BUSINESS MODEL FOR FLIPKART: Flipkart is an e-commerce portal, B2C shopping Portal, for Indian customers or at-the-moment, customers ordering the goods for delivering in India. The model here is : Portal > List Sellers who sell the desired portfolio products > Get customers browsing through the products > Create appealing discounts > Customer Shops for the desired products > Seller / Flipkart ships the product to customer > Product Accepted and Not returned back > Seller gets his agreed price of the product minus the commission charged by FlipKart for doing everything they do. Thus the core bread and butter of the Model is “X% commission on the total sale value given to the seller” The sale can happen via multiple channels as listed below …show more content…
It may range anywhere between 5% to 20% of the sale value (excluding taxes and discounts). The following is an e.g. of how the billing of FlipKart sale will be recorded in FlipKart’s financial books: Customer A, B & C Purchase 5 Products from FlipKart in a month and these products are a Book, a Stereo, A Fridge, A Mobile Phone and a Bed sheet from 3 Sellers. Invoice for the Month for FlipKart looks like below table . Business Model of FlipKart (Company as a Whole) Now as I mentioned earlier in the above section that FlipKart is not an Indian Regulated company any more, it is registered in Singapore and has many more subsidiaries to carry out related businesses to diversify and derisk its revenue model from those of the competitors. Following are the various revenue lines that FlipKart has for additional sources (allied to its core business) of revenue: 1. Web Portal (E-Commerce : Highlighted Above so not getting into the depth of this) 2. Web Portal Listing Fee and Convenience Fee (Sellers charged listing fee for selling on FlipKart and Customers charged Convenience Fee for faster …show more content…
PhonePe – Mobile Wallet on the Lines of PayTM and others. [Launched as of August 2016]. Business Model of FlipKart from Listing and Convenience Fee FlipKart might start charging (or may already be charging) a listing fee for the sellers to be able to sell on its platform, which eventually adds up to the total revenue of the company. Also the convenience fee billed to customers for gift wrapping, faster delivery add up to the total revenue of the web portal. Business Model of FlipKart Payment Gateway – PayZippy PayZippy is a payment gateway just like any other of the 1000’s of payment gateways out there and provides service to FlipKart and the likes of other E-Commerce players out there. The business model is pretty simple they charge a transaction processing amount to every transaction that goes through their payment gateway infrastructure. How payment gateways make money is something that you need to read in detail. I will give an overview of the various modes of payments here. Basically transaction processing charges differ from mode to mode like it is lowest in Debit Card and Net Banking (around 0.75% to 1.00%) of the transaction amount. Credit Card (1.5% to 2.25%), American Express Cards (3.00% to 3.50%) – So depending on the mode that the user selected to make the payment the e-commerce company will get an amount after retaining the transaction processing charges e.g. I buy a Book for 1000 INR and pay using AMEX Cards via PayZippy the selling e-commerce portal from where
However, making the purchase before year-end would be unethical and have a significant impact on the Income Statement. The purchase would increase cost of goods sold (COGS) by $200,000, sales revenue on the other hand, would be unaffected. The increase would lower the gross profit. A lower gross profit decreases the amount of income tax, but also lowers net income by $160,000. The impact on the income would result in a lower Net income and a higher cost of goods sold. The retained earnings on the Balance Sheet would decrease. To compare the outcome of each decision (See Summary & Journal). (Accounting Coach COGS and I/S
A Couple of Squares is a company specializing in producing and selling gourmet cookies to retail stores. Recently, A Couple of Squares has been brainstorming the idea of starting an e-commerce website so they can sell there gourmet cookies directly to consumers instead of selling to retailers. There are many considerations that need to be evaluated when deciding to launch an e-commerce website. First, the risks of launching an e-commerce site and the steps to mitigate the risks must be evaluated. Along with the risks of launching an e-commerce site, the benefits of launching an e-commerce site also need to be taken into account. In order to seek profitability a break even analysis must be performed. Once profitability is feasible, A Couple
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed-price contracts with little to no stipulations. For this project, Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project.
