Flipkart

From Wikipedia, the free encyclopedia

Flipkart

Type

23

Foundation date

2007

Area served

India

Founder(s)

Sachin Bansal Binny Bansal Sachin Bansal & Manish Verma Internet, Online retailing Flipkart.com, Electronic Wallet, Mime360.com, Chakpak.com

Key people Industry Products

Services Revenue Employees Slogan(s) Website Alexa rank Type of site Advertising Registration Available in

Electronic commerce 1180 crore (US$190 million) (FY 2012-13)[1] 4578 The Online Megastore Flipkart.com 154; 10: India (February 2014)[2] Online shopping yes Optional (required for buying Digital Content) English

Launched Current status

2007; 7 years ago Online

Flipkart is an Indian e-commerce company founded in 2007, by Sachin and Binny Bansal[3] and headquartered in Bangalore, Karnataka. It is considered as the e-commerce company that made online shopping popular in India.[4][5] According to Alexa Internet, Flipkart's website is one of the top 10 Indian websites.[2] Flipkart has launched its own product range under the name "DigiFlip", offering camera bags, pen-drives, headphones, computer accessories, etc.[6][7]
Contents
[hide]

1 History

1.1 Acquisitions

2 Finance 3 Flyte Digital Music Store 4 Awards & Recognition 5 See also 6 References 7 External links

History[edit]
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi. They had been working forAmazon.com previously. The business was formally incorporated as a company in October 2008 as Flipkart Online Services Pvt. Ltd.[8] During its initial years, Flipkart focused only on books, and soon as it expanded, it started offering other products like electronic goods, Air Conditioners, Air coolers, stationery supplies and life style products and e-books. The first product sold by them was the book, Leaving Microsoft To Change The World,bought by VVK.Chandra from Andhra Pradesh.[9][10][11] Flipkart now employs more than 4,500 people,[12] and is ranked among the top 10 Indian websites.[2] Flipkart's offering of products on Cash on Delivery is considered to be one of the main reasons behind its success.[4][5] Flipkart also allows other payment methods- Credit or Debit card transactions, net banking, e-gift voucher and Card Swipe on Delivery.[13]

Acquisitions[edit]

2010: WeRead, a social book discovery tool.[14] 2011: Mime360, a digital content platform company.[15] 2011: Chakpak.com, a Bollywood news site that offers updates, news, photos and videos. Flipkart acquired the rights to Chakpaks digital catalogue which includes 40,000 filmographies, 10,000 movies

and close to 50,000 ratings. Flipkart has categorically said that it will not be involved with the original site and will not use the brand name.[16]

2012: Letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought the company for an estimated US$25 million.[17][18] Letsbuy.com was closed down and all traffic to Letsbuy have been diverted to Flipkart.[19]

Finance[edit]
Initially, the founders had spent 4 lakh to set up the business.[20][21] Flipkart has later raised funding from venture capital funds Accel India (US$1 million in 2009)[22][23][24] and Tiger Global(US$10 million in 2010 and US$20 million in June 2011).[25][26][27] On 24 August 2012, Flipkart announced the completion of its 4th round of $150 million funding from MIH (part of Naspers Group) and ICONIQ Capital.[28] The company announced, on 10 July 2013, that it has raised an additional $200 million from existing investors including Tiger Global, Naspers, Accel Partners and Iconiq Capital.[29] Flipkart's reported sales were 40 million in FY 20082009,[30][31] 200 million in FY 20092010[32] and 750 million for FY 20102011.[33] In FY 20112012, Flipkart is set to cross the 5 billion (US$100 million) mark as Internet usage in the country increases and people get accustomed to making purchases online.[34] Flipkart projects its sales to reach 10 billion by year 2014. On average, Flipkart sells nearly 20 products per minute[35] and is aiming at generating a revenue of 50 billion (US$0.81 billion) by 2015.[36] On November 2012, Flipkart became one of the companies being probed for alleged violations of FDI regulations of the Foreign Exchange Management Act, 1999[37][38] In July 2013, Flipkart raised USD 160 million from private equity investors, taking the total to USD 360 million in its recent fund raising drive to build and strengthen technology and bolster its supply chain.
[39]

