RESEARCH

The Encumbered Growth of E-commerce In India:

Can We Help?

Himanshi Agarwal*, Dr. Shailja Dixit**

ABSTRACT

India has witnessed a drastic switch in the purchasing and selling pattern of various goods and services
during the last 15 years. The introduction of e-commerce has revolutionized both global and domestic
economies. A number of developed economies like the USA, China and the UK have demonstrated a
clear leadership in e-commerce attributing to higher internet penetration, technological advancement,
infrastructure facilities and the increased use of smart phones, laptops/PCs and tablets. However, India,
being a developing economy, is experiencing a much slower growth of e-commerce in spite of having a
larger number of internet users as compared to the top ranked e-commerce market, the USA. The very
obvious reasons behind this stunted development are India's infrastructural, social, legal and political
drawbacks which need immediate consideration so that strategies could be devised to uproot those
challenges which are hampering the expected uptake of e-commerce in India.

This paper aims at presenting a comparative analysis of the internet penetration and e-commerce growth
between India and top three countries having the biggest ecommerce market in the world, i.e., USA,
China and UK. The focus is on discussing those issues which have hindered the e-commerce growth in
India and suggesting few strategic measures that are being followed by the e-commerce giants and it is
expected that few judicious policy implications will make India a competitive e-commerce market in the
near future.

KEYWORDS: E-Commerce, Internet Penetration, Network Connectivity, Payment

Gateways, Logistics, M-commerce

Introduction sector. A global data on the number of

internet users and e-commerce sales (figure
E-commerce is the exchange of goods and 1) reveal that they both increase hand in
services using the capabilities of the hand, that is, the growth in number of users
internet (Shahar, 1997). This definition directly affect the volume of online
highlights the internet as the leading factor transactions.
responsible for the growth of e-commerce

*Himanshi Agarwal, Research Scholar, Amity Business School, Amity University, Lucknow Campus
Email: neha.5890@gmail.com
**Dr. Shailja Dixit, Associate Professor, Amity Business School, Amity University, Lucknow Campus
Email: shailjadixit1@gmail.com
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 The Encumbered Growth of E-commerce In India: Can We Help?

Figure 1: E-Commerce Sales and Number of Internet Users in The World

Source: Internet live stats, statista.com&wevio.com

While e-commerce has become a familiar internet users in India would have involved
part of life in developed nations, it is still in online shopping, the Indian e-commerce
considered an innovation in developing market holds the potential to surpass that of
economies like India. Despite having a the USA.
large number of internet users and being
the third largest smart phone market in the No doubt, the annual growth rate shown by
world (Mallya, 2015), the country has Indian e-commerce industry during the past
proceeded at a relatively slow pace in the e- decade is appreciable still India holds 83rd
commerce area. At present, only a small rank out of 130 in the global e-commerce
number of business organizations and market according to the UN Conference on
consumers are using e-commerce as a Trade and Development. So the questions
preferred mode of exchange. A recent which naturally arise are: why Indians have
report titled 'India on the go-mobile been so reserved in adopting e-commerce
Internet Vision' by IAMAI & KPMG said channel? What are the factors that are
that the overall internet user base in the creating hindrance in the way of e-
country is expected to touch 503 million by commerce to expand to its maximum
2017, which stood at approximately 350 capability?
million as on June 2015.That has made
India the second largest internet user base This paper contributes towards addressing
in the world only behind China. It is the above questions and highlighting few
among the three fastest growing markets for major challenges faced by the e-commerce
internet usage worldwide, according to a growth in India along with some suggested
study conducted by ASSOCHAM & measures to overcome these hindrances.
Comscore in October 2012. But the
Forrester Research estimates that only Objectives
13.25% of the internet users in India
purchased products online in 2013 and this 1. To study the present scenario of e-
figure is expected to rise to 28% by 2017. commerce in India.
This is only a small proportion and if all the 2. To justify that internet is the most
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 The Encumbered Growth of E-commerce In India: Can We Help?

important factor that is driving the e- than by direct physical contact.

