CONTENTS

CHAPTER TITLE PAGE

NO NO
LIST OF TABLES

LIST OF FIGURES

1 INTRODUCTION

2 REVIEW OF LITERATURE

3 RESEARCH METHODOLOGY

4 DATA ANALYSIS AND

INTERPRETATION

5 FINDINGS, RECOMMENDATIONS
AND CONCLUSION
BIBLIOGRAPHY

APPENDIX
 LIST OF TABLES
TABLE TITLE PAGE
NO NO
4.1 BUSINESS OF RESPONDENTS 39

4.2 IMPACTS OF SALES 40

4.3 EFFECTS OF SALES 41

4.4 E COMMERCE STORE 42

4.5 POTENTIAL OF E- COMMERCE 43

4.6 EFFECTS OF PROFIT 44

4.7 BUYING THINGS FROM ONLINE 45

4.8 IMPORTANCE THAN RETAIL BUSINESS 46

4.9 CUSTOMER BEHAVIOUR 47

4.10 HOME DELIVERY SERVICES 48

4.11 MAINTAINING OF SALES 49

4.12 AFTER SALES SERVICE 50

4.13 REASON FOR ONLINE SHOPPING 51

4.14 CUSTOMER SATISFACTION 52

4.15 SUPREMACY OF FUTURE 53

4.16 CHANGE OF BUSINESS 54

TABLE TITLE PAGE
NO NO
4.1 BUSINESS OF RESPONDENTS 39

4.2 IMPACTS OF SALES 40

4.3 EFFECTS OF SALES 41

4.4 E COMMERCE STORE 42

4.5 POTENTIAL OF E- COMMERCE 43

4.6 EFFECTS OF PROFIT 44

4.7 BUYING THINGS FROM ONLINE 45

4.8 IMPORTANCE THAN RETAIL BUSINESS 46

4.9 CUSTOMER BEHAVIOUR 47

4.10 HOME DELIVERY SERVICES 48

4.11 MAINTAINING OF SALES 49

4.12 AFTER SALES SERVICE 50

4.13 REASON FOR ONLINE SHOPPING 51

4.14 CUSTOMER SATISFACTION 52

4.15 SUPREMACY OF FUTURE 53

4.16 CHANGE OF BUSINESS 54

TABLE OF FIGURES
 CHAPTER – 1
INTRODUCTION

A STUDY ON IMPACT OF E-COMMERCE ON RETAIL BUSINESS

WITH REFERENCE TO NEDUMPANA GRAMA PANCHAYATH
1. INTRODUCTION

We know that retail industry has seen a significant rise in recent years. The Indian retail industry

has made it to the top 5 retail industries of the world, accounting for 10% of the GDP. Many

retailers have been performing quite well; look at Big Bazaar, Reliance Retail, and D Mart. But

some have failed to get the hang of it and are accruing losses. Even though the retailers face a lot

of challenges from different areas. Some of the problems are:

1.1 Unorganized Markets

The retail sector in India has been unorganized for a long time. There is no standard procedure

and planning that would aid a retailer in establishing and running its business. Small and

medium-sized retail outlets and stores are set up here and there, and the lack of planning serves

to be a drawback for the big retailers.

1.2 Cost Factor Due to Large Supply Chain

When a retailer sets up its outlets in the urban localities, sourcing the materials from the remotest

parts of the country becomes a gigantic task. There is no direct contact with the farmers,

producers, and manufacturers. This makes way for middlemen that increase the size of the

supply chain and thus the overall costs.

1.3 Maintenance Cost

Paying a large number of employees who manage the stores, help with the purchases & sales,

and are involved in various types of management operations is a factor that is not the same in the

case of small stores. Also, the overall maintenance cost in terms of electricity, rents, water, etc.,

is much more for the big retailers and, more often than not, poses a threat to their overall

survival.
1.4 The Mindset of the Customers

As a retailer, you may offer the biggest discounts, but customers tend to be very loyal to the local

grocery stores they have frequented for years. They know the owners and the employees of those

stores personally and are convinced of receiving quality products and services. So unless and

until you do not create a communication channel with those customers that promises them better

services and actually delivers that, their mindset will not change.

1.5 Lack of Personal Touch

Customers want their shopping experiences customized as per their needs. When a person they

know recommends a product, the chances of them buying the product increase. Similarly, even if

retailers offer the same product at half the price by displaying advertisements, buyers would like

it more if the person at a convenience store tells them that a certain product is of great quality

and is being offered at a reduced price. This aspect often lacks in the larger retail establishments.

1.6 Rise of E- commerce

The age of the internet and technological advancements has opened a number of possibilities in

every sphere of life. The same applies to the retail sector too. Many customers do not want to go

out in the sun, look out for a parking spot, search for their desired products, and then stand in a

queue to pay for their items. Rather, they want their products home-delivered by the click of a

few buttons. Big Basket and Amazon Pantry are good examples of that. Also, the recent growth

in UPI-based payment has made buying easier for many customers, which they couldn’t before.

This is also a major hindrance when it comes to offline retailers being the masters of the

industry.

In this research we discussed about the topic of impact of e- commerce on retail business.

The main challenge faced by the retailers is the arrival of e- commerce.

1.1.1 E-COMMERCE

E-Commerce (Electronic Commerce) is the buying and selling of goods and services, or

transmitting of funds of data, over an electronic network, primarily the internet. These business

transactions occur either as business to business, business to consumer, consumer to consumer or

consumer to business. In the last two decades, wide spread use of e-commerce platforms such as

Amazon and eBay has contributed to substantial growth in the online retail. E-commerce isn’t

just for well-known brands. From start-ups to big multinationals, Technology is changing how

we do business at a phenomenal pace, and e-commerce trends continue to grow and evolve.

Retail Business refers to the sale of goods or services from individuals or businesses to the end

user. Retailers are in the business of buying goods from wholesalers, manufacturers, or other

retailers and then selling them to consumers for a profit. Examples of retail business are super

markets, department stores, convenience stores, and online stores. The role of the retail business

in the survival of society is very important and of course mutually beneficial for both parties,

both buyers and sellers.

The impact of e-commerce on traditional retail business has been substantial and far reaching.

With the rise of the internet and technological advancements, e-commerce has gained immense

popularity as a convenient and accessible way of buying and selling goods and services. This

shift in consumer behavior has presented both advantages and challenges for traditional retail

business. E-commerce has experienced exponential growth over the years. Factors such as the

increasing prevalence of smartphones, improved internet connectivity, and changing consumer

preferences have contributed to its rise. Online marketplaces and dedicated e-commerce websites
have emerged as major players in the global retail industry. Companies like Amazon, Alibaba,

and eBay have transformed the way people shop, creating a highly competitive environment for

traditional retailers.

Advancement in technology has reshaped and revamped the way business is being done. There is

a shift towards using internet as a platform for firms to carryout business. The advantages

associated with this technology has left almost all business firms whether big or small in size to

consider adopting it with the notion that it will help them stay competitive and relevant in the

current world of business.

However, there is little knowledge these firms have with regards to both advantages and

disadvantages of adopting e-commerce. This paper has identified the pros and cons of adopting

ecommerce. The method used to arrive at the conclusion in this paper is through an analysis of

secondary data from existing books, journals and internet sources.

