eCommerce in India
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a? To learn about the existing trends in e-commerce industry today a? To analyse in depth the benefits and limitations of online transactions of products a? To examine the online shopping sites prevalent in Coimbatore such as the
mall.coimbatore which is an online shopping store and personal buying assistant in Coimbatore a? To observe the future of the industry and recommend improvement ideas
India, one of the fastest growing economies presents a world of opportunities to entrepreneurs, investors, and researchers with an interest in the global economy. India¶s eCommerce industry is on the growth curve and experiencing a spurt in growth. With this increased interest comes a surge in demand for facts, trends and indicators. Highly concentrated urban areas with very high literacy rates, a vast rural population with fast increasing literacy rate, a rapidly growing internet user base, technology advancement and adoption and such other factors make India a dream destination for ecommerce players. Ecommerce combines web technology with business economics. As of the last 10 years, online visibility for such online enterprises now heavily rely on the relationship between the own online sales platform and Search Engines for improved traffic consisting of presumable
customers with the intent of acquiring products or services related to the customers¶ needs. In 2008 an Internet behavioural analysis showed that over 90% percent of internet users make use of search engines at least once a week, stating that online visibility through the use of search engines now is a crucial business marketing aspect.
^ The eCommerce industry continues to grow at a rapid pace translating the rules of traditional retailing and enabling merchants to tap into customer segments, demographics and regions that were difficult to access through the traditional retailing methods. As the rapid Internet Penetration, the widening network of online payment solutions, the progressively wider acceptance of online commerce and the maturity in fulfilment solutions provide a robust backbone for wider and rapid adoption of eCommerce, merchants today are also faced with some of the most unique challenges retailing has ever witnessed. ECommerce business houses small or big, generic or specialized, today need to deal with fierce global competition right at the doorstep. Rapid loss of differentiation, extremely price sensitive fickle customer loyalty, evolving global regulations, short product lifecycles and dropping margins are just some of the significant business challenges that eCommerce business today need to deal with upfront. These challenges require merchants to develop unique strategies to liaison with partners & service providers and adopt radical strategies for eMarketing, Internet Advertisement, Brand identity management, pricing, fulfilment, payments, channel convergence, customer behaviour analysis & personalization and an online as well as offline shopping experience besides core commerce that is beyond the realms of traditional eCommerce.
c E-commerce is the process of buying and selling of various products and services by businesses through the Internet. It deals various kind of business concern, from retail site of the consumer, which includes auction. The main focus is to concentrate on business substitutes involving goods and services between various corporations. E-commerce is the purpose of Internet and the web to Conduct business but when we concentrate on commercial deals among organizations and individuals demanding selective information systems under the guarantee of the firm it accepts the form of e-business. Nowadays, the word µe¶ is hitting momentum. If you¶re looking to get into this business, one of the fore most things you have to have is a Virtual Private Cloud Hosting keeping the traffic in mind and respecting customer¶s valuable time. There are primarily five types of e-commerce models:
B2C stands for Business to Consumer as the name suggests, it is the model taking businesses and consumers interaction.? Ônline business sells to individuals ? The basic concept of this model is to sell the product online to the consumers. B2C is the indirect trade between the company and consumers. It provides direct selling through online. For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from supplier¶s website. Directly interact with the customers is the main difference with other business model. As?B2B it manages directly relationship with consumers, B2C supply chains normally deal?with business that are related to the customer ?
B2B stands for Business to Business. It consists of largest form of Ecommerce. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler. Dell deals computers and other associated accessories online but it is does not make up all those products. So, in govern to deal those products, first step is to purchases them from unlike businesses i.e. the producers of those products ³It is one of the cost effective way to sell out product throughout the world´ Benefits: a?
Encourage your businesses online
a?
Products import and export
a?
Determine buyers and suppliers
a?