It is determined by the cost of production, the segment aimed, the capability of the market to recompense, supply and demand, and all other direct and indirect factors. There are more than a few kinds of pricing strategies, each corresponded with the total business plan (Yoo, Donthu et al. 2000). Pricing could also be used to discriminate different brands of product, and to enhance the appearance of a particular company (Kotler and Levy 1969). In this case, Amazon is quite competitive in term of its prices, and has strategic approaches of staying up front of its market competitors (Chevalier and Goolsbee 2003). For instance, when a person is considering to purchase a particular book, Amazon has options whether that individual would prefer a new copy or a used one, and it also presents the prices for these books together with their conditions. A further proposal is to pay to create a premium account, where the items purchased would be delivered quicker. Amazon’s competitive prices also results from the minimum number yet well skilled employees, thus the customers are actually benefitting from the reduced cost of overheads, hence, the low prices of Amazon
The purpose of the website is to make the company money and ensure that a large profit is made. It does this by selling items such as clothing, footwear and accessories. JD sports is not just an online business, it also operates as a high street shop as well. The website runs alongside the high-street shops to help makes sales. The reason it has a website is because this offers a worldwide option and means that anyone over the world can buy products form JD increasing the profit massively. Having a website also means that there are less overheads and staff then in one of the high street shops. The website has more than one purpose. Another purpose is to ensure that the customer keeps on using the website. This is called ‘retaining’ the customer. The website does meet these objectives successfully as the company is still running and is a very wealthy company so it is obviously making a good profit. JD sports is a very well known company around the world any many people buy products form JD time and time again so they are very successful in retaining their customers.
Among them some customers are cost-conscious and they are affecting the environment of Zappos. These customers won’t affect Zappo’s business too much because this store has its feedback facility. If those customers have problems regarding price, quality or other issues, they gave positive as well as negative feedback to the website.The feedback shows that 99% of customers are happy with the service given by Zappos.Thus, cost-conscious customers are not affected much by the web store.
The company’s vision is” To be world’s most customer oriented company, to create a platform where individuals can visit to find, get anything they desire and purchase it
Total revenue, which is the total amount of income received from the sales of a certain quantity of goods or services. Total revenue can be calculated by multiplying the price of a product times the quantity sold. For instance, if 160 baseball caps are sold and each baseball cap was priced at $5 each, the total revenue would be (160*5) $180.
In conclusion, BillCutterz.com currently has a niche market; they are providing a unique service. Barry Gross strong negotiation skills and an informed and train workforce in an industry that has little or no competition. However in order to sustain this grow the company need to re-assess it’s strategy and business model to align it with the company’s growing demand for its service. BillCutterz.com should not lose focus of the fact that if they don’t act at in proving their company strategy then one of their competitor will capitalize on its model and take over BillCutterz.com share of the
Product differentiation – by offering different products, services, or product features, the company can charge higher prices, or appeal to different audiences. Use of IS have enabled new products and services, that increase the levels of convenience in using existing products and services. By acquiring PayPal, eBay greatly enhanced the ease with which customers can pay for their products. Google keeps an innovative approach towards search engines, by introducing Google Maps, Google Translate and others, which improves the ease of usage. Using online live chatting systems and social networks contributes to understanding of customers. It also adds value and improves customers’ stickiness to website (Booth, Roberts, and Sikes 2011)
currently making their money by selling iPhones, they are the largest selling item in the company bringing in $101,991,000,000. The second largest is the iPad bringing in
payment. PayPal is also available to people in 38 countries. This paper starts with introduction to the company and its services. The
Zappos.com is a website that started off just selling shoes but now sells items such as handbags, clothing, and housewares in addition to shoes. Their company logo includes their catchy name with an explanation point as the end in the shape of shoe print which leads consumers to believe Zappos has strong feelings about the service they provide to their consumers. Zappos believe that customer service is the number one priority and is focused on cultivating repeat customers which is why they have always provided free shipping on both orders and returns; occasionally provides upgraded shipping so customers can receive their shoes the same day that they are ordered even though this is very expensive to the company; and they only show products on their website that they actually have in stock albeit they lose 25 percent of their potential business by doing so (Walker, 2009). For a compa...
E-commerce application is a platform where there is buying and selling of products and services which are done by businesses and consumers via an electronic medium, mostly without using any paper documents. “E-Commerce applications support transactions between businesses and their customers. They provide 24/7 customer support, allowing customers to order products, check orders and track shipping, review previous orders, reorder products, and manage their accounts.” (Auburn SeeWolf llc , 2009-2012)
The revenue stream generation for this industry mainly comes from the sale of food in the restaurants. Part of small revenue stream for KFC is their delivery services (KFC Singapore, n.d.).