Impact of E-commerce on India Economy – What Are the Challenges Faced by the Industry
ASSOCHAM reports, the e-commerce in India grew amazingly by 88% in the year 2013, in spite of slower financial expansion observed during the same year. The primary drivers of e-commerce in India are smart-phones and computers. In today’s state of e-commerce, every section of the goods and services are covered and traded online.
Nevertheless, in the survey, it was found that 90% of making the online purchase is carried out by the youngsters. Over the last two decades, the e-commerce has grown-up rapidly. However, over the times of yore, the sector has developed by approximately 36% CAGR from 3.9 billion USD in 2009 to a predictable 12.6 billion USD in 2013. It is believed, by the year 2020, the sector will be of value 80 USD billion. By this calendar year, 2016 the mobile users have raised to 173 million. While the expectation is this number of mobile users for e-commerce will increase 2.5 times to 475 million by the calendar year 2019.
The challenges of e-commerce
The e-commerce has its own challenges. The petite and micro-retailers worry about their turnover and threats of their market space to be stolen by the e-commerce in the upcoming years. The e-commerce will slowly and gradually expand which will gulp down the shops and small retailers. There are several reasons for not using the e-commerce. People are still not aware of the e-commerce and its benefits. They feel insecure about using online payment methods.
To expand the business is easier with the help of e-commerce. It helps the business in spreading over the world with minimum capital investment. The business can set more customers globally, thus enhancing and elaborating their business. Not only customers but also they can set a deal with suppliers and relevant business partners, which will help business to spread out. E-commerce perks up the brand image of the company. It provides end-to-end customer service by allowing the C-2-B (customer business) interactions. It makes the business faster and efficient and simplifies the business in many ways. The business is automatically well organized and efficient as the paperwork reduces. The paperwork is reduced or we can say paperwork is eliminated, as there is involvement of electronic devices. E-commerce boosts the productivity of the business. E-commerce enables the “pull” type supply management. The pull-type supply management means the production initiates only when the customer orders. The order is completed just in time.