About the company About the company
One97's flagship brand, is India's largest digital goods and mobile One97's flagship brand, is India's largest digital goods and mobile commerce platform - inspired and driven by a commitment to great commerce platform - inspired and driven by a commitment to great con
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PRODUCT PROFILE
aytm is India$s largest mobile commerce platform. aytm started by offering mobile recharge and utility bill payments and today it offers a full mar/etplace to consumers on its mobile apps. 2e have over *+mn registered users. In a short span of time aytm has scaled to more than )< illion orders per month.
aytm is the consumer brand of India$s leading mobile internet company One97 ommunications. One97 investors include 1AI3 artners, Intel apital and 1A 4entures.
2e strive to maintain an open culture #here everyone is a hands-on contributor and feels comfortable sharing ideas and opinions. Our team spends hours designing each ne# feature and obsesses about the smallest of details.
Our approach is simple to design something #e$d love to use ourselves. @herefore #e listen and ta/e the time to understand our users and ta/e their reactions most seriously.
a/ing stuff easy and intuitive is not our only goal. In addition to usability, #e strive to create accessibility, convenience and credibility. 1implicity reflects in our home page design and this mantra has been follo#ed throughout the site and our apps.
@he #orld is increasingly mobileB people #ant access from #herever they are, #henever they need it. At aytm, you have the option of recharging and shopping from #henever, any#here and are e&uipped #ith a secure online #allet called aytm ash.
I@0!A@C!0 !04I02
0lectronic commerce or e-commerce refers to a #ide range of online business activities for products and services. It also pertains to Dany
form of business transaction in #hich the parties interact electronically rather than by physical exchanges or direct physical contact.
0-commerce is usually associated #ith buying and selling over the Internet, or conducting any transaction involving the transfer of
o#nership or rights to use goods or services through a computer-mediated net#or/. @hough popular, this definition is not comprehensive enough to capture recent developments in this ne# and revolutionary business phenomenon. A more complete definition isB 0-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation bet#een or among organiEations, and bet#een organiEations and individuals.
2hile some use e-commerce and e-business interchangeably, they are distinct concepts. In e-commerce, information and communications technology 5I@6 is used in inter-business or inter-organiEational transactions 5transactions bet#een and among firmsForganiEations6 and in business-to-consumer transactions 5transactions bet#een firmsForganiEations and individuals6.
In e-business, on the other hand, I@ is used to enhance one$s business. It includes any process that a business organiEation 5either a for-profit, governmental or non-profit entity6 conducts over a computer-mediated net#or/. A more comprehensive definition of e- business isB
D@he transformation of an organiEation$s processes to deliver additional customer value through the application of technologies, philosophies and computing paradigm of the ne# economy.G
@hree primary processes are enhanced in e-businessB
). roduction processes, #hich include procurement, ordering and replenishment of stoc/sH processing of paymentsH electronic lin/s #ith suppliersH and production control processes, among othersH
*. ustomer-focused processes, #hich include promotional and mar/eting efforts, selling over the Internet, processing of customers$
purchase orders and payments, and customer support, among othersH and
8. Internal management processes, #hich include employee services, training, internal information-sharing, video-conferencing, and recruiting. 0lectronic applications enhance information flo# bet#een production and sales forces to improve sales force productivity. 2or/group communications and electronic publishing of internal business information are li/e#ise made more efficient.
