Case Study ON E-Commerce

[Link]
Introduction
[Link] is an online platform that allows customer to buy the branded products. On
[Link] every product belongs to popular brand. They don’t offer any local
product here. In short span of time [Link] has grown a lot.

There are 250,000 products with more than 100 plus product categories, and every day 75,000 people
visit its website. Every month 500 new sellers are given education through their university. It provides
job opportunities to more than 5,000 jobless people by educating them in their own university.
Recently it introduced an online payment system partnering with major banks of Nepal. (Malla, 2018.)
Daraz Nepal has been highly successful in the field of online shopping. It highly successful to hold
people’s attention and try to provide them a better quality of shopping experience. In today’s busy life
no longer people reached one store to another store for buying products at a suitable price which they
can afford or to get the best deal. It wastes time for people and energy loss. Therefore, e-commerce
gives people an easy lifestyle. It gives an opportunity to all customers to gain knowledge in an online
shopping experience which is done by just one
click in a second. Through online shopping, App’s in a second customer order their
favorite products from their favorite stores without traveling to shop destinations or
without wasting time.
Daraz Nepal hosts a wide assortment of consumer electronics, fashion and beauty products, alongside a
rapidly growing miscellany of general merchandise. Daraz Nepal Signatures include excellent value-for-
money, large assortment of original products, fast delivery and easy returns. Daraz Nepal offers not just
a retail solution of optimal convenience, it is effecting disruptive change in the digitization of the region.
Daraz always focuses on what customers want and what all customers will satisfy. Daraz also provides
different brands and price tags to all customers, which customer can easily pick their product in terms of
what brand they are looking for or prefer 3 from the online portal. For customers, they deliver their
products to all customer locations within their target area and place. After connecting with Alibaba
group holding limited, Daraz changes their price and their priorities too. They start to take the feedback
and comments from the customers which creates their social site more interactive and easier for the
customers to find out the things that they want from the website by studying the comments and
reviews.
Daraz takes different steps on how they can improve their brands, online service, etc. A
customer's purchasing conduct is affected by social, individual, and psychological factors.
Buyer conduct is a piece of human conduct and by studying past purchasing conduct,
advertisers can appraise how shoppers may be-have later when settling on buying choices.
(Kotler & Armstrong, 2010). In addition, it aims to provides ecofriendly technology through
e-commerce and boost trade and enhance internal and external trade.
History of Daraz
Daraz started as a Pakistani online fashion retailer in 2012 owned by German company Rocket Internet.
It changed to a general market strategy and changed its business model in 2015 also started operations
in Bangladesh and Myanmar.

Kaymu was launched in Nepal in May 2014 and was supported by Asia Pacific Internet Group, a leading
online platform in Asia. Since its launch, Kaymu has quickly become Nepal's fastest growing online
marketplace with over 2,500 sellers on board and over 200,000 monthly website visits. With lunch in
Nepal, it completely changed the shopping experience for most people.

In July 2016, Daraz Group took Kaymu and then started running in Sri Lanka and Nepal. Daraz has gained
maximum customers of Nepal in a short period of time and remains at the top.

In May 2018, Chinese e-commerce giant Alibaba Group acquired the entire equity capital of Daraz, a
Pakistani e-commerce company that operates online marketplaces in a number of South Asian
countries, including Nepal. Its parent company Rocket Internet issued a press release without disclosing
the amount of the buyout.

