E Commerce Report
A report on electronic transaction....
Department of Finance Faculty of Business Studies University of Dhaka
TITLE OF THE STUDY: A Comparative Analysis on Online Shopping Process of “bikroy.com”
Course Title: E-Commerce and E-Banking Course Code: F-404
SUBMITTED TO Md. Sajib Hossain Lecturer Department of Finance University of Dhaka
SUBMITTED BY Group: 03(Major) Section: “A” BBA 16th Batch Department of Finance University of Dhaka
Date of Submission: 24 March, 2013
ABOUT US… Group: 03(Major) Group Leader: Mohammad Rabin Islam Serial Student Name No. Id. 01 16-013 Mohammad Rabin Islam 02
Md. Atiar Rahman
Md. Sanowar Hossain
Md. Azizul Islam
Md. Mahbubur Rahman Khan
TABLE OF CONTENTS Topic
System Study Introduction to Bikroy.com Shopping at Bikroy.com Technical Procedure of Bikroy.com
8 9 9 10
Important Definitions & Terminologies
8 – 10
Bikroy.com Business Type Bikroy.com Revenue Model Language Buying and Selling
12 12 12 12
Bikroy.com- Fast Selling Process
Bikroy.com Comparative Analysis
14 14 15 16
A Comparative Analysis of bikroy.com and clickbd.com
Difference between Amazon.com and Bikroy.com
LETTER OF TRANSMITTAL March 24, 2013 Md. Sajib Hossain Lecturer Department of Finance University of Dhaka Subject: Submission of Term Paper. Dear Sir, It gives us immense pleasure to submit the report on A Comparative Analysis on Online Shopping Process of Bikroy.com. This report is submitted as the requirement to fulfill the course E-Commerce and E-Banking (F-404). We are thankful to buyers and sellers as this report was helpful for us to know about the ECommerce applications in Bangladesh and its operations, why it is used and the possible development for this E-Commerce sector in Bangladesh. This was a wonderful opportunity of widening our knowledge from the pages of our book to the field of practice. We hope that the report will meet the standard and will serve its purpose. Thank Buyers and sellers. Sincerely Buyers and sellersrs On behalf of the group: B.B.A. 16th Batch Section: A Department of Finance University of Dhaka
ACKNOWLEDGEMENT It is a pleasure to acknowledge many people who knowingly and unwittingly helped us, to complete our project. First of all let us thank the Almighty Allah for all the blessings, which carried us through all these years. We express our gratitude to Md. Sajib Hossain for his cooperation and encouragement during the completion of this course. We extend our utmost gratitude to Md. Sajib Hossain our project guide who has always stood by our side and guided, appreciated and encouraged us to get into more and more ventures. Continuing the same, she enlightened us in the various stages during the development of this project and provided us with many insights and useful examples, which proved to be of immense help in successful completion of this project. We extend our sincere gratitude to our teachers and guide who made unforgettable contribution. We thank all the non-teaching staff of our institution that was always ready to help in whatever way they could.
E X E C U T I V E S U M MA R Y The word E-Commerce is a common phenomenon in today’s world. Almost every organization now tries to catch up with the moving world through E-commerce and Internet. They try to create value for their customers in newer ways. They try to share important information as much as possible and try to connect and keep in touch with their customers through technology mediated way. All the technology mediated exchanges between parties are called E-Commerce. We have prepared a report regarding this issue covering the practices of E-commerce by bikroy.com.com (The no. 1 E-Commerce site in Bangladesh). We have gathered much information about their business, methods, systems and practices in Bangladesh. We have observed Bikroy.com’s process of doing business, how they help to complete a transaction, their categorization, website etc. We have also mentioned about the users of E-commerce, products and services provided by bikroy.com, platforms, process of buying and selling through bikroy.com, payment mechanism, delivery process etc. One can also give free advertisement of his/her thing to be sold at Bikroy.com. Process of posting, promoting, managing, searching and replying an advertisement also described in our report. The marketing strategies, Challenges, threats, negative aspects, future plans and business models are described with the viewpoint of bikroy.com. We tried to give our best to prepare this report and tried to make this report interesting for the readers. The details discussions are given in the later parts of this report. We hope that after reading this report we will succeed to add value for the readers about Ecommerce. This report offers a lot besides the theoretical knowledge and we are very thankful to everyone who contributed in the making of this report.
