When you are setting up a business you always tend to have an expectation about its growth. According to research, the number of online shoppers are going to double up and their expenses over online purchases will increase by four times. Ecommerce which stands for digital trading also demands transmission of data and funds over the digital media. The transactions that mainly take place are generally:
- Business to business
- Business to consumer
- Consumer to business
Each set up may differ with respect to the customer or client base, with their goals remaining the same- to grow.
A further analysis on the ecommerce market of India
Marketers and surveyors studying the industry have been able to note the reasons behind the growth of ecommerce. These have been stated below:
India’s economic scenario gives an insight to those who are blessed with a fortune and those who own less. However the growth of small and medium stature businesses, foreign direct investments along with the rise of multinational corporations are paving way for newer job prospects giving birth to global minded Indians who are increasingly becoming the smart consumers of the day.
There are at least 100 million people using the internet and India is one of the nations, encouraging a market scenario where the focus remains more on a greater mass of people who tend to be aware of web services. In the last decade we have seen the growth of online service providers who are offering various convenient services. The rise in demand for smart purchases over the internet is helping boost a dominating ecommerce scenario across India.
The absence of a highly functional business infrastructure has only pulled back the country during earlier days. Today, companies are seeking result based approach to support their business and in return leverage the ecommerce industry of the country. Several logistic service providers are now more into offering reliable services as they are working in alliance with ecommerce companies. The advent of powerful logistics system is giving rise to a simplified intestate regulations. Now, international custom regulations have loosened up as well. Apart from logistics, payment gateways are also experiencing a simpler makeover. The usage of credit and debit cards have become frequent. People are opting for different payment portals in order to transact with vendors.
Today’s set-ups are more ROI centric. Business owners are nowadays setting up businesses which focus on products which they are comfortable with, when it comes to communicating and transacting with people.
User experience has also been a major factor triggering growth of ecommerce business in India. Service providers and merchants are focussing more on user experience. The best ecommerce practices are driven towards user experience, and such approach is aimed at leveraging merchant consumer relations.
In order to make the best use of ecommerce possibilities businessmen are firstly trying to identify the challenges that are likely to come their way:
- Lack of awareness or knowledge
- Lack of online security
- Lack of online transactions
- Tax structure
- Fear factor
- Cash on delivery
- Logistics services
- Shipment services
By determining several factors, researchers are able to determine the forthcoming possibilities centring round ecommerce.