flipkart style icon. Keywordssnapdeal model, ebay model, flipkart model. Amazon is an american international ecommerce company. Researcher can identify different factors on which the sustainability and growth of the business is dependent on. Apr 15, 2020 flipkart india private limited, also popularly known as flipkart, is an unlisted private company. Flipkart is an ecommerce portal, b2c shopping portal, for indian customers or atthemoment, customers ordering the goods for delivering in india. Flipkart has announced big billion day deal in the year 2014. Difference between snapdeal and flipkart snapdeal vs flipkart. As a popular online marketplace, flipkart also allows the various sellers from across the country to sell their products under different categories on the.
Jul 11, 2016 according to comscore and amazon claims, flipkart lost its number one position to amazon. Future of ecommerce in india, ecommerce models, ecommerce. Three years back, amazon had no infrastructure in india, and now it dominates the indian markets. Flipkart and amazon are two of the biggest online retail companies in india. But selling product is not the only stream of income for flipkart. The importance of technology leading to ecommerce is largely appreciated.
It offers various products on online like books, mobile phones, digital cameras, laptops, watches etc. Flipkart finally seems to have a blueprint of its business model. Joan magretta, too, cites drucker when she defines what a business model is in why business models matter, partly as a corrective to lewis. This case study is based on the customer reactions towards the promotional. Flipkart is one of the top 3 ecommerce companies of india.
Because of cut throughout competition flipkart faces losses many times. It is the robust logistics at flipkart that sets it apart from other wannabe ecommerce sites. How flipkart and amazon makes money ecommerce business. Flipkart which has carved a niche for itself in terms of market share.
Flipkart is an ecommerce portal, b2c shopping portal, for indian customers or atthemoment. Under this model flipkart plans to operate as a marketplace and aims to earn its revenue from advertising and various other services such as. How flipkarts employee benefits and policies bridge the. Flipkart business model free download as powerpoint presentation. The company operates a business model with three primary units that in 2018 comprise walmart u.711 308 1368 1499 1384 548 1321 257 832 1128 231 918 1495 908 228 1556 483 1176 793 869 1055 228 1187 1480 559 337 1389 867 323 964 1231 525 189 1396 562 424 1166 625 646 1400 873 1269