ADVANTAGES OF INDIAN ECOMMERCE BUSINESSES

 

Research found as “ecommerce is not just a trend, but a necessity”.  E-commerce is currently the most popular industry in India and is on the rise to the top spot. Due to the growth of the e-commerce industry and increasing business, customers may occasionally leave with the service, but e-commerce has also become a very employable industry. The customer may find a solution for all of their everyday needs under one roof thanks to the e-commerce platform. It might be a regional or international product. As per Statista, there are over 20 million active ecommerce sites globally, and it is estimated that 95% of all purchases will be through ecommerce platforms by 2040. 

 

Customers can spend less time shopping for what they want. They can easily browse through many items at a time and buy what they like. When online, customers can find items that are available in physical stores far away from them or not found in their locality.

 

One of the biggest advantages of ecommerce to business that keep sellers interested in online selling is cost reduction. Many sellers have to pay lots to maintain their physical store. They may need to pay extra up front costs like rent, repairs, store design, inventory etc. In many cases, even after investing in services, stock, maintenance and workforce, sellers don’t receive desired profits and ROI. In highly populated potential customer base, it’s easy to carry-out an ecommerce venture towards profit most time.

 

An important advantage of ecommerce to business is that sellers can provide flexibility to customers. One highlight is that the product and services are ready 24x7. The result is that seller can offer his item any place, any time. Ecommerce is more effective in a crowdy business place like India.

 

Sellers don’t have to spend a lot of money to promote their items. The world of ecommerce has several affordable, quick ways to market online. Ecommerce marketplaces are visual channels – and sellers can really show off their product. For example, Amazon sellers can use Advertising Tool to add videos, infographics, good quality resolution images.

 

Buyers like personalisation goes for paying for their orders. Ecommerce marketplaces permit multiple payment modes that include UPI, Pleasant weather of all parameters are available for ecommerce business in India. cash on delivery, card on delivery, net banking, EMIs on credit or debit card and pay-later credit facility including easy return.

 

E-commerce exports assist sellers to directly sell to international customers in global marketplaces, allowing them to transcend beyond national boundaries and expand abroad. With e-commerce, sellers don’t have to invest in a physical setup to reach customers. Instead, they can use attractive product listing and acquire new customers internationally with ease. For aspiring entrepreneurs and growing businesses, e-commerce exports can be a very profitable model to adapt for global expansion and increased revenue. Indian ecommerce sellers are already reached to global customers’ base from India.

 

             Festival Offers is unique idea. It seems to be an add on to each festival. Consumers are attached with. We can                      offer category wise short time (two  days) offers as Smart phone, Women wear or Furniture or Tech games.

We have to reach to rural markets. Logistics and supply chain are two heroes can make it done. We may arrange 100 selected districts campaigns in India with local college students. They will make Amazon reach to remote areas. FMI is ready to do for Amazon.

 

GLOBAL ECOMMERCE SENARIO 2024

 

 

Amazon's Dominance: Amazon leads the global eCommerce sector with a market cap of US$1.9 trillion, followed by Pinduoduo at US$200 billion and Alibaba at US$184 billion. 

Market Expansion: The global eCommerce market, growing rapidly since 2020, is projected to reach US$5 trillion by 2024, with a 15% annual growth rate from 2019 to 2024. 

Outpacing Retail: eCommerce growth, accelerated by the pandemic, is forecasted to continue, growing 8% by 2028, outpacing the total retail market's 3% growth. 

Market Share Growth: eCommerce's share of the total retail market increased from 8% in 2017 to 16% by 2021, and is expected to reach nearly 25% by 2028. 

Grocery Leads: Grocery is the fastest-growing eCommerce category, with a projected annual growth rate of 14.3% through 2028, outpacing fashion and electronics.

MORE FINDS

Integration of the latest technologies has been revolutionizing the ecommerce market. A major contribution is the integration of A.I. technologies, as is the case with any other market, which offers benefits such as personalized product recommendations, improved customer service, targeted marketing, and automated customer journey, among others. Apart from A.I., many other technologies have been proven advantageous, including Augmented Reality (A.R.), Web3, chatbots, and blockchain. The rapid adoption of new technologies by the E-commerce platform to stay ahead of the competition is fueling the growth of the market. 

It also offers several advantages over traditional brick-and-mortar shops, such as 24/7 availability, global reach, and lower operating costs.

The supply chain network has been an aggravating factor as far as eCommerce companies are concerned, which could derail the growth of the e-commerce market. 