commerce growth. According to Laudon &Traver (2008), e-
3. To present a comparative analysis commerce is the use of the internet and the
between India and top three e- web to conduct business, that is, it's a
commerce markets of the world. digitally supported commercial transaction
4. To identify factors that hampers the among businesses and individuals.
e-commerce growth in India.
5. To suggest few strategies that could Another definition states that e-commerce
help Indian e-commerce market to is the process of buying, selling or
tackle those challenges. exchanging products, services or
information based on the following existing
2. Literature Review conditions in the developing countries: 1)
availability of the Internet and e-mail in
E-commerce is a general term for any type these contexts and will be used to
of commercial transaction or business that communicate business transactions, and 2)
involves the transmission of information use of the World Wide Web to enhance
over the Internet. Or e-commerce can be business activity (Turban, King, McKay,
defined as the use of computers and Marshall, Lee, &Viehland, 2008).
electronic networks to carry out business
with other businesses (B2B) or with From the above definitions, we can say that
customers (B2C) over the internet or the working of the e-commerce highly
another electronic network. depends upon the internet and World Wide
Web. The Internet is a global network of
According to the definition given by US interlinked computers, and, the World
Executive Office of the President “e- Wide Web is a global collection of
commerce is a commercial interaction over electronic documents (Holden, Belew,
the internet, which can lower costs Elad, & Rich, 2009, p. 3) that supplements
dramatically and facilitating new types of a graphical element to the Internet (Senn,
commercial transactions. As the internet 2004, p. 86). In other words, internet can
empowers citizens and democratizes be regarded as the backbone of
societies, it is also changing classic e-commerce.
economic paradigms. New models of
commercial interactions are developing as E-commerce is fundamentally changing the
businesses and consumers participate in an economy and the way in which businesses
electronic marketplace and reap the are conducted today (Barua et.al.,2001). It
resultant benefits. The internet has the compels the firms to find new ways to
potential to revolutionize retail marketing. expand their markets, to attract and retain
Commerce on the internet could total tens the existing customers by modifying
of billions of dollars by the turn of the products or services according to their
century. (UNCTAD, 2000). needs and restructuring their business
operations to deliver high quality products
Rosen (2002) states that e-commerce refers and services more efficiently and effectively
to the online business activities for products (Chan & Davis, 2000).
and services and it is useful to any form of
business transaction in which the buyers Apart from the studies mentioned above,
and sellers interact electronically rather there are a number of research reports and

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 The Encumbered Growth of E-commerce In India: Can We Help?

survey based studies done by IAMAI, IMRB which refers to a period from 2009 to 2014
international, PwC, ASSOCHAM, BCG, and is availed from various journals, reports,
Internet & online Association, etc.which magazines, books and internet.
presents the status of ecommerce existing in Data analysis is done using statistical
the country with quantitative figures. techniques. Linear regression tool is
employed on the quantitative data to
3. Research Gap surface the relationship between e-
commerce and internet usage. SPSS
Various studies as stated above discuss one software and MS-excel is used for efficient
or the other aspects of e-commerce. Much data analysis. Data has been depicted in the
work has been done with respect to the form of charts and tables.
concept, origin and growth of ecommerce
as well as the major factors which have 5. Current Scenario of Ecommerce
driven this growth. The review of the In India
available literature suggests that there are
many challenges in Indian context which Online commerce in India is riding on the
are creating hindrance in the way of e- high pace at a growth rate of 60-70%
commerce penetration because India's annually to capture the market which has a
economy, geography and demography is huge hidden potential. E-commerce in
very different from that of western India has progressed significantly in the last
countries. Thus, the present study intends decade and what is interesting is that the
to identify those challenges which are entire evolution of e-commerce in India
hampering the e-commerce growth in India happened over 15 years. In advanced
and suggest few strategies which could help markets like the USA, it took over 50-60
online market to expand to its full years. The Indian e-commerce sector has
potential. seen a remarkable growth in 2014. Rana
Kapoor, the President of ASSOCHAM
Contribution of The Study India, quoted in a report Future of e-
This descriptive research work would help commerce: Uncovering Innovation,
to identify those factors which are “Increasing internet and mobile
hampering the growth of ecommerce penetration, along with the growing
development in India and how could these acceptability of online payments and
obstacles be tackled with successful favorable demographics has enriched the e-
implication of the few measures discussed commerce sector in India with the unique
alongwith. This will help the ecommerce opportunity to fundamentally alter the way
firms to expand their online businesses and companies connect with their customers.
become profitable in near future. Due to this digital revolution, the e-
commerce sector in India become 4 times
4. Methodology its size, from $3.8 billion in 2009 to $17
billion in 2014, growing at a CAGR of
It is a descriptive survey that is exploratory 37%. It is expected that the sector will cross
cum applied in nature. It s based on the the $100 billion mark by 2020 and will
analysis of secondary data and generalizing contribute over 4% to India's GDP.”
conclusions from them. It is important to
flag that the secondary data is used here

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 The Encumbered Growth of E-commerce In India: Can We Help?

