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Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser. Alternative names are: e-web-store, e-shop, e-store, Internet shop, web-shop, web-store, online store, online storefront and virtual store. Mobile commerce (or m-commerce) describes purchasing from an online retailer's mobile optimized online site or app.
India has a web user base of around 354 million as of June 2015. In spite of being the second biggest client base in world, just behind China (650 million, 48% of populace), the infiltration of e-business is low contrasted with business sectors like the United States (266 M, 84%), or France (54 M, 81%), yet is developing at a remarkable rate, including around 6 million new participants consistently. The business accord is that development is at an expression point.
In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail activities. Demand for international consumer products (including long-tail items) is growing much faster than in-country supply from authorized distributors and e-commerce offerings. Largest e-commerce companies in India are Flipkart, Snap deal, Amazon India, Paytm.



INTRODUCTION

Online shopping is the process consumers go through to purchase products or services over the internet. An online shop, e -shop, e-store, internet shop, web shop, web store, online store, or virtual store evokes the physical analogy of buying products and services in a shopping mall. The metaphor of online catalogue is also used, by analogy with mail order catalogs. All types of stores have retail web sites, including those that do and do not also have physical storefronts and paper catalogs.
Online shopping is a type of e-commerce used for business to business (B2B) and business to consumer transactions. The term "Webshop" also refers to a place of business where web development, web hosting and other types of web related activities take place (Web refers to the World Wide Web and "shop" has a colloquial meaning used to describe the place where
ONLINE BUYING BEHAVIOUR
Buying online means that there are new ways of reducing costs by reducing the number of staff needed, It is a more effective way of getting products to people and spreading into different demographics.
Porter 5 Forces and online buying
1) Bargaining power of consumers. They enjoy a wider choice.
2) Supplier power. It is more difficult for consumers to manage a non-digital channel. Internet increases commoditization.
3) Threat of new entrants. Online means it is easier to introduce new services with lower over-heads.
4) Threat of substitutes
5) Rivalry among competitors. It easier to introduce products and services to different markets.
HISTORY
The idea of online shopping predates the World Wide Web, for there are earlier experiments involving real-time transaction processing from a domestic television. The technology, based on video text , was first demonstrated in 1979 by Michael Aldrich, who designed and installed systems in the UK, including the first Tesco pilot system in 1984. The first B2B was Thomson Holidays in 1981.
In 1990 Tim Berners-Lee created the first World Wide Web server and browser. In 1992 Charles Stack created the first online book store, (aka Books.com), two years before Jeff Bezos started Amazon. In 1994 other advances took place, such as online banking and the opening of an online pizza shop by Pizza Hut. During that same year, Netscape introduced SSL encryption of data transferred online, which has become essential for secure online shopping. In 1995 Amazon expanded its online shopping, and in 1996 eBay appeared
CUSTOMERS
In general, shopping has always catered to middle class and upper class women. Shopping is fragmented and pyramid-shaped. At the pinnacle are elegant boutiques for the affluent, a huge belt of inelegant but ruthlessly efficient “discounters” flog plenty at the pyramid’s precarious middle. According to the analysis of Susan D. Davis, at its base are the world’s workers and poor, on whose cheapened labor the rest of the pyramid depends for its incredible abundance .Shopping has evolved from single stores to large malls containing many stores that most often offer attentive service, store credit, delivery, and acceptance of returns. These new additions to shopping have encouraged and targeted middle class women.
In recent years, online shopping has become popular; however, it still caters to the middle and upper class. In order to shop online, one must be able to have access to a computer, a bank account and a debit card .Shopping has evolved with the growth of technology. According to research found in the Journal of Electronic Commerce, if we focus on the demographic characteristics of the in-home shopper, in general, the higher the level of education, income, and occupation of the head of the household, the more favorable the perception of non-store shopping. An influential factor in consumer attitude towards non-store shopping is exposure to technology, since it has been demonstrated that increased exposure to technology increases the probability of developing favorable attitudes towards new shopping channels.
Internet shopping enlarged the intended interest group to men and ladies of the white middle class. At in the first place, fundamental clients of internet shopping were young fellows with an abnormal state of pay and college training. This profile is evolving. For instance, in USA in the early years of Internet there were not very many ladies clients, however by 2001 ladies were 52.8% of the online populace. Socio-social weight has made men for the most part more free in their buy choices, while ladies place more noteworthy worth on individual contact and social relations. Likewise, male customers are more free when settling on acquiring items in light of the fact that, not at all like ladies, they don't as a matter of course need to see or attempt on the item.
TRENDS
One third of people that shop online use a search engine to find what they are looking for and about one fourth find websites by word of mouth.Word of mouth has become a leading way by which people find shopping websites. When an online shopper has a good first experience with a certain website, sixty percent of the time they will return to that website to buy more.
Books are one of the things bought most online. However, clothes, shoes, and accessories are all very popular things bought online. Cosmetics, nutrition products, and groceries are increasingly being purchased online. Around one fourth of voyagers purchase their plane tickets online in light of the fact that it is a brisk and simple approach to analyze aircraft travel and make a buy. Web shopping gives more flexibility and control than shopping in a store. From a sociological point of view, web shopping is seemingly the most unsurprising approach to shop. One knows precisely what site to go to, how much the item will cost, and to what extent it will take for the item to contact them. Web shopping has turned out to be amazingly normal and unsurprising, which is one of its extraordinary engages the shopper.