INRODUCTION Online shopping is the process whereby consumers directly buy goods, services etc. from a seller interactively in real-time without an intermediary service over the internet. Online shopping is the process of buying goods and services from merchants who sell on the Internet. Since the emergence of the World Wide Web, merchants have sought to sell their products to people who surf the Internet. Shoppers can visit web stores from the comfort of their homes and shop as they sit in front of the computer.Consumers buy a variety of items from online stores. In fact, people can purchase just about anything from companies that provide their products online. Books, clothing, household appliances, toys, hardware, software, and health insurance are just some of the hundreds of products consumers can buy from an online store. Many people choose to conduct shopping online because of the convenience. For example, when a person shops at a brick-and-mortar store, she has to drive to the store, find a parking place, and walk throughout the store until she locates the products she needs. After finding the items she wants to purchase, she may often need to stand in long lines at the cash register. Despite the convenience of online shopping, not everyone chooses to purchase items and services online. Some people like the idea of physically going to a store and experiencing the shopping process. They like to touch the merchandise, try on clothing, and be around other people. Online shopping doesn't permit shoppers to touch products or 8 have any social interaction. It also doesn't allow them to take the merchandise home the same day they buy it. Online shopping allows buyers and sellers to browse through endless possibilities, and even offers merchandise that's unavailable in stores. If buyers and sellers're searching for a niche product that may not be distributed locally, buyers and sellers're sure to find what buyers and sellers're looking for on the internet. What's even more useful is the ability to compare items, similar or not, online. Buyers and sellers can search through multiple stores at the same time, comparing material quality, sizes and pricing simultaneously. Shopping via the internet eliminates the need to sift through a store's products with potential buys like pants, shirts, belts and shoes all slung over one arm. Online shopping also eliminates the catchy, yet irritating music, as well as the hundreds, if not thousands, of other like-minded individuals who seem to have decided to shop on the same day. Say 'goodbye' to the days when buyers and sellers stood in line waiting, and waiting, and waiting some more for a store clerk to finally check out buyers and sellersr items. Online shopping transactions occur instantly-saving buyers and sellers time to get buyers and sellersr other errands done! Additionally, unlike a store, online shopping has friendly customer service representatives available 24 hours a day, 7 days a week to assist buyers and sellers with locating, purchasing and shipping buyers and sellersr merchandise.
2.SYSTEM STUDY Information systems projects’ originate from many reasons: to achieve greater speed in processing data, better accuracy and improved consistency, faster information retrieval, integration of business areas, reduced cost and better security. The sources also vary project proposals originate with department managers, senior executives and systems analysis. Sometimes the real origin is an outside source, such as a government agency which stipulates a systems requiremetns the organisattion must meet. When the request is made, the first systems activity, the preliminary investigation, begins. The activity has three parts: request clarification, feasibility study and request approval
2.1 Existing System: The existing system was an automated system. But It was found to be inefficient in meeting the growing demands of population.
2.1.1 Drawbacks in the existing systems:
Disadvantage of the existing system: Time Consuming Expensive Needed an agent We have to go out for that.
3.1 Purpose: Online shopping tries to enhance access to care and improve the continuity and efficiency of services. Depending on the specific setting and locale, case managers are responsible for a variety of tasks, ranging from linking clients to services to actually providing intensive shopping and delivery services themselves
Main objective • To shop wile in the comfort of buyers and sellersr own home ,without having to step out of the door. • sell at lower rate due to less over head. • provide home delivery free of cost. • No wait to see the products if someone else is taking that.
3.2 Scope: This product has great future scope. Online shopping Internet software developed on and for the Windows and later versions environments and Linux OS. This project also provides security with the use of Login-id and Password, so that any unauthorized users can not use buyers and sellersr account. The only Authorized that will have proper access authority can access the software.