(ifferent types of e-commerce
The major diferent types o e-commerce are: business-to-business (B2B); business-to-consumer (B2C); business-to-government (B2); consumer-to-consumer (C2C); and mobi!e commerce (m-commerce)"
"*" e-commerce is simply defined as e-commerce bet#een companies. @his is the type of e-commerce that deals #ith relationships bet#een and among businesses. About ?+ of commerce is of this type, and most experts predict that "*" e-commerce #ill continue to gro# faster than the "* segment. @he "*" mar/et has t#o primary componentsB frastructure and e-mar/ets. 0-frastructure is the architecture of "*", primarily consisting of the follo#ingB
• logistics - transportation, #arehousing and distribution 5e.g.,
rocter and amble6H
• application service providers - deployment, hosting and
management of pac/aged soft#are from a central facility 5e.g., Oracle and in/share6H
• outsourcing of functions in the process of e-commerce, such as
2eb-hosting, security and customer care solutions 5e.g., outsourcing providers such as e1hare, et1ales, iJ 0nterprises and Cniversal Access6H
• auction solutions soft#are for the operation and maintenance of
real-time auctions in the Internet 5e.g., oai @echnologies and Open1ite @echnologies6H
• content management soft#are for the facilitation of 2eb site
content management and delivery 5e.g., Inter#oven and rocureet6H and
• 2eb-based commerce enablers 5e.g., ommerce One, a
bro#ser-based, J-enabled purchasing automation soft#are6. 0-mar/ets are simply defined as 2eb sites #here buyers and sellers interact #ith each other and conduct transactions.
@he more common "*" examples and best practice models are I", %e#lett ac/ard 5%6, isco and (ell. isco, for instance, receives over 9+ of its product orders over the Internet.
ost "*" applications are in the areas of supplier management 5especially purchase order processing6, inventory management 5i.e., managing order-ship-bill cycles6, distribution management 5especially in the transmission of shipping documents6, channel management 5i.e., information dissemination on changes in operational conditions6, and payment management 5e.g., electronic payment systems or 016.
@he impact of "*" mar/ets on the economy of developing countries is evident in the follo#ingB
Transaction costs. @here are three cost areas that are significantly reduced through the conduct of "*" e-commerce. 3irst is the reduction of search costs, as buyers need not go through multiple intermediaries to search for information about suppliers, products and prices as in a traditional supply chain. In terms of effort, time and money spent, the Internet is a more efficient information channel than its traditional counterpart. In "*" mar/ets, buyers and sellers are gathered together into a single online trading community, reducing search costs even further. 1econd is the reduction in the costs of processing transactions 5e.g. invoices, purchase orders and payment
schemes6, as "*" allo#s for the automation of transaction processes and therefore, the &uic/ implementation of the same compared to other channels 5such as the telephone and fax6. 0fficiency in trading processes and transactions is also enhanced through the "*"
e-mar/et$s ability to process sales through online auctions. @hird, online processing improves inventory management and logistics.
Disintermediation. @hrough "*" e-mar/ets, suppliers are able to interact and transact directly #ith buyers, thereby eliminating intermediaries and distributors. %o#ever, ne# forms of intermediaries are emerging. 3or instance, e-mar/ets themselves can be considered as intermediaries because they come bet#een suppliers and customers in the supply chain.
Transparency in pricing . Among the more evident benefits of e-mar/ets is the increase in price transparency. @he gathering of a large number of buyers and sellers in a single e-mar/et reveals mar/et price information and transaction processing to participants. @he Internet allo#s for the publication of information on a single purchase or
transaction, ma/ing the information readily accessible and available to all members of the e-mar/et. Increased price transparency has the effect of pulling do#n price differentials in the mar/et. In this context, buyers are provided much more time to compare prices and ma/e better buying decisions. oreover, "*" e-mar/ets expand borders for
dynamic and negotiated pricing #herein multiple buyers and sellers collectively participate in price-setting and t#o-#ay auctions. In such environments, prices can be set through automatic matching of bids and offers. In the e-mar/etplace, the re&uirements of both buyers and sellers are thus aggregated to reach competitive prices, #hich are lo#er than those resulting from individual actions.
Economies of scale and network effects. @he rapid gro#th of "*" e-mar/ets creates traditional supply-side cost-based economies of scale. 3urthermore, the bringing together of a significant number of buyers and sellers provides the demand-side economies of scale or net#or/ effects. 0ach additional incremental participant in the e-mar/et creates value for all participants in the demand side. ore participants form a critical mass, #hich is /ey in attracting more users to an e-mar/et.