It is apparent that since the inception of computers and internet, everything particularly on how

business is carried out has tremendously changed. E-commerce is one of the fastest growing

industries worldwide and is one of the most rapidly evolving areas of national and international

trade.

Using internet to carryout business has been deemed to be the most current innovation in the

world of business and offers an opportunity to businesses to carryout business through

electronics. Firms have rushed to adopt e-commerce which entails making transaction online

with the belief that it will help them gain competitive advantages and increase their market

shares as well as revenue.

1.1.2 BENEFITS
In deed there are numerous advantages associated with this concept such as capturing new

markets by allowing firms to go global, 24/7 operation this has been shown to bring with it the

advantage of reliability and convenience which allows potential customers who do not have time

to buy products and services regardless of time

It is evident that e-commerce help firm cut the costs of doing business, for instance there will be

less paper work which requires human resource, a flexible or telework arrangement can be put in

place making working execute their tasks, duties and responsibilities not necessarily in the office

among other advantages.

1.1.3 DRAWBACKS

It is established that there are a host of drawbacks associated with e-commerce such as increase

in criminal activities, ethical issues such as firing employees as a result of automating some

tasks, technical issues, compatibility problems as well as legal implications.

For instance there is concern about increase in crime rates that are not easily detected, the real

time production of goods and services have and will continue to create stock crisis, there is

potential of loss of resources as well as underutilization of the same (people will lose jobs and

rates of disposed equipment will increase), unavailability of power, ICT manpower,

telecommunication facilities leaves some communities especially in third world countries at a

disadvantage, social division and broken human interaction that creates and nurture trust.

Bases on these pros and cons of adopting e-commerce, it would be rational for businesses to

critically examine them and develop better strategies to curb some of these drawbacks. Failure to

give this concept a serious thought might be a recipe for an organization to fail.
India is one of the developing countries having a giant population with restricted resources.

Indian perception is usually being traditional approach toward a buying behavior which is the

retail business for shopping as they were familiar with physical shopping patterns. However, due

to advanced technology, people were attracted to the virtual world. This also demonstrated the e-

commerce business, which steadily enhanced the ecommerce market in India. Additionally, the

pandemic crisis, which is widely spread in India and the world, also paves the way for India's e-

commerce business growth and opportunities rather than the retail business.

1.4 E-commerce Trends

E-commerce is one of the growing and leading business methods based on internet resources and

striving the market tremendously in a few years. E-commerce if the online shopping approach is

only utilized by using the internet and electronic gadget through which percentage enormous

options for shopping, anywhere, everywhere, anytime and every time without any geographical

boundaries. E-commerce websites can run all the time. From the retailers’ point of view, this

increases the number of orders they receive. From the customer's point of view, an ‘always open’

store is more convenient. The data gathered reveals that retailers are very much aware about the

e-commerce business and they compare different products with different channels of purchase.

The basic services like competitive pricing, wide range of product availability and deliveries in

time coupled with trust and loyalty factors are the main purpose which not only changes the

perception of retailers but it also changes their buying behavior.

E-commerce companies should understand the psychology and buying behavior of retailers

before launching any new products, new campaign and schemes etc. It is also clear that if pricing

and related notifications in time are sent the retailers, can be a good effective media for

conveying the message to other fellow retailers. Finally, ecommerce firms are suggested to focus
on the simple design of the app/webs for faster and easier understanding of the retailers apart

from the product, pricing and logistics. Further the research would be more interesting if it could

be extended to various different sectors with a mix of both urban and rural areas.

Ecommerce or electronic commerce or internet commerce, refers to the buying and selling of

goods or services using the internet, and the transfer of money and data to execute these

transactions. The history of ecommerce begins with the first ever online sale: on the August 11,

1994 a man sold a CD by the band Sting to his friend through his website Net Market, an

American retail platform, which is the first example of “ecommerce” as everyone commonly

aware about it.

There are four main types of ecommerce models today that can describe almost every transaction

that takes place between consumers and businesses. These are: 1) Business to Consumer (B2C),

2) Business to Business (B2B), 3) Consumer to Consumer (C2C), and 4) Consumer to Business

(C2B). When a business sells a good or service to an individual consumer it is B2C, when a

business sells a good or service to another business it is B2B, when a consumer sells a good or

service to another consumer C2C, and when a consumer sells their own products or services to a

business or organization C2B.

India is one of the fastest growing economies in the world. The retail market in India offers

significant opportunities for retailers and brands across categories. This is driven by factors such

as a large consumer base, rising incomes and job opportunities, increasing consumer awareness,

etc. The Indian retail market is estimated to be US$ 600 billion and one of the top five retail

markets in the world by economic value. India is one of the fastest growing retail markets in the

world, with 1.3 billion people.

Today, being a retailer doesn’t require a physical store; retail activities can be carried out even

only in digital form. Moreover, some of the most successful players in the sector, such as

Amazon, Flipkart etc., operate primarily online, providing that a brick and mortar shop is not

essential to create a successful retail business. In fact, many businesses from big-box retailers to

small boutiques have a presence that is both physical and online. In this way, companies have the

opportunity, via the internet, to reach a much larger number of consumers and thereby, greater

profitability. Thus, the present study on factors influencing ecommerce adoption by retailers in

India is very much needed and significant at present scenario.

E-commerce is the activity of buying or selling of products on online services or over the

Internet. Electronic commerce draws on technologies such as mobile commerce, electronic

funds transfer, supply chain management, Internet marketing, online transaction processing,

electronic data interchange (EDI), inventory management systems, and automated data collection

systems. Modern electronic commerce typically uses the World Wide Web for at least one part

of the transaction's life cycle although it may also use other technologies such as e-mail. Typical

e-commerce transactions include the purchase of online books (such as Amazon) and music

purchases (music download in the form of digital distribution such as iTunes Store), and to a less

extent, customized/personalized online liquor store inventory services. There are three areas of e-

commerce: online retailing, electronic markets, and online auctions. E- commerce is supported

by electronic business. The rise of e-commerce has had a significant impact on the retail

industry. Traditional brick-and-mortar retailers are facing tough competition from online stores,

with e-commerce sales growing at a much faster rate than in-store sales. According to a report by

Digital Commerce 360, online sales grew by 44% in 2020, while in-store sales decreased by

14%. One of the biggest reasons for the growth of e-commerce is convenience. Customers can
now shop from anywhere at any time, using their computers or mobile devices. This has resulted

in a shift in customer behavior, with more people preferring to shop online rather than visiting

physical stores. Another factor driving the growth of e-commerce is the availability of a wider

range of products. Online stores are not limited by physical space, which means they can offer a

much larger selection of products than traditional retailers.

RETAIL BUSINESS: -

Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to

business or institutional customers. A retailer purchases goods in large quantities from

manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers

for a profit. Retail stores play a crucial role in the everyday life of modern people. Retailers

enable consumers to access a wide variety of products and services worldwide. The retail

business helps support the country’s economy and create additional workplaces.

First of all, the retail industry is about customers’ convenience. Retailers bring ready-to-

consumes products to people and let them get everything they need for their happy living.

