CHAPTER – 1 INTRODUCTION
INTRODUCTION
Electronic commerce, commonly known as E-commerce is trading in products and services using
computer networks, such as the internet. Electronic commerce draws on technology such as mobile
commerce, electronic fund transfer, supply chain management, internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management system and automated data
collection systems. Modern electronic commerce topically uses the World Wide Web for at least one
part of the transactions life cycle, although it may also use other technologies such as e-mail.
E-Commerce businesses may some all of the following:
Online shopping web site for retail sales direct to consumers.
Providing and participating in online marketplace, which process third-party business to
consumer or consumer to consumer sales.
Business to business buying and selling.
Gathering and using demographic through web contract and social media.
Business to business electronic data interchange.
Marketing to prospective and established consumes e-mail and fox.(forexample, with
slitters)
Engaging and pertain for launching new products and services.
According to an Associated chamber of commerce and industry in India. (ASSOCHAM) survey, the
online retail in India grow to Rs. 70 billion (over Rs. 1.5 billion) by 2015 Rs. 20 billion in 2011
as internet access improved.
India has always been a land of great potential. The socioeconomic conditionof the country has
improved many folds after independence and India is now emerging as one of the leading countries in
the world. Moreover with a population over 100 crore and growth rate is above 6% , it can be
compared to amarketing giant. Hence it can be well judged why online shopping in India is rise at fast
pace over the day. As technology is seared to a remotest village and many job opportunities are
presenting themselves to the unemployed youth
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more and more people are gaining awareness and the money to purchaseexpensive and
luxuries item over the internet.
Online shopping
Which company flashes in your mind first? Flipkart, Amazon,
eBay etc.
We‟ll let us talk about the home-grown India e-commerce site “flipkart”, alsoconsiders as
the Amazon of India.
A company which started with just 4 lakhs is now worth is over more than 2000 crore,
according to data flipkart has provided to Ministry of Corporate Affairs: the companies
revenue is 2011-2012 was $77 Million (Rs. 500 crore). For the fiscal 2012-2013, their
revenue is estimated to be $350 Million. With this huge success flipkart is becoming the fate
of online retail in India. This paper attempt to through light and growth of online retail in
business in India with special reference to flipkart (analysing the consumers feedback about
the online businessmodel of flipkart)
The invention has opened the whole new world of possibilities for us. Not only we can
communicate with the we love with in moment but now a day many vital tasks like job,
shopping, socializing and many others can be done easily at the convenience of the homes.
The concept of online shopping is
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relatively new one and it enables us to buy all our favourite goods and accessories over the
internet. This will not only save the time but also we can get the product at much discounted
price and that too all our homes. There are many online storesthat have developed in recent
times like lets shops.in, flipcart.com and many others. This stores host a wide range of
products like bags, shoes, books, gadgets and many others. To purchase any product you
haveto visit the site and click on the product that you would like to purchase and the product
will be delivered to you with in a week maximum. It‟s that simple.
Growth of online retailing in India
India e-commerce has grown at a compounded annual growth rate of 30%since FY09,
and is expected to be $18 billion (around Rs. 1,11,600 crore) opportunity by FY15. The
findings part of report: Indian Ecommerce – Tip of the Iceberg, by Macquarie Equities
Research back this high growth rate on rising internet population, over 300 million middle
class populations, increasing mobilepenetration and low level of e-commerce activity.
“Compared to the west, India‟s e-commerce industry is still in its infancy. E-
commerce contributes only 0.6% of the country‟s GDP was 1-3% forother countries, with
only 12% of India‟s online population transacting online vs 64%for the US and over 50% for
China.” Said Atul Soni and Nitin Mohta in the report. This growth will further be accentuated by
companies going in for public listing. In the Indian context, only two internet-based
companies are listed on the markets, including info edge, which runs India‟s largest job portal
(naukri.com),and justdial, which is India‟s largest local search site.
