Comments Off on Why has e-commerce in India gained so much of importance?
E-commerce has of late become a zealously watched sector in India especially with handful of domestic unbeaten ventures being esteemed at billions of dollars. While familial Brands like Flipkart and Snapdeal rule the souk, the sector has also caught the fancy of global giants like the USA’S Amazon and China’s Alibaba- all are contending hard for the bigger share of the cake.
India’s e-commerce potential was first spotted by eBay, a US firm which entered the country in 2004. It was eBay that introduced the concept of online marketplace, where sellers and buyers connect directly.
Today, India has more than 94 million broadband users, and an internet connected population close to 300 million. Of them, about 39 million shop online, according to the research report of a consulting firm. Thus providing a huge and perfect platform for the growth of e-commerce businesses.
Another reason behind the huge success of e-commerce companies in India is the opening of ‘cash on delivery’ system, which helped e-commerce companies to gain the trust of the consumer.
Research says, in the past decade or so, there have been several changes in consumer behavior with respect to buying- especially in Tier II and Tier III cities. “The advantage of sitting at home and comparing prices , features and products has brought new dynamics to the shopping practice.”
The increase in disposable income levels has led to bigger online order sizes, and changes in lifestyle. Shoppers prefer online channels to physical ones, for saving time and wider variety.
The growth has driven further by a quick propagation of technology- mounting implementation of devices like smartphones and tablets, and admission to the internet through broadband and 3G data connections. These enablers were not there when the original shopping sites started their operations back in the 2000’s.
E-commerce is promising as a significant device to make sure complete growth. The straight model of business is undergoing aquatic change to reduce the fame of physical infrastructure of big cities as a necessary state for the smooth performance of business. Emergence of international shipping options creates the perfect dais to reach online consumers around the globe. Increasing economies with rapidly rising internet dispersion offers a striking opportunity for the retailers to swell.