"usiness-to-consumer e-commerce, or commerce bet#een companies and consumers, involves customers gathering informationH purchasing physical goods 5i.e., tangibles such as boo/s or consumer products6 or
information goods 5or goods of electronic material or digitiEed content, such as soft#are, or e-boo/s6H and, for information goods, receiving products over an electronic net#or/.
It is the second largest and the earliest form of e-commerce. Its origins can be traced to online retailing 5or e-tailing6.@hus, the more common "* business models are the online retailing companies such as AmaEon.com, (rugstore.com, "eyond.com, "arnes and oble and @oys!us. Other "* examples involving information goods are 0-@rade and @ravelocity.
@he more common applications of this type of e-commerce are in the areas of purchasing products and information, and personal finance management, #hich pertains to the management of personal investments and finances #ith the use of online ban/ing tools 5e.g., Kuic/en6.
ear/eter estimates that #orld#ide "* e-commerce revenues #ill increase from C1L<9.7 billion in *+++ to C1L;*?.) billion by *++;. Online retailing transactions ma/e up a significant share of this mar/et. ear/eter also estimates that in the Asia-acific region, "* revenues, #hile registering a modest figure compared to "*", nonetheless #ent up to L?.* billion by the end of *++), #ith that figure doubling at the end of *++*-at total #orld#ide "* sales belo# )+.
"* e-commerce reduces transactions costs 5particularly search costs6 by increasing consumer access to information and allo#ing consumers to find the most competitive price for a product or service. "* e-commerce also reduces mar/et entry barriers since the cost of putting up and maintaining a 2eb site is much cheaper than installing
a Dbric/-and-mortarG structure for a firm. In the case of information goods, "* e-commerce is even more attractive because it saves firms from factoring in the additional cost of a physical distribution net#or/. oreover, for countries #ith a gro#ing and robust Internet population, delivering information goods becomes increasingly
feasible.
What is B2G e-commerce?
"usiness-to-government e-commerce or "* is generally defined as commerce bet#een companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. @his /ind of e-commerce has t#o featuresB first, the public sector assumes a pilotFleading role in
establishing e-commerceH and second, it is assumed that the public sector has the greatest need for ma/ing its procurement system more effective.
2eb-based purchasing policies increase the transparency of the procurement process 5and reduces the ris/ of irregularities6. @o date, ho#ever, the siEe of the "* e-commerce mar/et as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped.
What is C2C e-commerce?
onsumer-to-consumer e-commerce or * is simply commerce bet#een private individuals or consumers.
@his type of e-commerce is characteriEed by the gro#th of electronic mar/etplaces and online auctions, particularly in vertical industries #here firmsFbusinesses can bid for #hat they #ant from among multiple suppliers. It perhaps has the greatest potential for developing ne# mar/ets.
@his type of e-commerce comes in at least three formsB
• auctions facilitated at a portal, such as e"ay, #hich allo#s
online real-time bidding on items being sold in the 2ebH
• peer-to-peer systems, such as the apster model 5a protocol for
sharing files bet#een users used by chat forums similar to I!6 and other file exchange and later money exchange modelsH and
• classified ads at portal sites such as 0xcite lassifieds and
e2anted , a/#heels.com 5an interactive, online mar/etplace #here buyers and sellers can negotiate and #hich features D"uyer eads : 2ant AdsG6.
onsumer-to-business 5*"6 transactions involve reverse auctions, #hich empo#er the consumer to drive transactions. A concrete example of this #hen competing airlines gives a traveler best travel and tic/et offers in response to the traveler$s post that she #ants to fly from e# Mor/ to 1an 3rancisco.
@here is little information on the relative siEe of global * e-commerce. %o#ever, * figures of popular * sites such as e"ay and apster indicate that this mar/et is &uite large. @hese sites produce millions of dollars in sales every day.