Customers don’t have to wait for a long time. They can visit a grocery, clothing, convenience, or

drug store to have the products they need now. Besides, retailers often offer delivery to the

customer’s doorstep.

The retail business is a part of a bigger system called a supply chain. Retailing is a crucial part of

the supply chain since it links a manufacturer with a consumer. Retailers contact vendors and

buy products in large quantities. After, they sell these items in small amounts to customers to

obtain profit. After making a deal with a manufacturer, businesses can offer consumers a wide

range of products. The retail industry influences the economic development of a country. Stores
sell goods and pay taxes to the country’s budget. Retail companies provide people with jobs. The

level of unemployment decreases.

TYPES OF RETAIL BUSINESS: -

Convenience store: -

It is a store in your area with all the essential items you need regularly. A convenience store is

often a small place with a limited number of product categories. It can have only 2-3 types of

each product, but you’ll find this store almost everywhere in any city or country. You don't have

to go to the supermarket, check in your bags, or wait in a long queue to buy milk. It’s better to go

to a convenience store near your house.

Specialty store: -

This store specializes in one or two product categories. Its main advantage is the availability of

items you can’t find in the market. Examples of especially stores include florists, furniture stores,

sporting goods stores, bookstores, etc. For instance, if you need a specific book, you better go to

a bookstore. Supermarkets and malls don’t offer much choice of books.

Supermarket: -
It’s a marketplace with various product categories and product lines. The choice is diverse. In a

supermarket, people can find everything they need for their homes: fruits, vegetables, bakery,

sweets, detergents, coffee, home appliances, dishes, and many other products. People shop at a

supermarket to refill their home inventory. They find everything in one place. Customers don’t

need to go to several stores to buy all products. It’s convenient and time-saving. Supermarkets

encourage consumers to come back by offering discounts, promos, and unique products.

Drug store: -

It’s a store that sells medicine. The store has a wide choice of drugs to fulfill people’s needs

every day. Besides pharmaceuticals, drug stores offer health and beauty products, water, snacks,

and sunscreens, and have a pharmacist who can give a piece of advice.

E Commerce store: -

It’s an online store that sells products and services on the internet. Customers who can’t find a

specific item in stores will find it online because of the choice modern platforms offer. They

deliver items from different countries. Famous examples of ecommerce stores include Amazon

and Alibaba. Today, Amazon holds a huge market share of retail business and is at the top of

customers’ minds. The tendency of going online and having high profits will soon encourage all

retail stores to sell products from a website.

Discount store: -
This store offers a great variety of products with a good discount to hook customers’ attention.

Discount stores provide great discounts because they buy products from manufacturers in big

volumes at a low price. These stores have low selling prices, and low margins, and sell products

in significant volumes. Walmart is the most recognizable example of a discount store.

IMPACT OF E-COMMERCE ON TRADITIONAL RETAIL BUSINESS:

The rise of e-commerce has also changed customer expectations. Customers now expect a

seamless shopping experience across all channels, whether they are shopping online, in-store, or

through a mobile app. Retailers must provide an omnichannel experience that meets these

expectations to stay competitive. This means that retailers must provide customers with a

consistent experience, regardless of the channel they choose to shop through. For example,

customers should be able to buy a product online and pick it up in-store, or return a product

purchased online at a physical store. This seamless integration between different channels is

crucial for customer satisfaction and loyalty. The following figure shows the impact of e-

commerce on retail business.

Increasing Competition

Traditional retail businesses face intense competition from various sources, e-commerce

platforms, and big box stores. These competitors often offer a wide range of products,

competitive pricing, and convenient shopping experiences, attracting customers away from

traditional brick-and-mortar stores. For example, a local bookstore faces competition from online

retailers like Amazon, which offers a vast selection of books at competitive prices. Many

customers choose the convenience of online shopping and opt for digital books or e-books

instead of visiting the physical store.

Changing Consumer behavior

The shift in consumer behavior towards online shopping and digital experiences has posted a

significant challenge for traditional retail businesses. Today, consumers increasingly prefer the

convenience of shopping from their homes, comparing prices online, and having products

delivered to their doorstep. For example, a traditional clothing retailer faces challenges as more

customers prefer to browse and purchase clothes through online platforms. Consumers can easily

compare prices, read customer reviews, and order clothes without leaving their homes, reducing

foot traffic to physical stores.

Comparing Product Options

As compared to traditional business, e-commerce provides customers with a wide range of

alternatives while shopping. It gives the customers an opportunity to check out the merchandise

and simultaneously compare similar products on different websites. By doing so, e-commerce

also helps customers in comparing prices which is not an easy process in traditional business.

Therefore, customers shift from traditional business towards e-commerce. For example, it is easy

to compare clothes and their prices on different websites like Flipcart, Amazon, Myntra etc, then

to go to a physical marketplace and search for clothes at different shops.

Changes in Supply Chain

With the rise in e-commerce, there have been numerous changes in the supply chain. It is

because retailers have had to adapt to the increased demand for efficient and fast shipping. This
change in the supply chain has resulted in new logistics and fulfilment challenges for traditional

retailers.

Opportunities for Integration

Besides the negative impacts, e-commerce has also given traditional businesses some

opportunities. It includes integration between the online and offline channels. With e-commerce,

traditional retailers have successfully developed channel strategies allowing their customers to

shop online and pick up products in-store or to order the product online, and then return them (if

required) at the physical store. Examples of channel strategy include Decathlon, H&M etc.

Besides the negative impacts, e-commerce has also given traditional businesses some

opportunities. It includes integration between the online and offline channels. With e-commerce,

traditional retailers have successfully developed channel strategies allowing their customers to

shop online and pick up products in-store or to order the product online, and then return them (if

required) at the physical store. Examples of channel strategy include Decathlon, H&M etc.

The advent of the Internet and e-commerce has brought a new way of marketing and selling

many products, including books. The system wide effects of this retailing shift on costs and the

environment are still unclear. Although reductions in inventories and returns provide significant

environmental savings, some major concerns of the new e-commerce business models are the

energy and packaging materials used by the logistics networks for product fulfillment and

delivery. This study analyzes the different logistics networks and assesses the environmental and

cost effects of different delivery systems. The definition of analysis system boundaries

determines the overall assessment of economic and environmental effects of e-commerce for

book retailing. With a return (remainder) rate of 35 percent for best-selling books, e-commerce

logistics costs less and has fewer environmental effects, especially if private automobile travel
for shopping is included. Excluding the need to return books, costs and environmental effects are

comparable for the two delivery methods.

In conclusion, the impact of e-commerce on traditional retail businesses has been profound.

Traditional retailers must adapt to the changing landscape, embrace e-commerce, and provide a

seamless online and offline shopping experience to thrive in the evolving retail industry. By

understanding the challenges and advantages of e-commerce, traditional retailers can position

themselves for success in a highly competitive market.