In October 2013, it was reported that Flipkart had raised an additional $160 million from new investors Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina SA andVulcan Capital with participation from existing investor Tiger Global. With this, the company has raised a total $360 million in its fifth round of funding, the largest investment raised by an Internet company in India, emulating InMobis $200 million investment from Softbank in September 2011. The company valued at approx. 9900 crore (US$1.6 billion) (Nov 2013), and plans to use the capital raised to improve its technology and supply chain capabilities, enhance its end user experience and for hiring.[40][41]

Flyte Digital Music Store[edit]

In October and November 2011, Flipkart acquired the websites Mime360.com[15] and Chakpak.com.[16] Later, in February 2012, the company revealed its new Flyte Digital Music Store.[42] Flyte, a legal music download service in the vein of iTunes and Amazon.com, offered DRM-free MP3 downloads. But it was shut down on 17 June 2013 as paid song downloads did not get popular in India due to the advent of free music streaming sites.[43][44]

Awards & Recognition[edit]

Co-Founder of Flipkart Sachin Bansal, got Entrepreneur of the Year Award 2012-2013 from Economic Times, leading Indian Economic Daily [45]

Flipkart.com was awarded Young Turk of the Year at CNBC TV 18s India Business Leader Awards 2012 (IBLA).[46]

Flipkart.com- got Nominated for IndiaMART Leaders of Tomorrow Awards 2011.[47] Flipkart.com, secured second position in the List of Cheapest Mobile Store 2013, compiled by Indian ecommerce observer Zoutons.com.[48]

E-commerce in India
From Wikipedia, the free encyclopedia
(Redirected from Ecommerce in India)

India has an internet user base of about 137 million as of June 2012.[1][2] The penetration of e-commerce is low compared to markets like the United States and the United Kingdom but is growing[3] at a much faster rate with a large number of new entrants.[4] The industry consensus is that growth is at an inflection point.[5] Unique to India (and potentially to other developing countries), cash on delivery is a preferred payment method. India has a vibrant cash economy as a result of which 80% of Indian e-commerce tends to be Cash on Delivery. Similarly, direct imports constitute a large component of online sales. Demand for international consumer products (including long-tail items) is growing much faster than in-country supply from authorised distributors and e-commerce offerings.
Contents
[hide]

1 Market size and growth 2 Infrastructure 3 Funding 4 See also 5 References

Market size and growth[edit]

India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011 and to $14 billion in 2012.[1] About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online Retailing comprises about 12.5% ($300 Million[6] as of 2009). India has close to 10 million online shoppers and is growing at an estimated 30%[7] CAGR vis--vis a global growth rate of 810%. Electronics and Apparel are the biggest categories in terms of sales. Key drivers in Indian e-commerce are:

Increasing broadband Internet (growing at 20%[8] MoM) and 3G penetration.[9]

Rising standards of living and a burgeoning, upwardly mobile middle class with high disposable incomes

Availability of much wider product range (including long tail and Direct Imports) compared to what is available at brick and mortar retailers [10]

Busy lifestyles, urban traffic congestion and lack of time for offline shopping Lower 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[11]

Evolution of the online marketplace model with sites like eBay,Flipkart, Snapdeal, Infibeam,qnetindia.in and Tradus. The evolution of ecommerce has come a full circle with marketplace models taking center stage again.

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 7%.[12] 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 201216.[13] As per "India Goes Digital",[14] 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 ($11.8 billion) in 2015. Overall e-commerce market is expected to reach Rs 1,07,800 crores (US$ 24 billion) by the year 2015 with both online travel and e-tailing contributing equally. Another big segment in e-commerce is mobile/DTH recharge with nearly 1 million transactions daily by operator websites.[citation needed]

