What e-commerce is all about?

Electronic commerce or e-commerce is a term for any type of business, or commercial transaction that involves the transfer of information across the Internet. Ecommerce allows consumers to electronically exchange goods and services with no barriers of time or distance. It covers a range of different types of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations. It is currently one of the most important aspects of the Internet to emerge. Electronic commerce has expanded rapidly over the past five years and is predicted to continue at this rate, or even accelerate. In the near future the boundaries between "conventional" and "electronic" commerce will become increasingly blurred as more and more businesses move sections of their operations onto the Internet. Business to Business or B2B refers to electronic commerce between businesses rather than between a business and a consumer. B2B businesses often deal with hundreds or even thousands of other businesses, either as customers or suppliers. Carrying out these transactions electronically provides vast competitive advantages over traditional methods. When implemented properly, ecommerce is often faster, cheaper and more convenient than the traditional methods of bartering goods and services. Electronic transactions have been around for quite some time in the form of Electronic Data Interchange or EDI. EDI requires each supplier and customer to set up a dedicated data link (between them), where e-commerce provides a costeffective method for companies to set up multiple, ad-hoc links. Electronic commerce has also led to the development of electronic marketplaces where suppliers and potential customers are brought together to conduct mutually beneficial trade.

Pre requisites for an an online store and what exactly is a shopping cart?
Shopping cart software is an operating system used to allow consumers to purchase goods and or services, track customers, and tie together all aspects of ecommerce into one cohesive whole. While there are many types of software that you can use, customizable, turnkey solutions are proven to be a cost effective method to build, edit and maintain an online store.

How do online shopping carts differ from those found in a grocery store?
The image is one of an invisible shopping cart. You enter an online store, see a product that fulfils your demand and you place it into your virtual shopping basket.

When you are through browsing, you click checkout and complete the transaction by providing payment information.

For an online business:

The first and the best marketing strategy to find a niche product category that consumers have difficulty finding in malls or department stores. Also take shipping into consideration. The next step, you need is a means of accepting online payments. This usually entails obtaining a merchant account and accepting credit cards through an online payment gateway (some smaller sites stick with simpler methods of accepting payments such as PayPal). Lastly, you need a marketing strategy for driving targeted traffic to your site and a means of enticing repeat customers. If you are new to ecommerce keep things simple- know your limitations.

Styletag.com
Founded two decades ago, in 1991, by Yashodhara and Sanjay Shroff, ffolio was the first ever multi designer luxury store in Southern India. It has been the launch pad for several of India's leading fashion personalities JJ Valaya, Jason Cherian, Anamika Khanna, Priyadarshini Rao and Ashish Soni to name a few. The store is driven by the latest trends, suited to the refined and sophisticated tastes of its discerning customers. A pioneer in the Indian Fashion Industry, ffolio over the years has managed to etch a niche and carve a unique identity for itself in the luxury retail industry. It has been responsible for pioneering the concept of inhouse fashion presentations, coffee interludes with leading fashion and style personalities, curated fashion and styling advice and co-branded fashion events, which today have become the order of the day in the world of fashion. Styletag.com aims to inspire people to a superior lifestyle through an engaging and enriching experience. Setting out as India's first online curated fashion and lifestyle destination. styletag.com is a 'MembersOnly' shopping website that hosts flash sales for a limited period at up to 70% off retail prices from both leading designers, as well as the new stars on the horizon. The product portfolio encompasses a range of affordable luxury products that are representations of 'Style' - Apparel, Accessories, Home Decor, Perfumes, Head gear, Watches, Bags and much more. All products are hand-picked by us and provided exclusively to our members through limited time events. Each event starts at 11.00 AM and lasts for a brief window of time. We guarantee 100% authenticity on every product that we sell.

All the merchandise comes from the manufacturer, a licensed agent, retailer, or importer. Due to the exclusive nature of the merchandise in our events, quantities are often limited and certain products may only be available in a select range of sizes.

Modes of Business

Modes of Business

Outright (liability of the inventory is borne by the buyer)

Consignment (SOR:sell or return, liablity is of the vendor)

Advantages payment in 3045 days No liability low investment

Disadvantages physically stuck with the inventory

Advantages 1. stock correction (0-20%) 2. payment on the basis of cash discount

Disadvantages high liability high investment

Type: PO basis

Expenses: 1. Taxes borne

VAT (liable on the buyers i.e. styletag.com) Classifications: Gold/silver jewellery Personal care/grooming (liquids) Perfumes, eu-de-toilette, deodorants, shampoos etc Personal care/grooming (soaps) Clothing accessories/imitation jewellery Footwear Bed sheets, shawls and stoles Sarees/unstiched suits CST: Central Sales Tax (borne by the vendor) 2% of the total bill value 2% 14.5%

5.5% 5.5% 14.5% 5.5% 0%

2. Shipment

Fed-ex Normal Rs. 40/kg

Express Rs. 56/kg

Bluedart Normal Rs. 60/kg

Express Rs. 84/kg

Modes of Shipment

Normal Shipment express -shipment (24 hours delivery) warehouse shipment (takes 3-4 working days)

Drop Shipment the product is delivered to the consumer directly from the vendor and the website is just a mode of transaction

3. Marketing cost

Objectives:
-city orders and analyse how it constrains the growth of e-commerce

the dispatched products can be boosted and the clicks per hour can be increased.

Research Methodology:
Primary Research: the sales and the costs involved -depth study of the customer reviews posted on the blogs and the customer service id

Secondary Research: highlight the issues regarding the booming e-commerce sector.

Hypothesis:
the incurred costs are lowered and the profit margin can be increased. t about in the venture with the implementation of the above mentioned analyses

Review of literature:
As there are many websites in the e-commerce industry, there are a certain models which need to be understood in case the e-commerce venture has to be absorbed in the blood for the better growth of the industry.

Business models are perhaps the most discussed and least understood aspect of the web. There is so much talk about how the web changes traditional business models. But there is little clear-cut evidence of exactly what this means. In the most basic sense, a business model is the method of doing business by which a company can sustain itself - that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain. Some models are quite simple. A company produces a good or service and sells it to customers. If all goes well, the revenues from sales exceed the cost of operation and the company realizes a profit. Other models can be more intricately woven. Broadcasting is a good example. Radio and later television programming has been broadcasted over the airwaves free to anyone with a receiver for much of the past century. The broadcaster is part of a complex network of distributors, content creators, advertisers (and their agencies), and listeners or viewers. Who makes money and how much is not always clear at the outset. The bottom line depends on many competing factors. Internet commerce will give rise to new kinds of business models. That much is certain. But the web is also likely to reinvent tried-and-true models. Auctions are a perfect example. One of the oldest forms of brokering, auctions have been widely used throughout the world to set prices for such items as agricultural commodities, financial instruments, and unique items like fine art and antiquities. The Web has popularized the auction model and broadened its applicability to a wide array of goods and services. Business models have been defined and categorized in many different ways. This is one attempt to present a comprehensive and cogent taxonomy of business models observable on the web. The proposed taxonomy is not meant to be exhaustive or definitive. Internet business models continue to evolve. New and interesting variations can be expected in the future. The basic categories of business models discussed in the table below include: Brokerage Advertising Infomediary Merchant Manufacturer (Direct) Affiliate Community Subscription Utility

Tentative Chapters 1. Introduction 2. Research paradigms 3. Research design and methodology adopted 4. Structure of research

5. The product categories and price classifications at styletag.com 6. Identification and analysis of existing competitors and customer inclination towards fashion products 7. How styletag.com follows the fashion forecasting 8. Capturing the niche market 9. Findings and suggestions 10. Conclusion