RESEARCH GAP: -

Though the various studies regarding the retail business, for this research i choose the topic of

impact of ecommerce on retail business. The main objective of the study is to comprehensively

analyze the impact of ecommerce on the economy with the remarkable concentration of the e-

commerce and retailer sector of the business. The research tries to understand and explore the

impact of enhancing e-commerce platforms, steadily capturing the retailer's business, and

reducing the sales bar graph. For this research the data are collected from Nedumpana Grama

Panchayath.
 CHAPTER – 2

REVIEW OF LITERATURE

Vishwasrao and Bosshardt used a theoretical framework developed by Katzand Shapiro

(1987) to examine the ongoing technology adoption behavior of foreign owned and domestic

firms. Firm level data on 1400 medium to large Indian firms from 1989 to 1993 was used to test
the model. Probit and Poisson estimation was used to analyze the data and model. Variables

included in the study are no. of collaboration, nature of collaboration — foreign or otherwise,

firm age for, total assets, total sales, net profit, her findhal index, R&D expenditures by industry

as percentage of sales. Results of the study throw some interesting light on technologies adoption

behavior of foreign firms.In general,its hows that liberalization happened in India after 1991 has

positive impact on technology adoption, but it is found that foreign firms are quick to take

advantage than domestic firms. R &D expenditure is found to be not significant for technology

adoption, firm size (large firms are more likely to adopt) and age of firm are found to be

significant. Also it is found that foreign firms adopt new technology when profits are down, and

doesn’t adopt technology in competitive markets.

Malhotra and Singh studied the determinants of Internet banking adoption by banks in India.

Panel data of 88 banks in India covering the financial years 1997-1998 to 2004-2005 was

collected through CMIE (Center for Monitoring Indian Economy) database .Logistic regression

analysis was used, the dependent variable is categorical with a value of1 if a bank adopted

Internet banking during the study period and 0otherwise.Independent variables included in the

study are firm size, firm age , bank deposits ratio, average wages, expenses(fixed assets

&premise), ROA(Ratio of average net profits to average asset),market share, average number of

branches, percentage of banks adopted Internet banking. The results of the study prove that Bank

type (private), firm size , bank deposits ratio, firm age, market share, average number of

branches, percentage of banks adopted internet banking and expenses, are found to be significant

in adoption decision. Wage and ROA are found to be in significant. This study contributes to the

empirical literature on diffusion off in ancial innovations, particularly internet banking in Indian

context. Most of the study on adoption of technology was related to developed markets like US
and Europe, this study is an important contribution to evolving as it dealt the problem of

technology adoption in developing country context.

Study by Tarafdar and Vaidya examined the factors that determine the organizational

inclination to adopt E-Commerce(EC).The study proposes a framework based on the qualitative

data on four financial firms in India collected through multiple case study design. Face to face

interview was used to collect primary data and existing database, company documents, press

reports and websites are used to collect secondary data. The framework describes two broad

factors— leadership characteristics and organizational characteristics — to explain the influence

of organizational factors on the propensity to employ EC technologies. The study found that both

leadership and organizational characteristic influence EC adoption. It establishes that leadership

characteristics influence adoption of EC technologies in centralized organization and

organizational characteristics influence EC adoption in de-centralized organization. The study

also found that characteristics of Information Systems professional and organization structure

influence E Cad option.

Viswanathan and Pick examined the issue of e-commerce in India and Mexico from the

framework of developing countries as suggested by Tallon and Kraemer. The framework

included critical factors that might impact the diffusion of e-commerce. The factors are

government policy, legal framework, technology infrastructure, relationship with developed

economies and extent of e-commerce usage by individual, corporate and government. The

study’s primary focus is on India. Mexico is analyzed more briefly, and compared with India

based on common international data sets. The analysis and the data presented in this paper

represent a synthesis of data from secondary research and data from interviews conducted with

senior executives in the IT industry in India and Mexico. The study suggests that substantial
effort have to be made to invest the telecommunications infrastructure, and to create a culture of

electronic payments and e-commerce that will support economic growth.

Dasgupta and Sen gupta paper on e-commerce in Indian insurance industry discusses the

features of einsurance in comparison with the traditional offline insurance service. The authors

put forth that e-insurance offers benefits such as reduction in search cost and hidden cost, price

comparison for customer sand benefits such as opportunity to have niche market, first mover

advantage and product bundling for insurance companies going online. Further, it discusses that

status of e-insurance in India is still for gain particularly from the rural markets since the

availability of insurance agent is very less compared to urban markets. The study is conceptual in

nature and offers in sights based on market reports and data from secondary sources.

Dussart (2000) In a world dominated by jargon, we should remember that e-commerce is

shorthand for electronic commerce. What is being considered is process innovation, whereby

technology provides the capability for a reconfiguration of existing business and channel

relationships, and the scope for introductions of new operations. e.g., argues that the Internet will

engender eight concomitant and interrelated “re-volutions” in the business world—defined as re-

vamping management, re-storing control, re-launching the economy, re-configuring offers, re-

structuring markets, re-distributing power, re-defining relationships and re organising channels.

Task Force (2000) This process innovation arises from the ability of the Internet to provide

electronic links between dispersed sources of information, the enhanced collection and use of

real-time data, the replacement of inventory with information, and the changing of traditional

tasks and roles in the distribution channel. The UK Foresight Electronic Commerce consultative

report goes as far as to suggest that “the critical features of the Internet, from a business
perspective, are that it reduces almost to zero the marginal costs of information, communication

and distribution”. This however has to be seen as an over-statement. Whilst some marginal costs

do become almost zero, there is no doubt that other costs increase to take their place. Whilst it is

product-dependent to some extent, distribution costs do not necessarily approach zero in an

Internet channel. Brynjolfsson and Smith (2000) point out that the idea of “frictionless

commerce” being introduced by the Internet is really not accurate.

(Bonnett, 2000). By definition, e-commerce has been thought of as an employing “electronic

communications and digital information processing technology in business transactions to create,

transform, and redefine relationships for value creation between or among organizations, and

between organizations and individuals”

Bharadwaj (2000) defines a firm’s information technology (IT) capability as its “ability to

mobilize and deploy information technology-based resources and capabilities.” Bharadwaj

classified these resources into three categories: the tangible IT resources, the Human IT

resources, and the intangible IT resources. The tangible resources are those components that

comprise the physical IT infrastructure (i.e hardware and software resources). Human IT

resources define there native skills of managers and employees (i. e technical and managerial

skills). The classification of intangible IT- enabled resources includes a business’s knowledge

assets, customer orientation, and synergy.

Karyn &Filson (2001). The whole idea centers on buying or transaction via the internet.

Generally speaking, e-commerce includes the business will effectively monitor it records, it will

be competitive because potential users will be able to place their orders on-line as well as track

the progress of the orders they placed, time is saved, it is reliable and convenient, the concept

will offer the business an opportunity to reach wider markets, e-commerce will not only be used

for transactions but also advertise a firm’s product among others.

Sharma & Gupta (2003) Since the advent of computers, mankind has experienced an

unmatched surge in development of new and cutting edge technologies.Additionally the desire

for organizational effectiveness as well as using it to attain competitive advantage has made the

adoption of these technologies to be deemed paramount in ensuring that organizations do cut

themselves an edge in this competitive business world.

