eCommerce & Snapdeal

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eCommerce & evolution of Snapdeal.com

Gaurav Singh

Project Manager – Snapdeal.com

[email protected]

[email protected]

9958006771

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eCommerce

e-commerce, is the buying and selling of product or service over electronic systems such as the Internet and other computer networks.

Amazon:– Started with books mainly– Started marketplace model. More than 40% revenue from this– Powerful search & reviews and ratings

Dell:– Sold assembled computers online– More than 50% revenue comes from website

eBay:– Online auction site– Seller ratings

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eCommerce Power of eCommerce:

– Unlimited assortment– Search– Reviews and ratings– Convenience of ordering from home / office– Usually, cheaper prices– Extremely easy to compare prices online

Challenges with eCommerce:

– Concerns related to transacting online– Building entire supply chain– Monitoring quality– Compete with several players at once– Buying a product without physically touching it

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eCommerce in INDIA

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eCommerce in INDIA Key factors influencing eCommerce growth in India:

– Extremely low cost of PCs– Ever growing use of internet– Rising middle class with high disposable income– Limited reach of certain brands to people in tier 2 cities

– Cash on Delivery

– Change in mindset: Irctc.co.in Matrimony sites Job sites Online travel agents (makemytrip.com)

– .

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eCommerce in INDIA Growth of eCommerce in India.

(Internet and mobile association of India)

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eCommerce in INDIA

%reach (travel)

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eCommerce in INDIA

%reach (retail)

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eCommerce in INDIA

%reach (retail – across categories)

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eCommerce in INDIA

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Evolution of snapdeal : Plan A MoneySaver: A printed booklet

– In US, 400 billion coupons were sold in 2007, in India this was 0.

– In few months, coupons expired leading to useless inventory

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Evolution of snapdeal : Plan B Coupon on mobile.

– Buy a scratch card worth 99 & get coupons on mobile.– Internet penetration was quite low compared to mobile (2008)

– In free trial, 1 lac customers signed up, but barely a few paid.

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Evolution of snapdeal : Plan C Money Saver prime card was launched.

– Distributed through CCD Limited customer touch points

– Also offered to corporates, to pass on to employees (B2B2C) Corporate & Snapdeal co-branding

– A good relationship with merchants was built

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Evolution of snapdeal : Plan D Snapdeal.com was launched (Feb, 2010)

– A merchant partner suggested this to CEO– Goal was to achieve 100 transactions / day after 3 months. It happened in 3 weeks– Acquired grabbon in June 2010

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Evolution of snapdeal : Plan E And we decided to be even closer to customers !!!

– By offering them products across 17 categories– Products sold across 12,000 pincodes in India

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Evolution of snapdeal : Plan F The grandest of them all … MARKETPLACE model !!!

– Brand stores Many brands do not have ecommerce site Or, don’t have the expertise to handle backend 3000 brand stores already in, expected to reach 10,000

– Allowing vendors to upload and manage products

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Evolution of snapdeal : Plan F Brand store for Apple

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Evolution of snapdeal : Plan F And off course a revamped mobile site !!!

– Doubled the revenues within one week– Still it seems there is a lot of untapped potential

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Making complex decisions

- You are leading the engineering team

- It’s Christmas time and marketing head approached you to put Christmas theme on website

- Director of production systems is skeptical to do any changes on the website considering huge traffic

- Product Head wants to get this done asap as this will directly increase conversion ratio and traffic on site

- YOU … have to decide on what to do !

Culture at Snapdeal.com

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Managing stress and being solution oriented

- You are Release manager

- You are managing a big feature release which is expected to boost revenue by 20 lacs per day

- Feature releases will usually happen after 00:00 hrs since traffic is lesser then

- At 5:00 AM, test manager has discovered some issue

What do YOU do now ?


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Be flexible and agile

- You are in the middle of a feature release

- Suddenly iPhone 5 is launched and your Business Development team has tied up with a telco for exclusive launch on your site

- If you launch iPhone 5, you are jeopardizing other features

- If you do not launch iPhone 5, you are giving up a good chunk of revenue

What do YOU do?


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Dealing with Trouble

- You are Project Manager responsible for all engineering deliverables

- Product head and sales teams say that targets can not be met because of engineering team

- You know that is not true and you are being urged to stop supporting other departments. Give it back to them.

What do YOU do?


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Future of eCommerce & Snapdeal.com

• 900 million mobile users• Mobile users expected to touch 1200 million by 2015• 27 million active internet users• Currently, only 3-4% are buying on mobile. Expected to be 20%

Mobile

• 124 million internet users (all devices)• 10% penetration• 75% of online audience is between 15-34 years of age• Retail has grown by 43% online and reaches 60% penetration

among online users

Internet

• eCommerce revenues expected to increase from USD 1.6 billion in 2012 to USD 8.8 billion in 2016

• 52 eCommerce companies raised USD 700 million from VCs in last 3 years

• Currently more than 80% revenue is from travel, but abroad this is around 35%. Online retail is expected to grow

Others

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Factors influencing growth

– VCs are bullish on eCommerce growth: Invested US$ 177 million in 2011

– Online grocery shopping is starting to appeal to upper and middle class consumer

– eCommerce is expanding into non metropolitan India More than 50% of sales of Myntra.com are from outside top 10 cities in

India

– Social media and mobile are helping accelerate eCommerce adoption India is Facebook’s third largest audience in the world

– Large retailers are looking to build online presence Chroma

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Future of eCommerce & Snapdeal.com Challenges

– Payment gateways are terribly inconsistent (35% failures)

– Upto 70% transactions of some eCommerce companies are through COD

23% online shoppers prefer COD. Mainly first time shoppers In Myntra, 60% transactions are through COD Return rate for COD is upto 25% in some categories

– “Card on Delivery” in also provided by several players

– Logistics remain an issue Flipkart chose “in house” delivery solution. A model used in China and Russia as

well.

– Several payment methods are a must to keep your business going, Credit Card, Debit Card, Net Banking, Pay Pal, COD

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Challenges

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Expectations of customers in India

– Consumers are already trained to expect low prices online

– Free shipping and quick delivery

Homeshop18 offers free shipping

– Return process to be seamless and convenient

At home pick up for returns

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Look forward to following in future:

– Increase in online shopping, since credibility is built now

– Comparison of features and prices online will grow tremendously

– Users will go online for reviews and ratings

– Social networking and search will contribute significantly in eCommerce growth in India

References:State of Ecommerce in India - Sept 2012 (A research report by comScore for ASSOCHAM INDIA).

Trends in India’s eCommerce Market – By Forrestor research for ASSOCHAM INDIA.

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Mobile will play a crucial part as it will grow significantly

References:Mobile internet in India - IMRB

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Number of mobile internet users is now more than desktop internet users (June 2012 onwards)

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Thank You

Contacts:

[email protected]

[email protected]

09958006771

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eCommerce & Snapdeal

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