SNAPDEAL

Group Members: -
Sr no. Name Roll No.

1 Swapnil Manjrekar 67

2 Vaibhav Patil 81

3 Nishchal Patni 82

4 Bhavesh Poojari 87

5 Kiran Ankith Rai 90

 Introduction
Type of business - Ecommerce
Founded- 2010.
Headquarters- New Delhi, India
Founders- Kunal Bahl and Rohit Bansal
Services- Online Shopping
CEO- Kunal Bahl
Parent Company - Jasper Infotech Pvt Ltd.
 Introduction to the Market
The e-commerce has transformed the way business is done in India.
The Indian e-commerce market is expected to grow to US$ 200 billion
by 2026 from US$ 38.5 billion as of 2017.
Much growth of the industry has been triggered by increasing internet
and smartphone penetration.
The ongoing digital transformation in the country is expected to
increase India’s total internet user base to 829 million by 2021 from
604.21 million as of December 2018.
 SnapDeal Business Model Sequence
1. List Sellers – Today SnapDeal claims of having 100,000+ Sellers on
its platform.
2. Get Sellers to become Active – By Listing of the Products
3. Sellers Agree to the Terms & Conditions of SnapDeal and agree on
a selling commission on every order [Ranges from 5-30%of the
Sale Value depending on the item listed to be sold.]
4. Whenever any order is put up on SnapDeal by a customer,
SnapDeal passes that to the seller and arranges for the pickup and
delivery [if fulfilled by SnapDeal] or else the Seller directly ships it
to the customer.
5. At the end of a certain pre – agreed period of settlement of
payments to Sellers, SnapDeal aggregates the total sale achieved
by a particular seller, and after deducting the sale commission and
service tax, they wire transfer the rest of the money to the seller.
 Things that went against them
1. Failed Strategy.
Snapdeal tried to expand at a higher rate to get ahead of the
competition later they found it difficult to sustain the growth rate
and fired around 5000 employees.
2. Missing Seller Arm.
Unlike Flipkart & Amazon who sell certain products directly to the
customer for enhanced customer experience snapdeal doesn’t
have any selling arm
3. Failed Shopping.
Snapdeal bought 12 companies/start ups during the year 2015
which resulted in cash crunch as many of these couldn’t generate
revenue that snapdeal expected
4. Struggle in Raising Funds.
As there were many incidents of fraud conducted by the seller this
affected the brand image negatively , due to which snapdeal
found difficult to raise fund.
5. Not having products EXCLUSIVELY sold on their Website.
(Like: Oneplus phones on Amazon, Motorola Phones on Flipkart).
 Acquisition by Snapdeal
Year Company Business

June 2010 Grabbon.com Coupons & Deals 1

marketplace
April 2012 esportsbuy.com Sports goods retailer 2

May 2013 Shopo.in Online marketplace for 3

Indian handicraft
products
April 2014 Doozton.com Fashion products 4
discovery site
December 2014 Wishpicker.com Gifting recommendation 5
site
January 2015 Smartprix.com Phone & Laptop 6
Comparison Site
February 2015 Exclusively.in Indian-inspired luxury 7
lifestyle retail Site
March 2015 Gojavas.com Logistics 8

March 2015 Unicommerce Online multi-channel e- 9

commerce order
fulfillment platform
March 2015 RupeePower Digital financial products 10
distribution platform
April 2015 Freecharge m-Commerce payments 11
firm
May 2015 MartMobi Mobile technology 12
startup
 Rectify the Previous Mistakes
1. Sell/Replace the Companies/Websites that are not required.
Some of the companies/Start-ups are not required snapdeal can
sell them to get some cash as it is required the most right now.

2. Add a Selling Arm(Like WS Retail, Cloudtail).

Adding a selling arm will help them immensely as they could serve
their customers directly rather than depending on the sellers who
might even cheat the customer.

3. Improve Website User Interface (UI) like they did with their App.
Snapdeals App on Android Playstore has crossed 100 Million
downloads & has a better UI/UX compared to their Website.
4. Collaborate / Partner with brands for Exclusive Products/Deals for
their Customers.
Oneplus phones are only availaible on Amazon, Motorola is only
available on Flipkart. Like this snapdeal can collaborate with
certain brands to sell their products exclusively on their
Marketplace.

5. Raise Funds.
 Payment System
Issues & How to Overcome Them:-
Technical Problem –
Initially a lot of users found their payment transaction to fail
while paying Snapdeal through Debit Card , this can be sorted by
partnering with a company like razorpay.
Product Return –
Snapdeal can Refund the amount of returned goods by
transferring it through UPI / NEFT this will not only save time but also
save money that they pay to deliver cheque.
Snapdeal Wallet –
Wallet feature will make be useful for frequent buyers to buy
hassle-free.
Collaboration With a Bank (For Eg. ICICI Bank)-
They can tie-up with a bank to make readily available EMI for the
account holders like AXIS bank did for Flipkart.
Payment On Delivery (Card/UPI)
 Turnaround Strategies
Sign MoU with Indian Post
Indian post has reach almost in every village. Include cash on
delivery system in the MoU. Also specify return collection policy.