(Coulter & Vogel, 2004). However, there is need for each and every organization to deeply and

extensively consult before embarking in rolling the entire project, this is important as it will

dictate the success and sustainability of the project. One notable technology that has propelled a

number of organizations to greater height is internet-e-commerce

(Nissanoff, 2006). E-commerce is one of the fastest growing industries worldwide and is one of

the most rapidly evolving areas of national and international trade. Using internet to carryout

business has been deemed to be the most current innovation in the world of business and offers

an opportunity to businesses to carryout business through electronics. E-commerce technologies

have provided opportunities for business growth but have also presented the business world with

many challenges.

Satyendra Arya et al. (2015) in their study on "An Impact of E-Commerce Portals on Retailing

in India", The Information Technology has transformed the way of people to do the work and

electronic commerce has unleashed yet another revolution which is changing the way businesses

buy and sell products. The internet gave another boost to e-commerce. Internet marketing or

online marketing refers to advertising and marketing efforts that use the Web and email to drive

direct sales via electronic commerce. Internet is a great medium that can serve as a unique

platform for the growth of retail brands in India. The current web-based models for e-retailing

are part of an embryonic phase preceding an era of rapid transformation, challenge, and
opportunity in Indian retail market. It is not just the metros that are fueling the online scene in

India the demand supply gap in tier 2-3 cities where there is brand awareness but no availability

of products and services is also adding to growth. Online retailing portals such as e-Bay.in, Snap

deal. com, and Naaptol.com are registering anywhere between 40 and 60% of their sales from

rural areas apart from the tier II and III cities. The penetration rate is quite low in comparison to

other countries worldwide; however the number of users is significantly high. The present

scenarios of e-retailing opportunities and its impact, its market, the viabilities and trends etc.,

have been discussed in this research paper.

Maheswara (2016) in his study on "Impact of E-Commerce on Indian Retail Sector", The

Electronic Commerce, or web based business, industry is a standout amongst the most dynamic

segments of the economy. Electronic business, regularly known as E-business or web based

business, is exchanging items or administrations utilizing PC systems, for example, the Internet.

Electronic trade draws on advances, for example, versatile business electronic, production

network the executives, web marketing, online exchange handling, electronic information

exchange (EDI), stock administration frameworks, and mechanized information gathering

frameworks. Current electronic business ordinarily utilizes the World Wide Web for something

like one a player in the exchange's life cycle, in spite of the fact that it might likewise utilize

different advancements, for example, email. Online business is the deal or buy of products or

administrations led over PC organizes by techniques explicitly intended to receive or putting in

of requests. Despite the fact that merchandise or administrations are requested electronically, the

installment and a definitive conveyance of the products or administrations don't need to be

directed on the web. In this paper we learn about the effect of E-business on Indian retail

division.
Jamal Hasan (2019) in her study on "E-commerce and its impact on retail stores in Slovakia",

Ecommerce is the purchase and sale of goods and services over the Internet. It assumed that

despite the ever expanding online transaction, the retail shops would not disappear. Various

surveys have shown that customers still prefer to shop in stores and the number of purchases is

increasing. Currently, they mainly use combinations of ecommerce and retail stores. Before the

final purchase in the store, customers prefer to find out all the necessary information via the

Internet. In the case of online shopping, customers prefer to look at the product in a retail shop

and then purchase it via e-shop. In this paper, we decided to verify my hypothesis. The article

aimed to determine the impact of e-commerce on retail stores.

Kelvin Cheng (2021) in his study on "Analysis of the development of e-commerce in the retail

industry in recent years", the trend of e-commerce in the retail industry continues to increase at a

rapid pace. With the growth of retail e-commerce, it has become more important to various

stakeholders. Ecommerce will take an important role in the retail industry; it creates a channel of

international business, which expects to become a mainstream business model. In recent years,

the effects across mobile technologies, smart phone penetration, and Covid-19 pandemic

accelerate the development of retail e-commerce. It has been influencing economic growth and

providing opportunities for enterprises to expand, but it has also revealed many challenges and

impacts to organizations that focus on e-commerce business. This paper mainly analyzes the

factors causing e-commerce development and the economic impacts in the retail industry based

on the statistical data and relevant research study, to evaluate its implications on today’s

economic and business situations.

 CHAPTER – 3

RESEARCH METHODOLOGY
3.1 RATIONALE:

Most of the earlier studies on E-Commerce adoption were on B2C, C2C and C2B transactions.

There are very few studies that centers on B2B in developing countries. Extensive research has

been done on E-Commerce to demonstrate the tremendous benefits it offers to marketing of

various products and various businesses. However, online market especially in developing

countries have not completely adopted E-Commerce solutions. Influenced factors of E-

Commerce in developing countries like India, have not been sufficiently researched. Previous

studies that have been conducted in the area of E-Commerce did not focus on factors influencing

E-Commerce adoption by retailers and failed to establish the relationship between E-Commerce

adoption in retailers’ point of view and consumers’ point of view. Further, there is no research on

the analysis of factors that influence E-Commerce adoption and its impact on Business

Performance of retailers in India particularly in selected three cities of Andhra Pradesh. Thus,

there is a need for research to improve the understanding of the factors that influences the E-

Commerce adoption by retailers and also identify the impact of E-Commerce adoption on the

Business Performance of retailers.

This research study focuses mainly on reducing the cost of retailers through implementing e-

commerce. To have an online store it is not necessary that to have all products presented in a

physical space. In fact, there are different companies that operate online where they only show

all their inventory through their electronic commerce platform. The study helps businesses go

global, which helps the retailers to put their products for sale anywhere in the world. They will

not have the explicit need to travel to where you are to see and what offer to have. Furthermore,

e-commerce eliminates all kinds of geographical and linguistic tango barriers. This research

helps to reduce the cost, e-commerce can be done with fewer overheads & fewer risk starting an
online store can mean significantly lower startup costs as compared to brick-and-mortar retailer.

E-commerce offers better marketing opportunities. ecommerce site is the best marketing tool that

would ever have. The marketing of a product is through various online tools like social media

marketing, email marketing, search engine marketing etc. This study implies that e-commerce is

easier and more convenient. People’s lives are hectic, getting to a physical store means taking a

lot of time and effort. So, starting an online store that means the online parties fit into their

customer busy lives, making the products they want accessible when they want them. To analyze

the study e- commerce personalize shopping experience. There is one of the clear advantages of

having an online store, is to be able to know what customer does. Physically it would be very

uncomfortable for a potential buyer to enter the store.

3.2 STATEMENT OF THE PROBLEM:

A conscious awareness of the influencing factors of E-commerce adoption also becomes vital for

retailers to suitably address the pertinent issues and to move forward in order to identify the

impact of E-commerce on businesses performance. In addition to this, E-commerce applications

proves to be an economic affair for retailers to run their business, support new products, develop

networking, collect information, timely and effective deliver of products and services and to

identify potential business opportunities. The present study is an effort to analyze the factors that

are influencing E-commerce adoption by retailers and its impact on their business performance

in Nedumpana panchayath.
3.3 OBJECTIVES OF THE STUDY:

1. To study about the impact of ecommerce on retail business.

2. To analyze the struggles faced by retail business after arrival of ecommerce.

3. To reach new customers, especially those that may have been difficult to access to costly to

serve, or not valuable enough to pursue within a firm’s existing business model.

