Tag Archives: flipkart

Myntra’s End of Reason Sale in 7 images

# 1: A week or so back

The Build Up

YT ads promoting the sale
#2 Midnight on the day of sale

Midnight of Offer DayAs per Myntra’s twitter account, they were updating the offers

 

#3 Morning of the day of sale

Morning of the day of sale

Front double page ad on HT Delhi

#4 Minutes after the sale begins

Minutes after the sale began

 

Push notification to their app base (along with emails and sms)
#5 Few hours into the sale

Few hours into the sale

User Accounts (some say IPs) on both app and web were blocked for 30 minutes from making any request to the site

#6 Less than 12 hours into the sale

12 hours into the sale

 

 

#7 A little over 12 hours

end_myntra7

If the sequential order numbers of Myntra is anything to go by, the order id increased by over 1L  in the first 2 hours of the sale.

Time – 9:42 AM, Order id: 70303245

Time – 11:42 AM Order id: 70425987

Run rate: 60k orders/hour (16.67 orders/sec)

 

Inside the mind of an Indian online shopper: How & Where I spent my money online in 2014

Last year, around the same I time I posted a quick analysis of my spends across various e-comm sites. Thought of repeating the exercise again and see what all changed

1) Split of orders across sites

Split of Orders Across Sites

 

Not surprisingly, I placed the most orders in 2014 on Paytm (close to 70%), followed by Freecharge (8%), Flipkart (4.3%), Amazon & Bookmyshow. Various cashback schemes run on Paytm are the reason behind the skew of order count

Talking about physical goods #1 was Paytm (Aggressive offers early on), followed by Flipkart, Amazon & Jabong

 

2) Split of spend across sites

Split of Spend across sites

 

The story starts to clear up a bit when we look at split of spend across various sites

While 70% of orders I placed were on Paytm, 52% of the money I spent online went their. Flipkart (17.6%),  Jabong (14.1 %) & Myntra (3%) came next. The ticket size for Amazon has been quite less

3) Split of spend across categories

Split of spend across categories

This is quite revealing for me. While last year I spend considerable chunk of money (spent online) buying books, this year books formed a very small piece.

35% of money I spent shopping online last year, was spent on buying Electronics (mostly mobiles) & related Accessories. 25% was spent on recharges/bill payments and a significant change towards Fashion with 22% of my spend went there.

Some Interesting Bits:
1) I spent more ordering food online than buying books (Still can’t believe it or Maybe I got better deals at books 😉 )
2)  I spent more on Cab rentals than movies ( I don’t take cabs as much) and almost the same amount as I spent ordering food online
3) Between Fashion & Electronics – 57% of my money was spent

Purchase Summary
Orders placed: 321
Digital goods (recharges, bill payments and movies): 252

Money Spent: Rs 1,72,448
Money spent on Physical goods: 1,24,621

Closing Thoughts/points
1) I’m not the most savvy online purchaser but I do tend to compare prices before buying stuff and have started using mysmartprice and more recently  buyhutke (Chrome plugin)
2) Online mega sales trigger my purchases (super surprised to find out, I ordered on Myntra this GOSF after a break of 1 year from last GOSF). Made purchases on Big Billion Day and even Myntra’s “End of Reason” sale today
3) While I preferred purchasing on desktop (ease of selection, multiple tables, price comparison etc). I’ve started buying stuff straight of mobile. While for many purchases mobile still serves as the initiation point of my purchases and the same happens other way around, I add items to cart on web only to order them later on mobile when free
4) Most of my purchases (especially Fashion) are impulse (discount driven If I can admit), while Electronics etc are kinda planned
5) I’ve jumped the ship completely when it comes to paying by card. Almost, all my purchases (90% +) are pre-paid now.
6) Myntra and Jabong have spoiled me with their super easy return/exchange policies and flow. I don’t think twice before ordering stuff from them as I know I can always get the product returned/exchanged if I don’t like it. They also have superb delivery timelines (24 hours is a regular)
7) One thing I miss shopping online, is “Lack of Price Protection”. What you buy today for Rs 5000 can be available for say Rs 4000 and Rs 3500 the next day. As a buyer, you obviously feel bad about it
8) Newly caught trend of using wallets to pay on various sites to get discounts and cashbacks is a good incentive to use them. I’ve used Paytm, mobikwik and Payumoney, depending on the offers they are running.
9) I’m yet to order specs, furniture, grocery, health & wellness and things from a lot of these categories
10) Product wise – Wishlist and Rating/Reviews are by far the most useful features. Also, I love the feature to sort/filter using discount/offers (or the lack of them).

