The e-commerce industry in India faces several challenges including high customer expectations, a preference for cash on delivery payments, and low internet penetration outside of major cities. However, the industry is growing rapidly with estimates that the market will reach $31 billion by 2016 and $100 billion by 2020. To overcome challenges, companies need to focus on secure payment options, easy returns, high quality products, and expanding delivery into smaller towns. Success will also depend on understanding customer preferences and building trust.

1. Challenges for
Indian
E-commerce
industry
Prepared By
Imran Khan
MBA-II
15781E00N2

2. Topics of Discussion
• Introduction
• Prospects & Growth
• Major challenges
• Solutions
• Conclusion
• Reference

3. Introduction
• E-commerce is the purchasing , selling & exchanging goods
and services over computer network or internet through
which transactions or terms of sale are performed
electronically. (paperless)
• The concept of e-commerce is all about using the Internet to
do business better and faster.

4. The E-commerce Process

5. Prospects and Growth
• India, the second most populous country in the
world, is home to 1.2 billion people.
• The growth of ecommerce volumes in India is
attracting the attention of players around the
globe. (Alibaba- Chinese giant)
• Estimated size of India’s Ecommerce market by
2016 is $31 billion and $100b by 2020
• Compounded annual growth rate of Ecommerce
market in India between 2008 – 2015 is 56%

6. • E-commerce is advancing at a scorching pace,
and a lot of e-commerce websites enter the
business daily with a survival rate of less than
10% after the first year.
…cnt’d

7. …cnt’d
The Pain
• This industry is brutal and demands businesses to
arm themselves with state-of-the-art (modern
methods) solution to differentiate themselves from the
crowd.
• Ecommerce business takes at least 6 to 8 years to
yield profits
• Companies are growing only by increasing their
market share & market value but not by returning
profits.

8. Warranty, Discounts,
free home delivery,
high quality
Merchandise Return
Major Challenges
Price War Among
Retailers
Payment Gateways
Have A High Failure
Rate.
Increasing Customer
Expectations
Cash On Delivery Is
The Preferred
Payment Mode
Internet Penetration Is
Low. (0.5%)
Overfunded
Competitors
Logistics Is A Problem
In Thousands Of
Indian Towns.

9. Solutions to Challenges
Accept Returns happily
• The cost of operation can be minimized with proper returns management
with seamless interaction platform with logistic partners and vendors.
• Recently, a new startup has initiated to handle returns through kiosks
Easy Payment process
• Mention the purchasing instructions clearly on home page of your website.
You may also provide a small video or animation. Instead of email a flash
message on screen, like “Your payment has been done.”
• Try to provide more number of options to the customers for payment.
• Customers must be confident about the store and should familiar about
online purchasing processes. They should use well networks and devices
for payment. Slow network or bad devices give negative results.

10. Securities concern
• Bring confidence in customers through some branded logos.
• Provide customer service through phone or internet.
• You can not give the most excellent internet marketing services without a well
ecommerce website with some extraordinary advantages.
• Customer Interaction Management (CIM) technology makes sure every customer
is under the radar.
• With effective customer nurturing technology tools and multimedia integration
improves customer retention scores and are more likely to transform one-time
purchasers to brand advocates.
• Make sure to compete with Chinese giant Alibaba
Customer Loyalty
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11. Quality Focus
• Assure customers that the product looks and works as it is perceived.
• The new regulation entails equal percentage of discounts for both off and online
business so quality can be a handy tool.
Over Sea’s Opportunities
• Over 2 Crore Indians are living across the world
B2B has more opportunities
• Dealing with businesses is comparatively easier than dealing with retail customers
Ease with language
• Reach to the small enterprises using languages (regional) of the owners of the
small enterprises to enable them to adapt e-commerce processes.
…cnt’d

12. Tire - 1 Cities
Tire - 2 Cities
Tire - 3
Cities
High
populated
Towns
Where to focus? …cnt’d

13. CONCLUSION
• The discussed problems have are arised due to
customer’s mind-set & their purchasing habit,
Government policy, technological failures, intense
competition and logistic issues in India.
• Other than major cities, new prospects should be
sought out
• Create Physical Shopping Experience in Online
• Along with ease of payment security should be
utmost taken care of.

14. Reference
• www.google.co.in
• http://online-ecommerce-tips.blogspot.in/2010/06/g2c-
government-to-citizen.html
• http://www.tutorialspoint.com/e_commerce/e_commerce.
htm
• http://www.pwc.in
• www.ameyo.com
• www.companiesinindia.net
• http://ubiquity.acm.org/article.cfm?id=763945
• http://www.digitsmith.com/ecommerce-definition.html