4. To take costs out of serving customers. Some components of the digital experience—such as

discovery, evaluation and support—can be more cost-effective and deliver better results than

traditional delivery mechanisms.

5. To create a differentiated customer experience to capture market share.

3.4 RESEARCH QUESTION:

1. What is the impact of E-commerce on retail business?

2. What are the struggles faced by retail business after the arrival of E-commerce?

3.5 Hypothesis:

H0: E-commerce had a negative impact.

H1: E-commerce not had a negative impact.

3.6 SCOPE OF THE STUDY:

Online marketing is very important sector to the economies of all countries, including the

developing countries like India. Many companies are already demonstrating their business

strength by grasping opportunities offered by Electronic Commerce (e commerce). With an

optimized and well developed website or app, companies can not only achieve the desired goals

but also offer round the clock convenient services to their customers that can boost their

business. Therefor the cutting edge for marketing today is e commerce. The driving forces of e

commerce have been internet, growing standards of living, availability of wide range of

products, busy lifestyle of people, evolution of many online market places like Amazon, Flip

kart, Snap deal, Metro Wholesale, Paytm Mall, Udaan and ShopX etc. With the rapid

advancement in the internet and the infrastructure, E-commerce is becoming more and more

popular. Due to the internet’s accessibility, thousands of retailers across India can view the

website of any product or app at any time, meaning that for those looking to expand their

businesses and reach out to a larger audience; they have many more opportunities to do so.

Compare the amount of people one can reach through a website or app to the amount they can

reach through a high street store or local advertising, there’s no reason of any retailer should not

look at taking his business online if he is looking to improve his reach. Thus, the arena of e-

commerce covers a wide range of applications, such as electronic marketing, customer support

services, electronic ordering and electronic payment systems. E-commerce enhances efficiency

of marketing and business activities and hence, E-commerce has gripped significant importance

in the recent years. This significance has led to vital progress towards strategies, requirements,

growth and development of E-commerce applications. It was stated in the National Report on E-

commerce Development in India during the year 2019; the online marketing which adopted
advanced level of digital technology has experienced annual revenue growth which is higher

than those of traditional market.

This study is of great importance considering that e-commerce has become a necessity channel in

purchasing and selling the goods and services to remain in the competitive market. Retailers will

be able to know the models and developments in products and services, and they can be part of

the future developments in the industry by actively sharing their feedback. Also, they can enjoy

the benefit by making use of the promotional products being offered by the online platform

through various online company websites. Technological advancement has become the strength

of a dynamic economy. The recent development of E-commerce has provided suitable ground for

improvement of the marketing performance of various businesses. Online companies are reaping

the paybacks resulting out of E-commerce as they enlarge the geographical coverage ensuring a

larger potential marketplace into which they can sell their products and services. This research

study focuses mainly on reducing the cost of retailers through implementing e-commerce. To

have an online store it is not necessary that to have all products presented in a physical space.

3.7 RESEARCH METHODOLOGY:

The success of a research mainly depends on the methodology on which it is carried out. The

applied methodology will improve the validity of findings. The research methodology describes

the method of data collection, sample size, population and sampling procedure and so on. In this

there are so many steps that are generally adopted by a researcher in studying the research

problem along with the logic behind them.

3.7.1 Research Design:

The research design simply is the framework or plan for a study that guides. The collection and

analysis of data function of a research design is to ensure that the required data are collected

accurately and economically. For this study exploratory type of research was used. So, an

extensive survey is conducted to serve the purpose. The objective of exploratory research is to

generate new ideas based on the views and opinion of the employees and customers.

3.7.2 Source of Data

3.7.2.1 Primary data

Primary data are those collected for the first time for the particular purpose and thus, original in

character. For this study primary data was collected through observation, interviews,

questionnaire and by personal visit. In this study primary data is collected through questionnaire.

3.7.2.2 Secondary Data

Secondary data are those which have already been collected for their purpose, which includes

data collected from previous annual report, company brochures etc. For this study, secondary

data was collected from magazines, company websites etc.

3.7.3 Sample Design

A sample is a small proportion of a population selected for observation and analysis. A good

sample of a population is one, which will produce the characteristics with great accuracy. For

this study a sample of 100 respondents was selected from Nedumpana grama panchayath. The

selection was based on random sampling techniques. Random sampling helps to avoid bias and

ensure greater representation.

3.8 DATA COLLECTION TOOLS:

Data has been collected by means of a properly structured questionnaire.

3.9 STATISTICAL TOOL USED FOR DATA PRESENTATION

A researcher must be familiar with the most important statistical approaches for doing research.

This will aid in the implementation of a well-designed study that yields accurate and valid data.

Incorrect statistical approaches can result in erroneous findings, mistakes, and reduced papers

importance. Poor statistics can lead to immoral behavior. As a result, proper statistical

understanding and the right application of statistical tests are essential. A thorough understanding

of fundamental statistical methods will go a long way toward enhancing study designs and

creating high quality medical research that may be used to develop evidence-based guidelines.

The data is analyzed and interpreted with the help of simple statistical tools like percentage and

average method keeping in view with the objectives of study and has been presented with the

help of bar diagram, pie chart, line chart etc.

Data collected will be analyses, interpreted and presented in under mentioned statistical series

for better understanding

 Table representation

 Graphical Representation

 Charts and Diagrams

3.10 SOFTWARE USED:

Microsoft Word and Microsoft Excel.

3.11 CHAPTERISATION:

Chapter 1 – INTRODUCTION:

This chapter introduces the project report.

Chapter 2 – REVIEW OF LITERATURE:

This chapter contains similar studies.

Chapter 3 – RESEARCH METHODOLOGY:

This chapter contains rationale, statement of the problem, objectives of the study, research

question, hypothesis, scope of the study, research methodology, statistical tool used for data

presentation, use of software.

Chapter 4 – DATA ANALYSIS AND INTERPRETATION

This chapter is devoted to the analysis and interpretation of the collected data.

Chapter 5 – FINDINGS, CONCLUSIONS AND RECOMMENDATIONS:

This chapter brings out the summary of the findings, suggestions, and conclusion with regard to

the study.
 CHAPTER – 4
DATA ANALYSIS AND
INTERPRETATION
INTRODUCTION

Data analysis means critical examination of the data for studying the characteristics of the object

under study and for determining the patterns of relationship among the variables relating to it,

using both quantitative and qualitative methods .It is through systematic analysis that the

underlining features of the data are revealed and valid generalization are arrived at .Data analysis

summarizes large mass of data into understandable meaningful form .There is no clear cut

dividing line between analysis and interpretation .through analysis an attempt is made to study

the collected data and derive result while through interpretation we draw conclusion based the

result obtained .analysis is not complete without interpretation and interpretation cannot process

without analysis .so both are interdependent .Interpretation refers to the technique of drawing

inference from the collected facts and explaining the significance of those inference after an

analytical and experimental study .It is a search for broader and more abstract means of research

findings .Interpretation analyses the abstract relation in more concrete terms and tried to unfold

the reason for the existing type of relation or findings .It relates the empirical findings with

theoretical principles and help to draw a number of useful inferences. The prime task of

interpretation is to bring to the surface the real importance of the findings. An interpretation

explains the findings of the analysis in objective terms.