LOGISTICS
Buyers discover a result of enthusiasm by going by the site of the retailer specifically, or do an inquiry crosswise over a wide range of sellers utilizing a shopping internet searcher. Once a particular thing has been found on the website of the merchant, most online retailers use shopping bushel programming to allow the purchaser to assemble various things and to adjust sums, by similitude with filling a physical shopping wicker bin or container in a standard store. A "checkout" process takes subsequent to (continuing with the physical-store likeness) in which portion and transport information is accumulated, if key. Some stores license purchasers to consent to an unchanging online record so that a couple or each one of this information just ought to be entered once. The customer consistently gets an email attestation once the trade is done. Less intricate stores may rely on upon clients to phone or email their solicitations (however Visa numbers are not recognized by email, for security reasons
PAYMENT
Online shoppers commonly use credit card to make payments, however some systems enable users to create accounts and pay by alternative means, such as:
• Debit card
• Various types of electronic money
• Cash on delivery (C.O.D., offered by very few online stores)
• Cheque
• Wire transfer\delivery on payment
• Postal money order
• PayPal
• Google Checkout
• Amazon Payments
• Bill Me Later
• Money bookers
• Reverse SMS billing to mobile phones
• Gift cards
• Direct debit in some countries
Some sites will not allow international credit cards and billing address and shipping address have to be in the same country in which site does its business. Other sites allow customers from anywhere to send gifts anywhere. The financial part of a transaction might be processed in real time (for example, letting the consumer know their credit card was declined before they log off), or might be done later as part of the fulfillment process.
PRODUCT DELIVERY
Once a payment has been accepted the goods or services can be delivered in the following ways.
• Download: This is the method often used for digital media products such as software, music, movies, or images.
• Shipping: The product is shipped to the customer's address.
• Drop shipping: The order is passed to the manufacturer or third-party distributor, who ships the item directly to the consumer, bypassing the retailer's physical location to save time, money, and space.
• In-store pick up : The customer orders online, finds a local store using locator software and picks the product up at the closest store. This is the method often used in the bricks and clicks business model.
• In the case of buying an admission ticket one may get a code, or a ticket that can be printed out. At the premises it is made sure that the same right of admission is not used twice
• Shopping cart systems
• Simple systems allow the offline administration of products and categories. The shop is then generated as HTML files and graphics that can be uploaded to a web space. These systems do not use an online database.
• A high end solution can be bought or rented as a standalone program or as an addition to an enterprise resource planning program. It is usually installed on the company's own webserver and may integrate into the existing supply chain so that ordering, payment, delivery, accounting and warehousing can be automated to a large extent.
• Other solutions allow the user to register and create an online shop on a portal that hosts multiple shops at the same time.
• Commercial systems can also be tailored to ones needs so that the shop does not have to be created from scratch. By using a framework already existing, software modules for different functionalities required by a web shop can be adapted and combined.
DESIGN
Why does electronic shopping exist? For clients it is not just in view of the abnormal state of comfort, additionally as a result of the more extensive determination; focused evaluating and more noteworthy access to data. . For associations it expands their client esteem and the working of economical abilities, alongside the expanded benefits.