Position trade guides
C2C stands for Consumer to Consumer. It helps the online dealing of goods or services among people. Though there is no major parties needed but the parties will not fulfil the transactions without the program which is supplied by the online market dealer such as eBay.? u u u u
It is a discipline that deal itself which assists people to instantly shares related computer files and computer sources without having to interact with central web server.?If you are going to implement this model, both sides demand to install the expected software so that they could able to convey on the mutual platform. This kind of e-commerce has very low revenue propagation as from the starting it has been tended to the release of use due to which it sometimes caught involved in cyber laws. Ñ
It deals with conducting the transactions with the help of mobile. The mobile device consumers can interact with each other and can lead the business. Mobile Commerce involves the change of ownership or rights to utilize goods and related services. ?
?
! This report provides a brief overview of the ecommerce in India with information on the market characteristics, the various ecommerce models, key players and the future potential of the e-commerce industry.
" c #$ # !# %
The Ônline e-commerce Industry is very well developed and is booming largely due to the Internet-savvy urban population. The segments are categorized under travel industry and online non-travel industry, include e-Tailing (online retail), online shopping, online classifieds and Digital Downloads are still in a nascent stage). Though eCommerce took a beating in the dotcom bust, it seems set to grow globally. The global revival of eCommerce is having a ripple effect in India too where the B2B (Business to Business), B2C (Business to Consumer), C2C (Consumer to Consumer), G2B (Government to Business) and G2C (Government to Citizens) segments are showing rapidly increasing activity over the past few years. India has its share of success stories in the B2C segment in the form of Indiatimes.com, Rediff.com,
Shaadi.com,
Indiamatrimony.com,
MagicBricks.com,
Monster.com
and
Makemytrip.com ,ebay.com etc. These and such other portals are generating a lot of interest and increasing transaction traffic. Smaller businesses have jumped onto the bandwagon by offering products and services online and have successfully carved out niches for themselves. The online community is growing by leaps and bounds as an increasing number of consumers have started transacting online because the initial fears and apprehensions are being laid to rest. Research studies have indicated several factors responsible for the sudden spurt in of eCommerce in India such as: a?
Rapidly increasing Internet user base
a?
Technology advancements such as VÔIP (Voice-over-IP) have bridged the gap between buyers and sellers online
a?
The emergence of blogs as an avenue for information dissemination and two-way communication for online retailers and eCommerce vendors
a?
Improved fraud prevention technologies that offer a safe and secure business environment and help prevent credit card frauds, identity thefts and phishing
a?
Bigger web presence of SME¶s and Corporate because of lower marketing and infrastructure costs.
a?
^onger reach - Consumers in the Tier II & Tier III cities are fast realizing the potential of the Internet as a transacting medium
a?
The young population find online transactions much easier
E-Commerce offers several????
a?
Easy reach to a fast growing online community
a?
nlimited shelf place for products and services
a?
Fuse the global geographical and time zone boundaries
a?
Helps reach national and global markets at low operating costs
There is a growing awareness among the business community in India about the opportunities offered by eCommerce. Ease of Internet access and navigation are the critical factors that will result in rapid adoption of Net commerce. Safe and secure payment modes are crucial too along with the need to invent and popularize innovations such as Mobile Commerce. u #& # ECommerce referring to the process of trading goods and services through an electronic medium such as the internet has gained tremendous popularity in the recent years. ECommerce involves paperless transactions and usage of EDI (Electronic Data Interchange), electronic mail, bulletin boards, fax transmissions, and electronic fund transfers.
With
advancements in technology, there have been changes in the methodology for business transactions. India, being a rapid adaptor of technology is apace with the current scenario of electronic data exchanges and has taken to eCommerce. The number of eCommerce transactions have increased manifold. People use credit or debit cards for making purchases in an online store. ECommerce is being used for purchase and sale of multiple products and there are multiple players using various portals and websites for this purpose.