This chapter analyses and interprets the impacts of e commerce on retail business. The collected

data are presented, analyzed, described and interpreted in a systemic manner.

TABLE 4.1
BUSINESS OF RESPONDENTS
BUSINESS FREQUENCY PERCENTAGE
(%)
GROCERY 37 37

OTHERS 33 33

ELECTRONICS 18 18
FURNITURE 12 12

TOTAL 100 100

FIGURE 4.1
BUSINESS OF RESPONDENTS
INTERPRETATION

The table shows that majority of the respondents (37%) are having the business of grocery,

whereas 33% are doing other types of business and the remaining 12% of them are doing

furniture.

TABLE 4.2

IMPACTS OF SALES

FREQUENCY PERCENTAGE
IMPACT OF SALES (%)
YES 80 80

NO 20 20

TOTAL 100 100

FIGURE 4.2
 IMPACTS OF SALES

INTERPRETATION

The table shows the 80% of respondents were agreeing that the arrival of e commerce was
inversely affected by their sales whereas, the remaining 20% shows that there is no change in the
volume of sales.

TABLE 4.3
EFFECTS OF SALES

SALES EFFECTS FREQUENCY PERCENTAGE

0 – 25 36 36

26 – 50 38 38

51 – 75 18 18

76 – 100 8 8

TOTAL 100 100

 FIGURE 4.3
EFFECTS OF SALES

INTERPRETATION

The table shows that the effects of sales are36% at the first stage and 38% at the second stage.
Which means the sales are increasingly affected up to 50%. Then 18% at the third stage and 8%
at the fourth stage.

TABLE 4.4
E- COMMERCE STORE

OPENING E- COMMERCE STORE FREQUENCY PERCENTAGE

YES 20 20

NO 80 80

TOTAL 100 100

FIGURE 4.4
 E- COMMERCE STORE

INTERPRETATION

The table shows that the majority of respondents (60%) are not opening their store at online

platforms. Whereas the remaining (40%) are open their store at online.

TABLE 4.5
POTENTIAL OF E- COMMERCE

POTENTIAL OF E- COMMERCE FREQUENCY PERCENTAGE

FOR FUTURE
YES 18 18

NO 82 82

TOTAL 100 100

 FIGURE 4.5
POTENTIAL OF E- COMMERCE

INTERPRETATION

The table shows that the 82% of respondents were suggested that the e commerce is not potential

for future whereas, the 18% of respondents were suggested that the e commerce is mush

potential for future.

TABLE 4.6
EFFECTS OF PROFITS

PROFITS AFFECTED BY FREQUENCY PERCENTAGE

E- COMMERCE
INCREASE 30 30

DECREASE 70 70

TOTAL 100 100

 FIGURE 4.6
EFFECTS OF PROFIT

INTERPRETATION

The table shows that the arrival of e commerce was affected by their profits at 60%. Whereas the

remaining 40% shows the same profits.

TABLE 4.7
BUYING THINGS FROM ONLINE
THINGS BUYING FORM FREQUENCY PERCENTAGE
ONLINE
YES 18 18

NO 82 82
 TOTAL 100 100

FIGURE 4.7
BUYING THINGS FROM ONLINE

INTERPRETATION

The table shows that the majority 82% of respondents were not buying things/ goods from online

platforms. Whereas, the 18% of respondents were buy goods from online platforms.

TABLE 4.8
IMPORTANCE THAN RETAIL BUSINESS

ADVANTAGEOUS THAN RETAIL FREQUENCY PERCENTAGE

BUSINESS
YES 24 24
 NO 76 76

TOTAL 100 100

FIGURE 4.8
IMPORTANCE THAN RETAIL BUSINESS

INTERPRETATION

The table shows that the 76% of respondents suggested that the e commerce is less advantageous

than retail business. Even if, the remaining 24% were suggested that the online business is more

advantageous than retail business.

TABLE 4.9
CUSTOMER BEHAVIOUR
 CHANGE IN THE BEHAVIOUR OF FREQUENCY PERCENTAGE
CUSTOMER
YES 78 78

NO 22 22

TOTAL 100 100

FIGURE 4.9
CUSTOMER BEHAVIOUR

INTERPRETATION

The table shows that after the arrival of e commerce it changes the customer behavior
increasingly at a rate of 78%. Whereas, the remaining 22% of respondents suggests that there is
no change in customer behavior.

TABLE 4.10

HOME DELIVERY SERVICE

 PROVIDES HOME DELIVERY FREQUENCY PERCENTAGE
SERVICES (%)
YES 70 70

NO 30 30

TOTAL 100 100

FIGURE 4.10
HOME DELIVERY SERVICE

INTERPRETATION

The above table shows that the 70%of respondents were providing home delivery services.

Whereas, the remaining 30% were not providing home delivery services.

TABLE 4.11
MAINTAINING OF SALES
 SALES MAINTAINING FREQUENCY PERCENTAGE
(%)
PROVIDING QUALITY OG GOODS 42 42

MORE VARIETIES OF GOODS 26 26

DECREASE THE PRICE OF GOODS 26 26

PROVIDING ADVERTISEMENT 6 6
FACILITIES
TOTAL 100 100

FIGURE 4.11
MAINTAINING OF SALES

INTERPRETATION
The above table shows that for maintaining the sales the 42% of respondents were providing

quality of goods whereas, the 26% were keep more varieties of goods and 26% were decrease the

price of goods and remaining 6% were the facility of advertisements.

TABLE 4.12
AFTER SALES SERVICE
 AFTER SALES SERVICE FREQUENCY PERCENTAGE

YES 80 80

NO 20 20

TOTAL 100 100

FIGURE 4.12
AFTER SALES SERVICE

INTERPRETATION

The table shows that the 80% of respondents were providing after sales services whereas, the

20% were not providing after sales services.

TABLE 4.13

REASON FOR ONLINE SHOPPING

 ONLINE SHOPPING FREQUENCY PERCENTAGE

EASY PAYMENTS 38 38

SAVING OF TIME 30 30

PRICE OF GOODS 18 18

WIDE RANGE OF PRODUCTS 14 14

TOTAL 100 100

FIGURE 4.13
REASON FOR ONLINE SHOPPING

INTERPRETATION

The table shows that the reason for online shopping are 38% based on for easy and quick

payments whereas, the 30% were of saving of time and the 18% were for price of the products

and the remaining 14% for providing wide range of products.

TABLE 4.14
CUSTOMER SATISFACTION
 SATISFACTION OF CONSUMER FREQUENCY PERCENTAGE

YES 40 40

NO 60 60

TOTAL 100 100

FIGURE 4.14
CUSTOMER SATISFACTION

INTERPRETATION

The above table shows that through online shopping consumer can’t making satisfaction at 60%

whereas, the remaining 40% of consumer get the same satisfaction.

TABLE 4.15

SUPREMACY OF E- COMMERCE
 SUPREMACY OF E- COMMERCE FREQUENCY PERCENTAGE

YES 22 22

NO 78 78

TOTAL 100 100

FIGURE 4.15
SUPREMECY OF E- COMMERCE

INTERPRETATION

The table shows that the majority of respondents 78% suggested that the online business is not
supremacy for future. Whereas, the remaining 22% shows that the online business is supremacy
for future.