Introduction to Bikroy.com: Generally speaking bikroy.com is a website where buyers and sellers can buy and sell almost everything. The best deals are often done with people who live in buyers and sellers’ own city or on buyers and sellers’ own street, so on Bikroy.com it's easy to buy and sell locally. All buyers and sellers have to do is select buyers and sellers region. It's completely free to publish a classified ad on Bikroy.com, and it takes buyers and sellers less than 2 minutes. Buyers and sellers can sign up for a free account and post ads easily every time. Or, if buyers and sellers don't want to register, just go to Post Buyers and sellers Ad, fill in the form, and buyers and sellers are done. Bikroy.com has the widest selection of popular second hand items all over Bangladesh, which makes it easy to find exactly what buyers and sellers are looking for. So if buyers and sellers are looking for a car, mobile phone, house, computer or maybe a pet, buyers and sellers will find the best deal on bikroy.com. Bikroy.com does not specialize in any specific category - here buyers and sellers can buy and sell items in more than 30 different categories. We also carefully review all ads that are being published, to make sure the quality is up to our standards.
Shopping at Bikroy.com: Bikroy.com comes into the market with the aim of providing a credible platform for online buyers and sellers to interact. The website provides a simple, safe and fast buying and selling experience for the approximately 7 million internet users in the country. Also, using Bikroy.com is completely free. Owing to the growing use of mobile internet in Bangladesh, the Bikroy.com team has also launched a mobile site. For many people in this country, mobile phones are the first point of contact with the digital world. For sellers, the site provides benefits such as free advertisement placements, potentially faster sales than anywhere else and the better possible offers for their products. The advertisements are valid on the site for a period of 180 days. Also the site is available throughout Bangladesh, so buyers can purchase items from someone in their own towns and cities. The advent of Bikroy.com promises to open a whole new market in the digital world of Bangladesh. In Bangladesh, the lack of a reliable platform discourages trading of second hand products over the internet. But Bikroy.com provides a smart and friendly platform for the trading of second hand items ranging from cars to mobile phones, houses to vehicles. At Bikroy.com, all advertisements go through a strict approval process, making sure that all proper terms and conditions are followed, and products and services traded are legitimate and genuine. Expert, top of the line programmers in Sweden, develops Bikroy.com. They have also launched similar Internet products in Pakistan and Sri Lanka. However the page is managed and maintained by local representatives from Bangladesh to ensure that the end consumer has a 100per cent localized experience. This is a product that anyone with access to the internet can use easily. All one needs is a valid email address, and in three easy steps anyone can quickly and easily upload a classified advertisement on to the website. Bikroy.com is available in both Bangla and English versions making it the only classifieds site in Bangladesh catering to Bangla and English preferences of audiences. Bikroy.com was developed with the aim and vision to bring value to the burgeoning internet market in Bangladesh. 9
Bikroy.com is a website where anyone can buy and sell almost everything. The best deals are often done with people who live in their own city or on their own street, on Bikroy.com it's easy to buy and sell locally. All that have to do is select own region. It's completely free to publish a classified advertisement on Bikroy.com, and it takes less than 2 minutes. One can sign up for a free account and post advertisements easily every time. Or, if don't want to register, just go to “Post Your Ad”, fill in the form, and he is done. Bikroy.com has the widest selection of popular second hand items all over Bangladesh, which makes it easy to find exactly what anyone is looking for. So if someone is looking for a car, mobile phone, house, computer or maybe a pet, he will find the best deal on Bikroy.com. Bikroy.com does not specialize in any specific category - here one can buy and sell items in more than 30 different categories. They also carefully review all ads that are being published, to make sure the quality is up to their standards.
