E-Commerce is one of the leading and dynamic modes to develop your business. As of 2014, the capital investment in the e-commerce domain has surpassed $50 million. With the growing penetration of smartphones, tablet PCs, etc. along with better internet connectivity, e-commerce organizations are projected to reach millions of new customers in the next couple of years. Compared to global standards, the growth of e-commerce in India is merely 7% to 9%. However, even with these conservative statistics, it has managed to reach the population of 100 million with a market share of approximately $6.7 billion.
Though the lack of infrastructure is the biggest challenge for e-commerce, it still offers excellent opportunity for start-ups as it is expected to grow in double digits in next 10 years. According to a recent survey, the rate of development for e-commerce business in India is 70% and it has given an incredible growth of 500% in last three years.
With growth comes competition! And as per the recent statistical data, the e-commerce sites are indulged in cut-throat competition. They are offering several deals that include Free Shipping, Cash on Delivery, EMI facility, Same Day Delivery, free gifts, coupons, easy return policy, etc. As per Alexa, the top ten finest e-commerce websites in India are Flipkart, Snapdeal, Jabong, Ebay, HomeShop 18, Yebhi, Myntra, Naaptol, Tradusin and Amazon.
Let’s now have a look at the reasons why e-commerce is booming in India:
Reach of Internet: The number of internet users has increased over the years to over 100 million. The internet boom has led to increase in online shopping sites. This has led to several businesses venturing into online domain that includes banking, finance, travel, retail, medical, pharmaceutical and education, legal and manufacturing industry. In short, no business is immune to e-commerce today. This has compelled even the small organizations to go online. It has become a win-win situation for all as it has created more jobs, saved revenue for entrepreneurs by cutting the cost of labor, inventory and space and at the same time it has provided ease of use, comfort and convenience to the end users.
Shipment & Money Transfer: The penetration of internet and the boom of e-commerce have got rid of issues related to money transfers, thanks to secured e-commerce payment gateways. Part of credit also goes to extensive use of net banking and cash on delivery. Additionally the courier firms have come up with their robust online database to track the complete detail of shipment from anywhere any time making the online shopping ever so smooth and reliable.
Rise of the Middle Class Indian: For years,India has been known as a developing country however, that is not the case anymore. Leading international organizations have opened their outlets in India and some of these brands have also set up their manufacturing plants here. The increase of small and medium business, Indian MNCs and foreign direct investment has generated several jobs and a new era of net savvy user has just complemented the growth story. With more money being generated and the young Indians preferring to shop from the comforts of their home has contributed to the growth of e-Commerce in India.
Customer Satisfaction: This has been one of the main reasons for e-commerce boom in India! The online businesses today pay special emphasis on their customers, address their queries timely and resolve their complaints with a specified time limit. They have made customer satisfaction part of the entire process. Customer feedbacks are noted and worked on for improving the overall user experience. The e-commerce firms now have dedicated and round the clock customer support teams!