TABLE 4.16
CHANGE OF BUSINESS
 CHANGE OF BUSINESS FREQUENCY PERCENTAGE
(%)
YES 22 22

NO 78 78

TOTAL 100 100

FIGURE 4.16
CHANGE OF BUSINESS

INTERPRETATION

The above table shows that the 78% of respondents were not convert their business to online.

Whereas, the remaining 22% of respondents were convert their business to online.
 CHAPTER – 5
FINDINGS CONCLUSIONS
AND
RECOMMENDATIONS

FINDINGS
 Majority of the respondents were doing grocery at 37%.33% of respondents were doing

other types of business.18% of respondents were doing the business of electronics and the

remaining 12% were doing furniture. All the respondents were doing the different types

of business.

 The arrival of e commerce was affected by sales at 80%. The remaining 20% were not

affected by sales.

 The sales were affected at a percentage of 36 at the first stage. At the second stage at 38%

and at the third stage at 18% and the remaining 8% at the fourth stage.

 Majority of the respondents (80%)were not willing to open an e commerce store to

maintain their sales. Whereas, the 20% of respondents were willing to open online store.

 The 82% of respondents were that the online business is not potential for future.

Whereas, the remaining 18% were suggested that the online business is potential for

future.

 The arrival/coming of e commerce were affected by the profits of the respondents. Due to

the coming of online business the profits became decreased at 70%. The remaining 30%

were increased.

 The 82% of respondents were not buying goods from online platforms. The remaining

18% were buying goods from online platforms.

 The majority of respondents (76%) were suggested that the e commerce is not

advantageous than retail business. But the 24% were suggested that the e commerce is

more advantageous than retail business.

 The 78% respondents were suggested that due to the coming of online business changes

the customer behavior. The remaining 22% were suggested that there is no change in

consumer behavior.

 The 70% of respondents were providing home delivery services. Whereas, the 30% were

not proving home delivery services.

 The majority of respondents (42%) were providing quality of goods for maintaining the

sales.26% were suggested that they were keeping more varieties of goods. 26% were

suggested that they were decrease the price of goods and the remaining 6% were

providing advertisement facilities.

 80% of respondents were providing after sales services. The remaining 20% were not

providing after sales services.

 38% of respondents were suggested that the reason for online shopping is easy payments.

The 30% were suggested that the reason is for saving of time. 18% were price of goods

and the remaining 14% were suggested that the wide range of products.

 The 60% of respondents were suggested that through online business the customer can’t

get satisfaction. The 40% were suggested that the customer can get satisfaction through

online business.

 78% of respondents were suggested that the online business is not supremacy for future.

The 22% were suggested that the online business is supremacy for future.

 Most of the respondents (78%) were not change their business to online. The 22% were

change their business to online. Majority of them were not open their business to online.
RECOMMENDATIONS

 Through the arrival of e commerce/online business had become an inverse affect by the

retailers. It also affected their sales as well as profits. In order to increase the sales the

government has to take effective steps for helping the retailers.

 To increase their sale the retailers should provide quality goods at a reasonable price to

the customers.

 The retailers must understand their customers and produce the products according to the

wills of customer. Learning the customer challenges, desires, fears and concerns can help

you sell a product or service that meets their needs.

 Use a funnel model in their sales, which means Understanding the steps that a consumer

takes when they're shopping for a specific product or service can help sales managers and

company leaders to create sales processes that increase conversion.

 Retailers give a variety of payment mode. For examples an online boutique might ask

customers whether they prefer to use credit cards or an online payment app.

 The another option is for offer discounts, the retailers provides two for the price of one,

buy one get one offer, a free gift with a purchase. Offering periodic specials and

discounts can also encourage repeat purchases. provide a money back guarantee.

 Providing a money back guarantee can gain a customer’s trust and encourage them to buy

a company’s products or enroll in a subscription service.

CONCLUSION

The research tries to understand and explore the impact of enhancing e-commerce platforms and

steadily capturing the retailer's business, and reducing the sales bar graph. It also reveals from

the research that only the essential items were raised in their production, like grocery Houseful

supply medicine and related other goods. Simultaneously, discretionary spending is estimated to

reduce with the valley shape in the bar graph. The consumer behavior is also influenced such as

they avoid going to physical shopping, entertainment like theatre’s, parks, and so on. People

reduce their spending on luxury items like electronic gadgets, vehicles, cosmetic products, and

personal care services. Consumption of household utility like grocery, nutritional intended food

material, and therapeutic goods increased.

The objective of this study is the impact of e commerce on retail business. Data collection for

this study was done using primary and secondary sources. Questionnaire was used to collect

primary data while relying on various various study reports and internet browsers as secondary

sources. For this research 100 business respondents in Nedumpana Panchayath were selected to

conduct the study. From this study it was understood that the arrival of online business adversely

affected by the retailers. If the number of online business promoted it will affected by the lives of

retailers. But through online business the customers didn’t get a satisfaction. Because through

online platforms they didn’t see or can’t touch or feel the product. This also create consumer

dissatisfaction. So that the retailers not willing to change their business to online.

According to this study it is clear that the null hypothesis (H0: E-commerce had a negative

impact) is accepted.
LIMITATIONS
1. Time factor was the main limitation for the study as the project was restricted to small

period.

2. The sample taken for the research concerned only for 100 respondents. The study is

based on the opinion of respondents (questionnaire) and these can be biased.

3. The present data is based on the reliability of the primary data. The sample units were

selected from the population having multidimensional features of a large group.

4. The limited time and the matter of monetary is a constraint of the study.
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10. European Commission (2004), challenges for the European Information Society Beyond

2005, COM (2004) 757 final, Brussels.

 APPENDIX

QUESTIONNAIRE FORM

1. Name.…

2. Age

UPTO 25 Years

26 TO 50 Years

51 TO 75 Years

76 Above

3. In which retail business do you have

Grocery

Electronics

Furniture

Others

4. Has the advent of e- commerce made an impact on your business

Yes

No

5. How much has your sales decreased with the advent of e- commerce

0-25%

26 – 50%

51 – 75%

75 -100%
6. Did you also want to open an e- commerce store for maintain your sales

Yes

No

7. Do you think e- commerce has much potential for future

Yes

No

8. How e- commerce has affected your profits

Increase in profit

Decrease in profit

9. Do you buy things from online platforms

Yes

No

10. Is there e- commerce more advantageous than retail business

Yes

No

11. Is there any change in customer behavior after the arrival of e- commerce

Yes

No
12. Are you providing home delivery services

Yes

No

13. For maintaining the sales which step are you choose

Providing quality of goods

Keep more varieties of goods

Decrease the price of goods

Providing advertisement facilities

14. Are you providing after sales services

Yes

No

15. In your opinion what is the reason for online shopping

Easy payment

Saving of time

Price of goods

Wide range of products

16. Is e- commerce can make customer satisfaction

Yes

No
17. Do you think e- commerce will supremacy in future

Yes

No

18. Would you change your business to online

Yes

No