Figure 2: India's E-tail And E-commerce Growth

Source: IAMAI, CRISIL, Gartner, PwC Analysis and industry experts

According to Forrester Research, only 17% in the country crossed 350 million with
of India's total population in 2013 was around 27% penetration and this will result
online and out of it only 14% or 28 million in the further increase of online buyers.
people were online buyers. This figure According to the PwC report Future of
raised over to 40 million as the level of India - The Winning Leap, introduction of
internet penetration rose to 24% in 2014 new technologies, especially laptops, tablets
and with a gradual increase of 27% in the and mobiles, have brought a social change
number of internet users during the first in India that is difficult to enumerate.
half of 2015, the total internet subscribers

Figure 3: Number of Internet Users & Internet Penetration in India

Source: Internet Live Stats & Statista.com

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 The Encumbered Growth of E-commerce In India: Can We Help?

According to KPCB partner Mary Meeker's million Internet users during the year. The
2015 Internet trends report, India is the report also stated that 41% of total e-
largest country in terms of new Internet commerce sales in India come from mobile
user additions by adding 63 million Internet devices which indicate that India is the
users by the end of 2014 that is more than leader in use of mobile devices for e-
double of China which added that 31 commerce transactions.

Figure 4: Mobile as % of Total E-commerce Sales, 2014

Source: Stanley Morgan Research & KPCB

The number of smart phone users is etailing market in India accounts for only
expected to grow at a CAGR 91% from 8.7% of organized retail with $1.6 billion
2012 to 2016 when it jumped from 29 which is just a miniscule fraction of India's
million to 382 million. Similarly, the overall retail industry that stands at $500
number of 3G subscribers could expand at a billion; retail e-commerce has achieved a
CAGR of 84% from 23 million to 266 three times growth since 2011, that is
million during the same period, revealed mainly driven by million dollar investments
the report by PwC, E-commerce in India: initiated by domestic and foreign investors.
Accelerating Growth. Mobile commerce is In the coming few years, E-tail is set to
also growing rapidly as a steady and safe spring up to $6-8 billion. E-tailing has
supplement to the e-commerce industry. become the fastest growing segments in the
larger markets having grown at a CAGR of
Travel is the most profitable sector in around 56% over 2009-14. Apparels &
India's e-commerce with around 71% share. accessories, electronics and books are the
This business has grown at a CAGR of 32% highest selling products through internet,
over 2009-13. According to the report constituting around 30% of the product
Future of e-commerce: Uncovering distribution.
Innovation by ASSOCHAM, currently, the

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 The Encumbered Growth of E-commerce In India: Can We Help?

Figure 5: E-Commerce & E-Tail in India

Source: Technopak Analysis

Undoubtedly, India is one of the most boost the sector by introducing internet and
rapidly growing e-commerce markets in the broadband to each and every remote corner
world and holds the second position only of the country and will thus help to increase
after China with 31.5% annual growth rate, trade. This initiative has proposed
still it is almost 10 years behind China in investment of nearly $17 billion and it is
the e-commerce space. expected that this will definitely transform
India into a connected and developed
Today's consumers are highly pressurized economy. It would also attract foreign
due to scarcity of time as well as they are investments and create millions of jobs.
attracted by the convenience and increased
use of plastic money, thus, making their Although, it has been 15 years since the e-
way towards more online consumption. Commerce trend is making rounds in India
Furthermore, favourable demographic but the appropriate ecosystem has now
profile, limited geographical accessibility by started to take its place. Moreover, the
brick & mortar retailers, increase in Indian e-Commerce market has enjoyed an
internet penetration, increased use of extraordinary growth of almost 50% in the
smartphones & reducing data charges are last five years. Factors like increasing
the basic factors that offer high market internet access, astounding penetration of
potential for e-retailing in India. mobile phones and healthy investment
have driven the growth of this industry and
The Modi Government has initiated the if current projections continue to go by,
ambitious 'Digital India' project with an India is on the verge of becoming the
aim to offer a one-stop shop for all the world's fastest growing e-commerce market.
Government services. This will further

