A STUDY ON FUTURE OF E-COMMERCE IN INDIA Priyanshi Dubey
Shri Cloth Market Girls Commerce College, Indore
Abstract - E-commerce may be playing a stand out amongst the key part donebusiness alternatives and encourage on investigate later on. E-commerce may beconcerning the standard shift in the benefits of the business planet to exchanging.Conjecture for E- commerce is indicating uncommon prospects in business Growthof Indian economy. Those clients base of web shopping may be increased Towardutilizing web about things (IOT) What's more cell telephone requisitions. Hencethose Indian e-commerce business need seen energizing Growth clinched along side since from few quite sometime. It taking under attention India’s demo graphic inst all ment framework Also expanding web accessibility, those E-commerce benefits of the business may be Experiencing childhood will more terrific statures.However, India’s in general retail good fortune will be substantial, those internet businesses will be plagued with a few discriminating tests. Henceforth over going tocurrent consider need been conveyed out to portray those available condition andthe future prospective of e-commerce benefits of the business clinched alongsideIndia. It facilitates with dissect the available trends, investigate those tests and chances for e-commerce benefits of the business over India.
Keywords: E-commerce, Trading Indian Economy, customers, online shopping, Internet of Things.
1 INTRODUCTION
E-commerce stands to electronic business. It intends managing for merchandise &
administrations through those electronic networking & web. The fast development about e- commerce clinched alongside India is, no doubt determined by more amazing client decision
& progressed accommodation with those assistance of web those merchants alternately dealer who offers items or administrations straightforwardly to those clients from those portals utilizing A shopping wicker container framework or advanced truck & permits installment trounce charge card, Visa alternately electronic store exchange installments.
In the available situation e-commerce showcase & its space will be expanding popular and additionallya great show or extend of a specific sort about benefits. E-commerce will be recently showing up altogether zones from claiming business, client services, new item improvement & outline. E-commerce benefits of the business is developing for India due to extensive variety for item with least value extensive variety from claiming suppliers & clients web. In this present-day period each business units need to join on the web benefits of the business on expanding proportion for web clients to India. E- commerce to India will be at present done developing phase yet all the it offers respectable opportunity.
1.1 Definition
The buying & selling of products & services by businesses & customers through on electronic medium, without using any paper documents. E-commerce is widely considered the buying & selling of products over the internet, but any transaction that is completed solely through electronic measures can be considered e- commerce. E-commerce is subdivided into three- categories: business to business or B 2 B (Cisco), business to consumer or B 2 C (Amazon) & Consumer to consumer C 2 C (eBay).
1.2 Objective of Study
The objectives of present study are:
1) To analyze the present trends & opportunities of e-commerce in India.
2) To examine the barriers of e- commerce in India.
3) To find out the growth factors of e- commerce in India.
2 METHODOLOGY
1 Research Methodology:
The Process used to collect information & data for the purpose of making business decisions. The methodology may include publication research, interview, surveys & other
research techniques & could include both present & historical information.
2 Research Design: The researcher has used only secondary data that has been collected from various articles, journals, books, websites etc. It has been used to study the evaluation, conceptual framework, definition, key players, present trends, future prospectus
& barriers of e- commerce. The researcher also used quantitative research that is the systematic empirical investigation of variables phenomena via statistical & mathematical, theories pertaining to phenomena all the data included isthe secondary base & proper references have been given wherever necessary.
3 Result & Discussion: India need a web client base of regarding 354 million Likewise from claiming June 2018. Regardless of continuously third biggest client build over world, the infiltration about e- commerce will be low contrasted with businesses like the United States, United Kingdom alternately France in any case is developing a great part faster, including around 6 million new entrants consistently. Those industry agreementsare that development is toward a expression purpose. Previously, India, money down will be the greater part favored installment method, collecting 75% of the e-retail exercises. Request for global customer results (counting long-tail items) is developing a significant part quicker over in- country supply starting with commissioned distributors What's more e-commerce offerings.
3 CHALLENGES AND OPPORTUNITIES
Backed by increased online user base & mobile phone penetration, Indian e- commerce has seen impressive growth in the last few years. Considering India’s demographic dividend &
rising internet accessibility, the sector is slated to scale greater heights. Although, India’s overall retail opportunity is substantial, the sector is beset with some serious challenges.
We take into the current e-commerce landscape & the sector’s key drivers & challenges.
3.1 India’s Growth Potential
The Indian E-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second-largest e-commerce market in the world by 2034.
India’s e-commerce sector is expected to reach US$ 111.40 billion by 2025 from US$ 46.20 billion in 2020, growing at a 19.24% CAGR, with grocery and fashion/apparel likely to be the key drivers of incremental growth. The Indian online grocery market is estimated to reach US$ 26.93 billion in 2027 from US$ 3.95 billion in FY21, expanding at a CAGR of 33%. By 2021, total e-commerce sales are expected to reach US$ 67-84 billion from the US$ 52.57 billion recorded in 2020as shown in figure 1& 2.
3.2 Factors that will Fuel Growth
According to reports published by International Monetary Fund (IMF) and Central Statistics Office (CSO), India is among the fastest-growing economies in the world. Among several factors, a conscious patronization of online commerce, and an emergence of retail as a dominant market segment have contributed to the unprecedented growth of eCommerce in India. For the financial year 2016-17, eCommerce sales reached US $16 billion with a projection of a seven-fold growth within the next two fiscals as estimated by Morgan Stanley. By 2020 online commerce sales are expected to cross $120 billion.