Infrastructure[edit]
Many open source ecommerce software and platforms are growing in prominence including Magento. There are many hosting companies working in India but most[citation needed] of them are not suitable for eCommerce hosting purpose, because they are providing much less secure and threat protected shared hosting. eCommerce demand highly secure, stable and protected hosting.[citation needed] Trends are changing with some of eCommerce companies starting to offer SaaS for hosting webstores with minimal one time costs. There could be various methods of ecommerce marketing such as blog, forums, search engines and some online advertising sites like Google adwords and Adroll. India got its own version of the so-called Cyber Monday known as Great Online Shopping Festival in December 2012, when Google India partnered with e-commerce companies

including Flipkart,HomeShop18, Snapdeal, Indiatimes shopping and Makemytrip. "Cyber Monday" is a term coined in the USA for the Monday coming after Black Friday, which is the Friday after Thanksgiving Day.[15] In early June 2013, Amazon.com launched their Amazon India marketplace without any marketing campaigns.

Funding[edit]
As of 2012, most of the e-commerce companies are yet to start making money. However, due to their growth prospects, many venture capital firms such as Accel Partners have invested considerably. In one of the biggest fund raising, Flipkart.com, in August 2012, raised about 8.22 billion (US$130 million). Entertainment ticketing website BookMyShow.com raised 1 billion(US$16 million) investment by Accel Partners.[1] On July 10, Flipkart announced it had received $200 million from existing investors Tiger Global, Naspers, Accel Partners, and ICONIQ Capital. New investors making up the additional $160 million include Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital, and more from Tiger Global. Snapdeal - USD 50 million in April 13.

Direct imports
From Wikipedia, the free encyclopedia

Direct Imports are products imported directly into a country and not through the manufacturer's authorized agent/distributor. Since there is no factory-authorized middleman involved in the import of these products, the added costs are lower and the customer pays less. In addition, many items that are in short supply or are not imported at all by the manufacturer's authorized distributors can be procured as direct imports. There is no difference in the actual products. In most cases, they are manufactured in the same place by the same people and with the same materials. Occasionally, manufacturers will give them a different name. It is perfectly legal to directly import and sell such products. The only caveat is that since they are not procured from a local factory-authorized middleman, the manufacturer's warranty may not be applicable. This type of business is fairly recent and follows the trends of the global economy. In rapidly growing developing economies like India where the demand for international consumer products is growing much faster than in-country supply from authorized distributors, direct imports become the only way for consumers to procure a large set of products (especially long tail). In many cases, even if a particular product is available from an authorized middle-man, a direct import may cost much less since incountry middlemen use their exclusive territorial rights to price products much higher than in the country of origin. Perversely, in countries where such product and price arbitrage is the most obvious, the import process is typically very onerous and not easily navigated by the average consumer leaving the field open to predatory pricing from in-country middlemen.

Contents
[hide]

1 Disintermediation by Technology 2 See also 3 References 4 External links

Disintermediation by Technology[edit]
To help bridge this gap, a new breed of E-commerce companies acting as direct import facilitators have developed sophisticated E-commerce and Supply Chain technology to create a cross-border supply chain that allows consumers to shop online for international products and have them delivered duty paid to their doorstep. The entire procurement, international shipping and importprocess is handled turnkey by the ecommerce providers and the consumer transaction is a simple online purchase. This is a significant example of how Internet technology is a powerful force for disintermediation in commerce. To illustrate, a typical B2C supply chain involving imports is composed of five entities (in order): 1. Foreign Supplier/Manufacturer 2. In-country Importer 3. In-country Distributor 4. In-country Retailer (online or offline) 5. In-country Buyer With the advent of online direct imports that leverage the Internet, the supply chain is reduced to three entities: 1. Foreign Supplier/Manufacturer 2. Online Direct Import Facilitator 3. In-country Buyer As always, the removal of intermediaries in a supply chain i.e. "cutting out the middleman" results in high market transparency and efficient pricing.

Incoterms
From Wikipedia, the free encyclopedia
(Redirected from Incoterm)

The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in International commercial transactions or procurement processes. A series of three-letter trade terms

related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries. [1] As such they are regularly incorporated into sales contracts worldwide. First published in 1936, the Incoterms rules have been periodically updated, with the eighth version Incoterms 2010having been published on January 1, 2011. "Incoterms" is a registeredtrademark of the ICC.

