Protected by Copyscape Best Ecommerce Case study - Startup Startup

Best Ecommerce Case study

amazon 1

Ecommerce business case study

I made this Best Ecommerce Case study so lets start. We often see in news that every Ecommerce is in loss,

Sometimes Snapdeal faced a loss of 500 Cr or Flipkart faced a loss of 1000 Cr

amazon 1

What is the problem in their business model due to which every ecommerce is in loss?

Hello friends,my name is Gauhar Ali, we are going to discuss about Ecommerce

Majority of ecommerce nowadays is in loss

But why is it so?

Directly they are buying from companies at good margins

But still company is paying from its pocket when it gets delivered to end user

What is this happening?

To understand for eg,there is juicer grinder worth 1000 but amazon buys it worth 800 from the company

And we think company margin of 200 is saved

But there are many additional expenses involved

Major cost is Logistics Cost

If any product is coming at your place,so the logistics cost which is being spent by the company is 20-25%

If the product is light,it will come by air and if it is heavy it will come by land

Let’s take a real life example that you want to send a product from delhi to chandigarh

How much logistics cost you need to spend to send it to chandigarh?

If you are sending by surface or land,you have to give Rs.110 flat

Additonally,there will be 20% fuel cost


If its COD,then Rs.25 or 1% of amount have to be given to them

Then the packing cost involves

Multiply that running feet by 19.5,that will be the packaging cost. Total will be the Logistics cost

They have also given additional service tax for that.

They are also paying salex tax and tax,and if they paying through Payment gateway rather than COD,then cost is involved for payment gateway as well

We have not added employment salary,operation,building,website running and advt cost yet

So why ecommerce are still working on loss making propagation?

Every company needs it First Mover advantage

For eg,paytm. Everyone had in their mind that PayTM is the first payment gateway

So everyone approached PayTM after demonetization

Ecommerce company wants the same

So whenever there will be ecommerce need,first demand will be of Flipkart,Amazon,Snapdeal,Jabong,myntra

amazon del

All these brands will be in your mind

Then they will earn money from you

Majority of companies are running ecommerce to take money from investors

In reality ecommerce businesses are facing huge losses in INDIA.

Hopefully in future they get profitable and list in stock market in india

If you appreciate my work then please share it .

Content Protection by
You cannot copy content of this page
error: You Can\'t copy this article