The popular ?? in India involve the following:
¦" # # se of eCommerce in India is increasing in the travel segment. Ônline travel industry is expected to be worth S $6 billion in 2011. It is the most successful eCommerce initiative in India. It has contributed Rs 340 Million to the total eCommerce business of Rs 900 Million. The Indian Travel Ministry has introduced a travel portal called Incredible India. This portal is a big success as tourists can easily contact travel agents, tour operators and hoteliers easily. This portal has also caused a surge in medical tourism to India. By the year 2010, the medical tourism market in India is expected to be around S$ 2 million. Ôther travel portals include Makemytrip, Yatra, Cleartip, and Travelguru. Makemytrip has targeted revenue of Rs 230 Million for the financial year ending March 2010. " ! # # Due to improved broadband connections and increased penetration of credit card facilities to a wider population, eTailing or online retailing is witnessing a substantial growth. Internet retailers provide a wide range of facilities to the consumers, including discounted prices, comparison of product features offered by various vendors, areas where the products can be procured, etc. Currently, the online retail industry in India is estimated to be worth Rs 110 Million. By 2013, India is expected to have the third largest internet user base, which improves the prospects of online purchases. Some of the retail stores offering online retail facilities
include:
Reliance's
Rmoneymall,
Pantaloon's FutureBazaar.com,
Videocon's eDigiworld.com, Vishalmart's Vishalmegamart.com, and the Tata Group's Westside. " # ' # # Ônline stock trading activity is gaining momentum in India. Services offered by the online stock trading companies include online buying and selling of stocks and shares, market analysis and research, details of companies, comparison of companies, and research on equity and mutual funds, customer services through email and chat. Ônline trading also has an added advantage of real time stock trading without calling or visiting the broker's office. Major online stock trading websites in India include: ICICIDirect.com, Sherkhan.com, Indiabulls.com, 5Paisa.com, Motilal Ôswal Securities, HDFC Securities, Reliance Money, IDBIPaisaBuilder, Religare, and Kotak Securities.
" ¦ The Indian population accesses the internet from home, office, and cybercafés. There is a large segment of population that is fast adapting to internet. Advertisers have identified the internet as a medium for enhancing the awareness for their business activities. Ônline advertising in India is expected to cover all organizations and their products. The online advertisement industry grew to Rs 3250 million in India, accounting for 38% growth rate in 2008-2009. The growth rate for the year 2009-2010 is expected to be 32% which amounts to Rs 4300 million. c" ( Another area where eCommerce is widely used is that of employment. Internet has simplified the process of search for 'right people on the right job'. There are a number of web portals and sites that match a prospective employer's requirements with that of candidates applying for that job. Some of the popular job sites in India include: Naukri, Monster India, Times Jobs, Careerjet, Naukri Hub, Career India, Bixee, ClickJobs, CareerAge, and Freshersworld. "!#c # u # There are a number of real estate portals and sites that provide information to users regarding the property they wish to buy/sell. This information includes properties available for sale/purchase, the cost, location, etc. Some of the popular real estate portals include: Indiaproperty.com, 99acres.com, Magicbricks.com, and Makaan.com. %" Ñ# ) Matrimony eCommerce portals provide the seekers appropriate information regarding the prospective matches, region of their residence, their religion, caste, etc. Allied services are also provided to the listed members. These services include: astrology, information on customs and rituals, legal issues, health and beauty, fashion, wedding planners, etc. Some of the
leading
matrimony
Bharatmartimony.com,
portals
in
India
Indiamatrimony.com,
^ifepartnerIndia.com. % ! # # u
include: and
Shaadi.com,
Jeevansathi.com,
Simplymarry.com,
and
The Government of India laid down the Information and Technology Act in 2000 and became the 12th country in the world to have cyber-laws. The IT Act of 2000 covered the following aspects: a. ^egal recognition of electronic documents b. ^egal recognition of digital signatures c. Ôffences and Contraventions d. Justice Dispensation Systems for Cybercrimes The IT Act 2000 was substantially modified through the Information and Technology Amendment Act, 2008, which came into effect from Ôctober 27, 2009.The IT Act of 2008 covered amendments that provided additional focus on information security. It has added sections on offences, such as Cyber terrorism and Data Protection. This act, however, has been criticized because of lack of legal and procedural safeguards to prevent violation of civil liberties of Indian people. ^# # # # ¦ The IT Act covers cyber laws and crimes, which are subject to the Indian Penal Code. Such cyber crimes include: a?