Hope, this post would help folks working in e-commerce get “some more idea” of their *Customers*

 

2013: My year on Indian e-commerce sites

Just had this idea of checking and analyzing how much money I spent on various e-commerce sites and doing what. So here’s a quick post sharing the same with the hope that it might be of interest of people running various e-commerce sites or thinking of doing so in future.

In the year 2013 I swiped card/availed COD across Flipkart, Jabong, Myntra, Amazon etc. Here’s quick glance of my purchases

1) Flipkart – Items Purchased: 58, Amount Spent: Rs 50,218

items purchased on flipkart
Split of items
Split of amount spent
Average price of a book I purchased on Flipkart is Rs 299 and average price of a footwear is Rs 876 (3 shoes and 4 sandals/flip flops)

2) Amazon.in – Items Purchased: 7, Amount Spent: Rs 6,598

Great thing about Amazon is that it already provides you an option to see all the purchases you made in that year
Search Order HistoryHere’s the split of purchases (6 books worth Rs 1,599 and a Kindle worth Rs 4,999)

Split of purchases on Amazon.in

3) Jabong – Items Purchased: 1, Amount Spent: Rs 1280

*I actually bought two items but had to return one for poor quality (return process was super smooth though)

Purchased a clothing item worth Rs 1280 during GOSF

4) Myntra – Items Purchased: 2, Amount Spent: Rs 3854/-

Purchased two clothing items worth Rs 3,854/- during GOSF

5) Others

a) Yepme: Items Purchased: 2, Amount Spent: Rs 998/-
b) Inkfruit: Items Purchased: 7, Amount Spent: Rs 3,738/-
c) Shopclues: Items Purchased: 1, Amount Spent: Rs 42/-
d) Bookadda: Items Purchased: 1, Amount Spent: Rs 667/-
e) Purplle.com: Items Purchased: 1, Amount Spent: ~ Rs 2500/-

Summary (Items Purchased: 80, Amount Spent: Rs 69,895/-, Spent some 8K during GOSF, alone, Spent some 11K on online bill payments/recharges)
item_vs_amount

A peak into my mind as an online shopper
1) Convenience very important but not more important than discounts. Moved my bill payments online. I do all my bill payments and DTH recharges on Paytm
2) Almost all my purchases have been via desktop (haven’t got myself to buying things via apps/mobile site yet.)
3) I’ve crossed the chasm from COD to swiping cards. I now prefer to pay online for most of my purchases. I don’t hesitate to swipe card for my first purchase on sites I’ve heard good deal about (Myntra, Jabong, Shopclues etc). Earlier my first purchase on a new site was on COD
4) I got comfortable enough to made a big ticket purchase (bought a laptop for around 30K from Flipkart)
5) Discounts/Offers have an influence on my purchase behaviour (both on pre-decided buys and impromptu purchases). I spent some
6) I trust most sites to deliver goods on time, offer quality goods and a customer friendly return/exchange policy
7) Flipkart’s scan (barcode) and search feature is quite handy for a quick online vs offline price comparison
8) I’ve grown to compare prices across sites before buying anything. I definitely use mysmartprice to compare book prices
9)  Wishlists and notifications are a great way for me to store items and decide when to purchase
10) As a heavy user I’ve figured some hacks to avail the max discount on certain items across some sites;-)

 

Assocham-Comscore State of eCommerce in India – Report

In Sep 2012 Assocham together with Comscore came out with a report on the Indian ecommerce Scene. It had some known and some new stats/key points. You can download the report here