Technical Procedure of Bikroy.com: Bikroy.com is a service provided by Saltside Technologies AB (subject to your compliance with the Terms and Conditions set forth below). Please read these Terms and Conditions before using this Web Site. General: Advertisers and users are responsible for ensuring that advertising content, text, images, graphics, video ("Content") uploaded for inclusion on Bikroy.com complies with all applicable laws. Bikroy.com & Saltside Technologies AB assumes no responsibility for any illegality or any inaccuracy of the Content. The advertisers and user guarantees that his or her Content do not violate any copyright, intellectual property rights or other rights of any person or entity, and agrees to release Bikroy.com and Saltside Technologies AB from all obligations, liabilities and claims arising in connection with the use of (or the inability to use)( the service. Advertisers agree that their Content can may be presented through Bikroy.com’s partner sites under the same terms and conditions as on Bikroy.com. Content: The material (including the Content, and any other content, software or services) contained on Bikroy.com are the property of Saltside Technologies AB, its subsidiaries, affiliates and/or third party licensors. Any intellectual property rights, such as copyright, trademarks, service marks, trade names and other distinguishing brands on the Web Site are the property of Saltside Technologies AB. To be clear: No material on this site may be copied, reproduced, republished, installed, posted, transmitted, stored or distributed without written permission from Saltside Technologies AB.
Modifications: Bikroy.com & Saltside Technologies AB reserves the right to modify these Terms and Conditions. Such modifications shall be effective immediately upon posting on Bikroy.com. You are responsible for the reviewing of such modifications. Governing Law: Bikroy.com is operated under the laws and regulations of Sweden. Advertisers and users agree that Swedish courts, with the district court of Gothenburg as the court of first instance, will have jurisdiction over any dispute or claim relating to the use of Bikroy.com.
Bikroy.com Business Type: Bikroy.com is actually a third party marketplace where the auction takes place between the buyers and sellers over phone or other media. Bikroy.com is a virtual platform for the customers, consumers and sellers. Bikroy.com is mainly a virtual intermediary between parties. And via this platform any type of business transaction can took place.
Bikroy.com Revenue Model: The basic service of selling and buying will always be free on Bikroy.com. At some stage, we will add paid features to the site, as well as advertising.
Advertisement Process: The products array is conveyed to the customers according to their category: Product Categories No. of Ads Electronics 145325 Property 16650 Cars & Vehicles 16213 Personal Items 10137 Education 9097 Home Appliances 5964 Jobs 5275 Leisure, Sport & Hobby 4535 Pets & Animals 3569 Food & Agriculture 606 Other 573
Language: Both Bengali and English options are provided for searching that can be customized by the users.
Buying and Selling To buy or sell a product or service the buyer or seller has to post advertisement on the site by following some steps. 1. Creating and Account: Requires the following optionsA. Fill in details B. Check your ad C. Confirmation 2. Selecting the city and division as the location. There are three categorized name of city with seven divisional areas. 3. Selecting the product or service category from the preset category of 11 item of the bikroy.com. And select whether the advertisement is for buying or selling. 4. After selecting the product category a short form has to be filled up. If the advertisement is for selling the poster has to add picture and description and send it to review by the personnel of the bikroy.com. 12
If the advertisement fulfill all required fields then the bikroy.com authority publish the advertisement or otherwise send an e-mail contained with the reason of not publishing the advertisement. But there are certain advertisements that are not allowed to post on the site. Or having those in the advertisement can be reason to not publishing. They are
An item or service that is illegal in Bangladesh An item or service that is not located in Bangladesh An invalid phone number An unrealistic offer Offensive language Offensive pictures Text in the title or description that is not related to the advertised item or service Pictures that do not match or clearly show the advertised item or service A non-specific item or service, e.g. A description of a company in general terms A URL link that is not relevant to the advertised item or service Offers and requests for items or services in the same ad Multiple items in the same ad The same content as another ad “Work from home" jobs
Bikroy.com- Fast Selling Process By following easy and simple 3 steps, anyone can sell a product or service. Step-1. Pick the right price - everything sells if the price is right.
Browse similar ads and pick a competitive price. Consider how much buyers are willing to pay - the lower the price, the higher the demand.
Step-2. Use good pictures - more people view ads with pictures. Use original photos - ads with photos of the actual item(s) sell faster. Take clear photos - use good lighting and different angles. Step-3. Provide a clear title and description - focus on information that is relevant to buyers. Imagine as the buyer - what would one want to know if the seller were looking for this item. Keep the title short and simple - use key words that people might search for (e.g. item name, brand/company, model/type). Be honest in description – describe any imperfections along with details of the item's features.
