E commerce in india challenges & opportunities
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E-commerce in India faces both challenges and opportunities for growth. It provides multiple benefits to consumers like lower prices, more selection, and convenience. However, marketers face challenges like personalization, shipping issues, and currency differences between countries. Consumers worry about refund times, privacy of their data, and trusting online transactions. Despite these challenges, e-commerce in India is growing rapidly due to more internet users and changing consumer preferences. The industry is expected to be worth $17.52 billion by 2018, up from $5.30 billion in 2014. Further research is still needed to address security and privacy concerns surrounding online shopping.
E commerce in india challenges & opportunities
- 1. E-Commerce in India Challenges & Opportunities By: - Anil Sharma Software Developer & Lecturer Computer Science
- 2. E-commerce stands for electronic commerce. E-commerce provides multiple benefits to the consumers in form of availability of goods at lower cost, wider choice and saves time. E commerce involves conducting business using modern communication instruments: telephone, fax, e-payment, money transfer systems, e-data interchange and the Internet. Electronic Business is more than just buying and selling products online. It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and services. This paper is outcome of a review of various research studies carried out on E-commerce. This paper examines different opportunities and challenges of e-commerce.
- 3. E-commerce is an outcome of Information and Communication Technology (ICT) revolution in economic fields or the most visible way of contribution of ICT to economic growth. ICT, as a tool of socio- economic development, is a significant issue for developing countries. A common definition of e-commerce is to provide trade processes through data interchange, transaction of goods and services via computer networks such as the Internet. E-commerce and online shopping in India is getting a noticeable growth as more usage of internet facilities, high educational standards, changing life style and economical growth of the country reasons in the demand of ecommerce techniques and tools. This significant impact has resulted in more numbers of customers to explode various fields of e- commerce for their benefits. There is also a significant national diversity in e-commerce adoption, particularly in downstream marketing, sales and other customer-oriented activities .
- 4. The primary purpose of this study is to examine and uncover the impact of e-commerce and also identify the issues and areas important to the implementation of ecommerce that may help in enhancing the productivity in the economic growth of the country. Electronic commerce comprises core business processes of buying and selling, goods, services and information over the internet. Today E- commerce is a backbone in Indian society and it has become integral part of our society life. The first e-commerce site in India was rediff.com. E-commerce allows different payment through debit card, credit card of EFT (Electronic fund transfer) payments. Ecommerce provides multiple benefits to the customers in form of availability of goods at lower cost, wider choice and saves time, along with the need to invent and popularize innovations such as Mobile Commerce. E-commerce provides a new place for connecting with consumers and conducting transactions. Virtual stores operate 24 hours a day, 7 days a week.
- 5. The way in which you manage your business relationships has not changed, but the way they are referred to when using e Business tools has. They are becoming more often known as: Business to business (B2B) Government to consumer (G2C) Government to business (G2B). Business to consumer (B2C) (also known as e Commerce) Keeping the first category in research the Business-to-Consumer (B2C) segment, which includes the popular, Wall Street friendly businesses like Amazon, e-Trade, etc.
- 6. E-BUSINESS CHALLENGES ON THE SIDE OF MARKETERS ARE The developing countries face a number challenges in utilizing the benefits in raising incomes and trade flows in the area of e-commerce. A range of technical, legal and international governance considerations need to be addressed. Personalization: - It can be the single most important challenge for suppliers when it comes to e-commerce and its competition its competition with retail stores. Retail stores have facility of personal touch which is difficult to replace with selling online. Shipping Challenges: - Issues related to lack of supply chain integration, delay in delivery and lack of proper courier services in some areas make customers frustrated. Currency Challenge: - Different countries have different import and export specifications. Issues related to credit card limits and currency exchange rates. This hinders smoothness in e-commerce shopping..
- 7. Issues faced by Consumer in e-commerce Refund: - If the quality, size, color of acquired product does not match with the expected product then arise a situation of product return. But the refund for such situation usually takes a long time. Trust: - Consumers are seriously concerned about a number of dimensions of trust. These concerns are discussed, and can be analyzed into the following categories: Goods and services offered and acquired; and Assurances that refund is available for unsatisfactory goods and services; Trust in the privacy of personal data arising from electronic transactions. Privacy :- As far as the privacy of personal data is concerned, many people are concerned about the trails that they leave behind them in cyberspace, and by the use of models of their behavior using the
- 8. The major opportunities that e-commerce can bring to the companies/suppliers are: It minimizes inventory cost: E-commerce venture need not maintain huge inventories or expensive retail showrooms. It can improve customer services: It has been found that providing both customer and after-sale services account for up to 10 per cent of the operating costs. . It helps business globalize: E-commerce by minimizing costs enables companies’ especially small ones to make information on its products and services available to all the potential customers spread over worldwide.
- 9. The major opportunities that e-commerce can bring to the customer are: User friendly: - The best thing about e-commerce is its buying options that are quick convenient and user friendly with the ability to transfer funds online. Eliminate Travel Cost: - Now, customers do not have to travel long distance. With few mouse clicks, customers can make their purchase. Availability: - Consumers can purchase almost anything online 24*7 a day and get ultimate shopping experiences.
- 10. India has an Internet user base of about 354 million as of June 2015. Despite being third largest user base in world, the penetration of e- commerce is low compared to markets like the United States, United Kingdom or France but is growing much faster, adding around 6 million new entrants every month. The industry consensus is that growth is at an inflection point. In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail activities. Demand for international consumer products (including long-tail items) is growing much faster than in-country supply from authorized distributors and e- commerce offerings. As of first Quarter, 2015, seven Indian e-commerce companies have managed to achieve billion-dollar valuation Viz. Flipkart, Snapdeal, InMobi, Quikr, Amazon India, OlaCabs, and Paytm.
- 11. Retail ecommerce sales in India ,which was a meager $3.59 billion in 2013 grew to somewhat better $5.30 billion in 2014 and year to year growth .In year 2015, total online retail in India all set to touch $7.69 billion , growing at a rate of 45.2%. By the year 2018, ecommerce retail in India is expected to grow to $17.52 billion. (Fig. 1)
- 12. Indian e-commerce and online shopping together plays a significant role in comprehensive growth to the economy .Owing to the increasing internet population, it has become easier and simpler in dealing with the competitive market for better deals on product. However, along with development and changes in e-commerce, there are also security and privacy concerns among the customers. Hence, researchers in this field will need to study more on the security and critical issues relate to e- commerce.