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6. Data Analysis facilities has been the foremost reason for

the swift growth witnessed in e-commerce
The review of the available literature states sales volume. The high rate of the adoption
that the growth of Indian e-commerce of internet and smart phones is the biggest
industry is very high. However its growth reason for the growth of e-commerce in
depends upon a number of factors, the most India. The growth trend between the
important among which is internet number of internet users and the e-
connectivity. The growing number of commerce sales volume in India during the
internet subscriber base due to increased period of 2009 to 2014 is shown in the
availability of broadband, 3G and 4G data following figure:

Figure 6: E-Commerce Sales & Number of Internet Users in India

Source: IAMAI, CRISIL, Gartner, PwC analysis, Internet live stats & EKOS global & Wikipedia

Analysing the evolution and trends in the available data, in which, the e-commerce
volume of e-commerce sales in the market, sales volume is taken as the dependent
it should be highlighted that a strong variable that gets affected to a considerable
growth has been experienced in the recent extent by the increasing number of internet
years which runs parallel to the increasing users. The output generated by the SPSS
number of internet users in the country. To software through the above data is given
analyze the degree of relatedness between below:
the two variables, a simple linear regression
statistical technique is applied on the

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .996a .993 .991 .45568

a.Predictors: (Constant), NO. OF INTERNET USERS

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Coefficientsa
Unstandardised Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .668 .408 1.637 .177
NO.OF .054 .002 .996 23.205 .000
INTERNET
USERS

a. Dependent Variable: E-COMMERCE SALE

From the above output, the co-efficient of subscribers since last few years. Indeed,
correlation comes out to be 0.996 which India is lucky to have around 302 million
signifies that a very high degree of positive internet users (as in 2014) that is the
correlation exists between the two second largest internet user base in the
variables, that is, the e-commerce sales world only behind China when it surpassed
volume experiences an upward growth as that of USA in December 2014.
the number of internet user's rise in the Still the rate of internet penetration is quite
country. This reveals that the growth in the low and the e-commerce sales volume is far
use of the internet positively influences the behind the top three e-commerce markets
development of e-commerce. of the world, the USA, China and the UK.
Undoubtedly, the current value of the In comparison to these countries, India
Indian e-commerce industry is the outcome ranks 83rd out of 130 global e-commerce
of the fact that India is witnessing a rapid markets.
growth in the number of internet

Figure 7: E-Commerce Sales in India & Selected Countries

Source: Reports by Internet World Stats, statista.com, EKOS, forester research and emarketer

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 The Encumbered Growth of E-commerce In India: Can We Help?

The following table presents a comparison among the top three global e-commerce giants
and India. The data presents the situation as on December 2014.

CHINA USA UK India

POPULATION 1367.82 318.86 64.77 1259.70

(in millions)

INTERNET USERS 648.75 279.83 57.27 302.07

(in millions)

INTERNET PENETRATION 47.43% 87.76% 88.40% 23.99%

ONLINE BUYERS 178.41 176.29 41.81 40.02

(in millions)

ONLINE BUYERS 27.43% 62.85% 73.68% 13.25%

(as % of internet users)

COUNTRY’S SHARE OF 21.97% 9.58% 1.88% 9.81%

WORLD INTERNET USERS

TOTAL $449.12 $395.30 $99.19 $16.32

E-COMMERCE SALE (in
billions)

Source: Reports by Internet World Stats, statista.com, EKOS, forester research and emarketer

An empirical analysis of the above table search engine to find information and social
highlights that India being the second most networking. Only 13.25% of the total
populated country and the second largest internet subscribers use it for online buying.
internet user base of the world, stores an As a result, total e-commerce sales in India
immense unidentified opportunity to is just approximately 4% of that in the
overtake the total e-commerce sales of the USA, 8% of that in China and 16% of that
USA. But, in India, the internet in the UK. In contrast to it, the UK & the
penetration is quite low, moreover, people USA have much lower population but
mainly use internet for activities like there internet penetration is much higher
sending emails, playing games, using a as illustrated in the following figure:

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Figure 8: Internet Penetration in India & Selected Countries (Dec 2014)

Source: Reports by Internet World Stats, statista.com, EKOS, forester research and emarketer

Thus, it is justifiable to say that reaching a India is still a small player though the
significant group of prospective customers potential is very big in India”, said Torbjorn
who are consistent users of the internet may Fredriksson, chief of the Information and
convert this mass of users into a large communications technology analysis at
market to become profitable enough and UNCTAD.
subsequently attractive to firms.
A report 'Major challenges faced by e-
“Technological disruption has driven commerce industry in India' by mavens
change in the e-commerce industry with (2012) writes that the Indian e-commerce
shoppers embracing multiple touch points industry is flourishing at a remarkable pace
in their purchase journeys. Overall, there is owing to high penetration rate of internet
humongous potential for the e-commerce and advanced electronic devices. Still, the
companies helped strongly by a growing current growth rate of e-commerce in India
internet user base and advancements in is far lagging behind than other developed
technology. However, this will not be countries. There are many major obstacles
without its share of challenges –operational, and challenges faced by an online
regulatory, digital, etc. A company's ability merchant.
to prepare itself proactively to meet these
challenges will decide the difference Thus there is a need to discuss those
between a successful venture and a failed challenges and devise strategies to tackle
one” remarked Sanded Ladder (Technology them so as to ensure a better e-commerce
Sector Leader, PwC India) “It's (e- growth. Discussion of these challenges and
commerce) taking off in India and you have measures for the betterment of e-commerce
some companies like Flipkart that are is the task of the following sections.
getting through but at the aggregate level

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7. Discussion & Recommendations Moreover, the average speed of

internet in India is only 2.3 Mbps
a) Challenges To E-commerce Growth In which is quite low as compared to 17.4
India Mbps in developed countries. Besides,
The rapid growth of ecommerce in India is the cost of internet access is also high.
attracting massive attention of many e-  Problem of Logistics and Reverse
commerce merchants around the globe. Logistics: In India, metropolitans and
India is the second most populous country other major cities have fairly robust
in the world with 1.2 billion people and the logistic facilities but there are
number of internet users in India is also the thousands of towns that are not easily
second largest in the world. This shows that accessible. Several Furthermore, the
India hides an immense potential for the rate of goods returned by the customers
growth of e-commerce and this makes India is very high and for the e-commerce
one of the most appealing emerging markets retailers these returns are extremely
for ecommerce, despite of having lower per- expensive since the cost to manage the
capita purchasing power. But India is far return can be higher than the value of
from being a bed of roses. Following are the the product.
top challenges confronted by the online  Impractical Policies Negatively Affect
businesses in India. Profitability: To face the intense
competition among the ecommerce
 Network Connectivity and Internet retailers who are doing the same
Penetration is Low: Internet is the business, vendors adopt aggressive
foundation of e-commerce. pricing strategies, heavy discounts and
Disappointingly, Internet penetration offer coupons, free shipping, etc. This
in India is still 24% which is just a is the reason that even the firms like
small miniscule of what could be found flipkart and snapdeal are yet to reach
in several other western countries. their break-even points.

Figure 10: Various Modes of Payment in India

Source: IAMAI

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 Absence of Consistent Cyber Laws: is not sure that a particular size of a

