Chanllenges for indian ecommerce industry

Challenges for Indian

E-commerce industry

Prepared ByImran Khan

MBA-II15781E00N2

Topics of Discussion• Introduction• Prospects & Growth• Major challenges• Solutions • Conclusion• Reference

Introduction• E-commerce is the purchasing , selling & exchanging goods

and services over computer network or internet through which transactions or terms of sale are performed electronically. (paperless)

• The concept of e-commerce is all about using the Internet to do business better and faster.

The E-commerce Process

Prospects and Growth

• 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. (Alibaba- Chinese giant)

• Estimated size of India’s Ecommerce market by 2016 is $31 billion and $100b by 2020

• Compounded annual growth rate of Ecommerce market in India between 2008 – 2015 is 56%

• E-commerce is advancing at a scorching pace, and a lot of e-commerce websites enter the business daily with a survival rate of less than 10% after the first year.

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The Pain

• This industry is brutal and demands businesses to arm themselves with state-of-the-art (modern methods) solution to differentiate themselves from the crowd.

• Ecommerce business takes at least 6 to 8 years to yield profits

• Companies are growing only by increasing their market share & market value but not by returning profits.

Warranty, Discounts, free home delivery,

high quality

  Merchandise Return

Major Challenges

Price War Among Retailers

Payment Gateways Have A High Failure Rate.

Increasing Customer Expectations

Cash On Delivery Is The Preferred Payment Mode

Internet Penetration Is Low. (0.5%)

Overfunded Competitors

 Logistics Is A Problem In Thousands Of Indian Towns.

Solutions to Challenges Accept Returns happily• The cost of operation can be minimized with proper returns management with seamless

interaction platform with logistic partners and vendors.

• Recently, a new startup has initiated to handle returns through kiosks

Easy Payment process• Mention the purchasing instructions clearly on home page of your website. You may also

provide a small video or animation. Instead of email a flash message on screen, like “Your payment has been done.”

• Try to provide more number of options to the customers for payment.

• Customers must be confident about the store and should familiar about online purchasing processes. They should use well networks and devices for payment. Slow network or bad devices give negative results.

Securities concern

• Bring confidence in customers through some branded logos. • Provide customer service through phone or internet. • You can not give the most excellent internet marketing services without a well

ecommerce website with some extraordinary advantages.

• Customer Interaction Management (CIM) technology makes sure every customer is under the radar.

• With effective customer nurturing technology tools and multimedia integration improves customer retention scores and are more likely to transform one-time purchasers to brand advocates.

• Make sure to compete with Chinese giant Alibaba

Customer Loyalty

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Quality Focus• Assure customers that the product looks and works as it is perceived.• The new regulation entails equal percentage of discounts for both off and online

business so quality can be a handy tool.

Over Sea’s Opportunities

• Over 2 Crore Indians are living across the world

B2B has more opportunities

• Dealing with businesses is comparatively easier than dealing with retail customers

Ease with language• Reach to the small enterprises using languages (regional) of the owners of the

small enterprises to enable them to adapt e-commerce processes.

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Tire - 1 Cities

Tire - 2 Cities

Tire - 3 Cities

High populated

Towns

Where to focus? …cnt’d

CONCLUSION• The discussed problems have are arised due to

customer’s mind-set & their purchasing habit, Government policy, technological failures, intense competition and logistic issues in India.

• Other than major cities, new prospects should be sought out

• Create Physical Shopping Experience in Online• Along with ease of payment security should be

utmost taken care of.

Reference

• www.google.co.in• http://online-ecommerce-tips.blogspot.in/201

0/06/g2c-government-to-citizen.html• http://www.tutorialspoint.com/e_commerce/

e_commerce.htm• http://www.pwc.in• www.ameyo.com• www.companiesinindia.net• http://ubiquity.acm.org/article.cfm?id=76394

5• http://www.digitsmith.com/ecommerce-defini

tion.html

Thank UFor

Ur Patience