Crimes related to technical aspects, such as unauthorized access and hacking, Trojan attack, virus and worm attack, email related attacks (email spoofing and email spamming, email bombing), and denial of service attacks (DÔS). DÔS include: Ê?
Consumption of limited or non-renewable resources like NW bandwidth and RAM, alteration or destruction of configuration information, destruction or alteration of network components, and pornography.
Ê?
Forgery
Ê?
IPR violations, which include software piracy, copyright infringement, trademark violations, etc. This also includes cyber terrorism, Banking and credit card related crimes, eCommerce and investment frauds, sale of illegal articles, defamation.
Ê?
Cyber stacking, identity theft, data diddling, theft of internet hours.
Ê?
Breach of privacy and confidentiality.
Ñ u# ! #
u# Ônline payments are generally credited to the intermediaries like PayPal, who transfer these payments to merchants. To address this situation, Reserve Bank of India has issued new norms for facilitating eCommerce transactions. As per the directives, the payment will be credited directly to the merchants and not the intermediaries. With this arrangement, money will be available to the merchant within 3 days of transaction. This will expedite shipping of goods to the customer on time. Ônline transactions require use of electronic cards ± credit or debit. The credit card market is currently not too vast, with less than 25 million credit cards issued in the market. However, debit cum ATM cards are widely used by account holders. ! # # a?
Issue appropriate instruments (cards) to facilitate online payments: For example, all debit cards are ATM cards, but all ATM cards are not debit cards. Additionally, there are some co-operative banks offering internet banking facilities. This facility is mostly for checking account balance, and this should be extended to online transactions as well.
a?
Take steps to improve debit and credit card penetration. RBI should specify a time frame to banks to issue credit cards, debit cum ATM cards.
a?
Improving the network connectivity of ATMs: sers can use one bank¶s ATM card for holding transactions with another bank because these ATMs are connected to BANKS ATM network. Several banks still need to be connected to this network. RBI should facilitate to expedite this connectivity.
a?
Improving payment gateway infrastructure: There is a need to improve payment gateway infrastructure in the country. The payment gateways should accept all credit cards, debit cards, and internet banking facilities that all banks are offering. RBI should provide a mandate to the payment gateways to integrate such services of any new bank within some stipulated duration of the new bank operations going live.
E-business provides unique opportunities for enterprises to exchange goods and services with substantial improvements in operational efficiencies, transaction costs, and customer satisfaction. An effective e-business solution enables your entire value chain and can give you a sustainable competitive advantage by improving processes and creating stronger relationships with your business partners and customers. Internet Commerce or E-Commerce (Electronic Commerce) uses online electronic technology connected via the Internet to assist and
enhance
a
variety
of
business
processes,
functions
and
systems.
Running an online business can be an overwhelming task. Extending a business to the Web and opening an e-commerce storefront requires merchants to master many tasks not only website development and design, but also maintaining the confidentiality and security of consumer
data
and
accepting
and
processing
payments.
? ? ? are not just available to large corporations and government departments and many small to medium businesses are discovering new cost -effective opportunities to use Internet - related technology to help their business operations locally and internationally. ?