National Incoterms chambers.

Contents
[hide]

1 Incoterms 2010

o o o o o o o

1.1 EXW Ex Works (named place of delivery) 1.2 CPT Carriage Paid To (named place of destination) 1.3 CIP Carriage and Insurance Paid to (named place of destination) 1.4 DAT Delivered at Terminal (named terminal at port or place of destination) 1.5 DAP Delivered at Place (named place of destination) 1.6 DDP Delivered Duty Paid (named place of destination) 1.7 Sea and inland waterway transport

1.7.1 FAS Free Alongside Ship (named port of shipment) 1.7.2 FOB Free on Board (named port of shipment) 1.7.3 CFR Cost and Freight (named port of destination) 1.7.4 CIF Cost, Insurance and Freight (named port of destination)

2 The seller responsibilities based on Incoterms 2010 3 Previous terms from Incoterms 2000 eliminated from Incoterms 2010

o o

3.1 DAF Delivered at Frontier (named place of delivery) 3.2 DES Delivered Ex Ship (named port of delivery)

o o

3.3 DEQ Delivered Ex Quay (named port of delivery) 3.4 DDU Delivered Duty Unpaid (named place of destination)

4 See also 5 References 6 External links

Incoterms 2010[edit]
The eighth published set of pre-defined terms, Incoterms 2010 defines 11 rules, reducing the 13 used in Incoterms 2000 by introducing two new rules ("Delivered at Terminal", DAT; "Delivered at Place", DAP) that replace four rules of the prior version ("Delivered at Frontier", DAF; "Delivered Ex Ship", [2] DES; "Delivered Ex Quay", DEQ; "Delivered Duty Unpaid", DDU). In the prior version, the rules were divided into four categories, but the 11 pre-defined terms of Incoterms 2010 are subdivided into two categories based only on method of delivery. The larger group of seven rules applies regardless of the method of transport, with the smaller group of four being applicable only to sales that solely involve transportation over water.

EXW Ex Works (named place of delivery)[edit]

The Seller makes the goods available at his/her premises. The buyer is responsible for uploading. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a buyer incurs the risks for bringing the goods to their final destination. The seller does not load the goods on collecting vehicles and does not clear them for export. If the seller does load the goods, he does so at buyer's risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale. The buyer arranges the pickup of the freight from the supplier's designated ship site, owns the intransit freight, and is responsible for clearing the goods through Customs. The supplier is responsible for completing all the export documentation. Cost of goods sold transfers from the seller to the buyer.

CPT Carriage Paid To (named place of destination)[edit]

The seller pays for carriage. Risk transfers to buyer upon handing goods over to the first carrier at place of shipment in the country of Export. Buyer fully responsible for arranging carrier payment of freight for same Export clearance in Exporting country and Import clearance in Importing country, also responsible for buying Insurance. This term is used for all kind of shipments.

CIP Carriage and Insurance Paid to (named place of destination)[edit]

The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier. CIP is used for Air Mode & CIF is used for Sea Mode.

DAT Delivered at Terminal (named terminal at port or place of destination)[edit]

This term means that the seller covers all the costs of transport (export fees, carriage, insurance, and destination port charges) and assumes all risk until after the goods are unloaded at the terminal.[3]

Terminal includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal.[4] The buyer covers the cost of transporting the goods from the terminal or port to final destination and pays the import duty/taxes/customs costs.

DAP Delivered at Place (named place of destination)[edit]

Can be used for any transport mode, or where there is more than one transport mode. The seller is responsible for arranging carriage and for delivering the goods, ready for unloading from the arriving conveyance, at the named place. Duties are not paid under this term (An important difference from Delivered At Terminal DAT, where the seller is responsible for unloading.)

DDP Delivered Duty Paid (named place of destination)[edit]

Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. The seller is not responsible for unloading. This term is often used in place of the non-Incoterm "Free In Store (FIS)". This term places the maximum obligations on the seller and minimum obligations on the buyer.

