eCommerce in India: Overview and Reasons for Growth

by India Reports on October 28, 2009

in ecommerce, Internet Advantage & Trends

India’s eCommerce industry is on the growth curve and experiencing a spurt in growth. The Online Travel Industry is very well developed and is booming largely due to the Internet-savvy urban population. The rest of the segments, categorized under online non-travel industry, include e-Tailing (online retail), online classifieds and Digital Downloads (still in a nascent stage).

Though eCommerce took a beating in the dotcom bust, it seems set to grow globally. The global revival of eCommerce is having a ripple effect in India too where the B2B (Business to Business), B2C (Business to Consumer), C2C (Consumer to Consumer), G2B (Government to Business) and G2C (Government to Citizens) segments are showing rapidly increasing activity over the past few years.

India has its share of success stories in the B2C segment in the form of Indiatimes.com, Rediff.com, Shaadi.com, Indiamatrimony.com, ebay.com, MagicBricks.com, Monster.com and Makemytrip.com etc. These and such other portals are generating a lot of interest and increasing transaction traffic. Smaller businesses have jumped onto the bandwagon by offering products and services online and have successfully carved out niches for themselves. The online community is growing by leaps and bounds as an increasing number of consumers have started transacting online because the initial fears and apprehensions are being laid to rest.

Research studies have indicated several factors responsible for the sudden spurt in growth of eCommerce in India such as:

Rapidly increasing Internet user base
Technology advancements such as VOIP (Voice-over-IP) have bridged the gap between buyers and sellers online
The emergence of blogs as an avenue for information dissemination and two-way communication for online retailers and eCommerce vendors
Improved fraud prevention technologies that offer a safe and secure business environment and help prevent credit card frauds, identity thefts and phishing
Bigger web presence of SME’s and Corporates because of lower marketing and infrastructure costs.
Longer reach – Consumers in the Tier II & Tier III cities are fast realizing the potential of the Internet as a transacting medium
The young population find online transactions much easier

eCommerce offers several benefits to businesses

Easy reach to a fast growing online community
Unlimited shelf place for products and services
Fuse the global geographical and time zone boundaries
Helps reach national and global markets at low operating costs

There is a growing awareness among the business community in India about the opportunities offered by eCommerce. Ease of Internet access and navigation are the critical factors that will result in rapid adoption of Net commerce. Safe and secure payment modes are crucial too along with the need to invent and popularize innovations such as Mobile Commerce.

Read more about the eCommerce industry in India in the eCommerce in India report on www.india-reports.com. Click here to download the report http://www.india-reports.com/summary/ecommerce_in_india.aspx

Be Sociable, Share!