Scope, Challenges & Future of Ecommerce Development Companies in India

In India, since last more than two years, many new innovations are responsible for the sensational growth in Ecommerce development company business, such as COD (Cash on delivery). In recent times, Ecommerce is not just selling or purchasing products online but also includes various processes like development, marketing, sale, delivery, service and payment.

As per Indian customers behaviour and personality, a large scope of online businesses can be seen with lots of Ecommerce varieties and products. In next century also, the experts predict an excellent and promising Ecommerce future.

In this blog we will be focusing on the Scope, Challenges & Future of Ecommerce development business in India.

Scope:

Experts have predicted after US and China, India is going to be the biggest Ecommerce destination in the world. Many things are responsible for this explosive growth in India, i.e. the growth in traffic in leading Ecommerce apps such as Snapdeal and Flipkart. Also, the craze of online shopping amongst Indian customers is increasing day by day especially on smartphones which accounts for more than 35% traffic (as per studies report from Snapdeal, Shopclues and Flipkart). In coming years this percentage figure going to reach millions of new customers with continuous increase in internet usage from Indians (presently ranked third in the world).

Also now the commonly used payment methods used by Indians for their transactions on their mobiles are simple mobile banking apps with debit or credit cards and also with cash on delivery.

Therefore, in India, an Ecommerce development company should focus and committed to allow its customers a seamless shopping experience in a secure manner with an expedient online payment solution.

Challenges:

E-Commerce may pose various challenges that can be too complex to handle for beginners:

• Internet Reach: In India, unluckily internet penetration is dreadfully low with only 0.5% of total population. Moreover, 3.5 % per thousand of population uses PCs and only 2.1 per cent have assess for telephone. So, in India for a common man, e-commerce is still out of the reach.

• Managing Logistics & Supply Chain: It is a great challenge to introduce logistics & supply chain for a guaranteed return policy. Failing to manage logistics in any specific area can lead to detrimental harm to beginner's future and its overall brand overall.

• Nonuniform Tax Structure: Nonuniform tax rate system is the another factor in Indian market that causes lesser growth rate of Ecommerce as compared to various other developed countries such as UK & US etc. These countries follow uniform tax structure for all sectors. But for Indian Ecommerece companies these tax structures varies for every sector and creates different accounting problems.

• Marketing and Branding Expense: On an Ecommerce website, a heavy cost of marketing and branding is involved to attract  customer's traffic and allow them to purchase a product. If a high volume of customers visit an Ecommerce site, then this significant cost can be brought to minimum on per customer basis. As per experts reports,  in the current e-Commerce ecosystem the average metric figure is between INR 500 – 1000 per customer that is not sustainable for even for a medium company.

• Decreasing Profit: In today's competitive Ecommerce market, a large number of players have introduced themselves to pamper customers with offers, discounts, taking returns and lots more that badly effect their profit margins.

• Touch and Feel: As Indian customers are more worried about their products quality especially in purchasing products like handicrafts, apparels, and jewelry etc. So they mostly prefer to buy these products physically to see and touch before finalising their purchase, rather than purchasing all of these items online.

• Privacy and Security: Online security and privacy risk of customer's personal information and accounts details is a major problem primarily caused by hacker mischiefs. If necessary security measures were not followed by Ecommerce companies, then it is sometimes risky for online buyers to transact with their credit or debit cards and net banking by exposing their banking information that usually     manipulated by hackers. This may badly effect Ecommerce with weakened online purchasing.

Future

The future of E-Commerce largely dictated by following factors:

• Social Media: Now a days, various social media networks i.e. Facebook, Twitter, Google+ etc. have become an easy medium for customer's login and purchase. As per survey, most of the decisions for online purchasing are made on these Social Media. Here, regular promotional posts persuade customers to purchase and also enhanced the chances of successful transactions to many times.

• Innovative Delivery Process: Many Ecommerce companies are working on various innovative measures to minimise human efforts and time especially in their delivery process, introduction of Drones in delivery can be good example for this. The proposal is now on fast track and is under consideration by DGCA for the feasibility of drones for civil use in India. If all parameter and guidelines are fulfilled then India might become the first country around the world to use drones for civil utilisation.

• Mobile App Only Model: As per experts predictions, in India by the year 2018, approx 6 billion people will have an internet access and amongst them more than 70% people will use internet on mobile phones only. So, this statistics confirms that mobile is the primary device for the future of internet use. Small cities and town are playing a major role in providing online traffic for big Ecommerce players like Flipkart. Therefore, Flipkart is now switching to app only model. It is now following mobile app only approach and focusing in small cities and town where large number of people have limited access for broadband and desktop.

• Buy Now Tab from Google: Google is also working to allow online buyers to search and purchase products on its search results page using a 'Buy Now' tab button easily with a single click. It will be clearly displayed on sponsored search results with a heading of 'Shop on Google'. On clicking this tab, users will be redirected to another page to select particular product specifications like design, color, size and a route for shipping etc. Finally, retailer will find complete order information including client's name and shipping address for dispatch.

• Focus On Artificial Intelligence: With ongoing saturation in the ecommerce space, now investor companies are focusing on innovative technology use to create solutions with artificial intelligence (AI). One of such solution is devised by Vizury for Jet Airways. It works to create an instant profile by sifting through the online individual public content, views, client's previous searches etc. According to this data, the airline companies predict their customer's behavior and decide to offer hotel deals or airfare discounts to them.

At current time while exploring the Indian market, it can be analysed that e-commerce is still in its growing stage. So it is a crucial time for corporate investors to ensure their business success in this emerging market. Also, the future research should primarily focus on analysing the research model for the development of e-commerce, such as investigating multiple cities and rural areas for more perfect and comprehensive results.

Source : articlesbase.com