1.4 Business models

Daraz as works as a b2c vendor. They are not manufacturer of the product, they acquire
seller who wants to get sell by their website, daraz puts other companies item in their sites
and facilitates selling. daraz main aim to acquire the seller in terms of ongoing demands and
trends. Daraz terms and condition need to be followed by the seller and the must have an
agreement. Here daraz is the second party where seller is the first party. After that,
6 agreement seller allows showing their product on daraz websites and daraz will allow and
promote the product of the seller.
A business model is a framework for finding a systematic way to unlock long-term
value for an organization while delivering value to customers and capturing value through
monetization strategies. A business model is a holistic framework to understand, design, and
test your business assumptions in the marketplace
ϖ Business-to-consumer (B2C)
ϖ Business-to-business (B2B)
ϖ Consumer-to-consumer (C2C)
ϖ Consumer-to-business (C2B)
1.41 B2C(Business to Consumers)
Electronic commerce are the business between the company and consumers. A business
selling the goods to the public typically through a catalog utilizing shopping cart software.
It helps to reduce the transaction costs and helps the consumers to get the most relevant
price for the product or goods. One(Seller) to many(customer together). However B2C
business models can sell other brands products as well (Example: A sports store selling
Adidas and Nike shoes r) This is the most common type of eCommerce business model.
Here businesses sell their products direct to the end consumers. Aliexpress, Daraz, sastodeal
etc are examples of B2C eCommerce platforms.
Figure 1: Business to consumers
1.42 B2B(Business to Business)
It is the most common business model associated with the buying and selling product or
services between or among the businesses through the internet. A website following the
B2B business model sells its products to an intermediate buyer who then sells the products
to the final customer. . An example of B2B web-platform would be a website selling
vehicle's components that some auto manufacturer will purchase in order to produce his
own product. For instance, among the most well-known B2B websites is the Alibaba B2B
Marketplace.

Objective of Daraz

There are certain goals that need to be followed in order to achieve the mission and vision. Daraz Nepal
is also targeting many goals to achieve its full potential and these goals are:

• Work closely with sellers to ensure a great experience for buyers while growing business.

• Daraz will focus on capturing the market by creating loyal customers by providing the largest selection
of different items at the lowest price.

• Efficient and effective order fulfillment will improve the customer experience.

• Various support services will be designed to help resellers grow with Daraz.

• Effective recruitment, training, retention and coaching will be conducted to achieve Daraz's mission
and create valuable resources for the company.

• Building an effective company culture where employees are given the opportunity to grow and
contribute to the company.

• Together with the company, Daraz help to growth the e-commerce industry in Nepal by setting the
trend in the market.
Payment Method

Bank Card Transactions

Purchasing products on Daraz with your bank card is one of the quickest and easiest ways to do so. All
you need to do is enable ecommerce on your debit or credit card, and you’ll be able to make secure
online purchases. Using your card will not only keep you safe and reduce possibilities of fraud, but it will
also help you manage and track your expenses so you can always stay on top of your finances.

Credit Card Transactions

Credit cards can be useful tools for earning rewards, handling emergencies, and taking care of
unplanned expenses when used [Link] of the most significant benefits of a credit card is the ease
with which you can buy whatever you want and pay later if you stay within your credit limit. Another
huge advantage is the ability to convert the complete amount of your purchases into low-cost EMIs,
allowing you to repay it effortlessly over time. Additionally, using a credit card makes it easier to avoid
fraud and losses.

Digital Wallets

Have no worry if you choose to use digital wallets like eSewa or IMEPay. To begin making payments
using these channels, simply link your eSewa/IMEPay account to your Daraz account. After you’ve linked
your accounts, you’ll be able to complete transactions in no time with just an OTP.

Cash on Delivery

This one is very self-explanatory. You can always use this option if you prefer cash transactions to digital
payment options. Simply hand the payment amount to your delivery hero once your Daraz purchase is
brought to your chosen address, and you’re done!

Sellings

Pakistan

Daraz is primarily based in Pakistan and contributes the majority of its GMV.

By late 2024, Daraz remained Pakistan’s leading e-commerce platform, serving over 9.4 million active
users.

Bangladesh
Bangladesh’s e-commerce market reached approximately US $6.5 billion in 2022, with Daraz being one
of the top platforms alongside others like AjkerDeal, Chaldal, etc.