The global B2B e-commerce market was valued at USD 7,904.0 billion in 2022 and is projected to grow at a CAGR of 22.8% from 2023 to 2030.

The B2C service segment of the e-commerce market by model type was estimated to be USD 4,398.9 billion in 2022 and is expected to have a CAGR of 9.7% during the forecast period 2023-2030.

The top competitors that dominated the global market in 2022 include Alibaba Group Holding Limited, Amazon.com, Inc., Apple Inc., Best Buy, eBay Inc., Shopify Inc. Companies in the market have engaged in partnerships, mergers & acquisitions to capture the market.

Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.49%, resulting in a projected market volume of US$6,478.00bn by 2029.

With a projected market volume of US$1,469.00bn in 2024, most revenue is generated in China.

In the eCommerce Market, the number of users is expected to amount to 3.6bn users by 2029.

User penetration will be 40.5% in 2024 and is expected to hit 49.1% by 2029.

The average revenue per user (ARPU) is expected to amount to US$1,620.00.

 

FMI FINDINGS ON INDIAN ECOMMERCE BUSINESS TODAY AND AHEAD

We have completed over two months market research both primary and secondary covering five districts in India to study consumers buying habit, theirs issues during transactions and payment system they usually use. We have mentioned seven leading ecommerce companies and also add additional. We add into study on bank credit cards used for online transaction and done specifically image study of Kotak Mahindra Bank (7/10). Amazon is ahead in the race for reasons. Sixty interviews are taken from different segment of consumers who do online transactions. FMI has covered both consumers and retailers to better picturize the online business scenario in India. Only quality interviews are taken into account to analyse ground reality.

FMI is talked with 90 respondents and selected 60 interviews into account to analyse. We use different parameters and counts to access excel data set.

Analysed gist of market scenario on covered zones are below..

Based on last twelve months purchase habits:

Food 19 people

Cloth 50 people

Electronics 43 people

Books 4 people

Foot ware 35 people

Medicines 38 people

Grocery 28 people Kitchenware 2 people

Jewellery/Cosmetics/Accessories 13 people

Buying Satisfaction level

Somewhat Satisfied Customers are numbered 36

Very Satisfied Customers are numbered 20

Effect of ecommerce business on traditional retail business average is 36%

Frequency of purchase

Daily 7

Monthly 29

Occasionally 20

This Study image count out of 10 average is 7.9

GROUND FINDINGS

Amazon buyers are marginally higher in number than Flipkart in India in the all-out competition. Others are far behind as deals with specific segment/s.

Amazon service is higher rated than Flipkart. FMI have got over 10 negative issues of Flipkart Where Amazon counts one. Issues as delivery, return and installation etc.

Only 10% consumers know about Amazon own brand Solimo as asked.

Most Banks bank credit cards used are SBI, HDFC, PNB, Axis, ICICI. SBI debit cards too used as rewards are available. Among UPI payment modes Phone Pay, Google Pay and Amazon Pay are used by mass.

Nielsen's Global Connected Commerce Survey noted that around 83% of customers in India preferred COD when paying for online purchases. Two causes work for that. One is they feel secured to pay at time of delivery. Second internet connectivity and courier service are not equally operative in India.

Ecommerce purchase from abroad is less in India. FMI finds three persons. Purchased Nike shoe, Keyboard from Neo Macro and perfume.

FMI finds Electronics Commerce business most badly effects on Grocery, Fashion, Electronics and Medicine retail businesses. Cosmetic too can be included. Companies are bound to choose digital marketing as on consumers’ demand.

Amazon have tie-up with Apollo for Medicines. It is delivered part by part. Indian consumers do not like these many segments delivery. We think A bill of 3,000/- must be delivered in two segments maximum.

FMI confidently find grocery and daily essentials most rapidly growing market segment. Amazon Fresh has bright future despite of competition. Only to do is to connect more MORE and other outlets to deliver withing an hour primarily.

People are interested and do plan for special promotion days as “Great Indian Festival, Diwali Special”. 80% respondents are aware about these special promotion even better than me. Supples, Eden & Ivy, Symactive and Inkast is good approach to promote and economic to buyers too. In India cosmetic retail is not crossing good time. A brand category, may be named “OTHERR”. Tagline may be “Be Otherr”, we can launch with local manufacturers production who produce quality products but not having fund to market it in large scale. Who else will be better platform than Amazon for them. They may enter into global market too if qualifies quality and budget. I think it may be a gold mine venture. Logo will be “OTHERR” itself but stylist as below.