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The nature of Indian e-commerce is also different. Travel has the lion‟s share of 71%
of Indian e-commerce, but e-tailing has grown the fastest, at a 59% CAGR between FY09-
13E, to reach 16% market share. Compared to the west, India‟s e-commerce industry is still
in its infancy, but we believe that it may become a bigger part of the entire retail universe
than in the west.
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CHAPTER – 2 LITERATURE REVIEW
LITERATURE REVIEW
“In online buying, the rate of diffusion and adoption of the online buying amongst consumers is
still relatively low in India. In view of above problem andempirical study of online buying
behaviour was undertaken. Base on literature review, four predominant psychographic
parameters namely, attitude, motivation, personality and trust were studied with respect to
online buying. The online buying decisionprocess models based on all the four parameters
were designed after statistical analysis. These models were interrogated with business
intelligence management and data mining to design behavioural Business intelligence
framework with a cohesive view of online buyer behaviour. For better understanding the
factors ofinternet and consumer shopping behaviour towards internet shopping, this chapter would
provide academic research review and relative ideas expressed in the literature that associated
with this subject. Furthermore, a number of hypotheses will be tested to answer the research
questions that mentioned already in the introduction. Dueto the recent research shows the
internet shopping becomes a full and effective business models, therefore there are several
studies that already investigated more or less related on internet shopping and consumer
behaviour. In the following chapter, some point of view will be taken from literatures, and
needs careful review to achieve them as the basis of the subsequent research investigation.”
-Archana Shrivastava & Ujwal lanjewar (2011)
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1. Flipkart Company
Company Overview: Flipkart, founded in 2007 by Sachin Bansal and Binny Bansal,
began as an online bookstore and later expanded into other retail categories, such as
electronics, fashion, and home goods. It quickly became one of India's largest e-commerce
platforms, competing with other giants like Amazon India.
Growth and Evolution: Flipkart's evolution from a small online startup to a market leader
in India has been widely studied. Its success is attributed to its effective use of technology,
understanding of the Indian market, and its strategic initiatives.
2. Business Model and Strategy
E-commerce in India: Flipkart's business model is centered around online retail,
supported by warehousing, logistics, and third-party vendors. A significant element of its
business is customer-centricity, offering competitive pricing, discounts, and fast delivery.
Strategic Partnerships and Acquisitions: Flipkart's strategic decisions, including its
acquisitions of companies like Myntra (fashion retail), Jabong, and PhonePe (digital
payments), have allowed it to diversify its services. It also raised significant funding from
investors such as Tiger Global, Accel Partners, and ultimately, Walmart.
Focus on Technology and Logistics: Flipkart invested heavily in technology to enhance
user experience, develop its website, mobile apps, and back-end logistics network to
facilitate faster delivery and improve efficiency.
3. Market Penetration and Consumer Behavior
Challenges of E-commerce in India: One of the key challenges Flipkart faced in India
was the country’s infrastructure, which initially made logistics a significant hurdle.
Understanding local consumer behavior and preferences has been crucial in Flipkart’s
success. Flipkart has employed several tactics like understanding regional needs, offering
local language support, and ensuring a seamless return policy to cater to Indian consumers.
Target Audience: Flipkart has tailored its marketing and product offerings to cater to
India’s diverse population, offering products that meet the needs of middle-class and urban
populations, while also expanding into rural areas.
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4. Financial Analysis
Revenue and Growth: A key aspect of Flipkart’s case study is its revenue model. Flipkart
generates revenue through the sale of products, service fees, and commissions. However,
its profitability has been affected by discounts and heavy investment in logistics and
technology. As Flipkart expanded, losses were common, but the company was able to stay
afloat due to significant rounds of funding.
Funding and Acquisition by Walmart: The acquisition of Flipkart by Walmart in 2018
for approximately $16 billion marked a major shift in Flipkart’s trajectory, as it gained
access to Walmart’s global resources, supply chain, and retail expertise.
5. Competitive Landscape
Competition with Amazon: Flipkart’s biggest competition has been Amazon India, which
entered the market in 2013. Both companies have battled for market share through heavy
discounting, exclusive product launches, and aggressive advertising. Studies have
compared their strategies in customer acquisition, pricing, product offerings, and
distribution networks.
