Report on KartMarket: Analyzing an E-Commerce Business Startup

This report provides a comprehensive overview of the KartMarket e-commerce business startup. It begins with an introduction to e-commerce and presents KartMarket as a new online retail venture. The report details KartMarket's features, including its app, grocery service, reordering options, paym...Read More

CREATING AN ECOMMERCE BUSINESS 1
Name of the topic: CREATING AN ECOMMERCE BUSINESS
Student Details:

CREATING AN ECOMMERCE BUSINESS 2
Introduction
E-Commerce business is the biggest evolving inclination in today’s business world and
dramatically changing the ways of purchasing and selling the products ( Laudon & Traver,
2018). In the following paper, the startup of the new E-commerce business has been explained.
E-business is very hard and difficult to commence. Anyone who starts a business has some
needs, which are to be considered before opening of the business. The Name of the E-Commerce
business is “KartMarket” and the website of this business is “KartMarket.com”. The business
carries online buying and selling of various product needed by the consumers. It offers different
features to assist the necessities and wants of our linked customers. Here are some of the
features, which are obtainable by KartMarket:
 KartMarket App: The consumers can shop the necessities anytime, from anywhere from
the palm of their hands.
 KartMarket Grocery: Fresh groceries are available online, having the pickup of the
same day.
 Stress-free Reorder: The customer is free to reorder their favorite products online at
KartMarket or KartMarket.com.
 KartMarket Pay: This facility offers the consumers to pay for the purchased products
from their mobile services, without reaching their wallets.
 Discount on pickups: Order online and pick from the stock directly for inferior prices.
 Free Two day shipping: Two days shipping will be free on orders of $30 or more.
After the commencement of the business, KartMarket faced competition from various
competitors such as Amazon, Alibaba, The Home Depot, IKEA, COSTCO wholesale, eBay,
JD.com etc. Amazon is the biggest key competitor of KartMarket in the E-commerce business.
The strengths and weakness of Amazon is been explained further so that KartMarket can build a
plan by keeping all the competitors and their value in E-business ( Jurevicius, 2019).
Strengths of Amazon:
 As the world’s largest online retailer, Amazon develops its strengths form a three
prolonged theory of differentiation, cost leadership and focus. These helped the company
to reap the gains and stakeholders develop value for the company.

CREATING AN ECOMMERCE BUSINESS 3
 One of the significant strength of Amazon is the fulfillment of the required customer
needs by the use of distribution systems and superior logistics.
Weakness of Amazon:
 By providing free shipping, Amazon is in risk for losing the margins and is not able to
control cost because of this strategy.
 As the online retailer, the focus on online vending might “come in the way” of its growth
plans predominantly in developing markets.
Because of the high competition in the market, KartMarket follows its mission and vision
statement by the use of cost leadership strategy.
KartMarket mission statement: Mission of this company is “to protect money of the customers,
in order to improve their living.” By the use of this statement, it is understandable that a
KartMarket business strategy includes the use of cost as the price of sales to attract new
customers ( Zappala, 2017).
KartMarket vision statement: The vision statement of KartMarket is “to become the best retailer
in the minds and hearts of people.” The corporate vision of the company is to become the top
player in the E-0commerce business industry.
Tax implications of KartMarket:
For an online E-Commerce Business such as KartMarket, it is compulsory to follow the rules and
to pay tax (Auerbach & Smetters, 2017). Different business taxes such as estimated taxes,
employment taxes and the sales tax is been required to pay by the KartMarket.
Liability exposure of KartMarket:
Mostly all of the online business faces liability exposures daily. The liability exposures faced by
KartMarket is Personal Injury Liability, which is an “intentional act” against the individual such
as battery, assault, false arrest and imprisonment ( Lodder & Murray, 2017). Advertising
Liability is the exposure, which is required, as KartMarket advertises its products and goods.
This coverage is helpful to remove the financial injury of the company.

CREATING AN ECOMMERCE BUSINESS 4
Managerial ability:
KartMarket involves great managerial skills to manage the operations conduct in the company.
Various practices of management give rise to severe skills of KartMarket to manage the issues
and problems effectively. Managerial Skills such as planning for the operations, managing the
time for the meetings, scheduling of practices, controlling the issues, satisfying the customers by
fulfilling their needs and delivery of the products on time (Organization, 2018).
Cost of formation of KartMarket:
Decision for starting up online business is very excited for new entrepreneur’s and is filled with
anxiety, uncertainty and doubt. For managing the financial condition of the company effectively,
the KartMarket cost of formation involves:
 Website: Approximately $40 per month
 Taxes: Corporate tax up to 21%
 Payroll: 25-50% of the total budget.
 Insurance: Average of $ 1200 per year.

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Conclusion
From the above content, we concluded that commencement of an E-Commerce business is hard
and difficult. In this paper, an idea for E-business is been generated and all the functions and
regulations of the company has been discussed. It further concluded that, startup companies are
required to pay the taxes for making any sales. The liability coverage is also significant for the
company in order to reduce some of the loss generated by following the practices of the
company. The importance for having the skills for managing the activities and operations in the
company or for online business is been understood.
References

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Jurevicius, O. (2019, january 10). SWOT analysis of Amazon (5 Key Strengths in 2019).
Retrieved july 2019, from strategic management insight:
https://www.strategicmanagementinsight.com/swot-analyses/amazon-swot-analysis.html
Laudon, K. C., & Traver, C. G. (2018). E-commerce: Business, Technology, Society. Pearson.
Lodder, A. R., & Murray, A. D. (2017). EU Regulation of E-Commerce: A Commentary. Edward
Elgar Publishing.
Zappala, S. (2017). Impact of e-Commerce on Consumers and Small Firms. Routledge.
Auerbach, A. J., & Smetters, K. A. (2017). The Economics of Tax Policy. Oxford University
Press.
Organization, I. M. (2018). Use of Leadership & Managerial Skills. International Maritime
Organization.