Scope of Ecommerce in India

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    E-commerce has grown in popularity throughout time and is now one of the fastest-growing areas of the internet. Though it took some time for end-users to adopt it, we are now at a situation where the majority of consumers prefer to purchase online. At the time of its introduction, there were various reservations about online buying, but over time, people have come to trust E-commerce for all of their shopping needs.

    In India, people currently prefer to shop online rather than in a physical store. Payment options, including cash on delivery (COD), are intelligent and safe.

    Let us first define e-commerce before moving on to the future and scope of eCommerce in India. In other words, electronic commerce is the act of purchasing and selling goods through the internet..

    Sellers create web pages featuring photographs of their products, as well as a price and description. Customers may make purchases using a number of options, including cash on delivery, e-wallet, net banking, and credit card.

    What is eCommerce

    The term “e-commerce” was coined in the late 1990s. Business to business (B2B) e-commerce enterprises, customer to business (C2B) e-commerce businesses, consumer to customer (C2C) e-commerce businesses, and business to consumer (B2C) e-commerce firms are all possible.. In the late 1990s, e-commerce became popular. B2B (business to business), C2B (customer to business), C2C (consumer to customer), and B2C (business to customer) are all examples of e-commerce firms (B2C).

    All transactions would be done electronically or online — e-commerce allows for the online purchase and sale of goods and services, as well as shipping, billing, and other shopping-related operations.

    Types of ecommerce models

    Electronic trade can be classified into four categories. The gatherings involved with the transactions are the explanation for this basic grouping. As a result, the four basic electronic commerce models are as follows:Electronic trade can be classified into four categories. The gatherings involved with the transactions are the explanation for this basic grouping. As a result, the four basic electronic commerce models are as follows:

    Business to Business

    This is what B2B exchanges are all about. The organisations are cooperating in this area. The most recent buyer isn’t included. As a result, the internet exchanges only involve producers, wholesalers, and retailers.

    Business to Consumer

    The firm will offer its products and services directly to the customer here. The buyer can look through their websites and view items, photos, and audits. They submit their request at that time, and the organisation provides the merchandise directly to them. Amazon, Flipkart, Jabong, and other popular models are examples.

    Buyer to Consumer

    Where the purchasers are in direct communication with one another, this is known as buyer to buyer. There is no mention of any organisation. It enables people to sell their own goods and resources to an interested party in a straightforward manner. Vehicles, bicycles, electronics, and other such items are frequently traded. This model is followed by OLX, Quikr, and others.

    Customer to Business

    This is the customer-to-business (B2C) transformation. As a result, the buyer provides some or all assistance to the organisation. Consider an IT consultant who makes a presentation to a firm and offers his product. This would be a business-to-business transaction.

    Future E-Commerce Projections

    In India alone, by 2027, it is predicted that the e-commerce sector would reach $200 billion. That’s correct! 200Billion. The internet penetration of 687.6 million users backs up this prediction. Government initiatives such as 100 percent FDI permission for B2B E-Commerce have aided E-Commerce penetration, which is estimated to reach 74 percent. E-commerce enterprises in India have attracted $4.32 billion in private equity and venture finance just this year.

    These stunning stats should persuade you that E-Trade is the way of the future for global commerce. Businesses all over the world are warming to the idea of partnering with E-Commerce development firms to improve their online presence and create a user-friendly interface. These days, E-Commerce Website Design in India is one of the most in-demand services.

    The extent of e-commerce

    Thanks to an increasing usage of media equipment such as a smartphone, workstation, or PC with internet connection, the scope of company development is rising day after day. Individuals have turned to online-based purchasing as a result of the accessibility of devices and easy web access. Web speed and availability channels are among the most appealing factors for ecommerce business expansion on the planet, among many others, extending the tech-aware population.

    Electronic commerce in India Possible Threats

    There are problems with any business and business strategy. How we deal with and manage these problems will be determined by whether or not we stay or go.. Before starting a firm, one of the most crucial things a business owner should know is what these challenges are.

    The Problem With Infrastructure

    China is one of the Asia-Pacific countries with the greatest percentage of internet shoppers, with India close behind. The issue is that these countries trail behind in terms of the technology they choose to supply, as neither has made significant progress in terms of reaching out to a large audience. Internet access is a critical component for the E-commerce industry to thrive. The bulk of Indians reside in rural regions and just around 0.5% have good internet connection.. These are some of the causes that have kept the e-commerce business from realising its full potential.

    Internet Penetration

    eCommerce is built on the foundation of the Internet. However, just 34.8 percent of India’s population has access to the internet. However, due to the rise of mobile internet, India’s mobile internet usage increased dramatically in 2015 and 2016, allowing eCommerce enterprises to reach a wider audience.eCommerce is built on the foundation of the Internet. However, just 34.8 percent of India’s population has access to the internet. However, due to the rise of mobile internet, India’s mobile internet usage increased dramatically in 2015 and 2016, allowing eCommerce enterprises to reach a wider audience.

    Branding & Marketing

    A large investment for branding and marketing is required to drive sales and visitors to an eCommerce site. This is a substantial expense that can be measured as a cost per acquisition or cost per sale. According to marketing experts, the current average CPA for eCommerce businesses is between INR 500–1000, which isn’t feasible for small businesses with limited resources to engage in high-volume marketing campaigns.

    A concept or niche eCommerce firm, on the other hand, might drive sales at a very low CPA because the customer is limited for such a category of products.


    With multiple companies already present in the Indian eCommerce sector, customers are pampered with large discounts, offers, deals, and easy return options, among other things, resulting in low margins.

    Logistics & Delivery

    Delivering products to customers is a big challenge for any new eCommerce business. Keeping in mind that eCommerce logistics differs from typical goods deliveries in that no middlemen are engaged in the final delivery of the product to the customer’s doorstep.

    The final mile delivery of the product to the customer is a vital component of eCommerce logistics. Several eCommerce firms have failed due to their inability to deliver to the last mile.


    Taxation was another key roadblock in India before the implementation of GST; prior to GST, taxation was a major reason for India’s lower eCommerce growth rate when compared to developed countries such as India. Tax slabs are uniform for all sectors in such countries, however India’s tax system varies from product to product and region to area. Because eCommerce is not confined to product categories or countries, this feature has caused accounting issues for any eCommerce organisation.

    Touch and Feel

    Customers in India have a more conventional mindset, and they prefer to buy things from physical stores rather than online stores. Buyers like to see, touch, and feel things before making a purchase decision, therefore eCommerce companies providing apparel, handicrafts, and jewellery confront difficulty selling their products.

    Mobile App to Drive Loyalty

    A mobile application for your retail store is certainly important if you want more loyal customers. According to Google, 84 percent of offline buyers who have a smartphone utilise it to seek assistance when shopping. Imagine how easy it will be for them to become your consumers if you have a mobile app for your own brand or store because they are already familiar with the e-shopping eCo-system. They can leave a review of your app on the Google Play Store or the Apple App Store, which will undoubtedly help you attract more new consumers.

    Consider These Factors When Choosing an E-Commerce Model

    The financial and operational benefits of e-commerce far outweigh the early set-up costs.
    It breaks down geographic barriers. E-Commerce allows you to attract international attention while operating from a single area. Your services and goods are instantly accessible to customers worldwide at the push of a button.

    Reduced Physical expansion burdens you with resource, real estate, and the resulting operational costing, whereas operational costs are simply concerned with logistics.

    It allows for a simple shopping experience. This is especially visible during the lockdown, as everyone who leaves runs the risk of becoming infected. This may be the best time to begin developing your online brand.

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