Here are the main points 

Demographics
  1. 75% of online audience between the age group of 15-34 years
  2. Female population is about 40% of total users (July 2012)
Travel
  • The penetration in India is about 44% which is higher than the world average for travel
  • IRCTC get about 19.2% of all Indian online traffic (highest – 12mn uniques/month) followed by Makemytrip
  • Redbus gets about 2%
  • Surprise: Content type sites for ex: indiarailinfo (3.2%) and mustseeindia (2.3%)
  • Travelyaari and Makemytrip (2.3 mn uniques a month)
Retail
  • The penetration in India is about 60% which is lower than the world average for retail (72%)
  • Amazon gets about 15.4%, Flipkart (11.5% – 7.4 mn uniques/month), Snapdeal (11.1% – 6.9 mn uniques/month) of all India online traffic
  • Apparel is the most growing subsegment in retail
  • Flowers/gifts/greetings is the only subsegment with negative growth – 33% (Our coupons??)
Breakup of Payment Methods in India
  1. Direct Debit – 58% with avg transaction of 20$ (lowest)
  2. Visa – 21% with avg transaction of 48$
  3. Master card – 12% with avg transaction of 47$
  4. Cash on Delivery – 7% with avg transaction of 33$
  5. Others – 2% with avg transaction of 43$
  6. American Express cards apparently have the highest avg transaction size of 110$
IRCTC Specific Info 
  • SBI and SBI Direct – 29 +26 = 55% of all transactions
  • ICICI (17%), HDFC (14%)
  • Do a revenue of about 38 Cr
 Future 
  • Car rentals and bus booking online should go further up
  • home furnishing and lifestyle goods to contribute more
  • comparison shopping sites/apps to get more popularity

The Rise of the Indian Online Marketplace

If you are part of/related to the Indian e-commerce scene in any manner or read desi start-up blogs, chances are you might be familiar with the concept of Marketplace.

A “Marketplace” connects buyers and sellers who otherwise have trouble finding each other.

Marketplace(think eBay), is simply a model which has multiple sellers providing various goods/services through a platform. In the context of this discussion, an e-commerce website instead of sourcing and fulfilling the orders just manages the listing of products and passes on the order details to the sellers who then handles them.

Recently, India’s biggest online retailer (Flipkart) made their first move as a part of shift towards the marketplace set up.

To start with, Flipkart has on-board 50 sellers that will sell books, media, and consumer electronics.

Other Indian online retailers on scaled up marketplace model are Snapdeal(which recently raised $ 50 mn from ebay and others), Tradus, Infibeam and Shopclues. Let’s understand how the marketplace model and inventory led model compare in execution

The key components of an e-commerce set up are

  1. Customer Acquisition
  2. Catalog
  3. Technology (Customer facing/related and backend)
  4. Inventory
  5. Fulfillment (Sourcing, Packaging and Delivery)
  6. Payment Processing
  7. Customer Service/Support

Setting everything up for a rookie is quite demanding (capital and effort wise) and will take months to get off the ground, however to signup as a seller on a marketplace and/or opening a shop using SaaS based ecommerce store building platforms like Zepo, Buildabazaar or Martjack is a quickie. So for a newbie it makes perfect sense to open up their own shop (SaaS) and list on various marketplaces as a seller

Based on one’s expertise and priorities there are various ways of building the e-commerce store set up. For eg: while someone will prefer to control the last mile delivery experience, someone would rather let logistics companies take care of that.

The most common model is mix of Inventory led and Marketplace both (think Amazon). Here’s how it works

  1. Inventory Led – Short Tail (Fast moving, Commodity products, Easy to warehouse for ex: best selling books/movies/pendrives etc)
  2. Marketplace – Long Tail (Slow moving, Niche products, Difficult to warehouse for ex: medical books published in hindi/very old foreign language films/Furniture etc)

While it might not very clear from the examples but Inventory led model makes sense for products which aren’t perishable(both utility and demand/vogue), are easily available offline too and move fast enough while the Marketplace model makes sense for products which one doesn’t know exist or even if one knows they don’t have any clue on how to stock them, how to source them etc.

Customer Acquisition,Technology,Payment Processing and Customer Support are done by the e-commerce company.

Here’s how various models are implemented in some of the biggest Indian e-commerce companies.

break_up

A couple questions come to the the curious mind.

  1. Why sudden rush towards Marketplace all across?
  2. Is Marketplace the future of e-commerce in India?

1. Why sudden rush towards Marketplace all across?

The answer to that question (from what I’ve heard) lies in the deep VC pockets. With the Govt of India dillydallying around the FDI regulations for e-commerce, apparently Marketplace is the only way to get external funding needed to sustain the business.