Local vs Global Competition: Local players like Snapdeal and ShopClues have also tried
to carve out niches, but Flipkart’s market leadership and innovative strategies have allowed
it to maintain a competitive edge.
Switching to Marketplace Model: Flipkart adopted a marketplace model, where third-
party vendors list their products, as opposed to the first-party model where Flipkart itself
was the seller. This shift significantly improved product variety and availability.
6. Marketing Strategies
Discounts and Promotions: One of Flipkart’s defining strategies has been its frequent
sales, particularly during festivals such as Diwali, where discounts and deals attract a
significant number of customers. Flipkart’s ‘Big Billion Days’ sale has become a major
event in India’s e-commerce calendar.
Branding and Advertising: Flipkart’s advertising campaigns have been both innovative
and effective. It has used emotional marketing with localized content to resonate with
Indian consumers. The branding with cricketer Virat Kohli and actress Deepika Padukone
enhanced its image.
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Personalization and AI: Flipkart utilizes data analytics and artificial intelligence to
deliver personalized shopping experiences. Recommender systems, data-driven marketing,
and customer feedback loops are core to its marketing efforts.
7. Logistics and Supply Chain Management
E-commerce Logistics: A vital part of Flipkart’s operations is its logistics system. With
warehouses across India, Flipkart has been able to scale its business by ensuring timely
deliveries. The company also uses AI and predictive analytics for inventory management
and demand forecasting.
Challenges in Logistics: Despite its investments in technology, Flipkart continues to face
challenges related to last-mile delivery, especially in rural regions where infrastructure is
less developed.
8. Sustainability and Corporate Social Responsibility (CSR)
Sustainability Initiatives: Flipkart has made efforts to address environmental concerns by
focusing on green packaging, reducing carbon emissions in its logistics operations, and
supporting sustainable brands.
Social Impact: The company has also launched initiatives to support women’s
entrepreneurship and small businesses through Flipkart’s Seller Hub and other
empowerment programs.
9. Future Outlook and Challenges
Continued Growth in Tier-2 and Tier-3 Cities: Flipkart’s growth potential is significant
in small-town India, where internet penetration is increasing. The company’s focus on
building infrastructure in smaller cities gives it a strategic edge.
Post-Walmart Era: With Walmart’s investment and influence, Flipkart’s future seems
bright, but it faces increased competition from Amazon and local players like Reliance
Industries’ JioMart.
Regulatory and Competitive Challenges: Flipkart may face regulatory scrutiny related to
competition law, especially given its dominance in the market and significant foreign
investment through Walmart.
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Objectives
To explore the online business of model of flipkart.
To analyse the customer feedback of flipkart over other availableonline
retail stores in India.
To find out the mode by which the customer aware of flipkart
To reveal the satisfaction level of the consumer.
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CHAPTER – 3 RESARCH METHODOLOGY
1. Research Design
The research design will be qualitative in nature, focusing on understanding the strategic
business decisions, challenges, and outcomes of Flipkart through an in-depth case study
approach. A qualitative design is appropriate because it allows for the exploration of Flipkart’s
business model, its market positioning, and its impact on the Indian e-commerce ecosystem.
The research will primarily rely on secondary data sources but may incorporate primary data
from interviews or surveys where applicable.
Exploratory Research: The study aims to explore Flipkart’s strategies, growth, and competitive
edge through qualitative analysis. It will help uncover the key factors contributing to Flipkart’s
success and challenges in a complex market like India.
Descriptive Research: The research will describe Flipkart’s business model, marketing
strategies, operational processes, and financial performance.
2. Data Collection Methods
The data collection methods will include both primary and secondary sources.
A. Secondary Data
Company Reports: Flipkart’s annual reports, investor presentations, and business updates will
be reviewed to understand the company’s growth trajectory, financial performance, and
strategic direction.
Industry Reports and Publications: Reports from industry research firms like McKinsey,
Accenture, PwC, and EY will be analyzed to understand the broader e-commerce trends and
Flipkart's position in the market.
