Why ecommerce is not popular in India?

eCommerce is currently in trend and reaching new heights everyday in India. The process of buying and selling products through the internet has become quite popular these days. Nowadays everyone is using eCommerce websites or online portals very efficiently and the websites are providing all goods and services according to the customer’s needs. Also it is more comfortable way of shopping. India is the second fastest growing economy in the world having great population and growing internet is high in India. The penetration of eCommerce is low in India compared to markets like the United States and the United Kingdom. eCommerce players are facing challenges due to some reasons. According to a recent survey conducted by DesiDime the following are the top 10 eCommerce websites in India.

1. Flipkart
2. eBay India 
3. Snapdeal 
4. Amazon India 
5. Myntra 
6. Shopclues
7. Dominos 
8. Freecharge
9. Jabong
10. Tradus 

Most of the websites are popular in India too. For example, irctc.com is the biggest success in ecommerce in India. It reduced the pain of an Indian. It has become easy to people to book tickets online.

The following are the reasons why eCommerce is not growing in India:

Logistics coordination: we cannot deliver everywhere all by ourselves. One day or the other we need to depend on the logistic service providers. The performance of service providers will determine the goodness that we create with the customer. Because of these barriers between the services providers and customers problems will arise.

Cash on delivery: Now this has become one of the good services for eCommerce companies in India. The logistic companies actually charge to collect cash on their behalf. They charge a huge amount depending on the provider, total items offered and also package value to use our cash. This totally degrades the unit of economics. 

Lost and damaged items: Business owners are not responsible for the lost and damaged goods which neither the service provider nor the customer will not be liable for. So, nobody will bear the burden of lost or damages inventory. This is risky when we are counting on low margins and huge volumes.

Marketing:  Marketing for an eCommerce company is a completely different game. It requires more of technical knowledge too. The best choice to keep someone who is experienced in the field of online marketing and also they should understand that it is not same as regular marketing. They need to know some tactics for getting traffic and sales on the site.

Vendor management: Every brand/manufacturer will have their own style of packing, billing and logistics. It is not possible to have everything in the stock. Vendors in India will never be able to provide a synchronization system. And they will end up accepting orders for items not in their inventory. So, lack of efficient vendor management is also one of the reasons.

Ref - eCommerce solution provider India