Also, it could be because the bigger e-commerce companies have figured out that

a) they can’t possibly go that strong on increasing the  quality/quantity of the catalog on their own
b) they ran sick and tired of doing everything on their own.

To get a sense, compare how Flipkart was managing these functions in it’s previous avatar and compare it to say Snapdeal

 

break_up1

2. Is that the future of e-commerce in India?

On doing some rough calculations based on the information available Flipkart, Infibeam, Snapdeal, Jabong, Bookadda and Homeshop together would be doing around 1,15,000 orders a day (Flipkart and Snapdeal contributing about 60-70 %).

There are a lot more sites (ending with kart and otherwise) who just might be doing another (20-30,000 transactions or more a day)

As per my guesstimate all independent smaller e-commerce websites and platform powered online shops selling long tail products would be doing not more than 5-10,000 orders a day.These numbers could be significantly different from the mark for all we know but based on these numbers before marketplace became the buzzword, top 5-6 established players were doing about 90,000-95,000 orders a day in total while the others in long tail were about 5-10% of their size.

The balance has started to shift towards the marketplace model transactions. For now their share could be 10-15% of the overall e-commerce transactions.  Going forward we’ll a lot more smaller businesses and niche startups coming online and by 2013 end their share could be upwards of 20-25%(going by the fact that between Flipkart and Snapdeal they are the biggest online retailers).

A couple of factors to speed this up would be

  1. More platforms like Buildabazaar and Zepo
  2. Better payment gateway/cash collection mechanisms (Ghar pay etc)
  3. Better logistics (for end to end fulfillment)
  4. Third party SaaS services for other components like (Catalog, Warehousing, Customer Support)
  5. Some VC investment in 1-2 marketplace companies

The sooner we get to see the above mentioned things rolling the faster we’ll get to the long tail moving online. At some time in the  mid term future(5-7 years) the demand for long tail items (Niche/scarcely available/custom made) products could become comparable if not more than the demand for short tail products.

So the marketplace model and independent shops powered by various sites are here to stay and the current biggies like Flipkart, or maybe Snapdeal will evolve into a mix of (Short tail – Inventory led – Self Fulfilled and Long tail – marketplace – Logistics company) models.

Your thoughts?

The Best of Web: 25/6/2012

Looking for something interesting to read? I read the following links(and visited websites) today and liked, you might want to read them/check them out

  1. Apple’s Retail Army, Long on Loyalty but Short on Pay  (nytimes.com)
  2. http://www.asymco.com/
  3. Opportunity Cost (Seth Godin’s simple yet effective reminder)
  4. Flipkart CEO’s response to the Forbes Story(and their reply)
  5. The role of physicians at the centre of health care is under pressure

Amazon’s Junglee.com joins the Indian E-commerce Party

 

A couple days back I read this article on Medianama which shared that Amazon will soon go live  in India as a marketplace with Junglee.com, but a tweet  today morning  announcing that Junglee.com is live caught me by surprise.

Amazon, of course was expected to test waters in India this year but the whole junglee.com gig is away from most people’s anticipation of how it will all unwrap.

Amazon for the records is the the biggest global e-retail/e-tail giant which posted $17.43bn in revenues in last quarter of 2011 (35% more than the revenue for same quarter in 2010). The company net sales were up 37% compared with 2010.

Amazon is India

There was a lot of speculation particularly for the last six months about Amazon’s entry to India. Amazon as countless sources have shared, already have development centers in India and had started looking for talent for their fulfillment capabilities.  As per the current regulations Amazon is not allowed to open an online Multi-brand retail store, and can not make FDI  in India except for a single brand retail business, thus Junglee.

Amazon’s Junglee

Here’s how Amazon describes it

“Junglee is an online shopping service by Amazon which enables customers to find and discover products from online and offline retailers in India and from Amazon.com. Junglee organizes massive selection and multiple buying options from hundreds of sellers, and leverages Amazon’s proven technologies and millions of customer reviews to help customers make smart purchase decisions.”

For the uninitiated Junglee is like a Huge Brochure which lists  millions of products from thousands of vendors. You choose the product that you want to buy and then go the vendor site or call them to order as explained here



Here’s a look at one of the category(Books) page

 

Just one book, also I am not sure why am I being shown featured jeans when I categorically chose books.  Bugs.

