E-Commerce in India is fast evolving and is expected to mature further in the ensuring years
Electronic commerce or E-commerce is such a popular word in this era of digitization that it’s really hard to neglect its presence. People moving towards the new ear; the digital era has adopted E-commerce as a medium to buy products, services in a more comfortable manner.
In years so far E-commerce has endowed its customers with variety of comfort on board with enormous options to look for in a vast brand band.
Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction’s life cycle, although it may also use other technologies such as e-mail.
E-commerce businesses includes online shopping i.e. web sites for retail sales direct to consumers, Providing or participating in online marketplaces, which process third-party business-to-consumer or consumer-to-consumer sales, Business-to-business buying and selling, Gathering and using demographic data through web contacts and social media, Business-to-business electronic data interchange, Marketing to prospective and established customers by e-mail or fax.
Individual or business involved in e-commerce whether buyers or sellers rely on Internet-based technology in order to accomplish their transactions. E-commerce is recognized for its ability to allow business to communicate and to form transaction anytime and anyplace. Whether an individual is in the US or overseas, business can be conducted through the internet. The power of e-commerce allows geophysical barriers to disappear, making all consumers and businesses on earth potential customers and suppliers. Thus, switching barriers and switching costs my shift. eBay is a good example of e-commerce business individuals and businesses are able to post their items and sell them around the Globe.
Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers’ ability to gather information about products and prices. Research economists have found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshops and travel agencies. Generally, larger firms are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend. Depending on the category, e-commerce may shift the switching costs—procedural, relational, and financial—experienced by customers.
In e-commerce activities, supply chain and logistics are two most crucial factors need to be considered.
Typically, cross-border logistics need about few weeks time round. Based on this low efficiency of the supply chain service, customer satisfaction will be greatly reduced. Some researcher stated that combining e-commerce competence and IT setup could well enhance company’s overall business worth. Other researcher stated that e-commerce need to consider the establishment of warehouse centers in foreign countries, to create high efficiency of the logistics system, not only improve customers’ satisfaction, but also can improve customers’ loyalty.
The e-commerce has changed the relative importance of time, but as the pillars of indicator of the country’s economic state that the importance of time should not be ignored. The e-commerce offers the consumer or enterprise various information they need, making information into total transparency.
The spread of e-commerce has lead to the rise of several niche players who largely specialize their products around a specific theme. As many as 1,06,086 websites are registered daily and more than 25% are for niche businesses.
Online apparel is one of the more popular verticals, which along with Computers and consumer electronics make up 42% of the total retail e-commerce sales.