E-commerce has finally taken roots in India. The e-commerce market in India is not as big as compared to the USA and UK but is growing at an equally fast and high pace. Wireless internet is playing big role. With 900 million mobile subscribers in India today, TRAI (Telecom Regulatory Authority of India) claims that 300 million use data. A report by the Internet and Mobile Association of India has revealed that India’s e-commerce market is growing at an average rate of 70% annually and has grown over 500% since 2007.
E-commerce development has helped business organizations, businessmen and end users to overcome the barriers of time and distance to sell, buy and carry out other business transactions across the globe. Keen on tapping the potential of the current scenario, several websites have sprouted with unique marketing strategies, these companies are redefining how business is done, successfully creating a place for themselves in the hearts of the Indian customer.
Adoption is highest for product categories that have low ‘touch and feel’ requirements such as travel and ticketing and financial services and specially the most dynamic group of e-commerce users is the 25-49 age class. They represent a driving force of e-commerce users. On the negative side there are many challenges faced by e-commerce sites in India, delivery of goods to consumer by couriers and postal services is not very reliable in smaller cities, towns and rural areas, excessive pricing is nlikely to be a major issue for e-commerce companies, poor internet penetration and customer’s lack of faith impose grave challenges, perishable goods cannot be purchased online. All these challenges can be countered with improvement in technology infrastructure and legal framework for e-commerce and in near future it would become an asset for common people.