Sri Lanka

 Sri Lanka’s total e-commerce market was estimated at US $40 million (growing toward
US $400 million by 2022)
Conclusion

[Link] is among Nepal's top internet retailers. This website is implementing new technologies and
improving its user interface. Additionally, it has been enhancing the website with new goods and
services while taking accessibility, affordability, and customer preferences into consideration. [Link]
has been providing simple product selection, pricing comparison, ordering, and the quickest possible
delivery of goods and services. [Link] provides direct platforms for users in the roles of buyers and
sellers because it does not retain any inventory of its own. It offers a large selection of goods from
different companies, including books, technological devices and appliances for the house, stylish
clothing and accessories for both men and women, and much more. It is therefore Nepal's greatest
online retailer

ALIBABA
Introduction

Alibaba is a powerhouse conglomerate that has reshaped the global landscape of e-commerce,
technology, and finance. Founded in 1999 by Jack Ma, it has evolved from a modest online marketplace
into a multifaceted empire that dominates various sectors.

Alibaba is a digital ecosystem comprising several key platforms. One of its flagship platforms,
[Link], stands as the world's largest wholesale marketplace, connecting businesses directly with
manufacturers and distributors. This platform alone has facilitated billions in trade volume, cementing
Alibaba's position as an indispensable hub for global commerce.

History

 1999: Alibaba was founded in Hangzhou, China, by Jack Ma and 17 co-founders.

 Early Days: It began as a B2B marketplace to connect Chinese manufacturers with international
buyers.

 2003: Launched Taobao, a C2C marketplace to compete with eBay in China.

 2004: Introduced Alipay, an escrow-based payment system.

 2008: Established Tmall, a B2C platform for branded products.

 2014: Alibaba went public with a record-breaking IPO on the New York Stock Exchange, raising
$25 billion.

 Present: Diversified into cloud computing, digital entertainment, logistics, and financial services.
Business Model

[Link]

The Group arm specializes in business to business (B2B), connecting buyers and suppliers around the
world, in a quicker and easier way. Usually, this branch of the business is destined for great corporations
that deal with massive trading in quantity and value.

[Link]

The brightest stone on Alibaba Group’s crown, Taobao is their largest website, focused on consumer to
consumer (C2C), providing small entrepreneurs with a clear road to offer their products to an avid web
of consumers that reaches the vast corners of the world.

 Business to business services (B2B)

 Consumer to consumer services (C2C)

 Business to consumer services (B2C)

Revenue Model of Alibaba

When it comes to making money using diverse revenue channels, Alibaba stands out as a unique player
with a varied revenue model that extends far beyond just selling products in bulk on its eCommerce
platform. This group has built an ecosystem of interconnected businesses that generate revenue
through multiple channels.

1. Revenue from eCommerce Platforms (Retail and Wholesale)

Alibaba’s eCommerce platforms are the primary sources of its revenue generation. The core revenue
sources include Taobao and Tmall. These domestic eCommerce platforms generated 41% of the
company’s revenue in the fiscal year 2024 and the international sales accounted for about 9% of
Alibaba’s total revenue.

Alibaba’s eCommerce platforms generated revenue through multiple revenue models such as
commission on sales, membership fees, commission on each transaction, value-added services and
more. In addition, advertising is also one of the main revenue sources on eCommerce platforms. It helps
the platform generate revenue through featured listings, sponsored Products and targeted marketing
campaigns that allow businesses to increase their sales.

2. Revenue from Alibaba Cloud Services (Aliyun)

Cloud Computing Services have emerged as a significant revenue stream for the company. Alibaba Cloud
provides cloud computing, storage, platform, AI solutions, software, and other services to businesses of
all sizes. By leveraging advanced technological infrastructure, Alibaba has transformed cloud services
into a lucrative business segment that complements its eCommerce operations.

The revenue model here is based on subscription services, pay-as-you-go computing resources and
enterprise solutions.

3. Revenue from Alibaba’s Digital Media and Entertainment

Alibaba’s Digital Media and Entertainment is another considerable contributor to its revenue
generation. This revenue channel helps Alibaba generate revenue through the streaming platform Youku
similar to Netflix, music streaming service Xiami and Alibaba Pictures. To expand its global presence in
the entertainment industry, the company is also investing in film production and distribution. According
to Statista, Alibaba Digital Media and Entertainment Group has recorded revenue of 21.15 billion yuan in
2024, showing growth from 18.44 billion yuan in 2023.

