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The Ecommerce opportunities and the obstacles in India

Updated On:06-April-2016

The Ecommerce market of India is competitive, increasingly lucrative and it is in equilibrium with its opportunities and standards.

The Ecommerce Opportunities in India:-

Even prior to the new guidelines, India posed an undeniably intriguing opportunity. The nation's "modern trade" is increasing 15% to 20% each year according to PricewaterhouseCoopers. Meanwhile, a study from the Internet and Mobile Association of India last year found there were 52 million new Internet users there in the first six months of 2015, bringing the country’s total user base to 352 million as of June. And of those, 213 million more than 60% accessed the web through their mobile devices.

“If you look at the numbers, every three seconds an Indian experiences the internet for the first time,” said Kittur.
Not surprisingly, as India's internet and mobile use has exploded, so has e-commerce. The ecommerce market is growing rapidly and expected to scale up exponentially in coming years.

Around 12% of all Internet users in India are online shoppers, according to the Economic Times. Analysts believe that online shopper penetration could grow to 20% by 2017.

Ecommerce Challenges:-

In a scale of ecommerce opportunities, it is also equipped with the challenges. One of the major factors is the under-developed logistics infrastructure that can make delivery difficult. Another related problem is a dearth of less-skilled workers that can handle customer service and fulfillment.

“They need people who speak English but aren’t highly skilled, and multiple companies are going after the same group,” Viswanathan said. “There are lots of niche players fighting for the same pool of workers as they try to scale their businesses.”

In addition, it can be difficult for marketplaces to find sellers who are ready for primetime, said Ugam's Kittur. Many marketplaces in India provide financing because so few sellers have access to traditional financing from banks, he said.

“How do I onboard these sellers and ensure their products are of good quality?” Kittur said. “And if the seller does ship an improper product, how do I deal with customer dissatisfaction? That’s really the number one problem.”
Last but not least, the new rules announced last month limit the price discounting that has long been a hallmark of the intense competition among India's e-commerce players. The discount cap could somewhat temper the consumer enthusiasm online retailers have enjoyed so far, experts say.


But even with the new limits to discounting and demands on sellers, make no mistake. India's economic growth and its demographic profile still make the country attractive to retail and etail businesses at home and abroad, experts say.

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