Indian E-Commerce market is predicted to be one of the strongest economy according to the recent industry report, ‘E-commerce: A boon for the current economic downturn‘. “By the end of 2011, the e-commerce market in India had clocked close to Rs 50,000 cores.” it says. The current e-commerce market in India is around US$ 10 billion and has the potential to grow between $125 billion – $260 billion by 2024-25.
It proclaims, ” Today, consumers across urban India are confident enough to make purchases that exceed Rs 20,000 – 25,000 up from Rs 2,000 – 5,000 range in the recent past”. According to the report, “it estimates business-to-consumer (B2C) e-commerce, including both retail e-commerce and online travel
sales, will total to $18.7 billion in 2012, a growth of 21.9% over the previous year.”
The key reasons for the success of e-commerce are summarized below.
E-commerce open doors for shopping anytime where customers can make their shopping at ease anywhere and at any moment.
Reduced operational cost:
Online Business avail less infrastructural investment and associated labour costs which drives up the profit margin. In turn its benefited to the customers in the form of discounted pricing.
Easy to compare:
Easier and quicker to compare the prices of the goods online. One can explore products across global markets via e-commerce.
Safe & secure:
Online Payment method must be reputable and trustworthy. In India, all payment transaction providers are required to comply with the security requirements laid out by the Reserve Bank of India making the system more robust and reliable.
Increased reach for the merchant:
The customer finds the venture across geographic markets, the merchant too is able to display his product to customers in new territories that are now connected by the online network.
Social media trend:
With the growing support of Socialmedia the businesses have now begun to engage their customers by promotions, sales and new products are increasingly showcased through such channels and mobile apps.
These e-commerce developments may have been accelerated by the global economic downturn which may be driving consumers to find new ways of reducing their costs of living. The e-commerce landscape will continue to evolve rapidly as even more new start-ups are launched addressing existing and new market opportunities.