Alibaba Digital Media and Entertainment generate revenue from subscription fees for premium content,
advertising revenue from free content, ticket sales and production fees for Alibaba Pictures.

4. Revenue from Cainiao: A Cross-border eCommerce Logistic Services Provider

Cainiao Smart Logistics Network Limited, formerly known as China Smart Logistics Network and
popularly known as Cainiao is a Chinese logistics company that is another important revenue channel of
Alibaba Group. Being a global leader in eCommerce logistics, the company is the largest cross-border
eCommerce services provider worldwide. According to Statista, Cainiao was listed as one of the five
most valuable unicorns in China in 2023. Also generated approximately 99 billion yuan in the fiscal year
2024.

Working on a mission to ease doing business anywhere, Cainiao is famous for ensuring delivery within
24 hours in any region of China and 72 hours worldwide. The company has established a smart logistic
network through its innovative solutions and technological advancements. Cainiao works as a growth
driver for Alibaba Group by supporting their expansion with the best logistic solutions.

Cainiao generates revenue primarily through providing cross-border eCommerce logistics services by
charging fees for managing the movement of goods and ensuring a seamless delivery. In addition, the
company also earns from warehousing, transportation, delivery services and partnering with various
logistic services providers. The growing demand for international shipping is Cainiao’s key revenue
driver.

5. Revenue from Alipay: Financial Services Provider

Alipay (Ant Financial Services Group) is a third-party online payment platform that allows users to make
payments online and in person to the merchants that accept Alipay payments. It is one of the most
popular and secure payment methods in China. There is also an international version of the app for
people around the world to initiate global transactions.

However, the platform not only helps in making purchases, paying bills, and transferring money but also
allows its users to invest, buy insurance and earn interest. In addition, Alipay also lets you store digital
identification documents, order food, book tickets and more.

Alipay generates revenue via transaction fees charged on processed payments, fees on financial
products, interest from microloans, and more.

Payment Methods

Credit and debit cards

[Link] supports all the major card providers, including Visa, MasterCard, Diners Club International,
Discover, JCB, American Express, UnionPay, and Citibank. The platform supports multi-currency pay,
covering 20 major currencies, of up to US $12,000, while the transaction fee is 2.99%. The average
processing time is 1-2 hours, though often faster.

PayPal

If you want to pay with PayPal, you receive many of the same benefits: multi-currency pay for up to US
$12,000, a transaction fee of 2.99%, and an average processing time of 1-2 hours.

Apple Pay

Likewise, paying with Apple Pay is the same: multi-currency pay for up to US $12,000, a transaction fee
of 2.99%, and an average processing time of 1-2 hours.

Google Pay

Google Pay also offers multi-currency pay, but currently only up to US $12,000 per transaction. The
transaction fee of 2.99% remains the same, as does the average processing time of 1-2 hours.

Afterpay/Clearpay

Afterpay (known as Clearpay in the UK) is also available for buyers from select countries, and supports
transactions up to US $2,000. All you need to do is set up an account.

Wire/TT transfer (international)

Probably the most popular payment on [Link] is via international wire transfer, for several
reasons. The biggest is that there is no limit on multi-currency pay, plus a flat transaction fee of
approximately US $40 (though sometimes as low as US $25) – the exact figure will depend on your bank.
However, wire transfer is slower, taking around 3-7 days on average.

Wire/TT transfer (domestic)

Finally, [Link] also supports domestic wire transfers, limited to US $300,000 of your local
currency. Transactions will also be subject to a fee of around 1 unit of your local currency (check with
your bank for specifics), and payments will be processed in 1-2 days.

Future Plans

1. Reaching the Whole World

Alibaba wants to be everywhere. They plan to expand their presence in places like Southeast Asia,
Africa, Europe, and even more remote areas. They aim to make shopping easy and accessible for
everyone, no matter where they are.

