Mostly consumers purchase the products of Flipkart company from its website, thus for them it is an e-commerce company. But if we see from the point of view of company’s Chief Executive Officer (CEO), then for them it is a technology company which do their business online, thus in an e-commerce way.
They said this as they resolve the problems using technology and they have built in-house technology instead of sourcing it. By using the technology, company capture the data points which help them in taking business decisions. Their many tasks are automated, using technology.
It is known from the few reports that Indian online sales could reach $15 billion by 2017 and thus it is known that E-Commerce is the fastest growing or developing sector or segment in India.
There is an important aspect of the business is that there are companies like Flipkart and Snapdeal which are home based companies are competing with global majors like Amazon and eBay.
According to the statement of the CEO “Flipkart is banking on technology to further its business”.
Flipkart developed the payment gateway service known by the name of Pay Zippy and it is basically designed for merchants and mobile sites, essentially a B2B offering. In the beginning of this month, the company extended it and made it a B2C service.
It is known from the reports that now Payzippy allows its customers to store their card details as well as pay on other merchant websites. As per the reports, Pay Zippy is now available on MakeMyTrip, Bluestone, Yepme, Zansaar, Trendin, Justeat, Bluestone, LensKart and Travelyaari.
Around 65 percent of online deals account for Flipkart whose main objective is to wean customers away from cash-on-delivery mode of transactions. This model allow the company to build the trust among their customers who generally do not purchase anything from the company’s website, they don’t do their business online.
Actually few customers don’t do business online, as the time taken in doing online transaction/payment is long and to overcome this limitation, Payzippy has reduced the time by 50 percent in doing online payment. After doing this change, the company’s expectation is that now at least 1, 50,000 customers used or sign up for this service within the first month as their target is around serving 1 million customers by next June, 2014.
Flipkart is leveraging technology and revisiting its bread-and-butter business model.
The company is focusing on its technology strengths and also understand the mindset of the Indian consumers which helped them to raise Rs. 2000/- crore.