? ? ? Shorten procurement cycles through on-line catalogue, ordering and payment. Cut costs on both stock and manufactured parts through efficient JIT and QR systems that reduce the inventory and facilitate automatic replenishment. Shrink product development cycles and accelerate time-to market through collaborative engineering and product customization. c ¦# a? Supply chain management a? Video on-demand a? Remote Banking
a? Procurement and purchasing a? Ôn-line marketing and advertising a? Home shopping
# # Today's computer systems, linked by global networks, face a variety of security threats that can result in significant financial and information losses such as credit card numbers, financial data or medical history. To minimize risk, win customer confidence, ultimately, gain a competitive edge. We can arrange with leading Security provider, for Secure Sockets ^ayer (SS^) technology, which is the industry- standard protocol for secure, Web-based communications and your web server is ready to work with if it's from Apache Freeware, C2Net, IBM, ^otus, Netscape, Microsoft, Ôpen Market, or dozens of other vendors. ¦ # # # # # # c $ There are several advantages and disadvantages of electronic commerce application for customers, business and non-profit organizations. Different levels of product information can be obtained online globally through the Internet, which makes very easy for customers to compare and evaluate the particular product or service. Electronic commerce can offer wide range of choices to extend markets and opportunities to both consumers and business firms. Customers could save delivery time because of contribution of digital services and product. Ôn other hand, business firms could decrease operating and marketing cost and increase profit. The negative aspect of electronic commerce includes different anticipations of products such as clothes when the customers are purchasing online. Another disadvantage associated with electronic commerce includes issues related to security and privacy of customers¶ credit card detail. c c $
The invention of electronic commerce has changed the conventional means of online exchanges and transaction. It is generating a novel ? ? ? ? ? ? ??? in a more competent way. The world wide structure of the Internet and the very low prize of using it, allows the interconnection of novel and present information and communication technologies. It provides business firms and consumers a pioneering and strong information system and another medium of communication. This changes the way consumer search and purchase goods or services among the highly customized, distributed and exchanged different products or services.
# c # The latest report on Ecommerce in India published by the IAMAI (Internet and Mobile Association of India) indicates a healthy growth rate over the previous years. PC users have increased from 72 million in 2009 to 87 million in 2010. This is primarily due to the penetration of PC into the lower Socio Economic Classes (SEC) spread across smaller towns in India. With increasing literacy rates and growing incomes, people from these classes have readily adopted the Internet for Ecommerce and other uses. Claimed Internet sers (those who have used the Internet at least once in the past) have grown by a substantial 20% in 2009 over 2008. This rate is significantly higher than the growth rates in the previous years. The Internet penetration level in small towns of rural India has increased from a mere 5% in year 2000 to 36% in 2009. The Internet usage figures of these smaller towns have even overtaken those of the Top 8 Metros indicating the impact of the Internet on the lives of people residing in rural India. The recent survey conducted by Nielsen, India has emerged as the 3rd biggest nation when it comes to online shopping and using a credit card online. Drawn by the facilities offered by the Web and the diversity of products available on it, Indian netizens have emerged as the third biggest credit card users globally for online purchasing, next only to the Turkey and Ireland. The survey shows more than 85 per cent of Internet users in the world are purchasing goods or services online, with credit cards as the most used method of payment. Despite the improved penetration of Internet usage, both in urban and rural India, the actual figures are far short unlike in the S and Europe. India¶s economy is pegged at about Rs.1.2 trillion (by 2008 estimates) and its Ecommerce market is approximately Rs.9000 ± 10000 crore (nearly S$ 2 billion). In comparison, the S economy is $14.2 trillion and its Ecommerce market
(B2C) is estimated at $ 220 billion in year 2008. Thus India¶s ecommerce to GDP ratio is disproportionate considering its economy is 7% of the S economy but the size of its ecommerce market being only 1% that of the S. These figures, though disappointing, indicate the potential for growth of India¶s Ecommerce market and that it is getting there ± slowly but surely. There is still tremendous scope for investors and entrepreneurs in India¶s Ecommerce space. c ! # # With internet reaching a wider base of population, eCommerce transactions happen over a vaster segment of Indian society. According to the survey conducted by Internet and Mobile Association of India (IAMAI), the rural internet users have outgrown the number of urban internet users. According to the eBay Census