Introduction
In simple terms, E-commerce is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business.
Benefits of E-commerce
1. Fast selling goods and services/ Transmitting funds and data
2. Electronics fund transfer
3. Fast supply chain management
4. E-marketing Online Transaction Processing
5. Automated Inventory Management System
6. Your online presence will help you engage with your customers
7. The scope of getting new customers increases
8. Helps you save on Operational cost
9. Data-driven selling- Businesses get to know their customers better by understanding what they buy the most. Understanding the buying habits of the consumer. Businesses also get the contact information of the client that is there email id and phone numbers. Which will help them to market other similar products to there customers?
10. Digital branding makes it fast and cost-effective
11. Digital sales pitching is more clear
12. 24/7 Operating Business - In a physical store you have a time limit but not here.
13. Profitable & Scalability- Business can decide their margin and to scale up easily unlike a having a physical store.
14. Affordable employees and IT infrastructure. Business could work through a virtual office & get a ready-made IT infrastructure because Amazon, eBay, Flipkart has already created a marketplace for selling.
15. Fast order processing despite huge marketplace
16. Businesses could increase the speed of order processing that too in a marketplace that is so huge.
Challenges of E-commerce
- Site crash
- The customer can’t try before they buy
- The customer can be impatient if limited information
- Shipping delays can be irritating
- Constant upkeep of technology and inventory
- High competition, Low margin & marketplace fee
- Limited control over customers because they become loyal to the platform you sell your product in like eBay, Flipkart, and Amazon.
The scope of E-commerce in India
India's e-commerce industry's sales rose 40 percent year-on-year to reach Rs 9,000 crore (US$ 1.5 billion) during the five-day sale period ending September 24, 2017, backed by huge deals and discounts offered by the major e-commerce companies.
Mobile penetration - We have about 119 crore unique mobile connections in India. Out of 119 crores, mobile internet penetration is 48 crores. The number of people using internet on mobile is 48 crore. According to Telecom Regulatory Of India (TRAI) in the next three years by 2021 from 48 crores it is going to become 82 crores by 2021. The total mobile internet penetration average growth rate is 19% and India's growth rate is 90% internet penetration.
India, as we know, is the 3rd largest e-commerce economy in the world after China & USA. In the coming few years India will be able to surpass the USA but to surpass China will be a bit difficult because China has become very strong in the E-commerce market.
The most growth in e-commerce in India is in electronic goods. 47% of electronic goods sales purchase automatically is growing every year. Even apparel is also a good market. E-commerce in apparels is also growing by 33% every year. This shows us the tremendous potential that E-commerce has in India.
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