Improved Customer Care

Start of new advanced BPO to answer customer calls. Quick
response to customer queries. 100% customer redressal.

Screening of business partners

Recognize the business partners who provide faulty products and
exclude them.

Regional Focus
Concentrate on particular region and provide demand according
to it.

More emphasize on customer satisfaction than profit earning for 3

years.
 Technological Enhancement
Blockchain
What is Blockchain?

If this technology is so complex, why call it “blockchain?” At its most

basic level, blockchain is literally just a chain of blocks, but not in the
traditional sense of those words. When we say the words “block” and
“chain” in this context, we are actually talking about digital information
(the “block”) stored in a public database (the “chain”).

“Blocks” on the blockchain are made up of digital pieces of information.

Specifically, they have three parts:

Blocks store information about transactions like the date, time, and
dollar amount of your most recent purchase from Amazon. (NOTE: This
Amazon example is for illustrative purchases; Amazon retail does not
work on a blockchain principle)

Blocks store information about who is participating in transactions. A

block for your splurge purchase from Amazon would record your name
along with Amazon.com, Inc. Instead of using your actual name, your
purchase is recorded without any identifying information using a
unique “digital signature,” sort of like a username.

Blocks store information that distinguishes them from other blocks.

Much like you and I have names to distinguish us from one another,
each block stores a unique code called a “hash” that allows us to tell it
apart from every other block. Let’s say you made your splurge purchase
on Amazon, but while it’s in transit, you decide you just can’t resist and
need a second one. Even though the details of your new transaction
would look nearly identical to your earlier purchase, we can still tell the
blocks apart because of their unique codes.
While the block in the example above is being used to store a single
purchase from Amazon, the reality is a little different. A single block on
the blockchain can actually store up to 1 MB of data. Depending on the
size of the transactions, that means a single block can house a few
thousand transactions under one roof.

Uses of Blockchain
Payments. Cryptocurrencies such as bitcoin use a blockchain to record the
transactions involving that cryptocurrency. The cryptocurrency inherits those same
secure transaction benefits associated with the blockchain without having to involve a
middleman — banks, payment processors — which many mainstream currencies and
transactions require. This takes significant cost out of the transaction, making bitcoin
and other cryptocurrencies generally cheaper for both merchants and consumers.

Supply chain. Reducing the cost and complexity of the supply chain has become a key
use for blockchain. Many of the largest retailers have adopted blockchain for that
purpose, or they are testing it.
Most of these retailers use the blockchain to eliminate the paper and manual work
associated with international product shipping. For example, data from a bill of lading
for cargo shipments can be manually placed on the blockchain at each stage of the
supply chain or automatically entered, eliminating the lengthy and expensive
administrative process of approvals and receipt guarantees. This allows all participants
to track the shipment through its journey, verify the product information (such as pallet
weight) at each step, and know that the data is accurate and trustworthy.

For smaller merchants, there can be similar opportunities for eliminating cost, but it
may not be worth the effort to get your suppliers blockchain-enabled.

Channel expansion. Blockchain and cryptocurrency have brought a wave of

decentralization to ecommerce, creating marketplaces that allow anyone to offer
products for sale. Many of these marketplaces focus on specific categories. Rare Bits is
a marketplace for crypto-collectibles (one-of-a-kind digital goods). Wax is for virtual
game items. More general marketplaces include OpenBazaar and BitBay.

Machine Learning
Machine learning is an application of artificial intelligence (AI) that
provides systems the ability to automatically learn and improve from
experience without being explicitly programmed. Machine learning
focuses on the development of computer programs that can access
data and use it learn for themselves.
The process of learning begins with observations or data, such as
examples, direct experience, or instruction, in order to look for patterns
in data and make better decisions in the future based on the examples
that we provide. The primary aim is to allow the computers learn
automatically without human intervention or assistance and adjust
actions accordingly.
Uses
Segmentation, Personalization, & Targeting
E-commerce websites suffer a degree of separation from their
customers. In person, a salesperson interacting with a customer
quickly takes in what they are saying, their body language,
behavior, and many other factors in order to help the customer.
In effect, the salesperson segments and targets, and personalizes
the customer’s experience to get them to buy.
Pricing Optimization
Pricing is important. Online pricing is critically important. You
can’t just rely on a set markup rate or even the local market price
to win the sale. It’s easier than ever to compare prices from one
competitor to another with just a few clicks. And shoppers aren’t
afraid to get a better deal.
Fraud Protection
E-commerce companies are susceptible to fraud. Chargebacks are
just the beginning of the negative consequences of fraud. In some
cases, a damaged reputation can permanently tarnish a
company’s reputation.
Product Recommendations
Amazon has proven that product recommendations work. Their
Recommendation Engine is responsible for 35% of its sales. But it
takes a lot of computing power to find the right patterns in
product sales and shopping behavior.

Artificial Intelligence

 Retarget potential customers

 Create a more efficient sales process
 Create a new level of personalisation across multiple devices
 Provide a personal touch with chatbots
 Implement virtual assistants
 Integrate with everyday household items
 Improve recommendations for customers
 Introduce virtual personal shoppers
 Tackle fake reviews