FLIPKART

Brief History

Flipkart.com, India’s largest e-commerce player in physical products acquired Letsbuy, the second largest retailer in electronics. With this move, Flipkart firmly established itself as the leader in the consumer electronic space

Flipkart was established in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi.

Flipkart is among the top 30 Indian web sites and has been credited with being India's largest online bookseller with over 11 million titles on offer.

The store started with selling books and in 2010 branched out to selling :

CDs, DVDs, mobile phones & accessories, cameras, computers, computer accessories and peripherals, pens & office supplies, other electronic items such as home appliances, kitchen appliances, personal care gadgets, health care products etc

Why did it click ?

real achievement has been in solving the pain points in Indian eCommerce that most well funded players are still complaining  about.

Flipkart’s

D i s c o v e r a b i l i t yP a y m e n t sInventory

Delivery

Payment methods

How do I make payments for a Flipkart purchase ?

Credit/Debit Cards

Internet banking

Cash On Delivery (COD)

e- Gift Vouchers

Credit/Debit

Cards

Internet banking

Cash On Delivery (COD)

e- Gift Vouchers

Credit / Debit cards

All major credit/ debit cards are accepted

Is done automatically by software packaged with electronic commerce software.

SSL encryption International cards not

accepted Required :

16 digit Customer Card Number.

3 digit Card Verification Value

Credit card emi scheme

Two types of schemes:

3 months• No processing fee charge

6 months• A flat Rs. 500 EMI processing fee charge

Only ICICI, HDFC & CITIBANK

Credit card processing

Credit/Debit

CardsInternet banking Cash On

Delivery (COD)

e- Gift Vouchers

Internet banking

Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank’s website to perform any of the virtual banking functions.

on-li

ne,

real

tim

e

The system is updated immediately after everytransaction automatically

Flipkart.com has tie-ups with a number of banks like ABN AMRO, AXIS, BOI, SBI, HDFC to name a few

Check account balances and trackrecent account activity

Transfer money between accounts

Issue stop payment requests Apply for auto, mortgage, home equity, student, or personal loans

Receive investment product andservice information

Need an account with an InternetService Provider (ISP)

Security concerns, like ‘hackers’accessing your bank accounts

Original setup for bill paying time istime-consuming but will ultimately bea time-saver

Advantages / disadvantages

How is it good for the customer ?

It is convenient.

It isn't bound by operational timings.

There are no geographical barriers.

Services can be offered at a miniscule cost.

Payment gateways

Two types of players in this field

3rd party service like Ccavenue which ties up with many banks

Bank itself providing its own payment gateway (like

ICICI payseal)

For high volume players

Lower TDR

Lower Setup fees

Low setup fees

TDR as high as 7 %

Banks need lots and lots of paperwork, and integration time is usually more than 2 weeks. 3rd party players typically have lesser requirements.

CCAvenue

Uses secure servers throughout and adopts stringent security measures

Customers enter all their personal information and Credit Card details on e- payments and the same is encrypted before it is transmitted over the Internet to the Acquiring Banks

CCAvenue’s server is behind security firewalls to ensure maximum protection of your customer’s information.

Online payment is sa

fe.

Payment gateways are se

cure.

The ProcessThe biggest 3rd party player in

India.

Offers variety of payment

options which no other player

come even close.

Reliable .

They are also the most

expensive in the industry.

They don't offer any custom

plan other than the ones

mentioned on their site

Credit/Debit

Cards

Internet banking

Cash On Delivery (COD)

e- Gift Vouchers

Cash on delivery

Cash payment to the courier partner only at the time of delivery

Captcha texts for validation

Maximum order Rs. 50,000

E- gift vouchers can’t be used

Credit/Debit

Cards

Internet banking

Cash On Delivery (COD)

e- Gift Vouchers

E- gift vouchers

Digital WalletThe Wallet is a prepaid instrument that enables one to shop on Flipkart.com multiple times by making a payment only ONCE

The upper limit on each Wallet refill is Rs. 10,000.

Make one payment and shop multiple times

Simpler and faster check-out process

No more worries of failed payment transactions

The total balance in the Wallet (irrespective of the source) will always be available for redemption.

NO EXPIR

Y DATE

When you make an order, you can choose to use the Wallet as the mode of payment and the amount will be deducted from the balance in your Wallet.

Recent changes

As of 2nd February 2012, the Refunds Policy for the Wallet has been slightly modified. As per the earlier policy, the entire balance in the wallet was fully refundable. Under the updated policy, the Topped-Up balance in the Wallet will not be refundable starting 2nd February 2012.

Going forward, once you have purchased balance for your wallet, it will only be redeemable against a purchase and not a refund.

All other terms with respect to the wallet remain the same.

IS IT SAFE ???

Problems faced by online payments

No credit card/internet banking

Fear to transact online.

Repeat transaction failures.

What does Flipkart do to overcome these?

Auto redirection to banking site• Flipkart never lands you on CCavenue

page, you are auto redirected to the banks page where the info is required to be filled

• By-passes one unnecessary page by passing the required parameters directly to CCavenue and not through a user interface.

Banks Status• Flipkart maintains its own real time status if

the bank’s netbanking is working or not

Flipkart and their trusted payment gateways use SSL encryption technology to

protect your card information.

Encryption

Secure Sockets Layer (SSL)

Cryptographic system that uses two keys to encrypt data a

public key known to everyone and a private known only to recipient of the message.

Secure HTTP (S-HTTP)

S-HTTP is designed to transmit individual messages securely while SSL creates a secure

connection between a client and a server over which any amount of data can be sent

securely

Complementary rather than competing technologies.

Strengths Weakness

Opportunities Threats

STRENGTHS

Flipkart uses SSL encryption

technology, one the most trusted technology.

Flipkart never lands you on 3rd party

Website page (CCavenue) auto redirected to the

banks page

Flipkart maintains its own real time status if the bank’s netbanking

is working or not.

Flipkart had atleast 4 different Payment

Gateways integrated. They introduced Cash-on-Delivery and order

on phone.

WEAKNESSES

Potential for overall system being slower during transaction

They can include failure of technology, frauds and tracking of

individuals

Power failures at the time of transaction can create serious issues

OPPORTUNITIES

Flipkart can use a tracking system for recording the behavior of consumers

c) Better feedback mechanism for Payment related queries can be a edge.

b) Opportunity to decrease the use of paper cash by making system more secure

and reliable.

THREATS

This business attracts

competition and Flipkart one the first Indian Ecom website so it has

created a model for others to enter in to the same business.

Lack of continuous updating can lead

to failures as this is a technology driven

business so continuous

upgradation is required.

Recommendations

Aggregators like CCavenue are just intermediaries between bank/credit card processor and the merchant

Removing this intermediary will improve payment success rate and reduce the commission chargedSo, as the grow, it is important to integrate with credit card gateways like AXIS/HDFC

SUCCESS RATE IMPROVES

Heavy investment in Fraud Monitoring System to reduce liability

THANK YOU