Guide 2009, India has 2471 eCommerce hubs. These hubs are spread over the entire country and cover cities, towns, villages, and smaller towns. All 28 states and 7 nion Territories have witnessed eCommerce transactions. It was also found that rural Indians are actively involved in online shopping. Ônline buying and selling trends have been observed in Bundy (Rajasthan), Thevaram (Tamil Nadu), and Tezpur (Assam). Ônline shopping is underway in 747 rural towns of India. The study reveals that 181 rural towns, including Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra, and Gujarat are active entrepreneurship hubs. These hubs cater to online selling in India and worldwide. * # India is the fourth country in terms of Internet usage. The internet-savvy population has a number of online markets catering to a huge number of products. The eCommerce market in India is expected to be around Rs 950 Million, out of which market for online shopping is at Rs 130 Million. The global growth rate for online shopping is around 8%-10%, but India has a much higher growth rate of 30%. Some of the areas that have observed a successful eCommerce activity include: # # : In India, it is the most successful eCommerce initiative. It has contributed Rs 340 Million to the total eCommerce business of Rs 900 Million. : In metro cities, particularly Delhi and Mumbai, online shopping is becoming popular. Some of the stores providing online shopping facilities include: The
Bombay Store, Big Bazaar, Pantaloons, and shopping portals on websites such as www.rediff.com. ^# # # : Mumbai is India¶s leading eCommerce marketplace. Delhi ranks second in online shopping activity. India¶s top 5 eCommerce hubs are: Delhi, Mumbai, Chennai, Jaipur and Bangalore. According to a survey conducted by eBay, India had about 2,471 eCommerce hubs in 2009. In this year, all 28 states and 7 nion Territories of India witnessed eCommerce transactions. Additionally, the survey reveals that most of the eCommerce transactions originate from Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra, and Gujarat. These are the cities where most of the IT hubs are located.
c # Coimbatore is the 15th largest eCommerce Hub in the country, according to a recent study released by eBay India, the e-commerce marketplace. In 2008, eBay India Census ranked Coimbatore as its 28th hub. m ?? The eBay Census Guide documents the trends in online buying and selling across the country. An e-commerce hub has been defined in it as selling and buying transactions (global and domestic) on eBay from the city, according to a release from the company. The release said that India had over 2,470 e-commerce hubs. Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra and Gujarat were the most wired States in the country and these had most of the eCommerce cities. The study also found that online shopping was active in 747 rural towns in the country. Ôf these nearly 180 were active entrepreneurial hubs that sold to buyers in India and other countries.
? ?? According to the press release issued here, Coimbatore entrepreneurs sold mostly Indian stamps, Indian notes, gold plated bangles, toys and T-shirts. They purchased through online products such as handsets, CP s, Indian stamps, British Indian coins and diamonds.
#"# "
The mall.coimbatore is an online shopping store, which is your personal buying assistant in Coimbatore. Browse the stores in this cybermall. Shop for yourself, or order a gift. It is possible for any product to be shipped to any place in India. You can also select items that are shipped worldwide. If you don't find what you are looking for, you can contact them through live help available between 9:00 AM to 6:00 AM, Monday to Saturday. You can shop for almost everything here including, a? Food products a? Books a? Magazines a? Cds a? Beauty products a? Home Appliances a? Gift Vouchers a? Health Coupons
They will find it for you right away! Treat your near and dear to tasty Italian dishes not available anywhere else in Coimbatore. There is assurance of +,,-security in visiting the site. Regarding the delivery of food products, the dishes are packed hygienically and delivered in fresh, hot condition. ) . ## #' " u#u At mall.coimbatore.com they value customer¶s privacy. They will not sell or rent your personal information to anyone. The details of your purchases are not revealed to third parties. They use the information collected about you to personalize the services offered, to speed up your orders, and to serve you better. Your email id's are not sold or hired outside. Your credit card info is very secure on mall.coimbatore.com. Here is why:
a? nlike other websites, they ? capture or store any credit card information on our
servers. All card information is ? ? by a secure (https) page to Authorize.Net or PayPal. This is more secure than the method used by many websites. a? Additionally, your card CVV number is an added security feature to help protect you
against misuse of your card. The CVV Number is a group of 3 or 4 digit numbers printed on the back of the card, immediately following your credit card number. c/ They strive for excellence in whatever they provide and focus on continuous improvement in interactions with people, efficiency of products and their delivery, and the well being of the site. They mainly give importance to customers, both internal & external, by giving them priority.