2. Making Things Faster and Smarter

Alibaba is investing in robots, drones, and AI technology to speed up deliveries and improve customer
service. Imagine a future where your package gets to you faster, thanks to smart warehouses and
automated delivery systems.

3. Powering the Internet

Alibaba Cloud is like the engine for businesses running online. They’re building more data centers
worldwide, making the internet faster and more secure for companies, apps, and websites. They also
plan to support cool things like artificial intelligence, the Internet of Things (IoT), and 5G technology.

4. Building Trust Through Blockchain

Alibaba wants you to feel safe shopping online. They’re using blockchain technology to track products
from the factory to your door, so you know exactly what you’re buying. They also want to make
payments more secure and transparent.

5. Saving the Planet While Doing Business

Alibaba is going green. They’re working on reducing their carbon footprint by using renewable energy in
their cloud services and logistics. They’re also cutting down on unnecessary packaging and waste, so
shopping online can be more eco-friendly.

6. Helping Small Towns and Villages

Alibaba hasn’t forgotten about rural areas. They’re helping farmers and small businesses in remote
places sell their products online. Whether it’s fresh fruits, handmade crafts, or unique goods, they want
to connect these communities to the world.

7. Shopping That Blends Online and Offline

Imagine walking into a store, scanning items with your phone, and having them delivered to your home.
That’s Alibaba’s vision for "New Retail," where the best parts of online and in-store shopping come
together.

8. Creating Amazing Movies and Content

Through its platforms like Youku, Alibaba wants to make more movies, TV shows, and short videos.
They’re investing in creating original content that’s entertaining for both Chinese and global audiences.

9. Teaming Up with Others

Alibaba believes in partnerships. They’re planning to work with other companies, buy smaller firms, and
share technology to grow even faster.

10. Making Payments Easier Everywhere

With Alipay, they’re not stopping at just China. They’re expanding to more countries so people can
easily pay for anything, anywhere. Plus, they’re adding services like loans and insurance to help small
businesses grow.

11. Teaching and Innovating

Alibaba wants to teach small businesses how to succeed online. They’re opening research centers and
creating programs to help entrepreneurs and innovators learn and grow.

12. Exploring the Future with the Metaverse

Alibaba is stepping into the virtual world. They’re working on creating virtual stores and even enabling
digital collectibles like NFTs, making the shopping experience more futuristic and fun.

AMAZON
Introduction

Amazon is a leading global e-commerce platform that operates as an online marketplace for goods and
services. It is one of the largest and most influential e-commerce websites, known for its wide range of
products, innovative technologies, and seamless user experience.

Amazon has revolutionized the online shopping experience by setting industry standards in logistics,
technology, and customer satisfaction. Its model of integrating third-party sellers and maintaining
customer-centric policies has made it a dominant player in the global e-commerce space.

History of Amazon

The Beginning of Amazon

On July 5, 1994, Amazon was officially founded under the name “Cadabra” (as in abracadabra) by young
Princeton graduate Jeff Bezos within a garage space in his rental home in Bellevue, Washington.
However, after just a few months, Bezos switched the name to Amazon Inc because of Cadabra’s
unappealing similarity to the word “cadaver” (A&E Television Networks, 2015). Roughly a year later, the
Amazon website was officially published as an online bookseller delivering to all 50 US states and 45
countries from that same garage space.

Like many other companies in their first couple of years of production, Amazon saw losses. However,
one of the most significant signs that the company was on the path to success came in the transition of
quarter three (July 1st – September 30th) to quarter four (October 1st – December 31st) in 1996. Within
that time span, Amazon’s revenues rose from $4.2 million to $8.5 million while seeing a $100,000
decrease in losses from each quarter (Wilhelm, 2019). Although they were still seeing roughly $2.2
million in total losses during this quarter, this was a positive sign as they were able to more than double
their revenue while decreasing those losses.

