Prospects of E-Commerce in India
Following is India’s prospects in e-commerce:-
Opportunity for retailers:-
A retailer can save his existence by linking his business with the online distribution. By doing so, they can make available much additional information about various things to the consumers, meet electronic orders and be in touch with the consumers all the time. Therefore, e-commerce is a good opportunity for retailers.
Opportunity for wholesalers\ distributors:-
In the world of e-commerce, the existence of the wholesalers is at the greatest risk because the producer can easily ignore them and sell their goods to the retailers and the consumers. In such a situation, those wholesalers can take advantage of e-commerce who are capable of establishing contracts with reputed producers and linking their business with the online.
Opportunity for producers:-
Producers can take advantages of e-commerce by linking themselves with online, by giving better information about their products to the other links in the business chain and by having a brands identity.
Opportunity for people:-
As more people are getting linked with e-commerce, the demand for centers providing internet facility or cyber café is also increasing. Hence, the people who wish to take advantage of it can establish a cyber café and have their benefits.
Essential factors for growth of E-Commerce in India:-
Following are the essential factors for growth or e-commerce in India:-
- Cash on delivery: By providing cash on delivery payment option service to customers.
- Replacement guarantee: 30 days replacement guarantee should be offered to the customers.
- Reach: Enabling mobile-capable sites and supporting mobile commerce services.
Since customers these days are always on the move promoting the right product at the right time and location becomes an integral aspect.
Multiple payment options:-
Along with the standard credit cards, debit cards and bank payments, cash delivery option should also be there.
Getting the right content and targeting customers with crisp and relevant information is of utmost importance to users on move.
Providers offering instant price comparison are highly popular amongst the price-conscious customers.
Timely service should be provided by the company.
Low-cost shipment should be there. The convenience of collecting orders post work while returning home should also be there.
In India, the geographical spread throws logistical challenges. The kind of products being offered by providers should determine logistics planning.
There should be a legal requirement of generating invoices for online transactions.
The product quality should be the same as shown on the portal.
Terms and conditions:-
T&C should be clear &realistic.
Customer care center:-
A dedicated 24|7 customer care center should be there.
Barriers to e-commerce adaptation in India:-
The following are the barriers that limit the endless opportunities of e-commerce:
E-commerce provides a global platform to both buyers and sellers. But, all the transactions cannot be executed physically. It requires different geographical locations under a different regulatory system to implement the whole operations. Governmental policies of different countries are not uniform, which creates difficulty in operation and sometimes increases cost for buyers.
Low internet penetration:-
The growth of e-commerce requires the development of digital environments. Unavailability of the Internet facility in the rural areas and the other remote areas restricts in e-commerce activities. So, low internet penetration acts as a barrier to the growth of e-commerce.
Delay in delivery:-
The placement of orders and payment for products, shipment and delivery do not take the same time. Digital products such as e-book can be delivered to the buyer using electronic mechanisms, but physical products need an efficient ground delivery system, where distance is an important factor.
Displaying of products and other pre-purchase steps over the Internet may pull initially a number of buyers, but payment using credit cards and bank account number creates fear among the buyers about the trustworthiness of the seller the system itself.
E-commerce raises the difficulty in preserving privacy Individuals to face the impossibility of placing control and limit on the uses of their personal information. The chances of identity theft and hacking reduce the intent of consumers to share personal information with business organizations.