INFORMATION LOAD


Designers of online shops should consider the effects of information load. Mehrabian and Russel (1974) introduced the concept of information rate (load) as the complex spatial and temporal arrangements of stimuli within a setting. The idea of data burden is specifically identified with worries about whether buyers can be given an excess of data in virtual shopping situations. Contrasted and routine retail shopping, PC shopping advances the data environment of virtual shopping by giving extra item data, for example, similar items and administrations, and different options and characteristics of every option, and so forth.
Two major sub-dimensions have been identified for information load: complexity and novelty. Many-sided quality alludes to the quantity of various components or elements of a site, which can be the aftereffect of expanded data differing qualities. Curiosity includes the unforeseen, smothering, new, or new parts of the site. A research by Huang (2000) showed that the novelty dimension kept consumers exploring the shopping sites, whereas the complexity dimension has the potential to induce impulse purchases.
CONSUMER EXPECTATIONS
The main idea of online shopping is not in having a good looking website that could be listed in a lot of search engines and it is not about the art behind the site. It also is not only just about disseminating information, because it is all about building relationships and making money. Mostly, organizations try to adopt techniques of online shopping without understanding these techniques and/or without a sound business model. Rather than supporting the organization’s culture and brand name, the website should satisfy consumer's expectations. Many researchers notify that the uniqueness of the web has dissolved and the need for the design, which will be user centered, is very important. Companies should always remember that there are certain things, such as understanding the customer’s wants and needs, living up to promises, never go out of style, because they give reason to come back. And the reason will stay if consumers always get what they expect. McDonaldization theory can be used in terms of online shopping, because online shopping is becoming more and more popular and website that wants to gain more shoppers will use four major principles of McDonaldization: efficiency, calculability, predictability and control.
Organization, which need individuals to shop more online for them, ought to expend broad measures of time and cash to characterize, outline, create, test, execute, and keep up site Also if organization needs their site to be prominent among online customers it ought to leave the client with a positive impression about the association, so buyers can get a feeling that the organization thinks about them. The association that needs to be worthy in internet shopping needs to recall, that it is less demanding to lose a client then to increase one. Bunches of scientists express that notwithstanding when site was a "top of the line", it would go no place if the association neglected to satisfy normal manners, for example, returning messages in an opportune manner, telling clients of issues, being straightforward, and being great stewards of the clients' information. Associations that need to keep their clients or increase new ones attempt to dispose of all errors and be additionally speaking to be more alluring for online customers. What's more, this is the reason numerous architects of web shops considered examination results concerning buyer desires. Research directed by Elliot and Fowell (2000) uncovered acceptable and inadmissible client encounters.
USER INTERFACE
It is important to take the country and customers into account. For example, in Japan privacy is very important and emotional involvement is more important on a pension’s site than on a shopping site. Next to that, there is a difference in experience: experienced users focus more on the variables that directly influence the task, while novice users are focusing more on understanding the information.
There are several techniques for the inspection of the usability The ones used in the research of Chen &Macredie (2005) are Heuristic evaluation, cognitive walk through and the user testing. Every technique has its own disadvantages and it is therefore important to check per situation which technique is appropriate.When the customers went to the online shop, a couple of factors determine whether they will return to the site. The most important factors are the ease of use and the presence of user-friendly features.
MARKET SHARE
India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About 70% of India's e-commerce market is travel related.[6] According to Google India, there were 35 million online shoppers in India in 2014 Q1 and is expected to cross 100 million mark by end of year 2016. CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales.
By 2020, India is expected to generate $100 billion online retail revenue out of which $35 billion will be through fashion e-commerce. Online apparel sales are set to grow four times in coming years.
Key drivers in Indian e-commerce are:
• Large percentage of population subscribed to broadband Internet, burgeoning 3G internet users, and a recent introduction of 4G across the country.
• Explosive growth of Smartphone users, soon to be world's second largest smartphone userbase.
• Rising standards of living as result of fast decline in poverty rate.
• Availability of much wider product range (including long tail and Direct Imports) compared to what is available at brick and mortar retailers.
• Competitive prices compared to brick and mortar retail driven by disintermediation and reduced inventory and real estate costs.
• Increased usage of online classified sites, with more consumer buying and selling second-hand goods
• Evolution of Million-Dollar startups like Jabong.com, Saavn, Makemytrip, Bookmyshow, Zomato Etc.
India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 10%. According to Forrester, the e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012–16.
As per "India Goes Digital", a report by Avendus Capital, a leading Indian Investment Bank specializing in digital media and technology sector, the Indian e-commerce market is estimated at Rs 28,500 Crore ($6.3 billion) for the year 2011. Online travel constitutes a sizable portion (87%) of this market today. Online travel market in India is expected to grow at a rate of 22% over the next 4 years and reach Rs 54,800 Crore ($12.2 billion) in size by 2015. Indian e-tailing industry is estimated at Rs 3,600 crore (US$800 mn) in 2011 and estimated to grow to Rs 53,000 Crore ($11.8 billion) in 2015.
General e-business sector is required to achieve Rs 1,07,800 crores (US$24 billion) by the year 2015 with both online travel and e-tailing contributing similarly. Another huge portion in e-trade is versatile/DTH revive with almost 1 million exchanges day by day by administrator sites.
New segment in e-trade is online drug. Organization like Reckwing-India, Buyonkart, Healthkart as of now offering correlative and option pharmaceutical where as Net Med has begun offering doctor prescribed solution online in the wake of raising asset from GIC and Stead view capital refering to there are no devoted online drug store laws in India and it is allowable to offer physician recommended prescription online with a honest to goodness permit.
Online offers of extravagance items like adornments likewise expanded throughout the years. The greater part of the retail marks have likewise begun going into the business sector and they expect no less than 20% deals through online in next 2–3 years.