Ecommerce has always been a major part of Indian business and there is no denial that eCommerce business is here to stay for a longer run. Many of us might not be knowing that the concept of eCommerce was first introduced in 20th century and from that time till now it has seen many changes,
India’s first interaction to the eCommerce was introduced through IRCTC. The government of India experimented an online strategy to make it convenient for the common public. From that time till now millions and billions of Indian citizens have booked their train tickets through IRCTC.
Here we will discuss some of common challenges faced by eCommerce industry especially in India:
Returns and Refunds – There have been many cases when the customer is buying the product online for the first time might not be knowing much about the product or they just wanted to try it. The saddest part for any eCommerce dealer is when a product is purchased from them and after few days of delivery they want to return it.
It might be true that much of the growth comes from new buyers, but when the product is returned it can cost the seller a huge deal and might end in unprofitability or even loss.
Cash on Delivery Preferred over Online Payment – Indian customers are always conscious while doing an online transactions and most of them prefer cash on delivery. Even the coming of credit cards have not been of great help for the eCommerce industry. Indian customers are very conscious as they might think they will land in some kind of fraud. Collecting the cash is a risky and expensive procedure.
Also many of the Indian payment gateways have high failure rate. Many of the website online users doesn’t even try the second time when the first attempt is failed. This can also result in more loss for an eCommerce company which is using an Indian payment gateway.
Low smartphone usage – Though there is an increase of mobile usage in India, but the usage of smartphones is still low in numbers. Most of the phones doesn’t have features by which they can carry out an online transaction. As the rates of smartphones have gone down in recent past we can expect more online transactions through mobile.
More Villages than Cities – There are many villages and towns of India where there isn’t a proper electricity or water supply. A large chunk of population in India are not connected to cities and transportation hence an eCommerce company loses a huge number of potential customers.
Huge Competition – India has the most number of startups that comes up each day. Even the government is trying its hand to give them foundation. There are many investors who are pumping up huge amount of investment to gain the market share in the industry. This has resulted in a wide range of choices among the Indian customers. Hence making it a stiff competition for eCommerce website owners.
Less Digital Expansion – Majority of the Indian population lies in the rural sector of India. Many of the eCommerce companies are not able to reach the potential customers mainly because many of them are not able to understand or want to try the eCommerce way of purchasing the goods online. As most of the need of a consumer is fulfilled from a nearby store they don’t feel the need to purchase goods from Online store.
Wrong Postal Address – Once an online order is placed you will be getting a call from the company asking the exact location where the shipment needs to be dropped. Most of the time the address provided is not correct hence making it much difficult for the consumers.
These were some of the challenges which an eCommerce industry faces especially in India. However there have been many successful online eCommerce websites in India, we would recommend you to explore Ecommerce VPS with HostingRaja and get the best services for starting your eCommerce website.