Academic Journals and Articles: Peer-reviewed journals, case studies, and articles in business
and management journals will be referenced for insights into Flipkart’s business practices and
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strategies.
News Articles and Media Reports: Articles from leading Indian and global newspapers,
magazines, and websites will provide real-time updates on Flipkart’s activities, partnerships,
acquisitions, and market dynamics.
Market Research: Reports from research agencies like Nielsen, KPMG, and Statista will
provide data on the Indian e-commerce market, consumer behavior, and competitive landscape.
B. Primary Data (if applicable)
Interviews: Interviews with industry experts, Flipkart employees (where feasible), and
stakeholders (such as partners, investors, or suppliers) may provide additional qualitative
insights. Semi-structured interviews can be used to allow flexibility in responses and capture
in-depth information.
Surveys: If needed, surveys can be conducted to gather opinions from Flipkart’s customers
regarding their satisfaction with services, delivery times, product offerings, and overall
shopping experience.
Focus Groups: A focus group consisting of consumers or stakeholders in the e-commerce
space could provide valuable insights into Flipkart’s brand perception and customer
experience.
3. Sampling Technique
Secondary Data: A purposive sampling method will be used to select relevant case studies,
reports, and articles that focus on Flipkart and its operations within the e-commerce industry.
Primary Data (if applicable): For interviews and surveys, a non-probability sampling approach
will be used. The sample will include Flipkart customers, e-commerce industry experts, and
stakeholders familiar with Flipkart’s operations. For interviews, experts from e-commerce
companies, retail professionals, and key decision-makers will be targeted.
Sampling Size: The sample size will be relatively small for interviews (5-10 participants) but
can be larger for surveys (50-100 participants) to gather sufficient data.
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4. Data Analysis Techniques
A. Qualitative Data Analysis
Thematic Analysis: Thematic analysis will be used to identify key themes and patterns in the
qualitative data. Themes related to Flipkart’s business strategies, consumer behavior, and
market growth will be examined.
Content Analysis: For analyzing textual data from interviews, reports, and articles, content
analysis will be used to extract meaningful information related to Flipkart's business practices.
Comparative Analysis: A comparative analysis can be conducted to compare Flipkart’s
strategies with those of its competitors, such as Amazon India, Snapdeal, and Reliance's
JioMart.
B. Quantitative Data Analysis (if applicable)
Descriptive Statistics: If survey data is collected, descriptive statistics (mean, median, mode)
will be used to summarize responses related to customer satisfaction, pricing, and product
preferences.
Cross-tabulation: Cross-tabulation analysis may be used to understand the relationship between
different demographic factors (age, location, income) and customer satisfaction with Flipkart’s
services.
Trend Analysis: To assess Flipkart’s market performance, data from financial reports, revenue
trends, and growth statistics will be analyzed using basic trend analysis techniques to track
Flipkart's growth over the years.
5. Ethical Considerations
Informed Consent: If interviews or surveys are conducted, participants will be informed about
the nature of the research and their participation will be voluntary. They will also be assured of
confidentiality and anonymity in handling their responses.
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Data Integrity: All data used in the case study will be verified for accuracy and reliability.
Secondary data from reputable sources will be cross-checked to avoid bias.
Confidentiality: Any proprietary or sensitive information shared by interviewees or in reports
will be kept confidential and used strictly for academic purposes.
6. Limitations of the Study
Data Accessibility: Access to proprietary data, internal business strategies, and confidential
information about Flipkart may be limited, especially for primary data from interviews with
company employees.
Generalization: Since the research is based on a case study, the findings may not be entirely
generalizable to all e-commerce companies. However, the insights gathered will be valuable
for understanding Flipkart’s specific context and strategy.
Time Constraints: The time required to collect data, analyze it, and write the case study may
limit the scope of primary data collection (e.g., interviews or surveys), focusing instead on
secondary data.
7. Research Framework
The case study will follow the SWOT analysis framework to evaluate Flipkart's strengths,
weaknesses, opportunities, and threats. Additionally, a PESTEL analysis (Political, Economic,
Social, Technological, Environmental, and Legal factors) will be used to assess the external
environment in which Flipkart operates.