Here’s a sample product page(for Paulo Coelho’s Alchemist)


Amazon apparently relies of it’s own site for Metadata (Product Description for ex) which in some cases can be really screwed up like for the book ‘I Too Had A Love Story’

The product description is picked from http://www.amazon.com/I-Too-Had-Love-Story/dp/8188575704 and is as far from the actual book description as it can be http://www.dialabook.in/books/i-too-had-a-love-story_1_12247.html

Scrolling down further is the review section. Most part of this section comes directly from Amazon.com



List of Sellers

 

Junglee.com for now has about 5 sellers for Books which includes names that probably feature towards the middle(and bottom) spots of a list of top 10 online booksellers in India. Almost everything from the list except Flipkart and Infibeam can be expected to list here.

Using Junglee as a Seller: Win Some, Lose Some

 

Junglee let’s online and offline retailers to list themselves and their catalogues for free and without any ongoing commission.

 

What it means for suppliers (especially small time indies) is that they get a chance to  drive traffic and sales from Junglee’s visitors and will convert some customers to direct. Over a period of time as in an online marketplace set up their ratings and reviews will determine how they fare in the long run.

The picture however isn’t all rosy. For established players like Indiaplaza (unless there is some non-compete or alliance agreement) registering on Junglee will give them a temporary boost in terms of both traffic and eventually sales but once Junglee starts running it will break its shackles and given them a run for their money by listing Amazon.in as the default/first choice as a buyer. Once that happens the customers will make the switch to Amazon (in place of a retailer they found a few months back) with the blink of an eye.

(http://services.amazon.in has more details on how to set up ads on Junglee.com)

Using Junglee as a Customer: All Profit No Loss

Junglee.com is another (but branded) shiny object for the scores of people who spend hours daily on the interwebs tweeting or facebooking. They know have one more place to spend time and compare prices. It will be helpful in finding alternative vendors for particular categories and helpful in finding product categories that have been literally out of the online sphere, stuff like Pet Supplies.

Within a span of months you’ll find dozens of people selling Pet Supplies and the likes on Junglee. What this means is that consumers won’t have to wait for their favorite e-commerce site to add some category or a stand alone/vertical service around the category to launch.

What’s up with Amazon?: Junglee is the shortest(and smartest) possible path

To begin their tryst with India  Amazon is trying to be the front end(influencer) of the purchase funnel in stead of starting being a back end service provider. It wants Indians to log on to Junglee.com to begin their shopping journey (they can or cannot decide to buy from Amazon) but eventually they’ll make it their in house offers compelling enough to get a huge chunk of the pie.

Here’s how it could unfold for Amazon. Junglee is essentially the market place of Amazon.com abstracted and launched a special business for legal and other reasons.  In Amazon.com’s marketplace lot of vendors put their goods on sale and do most of the fulfillment too. Amazon however displays their products and collects the payment from customers (Think Ebay).

What Works Good For Amazon

  1. Junglee will create an incoming line for new retailers to tie-up. Retailers will flock and list products instead of the company finding them using direct/in-direct modes of advertising or marketing.
  2. User Data: Millions of people could potentially sign up and start using Junglee to discover new products and vendors. All the user and their shopping history details are now available for scrutiny
  3. All Junglee’s set up  can eventually be replicated for Amazon.in’s market place feature
  4. A sense of how business works. Deeper/Closer look at how the things work
  5. Later they’ll start people for accepting payments and maybe coordinating deliveries (Customers buy a third party product from Junglee and Junglee home delivers a product which the third party retailer had in their office and sent to Amazon’s fulfillment center once they get an order). They stand to earn 2-10% commission depending on the product category and services they offer
  6. Use all the Seller info to tie-up directly for Amazon.in
  7. Based on user preferences start offering competitive prices and eventually *produce* them domestically

Having said all of that, Junglee is an interesting piece in the Indian e-commerce puzzle and it will definitely have an impact on the existing market leaders. Most Indians from what I understand would give an arm(or probably) a leg to switch to another cheaper vendor especially if it has Made in America tag on it.

What do you think?

