10 major reasons for failure of online shopping in India

Online shopping is trending day by day in India by providing goods and services to the customers. India is the country where computer users are increasing so as the online shopping trends are also increasing. eCommerce solution provider India are also increasing at very high rate. Everyone wants to save money and time and online business offers both for users.

Online shopping has scope in India because it has begun in metro cities and targeted at youngsters. Also internet especially on mobile is available like never before. People are more concerned about the products that they buy and they can easily find and select items while sitting at home. But it is not growing in India at some level.

The following are the reasons for failure of online shopping in India:

India is a low credibility country: India is actually a low credibility country. We buy a five rupee pen without checking whether it is writing properly or not then how can we expect to buy costly items without seeing, touching and feeling it. This is the one of the reasons for being low in online sector.

Cost of customer acquisition is very high: Some of the online companies are spending money on TV advertisements when the customer is spending lot of time on internet. The money they are spending to make customer aware they exist. Normally an online company spends Rs.1000 to acquire a customer of Rs.400 but it is not really worth.

Logistics is a big pain: Cost of logistics is high in this country. People depend on logistic service providers. The problem begins based on the performance of service providers towards the customer.

Shopping in India is source of entertainment: when people go for shopping they window shop, they shop, they gossip and they walk. It is not an activity but they are having fun while shopping. But in online shopping the scenario is completely different.

COD rejection rate is high: No organization will accept the products if the customers don’t accept the orders placed by them but the market sources make it between 40-60% of price.

Poor product quality: Selling a low quality product is worse than selling an expensive product. Some online shopping sites are selling low quality products which reduce the traffic to the website.

Ineffective marketing: While hiring people they should choose who is experienced in the field of online marketing and also they should know the logics in implementing the ecommerce. Marketing is the effective tool for shopping sites.

Failing to change with times: The ability to recognize opportunities and responding to the changes is less. So many companies failed in developing new areas of expertise.

Vendor management: It is not possible to have everything in stock. Vendors in India will never be able to provide a synchronization system. And they will end up accepting order for items not in their inventory.

Underestimating the competition: Some business owners underestimate the reaction of the competition in their businesses. Any owner of existing business perceives a new entrant to the company will be taking away some of their customers. They could do this by introducing new products, improving product quality etc.  

Ref - eCommerce solution provider India