eCommerce is a trading facility which provides products and services by using computer and Internet. E-commerce is a growing industry in India and according to the reports of various financial organization states that India’s e-commerce market was worth about $3.9 billion in 2009 and it went up to $12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About 70% of India’s e-commerce market is travel related. According to Google India, there were 35 million online shoppers in India in 2014 Q1 and is expected to cross 100 million mark by end of year 2016. The arrival of e-Commerce industry in India has huge impact. The convenience provided by e-Commerce industry is the biggest advantage and it provides the opportunity to shop directly from home by a single click only. Although the concept of e-Commerce is widely popular in Western Countries, the concept was new and totally different in India and people purchased product at a much lower cost then it was available in stores. The e-Commerce websites allow users to purchase item from the list of various products and Brands. They also have a customer friendly refund policy which allows customers to refund the product without any hassle and these added advantages are increasing the share of e-Commerce in India by by huge margin.
The concept of eCommerce in India is totally new and different and due to this it attracted a lot of Indians living in the metro cities. It also helped people in getting their desired product at a much lower price than any local market or shop operating in India. Not only the option of multiple product listing but these websites also helped their users to select any product easily from a list of various brands in a single place. This is very advantageous for people as the online industry lists all the product at a single place. Most of the bigger market in Indian cities are very crowded and the online shopping also prevent rush at there places. Now the eCommerce industry is rapidly expanding in India as mentioned earlier and going by current trend within few years it will capture almost 70% of the market with a market cap of $30 billion in 2018. These data shows and prove that the future of eCommerce Industry in India is very bright and in upcoming years it will completely remove hassle of shopping from local market.
One such report from PWC talks about the growth of business on the eCommerce industry
The eCommerce sector in India has seen an unprecedented growth in the year 2014. The growth was driven by the introduction of technology and easy Internet Data availability in India. These factors along with the use of devices such as smartphones and tablets and access to the internet through broadband increased online consumer base for many eCommerce Companies operating in India. Furthermore the demographics of India and large number of people living in Metro Cities also helped in this growth. The biggest gainer in in the beginning was two India homegrown companies i.e. Flipkart and Snapdeal. They managed to get big investors and used the immense Indian market which has every potential to become giant.
The end-user doesn’t know the whole working of eCommerce Industry. All he knows is to order his product and complete the payment and this is what expected from him. The whole eCommerce operation is a huge task with nearly thousand of people performing various task to get the order to reach correct destination. Hundereds of servers are required for supporting users login and purchasing as well as developers, Management Guys, legal aid, Data Entry Operation and courier facility. All theses working needs to be tracked so that there is no loophole in the process. The eCommerce industry depends on many manual work like eCommerce catalog processing, classification of products and their categorization. Large number of Data entry work is performed at the back and in most of the cases this data entry services is outsourced in India. There are many companies operating in India who have bagged important projects from Amazon and getting huge revenue from the Amazon and other eCommerce giant.
There are many other eCommerce companies working globally and generating huge profit. Companies like Amazon and Alibaba have intensified the competition and now the companies of Indian origin have to provide better services and product to face this competition. Now even many smaller companies have joined the fray like Naaptol.com, shopclues.com, and paytm who gave huge amount of discount on their products to grab potentials customers. These all factors, promotion tactics and companies will further intensify the competition. The advantage with companies of foreign origin is that they have huge fund to drive the Indian eCommerce Market. They also have strong knowledge and experience of eCommerce industry as they have seen the eCommerce market to evolve from scratch. They also include best practices and are aware of challenges which traditional Indian company lacks.
Speaking about the practices reminds me of one example where one of my friend purchased ZTE Nubia Z9 mini from Amazon.com. After using is for few day there was a physical damage in phone but there was no service center of ZTE in India. Now since there was no service center it was difficult to repair the phone. Amazon without wasting a second replaced the phone and beared its cost. These are some factors or live example which can be a deciding factor in long term running. There are many eCommerce companies operating in India which have one of the worst customer experience and if a user has purchased product once it won’t purchase for the second time. The point is competition is expected to grow eCommerce industry and therefore companies have to come up with different ways to attract customers and then retain them. This is the only way by which they can increase their inline sales. The Indian government has launched its ambitious Digital India project and government is also encouraging the eCommerce sector because it can generate thousands of jobs. The effect of eCommerce industry is also visible on Indian Postal Services as they handle the shipment part of the service. The Digital India project aims to offer a one-stop shop for government services that will have the mobile phone as the backbone of its delivery mechanism. These programs will give a strong boost to the Indian eCommerce market and will bring internet and broadband to remote corners of the country thereby increasing a huge market for goods to be sold.
These reports shows and prove that India has huge potential for eCommerce industry and if it is exploited in proper way it can become kingmaker. Many companies which were group of few friends in 2008-09 have now net revenue of million of US dollar. This trend has already developed in India and now many youths are coming up with ideas and startups. The time is perfect in almost all the sections of eCommerce industry let it be the server support, development, eCommerce management services or an end delivery services. We can hope many more companies will join the existing group of companies and together they will provide one of the best user experience that one can think of.
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