Adantages of C2C sites
onsumer to consumer ecommerce has many benefits. @he business model of * is very interesting. @he primary benefit #hich consumers get is reduction in cost as compared to buying space of their adds on other ecommerce sites #hich seem to be &uite expensive. eople interested in selling their items can post their respective items for free or #ith minimal charge depending on the c*c #ebsite. @his leads to formation of a profitable customer base. * #ebsites form a perfect platform for buyers and sellers #ho #ish to buy and sell products of similar interest. @his leads to increase in visitor to customer conversion ratio. Another benefit is that business o#ners can easily afford the lo# cost of maintaining * #ebsites and earn good profits instead of buying or hiring a shop #hich could cost a lot. Another ma>or plus point these #ebsites have is that personal items li/e #atch ,shoes etc can be purchased and sold #ith
ease #hich is not in case of other types of ecommerce. Disadantages of C2C sites
@here are a couple of disadvantages to these type of sites as #ell. (oing transaction on these type of #ebsites re&uires co-operation bet#een the buyer and seller. It has been noted many times that these
t#o do not co-operate #ith each other after a transaction has been made. @hey do not share the transaction information #hich may be via credit or debit card or internet ban/ing. @his can result in online fraud since the buyer and seller are not very #ell versed #ith each other. @his can lead to la#suit being imposed on either ends or also on the site if it has not mentioned the disclaimer in its terms and conditions. @his may also hamper the c*c #ebsite's reputation. ompanies #hich handle consumer to consumer ecommerce #ebsites seem to have becoming very cautious to prevent online scams.
What is m-commerce?
-commerce 5mobile commerce6 is the buying and selling of goods and services through #ireless technology-i.e., handheld devices such as cellular telephones and personal digital assistants 5(As6. Napan is seen as a global leader in m-commerce.
As content delivery over #ireless devices becomes faster, more secure, and scalable, some believe that m-commerce #ill surpass #ireline e-commerce as the method of choice for digital commerce transactions. @his may #ell be true for the Asia-acific #here there are more mobile phone users than there are Internet users.
Industries affected by m-commerce includeB
• Financial services, including mobile ban/ing 5#hen customers
use their handheld devices to access their accounts and pay their bills6, as #ell as bro/erage services 5in #hich stoc/ &uotes can be
• Telecommunications, in #hich service changes, bill payment
and account revie#s can all be conducted from the same handheld deviceH
• Service/retail, as consumers are given the ability to place and
pay for orders on-the-flyH and
• Information services, #hich include the delivery of
entertainment, financial ne#s, sports figures and traffic updates to a single mobile device.
@here are at least three ma>or forces fueling e-commerceB economic forces, mar/eting and customer interaction forces, and technology, particularly multimedia convergence.
Economic forces. One of the most evident benefits of e-commerce is economic efficiency resulting from the reduction in communications costs, lo#-cost technological infrastructure, speedier and more economic electronic transactions #ith suppliers, lo#er global information sharing and advertising costs, and cheaper customer service alternatives.
0conomic integration is either external or internal. 0xternal integration refers to the electronic net#or/ing of corporations, suppliers, customersFclients, and independent contractors into one community communicating in a virtual environment 5#ith the Internet as medium6. Internal integration, on the other hand, is the net#or/ing of the various departments #ithin a corporation, and of business operations and processes. @his allo#s critical business
information to be stored in a digital form that can be retrieved instantly and transmitted electronically. Internal integration is best exemplified by corporate intranets. Among the companies #ith efficient corporate intranets are rocter and amble, I", estle and Intel.
Market forces. orporations are encouraged to use e-commerce in mar/eting and promotion to capture international mar/ets, both big and small. @he Internet is li/e#ise used as a medium for enhanced customer service and support. It is a lot easier for companies to provide their target consumers #ith more detailed product and
service information using the Internet.
