As everyone knows, India is now the fastest e-commerce market in the world and posing serious competition to many highly developed countries when compared in terms of revenue. It has become the Holy Grail for many startups that are emerging in the market and many of them running successfully in the market.
At the beginning the start for e-commerce stores was slightly slow but gradually many Indians shifted to the habit of buying items from online stores. It has benefited them in various ways as they won’t travel through congested traffic to get their items.
The online market has become a huge platform to make the online economy, and massive sales of smartphones have also facilitated this growth. The growth speed is increasing year by year, and according to experts, India’s e-commerce economy might grab 1.61% of world’s GDP in 2018.
Previously Europe was considered as the large e-commerce market in the world due to heavy traffic, but things have changed over the years as Asia Pacific area is now considered as the biggest.
India has played a huge role in this growth, and it is not far behind China which is currently at the top of the online market in Asia-Pacific.
In India, there are thousands of Ecommerce websites and companies are selling various products from electronics to clothes. Not all of them are successful but there are a few websites at the top of this list of Best Ecommerce websites currently ruling the Indian Ecommerce market.
Many new companies are emerging in the market, and they are grabbing huge investment from foreign investors.
Many giant business companies like Tata, Reliance, Birla, etc. has found their foothold in Indian e-commerce market, and they are proving to be quite successful.
Many experts are predicting that growth revenue will reach new height within few years and it is becoming possible because people are now adopting digital trends.
Some Uncommon Facts about Indian E-Commerce Market
The following points will depict some of the interesting and unique facts about Indian E-commerce that are not known to everyone:
- In the beginning, India Post was the only medium for Flipkart, Amazon, and Snapdeal for dealing Cash-on-Delivery and India Post notched up their business in the delivery sector by 280 crores in revenue.
- According to reports from many reputed sites, men shops more in online store than women in India and this trend has been predominant throughout the years.
Women are mostly concentrated on their shopping style from local markets, but men smartly buy more from online stores as it cost less than local stores.
- Although India’s e-commerce market in growing with tremendous pace but it still lags behind China and it mainly due China’s digital movement.
People still resent themselves from online buying habit and prefers to buy them retails stores. The broadband penetration is still low even though India is now flooded with smart phones with 4G connectivity.
- The government of India is urging every citizen to go cashless and opt for digital payment, but people still prefer cash-on-deliver when they buy products from the online market.
Many people prefer this method because they like to have a hand in hand business and it also gives them the liberty to not pay until the product arrives at the doorstep. Every e-commerce company provides cash-on-delivery option because it has been seen people purchase impulsively when they get COD option.
- Many people have this imagination that Flipkart, Amazon, SnapDeal and some other renowned e-commerce giant gets the huge share but in reality travel section in the online market gets the significant share.
According to reports, online travel market covers 70% of the market, and it is growing year by year. Apart from travel, fashion sectors grab a good amount of online market share in India, and many companies are joining the race. Online book sales in India accounts for 7% of the total sale and smartphone section are currently gaining focus in the market.
- It is an astonishing fact that most of the online sale in e-commerce sites occurs during the traditional business hour which is between 9 am to 5 pm. So all the online sites promote most of their sales and advertisements during the working time. Online shopping is gradually becoming a part of human’s living and many marketers taking benefits of this fact.
- Reports suggest that when Rs 100 is spent on e-tailing and service payment gateway, logistics and storage incurs Rs 35 from that Rs 100. E-commerce companies that are dependent on third party logistic companies often face a loss of 8% on each item.
However, nowadays, many online sellers have their own logistic service which handles almost manages 60% total delivery service. E-commerce companies are also spreading their logistic in small cities which are cutting their logistic cost by a good margin. However, still, online sellers incur a loss in mobile, clothes and book by 8% to 24%.
- Online shoppers from small cities and middle-class people have a massive involvement in the growth of India’s e-commerce and mobile, apparel, online tickets, etc. are top searched items in the online market.
The absence of quality local stores and malls in small cities are facilitating a huge amount of sales in the online market, and the numbers will go up with time.
Reports suggest that sale of cheap smartphones in the market are providing to be fruitful for the growth e-commerce market in India.
Challenges Faced By Indian E-Commerce Companies
An e-commerce company faces many challenges throughout their journey and followings points will denote some major issues:
- An enormous amount of failure rates in an online transaction is taking a toll on e-commerce companies, and these payment gateways are mostly handled third party companies. However many new payment gateways are reducing this failure rate with new technologies.
- Less usage of debit card and credit is another major challenge that is faced by every online store in the Indian market. So cash-on-deliver is serving as a major mode of payment and companies are facing challenges to deliver items to remote places with COD option. It has been seen that customers in some areas often refuse to pay money for their COD item which is damaging the revenue of the company.
- Increasing popularity of mobile wallet payment is also becoming a challenge for e-commerce companies as they have opted for advanced technologies to reduce payment gateway failures.
Companies are spending a good amount of money to acquire new customers, and in return, they are not getting the expected value. They mostly focus new customers rather than old customers and increasing competition from other sellers are worsening the chance of getting new customers. They are also investing on new tricks to attract customers, but it is not proving fruitful every time.