Bikroy.com Revenue Model The basic service of selling and buying will always be free on Bikroy.com. At some stage, they will add paid features to the site, as well as advertising.
email address, contact information, and (depending on the service used) sometimes financial information; computer sign-on data, statistics on page views, traffic to and from bikroy.com and response to advertisements; other information, including users' IP address and standard web log information.
Use. Bikroy.com use users' personal information to:
Bikroy.com's Safety Measures They work continuously to ensure a safe, enjoyable experience on Bikroy.com. Their safety measures include:
Hiding email address on ads post to protect from spam. Giving the option to hide phone number on ads post to protect from spam. Making constant improvements to technology to detect and prevent suspicious or inappropriate activity behind the scenes. Tracking reports of suspicious or illegal activity to prevent offenders from using the site again. Providing safety advice to help protect.
Reporting a safety issue If someone feels that he has been the victim of a scam, they can report immediately.If one believes that he has been cheated, they also encourage to contact local police department.
Marketing Policy In recent years, Bangladesh has witnessed rapid advances in internet usage. Bikroy.com believe the online landscape of Bangladesh is going through a radical transformation integrating the new era of social networking sites and the progressive adoption of user content (e.g. blogs). These changes are paving the way for a more mainstream internet business in the country. Along with the advent of the new era in the online landscape, the huge population and the constant GDP growth of the country also makes Bangladesh an excellent place for business. They want to be the obvious choice when the people of this country are trading in all sorts of second hand items ranging from mobile phones to livestock, from property to household goods, and so on. Bikroy.com specializes on the online classified business and concentrates only on this. They believe in providing a convenient and reliable online market place. As a result, even though bikroy.com came to the market only six months ago, currently they are the top classified site in Bangladesh. Bikroy.com provides a platform for buying and selling mainly second hand products provides a great opportunity for small and medium enterprises to promote their business through the internet. As expected, they are getting a very good response from the market. Within six months of launch, they became the number one classified site with more than 100,000 ads. Bikroy.com believes that as the usage of internet grows in Bangladesh, they will grow along with it. Bikroy.com mainly focused on the “facebook” the biggest social networking site to advertise about them. And they also believe the word of mouth will benefit them. When people are able to sell their products faster and more conveniently than before and buyers can find bigger market to choose their preferred products, word of mouth will spread. This will generate more traffic to the site and help them to capture the market share.Currently it is holding the position of 8th most visited website in Bangladesh.
Comparative Analysis: Now we consider comparison of bikroy.com with a local online shopping service in this case clickbd.com and with an international company like amajon.com.
A Comparative Analysis of bikroy.com and clickbd.com: We now will see the main differences between bikroy.com and clickbd.com in terms of the 7C's of e-Commerce Customer InterfaceRayport and Jawarski's principles, known as the 7C's, are as follows: 1. 2. 3. 4.
Context: Site's layout and design Content: Text, pictures, sound and video, that the web pages contain Community: The ways sites enable user to user communication Customization: Site's ability to self-tailor to different users or to allow users to personalize the site 5. Communication: The ways sites enable site-to-user communication or two way communication 6. Connection: Degree site is linked to other sites. 7. Commerce: Site's capabilities to enable commercial transaction
Context: This refers to the site's look and feel. The site may be Functionality Oriented: Where the enabling of the function of the site is the prime objective of the site Aesthetic Oriented: The aesthetic aspect of the web pages is given priority Hybrid: The site is to be both aesthetically pleasing and functionally efficient Site Bikroy.com Clickbd.com
Orientation Functionality Oriented Hybrid
Comparative Advantages Low High
Content: This is the on the site. This can be images, videos, documents, links and/or downloadable items about the product and services. It is also about the promotion and communication messaging offered. Some of the contents may be time sensitive, that is they have an appeal only for a limited time. For example, a news site needs to constantly update its content to remain relevant. Site