Privacy is a significant issue of concern dress would actually fit or not. Thus,
for both current and prospective having a global standard regarding the
ecommerce customers. The Indian size of these products would help to
customers are quite hesitant of giving reduce this doubt in the customer's
their personal details due to the mind.
increasing risk of scams played by  Lack of proper website management:
hackers. To regulate transactions on Most of the websites don't carry any
the Net, the Indian parliament passed digital datasheet, nice looking
The Information Technology Bill on photographs for their products,
May 17,2000 but, as it stands today, mechanism to check for daily prices
this Bill does not pay attention towards and product availability. Information
cases such as individual property rights, overload is another major problem
content regulation to privacy and data associated with the rapid growth of the
protection specific legislation. web contents. When customers try to
 Digital Illiteracy and Unique find something for online shopping,
Consumer Psyche: The Indian they get frustrated with a number of
consumers have little knowledge about popup and banner ads interrupting
the use of internet for purchasing. them. This only makes customers
They are more convenient in buying switch to other sites or drop their
products from nearby brick &mortar purchase decision.
stores. Companies that deal with  Tax structure: In India, the tax
products like apparels, handicrafts and structure differs from sector to sector.
jewellery face major challenges to sell This factor generates accounting
their products as the buyers prefer to problems for the Indian online
see and touch the product before they businesses. Besides, there are few other
purchase. countries like US which sustain zero
 Lack of trust and confidence: Trust is duty on e-commerce to prosper it in
very important in an e-business the country.
activity which is based on various
factors like brand recognition, product There is huge possibility for ecommerce
description, payment related issues, companies due to the flourishing internet
terms and conditions, money back user base and advancements in technology.
guarantee, return and exchange policy, However, this will come with its proportion
etc. Lack of trust by consumers often of digital, operational or regulatory
results in a heavy loss of goodwill and challenges. Company's preparation to
revenues. tackle these obstacles will decide its success.
 Lack of quality standardization and Therefore, it is important to trounce
product specification: Customers difficulties in Infrastructure, Financing,
often face a problem when an online Logistics and Consumer Loyalty to escort
ordered product does not match its the next surge of sustainable growth in e-
specifications. That's why, people often commerce. Appropriate laws for e-
hesitate to order those products which commerce are required to tackle the issues
carry little specialization like that in in legal and regulatory structure. Banks also
the case of clothes or footwear where it need to play a lead role as 'Facilitators' to

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offer cost effective cash management delivery, damaged or lost parcels,

solutions, safe and secure payment gateways unfriendly attitude of delivery staff,
and other related banking services. lengthy and complicated return
procedures and no allied facilities such
B) Suggestions For The Success Of E- as installation of the product. To
commerce handle such problems, vendors should
either set up their own logistics system
Although many e-commerce companies are or get hold of the existing logistics
initiating to take benefit of the potential of providers. Strategic alliances among e-
online environment in India, there are commerce firms and third-party
many crucial challenges which remain to be logistics could produce better results
tackled before e-commerce would prove to  Tax and Regulatory Environment:
be an asset for the people. Few of the above Laws regulating e-Commerce in India
mentioned challenges are impossible to are still developing and do not have
remove in near future owing to external precision. An encouraging regulatory
factors which are not under control of atmosphere would be a crucial step
business owners but we can work around towards unleashing the ability of e-
and solve many others. Here are few Commerce and bring effectiveness in
strategies which c could be followed: processes, creation of new jobs,
development of the industry and
 Customer Experience: As the investments in infrastructure.
customer moves forward from research  Operational Framework: Various
to purchase fulfilment stages, their business models have been developing
anticipations change rapidly so E- fast in the e-Commerce sector mainly
commerce vendors need to know and due to increased competition and
appreciate these expectations and incapability of the vendors to prolong
devise their policies according to it. high costs. E-commerce firms need to
Convenient channels for delivery and adapt and innovate regularly to
returns need to be build up along with continue with their enterprises.
the specification of touch and feel the  Digital Infrastructure: Digital
merchandise before purchasing. They interruption has brought
must also ensure adequate after sales transformation in the e-Commerce
service. Online product reviews and sector with buyers adopting multiple
ratings, more advanced sizing and touch points in their purchases.
fitting tools along with supporting Companies need to spend adequate
videos should be provided. finance on technological
 Addressing Logistics: The Indian e- advancements and advertisements. In
Commerce sector needs to carefully the voyage of digital business
observe the expansion of their transformation, entrenching SMAC
marketplaces in the Tier 2 and 3 cities. technologies in the business is very
The brand image of e-commerce important.
ventures gets stained due to shortage of  Localization of Internet Content:
adequate logistic services. The English is still not widely used in India.
prominent problems faced in e- Spokesperson of Google India says that
commerce logistics are untimely or no search of web contents in Hindi has

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grown 155% in the past year. retailing in the customer's shopping