They strive to exceed their expectations in terms of the value and quality
delivered. They ensure consistency between their words and actions, always delivering what they commit, thereby maintaining transparency, trust and accountability. ¦ # They feel responsible and accountable for the commitments they make and the quality of the results we deliver to all their stakeholders. # a?
Processing charges of 2$ applied on every order.
a?
All prices are in S Dollars unless otherwise indicated.
a?
Payment: You can pay by Visa and MasterCard, Money Ôrder and Banker's Check. Prices include shipping and handling charges within India and worldwide where indicated.
a?
Some products are shipped worldwide.
a?
For corporate purchases or trade enquiries contact them. You will get the response within 2 working days.
a?
Because we do not stock or sell these items, they always work for you, the customer. So, you get the very best products, a wide selection, and unmatched service. Ôn
receiving orders from you, they buy from the company or their authorised distributor. If you have bulk requirements, you can engage them as your buying agent.
) # #
a? 24 hrs a day, 7 days in a week your business in operation. a? You can do your business globally by sitting at your office, home or in
bedroom. a? The products reach to customers directly from the producers at a lower price
than the market value. a? It is fast and effective. a? By visiting different websites one can within a short time can compare the
price and buy on the best deal. a? Advertising your product is cost effective in compare with conventional
offline system. a? ^ow staff cost. a? Financial transaction through electronic fund transfer is very fast and can be
done from any part of the world. a? Can be started with very low investment.
a
a? There is no direct interaction between the customer and the seller. Therefore,
the scope of convincing the customer does not exist. a? Many times, we prefer to buy the product by reaching personally to the market
rather than purchasing through Internet. a? Sometimes, transportation cost increases the product cost. a? No. of potential customers who can buy through Internet is still not enough.
Ô a? Everyday number of Internet users is increasing in a rapid way. a? People of tomorrow will feel more comfortable to buy products through
Internet only. a? Big companies are already entering in this field so; they are making people
habitual and confident about marketing through Internet at the cost of the companies.
a? Dishonest persons entering in this field which damage the confidence and faith
of common people on marketing through Internet. a?
General trepidation of Internet-based business.
a?
Increased government regulation for supplements.
a?
Aggressive competition from other markets.
u ## % India realizes the importance of eCommerce, as this is an emerging practice of businesses in today¶s world. For adopting eCommerce, two requirements need to be catered to: physical connectivity and technology, and legal framework governing the flow of trade. To ensure a better connectivity, there has been an increase in the number of Internet Service Providers following a growth in the Telecommunication sector. And to address trade related issues in eCommerce, the government has set up National Task Force on Information and Technology. 0u# # # %
Ône of the major factors for eCommerce not taking off in India as expected is the dispatch of goods on time and payment issues. Merchants start order processing and shipping only after the receipt of money through Credit Card or online banking payment. Mostly, online payments are credited to the intermediaries like PayPal, who transfer these payments to merchants. To address this situation, Reserve Bank of India has issued new norms for facilitating eCommerce transactions. As per the RBI directives, the payment will be credited directly to the merchants and not the intermediaries. With this arrangement, money will be available to the merchant within 3 days of transaction. This will expedite shipping of goods to the customer on time. However, still there is an underlying problem of fixing responsibility for the goods delivered and the payment. Ônline retailers do not take full responsibility of a clear e-transaction. So, the customer problems still persist. However, India has taken a number of steps to facilitate eCommerce transactions and steadily, the loop-holes are being plugged. ! # While E-Commerce may not completely replace other forms of Commerce, it is likely to be the dominant mode of the commercial transactions in the future. Colleges and Schools including Business Schools should reflect this trend in the curriculum to train the future generation of Managers. India is increasingly expanding its horizons as a new centre for business idea for global industrialists. Novel promotion and selling ideas are being formulated according to needs of the new age middle class customers. a?
