What is Ecommerce?
You might have heard about eCommerce and wondered, “What is it?” It’s a relatively simple concept, but the reality is that ecommerce is a very different business than a traditional brick-and-mortar store. There are four common types of eCommerce businesses: B2B (Business to Business), C2C (Consumer to Consumer), and closed environment (B2C/B2B). Each type serves a different purpose and targets a specific set of customers.
Ecommerce Business Growth in India
Growing consumer awareness and rising income levels have helped propel ecommerce business growth in India. The market has plenty of opportunities, but also some challenges. Foreign companies are investing in Indian ecommerce companies at record paces, which gives the ecommerce business in India plenty of room for growth. In this article, we’ll look at some of the most important factors that are helping Indian ecommerce businesses grow. Listed below are some of these factors.
Regardless of the challenges that face ecommerce businesses, India has a very large consumer market. It ranks sixth in the world’s consumer markets, according to the World Bank. Its population has been growing rapidly over the past decade, and the World Economic Forum expects it to become the world’s third largest consumer economy by 2030. According to ecommerce market research firm Unicommerce, the ecommerce market in India will grow at a compound annual growth rate of over 30% over the next five years.
While the big metropolitan cities are the main hubs of ecommerce business in India, smaller cities are driving the biggest growth. According to Unicommerce, small and Tier 3 cities are leading the way. This trend is likely to continue as long as more young Indians are able to start their own businesses. Developing ecommerce businesses in these smaller cities will create a much more entrepreneurial culture in the country. There’s no reason why small businesses in India shouldn’t be able to do so as well.
As e-commerce business growth in India continues to accelerate, there are new challenges that ecommerce companies should consider. As the Indian retail industry grows, technological advancements and the customer experience should be a priority. Ecommerce sites should ensure their websites are faster and offer easier-to-use mobile applications. The biggest challenge is overcoming the growing number of online shoppers. There are numerous opportunities in India, but the challenge is getting there faster than ever.
The ecommerce industry in India is fiercely competitive. Local companies are fighting to secure the largest share of the market. Amazon India, for example, was the largest online marketplace in India in April 2017, selling more than 500 million U.S. dollars in products. Other prominent local players include Flipkart, Myntra, and the Walmart-owned Flipkart. In a recent survey, the majority of respondents said that allowing ecommerce platforms to deliver goods in India was a wise decision.
The rise in e-commerce has boosted digital payment options. Currently, cash-on-delivery (COD) is still king, but a new system of electronic payments will change the game for domestic ecommerce. With more women online, the role of cash-on-delivery will be eliminated. In addition, the rise of new internet users in smaller cities will increase e-commerce spending by 2020.
Despite this, India’s middle class is growing rapidly, resulting in a rapid ecommerce market growth in the country. This upwardly mobile demographic is spending more money online, and internet penetration is expected to reach 50 percent by 2020. Moreover, most of the newly-connected population lives in rural areas, so the Internet is essential for ecommerce businesses. It is not surprising that the ecommerce business growth in India is growing so rapidly.