The three principal driving factors for this growth in the Indian eCommerce sector are:
1. Participation of niche companies in online trading 2. Unmatched FDI (Foreign Direct Investment) 3. Uniform GST (Goods and Services Tax)
4 CHALLENGES IN E-COMMERCE SECTOR IN INDIA
The growth of ecommerce volumes in India is attracting the attention of players around the globe. India, the second most populous country in the world, is home to 1.2 billion people.
The growth of ecommerce volumes in India is attracting the attention of players around the globe. India, the second most populous country in the world, is home to 1.2 billion people.
To put that number into perspective, consider this: the combined populations of Germany, UK, France, Italy, Netherlands, Belgium, and Greece equal one-fourth the population of India alone! Despite lower per-capita purchasing power, this still makes India one of the most attractive emerging markets for ecommerce. But India is far from being a bed of roses.
Here are the top 8 challenges that ecommerce businesses face in India.
1. Indian customers return much of the merchandise they purchase online
Ecommerce in India has many first-time buyers. This means that they have not yet made up their mind about what to expect from ecommerce websites. As a result, buyers sometimes fall prey to hard sell. But by the time the product is delivered, they demonstrate remorse and return the goods. Though consumer remorse is a global problem, it is all the more prevalent in a country like India, where much of the growth comes from new buyers.
Returns are expensive for ecommerce players, as reverse logistics presents unique challenges. This becomes all the more complex in cross-border ecommerce.
2. Cash on delivery is the preferred payment mode
Low credit card penetration and low trust in online transactions has led to cash on delivery being the preferred payment option in India. Unlike electronic payments, manual cash collection is laborious, risky, and expensive.
3. Payment gateways have a high failure rate
As if the preference for cash on delivery was not bad enough, Indian payment gateways have an unusually high failure rate by global standards. Ecommerce companies using Indian payment gateways are losing out on business, as several customers do not reattempt payment after a transaction fails.
4. Internet penetration is low
Internet penetration in India is still a small fraction of what you would find in several western countries. On top of that, the quality of connectivity is poor in several regions. But both these problems are fast disappearing. The day is not far when connectivity issues would not feature in a list of challenges to ecommerce in India.
5. Feature phones still rule the roost
Though the total number of mobile phone users in India is very high, a significant majority still use feature phones, not smartphones. So, for all practical purposes this consumer group is unable to make ecommerce purchases on the move. Though we are still a couple of years away from the scales tipping in favor of smartphones, the rapid downward spiral in the price of entry-level smartphones is an encouraging sign. I expect that the next few quarters will witness announcements of new smartphones in India at the $30-40 price point. That should spur growth in smartphone ownership.
6. Postal addresses are not standardized
If you place an online order in India, you will quite likely get a call from the logistics company to ask you about your exact location. Clearly your address is not enough. This is because there is little standardization in the way postal addresses are written. Last mile issues add to ecommerce logistics problems.
7. Logistics is a problem in thousands of Indian town
The logistics challenge in India is not just about the lack of standardization in postal addresses. Given the large size of the country, there are thousands of towns that are not easily accessible. Metropolitan cities and other major urban centers have a fairly robust logistics infrastructure. But since the real charm of the Indian market lies in its large population, absence of seamless access to a significant proportion of prospective customers is a dampener. The problem with logistics is compounded by the fact that cash on delivery is the preferred payment option in India. International logistics providers, private Indian companies, and the government-owned postal services are making a valiant effort to solve the logistics problem. If someone could convert the sheer size of the problem into an opportunity, we might soon hear of a great success story coming out of the Indian logistics industry.
8. Overfunded competitors are driving up cost of customer acquisition
The vibrancy in the Indian startup ecosystem over the past couple of years has channeled a lot of investment into the ecommerce sector. The long-term prospects for ecommerce companies are so exciting that some investors are willing to spend irrationally high amounts of money to acquire market share today. Naturally the Indian consumer is spoiled for choice. However, this trend has reversed as investors are getting worried about slipping further down a slippery slope, and I expect more rational behavior in 2014.
5 CONCLUSION
E-commerce will be evolving the method for purchasing & offering from claiming result &
19% individuals utilizing web for offering & purchasing merchandise & administrations thus remaining rate we could viewed as that we Hosting extent Previously, Indian business.
There is feeble digital security law for India that is the reason Indian kin are confronting tests at e-commerce. What's to come for e-commerce e in India might be splendid in the approaching a considerable length of time if the greater part vital Components might a chance to be implemented, Eventually Tom's perusing Building digital & have their profits Concerning illustration for every kin wish. Those part of legislature is to gatherings give A lawful structure to e-commerce thus that same time down home & universal exchange are permitted to extend their horizons, essential good for example, such that privacy, scholarly property, aversion of fraud, customer insurance and so on.
Need aid the greater part taken forethought about. The development for e- commerce need been produced for provincial and also urban zone clinched alongside rule unable expense to consumption, due to that more people would getting connected with e-commerce
& those proportion of that is getting build step by step.
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