COMPARISON BETWEEN AMAZON, FLIPKART AND PAYTM

1. - Chandan Mitra
A COMPARATIVE STUDY OF
CUSTOMER PERCEPTION ON
ONLINE SHOPPING PLATFORMS

2. Introduction
• English inventor Michael Aldrich introduced electronic shopping in 1979
• Boston Computer Exchange launched in 1982, it was the world’s first ecommerce company.
• Book Stacks Unlimited launched as first online book marketplace in 1992
• Amazon and AuctionWeb launched in 1995
• PayPal launched as ecommerce payment system in 1998
• Alibaba Online launched in 1999 as an online marketplace with more than $25 million in funding.
• Google Adwords was introduced in 2000 as a way for ecommerce businesses to advertise to people using the Google search tool.
Business to Consumer
Business to Business
Consumer to Consumer
Consumer to Business
Business to Administration
Consumer to Administration
Retail
Wholesale
Drop shipping
Crowd funding
Subscription
Physical products
Digital products
Types of Ecommerce Models Forms of Ecommerce

3. 25th year of internet access in India
Indian Current Trend and Fact File
Source: India Branda Equity Foundation

4. 38.5 50
63.7
150
200
0
50
100
150
200
250
2017 2018 2020 F 2022 F 2026 F
INDIAN e-commerce market
(billion USD $)
445.96
560.01
700
829
0
200
400
600
800
1000
2017 2018 Q3 2020 2021
INDIAN internet users
(in million)
Future opportunities
Block chain
Google ‘Buy Now'
App only approach
Drone deliveries
Augmented Realities
Merger with Offline Retail

5. 25
125
55
95
0
20
40
60
80
100
120
140
2017 2025
TIER-2 & BELOW METRO & TIER-1
20
38.5
50 64
188 200
0
50
100
150
200
250
2015 2017 2018 2020 F 2025 F 2026 F
E-COMMERCE INDUSTRY GROWTH (US$ BILLION)
ONLINE SHOPPERS IN INDIA (MILLION)
Average online retail spending in India was US$ 224 per user in 2017.
Propelled by rising smartphone penetration, the launch of 4G networks and
increasing consumer wealth, the Indian E-commerce market is expected to grow
to US$ 200 billion by 2026 from US$ 38.5 billion in 2017.
Online shoppers in India are expected to reach 220 million by 2025.
India’s internet economy is expected to double from US$125 billion as of
April 2017 to US$ 250 billion by 2020, majorly backed by Ecommerce.
Digital transactions are expected to reach US$ 100 billion by 2020.
Through its ‘Digital India’ campaign the Government of India is aiming to
create a trillion dollars online economy by 2025.
* Source: BCG &Indian Brand Equity

6. Objectives of the Study
• To discuss about the present status of online shopping behavior in India
• To study online user engagement in general and Amazon, Flipkart and Paytm in particular
• To identify the best customer preference shopping platform

7. METHODOLOGY
Primary Data : Survey & Observation
Secondary Data: Website, Journals, Research Bulletin
Research Instrument: Simple Average percentage method
Sampling : Convenience Sampling Method
Respondents: 130 participants
Study area: Barasat and Kolkata, West Bengal, India

8. INTRODUCTION TO 3 BIG
PLAYERS
IN E-SHOPPING PLATFORM
Amazon is a USA based company established in 1995.
Started their operations in India in June 2013.
Current revenue: ₹ 11,232 crore in FY19 (economic times)
Bengaluru based company established in 2007
In August 2018 Walmart acquired 77% stake of it.
Current revenue: ₹43,615 crore in FY19 (economic times)
Paytm is a Noida based company established in 2010.
Introduced as a e-financial service.
Major share owned by Soft Bank & Alibaba Group.
Current revenue: ₹3,579 crore in FY19 (economic times)

10. 100 million+
downloads
4.3 star average
user rating
4.9 million user
rating
100 million+
downloads
4.5 star average
user rating
10.5 million user
rating
10 million+
downloads
3.6 star average
user rating
176K user rating
Other Notable Services:
• Kindle
• Amazon Prime Videos
• Amazon Pay
• Pantry Services
• Amapedia
• Fresh Food delivery system
Other Notable Services:
• Myntra
• Flipkart Video Originals
• PhonePe
• Flipkart Supercoin
Other Notable Services:
• Paytm money transaction
• Paytm First
• Paytm Bank
• The return of e-Bay

12. USER ENGAGEMENT
RANKINGS
VISITORS OVER TIME

13. 21%
24%
52%
3%
Mostly bought products category
Books
Electronics
Fashion
Home decor
52%
24%
3%
3%
18%
Preferred Payment mode
Cash on Delivery
Debit Card / Credit Card
PayTm
PhonePe
UPI
ANALYSIS & FINDINGS
The result shows that majority of our respondents
prefer to purchase fashion related items and
accessories online with 52% of preference, followed
by 24% of electronics and 21% of books.
In the question about preference of payment mode,
It can be seen than majority of our respondents
Prefer Cash on delivery followed by debit/credit card
And UPI

14. 43
46
37
48
54
57
9
0
6
0 10 20 30 40 50 60
Based on Discount
Based on Variety
Based on Other facilities
Best Choice Among Amazon-Flipkart-
Paytm Mall Based on Services
Paytm Mall Flipkart Amazon
Based on discounts
Based on Variety
Based on other facilities
Flipkart won in all the categories.
While Amazon is giving a tough competition
to Flipkart, Paytm Mall really struggled to
become favorite.

15. 36%
42%
22%
Which Offer Delights You More?
Amazon Great Indian Festival Flipkart Big Diwali Sale Other
Flipkart won this one with 42% vote
Where Amazon ended with 36% of
Preference.

16. 15%
43%
9%
27%
6%
21%
45%
1%
27%
6%
1%
33%
45%
15%
6%
0
5
10
15
20
25
30
35
40
45
50
Delay in Delivery Didn't Face Any Issue Not Reliable Quality Issue Wrong Product
Delivered
Issues Faced
Issue Faced With Amazon Issue Faced With Flipkart Issue Faced With Paytm mall
This chart is all about issues and drawbacks
Majority of respondents had issue
with Flipkart regarding delay in delivery.
Other part of respondents said, they didn’t
face issue with either Flipkart or Amazon or
Paytm Mall
Paytm Mall struggled to gain customer
reliability
Surprisingly, many of our respondents
complained about quality of both
Amazon and Flipkart, where Paytm
remained in a safe place.
All of 3 got same percentage of negative
feedback when asked about
wrong products.

17. 39%
54%
3% 4%
Most Reliable e-commerce Website
Amazon Flipkart/Myntra Other PayTm
In the final battle of preference,
Flipkart snatcher the throne with
54%! Followed by Amazon with 39%

18. Conclusion
Both of the primary and secondary data is reflecting the fact that Flipkart is leading the E-commerce section
With a margin of user preference as well as revenue.
Amazon is very close to Flipkart in every aspect but maybe it will take another year to upgrade its second position
Paytm mall is the newest among all, it has to overcome the current standing and have to gain more reliability.
We might see the free internet for all in near future
We can expect more cash less digital transaction with the growth of digital India initiative

19. - Chandan Mitra