c / #$ There are many products which can be sold and exported. It could be anything ranging from spices to coffee. It is not essential to set up a warehouse; rather tie-ups with Indian companies or by creating a website of your own would serve the purpose. This gives an opportunity to manage a diverse range of products sans any risk and cost. The step towards starting an e-commerce export business is to find a niche market in India. It could be in any area ranging from healthcare to herbs, etc. Search the net and find out which product can meet the requirements of a certain category of customer. Test your product online before taking any risk. The probable risk in this business is that the good or service may not appeal to the customers or there might not be any sales.
a?
c #$ With the development in customer market the Indian economy has flourished over the years giving rise to a class of people with disposable income. For budding entrepreneurs it is advisable to get indulged in e-commerce boom. The potential of ecommerce business within India is restricted for another two years. Going by the past records of other countries, China witnessed a massive upsurge in its internet users by 4 million users in the year 1999 from 600,000 Internet users in November 1997. But one major disadvantage of establishing an e-commerce business in India is that only 1 million people have direct access to the internet and out of 36 Indians only 1 have phone access and many of them even do not have credit cards. Export of animations, multimedia, graphics, etc.: The potential of this business is to cater to the massive requirements for quality content that the web creates. To execute this idea an entrepreneur requires expert professionals. The possible risk involved in such kind of business is that the animations or graphics might turn out to be visually unattractive to the Western audience. Hence, to avert any such situation a meticulous supervision is required to ensure that the service appeals to the western audience.
a?
$ The geographic barriers are fading and with the internet revolution this type of business opportunity has emerged in India. The potential of this type of business undertaking is cost effective. India has the skilled workforce of people who speak quality English as the cost of hiring a call centre employee in India is around S $150-$200 per month. This paved way for setting up a decent online support system in India for the nited States. Indian entrepreneurs can easily surpass any problem by training the online support staff and educating them about the attitude and lifestyle of the American customer.
a?
c/ # # $ For establishing a successful business in India, outsourcing of data entry is the best option. This business is the most recent in India and is already a hit in big cities like Bangalore. This business undertaking has a great potential. Companies in Bangalore are flourishing to a great extent after undertaking data services like medical
transcriptions. There is a massive demand for these kinds of services because international companies prefer their documents in an electronic format. This business is promising as well as money spinning. The prospective entrepreneurs can collaborate with Indian companies in order to offer high quality skilled employment. If the quality of work is not sustained then the risk may surface with complaints coming from the clients. Mobile Commerce is also growing rapidly and proving to be a stable and secure supplement to eCommerce due to the record growth in mobile user base in India, in recent years. In sum, the most successful marketplaces are expected to be those that cater to consumer's loneliness, boredom, education and career. For instance, look at the success of on-line chats and home shopping channels. But debates rage over whether interactive TV or online computer services will become pivotal medium for solving consumer loneliness. Nobody would want to get into something that wasn¶t secure. So when you are ready for e-business you¶ll find that many organizations have developed solutions like Real Time Intrusion Detection and Anti Virus software. These along with personal codes and passwords make sure that any transaction that takes place or any information that is shared is seen only by the people it¶s meant for. So ensure that it is real safe to do business online, before opting for one!
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