Tecnolo!" forces. @he development of I@ is a /ey factor in the gro#th of e-commerce. 3or instance, technological advances in digitiEing content, compression and the promotion of open systems technology have paved the #ay for the convergence of communication services into one single platform. @his in turn has made communication more efficient, faster, easier, and more economical as the need to set up separate net#or/s for telephone services, television broadcast, cable television, and Internet access is eliminated. 3rom the standpoint of firmsFbusinesses and consumers, having only one information provider means lo#er communications costs.
Components o a typica! successu! e-commerce transaction !oop
0-commerce does not refer merely to a firm putting up a 2eb site for the purpose of selling goods to buyers over the Internet. 3or e-commerce to be a competitive alternative to traditional commercial transactions and for a firm to maximiEe the benefits of e-commerce, a number of technical as #ell as enabling issues have to be considered. A typical e-commerce transaction loop involves the follo#ing ma>or players and corresponding re&uisitesB
@he !eller should have the follo#ing componentsB
• A corporate 2eb site #ith e-commerce capabilities 5e.g., a
• A corporate intranet so that orders are processed in an efficient
mannerH and
• I@-literate employees to manage the information flo#s and
maintain the e-commerce system. Transaction partners includeB
• "an/ing institutions that offer transaction clearing services 5e.g.,
processing credit card payments and electronic fund transfers6H
• ational and international freight companies to enable the
movement of physical goods #ithin, around and out of the country. 3or business-to-consumer transactions, the system must offer a means for cost-efficient transport of small pac/ages 5such that purchasing boo/s over the Internet, for example, is not prohibitively more expensive than buying from a local store6H and
• Authentication authority that serves as a trusted third party to
ensure the integrity and security of transactions.
Cons"mers 5in a business-to-consumer transaction6 #hoB
• 3orm a critical mass of the population #ith access to the Internet
and disposable income enabling #idespread use of credit cardsH and
• ossess a mindset for purchasing goods over the Internet rather
than by physically inspecting items.
#irms$B"sinesses 5in a business-to-business transaction6 that together form a critical mass of companies 5especially #ithin supply chains6 #ith Internet access and the capability to place and ta/e orders over the Internet.
Goernment , to establishB
• A legal frame#or/ governing e-commerce transactions
5including electronic documents, signatures, and the li/e6H and
• egal institutions that #ould enforce the legal frame#or/ 5i.e.,
la#s and regulations6 and protect consumers and businesses from fraud, among others.
And finally, the %nternet , the successful use of #hich depends on the follo#ingB
• A robust and reliable Internet infrastructureH and
• A pricing structure that doesn$t penaliEe consumers for spending
time on and buying goods over the Internet 5e.g., a flat monthly charge for both I1 access and local phone calls6.
3or e-commerce to gro#, the above re&uisites and factors have to be in place. @he least developed factor is an impediment to the increased upta/e of e-commerce as a #hole. 3or instance, a country #ith an excellent Internet infrastructure #ill not have high e-commerce figures if ban/s do not offer support and fulfilment services to e-commerce transactions. In countries that have significant e-e-commerce figures, a positive feedbac/ loop reinforces each of these factors.
#nternet re!evant to e-commerce
@he Internet allo#s people from all over the #orld to get connected inexpensively and reliably. As a technical infrastructure, it is a global collection of net#or/s, connected to share information using a common set of protocols. Also, as a vast net#or/ of people and information, the Internet is an enabler for e-commerce as it allo#s businesses to sho#case and sell their products and services online and gives potential customers, prospects, and business partners access to
information about these businesses and their products and services that #ould lead to purchase.
"efore the Internet #as utiliEed for commercial purposes, companies used private net#or/s-such as the 0(I or 0lectronic (ata Interchange-to transact business #ith each other. @hat #as the early form of e-commerce. %o#ever, installing and maintaining private net#or/s #as very expensive. 2ith the Internet, e-commerce spread rapidly because of the lo#er costs involved and because the Internet is based on open standards.