Sea and inland waterway transport[edit]

To determine if a location qualifies for these four rules, please refer to 'United Nations Code for Trade and Transport Locations (UN/LOCODE)'. [Link below] The four rules defined by Incoterms 2010 for international trade where transportation is entirely conducted by water are:

FAS Free Alongside Ship (named port of shipment)[edit]

The seller must place the goods alongside the ship.

FOB Free on Board (named port of shipment)[edit]

The buyer must advance government tax in the country of origin as commitment to load the goods on board a vessel designated by the buyer. Cost and risk are divided when the goods are actually on board of the vessel. The buyer must clear the goods for export because he did not pay for the goods in the country of origin. The term is applicable for maritime and inland waterway transport only but NOT for multimodal sea transport in containers (see Incoterms 2010, ICC publication 715). The seller must instruct the buyer the details of the vessel and the port where the goods are to be loaded, and there is no reference to, or provision for, the use of a carrier or forwarder. This term has been greatly misused over the last three decades ever since Incoterms 1980explained that FCA should be used for container shipments. It means the seller pays for transportation of goods to the port of shipment, loading cost. The buyer pays cost of marine freight transportation, insurance, unloading and transportation cost from the arrival port to destination. The passing of risk occurs when the goods are in buyer account. the buyer arranges for the vessel and the shipper has to load the goods and the named vessel at the named port of shipment with the dates stipulated in the contract of sale as informed by the buyer .

CFR Cost and Freight (named port of destination)[edit]

Seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the vessel. Insurance for the goods isNOT included. This term is formerly known as CNF (C&F, or C+F).

CIF Cost, Insurance and Freight (named port of destination)[edit]

Exactly the same as CFR except that the seller must in addition procure and pay for the insurance. Maritime transport only.

The seller responsibilities based on Incoterms 2010[edit]

unloa ding of the vehic le in the expo rt port trans port to port vehi cle in impo rt port

Load ing on Tran sport vehic le

expor t declar ation

trans port to the expo rt port

loa din g fee s in exp ort port

trans port to the deliv ery addr ess

cus tom fee s

ta x fe es

insur ance

EX W

No

No

No

No

No

No

No

No

No

No

N N o o

FC A1

Yes

Yes

No

No

No

No

No

No

No

No

N N o o

FAS

Yes

Yes

Yes

Yes

No

No

No

No

No

No

N N o o

FO B

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

N N o o

CF R

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

N N o o

CIF

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

Y N e o s

DA T

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

N N o o

DA P

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

N N o o

Load ing on Tran sport vehic le

expor t declar ation

trans port to the expo rt port

unloa ding of the vehic le in the expo rt port

loa din g fee s in exp ort port

trans port to port vehi cle in impo rt port

trans port to the deliv ery addr ess

cus tom fee s

ta x fe es

insur ance

CPT

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

N N o o

CIP

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Y N e o s

DD P

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Y N e o s

Previous terms from Incoterms 2000 eliminated from Incoterms 2010[edit]

DAF Delivered at Frontier (named place of delivery)[edit]
This term can be used when the goods are transported by rail and road. The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier.

DES Delivered Ex Ship (named port of delivery)[edit]

Where goods are delivered ex ship, the passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer. The seller pays the same freight and insurance costs as he would under a CIF arrangement. Unlike CFR and CIF terms, the seller has agreed to bear not just cost, but also Risk and Title up to the arrival of the vessel at the named port. Costs for unloading the goods and any duties, taxes, etc. are for the Buyer. A commonly used term in shipping bulk commodities, such as coal, grain, dry chemicals; and where the seller either owns or has chartered, their own vessel.

DEQ Delivered Ex Quay (named port of delivery)[edit]

This is similar to DES, but the passing of risk does not occur until the goods have been unloaded at the port of discharge.

DDU Delivered Duty Unpaid (named place of destination)[edit]

This term means that the seller delivers the goods to the buyer to the named place of destination in the contract of sale. A transaction in international trade where the seller is responsible for making a safe delivery of goods to a named destination, paying all transportation expenses but not the duty. The seller bears the risks and costs associated with supplying the goods to the delivery location, where the buyer becomes responsible for paying the duty and other customs clearing expenses.

See also[edit]