Comparative Advantages Bikroy.com variety of product and services mix Low but poor communication Clickbd.com variety of product and services mix High better communication and messaging Community: This refers to the way the site enables user-to-user interaction. Non-existent: sites that have no community offer no way for users to interact with one another, on either a one-to-one basis or oe-to-many basis. Limited: sites that offer features such as reading and posting information, stories, or opinions. Strong: sites that offer interactive community functions such as chat rooms and message boards. Site
Comparative Advantages Low High
Bikroy.com Non-existent Clickbd.com Limited
Customization: This is the site's ability to allow the users to personalize the site. The different types of communities that the site offers fall under a few different categories Site
Bikroy.com No Personalization Clickbd.com Managing Ads at Your Clickbd.com
Comparative Advantages Low High
Communication: This is the site-to-user communication. Ways that the site can communicate include: Broadcast: This is where the site communicates the same message to a large group of users through portals such as mailings, news feeds, marketing material, or content update notification Interactive: This involved more of a one-on-one interaction between the site and the user through user input, e-commerce dialogue and customer-service. Hybrid: A combination of the above. An example can be a news site where their news is broadcasted but the user's reply to the news would be interactive. Site
Comparative Advantages Low High
Bikroy.com Interactive Clickbd.com Hybrid
Connection: How the site links to other sites. Sites' content can link to other sites. This new content can be placed in the same site to retain attention on site or be a path way out of the site. Example can be referrals, web rings and affiliate programs. Site
Comparative Advantages Bikroy.com Third Party Websites are not Low investigated or monitored (a path way out of the site) Clickbd.com Third Party Websites are monitored High (placed in the same site) Commerce: This allows for the users to trade online. Typically, e-commerce sites have a registration procedure to store information, user preferences, a shopping cart to hold items, security features, instant credit card approval, order tracking, and delivery options. Site
Comparative Advantages Low High
Bikroy.com No Registration Procedure Clickbd.com Provide User Preferences
Difference between Amazon.com and Bikroy.com 1. 2. 3. 4. 5.
Amazon has more categories for choosing products Product details are precise in Amazon Company details and backgrounds are mentioned Zooming option in picture, when cursor is on top of it In Amazon they have delivery mechanism, whereas bikroy can be used only for information 6. Bikroy.com is just acting as a bridge between the buyer and seller and doing the arrangement meeting weather virtual or personal, whereas Amazon their own delivery system, guarantee for products and so on 7. People can enjoy cart , e-card, gift, wish list facilities in Amazon 8. Amazon is providing a worldwide service 9. As Bikroy.com is just acting as an intermediary making up some commissions by helping sellers to post their adds or helping buyers to find right product, they don’t have their own payment mechanism or after sales services, whereas Amazon is a place where they are attached with every possible way of transferring goods and money with proper safety 10. Amazon have liaison with every popular or unknown brands for selling their products using Amazon’s delivery and payment services, whereas Bikroy.com gives seller a floor to publish their products by getting uninterrupted by the authority . 11. Products full specifications are provided by Amazon, along with the sellers wish to disclose it or not; whereas in Bikroy.com buyers can get only those information which are presented by the seller, Bikroy.com authority don’t interrupt or verify it.
Conclusion: Now-a-days we get everything in the palm of our hand. Technology and innovation make our life smooth and easy. E-commerce is a blessing which develop our civilization beyond our imagination. Now we depend much on online shopping because e-commerce makes buy and sell lofty. Developed countries reap up the benefit of e-commerce than the developing country like ours. In Bangladesh there is little scope and application of e-commerce. As most of the people are living under the poverty line, they are not quit familiar with e-commerce. In 2012 Clickbd.com first introduce e-commerce portal which brings revolution in Bangladesh’s internet. Bikroy.com is an e-commerce site that gives a platform to the sellers to sell and buy their products online. They do not sell any product directly, in every ad the sellers contact number is given so buyers call them to know about the product. So, it is involved in C2C e-commerce. Bikroy.com follows value cluster, high performance, constant innovation and teamwork and opportunity for wealth creation in the core benefit of Bikroy.com. Scope of offering of Bikroy.con is cross-category dominance. Bikroy.com differs from other existing e-commerce portal of Bangladesh as Bikroy.com offers their own Click card besides Master and Visa card for payment. The success and achievement of Bikroy.com is impressive and it develops the online market of Bangladesh in many ways. So in fine we can conclude that the role of Bikroy.com in developing the online market of Bangladesh will be continued like the previous years.