Localization of content on internet is a venture which includes retail stores,
unique innovation. Snapdeal and online stores, mobile app stores, mobile
MakeMyTrip have already introduced stores, telephone sales and other
their multilingual interfaces in regional methods to transact with the
languages, others also need to follow customers. Many of the vendors like
the trend. Walmart, Target and Costco have
 Analytics & Personalization: already introduced this method of
Personalized product suggestions do retailing; others are also advised to
not directly amplify the trust of the mount on this technological
customers but they do express that the bandwagon.
online vendor is making best efforts to
understand the needs of the customers The ambitious 'Digital India Project'
and is trying upon them. This launched by Modi Government and the
implicitly builds the confidence level advancement of 'India Post' is expected to
that the retailer is not just acting to positively affect the e-commerce industry.
sell its products but is making a sincere The Digital India Project aims at offering a
attempt to build direct relationship one-stop shop for all government activities
with its customer. and will have the mobile phone as the back
 Fraud Protection: An online retailer bone of all functions. This program is
should setup suitable security expected to give a robust lift to the e-
certificates to deal with the commerce sector as the initiation of
transactions related to checkouts and internet and broadband to distant corners
the private information about of the country will increase customer
customers and payment details should awareness as a result online trade will rise.
be stored in coded format. A customer The government is also enthusiastic to
will feel more comfortable if they will develop its own distribution channel for
be charged after their order ships. So, it India Post and other services related to
will be beneficial for the retailers to ecommerce since India Post transaction
reflect the amount of payment at the business valued 280 crore INR in the CoD
time of order but charge the card only segment for e-commerce firms such as
when the order ships. Flipkart, Snapdeal and Amazon. Both the
 Inclusion of M-Commerce: Currently, two projects are expected to have
e-commerce uses PCs and browser- considerable affect on increasing the access
based interface but in the near future, of e-commerce players to generally non-
it is expected that smart phones will accessible areas, thereby boasting the e-
rule the online transactions owing to commerce growth.
the increasing sales of smart phones.
So, it will be beneficial for the e- Remarking upon the solutions for the
commerce vendors to develop easy to problems faced by the Indian e-commerce
use mobile apps if they want to industry, K S Bhatia, The Founder & CEO
increase the reach of their website. Pumpkart.com said at RMAI Rural
 Omnichannel Retailing: Omnichannel Conclave 2015, “We need a strong
or multichannel retailing means the presence of government with a partnership
use of more than one channel of of private for better logistics development

A Peer Reviewed Research Journal 128 aWEshkar Vol. XXIII Issue 2 September 2017 WeSchool
 The Encumbered Growth of E-commerce In India: Can We Help?

in the country. We need to work together Limitations Of The Study

as partners in the process of development
not just for the businesses but also for the This study is based on the facts and figures
rural areas of the country that will benefit collected through various secondary sources
from our presence.” like newspaper reports, articles and
journals. The measures suggested above to
9. Conclusion out stretch the reach of ecommerce
activities in India are based on the analysis
Ecommerce is the future of shopping in of recent trends followed by other countries
India. It would be apt to quote William to extend their online activities. There is a
Gibson's line,”The future is here. It's just possibility that these suggestive measures
not widely distributed yet.” The Internet might not prove relevant in Indian context.
economy will continue to grow robustly;
internet users would buy more products and Scope For Further Research
more frequently online: both new and
established companies will reap profits from This research is descriptive in nature,
it. hence, few strategies are suggested here to
help ecommerce companies flourish to its
Online shopping has great potential in fullest potential. There is a need for further
India. This holds true especially when real researches to prove the relevance of these
estate costs are sky rocketing, more and strategies for the growth of ecommerce in
more websites are being launched on daily India.
basis offering various products and services.
This coupled with favourable demographic 10. References
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“No one has ever made himself great by showing how small someone else is”

Irvin Himmel

“The human spirit needs places where nature has not been rearranged by
the hand of man.”

“The human spirit is stronger than anything that can happen to it.”

“Exploration is really the essence of the human spirit.”

“Difficulties are meant to rouse not discourage the human spirit.

Is to grow strong by conflict.”

Man never made any material as resilient as the human spirit.

Annonymous

A Peer Reviewed Research Journal 132 aWEshkar Vol. XXIII Issue 2 September 2017 WeSchool
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