SWOT Analysis: To understand Flipkart’s internal strengths (such as technology, customer
loyalty), weaknesses (such as financial sustainability), opportunities (expansion into new
markets), and threats (from competitors, regulatory challenges).
PESTEL Analysis: To examine how external factors like government policies, economic
conditions, social trends, and technological advancements impact Flipkart’s operations.
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CHAPTER – 4
ANALYSIS AND INTERPRETATION OF DATA
On the basis of the answers received from the annexed questionnaire thefollowing analysis has
been made.
Figure 1
40.00%
35.00%
30.00%
25.00%
20.00% Male
Female
15.00%
10.00%
5.00%
0.00%
Age 16-24 Age 25-34 Age 35-49 Age 50+0
The above figure 1, shows the Age Group and Gender of the number of customers who were
taken as simples for the sample study. By analysis the same we couldconclude the following:-
65% of the samples belonged to the age group of 16-24 years, whichcontained
35% male samples and 30% female samples.
20% of the samples belonged to the age group of 25-34 years, whichcontained
12% male samples and 8% female samples.
14% of the samples belonged to the age group of 35-49 years, whichcontained
9% male samples and 5% female samples.
1% of the samples belonged to the age group of 50+ years, whichcontained
1% male sampled and 0% female samples.
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Figure 2
35%
30%
25%
20%
Series 1
Series 2
15%
Series 3
10%
5%
0%
Professional self serviecs student others
Employed
The above Figure 2, show the occupation of customers who were taken as samplesfor the sample
study. By analysing the same we could conclude the following:-
5% of samples were professionals
24% of samples were self Employed
26% of samples were from services Sector
35% of samples were students
10% of samples were others
15
Figure 3
20
18
16
14
12
<200000
10 200000-500000
500000-1000000
1000000>
More than Once Once in 1-2 Once in 3-6 Oncein 7-12
a month months months months
The above figure 3, line graph shows the frequency of visit by the number of customers who
was taken as samples for the samples study with their monthly income. The following table
will show us the frequency of visit of customers belonging to various income groups.
Frequency Monthly Income of the customers Total
of visits Number of
<200000 200000- 500000- 1000000> Frequency
500000 1000000 of visit
More than 11 3 3 3 20
once a
month
Once in 1-2 7 4 3 3 17
months
Once in 1-2 18 12 5 5 40
months
Once in 7- 6 9 5 3 23
12 months
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Figure 4
Are you aware of Flipkart an e-commerce
website ?
Yes
No
From the above Figure 4, it can be analysed that:-
95% of the respondents are aware of Flipkart
Only 5% do not know about it
Figure 5
Which Online Shopping website do you
prefer ?
Flipkart
Amazon
Snapdeal
other
I do not use e-commerce
websites
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The above Figure 5, shows the analysis of consumer‟s choice of e-commercewebsite of
which:-
45% respondents prefer Flipkart
15% respondents prefer Amazon
10% respondents prefer Snapdeal
10% respondents prefer others
While 20% do not use e-commerce websites
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CHAPTER – 5 FINDING & SUGGESTIONS
1. Focus on Improving Profitability
Suggestion: Flipkart should aim to reduce its reliance on heavy discounting by exploring
other revenue models like premium membership services, exclusive brand partnerships,
and subscription-based models. Additionally, increasing operational efficiency through
automation and better inventory management can help reduce costs and improve margins.
Implementation: Flipkart could explore partnerships with niche luxury or regional brands
to offer exclusive products without deep discounting, thus maintaining profitability while
meeting customer demands.
2. Expanding into Tier-2 and Tier-3 Cities
Suggestion: Flipkart has already made significant strides in expanding into smaller cities,
but a more focused approach is needed. Investing in localized warehouses, offering
regional language options, and strengthening customer support in tier-2 and tier-3 cities
can help Flipkart further penetrate these markets.