After extending beyond books in 1998, the first time Amazon was able to cross into black numbers
territory and make a profit was seen in the last quarter of 2001 after a busy Christmas shopping season
(ABC News, n.d). From there, 2003 became Amazon’s first profitable year, as the company saw net
profits grow from $3 million in the last quarter of 2002 to $73 million in the last quarter of 2003
(Hansell, 2004). This led to them earning $35 million for all of 2003, which was up from losing $149
million in the previous year. Overall, Amazon’s journey from a small online bookseller to one of the
global giants today saw its ups and downs in the beginning, but their commitment to innovation led
them to be one of the most successful companies in the world today.

The Launch of Amazon Prime

One of Amazon’s most recognizable and profitable services was first introduced in February 2005
known as “Amazon Prime”. Debuting as an unlimited two-day delivery subscription at $79 a year,
Amazon Prime started with relatively limited consumer attraction due to the concept of online shopping
being somewhat new and subscription prices still being too expensive to some. However, after a couple
of years of expansion of the service and subtle changes such as the introduction of the Prime Video
portion of the subscription, Amazon started to see substantial growth with their subscription service in
the 2010s.

According to data provided by Search Logistics, Amazon has seen an increase of roughly $29 billion
in net sales from 2013 to 2021, with 2021 seeing a total of $31.77 billion in net sales of Amazon Prime.
Additionally, “Amazon subscription value has more than doubled since 2017” (Search Logistics, 2022).
This was in large part due to an increase of approximately 28 million subscribers from the years 2019-
2021, as COVID-19 was at its worst. Based on the current trajectory of the previous years, Search
Logistics also predicts that there will be an estimated total of 168.3 million subscribers by the year
2025.

Not only have the sales of the subscription helped increase profits, but the amount of purchases
being made by those prime members has also helped contribute to Amazon’s success. Based on the
speed of the operation and the convenience of free delivery, Amazon has been able to generate a lot
more per year from Prime members’ purchases in comparison to non-prime members. Based on a 2021
survey, a Prime member’s average spending rate was $1,400 per year through Amazon, while non-
members only spent roughly $600 yearly (Chang, 2021). The implementation of Prime as a subscription
service didn’t have the immediate impacts that Bezos and the rest of the Amazon employees desired;
however, through more recent expansion tactics as well as the idea of online shopping becoming more
of the norm, Amazon Prime has been a huge success and has played an essential role in the expansion of
the company.
The Future of Amazon

With all the success that Amazon has already achieved and their desire to continuously expand into
different industries, the only question left is: What’s next for Amazon? Being most known for their
delivery services, the most notable expansion Amazon is trying to accomplish is to facilitate their
delivery process. While Amazon already offers a relatively short delivery time, depending on one’s
location, they’re continuously trying to improve delivery time as technology advances over time. This
includes their newest expansion of a trial delivery system with drones in Lockeford, California: Amazon
Prime Air. Within this experimental program, air drones will be able to deliver to local communities
within a small radius of the Amazon facility within just a couple of hours (Amazon Staff, 2022). In
addition to this newly innovative project, Amazon has also investigated 7\a fully electric and
autonomous delivery system known as Amazon Scout (Patrao, 2022). Whether either of these programs
will be the “next big thing” remains unclear; however, it’s evident that Amazon will continue
experimenting with different technologies to facilitate their delivery systems.

In addition to expanding their delivery systems, Amazon is also pursuing expansion opportunities by
forming partnerships and acquiring other companies. While Amazon’s partnership with Grubhub was big
news for the company, Amazon has also been actively expanding through acquisitions as well. For
example, the famous media making company, MGM (Metro-Goldwyn-Mayer) studios was recently
bought out by Amazon for $8.5 billion, which is known for the “Rocky” films, “Rain Man”, and more
(Maas, 2022). With its recent acquisition of MGM, Amazon plans to produce TV and movie projects
based on popular MGM franchises, including “Legally Blonde” and “Robocop” (PYMNTS, 2023). Although
no one knows what lies ahead in the future, it’s clear that Amazon wants to continue to grow as a
corporation through their experimentation in a more advanced delivery system and strategic business
partnerships and acquisitions.