Cash on Delivery(COD): The Good, the Bad and the Ugly

COD or Cash on Delivery as we now know it wasn’t no where near its popularity today a few years back. Today quite a few people (who call us at dialabook and otherwise) know and talk about Cash upon Delivery as a concept (books milne ke baad paise de sakte hain?) if not the exact term. COD as we know has taken the entire e-commerce Industry(if we can call it) by a storm.

To give you some perspective, about 2 years back when we(@dialabook) started collecting payment for books on delivery, we had no idea about this term and no notable e-commerce site had this option. Fast forward it to today and almost all e-commerce sites(and a few others like the one below) accept(or rather promote) COD to lure more customers.

While COD as a concept has been there for ages under the name VPP (Value Payable Post) by India Post. Here’s how their website defines VPP

The value payable system is designed to meet the requirements of persons who wish to pay for articles sent to them at the time of receipt of the articles or of the bills or railway receipts relating to them, and also to meet the requirements of traders and others who wish to recover, through the agency of the Post Office the value of article supplied by them.

Govt VPP however seems to have an upper limit of Rs 5000/-, which means you can’t send goods worth more than 5k through them.

Not just VPP, some courier companies in India have been supporting COD since March 2009 at least. Though some  startups like @dialabook might have been offering COD locally before, the big shift happened in April 2010 when country’s leading e-commerce player Flipkart introduced COD in April 2010 with a cash limit of Rs 2500/-, followed eight months later by Infibeam (FYI: Indiaplaza announced COD on 25th March 2010, a few days ahead of Flipkart ). It is also worth noting that some services like travelguru.com were offering COD option at least 2 years before e-commerce companies started adopting it. Seeing its success elsewhere, online travel portals yatra and Ezeego1 also launched COD in year 2011

As it turns out India isn’t the only breeding ground for COD. China,Russia etc have been a witness to the popularity of COD for long.

Going by the stats in India, as much as 60% customers of top 5 e-commerce sites in India use the option of paying by cash on delivery (COD) and many of these sites have credited COD  for fueling their rapid growth. While COD for obvious reasons makes a lot of sense for Indian customers and definitely opens a new market (students etc) to e-commerce it isn’t exactly what the doc prescribed or should prescribe. Here are some of the things wrong with COD

  1. Cost: Nearly all courier companies charge extra for collecting cash. This cost is divided in two parts
    Fixed Cost: Rs 20-150/- ;  Variable Cost: 1-3% of the COD Amount. (This is mostly for high price items like mobile phones, laptops etc). If the item is priced low then the COD charges at times exceed one’s margin in the product and if the item is priced very high then the % COD charge turns out to be in hundreds or even thousands
  2. Delay in payment: Unlike credit card transactions, COD payment generally takes 1-2 weeks or more to be transferred to your account. This bites your cash flow especially as the COD amounts start becoming huge.
  3. Delay in deliveries: On an average COD deliveries are delayed by 12-36 hours when compared to normal deliveries. The reasons for the same are mostly non-availability of customer or cash and many a times both. Here unlike regular deliveries the parcel can’t be dropped to a neighbors place
  4. Higher Returns/Cancellations: Since the customer hasn’t paid in advance, they can always cancel/refuse to take the delivery and sight reasons like I found this phone cheaper locally and have bought it from there or I have changed my mind, will buy a new laptop later
  5. Overheads: Collecting the cash, collating the receipts and maintaining records et all is a nightmare

With increasingly every online business offering it despite its disadvantages(to retailers) the situation might just go out of hand and turn into a death spiral (at least for some non/less funded businesses that rely heavily on their internal cash flows). Small startups are the ones that should be really concerned about these issues instead of blindly aping others and starting COD.

With time as the e-commerce market in India matures, there *might* be more trust in established mechanisms of swiping cards for paying and some people will get over the liking for COD and prefer pre-payments. But, given the case in China, Russia etc it looks like unless the e-commerce majors deliberately start demoting COD and promoting other payment options we just might replicate what’s happening elsewhere i.e 60-85% people using e-commerce sites paying by COD.

Some ways around COD

  1. Multiple Payment Options (at least 5-6)
  2. Pre-payment methods (like wallets, cards)
  3. Mobile banking and SMS payments
  4. Card on Delivery
  5. Giving incentives to users for choosing online payment against COD
  6. Alternative payment methods such as paypal etc

While COD is a good option to have in some cases its double edged sword which should be used with a lot of caution and foresight. What do you think?