Implementation: Flipkart should enhance its rural e-commerce initiatives and collaborate
with local businesses to create targeted marketing campaigns that cater to the unique needs
of smaller towns.
3. Investing in Sustainable Practices
Suggestion: Flipkart should continue to focus on sustainability by reducing its carbon
footprint and waste. This could include further investment in green packaging, expanding
the use of electric vehicles in logistics, and investing in renewable energy for its
warehouses and data centers.
Implementation: Flipkart could also collaborate with sellers to encourage sustainable
product offerings and promote eco-friendly packaging, making sustainability a key selling
point for customers.
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4. Enhancing Customer Service and Experience
Suggestion: To differentiate itself from competitors like Amazon, Flipkart should further
enhance its customer service experience by offering faster delivery, better post-purchase
support, and more personalized services.
Implementation: Flipkart can use AI and machine learning to improve its customer
support chatbots, offer real-time updates on deliveries, and introduce loyalty programs to
retain high-value customers.
5. Diversification into New Verticals
Suggestion: Flipkart should consider diversifying further into areas like groceries, online
pharmacy, and home services, which are seeing significant growth in India. Expanding into
new verticals can help Flipkart tap into emerging consumer trends.
Implementation: A partnership with local grocery chains or a dedicated grocery platform
can help Flipkart create a comprehensive online shopping experience for Indian
consumers.
6. Strengthen Data Security and Consumer Trust
Suggestion: As e-commerce and digital payments continue to grow in India, ensuring data
security and consumer privacy should be a top priority for Flipkart. Strengthening its
cybersecurity infrastructure can help build consumer trust and ensure compliance with data
protection laws.
Implementation: Flipkart should invest in top-tier encryption technologies and undergo
regular audits to ensure the security of customer information, particularly in the wake of
increasing online fraud and cyber threats.
7. Building Strategic Partnerships
Suggestion: Flipkart can benefit from forming more strategic partnerships, especially with
telecom companies and financial institutions, to reach more consumers through affordable
internet access and financial products.
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Implementation: Partnering with mobile network providers for discounted data plans or
integrating with digital payment solutions can increase Flipkart’s penetration, particularly
in rural and underserved regions.
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CONCLUSION
Online shopping is the new mantra of this age and the people of India areapplying this in their
lives to a great extent nowadays. As we progress further, thegrowth rate of online marketing in our
country will leap to the stars. According to a research report – state of e-commerce in India by
Commerce for ASSOCHAM, “India‟s Internet base, is already the third highest in the world
after china and US, is growing by nearly 40% every years”. Hence, the rise of online shopping in
the Indian subcontinent has been meteoric in the recent year. The number of shopping websites
has increased and so has the total number of persons who prefer shopping online.
At the end it can be said that Flipkart has become the fate of online business in India. The
company is currently valued at around I billion dollars
i.e. 5000 crore. More importantly Flipkart has ushered in the e-commerce in India. This has generated
massive interest in e-commerce sector, people are opening website to sell anything from shoes to
apparels to jewels to baby care products etc. This has helped in creating a lot of job opportunities
and thus helps the Indian Inc. growth story as well as.
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● Bauer, R. A. (1960), "Consumer Behavior as Risk Taking", in R. S. Hancock (ed.), Dynamic
Marketing for a Changing World, Proceedings of the 43rd Conference of the American
Marketing Association, 389B400.
● Mitra, A. (2013), E-Commerce in India-A Review, International Journal of Marketing,
Financial Services & Management Research
● Nigam, P., E- commerce challenges: a case study of Flipkart.com versus Amazon. in
● Sharma and Mittal (2009), Prospects of e-commerce in India
www.Flipkart.com/about-us(Last accessed on 11-04-23)
www.scribd.com/doc/172706499/Questioneries -Flipkart#scribd (Last accessed on 03-04-
23)
www.surveymokey.com/s/K2VVBZY(Last accessed on 23-04-23)
www.sxccal.edu/msccs/ecommerce 1. pdf (Last accessed on 03-04-23)
www.wikipedia.org/wiki/E-commerce(Last accessed on 23-04-23)
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